Document:

Exhibit 10.1

Wells Fargo Business Credit,Inc.
100 E. Wisconsin Avenue
Suite 1400
Milwaukee, WI 53202-4122
(414) 224-7440
(414) 224-7442 Fax

June 30, 1999

Richard P. Brandstatter
Vice President- Finance
CMC Heartland Partners
547 West Jackson Boulevard
Suite 1510
Chicago, IL 60661

Dear Rick:

Please take this letter as written notification by Wells Fargo Business Credit,
Inc. ("WFBCI") to P.G. Design Electronics, Inc. ("Borrower") that the following
actions will be taken under the Credit and Security Agreement dated December 31,
1998 (as so supplemented and amended, the "Agreement"):

           1)        Borrower's Floating Rate will be increased to 1.75%
           retroactive to May 1, 1999.

           2)        In the even "sic" Borrower and Zecal Corporation is unable
           to raise $5,000,000 in additional equity or subordinated debt prior
           to November 1, 1999, Borrower's Floating Rate will be increased to
           3.25% retroactive to May 1, 1999. (Should the additional equity or
           debt be raised by Zecal Corporation, a portion of the proceeds will
           need to be used to repay entirely the intercompany obligation to P.G.
           Design Electronics, Inc.)

           3) Borrower's Net Worth covenants will be revised for the remainder
           of fiscal 1999. In the event Borrower violates the revised Net Worth
           covenants, Borrower's Floating Rate will be increased to 3.25%
           retroactive to May 1, 1999.

The letter shall not be deemed to be an does not constitute a waiver of any
Default or Event of Default under the Agreement or breach, 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. It is acknowledged that in fact various defaults do exist and continue
to exist. This letter shall not in any way require the Lender to defer any of
its rights or remedies. Nothing in this letter shall be deemed to be a waiver of
rights or remedies nor deemed as an agreement to forbear, or restrict Lender in
taking any action or remedies afforded to it in 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.

If you have any questions, please do not hesitate to contact me (414) 224-7432.

Sincerely,
Wells Fargo Business Credit, Inc.
/s/ Thomas Zak
Thomas J. Zak
Vice President

cc:        Edwin Jacobson/CMC Heartland Partners
           John Stewart/WFBCI
           Mel Rutlin/WFBCIExhibit 10.2

Wells Fargo Business Credit,Inc.
100 E. Wisconsin Avenue
Suite 1400
Milwaukee, WI 53202-4122
(414) 224-7440
(414) 224-7442 Fax

July 28, 1999

Richard P. Brandstatter
Vice President- Finance
CMC Heartland Partners
547 West Jackson Boulevard
Suite 1510
Chicago, IL 60661

Dear Rick:

Please take this letter as written notification by Wells Fargo Business Credit,
Inc. ("WFBCI") to P.G. Design Electronics, Inc. ("Borrower") that as a result of
the losses sustained by Borrower during the month of June, the following actions
will be taken under the Credit and Security Agreement dated December 31, 1998
(as so supplemented and amended, the Agreement"):

           1)     Borrower's interest rate will be increased to the full default
           rate of interest, which is three percent (3%) over the floating rate.
           This rate of interest will be implemented retroactive to May 1, 1999.

           2)     Effective August 15, 1999 and each month thereafter, the
           inventory advance rate shall be reduced 2.5%. This advance rate
           reduction is in addition to the 1% per month reduction noted in the
           current definition of the Borrowing Base.

           3)     Effective August 15, 1999 Borrower's inventory line limit will
           be reduced to $1,700,000. This line limit will be reduced by $100,000
           per month each month beginning September 15, 1999.

The letter shall not be deemed to be an does not constitute a waiver of any
Default or Event of Default under the Agreement or breach, 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. It is acknowledged that in fact various defaults do exist and continue
to exist. This letter shall not in any way require the Lender to defer any of
its rights or remedies. Nothing in this letter shall be deemed to be a waiver of
rights or remedies nor deemed as an agreement to forbear, or restrict Lender in
taking any action or remedies afforded to it in 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.

If you have any questions, please do not hesitate to contact me (414) 224-7432.

Sincerely,
Wells Fargo Business Credit, Inc.
/s/ Thomas J. Zak
Thomas J. Zak
Vice President

cc:        Edwin Jacobson/ CMC Heartland Partners
           John Stewart/ WFBCI
           Mel Rutlin/ WFBCIExhibit 10.1

                SECOND AMENDMENT TO CREDIT AND SECURITY AGREEMENT
                             AND WAIVER OF DEFAULTS

     THIS SECOND AMENDMENT TO CREDIT AND SECURITY AGREEMENT AND WAIVER OF
DEFAULTS, dated as of March 30, 1999, is made by and between P.G. DESIGN
ELECTRONICS, INC., a Delaware corporation (the "Borrower"), and NORWEST BUSINESS
CREDIT, INC., a Minnesota corporation (the "Lender").

                                   RECITALS:

     The borrower and the Lender have entered into a Credit and Security
Agreement dated as of December 31, 1998, as amended (the "Credit Agreement").
Capitalized terms used in these recitals have the meanings given to them in the
Credit Agreement unless otherwise specified.

     The Borrower has requested that certain amendments be made to the Credit
Agreement, which the lender is willing to make pursuant to the terms and
conditions set forth herein.

     NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements herein contained, it is agreed as follows:

     1. Defined Terms.  Capitalized terms used in this Amendment which are
defined in the Credit Agreement shall have the same meanings as defined therein,
unless otherwise defined herein.

     2. Amendment to Section 6.12.  Section 6.12 of the Credit Agreement is
     amended to read as follows:

         (a) from February 1, 1999 through June 29, 1999, a minimum Combined
         Book Net Worth of not less than the Combined Book Net Worth as of
         January 31, 1999 minus One Hundred Fifty Thousand Dollars ($150,000);

         (b) as of June 30, 1999, a minimum Combined Book Net Worth of not less
         than the Combined Book Net Worth as of December 31,1 998 plus Five
         Hundred Thousand Dollars ($500,000);

         (c) from July1, 1999 through December 30, 1999, a minimum Combined Book
         Net Worth of not less than the Combined Book Net Worth as of June 30,
         1999;

         (d) as of December 31, 1999, a minimum Combined Book Net Worth of not
         less than both (i) the Combined Net Worth as of December 31, 1998 plus
         One Million Dollars ($1,000,000) and (ii) the Combined Book Net Worth
         as of June 30, 1999 plus Five Hundred Thousand Dollars ($500,000);

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         (e) thereafter, a minimum Combined Book Net Worth during each fiscal
         period from January 1 through December 30 of not less than the Combined
         Book Net Worth as of the end of the preceding fiscal year;

         (f) as of each June 30 after June 30, 1999, a minimum Combined Book Net
         Worth of not less than the Combined Book Net Worth as of the preceding
         fiscal year end plus One Million Dollars ($1,000,000);

         (g) thereafter, a minimum Combined Book Net Worth during each fiscal
         period from July 1 through December 30 of not less than the Combined
         Book Net Worth as of the preceding June 30;

         (h) as of the end of each fiscal year after December 31, 1999, a
         minimum Combined Book Net Worth of not less than both (i) the Combined
         Book Net Worth as of the prior fiscal year end plus Two Million Five
         Hundred Thousand Dollars ($2,500,000), and (ii) the Combined Book Net
         Worth as of the preceding June 30 plus One Million Five Hundred
         Thousand Dollars ($1,500,000); and

         (i) as of March 31, 2000, a minimum Combined Book Net Worth of not less
         than the Combined Book Net Worth as of December 31, 1999 plus Five
         Hundred Thousand Dollars ($500,000).

     3.  No Other Changes.  Except as explicitly amended by this Amendment, all
of the terms and conditions of the Credit Agreement shall remain in full force
and effect and shall apply to any advance or letter of credit thereafter.

     4.  Waiver of Defaults. Prior to giving effect to this Amendment, the
Borrower is in default of the Credit Agreement on account of its failure to
satisfy the minimum Combined Book Net Worth requirements set forth in Section
6.12 (b) (the "Defaults"):

     Upon the terms and subject to the conditions set forth in this Amendment,
the Lender hereby waives the Defaults. This waiver shall be effective only in
this specific instance and for the specific purpose for which it is given, and
this waiver shall not entitle the Borrower to any other or further waiver in any
similar or other circumstances.

     5.  Amendment Fee.  The Borrower shall pay the Lender as of the date hereof
a fully earned, non-refundable fee in the amount of Two Thousand Five Hundred
Dollars ($2,500) in consideration of the Lender's execution of this Amendment.

     6.  Conditions Precedent. This Amendment, and the waiver set forth in
Paragraph 4 hereof, shall be effective when the Lender shall have received an
executed original hereof, together with each of the following, each in substance
and form acceptable to the Lender in its sole discretion:

         (a) The Acknowledgment and Agreement of Guarantors set forth at the end
         of this Amendment, duly executed by each Guarantor.

         (b) Payment of the fee described in Paragraph 5.

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<PAGE>

         (c) Such other matters as the Lender may require.

     7.  Representation and Warranties.  The Borrower hereby represents and
warrants to the Lender as follows:

                  (a) The Borrower has all requisite power and authority to
     execute this Amendment and to perform all of its obligations hereunder, and
     this Amendment has been duly executed and delivered by the Borrower and
     constitutes the legal, valid and binding obligation of the Borrower,
     enforceable in accordance with its terms.

                  (b) The execution, delivery and performance by the Borrower of
     this Amendment have been duly authorized by all necessary corporate action
     and do not (i) require any authorization, consent or approval by any
     governmental department, commission, board, bureau, agency or
     instrumentality, domestic or foreign, (ii) violate any provision of any
     law, rule or regulation or of any order, writ, injunction or decree
     presently in effect, having applicability to the Borrower, or the articles
     of incorporation or by-laws of the Borrower, or (iii) result in a breach of
     or constitute a default under any indenture or loan or credit agreement or
     any other agreement lease or instrument to which the Borrower is a party or
     by which it or its properties may be bound or affected.

                  (c) All of the representations and warranties contained in
     Article V of the Credit Agreement are correct on and as of the date hereof
     as though made on and as of such date, except to the extent that such
     representations and warranties relate solely to an earlier date.

     8.  References.  All references in the Credit Agreement to "this Agreement"
shall be deemed to refer to the Credit Agreement as amended hereby; and any and
all references in the Security Documents to the Credit Agreement shall be deemed
to refer to the Credit Agreement as amended hereby.

     9.  No Other Waiver. Except as set forth in Paragraph 4 hereof, the
execution of this Amendment and acceptance of any documents related hereto shall
not be deemed to ve a waiver of any Default or Event of Default under the Credit
Agreement or breach, 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 Amendment.

     10.  Release. The Borrower, and each Guarantor by signing the
Acknowledgment and Agreement of Guarantors set forth below, each hereby
absolutely and unconditionally releases and forever discharges the Lender, and
any and all participants, parent corporations, subsidiary corporations,
affiliated corporations, insurers, indemnitors, successors and assigns thereof,
together with all of the present and former directors, officers, agents and
employees of any of the foregoing, from any and all claims, demands or causes of
action of any kind, nature or description, whether arising in law or equity or
upon contract or tort or under any state or federal law or otherwise, which the
Borrower or such Guarantor has had, now has or has made claim to have against
any such person or by reason of any act, omission, matter, cause or thing
whatsoever arising from the beginning of time to and including the date of this
Amendment, whether such claims, demands and causes of action are matured or
unmatured or known or unknown.

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<PAGE>

     11. Costs and Expenses. The Borrower hereby reaffirms its agreement under
the Credit Agreement to pay or reimburse the Lender on demand for all costs and
expenses incurred by the Lender in connection with the Credit Agreement, the
Security Documents and all other documents contemplated thereby, including
without limitation all reasonable fees and disbursements of legal counsel.
Without limiting the generality of the foregoing, the Borrower specifically
agrees to pay all fees and disbursements of counsel to the Lender for the
services performed by such counsel in connection with the preparation of this
Amendment and the documents and instruments incidental hereto. The Borrower
hereby agrees that the Lender may, at any time or from time to time in its sole
discretion and without further authorization by the Borrower, make a loan to the
Borrower under the Credit Agreement, or apply the proceeds of any loan, for the
purpose of paying such fees, disbursements, costs and expenses and the fee
required under paragraph 6 thereof.

     12.  Miscellaneous.  This Amendment and the Acknowledgment and Agreement of
Guarantors may be executed in any number of counterparts, each of which when so
executed and delivered shall be deemed an original and all of which
counterparts, taken together, shall constitute one and the same instrument.

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed as of the date first written above.

NORWEST BUSINESS CREDIT, INC.               P. G. DESIGN ELECTRONICS, INC.

By:     Thomas Zak                          By:        Lawrence Adelson
   ---------------------------                 ------------------------------
Its:    Vice President                      Its:        Vice President -
                                                        General Counsel
   ---------------------------                 ------------------------------

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<PAGE>

                   ACKNOWLEDGMENT AND AGREEMENT OF GUARANTORS

     The undersigned, each a guarantor of the indebtedness of P.G. Design
Electronics, Inc. (the "Borrower") to Norwest Business Credit, Inc. (the
"Lender") pursuant to a separate Guaranty each dated as of December 31, 1998
(each, a "Guaranty"), hereby (i) acknowledges receipt of the foregoing
Amendment; (ii) consents to the terms (including without limitation the release
set forth in paragraph 11 of the Amendment) and execution thereof; (iii)
reaffirms its obligations to the Lender pursuant to the terms of the Guaranty;
and (iv) acknowledges that the Lender may amend, restate, extend, renew or
otherwise modify the Credit Agreement and any indebtedness or agreement of the
Borrower, or enter into any agreement or extend additional or other credit
accommodations, without notifying or obtaining the consent of the undersigned
and without impairing the liability of the undersigned under its Guaranty for
all of the Borrower's present and future indebtedness to the Lender.

                                   HEARTLAND TECHNOLOGY, INC.

                                   By:  Lawrence Adelson
                                   Its: Vice President - General Counsel

                                   ZECAL CORP.

                                   By:  Lawrence Adelson
                                   Its: Vice President - General Counsel

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