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EXHIBIT 10.27
Ellen Tracy, Inc.
565 Seventh Avenue
New York, New York 10018
June 17, 1998
Mr. Hugh Gaither
President
Ridgeview, Inc.
2101 North Main Street
Newton, North Carolina 28658
Dear Mr. Gaither:
This will confirm that, pursuant to Sections 3 and 27 of the License
Agreement between Ellen Tracy, Inc. and Ridgeview, Inc. ("Licensee"), dated as
of January 1, 1994 ("Agreement"), as extended and amended by a letter dated
October 22, 1996 between us, the Agreement is further extended, for a three-year
term, to December 31, 2000 ("Renewal Term").
Pursuant to Section 27 of the Agreement, this will also confirm that
the Agreement is modified to provide that, during the Renewal Term, Licensee
will be required to pay Guaranteed Minimum Royalties, to make the Projected
Annual Sales (both as defined in Section 4(b) of the Agreement) and to expend
the National Advertising Amount (as defined in Section 5(b) of the Agreement) in
the following amounts:
For Annual Period Projected Annual Sales Guaranteed Minimum National Advertising
Commencing Royalties Amount
January 1, 1998 $6,500,000 $400,000 $300,000
January 1, 1999 $7,500,000 $475,000 $400,000
January 1, 2000 $8,000,000 $525,000 $425,000
Except as expressly modified hereby, the Agreement shall remain in full
force and effect.
Please indicate your agreement by signing where indicated below, and
return your original signed copy of this letter to me.
Sincerely,
Ellen Tracy, Inc.
By: /s/ Howard Rosenberger
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Howard Rosenberger
Agreed and accepted:
Ridgeview, Inc.
By: /s/ Hugh R. Gaither
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President and CEO
Date: 6-25-98
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