SECOND MODIFICATION TO AMENDED AND RESTATED REVOLVING NOTE
This Second Modification to Amended and Restated Revolving
Note (this "Modification"), is made as of the _____ day of June, 2002, by
and between CAVALIER HOMES, INC., a Delaware corporation ("Cavalier Homes"),
QUALITY HOUSING SUPPLY, LLC, a Delaware limited liability company, CAVALIER
MANUFACTURING, INC., a Delaware corporation, CAVALIER INDUSTRIES, INC., a
Delaware corporation, DELTA HOMES, INC., a Mississippi corporation, CAVALIER
ENTERPRISES, INC., a Delaware corporation, CAVALIER ASSOCIATED RETAILERS,
INC., a Delaware corporation, QUALITY CERTIFIED INSURANCE SERVICES, INC., an
Alabama corporation, CAVALIER ASSET MANAGEMENT, INC., a Delaware corporation,
CAVALIER MANUFACTURING ASSET CO., INC., a Delaware corporation, CAVALIER
INDUSTRIES ASSET CO., INC., a Delaware corporation, CAVALIER ENTERPRISES
ASSET CO., INC., a Delaware corporation, CAVALIER REAL ESTATE CO., INC.,
a Delaware corporation, CIS FINANCIAL SERVICES, INC., an Alabama corporation,
formerly Cavalier Acceptance Corporation (collectively the foregoing are
referred to herein as the "Borrowers") and FIRST COMMERCIAL BANK, an
Alabama banking corporation (the "Lender"). All capitalized terms used but
not defined herein shall have the meanings ascribed to them in the Loan
Agreement (defined below).
R E C I T A L S:
WHEREAS, Borrowers executed an Amended and Restated Revolving
Note dated as of March 31, 2000, in the original principal amount of
$35,000,000.00, as amended by that certain Modification to Amended and Restated
Revolving Note dated as of September 29, 2000 (the "Revolving Note"), pursuant
to which Lender made available to Borrowers a revolving line of credit (the
"Revolving Loan"); and
WHEREAS, in connection with the Loan, Borrowers also
executed an Amended and Restated Revolving and Term Loan Agreement dated as of
March 31, 2000 (as heretofore amended, the "Loan Agreement"); and
WHEREAS, in connection with the Third Amendment to Revolving
and Term Loan Agreement dated of even date herewith, Borrowers have requested,
and Lender has agreed, to extend the maturity date of the Revolving Loan from
April 15, 2003 to November 21, 2003, on the condition that Borrowers enter into
this Modification.
NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound hereby, agree as follows:
1. The first paragraph of the Revolving Note is hereby amended
by deleting therefrom "April 15, 2003", and substituting therefor "November 21,
2003".
2 Nothing contained in this Modification is intended to, and
it shall not, constitute a novation or extinguishment of the Revolving Note or
Loan Agreement or of any of the indebtedness evidenced thereby.
3. Except as expressly modified hereby, all other terms,
conditions and covenants set forth in the Revolving Note, the Loan Agreement and
all the other Loan Documents shall remain in full force and effect and shall not
be in any way modified hereby and the same are hereby ratified and affirmed by
Borrowers in all respects.
4. All capitalized terms not otherwise defined herein shall
have those meanings ascribed to them in the Loan Agreement.
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IN WITNESS WHEREOF, Borrower and Lender have caused this
Modification to be executed as of the date set forth above.
BORROWERS:
CAVALIER HOMES, INC.
By: Xxxxxxx X. Xxxxxx [L.S.]
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/s/ Xxxxxxx X. Xxxxxx
Its: Vice President
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QUALITY HOUSING SUPPLY, LLC
By: Xxxxxxx X. Xxxxxx [L.S.]
--------------------------------------------------
/s/ Xxxxxxx X. Xxxxxx
Its: Secretary
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CAVALIER MANUFACTURING, INC.
By: Xxxxxxx X. Xxxxxx [L.S.]
--------------------------------------------------
/s/ Xxxxxxx X. Xxxxxx
Its: Secretary
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CAVALIER INDUSTRIES, INC.
By: Xxxxxxx X. Xxxxxx [L.S.]
--------------------------------------------------
/s/ Xxxxxxx X. Xxxxxx
Its: President
------------------------------------------------
DELTA HOMES, INC.
By: Xxxxxxx X. Xxxxxx [L.S.]
--------------------------------------------------
/s/ Xxxxxxx X. Xxxxxx
Its: Secretary
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CAVALIER ENTERPRISES, INC.
By: Xxxxxxx X. Xxxxxx [L.S.]
--------------------------------------------------
/s/ Xxxxxxx X. Xxxxxx
Its: Vice President
------------------------------------------------
CAVALIER ASSOCIATED RETAILERS, INC.
By: Xxxxxxx X. Xxxxxx [L.S.]
--------------------------------------------------
/s/ Xxxxxxx X. Xxxxxx
Its: Vice President
------------------------------------------------
[Signatures continued on next page]
QUALITY CERTIFIED INSURANCE
SERVICES, INC.
By: Xxxx Xxxxxx [L.S.]
-------------------------------------------------
/s/ Xxxx Xxxxxx
Its: Secretary
------------------------------------------------
CAVALIER ASSET MANAGEMENT, INC.
By: Xxxxxxx X. Xxxxxx [L.S.]
--------------------------------------------------
/s/ Xxxxxxx X. Xxxxxx
Its: President
------------------------------------------------
CAVALIER MANUFACTURING ASSET
CO., INC.
By: Xxxxxxx X. Xxxxxx [L.S.]
--------------------------------------------------
/s/ Xxxxxxx X. Xxxxxx
Its: Vice President
------------------------------------------------
CAVALIER INDUSTRIES ASSET CO., INC.
By: Xxxxxxx X. Xxxxxx [L.S.]
--------------------------------------------------
/s/ Xxxxxxx X. Xxxxxx
Its: Vice President
------------------------------------------------
CAVALIER ENTERPRISES ASSET CO., INC.
By: Xxxxxxx X. Xxxxxx [L.S.]
--------------------------------------------------
/s/ Xxxxxxx X. Xxxxxx
Its: Vice President
------------------------------------------------
CAVALIER REAL ESTATE CO., INC.
By: Xxxxxxx X. Xxxxxx [L.S.]
--------------------------------------------------
/s/ Xxxxxxx X. Xxxxxx
Its: President
------------------------------------------------
CIS FINANCIAL SERVICES, INC.
By: Xxxx Xxxxxx [L.S.]
-------------------------------------------------
/s/ Xxxx Xxxxxx
Its: Secretary
------------------------------------------------
[Signatures continued on next page]
LENDER:
FIRST COMMERCIAL BANK
By: Xxx Xxxxxxxx [L.S.]
--------------------------------------------------
/s/ Xxx Xxxxxxxx
Its Vice President
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