Exhibit 10.1
February 20, 1998
Hyde Athletic Industries, Inc.
00 Xxxxxxxxxx Xxxxx
Xxxxxxx, XX 00000
Attention: Xx. Xxxxxxx Xxxxxxxxx, Executive Vice President
Ladies and Gentlemen:
State Street Bank and Trust Company (the "Bank") has made available to Hyde
Athletic Industries, Inc. (the "Borrower") a $15,000,000 revolving credit
facility and a $15,000,000 demand line of credit each as described in a Loan
Agreement by and between the Borrower and the Bank (as amended, the "Loan
Agreement"). Terms not otherwise defined herein shall be used as defined in the
Loan Agreement. The Borrower has informed the Bank that borrowings under new
credit facilities to be provided by the Bank to subsidiaries of the Borrower
(the "New Credit Facilities") may be in violation of Section 4.11 of the Loan
Agreement, which requires an annual 30-day period during which there are no
outstanding borrowings. The Borrower has requested that the Bank enter into
this letter agreement regarding any future violation of Section 4.11 which may
be caused by borrowings under the New Credit Facilities, and the Bank has agreed
to do so, provided that the terms of this letter agreement expire on or before
July 31, 1998.
Therefore, for good and valuable consideration, the receipt of which is hereby
acknowledged, the Borrower and the Bank hereby agree that (I) regardless of the
frequency or timing of borrowings under the New Credit Facilities, no such
borrowing shall be deemed to be a violation of Section 4.11 of the Loan
Agreement and (ii) the terms of this letter agreement shall terminate upon the
earlier to occur of (a) the execution of redocumentation for the credit facility
evidenced by the Loan Agreement or (b) July 31, 1998.
This agreement relates only to Section 4.11 of the Loan Agreement as the same
may apply to borrowings under the New Credit Facilities. This agreement shall
not be deemed to be a waiver of any other violation of Section 4.11, future or
otherwise, or of any other term of the Loan Agreement or any related document.
All terms and conditions of the Loan Agreement and all documents executed in
connection therewith are ratified and affirmed as of the date hereof and the
Borrower represents and warrants to the Bank that no default or event of default
has occurred thereunder as of the date hereof.
If the foregoing is acceptable to you, please have an authorized officer of the
Borrower execute this letter agreement below where indicated and return the same
to the undersigned.
Very truly yours,
State Street Bank and Trust Company
By: /s/ Xxxxxxx X. Xxxx
-----------------------
Xxxxxxx X. Xxxx, Vice President
Accepted and Agreed:
Hyde Athletic Industries, Inc.
By: /s/ Xxxxxxx X. Xxxxxxxxx
--------------------------
Title: Executive Vice President
------------------------
