Exhibit 10.05
February 20, 2004
Xxxxx XxXxxx
Chief Financial Officer
HMI Industries, Inc.
0000 Xxxxxxxx Xxxxxx, Xxx. 000
Xxxxx Xxxxx, Xxxx 00000
Dear Xxxxx:
Reference is made to the Term Loan Agreement (herein called the "Instrument")
dated June 8, 2001 and as amended from time to time by and between HMI
Industries, Inc. (herein called the "Borrower") and US Bank (herein called the
"Bank"). In connection therewith and pursuant to violation of the tangible net
worth covenant and EBITDA/Interest covenant, please be advised as follows:
Notwithstanding the requirements and/or the restrictions contained in the
Instrument and particularly in Section 5.2 attached addendum, the Bank
hereby gives its written consent to the Borrower to allow the following
waiver in the fiscal year ended 9/30/03 and interim period 12/31/03 through
October 15, 2004:
I. Section 5.2 attached addendum:
Borrower shall maintain a tangible net worth at all times of not less
than $4,100,000.00; calculated at the end of the quarter, increasing
at the end of each fiscal year by 50% of positive net income. Amended
to tangible net worth at all times of not less than $2,400,000
calculated at the end of the quarter, increasing at the end of each
fiscal year by 50% of positive net income.
Borrower shall maintain an EBITDA/Interest coverage of 5.0:1.0 on a
rolling 4 quarter basis; calculated quarterly. Amended definition to
exclude loss on Canadian operation of $904M, impairment of $1.6MM and
one time charges of $575M due to the Genesis Initiative.
These covenants are amended and will be evidenced in amended documents dated
February 20, 2004.
Kindly indicate your acceptance of this agreement by executing and returning the
enclosed copy of this letter.
Very truly yours,
/s/ Xxxxxx X. Xxxxxx
Xxxxxx X. Xxxxxx
Vice President
Commercial Banking
HMI Industries, Inc..
2/20/2004
Page 2
The Borrower hereby agrees to the waiver set forth above. The Borrower further
agrees all of the other terms, and conditions set forth in the Instrument shall
remain in full force and effect.
Approved and accepted by:
HMI Industries, Inc..
By: /s/ Xxxxx X. XxXxxx
Title: Vice President- Chief Financial Officer
Date: February 20, 2004
