Amendment to Loan Agreement between Deer Valley Homebuilders, Inc. and Fifth Third Bank
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Summary
This amendment updates the existing loan agreement between Deer Valley Homebuilders, Inc. and Fifth Third Bank. It renews the loan for $2,500,000, modifies references to the loan and note, and requires Deer Valley Corporation to provide a new guaranty due to a corporate merger. The amendment also deletes a section on cash collateralization and states that all other terms of the original agreement remain unchanged. The agreement is effective as of April 2007.
EX-10.4 5 ex10-4.htm AMENDMENT TO LOAN AGREEMENT Amendment to Loan Agreement
EXHIBIT 10.4
AMENDMENT TO LOAN AGREEMENTThis Amendment (the "Amendment") is entered into this ____ day of April, 2007, by and between DEER VALLEY HOMEBUILDERS, INC., an Alabama corporation (the "Borrower") and FIFTH THIRD BANK, a Michigan banking corporation (the "Bank"), and amends and modifies that certain Revolving Credit Loan and Security Agreement dated April 12, 2006 (the "Loan Agreement") as follows:
1. Terms. All of the capitalized terms in this Amendment shall have the meanings as defined in the Loan Agreement.
2. Loan Renewal. The Bank has renewed the Loan in the amount of $2,500,000.00 (the "Renewal Loan") as evidenced by a Renewal Revolving Credit Note dated effective April 12, 2007 (the "Renewal Note").
3. Loan. The term "Loan" under the Loan Agreement is hereby modified to include the Renewal Loan.
4. Note. The term "Note" under the Loan Agreement is hereby modified to reference the Renewal Note.
5. Guarantors. Cytation Corp. has been merged into Deer Valley Corporation ("DVC") and it is a condition to the Bank granting this renewal that DVC execute a new restated Continuing Guaranty for the Loan.
6. Financial Convenants. [need to insert revised ratio for 6.10(b)].
7. Cash Collateralization. Section 9.5 of the Loan Agreement is hereby deleted in its entirety.
8. Other Terms. Except as specifically modified and amended by the terms set forth in this Amendment, all of the other terms, covenants, obligations and conditions of the Loan Agreement shall remain in full force and effect.
Entered into as of the day and year first above written.
| BORROWER: | ||
| WITNESSES: | DEER VALLEY HOMEBUILDERS, INC., | |
| an Alabama corporation | ||
| _____________________________ | By:___________________________________ | |
| Signature of Witness | Joel Logan, as its President | |
| _____________________________ | ||
| Print or type Name of Witness | ||
| _____________________________ | (CORPORATE SEAL) | |
| Signature of Witness | ||
| _____________________________ | ||
| Print or type Name of Witness | ||
| BANK: | ||
| FIFTH THIRD BANK, | ||
| a Michigan banking corporation | ||
| _____________________________ | By:___________________________________ | |
| Signature of Witness | Chad Loar, as its Vice President | |
| _____________________________ | ||
| Print or type Name of Witness | ||
| _____________________________ | (CORPORATE SEAL) | |
| Signature of Witness | ||
| _____________________________ | ||
| Print or type Name of Witness |
