March 31, 1998
Donnkenny Apparel, Inc.
Xxxxxxx Industries Corporation
Megaknits, Inc.
0000 Xxxxxxxx
Xxx Xxxx, Xxx Xxxx
Re: Credit Agreement dated as of June 5, 1995, as
amended to date (the "Credit Agreement"), among
Donnkenny Apparel, Inc., Xxxxxxx Industries
Corporation, Megaknits, Inc., (the "Borrower"),
the Lenders named therein, the Guarantors named
therein, the CIT Group/Commercial Services, Inc.,
as Administrative Agent and The Chase Manhattan
Bank, as Agent for such Lenders
-------------------------------------------------
Gentlemen:
Reference is made to the Credit Agreement, and particularly, Section 7.11,
Pre-Tax Income.
We understand that Borrowers were not in compliance with said covenant for
the period ended December 31, 1997 and have requested that the Lenders waive
compliance for such period.
The Lenders hereby agree to waive compliance with Section 7.11 solely
for the period ended December 31, 1997. Lender's waiver is specific for the
period ended December 31, 1997, and is not intended to waive the provisions of
any other section of the Credit Agreement.
Very truly yours,
THE CHASE MANHATTAN BANK
By: /s/ Xxx Xxxxx
---------------------------------
Name: Xxx Xxxxx
Title: Vice President
THE CIT GROUP/COMMERCIAL SERVICES,
INC.
By: /s/ Xxxx Xxxxxx
---------------------------------
Name: Xxxx Xxxxxx
Title: Associate Vice President
THE BANK OF NEW YORK,
By:
---------------------------------
Name: Xxxxxx Xxxxxxx
Title: Vice President
FLEET BANK N.A.
By: /s/ Xxx X. Xxxxxxx
---------------------------------
Name: Xxx X. Xxxxxxx
Title: Vice President
