from 10-K
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<page> March 31, 1998 Donnkenny Apparel, Inc. Beldoch Industries Corporation Megaknits, Inc. 1411 Broadway New York, New York Re: Credit Agreement Dated as of June 5, 1995, as Amended to Date (The "Credit Agreement"), Among Donnkenny Apparel, Inc., Beldoch 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. <page> 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/ Jay Linde Name: Jay Linde Title: Vice President the Cit Group/Commercial Services, Inc. By: /S/ Lori Kudish Name: Lori Kudish Title: Associate Vice President the Bank of New York, By: Name: Joanne Collett Title: Vice President Fleet Bank N.A. By: /S/ Amy H. Witryol Name: Amy H. Witryol Title: Vice President
