SECOND MODIFICATION
OF
CREDIT AGREEMENT
This Second Modification of Credit Agreement ("Agreement") is made this
____ day of December, 1996, among THE ROTTLUND COMPANY, INC., a Minnesota
corporation ("Borrower"), THE FIRST NATIONAL BANK OF BOSTON, a national
banking association having its principal place of business at 000 Xxxxxxx
Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx 00000, ("FNBB") and THE FIRST NATIONAL BANK OF
BOSTON, as Agent (the "Agent") for itself and the other lending institutions
which are or may become parties to the Credit Agreement (as hereinafter
defined).
W I T N E S S E T H:
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IN CONSIDERATION OF TEN AND NO/100 DOLLARS ($10.00) and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the undersigned Borrower and FNBB hereby covenant and agree as
follows:
. RECITALS. The following Recitals are true and correct as of the
date of this Agreement:
() The Borrower, FNBB and the Agent entered into that certain
Credit Agreement dated as of October 23, 1996, and that certain First
Modification of Credit Agreement dated November 19 1996, (the foregoing
Credit Agreement, as modified, is referred to herein as "Credit Agreement").
() The parties to the Credit Agreement wish to amend and modify
the Credit Agreement.
() All terms not otherwise defined herein shall have the same
meaning as in the Credit Agreement.
. The Credit Agreement is hereby modified as follows:
() By deleting in its entirety the portion of the definition of
Borrowing Base set forth at Section 1 BORROWING BASE (A) (i) and by
substituting in lieu thereof the following:
"(i) 75% of Lot Book Value of Developed Lots; PLUS"
(b) By substituting "95%" for "90%" in subsection (ii) of this
definition.
(c) By deleting Section 10.4 (b) in its entirety and by
substituting in lieu thereof the following:
"(b) Unit Costs of Unsold Units shall not exceed 70% of
Tangible Net Worth during the term of this Agreement provided that for
purposes of the calculation made on each December 31 during the term of this
Agreement, the applicable percentage shall be 80% rather than 70%;
3. Except as modified hereby, the undersigned hereby ratify and
reaffirm the terms and conditions of the Credit Agreement.
4. This Agreement may be executed in any number of counterparts each
of which shall be deemed an original.
IN WITNESS WHEREOF, the undersigned Borrower and Agent have hereunto
caused this instrument to be executed by their duly authorized corporate
officers and their seal to be affixed hereto as of the day and year first
above written.
THE ROTTLUND COMPANY, INC., a Minnesota
corporation
By:
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Title:
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THE FIRST NATIONAL BANK OF BOSTON,
a national banking association
By:
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XXXXX X. XXXX, Director
The undersigned guarantors hereby agree to all modifications of the
Credit Agreement and hereby ratify and reaffirm their respective Subsidiary
Guaranty dated as of October 23, 1996.
NORTHCOAST MORTGAGE, INC.
By:
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Its:
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ROTTLUND HOMES OF FLORIDA, INC.
By:
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Its:
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ROTTLUND HOMES OF INDIANA, INC.
By:
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Its:
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ROTTLUND HOMES OF INDIANA LIMITED
PARTNERSHIP
By:
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Its:
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ROTTLUND HOMES OF IOWA, INC.
By:
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Its:
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ROTTLUND HOMES OF NEW JERSEY
By:
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Its:
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