Document:

ufi-ex1033_79.htm

* Confidential treatment has been requested for the redacted portions of this agreement pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  The confidential, redacted portions have been provided separately to the U.S. Securities and Exchange Commission.

 

Exhibit 10.33

 

ADDENDUM AND EXTENSION TO 
YARN PURCHASE AGREEMENT

 

THIS ADDENDUM AND EXTENSION TO YARN PURCHASE AGREEMENT (this “Addendum”) is made and entered into as of the 30th day of June, 2018 (the “Effective Date”) by and between Hanesbrands Inc., a Maryland corporation with a principal place of business located at 1000 East Hanes Mill Road, Winston-Salem, North Carolina 27105 (“Buyer” or “HBI”), and Unifi Manufacturing, Inc., a North Carolina corporation with a principal place of business located at 7201 West Friendly Avenue, Greensboro, North Carolina 27410 (“Supplier” or “Unifi”).  

 

RECITALS

 

WHEREAS, HBI and Unifi previously entered into a Yarn Purchase Agreement dated as of September 1, 2014 (the “Agreement”);

 

WHEREAS, the Agreement will expire by its terms on the Effective Date, and HBI and Unifi desire to extend the term of the Agreement; and

 

WHEREAS, HBI and Unifi also wish to amend certain terms of the Agreement as set forth herein.

 

NOW, THEREFORE, in consideration of the mutual benefit to be derived from this Addendum and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.Extension of Term. Section 8.1 of the Agreement is hereby amended such that the term of the Agreement is hereby extended through September 30, 2019 (the “Extended Term”).

 

2.Payment Terms.  

 

	
 
	
a.
	
For all purchases on or after July 1, 2018, references to [Confidential]* in Section 3.3 of the Agreement are hereby changed to [Confidential]*.

 

	
 
	
b.
	
The following is added as the final sentence in Section 3.3: [Confidential]*

 

	
 
	
c.
	
[Confidential]*  

 

3.Certain Purchases.  Beginning on the first date HBI places an order for [Confidential]* and for the duration of the Extended Term, HBI agrees to buy [Confidential]* for the following air covered Yarns (the “Specified Yarns”) at the following prices:

 

	
 
	
a.
	
[Confidential]* 

 

1

 

 

 

	
 
	
b.
	
[Confidential]*  

 

For the avoidance of doubt, HBI will be relieved of its obligations in this Section 3 of the Addendum to the extent that any of the conditions specified in the last sentence of Section 2.2 of the Agreement occurs with respect to the Specified Yarns.  In addition, HBI will be entitled to all of its remedies under the Agreement or at law if Unifi delivers non-conforming Yarn, including but not limited to those set forth in Section 6.3 of the Agreement.  The obligations in this Section 3 of the Addendum do not modify Buyer’s obligations set forth in Section 2.2 of the Agreement as to Yarns other than the above-defined Specified Yarns. 

 

4.Certain Terms.  All capitalized terms not defined herein shall have the same meanings as set forth in the Agreement.

 

5.No Other Amendments.  Except as amended by this Addendum, all the terms and provisions of the Agreement shall remain in full force and effect.  

 

6.Entire Agreement.  This Addendum, together with the Agreement, sets forth the entire and final agreement and understanding of the parties with respect to the subject matter of this Addendum and the Agreement.  In the event of any conflict between the terms and conditions set forth in the Agreement and this Addendum, the terms and conditions of this Addendum shall control.  This Addendum may not be modified or amended except by an instrument in writing executed by the parties to this Addendum.

 

7.Counterparts.  This Addendum may be executed in one or more counterparts (whether facsimile or original), each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

 

 

[Signature Page Follows]

 

2

 

 

IN WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to execute this Addendum as of the day and year first above written.

 

 

					
	
 
	
HANESBRANDS INC.
	
 
	
 
	
UNIFI MANUFACTURING, INC.

	
 
	
 
	
 
	
 
	
 

	
By:
	
/s/ Mike Faircloth
	
 
	
By:
	
/s/ Thomas H. Caudle, Jr.

	
Name:
	
Mike Faircloth
	
 
	
Name:
	
Thomas H. Caudle, Jr.

	
Title:
	
Group President, Global Supply Chain, IT and E-Commerce
	
 
	
 

Title:
	
President and Chief Operating Officer

	
Date:
	
June 27, 2018
	
 
	
Date:
	
June 29, 2018Exhibit

Exhibit 10.12.1

       
Confidentiality and Business Protection Agreement

This Confidentiality and Business Protection Agreement (“Agreement”) is hereby entered into by and between Patrice B. Morrison (“Executive”) and Cardinal Health, Inc., an Ohio Corporation (the “Company”), effective as of June 28, 2018.  

           It is hereby agreed as follows: 

1.Consideration and Acknowledgements.  The parties acknowledge that the provisions and covenants contained in this Agreement are ancillary and material to, and in consideration of, retirements benefits being negotiated between the parties and that the limitations contained herein are reasonable in geographic and temporal scope and do not impose a greater restriction or restraint than is necessary to protect the goodwill and other legitimate business interests of the Company.  The parties also acknowledge and agree that the provisions of this Agreement do not adversely affect Executive's ability to earn a living in any capacity that does not violate the covenants contained herein.  The parties further acknowledge and agree that the provisions of Section 9(a) below are accurate and necessary because (i) this Agreement is entered into in the State of Ohio, (ii) Ohio has a substantial relationship to the parties and to this transaction, (iii) Ohio is the headquarters state of the Company, which has operations worldwide and has a compelling interest in having its employees treated uniformly, (iv) the use of Ohio law provides certainty to the parties in any covenant litigation in the United States, and (v) enforcement of the provisions of this Agreement would not violate any fundamental public policy of Ohio or any other jurisdiction. 

2.Confidential Information.  Executive shall hold in a fiduciary capacity for the benefit of the Company and all of its subsidiaries, partnerships, joint ventures, limited liability companies and other affiliates (collectively, the "Cardinal Group"), all secret or confidential information, knowledge or data relating to the Cardinal Group and its businesses (including, without limitation, any proprietary and not publicly available information concerning any processes, methods, trade secrets, research, secret data, costs, names of users or purchasers of their respective products or services, business methods, operating procedures or programs or methods of promotion and sale) that Executive has obtained or obtains during Executive's employment by the Cardinal Group and that is not public knowledge (other than as a result of Executive's violation of this Agreement) ("Confidential Information").  For the purposes of this Agreement, information shall not be deemed to be publicly available merely because it is embraced by general disclosures or because individual features or combinations thereof are publicly available.  Executive shall not communicate, divulge or disseminate Confidential Information at any time during or after Executive's employment with the Cardinal Group, except with prior written consent of the applicable Cardinal Group company, or as otherwise required by law or legal process.  All records, files, memoranda, reports, customer lists, drawings, plans, documents and the like that Executive uses, prepares or comes into contact with during the course of Executive's employment shall remain the sole property of the Company or the Cardinal Group company, as applicable, and shall be turned over to the applicable Cardinal Group company upon termination of Executive's employment. 

3.Non-Recruitment of Cardinal Group Employees, etc.  Executive shall not, at any time during the Restricted Period (as defined below), without the prior written consent of the Company, engage in the following conduct (a "Solicitation"): (i) directly or indirectly, including via social media or professional networking services, solicit, recruit or employ (whether as an employee, officer, director, agent, consultant or independent contractor) any person who is or was at any time during the previous twelve months an employee, representative, officer or director of the Cardinal Group; or (ii) take any action to encourage or induce any employee, representative, 

officer or director of the Cardinal Group to cease his or her relationship with the Cardinal Group for any reason.  A "Solicitation" does not include any recruitment of employees within or for the Cardinal Group.  The "Restricted Period" means the period from the date of this Agreement until twenty-four months after Executive’s retirement date.  The Restricted Period shall be extended and its expiration tolled by the time period in which Executive is in breach of any covenant in this Agreement to ensure that Executive does not benefit from any breach and that the Company receives the full benefit of two years protection from unfair competition on which it has relied in entering into this Agreement.

4.No Competition -- Solicitation of Business.  During the Restricted Period, Executive shall not (either directly or indirectly or as an officer, agent, employee, partner, consultant or director of any other company, partnership or entity) solicit, service or accept on behalf of any competitor of the Cardinal Group the business of (i) any customer of the Cardinal Group during the time of Executive's employment or at date of termination of employment, or (ii) any potential customer of the Cardinal Group which Executive knew to be an identified, prospective purchaser of products or services of the Cardinal Group.

5.No Competition -- Employment by Competitor.  During the Restricted Period, Executive shall not invest in (other than in a publicly traded company with a maximum investment of no more than 1% of outstanding shares), counsel, advise or be otherwise engaged or employed by any entity or enterprise that is in competition with the business conducted by any member of the Cardinal Group (other than a business that is not a significant business to the Cardinal Group as a whole or to the entity or enterprise as a whole).

6.No Disparagement.

(a)             Executive and the Company shall at all times refrain from taking actions or making statements, written or oral, that (i) denigrate, disparage or defame the goodwill or reputation of Executive or the Cardinal Group, as the case may be, or any of its trustees, officers, security holders, partners, agents or former or current employees and directors, or (ii) are intended to, or may be reasonably expected to, adversely affect the morale of the employees of the Cardinal Group.  Executive further agrees not to make any negative statements to third parties relating to Executive's employment or any aspect of the businesses of the Cardinal Group and not to make any statements to third parties about the circumstances of the termination of Executive's employment or about the Cardinal Group or its trustees, directors, officers, security holders, partners, agents or former or current employees and directors, except as may be required by a court or governmental body. 

(b)             Executive further agrees that, following termination of employment for any reason, Executive shall assist and cooperate with the Company with regard to any matter or project in which Executive was involved during Executive's employment with the Company, including but not limited to any litigation that may be pending or may arise after such termination of employment.  Further, Executive agrees to notify the Company at the earliest opportunity of any contact that is made by any third parties concerning any such matter or project.  The Company shall not unreasonably request such cooperation of Executive and shall cooperate with Executive in scheduling any assistance by Executive, taking into account Executive’s business and personal affairs, and shall compensate Executive for any lost wages or expenses associated with such cooperation and assistance. 

7.Inventions.  All plans, discoveries and improvements, whether patentable or unpatentable, made or devised by Executive, whether alone or jointly with others, from the date of Executive's initial employment by the Company and continuing until the end of any period during which Executive is employed by the Cardinal Group, relating or pertaining in any way to 

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Executive's employment with or the business of the Cardinal Group, shall be promptly disclosed in writing to the Company’s Chief Legal and Compliance Officer and are hereby transferred to and shall redound to the benefit of the Company, and shall become and remain its sole and exclusive property.  Executive agrees to execute any assignment to the Company or its nominee, of Executive's entire right, title and interest in and to any such discoveries and improvements and to execute any other instruments and documents requisite or desirable in applying for and obtaining patents, trademarks or copyrights, at the expense of the Company, with respect thereto in the United States and in all foreign countries, that may be required by the Company.  Executive further agrees at all times to cooperate to the extent and in the manner required by the Company in the prosecution or defense of any patent or copyright claims or any litigation or other proceeding involving any trade secrets, processes, discoveries or improvements covered by this Agreement, but all necessary expenses thereof shall be paid by the Company.

8.Acknowledgement and Enforcement.  Executive acknowledges and agrees that: (a) the purpose of the foregoing covenants, including without limitation the noncompetition covenants of Sections 4 and 5, is to protect the goodwill, trade secrets and other Confidential Information of the Company; (b) because of the nature of the business in which the Cardinal Group is engaged and because of the nature of the Confidential Information to which Executive has access, the Company would suffer irreparable harm and it would be impractical and excessively difficult to determine the actual damages of the Cardinal Group in the event Executive breached any of the covenants of this Agreement; and (c) remedies at law (such as monetary damages) for any breach of Executive's obligations under this Agreement would be inadequate.  Executive therefore agrees and consents that if Executive commits any breach of a covenant under this Agreement or threatens to commit any such breach, the Company shall have the right (in addition to, and not in lieu of, any other right or remedy that may be available to it) to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage.  If any of the covenants contained in this Agreement are finally held by a court to be invalid, illegal or unenforceable (whether in whole or in part), such covenant shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability and the remaining covenants shall not be affected thereby; provided, however, that if any of such covenants is finally held by a court to be invalid, illegal or unenforceable because it exceeds the maximum scope or duration determined to be acceptable to permit such provision to be enforceable, such covenant will be deemed to be modified to the minimum extent necessary to modify such scope or duration in order to make such provision enforceable hereunder.

9.Miscellaneous.

(a)            This Agreement shall be governed by and construed in accordance with the laws of the State of Ohio, without reference to principles of conflict of laws.  If, under any such law, any portion of this Agreement is at any time deemed to be in conflict with any applicable statute, rule, regulation or ordinance, such portion shall be deemed to be modified or altered to conform thereto.  The parties hereto irrevocably agree to submit to the jurisdiction and venue of the courts of the State of Ohio in any action or proceeding brought with respect to or in connection with this Agreement.  The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.  This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof.  This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives.  This Agreement is the product of negotiation and shall not be construed strictly for or against any party.

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(b)             All notices and other communications under this Agreement shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

	
		
	If to Executive:
	At the most recent address on file for Executive at the Company

	 
	 

	If to the Company:
	Cardinal Health, Inc.

	 
	7000 Cardinal Place

	 
	Dublin, OH

	 
	Attn: Chief  Legal and Compliance Officer

or to such other address as either party shall have furnished to the other in writing in accordance herewith.  Notice and communications shall be effective when actually received by the addressee.

(c)             The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.  If any provision of this Agreement shall be held invalid or unenforceable in part, the remaining portion of such provision, together with all other provisions of this Agreement, shall remain valid and enforceable and continue in full force and effect to the fullest extent consistent with the law.

(d)              Executive's or the Company's failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right Executive or the Company may have hereunder, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.

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IN WITNESS WHEREOF, Executive has hereunto set Executive's hand and the Company has caused these presents to be executed in its name and on its behalf, all as of the day and year first above written.

/s/ Patricia B. Morrison            
Patricia B. Morrison
Execution Date: 6-28-18        

CARDINAL HEALTH, INC.

/s/ Pamela O. Kimmet            
By: Pamela O. Kimmet
Its: Chief Human Resources Officer
Execution Date: 6-28-18        

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