LOAN MODIFICATION AGREEMENT NO. 4
Exhibit 10.11
LOAN MODIFICATION AGREEMENT NO. 4
Preamble: This Loan Modification Agreement (this “Agreement”), dated as of February 28, 2005 (the “Effective Date”), is made between UPS Capital Corporation, as lender (the “Lender”) and each Person identified as “Borrower” on the signature page(s) hereof, as borrower(s) (individually and collectively, the “Borrower”), for the purpose of amending or otherwise modifying the terms of that certain Loan and Security Agreement, dated as of August 28, 2002, heretofore made between Lender and Borrower (which, as it has been, or hereafter may be, modified or amended, is called herein the “Loan Agreement’). Now, therefore, in consideration of the mutual promises contained herein and in the Loan Agreement, the receipt and sufficiency of which are hereby acknowledged, Lender and Borrower, each intending to be legally bound, agree as follows:
2. Loan Modifications. Lender and Borrower agree to modify the Loan Agreement as follows:
2.1 Continuation of Line Increase. The increase in the Maximum Amount from $15,000,000 to $20,000,000 effected through the date hereof pursuant to that certain Loan Modification Agreement No. 2, dated as of November 30, 2004, between Borrower and Lender (“Second Modification”), shall continue in effect through the April 15, 2005 (“End Date”); provided, however, that total Borrowings under the Line of Credit shall continue to be tied to, and limited by, the Borrowing Base in effect from time to time. On the last Business Day of week prior to the week containing the End Date (such date herein called the “Reduction Date”), the Maximum Amount shall be reduced by $2,500,000 and, on the End Date, the Maximum Amount shall be returned to, and remain at, $15,000,000.
2.4 Increase in Concentration Limits Clause (xi) of the definition of Eligible Accounts set forth in Section 1.1 of the Loan Agreement is hereby deleted in its entirety and the following revised clause (xi) is hereby substituted in lieu thereof:
(xi) which is owing by any Account Debtor (excepting, however, Lazydays, RV) whose accounts in face amount with Borrower exceed
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twenty percent (20%) of Borrower’s Eligible Accounts, but only to the extent of such excess;
“Borrower” |
“Lender” |
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NATIONAL R.V. HOLDINGS, INC. |
UPS CAPITAL CORPORATION |
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By: |
/S/ Xxxxxx X. Xxxxxxx |
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By: |
/S/ Xxxx X. Xxxxxxxx |
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Authorized Officer Treasurer |
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Authorized Officer |
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NATIONAL R.V., INC. |
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By: |
/S/ Xxxxxx X. Xxxxxxx |
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Authorized Officer Treasurer |
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COUNTRY COACH, INC. |
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By: |
/S/ Xxxxxx X. Xxxxxxx |
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Authorized Officer Treasurer |
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