[XXXX XXXXXXX & CO. LETTERHEAD]
VIA FACSIMILE and FEDERAL EXPRESS
August 27, 1999
Xxxxxxx Xxxxxxxx
Chairman and CEO
Jewelcor Management, Inc.
000 Xxxxx Xxxxxx-Xxxxx Xxxx., 0xx Xxxxx
Xxxxxx-Xxxxx, XX 00000
Re: The Designs, Inc./Xxxx Xxxxxxx & Co. License Agreement
Dear Xx. Xxxxxxxx:
Thank you for your letter of August 16, 1999. You had told me, when
you called me on July 29, 1999, that you and perhaps others from your group
desired to meet with representatives of Xxxx Xxxxxxx & Co. We assumed you
wanted to furnish us with the information we had requested last May, and
also try to persuade us to waive our rights under our License Agreement
with Designs. I expressed to you LS&CO.'s willingness to participate in
such a meeting.
We advise you, again, that LS&CO. believes the displacement of
current Designs directors by Jewelcor nominees falls within Section 19 of
the License Agreement. I mention this because your revised proxy materials
state then, if and after the Jewelcor nominees are elected, they will seek
to have LS&CO. confirm that their election does not fall within Section 19.
The nominees already have LS&CO.'s views on that subject, i.e., before the
election.
Finally, though I am reluctant to entertain this sort of diversion,
let me say that I am genuinely perplexed by your letter's assertions about
"ad hominem comments" and "shoddy business practices." There is nothing,
expressed or implied, in my letter that remotely fits that description.
Very truly yours,
/s/ Xxxxxx Xxxxxx
Xxxxxx Xxxxxx
Vice President, Finance, Business
Development
Cc: Xxxx Xxxxxxxx
