February 27, 1996
Ameriwood Industries
International Corporation
000 Xxxxxx XX, Xxxxx 000
Xxxxx Xxxxxx, Xxxxxxxx 00000
Gentlemen:
We refer to the Letter of Credit Agreement dated as of November 1,
1986 as amended by that certain First Amendment to Letter of Credit
Agreement dated as of April 25, 1988, as amended by that certain
Second Amendment to Letter of Credit Agreement dated as June 19, 1992,
and as amended by that certain Third Amendment to Letter of Credit
Agreement dated as of January 13, 1995 (the "Credit Agreement") and
currently in effect between the Company and us (the "Bank").
You have indicated that for the period ending December 31, 1995, the
Company will not be in compliance with a certain financial covenant of
the Letter of Credit Agreement. Accordingly, the Bank hereby agrees
to the following:
1. The Bank hereby waives any potential default or event of default
which may arise from the Company's failure at the end of any calendar
quarter ending prior to June 30, 1996 to comply with Section 8.8 of the
Credit Agreement. The foregoing is not, and shall not be deemed to be,
a waiver of the Company's obligation to maintain as of the last day
of the calendar quarter ending on June 30, 1996 a ratio for the
period of four calendar quarters then ending of Funds from Operations to
Indebtedness for Borrowed Money of not less than .40 to 1.O.
This shall not constitute a waiver of said Section as it may relate to
any other period nor shall it constitute a waiver of any other
covenant, provision or requirement of the Letter of Credit Agreement.
Xxxxxx Trust and Savings Bank
By /s/ Xxxxx Xxxxxxxx
----------------------------------
Vice President
Accepted and agreed to as of the date last above written.
Ameriwood Industries International Corporation
/s/ Xxxxx X. Xxxxxxxxx
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Its Corporate Controller / Treasurer
