Item 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
On November 6, 2009, Unifi Manufacturing, Inc. (the "Company"), a wholly owned subsidiary of Unifi, Inc. (the "Registrant"), entered into a Yarn Purchase Agreement (the "Agreement") with Hanesbrands Inc. ("HBI"). Pursuant to the Agreement, HBI will purchase certain yarns (the "Products") from the Company to fulfill a substantial portion of HBI's Products requirements in the Western Hemisphere. The Agreement shall have an initial term which will expire on the third anniversary of the Agreement, provided that upon the consent of both HBI and the Company the Agreement may be extended for successive one year terms. The Agreement may be terminated by either party upon the occurrence of certain specified events, such as the insolvency of either party or a breach of the terms of the Agreement by the other party which has not been cured in the appropriate time. In addition the Agreement may be terminated by HBI, following notice, if the Company fails to deliver Products in conformity with HBI's specifications, or terminated by the Company due to nonpayment by HBI. The prices for the Products are either set forth in the Agreement or will be determined from time to time in accordance with the Agreement.
The above description of the Agreement is qualified in its entirety by reference to the full text of the Agreement, a copy of which will be filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ended December 27, 2009, with portions omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment.

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