American International Construction Inc.
A Division Of American International Consolidated Inc.
14603 Xxxxxxxx
Xxxxxxx, Xxxxx 00000
(281) 449-900 - Fax (000) 000-0000
December 24, 1997
Xx. Xxx Xxxxxx
M. B. C. I.
14031 West Hardy
Xxxxxxx, Xxxxx 00000
Re: Loan Agreement - April 24, 1996
Dear Xxx:
Attached to this letter is a copy of our letter dated September 19, 1997
and your acknowledgment and waiver of the loan covenants violated as indicated.
We respectfully request your extension of these waivers from December 31, 1997
to February 28, 1998. Your signature below confirms your consent to extend the
date of these waivers.
Sincerely,
/s/ Xxx Xxxxxxxx
Xxx Xxxxxxxx
M. B. C. I. hereby acknowledges and consents to extending and waives any
remedies provided pursuant to the loan as a result of these covenant violations
through February 28, 1998.
Metal Building Components, Inc.
/s/ Xxxxxxx Xxxxxx
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Signature
Xxxxxxx Xxxxxx
-------------------------------
Printed Name
Vice President/CEO
-------------------------------
Title
12/24/97
-------------------------------
Date
"Quality Brings Success"
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
