RESTATED CHARTER OF

                                   CULP, INC.

 

      The  undersigned  corporation,  pursuant  to  action  by  its  Board  of

Directors  and  without  a vote  of its  shareholders,  hereby  executes  this

Restated  Charter  for the  purpose  of  integrating  into  one  document  its

original Articles of Incorporation and all amendments thereto:

 

      1.     The name of the corporation is Culp, Inc.

 

      2.     The period of duration of the corporation is perpetual.

 

      3.     The purposes for which the corporation is organized are:

 

            (a)    To engage in the general  business  of buying,  selling and

                  otherwise dealing in textiles and textile products.

 

            (b)    To buy, sell,  rent,  lease, own and otherwise deal in real

                  estate for industrial,  commercial, or residential purposes;

                  to erect and construct  homes and  commercial and industrial

                  buildings,  to  act  as  rental  agents,  sales  agents  and

                  commission salesmen.

 

            (c)    To buy, sell and otherwise  deal in and with stocks,  bonds

                  and  securities  of all  kinds  and to  act  as  agents  and

                  salesmen for insurance of all types and kinds.

 

            (d)    To deal with and in all  types  and  kinds of  merchandise,

                  materials  or  products  at  wholesale  or retail  and to do

                  business in any other capacity.

 

            (e)    To engage in any other lawful activity  including,  but not

                  limited  to,   constructing,   manufacturing   or  otherwise

                  producing  and  repairing,  servicing,  storing or otherwise

                  caring for any type of structure  or  commodity  whatsoever;

                  processing.  selling,  brokering,  factoring or distributing

                  any type of property  whether real or  personal;  extracting

                  and processing  natural resources;  transporting  freight or

                  passengers   by   land,   sea   or   air;   collecting   and

                  disseminating   information  or  advertisement  through  any

                  medium  whatsoever;   performing  personal  service  of  any

                  nature;  and  entering  into  or  serving  in  any  type  of

                  management,     investigative,     advisory,    promotional,

                  protective, insurance,  guarantyship,  suretyship, fiduciary

                  or  representative  capacity or relationship for any persons

                  or  corporations  whatsoever;   applying  for  and  securing

                  copyrights,  trademarks,  trade names,  patents,  processes,

                  inventions and licenses.

 

      4.     The corporation  shall have the authority to issue thirty million

(30,000,000)  shares  consisting  of  twenty  million  (20,000,000)  shares of

common stock with a par value of five cents  ($0.05) per share and ten million

(10,000,000)  shares of preferred stock with a par value of five cents ($0.05)

per share,  the rights,  preferences  and limitations of which preferred stock

may be  determined  from  time to  time  in the  discretion  of the  Board  of

Directors.

 

      5.     The stated capital of the  corporation is Two Hundred  Twenty-One

Thousand Two Hundred Ninety-Two Dollars ($221,292).

 

      6.     The  shareholders  of the  corporation  shall have no  preemptive

right to acquire additional or treasury shares of the corporation.

 

      7.     The address of the  registered  office of the  corporation in the

State of North  Carolina is 2020 Logan Street,  High Point,  Guilford  County,

North Carolina;  and the name of its registered agent at such address is R. G.

Culp, Jr.

 

      8.     A director of the corporation  shall not be personally  liable to

the  corporation  or its  shareholders,  whether in an action brought by or in

the right of the corporation or otherwise,  for monetary damages for breach of

his duty as director,  except for liability for (i) acts or omissions not made

in good faith that the  director  at the time of such  breach knew or believed

were in  conflict  with  the  best  interests  of the  corporation,  (ii)  any

liability under Section 55-32 of the North Carolina Business  Corporation Act,

(iii) any  transaction  from which the director  derived an improper  personal

benefit,  or (iv) acts or omissions  occurring  prior to the date this Article

became  effective  pursuant to the filing of Articles  of  Amendment  with the

Secretary of State of the State of North  Carolina in accordance  with Section

55-103 of the North Carolina  Business  Corporation Act. If the North Carolina

Business  Corporation  Act is amended after  approval by the  shareholders  of

this Article to authorize  corporate  action  further  eliminating or limiting

the personal  liability of directors,  then the liability of a director of the

corporation  shall be eliminated or limited to the fullest extent permitted by

The North  Carolina  Business  Corporation  Act, as so amended.  Any repeal or

modification of this paragraph by the  shareholders  of the corporation  shall

not adversely  affect any right or protection of a director of the corporation

existing at the time of such repeal or modification.

 

      9.     Except as otherwise expressly provided in this Article:

 

            (i)    any  merger or  consolidation  of the  corporation  with or

                  into any other corporation; or

 

            (ii)   any sale,  lease,  exchange or other  disposition of all or

                  substantially  all of the  assets of the  corporation  to or

                  with any other corporation, person or other entity; or

 

            (iii)  any issuance or transfer by the  corporation  of any of its

                  securities to any other corporation,  person or other entity

                  as part of an exchange or  acquisition  of the securities or

                  assets of such other corporation, person or other entity.

 

shall  require  the  affirmative  vote of the  holders of at least  two-thirds

(2/3) of the outstanding  shares of capital stock of the corporation  entitled

to vote.

 

      The  provisions  of this  Article  shall  not  apply to any  transaction

described in clauses (i),  (ii),  or (iii) of this Article if the  transaction

has been  approved by not less than sixty  percent  (60%) of the  directors of

the  corporation.  In considering  any such  transaction and in exercising its

judgment  as to  what  is in the  best  interest  of the  corporation  and its

shareholders,  the Board of  Directors  shall  give due  consideration  to all

relevant  factors,  including  without  limitation  the  social  and  economic

effects on the employees,  customers,  suppliers and other constituents of the

corporation  and  its  subsidiaries  and  on  the  communities  in  which  the

corporation and its subsidiaries operate or are located.

 

      This  Article  may  not  be  amended  or  rescinded  except  (l)  by the

affirmative  vote  of  the  holders  of  at  least  two-thirds  (2/3)  of  the

outstanding  shares of capital stock of the  corporation  entitled to vote, or

(2) by the  affirmative  vote of the  holders of at least a  majority  of such

shares if the amendment or rescission is  recommended to the  shareholders  by

the Board of Directors of the  corporation  and that  recommendation  has been

approved  by not  less  than  sixty  percent  (60%)  of the  directors  of the

corporation.

 

      10.    This  Restated  Charter  purports  merely to  restate  but not to

change  the  provisions  of  the  original   articles  of   incorporation   as

supplemented  and  amended;  and  there  is  no  discrepancy,  other  than  as

expressly  permitted  by  Section  55-105  of the  General  Statues  of  North

Carolina,  between the said  provisions  and the  provisions  of this Restated

Charter.

 

      IN   WITNESS    THEREOF,    this    statement   is   executed   by   the

_______________________  president and secretary of the corporation  this 31st

day of December, 1987.

 

                                      CULP, INC.

 

 

                                      By   /s/Robert G. Culp, III

                                           President

 

                                      By   /s/ Sharyn M. Andrews

                                           Secretary

 

 

<PAGE>

 

STATE OF North Carolina

 

COUNTY OF Guilford

 

      I, Carol D. Briley,  a Notary  Public,  hereby certify that on this 31st

day of December,  1987,  personally  appeared  before me Sharyn M. Andrews and

Robert G. Culp, III, each of whom being by me first duly sworn,  declared that

he signed  the  foregoing  document  in the  capacity  indicated,  that he was

authorized so to sign, and that the statements therein contained are true.

 

 

 

                                          /s/ Carol D. Briley

                                          Notary Public

 

 

My commission expires:

3-25-92

 

(NOTARIAL SEAL)

 

<PAGE>

 

                            ARTICLES OF AMENDMENT

                                      OF

                                  CULP, INC.

 

      The undersigned  corporation  hereby submits these Articles of Amendment

for the purpose of amending its articles of incorporation:

 

1.    The name of the corporation is Culp, Inc.

 

2.    The  following  amendment  to  the  articles  of  incorporation  of  the

corporation  was  adopted by its  shareholders  on the 20th day of  September,

1994, in the manner prescribed by law:

 

            The  Articles  of  Incorporation  shall  be  amended  by  deleting

      Article  4 in its  entirety  and  substituting  the  following  text  as

      Article 4:

                  4.    The  corporation  shall  have the  authority  to issue

            fifty  million  (50,000,000)  shares  consisting  of forty million

            (40,000,000)  shares  of  common  stock  with a par  value of five

            cents  ($0.05)  per share and ten million  (10,000,000)  shares of

            preferred  stock with a par value of five cents ($0.05) per share,

            the rights,  preferences  and limitations of which preferred stock

            may be  determined  from  time to time  in the  discretion  of the

            Board of Directors.

 

3.    These articles will become effective upon filing.

This the 21st day of December, 1994.

 

                                    CULP, INC.

 

                                    By: /s/ Robert G. Culp, III

                                        Robert G. Culp, III

                                        Chief Executive Officer

 

<PAGE>

                              ARTICLES OF AMENDMENT

                                      OF

                                  CULP, INC.

 

 

      The undersigned  corporation  hereby submits these Articles of Amendment

for the  purpose of  amending  its  Restated  Charter to fix the  designation,

preferences,  limitations  and  relative  rights of a series of its  Preferred

Stock.

 

1.    The name of the corporation is Culp, Inc.

 

2.    The Restated  Charter of the corporation is hereby amended by adding the

following provisions, as follows:

 

      Pursuant  to  the  authority   vested  in  the  Board  of  Directors  in

accordance with the provisions of its Restated Charter,  a series of Preferred

Stock designated as Series A Participating  Preferred  Stock,  $0.05 par value

per share, be, and it hereby is, created,  and that the designation and amount

thereof and the powers, preferences and relative, participating,  optional and

other  special  rights of the shares of such series,  and the  qualifications,

limitations  or  restrictions  thereof (in addition to the  provisions  in the

Restated  Charter that are  applicable to the  Preferred  Stock of all classes

and series) are as follows:

 

                    Series A Participating Preferred Stock

 

1. Designation and Amount. The shares of such series of Preferred Stock shall be

designated  as "Series A  Participating  Preferred  Stock,"  par value $0.05 per

share,  and the number of shares  constituting  such series shall be  2,000,000.

Such number of shares may be increased or decreased by  resolution  of the Board

of Directors;  provided,  however,  that no decrease  shall reduce the number of

shares of  Series A  Participating  Preferred  Stock to less than the  number of

shares  then  issued and  outstanding  plus the number of shares  issuable  upon

exercise  of  outstanding  rights,  options or warrants  or upon  conversion  of

outstanding  securities  issued by the  Corporation  convertible  into  Series A

Participating Preferred Stock.

 

2.    Dividends and Distribution.

 

          (a)  Subject to the prior and  superior  rights of the  holders of any

     shares of any series of capital  stock  ranking  prior and  superior to the

     shares of Series A Participating Preferred Stock with respect to dividends,

     the  holders  of shares  of  Series A  Participating  Preferred  Stock,  in

     preference to the holders of shares of the Corporation's  Common Stock, par

     value  $0.05 per share  ("Common  Stock"),  and of any other  shares of any

     class or series of stock of the Corporation  ranking junior to the Series A

     Participating  Preferred Stock, shall be entitled to receive,  when, as and

     if declared by the Board of Directors  out of funds  legally  available for

     the  purpose,  quarterly  dividends  payable  in cash on the  first  day of

     January,  April,  July and  October  in each year  (each  such  date  being

     referred to herein as a "Quarterly  Dividend Payment Date"),  commencing on

     the first  Quarterly  Dividend  Payment Date after the first  issuance of a

     share or fraction of a share of Series A Participating  Preferred Stock, in

     an amount per share  (rounded to the nearest  cent) equal to the greater of

     (a) $1.00 or (b) the sum of (x) the  Adjustment  Number (as defined  below)

     times the  aggregate  per share amount of all cash  dividends,  and (y) the

     Adjustment Number times the aggregate per share amount (payable in kind) of

     all  non-cash  dividends  or other  distributions,  other  than a  dividend

     payable  in shares  of Common  Stock or a  subdivision  of the  outstanding

     shares of Common Stock (by reclassification or otherwise),  declared on the

     Common Stock since the immediately  preceding  Quarterly  Dividend  Payment

     Date, or, with respect to the first Quarterly  Dividend Payment Date, since

     the  first  issuance  of any  share  or  fraction  of a share  of  Series A

     Participating  Preferred Stock. The "Adjustment  Number" shall initially be

     one hundred  (100).  In the event the  Corporation  shall at any time after

     October 12,  1999,  declare or pay any dividend on Common Stock  payable in

     shares  of  Common  Stock,  or  effect  a  subdivision  or  combination  or

     consolidation  of the  outstanding  Common  Stock (by  reclassification  or

     otherwise  than by payment of a dividend in shares of Common  Stock) into a

     greater or lesser number of shares of Common Stock,  then in each such case

     the Adjustment  Number in effect  immediately  prior to such event shall be

     adjusted by multiplying such Adjustment  Number by a fraction the numerator

     of which is the number of shares of Common  Stock  outstanding  immediately

     after  such event and the  denominator  of which is the number of shares of

     Common Stock that were outstanding immediately prior to such event.

 

          (b) The Board of Directors shall declare a dividend or distribution on

     the Series A  Participating  Preferred  Stock as provided in  paragraph (a)

     above  immediately  after it  declares a dividend  or  distribution  on the

     Common  Stock  (other than a dividend  payable in shares of Common  Stock);

     provided  that,  in the event no dividend or  distribution  shall have been

     declared  on the  Common  Stock  during the period  between  any  Quarterly

     Dividend  Payment Date and the next subsequent  Quarterly  Dividend Payment

     Date, a dividend of $1.00 per share on the Series A Participating Preferred

     Stock shall  nevertheless be payable on such subsequent  Quarterly Dividend

     Payment Date.

 

          (c)  Dividends  on shares of Series A  Participating  Preferred  Stock

     shall be cumulative:  (i) on the first such shares issued, from the date of

     issuance; and (ii) on any such shares issued thereafter, from the Quarterly

     Dividend  Payment Date next  preceding  the date of  issuance.  Accrued but

     unpaid  dividends shall not bear interest.  Dividends paid on the shares of

     Series A  Participating  Preferred  Stock in an amount  less than the total

     amount of such  dividends  at the time  accrued  and payable on such shares

     shall be allocated pro rata on a share-by-share basis among all such shares

     at the time  outstanding.  The Board of Directors may fix a record date for

     the determination of holders of shares of Series A Participating  Preferred

     Stock entitled to receive  payment of a dividend or  distribution  declared

     thereon,  which  record date shall be no more than sixty (60) days prior to

     the date fixed for the payment thereof.

 

3.    Voting  Rights.   The  holders  of  shares  of  Series A   Participating

Preferred Stock shall have the following voting rights:

 

          (a) Each share of Series A Participating Preferred Stock shall entitle

     the holder thereof at any time to a number of votes equal to the Adjustment

     Number (as in effect at such time) on all  matters  submitted  to a vote of

     the shareholders of the Corporation.

 

          (b) Except as otherwise  provided  herein,  in the Restated Charter as

     from time to time amended, or by law, the holders of Series A Participating

     Preferred Stock and the holders of Common Stock and any other capital stock

     of the Corporation  having general voting rights shall vote together as one

     class  on  all  matters   submitted  to  a  vote  of  shareholders  of  the

     Corporation.

 

          (c) Except as otherwise  provided  herein,  in the Restated Charter as

     from time to time  amended,  or by law,  holders of Series A  Participating

     Preferred Stock shall have no special voting rights and their consent shall

     not be  required  (except  to the  extent  they are  entitled  to vote with

     holders of Common  Stock as set forth  herein)  for  taking  any  corporate

     action.

 

4. Certain Restrictions.

 

     (a)  Whenever  quarterly  dividends  or other  dividends  or  distributions

     payable  on the  Series A  Participating  Preferred  Stock as  provided  in

     Section 2  are in  arrears,  thereafter  and until all  accrued  and unpaid

     dividends and distributions, whether or not declared, on shares of Series A

     Participating Preferred Stock outstanding shall have been paid in full, the

     Corporation shall not:

 

               (i) declare or pay dividends, or make any other distributions, on

          any shares of stock  ranking  junior  (either as to  dividends or upon

          liquidation,  dissolution or winding up) to the Series A Participating

          Preferred Stock;

 

               (ii) declare or pay dividends on or make any other  distributions

          on any shares of stock ranking on a parity  (either as to dividends or

          upon  liquidation,  dissolution  or  winding  up)  with  the  Series A

          Participating  Preferred  Stock,  except dividends paid ratably on the

          Series A  Participating  Preferred  Stock and all such parity stock on

          which  dividends  are payable or in arrears in proportion to the total

          amounts to which the holders of all such shares are then entitled;

 

               (iii) redeem or purchase or otherwise  acquire for  consideration

          shares of any stock  ranking  junior  (either as to  dividends or upon

          liquidation,  dissolution or winding up) to the Series A Participating

          Preferred Stock, provided that the Corporation may at any time redeem,

          purchase  or  otherwise  acquire  shares of any such  junior  stock in

          exchange  for shares of any stock of the  Corporation  ranking  junior

          (either as to dividends or upon  liquidation,  dissolution  or winding

          up) to the Series A Participating Preferred Stock; or

 

               (iv) redeem or purchase or  otherwise  acquire for  consideration

          any shares of Series A Participating Preferred Stock, or any shares of

          stock ranking on a parity (either as to dividends or upon liquidation,

          dissolution or winding up) with the Series A  Participating  Preferred

          Stock,  except in accordance  with a purchase offer made in writing or

          by  publication  (as  determined  by the  Board of  Directors)  to all

          holders of Series A Participating  Preferred Stock, or to such holders

          and holders of any such  shares  ranking on a parity  therewith,  upon

          such  terms as the  Board of  Directors,  after  consideration  of the

          respective  annual  dividend  rates  and  other  relative  rights  and

          preferences of the respective  series and classes,  shall determine in

          good  faith  will  result in fair and  equitable  treatment  among the

          respective series or classes.

 

          (b) The Corporation shall not permit any subsidiary of the Corporation

     to purchase or otherwise  acquire for  consideration any shares of stock of

     the Corporation unless the Corporation  could, under  paragraph (a) of this

     Section 4,  purchase or  otherwise  acquire such shares at such time and in

     such manner.

 

5.  Reacquired  Shares.  Any shares of Series A  Participating  Preferred  Stock

purchased  or otherwise  acquired by the  Corporation  in any manner  whatsoever

shall be retired and cancelled promptly after the acquisition  thereof. All such

shares  shall upon their  retirement  and  cancellation  become  authorized  but

unissued  shares of Preferred  Stock and may be reissued as part of a new series

of Preferred  Stock to be created by resolution or  resolutions  of the Board of

Directors,  subject to any  conditions  and  restrictions  on issuance set forth

herein,  or in any other  Articles of  Amendment  creating a series of Preferred

Stock or any similar stock or as otherwise required by law.

 

6. Liquidation, Dissolution or Winding Up.

 

          (a) Upon any  voluntary or  involuntary  liquidation,  dissolution  or

     winding up of the Corporation, no distribution shall be made to the holders

     of  shares  of  stock  ranking  junior  (either  as to  dividends  or  upon

     liquidation,  dissolution  or  winding  up) to the  Series A  Participating

     Preferred  Stock unless,  prior thereto,  the holders of shares of Series A

     Participating  Preferred Stock shall have received $100.00 per share,  plus

     an amount equal to accrued and unpaid dividends and distributions  thereon,

     whether  or not  declared,  to the  date of such  payment  (the  "Series  A

     Liquidation  Preference").  Following the payment of the full amount of the

     Series A Liquidation Preference,  no additional distributions shall be made

     to the holders of shares of Series A Participating  Preferred Stock unless,

     prior thereto, the holders of shares of Common Stock shall have received an

     amount per share (the "Common  Adjustment")  equal to the quotient obtained

     by dividing (i) the Series A Liquidation  Preference by (ii) the Adjustment

     Number.  Following  the  payment  of  the  full  amount  of  the  Series  A

     Liquidation  Preference  and  the  Common  Adjustment  in  respect  of  all

     outstanding  shares  of  (1) Series  A  Participating  Preferred  Stock and

     (2) Common  Stock,  respectively,  (a) holders  of  Series A  Participating

     Preferred Stock and (b) holders of shares of Common Stock shall, subject to

     the prior rights of all other series of Preferred  Stock,  if any,  ranking

     prior  thereto,  receive  their  ratable  and  proportionate  share  of the

     remaining assets to be distributed in the ratio of the Adjustment Number to

     1 with  respect  to  (x) the  Series A  Participating  Preferred  Stock and

     (y) the Common Stock, on a per share basis, respectively.

 

          (b) In the  event,  however,  that  there  are not  sufficient  assets

     available to permit payment in full of the Series A Liquidation  Preference

     and the liquidation  preferences of all other series of Preferred Stock, if

     any, that rank on a parity with the Series A Participating Preferred Stock,

     then such remaining  assets shall be distributed  ratably to the holders of

     such  parity  shares  in  proportion   to  their   respective   liquidation

     preferences.  In the event,  however,  that there are not sufficient assets

     available  to permit  payment in full of the Common  Adjustment,  then such

     remaining  assets  shall be  distributed  ratably to the  holders of Common

     Stock.

 

7.  Consolidation,  Merger,  etc. In case the  Corporation  shall enter into any

consolidation,  merger,  combination or other transaction in which the shares of

Common Stock are exchanged for or changed into other stock or  securities,  cash

and/or  any  other  property,  then in any such  case  each  share  of  Series A

Participating  Preferred Stock shall at the same time be similarly  exchanged or

changed  in an  amount  per  share  equal to the  Adjustment  Number  times  the

aggregate amount of stock,  securities,  cash and/or any other property (payable

in kind), as the case may be, into which or for which each share of Common Stock

is changed or exchanged.

 

8. No Redemption.  Shares of Series A Participating Preferred Stock shall not be

subject to redemption by the Corporation.

 

9. Ranking. The Series A Participating  Preferred Stock shall rank junior to all

other series of the Corporation's Preferred Stock as to the payment of dividends

and the  distribution  of  assets,  unless  the terms of any such  series  shall

provide otherwise, and shall rank senior to the Common Stock as to such matters.

 

10. Amendment.  At any time that any shares of Series A Participating  Preferred

Stock are  outstanding,  the Restated  Charter of the  Corporation  shall not be

amended  in any  manner  which  would  materially  alter or change  the  powers,

preferences or special rights of the Series A  Participating  Preferred Stock so

as to affect them adversely  without the  affirmative  vote of the holders of at

least two-thirds of the outstanding  shares of Series A Participating  Preferred

Stock, voting separately as a single class.

 

11. Fractional Shares.  Series A Participating  Preferred Stock may be issued in

fractions  of a share that shall  entitle  the  holder,  in  proportion  to such

holder's  fractional  shares,  to exercise  voting  rights,  receive  dividends,

participate  in  distributions  and to have the  benefit of all other  rights of

holders of Series A Participating Preferred Stock.

 

3.    The foregoing amendment was adopted on the 21st day of September,  1999,

by the directors  without  shareholder  action,  which was not required  under

Section  55-6-02 of the  General  Statutes of North  Carolina or the  Restated

Charter of the  Corporation  which  provides  that the Board of Directors  may

determine the preferences,  limitations and relative rights of the blank-check

preferred stock authorized in the Restated Charter.

 

      This the 5th day of October, 1999.

 

                              CULP, INC.

 

 

                              By:   /s/ Philip W. Wilson

                                    Phil W. Wilson

                                    Vice President and Chief Financial Officer

 

 

[As filed 9-11-2002]