Document:

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                                                                  EXHIBIT 10.110

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered into as of
this 1st day of April, 2002, by and between DORAL FINANCIAL CORPORATION, a
Puerto Rico corporation (which, together with any successor thereto, is
hereinafter referred to as the "Company") and FREDERICK C. TEED (the
"Employee").

         WHEREAS, the Board of Directors of the Company believes that it is in
the best interests of such entity to enter into this Agreement with the Employee
in order to assure the services of an executive with the experience and
abilities of the Employee, and

         WHEREAS, the Board of Directors of the Company has authorized
the execution of this Agreement with the Employee;

         NOW THEREFORE, in consideration of the foregoing and of the respective
covenants and agreements of the parties herein contained, it is agreed as
follows:

         1.       EMPLOYMENT.

                  (a) The Employee is hereby employed as an Executive Vice
President of the Company with primary responsibility for supervising banking
operations, relations with holding company and banking regulators and strategic
expansion of such operations within and outside Puerto Rico. The Employee shall
also assist the Company as directed by the Chief Executive Officer of the
Company, with capital raising initiatives, maintaining relationships with
shareholders, lenders, investors and government sponsored mortgage agencies as
well as with helping in corporate-wide risk management matters. The Employee
shall have such other powers and duties as

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may from time to time may be prescribed by the Board of Directors of the
Company. In the performance of such duties the Employee shall report to the
Chairman of the Board and Chief Executive Officer of the Company.

                  (b) To the extent requested to do so by the Board of Directors
of the Company's banking subsidiaries, the Employee also agrees to serve as an
officer and/or director of the banking subsidiaries and to serve on the Asset
and Liability, Management, Compliance, Credit, Electronic Data Processing and
CRA Committees of the banking subsidiaries and to otherwise, provide assistance
on regulatory matters and strategic planning.

                  (c) The Employee shall devote his best efforts and
substantially all business time and attention to the business and affairs of the
Company and its subsidiaries and affiliated companies.

         2.       COMPETITIVE ACTIVITIES.

                  (a) The Employee agrees that during the term of his employment
hereunder, except with the express consent of the Board of Directors of the
Company, he will not, directly or indirectly, engage or participate in, become a
director of, accept employment from, or render advisory or other services for,
or in connection with, or become interested in, or make any financial investment
in any firm, corporation, business entity or business enterprise competitive
with any business of the Company or any subsidiary or affiliate thereof;
provided, however, that the Employee shall not thereby be precluded or
prohibited from owning passive investments, including investments in the
securities of other financial institutions, so long as such ownership does not
require the

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Employee to devote substantial time to the management or control of the business
or activities in which the Employee has invested.

                  (b) The Employee agrees and acknowledges that, by virtue of
the Employee's employment hereunder, the Employee will maintain an intimate
knowledge of the activities and affairs of the Company and its subsidiaries,
including trade secrets and other confidential matters. As a result, and also
because of the special, unique and extraordinary services that the Employee is
capable of performing for the Company or its competitors, the Employee
recognizes that the services to be rendered by the Employee hereunder are of a
character giving them a peculiar value, the loss of which cannot be adequately
or reasonably compensated for by damages. The Employee therefore agrees that if
he fails to render to the Company any of the services required hereunder, the
Company shall be entitled to immediate injunctive or other equitable relief to
restrain the Employee from failing to render his services hereunder, in addition
to any other remedies to which the Company may be entitled under law; provided,
however, that the right to such injunctive or other equitable relief shall not
survive the termination by the Company of the Employee's employment.

         3.       COMPENSATION.

                  (a) Salary. During the term of this Agreement, the Employee
shall be entitled to an annual salary established by the Board of Directors. The
annual salary hereunder as of the Commencement Date (as defined in Section 5
hereof) shall be equal to $150,000 per year. The Employee's salary shall be
payable not less frequently than bi-weekly. Any adjustments in salary or other
compensation shall in no way limit or reduce any other obligation

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of the Company hereunder. The Employee's salary in effect hereunder from time to
time shall not thereafter be reduced.

                  (b) Discretionary Year-end Bonus. The Employee shall also be
eligible to receive an annual year-end bonus, the amount of which is to be
fixed, at the discretion of the Board of Directors of the Company, based on the
goals assigned to the Employee by the Board of Directors of the Company. The
bonus, if any, will be payable within 30 days of the filing by Doral Financial
of its Annual Report on Form 10-K with the Securities and Exchange Commission.

                  (c) Automobile. The Company will provide the Employee with a
monthly car allowance under the Company's policy as an Executive Vice President
to be used to lease or purchase an automobile for use in the affairs and
business of the Company and to cover related gasoline and insurance expenses
related to the use of such automobile.

                  (d) Expenses. During the term of the Employee's employment
hereunder, the Employee shall be entitled to receive prompt reimbursement for
all reasonable expenses incurred by him in performing services hereunder,
provided that the Employee properly accounts therefor in accordance with the
then existing policy of the Company. Nothing contained herein shall authorize
the Employee to make any political contributions, including but not limited to
payments for dinners and advertising in any political party program or any other
payment to any person, which might be deemed a bribe, kick-back or otherwise an
improper payment or contribution under existing law or under the Company's
policy or practice and no portion of the compensation payable hereunder is for
such purpose.

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                  (e) Withholding. Payments of any compensation under this
Agreement shall be subject to reduction by the amount of any applicable federal,
Commonwealth of Puerto Rico, state or municipal income withholding, social
security, state disability insurance or similar or other taxes or other items
which may be required or authorized to be deducted by law or custom.

                  (f)      No Additional Compensation. No additional
compensation shall be due to Employee for services performed of
offices held in any other subsidiary, division, affiliate, or
venture of the Company, including, but not limited to, the banking
subsidiaries.

         4.       BENEFITS.

                  (a) Participation in Retirement and Employee Benefit Plans.
The Employee shall be entitled while employed hereunder to participate in, and
receive benefits under, all plans relating to pension, thrift, profit-sharing,
group life insurance, education, cash or stock bonuses, and other retirement or
employee benefits or combinations thereof, that are maintained for the benefit
of the Company's executive employees or for its employees generally and that are
made available to employees located in the continental United States.

                  (b) Fringe Benefits. The Employee shall be eligible while
employed hereunder to participate in, and receive benefits under, any other
fringe benefits programs which are or may become applicable to the Company's
executive employees or to its employees generally and that are made available to
employees located in the continental United States.

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                  (c)      Medical Coverage. During the term of this Agreement,
the Company shall provide coverage to the Employee under its
medical insurance plan for employees located in the continental
United States.

         5.       TERM.

                  The term of employment under this Agreement shall be a period
of twenty-four months commencing on April 6, 2002 (the "Commencement Date") and
ending on April 6, 2004, subject to earlier termination as provided herein.

         6.       VACATIONS.

                  The Employee shall be entitled, without loss of pay, to absent
himself voluntarily from the performance of his employment under this Agreement,
all such voluntary absences to count as vacation time, provided that:

                  (a) During the term of employment under this Agreement, the
Employee shall be entitled to paid vacation at least equivalent to 20 working
days per year to be taken in accordance with the plans, policies, programs or
practices of the Company as in effect from time to time; and,

                  (b) The timing of vacations shall be scheduled in a reasonable
manner by the Employee subject to approval by the Chief Executive Officer of the
Company.

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         7.       TERMINATION OF EMPLOYMENT; DEATH.

                  (a) The Company may terminate the Employee's employment at any
time, but any termination by the Company other than termination for cause, shall
not prejudice the Employee's right to compensation or other benefits under this
Agreement. If the employment of the Employee is involuntarily terminated, other
than for '~cause" as provided in this Section 7(a) or by reason of death or
disability as provided in Sections 7(c) or 8, the Company shall pay the Employee
salary (but shall not be obligated to pay any bonus) and provide to the Employee
the same insurance benefits as the Employee was receiving before the date of
termination through the remaining term of this Agreement.

                           The terms "termination" or "involuntarily
terminated" in this Agreement shall refer to the termination of the employment
of Employee without the Employee's express written consent.

                           In case of termination of the Employee's employment
for cause, the Company shall pay the Employee his salary through the date of
termination, and the Company shall have no further obligation to the Employee
under this Agreement. For purposes of this Agreement, termination for "cause"
shall include termination for personal dishonesty, incompetence, willful
misconduct, breach of a fiduciary duty, insubordination, failure to perform
stated duties, willful violation of any Jaw, rule, or regulation (other than
traffic violations or similar minor offenses) or final cease-and-desist order,
or material breach of any provision of this Agreement.

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                  (b) (i) The Employee's employment may be terminated by the
Employee upon a failure of the Company to comply with any material provision of
this Agreement, which failure has not been cured within ten (10) days after a
notice pursuant to Section 10 of such non-compliance has been given by the
Employee to the Company.

                                  (ii)The Employee may terminate his employment
hereunder if a "change in control" occurs with respect to the
Company.

                  For purposes of this Agreement, a "change in control of the
Company" shall be deemed to have occurred if (i) any "person" (as such term is
used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the
"Exchange Act") or successor provisions to such sections in the event such
sections have been superseded), becomes the "beneficial owner" (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of such securities
of the Company representing more than 50% of the combined voting power of the
Company's then outstanding securities, or (ii) as a result of, or in connection
with, any cash tender or exchange offer, merger or other business combination,
sale of assets or contested election, or any combination of the foregoing
transactions (a "Transaction"), the person who were directors of the Company
before the Transaction shall cease to constitute a majority of the Board of
Directors of the Company or any successor of the Company.

                  If the Employee shall terminate his employment pursuant to
this subsection 7(b)(ii) following a change of control of the Company, the
Company shall pay as severance to Employee an amount equal to the amount of
annual salary provided in Section 3 (a) hereof for the remaining term of the
Agreement; such payment to be

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made in a lump sum on or before the 15th day following the date of
termination.

                  (c) In the event of the death of the Employee during the term
of employment under this Agreement and prior to any termination hereunder, the
Employee's estate, or such person as the Employee may have previously designated
in writing, shall be entitled to receive from the Company the salary of the
Employee through the last day of the calendar month in which his death shall
have occurred, and the term o employment under this Agreement shall end on such
last day of the month.

                  (d) If the Employee is suspended from office and/or
temporarily prohibited from participating in the conduct of the Company's or the
Bank s affairs by a notice served under Section 8(e)(3) or (g)(l) of the Federal
Deposit Insurance Act ("FDIA"), (12 U.S.C. ss.1818(e)(3); (g)(1)), the Company's
obligations under this Agreement shall be suspended as of the date of service,
unless stayed by appropriate proceedings. If the charges in the notice are
dismissed, the Company may in its discretion (i) pay the Employee all or part of
the compensation withheld while its obligations under this Agreement were
suspended and (ii) reinstate in whole or in part any of its obligations which
were suspended.

                  (e) If the Employee is removed from office and/or permanently
prohibited from participating in the conduct of the Company's or its banking
subsidiaries affairs by an order issued under Section 8(e)(4) or (g)(1) of the
FDIA (12 U.S.C. ss. 181 8(e)(4) or (g)(1)), all obligations of the Company under
this Agreement shall terminate as of the effective date of the order, but

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vested rights of the contracting parties hereto shall not be affected.

         8.       DISABILITY.

                  If the Employee shall become disabled as defined in the
Company's then current disability plan or if the Employee shall be otherwise
physically unable to serve, the Employee shall be entitled to receive group and
other disability income benefits of the type then provided by the Company for
other executive employees of the Company. However, the Company shall be
obligated to pay the Employee's compensation pursuant to Section 3(a) and (b)
hereof only to the extent the Employee's salary would exceed the disability
income benefits received pursuant to this Section. In addition, the Company
shall have the right, upon resolution of its Board of Directors, to discontinue
paying cash compensation pursuant to Section 3(a) and (b) beginning six months
following a determination that the Employee qualifies for the foregoing
disability income benefits.

         9.       NO ASSIGNMENTS.

                  (a) This Agreement is personal to each of the parties hereof,
and neither party may assign or delegate any of its rights or obligations
hereunder without first obtaining the written consent of the other party;
provided, however, that if the Company merges or consolidates into another
entity controlled by it or any affiliate of any of the Company, or enters into a
reorganization transaction in which the shareholders of the Company immediately
prior to any such transaction become the shareholders of the resulting entity.
then this Agreement may be transferred to such resulting entity.

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                  (b) This Agreement and all rights of the Employee hereunder
shall inure to the benefit of and be enforceable by thc Employee's personal and
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If the Employee should die while any
amounts would still be payable to the Employee hereunder if the Employee had
continued to live, all such amounts (including that portion of the 1996 bonus
which was earned but defined pursuant to Section 3(e)(ii) hereof), unless
otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the Employee's devisee, legatee or other designee or if there is no
such designee, to the Employee's estate.

         10.      NOTICE.

                  For the purposes of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when personally delivered or sent by certified
mail, return receipt requested., postage prepaid. addressed to the last known
respective address of the party hereto (provided that all notices to the Company
shall be directed to the attention of the Chief Executive Officer of the Company
with a copy to the Secretary of such entity), or to such other address as either
party may have furnished to the other in writing in accordance herewith.

         11.      AMENDMENTS.

                  No amendments or additions to this Agreement shall be binding
unless in writing and signed by both parties, except as herein otherwise
provided.

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         12.      PARAGRAPH HEADINGS.

                  The paragraph headings used in this Agreement arc included
solely for convenience of reference and shall not affect, or be used in
connection with, the interpretation of this Agreement.

         13.      SEVERABILITY.

                  The provisions of this Agreement shall be deemed severable and
the invalidity or unenforceability of any provision shall not affect the
validity or unenforceability of the other provisions hereof.

         14.      GOVERNING LAW.

                  This Agreement shall be governed by the laws of the
Commonwealth of Puerto Rico.

         15.      OTHER MATTERS.

                  (a) Except as provided in Section 9(b), any amounts payable
hereunder are personal to the Employee and are not transferable or assignable
either by the Employee's act or by operation of law, and no assignee, trustee in
bankruptcy, receiver or other party whomsoever shall have any right to demand
any such amounts or any other right with respect thereto.

                  (b) If and when questions arise from time to time as to the
intent, meaning or application of any one or more of the provisions hereof, such
questions will be decided by the Board of

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Directors of the Company or any committee appointed to consider such matters,
or, in the event the Company is merged into or consolidated with any other
corporation, by the Board of Directors (or a committee appointed by it) of the
surviving or resulting corporation, and the decision of such Board of Directors
or committee, as the case may be, as to what is a fair and equitable settlement
of each such question or as to what is a fair and proper interpretation of any
provision hereof or thereof shall be conclusive and binding up. The Employee
understands that payment of any amounts hereunder, including any bonus, is not
held or set aside in trust and that (1) the Company may seek to retain, offset,
attach or similarly place a lien on such funds in circumstances where the
Employee has been discharged for cause and, in addition, shall be entitled to do
so for (x) malfeasance damaging to the Company, (y) conversion by the Employee
of an opportunity of the Company, or (z) a violation of the Company's conflict
of interest policy, in each case as determined in the sole discretion of the
Company's Board of Directors and (2) in the event the Company is unable to make
any payment under this Agreement because of receivership, insolvency, bankruptcy
or similar status or proceedings, the Employee will be treated as a general
unsecured creditor of the Company and may be entitled to no priority under
applicable law with respect to such payments.

         16.      ARBITRATION.

                  Any dispute or controversy arising under or in connection with
this Agreement shall be settled exclusively by arbitration in San Juan, Puerto
Rico, in accordance with the rules of the American Arbitration Association then
in effect. Judgment maybe entered on the arbitrator s award in any court having
jurisdiction.

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         17.      EXECUTION IN COUNTERPARTS.

                  This Agreement may be executed in any number of counterparts
and by the parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first above written.

         SECTION 16 OF THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION
WHICH MAY BE ENFORCED BY THE PARTIES.

                                       DORAL FINANCIAL CORPORATION

                                       By:  /s/ Salomon Levis
                                           -------------------------------
                                                             Salomon Levis
                                                 Chairman of the Board and
                                                   Chief Executive Officer

                                       By:  /s/ Frederick C. Teed
                                           -------------------------------
                                                         Frederick C. Teed

                                       14<PAGE>

                        FIRST AMENDMENT TO LOAN AGREEMENT

                  This FIRST AMENDMENT TO LOAN AGREEMENT (this "Amendment") is
entered into as of July 8, 2002, by and among OAKWOOD HOMES CORPORATION, a North
Carolina corporation ("Parent"), and each of Parent's Subsidiaries identified on
the signature pages hereof (such Subsidiaries, together with Parent, are
referred to hereinafter each individually as a "Borrower," and collectively as
the "Borrowers"), the Lenders identified on the signature pages hereto (the
"Lenders"), and FOOTHILL CAPITAL CORPORATION, in its capacity as agent (the
"Agent") for the Lenders,

                              W I T N E S S E T H:

                  WHEREAS, the Borrowers, the Lenders and Agent have entered
into that certain Loan and Security Agreement dated as of January 22, 2002 (as
the same may be further modified, amended, restated or supplemented from time to
time, the "Loan Agreement"), pursuant to which the Lenders have agreed to make
loans and other financial accommodations to the Borrowers from time to time; and

                  WHEREAS, the Borrowers have requested that the Agent and the
Lenders increase the sublimit applicable to Letters of Credit pursuant to
Section 2.12(a)(ii) to $60,000,000, and the Agent and the Lenders have agreed to
the requested amendment on the terms and conditions set forth herein; and

                  NOW THEREFORE, in consideration of the foregoing premises and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree that all capitalized terms
not otherwise defined herein shall have the meanings ascribed to such terms in
the Loan Agreement and further agree as follows:

         1. Amendment to Section 2.6 of the Loan Agreement. Section 2.6 of the
Loan Agreement, "Interest Rates and Letter of Credit Fee; Rates, Payments and
Calculations" is hereby modified and amended by deleting subsection 2.6(c)(ii)
thereof in its entirety and inserting the following in substitution thereof:

                  "(ii) the Letter of Credit fee provided for above shall be
increased to 5 percentage points above the per annum rate otherwise applicable
hereunder."

         2. Amendment to Section 2.7 of the Loan Agreement. Section 2.7 of the
Loan Agreement, "Cash Management" is hereby modified and amended by deleting
subsection 2.7(b) thereof in its entirety and inserting the following in
substitution thereof:

                  "(b) Borrowers shall cause each Cash Management Bank to
establish and maintain Cash Management Agreements with Agent and Borrowers, in
form and substance acceptable to Agent. Except for the Depository Account
Agreement, each such Cash Management Agreement shall provide, among other
things, that (i) all items of payment deposited in such Cash Management Account
and proceeds thereof are held by such Cash Management Bank as agent or
bailee-in-possession for Agent, (ii) the Cash Management Bank

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has no rights of setoff or recoupment or any other claim against the applicable
Cash Management Account, other than for payment of its service fees and other
charges directly related to the administration of such Cash Management Account
and for returned checks or other items of payment, and (iii) upon instruction
from Agent, such Cash Management Bank shall immediately forward by daily sweep
all amounts in the applicable Cash Management Account to the Agent's Account. At
the election of Agent in its reasonable discretion, Agent may direct Borrowers
and a Cash Management Bank to, and Borrowers agree to, cause a sweep of all
amounts in such Cash Management Accounts into Agent's Account if, (A) as of any
date of determination there are outstanding Advances and Borrowing Base
Availability is less than $20,000,000, (B) there are Advances outstanding for
more than 5 consecutive Business Days, or (C) any Event of Default exists. Any
funds swept to the Agent's Account pursuant to clauses (A) and (B) of the
previous sentence shall be applied to repay the outstanding Advances with any
excess refunded to Borrowers, and any funds swept to Agent's Account pursuant to
clause (C) of the previous sentence shall be applied to Borrowers' Obligations
or refunded to Borrowers as set forth in Section 2.4."

         3. Amendment to Section 2.12 of the Loan Agreement. Section 2.12 of the
Loan Agreement, "Letters of Credit" is hereby modified and amended by deleting
the reference to "$45,000,000" in subsection 2.12(a)(ii) thereof in its entirety
and inserting "$60,000,000" in substitution thereof.

         4. Amendment to Section 4.6 of the Loan Agreement. Section 4.6 of the
Loan Agreement, "Right to Inspect" is hereby modified and amended by deleting
subsection 4.6 thereof in its entirety and inserting the following in
substitution thereof:

                  "4.6 Right to Inspect. Agent and each Lender (through any of
their respective officers, employees, or agents) shall have the right, from time
to time hereafter to inspect the Books and to check, test, and appraise the
Collateral in order to verify Borrowers' financial condition or the amount,
quality, value, condition of, or any other matter relating to, the Collateral,
provided, any Lender may accompany Agent or its representatives during any
examination or audit, with the costs thereof reimbursed to such Lender on the
same basis as Agent. Borrowers acknowledge that Agent shall have the right to
(a) conduct updated Inventory appraisals at such times as Agent determines in
its sole discretion, (b) engage Douglas Guardian, or any other acceptable firm,
to perform test counts of the Inventory for not less than 100% of Borrowers'
inventory locations during a 12 month period, with at least 5% of Borrowers'
"sales centers" tested each month, (c) require appraisals or evaluations as
deemed necessary by Agent, and (d) require audits at such times as Agent
determines in its sole discretion, in each case at Borrowers' expense."

         5. No Other Amendments. Except as otherwise expressed herein, the
execution, delivery and effectiveness of this Amendment shall not operate as a
waiver of any right, power or remedy of the Agent or the Lenders under the Loan
Agreement or any of the other Loan Documents, nor constitute a waiver of any
provision of the Loan Agreement or any of the other Loan Documents. Except for
the amendment set forth above, the text of the Loan Agreement and all other Loan
Documents shall remain unchanged and in full force and effect and each Borrower
hereby ratifies and confirms its obligations thereunder. This Amendment shall
not constitute a modification of the Loan Agreement or a course of dealing with
the Agent or the

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Lenders at variance with the Loan Agreement such as to require further notice by
the Agent or the Lenders to require strict compliance with the terms of the Loan
Agreement and the other Loan Documents in the future, except as expressly set
forth herein. Each Borrower acknowledges and expressly agrees that the Agent and
the Lenders reserve the right to, and do in fact, require strict compliance with
all terms and provisions of the Loan Agreement and the other Loan Documents. The
Borrowers have no knowledge of any challenge to the Agent's or any Lenders'
claims arising under the Loan Documents, or to the effectiveness of the Loan
Documents.

         6. Conditions Precedent to Effectiveness. This Amendment shall become
effective as of the date hereof when, and only when, the Agent shall have
received all of the following:

                  (a) payment of an Agent's amendment fee from the Borrower in
the amount of $25,000 (it being understood that, by execution and delivery of
this Amendment, Borrower authorizes Agent to charge Borrower's Loan Account for
such fee and such amount shall thereafter accrue interest at the rate applicable
to Advances under the Loan Agreement in accordance with Section 2.6 of the Loan
Agreement) payable to the Agent for its sole benefit;

                  (b) payment of a Lenders' amendment fee from the Borrower in
the amount of $50,000 (it being understood that, by execution and delivery of
this Amendment, Borrower authorizes Agent to charge Borrower's Loan Account for
such fee and such amount shall thereafter accrue interest at the rate applicable
to Advances under the Loan Agreement in accordance with Section 2.6 of the Loan
Agreement) which shall be for the benefit of the Lenders in accordance with each
Lender's Pro Rata Share;

                  (c) fully executed and delivered counterparts of this
Amendment by the Borrowers, Lenders and Agent;

                  (d) such other information, documents, instruments or
approvals as the Agent or the Agent's counsel may reasonably require.

         7. Representations and Warranties of Borrowers. Each Borrower
represents and warrants to the Agent and the Lenders as follows:

                  (a) Each Borrower is a corporation, limited liability company,
or limited partnership organized or formed, as the case may be, validly existing
and in good standing under the laws of the jurisdiction indicated on the
signature pages hereto and in all other jurisdictions in which the failure to be
so qualified reasonably could be expected to constitute a Material Adverse
Change;

                  (b) The execution, delivery, and performance by each Borrower
of this Amendment and the Loan Documents to which it is a party, as amended
hereby, are within such Borrower's corporate, limited liability company, or
partnership authority, have been duly authorized by all necessary corporate,
limited liability company, or partnership action and do not and will not (i)
violate any provision of federal, state, or local law or regulation applicable
to such Borrower, the Governing Documents of any Borrower, or any order,
judgment, or decree of any court or other Governmental Authority binding on any
Borrower, (ii) conflict with, result in a breach of, or constitute (with due
notice or lapse of time or both) a default under any material

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contractual obligation of any Borrower, (iii) result in or require the creation
or imposition of any Lien of any nature whatsoever upon any properties or assets
of any Borrower, other than Permitted Liens, or (iv) require any approval of any
Borrower's shareholders, partners, or members or any approval or consent of any
Person under any material contractual obligation of any Borrower;

                  (c) The execution, delivery, and performance by each Borrower
of this Amendment and the Loan Documents to which it is a party, as amended
hereby, do not and will not require any registration with, consent, or approval
of, or notice to, or other action with or by, any Governmental Authority or
other Person;

                  (d) This Amendment and each other Loan Document to which each
Borrower is a party, and all other documents contemplated hereby and thereby,
when executed and delivered by each Borrower will be the legally valid and
binding obligations of such Borrower, enforceable against each Borrower in
accordance with their respective terms, except as enforcement may be limited by
equitable principles or by bankruptcy, insolvency, reorganization, moratorium,
or similar laws relating to or limiting creditors' rights generally; and

                  (e) No Default or Event of Default is existing.

         8. Counterparts. This Amendment may be executed in multiple
counterparts, each of which shall be deemed to be an original and all of which,
taken together, shall constitute one and the same agreement. In proving this
Amendment in any judicial proceedings, it shall not be necessary to produce or
account for more than one such counterpart signed by the party against whom such
enforcement is sought. Any signatures delivered by a party by facsimile
transmission shall be deemed an original signature hereto.

         9. Reference to and Effect on the Loan Documents. Upon the
effectiveness of this Amendment, on and after the date hereof each reference in
the Loan Agreement to "this Agreement", "hereunder", "hereof" or words of like
import referring to the Loan Agreement, and each reference in the other Loan
Documents to "the Loan Agreement" "thereunder", "thereof" or words of like
import referring to the Loan Agreement, shall mean and be a reference to the
Loan Agreement as amended hereby.

         10. Costs, Expenses and Taxes. Borrowers agree to pay on demand all
reasonable costs and expenses in connection with the preparation, execution, and
delivery of this Amendment and the other instruments and documents to be
delivered hereunder, including, without limitation, the reasonable fees and
out-of-pocket expenses of counsel for the Agent with respect thereto and with
respect to advising the Agent as to its rights and responsibilities hereunder
and thereunder.

         11. Governing Law. This Amendment shall be deemed to be made pursuant
to the laws of the State of Georgia with respect to agreements made and to be
performed wholly in the State of Georgia, and shall be construed, interpreted,
performed and enforced in accordance therewith.

         12. Loan Document. This Amendment shall be deemed to be a Loan Document
for all purposes.

                                       4
<PAGE>

               [THE REMAINDER OF THE PAGE IS INTENTIONALLY BLANK.]

                                       5

<PAGE>

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

                                            BORROWERS:
                                            OAKWOOD HOMES CORPORATION,
                                            a North Carolina corporation

                                            /s/ Robert A. Smith
                                            ------------------------------------
                                            By: Robert A. Smith
                                            Its: Executive Vice President

                                            OAKWOOD ACCEPTANCE CORPORATION, LLC,
                                            a Delaware limited liability company

                                            /s/ Robert A. Smith
                                            ------------------------------------
                                            By: Robert A. Smith
                                            Its: Vice President

                                            OAKWOOD SHARED SERVICES, LLC,
                                            a Delaware limited liability company

                                            /s/ Robert A. Smith
                                            ------------------------------------
                                            By: Robert A. Smith
                                            Its: Vice President

                                            OAKWOOD MOBILE HOMES, INC.,
                                            a North Carolina corporation

                                            /s/ Robert A. Smith
                                            ------------------------------------
                                            By: Robert A. Smith
                                            Its: Vice President

                        FIRST AMENDMENT TO LOAN AGREEMENT
                                Signature Page 1

<PAGE>

                                            CREST CAPITAL LLC, a Nevada limited
                                            liability company

                                            /s/ Monte L. Miller
                                            ------------------------------------
                                            By:  Monte L. Miller
                                            Its: President

                                            FSI FINANCIAL SERVICES, INC.,
                                            a Michigan corporation

                                            /s/ Robert A. Smith
                                            ------------------------------------
                                            By: Robert A. Smith
                                            Its: Vice President

                                            TRI-STATE INSURANCE AGENCY, INC.,
                                            a Michigan corporation

                                            /s/ Robert A. Smith
                                            ------------------------------------
                                            By: Robert A. Smith
                                            Its: Vice President

                                            HBOS MANUFACTURING, LP,
                                            a Delaware limited partnership

                                                By:  Oakwood Mobile Homes, Inc.,
                                                     Its General partner

                                            /s/ Robert A. Smith
                                            ------------------------------------
                                            By: Robert A. Smith
                                            Its: Vice President

                        FIRST AMENDMENT TO LOAN AGREEMENT
                                Signature Page 2

<PAGE>

                                            PREFERRED HOUSING SERVICES, LP, a
                                            Delaware limited partnership

                                                By:  Oakwood Mobile Homes, Inc.,
                                                     Its General partner

                                            /s/ Robert A. Smith
                                            ------------------------------------
                                            By: Robert A. Smith
                                            Its: Vice President

                                            NEW DIMENSION HOMES, INC.,
                                            a Delaware corporation

                                            /s/ Robert A. Smith
                                            ------------------------------------
                                            By: Robert A. Smith
                                            Its: Vice President

                                            GOLDEN WEST LEASING, LLC,
                                            a Nevada limited liability company

                                            /s/ Monte L. Miller
                                            ------------------------------------
                                            By:  Monte L. Miller
                                            Its: President

                                            DREAMSTREET COMPANY, LLC,
                                            a Delaware limited liability company

                                            /s/ Robert A. Smith
                                            ------------------------------------
                                            By: Robert A. Smith
                                            Its: Vice President

                        FIRST AMENDMENT TO LOAN AGREEMENT
                                Signature Page 3

<PAGE>

                                            HOME SERVICE CONTRACT, INC., a
                                            Michigan corporation

                                            /s/ Robert A. Smith
                                            ------------------------------------
                                            By: Robert A. Smith
                                            Its: Vice President

                                            SUBURBAN HOME SALES, INC., a
                                            Michigan corporation

                                            /s/ Robert A. Smith
                                            ------------------------------------
                                            By: Robert A. Smith
                                            Its: Vice President

                        FIRST AMENDMENT TO LOAN AGREEMENT
                                Signature Page 4

<PAGE>

                                            AGENT:

                                            FOOTHILL CAPITAL CORPORATION,
                                            a California corporation, as Agent

                                            /s/ Renee D. Lefebvre
                                            ------------------------------------
                                            By: Renee D. Lefebvre
                                            Title: VP

                                            LENDERS:

                                            FOOTHILL CAPITAL CORPORATION,
                                            as Lender and Issuing Bank

                                            /s/ Renee D. Lefebvre
                                            ------------------------------------
                                            By: Renee D. Lefebvre
                                            Title: VP

                                            TEXTRON FINANCIAL CORPORATION,
                                            as Lender

                                            /s/ Jerrold K. Brown
                                            ------------------------------------
                                            By: Jerrold K. Brown
                                            Title: Senior Vice President

                                            THE CIT GROUP/BUSINESS CREDIT, INC.,
                                            as Lender

                                            /s/ Dominick A. Varipapa
                                            ------------------------------------
                                            By: Dominick A. Varipapa
                                            Title: Assistant Vice President

                        FIRST AMENDMENT TO LOAN AGREEMENT
                                Signature Page 5

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