1 EXHIBIT 10.1 THE LUPTON COMPANY, LLC 702 TALLAN BUILDING TWO UNION SQUARE CHATTANOOGA, TENNESSEE 37402 January 19, 1999 PERSONAL AND CONFIDENTIAL Ms. Cindy L. Davis The Arnold Palmer Golf Company 6201 Mountain View Road Ooltowah, TN 37363 Re: Arnold Palmer Golf Company - Term Loans and Revolving Credit Loan of Northern Trust Company Dear Cindy: The John T. Lupton Trust U/W Thomas Cartter Lupton ("Trust") acquired the following loans of Northern Trust Company to the Arnold Palmer Golf Company ("APGC") on October 30, 1998. 1. The term loan to APGC (the "Borrower") evidenced by that certain Term Note dated as of December 30, 1996 of the Borrower payable to the order of the Bank in the original amount of $12,000,000. 2. The term loan to APGC evidenced by that certain Term Note dated as of December 29, 1997 of the Borrower payable to the order of the Bank in the original amount of $10,000,000. 3. The revolving credit loan to APGC evidenced by that certain $12,000,000 face amount Master Note dated as of December 29, 1997. The purpose of this letter is to confirm to you that the Trust has agreed to place the notes representing such loans on a non-accrual basis for the period from the date of such acquisition through December 31, 1998. As a result, there will be no obligation on the part of APGC 2 January 19, 1999 Page 2 to pay interest on such Notes for such period. Yours very truly, JOHN T. LUPTON TRUST U/W THOMAS CARTER /s/ David S. Gonzenbach -------------------------------- David S. Gonzenbach Trustee /s/ John T. Lupton -------------------------------- John T. Lupton Trustee /s/ Joel W. Richardson, Jr. -------------------------------- Joel W. Richardson, Jr., Trustee