Exhibit(4)(c)(10)
SEPARATE AGREEMENT WITH MELLON BANK
REGARDING CALCULATION OF FINANCIAL COVENANTS
MELLON BUSINESS CREDIT
September 10, 1998
Mr. Xxxx Xxxxxxxx
Chairman of the Board
X.X. Xxxxxx Company
000 X. Xxxxx Xxxxx
Xxxxxxxx, XX 00000
Dear Xxxx:
As you have requested, Mellon Business Credit has approved a modification in
the method of calculation of your financial covenants. With the change in the
date of expiration of the Term Facility to December 31, 1998, all of that debt
must be classified as short term for accounting purposes.
By this letter, Mellon approves that that portion of the Mellon Term Facility
that would otherwise have been due greater than one year hence, had the
expiration of the Term Facility not been modified, shall be permitted to be
classified as long term debt for covenant calculation purposes.
This modification will apply only through December 31, 1998. Failure by
X.X. Xxxxxx Company, Inc. to sell their Asheboro, NC facility and thus pay off
this term debt or seek an alternative solution acceptable to Mellon will
constitute an event of default.
Sincerely,
XXXXX X. XXXXX
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Xxxxx X. Xxxxx
Vice President
RDA:mjs
ACKNOWLEDGED:
XXXX X. XXXXXXXX
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Xxxx X. Xxxxxxxx
