Document:

Exhibit

EXHIBIT 10.6.4

FOURTH AMENDMENT TO YARN SUPPLY AGREEMENT

This Fourth Amendment to Yarn Supply Agreement (the “Fourth Amendment”) is made as of the 11th day of December 2015, by and between Parkdale Mills, Incorporated, a North Carolina corporation, and Parkdale America, LLC, a North Carolina limited liability company (collectively, “Parkdale”), and Delta Apparel, Inc., a Georgia corporation (“Delta”).

WHEREAS, Parkdale and Delta entered into that certain Yarn Supply Agreement dated as of January 5, 2005, with respect to the supply of yarn by Parkdale to Delta (the “Yarn Supply Agreement”); and

WHEREAS, Parkdale and Delta entered into that First Amendment to Yarn Supply Agreement dated as of June 26, 2009 (the "First Amendment"), which amended the Yarn Supply Agreement in certain respects; and

WHEREAS, Parkdale and Delta entered into that Second Amendment to Yarn Supply Agreement dated as of October 21, 2011 (the "Second Amendment"), which further amended the Yarn Supply Agreement in certain respects; and

WHEREAS, Parkdale and Delta entered into that Third Amendment to Yarn Supply Agreement dated as of March 11, 2013 (the "Third Amendment"), which further amended the Yarn Supply Agreement in certain respects (the Yarn Supply Agreement, First Amendment, Second Amendment and Third Amendment are collectively referred to herein as the "Agreement"); and

WHEREAS, Parkdale and Delta desire to further amend the Agreement as set forth in this Fourth Amendment;

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1.    Capitalized terms not otherwise defined in this Fourth Amendment shall have the meanings ascribed thereto in the Agreement;

2.     The Term of the Agreement is hereby extended until December 31, 2018.

3.      Section 4(f) of the Agreement is hereby amended and replaced in its entirety by the following:

1

    (f)  Location of Manufacturing Operations. Parkdale agrees that upon written request from Delta, any particular Yarn product delivered hereunder shall be (i) manufactured at locations that it operates within the United States, or at such other location(s) as Delta may separately specify in writing and/or (ii) manufactured from 100% United States cotton and, as applicable, other materials manufactured exclusively within the United States from components originating within the United States.

4.    The following language is hereby added to the end of Section 7 of the Agreement:

Parkdale represents and warrants that  with respect to any type or category of Yarn and/or Yarn Count(s) hereunder of which Delta and/or its Subsidiaries has purchased at least 1,000,000 pounds from Parkdale in any twelve (12)-month period during the term of the Agreement, Parkdale shall immediately provide to Delta a conversion price based on Parkdale’s lowest conversion price methodology for the production and delivery of comparable quality yarn provided on a contractual, ongoing or other routine basis to any of Parkdale’s customers; provided that, in determining whether Delta is receiving the lowest conversion price methodology, Parkdale may take into account the terms, conditions and volume of yarn supplied to Delta and Parkdale’s other customers.  

5.    Section 11(d) of the Agreement is hereby amended and replaced in its entirety by the following:

(d)    If any event described in Section 11(a) partially reduces, restricts or delays Parkdale’s ability to produce or deliver Yarn, then Parkdale shall use its commercially reasonable efforts to commit sufficient production resources to ensure that Delta receives a consistent supply of Yarns in the quantities that Delta requests, in accordance with the terms of this Agreement.   If any event described in Section 11(a) partially reduces, restricts or delays Parkdale’s ability to produce or deliver Yarn, Delta and its Subsidiaries shall be entitled to purchase Yarn from alternative sources of supply and, if such inability to produce or deliver Yarn persists in excess of sixty (60) days, Delta shall have the option to terminate this Agreement by written notice to Parkdale.

6.  Section 12(b) of the Agreement is hereby amended and replaced in its entirety by the following:

(b)    Delta may terminate this Agreement forthwith upon notice to Parkdale if either Anderson D. Warlick or Charles S. Heilig III is no longer actively involved in the operation of Parkdale.

2

7.    The address for notices to be provided to Delta pursuant to Section 18 of the Agreement is hereby amended and replaced as follows:

To Delta:

Delta Apparel, Inc.
322 South Main Street
Greenville, SC 29601
Attention: Robert W. Humphreys, CEO
Facsimile: (864) 232-5199
Telephone: (864) 232-5200

8.    Effective as of January 1, 2016, Exhibit 3B of the Agreement is hereby amended and replaced in its entirety by Exhibit 3B attached to this Fourth Amendment. 

9.    Exhibit C of the Agreement is hereby amended and replaced to revise the "Individuals Responsible for Fixation Orders/Execution" on behalf of Delta referenced therein as follows: 

Robert W. Humphreys
Deborah H. Merrill

10.    Except as expressly set forth in this Fourth Amendment, all terms and conditions of the Agreement shall remain in full force and effect. In the event of any conflict between the terms and conditions of this Fourth Amendment and any of the terms and conditions of the Agreement, the terms and conditions of this Fourth Amendment shall control.     

11.    This Fourth Amendment shall be governed and controlled as to validity, enforcement, interpretation, construction, and effect, and in all other respects, by the laws of the State of North Carolina, without regard to principles of conflict of law. 

12.    This Fourth Amendment may be executed in multiple counterparts, each of which shall be deemed to be an original, and all such counterparts shall constitute but one instrument.

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IN WITNESS WHEREOF, the parties have caused this Fourth Amendment to be duly executed by their respective duly authorized officers as of the day and year first above written.

PARKDALE MILLS, INC.                PARKDALE AMERICA, LLC

By: /s/ Anderson D. Warlick           By: /s/ Anderson D. Warlick       
Name: Anderson D. Warlick    Name: Anderson D. Warlick
Title: Chief Executive Officer    Title: Chief Executive Officer

DELTA APPAREL, INC.

By: /s/ Deborah H. Merrill
Name: Deborah H. Merrill
Title: Vice President, Chief Financial Officer & Treasurer

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Exhibit 3B
Effective January 1, 2016
Purchase Price of Yarn:

The purchase price for each pound of Yarn delivered shall be calculated in accordance with the following formula: Purchase Price = [(A + B) ÷ C] + D

Where:       A =     Cost Price 
B =     Basis, as agreed upon by the parties from time to time
C =     1.00 - applicable waste factor set forth in the table below (in decimal  format)    
D =     Applicable conversion price set forth in the table below

Waste Factors and Conversion Prices
	
					
	Yarn
	Cotton Waste
	Poly Waste
	Conversion
$ Per Pound

	 
	 
	 
	 

	0800  CPRS  100% cotton
	*
	 
	*

	1600  CPRS  100% cotton
	*
	 
	*

	1800  CPRS  100% cotton
	*
	 
	*

	1800  KPRS 100%  cotton
	*
	 
	*

	2000  CPRS 100%  cotton
	*
	 
	*

	2000  KPRS  100% cotton
	*
	 
	*

	2000  KPRS  94% cotton / 6% organic cotton
	*
	 
	*

	2200  CPRS  100% cotton
	*
	 
	*

	2200  CPRS  94% cotton / 6% organic cotton
	*
	 
	*

	3000  CPRS  100% cotton
	*
	 
	*

	3000  KPRS  100% cotton
	*
	 
	*

	3600  CPRS  100% cotton
	*
	 
	*

	 
	 
	 
	 

	1800  KPRS  50% cotton / 50% polyester
	*
	*
	*

	1800  CPRS  50% cotton / 50% polyester
	*
	*
	*

	1800  KPRS  90% cotton / 10% black polyester
	*
	*
	*

	2000  CPRS  50% cotton / 50% polyester
	*
	*
	*

	2000  KPRS  90% cotton / 10% black polyester
	*
	*
	*

	2000  KPRS  84% cotton / 6% organic cotton / 10%    black polyester
	*
	*
	*

	2200  CPRS  50% cotton / 50% polyester
	*
	*
	*

	2200  CPRS  75% cotton / 5% organic cotton / 20%    black polyester
	*
	*
	*

	2200  CPRS  80% cotton / 20% black polyester
	*
	*
	*

5

	
					
	2400  CPRS  50% cotton / 50% polyester
	*
	*
	*

	2400  CPRS  80% cotton / 20% black polyester
	*
	*
	*

	3000  KPRS  50% cotton / 50% polyester
	*
	*
	*

	3000  CPRS  50% cotton / 50% polyester
	*
	*
	*

	3000  CPRS  55% polyester / 10% black polyester /    35% cotton
	*
	*
	*

	3000  CPRS  60% cotton / 40% polyester
	*
	*
	*

	3000  CPRS  65% polyester / 35% cotton
	*
	*
	*

	3000  KPRS  90% cotton / 10% black polyester
	*
	*
	*

	 
	 
	 
	 

	0800  KPOE  50% cotton / 50% polyester
	*
	*
	*

	1400  KPOE  100% cotton
	*
	 
	*

	1400  KPOE  50% cotton / 40% polyester / 10% black    polyester
	*
	*
	*

	1400  KPOE  50% cotton / 49% polyester / 1% black    polyester
	*
	*
	*

	1400  KPOE  50% cotton / 50% polyester
	*
	*
	*

	1500  KPOE  50% cotton / 50% polyester
	*
	*
	*

	1600  KPOE  100% cotton
	*
	 
	*

	1600  KPOE  50% cotton / 40% polyester / 10% black    polyester
	*
	*
	*

	1600  KPOE  50% cotton / 50% polyester
	*
	*
	*

	1600  KPOE  90% cotton / 10% black polyester
	*
	*
	*

	1800  KPOE  100% cotton
	*
	 
	*

	1800  KPOE  50% cotton / 40% polyester / 10% black    polyester
	*
	*
	*

	1800  KPOE  50% cotton / 50% polyester
	*
	*
	*

	1800  KPOE  70% cotton / 30% black polyester
	*
	*
	*

	1800  KPOE  90% cotton / 10% black polyester
	*
	*
	*

	1800  KPOE  99% cotton / 1% black polyester
	*
	*
	*

	2000  KPOE  50% cotton / 50% polyester
	*
	*
	*

	2200  KPOE  100% cotton
	*
	 
	*

	2200  KPOE  90% cotton / 10% black polyester
	*
	*
	*

	2600  KPOE  100% cotton
	*
	 
	*

	2600  KPOE  50% cotton / 40% polyester / 10% black    polyester
	*
	*
	*

	2600  KPOE  50% cotton / 49% polyester / 1% black    polyester
	*
	*
	*

	2600  KPOE  50% cotton / 50% polyester
	*
	*
	*

	3000  KPOE  100% cotton
	*
	 
	*

	3000  KPOE  100% cotton "soft"
	*
	 
	*

	 
	 
	 
	 

	1200  KPAJ  100% polyester
	 
	*
	*

	1600  KPAJ  50% cotton / 50% polyester
	*
	*
	*

	2200  KPAJ  100% polyester
	 
	*
	*

	2700  KPAJ  50% cotton / 50% polyester
	*
	*
	*

6

* Portions of this exhibit have been omitted pursuant to a request for confidential treatment and have been filed separately with the United States Securities and Exchange Commission.

This Exhibit 3B shall be amended from time to time to add basis, waste factors and conversion prices per pound for Yarn Counts required by Delta or any of its Subsidiaries not set forth above, as agreed to by the parties in their reasonable discretion.

The Cost Price per pound shall be adjusted over the term of this Agreement as described on Exhibit C and shall be calculated for any given period based on the weighted average of cotton prices fixed for that period pursuant to Exhibit C. The Basis per pound shall be adjusted over the term of this Agreement on an annual basis on each anniversary date of the Agreement.

Cotton Prices:
Parkdale shall purchase cotton at prices determined by Delta in accordance with Exhibit C attached hereto.

7a51237900ex10_1.htm

Exhibit 10.1

 

AMENDMENT NO. 2

TO

AMENDED AND RESTATED CREDIT AGREEMENT

This Amendment No. 2 dated as of December 14, 2015 (this “Amendment”), is entered into by and between NIC INC., a Delaware corporation, as the Borrower (the “Borrower”) and BANK OF AMERICA, N.A., a national banking association, as Bank and Letter of Credit Issuer (the “Bank”).

 

Recitals

 

A.           The Borrower and the Bank have entered into that certain Amended and Restated Credit Agreement dated as of August 6, 2014 as amended by that Amendment No. 1 dated July 9, 2015 (as further amended from time to time, the “Credit Agreement”).

 

B.           The Borrower and the Bank have agreed to certain amendments to the Credit Agreement as more fully described herein.

 

C.           The Amendment is subject to the representations and warranties of the Borrower and upon the terms and conditions set forth in this Amendment.

 

Agreement

 

Now, Therefore, in consideration of the foregoing Recitals, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be legally bound, the Borrower and the Bank hereby agree as follows:

 

SECTION 1.   Defined Terms. Capitalized terms used herein but not otherwise defined herein shall have the meaning assigned to such terms in the Credit Agreement.

 

SECTION 2.   Amendment. 

 

2.1            Section 1.01 of the Credit Agreement is hereby amended by amending and restating the pricing grid contained in the defined term “Applicable Rate” to read in its entirety as follows:

 

	
Pricing Level

	
Leverage Ratio

	
LIBOR Rate or LIBOR 

Daily Floating Rate +

	
1

	
    < 1.50:1.00

	
1.15%

	
2

	
    ≥ 1.50:1.00

	
1.25%

2.2            Section 1.01 of the Credit Agreement is hereby amended by inserting the following new defined term:

 

  

  

  

 

“LIBOR Daily Floating Rate” means a fluctuating rate of interest which can change on each Banking Day.  The rate will be adjusted on each Banking Day to equal the London Interbank Offered Rate (or a comparable or successor rate which is approved by the Bank) for U.S. Dollar deposits for delivery on the date in question for a one month term beginning on that date.  The Bank will use the London Interbank Offered Rate as published by Bloomberg (or other commercially available source providing quotations of such rate as selected by the Bank from time to time) as determined at approximately 11:00 a.m. London time two (2) London Banking Days prior to the date in question, as adjusted from time to time in the Bank’s sole discretion for reserve requirements, deposit insurance assessment rates and other regulatory costs.  If such rate is not available at such time for any reason, then the rate will be determined by such alternate method as reasonably selected by the Bank.  If at any time the LIBOR Daily Floating Rate is less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.

 

2.3           Section 1.01 of the Credit Agreement is hereby amended by deleting the defined term “Prime Rate” in its entirety.

 

2.4           Section 2.01(g) of the Credit Agreement is hereby amended by deleting Section 2.01(g) in its entirety and replacing it with the following:

 

(g)           The Bank shall promptly notify the Borrower of the interest rate applicable to any Interest Period for LIBOR Rate Loans upon determination of such interest rate.

 

2.5           Section 2.06(c) of the Credit Agreement is hereby amended by deleting Section 2.06(c) in its entirety and replacing it with the following:

 

(c)           With respect to any Letters of Credit, the Borrower shall pay the Bank a fee for each Letter of Credit equal to an annual rate of one percent (1.00%) times the daily amount available to be drawn under any Letter of Credit.  For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 2.06(d).  Letter of Credit fees shall be (i) due and payable on the first Banking Day after the end of each March, June, September and December, commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit expiration date and thereafter on demand and (ii) computed on a quarterly basis in arrears.

 

2.6           Except as otherwise set forth in this Amendment, all sections of the Credit Agreement are hereby amended by replacing the term “Prime Rate” with the term “LIBOR Daily Floating Rate”.

 

SECTION 3.   Limitations on Amendments.

 

3.1           The amendments set forth in Section 2 above are effective for the purposes set forth herein and will be limited precisely as written and will not be deemed to (a) be a consent to any other amendment, waiver or modification of any other term or condition of the Credit Agreement or any other Loan Document, (b) otherwise prejudice any right or remedy which the Bank may now have or may have in the future under or in connection with the Credit Agreement or any other Loan Document or (c) be a consent to any future amendment, waiver or modification of any other term or condition of the Credit Agreement or any other Loan Document.

 

  

2

  

 

3.2           This Amendment is to be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein waived, are hereby ratified and confirmed and will remain in full force and effect.

 

SECTION 4.   Representations and Warranties.  The Borrower represents and warrants to the Bank as follows:

 

4.1           Immediately after giving effect to this Amendment, (a) the representations and warranties of (i) the Borrower contained in Article V of the Credit Agreement and (ii) each Loan Party contained in each other Loan Document, shall be true and correct in all material respects, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date in all material respects, and (b) the representations and warranties contained in subsections (a) and (b) of Section 5.06 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.02 of the Credit Agreement.

 

4.2            Immediately after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing.

 

SECTION 5.   Expenses.  The Borrower agrees to pay to the Bank upon demand, the amount of any and all out-of-pocket expenses, including the reasonable fees and expenses of its counsel, which the Bank may incur in connection with the preparation, documentation, and negotiation of this Amendment and all related documents.

 

SECTION 6.   Reaffirmation.  The Borrower hereby reaffirms its obligations under each Loan Document (as amended hereby) to which it is a party.

 

SECTION 7.   Effectiveness.  This Amendment will become effective as of the date hereof upon the execution and delivery of this Amendment, whether the same or different copies, by the Borrower and Bank.

 

SECTION 8.   Governing Law.  This Amendment will be governed by and will be construed and enforced in accordance with the laws of the State of Missouri applicable to agreements made and prepared entirely within such State; provided that the Bank shall retain all rights arising under federal law.

 

SECTION 9.   Claims, Counterclaims, Defenses, Rights of Set-Off. The Borrower hereby represents and warrants to the Bank that it has no knowledge of any facts that would support a claim, counterclaim, defense or right of set-off.

 

  

3

  

 

SECTION 10.  Counterparts.  This Amendment may be signed in any number of counterparts, and by different parties hereto in separate counterparts, with the same effect as if the signatures to each such counterpart were upon a single instrument.  All counterparts will be deemed an original of this Amendment.

 

[Remainder of Page Intentionally Left Blank]

 

In Witness Whereof, the parties hereto have caused this Amendment to be executed as of the date first written above.

 

  

4

  

 

	 Borrower: 	NIC INC.	 
	 	a Delaware corporation	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ William F. Bradley, Jr.	 
	 	Name:	William F. Bradley, Jr.	 
	 	Title:	Executive Vice President, Chief	 
	 	 	Administrative Officer, General Counsel and Secretary	 

 

 

	Bank: 	BANK OF AMERICA, N.A.	 
	 	 	 
	 	 	 	 
	 	 	 	 
	
  

	
By: 

	/s/ Dianne M. Smith	 
	 	Name:	Dianne M. Smith	 
	 	Title:	Senior Vice President	 
	 	 	 	 

 

  

5

  

 

CONSENT TO AMENDMENT NO. 2

TO AMENDED AND RESTATED CREDIT AGREEMENT

Each of the undersigned is a Guarantor and party to that certain Amended and Restated Continuing and Unconditional Guaranty dated August 6, 2014 (the “Guaranty”) in favor of Bank of America, N.A. pursuant to which the Guarantors have guaranteed the obligations of NIC INC. to Bank of America, N.A., as Bank and L/C Issuer pursuant to or in connection with that certain Amended and Restated Credit Agreement dated August 6, 2014 as amended by Amendment No. 1 dated July 9, 2015 (as further amended, supplemented or otherwise modified from time to time, the “Credit Agreement”) and the other Loan Documents (as defined in the Credit Agreement).  Each of the Guarantors hereby consents to Amendment No. 2 to the Amended and Restated Credit Agreement dated as of December 14, 2015.

Each Guarantor hereby reaffirms its obligations under the Guaranty.

In Witness Whereof, the Guarantors have caused this Consent to be executed as of December 14, 2015.

 

	 	
ALABAMA INTERACTIVE, LLC, an Alabama limited liability company

	 	  
	 	
ARKANSAS INFORMATION CONSORTIUM, LLC, an Arkansas limited liability company

	 	  
	 	
COLORADO INTERACTIVE, LLC, a Colorado limited liability company

	 	  
	 	
CONNECTICUT INTERACTIVE, LLC, a Connecticut limited liability company

	 	  
	 	
HAWAII INFORMATION CONSORTIUM, LLC, a Hawaii limited liability company

	 	  
	 	
IDAHO INFORMATION CONSORTIUM, LLC, an Idaho limited liability company

	 	  
	 	
INDIANA INTERACTIVE, LLC, an Indiana limited liability company

	 	  
	 	
IOWA INTERACTIVE, LLC, an Iowa limited liability company

	 	  
	 	
KANSAS INFORMATION CONSORTIUM, LLC, a Kansas limited liability company

 

  

6

  

 

	 	
KENTUCKY INTERACTIVE LLC, a Kentucky limited liability company

	 	  
	 	
MAINE INFORMATION NETWORK, LLC, a Maine limited liability company

	 	  
	 	
MISSISSIPPI INTERACTIVE, LLC, a Mississippi limited liability company

	 	  
	 	
MONTANA INTERACTIVE, LLC, a Montana limited liability company

	 	  
	 	
NICUSA, INC., a Kansas corporation

	 	  
	 	
NIC FEDERAL, LLC, f/k/a NIC TECHNOLOGIES, LLC, a Kansas limited liability company

	 	  
	 	
NEBRASKA INTERACTIVE, LLC, a Nebraska limited liability company

	 	  
	 	
NEW JERSEY INTERACTIVE, LLC, a New Jersey limited liability company

	 	  
	 	
NEW MEXICO INTERACTIVE, LLC, a New Mexico limited liability company

	 	  
	 	
NIC SERVICES, LLC, a Colorado limited liability company

	 	  
	 	
OKLAHOMA INTERACTIVE, LLC, an Oklahoma limited liability company

	 	  
	 	
PENNSYLVANIA INTERACTIVE, LLC, a Pennsylvania limited liability company

	 	  
	 	
RHODE ISLAND INTERACTIVE, LLC, a Rhode Island limited liability company

	 	  
	 	
SOUTH CAROLINA INTERACTIVE, LLC, a South Carolina limited liability company

	 	  
	 	
TEXAS NICUSA, LLC, a Texas limited liability company

	 	  
	 	
UTAH INTERACTIVE, LLC, a Utah limited liability company

 

  

7

  

 

	 	
VERMONT INFORMATION CONSORTIUM, LLC, a Vermont limited liability company

	 	  
	 	
VIRGINIA INTERACTIVE, LLC, a Virginia limited liability company

	 	  
	 	
WEST VIRGINIA INTERACTIVE, LLC, a West Virginia limited liability company

	 	  
	 	
WISCONSIN INTERACTIVE NETWORK, LLC, a Wisconsin limited liability company

 

	 	 	  	 
	 	By:	
/s/ William F. Bradley, Jr.

	 
	 	Name:	

William F. Bradley, Jr.

	 
	 	Title:	
Secretary

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