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EXHIBIT 10.3(b)
FIRST AMENDMENT AND MODIFICATION
TO LOAN AGREEMENT
This First Amendment and Modification to Loan Agreement (the "First
Amendment") is executed by and between NEWMARK HOMES, L.P., a Texas Limited
Partnership (the "Borrower"), acting by and through NEWMARK HOME CORPORATION,
a Nevada corporation, as the general partner of the Borrower. and COMPASS BANK,
a Texas state banking association of Xxxxxx County, Texas (the "Bank")
effective as of the 1st day of March, 1997, for the following purposes and
considerations:
WHEREAS, Borrower and Bank executed and entered into that certain
Master Revolving Line of Credit Loan Agreement dated October 1, 1996,
which is incorporated herein by reference for all purposes, and which
is hereinafter referred to as the "Loan Agreement". All capitalized
terms used herein shall have the same meaning as defined in the Loan
Agreement; and
WHEREAS, Borrower and Bank desire to amend and modify the Loan
Agreement to adjust the interest rate as provided in the Note as of
the effective date of this First Amendment:
NOW, THEREFORE, for and in consideration of the mutual benefits to
Bank and Borrower, the receipt and sufficiency of which are hereby acknowledged
and confessed by each party, the undersigned do hereby enter into this First
Amendment, as of the effective date stated above, as follows:
1. Section 2.2 of the Loan Agreement shall be as written in the Loan
Agreement dated October 1, 1996, through and until February 28, 1997.
Effective from and after March 1, 1997, the said Section 2.2 of the
Loan Agreement is amended to read as follows:
2.2 Interest Terms. The Note shall bear interest on
the outstanding principal balance at the Index Rate plus
125/1000 (0.125%) percent per annum, floating, but in no event
to exceed the Highest Lawful Rate. Changes in the interest
rate of the Line of Credit Note shall occur without notice to
Borrower as the Index Rate changes.
2. Borrower hereby ratifies and confirms each and every provision of the
Loan Agreement, the Note and the Security Instruments, as modified
hereby, including but not limited to the warranties and
representations contained therein. Borrower further certifies to Bank
that Borrower is in full compliance with all of the covenants and
agreements contained in the Loan Agreement, the Note and the Security
Instruments, as modified hereby. Borrower further certifies that no
Event of Default has occurred or currently exists, and
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no situation now exists which, with the passage of time, would
constitute an Event of Default.
This Amendment and Modification is executed between the parties
effective on the date stated above.
BORROWER: BANK:
NEWMARK HOMES, L.P. COMPASS BANK
By: Newmark Home Corporation, a
Nevada corporation
By: /s/ XXXXX XXXXX By: /s/ XXXXXXX X. XXX
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Name: Xxxxx Xxxxx Name: Xxxxxxx X. Xxx
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Title: SVP Title: Vice President
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