GMAC Commercial Credit LLC
August 23, 2000
Signal Apparel Company, Inc.
00 Xxxxxxxxx Xxxxxx
Xxxxxx, Xxx Xxxxxx 00000
Gentlemen:
Reference is made to the Revolving Credit, Term Loan and Security Agreement
dated March 12, 1999 ( as amended from time to time, the "Credit Agreement") by
and among SIGNAL APPAREL COMPANY, INC. ("Borrower") and GMAC COMMERCIAL CREDIT
LLC, as Agent (in such capacity, "Agent") for the lenders ("Lenders") parties
from time to time to the Credit Agreement. All capitalized terms used and not
otherwise defined herein shall have the respective meanings ascribed to them in
the Credit Agreement.
1. By letter Agreement dated August 14, 2000, the Lenders extended the
date for Borrower to comply with the provisions of Section 2.1(d)(ii)
of the Credit Agreement (the "Clean-Up Provision") from August 7, 2000
to August 15, 2000. As of the date of this letter, Borrower is not in
compliance with the Clean-Up Provision. As a result of such
noncompliance, Events of Default have occurred under Section 10.5 of
Article X (Events of Default) and Section 2.1(d) of Article II
(Advances, Payments) of the Credit Agreement. Borrower has requested
Lenders to extend the date for compliance with the Clean-Up Provision
from August 15, 2000 to August 30, 2000. Lenders hereby extends the
date for payment of the Clean-Up Provision to August 30, 2000, at
which time payment shall be due and payable to Lenders in an amount
equal to the amount which would have been due and payable had such
payment been made on August 7, 2000.
2. Except as specifically set forth herein, no other changes or
modifications to the Credit Agreement are intended or implied and, in
all other respects, the Credit Agreement shall continue to remain in
full force and effect in accordance with its terms as of the date
hereof. Except as specifically set forth herein, nothing contained
herein shall evidence a waiver or an amendment by Agent or Lenders of
any other provision of the Credit Agreement, including without
limitation, Section 2.6 of the Credit Agreement, nor of the specific
provisions referred to above for any other time period.
3. The terms and provisions of this Agreement shall be for the benefit of
the parties hereto and their respective successors and assigns; no
other person, entity or corporation shall have any right, benefit or
interest under this Agreement.
4. This Agreement may be signed in counterparts, each of which shall be
an original and all of which taken together constitute one agreement.
In making proof of this Agreement, it shall not be necessary to
produce or account for more than one counterpart signed by the party
to be charged
5. This Agreement sets forth the entire agreement and understanding of
the parties with respect to the matters set forth herein. This
agreement cannot be changed, modified or terminated except in a
writing executed by the party to be charged.
Very truly yours,
GMAC COMMERCIAL CREDIT LLC,
As Agent
By: /s/ Xxxxxxx X. Xxxxxxxxx
Xxxxxxx X. Xxxxxxxxx
Executive Vice President
Acknowledge and Agreed:
Signal Apparel Company, Inc.
/s/ Xxxxxx X. Xxxxxx
By: Xxxxxx X. Xxxxxx
Title: Vice President
