SECOND AMENDMENT TO SALES AND SERVICES AGREEMENT

EXHIBIT 10.1

SECOND AMENDMENT TO SALES AND SERVICES AGREEMENT

     THIS SECOND AMENDMENT TO SALES AND SERVICES AGREEMENT (hereafter “Second Amendment”) is made effective the 1^st day of January, 2010 (the “Effective Date”) by and between Unifi Manufacturing, Inc., a North Carolina corporation (“Unifi”) and Dillon Yarn Corporation, a South Carolina corporation (“DYC”). Unifi and DYC are sometimes hereinafter collectively referred to as the “parties” or individually as a “party.”

RECITALS:

     WHEREAS, Unifi and DYC entered into a Sales and Services Agreement dated as of January 1, 2007 (the “Original Agreement”, the terms of which are incorporated herein by reference) and a First Amendment To Sales and Services Agreement effective January 1, 2009 (the “First Amendment”, the terms of which are incorporated herein by reference). The Original Agreement, as amended by the First Amendment, is hereinafter referred to as the “Sales Agreement”; and

     WHEREAS, the extended Term of the Sales Agreement expires on December 31, 2009; and

     WHEREAS, Unifi desires to exercise its right to extend the Term of the Sales Agreement for an additional one (1) year period to December 31, 2010 in order to continue the orderly transition of the services provided by DYC to Unifi; and

     WHEREAS, DYC hereby acknowledges its acceptance and agreement to the additional one year extension of the Sales Agreement; and

     WHEREAS, the parties have agreed to amend certain provisions to the Sales Agreement as set forth below.

     NOW THEREFORE, in consideration of these premises, the terms and conditions set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

     1. Sales Services. Schedule Aand Schedule B to the Sales Agreement are deleted in their entireties and replaced by Schedule A and Schedule B hereto respectively.

     2. Compensation for Services. Section 3(a) of the Sales Agreement is deleted in its entirety and replaced by the following provision:

     (a) As consideration for the Sales Services and the Transitional Services, and subject to Section 3(b), Unifi shall pay DYC $1,300,000 per year (the “Base Amount”), in advance, in

quarterly installments of $325,000 each. Unifi shall reimburse DYC for the reasonable travel and entertainment expenses (“T&E expenses”) of its Sales Staff and Executive Staff related to providing the Sales Services to Unifi pursuant to Unifi’s policies and procedures related to T&E expenses.

     Except as expressly stated herein, all of the other terms and conditions of the Sales Agreement shall continue in full and effect as originally written. Any capitalized terms set forth herein that are not expressly defined shall have the meaning ascribed thereto in the Sales Agreement. Should there be a conflict in the terms of this Second Amendment and the Sales Agreement the terms of this Second Amendment shall prevail and all applicable terms of the Sales Agreement shall be hereby deemed amended and modified as necessary to give effect to the intents and purposes of this Second Amendment.

     This Second Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

     IN WITNESS WHEREOF, the parties have executed this Second Amendment, this the 11^th day of December, 2009.

Schedule A

Sales Staff

     Ralph Mormile

     John Barrie

     William Clark

     Palmer Blair

Schedule B

Executive Staff

     Stephen Wener