EXHIBIT 10.27

November 13, 2002

Mr. Vincent Shunsky
Treasurer
Maxco, Inc.
1118 Centennial Way
P.O. Box 80737
Lansing, Michigan 48908-0737

    RE: FINANCING ARRANGEMENTS AMONG COMERICA BANK (“BANK”), MAXCO, INC.
(“BORROWER”), PAK-SAK INDUSTRIES, INC. AND MAX A. COON (“GUARANTORS”)

Dear Mr. Shunsky:

     Reference is made to the Amended and Restated Loan Agreement dated
September 30, 1996, as amended by First Amendment thereto dated as of August 1,
1997, as further amended by Second Amendment thereto dated as of June 24, 1998,
as further amended by Third Amendment thereto dated as of September 24, 1998, as
further amended by Fourth Amendment thereto dated as of June 22, 1999, as
further amended by Fifth Amendment thereto dated as of September 1, 1999, as
further amended by Sixth Amendment thereto dated as of July 12, 2000, as further
amended by Seventh Amendment dated as of January 11, 2001, as further amended by
Eighth Amendment dated as of March 19, 2001, as further amended by Ninth
Amendment dated as of October 1, 2001, and as further amended by Tenth Amendment
dated February 19, 2002 (the “Loan Agreement”). The Loan Agreement was further
amended by a letter agreement dated as of November 8, 2002. All capitalized
terms not defined in this letter agreement (“Letter Agreement”) shall have the
meanings described in the Loan Agreement.

     Pursuant to Section 2.8.1 of the Loan Agreement, Borrower was provided the
right to permanently reduce the Commitment Amount by multiples of $500,000, by
providing Bank five (5) days written notice. In addition, Section 9.3 of the
Loan Agreement provides that Borrower and Bank may amend the Loan Agreement by a
written instrument executed by both parties. Consistent with these provisions of
the Loan Agreement, Borrower and Bank are desirous of amending the Loan
Agreement for the purpose of causing the Commitment Amount to be immediately
reduced to $1,300,000 from the $11,700,000 level currently provided for in the
Loan Agreement.

     Therefore, Borrower and Bank hereby agree that, notwithstanding anything in
the Loan Agreement to the contrary, the definitions of “Advance Formula
Agreement” and “Commitment Amount” set forth in Sub-Section 1.1 of Section 1 of
the Loan Agreement hereby deleted in their entirety and replaced by the
following:

       “Advance Formula Agreement” shall mean that certain Advance Formula
Agreement between Borrower and the Bank of dated November 13, 2002.

       “Commitment Amount” shall mean $1,300,000 (or such lesser amount to which
the Commitment Amount may be reduced by Borrower from time to time under

--------------------------------------------------------------------------------

 

       Section 2.8.1 of this Agreement), subject to the terms, limitations and
conditions of the Advance Formula Agreement.”

     Notwithstanding any provision contained in the Loan Agreement, as amended,
to the contrary, it is specifically acknowledged and agreed by Borrower and Bank
that all of the outstanding Letters of Credit issued by the Bank in favor of
Borrower (or any Subsidiary) as of the date of this Letter Agreement (an
aggregate of approximately $475,000) shall be excluded from the amount of the
Revolving Loans in applying the restrictions and limitations established by the
Commitment Amount and the Advance Formula Agreement.

     Except as in this Letter Agreement, neither the execution of this Letter
Agreement by Bank, nor any other act or omission by Bank in connection herewith,
shall be deemed an express or implied waiver by Bank of any Event of Default
under the Loan Agreement.

     Except as specifically modified hereby, the terms and conditions of the
Loan Agreement and the Notes, as the same may be amended from time to time,
remain in full force and effect and the undersigned hereby ratify and agrees to
be bound by the terms of the Loan Agreement as hereby amended.

  Very truly yours,   COMERICA BANK   By: /s/ David Grantham                 
       Its Vice President               

      ACKNOWLEDGED AND AGREED:       “BORROWER” Maxco, Inc.       /s/ Max A.
Coon

--------------------------------------------------------------------------------

          Its President   Date November 13, 2002          
    “GUARANTORS”       Pak-Sak Industries, Inc       By: /s/ Max A. Coon

--------------------------------------------------------------------------------

     Max A. Coon
     Its: Secretary       Date November 13, 2002                 /s/ Max A. Coon

--------------------------------------------------------------------------------

Max A. Coon   Date November 13, 2002