EXHIBIT (10)(II)(VI)
March 20, 1998
Nantucket Industries, Inc.
000 Xxxxxxxxxxx Xxxx, Xxxxx 000
Xxxxxxxx, Xxx Xxxx 00000
Re: Extension of Effective Date of Termination of Financing
Agreement
Gentlemen:
Reference is made to the Loan and Security Agreement, dated
March 21, 1994 (as previously amended, the "Loan Agreement") between Congress
Financial Corporation ("Lender") and Nantucket Industries, Inc. ("Borrower"),
and to the other Financing Agreements referred to in the Loan Agreement
(collectively, with the Loan Agreement, the "Financing Agreements"). Capitalized
terms used herein and not otherwise defined herein shall have the meanings
assigned to them in the Loan Agreement.
Reference is also made to the letter re: Termination of
Financing Agreements, dated January 16, 1998, from Lender to Borrower ("Notice
of Termination"), by which letter Lender gave Borrower notice that the financing
arrangements under the Loan Agreement and other Financing Agreements shall
terminate effective as of March 20, 1998 (the "Termination Date").
In consideration of the mutual agreements contained herein and
other good and valuable consideration, Borrower and Xxxxxx hereby agree as
follows:
1. Extension of Termination Date. Solely as an accommodation to Borrower, in
order to permit Borrower additional time to arrange for refinancing or make
other arrangements for the payment and satisfaction in full of the Obligations,
Lender hereby agrees with Borrower that, notwithstanding the effective date of
termination pursuant to the Notice of Termination, the Termination Date shall be
extended to May 20, 1998, on which date all of Borrower's Obligations to Lender
under the Financing Agreements will automatically become due and payable,
without further notice, and all obligations of Lender to provide further
financing to Borrower will automatically cease, without further notice.
2. MISCELLANEOUS.
(a) FURTHER ASSURANCES. Borrower shall execute and deliver such
additional documents and take such additional action as may be requested by
Lender to effectuate the provisions and purposes of this letter agreement.
(b) EFFECT OF THIS LETTER AGREEMENT. This letter agreement
contains the entire agreement of the parties with respect to the subject matter
hereof and supersedes all correspondence, memoranda, communications, discussions
or negotiations with respect thereto. No existing defaults or Events of Default
and no rights or remedies of Lender have been or are being waived hereby, and
the Notice of Termination, as modified by the terms hereof, remains in effect.
No changes or modifications to the Financing Agreements have been or are being
made or are intended hereby, and, subject to the Notice of Termination, as
modified by the terms hereof, in all other respects the Financing Agreements are
hereby specifically ratified, restated and confirmed by all parties hereto as of
the date hereof. Lender hereby reserves all of its rights and remedies set forth
in the Financing Agreements, whether exercisable on or prior to the Termination
Date or in connection with such termination or otherwise. In the event that any
term or provision of this letter agreement conflicts with any term or provision
of the other Financing Agreements, the term or provision of this letter
agreement shall control.
(c) COUNTERPARTS. This letter agreement may be executed and
delivered in counterparts.
Very truly yours,
CONGRESS FINANCIAL CORPORATION
By: /s/ Xxxxxxxxx Xxxxxx
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Title: Vice President
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AGREED:
NANTUCKET INDUSTRIES, INC.
By:/s/ Xxxxxx Xxxxxxx
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Title: CEO
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CONSENT AND AGREEMENT
The undersigned guarantor hereby consents to the foregoing
letter agreement and ratifies and confirms the terms of its Guarantee in favor
of Lender as applicable to all present and future indebtedness, liabilities and
obligations of Borrower to Lender, including, without limitation, all
indebtedness, liabilities and obligations under the Financing Agreements,
including the foregoing letter agreement.
NANTUCKET XXXXX, INC.
By: /s/ Xxxxxx Xxxxxxx
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Title: CEO
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