1
Exhibit (10)(x)
The CIT Group/
Equipment Financing
000 XXX Xxxxx
XX Xxx 000
Xxxxxxxxxx, XX 00000-0000
January 20, 1999
Mr. John Sole
Cold Metal Products Inc.
0000 Xxxxx Xxxxxx
XX Xxx 0000
Xxxxxxxxxx, Xxxx 00000
Dear Mr. Sole:
In regards to the amended and Restated Loan and Security Agreement,
dated as of November 22, 1996, (Loan Agreement), by and between cold Metal
Products Inc. (Debtor) and the CIT Group/Equipment Financing, Inc. (Lender).
Debtor has advised CIT that Cold Metal Products was not in compliance with its
Cash Flow covenant contained in Section 8.10 of the Agreement for the period
ended December 31, 1998.
Cash Flow Covenant: Cash Flow coverage shall be greater than or equal
to 1.50x. Cash Flow is defined as net income after taxes plus
depreciation and amortization divided by CPLTD and capital leases
(calculated on a rolling four-quarter basis).
Debtor has requested that notwithstanding anything to the contrary in the
Agreement, that CIT waive the above instance of noncompliance from the period
above through the period ending December 31, 1999. CIT hereby waives, as of this
date and through the period ending December 31, 1999, the above instances of
noncompliance under Section 8.10 of the Agreement subject to the following
condition:
receipt by CIT of a $3,500 processing fee.
Sincerely
The CIT Group Equipment Financing, Inc.
By: /s/ Xxxxxxx Xxxxxx
----------------------
Title: Vice President
----------------------
Agreed and Accepted By:
Cold Metal Products, Inc.
By: /s/ X. X. Xxxx
Title: VP-CFO
