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<SEC-DOCUMENT>0000950123-10-083878.txt : 20100903
<SEC-HEADER>0000950123-10-083878.hdr.sgml : 20100903
<ACCEPTANCE-DATETIME>20100903164758
ACCESSION NUMBER:		0000950123-10-083878
CONFORMED SUBMISSION TYPE:	PRE 14A
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20101027
FILED AS OF DATE:		20100903
DATE AS OF CHANGE:		20100903

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			UNIFI INC
		CENTRAL INDEX KEY:			0000100726
		STANDARD INDUSTRIAL CLASSIFICATION:	TEXTILE MILL PRODUCTS [2200]
		IRS NUMBER:				112165495
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			0624

	FILING VALUES:
		FORM TYPE:		PRE 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-10542
		FILM NUMBER:		101058125

	BUSINESS ADDRESS:	
		STREET 1:		7201 WEST FRIENDLY RD
		STREET 2:		P O BOX 19109
		CITY:			GREENSBORO
		STATE:			NC
		ZIP:			27419-9109
		BUSINESS PHONE:		9192944410

	MAIL ADDRESS:	
		STREET 1:		7201 W FRIENDLY RD
		STREET 2:		PO BOX 19109
		CITY:			GREENSBORO
		STATE:			NC
		ZIP:			24719-9109

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AUTOMATED ENVIRONMENTAL SYSTEMS INC
		DATE OF NAME CHANGE:	19720906
</SEC-HEADER>
<DOCUMENT>
<TYPE>PRE 14A
<SEQUENCE>1
<FILENAME>g24562ppre14a.htm
<DESCRIPTION>SC PRE 14A
<TEXT>
<HTML>
<HEAD>
<TITLE>pre14a</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, DC 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>SCHEDULE 14A</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><B>(Rule&nbsp;14a-101)</B></DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>INFORMATION REQUIRED IN PROXY STATEMENT</B></DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>SCHEDULE 14A INFORMATION</B></DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>Proxy Statement Pursuant to Section&nbsp;14(a) of the Securities<BR>
Exchange Act of 1934 (Amendment No. )</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Filed by the Registrant <FONT style="font-family: Wingdings">&#254;</FONT><BR>
Filed by a Party other than the Registrant <FONT style="font-family: Wingdings">&#111;</FONT>

</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#254;</FONT>&nbsp;&nbsp;&nbsp;Preliminary Proxy Statement<BR>
<FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;<B>Confidential, for Use of the Commission Only (as permitted by Rule&nbsp;14a-6(e)(2))</B><BR>
<FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;Definitive Proxy Statement<BR>
<FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;Definitive Additional Materials<BR>
<FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;Soliciting Material Pursuant to &#167;240.14a-12

</DIV>
<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNIFI, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Name of Registrant as Specified In Its Charter)</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt">&nbsp;</DIV>

<DIV align="center" style="font-size: 10pt">(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">Payment of Filing Fee (Check the appropriate box):
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#254;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">No fee required.</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(1) and 0-11.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Title of each class of securities to which transaction applies:</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV></DIV></TD>
</TR>


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Aggregate number of securities to which transaction applies:</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV></DIV></TD>
</TR>


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Per unit price or other underlying value of transaction computed pursuant to Exchange Act
Rule&nbsp;0-11 (set forth the amount on which the filing fee is calculated and state how it was
determined):</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV></DIV></TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Proposed maximum aggregate value of transaction:</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV></DIV></TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Total fee paid:</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV></DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Fee paid previously with preliminary materials.</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Check box if any part of the fee is offset as provided by Exchange Act Rule&nbsp;0-11(a)(2) and
identify the filing for which the offsetting fee was paid previously. Identify the previous filing
by registration statement number, or the Form or Schedule and the date of its filing.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Amount Previously Paid:</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV></DIV></TD>
</TR>


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Form, Schedule or Registration Statement No.:</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV></DIV></TD>
</TR>


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Filing Party:</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV></DIV></TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Date Filed:</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV></DIV></TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">SOLICITATION OF PROXIES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">VOTING OF SHARES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">INFORMATION RELATING TO PRINCIPAL SECURITY HOLDERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">PROPOSAL 1: ELECTION OF DIRECTORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">NOMINEES FOR ELECTION AS DIRECTORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005">PROPOSAL 2: AMENDMENT OF RESTATED CERTIFICATE OF INCORPORATION TO EFFECT A REVERSE STOCK SPLIT</A></TD></TR>
<TR><TD colspan="9"><A HREF="#006">REPORT OF THE COMPENSATION COMMITTEE ON EXECUTIVE COMPENSATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#007">COMPENSATION DISCUSSION AND ANALYSIS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#008">EXECUTIVE OFFICERS AND THEIR COMPENSATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">BENEFICIAL OWNERSHIP OF COMMON STOCK BY DIRECTORS AND EXECUTIVE OFFICERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#010">DIRECTORS&#146; COMPENSATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#011">COMMITTEES OF THE BOARD OF DIRECTORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#012">SHAREHOLDER RECOMMENDATIONS FOR DIRECTOR NOMINEES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#013">ATTENDANCE OF DIRECTORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#014">CORPORATE GOVERNANCE MATTERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#015">COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION IN COMPENSATION DECISIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#016">TRANSACTIONS WITH RELATED PERSONS, PROMOTERS AND CERTAIN CONTROL PERSONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#017">AUDIT COMMITTEE REPORT</A></TD></TR>
<TR><TD colspan="9"><A HREF="#018">INFORMATION RELATING TO THE COMPANY&#146;S INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</A></TD></TR>
<TR><TD colspan="9"><A HREF="#019">SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</A></TD></TR>
<TR><TD colspan="9"><A HREF="#020">SHAREHOLDER PROPOSALS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#021">HOUSEHOLDING OF ANNUAL MEETING MATERIALS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#022">ANNUAL REPORT</A></TD></TR>
<TR><TD colspan="9"><A HREF="#023">OTHER MATTERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#024">APPENDIX A &#151; PROPOSED AMENDMENT TO THE RESTATED CERTIFICATE OF INCORPORATION OF UNIFI, INC.</A></TD></TR>
<TR><TD colspan="9"><A HREF="#025">APPENDIX B &#151; DIRECTOR INDEPENDENCE STANDARDS</A></TD></TR>
</TABLE>
</CENTER>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>







<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="g24562pg2456200.gif" alt="(LOGO)">
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PROVIDING INNOVATIVE FIBERS AND COMPETITIVE SOLUTIONS<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP></B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">7201 West Friendly Avenue<BR>
Greensboro, North Carolina 27410
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">September &#091; <B>&#149;</B> &#093;, 2010
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="FONT-variant: SMALL-CAPS">To The Shareholders of </FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="FONT-variant: SMALL-CAPS">Unifi, Inc.</FONT>

</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Annual Meeting of Shareholders of your Company will be held at 9:00 A.M. Eastern Daylight
Savings Time on Wednesday, October&nbsp;27, 2010, at the Company&#146;s corporate headquarters at 7201 West
Friendly Avenue, Greensboro, North Carolina.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are providing access to our proxy materials over the Internet. On or about September&nbsp;16,
2010 we will mail a Notice of Internet Availability of Proxy Materials (the &#147;Notice&#148;) to our
Shareholders of record and beneficial owners at the close of business on September&nbsp;7, 2010. On the
date of mailing of the Notice, all Shareholders and beneficial owners will have the ability to
access all of the proxy materials on a web site referred to in the Notice. These proxy materials
will be available free of charge.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Detailed information relating to the Company&#146;s activities and operating performance is
contained in its Annual Report on Form 10-K for the fiscal year ended June&nbsp;27, 2010, which is
available over the Internet as described in the Notice.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You are cordially invited to attend the Annual Meeting of Shareholders in person. Even if you
choose to attend in person, you are encouraged to review the proxy materials and vote your shares
in advance of the meeting by Internet. The Notice will contain instructions to allow you to
request copies of the proxy materials to be sent to you by mail. Any proxy materials sent to you
will include a proxy card that will provide you with a telephone number you may call to cast your
vote, or you may complete, sign and return the proxy card by mail. Your vote is extremely
important and we appreciate your taking the time to vote promptly.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">Sincerely,

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%"><IMG src="g24562pg2456201.gif" alt="-s- William L. Jasper"><BR>
William L. Jasper<BR>
<I>President and Chief Executive Officer</I>

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="g24562pg2456200.gif" alt="(LOGO)">
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PROVIDING INNOVATIVE FIBERS AND COMPETITIVE SOLUTIONS<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP></B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">7201 West Friendly Avenue<BR>
Greensboro, North Carolina 27410
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">NOTICE OF ANNUAL MEETING OF SHAREHOLDERS<BR>
TO BE HELD ON OCTOBER 27, 2010
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="FONT-variant: SMALL-CAPS">To The Shareholders of </FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT style="FONT-variant: SMALL-CAPS">Unifi, Inc.</FONT>

</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Annual Meeting of Shareholders of Unifi, Inc. (the &#147;Company&#148;) will be held at the
Company&#146;s corporate headquarters at 7201 West Friendly Avenue, Greensboro, North Carolina, on
Wednesday, October&nbsp;27, 2010 at 9:00 A.M. Eastern Daylight Savings Time, for the following purposes:
</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">1. To elect nine (9)&nbsp;directors to serve until the next Annual Meeting of Shareholders or until
their respective successors are duly elected and qualified.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">2. To approve an amendment to the Company&#146;s Restated Certificate of Incorporation to effect a
reverse stock split of the Company&#146;s common stock at a reverse stock split ratio of 1-for-3.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">3. To transact such other business as may properly come before the meeting or any adjournment or
adjournments thereof.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors, under the provisions of the Company&#146;s By-Laws, has fixed the close of
business on September&nbsp;7, 2010, as the record date for determination of Shareholders entitled to
notice of and to vote at the Annual Meeting of Shareholders or any adjournment or adjournments
thereof. The transfer books of the Company will not be closed.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>YOUR VOTE IS IMPORTANT</B>. We appreciate your taking the time to vote promptly. After reading
the Proxy Statement, please vote at your earliest convenience by Internet, or request that proxy
materials be sent to you by mail. If you request the proxy materials by mail, included therewith
will be a proxy card with a telephone number you may call to cast your vote, or you may complete,
sign and return the proxy card by mail.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;YOUR SHARES CANNOT BE VOTED UNLESS YOU EITHER VOTE (I)&nbsp;BY INTERNET, (II)&nbsp;REQUEST PROXY
MATERIALS BE SENT TO YOU THAT WILL INCLUDE A PROXY CARD WITH A TELEPHONE NUMBER YOU MAY CALL TO
CAST YOUR VOTE, OR YOU MAY COMPLETE, SIGN AND RETURN THE PROXY CARD BY MAIL, OR (III)&nbsp;ATTEND THE
ANNUAL MEETING AND VOTE IN PERSON.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%"><FONT style="FONT-variant: SMALL-CAPS">By Order Of The Board of Directors</FONT>:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%"><IMG src="g24562pg2456202.gif" alt="-s- Charles F. Mccoy"><BR>
Charles F. McCoy<BR>
<I>Vice President, Secretary, General Counsel<BR>
and Chief Risk Officer</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Greensboro, North Carolina<BR>
September &#091; <B>&#149;</B> &#093;, 2010

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="g24562pg2456200.gif" alt="(LOGO)">
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PROVIDING INNOVATIVE FIBERS AND COMPETITIVE SOLUTIONS<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP></B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">7201 West Friendly Avenue<BR>
Greensboro, North Carolina 27410
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><I>PROXY STATEMENT</I>
</DIV>
<!-- link1 "SOLICITATION OF PROXIES" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>SOLICITATION OF PROXIES</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This solicitation of the enclosed proxy is made by the Board of Directors (the &#147;Board&#148;) of
Unifi, Inc. (the &#147;Company&#148;) for use at the Annual Meeting of Shareholders to be held on Wednesday,
October&nbsp;27, 2010, at 9:00 A.M. Eastern Daylight Savings Time, at the Company&#146;s corporate
headquarters located at 7201 West Friendly Avenue, Greensboro, North Carolina, or at any
adjournment or adjournments thereof (the &#147;Annual Meeting&#148;).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with rules and regulations adopted by the Securities and Exchange Commission
(the &#147;SEC&#148;), instead of mailing a printed copy of our proxy materials to each Shareholder of
record, the Company is now furnishing proxy materials on the Internet. If you received a Notice of
Internet Availability of Proxy Materials (the &#147;Notice&#148;) by mail, you will not receive a printed
copy of the proxy materials other than as described herein. Instead, the Notice will instruct you
as to how you may access and review all of the important information contained in the proxy
materials. The Notice also instructs you as to how you may submit your proxy over the Internet.
If you received a Notice by mail and would like to receive a printed copy of our proxy materials or
vote by telephone, you should follow the instructions for requesting proxy materials included in
the Notice.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is anticipated that the Notice will be sent to Shareholders on or about September&nbsp;16, 2010.
The Proxy Statement and the form of proxy relating to the Annual Meeting will be made available to
Shareholders on the date that the Notice is first sent.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The proxy may be revoked in writing by the person giving it at any time before it is exercised
either by notice to the Secretary or by submitting a proxy having a later date, or it may be
revoked by such person by appearing at the Annual Meeting and electing to vote in person. All
shares represented by valid proxies received pursuant to this solicitation, and not revoked before
they are exercised, will be voted in the manner specified therein. If no specification is made
with respect to the matter to be acted upon, the shares represented by the proxies will be voted
(i)&nbsp;in favor of electing as directors of the Company the nine (9)&nbsp;nominees for director named in
this Proxy Statement, (ii)&nbsp;in favor of the proposal to amend the Company&#146;s Restated Certificate of
Incorporation to effect the reverse stock split, and (iii)&nbsp;in the discretion of the proxy holder on
any other matters presented at the Annual Meeting.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The expense of this solicitation will be borne by the Company. Solicitations of proxies may
be made in person, by mail or by telephone, telegraph or electronic means by directors, officers
and regular employees of the Company who will not be specially compensated in such regard. In
addition, the Company has retained D. F. King &#038; Company to assist in the solicitation of proxies
and will pay such firm a fee estimated not to exceed $9,500 plus reimbursement of expenses.
Arrangements will be made with brokers, nominees and fiduciaries to send proxies and proxy
materials, at the Company&#146;s expense, to their principals.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s common stock (the &#147;Common Stock&#148;), par value $.10 per share, is the only class
of stock of the Company. Only Shareholders of record as of the close of business on September&nbsp;7,
2010 (the &#147;Record Date&#148;), will be entitled to notice of and to vote at the Annual Meeting or any
adjournment thereof. As of the Record Date, the Company had outstanding &#091; <B>&#149;</B> &#093; shares of its Common
Stock. Each share of the Common Stock entitles the holder to one vote with respect to each matter
coming before the Annual Meeting and all such shares vote as a single class.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "VOTING OF SHARES" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>VOTING OF SHARES</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holders of a majority of the outstanding shares entitled to vote, present in person or
represented by proxy at this meeting, will constitute a quorum for the transaction of business. New
York law and the Company&#146;s By-Laws require the presence of a quorum at annual meetings of
Shareholders. At the Annual Meeting, abstentions and &#147;broker non-votes&#148;, if any, are counted as
present for purposes of determining a quorum.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the rules of the New York Stock Exchange, Inc. (&#147;NYSE&#148;), a bank, broker or other nominee
holding the Company&#146;s shares in &#147;street name&#148; for a beneficial owner has discretion (but is not
required) to vote the client&#146;s shares with respect to &#147;routine&#148; matters if the client does not
provide voting instructions. The broker or other nominee, however, is not permitted to vote the
client&#146;s shares with respect to &#147;non-routine&#148; matters without voting instructions. A &#147;broker
non-vote&#148; occurs when the broker or other nominee does not vote on a particular proposal because
that broker or other nominee does not have discretionary voting power for that particular item and
has not received instructions from the beneficial owner.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The proposal to elect directors is considered a non-routine matter under the NYSE rules, which
means that your broker or other nominee may not use its discretion to vote your shares held in
street name on this matter without your express voting instructions. The Company believes that the
proposal to amend the Company&#146;s Restated Certificate of Incorporation to effect the reverse stock
split will be treated as a routine matter under the NYSE rules, which means that your broker or
other nominee will have discretionary authority to vote your shares held in street name on this
matter. Accordingly, if you do not instruct your broker or nominee to vote your shares, the broker
or other nominee may either: (i)&nbsp;vote your shares on routine matters and cast a &#147;broker non-vote&#148;
on non-routine matters, or (ii)&nbsp;leave your shares unvoted altogether.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each share represented is entitled to one vote on all matters properly brought before the
Annual Meeting. Directors will be elected by a plurality of the votes cast by the Shareholders at
a meeting in which a quorum is present. Therefore, abstentions, shares not voted and broker
non-votes, if any, will have no effect on the election of directors. The approval of the proposal
to amend the Company&#146;s Restated Certificate of Incorporation to effect the reverse stock split
requires the affirmative vote of a majority of the outstanding shares of Common Stock.
Abstentions, shares not voted and broker non-votes, if any, are not affirmative votes and therefore
will have the same effect as a vote against this proposal.
</DIV>
<!-- link1 "INFORMATION RELATING TO PRINCIPAL SECURITY HOLDERS" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INFORMATION RELATING TO PRINCIPAL SECURITY HOLDERS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth information, as of September&nbsp;1, 2010, with respect to each
person known or believed by the Company to be the beneficial owner of more than five percent (5%)
of the Common Stock. The nature of beneficial ownership of the shares indicated is set forth in
the notes following the table.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B><I>Amount and Nature</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B><I>Percent of</I></B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B><I>Name and Address of Beneficial Owner</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B><I>Beneficially Owned (1)</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B><I>Class</I></B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">William M. Sams (2)<BR>
750 North St. Paul, Suite&nbsp;1650<BR>
Dallas, TX 75201</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5,701,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9.47</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Stephen Wener (3)<BR>
53 East 34th Street<BR>
Patterson, NJ 07514</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5,473,948</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9.10</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Dimensional Fund Advisors LP (4)<BR>
1299 Ocean Avenue<BR>
Santa Monica, CA 90401</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5,230,814</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.69</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:0px; text-indent:-0px">Dillon Yarn Corporation (5)<BR>
55 East 34th Street<BR>
Patterson, NJ 07514</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5,191,128</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.63</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B><I>Amount and Nature</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B><I>Percent of</I></B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B><I>Name and Address of Beneficial Owner</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B><I>Beneficially Owned (1)</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B><I>Class</I></B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:0px; text-indent:-0px">BlackRock Inc. (6)<BR>
40 East 52nd Street<BR>
New York, NY 10022</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5,085,582</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.45</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">&#147;Beneficial Ownership,&#148; for purposes of the table, is determined according to the meaning of
applicable securities regulations and based on a review of reports filed with the SEC pursuant
to Section 13(d) of the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;).</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">As indicated in a Form&nbsp;4, filed on December&nbsp;1, 2009, Mr.&nbsp;Sams&#146; beneficial ownership includes
1,181,000 shares owned by Marlin Sams Fund L.P., of which Mr.&nbsp;Sams has shared voting and
investment power and of which Mr.&nbsp;Sams disclaims ownership. The table also reflects 10,000
shares that Mr.&nbsp;Sams would have the right to purchase pursuant to stock options that could
become exercisable within 60&nbsp;days of September&nbsp;1, 2010, provided that the closing price of the
Company&#146;s Common Stock as listed on the NYSE shall be at least $8.00 per share for 30
consecutive days, and 10,000 shares that Mr.&nbsp;Sams would have the right to purchase pursuant to
stock options that could become exercisable within 60&nbsp;days of September&nbsp;1, 2010, provided that
the closing price of the Company&#146;s Common Stock as listed on the NYSE shall be at least $10.00
per share for 30 consecutive days, as to which he would have sole voting and investment power
upon acquisition.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">As indicated in a Form&nbsp;5, filed on June&nbsp;29, 2010, Mr.&nbsp;Wener&#146;s beneficial ownership includes
5,191,128 shares owned by Dillon, of which Mr.&nbsp;Wener has shared
voting and investment power and of which Mr.&nbsp;Wener disclaims
beneficial ownership.
The table also reflects 10,000 shares that Mr.&nbsp;Wener would have the right to purchase pursuant
to stock options that could become exercisable within 60&nbsp;days of September&nbsp;1, 2010, provided
that the closing price of the Company&#146;s Common Stock as listed on the NYSE shall be at least
$8.00 per share for 30 consecutive days, and 10,000 shares that Mr.&nbsp;Wener would have the right
to purchase pursuant to stock options that could become exercisable within 60&nbsp;days of
September&nbsp;1, 2010, provided that the closing price of the Company&#146;s Common Stock as listed on
the NYSE shall be at least $10.00 per share for 30 consecutive days, as to which he would have
sole voting and investment power upon acquisition.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">As indicated in its Schedule&nbsp;13G/A, filed on February&nbsp;8, 2010, Dimensional Fund Advisors LP,
an investment adviser registered under Section&nbsp;203 of the Investment Advisers Act of 1940, may
be deemed to beneficially own 5,230,814 shares by virtue of having sole voting and investment
power over such shares.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">As indicated in its Schedule&nbsp;13D/A, filed on June&nbsp;29, 2010, Dillon Yarn Corporation
(&#147;Dillon&#148;) beneficially owned 5,191,298 shares by virtue of having sole voting and investment
power over such shares.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">As indicated in its Schedule&nbsp;13G/A, filed on January&nbsp;29, 2010, BlackRock, Inc., may be deemed
to beneficially own 5,085,582 shares by virtue of having sole voting and investment power over
such shares.</DIV></TD>
</TR>

</TABLE>


<!-- link1 "PROPOSAL 1: ELECTION OF DIRECTORS" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROPOSAL 1: ELECTION OF DIRECTORS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>General Information</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board presently is fixed at eleven (11)&nbsp;members; however by resolution the number of
directors will be reduced to nine (9)&nbsp;at the opening of the Annual Meeting. All the nominees for
election are presently serving as directors and have consented to be named in this Proxy Statement
and to serve, if elected. Mr.&nbsp;Michael Sileck and Mr.&nbsp;Chiu Cheng Anthony Loo have informed the
Board that they will not stand for re-election due to reasons other than a disagreement with the
Registrant on any matter relating to the Registrant&#146;s operations, policies or practices. Although
the Board expects that each of the nominees will be available for election, in the event a vacancy
in the slate of nominees is occasioned by death or other unexpected occurrence, it is intended that
shares represented by proxies in the accompanying form will be voted for the election of a
substitute nominee selected by the person named in the proxy.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set forth below is the name of each of the nine (9)&nbsp;nominees for election to the Board,
together with his age, current principal occupation (which has continued for at least the past five
years unless otherwise indicated), the name and principal business of the company by which he is
employed, if applicable, the period or periods during which he has served as director, all
positions and offices that he holds with the Company, his directorships in other companies with a
class of securities registered pursuant to Section&nbsp;12 of the Exchange Act or subject to the
requirements of Section 15(d) of the Exchange Act or companies registered as an investment company
under the Investment Company Act of 1940 and the specific experience, qualifications, attributes or
skills that led to the conclusion that such person should serve as a director of the Company.
</DIV>
<!-- link1 "NOMINEES FOR ELECTION AS DIRECTORS" -->
<DIV align="left"><A NAME="004"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>NOMINEES FOR ELECTION AS DIRECTORS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WILLIAM J. ARMFIELD, IV </B>(75) &#151; <I>Mr.&nbsp;Armfield has been the President of Spotswood Capital, LLC,
Greensboro, North Carolina, a private investment company, since 1995</I>. Mr.&nbsp;Armfield was a director
and President of Macfield, Inc., a textile company in North Carolina, from 1970 until August&nbsp;1991,
when Macfield, Inc. merged with and into Unifi, Inc. Mr.&nbsp;Armfield was the Vice Chairman and a
director of the Company from 1991 to December&nbsp;1995. Mr.&nbsp;Armfield again became a director of the
Company in 2001, and is a member of the Company&#146;s Audit Committee (Chair), Corporate Governance and
Nominating Committee and Compensation Committee. Mr.&nbsp;Armfield serves as the Audit Committee
financial expert. Mr.&nbsp;Armfield brings executive decision making skills, operating and management
experience, expertise in finance, business development and direct textile industry business acumen
to the Company as a result of his professional experiences. These experiences provide the Board
with, among other things, financial and strategic planning expertise important to the oversight of
the Company&#146;s financial reporting and business strategy implementation.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>R.&nbsp;ROGER BERRIER, JR. </B>(41) &#151; <I>Mr.&nbsp;Berrier has been the Executive Vice President of Sales,
Marketing and Asian Operations of the Company since September&nbsp;2007</I>. Prior to September&nbsp;2007, he
had been the Vice President of Commercial Operations from April&nbsp;2006 to September&nbsp;2007 and the
Commercial Operations Manager responsible for corporate product development, marketing and brand
sales management from April&nbsp;2004 to April&nbsp;2006. Mr.&nbsp;Berrier joined the Company in 1991 and has
held various management positions within operations, including international operations, machinery
technology, research &#038; development and quality control. He has been a director since September
2007 and is a member of the Company&#146;s Executive Committee. Mr.&nbsp;Berrier brings executive decision
making skills, operating and management experience, expertise in sales, marketing and branding,
business development and direct textile industry business acumen to the Company as a result of his
professional experiences. These experiences and Mr.&nbsp;Berrier&#146;s on-going interaction with the
Company&#146;s customers and suppliers provide the Board with, among other things, industry expertise
important to the Company&#146;s businesses, as well as a detailed understanding of the Company&#146;s
business and operations and the economic environment in which it operates.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>ARCHIBALD COX, JR. </B>(70) &#151; <I>Mr.&nbsp;Cox has been the Chairman of Barclays Americas since May&nbsp;2008</I>.
Mr.&nbsp;Cox is the Chairman of Sextant Group, Inc. Mr.&nbsp;Cox was a director of Hutchinson Technology
Incorporated from May&nbsp;1996 to September&nbsp;2009, was the Chairman of Manequench, Inc., a manufacturer
of magnetic material, from September&nbsp;2005 to September&nbsp;2006 and was the President and Chief
Executive Officer of Magnequench, Inc., from October&nbsp;1995 to August&nbsp;2005. He was Chairman of Neo
Material Technologies Inc., a manufacturer of rare earth, zirconium and magnetic materials, from
September&nbsp;2005 to September&nbsp;2006. Mr.&nbsp;Cox has been a director of the Company since February&nbsp;2008.
Mr.&nbsp;Cox brings executive decision making skills, operating and management experience, expertise in
finance, business development and general business acumen to the Company as a result of his
professional experiences. These experiences provide the Board with, among other things, financial
and strategic planning expertise important to the oversight of the Company&#146;s financial reporting
and business strategy implementation.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WILLIAM L. JASPER </B>(57) &#151; <I>Mr.&nbsp;Jasper has been the Company&#146;s President and Chief Executive
Officer since September&nbsp;2007</I>. Prior to September&nbsp;2007 he was the Vice President of Sales from
April&nbsp;2006 to September&nbsp;2007. Prior to April&nbsp;2006, Mr.&nbsp;Jasper was the General Manager of the
Polyester segment, having responsibility for all natural polyester businesses. He joined the
Company with the purchase of the Kinston polyester POY assets from INVISTA in September&nbsp;2004.
Prior to joining the Company, he was the Director of INVISTA&#146;s Dacron<SUP style="FONT-size: 85%; vertical-align: text-top">&#174;</SUP> polyester filament business.
Before working at INVISTA, Mr.&nbsp;Jasper had held various management positions in operations,
technology, sales and business for E.I. du Pont de Nemours and Co. since
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">1980. He has been a director since September&nbsp;2007 and is a member of the Company&#146;s Executive
Committee. Mr.&nbsp;Jasper brings executive decision making skills, operating and management experience,
expertise in manufacturing operations, sales, business development and direct textile industry
business acumen to the Company as a result of his professional experiences. These experiences and
Mr.&nbsp;Jasper&#146;s on-going interaction with the Company&#146;s customers and suppliers provide the Board
with, among other things, industry expertise important to the Company&#146;s businesses, as well as a
detailed understanding of the Company&#146;s business and operations and the economic environment in
which it operates.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>KENNETH G. LANGONE </B>(75) &#151; <I>Mr.&nbsp;Langone has been the President and Chief Executive Officer of
Invemed Associates, LLC, an investment banking firm, New York, New York, since 1974</I>. Mr.&nbsp;Langone
is also a director of YUM! Brands, Inc. and serves as a director, Chairman of the Board and as the
Interim President and Chief Executive Officer of Geeknet, Inc. Mr.&nbsp;Langone was a founder of the
Home Depot, Inc. and served as a director from 1978 to 2008. He also served as a director of
ChoicePoint, Inc. from 2002 to 2008 and of General Electric Co. from 1999 to 2005. Mr.&nbsp;Langone has
been a director of the Company since 1969, and is a member of the Company&#146;s Corporate Governance
and Nominating Committee (Chair). Mr.&nbsp;Langone brings operating and management experience, including
as chief executive officer of a financial services business, expertise in finance, strategic
planning and business development and public company directorship and committee experience to the
Company as a result of his professional experiences. These experiences provide the Board with,
among other things, financial and strategic planning expertise important to the oversight of the
Company&#146;s financial reporting and business strategy implementation.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>GEORGE R. PERKINS, JR. </B>(70) &#151; <I>Mr.&nbsp;Perkins is the retired Chairman of the Board and the former
Chief Executive Officer of Frontier Spinning Mills, Inc., a company that he founded in 1996 and
served in these roles until 2009</I>. Prior to founding Frontier, Mr.&nbsp;Perkins served from 1993 to 1996
as President of the spun yarns division of the Company and was a member of the Board. Mr.&nbsp;Perkins
has served as a director of First BanCorp since 2006. He has currently been a director of the
Company since August&nbsp;2007, and is a member of the Company&#146;s Compensation Committee. Mr.&nbsp;Perkins
brings executive decision making skills, operating and management experience, business development
and general business acumen to the Company as a result of his professional experiences. These
experiences provide the Board with, among other things, industry expertise important to the
oversight of the Company&#146;s businesses.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WILLIAM M. SAMS </B>(72) &#151; <I>Mr.&nbsp;Sams was the President and Chief Investment Officer of FPA
Paramount Fund, Inc., as well as the Executive Vice President of both First Pacific Advisors, Inc.
and FPA Perennial Fund, Inc. from 1981 until he retired in 2000</I>. Mr.&nbsp;Sams has served as a director
of America&#146;s Car-Mart, Inc., since March&nbsp;2005. He has been a director of the Company and has
served as the independent &#147;Lead Director&#148; of the Board since April&nbsp;2007, and is a member of the
Company&#146;s Corporate Governance and Nominating Committee, Audit Committee and Compensation Committee
(Chair). Mr.&nbsp;Sams brings executive decision making skills, expertise in finance, public company
directorship and committee experience and business development acumen to the Company as a result of
his professional experiences. These experiences provide the Board with, among other things,
financial and strategic planning expertise important to the oversight of the Company&#146;s financial
reporting and business strategy implementation.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>G.&nbsp;ALFRED WEBSTER </B>(62) &#151; <I>Mr.&nbsp;Webster was an Executive Vice President of the Company, and had
been an officer of the Company from 1979 through his retirement in 2003, and a director from 1986
until October&nbsp;2004</I>. Mr.&nbsp;Webster is a director of New Bridge Bank Corporation (formerly Lexington
State Bank). Mr.&nbsp;Webster again became a director of the Company in August&nbsp;2007, and is a member of
the Company&#146;s Corporate Governance and Nominating Committee, Audit Committee and Executive
Committee (Chair). Mr.&nbsp;Webster brings executive decision making skills, operating and management
experience, experience in public company directorship and committee experience, business
development and direct textile industry business acumen to the Company as a result of his
professional experiences. These experiences provide the Board with, among other things, industry
expertise important to the oversight of the Company&#146;s businesses.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>STEPHEN WENER </B>(67) &#151; <I>Mr.&nbsp;Wener has served as the President and Chief Executive Officer of
Dillon Yarn Corporation since 1980</I>. The polyester and nylon texturing operations of Dillon were
purchased by the Company on January&nbsp;1, 2007. He has also been Executive Vice President of American
Drawtech Company, Inc. since 1992. He has been a director of the Company since May&nbsp;2007 and served
as acting Chief Executive Officer of
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">the Company from August&nbsp;1, 2007 through September&nbsp;26, 2007. Since August&nbsp;1, 2007, Mr.&nbsp;Wener
has served as the Chairman of the Board of Directors and is a member of the Company&#146;s Executive
Committee. Mr.&nbsp;Wener brings executive decision making skills, operating and management experience,
expertise in finance, business development and direct textile industry business acumen to the
Company as a result of his professional experiences. These experiences provide the Board with,
among other things, industry expertise important to the oversight of the Company&#146;s businesses.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No director has a family relationship as close as first cousin with any other director,
nominee for director or executive officer of the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>The Board recommends that the Shareholders vote to elect all of the nominees as directors.</I></B>
</DIV>
<!-- link1 "PROPOSAL 2: AMENDMENT OF RESTATED CERTIFICATE OF INCORPORATION TO EFFECT A REVERSE STOCK SPLIT" -->
<DIV align="left"><A NAME="005"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROPOSAL 2: AMENDMENT OF RESTATED CERTIFICATE OF INCORPORATION TO EFFECT A REVERSE STOCK SPLIT</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board has unanimously adopted and is submitting for Shareholder approval an amendment (the
&#147;Amendment&#148;) to the Company&#146;s Restated Certificate of Incorporation to effect a reverse stock split
at a reverse stock split ratio of 1-for-3, meaning every three shares of Common Stock currently
outstanding would automatically be converted, as of the Effective Time described below, into one
share of Common Stock. The Board believes it is in the best interests of the Company and its
Shareholders to grant such approval. If the Shareholders approve the Amendment, the Board will
have the absolute right, without further action by the Shareholders, to decide whether to proceed
with the reverse stock split. The reverse stock split will only be effected after the Board (or a
duly authorized Committee of the Board) authorizes the filing of a Certificate of Amendment to the
Company&#146;s Restated Certificate of Incorporation with the Secretary of State of the State of New
York and upon the filing and effectiveness of such Amendment (the &#147;Effective Time&#148;). The form of
the proposed Amendment is attached to this Proxy Statement as Appendix&nbsp;A.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Shareholders approve the Amendment, the Board, in its discretion, may elect, at any
time prior to next year&#146;s annual meeting of Shareholders, to effect the reverse stock split, or the
Board may determine in its discretion not to proceed with the reverse stock split.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Reasons for the Reverse Stock Split</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board believes that the Shareholders should approve the Amendment providing for the reverse
stock split for the following reasons:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><I>Increase in Eligible Investors. </I>The Board believes that a reverse stock split would
increase the price of the Common Stock. Therefore, the Board believes that a reverse
stock split would allow investment by a broader range of institutions and other
investors in the Common Stock, such as funds that are prohibited from buying stocks
whose price is below a certain threshold, potentially increasing trading volume and
liquidity.</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><I>Increased Broker Interest. </I>The Board believes that the intended increase in the
stock price as a result of a reverse stock split would help increase broker interest in
the Common Stock. Because of the trading volatility often associated with lower-priced
stocks, many brokerage houses and institutional investors have adopted internal
policies and practices that either prohibit or discourage them from investing in such
stocks or recommending them to their customers. Some of those policies and practices
may also function to make the processing of trades in lower-priced stocks economically
unattractive to brokers. Additionally, because brokers&#146; commissions on transactions in
lower-priced stocks generally represent a higher percentage of the stock price than
commissions on higher-priced stocks, the current average price per share of the Common
Stock can result in individual Shareholders paying transaction costs representing a
higher percentage of their total share value than would be the case if the stock price
were substantially higher.</DIV></TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><I>Decreased Stock Price Volatility. </I>The Board believes that the intended increase in
the stock price as a result of a reverse stock split could decrease price volatility,
as currently small changes in the price of the Common Stock result in relatively large
percentage changes in the stock price.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Certain Risks Associated with the Reverse Stock Split</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><I>The reverse stock split may not increase the price of the Common Stock. </I>Although
the Board expects that a reverse stock split will result in an increase in the price of
the Common Stock, the effect of a reverse stock split cannot be predicted with
certainty. Other factors, such as the Company&#146;s financial results, market conditions
and the market perception of the Company&#146;s business may adversely affect the stock
price. As a result, there can be no assurance that the reverse stock split, if
completed, will result in the intended benefits described above, that the stock price
will increase following the reverse stock split or that the stock price will not
decrease in the future.</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><I>The reverse stock split may decrease the trading market for the Common Stock.</I>
Because the reverse stock split will reduce the number of shares of Common Stock
available in the public market, the trading market for the Common Stock may be harmed,
particularly if the stock price does not increase as a result of the reverse stock
split.</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><I>The reverse stock split may leave certain Shareholders with &#147;odd lots.&#148; </I>The
reverse stock split may result in some Shareholders owning &#147;odd lots&#148; of fewer than 100
shares of the Common Stock. Odd lot shares may be more difficult to sell, and brokerage
commissions and other costs of transactions in odd lots are generally somewhat higher
than the costs of transactions in &#147;round lots&#148; of even multiples of 100 shares.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Effects of the Reverse Stock Split</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>General</I></B>. If the reverse stock split is approved and implemented, the principal effects will be
to decrease the number of outstanding shares of the Common Stock based on the reverse stock split
ratio of 1-for-3. As of September&nbsp;1, 2010, 60,172,300 shares of Common Stock were issued and
outstanding. Based on this number of shares issued and outstanding, the Company would have
20,057,433 shares outstanding immediately following the completion of the reverse stock split
(without giving effect to the treatment of fractional shares discussed below, which will reduce
slightly the number of outstanding shares).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The reverse stock split will not affect the registration of the Common Stock under the
Exchange Act or the listing of the Common Stock on the NYSE. Following the reverse stock split, the
Common Stock will continue to be listed on the NYSE under the symbol &#147;UFI&#148;, although it will be
considered a new listing with a new CUSIP number.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proportionate voting rights and other rights of the holders of the Common Stock will not be
affected by the reverse stock split, other than as a result of the treatment of fractional shares
as described below. Except for Shareholders who are cashed out as a result of holding fractional
shares discussed below, the number of Shareholders of record will not be affected by the reverse
stock split and each Shareholder will hold the same percentage of Common Stock immediately
following the reverse stock split as such Shareholder held immediately prior to the reverse stock
split.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effectiveness of Reverse Stock Split</I></B>. The reverse stock split, if approved by Shareholders,
would become effective upon the filing of a Certificate of Amendment to the Company&#146;s Restated
Certificate of Incorporation with the Secretary of State of the State of New York. It is expected
that this filing will take place promptly following the Annual Meeting, assuming the Shareholders
approve the Amendment. However, the exact timing of the filing of the Certificate of Amendment will
be determined by the Board based on its evaluation as to when such action will be the most
advantageous to the Company and its Shareholders. If the Board fails to implement the reverse stock
split by next year&#146;s Annual Meeting of Shareholders, Shareholder approval would be required again
prior to implementing any reverse stock split. In addition, the Board reserves the right,
notwithstanding Shareholder approval and without further action by the Shareholders, to elect not
to proceed with the reverse stock split if, at any
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">time prior to filing the Certificate of Amendment, the Board, in its sole discretion,
determines that it is no longer in the Company&#146;s best interests and the best interests of its
Shareholders to proceed with the reverse stock split.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effect on the Company&#146;s Stock Plans</I></B>. As of June&nbsp;27, 2010, approximately 5,197,388 shares were
issuable upon the exercise of outstanding stock options and upon the vesting of outstanding
restricted stock units, and approximately 4,050,000 additional shares were reserved and available
for issuance pursuant to future awards under the Company&#146;s stock incentive plans. Under these
plans, if the reverse stock split is effected, the number of shares reserved and remaining
available for issuance and the number, exercise price or other similar financial terms of shares
subject to outstanding awards will be proportionately adjusted based on the reverse stock split
ratio of 1-for-3. As a result, using the above data as of June&nbsp;27, 2010, the number of shares
issuable upon exercise or vesting of outstanding awards would be adjusted from 5,197,388 to
1,732,462 (without giving effect to the treatment of fractional shares, which will reduce slightly
the number of shares so issuable) and the 4,050,000 shares that were available for future issuance
under the stock plans would be adjusted to 1,350,000 shares (subject to increase as and when awards
made under the stock plans expire or are forfeited and are returned in accordance with the terms of
the plans). For individual holders, the number of shares subject to outstanding awards would be
reduced by a factor of 3 and, in the case of outstanding stock options, the exercise price per
share would be increased by a multiple of 3, such that upon an exercise, the aggregate exercise
price payable by the optionee to the Company would remain the same. For example, an outstanding
stock option for 3,000 shares of Common Stock, exercisable at $1.00 per share, would be adjusted as
a result of a 1-for-3 reverse stock split ratio into an option exercisable for 1,000 shares of
Common Stock at an exercise price of $3.00 per share.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effect on Authorized but Unissued Shares of Common Stock</I></B>. Currently, the Company is
authorized in its Restated Certificate of Incorporation to issue up to a total of 500,000,000
shares of Common Stock. The total number of authorized shares of Common Stock will not change as a
result of the reverse stock split.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September&nbsp;1, 2010, the Company had 60,172,300 shares of Common Stock issued and
outstanding, 9,247,388 shares of Common Stock reserved for issuance pursuant to the Company&#146;s stock
plans, and 430,580,312 shares authorized and available for issuance for other corporate purposes.
As described above, the reverse stock split would have the effect of reducing the number of issued
and outstanding shares of Common Stock and the number of shares of Common Stock reserved for
issuance pursuant to the Company&#146;s stock plans. Therefore, because the total number of authorized
shares of Common Stock will not change as a result of the reverse stock split, upon the
effectiveness of the reverse stock split, the number of authorized shares of Common Stock that are
not issued and outstanding or reserved for issuance would increase, and there would be
approximately 46.3&nbsp;million additional authorized but unissued shares of the Company&#146;s Common Stock
available for future issuance (without giving effect to the treatment of fractional shares
discussed below). All authorized but unissued shares that are not reserved for issuance would
remain available for issuance by the Board for general corporate purposes at any time, at its
discretion, without Shareholder approval. If the Board were to authorize the issuance of any such
shares, such issuances could dilute the ownership interests of holders of Common Stock. The Board
has no current plans to issue any of the additional authorized but unissued shares that would
result if the reverse stock split were effected.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Potential Anti-Takeover Effect</I></B>. The increased proportion of authorized but unissued shares to
issued shares could, under certain circumstances, have an anti-takeover effect. For example, the
issuance of a large block of the Common Stock could dilute the stock ownership of a person seeking
to effect a change in the composition of the Board or contemplating a tender offer or other
transaction for the combination of the Company with another company. However, the Amendment
providing for the reverse stock split is not being proposed in response to any effort of which the
Company is aware to accumulate shares of Common Stock or obtain control of the Company, nor is it
part of a plan by management to recommend to the Board and Shareholders a series of amendments to
the Company&#146;s Restated Certificate of Incorporation. Other than the Amendment for the reverse
stock split, the Board does not currently contemplate recommending the adoption of any other
amendments to the Company&#146;s Restated Certificate of Incorporation that could be construed to reduce
or interfere with the ability of third parties to take over or change the control of the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Fractional Shares</I></B>. The Company does not currently intend to issue scrips or fractional shares
in connection with the reverse stock split. Shareholders who would otherwise hold fractional
shares because the number of shares of Common Stock they hold before the reverse stock split is not
evenly divisible by the reverse stock split ratio will be entitled to receive cash (without
interest) in lieu of such fractional shares in an amount equal
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">to the closing price of the Common Stock as reported on the NYSE on the trading day
immediately preceding the Effective Time, as adjusted by the reverse stock split ratio, multiplied
by the applicable fraction of a share, for such fractional share of Common Stock they would
otherwise be entitled to at the Effective Time. Shareholders who hold their shares electronically
in book-entry form will receive such cash payment as soon as practicable following the Effective
Time, as described in &#147;Effect on Registered Book-Entry Holders&#148; below. Shareholders who hold their
shares in certificate form will receive such cash payment in lieu of fractional shares following
the surrender of their pre-split certificates for post-split certificates, as described in &#147;Effect
on holders of Registered Certificated Shares&#148; below. The Company will either deposit sufficient
cash with the Company&#146;s transfer agent or set aside sufficient cash for the purchase of the above
referenced fractional interests. The ownership of a fractional share interest will not give the
holder any voting, dividend or other rights, except the right to receive the above-described cash
payment.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders should be aware that, under the escheat laws of various jurisdictions, sums due
for fractional interests that are not timely claimed after the Effective Time may be required to be
paid to the designated agent for each such jurisdiction, unless correspondence has been received by
the Company or the transfer agent concerning ownership of such funds within the time permitted in
such jurisdiction. Thereafter, if applicable, Shareholders otherwise entitled to receive such
funds, but who do not receive them, will have to seek to obtain such funds directly from the state
to which they were paid.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effect on Par Value</I></B>. The proposed Amendment providing for the reverse stock split will not
affect the par value of the Common Stock, which will remain at $.10 per share.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Reduction In Stated Capital</I></B>. As a result of the reverse stock split, at the Effective Time,
the stated capital on the Company&#146;s balance sheet attributable to the Common Stock, which consists
of the par value per share of the Common Stock multiplied by the aggregate number of shares of the
Common Stock issued and outstanding, will be reduced in proportion to the reverse stock split
ratio. Correspondingly, the Company&#146;s additional paid-in capital account, which consists of the
difference between the Company&#146;s stated capital and the aggregate amount paid to the Company upon
issuance of all currently outstanding shares of the Common Stock, will be credited with the amount
by which the stated capital is reduced. The Company&#146;s Shareholders&#146; equity, in the aggregate, will
remain unchanged.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>No Going Private Transaction</I></B>. Notwithstanding the decrease in the number of outstanding shares
following the proposed reverse stock split, the Board does not intend for this transaction to be
the first step in a &#147;going private transaction&#148; within the meaning of Rule&nbsp;13e-3 of the Exchange
Act.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>No Dissenter&#146;s Rights. </I></B>The New York Business Corporation Law does not provide dissenters&#146;
rights of appraisal to the Shareholders in connection with the reverse stock split transaction.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effect on Registered and Beneficial Holders. </I></B>If the reverse stock split is effected, the
Company intends to treat beneficial holders (<I>i.e.</I>, Shareholders who hold their shares in &#147;street
name&#148; through a bank, broker or other nominee) in the same manner as registered Shareholders whose
shares are registered in their names. Banks, brokers or other nominees will be instructed to effect
the reverse stock split for their beneficial holders holding shares in &#147;street name.&#148; However,
these banks, brokers or other nominees may have their own procedures for processing the reverse
stock split. Shareholders who hold shares with a bank, broker or other nominee are encouraged to
contact their bank, broker or other nominee.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effect on Registered Book-Entry Holders</I></B>. Some of the Company&#146;s registered Shareholders may
hold some or all of their shares electronically in book-entry form under the direct registration
system for securities. These Shareholders do not have stock certificates evidencing their
ownership of the Company&#146;s Common Stock. Instead, they are provided with a statement reflecting the
number of shares registered in their accounts. If you hold shares in book-entry form, you do not
need to take any action following the Effective Time in order for your shares to be adjusted to
reflect the reverse stock split or to receive your cash payment in lieu of any fractional share
interest, if applicable. If you are entitled to post-split shares, a transaction statement will
automatically be sent to your address of record indicating the number of shares you hold following
the Effective Time. If you are entitled to a payment in lieu of any fractional share interest, a
check will be mailed to you at your registered address as soon as practicable after the Effective
Time. By signing and cashing this check, you will warrant that you owned the shares
for which you received a cash payment.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Effect on Holders of Registered Certificated Shares</I></B>. Some registered Shareholders may hold
their shares of Common Stock in certificate form or a combination of certificate and book-entry
form. If any of your shares are held in certificate form, you will receive a transmittal letter
from the Company&#146;s transfer agent as soon as practicable after the Effective Time of the reverse
stock split. The transmittal letter will contain instructions on how to surrender your
certificate(s) representing your pre-split shares to the transfer agent. Upon receipt of your
properly completed and executed letter of transmittal and your stock certificate(s), you will be
issued the appropriate number of post-split shares. These shares will be issued electronically in
book-entry form under the direct registration system. This means that, instead of receiving a new
stock certificate, you will receive a direct registration statement that indicates the number of
post-split shares you own in book-entry form. At any time after receipt of your direct registration
statement, you may request a stock certificate representing your post-split ownership interest. If
you are entitled to a payment in lieu of any fractional share interest, payment will be made as
described above under &#147;Fractional Shares&#148;. No service charge will be payable by Shareholders in
connection with the exchange of certificates or the issuance of cash for fractional interests, all
of which costs will be borne and paid by the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>No new shares in book-entry form will be issued and no payment in lieu of any fractional share
interest will be made to you until you surrender your outstanding certificate(s), together with the
properly completed and executed letter of transmittal, to the transfer agent.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>YOU SHOULD NOT SEND YOUR CERTIFICATES NOW. YOU SHOULD SEND THEM ONLY AFTER YOU RECEIVE THE
LETTER OF TRANSMITTAL FROM THE TRANSFER AGENT.</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Certain Federal Income Tax Consequences of the Reverse Stock Split</I></B>. The following is a general
summary of certain U.S. federal income tax consequences of the reverse stock split that may be
relevant to Shareholders. This summary is based upon the provisions of the Internal Revenue Code of
1986, as amended (the &#147;Internal Revenue Code&#148;), Treasury regulations promulgated thereunder,
published administrative rulings and judicial decisions as of the date hereof, all of which may
change, possibly with retroactive effect, resulting in U.S. federal income tax consequences that
may differ from those discussed below. This summary does not purport to be complete and does not
address all aspects of federal income taxation that may be relevant to Shareholders in light of
their particular circumstances or to Shareholders that may be subject to special tax rules,
including, without limitation: (i)&nbsp;Shareholders subject to the alternative minimum tax; (ii)&nbsp;banks,
insurance companies, or other financial institutions; (iii)&nbsp;tax-exempt organizations; (iv)&nbsp;dealers
in securities or commodities; (v)&nbsp;regulated investment companies or real estate investment trusts;
(vi)&nbsp;partnerships (or other flow-through entities for U.S. federal income tax purposes and their
partners or members); (vii)&nbsp;traders in securities that elect to use a mark-to-market method of
accounting for their securities holdings; (viii)&nbsp;foreign Shareholders or U.S. Shareholders whose
&#147;functional currency&#148; is not the U.S. dollar; (ix)&nbsp;persons holding the Common Stock as a position
in a hedging transaction, &#147;straddle,&#148; &#147;conversion transaction&#148; or other risk reduction transaction;
(x)&nbsp;persons who acquire shares of the Common Stock in connection with employment or other
performance of services; (xi)&nbsp;dealers and other Shareholders that do not own their shares of Common
Stock as capital assets; or (xii)&nbsp;U.S. expatriates. In addition, this summary does not address the
tax consequences arising under the laws of any foreign, state or local jurisdiction and U.S.
federal tax consequences other than federal income taxation. If a partnership (including any entity
or arrangement treated as a partnership for U.S. federal income tax purposes) holds shares of the
Common Stock, the tax treatment of a partner in the partnership generally will depend upon the
status of the partner and the activities of the partnership.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has not sought, and will not seek, an opinion of counsel or a ruling from the
Internal Revenue Service (&#147;IRS&#148;) regarding the U.S. income tax consequences of the reverse stock
split and there can be no assurance the IRS will not challenge the statements and conclusions set
forth below or that a court would not sustain any such challenge. EACH SHAREHOLDER SHOULD CONSULT
SUCH SHAREHOLDER&#146;S TAX ADVISOR WITH RESPECT TO THE PARTICULAR TAX CONSEQUENCES OF THE REVERSE STOCK
SPLIT TO SUCH SHAREHOLDER.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The reverse stock split should constitute a &#147;recapitalization&#148; for U.S. federal income tax
purposes. As a result, a Shareholder generally should not recognize gain or loss upon the reverse
stock split, except with respect to cash received in lieu of a fractional share of the Common
Stock, as discussed below. A Shareholder&#146;s aggregate tax
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">basis in the shares of the Common Stock received pursuant to the reverse stock split should
equal the aggregate tax basis of the shares of the Common Stock surrendered (excluding any portion
of such basis that is allocated to any fractional share of the Common Stock), and such
Shareholder&#146;s holding period (<I>i.e.</I>, acquired date) in the shares of the Common Stock received
should include the holding period in the shares of the Common Stock surrendered. Treasury
regulations promulgated under the Internal Revenue Code provide detailed rules for allocating the
tax basis and holding period of the shares of the Common Stock surrendered to the shares of the
Common Stock received pursuant to the reverse stock split. If you acquired your shares of Common
Stock on different dates and at different prices, you should consult your tax advisors regarding
the allocation of the tax basis and holding period of such shares.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Shareholder who receives cash in lieu of a fractional share of the Common Stock pursuant to
the reverse stock split generally should recognize capital gain or loss in an amount equal to the
difference between the amount of cash received and the holder&#146;s tax basis in the shares of the
Common Stock surrendered that is allocated to such fractional share of the Common Stock. Such
capital gain or loss should be long-term capital gain or loss if the holder&#146;s holding period for
the Common Stock surrendered exceeded one year at the Effective Time.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unifi will not recognize any gain or loss as a result of the reverse stock split.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information returns generally will be required to be filed with the IRS with respect to the
receipt of cash in lieu of a fractional share of the Common Stock pursuant to the reverse stock
split. In addition, Shareholders may be subject to a backup withholding tax (at the current
applicable rate of 28%) on the payment of such cash if they do not provide their taxpayer
identification numbers in the manner required or otherwise fail to comply with applicable backup
withholding tax rules. Backup withholding is not an additional tax. Any amounts withheld under the
backup withholding rules may be refunded or allowed as a credit against the Shareholder&#146;s federal
income tax liability, if any, provided the required information is timely furnished to the IRS.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>The Board recommends that the Shareholders vote to approve the Amendment to the Company&#146;s
Restated Certificate of Incorporation to allow a reverse stock split at a reverse stock split ratio
of 1-for-3.</I></B>
</DIV>
<!-- link1 "REPORT OF THE COMPENSATION COMMITTEE ON EXECUTIVE COMPENSATION" -->
<DIV align="left"><A NAME="006"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>REPORT OF THE COMPENSATION COMMITTEE<BR>
ON EXECUTIVE COMPENSATION</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a report of the Compensation Committee describing the compensation policies
applicable to the Company&#146;s executive officers during the fiscal year ended June&nbsp;27, 2010. The
current members of the Compensation Committee are William M. Sams, who is the Committee Chair,
William J. Armfield, IV, Chiu Cheng Anthony Loo and George R. Perkins, Jr. All of the members of
the Compensation Committee are independent.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Compensation Discussion and Analysis</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee has reviewed and discussed the Company&#146;s Compensation Discussion
and Analysis with management. Based on this review and discussion, the Compensation Committee
recommended to the Board of Directors that the Compensation Discussion and Analysis be included in
the Company&#146;s Proxy Statement on Schedule&nbsp;14A for its 2010 Annual Meeting, which is incorporated by
reference in the Company&#146;s Annual Report on Form 10-K for the fiscal year ended June&nbsp;27, 2010, each
as filed with the SEC.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Submitted by the Compensation Committee of the Board:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">William M. Sams, Chairman<BR>
William J. Armfield, IV<BR>
Chiu Cheng Anthony Loo<BR>
George R. Perkins, Jr.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "COMPENSATION DISCUSSION AND ANALYSIS" -->
<DIV align="left"><A NAME="007"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>COMPENSATION DISCUSSION AND ANALYSIS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Compensation Philosophy, Principles and Policies</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s executive compensation program is designed to attract executives with the
requisite skills necessary to support our strategic objectives, to reward executives for the
achievement of near-term and long-term goals, and to retain executives by aligning their
compensation with the longer-term creation of Shareholder value through the development of a
sustainable business with consistent performance. The Compensation Committee has developed an
executive compensation policy that is primarily based upon the practice of pay-for-performance.
Therefore, the focus of the Compensation Committee and the Company&#146;s executive compensation program
is to ensure that an appropriate relationship exists between executive pay and the creation of
Shareholder value, while at the same time enabling the Company to attract, retain, reward and
motivate high caliber employees. The Compensation Committee monitors the results of its executive
compensation policy to ensure that compensation payable to executive officers creates proper
incentives to enhance Shareholder value, rewards superior performance, and is justified by returns
available to Shareholders.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In establishing compensation for the named executive officers (the &#147;NEOs&#148;) the following are
the Compensation Committee&#146;s objectives:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">All components of executive compensation should be set so that the Company can
continue to attract, retain, reward and motivate talented and experienced executives;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Ensure executive compensation is aligned with the Company&#146;s corporate strategies,
business objectives and the long-term interests of the Shareholders;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Increase the incentive to achieve key strategic and financial performance measures
by linking incentive award opportunities to the achievement of performance goals in
these areas; and</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Enhance the NEOs&#146; incentive to increase the Company&#146;s long-term value, as well as
promote retention of key personnel, by providing a portion of total compensation
opportunities for senior management in the form of direct ownership in the Company
through stock ownership.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee reviews all components of the NEOs&#146; compensation. The Compensation
Committee also monitors the compensation levels in general for all other senior level employees of
the Company. In addition, the Compensation Committee has the discretion to hire compensation and
benefits consultants to assist in developing and reviewing overall executive compensation
strategies.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Overview of Compensation Components</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee views executive compensation in four component parts: base salary,
annual incentive compensation, long-term incentive compensation and other personal benefits. A
brief description of each of these components is provided below, together with a summary of its
objectives:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><I>Compensation Element</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><I>Description</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><I>Objective</I></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Base Salary</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fixed compensation
that is reviewed
annually based on
performance.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To provide
a base level of
compensation that
fairly accounts for
the job and scope
of the role being
performed.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To attract,
retain, reward and
motivate qualified
and experienced
executives.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Annual Incentive Compensation</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Variable
compensation earned
based on
performance against
pre-established
annual goals.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To provide
incentives for
achieving critical
annual operating
goals which
ultimately
contribute to
long-term return to
Shareholders.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Long-Term Incentive
Compensation</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Variable
compensation which
is comprised of
equity in the
Company and
participation in a
Supplemental Key
Employee Retirement
Plan. The equity
portion of the
compensation is at
risk because its
value will vary
with the value of
the Common Stock.
The Supplemental
Key Employee
Retirement Plan
provides additional
retirement income
beyond what is
provided in the
Company&#146;s standard
retirement plan
through a pre-set,
annual contribution
based on base
salary.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To align
the economic
interests of the
executives with the
Shareholders by
rewarding
executives for
stock price
improvement.</DIV><br><br>
<DIV style="margin-left:21px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;To promote
retention (through
vesting schedules).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Other Benefits and Perquisites</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Broad-based
benefits provided
to all the
Company&#146;s employees
(e.g., health and
group term life
insurance), a
retirement savings
plan, and certain
perquisites,
including club
memberships,
spousal travel and
a car allowance.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To provide
a competitive total
compensation
package to attract
and retain key
executives.</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The annual and long-term incentive portions of the executive&#146;s compensation are intended to
achieve the Compensation Committee&#146;s goal of aligning the executive&#146;s interests with those of the
Shareholders and with Company performance. These portions of an executive&#146;s compensation are
placed at risk and are linked to the accomplishment of specific results that are designed to
benefit the Shareholders and the Company, both in the long and short term. As a result, during
years of excellent performance, the executives are provided the opportunity to earn a higher level
of compensation and, conversely, in years of below average performance, their compensation will be
limited to their base compensation levels. Finally, the annual and long-term incentive portions of
the executive&#146;s compensation are designed to achieve the Compensation Committee&#146;s goal of
attracting and retaining high caliber, experienced executives, through vesting schedules and
deferred benefits. The Compensation Committee believes that these elements of compensation, when
combined, are effective, and will continue to be effective, in achieving the overall objectives of
the Company&#146;s executive compensation program.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Operation of the Compensation Committee</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As described elsewhere in this Proxy Statement, the Compensation Committee is responsible for
the administration and overall structure of the Company&#146;s executive compensation program. The
Compensation Committee was composed of four independent directors during fiscal 2010, in accordance
with the independence requirements of the NYSE Corporate Governance Standards. The Compensation
Committee reviews and approves corporate goals and objectives relevant to the compensation of each
NEO, evaluates each NEO&#146;s performance in light of these goals and objectives with input from the
Company&#146;s Chief Executive Officer (&#147;CEO&#148;) and Chairman of the Board, and sets each NEO&#146;s
compensation level based on this evaluation and consultation. The Compensation Committee also
advises senior management with respect to the range of compensation to be paid to other employees
of the Company, administers and makes recommendations to the Board concerning benefit plans for the
Company&#146;s directors, officers and employees and recommends benefit programs and future objectives
and goals for the Company. For more information on the operation of the Compensation Committee,
please refer to &#147;Committees of the Board of Directors&#148; below.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For fiscal 2010 the Compensation Committee did not seek assistance from a compensation
consultant, and instead relied on compensation information from the prior year. The Compensation
Committee continued to consider factors including the historical practices of the Company, the
officer&#146;s leadership and advancement of the Company&#146;s long-term strategy, plans and objectives,
individual performance and contribution to the Company&#146;s success, budget guidelines and assessment
of the Company&#146;s financial condition. Additionally, the Compensation Committee considered the
Company&#146;s operating results and adjusted EBITDA (described below), increases in the salaries for
the NEOs in fiscal 2009, the discretionary bonuses paid to salaried employees for fiscal 2008, the
decline in the Company&#146;s stock price during fiscal 2009, and the current economic climate and the
need for the Company to preserve cash. Based on these factors the Compensation Committee set
executive compensation for fiscal 2010.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Elements of Compensation</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Base Salaries</I></B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NEOs&#146; base salaries are determined based on the historical practices of the Company, the
officer&#146;s leadership and advancement of the Company&#146;s long-term strategy, plans and objectives,
individual performance and contribution to the Company&#146;s success, budget guidelines and assessment
of the Company&#146;s financial condition. It is the intent of the Compensation Committee to maintain a
close relationship between the Company&#146;s performance and the base salary component of the
compensation for each NEO. No formula based salary increases were provided to the NEOs during
fiscal 2010.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To aid the Compensation Committee in making its determination, the CEO provides
recommendations annually to the Compensation Committee regarding the compensation of all NEOs.
Generally, each NEO participates in an annual performance review with the CEO to provide input
about his contributions to the Company&#146;s success for the period being assessed. The overall
performance of each NEO is reviewed annually by the Compensation Committee, which then makes
recommendations on the actual base salary for each NEO to the Board for approval.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During fiscal 2010, Mr.&nbsp;Caudle&#146;s base salary was increased to $290,000, an increase from his
fiscal 2009 base salary of approximately 11.5%, reflecting a merit-based increase based on the
Compensation Committee&#146;s determination that Mr.&nbsp;Caudle had not received an increase in his base
salary since fiscal year 2007, and that under Mr.&nbsp;Caudle&#146;s leadership there had been process
improvements and efficiency gains in the Company&#146;s manufacturing operations over such time. During
fiscal 2010, Mr.&nbsp;McCoy&#146;s base salary was increased to $295,000, an increase from his fiscal year
2009 base salary of approximately 7.3%, based on his undertaking the additional role of Chief Risk
Officer. For fiscal 2010, the base salaries for Messrs.&nbsp;Jasper, Berrier and Smith were not
increased.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Annual Incentive Compensation</I></B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company structures its annual incentive compensation, in the form of a bonus, to reward
its NEOs based on the Company&#146;s fiscal year performance. All NEOs are eligible to earn a bonus
which is a predetermined
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">percentage of their base salary (called target bonus). These targets are set by the
Compensation Committee and have a minimum (threshold)&nbsp;achievement level.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At its meeting in July&nbsp;2009, the Compensation Committee approved a revision to the annual
incentive compensation, to revise the annual incentive compensation targets to include both
adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization, adjusted to
exclude certain items such as restructuring charges, equity in earnings and losses of
unconsolidated affiliates, write down of long-lived assets and unconsolidated affiliates, non-cash
compensation expense net of distributions, gains and losses on sales of property, plant and
equipment, hedging gains and losses, asset consolidation and optimization expense, and certain
other special charges as determined by the Compensation Committee) and earnings from 50% or more
owned equity affiliates (&#147;Affiliate Earnings&#148;). The Company&#146;s adjusted EBITDA is a measure of cash
flow generated by the Company&#146;s business. The Compensation Committee uses adjusted EBITDA as a
measure of Company performance because the Compensation Committee believes it provides a clear
indicator of cash generation. In setting the adjusted EBITDA target for fiscal 2010, the
Compensation Committee considered the expected performance of the Company. However, the
Compensation Committee determined that due to the changing nature of the Company&#146;s business,
adjusted EBITDA was no longer the sole measure of the Company&#146;s performance. While the
Compensation Committee believed that adjusted EBITDA is a clear indicator of cash generation, the
Compensation Committee also believed that due to the shifting nature of the Company&#146;s business and
the increased role 50% or more owned equity affiliates would play in driving the success of the
business, the NEOs should be incentivized to increase Affiliate Earnings. The Compensation
Committee set the Company&#146;s combined target of both adjusted EBITDA and Affiliate Earnings at $41
million (the &#147;Bonus Target&#148;), which it projected would be achieved through an adjusted EBITDA
target for fiscal 2010 of $40&nbsp;million and an Affiliate Earnings target for fiscal 2010 of $1
million. The Company was not restricted in how it achieved the Bonus Target, meaning the Bonus
Target would be achieved if the Company had adjusted EBITDA of $41&nbsp;million and Affiliate Earnings
of $0, or if the Company had adjusted EBITDA of $35&nbsp;million, and Affiliate Earnings of $6&nbsp;million.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The annual incentive bonus awarded to NEOs may be increased or decreased by the Compensation
Committee as a result of the individual&#146;s performance and/or contribution to Company achievement of
financial objectives. Each NEO&#146;s performance, including the CEO, is evaluated against specific
financial goals prior to payment of bonuses, and the final bonus payment may be adjusted relative
to the achievement of those goals. The performance criteria in the annual incentive bonus program
may be adjusted by either the Compensation Committee or the Board of Directors to account for
unusual events, such as extraordinary transactions, asset dispositions and purchases, and merger
and acquisitions if, and to the extent, either the Compensation Committee or the Board of Directors
considers the effect of such events indicative of the Company&#146;s performance. Additionally, the
Compensation Committee or the Board of Directors has the discretion to award additional bonus
compensation even if the executive officer would not be entitled to any bonus based on the targets
previously determined. As mentioned above, the specific financial goals for fiscal 2010 were based
on adjusted EBITDA and Affiliate Earnings.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each NEO&#146;s annual incentive compensation for fiscal 2010 was based upon the Company&#146;s
achievement of the Bonus Target, and each NEO&#146;s target bonus upon the Company&#146;s achievement of the
Bonus Target was set at 50% of his annual base salary, up to a maximum of 100% of his annual base
salary. Each NEO&#146;s bonus would be adjusted on a pro rata basis upward or downward, such that an
NEO would receive a bonus equal to 100% of his base salary if the Company achieved 120% of its
Bonus Target, or a bonus equal to 12.5% of his base salary if the Company achieved 90% of its Bonus
Target. The NEO would not be entitled to a bonus if the Company achieved less than 90% of its
Bonus Target. As a result of the Company&#146;s performance during fiscal 2010, the Company achieved
135% of its Bonus Target, and thus all NEOs were entitled to bonus compensation equal to 100% of
their base salary.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At its meeting in July&nbsp;2010, the Compensation Committee approved a revision to the annual
incentive compensation for fiscal 2011, so that the annual incentive compensation target includes
only adjusted EBITDA. As described above, in fiscal 2010, the Compensation Committee used a
combination of adjusted EBITDA and Affiliate Earnings based on the Company&#146;s belief that due to the
shifting nature of the Company&#146;s business and the increased role 50% or more owned equity
affiliates would play in driving the success of the business, the NEOs should be incentivized to
increase Affiliate Earnings. However, during fiscal 2010, the Compensation Committee recognized
that the Company&#146;s business in Central America was not developing as previously anticipated and,
accordingly, that 50% or more equity affiliates would not play the increased role in driving the
success of the business previously
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">thought. As a result, the Compensation Committee revised its view concerning the best
indicator of Company performance, and returned to the use of adjusted EBITDA. In setting the
adjusted EBITDA target for fiscal 2011, the Compensation Committee considered the expected
performance of the Company. The Compensation Committee set the Company&#146;s adjusted EBITDA target
for fiscal 2011 at $60&nbsp;million, and set each NEO&#146;s target bonus at 50% of his annual base salary.
If the Company achieves its adjusted EBITDA target, then the NEOs will be entitled to their target
bonus. Furthermore, each NEO&#146;s bonus will be adjusted on a pro rata basis upward, such that a NEO
will receive a bonus equal to 100% of his base salary if the Company achieves 120% of its targeted
adjusted EBITDA, or downward, such that a NEO will receive a bonus equal to 25% of his base salary
if the Company achieved 80% of its targeted adjusted EBITDA. The NEO will not be entitled to a
bonus if the Company achieves less than 80% of its adjusted EBITDA target.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee believes the cash portion of the annual incentive bonus provides
the necessary incentives to retain, reward and motivate the NEOs for short-term strong Company
performance.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Long-Term Incentive Compensation</I></B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Equity Incentives. </I></B>The Compensation Committee believes that stock-based performance
compensation is essential in aligning the interests of management and the Shareholders in enhancing
the long-term value of the Company&#146;s equity. The 2008 Unifi, Inc. Long-Term Incentive Plan (the
&#147;2008 Plan&#148;) provides for the issuance to the Company&#146;s officers and employees of shares of
incentive stock options, non-qualified stock options, restricted stock awards and performance-based
awards for the Company&#146;s Common Stock. These awards are granted to the Company&#146;s executive
officers and other employees both to build the value of the Company, and to retain key individuals.
Stock options provide incentive for the creation of Shareholder value over the long term since the
full benefit of an executive officer&#146;s compensation package cannot be realized unless the Common
Stock appreciates in value during the term of the option. Restricted stock is available to be
granted from time to time to executive officers, primarily for purposes of retention. Restricted
stock is subject to forfeiture and may not be disposed of by the recipient until certain
restrictions established by the Compensation Committee have lapsed. Generally the Compensation
Committee believes that granting stock options and restricted stock awards can be an effective tool
for meeting the Company&#146;s compensation goal of increasing long-term Shareholder value by tying the
value of the executive&#146;s performance compensation to the Company&#146;s Common Stock performance.
Employees are able to profit from stock options only if the Company&#146;s stock price increases in
value over the stock option&#146;s exercise price. Recipients of restricted stock are not required to
provide consideration other than the rendering of their services.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In July&nbsp;2006, the Compensation Committee established a policy providing for the grant of an
annual stock option to the NEOs. The purpose of the annual grant of stock options to the NEOs is
to provide the NEOs with additional incentives to remain with the Company. In accordance with this
policy, at its July&nbsp;2009 meeting, the Compensation Committee approved a grant of options to the
NEOs. The Compensation Committee based the number of shares which were granted to each NEO, other
than the CEO, primarily upon the recommendation of the CEO.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Supplemental Key Employee Retirement Plan. </I></B>In July&nbsp;2006, the Company established an unfunded
supplemental retirement plan known as the Unifi, Inc. Supplemental Key Employee Retirement Plan
(the &#147;Plan&#148;) for a select group of management employees (including the CEO and the other NEOs).
Participants in the Plan are those employees of the Company or its subsidiaries who are determined
to be participants in the Plan by the Compensation Committee in its sole and exclusive discretion.
The Company established the Plan in order to provide certain management employees additional
compensation benefits in order to further incentivize them and to provide better retention
opportunities.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan provides that as of the end of each calendar year, each participant&#146;s account shall
be credited with an amount equal to the product of such participant&#146;s base salary for such calendar
year multiplied by the participant&#146;s applicable SERP Credit Percentage (8 1/2% of the annual base
salary for executive officers of the Company and 5 1/2% of the annual base salary for participants
who are not executive officers of the Company). Each participant&#146;s account will be adjusted as if
the balance in such account had been invested in the stocks that make up the Standard &#038; Poor&#146;s 500
Index in the same proportion as their respective weighting therein. Upon a participant&#146;s
termination of employment with the Company, the participant shall be entitled to receive the amount
credited to such participant&#146;s account in a single lump sum payable six months after the
participant&#146;s termination of
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">employment with the Company, except in the event that the participant&#146;s termination is due to
death or disability, in which case the participant or the participant&#146;s designated beneficiary, as
applicable, shall immediately be entitled to such payout.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Perquisites and Other Benefits</I></B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Automobile Allowance</I></B>. The Company provided to certain employees an automobile allowance
during fiscal 2010. During fiscal 2010, the Company paid its NEOs approximately $6,000 in
automobile allowance, in the form of a bi-weekly stipend. In addition the Company reimbursed its
NEOs for actual automobile expenses during fiscal 2010. The Company provides these benefits to the
NEOs because the Compensation Committee believes that these benefits are common among executive
officers at similarly situated companies, and thus are an essential element in providing the NEOs
with a competitive compensation package.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Retirement Benefits</I></B>. In order to provide employees at all levels with greater incentive, the
Company makes available to all employees, including the NEOs, the opportunity to make contributions
to the Company&#146;s Retirement Savings Plan (&#147;401(k) Plan&#148;), under which employees may elect to defer
up to 75% of their total compensation, not to exceed the amount allowed by applicable IRS
regulations. Pursuant to the 401(k) Plan, beginning in January&nbsp;2010, the Company reinstated its
policy to match contributions equal to 100% of the employee&#146;s first 3% of compensation contributed
to the 401(k) Plan and 50% of the next 2% of compensation contributed to the 401(k) Plan.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Health Plan, Life Insurance and Other Benefits</I></B>. The Company makes available health and
insurance benefits to all employees, including the NEOs. The cost of the health plans is covered
partially through employees&#146; payroll deductions, with the remainder covered by the Company.
Disability and life insurance benefits are paid by the Company for all salaried employees, however
the NEOs receive additional life insurance coverage provided by the Company. In fiscal 2010, the
cost of certain golf and social club memberships was covered for NEOs, provided that the club
membership provides for a business-use opportunity, such as use of the facilities for functions and
meetings, and client networking and entertainment. On limited occasions, spousal travel in
connection with a business-related event is also a covered expense. This is limited to events
sponsored for the purpose of building customer or employee relationships, where the travel is for
an extended period of time or extends into the personal time of the executive, or it is expected or
customary for the executive to be accompanied by a spouse. Other perquisites such as moving and
relocation costs are provided from time to time.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Change of Control Agreements</I></B>. On August&nbsp;14, 2009, the Company entered into Change of Control
Agreements with each of the NEOs. The agreements provide that if an NEO&#146;s employment is terminated
involuntarily, other than by death, disability or cause, or voluntarily, for good reason, after a
change of control of the Company, such NEO will receive certain benefits. The present value of
those benefits will be 2.99 times the average of such NEO&#146;s annual compensation paid during the
five (5)&nbsp;calendar years preceding the change of control of the Company, subject to being reduced to
the largest amount which will result in no portion of the payment being subject to excise taxes
under the Internal Revenue Code, all as determined by the Company&#146;s independent certified public
accountants, whose decision shall be binding upon the Company and such NEO. These benefits will be
paid to such NEO in equal installments over a twenty-four (24)&nbsp;month period. To be entitled to
payments upon such a change of control, (a)&nbsp;the NEO&#146;s employment must be terminated other than by
death, disability, retirement, or cause, or (b)&nbsp;the NEO must terminate his employment for good
reason, in either case within two years following the change of control. Pursuant to their terms,
each of the Change of Control Agreements with the NEOs will expire upon the earlier of two (2)
years from the date of a change of control, the termination of the NEO prior to the change of
control, or if no change of control has occurred, December&nbsp;31, 2011.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of the Change of Control Agreements, a change of control is deemed to occur if,
among other things, (i)&nbsp;there is a consolidation or merger of the Company or the sale of all or
substantially all of the assets of the Company, (ii)&nbsp;the Shareholders of the Company have approved
any plan or proposal for the liquidation or dissolution of the Company, (iii)&nbsp;any person acquires
twenty percent (20%) or more of the outstanding voting stock of the Company, or (iv)&nbsp;if there is a
change in the majority of directors under specified conditions within a two (2)&nbsp;year period. The
benefits under these Change of Control Agreements are contingent and therefore not reported under
the Summary Compensation Table.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Tax Impact on Compensation</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee has considered the impact of Section 162(m) of the Internal Revenue
Code on the Company&#146;s executive compensation program. Section 162(m) denies a public company a
deduction, except in limited circumstances, for compensation paid to &#147;covered employees,&#148; i.e.,
those employees named in the &#147;Summary Compensation Table&#148; below, to the extent such compensation
exceeds $1,000,000. Based on its review of the likely impact of Section&nbsp;162(m), the Compensation
Committee may in the future recommend changes to the Company&#146;s benefit plans in order to qualify
compensation paid to covered employees for such exception.
</DIV>

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<!-- link1 "EXECUTIVE OFFICERS AND THEIR COMPENSATION" -->
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXECUTIVE OFFICERS AND THEIR COMPENSATION</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>SUMMARY COMPENSATION TABLE</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth a summary of all compensation awarded or paid to or earned by
the Company&#146;s NEOs for services rendered in all capacities to the Company (including its
subsidiaries) for the fiscal year ended June&nbsp;27, 2010.
</DIV>
<DIV align="center">
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<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Pension Value</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>and</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Non-Qualified</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Non-Equity</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Deferred</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Stock</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Option</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Incentive Plan</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Compensation</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>All Other</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD nowrap align="left"><I>Name and Principal</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Salary</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Bonus</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Awards</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Awards</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Compensation</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Earnings</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Compensation</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Total</I></TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><I>Position</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>Year</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)(1)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)(2)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)</I></TD>
</TR>
<TR style="font-size: 7pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><I>(a)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(b)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(c)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(d)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(e)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(f)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(g)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(h)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(i)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(j)</I></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">William L. Jasper</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">635,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">635,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">495,855</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91,792</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,857,647</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">President and Chief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">635,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,438</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">704,438</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">392,118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">225,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">716,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,743</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,383,861</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ronald L. Smith</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">325,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">325,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">247,928</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,403</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">945,331</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Vice President and Chief</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">325,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48,518</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">373,518</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">228,731</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">268,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,244</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">655,475</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">R. Roger Berrier, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">360,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">360,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">396,684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,628</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,172,312</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Executive Vice President,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">360,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54,931</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">414,931</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sales, Marketing and</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">291,347</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">162,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">537,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,382</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,034,229</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Asian Operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas H. Caudle, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">279,617</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">290,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,778</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">735,604</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Vice President,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">260,004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,537</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">301,541</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Manufacturing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">260,004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130,002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,944</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">527,450</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Charles F. McCoy</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2010</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">278,077</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">295,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,653</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">735,939</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Vice President, Secretary,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">275,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,542</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">316,542</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">General Counsel and</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">243,269</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,115</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">497,884</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Chief Risk Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Amounts reflect the grant
date fair value computed in accordance with FASB ASC Topic 718, related to
options granted in the fiscal year noted. See Note&nbsp;5 to the
consolidated financial statements included in the Company&#146;s 2010
Annual Report on Form&nbsp;10-K for more information about the value
of stock option awards.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">All other compensation for each of the NEOs for fiscal 2010 consists of the following:</DIV></TD>
</TR>

</TABLE>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>William L.</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Ronald L.</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>R. Roger</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Thomas H.</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Charles F.</I></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>Jasper</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>Smith</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>Berrier, Jr.</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>Caudle, Jr.</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>McCoy</I></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Automobile Expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Auto Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,912</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,896</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,675</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Country Club Dues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,726</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Spousal Travel</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Life Insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,399</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,890</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,887</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,393</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Matching 401(k) Contribution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,430</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,583</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,554</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,311</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Contributions to
Supplemental Key
Employee Retirement Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,688</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,441</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,274</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91,792</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,403</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,628</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,778</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,653</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>OUTSTANDING EQUITY AWARDS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table provides information concerning the unexercised stock options outstanding
for each of the NEOs of the Company as of the end of fiscal 2010.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Outstanding Equity Awards at 2010 Fiscal Year-End</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><I>Option Awards</I></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Number of Securities</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Number of Securities</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Option</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Option</I></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Underlying Unexercised</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Underlying Unexercised</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Exercise Price</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Expiration</I></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><I>Name</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>Options (#) Exercisable</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>Options (#) Unexercisable</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>Date</I></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><I>(a)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(b)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(c)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(e)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(f)</I></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>William L. Jasper</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4/19/2016</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7/26/2016</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">400,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10/24/2017</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">450,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7/28/2019</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Ronald L. Smith</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10/2/2011</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1/23/2012</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7/1/2014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7/26/2016</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10/24/2017</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">225,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7/28/2019</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Thomas H. Caudle, Jr.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10/2/2011</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1/23/2012</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7/1/2014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7/26/2016</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10/24/2017</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7/28/2019</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Charles F. McCoy</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10/2/2011</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1/23/2012</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7/1/2014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7/26/2016</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10/24/2017</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7/28/2019</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="17" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 0em; background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>R. Roger Berrier, Jr.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.48</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10/2/2011</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1/23/2012</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7/1/2014</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4/19/2016</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.89</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7/26/2016</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10/24/2017</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">360,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7/28/2019</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>GRANTS OF PLAN BASED AWARDS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table provides information concerning the annual performance bonus and long-term
incentive awards made to each of the NEOs in fiscal 2010.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>All Other Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Awards: Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Exercise or Base</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Grant Date Fair</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Securities</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Price of Option</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Value of Stock and</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD nowrap align="center" colspan="3"><B>Grant</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>underlying Options</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Awards</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Option Awards</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(#)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)/Sh</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>($)</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>(a)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(b)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(j)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(k)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>(l)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">William L. Jasper (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap>July 28, 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">450,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">859,500</TD>
    <TD>&nbsp;</TD>
</TR>
<tr>
<TD style="font-size:10pt">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ronald L. Smith (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap>July 28, 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">225,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">429,750</TD>
    <TD>&nbsp;</TD>
</TR>
<tr>
<TD style="font-size:10pt">&nbsp;</TD>
</TR>


<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">R. Roger Berrier (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap>July 28, 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">360,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">687,600</TD>
    <TD>&nbsp;</TD>
</TR>
<tr>
<TD style="font-size:10pt">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas H. Caudle, Jr. (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap>July 28, 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">210,100</TD>
    <TD>&nbsp;</TD>
</TR>
<tr>
<TD style="font-size:10pt">&nbsp;</TD>
</TR>


<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Charles F. McCoy (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap>July 28, 2009</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">210,100</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">The options granted had a vesting schedule such that 1/3 of the options will vest on July&nbsp;28,
2010, 1/3 vest on July&nbsp;28, 2011, and the remaining 1/3 vest on July&nbsp;28, 2012.</DIV></TD>
</TR>

</TABLE>



<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>OPTIONS EXERCISED AND STOCK VESTED</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During fiscal 2010 there were no exercises of stock options or vesting of stock awards issued
to the NEOs of the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>NON-QUALIFIED DEFERRED COMPENSATION</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table provides information with respect to the Company&#146;s non-tax qualified
compensation deferral plans for each of the Company&#146;s NEOs. For a description of the material
terms of the Company&#146;s Supplemental Key Employee Retirement Plan, see &#147;Compensation Discussion &#038;
Analysis &#151; Elements of Compensation &#151; Long Term Incentive Compensation&#148;.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000"><I>Non-Qualified Deferred Compensation for Fiscal Year 2010</I></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Executive</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Registrant</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Aggregate</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Aggregate</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Aggregate</I></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Contributions</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Contributions</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Earnings (Loss)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Withdrawals</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Balance at</I></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>in Last</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>in Last</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>in Last</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>and/or</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Last Fiscal</I></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Fiscal Year</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Fiscal Year</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Fiscal Year</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Distributions</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Year End</I></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><I>Name</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)</I></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><I>(a)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(b)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(c)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(d)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(e)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(f)</I></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>William L. Jasper</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,997</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">192,411</TD>
    <TD>&nbsp;</TD>
</TR>
<tr>
<TD style="font-size:10pt">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Ronald L. Smith</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,688</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,433</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">102,692</TD>
    <TD>&nbsp;</TD>
</TR><tr>
<TD style="font-size:10pt">&nbsp;</TD>
</TR>


<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Thomas H. Caudle, Jr.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,441</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">141,365</TD>
    <TD>&nbsp;</TD>
</TR>
<tr>
<TD style="font-size:10pt">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Charles F. McCoy</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130,246</TD>
    <TD>&nbsp;</TD>
</TR>
<tr>
<TD style="font-size:10pt">&nbsp;</TD>
</TR>


<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>R. Roger Berrier, Jr.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,408</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130,605</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->21<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>COMPENSATION POLICIES AND PRACTICES AS THEY RELATE TO RISK MANAGEMENT</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As previously discussed, the Company&#146;s compensation policies and practices for its employees
are designed to attract and retain highly qualified and engaged employees, and to minimize risks
that would have a material adverse effect on the Company. In addition the Company&#146;s compensation
policies and practices seek to align the interests of management with those of the Company&#146;s
Shareholders. The Company believes its incentive compensation programs are appropriately balanced
between value created indirectly by the performance of the Company&#146;s stock and payments resulting
from the achievement of specific financial performance objectives. The Compensation Committee
considers risks arising from the Company&#146;s employee compensation policies and practices and has
concluded that any risks from such policies and practices are not reasonably likely to have a
material adverse effect on the Company. Overall, the Compensation Committee reached this
conclusion after considering a number of features of the Company&#146;s compensation structure that are
designed to mitigate risk, such as:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">The Company uses a balance of fixed and variable compensation in the form of cash
and equity, which is designed to provide both short and long-term focus.</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">The overall compensation of our NEOs is not overly-weighted towards the achievement
of performance criteria in a particular fiscal year and an appropriate portion of
compensation is awarded in the form of equity awards that vest over a multi-year
period, subject to continued service by the recipient. This further aligns the
interests of the NEOs to long-term shareholder value and helps retain management.</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Payouts under the Company&#146;s annual incentive compensation and other long-term
incentive programs are based on performance criteria that the Compensation Committee
believes to be challenging yet reasonable and attainable without excessive risk-taking.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE IN CONTROL</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Accrued and Vested Benefits</I></B>. Each of the NEOs has accrued various benefits under the
Company&#146;s compensation programs and retirement and other broad-based employee benefit plans. Many
of these benefits and awards are fully vested and each of the NEOs would receive all of his vested
benefits and awards in the event that his employment with the Company ends for any reason. On
August&nbsp;14, 2009, the Company entered into Change of Control Agreements with each of the NEOs.
Under these Agreements, the NEOs will receive additional benefits as described below in the event
of termination of employment without cause or resignation for good reason following a change of
control. Additionally, under the Unifi, Inc. 1999 Long-Term Incentive Plan and 2008 Plan, upon a
change of control all options and stock awards will become fully exercisable.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below summarizes the accrued and vested benefits that each of the NEOs would be
entitled to, assuming he left the Company on June&nbsp;27, 2010, including pursuant to death,
disability, retirement or termination.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Accrued and Vested Benefits </B>(1)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><I>William L.</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><I>Ronald L.</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><I>Thomas H.</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><I>Charles F.</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><I>R. Roger.</I></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><I>Jasper</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><I>Smith</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><I>Caudle, Jr.</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><I>McCoy</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><I>Berrier, Jr.</I></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Vested Deferred Compensation Balance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">192,411</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">102,692</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">141,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">130,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">130,605</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Vested Stock Options <SUP style="FONT-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">119,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">224,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">199,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">167,450</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">327,861</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">222,192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">366,015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">329,696</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">298,055</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Stock options are
exercisable for three (3)&nbsp;months after termination other than
for cause and are exercisable for one (1) year in the event of
retirement, death or disability.
For purposes of this table, it is assumed that all vested stock options are exercised on the
last business day before June&nbsp;27, 2010, and the value of such vested stock options is
calculated by multiplying the number of options by the difference between the exercise price
and the closing market price.</DIV></TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt"><!-- Folio -->22<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Termination Following a Change in Control</I></B><I>. </I>The table below summarizes the incremental
benefits (beyond the accrued and vested benefits) that each of the NEOs would be entitled to,
assuming their termination without cause or resignation for good reason occurred on June&nbsp;27, 2010
following a change in control.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Termination Without Cause or Resignation For Good Reason Following a Change in Control</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><I>William L.</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><I>Ronald L.</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><I>Thomas H.</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><I>Charles F.</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><I>R. Roger.</I></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><I>Jasper</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><I>Smith</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><I>Caudle, Jr.</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><I>McCoy</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><I>Berrier, Jr.</I></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Severance Benefit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,682,788</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">989,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,170,920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,058,540</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,127,474</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Health and Welfare Benefits <SUP style="FONT-size: 85%; vertical-align: text-top">(1)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,695</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,655</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,439</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,941</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accelerated Stock Options <SUP style="FONT-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,604,950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">789,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">521,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">496,550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,317,050</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,340,433</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,813,045</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,735,973</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,578,529</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,475,465</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">This represents the aggregate estimated net cost to the Company of health and welfare
benefits provided to each NEO under the terms of the Change in Control Agreements.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Upon a Change in Control all previously unvested stock options will become vested. For
purposes of this table, it is assumed that all such options are exercised on the last business
day before June&nbsp;27, 2010, and the value of such options is calculated by multiplying the
number of options by the difference between the exercise price and the closing market price.</DIV></TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->23<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<!-- link1 "BENEFICIAL OWNERSHIP OF COMMON STOCK BY DIRECTORS AND EXECUTIVE OFFICERS" -->
<DIV align="left"><A NAME="009"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>BENEFICIAL OWNERSHIP OF COMMON STOCK<BR>
BY DIRECTORS AND EXECUTIVE OFFICERS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table presents information regarding the beneficial ownership of the Common
Stock, within the meaning of applicable securities regulations, of all current directors of the
Company and each of the NEOs in the Summary Compensation Table included herein, and of all current
directors and executive officers of the Company as a group, as of September&nbsp;1, 2010.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Amount</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>and Nature of</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Percentage</I></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><I>Name</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>Beneficial Ownership(1)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>of Class</I></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">William J. Armfield, IV(2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">937,515</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.56</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">R. Roger Berrier, Jr.(3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">623,994</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.03</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thomas H. Caudle, Jr.(4)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">341,587</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#176;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Archibald Cox, Jr.(5)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">431,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#176;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">William L. Jasper(6)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">730,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.20</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kenneth G. Langone(7)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,290,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">3.80</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chiu Cheng Anthony Loo</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#176;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Charles F. McCoy(8)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">324,671</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#176;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">George R. Perkins, Jr.(9)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,018,644</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.69</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">William M. Sams(10)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,701,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.47</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael Sileck (11)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,667</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#176;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ronald L. Smith(12)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">340,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#176;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">G. Alfred Webster(13)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">120,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#176;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stephen Wener (14)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,473,948</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">9.10</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">All directors and executive officers as a group (14 persons)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,384,693</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">30.55</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">&#176;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Represents less than one percent (1%) of the Common Stock.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">All shares are owned directly and with sole voting and investment power, except as otherwise
noted. The information presented in this table was based upon Company information,
information furnished to the Company by the named persons and information contained in filings
with the SEC.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Includes 10,000 shares that Mr.&nbsp;Armfield would have the right to purchase pursuant to stock
options that could become exercisable within 60&nbsp;days of September&nbsp;1, 2010, provided that the
closing price of the Company&#146;s Common Stock as listed on the NYSE shall be at least $8.00 per
share for 30 consecutive days, and 10,000 shares that Mr.&nbsp;Armfield would have the right to
purchase pursuant to stock options that could become exercisable within 60&nbsp;days of September
1, 2010, provided that the closing price of the Company&#146;s Common Stock as listed on the NYSE
shall be at least $10.00 per share for 30 consecutive days, as to which he would have sole
voting and investment power upon acquisition.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Includes 300,000 shares that Mr.&nbsp;Berrier has the right to purchase pursuant to stock options
that are currently exercisable or become exercisable within 60&nbsp;days of September&nbsp;1, 2010, and
300,000 shares that Mr.&nbsp;Berrier would have the right to purchase pursuant to stock options
that could become exercisable within 60&nbsp;days of September&nbsp;1, 2010, provided that the closing
price of the Company&#146;s Common Stock as listed on the NYSE shall be at least $6.00 per share
for 30 consecutive days, as to which he would have sole voting and investment power upon
acquisition, and 23,994 shares that Mr.&nbsp;Berrier owns jointly with his wife, and together they
share voting and investment power.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(4)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Includes 286,667 shares that Mr.&nbsp;Caudle has the right to purchase pursuant to stock options
that are currently exercisable or become exercisable within 60&nbsp;days of September&nbsp;1, 2010, and
50,000 shares that Mr.&nbsp;Caudle would have the right to purchase pursuant to stock options that
could become exercisable within 60&nbsp;days of September&nbsp;1, 2010, provided that the closing price
of the Company&#146;s Common Stock as</DIV></TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->24<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">listed on the NYSE shall be at least $6.00 per share for 30 consecutive days, as to which he
would have sole voting and investment power upon acquisition.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(5)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Includes 6,667 shares that Mr.&nbsp;Cox has the right to purchase under currently exercisable
stock options, as to which he would have sole voting and investment power upon acquisition.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(6)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Includes 315,000 shares that Mr.&nbsp;Jasper has the right to purchase pursuant to stock options
that are currently exercisable or become exercisable within 60&nbsp;days of September&nbsp;1, 2010, and
400,000 shares that Mr.&nbsp;Jasper would have the right to purchase pursuant to stock options that
could become exercisable within 60&nbsp;days of September&nbsp;1, 2010, provided that the closing price
of the Company&#146;s Common Stock as listed on the NYSE shall be at least $6.00 per share for 30
consecutive days, as to which he would have sole voting and investment power upon acquisition.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(7)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Includes 270,000 shares owned by Invemed Associates, LLC, in which Mr.&nbsp;Langone owns an 81%
interest, and of which Mr.&nbsp;Langone has shared voting and investment power, and 10,000 shares
that Mr.&nbsp;Langone would have the right to purchase pursuant to stock options that could become
exercisable within 60&nbsp;days of September&nbsp;1, 2010, provided that the closing price of the
Company&#146;s Common Stock as listed on the NYSE shall be at least $8.00 per share for 30
consecutive days, and 10,000 shares that Mr.&nbsp;Langone would have the right to purchase pursuant
to stock options that could become exercisable within 60&nbsp;days of September&nbsp;1, 2010, provided
that the closing price of the Company&#146;s Common Stock as listed on the NYSE shall be at least
$10.00 per share for 30 consecutive days, as to which he would have sole voting and investment
power upon acquisition.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(8)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Includes 266,667 shares that Mr.&nbsp;McCoy has the right to purchase pursuant to stock options
that are currently exercisable or become exercisable within 60&nbsp;days of September&nbsp;1, 2010, and
50,000 shares that Mr.&nbsp;McCoy would have the right to purchase pursuant to stock options that
could become exercisable within 60&nbsp;days of September&nbsp;1, 2010, provided that the closing price
of the Company&#146;s Common Stock as listed on the NYSE shall be at least $6.00 per share for 30
consecutive days, as to which he would have sole voting and investment power upon acquisition,
and 1,100 shares jointly owned with his wife as to which he has shared voting and investment
power.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(9)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Includes 10,000 shares that Mr.&nbsp;Perkins would have the right to purchase pursuant to stock
options that could become exercisable within 60&nbsp;days of September&nbsp;1, 2010, provided that the
closing price of the Company&#146;s Common Stock as listed on the NYSE shall be at least $8.00 per
share for 30 consecutive days, and 10,000 shares that Mr.&nbsp;Perkins would have the right to
purchase pursuant to stock options that could become exercisable within 60&nbsp;days of September
1, 2010, provided that the closing price of the Company&#146;s Common Stock as listed on the NYSE
shall be at least $10.00 per share for 30 consecutive days, as to which he would have sole
voting and investment power upon acquisition.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(10)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Includes 1,181,000 shares owned by Marlin Sams Fund L.P., of which Mr.&nbsp;Sams is deemed to be
the beneficial owner, but as to which he specifically disclaims ownership, and 10,000 shares
that Mr.&nbsp;Sams would have the right to purchase pursuant to stock options that could become
exercisable within 60&nbsp;days of September&nbsp;1, 2010, provided that the closing price of the
Company&#146;s Common Stock as listed on the NYSE shall be at least $8.00 per share for 30
consecutive days, and 10,000 shares that Mr.&nbsp;Sams would have the right to purchase pursuant to
stock options that could become exercisable within 60&nbsp;days of September&nbsp;1, 2010, provided that
the closing price of the Company&#146;s Common Stock as listed on the NYSE shall be at least $10.00
per share for 30 consecutive days, as to which he would have sole voting and investment power
upon acquisition.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(11)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Includes 6,667 shares that Mr.&nbsp;Sileck has the right to purchase under currently exercisable
stock options, as to which he would have sole voting and investment power upon acquisition.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(12)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Includes 190,000 shares that Mr.&nbsp;Smith has the right to purchase pursuant to stock options
that are currently exercisable or become exercisable within 60&nbsp;days of September&nbsp;1, 2010, and
150,000 shares that Mr.&nbsp;Smith would have the right to purchase pursuant to stock options that
could become exercisable within 60&nbsp;days of September&nbsp;1, 2010, provided that the closing price
of the Company&#146;s Common Stock as listed on the NYSE</DIV></TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->25<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">shall be at least $6.00 per share for 30 consecutive days, as to which he would have sole
voting and investment power upon acquisition.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(13)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Includes 10,000 shares that Mr.&nbsp;Webster would have the right to purchase pursuant to stock
options that could become exercisable within 60&nbsp;days of September&nbsp;1, 2010, provided that the
closing price of the Company&#146;s Common Stock as listed on the NYSE shall be at least $8.00 per
share for 30 consecutive days, 10,000 shares that Mr.&nbsp;Webster would have the right to purchase
pursuant to stock options that could become exercisable within 60&nbsp;days of September&nbsp;1, 2010,
provided that the closing price of the Company&#146;s Common Stock as listed on the NYSE shall be
at least $10.00 per share for 30 consecutive days, as to which he would have sole voting and
investment power upon acquisition and 100,000 shares which Mr.&nbsp;Webster owns jointly with his
wife, and together they share voting and investment power.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(14)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Includes 5,191,298 shares owned by Dillon, in which Mr.&nbsp;Wener owns 15 1/2% and his wife owns
2%, as to which Mr.&nbsp;Wener has shared voting and investment power, and 10,000 shares that Mr.
Wener would have the right to purchase pursuant to stock options that could become exercisable
within 60&nbsp;days of September&nbsp;1, 2010, provided that the closing price of the Company&#146;s Common
Stock as listed on the NYSE shall be at least $8.00 per share for 30 consecutive days, and
10,000 shares that Mr.&nbsp;Wener would have the right to purchase pursuant to stock options that
could become exercisable within 60&nbsp;days of September&nbsp;1, 2010, provided that the closing price
of the Company&#146;s Common Stock as listed on the NYSE shall be at least $10.00 per share for 30
consecutive days, as to which he would have sole voting and investment power upon acquisition.</DIV></TD>
</TR>

</TABLE>


<!-- link1 "DIRECTORS&#146; COMPENSATION" -->
<DIV align="left"><A NAME="010"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DIRECTORS&#146; COMPENSATION</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table shows compensation information for the Company&#146;s directors for fiscal
2010.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="29" style="border-bottom: 1px solid #000000"><I>Director Compensation Table</I></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Change in</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Pension</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Value and</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Fees</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Non-Qualified</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Earned or</I></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Non-Equity</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Deferred</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>All</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Paid in</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Stock</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Option</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Incentive Plan</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Compensation</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Other</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Cash</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Awards</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Awards</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Compensation</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Earnings</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Compensation</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Total</I></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><I>Name</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)(1)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>($)</I></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><I>(a)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(b)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(c)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(d)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(e)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(f)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(g)</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>(h)</I></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">William J. Armfield, IV</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">R. Roger Berrier, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Archibald Cox, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,038</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,038</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">William L. Jasper</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kenneth G. Langone</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chiu Cheng Anthony Loo</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">George R. Perkins, Jr.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">William M. Sams</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Michael Sileck</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,038</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,038</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">G. Alfred Webster</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">100,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stephen Wener</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Amounts reflect the
aggregate grant date fair value, computed in accordance with FASB ASC Topic 718, related to
options granted in fiscal 2010. See Note&nbsp;5 to the consolidated
financial statements included in the Company&#146;s 2010 Annual
Report on Form&nbsp;10-K for more information about the value of
stock option awards. With respect to
Mr.&nbsp;Berrier and Mr.&nbsp;Jasper please see &#147;Outstanding Equity
Awards&#148; for a list of equity awards outstanding at June&nbsp;27,
2010. Messrs.&nbsp;Armfield, Cox, Langone, Perkins, Sams, Sileck,
Webster and Wener each had options to purchase 20,000 shares of
common stock at June&nbsp;27, 2010 and Mr.&nbsp;Loo did not have any
options at such date.</DIV></TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->26<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Previously, the Board approved the suspension of director retainer and meeting fees for all
directors, other than Mr.&nbsp;Loo for fiscal 2008, and this suspension remained in effect for fiscal
2010. During fiscal 2008, the Board also approved an annual director&#146;s fee of $100,000 for Mr.
Webster for his service as Chairman of the Executive Committee. During fiscal 2010, only Mr.&nbsp;Loo
and Mr.&nbsp;Webster received compensation pursuant to their service on the Board. The suspension of the
director retainer and meeting fees shall be effective until such time as the Board determines to
reinstate such fees.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In prior fiscal years, each director, who was not an employee of the Company, was paid an
annual retainer of $24,000 and an additional $1,000 for each Board meeting attended and for each
meeting of Board committees on which they serve when such meeting was held on a day other than a
day scheduled for a regular Board meeting. Each such director was also reimbursed for reasonable
expenses incurred in attending those meetings. The Chairman of each of the Company&#146;s Audit
Committee, Compensation Committee and Corporate Governance and Nominating Committee was also paid
$15,000, in addition to their regular directors fees, for serving in that capacity on those
committees. Directors who are employees of the Company were paid an attendance fee of $1,000 for
each Board meeting attended. Directors who attended Board or committee meetings via telephone
conferencing received attendance fees as if they were physically present at such Board or committee
meetings.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The compensation for outside directors is periodically reviewed for adjustment by the
Compensation Committee.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->27<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "COMMITTEES OF THE BOARD OF DIRECTORS" -->
<DIV align="left"><A NAME="011"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>COMMITTEES OF THE BOARD OF DIRECTORS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board has four standing committees: the <B><I>Compensation Committee</I></B>, the <B><I>Audit Committee</I></B>, the
<B><I>Corporate Governance and Nominating Committee </I></B>(the &#147;<B><I>Governance Committee</I></B>&#148;) and the <B><I>Executive
Committee</I></B>. The <B><I>Compensation Committee </I></B>met two (2)&nbsp;times during the last fiscal year. The <B><I>Audit
Committee </I></B>met seven (7)&nbsp;times during the last fiscal year. The <B><I>Governance Committee </I></B>met one (1)
time during the last fiscal year. The <B><I>Executive Committee </I></B>met nine (9)&nbsp;times during the last
fiscal year.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The <B><I>Compensation Committee </I></B>operates under a written charter, adopted in April&nbsp;2003 and amended
in July&nbsp;2004. The Compensation Committee discharges the Board&#146;s responsibilities relating to
compensation of the Company&#146;s executive officers. At least annually, the Compensation Committee
reviews and approves corporate goals and objectives relevant to the compensation of each executive
officer of the Company (including the CEO), evaluates each executive officer&#146;s performance in light
of these goals and objectives, and sets each executive officer&#146;s compensation level based on this
evaluation. The Compensation Committee annually determines whether the CEO and other executive
officers will participate in any annual or long-term incentive plans established for the Company&#146;s
executive officers or employees. The Compensation Committee also advises senior management with
respect to the range of compensation to be paid to other employees of the Company and administers
and grants stock options to the Company&#146;s officers, employees and consultants pursuant to the
Company&#146;s equity-based plans, including the 2008 Plan. Each member of the Compensation Committee
is an independent director, in accordance with the independence requirements of the NYSE Corporate
Governance Standards. The current members of the Compensation Committee are Messrs.&nbsp;Sams (Chair),
Armfield, Loo and Perkins.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The <B><I>Audit Committee </I></B>operates under a written charter, adopted in April&nbsp;2000 and most recently
amended in July&nbsp;2004. The Audit Committee was established in accordance with Section&nbsp;3(a)(58)A of
the Exchange Act. The Audit Committee discharges the Board&#146;s responsibility relating to the
oversight of: (i)&nbsp;the integrity of the financial statements of the Company, (ii)&nbsp;the compliance by
the Company with legal and regulatory requirements, (iii)&nbsp;the independent auditor&#146;s independence
and qualifications, and (iv)&nbsp;the performance of the Company&#146;s internal audit function and
independent auditors. The Audit Committee, among other things, is responsible for the appointment,
compensation, retention, and oversight of the Company&#146;s independent auditors and reviews the
financial statements, audit reports, internal controls and internal audit procedures. Each member
of the Audit Committee is an independent director, in accordance with the independence requirements
of the Exchange Act and the NYSE Corporate Governance Standards. The current members of the Audit
Committee are Messrs.&nbsp;Armfield (Chair), Sams, Sileck and Webster.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The <B><I>Governance Committee </I></B>operates under a written charter, adopted in April&nbsp;2003 and most
recently amended in August&nbsp;2007. The Governance Committee is responsible for, among other things,
identifying candidates to serve as directors of the Company consistent with criteria approved by
the Board, and for making recommendations to the Board of qualified nominees for election or
re-election as directors of the Company. It is also responsible for recommending to the Board, for
the Board&#146;s approval, all committee members and chairpersons. The Governance Committee is
responsible for establishing a system for, and monitoring the process of, performance reviews of
the Board, its committees and key management personnel. The Governance Committee reviews the
Corporate Governance Issues and Policies Guidelines (the &#147;Corporate Governance Guidelines&#148;) from
time to time and recommends to the Board any changes to the Corporate Governance Guidelines. The
Governance Committee also monitors compliance with the Company&#146;s Ethical Business Conduct Policy
Statement (the &#147;Policy Statement&#148;), reviews the Policy Statement from time to time and provides
recommendations to the Board for any changes to the Policy Statement. The Governance Committee
also administers the Company&#146;s Related Person Transactions Approval Policy (the &#147;Related Person
Transactions Policy&#148;) and may from time to time recommend to the Board any changes to the Related
Person Transactions Policy. Each member of the Governance Committee is an independent director, in
accordance with the independence requirements of the NYSE Corporate Governance Standards. The
current members of the Governance Committee are Messrs.&nbsp;Langone (Chair), Armfield, Loo, Sams and
Webster.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The <B><I>Executive Committee </I></B>operates under a written charter adopted in September&nbsp;2007. The
Executive Committee may exercise all of the authority of the Board of Directors in the management
of the Company, subject to limitations under New York law. The current members of the Executive
Committee are Messrs.&nbsp;Webster (Chair), Berrier, Jasper and Wener.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->28<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "SHAREHOLDER RECOMMENDATIONS FOR DIRECTOR NOMINEES" -->
<DIV align="left"><A NAME="012"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SHAREHOLDER RECOMMENDATIONS FOR DIRECTOR NOMINEES</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Governance Committee will consider those recommendations by Shareholders of director
nominees which are submitted in writing with biographical and business experience information to
the Secretary of the Company, in the manner described in the section entitled &#147;Shareholder
Proposals&#148; contained in this Proxy Statement. All nominees for director must demonstrate
integrity, accountability, informed judgment, financial literacy, passion, creativity and vision.
In addition, the Board is comprised of directors from various backgrounds and professions in order
to maximize perspective and ensure a wealth of experiences to inform its decisions. The objective
of the Governance Committee is to structure a Board that brings to the Company a variety of skills
and perspectives developed through high-quality business and professional experience. The
Governance Committee believes that men and women of different ages, races and ethnic backgrounds
can contribute different, useful perspectives, and can work effectively together to further the
Company&#146;s mission.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Governance Committee reviews the background and qualifications of each nominee to
determine his or her experience, competence and character, and assesses such nominee&#146;s potential
contribution to the Board. Other than the foregoing, there are no stated minimum criteria for
director nominees. The Governance Committee may, however, consider such other factors as it deems
are in the best interests of the Company and the Shareholders. Shareholder nominees will be
analyzed by the Governance Committee in the same manner as nominees that are otherwise considered
by the Governance Committee.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Governance Committee identifies nominees by first evaluating the current members of the
Board willing to continue to serve. Current members of the Board with skills and experience that
are relevant to the Company&#146;s business and who are willing to continue in service are considered
for re-nomination, balancing the value of continuity of service by existing members of the Board
with that of obtaining new perspectives. If any member of the Board does not wish to continue in
service, or if the Governance Committee decides not to nominate a member for re-election, unless
the Board determines not to fill a vacancy, the Governance Committee will identify a new nominee
with the desired skills and experience as outlined above. To date, the Governance Committee has
not engaged a third party to identify or evaluate or assist in identifying potential nominees,
although it reserves the right to do so in the future if necessary.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Corporate Governance and Nominating Committee Charter, the Governance
Committee periodically reviews the criteria for the selection of Board members to insure that the
criteria, including diversity, are being addressed appropriately. The Governance Committee conducts
an annual assessment of its performance and of the Charter in general in accordance with the
Corporate Governance and Nominating Committee Charter and recommends changes to the Board when
necessary.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All nominees for election to the Board have been recommended by the Governance Committee. All
such nominees are current directors standing for re-election.
</DIV>
<!-- link1 "ATTENDANCE OF DIRECTORS" -->
<DIV align="left"><A NAME="013"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ATTENDANCE OF DIRECTORS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board met four (4)&nbsp;times during fiscal 2010. All directors attended at least seventy-five
percent (75%) of the aggregate number of meetings of the Board and meetings held by all committees
of the Board on which they serve during the period in which they served as a director or a
committee member.
</DIV>
<!-- link1 "CORPORATE GOVERNANCE MATTERS" -->
<DIV align="left"><A NAME="014"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CORPORATE GOVERNANCE MATTERS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Director Independence</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For a director to be considered independent under the NYSE Corporate Governance Standards, the
Board must affirmatively determine that the director has no direct or indirect &#147;material
relationship&#148; with the Company, other than as a director. As permitted by the NYSE Corporate
Governance Standards, the Board has adopted its Director Independence Standards to assist it in
making its independence determinations. These standards are attached to this Proxy Statement as
Appendix&nbsp;B and are also available on the Company&#146;s web site referenced below as Exhibit&nbsp;A to the
Corporate Governance Guidelines.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->29<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After considering the Director Independence Standards, the NYSE Corporate Governance
Standards, and all other relevant facts and circumstances, including the existence of any
commercial or charitable relationships between the directors and the Company and the transactions
described in the section entitled &#147;Transactions with Related Persons, Promoters and Certain Control
Persons&#148; below, the Board has determined that all of its current members, other than Messrs.&nbsp;Wener,
Berrier and Jasper, meet the Company&#146;s categorical standards, meet the independence requirements of
the NYSE and are independent.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Corporate Governance Guidelines and Committee Charters</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In furtherance of its longstanding goal of providing effective governance of the Company&#146;s
business for the benefit of Shareholders, the Board has adopted the Corporate Governance
Guidelines. Each of the Audit Committee, the Compensation Committee and the Governance Committee
operate under written charters that have been adopted by the Board. The Corporate Governance
Guidelines and the committee charters are available on the Company&#146;s web site at <I>www.unifi.com</I>
under the &#147;Investor Relations&#148; section. In addition, print copies of the Corporate Governance
Guidelines and the committee charters are available to any Shareholder that requests a copy.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Audit Committee Financial Expert</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board has determined that at least one member of the Audit Committee, William J. Armfield,
IV, is an audit committee financial expert. Mr.&nbsp;Armfield is &#147;independent&#148; as that term is defined
in the NYSE Corporate Governance Standards.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Executive Sessions of Non-Management Directors</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-management Board members meet without management present at regularly scheduled executive
sessions. The group of non-management directors currently includes directors that are not
independent. To the extent, however, that there are non-management directors who are not
independent, then at least once a year there will be scheduled an executive session including only
independent directors. During fiscal 2010, Mr.&nbsp;Sams, as the Company&#146;s independent Lead Director,
presided over meetings of the independent and non-management directors.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Code of Business Conduct and Ethics; Ethical Business Conduct Policy Statement</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has adopted a written Code of Business Conduct and Ethics applicable to members of
the Board and executive officers, including the CEO and CFO (the &#147;Code of Business Conduct and
Ethics&#148;). The Company has also adopted the Policy Statement that applies to all employees. The
Code of Business Conduct and Ethics and the Policy Statement are available on the Company&#146;s web
site referenced above, under the &#147;Investor Relations&#148; section and printed copies of each are
available to any Shareholder that requests a copy. Any amendments to or waiver of the Code of
Business Conduct and Ethics will be disclosed on the Company&#146;s web site promptly following the date
of such amendment or waiver.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Shareholder and Interested Party Communications</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders and other interested parties may communicate directly with the entire Board, any
committee of the Board, the Chair of any Board committee, any individual director, the independent
Lead Director, the independent or non-management directors, as a group, or any other group of
directors by writing to: Unifi, Inc. Board of Directors, c/o Corporate Compliance Officer, 7201
West Friendly Avenue, Greensboro, North Carolina 27410. Any correspondence sent in this manner and
directed to the Lead Director, any particular director, or any particular committee or group will
be forwarded accordingly. If no specific addressee is provided, the communication will be
forwarded to the Chairman of the Board. Reference is also made to Article&nbsp;IX of the Corporate
Governance Guidelines.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->30<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Director Attendance at Annual Meetings</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the 2009 Annual Meeting of Shareholders, all eleven members of our Board at that time were
in attendance. The Company believes that the Annual Meeting is an opportunity for Shareholders to
communicate directly with our directors. Directors are encouraged to attend the Annual Meeting of
Shareholders.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Board Leadership Structure</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently, the positions of Chairman of the Board and Chief Executive Officer of the Company
are held by separate individuals, with Mr.&nbsp;Jasper serving as CEO and Mr.&nbsp;Wener serving as Chairman
of the Board. The Board believes that at the current time this structure is best for the Company,
as it allows Mr.&nbsp;Jasper to focus on the Company&#146;s strategy, business and operations, while enabling
Mr.&nbsp;Wener to assist with Board matters and serve as a liaison between the Board and the Company&#146;s
management.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Role in Risk Oversight</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As the Company&#146;s principal governing body, the Board has the ultimate responsibility for
overseeing the Company&#146;s risk management practices. Certain risk management functions have been
delegated to committees of the Board of Directors.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Audit Committee Charter, one of the primary roles and responsibilities of the
Audit Committee is the supervision of the integrity of the financial statements of the Company, the
compliance by the Company with legal and regulatory requirements, and the oversight of the
performance of the Company&#146;s internal audit function and outside auditors. Under the Audit
Committee Charter, the Audit Committee will, among other responsibilities and duties:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Review with the outside auditor and management, as appropriate, significant
financial reporting issues and judgments identified by management or the outside
auditor and made in connection with the preparation of the Company&#146;s financial
statements;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Review with the outside auditor and management, major issues identified by
management or the outside auditor regarding the Company&#146;s accounting and auditing
principles and practices, including critical accounting policies, and major changes in
auditing and accounting principles and practices suggested by the outside auditor,
internal auditor or management; and</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">In consultation with the management and the outside auditors, consider the integrity
of the Company&#146;s financial reporting processes and controls and consult concerning the
Company&#146;s internal controls, including any significant deficiencies and significant
changes in internal controls.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Company performs an Enterprise Risk Management (&#147;ERM&#148;) risk assessment that
is presented to and approved by the Audit Committee. On a quarterly basis, the ERM Steering
Committee meets to review the Company&#146;s &#147;Critical Risks&#148; to make sure there have been no changes in
any Critical Risk that would require immediate action by the Company. The ERM Steering Committee
also reviews &#147;Emerging Risks&#148; to determine if there are any such risks that could affect the
Company and take appropriate actions should an Emerging Risk be identified. The Company&#146;s Chief
Risk Officer prepares quarterly reports to the Executive Committee, which is the Board Committee
with primary oversight responsibility for the Company&#146;s ERM system, and gives the Executive
Committee a quarterly update on the Company&#146;s ERM actions. The Executive Committee then updates
the Board.
</DIV>
<!-- link1 "COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION IN COMPENSATION DECISIONS" -->
<DIV align="left"><A NAME="015"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>COMPENSATION COMMITTEE INTERLOCKS AND<BR>
INSIDER PARTICIPATION IN COMPENSATION DECISIONS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None of the individuals that served as a member of the Compensation Committee during fiscal
2010 were at any time officers or employees of the Company or any of its subsidiaries or had any
relationship with the Company requiring disclosure under SEC regulations.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "TRANSACTIONS WITH RELATED PERSONS, PROMOTERS AND CERTAIN CONTROL PERSONS" -->
<DIV align="left"><A NAME="016"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TRANSACTIONS WITH RELATED PERSONS, PROMOTERS AND<BR>
CERTAIN CONTROL PERSONS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Policies and Procedures with Respect to Related Party Transactions</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board is committed to upholding the highest legal and ethical conduct in fulfilling its
responsibilities and recognizes that related party transactions can present a heightened risk of
potential or actual conflicts of interest. Accordingly, as a general matter, it is the Board&#146;s
preference to avoid related party transactions.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Code of Business Conduct and Ethics, all executive officers and directors are
required to discuss with the Company&#146;s General Counsel any transaction or relationship which does
or may conflict with the interests of the Company, prior to the entry into of such transaction.
Pursuant to the Related Person Transactions Policy the Company&#146;s General Counsel must submit any
potential or actual conflict of interest involving an officer, director or related person to the
Governance Committee for review and approval. Under this policy, the Governance Committee will
determine an appropriate resolution on a case-by-case basis, including approval, ratification,
amendment, termination or rescission of the transaction. All directors must excuse themselves from
any discussion or decision affecting their personal, business or professional interests.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All related party transactions shall be disclosed in the Company&#146;s applicable filings with the
SEC, as required under SEC rules.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Transactions with Dillon Yarn Corporation and Mr.&nbsp;Wener</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In fiscal year 2007, the Company purchased the polyester and nylon texturing operations of
Dillon (the &#147;Transaction&#148;). In connection with the Transaction the Company and Dillon entered into
a Sales and Services Agreement for a term of two years from January&nbsp;1, 2007, pursuant to which the
Company agreed to pay Dillon an aggregate amount of $6.0&nbsp;million in exchange for certain sales and
transitional services to be provided by Dillon&#146;s sales staff and executive management. On December
1, 2008, the Company and Dillon entered into an amendment to the Sales and Services Agreement which
extended the term of the Agreement for a one (1)&nbsp;year term, which expired on December&nbsp;31, 2009, and
revised the amount to be paid by the Company to $425,000 quarterly, during the term. On December
11, 2009, the Company and Dillon entered into a second amendment to the Sales and Services
Agreement which extended the term of the Agreement for a one (1)&nbsp;year term, which will expire on
December&nbsp;31, 2010, and revised the amount to be paid by the Company to $325,000 quarterly, during
the term. Pursuant to the Sales and Services Agreement, the Company paid Dillon $1.5&nbsp;million for
fiscal 2010. In addition, during fiscal 2010, the Company recorded sales to and commission income
from Dillon in the aggregate amount of $71,000, has purchased products from Dillon in an aggregate
amount of $3.2&nbsp;million and paid to Dillon, for certain employee and other expense reimbursements,
an aggregate amount of $0.2&nbsp;million. Mr.&nbsp;Wener, a director of the Company, is the President and
Chief Executive Officer of Dillon, and Mr.&nbsp;Wener owns a 15 1/2% and his wife owns a 2% equity
interest in Dillon. The terms of the Sales and Services Agreement with Dillon are, in management&#146;s
opinion, no less favorable than the Company would have been able to negotiate with an independent
third party for similar services.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Wener is an Executive Vice President of American Drawtech Company, Inc. (&#147;ADC&#148;) and
beneficially owns a 12.5% equity interest in ADC. During fiscal 2010, the Company recorded sales
to and commission income from ADC in the aggregate amount of $2.0&nbsp;million and paid expenses to ADC
of $53 thousand. The sales terms, in management&#146;s opinion, are comparable to terms that the Company
would have been able to negotiate with an independent third party.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Transactions with Salem Holding Company</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Langone, a director of the Company, owns a 33 1/3% equity interest in, is a director and
is the Chairman of the Board of Salem Holding Company. In fiscal 2010, the Company paid Salem
Leasing Corporation, a wholly owned subsidiary of Salem Holding Company, $3.0&nbsp;million in connection
with leases of tractors and trailers, and for related services. The terms of the Company&#146;s leases
with Salem Leasing Corporation are, in management&#146;s opinion, no less favorable than the Company
would have been able to negotiate with an independent third party for similar equipment and
services.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->32<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Transactions with Invemed Catalyst Fund</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November&nbsp;25, 2009, the Company entered into a stock purchase agreement with Invemed
Catalyst Fund L.P. (the &#147;Fund&#148;). Pursuant to the stock purchase agreement, the Company agreed to
purchase 1,885,000 shares of its Common Stock from the Fund for an aggregate purchase price of $5.0
million. The Company and the Fund negotiated the per share purchase price of $2.65 per share based
on an approximately 10% discount to the closing price of the Company&#146;s Common Stock on November&nbsp;24,
2009. Mr.&nbsp;Langone is the principal stockholder and CEO of Invemed Securities, Inc., which is a
managing member of Invemed Catalyst Gen Par, LLC, the general partner of the Fund. Mr.&nbsp;William M.
Sams, a director of the Company, is a limited partner of the Fund. Neither Mr.&nbsp;Langone nor Mr.
Sams was involved in any decisions by the Board or any committee thereof with respect to this stock
purchase transaction.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For a discussion of agreements with the Company&#146;s NEOs see &#147;Compensation Discussion &#038; Analysis
&#151; Elements of Compensation &#151; Perquisites and Other Benefits&#151; Change of Control Agreements.&#148;
</DIV>
<!-- link1 "AUDIT COMMITTEE REPORT" -->
<DIV align="left"><A NAME="017"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AUDIT COMMITTEE REPORT</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s Audit Committee consists of four independent Directors and operates under a
written charter adopted by the Board and most recently amended in July&nbsp;2004. The current members
of the Audit Committee are William J. Armfield, IV (Chair), William M. Sams, Michael Sileck and G.
Alfred Webster.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s management is responsible for the Company&#146;s financial statements and reporting
process and for establishing and maintaining an adequate system of internal control over financial
reporting. Ernst &#038; Young LLP (&#147;E&#038;Y&#148;), the Company&#146;s independent registered public accounting firm,
is responsible for auditing the Company&#146;s consolidated financial statements, and for assessing the
effectiveness of the Company&#146;s internal control over financial reporting. The Audit Committee
monitors and oversees these processes and is directly responsible for the appointment,
compensation, retention and oversight of the Company&#146;s independent registered public accounting
firm.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To fulfill its responsibilities, the Audit Committee has:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">reviewed and discussed with the Company&#146;s management and the independent registered
public accounting firm the Company&#146;s audited consolidated financial statements for the
fiscal year ended June&nbsp;27, 2010 and Management&#146;s Report on Internal Control over
Financial Reporting for the fiscal year ended June&nbsp;27, 2010;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">reviewed management&#146;s representations to the Audit Committee that those audited
consolidated financial statements were prepared in accordance with generally accepted
accounting principles;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">discussed with the independent registered public accounting firm the matters
required to be discussed by Statement on Auditing Standards 61, as amended (AICPA,
Professional Standards, Vol. 1. AU section 380), as adopted by the Public Company
Accounting Oversight Board in Rule&nbsp;3200T; and</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">received the written disclosures and the letter from the independent registered
public accounting firm required by the Public Company Accounting Oversight Board
regarding the independent accountant&#146;s communications with the Audit Committee
concerning independence, and has discussed with E&#038;Y their independence from the
Company.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on its review and discussions with management and the independent registered public
accounting firm, the representations of management and the report of the independent registered
public accounting firm, the Audit Committee recommended to the Board that the Company&#146;s audited
consolidated financial statements for fiscal 2010 be included in the Company&#146;s Annual Report on
Form 10-K for the fiscal year ended June&nbsp;27, 2010 for filing with the SEC.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Submitted by the Audit Committee of the Board:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">William J. Armfield, IV, Chairman<BR>
William M. Sams<BR>
Michael Sileck<BR>
G. Alfred Webster
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->33<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<!-- link1 "INFORMATION RELATING TO THE COMPANY&#146;S INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM" -->
<DIV align="left"><A NAME="018"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INFORMATION RELATING TO THE COMPANY&#146;S<BR>
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to its authority, the Company&#146;s Audit Committee will select the Company&#146;s independent
registered public accounting firm for the current fiscal year at a meeting subsequent to the Annual
Meeting. E&#038;Y was selected as the Company&#146;s independent registered public accounting firm for the
fiscal year ended June&nbsp;27, 2010. E&#038;Y has been the Company&#146;s independent auditors since 1990.
Representatives of E&#038;Y will attend the Annual Meeting. They will have the opportunity to make a
statement if they so desire and to answer appropriate questions from Shareholders.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Fees Paid to Independent Registered Public Accounting Firm</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fees paid to E&#038;Y for services rendered to the Company for the fiscal years indicated below
were as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><I>Fiscal Years Ended</I></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>June 27,</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>June 28,</I></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>2010</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><I>2009</I></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Audit Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">826,960</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">833,051</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Audit-Related Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tax Fees(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">140,184</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9,288</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">All Other Fees(2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">27,434</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Consists of aggregate fees paid for tax compliance, consultation and related tax matters.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Consists of transaction
advisor services in connection with strategic planning process.</DIV></TD>
</TR>

</TABLE>



<DIV align="justify" style="font-size: 10pt; margin-top: 12pt"><B>Policy on Audit Committee Pre-Approval of the Audit and Permissible Non-Audit Services by the
Company&#146;s Independent Registered Public Accounting Firm</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee has adopted a policy governing the provision of all audit and non-audit
services by the Company&#146;s independent registered public accounting firm. Pursuant to this policy,
the Audit Committee will annually consider and approve, if appropriate, the provision of audit
services (including audit review and attest services) and of certain specific defined permitted
non-audit services (&#147;pre-approved services&#148;) by its independent registered public accounting firm.
It will also consider on a case-by-case basis and, if appropriate, approve specific engagements
that do not fit within the definition of pre-approved services.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The policy provides that any proposed engagement that does not fit within the definition of a
pre-approved service must be presented to the Audit Committee for consideration (a)&nbsp;at a regular
meeting, (b)&nbsp;at a special meeting called to consider the proposed engagement or by a unanimous
written consent of the Audit Committee or (c)&nbsp;by the Chairperson of the Audit Committee, or another
member of the Audit Committee. If permissible non-audit services are pre-approved by the
Chairperson or another member of the Committee, that decision is required to be presented at the
next meeting of the Audit Committee. The Audit Committee will regularly review summary reports
detailing all services (and related fees and expenses) being provided to the Company by the
independent registered public accounting firm.
</DIV>
<!-- link1 "SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE" -->
<DIV align="left"><A NAME="019"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SECTION 16(A) BENEFICIAL OWNERSHIP<BR>
REPORTING COMPLIANCE</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;16(a) of the Exchange Act requires the Company&#146;s directors and executive officers, and
any person who owns more than ten percent of the Company&#146;s stock, to file with the SEC initial
reports of beneficial ownership and reports of changes in beneficial ownership of the Common Stock.
Such persons are required by the SEC&#146;s regulations to furnish the Company with copies of all
Section 16(a) reports they filed.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->34<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the Company&#146;s knowledge, based solely on its review of the copies of such reports furnished
to the Company and written representations that no other reports were required, all such Section
16(a) filings were timely made during the fiscal year ended June&nbsp;27, 2010.
</DIV>
<!-- link1 "SHAREHOLDER PROPOSALS" -->
<DIV align="left"><A NAME="020"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SHAREHOLDER PROPOSALS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The deadline for submission of Shareholder proposals pursuant to Rule&nbsp;14a-8 under the Exchange
Act for inclusion in the Company&#146;s Proxy Statement for its 2011 Annual Meeting of Shareholders is
May&nbsp;17, 2011. Any Shareholder proposal to be submitted at the 2011 Annual Meeting of Shareholders
(but not required to be included in the Company&#146;s Proxy Statement), must be received by July&nbsp;31,
2011, or such proposal will be considered untimely pursuant to Rules&nbsp;14a-4 and 14a-5 under the
Exchange Act and the persons named in the proxies solicited by us may exercise discretionary voting
authority with respect to such proposal. Proposals which Shareholders intend to present at the
Company&#146;s 2011 Annual Meeting of Shareholders or wish to have included in the Company&#146;s proxy
materials should be sent registered, certified or express mail to Charles F. McCoy, Vice President,
Secretary, General Counsel and Chief Risk Officer of the Company, at 7201 West Friendly Avenue,
Greensboro, North Carolina, 27410.
</DIV>
<!-- link1 "HOUSEHOLDING OF ANNUAL MEETING MATERIALS" -->
<DIV align="left"><A NAME="021"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>HOUSEHOLDING OF ANNUAL MEETING MATERIALS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SEC has adopted rules permitting registrants to send a single set of the annual report and
proxy statement to any household at which two or more shareholders reside if the registrant
believes they are members of the same family. This procedure, referred to as &#147;householding,&#148;
reduces the volume of duplicate information Shareholders receive and reduces the expense to the
registrant. The Company has not implemented these householding rules with respect to its record
holders; however, a number of brokerage firms have instituted householding which may impact certain
beneficial owners of the Common Stock. If your family has multiple accounts by which you hold the
Common Stock, you may have received a householding notification from your broker. Please contact
your broker directly if you have any questions or wish to revoke your decision to household.
</DIV>
<!-- link1 "ANNUAL REPORT" -->
<DIV align="left"><A NAME="022"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ANNUAL REPORT</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company filed its Annual Report on Form 10-K for the fiscal year ended June&nbsp;27, 2010 with
the SEC on September &#091; <B>&#149;</B> &#093;, 2010. The Company makes available through its web site its annual
reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments
to those reports filed or furnished pursuant to Section 13(a) of the Exchange Act as soon as
reasonably practicable after the Company electronically files such material with, or furnish it to,
the SEC. Shareholders may also obtain a copy of these reports, without charge, upon request to the
Company&#146;s Vice President, Secretary, General Counsel and Chief Risk Officer, Charles McCoy, at 7201
West Friendly Avenue, Greensboro, North Carolina, 27410.
</DIV>
<!-- link1 "OTHER MATTERS" -->
<DIV align="left"><A NAME="023"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>OTHER MATTERS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board does not intend to present any items of business other than those stated in the
Notice of Annual Meeting of Shareholders. If other matters are properly brought before the
meeting, the persons named in the accompanying proxy will vote the shares represented by it in
accordance with their best judgment. Discretionary authority to vote on other matters is included
in the proxy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 50%">BY ORDER OF THE BOARD OF DIRECTORS

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%"><IMG src="g24562pg2456202.gif" alt="-s- Charles F. Mccoy"><BR>
Charles F. McCoy<BR>
<I>Vice President, Secretary, General Counsel<BR>
and Chief Risk Officer</I>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Greensboro, North Carolina<BR>
September &#091; <B>&#149;</B> &#093;, 2010

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->35<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 "APPENDIX A &#151; PROPOSED AMENDMENT TO THE RESTATED CERTIFICATE OF INCORPORATION OF UNIFI, INC."-->
<DIV align="left"><A NAME="024"></A></DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><U><B>APPENDIX A</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Proposed Amendment to the<BR>
Restated Certificate of Incorporation of Unifi, Inc.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Reverse Stock Split Proposal
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The reverse stock split proposal provides that the Restated Certificate of Incorporation of
Unifi, Inc. will be amended by adding the following new paragraph at the end of Article&nbsp;Fourth:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Upon the filing of this Certificate of Amendment with the Department of State of the State of
New York (the &#147;Effective Time&#148;), each three (3)&nbsp;shares of the Corporation&#146;s Common Stock issued and
outstanding immediately prior to the Effective Time shall automatically be reclassified and
combined into one (1)&nbsp;validly issued, fully paid and non-assessable share of Common Stock, without
any further action by the Corporation or the holder thereof, subject to the treatment of fractional
share interests as described below (the &#147;Reverse Stock Split&#148;). No fractional shares will be issued
in connection with the Reverse Stock Split and in lieu of issuing fractional shares, each holder of
Common Stock who would otherwise have been entitled to a fraction of a share by reason of the
Reverse Stock Split will be entitled to receive a cash payment, without interest, determined by
multiplying (i)&nbsp;the fractional share interest to which the holder would otherwise be entitled,
after taking into account all shares of Common Stock then held by the holder, and (ii)&nbsp;the closing
price of the Common Stock as reported on the New York Stock Exchange on the trading day immediately
prior to the Effective Time, as adjusted for the split ratio.&#148;
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->A-1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 "APPENDIX B &#151; DIRECTOR INDEPENDENCE STANDARDS" -->
<DIV align="left"><A NAME="025"></A></DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><U><B>APPENDIX B</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DIRECTOR INDEPENDENCE STANDARDS</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A majority of Board of Directors of Unifi, Inc. (the &#147;Company&#148;) shall be independent. No
director shall qualify as &#147;independent&#148; unless the Board of Directors affirmatively determines that
the director has no material relationship with the Company (either directly or as a partner,
shareholder or officer of an organization that has a relationship with the Company). In making such
determination, the Board of Directors shall consider the factors identified below, as well as such
other factors that the Board of Directors may deem relevant. A director will not be deemed
independent if:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">the director is employed by the Company or any of its affiliates (as used
herein, such term shall have the meaning set forth in Rule&nbsp;144(a)(1) promulgated under
the Securities Act of 1933, as amended) or was employed by the Company or any of its
affiliates at any time during the preceding year, provided that as of November&nbsp;4, 2004
(the &#147;Effective Date&#148;), the lookback period shall be three years;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">the director is a member of the immediate family of an individual who is, or
has been, employed by the Company or any of its affiliates as an executive officer at
any time during the preceding year, provided that as of the Effective Date the lookback
period shall be three years;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">the director (a)&nbsp;presently receives, or his or her immediate family member
receives, more than $100,000 per year in direct compensation from the Company, other
than director and committee fees and pension or other forms of deferred compensation
for prior service (provided such compensation is not contingent in any way on continued
service), or (b)&nbsp;the director or the director&#146;s immediate family member had received
such compensation within the preceding year, provided that as of the Effective Date the
lookback period shall be three years &#091;Note: Compensation received by an immediate
family member for service as a non-executive employee of the Company need not be
considered in determining independence under this test.&#093;;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">the director (a)&nbsp;is presently affiliated with or employed by, or his or her
immediately family member is affiliated with or employed in a professional capacity by,
a present or former internal or external auditor of the Company, or (b)&nbsp;the director or
the director&#146;s immediate family member had been affiliated with or employed by such
internal or external auditor of the Company within the preceding year, provided that as
of the Effective Date the lookback period shall be three years;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">the director (a)&nbsp;is presently an executive officer or an employee, or his or
her immediate family member is an executive officer, of another company that makes
payments to, or receives payments from, the Company for property or services in an
amount which, in any single fiscal year, exceeds $1&nbsp;million or 2&nbsp;percent of such other
company&#146;s consolidated gross revenues for its last fiscal year, whichever is greater,
or (b)&nbsp;the Company and the company of which director is an executive officer or
employee or his or her immediate family member is an executive officer had such
relationship within the preceding year, provided that as of the Effective Date the
lookback period shall be three years;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">the director is affiliated with, or his or her immediate family member is
affiliated with, a paid advisor or consultant to the Company;</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">the director has, or his or her immediate family member has, a personal
services contract with the Company;</DIV></TD>
</TR>





</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->B-1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">the director or his or her immediate family member is employed and compensated
by a foundation, university or other nonprofit institution that has received
significant charitable contributions from the Company that are disclosed or will be
required to be disclosed in the Company&#146;s proxy statement; and</DIV></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">the director (a)&nbsp;is presently employed, or his or her immediate family member
is presently employed, as an executive officer of another company where any of the
Company&#146;s present executive officers serves on that company&#146;s compensation committee,
or (b)&nbsp;such director or his or her immediate family member was employed in such
capacity within the preceding year, provided that as of the Effective Date the lookback
period shall be three years.</DIV></TD>
</TR>

</TABLE>
</DIV>
<DIV align="justify" style="font-size: 10pt; margin-top: 6pt">In addition to being independent as determined by the Board of Directors in accordance with the
factors set forth above, (a)&nbsp;members of the Audit Committee may not (i)&nbsp;receive, directly or
indirectly, any compensation other than directors&#146; fees from the Company, or (ii)&nbsp;be an &#147;affiliated
person&#148; of the Company or any of its subsidiaries as such term is defined under Rule&nbsp;10A-3
promulgated pursuant to the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;), and
(b)&nbsp;members of the Compensation Committee must qualify as &#147;outside directors&#148; as such term is
defined under Section 162(m) of the Internal Revenue Code of 1986, as amended, and as &#147;non-employee
directors&#148; as such term is defined under Rule&nbsp;16b-3 promulgated under the Exchange Act.
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->B-2<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">

<P><DIV style="position: relative; float: left; width: 45%; MARGIN-LEFT: 2%">




<DIV align="justify" style="font-size: 9pt; margin-top: 11pt; margin-left: 2%"><B><I>UNIFI, INC.</I></B><br><B><I>
7201 WEST FRIENDLY AVENUE<br>
GREENSBORO, NC 27410</I></B><br>
</DIV>
</DIV>

<DIV style="position: relative; float: right; width: 45%; margin-right: 4%">
<DIV align="justify" style="font-size: 7pt; margin-top: 6pt"><B>VOTE
BY INTERNET - <u>www.proxyvote.com</u></B><br>
Use the Internet to transmit your voting instructions
and for electronic delivery of information up until
11:59&nbsp;P.M. Eastern Daylight Saving Time the day
before the cut-off date or meeting date. Have your
proxy card in hand when you access the web site and
follow the instructions to obtain your records and to
create an electronic voting instruction form.
</DIV>

<DIV align="justify" style="font-size: 7pt; margin-top: 6pt"><B>ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS</B><br>
If you would like to reduce the costs incurred by our
Company in mailing proxy materials, you can consent
to receiving all future proxy statements, proxy cards
and annual reports electronically via e-mail or the
Internet. To sign up for electronic delivery, please
follow the instructions above to vote using the
Internet and, when prompted, indicate that you agree
to receive or access proxy materials electronically
in future years.
</DIV>

<DIV align="justify" style="font-size: 7pt; margin-top: 6pt"><B>VOTE
BY PHONE - 1-800-690-6903</B><br>
Use any touch-tone telephone to transmit your voting
instructions up until 11:59&nbsp;P.M. Eastern Daylight
Saving Time the day before the cut-off date or
meeting date. Have your proxy card in hand when you
call and then follow the instructions.</DIV>

<DIV align="justify" style="font-size: 7pt; margin-top: 6pt"><B>VOTE BY MAIL</B><br>
Mark, sign and date your proxy card and return it in
the postage-paid envelope we have provided or return
it to Vote Processing, c/o Broadridge, 51 Mercedes
Way, Edgewood, NY 11717.</div>
</DIV>
<BR clear="all"><BR>



<DIV align="justify" style="font-size: 7pt; margin-top: 30pt">&nbsp;</div>



<DIV align=center>
<TABLE style="font-size: 7pt" cellspacing="0" border="0" cellpadding="0" width="98%">
<!-- Begin Table Head -->

  <TR style="FONT-SIZE: 80pt" vAlign=bottom>
    <TD width="58%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD></TR><!-- End Table Head --><!-- Begin Table Body -->
  <TR vAlign=bottom>
    <TD vAlign=top>
      <DIV style="TEXT-INDENT: 0px; MARGIN-LEFT: 0px">TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:<BR>&nbsp; </DIV></TD>
    <TD>&nbsp;</TD>
    <TD valign="bottom" align="center" nowrap>M27057-P01641</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=bottom noWrap align=right>KEEP THIS PORTION FOR YOUR RECORDS</TD></TR>
  <TR vAlign=bottom>
    <TD colspan="3" align="right" style="BORDER-TOP: #000000 1px dashed">
<DIV style="FONT-SIZE: 3pt" align=center>&nbsp;</div><B><FONT style="font-size: 9pt">THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.</FONT></B><DIV style="FONT-SIZE: 5pt" align=center>&nbsp;</div></TD>


    <TD style="BORDER-TOP: #000000 1px dashed">&nbsp;</TD>

    <TD style="BORDER-TOP: #000000 1px dashed" vAlign=top noWrap align=right>

DETACH AND RETURN THIS PORTION ONLY</TD></TR><!-- End Table Body --></TABLE></DIV>






<DIV style="width: 98%; border: 2px solid black; padding: 3px; padding-right: 10px; padding-left: 3px;">

<DIV align=center>
<TABLE style="FONT-SIZE: 8pt" cellSpacing=0 cellPadding=0 width="100%" border="0"><!-- Begin Table Head -->

  <TR style="FONT-SIZE: 1pt" vAlign=bottom>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD></TR><!-- End Table Head --><!-- Begin Table Body -->
  <TR vAlign=bottom>
    <TD vAlign=top align=left colSpan=4><B>UNIFI, INC.</B></TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align="center"><B>For<BR>All</B></TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align="center"><B>Withhold<BR>All</B></TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align="center"><B>For All<BR>Except</B></TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap rowSpan=3>
      <DIV style="font-size: 7pt; margin-top: -0pt">To withhold authority to vote for any individual<BR>nominee(s), mark
     &#147;For All Except&#148; and write the<BR>number(s) of the nominee(s) on the line
      below.<BR><BR><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></DIV></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left colSpan=3><B>The Board of Directors recommends
      that you vote FOR the following: <BR>Vote on Directors</B></TD>
    <TD>&nbsp;</TD>
    <TD valign="middle" align="center"><FONT face=wingdings>o</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="middle" align="center"><FONT face=wingdings>o</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="middle" align="center"><FONT face=wingdings>o</FONT></TD>
    <TD>&nbsp;</TD>
    <TD style="BORDER-RIGHT: black 2pt solid; BORDER-TOP: black 2pt solid"
    vAlign=top align=right>&nbsp;</TD></TR>
  <TR style="FONT-SIZE: 2pt">
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD vAlign=top>
      <DIV align=justify>&nbsp;</DIV></TD>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp; </TD>
    <TD style="BORDER-RIGHT: black 0pt solid; BORDER-TOP: black 0pt solid"
    vAlign=top align=right>&nbsp; </TD></TR>
  <TR style="FONT-SIZE: 8pt" vAlign=bottom><!-- Blank Space -->
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left colspan="4"><div align="justify"><b>PROPOSAL NO. 1 &#151; </B>To elect the nine (9)
Directors listed below to serve until the
next Annual Meeting of Shareholders or
until their respective successors are duly
elected and qualified:</div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="BORDER-RIGHT: black 0pt solid; BORDER-TOP: black 0pt solid"
    vAlign=top align=right>&nbsp;</TD></TR>
<tr>
<TD style="font-size:3pt">&nbsp;</TD>
</TR>


  <TR style="FONT-SIZE: 8pt" vAlign=bottom><!-- Blank Space -->
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left><B>Nominees:</B></TD>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="BORDER-RIGHT: black 0pt solid; BORDER-TOP: black 0pt solid"
    vAlign=top align=right>&nbsp;</TD></TR>
<tr>
<TD style="font-size:3pt">&nbsp;</TD>
</TR>


  <TR style="FONT-SIZE: 8pt" vAlign=bottom><!-- Blank Space -->
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD vAlign=top noWrap align=left>01)&nbsp;&nbsp;William J. Armfield, IV<BR>02)&nbsp;&nbsp;R. Roger Berrier, Jr.      <BR>03)&nbsp;&nbsp;Archibald Cox, Jr.<BR>04)&nbsp;&nbsp;William L. Jasper<BR>05)&nbsp;&nbsp;Kenneth G. Langone</TD>
    <TD vAlign=top align=left nowrap>06)&nbsp;&nbsp;George R. Perkins, Jr.      <BR>07)&nbsp;&nbsp;William M. Sams<BR>08)&nbsp;&nbsp;G. Alfred Webster<BR>09)&nbsp;&nbsp;Stephen Wener<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=bottom align=left>
      <DIV
    style="FONT-SIZE: 1pt; BORDER-BOTTOM: #000000 0px solid">&nbsp;</DIV></TD></TR><!-- End Table Body --></TABLE></DIV>

<div style="margin-left: 2%">
<DIV style="MARGIN-TOP: 0pt; FONT-SIZE: 8pt; MARGIN-LEFT: 4%; MARGIN-RIGHT: 2%" align=justify>&nbsp;</DIV>
<DIV align=center>
<TABLE style="FONT-SIZE: 8pt" cellSpacing=0 cellPadding=0 width="100%" border=0><!-- Begin Table Head -->

  <TR style="FONT-SIZE: 1pt" vAlign=bottom>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD></TR>
  <TR style="FONT-SIZE: 8pt" vAlign=bottom>
    <TD>&nbsp;</TD>
    <TD noWrap colSpan=2><B>Reverse Stock Split</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD noWrap align="center"><B>For</B></TD>
    <TD>&nbsp;</TD>
    <TD noWrap align="center"><B>Against</B></TD>
    <TD>&nbsp;</TD>
    <TD noWrap align="center"><B>Abstain</B></TD></TR>
  <TR style="FONT-SIZE: 8pt" vAlign=bottom>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD noWrap align=left colSpan=5><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR><!-- End Table Head --><!-- Begin Table Body -->
  <TR vAlign=bottom>
    <TD vAlign=top>
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"></DIV></TD>
    <TD vAlign=top  colSpan="6"><DIV align=justify><B>PROPOSAL NO. 2 &#151; </B>To approve an amendment
to Unifi, Inc.&#146;s Restated Certificate of Incorporation to
effect a reverse stock split<BR> of the company&#146;s common stock at a reverse stock split ratio of
1-for-3.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align="center"><FONT face=Wingdings>o</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align="center"><FONT face=Wingdings>o</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align="center"><FONT face=Wingdings>o</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top>
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top>
      <DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px"></DIV></TD>
    <TD vAlign=top colSpan=6>In their discretion, the proxies are authorized to
vote upon such other business as may properly
come before the Annual Meeting <BR>
of Shareholders.</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR><!-- End Table Body --></TABLE></DIV>
<DIV style="MARGIN-TOP: 0pt; FONT-SIZE: 8pt; MARGIN-LEFT: 4%; MARGIN-RIGHT: 2%"
align=center></DIV>
<DIV style="MARGIN-TOP: 0pt; FONT-SIZE: 18pt; MARGIN-LEFT: 4%; MARGIN-RIGHT: 2%"
align=center>&nbsp;</DIV>
<DIV align=center>
<TABLE style="FONT-SIZE: 8pt" cellSpacing=0 cellPadding=0 width="100%" border="0"><!-- Begin Table Head -->

  <TR vAlign=bottom>
    <TD width="1%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD>&nbsp;</TD>
    <TD colSpan=8>
      <DIV align=justify><B>NOTE:</B> Signature should agree with name on stock certificate as printed
hereon. Executors, administrators, trustees and other fiduciaries should so
indicate when signing. If the signer is a corporation, please sign in full corporate
name, by duly authorized officer.<BR>&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR><!-- End Table Head --><!-- Begin Table Body -->
  <TR style="FONT-SIZE: 12pt" vAlign=bottom>
    <TD>&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid"
    vAlign=top align=left colSpan=2>&nbsp; </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 0px solid; BORDER-BOTTOM: #000000 2px solid"
    vAlign=top align=left>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 1px solid; BORDER-BOTTOM: #000000 2px solid"
    vAlign=top align=left colSpan=2>&nbsp; </TD>
    <TD
    style="BORDER-RIGHT: #000000 1px solid; BORDER-TOP: #000000 1px solid; BORDER-LEFT: #000000 0px solid; BORDER-BOTTOM: #000000 2px solid"
    vAlign=top align=left>&nbsp; </TD>
    <TD vAlign=top align=left>&nbsp; </TD>
    <TD vAlign=top noWrap align=right>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD>&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: #000000 0px solid; BORDER-TOP: #000000 0px solid; BORDER-LEFT: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid"
    vAlign=top noWrap align=left colSpan=2>Signature [PLEASE SIGN WITHIN BOX]
    </TD>
    <TD
    style="BORDER-RIGHT: #000000 0px solid; BORDER-TOP: #000000 0px solid; BORDER-LEFT: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid"
    vAlign=top noWrap align=left>&nbsp;&nbsp;Date </TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: #000000 0px solid; BORDER-TOP: #000000 0px solid; BORDER-LEFT: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid"
    vAlign=top align=left colSpan=2>Signature (Joint Owners) </TD>
    <TD
    style="BORDER-RIGHT: #000000 0px solid; BORDER-TOP: #000000 0px solid; BORDER-LEFT: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid"
    vAlign=top align=left>Date</TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top align=left>&nbsp;</TD></TR><!-- End Table Body --></TABLE></DIV></DIV>

</div>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>


<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="center" style="font-size: 10pt; margin-top: 130pt"><B>Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:</B><BR>
The Notice and Proxy Statement and Annual Report are available at www.proxyvote.com.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 180pt"><DIV style="width: 100%; border-bottom: 1px dashed #000000; FONT-size: 1px">&nbsp;</DIV>
</DIV>

<DIV align="center">
<TABLE style="font-size: 9pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
    <TD width="5%"></TD>
    <TD width="30%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" valign="top"><FONT style="font-family: Wingdings">&#233;</FONT> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FOLD AND DETACH HERE &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT style="font-family: Wingdings">&#233;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><FONT style="font-size:7pt">M27058-P01641</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 3pt"></DIV>
<DIV style="width: 100%; border: 2px solid black; padding: 11px;">



<DIV align="center" style="font-size: 13pt; margin-top: 18pt"><B>UNIFI, INC.</B>
</DIV>


<DIV align="Center" style="font-size: 11pt; margin-top: 6pt"><B>ANNUAL MEETING, OCTOBER 27, 2010</B>
</DIV>

<DIV align="Center" style="font-size: 11pt; margin-top: 6pt"><B>PLEASE COMPLETE, DATE, SIGN AND DETACH THE PROXY CARD AS INSTRUCTED AND</B>
</DIV>

<DIV align="Center" style="font-size: 11pt; margin-top: 6pt"><B>RETURN IT IN THE ENCLOSED BUSINESS REPLY ENVELOPE TO:</B>
</DIV>

<DIV align="Center" style="font-size: 11pt; margin-top: 6pt"><B>UNIFI, INC.</B>
</DIV>

<DIV align="Center" style="font-size: 11pt; margin-top: 6pt"><B>C/O BROADRIDGE, 51 MERCEDES WAY, EDGEWOOD, NY 11717</B>
</DIV>

<DIV align="justify" style="font-size: 9pt; margin-top: 11pt">The undersigned hereby appoints Charles F. McCoy, with full power of substitution, as attorney
and proxy to represent and vote all shares of Unifi, Inc.&#146;s Common Stock which the undersigned is
entitled to vote at the Annual Meeting of the Shareholders to be held at the Company&#146;s corporate
headquarters at 7201 West Friendly Avenue, in Greensboro, North Carolina, on Wednesday, October&nbsp;27,
2010, at 9:00 AM Eastern Daylight Saving Time, and any adjournment or adjournments thereof as
indicated on the reverse side:
</DIV>

<DIV align="justify" style="font-size: 9pt; margin-top: 11pt">The undersigned hereby authorizes the proxy, in his discretion, to vote on any other business which
may properly be brought before the meeting or any adjournment thereof to the extent authorized by
Rule&nbsp;14a-4(c) promulgated by the Securities and Exchange Commission.
</DIV>

<DIV align="justify" style="font-size: 9pt; margin-top: 11pt"><B>THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS AND WILL BE VOTED FOR EACH OF THE BOARD</B>


<B>OF DIRECTORS&#146; NOMINEES FOR DIRECTOR SPECIFIED IN PROPOSAL NO. 1 AND FOR THE AMENDMENT TO UNIFI,
INC.&#146;S RESTATED CERTIFICATE OF INCORPORATION TO EFFECT THE REVERSE STOCK SPLIT AS SPECIFIED IN
PROPOSAL NO. 2, UNLESS A CONTRARY CHOICE IS SPECIFIED, IN WHICH CASE THE PROXY WILL BE VOTED AS
SPECIFIED.</B>
</DIV>

<DIV align="justify" style="font-size: 9pt; margin-top: 11pt">The undersigned hereby acknowledges receipt of the Notice of Annual Meeting of Shareholders, dated
September&nbsp;16, 2010, and the Proxy Statement furnished therewith.<br><br>&nbsp;
</DIV>
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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