Exhibit 10.3

Written Summary of Culp, Inc. Corporate
Management Incentive Plan

The plan provides for annual cash bonuses to certain  executive  officers of the
company, 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,  as determined by the Compensation  Committee of the board of directors.
The target bonus opportunity for each executive officer  participant varies from
20% to 150% of salary.  The plan sets forth target  levels of three  performance
measures  for the  company -  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 company 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.
In addition, the bonus for any executive officer would be capped at no more than
200% of salary.  Thus,  the bonus  amounts under the plan could range from 2% of
salary  for  certain  participants  to as  much  as 200%  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.