Exhibit 10.2

Written Summary of Culp Home Fashions Division
Management Incentive Plan

The plan provides for annual cash bonuses to certain  employees of the Culp Home
Fashions (CHF) division, on the following basis:

Each  participant  in the plan has a stated  Management  Incentive  Plan ("MIP")
target bonus  opportunity,  stated as a percentage of the  participant's  annual
salary. The target bonus opportunity for each participant varies from 10% to 50%
of salary,  as determined by the CHF Division  management (or in the case of any
executive officer, by the Compensation Committee of the board of directors). The
plan sets forth target levels of three performance measures for the CHF Division
- operating income, free cash flow and return on capital, in each case excluding
certain extraordinary and non-recurring items, such as restructuring and related
charges,  goodwill  write-offs,  prepayment  fees on debt,  other  non-recurring
items,  and  acquisitions.  If the division  reaches the target  levels for each
performance  measure,  bonuses  in  the  amount  of  100%  of the  target  bonus
opportunity  will be paid.  There is also a  minimum  threshold  level  for each
performance  measure that will cause  bonuses to be paid in the amount of 10% of
the target bonus  opportunity,  a maximum  threshold level for each  performance
measure  that will cause  bonuses to be paid in the amount of 150% of the target
bonus opportunity,  and a super maximum threshold level that will causes bonuses
to be paid in the  amount of 200% of the target  bonus  opportunity.  Thus,  the
bonus  amounts  under  the  plan  could  range  from 1% of  salary  for  certain
participants  to  as  much  as  100%  of  salary  for  other  participants.  The
performance  measures are  "weighted"  such that  achieving a certain level with
respect to each  performance  measure will have a varying  effect on determining
the overall bonus. The weights assigned to each respective  performance  measure
are as follows:  55% weight to operating  income,  30% weight to free cash flow,
and 15% weight to return on capital. In addition, the plan provides that bonuses
will only be paid if the company as a whole reports positive earnings, excluding
restructuring and related expenses and other extraordinary items.