FIRST AMENDMENT TO LOAN AGREEMENT DATED AUGUST 3, 1984
THIS First Amendment to Loan Agreement dated August 3, 1984 ("First
Amendment") between XXXX HAULING AND WAREHOUSING SYSTEX, INC. ("Xxxx") and THE
CITY OF GLOUCESTER CITY, NEW JERSEY ("City") is made this 31st day of March,
1991.
WHEREAS, Xxxx and the City entered into a Loan Agreement dated January
3, 1984 (the "Loan Agreement I") which provided that City lend to Xxxx the sum
of Three Million Five Hundred Ninety-Five Thousand, Five Hundred Thirty-Three
($3,595,533.00) Dollars (the "Loan") for the partial financing of the
construction of a marginal dock facility and the acquisition and installation of
two (2) rail supported container cranes ("Kochs Cranes"); and
WHEREAS, Xxxx and the City entered into a Loan Agreement dated August
3, 1984 (the "Loan Agreement II") which provided that City lend to Xxxx the sum
of Two Million ($2,000,000.00) Dollars (the "Loan") for the partial financing of
the construction of a marginal dock facility;
WHEREAS, Loan Agreements I and II involved "Project" activities defined
under Urban Development Action Grant (UDAG) Nos. B-84-AB-34-0239 and
B-82-AB-34-0223, comprised primarily of the construction of a marginal dock
facility and the acquisition of capital equipment for Xxxx'x facilities in the
City; and
WHEREAS, as a condition to Loan I and II being made to Xxxx, Oregon
Avenue Enterprises, Inc. ("OAE") executed a Surety Agreement on March 15, 1984
and a Supplemental Surety Agreement on April 18,
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1984 (collectively the "Sureties") in favor of the City, whereby OAE
unconditionally guaranteed repayment by Xxxx of Loan I and II to the City; and
WHEREAS, OAE delivered to the City as security for the prompt repayment
of OAE's obligations under the Sureties, a Security Agreement dated March 15,
1984 and recorded in Mortgage Book 2785 at page 562, and a Supplemental Surety
Agreement dated April 18, 1984 and recorded in Mortgage Book 2793 at page 940,
and a Security Modification Agreement dated August 22, 1984 (collectively the
"Security Agreements") granting to the City a security interest in OAE's two (2)
Kochs Cranes; and
WHEREAS, Xxxx has requested the City to release its lien on the Kochs
Cranes as created under the Security Agreements and to relinquish any and all
rights the City has or may have in the Kochs Cranes.
WHEREAS, Xxxx and the City entered into a First Amendment to Loan
Agreement I; and
NOW, THEREFORE, in consideration of the mutual terms, covenants,
provisions and conditions herein set forth, and intending to be legally bound
hereby, the parties hereto agree as follows:
1. An Event of Default under the Loan Agreement I, as amended March 31,
1991 or under any and all Promissory Notes, Mortgages or any other Agreements
executed pursuant to Loan
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Agreement I, and the First Amendment thereto, shall constitute a default under
the Loan Agreement II dated August 3, 1984 and the Promissory Notes, Mortgages
or any other Agreements executed pursuant to Loan Agreement II.
2. Xxxx shall have thirty (30) days from receipt of written notice of
default or breach, under this Agreement, to cure such default or breach.
3. Except as otherwise stated herein, all other terms and conditions of
the Loan Agreement dated August 3, 1984 shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this First Amendment the
day and year first above written.
XXXX HAULING AND WAREHOUSING SYSTEM, INC.
BY: /s/ Xxxxxxx Xxxxxx
-------------------------------------
XXXXXXX XXXXXX, Vice President
ATTEST
/s/ Xxxx Xxxxx
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XXXX XXXXX, Secretary
(Corporate Seal)
CITY OF GLOUCESTER CITY
BY: /s/ Xxxxxx X. Xxxx
-------------------------------------
XXXXXX X. XXXX, Mayor
ATTEST:
/s/ Xxxx X. Xxxxx
-----------------------------
(Municipal Seal)
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