SECOND AMENDMENT TO LOAN AGREEMENT
THIS SECOND AMENDMENT TO LOAN AGREEMENT (this "Amendment") is entered into
as of August 21, 1998, by and between TITAN MOTORCYCLE CO. OF AMERICA, a Nevada
corporation ("Borrower"), and XXXXX FARGO BANK, NATIONAL ASSOCIATION ("Lender").
RECITALS
WHEREAS, Borrower is currently indebted to Lender pursuant to the terms and
conditions of that certain Loan Agreement between Borrower and Lender dated as
of April 10, 1998 ("Loan Agreement").
WHEREAS, Lender and Borrower have agreed to certain changes in the terms
and conditions set forth in the Loan Agreement and have agreed to amend the Loan
Agreement to reflect said changes.
NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree that the Loan Agreement
shall be amended as follows:
1. Paragraph 1.16 is hereby deleted in its entirety with the following
substituted therefor:
" 1.16 "Maximum Amount" shall mean the amount of $6,600,000.00."
2. Paragraph 2.1(c) is hereby amended by adding the following sentence to
the end thereof:
"Notwithstanding the foregoing, but still subject to the Maximum
Amount, Borrower shall be permitted to have a temporary overadvance
facility under the Line of Credit such that outstanding borrowings may
exceed the borrowing base provided for by this Agreement by an amount
not to exceed Eight Hundred Thousand Dollars ($800,000.00) during the
period beginning August 21, 1998, and ending on October 31, 1998."
3. Paragraph 8.14 is hereby deleted in its entirety with the following
substituted therefor:
" 8.14 Perpetual Inventory System. Implement, by no later than November 30,
1998, a fully functional perpetual inventory system satisfactory to Lender."
4. Borrower shall pay to Lender an amendment fee in the amount of
$2,400.00, which shall be fully earned as of and payable on the date of this
Amendment.
5. The Line of Credit Note is replaced and superseded by the Line of Credit
Note in the form attached hereto as Exhibit A.
6. Except as specifically provided herein, all terms and conditions of the
Loan Agreement remain in full force and effect, without waiver or modification.
All terms defined in the Loan Agreement shall have the same meaning when used in
this Amendment. This Amendment and the Loan Agreement shall be read together, as
one document.
7. Borrower hereby remakes all representations and warranties contained in
the Loan Agreement and reaffirms all covenants set forth therein. Borrower
further certifies that as of the date of this Amendment and except as set forth
in this Amendment, there exists no Event of Default as defined in the Loan
Agreement, nor any condition, act or event which with the giving of notice or
the passage of time or both would constitute any such Event of Default.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed as of the day and year first written above.
TITAN MOTORCYCLE CO. OF XXXXX FARGO BANK,
AMERICA NATIONAL ASSOCIATION
By: /s/ Xxxxxx X. Xxxxxx By: /s/ Xxxxxx X. Xxxxxxx
-------------------------- -----------------------------
Title: Chief Financial Officer Title: Vice President
----------------------- --------------------------
2
