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Exhibit 10.00
FINOVA
FINOVA CAPITAL CORPORATION
COMMERCIAL FINANCE
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December 17,1999
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Executive Vice President
HMI Industries, Inc.
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Re: FINOVA CAPITAL CORPORATION WITH HMI INDUSTRIES, INC. AND
HMI INDUSTRIES, INC. (COLLECTIVELY "THE BORROWER")
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Dear Bob:
Reference is made to that certain Loan and Security Agreement dated May 12,
1999, between FINOVA Capital Corporation and the Borrower ("Security
Agreement"). Borrower has requested and FINOVA has agreed that FINOVA shall
forbear in declaring default under the Security Agreement, for any default with
respect to negative covenant "Capital Expenditures" and "Indebtedness" for
fiscal year ended September 30, 1999.
Borrower has requested and FINOVA has agreed to reset the following covenants:
1) "Capital Expenditure"; Borrower shall not make or incur any Capital
Expenditure if, after giving effect thereto, the aggregate amount of all Capital
Expenditures by Borrower in any fiscal year (beginning with the fiscal year
ending September 30, 1999) would exceed $3,OOOM and 2) "Indebtedness" covenant;
Borrower shall not create, incur, assume or permit to exist any Indebtedness for
Borrowed Money in excess of $ 1,OOOM other than (i) the Obligations, (ii) other
Indebtedness existing on the date of this Agreement and reflected in the Loan
and Security Agreement dated May 12, 1999.
FINOVA Capital Corporation will earn a one-time fee of $3,500.00 for this
accommodation. Fee will be earned on December 22, 1999.
Unless amended herein, all of the other terms and conditions contained in the
Security Agreement shall remain in full force and effect. Please sign a copy of
this letter to indicate your agreement to the above and retain a copy for your
records.
Sincerely yours,
FINOVA CAPITAL CORPORATION
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Associate Account Executive
AGREED TO AND ACKNOWLEDGED:
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cc. ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, VP
