EXHIBIT 10.29

 

TENTH AMENDMENT TO

LOAN AGREEMENT

 

THIS TENTH AMENDMENT TO LOAN AGREEMENT (the “Amendment”) dated as of August 28,
2003 between NVR MORTGAGE FINANCE, INC., a Virginia corporation (“Borrower”),
the Lenders party to the Loan Agreement referred to below (“Lenders”), U.S. BANK
NATIONAL ASSOCIATION, as agent (“Agent”) for the Lenders.

 

WITNESSETH THAT:

 

WHEREAS, the Borrower, the Lenders and the Agent are parties to a Loan Agreement
dated as of September 7, 1999, as amended by a Consent, Waiver and First
Amendment to Loan Agreement dated as of November 19, 1999, a Second Amendment to
Loan Agreement and Second Amendment to Pledge and Security Agreement dated as of
September 1, 2000, a Third Amendment to Loan Agreement dated as of February 16,
2001, a Fourth Amendment to Loan Agreement dated as of August 31, 2001, a Fifth
Amendment to Loan Agreement dated as of November 1, 2001, a Consent, Waiver and
Sixth Amendment to Loan Agreement dated as of December 14, 2001, a Seventh
Amendment to Loan Agreement dated as of May 17, 2002, an Eighth Amendment to
Loan Agreement dated as of August 15, 2002 and a Ninth Amendment to Loan
Agreement dated as of April 16, 2003 (as so amended, the “Loan Agreement”),
pursuant to which the Lenders provide the Borrower with a revolving mortgage
warehousing credit facility;

 

WHEREAS, the Borrower and the Lenders have agreed to amend the Loan Agreement
upon the terms and conditions herein set forth.

 

NOW, THEREFORE, for value received, the receipt and sufficiency of which are
hereby acknowledged, the Borrower, the Lenders and the Agent agree as follows:

 

1. Certain Defined Terms. Each capitalized term used herein without being
defined herein that is defined in the Loan Agreement shall have the meaning
given to it therein.

 

2. Amendments to Loan Agreement. The Loan Agreement is hereby amended as
follows:

 

(a) Subsection (iv) of the definition of “Borrowing Base” in Section 1.1 of the
Loan Agreement is hereby amended in its entirety to read as follows:

 

Jumbo Loans shall be 30% of the then Total Commitment.

 

(b) The definition of “Scheduled Termination Date” in Section 1.1 of the Loan
Agreement is hereby amended in its entirety to read as follows:

 

“Scheduled Termination Date” means August 26, 2004.

 

(c) Section 2.1(g) of the Loan Agreement is hereby amended to read in its
entirety as follows:

 

(g) Increases. Borrower may from time to time request any Lender to increase its
Commitment, provided that the Total Commitment may be increased to no more than
$200,000,000. That increase must be effected by an amendment executed by
Borrower, Agent, and the increasing Lender. Borrower shall execute and deliver
to each such Lender a Committed Warehouse Note in the stated amount of its new
Commitment. No Lender is obligated to increase its Commitment under any
circumstances, and no Lender’s Commitment may be increased except by its
execution of an amendment as stated above. Each Lender

 

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providing such additional Commitment increase shall be a “Lender” hereunder,
entitled to the rights and benefits, and subject to the duties, of a Lender
under the Loan Documents. All amounts advanced hereunder pursuant to any such
additional Commitment shall be secured by the Collateral on a pari passu basis
with all other amounts advanced hereunder. In the event the Total Commitment is
increased, Agent shall notify each Lender in writing of such increase and shall
provide each Lender with a copy of the amendment giving effect to such increase,
together with an updated Schedule 1.1(a) to this Agreement reflecting the
Commitment Amount of each Lender. In the case of a Commitment increase, each
Lender’s Commitment Percentage shall be recalculated to reflect the new
proportionate share of the revised Total Commitment and the Lender holding an
additional Commitment shall, immediately upon receiving notice from Agent, pay
to the Agent an amount equal to its pro rata share of the Borrowings outstanding
as of such date. All such payments shall reduce ratably the outstanding
principal balance of the Committed Warehouse Notes, shall be distributed by the
Agent to the Lenders for application accordingly, and shall represent Borrowings
to Borrower under the increasing Lender’s Committed Warehouse Note. The
increasing Lender shall be entitled to share ratably in interest accruing on the
balances purchased, at the rates provided herein for such balances, from and
after the date of such payment. All new Borrowings occurring after an increase
of the Total Commitment shall be funded in accordance with each Lender’s revised
Commitment Percentage.

 

(d) Section 7.9 of the Loan Agreement is hereby amended in its entirety to read
as follows:

 

7.9 Adjusted Tangible Net Worth. Adjusted Tangible Net Worth at any date shall
not be less than $14,000,000, and in the event the Total Commitment is increased
from $175,000,000, then as of the date of such increase and thereafter Adjusted
Tangible Net Worth shall not be less than the quotient obtained when the Total
Commitment is divided by 12.5.

 

(e) Schedule 1.1(a) to the Loan Agreement is hereby amended in its entirety to
read as set forth on Exhibit A to this Amendment, which Exhibit A is hereby made
a part of the Loan Agreement as Schedule 1.1(a) thereto.

 

3. Conditions to Effectiveness of this Amendment. This Amendment shall be
effective as of August 28, 2003 (the “Effective Date”), provided the Agent shall
have received at least nine (9) counterparts of this Amendment, duly executed by
the Borrower and all of the Lenders, and the following conditions are satisfied:

 

(a) Before and after giving effect to this Amendment, the representations and
warranties of the Borrower in Section 5 of the Loan Agreement and Section 5 of
the Security Agreement shall be true and correct as though made on the date
hereof, except to the extent such representations and warranties by their terms
are made as of a specific date and except for changes that are permitted by the
terms of the Loan Agreement.

 

(b) Before and after giving effect to this Amendment, no Event of Default and no
Default shall have occurred and be continuing.

 

(c) No material adverse change in the business, assets, financial condition or
prospects of the Borrower shall have occurred since December 31, 2002.

 

(d) The Agent shall have received the following, each duly executed or
certified, as the case may be, and dated as of the date of delivery thereof:

 

(i) a copy of resolutions of the Board of Directors of the Borrower, certified
by its respective Secretary or Assistant Secretary, authorizing or ratifying the
execution, delivery and performance of this Amendment;

 

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(ii) a certified copy of any amendment or restatement of the Articles of
Incorporation or the Bylaws of the Borrower made or entered following the date
of the most recent certified copies thereof furnished to the Lenders; and

 

(iii) such other documents, instruments and approvals as the Agent may
reasonably request.

 

4. Acknowledgments. The Borrower and each Lender acknowledges that, as amended
hereby, the Loan Agreement remains in full force and effect with respect to the
Borrower and the Lenders, and that each reference to the Loan Agreement in the
Loan Documents shall refer to the Loan Agreement, as amended hereby. The
Borrower confirms and acknowledges that it will continue to comply with the
covenants set out in the Loan Agreement and the other Loan Documents, as amended
hereby, and that its representations and warranties set out in the Loan
Agreement and the other Loan Documents, as amended hereby, are true and correct
as of the date of this Amendment, except to the extent such representations and
warranties by their terms are made as of a specific date and except for changes
that are permitted by the terms of the Loan Agreement. The Borrower represents
and warrants that (i) the execution, delivery and performance of this Amendment
is within its corporate powers and have been duly authorized by all necessary
corporate action; (ii) this Amendment has been duly executed and delivered by
the Borrower and constitutes the legal, valid and binding obligations of the
Borrower, enforceable against the Borrower in accordance with its terms (subject
to limitations as to enforceability which might result from bankruptcy,
insolvency, or other similar laws affecting creditors’ rights generally and
general principles of equity) and (iii) no Events of Default or Default exist.

 

5. General.

 

(a) The Borrower agrees to reimburse the Agent upon demand for all reasonable
expenses (including reasonable attorneys fees and legal expenses) incurred by
the Agent in the preparation, negotiation and execution of this Amendment and
any other document required to be furnished herewith, and to pay and save the
Lenders harmless from all liability for any stamp or other taxes which may be
payable with respect to the execution or delivery of this Amendment, which
obligations of the Borrower shall survive any termination of the Loan Agreement.

 

(b) This Amendment may be executed in several counterparts, each of which, when
so executed, shall be deemed an original but all such counterparts shall
constitute but one and the same instrument.

 

(c) Any provision of this Amendment which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining portions
hereof or affecting the validity or enforceability of such provisions in any
other jurisdiction.

 

(d) This Amendment shall be governed by, and construed in accordance with, the
internal law, and not the law of conflicts, of the State of Minnesota, but
giving effect to federal laws applicable to national banks.

 

(e) This Amendment shall be binding upon the Borrower, the Lenders, the Agent
and their respective successors and assigns, and shall inure to the benefit of
the Borrower, the Lenders, the Agent and the successors and assigns of the
Lenders and the Agent.

 

[Remainder of page intentionally left blank.]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
as of the day and year first above written.

 

NVR MORTGAGE FINANCE, INC.

By:

 

/s/    William J. Inman        

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Its:

 

President

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U.S. BANK NATIONAL ASSOCIATION, as
Agent and Lender

By:

 

/s/    Kathleen Connor        

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Its:

 

Vice President

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GUARANTY BANK

By:

 

/s/    Jenny Ray Stilwell

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Its:

 

Vice President

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5

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NATIONAL CITY BANK OF KENTUCKY

By:

 

/s/    Mary Jo Reiss

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Its:

 

Vice President

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COMERICA BANK

By:

 

/s/    Paul G. Default

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Its:

 

Vice President

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JPMORGAN CHASE BANK

   

By:

 

/s/    Cynthia E. Crites

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Its:

 

Senior Vice President

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BANK ONE, NA (MAIN OFFICE CHIGAGO)

By

 

/s/    Rodney Davis

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Its

 

Associate Director

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EXHIBIT A TO

TENTH AMENDMENT

TO LOAN AGREEMENT

 

SCHEDULE 1.1(a)

 

Lender

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Commitment

Amount

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U.S. Bank National Association

Mortgage Banking Services

U.S. Bank Place

800 Nicollet Mall

Mail Station BC-MN-H03B

Minneapolis, Minnesota 55402

Attention: Kathleen Connor

Telephone: 612-973-0306

Telecopy: 612-973-0826

   $ 52,500,000

Guaranty Bank

8333 Douglas, 11th Floor

Dallas, Texas 75225

Attention: Jenny Stilwell

Telephone: 214-360-2837

Telecopy: 214-360-1660

   $ 35,000,000

Bank One, NA

1 Bank One Plaza, 16th Floor

Chicago, IL 60670

Attention: Rodney S. Davis

Telephone: 312-732-2714

Telecopy: 312-732-6222

   $ 11,667,500

Comerica Bank

Comerica Tower at Detroit Center

500 Woodward Avenue

Detroit, MI 48226

Attention: Steve D. Clear

Telephone: 313-222-3042

Telecopy: 313-222-9295

   $ 23,332,500

National City Bank of Kentucky

101 South 5th Street

Louisville, KY 40202

Attention: Mary Jo Reiss

Telephone: 502-581-4197

Telecopy: 502-581-4154

   $ 23,332,500

JPMorgan Chase Bank

707 Travis – 6 CBBN 91

Houston, TX 77002-8091

Attention: Ms. Cynthia E. Crites

Telephone: 713-216-4425

Telecopy: 713-216-1567

   $ 29,167,500

TOTAL

   $ 175,000,000

 

 

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