1
Exhibit 10(iv)
AMENDMENT TO BUSINESS LOAN AGREEMENT
------------------------------------
This amendment to Business Loan Agreement made at Akron, Ohio as of
SEPTEMBER 30, 1999 by and among FIRSTMERIT BANK, N.A. ("Bank") and RVM
INDUSTRIES, INC.; RAVENS, INC.; SIGNS AND BLANKS, INC.; ALBEX ALUMINUM, INC.
("Borrower").
WITNESSETH
WHEREAS, the Bank and Borrower have entered into a Business Loan
Agreement dated September 30, 1997, and;
WHEREAS, the Bank and the Borrower desire to further amend certain
terms of the Business Loan Agreement;
NOW THEREFORE, in consideration of the mutual premises herein contained
and other valuable consideration, the receipt, and sufficiency of which is
hereby acknowledged, the parties hereto agree to amend said Business Loan
Agreement in the following respect and in such respect only:
1. THE FINANCIAL COVENANTS AND RATIOS PERTAINING TO CASH FLOW
REQUIREMENTS (PAGE 3) TO BE CHANGED AS FOLLOWS:
Maintain Cash Flow at not less than the following levels: (i) for
the period ending 9-30-99 and 12-31-99, 0.8 times the consolidated
sum of current maturities of long-term debt paid, plus dividends,
plus capital expenditures not funded by term debt or under the Kent
IRB; (ii) 1.1 times at 3-31-00; and (iii) 1.2 times at 6-30-00, and
quarterly thereafter. This covenant is to be tested quarterly using
the accumulated total of the previous four quarters.
2. THE FINANCIAL COVENANTS AND RATIOS PERTAINING TO TANGIBLE NET WORTH
(PAGE 3) TO BE CHANGED AS FOLLOWS:
Maintain a minimum consolidated Tangible Net Worth of not less
$12,000,000.00 until 3-31-00, then $14,000,000.00 until 3-31-01
then $16,000,000.00 thereafter. Tangible Net Worth shall include
subordinated due from Albex Aluminum, Inc. to Jacob Pollock and
Signs and Blanks, Inc. Pollock & Company. This covenant is to be
test quarterly.
3. THE CONDITIONS PRECEDENT TO EACH ADVANCE PERTAINING TO PAYMENT OF
FEES AND EXPENSES (PAGE 2) TO BE CHANGED AS FOLLOWS:
Borrower shall pay Lender a documentation fee, at closing, of
$1,250.00 in connection with the increase to the $1,614,220.00 term
loan.
2
This is expressly understood and agreed that all other terms and
conditions of the aforesaid Asset Based Loan Agreement shall remain unchanged
and in full force and effect and are fully applicable to the amendment made
hereby.
IN WITNESS WHEREOF, the parties hereto have caused this amendment to be
executed in their respective authorized officers as of the date of first above
written.
FIRSTMERIT BANK, N.A. RVM INDUSTRIES, INC.
By: /s/Ronald T. Hayes By: Jacob Pollock
-------------------------- -------------------------------
Title: V.P. Title: C.E.O.
----------------------- ----------------------------
RAVENS, INC.
By: /s/Jacob Pollock
----------------------------
Title: C.E.O.
-------------------------
SIGNS AND BLANKS, INC.
By: /s/Jacob Pollock
----------------------------
Title: C.E.O.
-------------------------
ALBEX ALUMINUM, INC.
By: /s/Jacob Pollock
----------------------------
Title: C.E.O.
-------------------------
PAGE 2