Credit Agreement Modification between RDO Equipment Co. and AG Capital Company (December 28, 2001)

Summary

This agreement modifies the original Credit Agreement dated December 15, 2000, between RDO Equipment Co. (the borrower) and AG Capital Company (the lender). The changes include a new termination date for the loan, updated interest rate terms for Seasonal Note II, and a requirement for RDO Equipment Co. to maintain at least $40 million in net working capital. All other terms of the original agreement remain unchanged.

EX-10.20 3 rdo022259-ex10_20.txt CREDIT AGREEMENT EXHIBIT 10.20 AG CAPITAL COMPANY CREDIT AGREEMENT MODIFICATION FARGO, NORTH DAKOTA DECEMBER 28, 2001 The Credit Agreement made and entered into as of December 15, 2000, by and between RDO EQUIPMENT CO. ("Borrower") and AG CAPITAL COMPANY ("Lender"), is hereby modified as follows: Section one (1), DEFINITIONS, page 6, of the Credit Agreement, shall be modified as follows: "TERMINATION DATE" MEANS THE EARLIER OF (a) DECEMBER 1, 2002; OR (b) THE DATE UPON WHICH THE OBLIGATION OF THE LENDER TO MAKE ADVANCES IS TERMINATED PURSUANT TO SECTION 3.7. Section three (3), THE SEASONAL LOAN II, page 8, of the Credit Agreement, shall be modified as follows: 3.4. "PAYMENTS AND INTEREST ON SEASONAL NOTE II" (a) EXCEPT TO THE EXTENT ANY PART THEREOF IS A FIXED RATE AMOUNT, THE BORROWER AGREES TO PAY INTEREST ON THE OUTSTANDING PRINCIPAL AMOUNT OF SEASONAL NOTE II FROM THE DATE HEREOF UNTIL PAID IN FULL AT A RATE PER ANNUM EQUAL TO LIBOR PLUS 400 BASIS POINTS, EFFECTIVE JANUARY 1, 2002, DETERMINED TWO (2) BUSINESS DAYS PRIOR TO THE FIRST BUSINESS DAY OF ANY CALENDAR WEEK AND FIXED UNTIL THE FIRST BUSINESS DAY OF THE FOLLOWING CALENDAR WEEK. (b) AFTER THE DATE HEREOF, INTEREST ACCRUED ON SEASONAL NOTE II THROUGH MATURITY SHALL BE PAYABLE FOR EACH CALENDAR MONTH ON THE FIFTEENTH (15TH) DAY OF THE FOLLOWING CALENDAR MONTH AND AT MATURITY, WHEN THE ENTIRE OUTSTANDING PRINCIPAL AMOUNT SHALL BE DUE AND PAYABLE. INTEREST ACCRUED AFTER MATURITY SHALL BE PAYABLE UPON DEMAND. Section fifteen (15), AFFIRMATIVE COVENANTS, page 22, of the Credit Agreement, shall be modified as follows: 15.10. "NET WORKING CAPITAL." MAINTAIN AT ALL TIMES NET WORKING CAPITAL OF AT LEAST $40,000,000. Except as expressly modified by the terms of this Credit Agreement Modification, all of the terms and conditions of the Credit Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed this agreement this 28th day of December, 2001. RDO EQUIPMENT CO. a Delaware corporation By: /s/ Thomas K. Espel -------------------------- Thomas K. Espel Its: Treasurer AG CAPITAL COMPANY a Delaware corporation By: /s/ Peter Nutz -------------------------- Peter Nutz Its: Director of Finance DECEMBER 28, 2001