Exhibit 10.1

 

AMENDMENT NO. 2 TO

SECOND AMENDED AND

RESTATED CREDIT AGREEMENT

 

THIS AMENDMENT NO 2 TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”) is entered into at Columbus, Ohio, as of February 1, 2005, by and
among (a) Dominion Homes, Inc. (the “Company”), (b) the institutions from time
to time party to the Credit Agreement (as defined below) signatory hereto
(individually a “Lender” and collectively the “Lenders”), and (c) The Huntington
National Bank (“Huntington”) in its separate capacity as administrative agent
for the Lenders and issuing banks under the Credit Agreement (with its
successors in such capacity, the “Administrative Agent”). This Amendment further
amends and modifies a certain Second Amended and Restated Credit Agreement dated
as of December 3, 2003 (as amended, supplemented, restated or otherwise modified
from time to time, the “Credit Agreement”) by and among (a) the Company, as
borrower, (b) the Lenders, as lenders, (c) KeyBank National Association, as
Syndication Agent, (d) U. S. Bank National Association, as Documentation Agent,
and (e) Huntington, as issuing bank for any Letters of Credit issued pursuant to
the Credit Agreement, a Lender and Administrative Agent. All capitalized terms
not otherwise defined herein shall have the meanings ascribed to such terms in
the Credit Agreement.

 

RECITALS:

 

A. As of December 3, 2003, the Company, the Lenders, the Administrative Agent
and the other agents referred to therein executed and delivered the Credit
Agreement setting forth the terms of certain extensions of credit to the
Company; and

 

B. As of December 3, 2003, and, subsequently, June 30, 2004, in connection with
the Credit Agreement, the Company executed and delivered, inter alia, revolving
credit notes and replacement revolving credit notes in favor of the Lenders, in
the aggregate original principal sum of Three Hundred Million Dollars
($300,000,000) and a swing note in favor of Huntington in the principal sum of
Fifteen Million Dollars ($15,000,000) (hereinafter collectively, the “Notes”);
and

 

C. In connection with the Credit Agreement and the Notes, the Company and
certain of its Subsidiaries executed and delivered to the Administrative Agent
certain other Loan Documents; and

 

D. The Company has requested that the Lenders and the Administrative Agent amend
and modify a certain covenant in the Loan Agreement in order to increase for a
limited period of time the maximum permitted inventory of Speculative Homes, and
the Required Lenders and the Administrative Agent are willing to do so upon the
terms and conditions contained herein.

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NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

1. Section 8.21, “Speculative Homes,” of the Credit Agreement is hereby amended
to recite in its entirety as follows:

 

8.21 Speculative Homes.

 

The Company and its Subsidiaries will not have an inventory of Speculative Homes
and other dwellings built for speculation, whether now owned or hereafter
acquired, that exceeds (i) $35,000,000 in the aggregate outstanding for the
period beginning December 31, 2004, through and including June 29, 2005, and
(ii) $30,000,000 in the aggregate outstanding beginning June 30, 2005, and at
any time thereafter, valued the at the lesser of cost or market.

 

2. Conditions of Effectiveness. All provisions of this Amendment shall become
effective as of February 1, 2005, upon satisfaction of all of the following
conditions precedent:

 

(a) The Administrative Agent shall have received:

 

(i) duly executed counterparts (with sufficient copies for the Administrative
Agent, each Lender and the Company) of this Amendment executed by the
Administrative Agent, the Lenders and the Company;

 

(ii) a Closing Certificate by the Company and each Guarantor; and

 

(iii) such other certificates, instruments, documents, agreements, and opinions
of counsel as may be required by the Administrative Agent, each of which shall
be in form and substance satisfactory to the Administrative Agent and its
counsel; and

 

(b) The representations contained in the immediately following paragraph shall
be true and accurate.

 

3. Representations and Warranties. The Company represents and warrants to the
Administrative Agent and each Lender as follows: (a) that after giving effect to
this Amendment, each representation and warranty made by or on behalf of the
Company in the Credit Agreement and in the other Loan Documents is true and
correct in all respects on and as of the date hereof as though made on and as of
such date, except to the extent that any such representation or warranty
expressly relates solely to a date prior hereto; (b) the execution, delivery and
performance by the Company and each Restricted Subsidiary, if applicable, of
this Amendment and the Loan Documents, as the case may be, have been duly
authorized by all requisite corporate or organizational action on the part of
each such Person and will not violate any Constituent Document of such Person;
(c) each of this Amendment and the Loan Documents has been duly

 

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executed and delivered by the Company and each Restricted Subsidiary, as
applicable, and each of this Amendment, the Credit Agreement as amended hereby
and Loan Document constitutes the legal, valid and binding obligation of such
Person, enforceable against each such Person in accordance with the terms
thereof; and (d) no event has occurred and is continuing, and no condition
exists which would constitute an Event of Default or a Potential Default.

 

4. Reference to and Effect on the Loan Documents. (a) Upon the effectiveness of
this Amendment, each reference in the Credit Agreement to “Second Amended and
Restated Credit Agreement,” “Credit Agreement,” “Agreement,” the prefix
“herein,” “hereof,” or words of similar import, and each reference in the Loan
Documents to the Credit Agreement, shall mean and be a reference to the Credit
Agreement as amended hereby. (b) Except to the extent amended or modified
hereby, all of the representations, warranties, terms, covenants and conditions
of the Credit Agreement and the Loan Documents shall remain as written
originally and in full force and effect in accordance with their respective
terms and are hereby ratified and confirmed, and nothing herein shall affect,
modify, limit or impair any of the rights and powers which the Lenders or the
Administrative Agent may have hereunder or thereunder. The amendment set forth
herein shall be limited precisely as provided for herein, and shall not be
deemed to be a waiver of, amendment of, consent to or modification of any of the
rights of the Lenders or the Administrative Agent under or of any other term or
provisions of the Credit Agreement or any Loan Document, or of any term or
provision of any other instrument referred to therein or herein or of any
transaction or future action on the part of the Company which would require the
consent of the Lenders or the Administrative Agent.

 

5. Counterparts. This Amendment may be executed in any number of counterparts
and by different parties hereto in separate counterparts, each of which when so
executed and delivered, shall be an original, and all of which together will
constitute one and the same instrument. Receipt by the Administrative Agent of a
facsimile copy of an executed signature page hereof will constitute receipt by
the Administrative Agent of an executed counterpart of this Amendment.

 

6. Costs and Expenses. The Company agrees to pay on demand in accordance with
the terms of the Credit Agreement all reasonable costs and expenses of the
Administrative Agent in connection with the preparation, reproduction, execution
and delivery of this Amendment and all other Loan Documents entered into in
connection herewith, including the reasonable fees and out-of-pocket expenses of
the Administrative Agent’s counsel with respect thereto.

 

7. Governing Law. This Amendment and the rights and obligations of the parties
hereto shall be governed by, and construed and interpreted in accordance with,
the law of the State of Ohio.

 

8. Headings. Section headings in this Amendment are included herein for
convenience of reference only and will not constitute a part of this Amendment
for any other purpose.

 

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9. Patriot Act Notice. The Lenders and the Administrative Agent hereby notify
the Company that pursuant to the requirements of the USA Patriot Act (Title III
of Pub.L.10756 (signed into law October 26, 2001)) (the “Act”), they are
required to obtain, verify and record information that identifies the Company,
which information includes the name and address of the Company and other
information that will allow the Lenders and the Administrative Agent to identify
the Company in accordance with the Act.

 

[Signature pages follow.]

 

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IN WITNESS WHEREOF, the Company, the Administrative Agent and the following
Lenders have hereunto set their hands as of the date first set forth above.

 

COMPANY: DOMINION HOMES, INC. By:  

/s/ Terrence R. Thomas

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Its:   Senior Vice President and Chief Financial Officer ADMINISTRATIVE AGENT:
THE HUNTINGTON NATIONAL BANK By:  

/s/ Frederick G. Hadley

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Its:   Senior Vice President THE LENDERS: THE HUNTINGTON NATIONAL BANK, as
Lender and Issuing Bank By:  

/s/ Frederick G. Hadley

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Its:   Senior Vice President JPMORGAN CHASE BANK, N.A. (successor by merger to
Bank One, NA (Main Office Columbus)) By:  

/s/ David A. DeVictor

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Its:   First Vice President

 

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KEYBANK NATIONAL ASSOCIATION, By:  

/s/ Andrew D. Stickney

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Its:   Vice President NATIONAL CITY BANK By:  

/s/ Steven A. Smith

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Its:   Senior Vice President THE PROVIDENT BANK By:  

/s/ Michael Martin

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Its:   Senior Vice President COMERICA BANK By:  

/s/ Charles Weddell

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Its:   Vice President U.S. BANK NATIONAL ASSOCIATION By:  

/s/ Dean J. VandeWater

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Its:   Vice President FIFTH THIRD BANK (CENTRAL OHIO) By:  

 

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Its:  

 

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FLEET NATIONAL BANK By:  

/s/ Mark W. Lariviere

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Its:   Senior Vice President WASHINGTON MUTUAL BANK, FA, a federal association
By:  

/s/ Javier Barrera

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Its:   Vice President

 

 

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CONSENT OF GUARANTORS

 

The undersigned, each being a guarantor of the Company’s indebtedness to the
Lenders pursuant to certain guaranty agreements executed and delivered to the
Administrative Agent, hereby consents and agrees to be bound by the terms,
conditions and execution of the above Amendment and hereby further agrees that
(i) each of their obligations shall be continuing as provided in said guaranty
agreements, and (ii) said guaranty agreements shall remain as written originally
and continue in full force and effect in all respects.

 

DOMINION HOMES OF KENTUCKY GP, LLC   DOMINION HOMES REALTY, LLC By:  

/s/ Terrence R. Thomas

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  By:  

/s/ Terrence R. Thomas

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Its:   Vice President and Treasurer   Its:   Vice President and Treasurer
ALLIANCE TITLE AGENCY OF KENTUCKY, LLC   RESOLUTION PROPERTY COMPANY, LLC By:  

/s/ Terrence R. Thomas

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  By:  

/s/ Terrence R. Thomas

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Its:   Vice President and Treasurer   Its:   President             DOMINION
HOMES OF KENTUCKY, LTD., a Kentucky limited partnership     By:   Dominion Homes
of Kentucky GP, LLC, a Kentucky limited liability company, its general partner  
          By:  

/s/ Terrence R. Thomas

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            Its:   Vice President and Treasurer

 

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