Document:

Exhibit
10.1

 

Digital
Ally, Inc.

Amended
and Restated 2013 Stock Option and Restricted Stock Plan

 

1.
 Purposes.

 

(a) Background.
This 2013 Stock Option and Restricted Stock Plan was adopted on March 22, 2013 by the Board of Directors, subject to the approval
of the Company’s stockholders. Options granted under the Plan prior to the stockholders’ approval will be effective
upon approval of the stockholders as of their respective dates of grant. The shareholders approved the Plan at the annual meeting
of shareholders on May 30, 2013.

 

On
March 28, 2014 the Board of Directors approved an amendment to the Plan to increase the shares of common stock available for issuance
by an additional 100,000 shares for a total of 200,000 shares. The shareholders approved such amendment at the annual meeting
of shareholders held on June 12, 2014, which is the effective date of the amendment. This Amended and Restated 2013 Stock Option
and Restricted Stock Plan includes such amendment.

 

(b) Eligible
Award Recipients. The persons eligible to receive Awards are the Employees and Directors of the Company and its Affiliates.

 

(c) Available
Awards. The purpose of the Plan is to provide a means by which eligible recipients may be given an opportunity to benefit
from increases in value of the Common Stock through the granting of the following: (i) Incentive Stock Options, (ii) Nonqualified
Stock Options, (iii) rights to acquire restricted stock, and (iv) stock appreciation rights.

 

(d) General
Purpose. The Company, by means of the Plan, seeks to retain the services of the group of persons eligible to receive Awards,
to secure and retain the services of new members of this group and to provide incentives for such persons to exert maximum efforts
for the success of the Company and its Affiliates.

 

2.
 Definitions.

 

(a) “Affiliate”
means any entity that controls, is controlled by, or is under common control with the Company.

 

(b) “Award”
means any right granted under the Plan, including an Option, a right to acquire restricted Common Stock, and a stock appreciation
right.

 

(c) “Award
Agreement” means a written agreement between the Company and a holder of an Award (other than an Option) evidencing
the terms and conditions of an individual Award grant.

 

(d) “Board”
means the board of directors of the Company.

 

(e) “Code”
means the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

 

(f) “Committee”
means a pre-existing or newly formed committee of members of the Board appointed by the Board in accordance with subsection
3(c).

 

(g) “Common
Stock” means the shares of the Company’s common stock par value $0.001 and other rights with respect to such
shares.

 

    	 

    	 

    

 

(h) “Company”
means Digital Ally, Inc., a Nevada corporation.

 

(i) “Continuous
Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee or
Director is not interrupted or terminated. Unless otherwise provided in an Award Agreement or Option Agreement, as applicable,
the Participant’s Continuous Service shall not be deemed to have terminated merely because of a change in the capacity in
which the Participant renders service to the Company or an Affiliate as an Employee or Director or a change in the entity for
which the Participant renders such service, provided that there is no interruption or termination of the Participant’s service
to the Company or an Affiliate as an Employee or Director. The Board, in its sole discretion, may determine whether Continuous
Service shall be considered interrupted in the case of any leave of absence, including sick leave, military leave or any other
personal leave.

 

(j) “Covered
Employee” means the Company’s chief executive officer and the four (4) other highest compensated officers
of the Company for whom total compensation is required to be reported to stockholders under the Exchange Act, as determined for
purposes of Section 162(m) of the Code.

 

(k) “Director”
means a member of the Board of the Company.

 

(l) “Disability”
means the Participant’s inability, due to illness, accident, injury, physical or mental incapacity or other disability,
to carry out effectively the duties and obligations to the Company and its Affiliates performed by such person immediately prior
to such disability for a period of at least six (6) months, as determined in the good faith judgment of the Board.

 

(m) “Dollars”
or “$” means United States dollars.

 

(n) “Employee”
means any person employed by the Company or an Affiliate. Service as a Director or payment of a director’s fee by the
Company or an Affiliate alone shall not be sufficient to constitute “employment” by the Company or an Affiliate.

 

(o) “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(p) “Fair
Market Value” means, as of any date, the value of the Common Stock determined as follows:

 

(i) If
the Common Stock is listed on any established stock exchange, or traded on the Nasdaq Global Market, the Nasdaq Capital Market
or the Nasdaq OTC Bulletin Board, the Fair Market Value of the Common Stock shall be the closing sales price for such stock (or
the closing bid, if no sales were reported) as quoted on such exchange or market (or the exchange or market with the greatest
volume of trading in Common Stock if such stock is traded on more than one such exchange or market) on the last market trading
day prior to the day of determination, as reported by such exchange or market or such other source as the Board reasonably deems
reliable.

 

(ii) In
the absence of such markets for the Common Stock, the Fair Market Value shall be determined in good faith by the Board.

 

(q) “Incentive
Stock Option” means an option designated as an incentive stock option in an Option Agreement and that is granted
in accordance with the requirements of, and that conforms to the applicable provisions of, Section 422 of the Code.

 

(r) “Independent
Director” means (i) a Director who satisfies the definition of Independent Director or similar definition under
the applicable stock exchange or Nasdaq rules and regulations upon which the Common Stock is traded from time to time and (ii) a
Director who either (A) is not a current employee of the Company or an “affiliated corporation” (within the meaning
of Treasury Regulations promulgated under Section 162(m) of the Code), is not a former employee of the Company or an “affiliated
corporation” receiving compensation for prior services (other than benefits under a tax qualified pension plan), was not
an officer of the Company or an “affiliated corporation” at any time and is not currently receiving direct or indirect
remuneration from the Company or an “affiliated corporation” for services in any capacity other than as a Director
or (B) is otherwise considered an “outside director” for purposes of Section 162(m) of the Code.

 

    	 

    	 

    

 

(s) “Nonqualified
Stock Option” means an option that is not designated in an Option Agreement as an Incentive Stock Option or was
not granted in accordance with the requirements of, and does not conform to the applicable provisions of, Section 422 of
the Code.

 

(t) “Officer”
means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder.

 

(u) “Option”
means an Incentive Stock Option or a Nonqualified Stock Option granted pursuant to the Plan.

 

(v) “Option
Agreement” means a written agreement between the Company and an Optionholder evidencing the terms and conditions
of an individual Option grant.

 

(w) “Optionholder”
means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding
Option.

 

(x) “Participant”
means a person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding
Award.

 

(y) “Plan”
means this Digital Ally, Inc. 2013 Stock Option and Restricted Stock Plan.

 

(z) “Rule
16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time
to time.

 

(aa) “Securities
Act” means the Securities Act of 1933, as amended.

 

(bb) “Ten
Percent Stockholder” means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock
possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any parent
corporation or any subsidiary corporation, both as defined in Section 424 of the Code.

 

3. Administration.

 

(a) Administration
by Board. The Board shall administer the Plan unless and until the Board delegates administration to a Committee, as provided
in subsection 3(c). The Board may, at any time and for any reason in its sole discretion, rescind some or all of such delegation.

 

(b) Powers
of Board. The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan:

 

(i) To
determine from time to time which of the persons eligible under the Plan shall be granted Awards; when and how each Award shall
be granted; what type or combination of types of Award shall be granted; the provisions of each Award granted (which need not
be identical), including the time or times when a person shall be permitted to receive Common Stock pursuant to an Award; and
the number of shares of Common Stock with respect to which an Award shall be granted to each such person.

 

    	 

    	 

    

 

(ii) To
construe and interpret the Plan, Awards granted under it, Option Agreements and Award Agreements, and to establish, amend and
revoke rules and regulations for their administration. The Board, in the exercise of this power, may correct any defect, omission
or inconsistency in the Plan or in any Option Agreement or Award Agreement, in a manner and to the extent it shall deem necessary
or expedient to make the Plan fully effective.

 

(iii) To
amend the Plan, an Award, an Award Agreement or an Option Agreement as provided in Section 12, provided that,
the Board shall not amend the Fair Market Value of an Award or extend the term of an Option or Award without obtaining the approval
of the stockholders if required by the rules of any stock exchange upon which the Common Stock is listed.

 

(iv) To
reprice any Options granted under the Plan by lowering the exercise price of an Option after it is granted, canceling an Option
at a time when its exercise price exceeds the Fair Market Value of the stock underlying the Option, in exchange for another Option
or Award, as well as any other action that is treated as a repricing under generally accepted accounting principles.

 

(v) Generally,
to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the
Company which are not in conflict with the provisions of the Plan.

 

(c) Delegation
to Committee. 

 

(i) General.
The Board may delegate administration of the Plan and its powers and duties thereunder to a Committee or Committees, and the
term “Committee” shall apply to any person or persons to whom such authority has been delegated. Upon such delegation,
the Committee shall have the powers theretofore possessed by the Board, including the power to delegate to a subcommittee any
of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter
be deemed to include the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions
of the Plan, as may be adopted from time to time by the Board. In its absolute discretion, the Board may at any time and from
time to time exercise any and all rights and duties of the Committee under this Plan, except respecting matters under Rule 16b-3
of the Exchange Act or Section 162(m) of the Code, or any rules or regulations issued thereunder, which are required to be
determined in the sole discretion of the Committee.

 

(ii) Committee
Composition. A Committee shall consist solely of two (2) or more Independent Directors. Within the scope of its authority,
the Board or the Committee may (1) delegate to a committee of one or more members of the Board who are not Independent Directors
the authority to grant Awards to eligible persons who are either (a) not then Covered Employees and are not expected to be
Covered Employees at the time of recognition of income resulting from such Award or (b) not persons with respect to whom
the Company wishes to comply with Section 162(m) of the Code, and/or (2) delegate to a committee of one or more members
of the Board who are not Independent Directors or to the Company’s Chief Executive Officer the authority to grant Awards
to eligible persons who are not then subject to Section 16 of the Exchange Act.

 

(d) Effect
of Board’s Decision; No Liability. All determinations, interpretations and constructions made by the Board in good
faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons. No member of the
Board or the Committee or any person to whom duties hereunder have been delegated shall be liable for any action, interpretation
or determination made in good faith, and such persons shall be entitled to full indemnification and reimbursement consistent with
applicable law and in the manner provided in the Company’s Articles of Incorporation and Bylaws, as the same may be amended
from time to time, or as otherwise provided in any agreement between any such member and the Company.

 

    	 

    	 

    

 

4.
Stock Subject to the Plan.

 

(a) Stock
Reserve. Subject to the provisions of Section 11 relating to adjustments upon changes in Common Stock, the shares of Common
Stock that may be issued pursuant to Awards shall not exceed in the aggregate two hundred thousand (200,000) shares of Common
Stock.

 

(b) Reversion
of Stock to the Stock Reserve. If any Award shall for any reason expire or otherwise terminate, in whole or in part, without
having been exercised in full, the shares of Common Stock not acquired under such Award shall revert to and again become available
for issuance under the Plan.

 

(c) Source
of Stock. The Common Stock subject to the Plan may be unissued stock or reacquired stock, bought on the market or otherwise.

 

5. Eligibility.

 

(a) Eligibility
for Specific Awards. Incentive Stock Options may be granted only to Employees. Awards other than Incentive Stock Options
may be granted to Employees and Directors.

 

(b) Ten
Percent Stockholders. A Ten Percent Stockholder shall not be granted an Incentive Stock Option unless the exercise price
of such Option is at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock at the date of grant
and the Option is not exercisable after the expiration of five (5) years from the date of grant.

 

6. Option
Provisions. 

 

Each
Option Agreement shall be subject to the terms and conditions of this Plan. Each Option and Option Agreement shall be in such
form and shall contain such terms and conditions as the Board shall deem appropriate. All Options shall be separately designated
Incentive Stock Options or Nonqualified Stock Options at the time of grant, and, if certificates are issued, a separate certificate
or certificates will be issued for the shares of Common Stock purchased on exercise of each type of Option. The provisions of
separate Options need not be identical.

 

(a) Provisions
Applicable to All Options. 

 

(i) Consideration.
The purchase price of the shares of Common Stock acquired pursuant to an Option shall be paid as follows: (a) in cash or by
certified or official bank check, payable to the order of the Company, in the amount (the “Purchase Price”) equal
to the exercise price of the Option multiplied by the number of shares plus payment of all taxes applicable upon such exercise;
(b) with shares owned by the Optionholder having a Fair Market Value at the time the Option is exercised equal to the Purchase
Price plus payment in cash of all taxes applicable upon such exercise, with the prior approval of the Board; (c) by surrendering
to the Company the right to acquire a number of shares having an aggregate value such that the amount by which the Fair Market
Value of such shares exceeds the aggregate exercise price is equal to the Purchase Price plus payment in cash of all taxes applicable
upon such exercise, with the prior approval of the Board; (d) any combination of the foregoing; or (e) a manner acceptable to
the Board.

 

(ii) Vesting
Generally. An Option may (A) vest, and therefore become exercisable, in periodic installments that may, but need
not, be equal, or (B) be fully vested at the time of grant. The Option may be subject to such other terms and conditions
on the time or times when it may be exercised (which may be based on performance or other criteria) as the Board may deem appropriate.
The vesting provisions, if any, of individual Options may vary. The provisions of this subsection 6(a)(ii) are subject to any
Option Agreement provisions governing the minimum number of Common Stock as to which an Option may be exercised.

 

    	 

    	 

    

 

(iii) Termination
of Continuous Service. Unless otherwise provided in the Option Agreement, in the event an Optionholder’s Continuous
Service terminates (other than upon the Optionholder’s death, Disability, retirement or as a result of a Change of Control),
all Options held by the Optionholder shall immediately terminate; provided, however, that an Option Agreement may
provide that if an Optionholder’s Continuous Service is terminated for reasons other than for cause, all vested Options
held by such person shall continue to be exercisable until the earlier of the expiration date of such Option or ninety (90) days
after the date of such termination. All such vested Options not exercised within the period described in the preceding sentence
shall terminate.

 

(iv) Disability
or Death of Optionholder. Unless otherwise provided in the Option Agreement, in the event of an Optionholder’s Disability
or death, all unvested Options shall immediately terminate, and all vested Options held by such person shall continue to be exercisable
for twelve months after the date of such Disability or death. All such vested Options not exercised within such twelve-month period
shall terminate.

 

(v) Retirement.
Unless otherwise provided in the Option Agreement, in the event of the Optionholder’s retirement, all unvested Options
shall automatically vest on the date of such retirement and all Options shall be exercisable for the earlier of twelve (12) months
after such retirement date or the expiration date of such Options. All such Options not exercised within the period described
in the preceding sentence shall terminate.

 

(b) Provisions
Applicable to Incentive Stock Options.

 

(i) Term.
Subject to the provisions of subsection 5(b) regarding Ten Percent Stockholders, no Incentive Stock Option shall be exercisable
after the expiration of ten (10) years from the date it was granted. Further, no grant of an Incentive Stock Option shall
be made under this Plan more than ten (10) years after the date the Plan is approved by the stockholders of the Company.

 

(ii) Exercise
Price of an Incentive Stock Option. Subject to the provisions of subsection 5(b) regarding Ten Percent Stockholders, the
exercise price of each Incentive Stock Option shall be not less than one hundred percent (100%) of the Fair Market Value
of the Common Stock subject to the Option on the date the Option is granted.

 

(iii) Transferability
of an Incentive Stock Option. An Incentive Stock Option shall not be transferable except by will or by the laws of descent
and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder.

 

(iv) Incentive
Stock Option $100,000 Limitation. Notwithstanding any other provision of the Plan or an Option Agreement, the aggregate
Fair Market Value of the Common Stock with respect to which Incentive Stock Options are exercisable for the first time by an Optionholder
in any calendar year, under the Plan or any other option plan of the Company or its Affiliates, shall not exceed One Hundred Thousand
Dollars ($100,000). For this purpose, the Fair Market Value of the Common Stock shall be determined as of the time an Option is
granted. The Options or portions thereof which exceed such limit (according to the order in which they were granted) shall be
treated as Nonqualified Stock Options.

 

    	 

    	 

    

 

(c) Provisions
Applicable to Nonqualified Stock Options.

 

(i) Exercise
Price of a Nonqualified Stock Option. The exercise price of each Nonqualified Stock Option shall be not less than one
hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option on the date the Option is granted.

 

(ii) Transferability
of a Nonqualified Stock Option. A Nonqualified Stock Option shall be transferable, if at all, to the extent provided in
the Option Agreement. If the Option Agreement does not provide for transferability, then the Nonqualified Stock Option shall not
be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the
Optionholder only by the Optionholder.

 

7.
 Provisions of Awards Other than Options. 

 

(a)
 Restricted Stock Awards. Each restricted stock Award agreement shall be in such form and shall contain such restrictions,
terms and conditions, if any, as the Board shall deem appropriate and shall be subject to the terms and conditions of this Plan.
The terms and conditions of restricted stock Award Agreements may change from time to time, and the terms and conditions of separate
restricted stock Award Agreements need not be identical, but each restricted stock Award Agreement shall include (through incorporation
of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions:

 

(i)
 Consideration. A restricted stock Award may be awarded in consideration for past services actually rendered, or
for future services to be rendered, to the Company or an Affiliate for its benefit.

 

(ii)
 Vesting. Common Stock awarded under the restricted stock Award Agreement may (A) be subject to a vesting schedule
to be determined by the Board or (B) be fully vested at the time of grant.

 

(iii)
 Termination of Participant’s Continuous Service. Unless otherwise provided in the restricted stock Award
Agreement, in the event a Participant’s Continuous Service terminates prior to a vesting date set forth in the restricted
stock Award Agreement, any unvested restricted stock Award shall be forfeited and automatically transferred to and reacquired
by the Company at no cost to the Company, and neither the Participant nor his or her heirs, executors, administrators or successors
shall have any right or interest in the restricted stock Award. Notwithstanding the foregoing, unless otherwise provided in the
restricted stock Award agreement, in the event a Participant’s Continuous Service terminates as a result of (A) being
terminated by the Company for reasons other than for cause, (B) death, (C) Disability, (D) retirement, or (E) a
Change of Control (subject to the provisions of Section 11(c) hereof), then any unvested restricted stock Award shall vest
immediately upon such date.

 

(iv)
 Transferability. Rights to acquire Common Stock under the restricted stock Award Agreement shall be transferable
by the Participant only upon such terms and conditions as are set forth in the restricted stock Award Agreement, as the Board
shall determine in its discretion, so long as Common Stock awarded under the restricted stock Award Agreement remain subject to
the terms of the restricted stock Award Agreement.

 

(b)
 Grant of Stock Appreciation Rights. Stock appreciation rights to receive in shares of Common Stock the excess of
the Fair Market Value of Common Stock on the date the rights are surrendered over the Fair Market Value of Common Stock on the
date of grant may be granted to any Employee or Director selected by the Board. A stock appreciation right may be granted (i) in
connection and simultaneously with the grant of another Award, (ii) with respect to a previously granted Award, or (iii) independent
of another Award. A stock appreciation right shall be subject to such terms and conditions not inconsistent with this Plan as
the Board shall impose and shall be evidenced by a written stock appreciation right agreement, which shall be executed by the
Participant and an authorized officer of the Company. The Board, in its discretion, may determine whether a stock appreciation
right is to qualify as performance-based compensation as described in Section 162(m)(4)(C) of the Code and stock appreciation
right agreements evidencing stock appreciation rights intended to so qualify shall contain such terms and conditions as may be
necessary to meet the applicable provisions of Section 162(m) of the Code. The Board may, in its discretion and on such terms
as it deems appropriate, require as a condition of the grant of a stock appreciation right that the Participant surrender for
cancellation some or all of the Awards previously granted to such person under this Plan or otherwise. A stock appreciation right,
the grant of which is conditioned upon such surrender, may have an exercise price lower (or higher) than the exercise price of
the surrendered Award, may contain such other terms as the Board deems appropriate, and shall be exercisable in accordance with
its terms, without regard to the number of shares, price, exercise period or any other term or condition of such surrendered Award.

 

    	 

    	 

    

 

8.
 Availability of Stock.

 

Subject
to the restrictions set forth in Section 4(a), during the terms of the Awards, the Company shall keep available at all times
the number of shares of Common Stock required to satisfy such Awards.

 

9. Use
of Proceeds from Stock. 

 

Proceeds
from the sale of Common Stock pursuant to Awards shall constitute general funds of the Company.

 

10. Miscellaneous.

 

(a)
 Exercise of Awards. Awards shall be exercisable at such times, or upon the occurrence of such event or events as
the Board shall determine at or subsequent to grant. Awards may be exercised in whole or in part. Common Stock purchased upon
the exercise of an Award shall be paid for in full at the time of such purchase.

 

(b) Acceleration
of Exercisability and Vesting. The Board shall have the power to accelerate the time at which an Award may first be exercised
or the time during which an Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in
the Award stating the time at which it may first be exercised or the time during which it will vest.

 

(c)
 Stockholder Rights. 

 

(i)
 Options. Unless otherwise provided in and upon the terms and conditions in the Option Agreement, no Participant
shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any Common Stock subject to an
Option unless and until such Participant has satisfied all requirements for exercise of, and has exercised, the Option pursuant
to its terms.

 

(ii)
 Restricted Stock. Unless otherwise provided in and upon the terms and conditions in the restricted stock Award
Agreement, a Participant shall have the right to receive all dividends and other distributions paid or made respecting such restricted
stock, provided, however, no unvested restricted stock shall have any voting rights of a stockholder respecting such unvested
restricted stock unless and until such unvested restricted stock become vested.

 

(d) No
Employment or other Service Rights. Nothing in the Plan or any instrument executed or Award granted pursuant thereto shall
confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the
Award was granted, or any other capacity, or shall affect the right of the Company or an Affiliate to terminate with or without
notice and with or without cause (i) the employment of an Employee or an Affiliate or (ii) the service of a Director
of the Company or an Affiliate.

 

    	 

    	 

    

 

(e) Withholding
Obligations. If the Company has or will have a legal obligation to withhold the taxes related to the grant, vesting or
exercise of the Award, such Award may not be granted, vested or exercised in whole or in part, unless such tax obligation is first
satisfied in a manner satisfactory to the Company. To the extent provided by the terms of an Award Agreement or Option Agreement,
the Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of
Common Stock under an Award by any of the following means (in addition to the Company’s right to withhold from any compensation
paid to the Participant by the Company) or by a combination of such means: (i) tendering a cash payment in Dollars; (ii) authorizing
the Company to withhold Common Stock from the Common Stock otherwise issuable to the Participant as a result of the exercise or
acquisition of Common Stock under the Award, provided, however, that no shares of Common Stock are withheld with a value exceeding
the minimum amount of tax required to be withheld by law; or (iii) delivering to the Company owned and unencumbered Common
Stock.

 

(f) Listing
and Qualification of Stock. This Plan and the grant and exercise of Awards hereunder, and the obligation of the Company
to sell and deliver Common Stock under such Awards, shall be subject to all applicable United States federal and state laws, rules
and regulations, and any other laws applicable to the Company, and to such approvals by any government or regulatory agency as
may be required. The Company, in its discretion, may postpone the issuance or delivery of Common Stock upon any exercise of an
Award until completion of any stock exchange listing, or the receipt of any required approval from any stock exchange or other
qualification of such Common Stock under any United States federal or state law rule or regulation as the Company may consider
appropriate, and may require any individual to whom an Award is granted, such individual’s beneficiary or legal representative,
as applicable, to make such representations and furnish such information as the Board may consider necessary, desirable or advisable
in connection with the issuance or delivery of the Common Stock in compliance with applicable laws, rules and regulations.

 

(g) Non-Uniform
Determinations. The Board’s determinations under this Plan (including, without limitation, determinations of the
persons to receive Awards, the form, term, provisions, amount and timing of the grant of such Awards and of the agreements evidencing
the same) need not be uniform and may be made by it selectively among persons who receive, or are eligible to receive, Awards
under this Plan, whether or not such persons are similarly situated.

 

11.
Adjustments Upon Changes in Stock.

 

(a) Capitalization
Adjustments. If any change is made in the Common Stock subject to the Plan, or subject to any Award, without the receipt
of consideration by the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend,
dividend in property other than cash, stock split, liquidating dividend, combination of stock, exchange of stock, change in corporate
structure or other transaction), the Plan will be appropriately adjusted in the class(es) and maximum number of securities subject
to the Plan pursuant to subsection 4(a) and the maximum number of securities subject to award to any person pursuant to subsection
5(c), and the outstanding Awards will be appropriately adjusted in the class(es) and number of securities and price per stock
of Common Stock subject to such outstanding Awards. The Board shall make such adjustments, and its determination shall be final,
binding and conclusive. (The conversion of any convertible securities of the Company shall not be treated as a transaction “without
receipt of consideration” by the Company.)

 

(b) Dissolution
or Liquidation. In the event of a dissolution or liquidation of the Company, then all outstanding Awards shall terminate
immediately prior to such event.

 

    	 

    	 

    

 

(c) Asset
Sale, Merger, Consolidation or Reverse Merger. In the event of a Change of Control (as defined below), any unvested Awards
shall vest immediately prior to the closing of the Change of Control, and the Board shall have the power and discretion to provide
for the Participant’s election alternatives regarding the terms and conditions for the exercise of, or modification of,
any outstanding Awards granted hereunder, provided, however, such alternatives shall not affect the then current exercise provisions
without such Participant’s consent. The Board may provide that Awards granted hereunder must be exercised in connection
with the closing of such transaction, and that if not so exercised such Awards will expire. Any such determinations by the Board
may be made generally with respect to all Participants, or may be made on a case-by-case basis with respect to particular Participants.
For the purpose of this Plan, a “Change of Control” shall have occurred in the event one or more persons acting individually
or as a group (i) acquires sufficient additional stock to constitute more than fifty percent (50%) of (A) the total
Fair Market Value of all Common Stock issued and outstanding or (B) the total voting power of all shares of capital stock
authorized to vote for the election of directors; (ii) acquires, in a twelve (12) month period, thirty-five percent (35%) or
more of the voting power of all shares of capital stock authorized to vote for the election of directors, or alternatively a majority
of the members of the board is replaced during any twelve (12) month period by directors whose appointment was not endorsed by
a majority of the members of the board; or (iii) acquires, during a twelve (12) month period, more than forty percent (40%)
of the total gross fair market value of all of the Company’s assets. Notwithstanding the foregoing, the provisions of this
Section 11(c) shall not apply to (i) any transaction involving any stockholder that individually or as a group owns
more than fifty percent (50%) of the outstanding Common Stock on the date this Plan is approved by the Company’s stockholders,
until such time as such stockholder first owns less than forty percent (40%) of the total outstanding Common Stock, or (ii) any
transaction undertaken for the purpose of reincorporating the Company under the laws of another jurisdiction, if such transaction
does not materially affect the beneficial ownership of the Company’s capital stock.

 

12.
 Amendment of the Plan and Awards. 

 

(a)
 Amendment of Plan. The Board at any time, and from time to time, may amend the Plan. However, except as provided
in Section 11 relating to adjustments upon changes in Common Stock, no amendment shall be effective unless approved by the
stockholders of the Company to the extent stockholder approval is necessary to satisfy the requirements of Section 422 of
the Code, Rule 16b-3 or any applicable Nasdaq or securities exchange listing requirements.

 

(b)
 Stockholder Approval. The Board may, in its sole discretion, submit any other amendment to the Plan for stockholder
approval, including, but not limited to, amendments to the Plan intended to satisfy the requirements of Section 162(m) of
the Code and the regulations thereunder regarding the exclusion of performance-based compensation from the limit on corporate
deductibility of compensation paid to certain executive officers.

 

(c) Contemplated
Amendments. It is expressly contemplated that the Board may amend the Plan in any respect the Board deems necessary or
advisable to provide eligible Employees with the maximum benefits provided or to be provided under the provisions of the Code
and the regulations promulgated thereunder relating to Incentive Stock Options and/or to bring the Plan and/or Incentive Stock
Options granted under it into compliance therewith.

 

(d)
 No Impairment of Rights. Rights under any Award granted before amendment of the Plan shall not be impaired by any
amendment of the Plan unless the Participant consents in writing.

 

(e)
 Amendment of Awards. Subject to Section 3(b)(iii), the Board at any time, and from time to time, may amend
the terms of any one or more Awards; provided, however, that the rights under any Award shall not be impaired by any such amendment
unless the applicable Participant consents in writing.

 

    	 

    	 

    

 

13.
 Termination or Suspension of the Plan. 

 

(a) Plan
Term. The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on the
day before the tenth (10th) anniversary of the date the Plan is adopted by the stockholders of the Company. No Awards may be granted
under the Plan while the Plan is suspended or after it is terminated.

 

(b)
 No Impairment of Rights. Suspension or termination of the Plan shall not impair rights and obligations under any
Award granted while the Plan is in effect except with the written consent of the Participant.

 

(c)
 Savings Clause. This Plan is intended to comply in all aspects with applicable laws and regulations. In case any
one or more of the provisions of this Plan shall be held invalid, illegal or unenforceable in any respect under applicable law
or regulation, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired
thereby and the invalid, illegal or unenforceable provision shall be deemed null and void; however, to the extent permissible
by law, any provision which could be deemed null and void shall first be construed, interpreted or revised retroactively to permit
this Plan to be construed in compliance with all applicable laws so as to foster the intent of this Plan.

 

14.
 Effective Date of Plan. 

 

The
Plan shall become effective as determined by the Board, but no Award shall be exercised (or, in the case of a restricted stock
Award, shall be granted) unless and until the Plan has been approved by the stockholders of the Company, which approval shall
be within twelve (12) months before or after the date the Plan is adopted by the Board.

 

15.
 Choice of Law. 

 

The
law of the state of Nevada shall govern all questions concerning the construction, validity and interpretation of this Plan, without
regard to such state’s conflict of laws rules.Exhibit 10.1 - Third Amendment

THIRD AMENDMENT TO 
FOURTH AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 

THIS THIRD AMENDMENT TO FOURTH AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this "Amendment") is made and entered into this 26th day of September,  2014, by and among DELTA APPAREL, INC., a Georgia corporation ("Delta"), M. J. SOFFE, LLC, a North Carolina limited liability company ("Soffe"), JUNKFOOD CLOTHING COMPANY, a Georgia corporation ("Junkfood"), TO THE GAME, LLC, a Georgia limited liability company ("TTG"), ART GUN, LLC, a Georgia limited liability company ("Art Gun"; Delta, Soffe, Junkfood, TTG and Art Gun being hereinafter collectively called "Borrowers" and individually a "Borrower"); the parties to the Loan Agreement (as defined below) from time to time as Lenders (each individually, a "Lender" and collectively, "Lenders"); and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association ("Wells Fargo"), in its capacity as agent for Lenders (together with its successors in such capacity, "Agent").
Recitals:
Borrowers, Agent and Lenders are parties to a certain Fourth Amended and Restated Loan and Security Agreement dated May 27, 2011 (as at any time amended, restated, modified or supplemented, the "Loan Agreement"), pursuant to which Agent and Lenders have made certain loans and other financial accommodations available to Borrowers.  Borrowers, Agent and Lenders desire to amend the Loan Agreement as hereinafter set forth.
NOW, THEREFORE, for TEN DOLLARS ($10.00) in hand paid and other good and valuable consideration, the receipt and sufficiency of which are hereby severally acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:
1.    Definitions.  All capitalized terms used in this Amendment, unless otherwise defined herein, shall have the meaning ascribed to such terms in the Loan Agreement.
2.    Amendments to Loan Agreement.  The Loan Agreement is hereby amended as follows:
(a)    By deleting the definitions of "Alternate Excess Availability," "Financial Covenant Testing Period," "Financial Covenant Trigger Event," "Fixed Charge Coverage Ratio," "LIBOR Rate," "Tranche B Borrowing Base" and "Tranche B Maximum Credit" set forth in Section 1 of the Loan Agreement and by substituting the following in lieu thereof, respectively:
"Alternate Excess Availability" shall mean the amount, as determined by Agent, calculated at any time, equal to: (a) the sum of the Tranche A Borrowing Base plus the Tranche B Borrowing Base minus (b) the amount of all then outstanding and unpaid Obligations.
"Financial Covenant Testing Period" shall mean the period beginning on the date of a Financial Covenant Trigger Event and ending on the day on which Agent has determined that no Financial Covenant Trigger Event exists or has existed for a period of  sixty (60) consecutive days.
"Financial Covenant Trigger Event" shall mean (a) the occurrence of an Event of Default or (b) Agent's reasonable determination in its discretion that Alternate Excess Availability is less than an amount equal to (i) prior to September 28, 2014, twelve and one-half percent (12.5%) of the lesser of (1) the Tranche A Borrowing Base and (2) the sum of the Tranche A Maximum Credit plus the Tranche B Maximum Credit at any time, (ii) on and after September 28, 2014 through (and including) October 31, 2014, $8,500,000 at any time during such period, (iii) on and after November 1, 2014 through (and including) November 30, 2014, $5,000,000 at any time during such period, (iv) on and after December 1, 2014 through (and including) December 31, 2014, $4,500,000 at any time during such period, (v) on and after January 1, 2015 through (and including) April 30, 2015, $4,000,000 at any time during such period, (vi) on and after May 1, 2015 through (and including) June 30, 2015, $5,000,000 at any time during such period, (vii) on and after July 1, 2015 through (and including) 

July 31, 2015, $8,000,000 at any time during such period, (viii) on and after August 1, 2015 through (and including) August 31, 2015, $11,000,000 at any time during such period, (ix) on and after September 1, 2015 through (and including) September 30, 2015, $13,000,000 at any time during such period, (x) on and after October 1, 2015 through (and including) October 31, 2015, $15,000,000 at any time during such period, or (xi) on and after November 1, 2015, twelve and one-half percent (12.5%) of the lesser of (1) the Tranche A Borrowing Base and (2) the sum of the Tranche A Maximum Credit and the Tranche B Maximum Credit at any time.
"Fixed Charge Coverage Ratio" shall mean, with respect to Borrowers and their Subsidiaries, on a consolidated basis, for any period of determination, the ratio of (a) the sum of (x) EBITDA of Borrowers during such period plus (y) Restructuring Expenses actually recorded on Borrowers' books during such period minus the sum of (i) the amount of any taxes paid in cash, cash dividends to the equity holders of such Person and other distributions to equity holders of such Person during the period in question (for avoidance of doubt, excluding redemptions with respect to the Capital Stock of such Person (including, but not limited to stock repurchases)) plus (ii) all Unfinanced Capital Expenditures made during such period plus (iii) all regularly scheduled (as determined at the beginning of the respective period) principal payments of Indebtedness for borrowed money and Indebtedness with respect to the Capital Leases made during such period (excluding the September 2014 Salt Life Payment) to (b) Fixed Charges of Borrowers and their Subsidiaries for the same period.  In no event shall the aggregate amount of all Restructuring Expenses added back during all periods exceed $4,000,000.
"LIBOR Rate" shall mean the rate per annum rate as reported on Reuters Screen LIBOR01 page (or any successor page) 2 Business Days prior to the commencement of the requested Interest Period, for a term, and in an amount, comparable to the Interest Period and the amount of the LIBOR Rate Loan requested (whether as an initial LIBOR Rate Loan or as a continuation of a LIBOR Rate Loan or as a conversion of a Base Rate Loan to a LIBOR Rate Loan) by Borrowers in accordance with the Agreement (and, if any such rate is below zero, the LIBOR Rate shall be deemed to be zero), which determination shall be made by Agent and shall be conclusive in the absence of manifest error.
"Tranche B Borrowing Base" shall mean, at any time, an amount equal to:
(a)    five percent (5%) of the Net Amount of the Eligible Accounts, plus
(b)    five percent (5%) of the Net Orderly Liquidation Value of Eligible Inventory consisting of finished goods (including finished garments and headwear regardless of whether Borrowers classify such goods as raw materials or finished goods), Borrowers' raw materials consisting of raw cotton and yarn for such finished goods, and finished yarn categorized as work-in-process, minus
(c)    for the period of (i) October 31, 2014 through (and including) November 29, 2014, $250,000, (ii) November 30, 2014 through (and including) December 30, 2014, $500,000, (iii) December 31, 2014 through (and including) January 30, 2015, $750,000, (iv) January 31, 2015 through (and including) February 27, 2015, $1,000,000, (v) February 28, 2015 through (and including) March 30, 2015, $1,250,000, (vi) March 31, 2015 through (and including) April 29, 2015, $1,500,000, (vii) on and after April 30, 2015 through (and including) May 30, 2015, $2,250,000, (viii) May 31, 2015 through (and including) June 29, 2015, $3,000,000, (ix) June 30, 2015 through (and including) July 30, 2015, $3,750,000, (x) July 31, 2015 through (and including) August 26, 2015, $4,500,000.
"Tranche B Maximum Credit" shall mean the lesser of (i) (A) prior to October 31, 2014, $10,000,000, (B) on and after October 31, 2014 through (and including) November 29, 2014, $5,750,000, (C) on and after November 30, 2014 through (and including) December 30, 2014, $5,500,000, (D) on and after December 31, 2014 through (and including) January 30, 2015, $5,250,000, 

(E) on and after January 31, 2015 through (and including) February 27, 2015, $5,000,000, (F) on and after February 28, 2015 through (and including) March 30, 2015, $5,000,000, (G) on and after March 31, 2015 through (and including) April 29, 2015, $4,900,000, (H) on and after April 30, 2015 through (and including) May 30, 2015, $4,000,000, (I) on and after May 31, 2015 through (and including) June 29, 2015, $3,100,000, (J) on and after June 30, 2015 through (and including) July 30, 2015, $2,400,000, (K) on and after July 31, 2015 through (and including) August 26, 2015, $1,500,000, or (L) on and after August 27, 2015, $-0-, and (ii) the Tranche B Borrowing Base as set forth in the most recent monthly reporting delivered to Agent in compliance with Section 7.1(a)(ii) hereof.
(b)    By adding the following new definitions of "Restructuring Expenses," "September 2014 Salt Life Payment" and "Third Amendment Date" to Section 1 of the Loan Agreement in proper alphabetical order:
"Third Amendment Date" shall mean September 26, 2014.
"Restructuring Expenses" shall mean cash restructuring charges and expenses incurred by Borrowers in connection with strategic cost-cutting and related actions identified and undertaken in fiscal years 2014 and 2015. 
"September 2014 Salt Life Payment" shall mean the $9,000,000 payment to be made to Salt Life pursuant to the Subordinated Note (as such term is defined in the Salt Life Subordination Agreement) on or before September 30, 2014.
(c)    By deleting subclause (a)(v) of the definition of "Tranche A Borrowing Base" set forth in Section 1 of the Loan Agreement and by substituting the following in lieu thereof:
(v)    the lesser of: (A) (1) prior to October 1, 2014, $2,589,000, (2) on and after October 1, 2014 through (and including) October 30, 2014, $2,292,750, (3) on and after October 31, 2014 through (and including) November 29, 2014, $2,101,687, (4) on and after November 30, 2014 through (and including) December 30, 2014, $1,910,624, (5) on and after December 31, 2014 through (and including) January 30, 2015, $1,719,561, (6) on and after January 31, 2015 through (and including) February 27, 2015, $1,528,498, (7) on and after February 28, 2015 through (and including) March 30, 2015, $1,337,435, (8) on and after March 31, 2015 through (and including) April 29, 2015, $1,146,372, (9) on and after April 30, 2015 through (and including) May 30, 2015, $955,309, (10) on and after May 31, 2015 through (and including) June 29, 2015, $764,246, (11) on and after June 30, 2015 through (and including) July 30, 2015, $573,183, (12) on and after July 31, 2015 through (and including) August 30, 2015, $382,120, (13) on and after August 31, 2015 through (and including) September 29, 2015, $191,057, or (14) on and after September 30, 2015, $-0-, or (B) forty-five percent (45%) of the Net Orderly Liquidation Value of Eligible Trademarks (inclusive of any potential value after tax benefit, at the Agent's discretion); minus
(d)    By deleting the word "and" set forth at the end of Section 9.10(j) of the Loan Agreement, by deleting the "." set forth at the end of Section 9.10(k) of the Loan Agreement and by substituting in lieu thereof "; and" and by adding the following new Section 9.10(l) to the Loan Agreement in proper alphabetical sequence as follows:
(l)    guaranties by a Borrower of any Permitted Indebtedness, performance or obligations of any other Borrower;
(e)    By deleting Exhibit B to the Loan Agreement and by substituting Exhibit B attached hereto in lieu thereof.
3.    Ratification and Reaffirmation.  Each Borrower hereby ratifies and reaffirms the Obligations, each of the Financing Agreements and all of such Borrower's covenants, duties, indebtedness and liabilities under the Financing Agreements.

4.    Acknowledgments and Stipulations.  Each Borrower acknowledges and stipulates that the Loan Agreement and the other Financing Agreements executed by such Borrower are legal, valid and binding obligations of such Borrower that are enforceable against such Borrower in accordance with the terms thereof; all of the Obligations are owing and payable without defense, offset or counterclaim (and to the extent there exists any such defense, offset or counterclaim on the date hereof, the same is hereby waived by such Borrower); the security interests and liens granted by such Borrower in favor of Agent are duly perfected, first priority security interests and liens; and, as of the opening of business on September 25, 2014, the unpaid principal amount of the Tranche A Loans totaled $93,622,870.77 and the unpaid principal amount of the Tranche B Loans totaled $6,382,301.43.
5.    Representations and Warranties.  Each Borrower represents and warrants to Agent and Lenders, to induce Agent and Lenders to enter into this Amendment, that no Default or Event of Default exists on the date hereof; the execution, delivery and performance of this Amendment have been duly authorized by all requisite corporate action on the part of such Borrower and this Amendment has been duly executed and delivered by such Borrower; and all of the representations and warranties made by such Borrower in the Loan Agreement are true and correct on and as of the date hereof.
6.    Reference to Loan Agreement.  Upon the effectiveness of this Amendment, each reference in the Loan Agreement to "this Agreement," "hereunder," or words of like import shall mean and be a reference to the Loan Agreement, as amended by this Amendment.
7.    Breach of Amendment.  This Amendment shall be part of the Loan Agreement and a breach of any representation, warranty or covenant herein shall constitute an Event of Default.
8.    Conditions Precedent.  The effectiveness of the amendment contained in Section 2 hereof is subject to the satisfaction of each of the following conditions precedent, in form and substance satisfactory to Agent, unless satisfaction thereof is specifically waived in writing by Agent:
(a)    all requisite corporate action and proceedings in connection with the transactions contemplated by this Amendment shall be satisfactory in form and substance to Agent, and Agent shall have received all information and copies of all documents, including records of requisite corporate action and proceedings which Agent may have requested in connection therewith, such documents where requested by Agent or its counsel to be certified by appropriate corporate officers or Governmental Authorities; and
(b)    this Amendment and the other Financing Agreements and all instruments and documents to be entered into in connection herewith.
9.    Amendment Fee; Expenses of Agent.  In consideration of Agent's and Lender's willingness to enter into this Amendment, Borrowers jointly and severally agree to pay to Agent, allocable to each Lender based on such Lender's Pro Rata Share, an amendment fee in the amount of $362,500 in immediately available funds on the date hereof.  Additionally, Borrowers agree to pay, on demand, all costs and expenses incurred by Agent in connection with the preparation, negotiation and execution of this Amendment and any other Financing Agreements executed pursuant hereto and any and all amendments, modifications, and supplements thereto, including, without limitation, the costs and fees of Agent's legal counsel and any taxes or expenses associated with or incurred in connection with any instrument or agreement referred to herein or contemplated hereby.
10.    Effectiveness; Governing Law.  This Amendment shall be effective upon acceptance by Agent and Lenders (notice of which acceptance is hereby waived), whereupon the same shall be governed by and construed in accordance with the internal laws of the State of Georgia.  
11.    Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
12.    No Novation, etc.  Except as otherwise expressly provided in this Amendment, nothing herein shall be deemed to amend or modify any provision of the Loan Agreement or any of the other Financing Agreements, each 

of which shall remain in full force and effect.  This Amendment is not intended to be, nor shall it be construed to create, a novation or accord and satisfaction, and the Loan Agreement as herein modified shall continue in full force and effect.
13.    Counterparts; Telecopied Signatures.  This Amendment may be executed in any number of counterparts and by different parties to this Amendment on separate counterparts, each  of which, when so executed, shall be deemed an original, but all such counterparts shall constitute one and the same agreement.  Any signature delivered by a party by facsimile transmission shall be deemed to be an original signature hereto.
14.    Further Assurances.  Each Borrower agrees to take such further actions as Agent shall reasonably request from time to time in connection herewith to evidence or give effect to the amendments set forth herein or any of the transactions contemplated hereby.
15.    Section Titles.  Section titles and references used in this Amendment shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreements among the parties hereto.
16.    Release of Claims.  To induce Agent and Lenders to enter into this Amendment, each Borrower hereby releases, acquits and forever discharges Agent and Lenders, and all officers, directors, agents, employees, successors and assigns of Agent and Lenders, from any and all liabilities, claims, demands, actions or causes of action of any kind or nature (if there be any), whether absolute or contingent, disputed or undisputed, at law or in equity, or known or unknown, that such Borrower now has or ever had against Agent or any Lender arising under or in connection with any of the Financing Agreements or otherwise.  Each Borrower represents and warrants to Agent and Lenders that such Borrower has not transferred or assigned to any Person any claim that such Borrower ever had or claimed to have against Agent or any Lender.
17.    Waiver of Jury Trial.  To the fullest extent permitted by applicable law, the parties hereto each hereby waives the right to trial by jury in any action, suit, counterclaim or proceeding arising out of or related to this Amendment.

[Remainder of page intentionally left blank; signatures appear on following pages.]

Third Amendment to Fourth Amended and Restated Loan and Security Agreement (Delta Apparel)

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed under seal and delivered by their respective duly authorized officers on the date first written above.
	
	
	BORROWERS:

	 

	DELTA APPAREL, INC.

	By: /s/ Deborah H. Merrill

	Name: Deborah H. Merrill
Title: Vice President and C.F.O.

	 

	M.J. SOFFE, LLC

	By: /s/ Deborah H. Merrill

	Name: Deborah H. Merrill
Title: Vice President and C.F.O.

	 

	JUNKFOOD CLOTHING COMPANY

	By: /s/ Deborah H. Merrill

	Name: Deborah H. Merrill
Title: Vice President and C.F.O.

	 

	TO THE GAME, LLC

	By: /s/ Deborah H. Merrill

	Name: Deborah H. Merrill
Title: Vice President and C.F.O.

	 

	ART GUN, LLC

	By: /s/ Deborah H. Merrill

	Name: Deborah H. Merrill
Title: Vice President and C.F.O.

[Signatures continued on following page.]

 

Third Amendment to Fourth Amended and Restated Loan and Security Agreement (Delta Apparel)

	
	
	AGENT:

	 

	WELLS FARGO BANK, NATIONAL ASSOCIATION

	By: /s/ Daniel Denton

	Name: Daniel Denton
Title: Vice President

	 

	LENDERS:

	 

	WELLS FARGO BANK, NATIONAL ASSOCIATION

	By: /s/ Daniel Denton

	Name: Daniel Denton
Title: Vice President 

	 

[Signatures continued on following page.]

 

Third Amendment to Fourth Amended and Restated Loan and Security Agreement (Delta Apparel)

	
	
	BANK OF AMERICA, N.A.

	By: /s/ Steven L. Hipsman

	Name: Steven L. Hipsman
Title: Senior Vice President

	 

[Signatures continued on following page.]

Third Amendment to Fourth Amended and Restated Loan and Security Agreement (Delta Apparel)

	
	
	PNC BANK, NATIONAL ASSOCIATION

	By: /s/ Alex M. Council

	Name: Alex M. Council
Title: Vice President

	 

EXHIBIT B
PRICING GRID
For the period after the Third Amendment Date until Borrowers deliver the financial statements and compliance certificate required by Section 9.6 of the Agreement for the fiscal quarter ending September 27, 2014, the applicable margin for Base Rate Tranche A Loans will be 1.25%, the applicable margin for LIBOR Rate Tranche A Loans will be 2.25%, the applicable margin for Base Rate Tranche B Loans will be 3.00% and the applicable margin for LIBOR Rate Tranche B Loans will be 4.00%.  Thereafter, the applicable margin will be increased or decreased on a quarterly basis, based upon the following pricing grid:
	
						
	 
	 
	Tranche A Loans
	Tranche B Loans

	Level
	When Average Alternate Excess Availability is:
	Applicable Base Rate Margin
	Applicable LIBOR Rate Margin
	Applicable Base Rate Margin
	Applicable LIBOR Rate Margin

	I
	< 20.0% of the Commitments
	1.50%
	2.50%
	3.00%
	4.00%

	II
	≥ 20.0% of the Commitments but < 50.0% of the Commitments
	1.25%
	2.25%
	3.00%
	4.00%

	III
	≥ 50% of the Commitments
	1.00%
	2.00%
	3.00%
	4.00%

At any time that an Event of Default exists or has occurred and is continuing, the applicable margin shall be adjusted immediately to the margin applicable for Level I.  
The term "Average Alternate Excess Availability" shall mean, at any time, the average of the aggregate amount of the Alternate Excess Availability of Borrowers, as calculated by Agent, for the immediately preceding fiscal quarter.  
The applicable margin shall be calculated and established once each fiscal quarter, effective as of the first day of the fiscal quarter following the fiscal quarter with respect to which Agent has received the required financial statements and compliance certificate, and shall remain in effect until adjusted thereafter as of the first day of a subsequent fiscal quarter.
In the event that any financial statement or compliance certificate delivered by Borrowers for any period is shown to be inaccurate (whether such inaccuracy is discovered at any time during the effectiveness of the Credit Facility or up to six months thereafter), and such inaccuracy, if corrected, would have led to the application of a higher applicable margin for any period than the applicable margin applied for such period, then (i) Borrowers shall immediately deliver to Agent a correct compliance certificate for such period, (ii) the applicable margin for such period shall be deemed to be the applicable margin that would have been in effect for such period had the financial statement or compliance certificate delivered by Borrowers not contained the inaccuracy, and (iii) Borrowers shall immediately pay to Agent the accrued additional interest owing as a result of such increased applicable margin for such period.  Neither the recalculation of the applicable margin for such a period, nor the payment by Borrowers of the accrued additional interest required, shall limit the rights of Agent and Lenders with respect to their ability to charge interest at the Default Rate or to declare any Event of Default or exercise any of their remedies during the existence of such an Event of Default.

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