10.	Subsequent Event.

The Company finances a substantial portion of its working capital requirements with borrowings under a long-term revolving bank line of credit, which is governed by that certain Third Amended and Restated Loan and Security Agreement, as amended (the “Credit Line Agreement”) entered into by the Company with Bank of America N. A., as lender (the “Bank”).

The Credit Line Agreement contains a single financial covenant which requires the Company to achieve a fixed charge coverage ratio of at least 1.10–to-1.0 for successive rolling 12 month periods ending on the last day of each fiscal quarter. The next of those rolling 12-month periods to which the covenant was to have been applicable was the 12 month period ending June 30, 2014. On August 12, 2014, the Company and the Bank entered into the 18th Amendment to the Credit Line Agreement (the “18th Amendment”), which provides, instead, that the next of those rolling 12-month periods to which that financial covenant will apply will be the 12 month period ending September 30, 2014. As a result, we were in compliance with our covenants under the Credit Line Agreement as of June 30, 2014.

The 18th Amendment also provides that the Company’s borrowing availability under the Credit Line will be reduced by $1.0 million until that fixed charge covenant is met. It also entitles the Bank, in its considered discretion, to reduce the Company’s borrowing availability under the credit line (i) based on the amount of any currency hedging obligations that the Company may incur in the future, and (ii) an amount equal to three months of the rent payable under any of the Company’s warehouse leases with respect to which it is unable to obtain certain waivers from the landlord for the benefit of the Bank.

The foregoing summary of the 18th Amendment is not intended to be complete and is qualified in its entirety by reference to that Amendment, a copy of which is attached as Exhibit 10.99 to, and by this reference is incorporated into, this Quarterly Report on Form 10-Q.