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EXHIBIT 10.6.2

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [*], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO DELTA APPAREL, INC. IF PUBLICLY DISCLOSED.

 

SECOND AMENDMENT TO YARN SUPPLY AGREEMENT

 

This Second Amendment to the Yarn Supply Agreement (this “Second Amendment”) is made as of the 21st day of October, 2011, by and between Parkdale Mills, Inc., 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 “Agreement”); and

 

WHEREAS, Parkdale and Delta desire to amend the Agreement as set forth in this Second 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 Second Amendment shall have the meanings ascribed thereto in the Agreement;

 

2.         The Term of the Agreement is hereby extended until March 31, 2013.

 

3.         Effective as of January 1, 2012, Exhibit 1B shows the adjusted conversion prices for Open End and Air Jet spun yarns.  Effective April 1, 2012, Exhibit 2B shows the adjusted conversion prices for the Ring Spun yarns. Exhibit C is unchanged.

 

4.         Except as expressly set forth in this Second 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 Second Amendment and any of the terms and conditions of the Agreement, the terms and conditions of this Second Amendment shall control.     

 

5.         This Second 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. 

 

6.         This Second 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. 

 

 

 

 

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

 

PARKDALE MILLS, INC.

 

By: /s/ Charles S. Heilig III

 

Name: Charles S. Heilig III

 

Title: Executive V.P.

 

PARKDALE AMERICA LLC

 

By: /s/ Charles S. Heilig III

 

Name: Charles S. Heilig III

 

Title: Executive V.P.

 

DELTA APPAREL, INC.

 

By: /s/ Robert W. Humphreys

 

Name: Robert W. Humphreys

 

Title: Chairman & CEO

 

 

 

 

Exhibit 1B

Effective January 1, 2012

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

 

	
			Conversion

			

 

	
			Polyester / Cotton

			

 

	
			Waste 

			

 

	
			$ per pound

			

 

	
			8/1 50/50 (OES Backing)

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			10/1 50/50 (OES Backing)

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			12/1 50/50 (OES Backing)

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			15/1 50/50 (OES Backing)

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			14/1 50/50 (OES)

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			16/1 50/50(OES)

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			18/1 50/50(OES)

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			20/1 50/50(OES)

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			22/1 50/50(OES)

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			26/1 50/50 (OES)

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			Air Jet

			

 

	
			12/1 100% AJ

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			18/1 100% AJ

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			20/1 100% AJ

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			20.5/1 100% AJ

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			22/1 100% AJ

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			16/1 50/50 AJ

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			26/1 50/50 AJ

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			27/1 50/50 AJ

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			28/1 50/50 AJ

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			100% Open End

			

 

	
			14/1 100% KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			16/1 100% KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			17/1 100% KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			17.5/1 100% KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			18/1 100% KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			19/1 100% KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			20/1 100% KPOE Soft Spun

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			20/1 100% KPOE Style Spun

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			20/1 100% KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			22/1 100% KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			24/1 100% KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			26/1 100% KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			28/1 100% KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			30/1 100% KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

 

 

 

 

 

 

	
			Open End Heather

			

 

	
			14/1 90/10 KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			16/1 90/10 KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			17/1 90/10 KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			18/1 90/10 KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			20/1 90/10 KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			22/1 90/10 KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			24/1 90/10 KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			28/1 90/10 KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			30/1 90/10 KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			14/1 99/1 KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			16/1 99/1 KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			17/1 99/1 KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			18/1 99/1 KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			20/1 99/1 KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			22/1 99/1 KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			26/1 99/1 KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			30/1 99/1 KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			18/1 70/30 cotton/blk poly KPOE

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			Tri-Blend

			

 

	
			14/1 50/40/10  Open End

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			16/1 50/40/10 Open End

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			18/1 50/40/10 Open End

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			20/1 50/40/10  Open End

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			22/1 50/40/10  Open End

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			26/1 50/40/10  Open End

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			14/1 50/49/1 Open End

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			16/1 50/49/1 Open End

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			18/1 50/49/1 Open End

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			20/1 50/49/1 Open End

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			22/1 50/49/1 Open End

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			26/1 50/49/1 Open End

			

 

	
			[*]

			

 

	
			[*]

			

 

 

[*] Text omitted for confidential treatment. The redacted information has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

Exhibit 2B

Effective April 1, 2012

Conversion Prices for Ring Spun Yarn

	
			Ring Spun

			

 

	
			16/1 100% KPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			18/1 100% KPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			20/1 100% KPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			22/1 100% KPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			26/1 100% KPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			28/1 100% KPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			16/1 100% CPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			18/1 100% CPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			20/1 100% CPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			22/1 100% CPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			24/1 100% CPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			26/1 100% CPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			30/1 100% CPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			32/1 100% CPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			36/1 100% CPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			18/1 50/50 CPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			20/1 50/50 CPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			22/1 50/50 CPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			24/1 50/50 CPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			26/1 50/50 CPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			30/1 50/50 CPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			40/1 100% CPRS  

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			Ring Spun Heather

			

 

	
			16/1 90/10 KPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			18/1 90/10 KPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			19/1 90/10 KPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			20/1 90/10 KPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			22/1 90/10 KPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			30/1 90/10 KPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			18/1 90/10 CPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			22/1 80/20 CPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

	
			30/1 80/20 CPRS

			

 

	
			[*]

			

 

	
			[*]

			

 

 

 

[*] Text omitted for confidential treatment. The redacted information has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

This Exhibit 1B and Exhibit 2B 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.       

 

[*] Text omitted for confidential treatment. The redacted information has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

 

 

 

Exhibit C

Cotton Pricing:

 

Parkdale is responsible for purchasing the cotton.  Delta is responsible for fixing the cotton price in accordance with the existing yarn pricing formula in place with the Agreement and the following procedure:

 

For each period during the term of the Agreement, Delta shall prior to the respective dates set forth below (i) deliver fixation orders to Parkdale in writing for cotton at a price per pound or a range of acceptable prices per pound for the applicable NY futures cover month in multiples of 100 bales or (ii) transfer to a brokerage account of Parkdale an equivalent number of ICE cotton futures.

 

Schedule for Cotton Price Fixations

 

Months                       Prices to be fixed no later than:           Cover Month

 

Jan, Feb, Mar              The latest business day closest to

 

but not exceeding December 25th                   March

 

Apr, May                     The latest business day closest to

 

but not exceeding March 25th                         May

 

Jun, Jul                        The latest business day closest to

 

but not exceeding May 25th                            July

 

Aug, Sep                     The latest business day closest to

 

but not exceeding July 25th                             October

 

Oct, Nov, Dec             The latest business day closest to

 

but not exceeding September 24th                  December

 

In the event that the number of bales fixed for any pricing period exceeds the actual cotton content of the yarn delivered by Parkdale during such period, the excess cotton fixation will be rolled forward to the next period at the price for the current period and Delta shall reimburse Parkdale’s carrying costs for the excess cotton fixation until such fixation is exhausted.   Carrying costs are [*] per bale per month and shall accrue after two weeks of the following period (e.g. unused cotton on March 31st will be subject to carrying charges if still unused on April 14th.  Accrued carrying costs shall be paid by Delta on a pricing period basis or upon demand by Parkdale.

 

[*] Text omitted for confidential treatment. The redacted information has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

In the event that the actual cotton content of the yarn delivered by Parkdale during such period exceeds the number of bales fixed for that period Delta may elect to cover the shortfall using the next period’s fixations at the next period’s price.

 

 

 

For example assume 8,000 bales are fixed for the second period basis May at 50 cents and 5,000 bales are fixed for the third period basis July at 52 cents.  The actual cotton consumed for the second period is 10,000 bales.  Delta may elect to utilize fixations for 2,000 bales from the third period at 52 cents.  In this case, fixations for 2,000 bales would be rolled to the second period making the second period’s price the average of .5040 (8,000 @ .5000 and 2,000 @ .5200).  There would then be fixations for 3,000 bales remaining for the third period at .5200.   

 

In the event that Delta fails to fix the price of cotton for any period prior to the respective date set forth above and Delta does not elect to roll fixations back, Parkdale shall have the right to fix the cotton price for that period.   If Delta fails to fix the price of cotton for any period in quantities that are sufficient for Parkdale to fulfill the purchase orders for yarn issued by Delta for delivery during that period the applicable market price for such excess yarn shall be equal to the price fixed by Parkdale if Parkdale manufactures such excess yarn from cotton delivered to it pursuant to futures contracts, or Parkdale’s cost to obtain cotton in the spot market if Parkdale manufactures such excess yarn from cotton purchased by it in the spot market.

 

The amount of cotton bales consumed in the period shall be based on invoice date and shall be derived using the following formula:

 

((Y x P) / (1-W))/500

 

Where:

 

 

 

Y = Pounds of Yarn

 

P = Percent of Cotton

 

W = Waste Factor in decimal format (for example: 5% would be

 

.05)

 

All fixation orders and executions must be promptly confirmed in writing by any of the respective representatives listed below or otherwise designated by written notice.

 

Individuals Responsible for Fixation Orders/Execution:

 

Delta                           Parkdale

 

 

 

Will McGhee               Jim Martin

 

Gene Frye

 

Andy Warlick

 

[*] Text omitted for confidential treatment. The redacted information has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.HTML Editor

EXHIBIT 10.6.3

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [*], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO DELTA APPAREL, INC. IF PUBLICLY DISCLOSED.

 

THIRD AMENDMENT TO YARN SUPPLY AGREEMENT

 

This Third Amendment to Yarn Supply Agreement (the “Third Amendment”) is made as of the 11th day of March, 2013, 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 (the Yarn Supply Agreement, First Amendment and Second 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 Third 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 Third Amendment shall have the meanings ascribed thereto in the Agreement;

 

2.         The Term of the Agreement is hereby extended until December 31, 2015.

 

3.         Section 5 of the Agreement is hereby amended and replaced in its entirety by the following:

 

 

 

Warranty and Indemnification. Parkdale represents and warrants as follows: (1) the Yarn delivered hereunder shall conform in all material respects to the Specifications and applicable laws, rules and regulations and shall be manufactured, produced and shipped in accordance with the Specifications and applicable laws, rules and regulations; (2) the Yarn shall be free from defects in materials and workmanship and that, at the time of delivery, Parkdale shall have good title and right to transfer and sell the same and that the same shall be delivered free of encumbrances; and (3) the Yarn shall be free from the claim of any person or entity arising from patent, trade secret, trademark, copyright or other proprietary or intellectual property right infringement except to the extent that any such claim arises as a result of the Specifications or other instructions provided to Parkdale by Delta. If Parkdale fails to deliver any Yarn hereunder free of encumbrances, Delta may reject such Yarn pursuant to SECTION 6 or Delta may, upon written notice to Parkdale, require that Parkdale, at its expense, defend the title thereto and promptly cause any security interest, claim, demand, lien, or other encumbrance to be removed. EXCEPT FOR THE WARRANTIES SET FORTH IN THIS SECTION 5, PARKDALE MAKES NO OTHER WARRANTIES OF QUALITY, AND PARKDALE HEREBY DISCLAIMS ALL OTHER WARRANTIES OF QUALITY, WHETHER EXPRESS OR IMPLIED, WHETHER CREATED BY CONTRACT OR BY OPERATION OF LAW, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTIBILITY AND FITNESS FOR A PARTICULAR PURPOSE.

 

Parkdale shall defend, indemnify and hold harmless Delta from and against any and all damages, claims, losses, expenses, costs, obligations, and liabilities, including without limiting the generality of the foregoing, liabilities for reasonable and documented attorney's fees (“Claims”), suffered by Delta directly by reason of or arising out of any breach of any representation or warranty made by Parkdale under this Agreement, except to the extent that any Claim arises as a result of Delta’s negligence, bad faith or willful misconduct.  Delta shall defend, indemnify and hold harmless Parkdale from and against any Claims brought against or incurred by Parkdale caused by the Specifications or other explicit written instructions provided by Delta to Parkdale in connection with the supply of Yarn under this Agreement, except to the extent that any Claim arises as a result of Parkdale’s negligence, bad faith or willful misconduct.

 

4.         Section 8 of the Agreement is hereby amended and replaced in its entirety by the following:

 

Purchase Orders. All sales of Yarn produced for Delta in accordance with this Agreement will be made pursuant to purchase orders submitted by Delta from time to time, the terms of which shall be controlled by the terms of this Agreement, regardless of whether such purchase orders reference this Agreement. To the extent the terms of a purchase order, Parkdale invoice, order acknowledgment or any other document exchanged between the parties conflict with the terms of this Agreement, the terms of this Agreement shall control.  To the extent the terms of a purchase order conflict with the terms of a Parkdale invoice, order acknowledgment or any other document originating from Parkdale, the terms of the purchase order shall control as between such documents.  Except as provided in SECTION 4(b) with respect to delivery schedules, each purchase order for Yarn submitted by Delta in accordance with the provisions of this Agreement shall be deemed automatically accepted by Parkdale, subject to the provisions of Section 4(b) with respect to delivery requirements.

 

5.         Effective as of May 1, 2013, Exhibits 1B and 2B of the Agreement are hereby amended and replaced in their entirety by Exhibit 3B attached hereto.   

 

6.         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

Steven E. Cochran

Deborah H. Merrill

 

7.         Except as expressly set forth in this Third 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 Third Amendment and any of the terms and conditions of the Agreement, the terms and conditions of this Third Amendment shall control.     

 

8.         This Third 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. 

 

9.         This Third 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. 

 

IN WITNESS WHEREOF, the parties have caused this Agreement 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/  Charles S. Heilig III                            By: /s/  Charles S. Heilig III

 

Name: Charles S. Heilig III                            Name: Charles S. Heilig III

 

Title: President                                                Title: President

 

DELTA APPAREL, INC.

 

By: /s/ Robert W. Humphreys

 

Name: Robert W. Humphreys

 

Title: Chairman & CEO

 

 

 

 

Exhibit 3B

Effective May 1, 2013

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

			
	 	 	 	 
	
			Y0800CPRS100 DL HTNSP 001891

				
			[*]

				 	
			[*]

			
	
			Y1600CPRS100 DL KTNWP 002169

				
			[*]

				 	
			[*]

			
	
			Y1800CPRS100 DL KTNWP 001894

				
			[*]

				 	
			[*]

			
	
			Y1800KPRS100 DL KTNWP 001890

				
			[*]

				 	
			[*]

			
	
			Y2000CPRS100 DL KTNWP 000899

				
			[*]

				 	
			[*]

			
	
			Y2000KPRS100 DL KTNWP 001890

				
			[*]

				 	
			[*]

			
	
			Y2000KPRS9406 DLOG KTNWC 000899

				
			[*]

				 	
			[*]

			
	
			Y2200CPRS100 DL KTNWP 002504

				
			[*]

				 	
			[*]

			
	
			Y2200CPRS9406 DLOG KTNWP 002504

				
			[*]

				 	
			[*]

			
	
			Y3000CPRS100 DL KTNWP 001824

				
			[*]

				 	
			[*]

			
	
			Y3000KPRS100 DL KCNWL 002954

				
			[*]

				 	
			[*]

			
	
			Y3000KPRS100 DL KTNWP 002954

				
			[*]

				 	
			[*]

			
	
			Y3600CPRS100 DL KTNWC 001887

				
			[*]

				 	
			[*]

			
	 	 	 	 
	 	 	 	 
	
			Y1800CPRS5050 NNDL KCNWP 001901

				
			[*]

				
			[*]

				
			[*]

			
	
			Y1800KPRS5050 URDL KCNWL 002388

				
			[*]

				
			[*]

				
			[*]

			
	
			Y1800KPRS9010 DLBP KCNWP 00002

				
			[*]

				
			[*]

				
			[*]

			
	
			Y2000CPRS5050 DWDL KCNWC 001901

				
			[*]

				
			[*]

				
			[*]

			
	
			Y2000KPRS841006 DLBPOGKCNWC 000007

				
			[*]

				
			[*]

				
			[*]

			
	
			Y2000KPRS9010 DLBK KCNWP 000007

				
			[*]

				
			[*]

				
			[*]

			
	
			Y2000KPRS9010 DLBP KCNWP 002282

				
			[*]

				
			[*]

				
			[*]

			
	
			Y2200CPRS5050 NNDL KCNWP 001901

				
			[*]

				
			[*]

				
			[*]

			
	
			Y2200CPRS752005DLBPOG KCNWP 000002

				
			[*]

				
			[*]

				
			[*]

			
	
			Y2200CPRS8020 DLBP KCNWP 000002

				
			[*]

				
			[*]

				
			[*]

			
	
			Y2400CPRS5050 NNDL KCNWP 001901

				
			[*]

				
			[*]

				
			[*]

			
	
			Y2400CPRS8020 DLBP KCNWP 000002

				
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			[*]

				
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			Y3000CPRS5050 NNDL KCNWP 002034

				
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			Y3000CPRS553510DMDLBPKCNWP 001909

				
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			Y3000CPRS6040 DLDM KCNWP 001926

				
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			Y3000CPRS6535 DMDL KTNWL 002471

				
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			Y3000KPRS5050 DMDL KTNWL 002471

				
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			Y3000KPRS9010 DLBP KCNWP 00007

				
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			Y0800KPOE5050 NGBD KTNWL 000002

				
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			Y1000KPOE8020 DLDV KTNWP 000044

				 	 	
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			Y1400KPOE100 DT KTNWD 000063

				
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			Y1400KPOE504010DLPEBPKTNWP 000044

				
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			Y1400KPOE504901DLPEBPKTNWP 000044

				
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			Y1400KPOE5050 DPDL KTNWL 000002

				
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			Y1500KPOE5050 NGBD KTNWL 000002

				
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			Y1600KPOE100 DL KTNWP 002729

				
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			Y1600KPOE504010DLPEBPKTNWL 000044

				
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			Y1600KPOE5050 DPDL KTNWL 000002

				
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			Y1600KPOE9010 DLBP HTNSP 000063

				
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			Y1800KPOE100 DL KTNWP 002936

				
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			Y1800KPOE504010DLPEBPKTNWP 000044

				
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			Y1800KPOE5050 DPDL KTNWL 000002

				
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			Y1800KPOE7030 DLBP KTNWP 000063

				
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			Y1800KPOE9010 DLBP KTNWP 000063

				
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			Y1800KPOE9901 DLBP KTNWP 000063

				
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			Y2000KPOE5050 DPDL KTNWL 000002

				
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			Y2200KPOE100 DL KTNWP 000063

				
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			Y2200KPOE9010 DLBP KTNWD 000002

				
			[*]

				
			[*]

				
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			Y2600KPOE100 DL KTNWP 000063

				
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			Y2600KPOE504010DLPEBPKTNWP 000044

				
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			Y2600KPOE504901DLPEBPKTNWL 000044

				
			[*]

				
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			Y2600KPOE5050 DPDL KTNWP 002871

				
			[*]

				
			[*]

				
			[*]

			
	
			Y3000KPOE100 DL KTNWC 000002

				
			[*]

				 	
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			Y3000KPOE100 DL KTSWP 000002

				
			[*]

				 	
			[*]

			
	
			Y3000KPOE100 DL KTSWP 000063

				
			[*]

				 	
			[*]

			
	 	 	 	 
	
			Y1200KPAJ100 NA KTNWL 001196

				 	
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			Y1600KPAJ5050 D4DL KTNWL 000007

				
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			[*]

				
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			Y2200KPAJ100 NP KTNWL 000007

				 	
			[*]

				
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			Y2700KPAJ5050 D4DL KTNWL 000007

				
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			Y3000KPVS100 DL KTNWD 000484

				
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			[*]

			

 

 

 

 

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.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00337-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00337-of-00352.parquet"}]]