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EXHIBIT 10.1

Confirmation Regarding Split Dollar Insurance Arrangement

This Confirmation Regarding Split Dollar Insurance Arrangement (this " Confirmation" ) is dated March 17, 2003.

Statement of Purpose

As part of the benefits provided to its former President, Branson J. McRae, McRae Industries, Inc., a North Carolina corporation (the " Company" ), entered into a split dollar insurance arrangement (the " Arrangement" ) with Mr. McRae pursuant to which the Company agreed to pay the annual premiums on each of the life insurance policies listed on Exhibit A, each of which covers the lives of Mr. McRae and his wife, Mrs. Lorraine H. McRae (the " Policies" ). Under the terms of the Arrangement, Mr. McRae was entitled to name the owners of the Policies and (1) upon the death of both of Mr. and Mrs. McRae the Company is entitled to a portion of the death benefits payable under the Policies equal to the then outstanding balance of its cumulative premiums paid on the Policies and (2) upon the termination of the Arrangement prior to the death of both Mr. and Mrs. McRae the owners of the Policies are required to repay to the Company the then outstanding balance of its cumulative premiums paid, or if less, the net cash surrender value of the Policies. Mr. McRae died in February 1997. Mr. and Mrs. McRae' s four children, D. Gary McRae, James W. McRae, Gail McRae Hutchinson and Sandra McRae Harris (the " McRae Children" ), were named the initial owners and beneficiaries of the Policies. In November 1998 ownership of each of the Policies was transferred to a partnership of which each of the McRae Children is a partner, and such partnership was named the beneficiary of each of the Policies. Attached as Exhibit B is a copy of a Split Dollar Insurance Agreement dated June 2, 1994 (the " Split Dollar Agreement" ) evidencing the Arrangement with respect to Hartford Life Insurance Company policy No. LL1723787-13 ($2,000,000 face amount). The Company is not in possession of any other written agreements evidencing the Arrangement. The purpose of this Confirmation is to acknowledge and confirm in writing that the terms of the Arrangement as it applies to each of the Policies are and have been identical to the terms set forth in the Split Dollar Agreement.

Acknowledgement and Confirmation

NOW, THEREFORE, the undersigned hereby acknowledge and confirm that the terms of the Arrangement as it applies to each of the Policies are and have been identical to the terms set forth in the Split Dollar Agreement.

[Signature Page Follows]

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IN WITNESS WHEREOF, the parties hereto have executed this Confirmation as of the date and year first above written. McRAE INDUSTRIES, INC. By: /s/ D. Gary McRae Name:
D. Gary McRae Title: President McRAE SIBLINGS PARTENERSHIP By: /s/ James W. McRae Name: James W. McRae Title: Co-Managing Partner /s/ Lorraine Hamilton McRae Lorraine Hamilton McRae /s/ Gail McRae Hutchinson Gail McRae Hutchinson /s/ Sandra McRae Harris Sandra McRae Harris /s/ Daniel Gary McRae Daniel Gary McRae /s/ James William McRae James William McRae

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Exhibit A

Policies INSURER INSURED POLICY NUMBER COVERAGE AMOUNT Prudential Insurance Company of America Lorraine H. McRae 79 766 180 $ 1,000,000 Prudential Insurance Company of America Lorraine H. McRae 79 691 098 $ 1,000,000 Prudential Insurance Company of America Lorraine H. McRae 79 656 139 $ 1,000,000 Hartford Life Lorraine H. McRae LL1723787 $ 2,000,000 Total: $ 5,000,000

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Exhibit B

Split Dollar Agreement

SPLIT DOLLAR INSURANCE AGREEMENT

(COLLATERAL ASSIGNMENT METHOD)

THIS AGREEMENT is entered into this 2nd day of June 1994, by
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