American International Construction Inc.
A Division Of American International Consolidated Inc.
14603 Xxxxxxxx
Xxxxxxx, Xxxxx 00000
(000) 000-0000 * Fax (000) 000-0000
September 19, 1997
Xx. Xxx Xxxxxx
M.B.C.I.
14031 West Hardy
Xxxxxxx, Xxxxx 00000
Re: Loan Agreement - April 24, 1996
Dear Xxx:
During the process of refiling our Registration Statement with the S.E.C.,
and the review by our accountants Xxxx + Associates LLP, it has been noted that
we need to update your consent relative to the following Negative Covenants in
the referenced loan agreement with your company (the " Loan"). Accordingly,
please acknowledge or confirm the following:
(A) - AICI has acquired a 37.5% interest in a Limited Liability Company.
This Limited Liability Company is a general partner (45% ownership) in a Limited
Partnership that owns a mini-storage project (U.S. Storage/Westheimer). This
acquisition of ownership was acquired in order for AICI to secure the
construction contract for the related mini-storage project for approximately
$1.4 million.
I. - M.B.C.I. hereby acknowledges and consents to this investment and
waives any remedies provided pursuant to the Loan as a result of this covenant
violation.
/s/ Xxxxxxx X. Xxxxxx
------------------------------------------
(Acknowledgment)
(B) - AICI has acquired a 24.5% interest in a Limited Liability Company
which is a general partner (45% ownership) in a Limited Partnership that owns a
mini-storage project (U.S. Storage/Woodlands). This acquisition of ownership was
acquired in order for AICI to serve the construction contract for the related
mini-storage project for approximately $1.5 million.
II. - M.B.C.I. hereby acknowledges and consents to this investment and
waives any remedies provided pursuant to the Loan as a result of this covenant
violation.
/s/ Xxxxxxx X. Xxxxxx
------------------------------------------
(Acknowledgment)
"Quality Brings Success"
Xx. Xxx Xxxxxx
September 19, 1997
Page 2
(C) - AICI has acquired a 24.5% interest in a Limited Liability Company
which is a general partner (45% ownership) in a Limited Partnership that owns a
mini-storage project (U.S. Storage/Atascocita). This acquisition of ownership
was acquired in order for AICI to serve the construction contract for the
related mini-storage project for approximately $900,000.00.
III. M.B.C.I. hereby acknowledges and consents to this investment and waives any
remedies provided pursuant to the Loan as a result of this covenant violation.
/s/ Xxxxxxx X. Xxxxxx
------------------------------------------
(Acknowledgment)
(D) - AICI is currently delinquent in the timely payment of its accounts
payable with M.B.C.I. and it is estimated the amount past due (over 45 days old)
will range from $.5 to $1 million.
IV. - M.B.C.I. hereby acknowledges notification of this past due amount and
waives any remedies provided pursuant to the Loan as a result of this covenant
violation through December 31, 1997.
/s/ Xxxxxxx X. Xxxxxx
------------------------------------------
(Acknowledgment)
(E) - AICI did not reach its Earnings Before Interest Covenant requirements
of 1.5% of gross revenues as of April 30, 1997.
V. - M.B.C.I. hereby acknowledges notification of this deficiency in
required gross profit and waives any remedies provided pursuant to the Loan as a
result of this covenant violation through December 31, 1997.
/s/ Xxxxxxx X. Xxxxxx
------------------------------------------
(Acknowledgment)
(F) - AICI did not provide M.B.C.I. with additional financial statements
within 90 days of April 30, 1997.
VI. - M.B.C.I. hereby acknowledges this covenant violation and waives any
remedies provided pursuant to the Loan as a result of this covenant violation
through December 31, 1997.
/s/ Xxxxxxx X. Xxxxxx
------------------------------------------
(Acknowledgment)
Xx. Xxx Xxxxxx
September 19, 1997
Page 3
(G) - AICI has contacted a realtor in order to market the company's
principal office and warehouse facility in an effort to consummate a
sale/leaseback arrangement.
VII. - M.B.C.I. hereby acknowledges notification of AICI's intent.
/s/ Xxxxxxx X. Xxxxxx
------------------------------------------
(Acknowledgment)
Your prompt response to the items addressed will be greatly appreciated.
Please feel free to contact Xxxx Xxxxxx, Xxxx Xxxxxxx or me if you need any
further information.
Sincerely,
/s/ Xxx Xxxxxxxx
------------------------------------
Xxx Xxxxxxxx
VP- Finance
Enclosures
cc: Xxxx Xxxxxx
Xxxx Xxxxxxx
JW/ad
STATE OF TEXAS
COUNTY OF XXXXXX
SWORN TO AND SUBSCRIBED by the said Xxxxxxx X. Xxxxxx before and undersigned, a
Notary Public in and for the County and State aforesaid this 16th day of
October, 1997.
My Commission Expires
3-4-99 /s/ Xxxxx X. Xxxx
------ --------------------------------------
Notary Public
Xxxxx X. Xxxx
Notary Public State of Texas
Commission Expires 3-4-99
