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EXHIBIT 4.4(e)
[NORWEST LETTERHEAD]
March 27, 1997
Xxxxxxx X. Xxxxxxxxx, President
Cragar Industries, Inc.
0000 Xxxxx 00xx Xxxxxx
Xxxxxxx, Xxxxxxx 00000
Dear Xx. Xxxxxxxxx:
According to Section 6.14 of the Credit and Security Agreement dated April 14,
1995 (the "Agreement") by and between Cragar Industries, Inc. (the "Borrower"
or "Cragar"), and Norwest Business Credit, Inc. (the "Lender" or "NBCI"), the
Borrower will as of December 31, 1996, for the preceding fiscal quarter,
achieve a cumulative Net Loss of not more than $250,000.00. Xxxxxx has
represented and warranted to NBCI that it has failed to remain within the
maximum Net Loss amount as outlined in Section 6.14 of the Agreement.
Furthermore, Cragar has stated that its Net Loss for the quarter ended December
31, 1996 totaled approximately [$1,064,000]. This result constitutes an Event
of Default pursuant to Section 8.1 of the Agreement.
As an accommodation to Cragar, NBCI agrees to waive the Net Income covenant
default (Section 6.14) for the period ended December 31, 1996. This letter
should be considered a waiver of the Net Income default and is applicable only
to the Net Income covenant for the period ending December 31, 1996 and not to
any other existing or future defaults of any kind. NBCI reserves any and all
rights and remedies allowed it under the Agreement.
In consideration of this waiver, Xxxxxx agrees to pay to NBCI a waiver fee in
the amount of $2,500. This amount will be charged to your loan account on April
1, 1997.
If you have any questions regarding this matter, please contact me at 000-0000.
Sincerely,
/s/ Xxxxx X. Xxxxxxxx
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Xxxxx X. Xxxxxxxx
Vice President
