EXHIBIT 99.3
January 27, 2000
VIA CERTIFIED MAIL
Xxxxxxx X. Xxxxxxxxxxxx
Vice President - Finance
CMC Heartland Partners
000 Xxxx Xxxxxxx Xxxx.
Suite 1510
Chicago, IL 60661
RE: P.G. Design Electronics, Inc. Credit and Security Agreement
Dear Xxxx:
In light of the continuing defaults and circumstances of P.G. Design
Electronics, Inc. (the "Borrower"), Xxxxx Fargo Business Credit, Inc. (the
"Lender") hereby demands payment in full of all obligations due to Lender by the
close of business May 1, 2000. Concurrent with the Lender's demand for payment,
beginning February 1, 2000 an accommodation fee of $10,000 per month will be
charged the first day of each month until the Borrower pays in full all
obligations.
By virtue of this demand by Xxxxxx, Xxxxxx has no obligation to lend any further
amounts to Borrower. Any additional advances shall not constitute a "course of
dealing" or other evidence of any change in the "demand" nature of the
obligations due to Lender. This letter shall not in any way require Lender to
defer any of its rights or remedies until May 1, 2000, or any other date.
Nothing in this letter shall be deemed to be a waiver of any rights or remedies
nor deemed as an agreement to forbear, or restrict Lender in taking any action
or remedies afforded to it in the Credit and Security Agreement dated as of
December 31, 1998 (as so supplemented and amended, the "Agreement"), or any
other document or as allowed by law. Lender retains any and all rights
available to it.
Lender, at its sole discretion and without any requirement to do so, may
consider to continue to make Advances under the Agreement subject to all of its
rights and remedies.
Lender reserves all rights and remedies following a Default or Event of Default
under any Security Document or other document held by the Lender whether or not
known to the Lender and whether or not existing on the date of this letter.
Sincerely,
XXXXX FARGO BUSINESS CREDIT, INC.
Xxxxxx X. Xxx
Vice President
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