AMENDMENT TO CREDIT AGREEMENT
THIS AGREEMENT, dated as of October 20, 2000, is entered into by and
between THE H.B. GROUP, INC., a Utah corporation (the "Borrower") with its
principal office at 0000 Xxxxx Xxxx Xxxxxx, Xxxxx 000, Xxxxxxx, Xxxx 00000 and
HEADWATERS INCORPORATED, a Delaware Corporation (the "Lender").
W I T N E S S E T H :
WHEREAS, Borrower and Lender have entered into a Credit Agreement dated
October 20, 2000 (the "Credit Agreement"); and
WHEREAS, Borrower and Lender desire to amend the Credit Agreement as
hereinafter set forth;
NOW, THEREFORE, the Borrower and the Lender agree as follows:
Section 6.1 (k) of the Credit Agreement is hereby stricken and replaced
in full by the following:
(k) (i) Maintain a current ratio, that is a ratio of
current assets to current liabilities of not less than one
(1.0) as of the end of each fiscal quarter; and
(ii) Show earnings before interest and taxes a) for
the months of October through December, 2000 with losses no
greater than Five Hundred Thousand Dollars ($500,000.00) for
the period; b) for the months of January and February of the
year 2001 of not less than a total of Two Hundred Thousand
Dollars ($200,000.00) for the period; and c) for the balance
of the year 2001 of not less than One Hundred Thousand Dollars
($100,000.00) per month or of Three Hundred Thousand Dollars
($300,000.00) for any trailing three month period.
For purposes of calculating the ratio required by
Subsection (k)(i), the obligation created to Lender by this
Credit Agreement and the other associated loan documents shall
not be included in current liabilities.
Section 7(b) of the Credit Agreement is hereby stricken and replaced in
full by the following:
(b) (i) Failure to perform or observe any of the terms,
covenants, conditions, or agreements contained in the Warrant
Agreement, the Investors' Rights Agreement, the Security
Agreement, the Guaranty, the Stock Pledge Agreement, or this
Agreement with the exception of the covenant in Section 6.1
(k) of this Agreement, which failure shall remain unremedied
for a period of twenty (20) days after notice of the default;
or
(ii) failure to maintain the ratio required by the
covenant in Section 6.1(k) of this Agreement which failure
remains unremedied for a period of thirty (30) days after
notice of the default and failure to show the earnings before
interest and taxes set forth in Section 6.1(k); or
Except as expressly changed pursuant to this Amendment, all of the
terms and conditions of the Credit Agreement shall remain the same.
IN WITNESS WHEREOF, the parties have earned this Agreement to be duly
executed as of the above date.
Borrower:
THE H.B. GROUP, INC.
By: /s/ Xxxx X. Xxxxxx
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Name: Xxxx X. Xxxxxx
Title:Vice Treasurer
Lender:
HEADWATERS INCORPORATED
By: /s/ Xxxx X. Xxxxxx
------------------
Name: Xxxx X. Xxxxxx
Title:CEO
