Exhibit (10)(xxi)
H. XXXXX XXXX
000 Xxxxxxx Xxxx.
Xxxx Xxxx Xxxxx, XX 00000
May 1, 0000
XxxXxx Xxxxxxxxxxx, Inc.
00000 XX 00xx Xx.
Xxxxxxxx Xxxxx, XX 00000
Attn: Xx. Xxxx Xxxxxx, Vice President
RE: SECOND EXTENSION AGREEMENT
$750,000.00 Revolving Credit Facility
Gentlemen:
This letter is intended to confirm and memorialize our
understanding and agreement in connection with the referenced
matter.
H. Xxxxx Xxxx is the "Payee" under that certain Promissory Note
(the "Note") dated September 15, 1994 in the principal sum of up
to Seven Hundred Fifty Thousand Dollars and no/100 ($750,000.00 -
the "Committed Amount") and that certain Extension Agreement
dated April 28, 1995, whereby the time for payment of the
outstanding principal balance of the indebtedness evidenced by
the Note was extended until and including the first day of May
1996. The Payee, also referred to as the "Lender" under that
certain Loan Agreement drafted as a letter agreement of even date
with the Note, has agreed to further extend the time for payment
of the indebtedness evidenced by the Note.
NewCen Communities, Inc., the "Maker" under the Note and the
"Borrower" under the subject Loan Agreement, acknowledges that it
has requested the extension herein and further does hereby
certify, confirm and agree that the Loan Agreement and Note are
in full force and effect, are valid and enforceable in accordance
with their terms and are not subject to any defenses or offsets
of any kind or nature whatsoever.
The parties agree, in consideration of the premises and other
good and valuable considerations, the receipt and sufficiency
whereof is hereby acknowledged, that: (1) the time for payment of
the outstanding principal balance of the indebtedness evidenced
by the Note shall be and is hereby further extended until and
including the first day of May, 1997; (2) during the period
commencing on the date hereof and ending on and including May 1,
1997, the principal balance outstanding shall bear interest at a
floating rate equal to the Wall Street Journal Prime Rate (as
said term is defined in the Note) per annum; and, (3) on or
prior to the date hereof, Borrower shall pay to Lender a
commitment fee of 0.25% of the Committed Amount ($1,875.00).
NewCen Communities, Inc.
Attn: Xxxxxxx X. Xxxxx
May 1, 1996
page 2 of 2
All other terms and conditions of the Loan Agreement and of the
Note, as hereinabove modified and extended, shall remain fully
enforceable throughout the extended term of the Note.
Kindly countersign this letter in the place designated below to
acknowledge and confirm your agreement to the foregoing.
Very truly yours,
/s/ H. Xxxxx Xxxx
H. Xxxxx Xxxx
Confirmed, acknowledged and agreed:
NEWCEN COMMUNITIES, INC.
By: /s/ Xxxx Xxxxxx
Xxxx Xxxxxx, Vice President
