Document:

Amendment to the First Amended and Restated Revolving Credit Agreement

    Exhibit
      10.4

    

    

    SECOND
      AMENDMENT TO 

    FIRST
      AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT

     

    THIS
      SECOND AMENDMENT TO FIRST AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT
      (herein called this "Amendment")
      dated
      as of April 27, 2007 by and among M/I FINANCIAL CORP., an Ohio corporation
      ("Financial"),
      M/I
      HOMES, INC. (formerly known as M/I Schottenstein Homes, Inc.), an Ohio
      corporation ("M/I
      Homes")
      (Financial and M/I Homes are sometimes hereinafter referred to collectively
      as
      the "Borrowers"),
      and
      GUARANTY BANK, a federal savings bank ("Bank"),

     

    W
      I T N E
      S S E T H:

     

    WHEREAS,
      Borrowers and Bank have entered into that certain First Amended and Restated
      Revolving Credit Agreement dated as of April 27, 2006 (as heretofore
      amended by the First Amendment to First Amended and Restated Revolving Credit
      Agreement made as of November 13, 2006, the "Original
      Credit Agreement"),
      for
      the purposes and consideration therein expressed, pursuant to which Bank became
      obligated to make loans to Borrowers as therein provided; and

     

    WHEREAS,
      Borrowers and Bank desire to amend the Original Credit Agreement as provided
      herein;

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual covenants and
      agreements contained herein and in the Original Credit Agreement, in
      consideration of the loans which may hereafter be made by Bank to Borrowers,
      and
      for other good and valuable consideration, the receipt and sufficiency of which
      are hereby acknowledged, the parties hereto do hereby agree as
      follows:

     

    ARTICLE
      I.  

     

    

     

    Definitions
      and References

     

    Section
      1.1.  Terms
      Defined in the Original Credit Agreement.
      Unless
      the context otherwise requires or unless otherwise expressly defined herein,
      the
      terms defined in the Original Credit Agreement shall have the same meanings
      whenever used in this Agreement.

     

    Section
      1.2.  Other
      Defined Terms.
      Unless
      the context otherwise requires, the following terms when used in this Amendment
      shall have the meanings assigned to them in this Section 1.2.

     

    "Amendment"
      shall
      mean this Second Amendment to Credit Agreement.

     

    "Amendment
      Documents"
      shall
      mean, collectively, this Amendment and the Renewal Note.

     

    "Commitment"
      shall
      mean the Bank's agreement to make the Loans to the Borrowers pursuant to
      subsection 2.1 hereof in the amount referred to herein, which amount shall
      not exceed the lesser of (a)(i) from and including April 27, 2007
      through and including December 14, 2007, $40,000,000, (ii) from and
      including December 15, 2007 through and including January 15, 2008,
      $65,000,000 and (iii) from and including January 16, 2008 through and
      including April 25, 2008, $40,000,000, and (b) the Borrowing Base in
      existence at such time.

     

    "Credit
      Agreement"
      shall
      mean the Original Credit Agreement, as amended hereby.

     

    "Renewal
      Note"
      shall
      mean a promissory note in the form attached hereto as
      Exhibit A.

     

    ARTICLE
      II.  

     

    

     

    Amendments
      to Original Credit Agreement

     

    Section
      2.1.  Definitions.
      

     

    (a)  The
      definition of "Commitment
      Period"
      in
      Section 1.1 of the Original Credit Agreement is hereby amended in its
      entirety to read as follows:

     

    "Commitment
      Period"
      shall
      mean the period from and including April 27, 2007 through and including
      April 25, 2008, or such earlier date as the Commitment shall terminate as
      provided herein, subject to any extension of the Commitment pursuant to
subsection 2.7
      of this
      Agreement.

     

    (b)  The
      definition of "Eligible
      Mortgage Loan"
      in
      Section 1.1 of the Original Credit Agreement is hereby amended by amending
      clause ii. thereof to read as follows:

     

    ii. Such
      Mortgage Loan was made by Financial and purchased by Financial to enable a
      natural person or persons or trust either to purchase a home from M/I Homes
      or
      another Person that is substantially completed or to refinance an existing
      mortgage loan; provided that
      (A) the aggregate amount of Eligible Mortgage Loans consisting of loans
      made by Financial for the purchase of homes from any Person other than M/I
      Homes
      does not exceed the Other Mortgage Sublimit, (B) the aggregate amount of
      Eligible Mortgage Loans used to refinance existing mortgage loans does not
      exceed the ReFi Sublimit; (C) the aggregate amount of Eligible Mortgage
      Loans that are CD Enhanced Loans does not exceed the CD Enhanced Sublimit,
      (D) the aggregate amount of Eligible Mortgage Loans that are Second
      Mortgage Loans does not exceed the Second Mortgage Sublimit, and (E) the
      aggregate amount of Eligible Mortgage Loans that are subject to repurchase
      obligations described in clause (G) of the definition of Mortgage Loan
      Repurchase Obligations shall not exceed the Deferred Payment
      Sublimit;

     

    Section
      2.2.  Exhibits.
      Exhibit A (Form of Note) attached to this Amendment is hereby substituted
      for Exhibit A to the Original Credit Agreement.

     

    ARTICLE
      III.  

     

    

     

    Conditions
      of Effectiveness

     

    Section
      3.1.  Effective
      Date.
      This
      Amendment shall become effective as of the date first above written when and
      only when Bank shall have received, at Bank's office,

     

    (a)  a
      duly
      executed counterpart of this Amendment,

     

    (b)  the
      Renewal Note,

     

    (c)  a
      duly
      executed certificate of the president, chief executive officer or chief
      financial officer and of the secretary of each Borrower certifying
      (i) that, in the case of M/I Homes, the action of the executive committee
      of the board of directors, and, in the case of Financial, the action of sole
      shareholder, authorizing the execution, delivery and performance of this
      Amendment and the Note and identifying the officers authorized to sign this
      Amendment and the Note, copies of which actions are attached to the respective
      certificates, are in full force and effect, (ii)  that the specimen
      signatures of the officers so authorized, copies of which specimen signatures
      are attached to the respective certificates, are true and correct, and
      (iii)  that the articles of incorporation and code of regulations of such
      Borrower have not been amended since the date of the Original Credit Agreement;
      and.

     

    (d)  each
      other document to be executed and delivered by Borrowers pursuant hereto or
      thereto.

     

    ARTICLE
      IV.  

     

    

     

    Representations
      and Warranties

     

    Section
      4.1.  Representations
      and Warranties of Borrowers.
      In
      order to induce Bank to enter into this Amendment, each Borrower represents
      and
      warrants to Bank that:

     

    (a)  The
      representations and warranties contained in Section 3 of the Original
      Credit Agreement are true and correct at and as of the time of the effectiveness
      hereof;

     

    (b)  Each
      Borrower is duly authorized to execute and deliver this Amendment and the other
      Amendment Documents and is and will continue to be duly authorized to borrow
      and
      to perform its obligations under the Original Credit Agreement. Each Borrower
      has duly taken all corporate action necessary to authorize the execution and
      delivery of this Amendment and the other Amendment Documents and to authorize
      the performance of the obligations of such Borrower hereunder and
      thereunder;

     

    (c)  The
      execution and delivery by each Borrower of this Amendment and the other
      Amendment Documents, the performance by each Borrower of its obligations
      hereunder and thereunder and the consummation of the transactions contemplated
      hereby do not and will not conflict with any provision of law, statute, rule
      or
      regulation or of the articles of incorporation and bylaws of such Borrower,
      or
      of any material agreement, judgment, license, order or permit applicable to
      or
      binding upon such Borrower, or result in the creation of any lien, charge or
      encumbrance upon any assets or properties of such Borrower. Except for those
      which have been duly obtained, no consent, approval, authorization or order
      of
      any court or governmental authority or third party is required in connection
      with the execution and delivery by Borrowers of this Amendment and the other
      Amendment Documents or to consummate the transactions contemplated hereby and
      thereby; and

     

    (d)  When
      duly
      executed and delivered, each of this Amendment and the other Amendment Documents
      will be a legal and binding instrument and agreement of Borrowers, enforceable
      in accordance with its terms, except as limited by bankruptcy, insolvency and
      similar laws applying to creditors' rights generally and by principles of equity
      applying to creditors' rights generally.

     

    ARTICLE
      V.  

     

    

     

    Miscellaneous

     

    Section
      5.1.  Ratification
      of Agreement.
      The
      Original Credit Agreement as hereby amended is hereby ratified and confirmed
      in
      all respects. Any reference to the Credit Agreement in any Loan Document shall
      be deemed to refer to this Amendment also. Any reference to the Note in any
      other Loan Document shall be deemed to be a reference to the Renewal Note issued
      and delivered pursuant to this Amendment. The execution, delivery and
      effectiveness of this Amendment, the other Amendment Documents, shall not,
      except as expressly provided herein, operate as a waiver of any right, power
      or
      remedy of Bank under the Original Credit Agreement or any other Loan Document
      nor constitute a waiver of any provision of the Original Credit Agreement or
      any
      other Loan Document.

     

    Section
      5.2.  Survival
      of Agreements.
      All
      representations, warranties, covenants and agreements of Borrowers herein shall
      survive the execution and delivery of this Amendment and the performance hereof,
      and shall further survive until all of the Obligations are paid in full. All
      statements and agreements contained in any certificate or instrument delivered
      by Borrowers hereunder or under the Original Credit Agreement to Bank shall
      be
      deemed to constitute representations and warranties by, or agreements and
      covenants of, Borrowers under this Agreement and under the Original Credit
      Agreement.

     

    Section
      5.3.  Loan
      Documents.
      This
      Amendment and the other Amendment Documents are each a Loan Document, and all
      provisions in the Original Credit Agreement pertaining to Loan Documents apply
      hereto and thereto.

     

    Section
      5.4.  Governing
      Law.
      This
      Amendment shall be governed by and construed in accordance with the laws of
      the
      State of Texas and any applicable laws of the United States of America in all
      respects, including construction, validity and performance.

     

    Section
      5.5.  Counterparts;
      Fax.
      This
      Amendment may be separately executed in counterparts and by the different
      parties hereto in separate counterparts, each of which when so executed shall
      be
      deemed to constitute one and the same Amendment. This Amendment may be duly
      executed by facsimile or other electronic transmission.

     

    THIS
      AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN
      THE
      PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS,
      OR
      SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

     

    THERE
      ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

     

     

    
      
        
        

      

      
        
          

        

      

      
        
        

      

    

    
      	
               

              THE
                REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK

               

            

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, this Amendment is executed as of the date first above
      written.

     

    GUARANTY
      BANK  M/I
      FINANCIAL CORP.

    

    

    

    
      	
                      
                By:

            	 	 	
                     
                By:

            	 
	 	
              Randy
                Reid

            	 	
              Phillip
                G. Creek

            
	 	
              Senior
                Vice President

            	 	
              Chief
                Financial Officer

            

    

    

    

                        
 M/I
      HOMES,
      INC.

     

    

    
      	
                  
                By:

            	 
	 	
              Phillip
                G. Creek

            
	 	
              Chief
                Financial Officer

            

    

    

    

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

 

    
      
        REVOLVING
          LOAN PROMISSORY NOTE

         

        $65,000,000.00                                         Dallas,
          Texas                                      April
          27,
          2007

         

        FOR
          VALUE
          RECEIVED, the undersigned M/I FINANCIAL CORP. and M/I HOMES, INC. ("Borrowers"),
          jointly and severally promise to pay to the order of GUARANTY BANK (herein
          called "Bank"),
          the
          principal sum of Sixty-Five Million and No/100 Dollars ($65,000,000.00)
          or, if
          less, the aggregate unpaid principal amount of the Loans made under this
          Note by
          Bank to Borrowers pursuant to the terms of the Loan Agreement (as hereinafter
          defined), together with interest on the unpaid principal balance thereof
          as
          hereinafter set forth, both principal and interest payable as herein provided
          in
          lawful money of the United States of America at the offices of the Bank,
          8333 Douglas Avenue, Dallas, Texas or at such other place within Dallas
          County, Texas, as from time to time may be designated by the holder of
          this
          Note.

         

        This
          Note
          (a) is issued and delivered under that certain First Amended and Restated
          Revolving Credit Agreement, dated as of April 27, 2006 among Borrowers and
          Bank (herein, as from time to time supplemented, amended or restated, called
          the
          "Loan
          Agreement"),
          and
          is the Note as defined therein, and (b) is subject to the terms and
          provisions of the Loan Agreement, which contains provisions for payments
          and
          prepayments hereunder and acceleration of the maturity hereof upon the
          happening
          of certain stated events. Payments on this Note shall be made and applied
          as
          provided herein and in the Loan Agreement. Reference is hereby made to
          the Loan
          Agreement for a description of certain rights, limitations of rights,
          obligations and duties of the parties hereto and for the meanings assigned
          to
          terms used and not defined herein.

         

        This
          Note
          is given in amendment, renewal and extension (but not in extinguishment
          or
          novation) of that certain revolving loan promissory note dated April 27,
          2006, executed by Borrowers payable to the order of Bank in the stated
          principal
          amount of $65,000,000.

         

        On
          the
          fifteenth (15th) day of each calendar month, beginning on May 15, 2007,
          Borrower shall pay to the holder hereof all unpaid interest which has accrued
          on
          the Loans through and including the last day of the immediately preceding
          calendar month. The principal amount of this Note, together with all interest
          accrued hereon, shall be due and payable in full on the last day of the
          Commitment Period which, if it does not occur sooner pursuant to the terms
          of
          the Loan Agreement, or if it is not extended pursuant to subsection 2.7,
          shall
          be April 25, 2008.

         

        Prime
          Rate Loans (exclusive of any past due principal or interest) from time
          to time
          outstanding shall bear interest on each day outstanding at the Prime Rate
          in
          effect on such day. LIBOR Rate Loans (exclusive of any past due principal
          or
          interest) from time to time outstanding shall bear interest on each day
          outstanding at the LIBOR Rate determined for such day plus one and thirty-five
          one-hundredths percent (1.35%). Notwithstanding the foregoing provisions
          of this
          paragraph, if an Event of Default has occurred and is continuing, all Loans
          from
          time to time outstanding shall bear interest on each day outstanding at
          a rate
          per annum which is the sum of (i) three percent (3.0%), and (ii) the
          rate which would otherwise be applicable thereto, from the date of such
          non-payment until paid in full (before, as well as after, judgment), and
          such
          interest shall be due and payable immediately as it accrues. Notwithstanding
          the
          foregoing provisions of this paragraph, if at any time the rate at which
          interest is payable on this Note exceeds the maximum nonusurious rate of
          interest Bank is permitted to contract for, take, charge, or receive with
          respect to the Loans (the "Maximum
          Rate"),
          this
          Note shall bear interest at the Maximum Rate only but shall continue to
          bear
          interest at the Maximum Rate until such time as the total amount of interest
          accrued hereon equals (but does not exceed) the total amount of interest
          which
          would have accrued hereon had there been no Maximum Rate applicable
          hereto.

         

        Notwithstanding
          the foregoing paragraph and all other provisions of this Note, in no event
          shall
          the interest payable hereon, whether before or after mat city, exceed the
          maximum amount of interest which, under applicable law, may be charged
          on this
          Note, and this Note is expressly made subject to the provisions of the
          Loan
          Agreement which more fully set out the limitations on how interest accrues
          hereon. In the event applicable law provides for a ceiling under
          Section 303 of the Texas Finance Code, that ceiling shall be the weekly
          rate ceiling and shall be used in this Note for calculating the Maximum
          Rate and
          for all other purposes. The term "applicable law" as used in this Note
          shall
          mean the laws of the State of Texas or the laws of the United States, whichever
          laws allow the greater interest, as such laws now exist or may be changed
          or
          amended or come into effect in the future.

         

        If
          this
          Note is placed in the hands of an attorney for collection after default,
          or if
          all or any part of the indebtedness represented hereby is proved, established
          or
          collected in any court or in any bankruptcy, receivership, debtor relief,
          probate or other court proceedings, Borrower and all endorsers, sureties
          and
          guarantors of this Note jointly and severally agree to pay reasonable attorneys'
          fees and collection costs to the holder hereof in addition to the principal
          and
          interest payable hereunder.

         

        Borrower
          and all endorsers, sureties and guarantors of this Note hereby severally
          waive
          demand, presentment, notice of demand and of dishonor and nonpayment of
          this
          Note, protest, notice of protest, notice of intention to accelerate the
          maturity
          of this Note, declaration or notice of acceleration of the maturity of
          this
          Note, diligence in collecting, the bringing of any suit against any party
          and
          any notice of or defense on account of any extensions, renewals, partial
          payments or changes in any manner of or in this Note or in any of its terms,
          provisions and covenants, or any releases or substitutions of any security,
          or
          any delay, indulgence or other act of any trustee or any holder hereof,
          whether
          before or after maturity.

         

        No
          waiver
          by Bank of any of its rights or remedies hereunder or under any other document
          evidencing or securing this Note or otherwise shall be considered a waiver
          of
          any other subsequent right or remedy of Bank; no delay or omission in the
          exercise or enforcement by Bank of any rights or remedies shall ever by
          construed as a waiver of any right or remedy of Bank; and no exercise or
          enforcement of any such rights or remedies shall ever be held to exhaust
          any
          right or remedy of Bank.

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        THIS
          NOTE AND THE RIGHTS AND DUTIES OF THE PARTIES HERETO SHALL BE GOVERNED
          BY THE
          LAWS OF THE STATE OF TEXAS, EXCEPT TO THE EXTENT THE SAME ARE GOVERNED
          BY
          APPLICABLE FEDERAL LAW.

         

        
          	
                  M/I
                    FINANCIAL CORP.

                   

                  By:                 

                      Phillip
                    G. Creek

                    
                    Chief Financial Officer and Treasurer

                	
                  M/I
                    HOMES, INC. 

                   

                  By:                 

                  Phillip
                    G. Creek

                  Senior
                    Vice President, Chief

                  Financial
                    Officer and Assistant Secretary

                

        

        

        

        
          Dallas_1\4869808\1

          6088-480
            4/12/2007Exhibit 10.1

    

      

      Exhibit
        10.1

       

      April
        30,
        2007

      

      Mr.
        Kevin
        Brown

      350
        Tierra Mar Lane

      Sarasota,
        FL 34242

      

      

      Dear
        Kevin:

      

      As
        you know, you are eligible to
        participate in the Harman International Industries, Incorporated Supplemental
        Executive Retirement Plan, as amended and restated as of October 1, 1999,
        and as
        further amended effective September 24, 2002 (the "SERP"). Enclosed is a
        copy of
        the SERP. Please confirm by signing below that you have read and understand
        the
        provisions of the SERP and that you agree, on your behalf and on behalf of
        your
        Beneficiaries, to be bound by the terms and conditions of this Benefit Agreement
        and the SERP, as modified by this Benefit Agreement. This Benefit Agreement
        supersedes any earlier Benefit Agreement or other agreements on this subject;
        and the terms in this Benefit Agreement have the same meanings as defined
        in the
        SERP as of the date of this Benefit Agreement. Your participation in the
        SERP in
        accordance with the terms of this Benefit Agreement will be effective on
        the
        date that you sign this Benefit Agreement below.

      

      Benefit
        Agreement

      

      Your
        Annual Benefit Percentage pursuant
        to Section 5.01 of the SERP is equal to 50%. For purposes of determining
        your
        Termination Benefit pursuant to Section 5.02 of the SERP, your Applicable
        Percentage is equal to 30% of Average Compensation, increased by 4% of Average
        Compensation for each year of service over 15 years, up to a maximum of 50%
        of
        Average Compensation. Your Pre-Retirement Death Benefit pursuant to Section
        6.02
        of the SERP is equal to three hundred percent (300%) of your Compensation
        for
        the Year of Service in which your Compensation was the highest. 

      

      Sincerely,

       

      Harman
        International Industries Incorporated

       

      By: /s/  Sidney
        Harman                                      
    

            Sidney
        Harman

            Executive
        Chairman of the Board

       

       

      Confirmed
        and agreed to:

       

           
        /s/  Kevin
        Brown                                                    
      May 1,
        2007         
   

            Kevin
        Brown                                                   
                 
[Date]

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