August 20, 2001
[THE BANK OF NEW YORK LETTERHEAD]
Mr. Kennith C. Johnson
Chief Financial Officer
Movado Group, Inc.
125 Chubb Avenue
Lyndhurst, New Jersey 07071
Re: Line of Credit to Movado Group, Inc. (the "Company")
Dear Mr. Johnson:
The Bank of New York (the "Bank") is pleased to confirm that it continues to hold available to the Company an
unsecured line of credit.
The line of credit shall be held available until July 31, 2002 unless canceled earlier as provided in the last sentence
of this paragraph. During the period the line of credit is held available, the line of credit may be used for direct
borrowings by the Company provided that the aggregate amount of all extensions of credit under the line of credit
at any one time outstanding (including all extensions of credit which were made under the line of credit prior to the
date of this letter and are outstanding as of the date of this letter) shall not exceed $5,000,000. The line of credit
may be canceled by either party at any time for any reason.
The making of any extension of credit under the line of credit is in the Bank's sole and absolute discretion and is
subject to the Bank's satisfaction with the condition (financial and otherwise), business, prospects, properties,
assets, ownership, management and operations of the Company and the purpose of each extension of credit. In
furtherance of the foregoing, the Bank shall be permitted to inspect the books and records of the Company as the
Bank may request from time to time, and there shall be furnished to the Bank such financial statements,
documents and other information concerning the Company as the Bank may request from time to time.
All extensions of credit under the line of credit in the form of direct borrowings by the Company (including all
extensions of credit which were made under the line of credit prior to the date of this letter and are outstanding as
of the date of this letter) shall be evidenced by the
Amended and Restated Master Pro