Limited Waiver and Amendment No.4 to Credit Agreement

This LIMITED WAIVER AND AMENDMENT NO. 4 TO CREDIT AGREEMENT (this “Amendment”) is entered into as of February 28, 2007 by and among INTERNATIONAL TEXTILE GROUP, INC., a Delaware corporation, the other Borrowers and Credit Parties signatory hereto, GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation, for itself and as Agent, and the other Lenders signatory hereto. Unless otherwise specified herein, capitalized terms used in this Amendment shall have the meanings ascribed to them in to the Credit Agreement (as hereinafter defined).

WHEREAS, Borrowers, the other Credit Parties, the Agent and the Lenders entered into that certain Credit Agreement dated as of December 29, 2006 (as amended, supplemented, restated or otherwise modified from time to time, the “Credit Agreement”); and

WHEREAS, the parties to the Credit Agreement have agreed to a limited waiver and amendment to the Credit Agreement as set forth herein;

NOW, THEREFORE, in consideration of the premises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1 Limited Waiver. The Agent and Lenders hereby waive any breach of Sections 4.2(g), 4.2(h), 5.2(f) and 5.4(a) of the Credit Agreement, and any Default or Event of Default which may have occurred as a result thereof prior to the effectiveness of this Amendment, solely to the extent that Borrower failed to have Average Adjusted Availability of at least (a) $20,000,000 on or prior to February 15, 2007 and (b) at least $30,000,000 after February 15, 2007.

(a) Section 4.14 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

“Mandatory Investments. On or prior to the dates indicated in the table below, ITG shall obtain, and shall contribute the same to US Borrowers to be used for purposes permitted by this Agreement, not less than the following amounts in gross cash proceeds from the issuance of Stock and Stock Equivalents to WLR and other Persons:

(b) Sections 4.2(g), 4.2(h), 5.2(f) and 5.4(a) are hereby amended by replacing each occurrence therein of the date “February 15, 2007” with “March 2, 2007”.

3 Representations and Warranties. In order to induce Agent and the Lenders to enter into this Amendment, each Borrower and each other Credit Party represents and warrants to Agent and each Lender (which representations and warranties shall survive the execution and delivery of this Amendment), that:

(a) the execution, delivery and performance by each Credit Party of this Amendment has been duly authorized by all necessary corporate and partnership action and this Amendment is a legal, valid and binding obligation of such Credit Party enforceable against such Credit Party in accordance with its terms; and

(b) upon the effectiveness of this Amendment, all of the representations and warranties contained in the Credit Agreement and in the other Loan Documents (other than those which speak expressly only as of an earlier date) are true and correct in all material respects on and as of the date of the effectiveness of this Amendment after giving effect to this Amendment and the transactions contemplated hereby.

(a) Except as specifically set forth above, the Credit Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed.

(b) The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of Agent or any Lender under the Credit Agreement or any other Loan Document, nor constitute amendment of any provision of the Credit Agreement or any other Loan Document, except as specifically set forth herein. Upon the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of similar import shall mean and be a reference to the Credit Agreement as amended hereby.

(c) Each Credit Party acknowledges and agrees that the amendments and waivers set forth herein are effective solely for the purposes set forth herein and that the execution and delivery by Agent of this Amendment shall not be deemed (i) except as expressly provided in this Amendment, to be a consent to any amendment, waiver or modification of any term or condition of the Credit Agreement or of any other Loan Document, (ii) to create a course of dealing or otherwise obligate Agent or Lenders to forbear, waive, consent or execute similar amendments under the same or similar circumstances in the future, or (iii) to amend, prejudice, relinquish or impair any right of Agent or Lenders to receive any indemnity or similar payment from any Person or entity as a result of any matter arising from or relating to this Amendment.

4.2 Counterparts and Signatures by Fax. This Amendment may be executed in any number of counterparts, each such counterpart constituting an original but all together one and the same instrument. Any party delivering an executed counterpart of this Amendment by fax shall also deliver an original executed counterpart, but the failure to do so shall not affect the validity, enforceability or binding effect of this Amendment.

4.3 Severability. In case any provision in or obligation under this Amendment shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

4.5 GOVERNING LAW. THIS WAIVER AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL, IN ALL RESPECTS, INCLUDING MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above written.


BORROWERS:

INTERNATIONAL TEXTILE GROUP, INC. ITG HOLDINGS, INC. BURLINGTON INDUSTRIES LLC CONE JACQUARDS LLC CONE DENIM LLC CARLISLE FINISHING LLC

By:		/s/ Karyl P. McClusky
Name:		Karyl P. McClusky
Title:		Vice President and Treasurer of each of the entities listed above


AUTOMOTIVE SAFETY COMPONENTS INTERNATIONAL, INC. SAFETY COMPONENTS FABRIC TECHNOLOGIES, INC. AUTOMOTIVE SAFETY COMPONENTS INTERNATIONAL LIMITED

By:		/s/ Stephen B. Duerk
Name:		Stephen B. Duerk
Title:		President of each of the entities listed above


OTHER CREDIT PARTIES:

APPAREL FABRICS PROPERTIES, INC. BURLINGTON APPAREL SERVICES COMPANY BURLINGTON INDUSTRIES V, LLC BWW CT, INC. CLIFFSIDE DENIM LLC CONE ADMINISTRATIVE AND SALES LLC CONE INTERNATIONAL HOLDINGS II, INC. INTERNATIONAL TEXTILE GROUP ACQUISITION GROUP LLC BI PROPERTIES I, INC. BURLINGTON INTERNATIONAL SERVICES COMPANY BURLINGTON INDUSTRIES IV, LLC BURLINGTON WORLDWIDE INC. BILLC ACQUISITION LLC CONE DENIM WHITE OAK LLC CONE INTERNATIONAL HOLDINGS, INC. CONE ACQUISITION LLC WLR CONE MILLS IP, INC.

By:		/s/ Karyl P. McClusky
Name:		Karyl P. McClusky
Title:		Vice President and Treasurer of each of the entities listed above

VALENTEC WELLS, LLC ASCI HOLDINGS GERMANY (DE), INC. ASCI HOLDINGS ASIA PACIFIC (DE), LLC ASCI HOLDINGS CZECH (DE), INC. ASCI HOLDINGS U.K. (DE), INC. ASCI HOLDINGS MEXICO (DE), INC.

By:		/s/ Stephen B. Duerk
Name:		Stephen B. Duerk
Title: President of each of the entities listed above


Date	Equity Contribution
March 2, 2007	$	50,000,000
May 1, 2007	$	50,000,000	”


UBS LOAN FINANCE LLC, as a Lender

By:		/s/ Richard L. Tavrow
Name:		Richard L. Tavrow
Title:		Director

By:		/s/ Irja R. Otsa
Name:		Irja R. Otsa
Title:		Director


WACHOVIA BANK, NATIONAL ASSOCIATION, as a Lender

By:		/s/ Josephine Norris
Name:		Josephine Norris
Title:		Director


BANK OF AMERICA, NA, as a Lender

By:		/s/ John Yankauskas
Name:		John Yankauskas
Title:		Sr. Vice President


WELLS FARGO FOOTHILL LLC, as a Lender

By:		/s/ Yelena Kravchuk
Name:		Yelena Kravchuk
Title:		AVP


AUTOMOTIVE SAFETY COMPONENTS INTERNATIONAL GMBH & CO. KG

By:		/s/ Stephen B. Duerk
Name:		Stephen B. Duerk
Title:		President

AUTOMOTIVE SAFETY COMPONENTS INTERNATIONAL VERWALTUNGS GMBH

By:		/s/ Stephen B. Duerk
Name:		Stephen B. Duerk
Title:		President


AGENT AND LENDERS:

GENERAL ELECTRIC CAPITAL CORPORATION, as the Agent and a Lender

By:		/s/
Title:		Its Duly Authorized Signatory


THE CIT GROUP/COMMERCIAL SERVICES, INC., as a Lender

By:		/s/ M. Kim Carpenter
Name:		M. Kim Carpenter
Title:		Vice President