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<SEC-DOCUMENT>0000950123-09-036022.txt : 20090818
<SEC-HEADER>0000950123-09-036022.hdr.sgml : 20090818
<ACCEPTANCE-DATETIME>20090818085222
ACCESSION NUMBER:		0000950123-09-036022
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20090814
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20090818
DATE AS OF CHANGE:		20090818

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			UNIFI INC
		CENTRAL INDEX KEY:			0000100726
		STANDARD INDUSTRIAL CLASSIFICATION:	TEXTILE MILL PRODUCTS [2200]
		IRS NUMBER:				112165495
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			0624

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-10542
		FILM NUMBER:		091020607

	BUSINESS ADDRESS:	
		STREET 1:		7201 WEST FRIENDLY RD
		STREET 2:		P O BOX 19109
		CITY:			GREENSBORO
		STATE:			NC
		ZIP:			27419-9109
		BUSINESS PHONE:		9192944410

	MAIL ADDRESS:	
		STREET 1:		7201 W FRIENDLY RD
		STREET 2:		PO BOX 19109
		CITY:			GREENSBORO
		STATE:			NC
		ZIP:			24719-9109

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AUTOMATED ENVIRONMENTAL SYSTEMS INC
		DATE OF NAME CHANGE:	19720906
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>g20224e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>Form 8-K</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
PURSUANT TO SECTION 13 OR 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Date of Report (Date of earliest event reported):<BR>
August&nbsp;14, 2009
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>UNIFI, INC.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 1pt">(Exact name of registrant as specified in its charter)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>New York</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>1-10542</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>11-2165495</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State of Incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>7201 West Friendly Avenue<BR>
Greensboro, North Carolina 27410</B><BR>
(Address of principal executive offices, including zip code)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>(336)&nbsp;294-4410</B><BR>
(Registrant&#146;s telephone number, including area code)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Not Applicable</B><BR>
(Former name or former address, if changed since last report)
</DIV>


<DIV align="center">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 18pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">







<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Item&nbsp;5.02.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF
CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August&nbsp;14, 2009, Unifi, Inc. (the &#147;Company&#148;) entered into Change of Control Agreements (the
&#147;Agreements&#148;) with William L. Jasper, the Company&#146;s President and Chief Executive Officer, R. Roger
Berrier, Jr., the Company&#146;s Executive Vice President of Sales, Marketing and Asian Operations,
Thomas H. Caudle, Jr., the Company&#146;s Vice President of Manufacturing, Charles F. McCoy, the
Company&#146;s Vice President, Secretary, General Counsel, Chief Risk Officer and Corporate Governance &#038;
Compliance Officer, and Ronald L. Smith, the Company&#146;s Vice President and Chief Financial Officer
(hereinafter referred to individually as an &#147;Officer&#148; and collectively as the &#147;Officers&#148;). The
Agreements are effective until the earlier of two (2)&nbsp;years from the date of a change of control,
the termination of the Officer prior to the change of control, or if no change of control has
occurred, December&nbsp;31, 2011. The Agreements provide that if an Officer&#146;s employment is terminated
involuntarily, other than by death or disability or cause, or voluntarily for good reason, after a
change in control of the Company, the Officer will receive certain benefits. The present value of
the benefits will be 2.99 times the average total compensation paid to the Officer by the Company
during the five (5)&nbsp;calendar years (or the period of the Officer&#146;s employment with the Company if
the Officer has been employed with the Company for less than five (5)&nbsp;calendar years) preceding the
change of control of the Company, subject to reduction to the extent any such payments or benefits
constitute &#147;parachute payments&#148; within the meaning of Section&nbsp;280G of the Internal Revenue Code, to
an amount such that no benefit payment shall be subject to the excise tax imposed by Section&nbsp;4999
of the Internal Revenue Code, as determined by the Company&#146;s independent certified public
accountants, whose decision shall be binding upon the Company and the Officer. These benefits will
be paid to the Officer in equal installments over a twenty-four (24)&nbsp;month period, provided that
the payment of such benefit may be subject to delay to comply with Section&nbsp;409A of the Internal
Revenue Code.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A change of control is deemed to occur if, among other things, (i)&nbsp;there shall be consummated
any consolidation or merger of the Company in which the Company is not the surviving entity or the
sale of all or substantially all of the assets of the Company, (ii)&nbsp;the shareholders of the Company
have approved any plan or proposal for the liquidation or dissolution of the Company, (iii)&nbsp;any
person acquires twenty percent (20%) or more of the outstanding voting stock of the Company, or
(iv)&nbsp;if there is a change in the majority of the board of directors under specified conditions within a two (2)
year period.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A copy of the Agreements are attached hereto as <B>Exhibit&nbsp;10.1, 10.2, 10.3, 10.4 </B>and <B>10.5 </B>and
are incorporated herein by reference.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>ITEM 9.01.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>FINANCIAL STATEMENTS AND EXHIBITS.</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits.</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="12%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center">EXHIBIT NO.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">DESCRIPTION OF EXHIBIT</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="center"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change of Control Agreement between Unifi, Inc. and William L.
Jasper, effective August&nbsp;14, 2009.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="center"><DIV style="margin-left:0px; text-indent:-0px">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change of Control Agreement between Unifi, Inc. and R. Roger
Berrier, Jr., effective August&nbsp;14, 2009.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="center"><DIV style="margin-left:0px; text-indent:-0px">10.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change of Control Agreement between Unifi, Inc. and Thomas H.
Caudle, Jr., effective August&nbsp;14, 2009.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="center"><DIV style="margin-left:0px; text-indent:-0px">10.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change of Control Agreement between Unifi, Inc. and Charles F.
McCoy, effective August&nbsp;14, 2009.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="center"><DIV style="margin-left:0px; text-indent:-0px">10.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change of Control Agreement between Unifi, Inc. and Ronald L.
Smith, effective August&nbsp;14, 2009.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>UNIFI, INC.</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Charles F. McCoy</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Charles F. McCoy<BR>
Vice President, Secretary and General Counsel</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dated: August&nbsp;18, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INDEX TO EXHIBITS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="12%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center">EXHIBIT NO.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">DESCRIPTION OF EXHIBIT</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="center"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change of Control Agreement between Unifi, Inc. and William L.
Jasper, effective August&nbsp;14, 2009.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="center"><DIV style="margin-left:0px; text-indent:-0px">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change of Control Agreement between
Unifi, Inc. and R. Roger
Berrier, Jr., effective August&nbsp;14, 2009.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="center"><DIV style="margin-left:0px; text-indent:-0px">10.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change of Control Agreement between Unifi, Inc. and Thomas H.
Caudle, Jr., effective August&nbsp;14, 2009.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="center"><DIV style="margin-left:0px; text-indent:-0px">10.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change of Control Agreement between Unifi, Inc. and Charles F.
McCoy, effective August&nbsp;14, 2009.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="center"><DIV style="margin-left:0px; text-indent:-0px">10.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Change of Control Agreement between Unifi, Inc. and Ronald L.
Smith, effective August&nbsp;14, 2009.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>g20224exv10w1.htm
<DESCRIPTION>EX-10.1
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-10.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 18pt"><B>Exhibit 10.1</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CHANGE IN CONTROL AGREEMENT<BR>
FOR<BR>
WILLIAM L. JASPER</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS CHANGE OF CONTROL AGREEMENT </B>(&#147;Agreement&#148;) between <B>UNIFI, INC.</B>, a New York Corporation
(the &#147;Company&#148;), and <B>William L. Jasper </B>(the &#147;Executive&#148;) effective the 14<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of
August, 2009 (the &#147;Effective Date&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WITNESSETH:</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Executive is the President and Chief Executive Officer of the Company and is
considered as an integral part of the Company&#146;s management; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Company&#146;s Board of Directors (the &#147;Board&#148;) considers the establishment and
maintenance of a sound and vital management to be essential in protecting and enhancing the best
interests of the Company and its Shareholders, recognizes that the possibility of a Change in
Control exists and that such possibility, and the uncertainty and questions which it may raise
among management, may result in the departure or distraction of management personnel to the
detriment of the Company and its Shareholders; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Executive desires that in the event of any Change in Control he will continue to
have the responsibility and status he has earned; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Board has determined that it is appropriate to reinforce and encourage the
continued attention and dedication of the Executive, as a member of the Company&#146;s management, to
his assigned duties without distraction in potentially disturbing circumstances arising from the
possibility of a Change in Control of the Company; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the Executive and the Company have previously entered a Change in Control Agreement
which, by its own terms, expired November&nbsp;1, 2008; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the Executive and the Company desire to enter a new Change in Control Agreement that
complies with the provisions of section 409A of the Internal Revenue Code of 1986, as amended (the
&#147;Code&#148;).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW, THEREFORE, </B>in order to induce the Executive to remain in the employment of the Company
and in consideration of the Executive agreeing to remain in the employment of the Company, subject
to the terms and conditions set out below, the Company agrees it will pay such amount, as provided
in Section&nbsp;4 of this Agreement, to the Executive, if the Executive&#146;s employment with the Company
terminates under one of the circumstances described herein following a Change in Control of the
Company, as herein defined.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;1. </B><U><B>Term</B></U> This Agreement shall terminate, except to the extent that any
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">obligation of the Company hereunder remains unpaid as of such time, on the <U>earliest</U>
of:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;December&nbsp;31, 2011 if a Change in Control of the Company has not occurred within such
period;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The termination of the Executive&#146;s employment with the Company for any reason prior to a
Change in Control; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Two (2)&nbsp;years from the date of a Change in Control of the Company if the Executive has not
voluntarily terminated his employment for Good Reason as of such time.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;2. </B><U><B>Change in Control</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;No compensation shall be payable under this Agreement unless and until:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) there shall have been a Change in Control of the Company, while the Executive is
still an employee of the Company; and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive&#146;s employment by the Company thereafter shall have been terminated in
accordance with Section&nbsp;3.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;For purposes of this Agreement, a Change in Control of the Company shall be deemed to have
occurred if:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) There shall be consummated
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any consolidation or merger of the Company in which the Company is not the
continuing or surviving legal entity or pursuant to which shares of the Company&#146;s
Common Stock would be converted into cash, securities, or other property, other than
a merger of the Company in which the holders of the Company&#146;s Common Stock
immediately prior to the merger have the same proportionate ownership of Common
Stock of the surviving company immediately after the merger, or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any sale, lease, exchange, or other transfer (in one transaction or a
series of related transactions) of all, or substantially all, of the assets of the
Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The shareholders of the Company approve any plan or proposal for the liquidation or
dissolution of the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any person (as such term is used in Sections 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;)), shall become the beneficial owner
(within the meaning of Rule&nbsp;13d-3 under the Exchange Act) of twenty
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">percent (20%) or more of the Company&#146;s outstanding Common Stock; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) During any period of two consecutive years, individuals who at the beginning of
such period constitute the entire Board of Directors shall cease for any reason to
constitute a majority thereof unless the election, or the nomination for election by the
Company&#146;s Shareholders, of each new Director was approved by a vote of at least two-thirds
of the Directors then still in office who were Directors at the beginning of the period.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3. </B><U><B>Termination Following Change in Control</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If a Change in Control of the Company shall have occurred while the Executive is still an
employee of the Company, the Executive shall be entitled to the compensation provided in Section&nbsp;4
on the subsequent termination of the Executive&#146;s employment with the Company by the Executive
voluntarily for Good Reason or by the Company without Cause, as such terms are defined in
Subsections (d)&nbsp;and (e)&nbsp;below. If the Executive&#146;s employment with the Company is terminated for
any of the following reasons, no benefits will be payable hereunder:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
the Executive&#146;s death;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive&#146;s Disability (as defined in Subsection (b)&nbsp;below);
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Executive&#146;s Retirement (as defined in Subsection (c)&nbsp;below);
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Executive&#146;s termination by the Company for Cause (as defined in Subsection (d)
below); or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the Executive&#146;s decision to terminate employment other than for Good Reason (as
defined in Subsection (e)&nbsp;below).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Disability</U>: If, as a result of the Executive&#146;s incapacity due to physical or
mental illness, the Executive shall have been absent from his duties with the Company on a
full-time basis for one hundred twenty (120)&nbsp;consecutive days or a period of one hundred eighty
(180)&nbsp;days within twelve (12)&nbsp;consecutive months (including days before and after the Change in
Control) and within 30&nbsp;days after written notice of termination is thereafter given by the Company
the Executive shall not have returned to the full-time performance of the Executive&#146;s duties, the
Executive shall have suffered a &#147;Disability.&#148;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Retirement</U>: The term &#147;Retirement&#148; as used in this Agreement shall mean
termination in accordance with the Company&#146;s retirement policy for its employees.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Cause</U>: For purposes of this Agreement only, the Company shall have &#147;Cause&#148;
to terminate the Executive&#146;s employment hereunder only on the basis of fraud, misappropriation, or
embezzlement on the part of the Executive or malfeasance or misfeasance by the Executive in
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">performing the duties of his office, as determined by the Board. Notwithstanding the
foregoing, the Executive shall not be deemed to have been terminated for Cause unless and until
there shall have been a meeting of the Board (after at least ten (10)&nbsp;days written notice to the
Executive) and an opportunity for the Executive to be heard before the Board), and the delivery to
the Executive of a resolution duly adopted by the affirmative vote of not less than seventy-five
percent (75%) of the entire membership of the Board stating that in the good faith opinion of the
Board the Executive is guilty of conduct set forth in the second sentence of this Subsection (d)
and specifying the particulars thereof in detail.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>Good Reason</U>: The Executive may terminate the Executive&#146;s employment for Good
Reason at any time during the term of this Agreement. For purposes of this Agreement &#147;Good Reason&#148;
shall mean the occurrence of any one or more of the following without the Executive&#146;s express
written consent:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The assignment to the Executive by the Company of duties that are materially
inconsistent with the Executive&#146;s position, duties, responsibilities, and status with the
Company immediately prior to a Change in Control of the Company; a material change in the
Executive&#146;s titles or offices as in effect immediately prior to a Change in Control of the
Company; or any removal of the Executive from or any failure to reelect the Executive to any
of the positions held prior to a Change of Control of the Company, except in connection with
the termination of his employment for death, Disability, Retirement, or Cause or by the
Executive other than for Good Reason;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) A material reduction by the Company in the Executive&#146;s base salary as in effect on
the date hereof or as the same may be increased from time to time during the term of this
Agreement or the Company&#146;s failure to increase (within 12&nbsp;months of the Executive&#146;s last
increase in base salary) the Executive&#146;s base salary after a Change in Control of the
Company in an amount that at least equals, on a percentage basis, the average percentage
increase in base salary for all executive officers of the Company effected in the preceding
12&nbsp;months;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) A failure by the Company to continue in effect any benefit plan or
arrangement (including, without limitation, the Company&#146;s 401(k) Plan, group life insurance
plan and medical, dental, accident, and disability plans) in which the Executive is
participating at the time of a Change in Control of the Company (hereinafter referred to as
&#147;Benefit Plan&#148;) without the substitution of a plan providing him with substantially similar
benefits, or the taking of any action by the Company which would adversely affect the
Executive&#146;s participation in or materially reduce the Executive&#146;s benefits under any such
Benefit Plan or deprive the Executive of any material fringe benefit enjoyed by the Executive
at the time of a Change in Control of the Company without the substitution of a plan or
fringe benefit providing him with substantially similar benefits;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) A failure by the Company to continue in effect any plan or arrangement to receive
securities of the Company (including, without limitation, stock option plans or any other
plan or arrangement to receive and exercise stock options, restricted stock or grants
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">thereof) in which the Executive is participating at the time of a Change in Control of
the Company (a &#147;Securities Plan&#148;) without the substitution of a plan or arrangement providing
him with substantially similar benefits and the taking of any action by the Company that
would adversely affect the Executive&#146;s participation in or materially reduce the Executive&#146;s
benefits under any such Securities Plan without the substitution of a plan or arrangement
providing him with substantially similar benefits;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) A failure by the Company to continue in effect any bonus plan, automobile allowance
plan, or other incentive payment plan in which the Executive is participating at the time of
a Change in Control of the Company, or said Executive had participated in during the previous
calendar year without the substitution of a plan or arrangement providing him with
substantially similar benefits;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) A relocation of the Company&#146;s principal executive offices to a location outside of
North Carolina, or the Executive&#146;s relocation to any place other than the location at which
the Executive performed the Executive&#146;s duties prior to a Change in Control of the Company,
except for required travel by the Executive on the Company&#146;s business to an extent
substantially consistent with the Executive&#146;s business travel obligations at the time of a
Change in Control of the Company;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) A failure by the Company to provide the Executive with the number of paid vacation
days to which the Executive is entitled at the time of a Change in Control of the Company;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) A material breach by the Company of any provision of this Agreement;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) A failure by the Company to obtain the assumption of this Agreement by any
successor or assign of the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) A purported termination of the Executive&#146;s employment which is not made pursuant
to a Notice of Termination satisfying the requirements of Subsection (f).
</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">In order to terminate his employment with the Company for Good Reason, the Executive must also
comply with the notice requirements of Subsection (f).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>Notice of Termination</U>:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any termination by the Company pursuant to Subsections (b), (c)&nbsp;or (d)&nbsp;shall be
communicated by a Notice of Termination. For purposes of this Agreement, a &#147;Notice of
Termination&#148; shall mean a written notice that shall indicate those specific termination
provisions in this Agreement relied on and which sets forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of the Executive&#146;s employment
under the provision so indicated. For purposes of this Agreement, no such purported
termination by the Company shall be effective without such Notice of Termination.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any termination by the Executive pursuant to Subsection (e)&nbsp;shall be communicated
by a Notice of Termination. For purposes of this Agreement, a &#147;Notice of Termination&#148; shall
mean a written notice that shall indicate those specific termination provisions in this
Agreement relied on and which sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive&#146;s employment under the provision
so indicated. For purposes of this Agreement, no such purported termination by the Company
shall be effective without such Notice of Termination.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The
Executive&#146;s provision of a Notice of Termination must be within ninety (90)
days following the facts and circumstances claimed to provide a basis for termination for
Good Reason.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<U>Date of Termination</U>: &#147;Date of Termination&#148; shall mean:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If Executive&#146;s employment is terminated by the Company for Disability, thirty (30)
days after the Notice of Termination is given to the Executive (provided that the Executive
shall not have returned to the performance of the Executive&#146;s duties on a full-time basis
during such thirty (30)&nbsp;day period), or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the Executive&#146;s employment is terminated by the Company for any other reason,
the date on which a Notice of Termination is given; provided that if within thirty (30)&nbsp;days
after any Notice of Termination is given to the Executive by the Company the Executive
notifies the Company that a dispute exists concerning the termination, the Date of
Termination shall be the date the dispute is finally determined, whether by mutual agreement
by the parties or otherwise, or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If the Executive&#146;s employment is terminated by the Executive for Good Reason,
thirty (30)&nbsp;days after the Notice of Termination is given to the Executive (provided that
the Company shall not have cured the facts and circumstances claimed to provide a basis for
termination of the Executive&#146;s employment under the provision so indicated during such
thirty (30)&nbsp;day period); provided that if within thirty (30)&nbsp;days after any Notice of
Termination is given to the Company by the Executive, the Company notifies the Executive
that a dispute exists concerning the termination, the Date of Termination shall be the date
the dispute is finally determined, whether by mutual agreement by the parties or otherwise.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;4. </B><U><B>Severance Compensation on Termination of Employment</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If the Company shall terminate the Executive&#146;s employment other than pursuant to Section
3(b), 3(c) or 3(d) or if the Executive shall voluntarily terminate his employment for Good Reason
pursuant to Section&nbsp;3(e), then the Company shall pay to the Executive as severance pay an amount
equal to 2.99 times the average total compensation paid to the Executive by the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">Company or any of its subsidiaries during the five (5)&nbsp;calendar years (or the period of the
Executive&#146;s employment with the Company if the Executive has been employed with the Company for
less than five calendar years) preceding the Change in Control of the Company.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;However, if the severance payment under this Section&nbsp;4, either alone or together with
other payments that the Executive has the right to receive from the Company, would constitute a
&#147;parachute payment&#148; (as defined in section 280G of the Code), such severance payment shall be
reduced to the largest amount as will result in no portion of the severance payment under this
Section&nbsp;4 being subject to the excise tax imposed by section 4999 of the Code. The determination
of any reduction in the lump sum severance payment under this Section&nbsp;4 pursuant to the foregoing
proviso shall be made by the Company&#146;s Independent Certified Public Accountants, and their decision
shall be conclusive and binding on the Company and the Executive.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Such amount shall be paid in twenty-four (24)&nbsp;equal monthly installments, without
interest, beginning on the regular payroll date for salaried employees of the Company in the month
following the Executive&#146;s Date of Termination.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Notwithstanding the provisions of Subsection (c)&nbsp;to the contrary, the Company and
Executive further acknowledge that if the Executive is determined to be a &#147;specified employee&#148;, as
such term is defined in section 409A of the Code at the date that payments are otherwise scheduled
to commence in Subsection (c), that certain payments to Executive under this Agreement may be
required to be postponed to comply with section 409A. Thus, the parties agree that, in such event,
any payments that are so postponed will be paid to Executive, without interest, on the first day of
the calendar month following the end of the required postponement period.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;If the Executive dies while any amounts are still payable to him hereunder, all such
amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the Executive&#146;s legatee, or other designee or, if there be no such designee, to the
Executive&#146;s estate.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5. </B><U><B>No Obligation to Mitigate Damages; No Effect on Other Contractual Rights</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Executive shall not be required to mitigate damages or the amount of any payment
provided for under this Agreement by seeking other employment or otherwise, nor shall the amount of
any payment provided for under this Agreement be reduced by any compensation earned by the
Executive as the result of employment by another employer that is not related to the Company after
the Date of Termination, or otherwise.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as set forth in Section&nbsp;4(b), the provisions of this Agreement, and any payment
provided for hereunder, shall not reduce any amounts otherwise payable, or in any way diminish the
Executive&#146;s rights under any employment agreement or other contract, plan, or
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">employment arrangement with the Company.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Company shall, on the termination of the Executive&#146;s employment following a Change in
Control of the Company other than by death, Disability (as defined in Section&nbsp;3(b)), Retirement (as
defined in Section&nbsp;3(c)) or Cause (as defined in Section&nbsp;3(d)), or the termination of the
Executive&#146;s employment by the Executive without Good Reason, maintain in full force and effect, for
the Executive&#146;s continued benefit until the earlier of:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) two
(2)&nbsp;years after the Date of Termination, or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive&#146;s commencement of full time employment with a new employer,
</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">all life insurance, medical, health and accident, and disability plans, programs, or arrangements
in which he was entitled to participate immediately prior to the Date of Termination, provided that
his continued participation is possible under the general terms and provisions of such plans and
programs. In the event the Executive is ineligible under the terms of such plans or programs to
continue to be so covered, the Company shall provide substantially equivalent coverage through
other sources.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Executive&#146;s account and rights in and under any retirement benefit or incentive plans
shall remain subject to the terms and conditions of the respective plans as they existed at the
time of the termination of the Executive&#146;s employment.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;6. </B><U><B>Successors</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company will require any successor or assign (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business and/or assets of
the Company, by agreement expressly, absolutely and unconditionally to assume and agree to perform
this Agreement in the same manner and to the same extent that the Company would be required to
perform it if no such succession or assignment had taken place. Any failure of the Company to
obtain such agreement prior to the effectiveness of any such succession or assignment shall be a
material breach of this Agreement and shall entitle the Executive to terminate the Executive&#146;s
employment for Good Reason under Section&nbsp;3.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Company&#148; shall mean the Company as hereinbefore defined and any successor or assign to
its business and/or assets as aforesaid that executes and delivers the agreement provided for in
this Section&nbsp;6 or which otherwise becomes bound by all the terms and provisions of this Agreement
by operation of law. If at any time during the term of this Agreement the Executive is employed by
any corporation a majority of the voting securities of which is then owned by the Company,
&#147;Company&#148; as used in Sections&nbsp;3, 4, and 10 hereof shall in addition include such employer. In such
event, the Company agrees that it shall pay or shall cause such employer to pay any amounts owed to
the Executive pursuant to Section&nbsp;4 hereof.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;This Agreement shall inure to the benefit of and be enforceable by the Executive&#146;s
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">legal representatives or attorney-in-fact, executors or administrators, heirs, distributees
and legatees.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;7. </B><U><B>Notice</B></U> For purposes of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be deemed to have been
duly given when delivered or mailed by United States registered mail, return receipt requested,
postage prepaid, as follows:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Company:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 10%">Unifi, Inc.<BR>
P. O. Box 19109<BR>
Greensboro, NC 27419-9109<BR>
ATTENTION: General Counsel (currently Charles F. McCoy)

</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Executive:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 10%">Mr.&nbsp;William L. Jasper<BR>
15 Old Saybrook Drive<BR>
Greensboro, NC 27455

</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">or such other address as either party may have furnished to the other in writing in
accordance herewith, except that notices of change of address shall be effective only on receipt.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;8. </B><U><B>Miscellaneous</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The invalidity or unenforceability of any provisions of this Agreement shall not affect
the validity or enforceability of any other provision of this Agreement, which shall remain in full
force and effect.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Any payment or delivery required under this Agreement shall be subject to all requirements
of the law with regard to withholding (including FICA tax), filing, making of reports and the like,
and Company shall use its best efforts to satisfy promptly all such requirements.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;9. </B><U><B>Legal Fees and Expenses</B></U> The Company shall pay all reasonable legal fees
and expenses that the Executive may incur as a result of the Company&#146;s contesting the validity,
enforceability or the Executive&#146;s interpretation of, or determinations under, this Agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;10. </B><U><B>Disclosure of Confidential Information</B></U> Executive agrees that:
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;During the term of this Agreement and for a period of five (5)&nbsp;years after his Date of
Termination, he will not disclose or make available to any person or other entity any trade
secrets, Confidential Information, or &#147;know-how&#148; relating to the Company&#146;s, its affiliates&#146; and
subsidiaries&#146; businesses without written authority from the Board, unless he is compelled to
disclose it by judicial process.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Confidential Information&#148; shall mean all information about the Company, its affiliates or
subsidiaries, or relating to any of their products, services, or any phase of their operations, not
generally known to their Competitors or which is not public information, that the Executive knows
or of which the Executive acquired knowledge during the term of his employment with the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Under
no circumstances shall Executive remove from the Company&#146;s offices any of the
Company&#146;s books, records, documents, files, computer discs or information, reports, presentations,
customer lists, or any copies of such documents for use outside of his employment with the Company,
except as specifically authorized in writing by the Board.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;11. </B><U><B>Non-Compete</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Executive agrees that, during the period of employment and for a period of two (2)&nbsp;years
after his Date of Termination, he will not, directly or indirectly:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Seek employment or consulting arrangements with or offer advice, suggestions, or
input to any Competitor of the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Own any interest in, other than ownership of less than two percent (2%) of any
class of stock of a publicly held corporation, manage, operate, control, be employed by,
render advisory services to, act as a consultant to, participate in, assess or be connected
with any Competitor of the Company, unless approved by the Board; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Solicit, induce, or attempt to induce any past or current customer of the Company
(A) to cease doing business in whole or in part with or through the Company; or (B)&nbsp;to do
business with any other person, firm, partnership, corporation, or other entity that sells
products or performs services materially similar to or competitive with those provided by
the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Initiate, encourage, or solicit for employment any person who is now employed or
during the term of this Agreement becomes employed by the Company (or whose activities or
services are dedicated to the Company).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Competitor&#148; shall mean any individual, partnership, joint venture, firm, corporation,
limited liability company, business trust, association, trust, or other enterprise (whether or not
incorporated) engaged in the business of developing, producing, manufacturing, selling and/or
distributing a product or providing services similar to any product produced or
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">service provided by the Company, its affiliates, or subsidiaries.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;12. </B><U><B>Remedy for Violation of Sections&nbsp;10 and 11</B></U> The Executive acknowledges that
the Company has no adequate remedy at law and will be irreparably harmed if the Executive breaches
or threatens to breach the provisions of Sections&nbsp;10 or 11 of this Agreement, and therefore, agrees
that the Company shall be entitled to injunctive relief to prevent any breach or threatened breach
of such Sections and that the Company shall be entitled to specific performance of the terms of
such Sections in addition to any other legal or equitable remedy it may have. Nothing in this
Agreement shall be construed as prohibiting the Company from pursuing any other remedies at law or
in equity that it may have or any other rights that it may have under any other agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section
13.&nbsp;</B><U><B>Arbitration</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Any dispute or controversy between the Company and the Executive, whether arising out of
or relating to this Agreement, the breach of this Agreement, or otherwise, shall be settled by
arbitration administered by the American Arbitration Association (&#147;AAA&#148;) in accordance with its
Commercial Arbitration Rules then in effect, and judgment on the award rendered by the arbitrator
may be entered in any court having jurisdiction thereof. Any arbitration shall be held before a
single arbitrator who shall be selected by the mutual agreement of the Company and the Executive.
However, if the parties are unable to agree to an arbitrator, the arbitrator will be selected under
the procedures of the AAA.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The arbitrator shall have the authority to award any remedy or relief that a court of
competent jurisdiction could order or grant, including, without limitation, the issuance of an
injunction. However, either party may, without inconsistency with this arbitration provision,
apply to any court having jurisdiction over such dispute relief until the arbitration award is
rendered or the controversy is otherwise resolved.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as necessary in court proceedings to enforce this arbitration provision or an award
rendered hereunder or to obtain interim relief, neither a party nor an arbitrator may disclose the
existence, content or results of any arbitration hereunder without the prior written consent of the
Company and the Executive.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Company and the Executive acknowledge that this Agreement evidences a transaction
involving interstate commerce. Notwithstanding any choice of law provision included in this
Agreement, the United States Federal Arbitration Act shall govern the interpretation and
enforcement of this arbitration provision. The arbitration proceeding shall be conducted in
Greensboro, North Carolina or such other location to which the parties may agree. The Company
shall pay the costs of any arbitrator appointed hereunder.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section
14.&nbsp;</B><U><B>Amendment and Termination</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Amendment</U>. This Agreement may be amended by the Company at any time, or from time
to time, but no such amendment shall reduce Executive&#146;s benefit hereunder, determined as of the
date of amendment, and provided that such amendment is approved by both the Company and the
Executive.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Termination</U>. The Company retains the discretion to terminate this Agreement if
(i)&nbsp;all arrangements sponsored by the Company that would be aggregated with any terminated
arrangement under Code section 409A and Treas. Reg.
&#167;1.409A-1(c)(2) are terminated, (ii)&nbsp;no payments
(other than payments that would be payable under the terms of the arrangements if the termination
had not occurred) are made within twelve (12)&nbsp;months of the
termination of the arrangements, (iii)
all payments are made within twenty-four (24)&nbsp;months of the
termination of the arrangements, (iv)
the Company does not adopt a new arrangement that would be aggregated with any terminated
arrangement under Code section 409A and the regulations thereunder at any time within the three (3)
year period following the date of termination of the arrangement, and
(v)&nbsp;the termination does not
occur proximate to a downturn in the financial health of the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Interpretation</U>. The termination provisions of this Section will be construed in
accordance with Treas. Reg. &#167;1.409A-3(j)(4)(ix). Further, the Company reserves the right to amend
the Agreement to provide that termination of the Agreement will occur under such conditions and
events as may be prescribed by the Secretary of the Treasury in generally applicable guidance
published in the Internal Revenue Bulletin.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section
15.&nbsp;</B><U><B>Section&nbsp;409A Compliance</B></U>. It is intended that this Agreement comply with Code
section 409A, with any Treasury Regulations promulgated thereunder, and with other generally
applicable guidance and transition rules issued thereunder. The Agreement shall be interpreted and
operated consistently with that intent. If the Company shall determine that any provision of this
Agreement does not comply with the requirements of Code section 409A, the Company shall have the
authority to amend the Agreement to the extent necessary (including retroactively) in order to
preserve compliance with Code section 409A. The Company shall also have the discretionary
authority to take such other actions as may be permissible to correct any failures to comply in
operation with the requirements of Code section 409A.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF, </B>Unifi, Inc. has caused this Agreement to be signed by an officer of the
Company and a member of the Company&#146;s Compensation Committee pursuant to resolutions duly adopted
by the Board of Directors and its seal affixed hereto and the Executive has hereunto affixed his
hand and seal effective as of the date first above written.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top"><B>UNIFI, INC.</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Charles F. McCoy</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Charles F. McCoy<BR>
Vice President, Secretary &#038;<BR>
General Counsel</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">William M. Sams</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">William M. Sams<BR>
Chairman of the Compensation Committee<BR>
of the Board of Directors</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top"><B>EXECUTIVE</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">William L. Jasper</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(Seal)</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">William L. Jasper</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SCHEDULE A<BR>
DELAYS IN DISTRIBUTION; ACCELERATION EVENTS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;A.1 <U>Permitted Delays in Payment</U>. Distributions may be delayed beyond
the date payment would otherwise occur in accordance with the provisions of the Agreement in
any of the following circumstances.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company may delay payment if it reasonably anticipates that the making of the
payment will violate federal securities laws or other applicable laws, provided that payment
is made at the earliest date on which the Company reasonably anticipates that the making of
the payment will not cause such violation.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company reserves the right to amend the Agreement to provide for a delay in
payment on such other events and conditions as the Secretary of the Treasury may prescribe
in generally applicable guidance published in the Internal Revenue Bulletin.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;A.2 <U>Permitted Acceleration Events; Cancellation of Deferral Elections</U>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;At the Executive&#146;s request, the Company shall permit the acceleration of the time
and form of a payment under the Agreement under the following circumstances:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) A payment to the extent necessary for any federal officer in the executive
branch of the U.S. government to comply with an ethics agreement with the federal
government.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) A payment to the extent reasonably necessary to avoid the violation of any
applicable ethics or conflicts of interest law in accordance with Treas. Reg.
&#167;1.409A-3(j)(4)(iii).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) A payment equal to the U.S. employment tax imposed on compensation deferred
under the Agreement, plus the amount of applicable income tax required to be
withheld at source on such amount.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) If the Agreement fails to meet the requirements of Code section 409A and
the regulations promulgated thereunder, a payment not to exceed the amount required
to be included in income as a result of such failure to comply.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) A payment to reflect the payment of applicable state, local, and foreign
tax obligations arising from participation in the Agreement that apply to the amount
deferred under the Agreement before the amount is paid or made available to the
Executive, in accordance with Treas. Reg. &#167;1.409A-3(j)(4)(xi).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) A payment or reduction as a satisfaction of the Executive&#146;s debt to
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">the Company, where (A)&nbsp;such debt has been incurred in the ordinary course of
the parties&#146; relationship, (B)&nbsp;the entire amount of the payment/reduction in any of
the Executive&#146;s tax years does not exceed $5,000, and (C)&nbsp;the payment/reduction is
made at the same time and in the same amount as the debt would otherwise have been
due and collected.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) A payment that is part of a settlement between the Executive and the
Company of a bona fide dispute as to the Executive&#146;s right to the deferred amount,
in accordance with Treas. Reg. &#167;1.409A-3(j)(4)(xiv).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company shall permit the acceleration of the time and form of a payment to make
a lump sum payment of amounts deferred on behalf of the Executive, provided that:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The payment results in the termination and liquidation of the entirety of
the Executive&#146;s interest hereunder and all other plans and arrangements that are
deemed to be a single nonqualified deferred compensation plan under Treas. Reg.
&#167;1.409A-1(c)(2),
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The payment is not greater than the applicable amount under Code section
402(g), and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Such payment is mandatory and is not solely at the Executive&#146;s request.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Company reserves the right to amend this Agreement to provide for an
acceleration of payment on such other events and conditions as the Secretary of the Treasury
may prescribe in generally applicable guidance published in the Internal Revenue Bulletin.
</DIV>


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<TYPE>EX-10.2
<SEQUENCE>3
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<DESCRIPTION>EX-10.2
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.2</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CHANGE IN CONTROL AGREEMENT<BR>
FOR<BR>
R. ROGER BERRIER, JR.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS CHANGE OF CONTROL AGREEMENT </B>(&#147;Agreement&#148;) between <B>UNIFI, INC.</B>, a New York Corporation
(the &#147;Company&#148;), and <B>R. Roger Berrier, Jr. </B>(the &#147;Executive&#148;) effective the 14th day of August, 2009
(the &#147;Effective Date&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WITNESSETH:</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Executive is the Executive Vice President of Sales, Marketing and Asian
Operations of the Company and is considered as an integral part of the Company&#146;s management; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Company&#146;s Board of Directors (the &#147;Board&#148;) considers the establishment and
maintenance of a sound and vital management to be essential in protecting and enhancing the best
interests of the Company and its Shareholders, recognizes that the possibility of a Change in
Control exists and that such possibility, and the uncertainty and questions which it may raise
among management, may result in the departure or distraction of management personnel to the
detriment of the Company and its Shareholders; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Executive desires that in the event of any Change in Control he will continue to
have the responsibility and status he has earned; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Board has determined that it is appropriate to reinforce and encourage the
continued attention and dedication of the Executive, as a member of the Company&#146;s management, to
his assigned duties without distraction in potentially disturbing circumstances arising from the
possibility of a Change in Control of the Company; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the Executive and the Company have previously entered a Change in Control Agreement
which, by its own terms, expired November&nbsp;1, 2008; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the Executive and the Company desire to enter a new Change in Control Agreement that
complies with the provisions of section 409A of the Internal Revenue Code of 1986, as amended (the
&#147;Code&#148;).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW, THEREFORE, </B>in order to induce the Executive to remain in the employment of the Company
and in consideration of the Executive agreeing to remain in the employment of the Company, subject
to the terms and conditions set out below, the Company agrees it will pay such amount, as provided
in Section&nbsp;4 of this Agreement, to the Executive, if the Executive&#146;s employment with the Company
terminates under one of the circumstances described herein following a Change in Control of the
Company, as herein defined.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;1. </B><U><B>Term</B></U> This Agreement shall terminate, except to the extent that any
obligation of the Company hereunder remains unpaid as of such time, on the <U>earliest</U> of:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;December&nbsp;31, 2011 if a Change in Control of the Company has not occurred within such
period;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The termination of the Executive&#146;s employment with the Company for any reason prior to a
Change in Control; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Two (2)&nbsp;years from the date of a Change in Control of the Company if the Executive has not
voluntarily terminated his employment for Good Reason as of such time.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;2. </B><U><B>Change in Control</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;No compensation shall be payable under this Agreement unless and until:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) there shall have been a Change in Control of the Company, while the Executive is
still an employee of the Company; and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive&#146;s employment by the Company thereafter shall have been terminated in
accordance with Section&nbsp;3.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;For purposes of this Agreement, a Change in Control of the Company shall be deemed to have
occurred if:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) There shall be consummated
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any consolidation or merger of the Company in which the Company is not the
continuing or surviving legal entity or pursuant to which shares of the Company&#146;s
Common Stock would be converted into cash, securities, or other property, other than
a merger of the Company in which the holders of the Company&#146;s Common Stock
immediately prior to the merger have the same proportionate ownership of Common
Stock of the surviving company immediately after the merger, or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any sale, lease, exchange, or other transfer (in one transaction or a
series of related transactions) of all, or substantially all, of the assets of the
Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The shareholders of the Company approve any plan or proposal for the liquidation or
dissolution of the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any person (as such term is used in Sections 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;)), shall become the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">beneficial owner (within the meaning of Rule&nbsp;13d-3 under the Exchange Act) of twenty
percent (20%) or more of the Company&#146;s outstanding Common Stock; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) During any period of two consecutive years, individuals who at the beginning of
such period constitute the entire Board of Directors shall cease for any reason to
constitute a majority thereof unless the election, or the nomination for election by the
Company&#146;s Shareholders, of each new Director was approved by a vote of at least two-thirds
of the Directors then still in office who were Directors at the beginning of the period.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3. </B><U><B>Termination Following Change in Control</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If a Change in Control of the Company shall have occurred while the Executive is still an
employee of the Company, the Executive shall be entitled to the compensation provided in Section&nbsp;4
on the subsequent termination of the Executive&#146;s employment with the Company by the Executive
voluntarily for Good Reason or by the Company without Cause, as such terms are defined in
Subsections (d)&nbsp;and (e)&nbsp;below. If the Executive&#146;s employment with the Company is terminated for
any of the following reasons, no benefits will be payable hereunder:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
the Executive&#146;s death;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive&#146;s Disability (as defined in Subsection (b)&nbsp;below);
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Executive&#146;s Retirement (as defined in Subsection (c)&nbsp;below);
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Executive&#146;s termination by the Company for Cause (as defined in Subsection (d)
below); or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the Executive&#146;s decision to terminate employment other than for Good Reason (as
defined in Subsection (e)&nbsp;below).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Disability</U>: If, as a result of the Executive&#146;s incapacity due to physical or
mental illness, the Executive shall have been absent from his duties with the Company on a
full-time basis for one hundred twenty (120)&nbsp;consecutive days or a period of one hundred eighty
(180)&nbsp;days within twelve (12)&nbsp;consecutive months (including days before and after the Change in
Control) and within 30&nbsp;days after written notice of termination is thereafter given by the Company
the Executive shall not have returned to the full-time performance of the Executive&#146;s duties, the
Executive shall have suffered a &#147;Disability.&#148;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Retirement</U>: The term &#147;Retirement&#148; as used in this Agreement shall mean
termination in accordance with the Company&#146;s retirement policy for its employees.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Cause</U>: For purposes of this Agreement only, the Company shall have &#147;Cause&#148;
to terminate the Executive&#146;s employment hereunder only on the basis of fraud, misappropriation, or
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">embezzlement on the part of the Executive or malfeasance or misfeasance by the Executive in
performing the duties of his office, as determined by the Board. Notwithstanding the foregoing,
the Executive shall not be deemed to have been terminated for Cause unless and until there shall
have been a meeting of the Board (after at least ten (10)&nbsp;days written notice to the Executive) and
an opportunity for the Executive to be heard before the Board), and the delivery to the Executive
of a resolution duly adopted by the affirmative vote of not less than seventy-five percent (75%) of
the entire membership of the Board stating that in the good faith opinion of the Board the
Executive is guilty of conduct set forth in the second sentence of this Subsection (d)&nbsp;and
specifying the particulars thereof in detail.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>Good Reason</U>: The Executive may terminate the Executive&#146;s employment for Good
Reason at any time during the term of this Agreement. For purposes of this Agreement &#147;Good Reason&#148;
shall mean the occurrence of any one or more of the following without the Executive&#146;s express
written consent:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The assignment to the Executive by the Company of duties that are materially
inconsistent with the Executive&#146;s position, duties, responsibilities, and status with the
Company immediately prior to a Change in Control of the Company; a material change in the
Executive&#146;s titles or offices as in effect immediately prior to a Change in Control of the
Company; or any removal of the Executive from or any failure to reelect the Executive to any
of the positions held prior to a Change of Control of the Company, except in connection with
the termination of his employment for death, Disability, Retirement, or Cause or by the
Executive other than for Good Reason;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) A material reduction by the Company in the Executive&#146;s base salary as in effect on
the date hereof or as the same may be increased from time to time during the term of this
Agreement or the Company&#146;s failure to increase (within 12&nbsp;months of the Executive&#146;s last
increase in base salary) the Executive&#146;s base salary after a Change in Control of the
Company in an amount that at least equals, on a percentage basis, the average percentage
increase in base salary for all executive officers of the Company effected in the preceding
12&nbsp;months;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) A failure by the Company to continue in effect any benefit plan or
arrangement (including, without limitation, the Company&#146;s 401(k) Plan, group life insurance
plan and medical, dental, accident, and disability plans) in which the Executive is
participating at the time of a Change in Control of the Company (hereinafter referred to as
&#147;Benefit Plan&#148;) without the substitution of a plan providing him with substantially similar
benefits, or the taking of any action by the Company which would adversely affect the
Executive&#146;s participation in or materially reduce the Executive&#146;s benefits under any such
Benefit Plan or deprive the Executive of any material fringe benefit enjoyed by the Executive
at the time of a Change in Control of the Company without the substitution of a plan or
fringe benefit providing him with substantially similar benefits;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) A failure by the Company to continue in effect any plan or arrangement to receive
securities of the Company (including, without limitation, stock option plans or any
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">other plan or arrangement to receive and exercise stock options, restricted stock or
grants thereof) in which the Executive is participating at the time of a Change in Control of
the Company (a &#147;Securities Plan&#148;) without the substitution of a plan or arrangement providing
him with substantially similar benefits and the taking of any action by the Company that
would adversely affect the Executive&#146;s participation in or materially reduce the Executive&#146;s
benefits under any such Securities Plan without the substitution of a plan or arrangement
providing him with substantially similar benefits;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) A failure by the Company to continue in effect any bonus plan, automobile allowance
plan, or other incentive payment plan in which the Executive is participating at the time of
a Change in Control of the Company, or said Executive had participated in during the previous
calendar year without the substitution of a plan or arrangement providing him with
substantially similar benefits;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) A relocation of the Company&#146;s principal executive offices to a location outside of
North Carolina, or the Executive&#146;s relocation to any place other than the location at which
the Executive performed the Executive&#146;s duties prior to a Change in Control of the Company,
except for required travel by the Executive on the Company&#146;s business to an extent
substantially consistent with the Executive&#146;s business travel obligations at the time of a
Change in Control of the Company;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) A failure by the Company to provide the Executive with the number of paid vacation
days to which the Executive is entitled at the time of a Change in Control of the Company;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) A material breach by the Company of any provision of this Agreement;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) A failure by the Company to obtain the assumption of this Agreement by any
successor or assign of the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) A purported termination of the Executive&#146;s employment which is not made pursuant
to a Notice of Termination satisfying the requirements of Subsection (f).
</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">In order to terminate his employment with the Company for Good Reason, the Executive must also
comply with the notice requirements of Subsection (f).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>Notice of Termination</U>:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any termination by the Company pursuant to Subsections (b), (c)&nbsp;or (d)&nbsp;shall be
communicated by a Notice of Termination. For purposes of this Agreement, a &#147;Notice of
Termination&#148; shall mean a written notice that shall indicate those specific termination
provisions in this Agreement relied on and which sets forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of the Executive&#146;s employment
under the provision so indicated. For purposes of this Agreement, no such purported
termination by the Company shall be effective without
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">such Notice of Termination.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any termination by the Executive pursuant to Subsection (e)&nbsp;shall be communicated
by a Notice of Termination. For purposes of this Agreement, a &#147;Notice of Termination&#148; shall
mean a written notice that shall indicate those specific termination provisions in this
Agreement relied on and which sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive&#146;s employment under the provision
so indicated. For purposes of this Agreement, no such purported termination by the Company
shall be effective without such Notice of Termination.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The
Executive&#146;s  provision of a Notice of Termination must be within ninety (90)
days following the facts and circumstances claimed to provide a basis for termination for
Good Reason.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<U>Date of Termination</U>: &#147;Date of Termination&#148; shall mean:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If Executive&#146;s employment is terminated by the Company for Disability, thirty (30)
days after the Notice of Termination is given to the Executive (provided that the Executive
shall not have returned to the performance of the Executive&#146;s duties on a full-time basis
during such thirty (30)&nbsp;day period), or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the Executive&#146;s employment is terminated by the Company for any other reason,
the date on which a Notice of Termination is given; provided that if within thirty (30)&nbsp;days
after any Notice of Termination is given to the Executive by the Company the Executive
notifies the Company that a dispute exists concerning the termination, the Date of
Termination shall be the date the dispute is finally determined, whether by mutual agreement
by the parties or otherwise, or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If the Executive&#146;s employment is terminated by the Executive for Good Reason,
thirty (30)&nbsp;days after the Notice of Termination is given to the Executive (provided that
the Company shall not have cured the facts and circumstances claimed to provide a basis for
termination of the Executive&#146;s employment under the provision so indicated during such
thirty (30)&nbsp;day period); provided that if within thirty (30)&nbsp;days after any Notice of
Termination is given to the Company by the Executive, the Company notifies the Executive
that a dispute exists concerning the termination, the Date of Termination shall be the date
the dispute is finally determined, whether by mutual agreement by the parties or otherwise.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;4. </B><U><B>Severance Compensation on Termination of Employment</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If the Company shall terminate the Executive&#146;s employment other than pursuant to Section
3(b), 3(c) or 3(d) or if the Executive shall voluntarily terminate his employment for Good Reason
pursuant to Section&nbsp;3(e), then the Company shall pay to the Executive as severance
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">pay an amount equal to 2.99 times the average total compensation paid to the Executive by the
Company or any of its subsidiaries during the five (5)&nbsp;calendar years (or the period of the
Executive&#146;s employment with the Company if the Executive has been employed with the Company for
less than five calendar years) preceding the Change in Control of the Company.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;However, if the severance payment under this Section&nbsp;4, either alone or together with
other payments that the Executive has the right to receive from the Company, would constitute a
&#147;parachute payment&#148; (as defined in section 280G of the Code), such severance payment shall be
reduced to the largest amount as will result in no portion of the severance payment under this
Section&nbsp;4 being subject to the excise tax imposed by section 4999 of the Code. The determination
of any reduction in the lump sum severance payment under this Section&nbsp;4 pursuant to the foregoing
proviso shall be made by the Company&#146;s Independent Certified Public Accountants, and their decision
shall be conclusive and binding on the Company and the Executive.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Such amount shall be paid in twenty-four (24)&nbsp;equal monthly installments, without
interest, beginning on the regular payroll date for salaried employees of the Company in the month
following the Executive&#146;s Date of Termination.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Notwithstanding the provisions of Subsection (c)&nbsp;to the contrary, the Company and
Executive further acknowledge that if the Executive is determined to be a &#147;specified employee&#148;, as
such term is defined in section 409A of the Code at the date that payments are otherwise scheduled
to commence in Subsection (c), that certain payments to Executive under this Agreement may be
required to be postponed to comply with section 409A. Thus, the parties agree that, in such event,
any payments that are so postponed will be paid to Executive, without interest, on the first day of
the calendar month following the end of the required postponement period.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;If the Executive dies while any amounts are still payable to him hereunder, all such
amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the Executive&#146;s legatee, or other designee or, if there be no such designee, to the
Executive&#146;s estate.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5. </B><U><B>No Obligation to Mitigate Damages; No Effect on Other Contractual Rights</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Executive shall not be required to mitigate damages or the amount of any payment
provided for under this Agreement by seeking other employment or otherwise, nor shall the amount of
any payment provided for under this Agreement be reduced by any compensation earned by the
Executive as the result of employment by another employer that is not related to the Company after
the Date of Termination, or otherwise.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as set forth in Section&nbsp;4(b), the provisions of this Agreement, and any payment
provided for hereunder, shall not reduce any amounts otherwise payable, or in any way
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">diminish the Executive&#146;s rights under any employment agreement or other contract, plan, or
employment arrangement with the Company.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Company shall, on the termination of the Executive&#146;s employment following a Change in
Control of the Company other than by death, Disability (as defined in Section&nbsp;3(b)), Retirement (as
defined in Section&nbsp;3(c)) or Cause (as defined in Section&nbsp;3(d)), or the termination of the
Executive&#146;s employment by the Executive without Good Reason, maintain in full force and effect, for
the Executive&#146;s continued benefit until the earlier of:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) two
(2)&nbsp;years after the Date of Termination, or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive&#146;s commencement of full time employment with a new employer,
</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">all life insurance, medical, health and accident, and disability plans, programs, or arrangements
in which he was entitled to participate immediately prior to the Date of Termination, provided that
his continued participation is possible under the general terms and provisions of such plans and
programs. In the event the Executive is ineligible under the terms of such plans or programs to
continue to be so covered, the Company shall provide substantially equivalent coverage through
other sources.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Executive&#146;s account and rights in and under any retirement benefit or incentive plans
shall remain subject to the terms and conditions of the respective plans as they existed at the
time of the termination of the Executive&#146;s employment.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;6. </B><U><B>Successors</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company will require any successor or assign (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business and/or assets of
the Company, by agreement expressly, absolutely and unconditionally to assume and agree to perform
this Agreement in the same manner and to the same extent that the Company would be required to
perform it if no such succession or assignment had taken place. Any failure of the Company to
obtain such agreement prior to the effectiveness of any such succession or assignment shall be a
material breach of this Agreement and shall entitle the Executive to terminate the Executive&#146;s
employment for Good Reason under Section&nbsp;3.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Company&#148; shall mean the Company as hereinbefore defined and any successor or assign to
its business and/or assets as aforesaid that executes and delivers the agreement provided for in
this Section&nbsp;6 or which otherwise becomes bound by all the terms and provisions of this Agreement
by operation of law. If at any time during the term of this Agreement the Executive is employed by
any corporation a majority of the voting securities of which is then owned by the Company,
&#147;Company&#148; as used in Sections&nbsp;3, 4, and 10 hereof shall in addition include such employer. In such
event, the Company agrees that it shall pay or shall cause such employer to pay any amounts owed to
the Executive pursuant to Section&nbsp;4 hereof.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;This Agreement shall inure to the benefit of and be enforceable by the Executive&#146;s legal
representatives or attorney-in-fact, executors or administrators, heirs, distributees and legatees.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;7. </B><U><B>Notice</B></U> For purposes of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be deemed to have been
duly given when delivered or mailed by United States registered mail, return receipt requested,
postage prepaid, as follows:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Company:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 10%">Unifi, Inc.<BR>
P. O. Box 19109<BR>
Greensboro, NC 27419-9109<BR>
ATTENTION: General Counsel (currently Charles F. McCoy)

</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Executive:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 10%">Mr.&nbsp;R. Roger Berrier, Jr.<BR>
148 Broadmoor Dr.<BR>
Advance, NC 27006

</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">or such other address as either party may have furnished to the other in writing in
accordance herewith, except that notices of change of address shall be effective only on receipt.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;8. </B><U><B>Miscellaneous</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The invalidity or unenforceability of any provisions of this Agreement shall not affect
the validity or enforceability of any other provision of this Agreement, which shall remain in full
force and effect.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Any payment or delivery required under this Agreement shall be subject to all requirements
of the law with regard to withholding (including FICA tax), filing, making of reports and the like,
and Company shall use its best efforts to satisfy promptly all such requirements.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;9. </B><U><B>Legal Fees and Expenses</B></U> The Company shall pay all reasonable legal fees
and expenses that the Executive may incur as a result of the Company&#146;s contesting the validity,
enforceability or the Executive&#146;s interpretation of, or determinations under, this Agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;10. </B><U><B>Disclosure of Confidential Information</B></U> Executive agrees that:
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;During the term of this Agreement and for a period of five (5)&nbsp;years after his Date of
Termination, he will not disclose or make available to any person or other entity any trade
secrets, Confidential Information, or &#147;know-how&#148; relating to the Company&#146;s, its affiliates&#146; and
subsidiaries&#146; businesses without written authority from the Board, unless he is compelled to
disclose it by judicial process.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Confidential Information&#148; shall mean all information about the Company, its affiliates or
subsidiaries, or relating to any of their products, services, or any phase of their operations, not
generally known to their Competitors or which is not public information, that the Executive knows
or of which the Executive acquired knowledge during the term of his employment with the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Under
no circumstances shall Executive remove from the Company&#146;s offices any of the
Company&#146;s books, records, documents, files, computer discs or information, reports, presentations,
customer lists, or any copies of such documents for use outside of his employment with the Company,
except as specifically authorized in writing by the Board.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;11. </B><U><B>Non-Compete</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Executive agrees that, during the period of employment and for a period of two (2)&nbsp;years
after his Date of Termination, he will not, directly or indirectly:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Seek employment or consulting arrangements with or offer advice, suggestions, or
input to any Competitor of the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Own any interest in, other than ownership of less than two percent (2%) of any
class of stock of a publicly held corporation, manage, operate, control, be employed by,
render advisory services to, act as a consultant to, participate in, assess or be connected
with any Competitor of the Company, unless approved by the Board; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Solicit, induce, or attempt to induce any past or current customer of the Company
(A) to cease doing business in whole or in part with or through the Company; or (B)&nbsp;to do
business with any other person, firm, partnership, corporation, or other entity that sells
products or performs services materially similar to or competitive with those provided by
the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Initiate, encourage, or solicit for employment any person who is now employed or
during the term of this Agreement becomes employed by the Company (or whose activities or
services are dedicated to the Company).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Competitor&#148; shall mean any individual, partnership, joint venture, firm, corporation,
limited liability company, business trust, association, trust, or other enterprise (whether or not
incorporated) engaged in the business of developing, producing, manufacturing,
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">selling and/or distributing a product or providing services similar to any product produced or
service provided by the Company, its affiliates, or subsidiaries.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;12. </B><U><B>Remedy for Violation of Sections&nbsp;10 and 11</B></U> The Executive acknowledges
that the Company has no adequate remedy at law and will be irreparably harmed if the Executive
breaches or threatens to breach the provisions of Sections&nbsp;10 or 11 of this Agreement, and
therefore, agrees that the Company shall be entitled to injunctive relief to prevent any breach or
threatened breach of such Sections and that the Company shall be entitled to specific performance
of the terms of such Sections in addition to any other legal or equitable remedy it may have.
Nothing in this Agreement shall be construed as prohibiting the Company from pursuing any other
remedies at law or in equity that it may have or any other rights that it may have under any other
agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section
13.&nbsp;</B><U><B>Arbitration</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Any dispute or controversy between the Company and the Executive, whether arising out of
or relating to this Agreement, the breach of this Agreement, or otherwise, shall be settled by
arbitration administered by the American Arbitration Association (&#147;AAA&#148;) in accordance with its
Commercial Arbitration Rules then in effect, and judgment on the award rendered by the arbitrator
may be entered in any court having jurisdiction thereof. Any arbitration shall be held before a
single arbitrator who shall be selected by the mutual agreement of the Company and the Executive.
However, if the parties are unable to agree to an arbitrator, the arbitrator will be selected under
the procedures of the AAA.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The arbitrator shall have the authority to award any remedy or relief that a court of
competent jurisdiction could order or grant, including, without limitation, the issuance of an
injunction. However, either party may, without inconsistency with this arbitration provision,
apply to any court having jurisdiction over such dispute relief until the arbitration award is
rendered or the controversy is otherwise resolved.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as necessary in court proceedings to enforce this arbitration provision or an award
rendered hereunder or to obtain interim relief, neither a party nor an arbitrator may disclose the
existence, content or results of any arbitration hereunder without the prior written consent of the
Company and the Executive.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Company and the Executive acknowledge that this Agreement evidences a transaction
involving interstate commerce. Notwithstanding any choice of law provision included in this
Agreement, the United States Federal Arbitration Act shall govern the interpretation and
enforcement of this arbitration provision. The arbitration proceeding shall be conducted in
Greensboro, North Carolina or such other location to which the parties may agree. The Company
shall pay the costs of any arbitrator appointed hereunder.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section
14.&nbsp;</B><U><B>Amendment and Termination</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Amendment</U>. This Agreement may be amended by the Company at any time, or from time
to time, but no such amendment shall reduce Executive&#146;s benefit hereunder, determined as of the
date of amendment, and provided that such amendment is approved by both the Company and the
Executive.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Termination</U>. The Company retains the discretion to terminate this Agreement if
(i)&nbsp;all arrangements sponsored by the Company that would be aggregated with any terminated
arrangement under Code section 409A and Treas. Reg.
&#167;1.409A-1(c)(2) are terminated, (ii)&nbsp;no payments
(other than payments that would be payable under the terms of the arrangements if the termination
had not occurred) are made within twelve (12)&nbsp;months of the
termination of the arrangements, (iii)
all payments are made within twenty-four (24)&nbsp;months of the
termination of the arrangements, (iv)
the Company does not adopt a new arrangement that would be aggregated with any terminated
arrangement under Code section 409A and the regulations thereunder at any time within the three (3)
year period following the date of termination of the arrangement, and
(v)&nbsp;the termination does not
occur proximate to a downturn in the financial health of the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Interpretation</U>. The termination provisions of this Section will be construed in
accordance with Treas. Reg. &#167;1.409A-3(j)(4)(ix). Further, the Company reserves the right to amend
the Agreement to provide that termination of the Agreement will occur under such conditions and
events as may be prescribed by the Secretary of the Treasury in generally applicable guidance
published in the Internal Revenue Bulletin.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section
15.&nbsp;</B><U><B>Section&nbsp;409A Compliance</B></U>. It is intended that this Agreement comply with Code
section 409A, with any Treasury Regulations promulgated thereunder, and with other generally
applicable guidance and transition rules issued thereunder. The Agreement shall be interpreted and
operated consistently with that intent. If the Company shall determine that any provision of this
Agreement does not comply with the requirements of Code section 409A, the Company shall have the
authority to amend the Agreement to the extent necessary (including retroactively) in order to
preserve compliance with Code section 409A. The Company shall also have the discretionary
authority to take such other actions as may be permissible to correct any failures to comply in
operation with the requirements of Code section 409A.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF, </B>Unifi, Inc. has caused this Agreement to be signed by an officer of the
Company and a member of the Company&#146;s Compensation Committee pursuant to resolutions duly adopted
by the Board of Directors and its seal affixed hereto and the Executive has hereunto affixed his
hand and seal effective as of the date first above written.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top"><B>UNIFI, INC.</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Charles F. McCoy</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Charles F. McCoy<BR>
Vice President, Secretary &#038;<BR>
General Counsel</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">William M. Sams</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">William M. Sams<BR>
Chairman of the Compensation Committee<BR>
of the Board of Directors</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top"><B>EXECUTIVE</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">R. Roger Berrier, Jr.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(Seal)</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">R. Roger Berrier, Jr.</TD>
</TR>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SCHEDULE A<BR>
DELAYS IN DISTRIBUTION; ACCELERATION EVENTS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;A.1 <U>Permitted Delays in Payment</U>. Distributions may be delayed beyond
the date payment would otherwise occur in accordance with the provisions of the Agreement in
any of the following circumstances.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company may delay payment if it reasonably anticipates that the making of the
payment will violate federal securities laws or other applicable laws, provided that payment
is made at the earliest date on which the Company reasonably anticipates that the making of
the payment will not cause such violation.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company reserves the right to amend the Agreement to provide for a delay in
payment on such other events and conditions as the Secretary of the Treasury may prescribe
in generally applicable guidance published in the Internal Revenue Bulletin.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;A.2 <U>Permitted Acceleration Events; Cancellation of Deferral Elections</U>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;At the Executive&#146;s request, the Company shall permit the acceleration of the time
and form of a payment under the Agreement under the following circumstances:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) A payment to the extent necessary for any federal officer in the executive
branch of the U.S. government to comply with an ethics agreement with the federal
government.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) A payment to the extent reasonably necessary to avoid the violation of any
applicable ethics or conflicts of interest law in accordance with Treas. Reg.
&#167;1.409A-3(j)(4)(iii).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) A payment equal to the U.S. employment tax imposed on compensation deferred
under the Agreement, plus the amount of applicable income tax required to be
withheld at source on such amount.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) If the Agreement fails to meet the requirements of Code section 409A and
the regulations promulgated thereunder, a payment not to exceed the amount required
to be included in income as a result of such failure to comply.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) A payment to reflect the payment of applicable state, local, and foreign
tax obligations arising from participation in the Agreement that apply to the amount
deferred under the Agreement before the amount is paid or made available to the
Executive, in accordance with Treas. Reg. &#167;1.409A-3(j)(4)(xi).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) A payment or reduction as a satisfaction of the Executive&#146;s debt to
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">the Company, where (A)&nbsp;such debt has been incurred in the ordinary course of
the parties&#146; relationship, (B)&nbsp;the entire amount of the payment/reduction in any of
the Executive&#146;s tax years does not exceed $5,000, and (C)&nbsp;the payment/reduction is
made at the same time and in the same amount as the debt would otherwise have been
due and collected.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) A payment that is part of a settlement between the Executive and the
Company of a bona fide dispute as to the Executive&#146;s right to the deferred amount,
in accordance with Treas. Reg. &#167;1.409A-3(j)(4)(xiv).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company shall permit the acceleration of the time and form of a payment to make
a lump sum payment of amounts deferred on behalf of the Executive, provided that:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The payment results in the termination and liquidation of the entirety of
the Executive&#146;s interest hereunder and all other plans and arrangements that are
deemed to be a single nonqualified deferred compensation plan under Treas. Reg.
&#167;1.409A-1(c)(2),
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The payment is not greater than the applicable amount under Code section
402(g), and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Such payment is mandatory and is not solely at the Executive&#146;s request.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Company reserves the right to amend this Agreement to provide for an
acceleration of payment on such other events and conditions as the Secretary of the Treasury
may prescribe in generally applicable guidance published in the Internal Revenue Bulletin.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>




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<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>g20224exv10w3.htm
<DESCRIPTION>EX-10.3
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-10.3</TITLE>
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<BODY bgcolor="#FFFFFF">
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.3</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CHANGE IN CONTROL AGREEMENT<BR>
FOR<BR>
THOMAS H. CAUDLE, JR.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS CHANGE OF CONTROL AGREEMENT </B>(&#147;Agreement&#148;) between <B>UNIFI, INC.</B>, a New York Corporation
(the &#147;Company&#148;), and <B>Thomas H. Caudle, Jr. </B>(the &#147;Executive&#148;) effective the 14<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of
August, 2009 (the &#147;Effective Date&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WITNESSETH:</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Vice President of Manufacturing of the Company and is considered as an integral
part of the Company&#146;s management; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Company&#146;s Board of Directors (the &#147;Board&#148;) considers the establishment and
maintenance of a sound and vital management to be essential in protecting and enhancing the best
interests of the Company and its Shareholders, recognizes that the possibility of a Change in
Control exists and that such possibility, and the uncertainty and questions which it may raise
among management, may result in the departure or distraction of management personnel to the
detriment of the Company and its Shareholders; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Executive desires that in the event of any Change in Control he will continue to
have the responsibility and status he has earned; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Board has determined that it is appropriate to reinforce and encourage the
continued attention and dedication of the Executive, as a member of the Company&#146;s management, to
his assigned duties without distraction in potentially disturbing circumstances arising from the
possibility of a Change in Control of the Company; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the Executive and the Company have previously entered a Change in Control Agreement
which, by its own terms, expired November&nbsp;1, 2008; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the Executive and the Company desire to enter a new Change in Control Agreement that
complies with the provisions of section 409A of the Internal Revenue Code of 1986, as amended (the
&#147;Code&#148;).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW, THEREFORE, </B>in order to induce the Executive to remain in the employment of the Company
and in consideration of the Executive agreeing to remain in the employment of the Company, subject
to the terms and conditions set out below, the Company agrees it will pay such amount, as provided
in Section&nbsp;4 of this Agreement, to the Executive, if the Executive&#146;s employment with the Company
terminates under one of the circumstances described herein following a Change in Control of the
Company, as herein defined.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;1. </B><U><B>Term</B></U> This Agreement shall terminate, except to the extent that any
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">obligation of the Company hereunder remains unpaid as of such time, on the <U>earliest</U>
of:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;December&nbsp;31, 2011 if a Change in Control of the Company has not occurred within such
period;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The termination of the Executive&#146;s employment with the Company for any reason prior to a
Change in Control; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Two (2)&nbsp;years from the date of a Change in Control of the Company if the Executive has not
voluntarily terminated his employment for Good Reason as of such time.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;2. </B><U><B>Change in Control</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;No compensation shall be payable under this Agreement unless and until:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) there shall have been a Change in Control of the Company, while the Executive is
still an employee of the Company; and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive&#146;s employment by the Company thereafter shall have been terminated in
accordance with Section&nbsp;3.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;For purposes of this Agreement, a Change in Control of the Company shall be deemed to have
occurred if:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) There shall be consummated
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any consolidation or merger of the Company in which the Company is not the
continuing or surviving legal entity or pursuant to which shares of the Company&#146;s
Common Stock would be converted into cash, securities, or other property, other than
a merger of the Company in which the holders of the Company&#146;s Common Stock
immediately prior to the merger have the same proportionate ownership of Common
Stock of the surviving company immediately after the merger, or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any sale, lease, exchange, or other transfer (in one transaction or a
series of related transactions) of all, or substantially all, of the assets of the
Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The shareholders of the Company approve any plan or proposal for the liquidation or
dissolution of the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any person (as such term is used in Sections 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;)), shall become the beneficial owner
(within the meaning of Rule&nbsp;13d-3 under the Exchange Act) of twenty
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">percent (20%) or more of the Company&#146;s outstanding Common Stock; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) During any period of two consecutive years, individuals who at the beginning of
such period constitute the entire Board of Directors shall cease for any reason to
constitute a majority thereof unless the election, or the nomination for election by the
Company&#146;s Shareholders, of each new Director was approved by a vote of at least two-thirds
of the Directors then still in office who were Directors at the beginning of the period.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3. </B><U><B>Termination Following Change in Control</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If a Change in Control of the Company shall have occurred while the Executive is still an
employee of the Company, the Executive shall be entitled to the compensation provided in Section&nbsp;4
on the subsequent termination of the Executive&#146;s employment with the Company by the Executive
voluntarily for Good Reason or by the Company without Cause, as such terms are defined in
Subsections (d)&nbsp;and (e)&nbsp;below. If the Executive&#146;s employment with the Company is terminated for
any of the following reasons, no benefits will be payable hereunder:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the
Executive&#146;s death;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive&#146;s Disability (as defined in Subsection (b)&nbsp;below);
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Executive&#146;s Retirement (as defined in Subsection (c)&nbsp;below);
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Executive&#146;s termination by the Company for Cause (as defined in Subsection (d)
below); or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the Executive&#146;s decision to terminate employment other than for Good Reason (as
defined in Subsection (e)&nbsp;below).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Disability</U>: If, as a result of the Executive&#146;s incapacity due to physical or
mental illness, the Executive shall have been absent from his duties with the Company on a
full-time basis for one hundred twenty (120)&nbsp;consecutive days or a period of one hundred eighty
(180)&nbsp;days within twelve (12)&nbsp;consecutive months (including days before and after the Change in
Control) and within 30&nbsp;days after written notice of termination is thereafter given by the Company
the Executive shall not have returned to the full-time performance of the Executive&#146;s duties, the
Executive shall have suffered a &#147;Disability.&#148;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Retirement</U>: The term &#147;Retirement&#148; as used in this Agreement shall mean
termination in accordance with the Company&#146;s retirement policy for its employees.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Cause</U>: For purposes of this Agreement only, the Company shall have &#147;Cause&#148;
to terminate the Executive&#146;s employment hereunder only on the basis of fraud, misappropriation, or
embezzlement on the part of the Executive or malfeasance or misfeasance by the Executive in
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">performing the duties of his office, as determined by the Board. Notwithstanding the
foregoing, the Executive shall not be deemed to have been terminated for Cause unless and until
there shall have been a meeting of the Board (after at least ten (10)&nbsp;days written notice to the
Executive) and an opportunity for the Executive to be heard before the Board), and the delivery to
the Executive of a resolution duly adopted by the affirmative vote of not less than seventy-five
percent (75%) of the entire membership of the Board stating that in the good faith opinion of the
Board the Executive is guilty of conduct set forth in the second sentence of this Subsection (d)
and specifying the particulars thereof in detail.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>Good Reason</U>: The Executive may terminate the Executive&#146;s employment for Good
Reason at any time during the term of this Agreement. For purposes of this Agreement &#147;Good Reason&#148;
shall mean the occurrence of any one or more of the following without the Executive&#146;s express
written consent:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The assignment to the Executive by the Company of duties that are materially
inconsistent with the Executive&#146;s position, duties, responsibilities, and status with the
Company immediately prior to a Change in Control of the Company; a material change in the
Executive&#146;s titles or offices as in effect immediately prior to a Change in Control of the
Company; or any removal of the Executive from or any failure to reelect the Executive to any
of the positions held prior to a Change of Control of the Company, except in connection with
the termination of his employment for death, Disability, Retirement, or Cause or by the
Executive other than for Good Reason;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) A material reduction by the Company in the Executive&#146;s base salary as in effect on
the date hereof or as the same may be increased from time to time during the term of this
Agreement or the Company&#146;s failure to increase (within 12&nbsp;months of the Executive&#146;s last
increase in base salary) the Executive&#146;s base salary after a Change in Control of the
Company in an amount that at least equals, on a percentage basis, the average percentage
increase in base salary for all executive officers of the Company effected in the preceding
12&nbsp;months;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) A failure by the Company to continue in effect any benefit plan or
arrangement (including, without limitation, the Company&#146;s 401(k) Plan, group life insurance
plan and medical, dental, accident, and disability plans) in which the Executive is
participating at the time of a Change in Control of the Company (hereinafter referred to as
&#147;Benefit Plan&#148;) without the substitution of a plan providing him with substantially similar
benefits, or the taking of any action by the Company which would adversely affect the
Executive&#146;s participation in or materially reduce the Executive&#146;s benefits under any such
Benefit Plan or deprive the Executive of any material fringe benefit enjoyed by the Executive
at the time of a Change in Control of the Company without the substitution of a plan or
fringe benefit providing him with substantially similar benefits;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) A failure by the Company to continue in effect any plan or arrangement to receive
securities of the Company (including, without limitation, stock option plans or any other
plan or arrangement to receive and exercise stock options, restricted stock or grants
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">thereof) in which the Executive is participating at the time of a Change in Control of
the Company (a &#147;Securities Plan&#148;) without the substitution of a plan or arrangement providing
him with substantially similar benefits and the taking of any action by the Company that
would adversely affect the Executive&#146;s participation in or materially reduce the Executive&#146;s
benefits under any such Securities Plan without the substitution of a plan or arrangement
providing him with substantially similar benefits;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) A failure by the Company to continue in effect any bonus plan, automobile allowance
plan, or other incentive payment plan in which the Executive is participating at the time of
a Change in Control of the Company, or said Executive had participated in during the previous
calendar year without the substitution of a plan or arrangement providing him with
substantially similar benefits;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) A relocation of the Company&#146;s principal executive offices to a location outside of
North Carolina, or the Executive&#146;s relocation to any place other than the location at which
the Executive performed the Executive&#146;s duties prior to a Change in Control of the Company,
except for required travel by the Executive on the Company&#146;s business to an extent
substantially consistent with the Executive&#146;s business travel obligations at the time of a
Change in Control of the Company;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) A failure by the Company to provide the Executive with the number of paid vacation
days to which the Executive is entitled at the time of a Change in Control of the Company;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) A material breach by the Company of any provision of this Agreement;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) A failure by the Company to obtain the assumption of this Agreement by any
successor or assign of the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) A purported termination of the Executive&#146;s employment which is not made pursuant
to a Notice of Termination satisfying the requirements of Subsection (f).
</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">In order to terminate his employment with the Company for Good Reason, the Executive must also
comply with the notice requirements of Subsection (f).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>Notice of Termination</U>:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any termination by the Company pursuant to Subsections (b), (c)&nbsp;or (d)&nbsp;shall be
communicated by a Notice of Termination. For purposes of this Agreement, a &#147;Notice of
Termination&#148; shall mean a written notice that shall indicate those specific termination
provisions in this Agreement relied on and which sets forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of the Executive&#146;s employment
under the provision so indicated. For purposes of this Agreement, no such purported
termination by the Company shall be effective without such Notice of Termination.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any termination by the Executive pursuant to Subsection (e)&nbsp;shall be communicated
by a Notice of Termination. For purposes of this Agreement, a &#147;Notice of Termination&#148; shall
mean a written notice that shall indicate those specific termination provisions in this
Agreement relied on and which sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive&#146;s employment under the provision
so indicated. For purposes of this Agreement, no such purported termination by the Company
shall be effective without such Notice of Termination.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Executive&#146;s provision of a Notice of Termination must be within ninety (90)
days following the facts and circumstances claimed to provide a basis for termination for
Good Reason.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<U>Date of Termination</U>: &#147;Date of Termination&#148; shall mean:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If Executive&#146;s employment is terminated by the Company for Disability, thirty (30)
days after the Notice of Termination is given to the Executive (provided that the Executive
shall not have returned to the performance of the Executive&#146;s duties on a full-time basis
during such thirty (30)&nbsp;day period), or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the Executive&#146;s employment is terminated by the Company for any other reason,
the date on which a Notice of Termination is given; provided that if within thirty (30)&nbsp;days
after any Notice of Termination is given to the Executive by the Company the Executive
notifies the Company that a dispute exists concerning the termination, the Date of
Termination shall be the date the dispute is finally determined, whether by mutual agreement
by the parties or otherwise, or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If the Executive&#146;s employment is terminated by the Executive for Good Reason,
thirty (30)&nbsp;days after the Notice of Termination is given to the Executive (provided that
the Company shall not have cured the facts and circumstances claimed to provide a basis for
termination of the Executive&#146;s employment under the provision so indicated during such
thirty (30)&nbsp;day period); provided that if within thirty (30)&nbsp;days after any Notice of
Termination is given to the Company by the Executive, the Company notifies the Executive
that a dispute exists concerning the termination, the Date of Termination shall be the date
the dispute is finally determined, whether by mutual agreement by the parties or otherwise.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;4. </B><U><B>Severance Compensation on Termination of Employment</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If the Company shall terminate the Executive&#146;s employment other than pursuant to Section
3(b), 3(c) or 3(d) or if the Executive shall voluntarily terminate his employment for Good Reason
pursuant to Section&nbsp;3(e), then the Company shall pay to the Executive as severance pay an amount
equal to 2.99 times the average total compensation paid to the Executive by the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">Company or any of its subsidiaries during the five (5)&nbsp;calendar years (or the period of the
Executive&#146;s employment with the Company if the Executive has been employed with the Company for
less than five calendar years) preceding the Change in Control of the Company.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;However, if the severance payment under this Section&nbsp;4, either alone or together with
other payments that the Executive has the right to receive from the Company, would constitute a
&#147;parachute payment&#148; (as defined in section 280G of the Code), such severance payment shall be
reduced to the largest amount as will result in no portion of the severance payment under this
Section&nbsp;4 being subject to the excise tax imposed by section 4999 of the Code. The determination
of any reduction in the lump sum severance payment under this Section&nbsp;4 pursuant to the foregoing
proviso shall be made by the Company&#146;s Independent Certified Public Accountants, and their decision
shall be conclusive and binding on the Company and the Executive.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Such amount shall be paid in twenty-four (24)&nbsp;equal monthly installments, without
interest, beginning on the regular payroll date for salaried employees of the Company in the month
following the Executive&#146;s Date of Termination.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Notwithstanding the provisions of Subsection (c)&nbsp;to the contrary, the Company and
Executive further acknowledge that if the Executive is determined to be a &#147;specified employee&#148;, as
such term is defined in section 409A of the Code at the date that payments are otherwise scheduled
to commence in Subsection (c), that certain payments to Executive under this Agreement may be
required to be postponed to comply with section 409A. Thus, the parties agree that, in such event,
any payments that are so postponed will be paid to Executive, without interest, on the first day of
the calendar month following the end of the required postponement period.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;If the Executive dies while any amounts are still payable to him hereunder, all such
amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the Executive&#146;s legatee, or other designee or, if there be no such designee, to the
Executive&#146;s estate.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5. </B><U><B>No Obligation to Mitigate Damages; No Effect on Other Contractual Rights</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Executive shall not be required to mitigate damages or the amount of any payment
provided for under this Agreement by seeking other employment or otherwise, nor shall the amount of
any payment provided for under this Agreement be reduced by any compensation earned by the
Executive as the result of employment by another employer that is not related to the Company after
the Date of Termination, or otherwise.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as set forth in Section&nbsp;4(b), the provisions of this Agreement, and any payment
provided for hereunder, shall not reduce any amounts otherwise payable, or in any way diminish the
Executive&#146;s rights under any employment agreement or other contract, plan, or
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">employment arrangement with the Company.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Company shall, on the termination of the Executive&#146;s employment following a Change in
Control of the Company other than by death, Disability (as defined in Section&nbsp;3(b)), Retirement (as
defined in Section&nbsp;3(c)) or Cause (as defined in Section&nbsp;3(d)), or the termination of the
Executive&#146;s employment by the Executive without Good Reason, maintain in full force and effect, for
the Executive&#146;s continued benefit until the earlier of:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
two (2)&nbsp;years after the Date of Termination, or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive&#146;s commencement of full time employment with a new employer,
</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">all life insurance, medical, health and accident, and disability plans, programs, or arrangements
in which he was entitled to participate immediately prior to the Date of Termination, provided that
his continued participation is possible under the general terms and provisions of such plans and
programs. In the event the Executive is ineligible under the terms of such plans or programs to
continue to be so covered, the Company shall provide substantially equivalent coverage through
other sources.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Executive&#146;s account and rights in and under any retirement benefit or incentive plans
shall remain subject to the terms and conditions of the respective plans as they existed at the
time of the termination of the Executive&#146;s employment.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;6. </B><U><B>Successors</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company will require any successor or assign (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business and/or assets of
the Company, by agreement expressly, absolutely and unconditionally to assume and agree to perform
this Agreement in the same manner and to the same extent that the Company would be required to
perform it if no such succession or assignment had taken place. Any failure of the Company to
obtain such agreement prior to the effectiveness of any such succession or assignment shall be a
material breach of this Agreement and shall entitle the Executive to terminate the Executive&#146;s
employment for Good Reason under Section&nbsp;3.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Company&#148; shall mean the Company as hereinbefore defined and any successor or assign to
its business and/or assets as aforesaid that executes and delivers the agreement provided for in
this Section&nbsp;6 or which otherwise becomes bound by all the terms and provisions of this Agreement
by operation of law. If at any time during the term of this Agreement the Executive is employed by
any corporation a majority of the voting securities of which is then owned by the Company,
&#147;Company&#148; as used in Sections&nbsp;3, 4, and 10 hereof shall in addition include such employer. In such
event, the Company agrees that it shall pay or shall cause such employer to pay any amounts owed to
the Executive pursuant to Section&nbsp;4 hereof.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;This Agreement shall inure to the benefit of and be enforceable by the Executive&#146;s
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">legal representatives or attorney-in-fact, executors or administrators, heirs, distributees
and legatees.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;7. </B><U><B>Notice</B></U> For purposes of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be deemed to have been
duly given when delivered or mailed by United States registered mail, return receipt requested,
postage prepaid, as follows:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Company:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 10%">Unifi, Inc.<BR>
P. O. Box 19109<BR>
Greensboro, NC 27419-9109<BR>
ATTENTION: General Counsel (currently Charles F. McCoy)

</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Executive:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 10%">Mr.&nbsp;Thomas H. Caudle, Jr.<BR>
9116 Great Meadows Drive<BR>
Clemmons, NC 27012

</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">or such other address as either party may have furnished to the other in writing in
accordance herewith, except that notices of change of address shall be effective only on receipt.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;8. </B><U><B>Miscellaneous</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The invalidity or unenforceability of any provisions of this Agreement shall not affect
the validity or enforceability of any other provision of this Agreement, which shall remain in full
force and effect.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Any payment or delivery required under this Agreement shall be subject to all requirements
of the law with regard to withholding (including FICA tax), filing, making of reports and the like,
and Company shall use its best efforts to satisfy promptly all such requirements.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;9. </B><U><B>Legal Fees and Expenses</B></U> The Company shall pay all reasonable legal fees
and expenses that the Executive may incur as a result of the Company&#146;s contesting the validity,
enforceability or the Executive&#146;s interpretation of, or determinations under, this Agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;10. </B><U><B>Disclosure of Confidential Information</B></U> Executive agrees that:
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;During the term of this Agreement and for a period of five (5)&nbsp;years after his Date of
Termination, he will not disclose or make available to any person or other entity any trade
secrets, Confidential Information, or &#147;know-how&#148; relating to the Company&#146;s, its affiliates&#146; and
subsidiaries&#146; businesses without written authority from the Board, unless he is compelled to
disclose it by judicial process.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Confidential Information&#148; shall mean all information about the Company, its affiliates or
subsidiaries, or relating to any of their products, services, or any phase of their operations, not
generally known to their Competitors or which is not public information, that the Executive knows
or of which the Executive acquired knowledge during the term of his employment with the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Under
no circumstances shall Executive remove from the Company&#146;s offices any of the
Company&#146;s books, records, documents, files, computer discs or information, reports, presentations,
customer lists, or any copies of such documents for use outside of his employment with the Company,
except as specifically authorized in writing by the Board.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;11. </B><U><B>Non-Compete</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Executive agrees that, during the period of employment and for a period of two (2)&nbsp;years
after his Date of Termination, he will not, directly or indirectly:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Seek employment or consulting arrangements with or offer advice, suggestions, or
input to any Competitor of the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Own any interest in, other than ownership of less than two percent (2%) of any
class of stock of a publicly held corporation, manage, operate, control, be employed by,
render advisory services to, act as a consultant to, participate in, assess or be connected
with any Competitor of the Company, unless approved by the Board; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Solicit, induce, or attempt to induce any past or current customer of the Company
(A) to cease doing business in whole or in part with or through the Company; or (B)&nbsp;to do
business with any other person, firm, partnership, corporation, or other entity that sells
products or performs services materially similar to or competitive with those provided by
the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Initiate, encourage, or solicit for employment any person who is now employed or
during the term of this Agreement becomes employed by the Company (or whose activities or
services are dedicated to the Company).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Competitor&#148; shall mean any individual, partnership, joint venture, firm, corporation,
limited liability company, business trust, association, trust, or other enterprise (whether or not
incorporated) engaged in the business of developing, producing, manufacturing, selling and/or
distributing a product or providing services similar to any product produced or
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">service provided by the Company, its affiliates, or subsidiaries.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;12. </B><U><B>Remedy for Violation of Sections&nbsp;10 and 11</B></U> The Executive acknowledges that
the Company has no adequate remedy at law and will be irreparably harmed if the Executive breaches
or threatens to breach the provisions of Sections&nbsp;10 or 11 of this Agreement, and therefore, agrees
that the Company shall be entitled to injunctive relief to prevent any breach or threatened breach
of such Sections and that the Company shall be entitled to specific performance of the terms of
such Sections in addition to any other legal or equitable remedy it may have. Nothing in this
Agreement shall be construed as prohibiting the Company from pursuing any other remedies at law or
in equity that it may have or any other rights that it may have under any other agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section
13.&nbsp;</B><U><B>Arbitration</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Any dispute or controversy between the Company and the Executive, whether arising out of
or relating to this Agreement, the breach of this Agreement, or otherwise, shall be settled by
arbitration administered by the American Arbitration Association (&#147;AAA&#148;) in accordance with its
Commercial Arbitration Rules then in effect, and judgment on the award rendered by the arbitrator
may be entered in any court having jurisdiction thereof. Any arbitration shall be held before a
single arbitrator who shall be selected by the mutual agreement of the Company and the Executive.
However, if the parties are unable to agree to an arbitrator, the arbitrator will be selected under
the procedures of the AAA.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The arbitrator shall have the authority to award any remedy or relief that a court of
competent jurisdiction could order or grant, including, without limitation, the issuance of an
injunction. However, either party may, without inconsistency with this arbitration provision,
apply to any court having jurisdiction over such dispute relief until the arbitration award is
rendered or the controversy is otherwise resolved.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as necessary in court proceedings to enforce this arbitration provision or an award
rendered hereunder or to obtain interim relief, neither a party nor an arbitrator may disclose the
existence, content or results of any arbitration hereunder without the prior written consent of the
Company and the Executive.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Company and the Executive acknowledge that this Agreement evidences a transaction
involving interstate commerce. Notwithstanding any choice of law provision included in this
Agreement, the United States Federal Arbitration Act shall govern the interpretation and
enforcement of this arbitration provision. The arbitration proceeding shall be conducted in
Greensboro, North Carolina or such other location to which the parties may agree. The Company
shall pay the costs of any arbitrator appointed hereunder.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section
14.&nbsp;</B><U><B>Amendment and Termination</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Amendment</U>. This Agreement may be amended by the Company at any time, or from time
to time, but no such amendment shall reduce Executive&#146;s benefit hereunder, determined as of the
date of amendment, and provided that such amendment is approved by both the Company and the
Executive.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Termination</U>. The Company retains the discretion to terminate this Agreement if
(i)&nbsp;all arrangements sponsored by the Company that would be aggregated with any terminated
arrangement under Code section 409A and Treas. Reg.
&#167;1.409A-1(c)(2) are terminated, (ii)&nbsp;no payments
(other than payments that would be payable under the terms of the arrangements if the termination
had not occurred) are made within twelve (12)&nbsp;months of the
termination of the arrangements, (iii)
all payments are made within twenty-four (24)&nbsp;months of the
termination of the arrangements, (iv)
the Company does not adopt a new arrangement that would be aggregated with any terminated
arrangement under Code section 409A and the regulations thereunder at any time within the three (3)
year period following the date of termination of the arrangement, and
(v)&nbsp;the termination does not
occur proximate to a downturn in the financial health of the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Interpretation</U>. The termination provisions of this Section will be construed in
accordance with Treas. Reg. &#167;1.409A-3(j)(4)(ix). Further, the Company reserves the right to amend
the Agreement to provide that termination of the Agreement will occur under such conditions and
events as may be prescribed by the Secretary of the Treasury in generally applicable guidance
published in the Internal Revenue Bulletin.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section
15.&nbsp;</B><U><B>Section&nbsp;409A Compliance</B></U>. It is intended that this Agreement comply with Code
section 409A, with any Treasury Regulations promulgated thereunder, and with other generally
applicable guidance and transition rules issued thereunder. The Agreement shall be interpreted and
operated consistently with that intent. If the Company shall determine that any provision of this
Agreement does not comply with the requirements of Code section 409A, the Company shall have the
authority to amend the Agreement to the extent necessary (including retroactively) in order to
preserve compliance with Code section 409A. The Company shall also have the discretionary
authority to take such other actions as may be permissible to correct any failures to comply in
operation with the requirements of Code section 409A.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF, </B>Unifi, Inc. has caused this Agreement to be signed by an officer of the
Company and a member of the Company&#146;s Compensation Committee pursuant to resolutions duly adopted
by the Board of Directors and its seal affixed hereto and the Executive has hereunto affixed his
hand and seal effective as of the date first above written.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top"><B>UNIFI, INC.</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Charles F. McCoy</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Charles F. McCoy<BR>
Vice President, Secretary &#038;<BR>
General Counsel</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">William M. Sams</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">William M. Sams<BR>
Chairman of the Compensation Committee<BR>
of the Board of Directors</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top"><B>EXECUTIVE</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">Thomas H. Caudle, Jr.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(Seal)</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">Thomas H. Caudle, Jr.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SCHEDULE A<BR>
DELAYS IN DISTRIBUTION; ACCELERATION EVENTS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;A.1 <U>Permitted Delays in Payment</U>. Distributions may be delayed beyond
the date payment would otherwise occur in accordance with the provisions of the Agreement in
any of the following circumstances.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company may delay payment if it reasonably anticipates that the making of the
payment will violate federal securities laws or other applicable laws, provided that payment
is made at the earliest date on which the Company reasonably anticipates that the making of
the payment will not cause such violation.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company reserves the right to amend the Agreement to provide for a delay in
payment on such other events and conditions as the Secretary of the Treasury may prescribe
in generally applicable guidance published in the Internal Revenue Bulletin.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;A.2 <U>Permitted Acceleration Events; Cancellation of Deferral Elections</U>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;At the Executive&#146;s request, the Company shall permit the acceleration of the time
and form of a payment under the Agreement under the following circumstances:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) A payment to the extent necessary for any federal officer in the executive
branch of the U.S. government to comply with an ethics agreement with the federal
government.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) A payment to the extent reasonably necessary to avoid the violation of any
applicable ethics or conflicts of interest law in accordance with Treas. Reg.
&#167;1.409A-3(j)(4)(iii).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) A payment equal to the U.S. employment tax imposed on compensation deferred
under the Agreement, plus the amount of applicable income tax required to be
withheld at source on such amount.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) If the Agreement fails to meet the requirements of Code section 409A and
the regulations promulgated thereunder, a payment not to exceed the amount required
to be included in income as a result of such failure to comply.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) A payment to reflect the payment of applicable state, local, and foreign
tax obligations arising from participation in the Agreement that apply to the amount
deferred under the Agreement before the amount is paid or made available to the
Executive, in accordance with Treas. Reg. &#167;1.409A-3(j)(4)(xi).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) A payment or reduction as a satisfaction of the Executive&#146;s debt to
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">the Company, where (A)&nbsp;such debt has been incurred in the ordinary course of
the parties&#146; relationship, (B)&nbsp;the entire amount of the payment/reduction in any of
the Executive&#146;s tax years does not exceed $5,000, and (C)&nbsp;the payment/reduction is
made at the same time and in the same amount as the debt would otherwise have been
due and collected.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) A payment that is part of a settlement between the Executive and the
Company of a bona fide dispute as to the Executive&#146;s right to the deferred amount,
in accordance with Treas. Reg. &#167;1.409A-3(j)(4)(xiv).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company shall permit the acceleration of the time and form of a payment to make
a lump sum payment of amounts deferred on behalf of the Executive, provided that:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The payment results in the termination and liquidation of the entirety of
the Executive&#146;s interest hereunder and all other plans and arrangements that are
deemed to be a single nonqualified deferred compensation plan under Treas. Reg.
&#167;1.409A-1(c)(2),
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The payment is not greater than the applicable amount under Code section
402(g), and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Such payment is mandatory and is not solely at the Executive&#146;s request.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Company reserves the right to amend this Agreement to provide for an
acceleration of payment on such other events and conditions as the Secretary of the Treasury
may prescribe in generally applicable guidance published in the Internal Revenue Bulletin.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>g20224exv10w4.htm
<DESCRIPTION>EX-10.4
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-10.4</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.4</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CHANGE IN CONTROL AGREEMENT<BR>
FOR<BR>
CHARLES F. MCCOY</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS CHANGE OF CONTROL AGREEMENT </B>(&#147;Agreement&#148;) between <B>UNIFI, INC.</B>, a New York Corporation
(the &#147;Company&#148;), and <B>Charles F. McCoy </B>(the &#147;Executive&#148;) effective the 14<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of
August, 2009 (the &#147;Effective Date&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WITNESSETH:</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Vice President, Secretary, General Counsel, Chief Risk Officer and Corporate
Governance &#038; Compliance Officer of the Company and is considered as an integral part of the
Company&#146;s management; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Company&#146;s Board of Directors (the &#147;Board&#148;) considers the establishment and
maintenance of a sound and vital management to be essential in protecting and enhancing the best
interests of the Company and its Shareholders, recognizes that the possibility of a Change in
Control exists and that such possibility, and the uncertainty and questions which it may raise
among management, may result in the departure or distraction of management personnel to the
detriment of the Company and its Shareholders; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Executive desires that in the event of any Change in Control he will continue to
have the responsibility and status he has earned; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Board has determined that it is appropriate to reinforce and encourage the
continued attention and dedication of the Executive, as a member of the Company&#146;s management, to
his assigned duties without distraction in potentially disturbing circumstances arising from the
possibility of a Change in Control of the Company; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the Executive and the Company have previously entered a Change in Control Agreement
which, by its own terms, expired November&nbsp;1, 2008; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the Executive and the Company desire to enter a new Change in Control Agreement that
complies with the provisions of section 409A of the Internal Revenue Code of 1986, as amended (the
&#147;Code&#148;).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW, THEREFORE, </B>in order to induce the Executive to remain in the employment of the Company
and in consideration of the Executive agreeing to remain in the employment of the Company, subject
to the terms and conditions set out below, the Company agrees it will pay such amount, as provided
in Section&nbsp;4 of this Agreement, to the Executive, if the Executive&#146;s employment with the Company
terminates under one of the circumstances described herein following a Change in Control of the
Company, as herein defined.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;1. </B><U><B>Term</B></U> This Agreement shall terminate, except to the extent that any
obligation of the Company hereunder remains unpaid as of such time, on the <U>earliest</U> of:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;December&nbsp;31, 2011 if a Change in Control of the Company has not occurred within such
period;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The termination of the Executive&#146;s employment with the Company for any reason prior to a
Change in Control; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Two (2)&nbsp;years from the date of a Change in Control of the Company if the Executive has not
voluntarily terminated his employment for Good Reason as of such time.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;2. </B><U><B>Change in Control</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;No compensation shall be payable under this Agreement unless and until:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) there shall have been a Change in Control of the Company, while the Executive is
still an employee of the Company; and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive&#146;s employment by the Company thereafter shall have been terminated in
accordance with Section&nbsp;3.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;For purposes of this Agreement, a Change in Control of the Company shall be deemed to have
occurred if:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) There shall be consummated
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any consolidation or merger of the Company in which the Company is not the
continuing or surviving legal entity or pursuant to which shares of the Company&#146;s
Common Stock would be converted into cash, securities, or other property, other than
a merger of the Company in which the holders of the Company&#146;s Common Stock
immediately prior to the merger have the same proportionate ownership of Common
Stock of the surviving company immediately after the merger, or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any sale, lease, exchange, or other transfer (in one transaction or a
series of related transactions) of all, or substantially all, of the assets of the
Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The shareholders of the Company approve any plan or proposal for the liquidation or
dissolution of the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any person (as such term is used in Sections 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;)), shall become the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">beneficial owner (within the meaning of Rule&nbsp;13d-3 under the Exchange Act) of twenty
percent (20%) or more of the Company&#146;s outstanding Common Stock; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) During any period of two consecutive years, individuals who at the beginning of
such period constitute the entire Board of Directors shall cease for any reason to
constitute a majority thereof unless the election, or the nomination for election by the
Company&#146;s Shareholders, of each new Director was approved by a vote of at least two-thirds
of the Directors then still in office who were Directors at the beginning of the period.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3. </B><U><B>Termination Following Change in Control</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If a Change in Control of the Company shall have occurred while the Executive is still an
employee of the Company, the Executive shall be entitled to the compensation provided in Section&nbsp;4
on the subsequent termination of the Executive&#146;s employment with the Company by the Executive
voluntarily for Good Reason or by the Company without Cause, as such terms are defined in
Subsections (d)&nbsp;and (e)&nbsp;below. If the Executive&#146;s employment with the Company is terminated for
any of the following reasons, no benefits will be payable hereunder:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
the Executive&#146;s death;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive&#146;s Disability (as defined in Subsection (b)&nbsp;below);
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Executive&#146;s Retirement (as defined in Subsection (c)&nbsp;below);
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Executive&#146;s termination by the Company for Cause (as defined in Subsection (d)
below); or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the Executive&#146;s decision to terminate employment other than for Good Reason (as
defined in Subsection (e)&nbsp;below).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Disability</U>: If, as a result of the Executive&#146;s incapacity due to physical or
mental illness, the Executive shall have been absent from his duties with the Company on a
full-time basis for one hundred twenty (120)&nbsp;consecutive days or a period of one hundred eighty
(180)&nbsp;days within twelve (12)&nbsp;consecutive months (including days before and after the Change in
Control) and within 30&nbsp;days after written notice of termination is thereafter given by the Company
the Executive shall not have returned to the full-time performance of the Executive&#146;s duties, the
Executive shall have suffered a &#147;Disability.&#148;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Retirement</U>: The term &#147;Retirement&#148; as used in this Agreement shall mean
termination in accordance with the Company&#146;s retirement policy for its employees.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Cause</U>: For purposes of this Agreement only, the Company shall have &#147;Cause&#148;
to terminate the Executive&#146;s employment hereunder only on the basis of fraud, misappropriation, or
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">embezzlement on the part of the Executive or malfeasance or misfeasance by the Executive in
performing the duties of his office, as determined by the Board. Notwithstanding the foregoing,
the Executive shall not be deemed to have been terminated for Cause unless and until there shall
have been a meeting of the Board (after at least ten (10)&nbsp;days written notice to the Executive) and
an opportunity for the Executive to be heard before the Board), and the delivery to the Executive
of a resolution duly adopted by the affirmative vote of not less than seventy-five percent (75%) of
the entire membership of the Board stating that in the good faith opinion of the Board the
Executive is guilty of conduct set forth in the second sentence of this Subsection (d)&nbsp;and
specifying the particulars thereof in detail.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>Good Reason</U>: The Executive may terminate the Executive&#146;s employment for Good
Reason at any time during the term of this Agreement. For purposes of this Agreement &#147;Good Reason&#148;
shall mean the occurrence of any one or more of the following without the Executive&#146;s express
written consent:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The assignment to the Executive by the Company of duties that are materially
inconsistent with the Executive&#146;s position, duties, responsibilities, and status with the
Company immediately prior to a Change in Control of the Company; a material change in the
Executive&#146;s titles or offices as in effect immediately prior to a Change in Control of the
Company; or any removal of the Executive from or any failure to reelect the Executive to any
of the positions held prior to a Change of Control of the Company, except in connection with
the termination of his employment for death, Disability, Retirement, or Cause or by the
Executive other than for Good Reason;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) A material reduction by the Company in the Executive&#146;s base salary as in effect on
the date hereof or as the same may be increased from time to time during the term of this
Agreement or the Company&#146;s failure to increase (within 12&nbsp;months of the Executive&#146;s last
increase in base salary) the Executive&#146;s base salary after a Change in Control of the
Company in an amount that at least equals, on a percentage basis, the average percentage
increase in base salary for all executive officers of the Company effected in the preceding
12&nbsp;months;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) A failure by the Company to continue in effect any benefit plan or
arrangement (including, without limitation, the Company&#146;s 401(k) Plan, group life insurance
plan and medical, dental, accident, and disability plans) in which the Executive is
participating at the time of a Change in Control of the Company (hereinafter referred to as
&#147;Benefit Plan&#148;) without the substitution of a plan providing him with substantially similar
benefits, or the taking of any action by the Company which would adversely affect the
Executive&#146;s participation in or materially reduce the Executive&#146;s benefits under any such
Benefit Plan or deprive the Executive of any material fringe benefit enjoyed by the Executive
at the time of a Change in Control of the Company without the substitution of a plan or
fringe benefit providing him with substantially similar benefits;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) A failure by the Company to continue in effect any plan or arrangement to receive
securities of the Company (including, without limitation, stock option plans or any
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">other plan or arrangement to receive and exercise stock options, restricted stock or
grants thereof) in which the Executive is participating at the time of a Change in Control of
the Company (a &#147;Securities Plan&#148;) without the substitution of a plan or arrangement providing
him with substantially similar benefits and the taking of any action by the Company that
would adversely affect the Executive&#146;s participation in or materially reduce the Executive&#146;s
benefits under any such Securities Plan without the substitution of a plan or arrangement
providing him with substantially similar benefits;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) A failure by the Company to continue in effect any bonus plan, automobile allowance
plan, or other incentive payment plan in which the Executive is participating at the time of
a Change in Control of the Company, or said Executive had participated in during the previous
calendar year without the substitution of a plan or arrangement providing him with
substantially similar benefits;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) A relocation of the Company&#146;s principal executive offices to a location outside of
North Carolina, or the Executive&#146;s relocation to any place other than the location at which
the Executive performed the Executive&#146;s duties prior to a Change in Control of the Company,
except for required travel by the Executive on the Company&#146;s business to an extent
substantially consistent with the Executive&#146;s business travel obligations at the time of a
Change in Control of the Company;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) A failure by the Company to provide the Executive with the number of paid vacation
days to which the Executive is entitled at the time of a Change in Control of the Company;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) A material breach by the Company of any provision of this Agreement;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) A failure by the Company to obtain the assumption of this Agreement by any
successor or assign of the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) A purported termination of the Executive&#146;s employment which is not made pursuant
to a Notice of Termination satisfying the requirements of Subsection (f).
</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">In order to terminate his employment with the Company for Good Reason, the Executive must also
comply with the notice requirements of Subsection (f).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>Notice of Termination</U>:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any termination by the Company pursuant to Subsections (b), (c)&nbsp;or (d)&nbsp;shall be
communicated by a Notice of Termination. For purposes of this Agreement, a &#147;Notice of
Termination&#148; shall mean a written notice that shall indicate those specific termination
provisions in this Agreement relied on and which sets forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of the Executive&#146;s employment
under the provision so indicated. For purposes of this Agreement, no such purported
termination by the Company shall be effective without
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">such Notice of Termination.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any termination by the Executive pursuant to Subsection (e)&nbsp;shall be communicated
by a Notice of Termination. For purposes of this Agreement, a &#147;Notice of Termination&#148; shall
mean a written notice that shall indicate those specific termination provisions in this
Agreement relied on and which sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive&#146;s employment under the provision
so indicated. For purposes of this Agreement, no such purported termination by the Company
shall be effective without such Notice of Termination.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Executive&#146;s provision of a Notice of Termination must be within ninety (90)
days following the facts and circumstances claimed to provide a basis for termination for
Good Reason.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<U>Date of Termination</U>: &#147;Date of Termination&#148; shall mean:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If Executive&#146;s employment is terminated by the Company for Disability, thirty (30)
days after the Notice of Termination is given to the Executive (provided that the Executive
shall not have returned to the performance of the Executive&#146;s duties on a full-time basis
during such thirty (30)&nbsp;day period), or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the Executive&#146;s employment is terminated by the Company for any other reason,
the date on which a Notice of Termination is given; provided that if within thirty (30)&nbsp;days
after any Notice of Termination is given to the Executive by the Company the Executive
notifies the Company that a dispute exists concerning the termination, the Date of
Termination shall be the date the dispute is finally determined, whether by mutual agreement
by the parties or otherwise, or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If the Executive&#146;s employment is terminated by the Executive for Good Reason,
thirty (30)&nbsp;days after the Notice of Termination is given to the Executive (provided that
the Company shall not have cured the facts and circumstances claimed to provide a basis for
termination of the Executive&#146;s employment under the provision so indicated during such
thirty (30)&nbsp;day period); provided that if within thirty (30)&nbsp;days after any Notice of
Termination is given to the Company by the Executive, the Company notifies the Executive
that a dispute exists concerning the termination, the Date of Termination shall be the date
the dispute is finally determined, whether by mutual agreement by the parties or otherwise.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;4. </B><U><B>Severance Compensation on Termination of Employment</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If the Company shall terminate the Executive&#146;s employment other than pursuant to Section
3(b), 3(c) or 3(d) or if the Executive shall voluntarily terminate his employment for Good Reason
pursuant to Section&nbsp;3(e), then the Company shall pay to the Executive as severance
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">pay an amount equal to 2.99 times the average total compensation paid to the Executive by the
Company or any of its subsidiaries during the five (5)&nbsp;calendar years (or the period of the
Executive&#146;s employment with the Company if the Executive has been employed with the Company for
less than five calendar years) preceding the Change in Control of the Company.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;However, if the severance payment under this Section&nbsp;4, either alone or together with
other payments that the Executive has the right to receive from the Company, would constitute a
&#147;parachute payment&#148; (as defined in section 280G of the Code), such severance payment shall be
reduced to the largest amount as will result in no portion of the severance payment under this
Section&nbsp;4 being subject to the excise tax imposed by section 4999 of the Code. The determination
of any reduction in the lump sum severance payment under this Section&nbsp;4 pursuant to the foregoing
proviso shall be made by the Company&#146;s Independent Certified Public Accountants, and their decision
shall be conclusive and binding on the Company and the Executive.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Such amount shall be paid in twenty-four (24)&nbsp;equal monthly installments, without
interest, beginning on the regular payroll date for salaried employees of the Company in the month
following the Executive&#146;s Date of Termination.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Notwithstanding the provisions of Subsection (c)&nbsp;to the contrary, the Company and
Executive further acknowledge that if the Executive is determined to be a &#147;specified employee&#148;, as
such term is defined in section 409A of the Code at the date that payments are otherwise scheduled
to commence in Subsection (c), that certain payments to Executive under this Agreement may be
required to be postponed to comply with section 409A. Thus, the parties agree that, in such event,
any payments that are so postponed will be paid to Executive, without interest, on the first day of
the calendar month following the end of the required postponement period.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;If the Executive dies while any amounts are still payable to him hereunder, all such
amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the Executive&#146;s legatee, or other designee or, if there be no such designee, to the
Executive&#146;s estate.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5. </B><U><B>No Obligation to Mitigate Damages; No Effect on Other Contractual Rights</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Executive shall not be required to mitigate damages or the amount of any payment
provided for under this Agreement by seeking other employment or otherwise, nor shall the amount of
any payment provided for under this Agreement be reduced by any compensation earned by the
Executive as the result of employment by another employer that is not related to the Company after
the Date of Termination, or otherwise.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as set forth in Section&nbsp;4(b), the provisions of this Agreement, and any payment
provided for hereunder, shall not reduce any amounts otherwise payable, or in any way
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">diminish the Executive&#146;s rights under any employment agreement or other contract, plan, or
employment arrangement with the Company.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Company shall, on the termination of the Executive&#146;s employment following a Change in
Control of the Company other than by death, Disability (as defined in Section&nbsp;3(b)), Retirement (as
defined in Section&nbsp;3(c)) or Cause (as defined in Section&nbsp;3(d)), or the termination of the
Executive&#146;s employment by the Executive without Good Reason, maintain in full force and effect, for
the Executive&#146;s continued benefit until the earlier of:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
two (2)&nbsp;years after the Date of Termination, or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive&#146;s commencement of full time employment with a new employer,
</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">all life insurance, medical, health and accident, and disability plans, programs, or arrangements
in which he was entitled to participate immediately prior to the Date of Termination, provided that
his continued participation is possible under the general terms and provisions of such plans and
programs. In the event the Executive is ineligible under the terms of such plans or programs to
continue to be so covered, the Company shall provide substantially equivalent coverage through
other sources.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Executive&#146;s account and rights in and under any retirement benefit or incentive plans
shall remain subject to the terms and conditions of the respective plans as they existed at the
time of the termination of the Executive&#146;s employment.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;6. </B><U><B>Successors</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company will require any successor or assign (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business and/or assets of
the Company, by agreement expressly, absolutely and unconditionally to assume and agree to perform
this Agreement in the same manner and to the same extent that the Company would be required to
perform it if no such succession or assignment had taken place. Any failure of the Company to
obtain such agreement prior to the effectiveness of any such succession or assignment shall be a
material breach of this Agreement and shall entitle the Executive to terminate the Executive&#146;s
employment for Good Reason under Section&nbsp;3.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Company&#148; shall mean the Company as hereinbefore defined and any successor or assign to
its business and/or assets as aforesaid that executes and delivers the agreement provided for in
this Section&nbsp;6 or which otherwise becomes bound by all the terms and provisions of this Agreement
by operation of law. If at any time during the term of this Agreement the Executive is employed by
any corporation a majority of the voting securities of which is then owned by the Company,
&#147;Company&#148; as used in Sections&nbsp;3, 4, and 10 hereof shall in addition include such employer. In such
event, the Company agrees that it shall pay or shall cause such employer to pay any amounts owed to
the Executive pursuant to Section&nbsp;4 hereof.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;This Agreement shall inure to the benefit of and be enforceable by the Executive&#146;s legal
representatives or attorney-in-fact, executors or administrators, heirs, distributees and legatees.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;7. </B><U><B>Notice</B></U> For purposes of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be deemed to have been
duly given when delivered or mailed by United States registered mail, return receipt requested,
postage prepaid, as follows:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Company:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 10%">Unifi, Inc.<BR>
P. O. Box 19109<BR>
Greensboro, NC 27419-9109<BR>
ATTENTION: General Counsel

</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Executive:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 10%">Mr.&nbsp;Charles F. McCoy<BR>
5938 Tarleton Drive<BR>
Oak Ridge, NC 27310

</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">or such other address as either party may have furnished to the other in writing in
accordance herewith, except that notices of change of address shall be effective only on receipt.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;8. </B><U><B>Miscellaneous</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The invalidity or unenforceability of any provisions of this Agreement shall not affect
the validity or enforceability of any other provision of this Agreement, which shall remain in full
force and effect.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Any payment or delivery required under this Agreement shall be subject to all requirements
of the law with regard to withholding (including FICA tax), filing, making of reports and the like,
and Company shall use its best efforts to satisfy promptly all such requirements.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;9. </B><U><B>Legal Fees and Expenses</B></U> The Company shall pay all reasonable legal fees
and expenses that the Executive may incur as a result of the Company&#146;s contesting the validity,
enforceability or the Executive&#146;s interpretation of, or determinations under, this Agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;10. </B><U><B>Disclosure of Confidential Information</B></U> Executive agrees that:
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;During the term of this Agreement and for a period of five (5)&nbsp;years after his Date of
Termination, he will not disclose or make available to any person or other entity any trade
secrets, Confidential Information, or &#147;know-how&#148; relating to the Company&#146;s, its affiliates&#146; and
subsidiaries&#146; businesses without written authority from the Board, unless he is compelled to
disclose it by judicial process.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Confidential Information&#148; shall mean all information about the Company, its affiliates or
subsidiaries, or relating to any of their products, services, or any phase of their operations, not
generally known to their Competitors or which is not public information, that the Executive knows
or of which the Executive acquired knowledge during the term of his employment with the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Under
no circumstances shall Executive remove from the Company&#146;s offices any of the
Company&#146;s books, records, documents, files, computer discs or information, reports, presentations,
customer lists, or any copies of such documents for use outside of his employment with the Company,
except as specifically authorized in writing by the Board.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;11. </B><U><B>Non-Compete</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Executive agrees that, during the period of employment and for a period of two (2)&nbsp;years
after his Date of Termination, he will not, directly or indirectly:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Seek employment or consulting arrangements with or offer advice, suggestions, or
input to any Competitor of the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Own any interest in, other than ownership of less than two percent (2%) of any
class of stock of a publicly held corporation, manage, operate, control, be employed by,
render advisory services to, act as a consultant to, participate in, assess or be connected
with any Competitor of the Company, unless approved by the Board; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Solicit, induce, or attempt to induce any past or current customer of the Company
(A) to cease doing business in whole or in part with or through the Company; or (B)&nbsp;to do
business with any other person, firm, partnership, corporation, or other entity that sells
products or performs services materially similar to or competitive with those provided by
the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Initiate, encourage, or solicit for employment any person who is now employed or
during the term of this Agreement becomes employed by the Company (or whose activities or
services are dedicated to the Company).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Competitor&#148; shall mean any individual, partnership, joint venture, firm, corporation,
limited liability company, business trust, association, trust, or other enterprise (whether or not
incorporated) engaged in the business of developing, producing, manufacturing,
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">selling and/or distributing a product or providing services similar to any product produced or
service provided by the Company, its affiliates, or subsidiaries.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;12. </B><U><B>Remedy for Violation of Sections&nbsp;10 and 11</B></U> The Executive acknowledges that
the Company has no adequate remedy at law and will be irreparably harmed if the Executive breaches
or threatens to breach the provisions of Sections&nbsp;10 or 11 of this Agreement, and therefore, agrees
that the Company shall be entitled to injunctive relief to prevent any breach or threatened breach
of such Sections and that the Company shall be entitled to specific performance of the terms of
such Sections in addition to any other legal or equitable remedy it may have. Nothing in this
Agreement shall be construed as prohibiting the Company from pursuing any other remedies at law or
in equity that it may have or any other rights that it may have under any other agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section
13.&nbsp;</B><U><B>Arbitration</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Any dispute or controversy between the Company and the Executive, whether arising out of
or relating to this Agreement, the breach of this Agreement, or otherwise, shall be settled by
arbitration administered by the American Arbitration Association (&#147;AAA&#148;) in accordance with its
Commercial Arbitration Rules then in effect, and judgment on the award rendered by the arbitrator
may be entered in any court having jurisdiction thereof. Any arbitration shall be held before a
single arbitrator who shall be selected by the mutual agreement of the Company and the Executive.
However, if the parties are unable to agree to an arbitrator, the arbitrator will be selected under
the procedures of the AAA.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The arbitrator shall have the authority to award any remedy or relief that a court of
competent jurisdiction could order or grant, including, without limitation, the issuance of an
injunction. However, either party may, without inconsistency with this arbitration provision,
apply to any court having jurisdiction over such dispute relief until the arbitration award is
rendered or the controversy is otherwise resolved.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as necessary in court proceedings to enforce this arbitration provision or an award
rendered hereunder or to obtain interim relief, neither a party nor an arbitrator may disclose the
existence, content or results of any arbitration hereunder without the prior written consent of the
Company and the Executive.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Company and the Executive acknowledge that this Agreement evidences a transaction
involving interstate commerce. Notwithstanding any choice of law provision included in this
Agreement, the United States Federal Arbitration Act shall govern the interpretation and
enforcement of this arbitration provision. The arbitration proceeding shall be conducted in
Greensboro, North Carolina or such other location to which the parties may agree. The Company
shall pay the costs of any arbitrator appointed hereunder.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section
14.&nbsp;</B><U><B>Amendment and Termination</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Amendment</U>. This Agreement may be amended by the Company at any time, or from time
to time, but no such amendment shall reduce Executive&#146;s benefit hereunder, determined as of the
date of amendment, and provided that such amendment is approved by both the Company and the
Executive.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Termination</U>. The Company retains the discretion to terminate this Agreement if
(i)&nbsp;all arrangements sponsored by the Company that would be aggregated with any terminated
arrangement under Code section 409A and Treas. Reg.
&#167;1.409A-1(c)(2) are terminated, (ii)&nbsp;no payments
(other than payments that would be payable under the terms of the arrangements if the termination
had not occurred) are made within twelve (12)&nbsp;months of the
termination of the arrangements, (iii)
all payments are made within twenty-four (24)&nbsp;months of the
termination of the arrangements, (iv)
the Company does not adopt a new arrangement that would be aggregated with any terminated
arrangement under Code section 409A and the regulations thereunder at any time within the three (3)
year period following the date of termination of the arrangement, and
(v)&nbsp;the termination does not
occur proximate to a downturn in the financial health of the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Interpretation</U>. The termination provisions of this Section will be construed in
accordance with Treas. Reg. &#167;1.409A-3(j)(4)(ix). Further, the Company reserves the right to amend
the Agreement to provide that termination of the Agreement will occur under such conditions and
events as may be prescribed by the Secretary of the Treasury in generally applicable guidance
published in the Internal Revenue Bulletin.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section
15.&nbsp;</B><U><B>Section&nbsp;409A Compliance</B></U>. It is intended that this Agreement comply with Code
section 409A, with any Treasury Regulations promulgated thereunder, and with other generally
applicable guidance and transition rules issued thereunder. The Agreement shall be interpreted and
operated consistently with that intent. If the Company shall determine that any provision of this
Agreement does not comply with the requirements of Code section 409A, the Company shall have the
authority to amend the Agreement to the extent necessary (including retroactively) in order to
preserve compliance with Code section 409A. The Company shall also have the discretionary
authority to take such other actions as may be permissible to correct any failures to comply in
operation with the requirements of Code section 409A.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF, </B>Unifi, Inc. has caused this Agreement to be signed by an officer of the
Company and a member of the Company&#146;s Compensation Committee pursuant to resolutions duly adopted
by the Board of Directors and its seal affixed hereto and the Executive has hereunto affixed his
hand and seal effective as of the date first above written.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top"><B>UNIFI, INC.</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ronald L. Smith</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ronald L. Smith<BR>
Vice President &#038; Chief Financial Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">William M. Sams</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">William M. Sams<BR>
Chairman of the Compensation Committee<BR>
of the Board of Directors</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top"><B>EXECUTIVE</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">Charles F. McCoy</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(Seal)</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">Charles F. McCoy</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SCHEDULE A<BR>
DELAYS IN DISTRIBUTION; ACCELERATION EVENTS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;A.1 <U>Permitted Delays in Payment</U>. Distributions may be delayed beyond
the date payment would otherwise occur in accordance with the provisions of the Agreement in
any of the following circumstances.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company may delay payment if it reasonably anticipates that the making of the
payment will violate federal securities laws or other applicable laws, provided that payment
is made at the earliest date on which the Company reasonably anticipates that the making of
the payment will not cause such violation.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company reserves the right to amend the Agreement to provide for a delay in
payment on such other events and conditions as the Secretary of the Treasury may prescribe
in generally applicable guidance published in the Internal Revenue Bulletin.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;A.2 <U>Permitted Acceleration Events; Cancellation of Deferral Elections</U>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;At the Executive&#146;s request, the Company shall permit the acceleration of the time
and form of a payment under the Agreement under the following circumstances:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) A payment to the extent necessary for any federal officer in the executive
branch of the U.S. government to comply with an ethics agreement with the federal
government.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) A payment to the extent reasonably necessary to avoid the violation of any
applicable ethics or conflicts of interest law in accordance with Treas. Reg.
&#167;1.409A-3(j)(4)(iii).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) A payment equal to the U.S. employment tax imposed on compensation deferred
under the Agreement, plus the amount of applicable income tax required to be
withheld at source on such amount.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) If the Agreement fails to meet the requirements of Code section 409A and
the regulations promulgated thereunder, a payment not to exceed the amount required
to be included in income as a result of such failure to comply.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) A payment to reflect the payment of applicable state, local, and foreign
tax obligations arising from participation in the Agreement that apply to the amount
deferred under the Agreement before the amount is paid or made available to the
Executive, in accordance with Treas. Reg. &#167;1.409A-3(j)(4)(xi).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) A payment or reduction as a satisfaction of the Executive&#146;s debt to
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">the Company, where (A)&nbsp;such debt has been incurred in the ordinary course of
the parties&#146; relationship, (B)&nbsp;the entire amount of the payment/reduction in any of
the Executive&#146;s tax years does not exceed $5,000, and (C)&nbsp;the payment/reduction is
made at the same time and in the same amount as the debt would otherwise have been
due and collected.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) A payment that is part of a settlement between the Executive and the
Company of a bona fide dispute as to the Executive&#146;s right to the deferred amount,
in accordance with Treas. Reg. &#167;1.409A-3(j)(4)(xiv).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company shall permit the acceleration of the time and form of a payment to make
a lump sum payment of amounts deferred on behalf of the Executive, provided that:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The payment results in the termination and liquidation of the entirety of
the Executive&#146;s interest hereunder and all other plans and arrangements that are
deemed to be a single nonqualified deferred compensation plan under Treas. Reg.
&#167;1.409A-1(c)(2),
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The payment is not greater than the applicable amount under Code section
402(g), and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Such payment is mandatory and is not solely at the Executive&#146;s request.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Company reserves the right to amend this Agreement to provide for an
acceleration of payment on such other events and conditions as the Secretary of the Treasury
may prescribe in generally applicable guidance published in the Internal Revenue Bulletin.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
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<DOCUMENT>
<TYPE>EX-10.5
<SEQUENCE>6
<FILENAME>g20224exv10w5.htm
<DESCRIPTION>EX-10.5
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-10.5</TITLE>
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<BODY bgcolor="#FFFFFF">
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.5</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CHANGE IN CONTROL AGREEMENT<BR>
FOR<BR>
RONALD L. SMITH</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS CHANGE OF CONTROL AGREEMENT </B>(&#147;Agreement&#148;) between <B>UNIFI, INC.</B>, a New York Corporation
(the &#147;Company&#148;), and <B>Ronald L. Smith </B>(the &#147;Executive&#148;) effective the 14<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of August,
2009 (the &#147;Effective Date&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WITNESSETH:</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Vice President and Chief Financial Officer of the Company and is considered as an
integral part of the Company&#146;s management; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Company&#146;s Board of Directors (the &#147;Board&#148;) considers the establishment and
maintenance of a sound and vital management to be essential in protecting and enhancing the best
interests of the Company and its Shareholders, recognizes that the possibility of a Change in
Control exists and that such possibility, and the uncertainty and questions which it may raise
among management, may result in the departure or distraction of management personnel to the
detriment of the Company and its Shareholders; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Executive desires that in the event of any Change in Control he will continue to
have the responsibility and status he has earned; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS, </B>the Board has determined that it is appropriate to reinforce and encourage the
continued attention and dedication of the Executive, as a member of the Company&#146;s management, to
his assigned duties without distraction in potentially disturbing circumstances arising from the
possibility of a Change in Control of the Company; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the Executive and the Company have previously entered a Change in Control Agreement
which, by its own terms, expired November&nbsp;1, 2008; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the Executive and the Company desire to enter a new Change in Control Agreement that
complies with the provisions of section 409A of the Internal Revenue Code of 1986, as amended (the
&#147;Code&#148;).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW, THEREFORE, </B>in order to induce the Executive to remain in the employment of the Company
and in consideration of the Executive agreeing to remain in the employment of the Company, subject
to the terms and conditions set out below, the Company agrees it will pay such amount, as provided
in Section&nbsp;4 of this Agreement, to the Executive, if the Executive&#146;s employment with the Company
terminates under one of the circumstances described herein following a Change in Control of the
Company, as herein defined.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;1. </B><U><B>Term</B></U> This Agreement shall terminate, except to the extent that any
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">obligation of the Company hereunder remains unpaid as of such time, on the <U>earliest</U>
of:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;December&nbsp;31, 2011 if a Change in Control of the Company has not occurred within such
period;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The termination of the Executive&#146;s employment with the Company for any reason prior to a
Change in Control; and
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Two (2)&nbsp;years from the date of a Change in Control of the Company if the Executive has not
voluntarily terminated his employment for Good Reason as of such time.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;2. </B><U><B>Change in Control</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;No compensation shall be payable under this Agreement unless and until:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) there shall have been a Change in Control of the Company, while the Executive is
still an employee of the Company, and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive&#146;s employment by the Company thereafter shall have been terminated in
accordance with Section&nbsp;3.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;For purposes of this Agreement, a Change in Control of the Company shall be deemed to have
occurred if:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) There shall be consummated
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any consolidation or merger of the Company in which the Company is not the
continuing or surviving legal entity or pursuant to which shares of the Company&#146;s
Common Stock would be converted into cash, securities, or other property, other than
a merger of the Company in which the holders of the Company&#146;s Common Stock
immediately prior to the merger have the same proportionate ownership of Common
Stock of the surviving company immediately after the merger, or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any sale, lease, exchange, or other transfer (in one transaction or a
series of related transactions) of all, or substantially all, of the assets of the
Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The shareholders of the Company approve any plan or proposal for the liquidation or
dissolution of the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any person (as such term is used in Sections 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;)), shall become the beneficial owner
(within the meaning of Rule&nbsp;13d-3 under the Exchange Act) of twenty
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">percent (20%) or more of the Company&#146;s outstanding Common Stock; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) During any period of two consecutive years, individuals who at the beginning of
such period constitute the entire Board of Directors shall cease for any reason to
constitute a majority thereof unless the election, or the nomination for election by the
Company&#146;s Shareholders, of each new Director was approved by a vote of at least two-thirds
of the Directors then still in office who were Directors at the beginning of the period.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;3. </B><U><B>Termination Following Change in Control</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If a Change in Control of the Company shall have occurred while the Executive is still an
employee of the Company, the Executive shall be entitled to the compensation provided in Section&nbsp;4
on the subsequent termination of the Executive&#146;s employment with the Company by the Executive
voluntarily for Good Reason or by the Company without Cause, as such terms are defined in
Subsections (d)&nbsp;and (e)&nbsp;below. If the Executive&#146;s employment with the Company is terminated for
any of the following reasons, no benefits will be payable hereunder:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
the Executive&#146;s death;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive&#146;s Disability (as defined in Subsection (b)&nbsp;below);
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Executive&#146;s Retirement (as defined in Subsection (c)&nbsp;below);
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Executive&#146;s termination by the Company for Cause (as defined in Subsection (d)
below); or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the Executive&#146;s decision to terminate employment other than for Good Reason (as
defined in Subsection (e)&nbsp;below).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Disability</U>: If, as a result of the Executive&#146;s incapacity due to physical or
mental illness, the Executive shall have been absent from his duties with the Company on a
full-time basis for one hundred twenty (120)&nbsp;consecutive days or a period of one hundred eighty
(180)&nbsp;days within twelve (12)&nbsp;consecutive months (including days before and after the Change in
Control) and within 30&nbsp;days after written notice of termination is thereafter given by the Company
the Executive shall not have returned to the full-time performance of the Executive&#146;s duties, the
Executive shall have suffered a &#147;Disability.&#148;
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Retirement</U>: The term &#147;Retirement&#148; as used in this Agreement shall mean
termination in accordance with the Company&#146;s retirement policy for its employees.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Cause</U>: For purposes of this Agreement only, the Company shall have &#147;Cause&#148;
to terminate the Executive&#146;s employment hereunder only on the basis of fraud, misappropriation, or
embezzlement on the part of the Executive or malfeasance or misfeasance by the Executive in
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">performing the duties of his office, as determined by the Board. Notwithstanding the
foregoing, the Executive shall not be deemed to have been terminated for Cause unless and until
there shall have been a meeting of the Board (after at least ten (10)&nbsp;days written notice to the
Executive) and an opportunity for the Executive to be heard before the Board), and the delivery to
the Executive of a resolution duly adopted by the affirmative vote of not less than seventy-five
percent (75%) of the entire membership of the Board stating that in the good faith opinion of the
Board the Executive is guilty of conduct set forth in the second sentence of this Subsection (d)
and specifying the particulars thereof in detail.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>Good Reason</U>: The Executive may terminate the Executive&#146;s employment for Good
Reason at any time during the term of this Agreement. For purposes of this Agreement &#147;Good Reason&#148;
shall mean the occurrence of any one or more of the following without the Executive&#146;s express
written consent:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The assignment to the Executive by the Company of duties that are materially
inconsistent with the Executive&#146;s position, duties, responsibilities, and status with the
Company immediately prior to a Change in Control of the Company; a material change in the
Executive&#146;s titles or offices as in effect immediately prior to a Change in Control of the
Company; or any removal of the Executive from or any failure to reelect the Executive to any
of the positions held prior to a Change of Control of the Company, except in connection with
the termination of his employment for death, Disability, Retirement, or Cause or by the
Executive other than for Good Reason;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) A material reduction by the Company in the Executive&#146;s base salary as in effect on
the date hereof or as the same may be increased from time to time during the term of this
Agreement or the Company&#146;s failure to increase (within 12&nbsp;months of the Executive&#146;s last
increase in base salary) the Executive&#146;s base salary after a Change in Control of the
Company in an amount that at least equals, on a percentage basis, the average percentage
increase in base salary for all executive officers of the Company effected in the preceding
12&nbsp;months;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) A failure by the Company to continue in effect any benefit plan or
arrangement (including, without limitation, the Company&#146;s 401(k) Plan, group life insurance
plan and medical, dental, accident, and disability plans) in which the Executive is
participating at the time of a Change in Control of the Company (hereinafter referred to as
&#147;Benefit Plan&#148;) without the substitution of a plan providing him with substantially similar
benefits, or the taking of any action by the Company which would adversely affect the
Executive&#146;s participation in or materially reduce the Executive&#146;s benefits under any such
Benefit Plan or deprive the Executive of any material fringe benefit enjoyed by the Executive
at the time of a Change in Control of the Company without the substitution of a plan or
fringe benefit providing him with substantially similar benefits;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) A failure by the Company to continue in effect any plan or arrangement to receive
securities of the Company (including, without limitation, stock option plans or any other
plan or arrangement to receive and exercise stock options, restricted stock or grants
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">thereof) in which the Executive is participating at the time of a Change in Control of
the Company (a &#147;Securities Plan&#148;) without the substitution of a plan or arrangement providing
him with substantially similar benefits and the taking of any action by the Company that
would adversely affect the Executive&#146;s participation in or materially reduce the Executive&#146;s
benefits under any such Securities Plan without the substitution of a plan or arrangement
providing him with substantially similar benefits;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) A failure by the Company to continue in effect any bonus plan, automobile allowance
plan, or other incentive payment plan in which the Executive is participating at the time of
a Change in Control of the Company, or said Executive had participated in during the previous
calendar year without the substitution of a plan or arrangement providing him with
substantially similar benefits;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) A relocation of the Company&#146;s principal executive offices to a location outside of
North Carolina, or the Executive&#146;s relocation to any place other than the location at which
the Executive performed the Executive&#146;s duties prior to a Change in Control of the Company,
except for required travel by the Executive on the Company&#146;s business to an extent
substantially consistent with the Executive&#146;s business travel obligations at the time of a
Change in Control of the Company;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) A failure by the Company to provide the Executive with the number of paid vacation
days to which the Executive is entitled at the time of a Change in Control of the Company;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) A material breach by the Company of any provision of this Agreement;
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) A failure by the Company to obtain the assumption of this Agreement by any
successor or assign of the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) A purported termination of the Executive&#146;s employment which is not made pursuant
to a Notice of Termination satisfying the requirements of Subsection (f).
</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">In order to terminate his employment with the Company for Good Reason, the Executive must also
comply with the notice requirements of Subsection (f).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>Notice of Termination</U>:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any termination by the Company pursuant to Subsections (b), (c)&nbsp;or (d)&nbsp;shall be
communicated by a Notice of Termination. For purposes of this Agreement, a &#147;Notice of
Termination&#148; shall mean a written notice that shall indicate those specific termination
provisions in this Agreement relied on and which sets forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of the Executive&#146;s employment
under the provision so indicated. For purposes of this Agreement, no such purported
termination by the Company shall be effective without such Notice of Termination.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any termination by the Executive pursuant to Subsection (e)&nbsp;shall be communicated
by a Notice of Termination. For purposes of this Agreement, a &#147;Notice of Termination&#148; shall
mean a written notice that shall indicate those specific termination provisions in this
Agreement relied on and which sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive&#146;s employment under the provision
so indicated. For purposes of this Agreement, no such purported termination by the Company
shall be effective without such Notice of Termination.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Executive&#146;s provision of a Notice of Termination must be within ninety (90)
days following the facts and circumstances claimed to provide a basis for termination for
Good Reason.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<U>Date of Termination</U>: &#147;Date of Termination&#148; shall mean:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If Executive&#146;s employment is terminated by the Company for Disability, thirty (30)
days after the Notice of Termination is given to the Executive (provided that the Executive
shall not have returned to the performance of the Executive&#146;s duties on a full-time basis
during such thirty (30)&nbsp;day period), or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the Executive&#146;s employment is terminated by the Company for any other reason,
the date on which a Notice of Termination is given; provided that if within thirty (30)&nbsp;days
after any Notice of Termination is given to the Executive by the Company the Executive
notifies the Company that a dispute exists concerning the termination, the Date of
Termination shall be the date the dispute is finally determined, whether by mutual agreement
by the parties or otherwise, or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If the Executive&#146;s employment is terminated by the Executive for Good Reason,
thirty (30)&nbsp;days after the Notice of Termination is given to the Executive (provided that
the Company shall not have cured the facts and circumstances claimed to provide a basis for
termination of the Executive&#146;s employment under the provision so indicated during such
thirty (30)&nbsp;day period); provided that if within thirty (30)&nbsp;days after any Notice of
Termination is given to the Company by the Executive, the Company notifies the Executive
that a dispute exists concerning the termination, the Date of Termination shall be the date
the dispute is finally determined, whether by mutual agreement by the parties or otherwise.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;4. </B><U><B>Severance Compensation on Termination of Employment</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If the Company shall terminate the Executive&#146;s employment other than pursuant to Section
3(b), 3(c) or 3(d) or if the Executive shall voluntarily terminate his employment for Good Reason
pursuant to Section&nbsp;3(e), then the Company shall pay to the Executive as severance pay an amount
equal to 2.99 times the average total compensation paid to the Executive by the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">Company or any of its subsidiaries during the five (5)&nbsp;calendar years (or the period of the
Executive&#146;s employment with the Company if the Executive has been employed with the Company for
less than five calendar years) preceding the Change in Control of the Company.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;However, if the severance payment under this Section&nbsp;4, either alone or together with
other payments that the Executive has the right to receive from the Company, would constitute a
&#147;parachute payment&#148; (as defined in section 280G of the Code), such severance payment shall be
reduced to the largest amount as will result in no portion of the severance payment under this
Section&nbsp;4 being subject to the excise tax imposed by section 4999 of the Code. The determination
of any reduction in the lump sum severance payment under this Section&nbsp;4 pursuant to the foregoing
proviso shall be made by the Company&#146;s Independent Certified Public Accountants, and their decision
shall be conclusive and binding on the Company and the Executive.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Such amount shall be paid in twenty-four (24)&nbsp;equal monthly installments, without
interest, beginning on the regular payroll date for salaried employees of the Company in the month
following the Executive&#146;s Date of Termination.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Notwithstanding the provisions of Subsection (c)&nbsp;to the contrary, the Company and
Executive further acknowledge that if the Executive is determined to be a &#147;specified employee&#148;, as
such term is defined in section 409A of the Code at the date that payments are otherwise scheduled
to commence in Subsection (c), that certain payments to Executive under this Agreement may be
required to be postponed to comply with section 409A. Thus, the parties agree that, in such event,
any payments that are so postponed will be paid to Executive, without interest, on the first day of
the calendar month following the end of the required postponement period.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;If the Executive dies while any amounts are still payable to him hereunder, all such
amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the Executive&#146;s legatee, or other designee or, if there be no such designee, to the
Executive&#146;s estate.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;5. </B><U><B>No Obligation to Mitigate Damages; No Effect on Other Contractual Rights</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Executive shall not be required to mitigate damages or the amount of any payment
provided for under this Agreement by seeking other employment or otherwise, nor shall the amount of
any payment provided for under this Agreement be reduced by any compensation earned by the
Executive as the result of employment by another employer that is not related to the Company after
the Date of Termination, or otherwise.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as set forth in Section&nbsp;4(b), the provisions of this Agreement, and any payment
provided for hereunder, shall not reduce any amounts otherwise payable, or in any way diminish the
Executive&#146;s rights under any employment agreement or other contract, plan, or
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">employment arrangement with the Company.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Company shall, on the termination of the Executive&#146;s employment following a Change in
Control of the Company other than by death, Disability (as defined in Section&nbsp;3(b)), Retirement (as
defined in Section&nbsp;3(c)) or Cause (as defined in Section&nbsp;3(d)), or the termination of the
Executive&#146;s employment by the Executive without Good Reason, maintain in full force and effect, for
the Executive&#146;s continued benefit until the earlier of:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
two (2)&nbsp;years after the Date of Termination, or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive&#146;s commencement of full time employment with a new employer,
</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">all life insurance, medical, health and accident, and disability plans, programs, or arrangements
in which he was entitled to participate immediately prior to the Date of Termination, provided that
his continued participation is possible under the general terms and provisions of such plans and
programs. In the event the Executive is ineligible under the terms of such plans or programs to
continue to be so covered, the Company shall provide substantially equivalent coverage through
other sources.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Executive&#146;s account and rights in and under any retirement benefit or incentive plans
shall remain subject to the terms and conditions of the respective plans as they existed at the
time of the termination of the Executive&#146;s employment.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;6. </B><U><B>Successors</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company will require any successor or assign (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business and/or assets of
the Company, by agreement expressly, absolutely and unconditionally to assume and agree to perform
this Agreement in the same manner and to the same extent that the Company would be required to
perform it if no such succession or assignment had taken place. Any failure of the Company to
obtain such agreement prior to the effectiveness of any such succession or assignment shall be a
material breach of this Agreement and shall entitle the Executive to terminate the Executive&#146;s
employment for Good Reason under Section&nbsp;3.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Company&#148; shall mean the Company as hereinbefore defined and any successor or assign to
its business and/or assets as aforesaid that executes and delivers the agreement provided for in
this Section&nbsp;6 or which otherwise becomes bound by all the terms and provisions of this Agreement
by operation of law. If at any time during the term of this Agreement the Executive is employed by
any corporation a majority of the voting securities of which is then owned by the Company,
&#147;Company&#148; as used in Sections&nbsp;3, 4, and 10 hereof shall in addition include such employer. In such
event, the Company agrees that it shall pay or shall cause such employer to pay any amounts owed to
the Executive pursuant to Section&nbsp;4 hereof.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;This Agreement shall inure to the benefit of and be enforceable by the Executive&#146;s
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">legal representatives or attorney-in-fact, executors or administrators, heirs, distributees
and legatees.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;7. </B><U><B>Notice</B></U> For purposes of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be deemed to have been
duly given when delivered or mailed by United States registered mail, return receipt requested,
postage prepaid, as follows:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Company:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 10%">Unifi, Inc.<BR>
P. O. Box 19109<BR>
Greensboro, NC 27419-9109<BR>
ATTENTION: General Counsel (currently Charles F. McCoy)

</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If to the Executive:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 10%">Mr.&nbsp;Ronald L. Smith<BR>
3900 Katie Drive<BR>
Greensboro, NC 27410

</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">or such other address as either party may have furnished to the other in writing in
accordance herewith, except that notices of change of address shall be effective only on receipt.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;8. </B><U><B>Miscellaneous</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The invalidity or unenforceability of any provisions of this Agreement shall not affect
the validity or enforceability of any other provision of this Agreement, which shall remain in full
force and effect.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Any payment or delivery required under this Agreement shall be subject to all requirements
of the law with regard to withholding (including FICA tax), filing, making of reports and the like,
and Company shall use its best efforts to satisfy promptly all such requirements.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;9. </B><U><B>Legal Fees and Expenses</B></U> The Company shall pay all reasonable legal fees
and expenses that the Executive may incur as a result of the Company&#146;s contesting the validity,
enforceability or the Executive&#146;s interpretation of, or determinations under, this Agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;10. </B><U><B>Disclosure of Confidential Information</B></U> Executive agrees that:
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;During the term of this Agreement and for a period of five (5)&nbsp;years after his Date of
Termination, he will not disclose or make available to any person or other entity any trade
secrets, Confidential Information, or &#147;know-how&#148; relating to the Company&#146;s, its affiliates&#146; and
subsidiaries&#146; businesses without written authority from the Board, unless he is compelled to
disclose it by judicial process.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Confidential Information&#148; shall mean all information about the Company, its affiliates or
subsidiaries, or relating to any of their products, services, or any phase of their operations, not
generally known to their Competitors or which is not public information, that the Executive knows
or of which the Executive acquired knowledge during the term of his employment with the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Under
no circumstances shall Executive remove from the Company&#146;s offices any of the
Company&#146;s books, records, documents, files, computer discs or information, reports, presentations,
customer lists, or any copies of such documents for use outside of his employment with the Company,
except as specifically authorized in writing by the Board.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;11. </B><U><B>Non-Compete</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Executive agrees that, during the period of employment and for a period of two (2)&nbsp;years
after his Date of Termination, he will not, directly or indirectly:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Seek employment or consulting arrangements with or offer advice, suggestions, or
input to any Competitor of the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Own any interest in, other than ownership of less than two percent (2%) of any
class of stock of a publicly held corporation, manage, operate, control, be employed by,
render advisory services to, act as a consultant to, participate in, assess or be connected
with any Competitor of the Company, unless approved by the Board; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Solicit, induce, or attempt to induce any past or current customer of the Company
(A) to cease doing business in whole or in part with or through the Company; or (B)&nbsp;to do
business with any other person, firm, partnership, corporation, or other entity that sells
products or performs services materially similar to or competitive with those provided by
the Company; or
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Initiate, encourage, or solicit for employment any person who is now employed or
during the term of this Agreement becomes employed by the Company (or whose activities or
services are dedicated to the Company).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;Competitor&#148; shall mean any individual, partnership, joint venture, firm, corporation,
limited liability company, business trust, association, trust, or other enterprise (whether or not
incorporated) engaged in the business of developing, producing, manufacturing, selling and/or
distributing a product or providing services similar to any product produced or
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">service provided by the Company, its affiliates, or subsidiaries.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;12. </B><U><B>Remedy for Violation of Sections&nbsp;10 and 11</B></U> The Executive acknowledges that
the Company has no adequate remedy at law and will be irreparably harmed if the Executive breaches
or threatens to breach the provisions of Sections&nbsp;10 or 11 of this Agreement, and therefore, agrees
that the Company shall be entitled to injunctive relief to prevent any breach or threatened breach
of such Sections and that the Company shall be entitled to specific performance of the terms of
such Sections in addition to any other legal or equitable remedy it may have. Nothing in this
Agreement shall be construed as prohibiting the Company from pursuing any other remedies at law or
in equity that it may have or any other rights that it may have under any other agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;13. </B><U><B>Arbitration</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Any dispute or controversy between the Company and the Executive, whether arising out of
or relating to this Agreement, the breach of this Agreement, or otherwise, shall be settled by
arbitration administered by the American Arbitration Association (&#147;AAA&#148;) in accordance with its
Commercial Arbitration Rules then in effect, and judgment on the award rendered by the arbitrator
may be entered in any court having jurisdiction thereof. Any arbitration shall be held before a
single arbitrator who shall be selected by the mutual agreement of the Company and the Executive.
However, if the parties are unable to agree to an arbitrator, the arbitrator will be selected under
the procedures of the AAA.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The arbitrator shall have the authority to award any remedy or relief that a court of
competent jurisdiction could order or grant, including, without limitation, the issuance of an
injunction. However, either party may, without inconsistency with this arbitration provision,
apply to any court having jurisdiction over such dispute relief until the arbitration award is
rendered or the controversy is otherwise resolved.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as necessary in court proceedings to enforce this arbitration provision or an award
rendered hereunder or to obtain interim relief, neither a party nor an arbitrator may disclose the
existence, content or results of any arbitration hereunder without the prior written consent of the
Company and the Executive.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Company and the Executive acknowledge that this Agreement evidences a transaction
involving interstate commerce. Notwithstanding any choice of law provision included in this
Agreement, the United States Federal Arbitration Act shall govern the interpretation and
enforcement of this arbitration provision. The arbitration proceeding shall be conducted in
Greensboro, North Carolina or such other location to which the parties may agree. The Company
shall pay the costs of any arbitrator appointed hereunder.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;14. </B><U><B>Amendment and Termination</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Amendment</U>. This Agreement may be amended by the Company at any time, or from time
to time, but no such amendment shall reduce Executive&#146;s benefit hereunder, determined as of the
date of amendment, and provided that such amendment is approved by both the Company and the
Executive.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Termination</U>. The Company retains the discretion to terminate this Agreement if
(i)&nbsp;all arrangements sponsored by the Company that would be aggregated with any terminated
arrangement under Code section 409A and Treas. Reg.
&#167;1.409A-1(c)(2) are terminated, (ii)&nbsp;no payments
(other than payments that would be payable under the terms of the arrangements if the termination
had not occurred) are made within twelve (12)&nbsp;months of the
termination of the arrangements, (iii)
all payments are made within twenty-four (24)&nbsp;months of the
termination of the arrangements, (iv)
the Company does not adopt a new arrangement that would be aggregated with any terminated
arrangement under Code section 409A and the regulations thereunder at any time within the three (3)
year period following the date of termination of the arrangement, and
(v)&nbsp;the termination does not
occur proximate to a downturn in the financial health of the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Interpretation</U>. The termination provisions of this Section will be construed in
accordance with Treas. Reg. &#167;1.409A-3(j)(4)(ix). Further, the Company reserves the right to amend
the Agreement to provide that termination of the Agreement will occur under such conditions and
events as may be prescribed by the Secretary of the Treasury in generally applicable guidance
published in the Internal Revenue Bulletin.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section&nbsp;15. </B><U><B>Section&nbsp;409A Compliance</B></U>. It is intended that this Agreement comply with Code
section 409A, with any Treasury Regulations promulgated thereunder, and with other generally
applicable guidance and transition rules issued thereunder. The Agreement shall be interpreted and
operated consistently with that intent. If the Company shall determine that any provision of this
Agreement does not comply with the requirements of Code section 409A, the Company shall have the
authority to amend the Agreement to the extent necessary (including retroactively) in order to
preserve compliance with Code section 409A. The Company shall also have the discretionary
authority to take such other actions as may be permissible to correct any failures to comply in
operation with the requirements of Code section 409A.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF, </B>Unifi, Inc. has caused this Agreement to be signed by an officer of the
Company and a member of the Company&#146;s Compensation Committee pursuant to resolutions duly adopted
by the Board of Directors and its seal affixed hereto and the Executive has hereunto affixed his
hand and seal effective as of the date first above written.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top"><B>UNIFI, INC.</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Charles F. McCoy</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Charles F. McCoy<BR>
Vice President, Secretary &#038;<BR>
General Counsel</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">William M. Sams</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">William M. Sams<BR>
Chairman of the Compensation Committee<BR>
of the Board of Directors</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top"><B>EXECUTIVE</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">Ronald L. Smith</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(Seal)</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">Ronald L. Smith</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SCHEDULE A<BR>
DELAYS IN DISTRIBUTION; ACCELERATION EVENTS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;A.1 <U>Permitted Delays in Payment</U>. Distributions may be delayed beyond
the date payment would otherwise occur in accordance with the provisions of the Agreement in
any of the following circumstances.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company may delay payment if it reasonably anticipates that the making of the
payment will violate federal securities laws or other applicable laws, provided that payment
is made at the earliest date on which the Company reasonably anticipates that the making of
the payment will not cause such violation.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company reserves the right to amend the Agreement to provide for a delay in
payment on such other events and conditions as the Secretary of the Treasury may prescribe
in generally applicable guidance published in the Internal Revenue Bulletin.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;A.2 <U>Permitted Acceleration Events; Cancellation of Deferral Elections</U>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;At the Executive&#146;s request, the Company shall permit the acceleration of the time
and form of a payment under the Agreement under the following circumstances:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) A payment to the extent necessary for any federal officer in the executive
branch of the U.S. government to comply with an ethics agreement with the federal
government.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) A payment to the extent reasonably necessary to avoid the violation of any
applicable ethics or conflicts of interest law in accordance with Treas. Reg.
&#167;1.409A-3(j)(4)(iii).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) A payment equal to the U.S. employment tax imposed on compensation deferred
under the Agreement, plus the amount of applicable income tax required to be
withheld at source on such amount.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) If the Agreement fails to meet the requirements of Code section 409A and
the regulations promulgated thereunder, a payment not to exceed the amount required
to be included in income as a result of such failure to comply.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) A payment to reflect the payment of applicable state, local, and foreign
tax obligations arising from participation in the Agreement that apply to the amount
deferred under the Agreement before the amount is paid or made available to the
Executive, in accordance with Treas. Reg. &#167;1.409A-3(j)(4)(xi).
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) A payment or reduction as a satisfaction of the Executive&#146;s debt to
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">the Company, where (A)&nbsp;such debt has been incurred in the ordinary course of
the parties&#146; relationship, (B)&nbsp;the entire amount of the payment/reduction in any of
the Executive&#146;s tax years does not exceed $5,000, and (C)&nbsp;the payment/reduction is
made at the same time and in the same amount as the debt would otherwise have been
due and collected.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) A payment that is part of a settlement between the Executive and the
Company of a bona fide dispute as to the Executive&#146;s right to the deferred amount,
in accordance with Treas. Reg. &#167;1.409A-3(j)(4)(xiv).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company shall permit the acceleration of the time and form of a payment to make
a lump sum payment of amounts deferred on behalf of the Executive, provided that:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The payment results in the termination and liquidation of the entirety of
the Executive&#146;s interest hereunder and all other plans and arrangements that are
deemed to be a single nonqualified deferred compensation plan under Treas. Reg.
&#167;1.409A-1(c)(2),
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The payment is not greater than the applicable amount under Code section
402(g), and
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Such payment is mandatory and is not solely at the Executive&#146;s request.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Company reserves the right to amend this Agreement to provide for an
acceleration of payment on such other events and conditions as the Secretary of the Treasury
may prescribe in generally applicable guidance published in the Internal Revenue Bulletin.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>




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