Document:

Exhibit 10.1

 

SIXTH AMENDMENT TO

CREDIT AGREEMENT AND SECURITY AGREEMENT
AND CONSENT OF GUARANTORS

 

This SIXTH  AMENDMENT TO

CREDIT AGREEMENT AND SECURITY AGREEMENT AND CONSENT OF GUARANTORS (this

“Amendment”) is dated as of March 25, 2003, and entered into by and

among  FLEETWOOD ENTERPRISES, INC. (“Fleetwood”),

FLEETWOOD

HOLDINGS, INC. and its Subsidiaries listed on the signature pages

hereof (collectively, “FMC”), FLEETWOOD RETAIL, CORP. and its

Subsidiaries listed on the signature pages hereof (collectively, “FRC”),

the banks and other financial institutions signatory hereto that are parties as

Lenders to the Credit Agreement referred to below (the “Lenders”), and BANK OF

AMERICA, N.A., as administrative agent and collateral agent (in such

capacity, the “Agent”) for the Lenders.

 

Recitals

 

Whereas, Fleetwood, the Borrowers, the

Lenders, and the Agent have entered into that certain Credit Agreement dated as

of July 27, 2001, as amended by that certain First Amendment to Credit

Agreement and Consent of Guarantors dated as of December 4, 2001,

that certain Second Amendment to Credit Agreement and Security Agreement and

Consent of Guarantors dated as of December 4, 2001, that certain Third

Amendment to Credit Agreement and Consent of Guarantors dated as of December 7, 2001,

that certain Fourth Amendment to Credit Agreement and Consent of Guarantors

dated as of July 12, 2002 and that certain Fifth Amendment to Credit

Agreement and Consent of Guarantors dated as of January 24, 2003, (the “Credit

Agreement”; capitalized terms used in this Amendment without definition

shall have the meanings given such terms in the Credit Agreement); and

 

Whereas, Fleetwood (on behalf of itself

and each of its subsidiaries), Textron Financial Corporation (“Textron

Financial”) and the Agent (for itself and in its capacity as administrative

agent for the Lenders) have entered into that certain Intercreditor Agreement

dated as of August 21, 2002 (the “Textron Intercreditor Agreement”); and

 

Whereas, the Borrowers have requested

certain amendments to the Credit Agreement and the Security Agreement; and

 

Whereas, the Borrowers have requested of

the Agent and the Lenders certain consents and approvals under the Credit

Agreement with respect to the sale by the Loan Parties of the Collateral located

at 13737 Industrial Road, Omaha Nebraska, Plant No. 93 as further described on Schedule

I attached hereto (the “Nebraska Collateral”); and

 

Whereas, the Borrowers have requested of

the Agent and the Lenders certain consents and approvals under the Textron

Intercreditor Agreement with respect to proposed amendments to that certain

Manufactured Home Wholesale Lender Agreement, dated as of April 11, 2001,

by and among Fleetwood, certain of Fleetwood’s subsidiary operations and

 

1

 

Textron Financial, as amended (the “Repurchase Agreement”) in

the form of Exhibit A attached hereto (the “Textron Repurchase

Amendment”); and

 

Whereas, the Lenders and the Agent are

willing to agree to the amendments and to give the consents and approvals

requested by the Loan Parties, on the terms and conditions set forth in this

Amendment;

 

Now Therefore, in consideration of the

premises and the mutual agreements set forth herein, Fleetwood, the Borrowers,

the Lenders, and the Agent agree as follows:

 

1.             AMENDMENTS

TO CREDIT AGREEMENT.  Subject

to the conditions and upon the terms set forth in this Amendment and in

reliance on the representations and warranties of Fleetwood and the Borrowers

set forth in this Amendment, the Credit Agreement is hereby amended as follows:

 

1.1           Amendment to Section 1.2(a)(i).  The first two sentences of Section

1.2(a)(i) (beginning “Subject to the satisfaction . . .”) are deleted in their

entirety and replaced with the following:

 

“Subject to the satisfaction

of the conditions precedent set forth in Article 8, and except for

Non-Ratable Loans and Agent Advances, each Revolving Credit Lender severally,

but not jointly, agrees, upon a Borrower’s request from time to time on any

Business Day during the period from the Closing Date to the Termination Date,

to make revolving loans (the “Revolving Loans”) to the Borrowers in

aggregate amounts not to exceed such Lender’s Pro Rata Share of the Aggregate

Availability, and, for Revolving Loans to FMC, in an amount which does not

exceed such Lender’s Pro Rata Share of FMC’s Availability, or for Revolving

Loans to FRC, in an amount which does not exceed such Lender’s Pro Rata Share

of FRC’s Availability; provided that on the date of such request, and

giving pro forma effect to such

request, the aggregate amount advanced pursuant to this Section 1.2(a)(i)

against the aggregate manufactured housing Inventory of FMC and FRC shall not

exceed 25% of the Aggregate Availability (the “Manufactured Housing

Inventory Limit”). The Revolving Credit Lenders, however, in their

unanimous discretion, may elect to make Revolving Loans or issue or arrange to

have issued Letters of Credit in excess of the Aggregate Borrowing Bases or the

Borrowing Base of FMC or FRC or the Manufactured Housing Inventory Limit, as

applicable, on one or more occasions, but if they do so, neither the Agent nor

the Revolving Credit Lenders shall be deemed thereby to have changed the limits

of the Borrowing Base of FMC or FRC, or the Aggregate Borrowing Bases or the

Manufactured Housing Inventory Limit or to be obligated to exceed such limits

on any other occasion.”

 

1.2           Amendment to Article 2.7.  Section 2.7 shall be deleted in its

entirety and replaced with the following:

 

“2.7         Release of Certain Collateral.  From and after the Fifth Amendment Effective Date and prior to

the date six months after the Fifth Amendment Effective Date, Borrowers may

request a release (the “Property Release”) of the Lien in favor of the

Collateral Agent for the benefit of the Lenders on the Release Eligible Real

 

2

 

Estate; provided

that as of the date of the Property Release, the following conditions are

satisfied:

 

(a)           not later than thirty (30) days prior

to the date of the Property Release, the Borrowers have provided the Agent with

a certificate (the “Release Certificate”) identifying the Release

Eligible Real Estate to be released (the “Release Property”) and stating

the proposed date of the Property Release (such date, the “Release Date”);

 

(b)           no Default or Event of Default has

occurred and is continuing as of the date of the Release Certificate and as of

the Release Date, both before and after giving effect to the Property Release;

 

(c)           the Flexibility Conditions are satisfied

as of the Release Date both before and immediately after giving effect to the

Property Release;

 

(d)           the Agent shall have received an

appraisal or appraisals (in form and substance and by an appraiser reasonably

satisfactory to Agent) for the parcels of Release Eligible Real Estate that are

not being released (such appraisal or appraisals, collectively, the “Appraisal”

and such parcels, the “Appraised Parcels”), dated no more than three (3)

months prior to the Release Date but in any event dated no later than June 30,

2003 (such date, the “Release Appraisal Date”); and

 

(e)           the Appraised Parcels shall have an

appraised value, as set forth in the Appraisals, of at least $75,000,000.

 

On the Release

Date, if the conditions set forth in this Section 2.7 are satisfied, all

Liens on the Release Property in favor of the Collateral Agent for the benefit

of the Lenders shall be released.”

 

1.3           Amendment to Section 7.24.  Section 7.24 shall be amended by

replacing the table therein with the following table:

 

	

  Period Ending

  	

   

  	

  EBITDA

  	

   

  
	

  On

  the last Sunday in April 2003

  	

   

  	

  $

  	

  2,500,000

  	

   

  
	

  On

  the last Sunday in July 2003

  	

   

  	

  $

  	

  3,500,000

  	

   

  
	

  On

  the last Sunday in October 2003

  	

   

  	

  $

  	

  2,500,000

  	

   

  
	

  On

  the last Sunday in January 2004

  	

   

  	

  $

  	

  29,500,000

  	

   

  
	

  On

  the last Sunday in April 2004

  	

   

  	

  $

  	

  60,000,000

  	

   

  

 

1.4           Amendment to Article 7.  Article 7 shall be amended by adding

the following Section 7.31 at the end of Article 7:

 

“7.31       Appraisal.

Fleetwood shall, or shall cause its Subsidiaries to, deliver to the Agent on or

prior to June 30, 2003 Appraisals for parcels of Release Eligible Real Estate

with an aggregate appraised value, as set forth in such Appraisals, of at least

$75,000,000.”

 

3

 

1.5           Amendment to Section 12.11.  The third sentence of Section 12.11

(beginning “Except as provided above, the Agent . . .”) is deleted in its entirety and replaced with

the following:

 

“Except as

provided above, the Agent will not release any of the Agent’s Liens without the

prior written authorization of the Lenders; provided that the Agent may,

in its discretion, release the Agent’s Liens on Collateral valued in the

aggregate not in excess of $1,000,000 during the Post-Sixth Amendment Period

without the prior written authorization of the Lenders and the Agent may

release the Agent’s Liens on Collateral valued in the aggregate not in excess

of $2,000,000 during the Post-Sixth Amendment Period with the prior written

authorization of Majority Lenders (any Collateral released pursuant to the

foregoing proviso, the “Permitted Released Collateral”) in each case if,

prior to the Release Appraisal Date only, immediately upon receipt by any Loan

Party or any Subsidiary thereof of the proceeds of any transfer, sale,

assignment, lease or other disposition of any Permitted Released Collateral

made or entered into in connection with any such release, the proceeds from any

such disposition shall be deposited with the Agent, for the ratable benefit of

the Agent and the Lenders (the “Disposition Cash Collateral”) as

security for, and to provide for the payment of, all Debt outstanding hereunder

including, without limitation, the Revolving Loans, Agent Advances, Non-Ratable

Loans, Hedge Agreements, Bank Products and all interest, fees and expenses

hereunder and at the request of the Borrower such Disposition Cash Collateral

may be released on the Release Appraisal Date if and only if the requirements

of Section 2.7 are satisfied on such date.”

 

1.6           Additions to Annex A to Credit

Agreement (Definitions). 

The following definitions of “Annual Appraisal Date”, “Manufactured

Housing Inventory Limit,” “Permitted Released Collateral”, “Post-Sixth

Amendment Period”, “Release Appraisal Date”, “Semi-Annual

Appraisal Date”,  “Sixth

Amendment”, “Sixth Amendment Anniversary Date” and “Sixth Amendment

Effective Date” are added in Annex A of the Credit Agreement in

appropriate alphabetical order:

 

“Annual Appraisal Date”

means a date falling within 30 days of the Sixth Amendment Effective Date and,

thereafter, each Sixth Amendment Anniversary Date.

 

“Manufactured Housing

Inventory Limit” has the meaning provided in Section 1.2(a)(i).

 

“Permitted Released

Collateral” has the meaning provided in Section 12.11.

 

“Post-Sixth Amendment

Period” means the period commencing on the Sixth Amendment Effective Date

and ending on June 30, 2003.

 

“Release Appraisal

Date” has the meaning provided in Section 2.7(d).

 

“Semi-Annual Appraisal

Date” means the date falling six months after the Sixth Amendment Effective

Date and, thereafter, the date, in each calendar year, falling six months after

the Sixth Amendment Anniversary Date.

 

4

 

“Sixth Amendment”

means that certain Sixth Amendment to Credit Agreement and Consent of

Guarantors, dated as of March 25, 2003, and entered into by and among

Fleetwood, Holdings and its Subsidiaries listed on the signature pages thereof

Retail and its Subsidiaries listed on the signature pages thereof, the banks

and other financial institutions signatory thereto that are parties as Lenders

to this Agreement and Bank of America, N.A., as administrative agent and

collateral agent for the Lenders.

 

“Sixth Amendment

Anniversary Date” means each anniversary of the Sixth Amendment Effective

Date.

 

“Sixth Amendment

Effective Date” means the later of (x) March 25, 2003 or (y) the

date upon which each of the conditions set forth in Section 5 of the

Sixth Amendment has been satisfied and the Sixth Amendment has become

effective.

 

2.             AMENDMENT TO

SECURITY AGREEMENT.  Article

7 of the Security Agreement is deleted in its entirety and replaced with

the following:

 

“7.           APPRAISALS.  The Grantors shall at their expense, provide

the Agent with (a) on the date six months after the Closing Date, a “desk

top” appraisal of the Inventory of the Grantors, and (b) on each Annual

Appraisal Date, a full appraisal of the Inventory, and, on each Semi-Annual

Appraisal Date, a “desk top” appraisal of manufactured housing Inventory only,

in each case as of the end of the most recent Fiscal Quarter and prepared on a

basis reasonably  satisfactory to the Agent, such appraisal to include, without

limitation, information required by applicable laws and regulations and by the

internal policies of the Lenders, or required to calculate the Borrowing

Base.  In addition, each Grantor shall

at its expense and upon the Agent’s request, provide the Agent with appraisals

or updates thereof of any or all of the Collateral in which it has an interest

from an appraiser, prepared on a basis, reasonably  satisfactory to the Agent,

such appraisals and updates to include, without limitation, information

required by applicable laws and regulations and by the internal policies of the

Lenders, or required to calculate the Borrowing Base; provided that unless a

Default or Event of Default has occurred and is continuing, no Grantor shall be

required to provide an appraisal or update pursuant to this sentence more

frequently than once per year.”

 

3.             CONSENTS,

APPROVALS AND WAIVERS.

 

3.1           Nebraska Collateral.  By the execution of this Amendment, the

Agent and the Lenders hereby consent to the sale by the Loan Parties of the

Nebraska Collateral and to the release of the Agent’s Liens in connection with

such sale of the Nebraska Collateral, and each Lender hereby instructs the

Agent to release any and all Agent’s Liens with respect to the Nebraska

Collateral and to take any and all other further reasonable and customary

actions necessary to effect such release.

 

3.2           Proposed Repurchase Amendment.  By the execution of this Amendment, the

Agent and the Lenders hereby consent to the execution and delivery by any of

the Loan Parties of (a) the Proposed Repurchase Amendment in the form of Exhibit

A attached hereto, and each Lender hereby instructs the Agent to take any

and all other further reasonable

 

5

 

and customary actions necessary to effect such execution and delivery;

and (b) the amendment to that certain Wholesale Security Agreement, dated as of

August 21, 2002 by and among Textron Financial, the Loan Parties and the other

parties thereto (the “Wholesale Security Agreement”) in the form of Exhibit

B attached hereto, pursuant to which Schedule 9(l) of the Wholesale

Security Agreement shall be replaced with a revised Schedule 9(l) that

reflects the amendments to the Credit 

Agreement made pursuant to Section 7.24 hereof.

 

4.             REPRESENTATIONS

AND WARRANTIES OF FLEETWOOD AND THE BORROWERS. 

In order to induce the Lenders and the Agent to enter into

this Amendment, each of Fleetwood and each 

Borrower represents and warrants to each Lender, the Issuing Bank and

the Agent that the following statements are true, correct and complete:

 

4.1           Power and Authority.  Each of the Loan Parties has all corporate

power and authority to enter into this Amendment and, as applicable, the

Consent of Guarantors attached hereto (the “Consent”), and to carry out

the transactions contemplated by, and to perform its obligations under or in

respect of, the Credit Agreement.

 

4.2           Corporate Action.  The execution and delivery of this Amendment

and the Consent and the performance of the obligations of each Loan Party under

or in respect of the Credit Agreement as amended hereby have been duly

authorized by all necessary corporate action on the part of each of the Loan

Parties.

 

4.3           No Conflict or Violation or Required

Consent or Approval.  The

execution and delivery of this Amendment and the Consent and the performance of

the obligations of each Credit Party under or in respect of the Credit

Agreement as amended hereby do not and will not conflict with or violate (a)

any provision of the governing documents of any Loan Party or any of its

Subsidiaries, (b) any Requirement of Law, (c) any order, judgment or

decree of any court or other governmental agency binding on any Loan Party or

any of its Subsidiaries, or (d) any indenture, agreement or instrument to which

any Loan Party or any of its Subsidiaries is a party or by which any Loan Party

or any of its Subsidiaries, or any property of any of them, is bound, and do

not and will not require any consent or approval of any Person.

 

4.4           Execution, Delivery and

Enforceability.  This

Amendment and the Consent have been duly executed and delivered by each Loan

Party which is a party thereto and are the legal, valid and binding obligations

of such Loan Party, enforceable in accordance with their terms, except as

enforceability may be affected by applicable bankruptcy, insolvency, and

similar proceedings affecting the rights of creditors generally, and general

principles of equity.  The Agent’s Liens

in the Collateral continue to be valid, binding and enforceable first priority

Liens which secure the Obligations.

 

4.5           No Default or Event of Default.

No event has occurred and is continuing or will result from the execution and

delivery of this Amendment or the Consent that would constitute a Default or an

Event of Default.

 

4.6           No Material Adverse Effect.  No event has occurred that has resulted, or

could reasonably be expected to result, in a Material Adverse Effect.

 

6

 

4.7           Representations and Warranties.  Each of the representations and warranties

contained in the Loan Documents is and will be true and correct in all material

respects on and as of the date hereof and as of the effective date of this

Amendment, except to the extent that such representations and warranties

specifically relate to an earlier date, in which case they were true, correct

and complete in all material respects as of such earlier date.

 

5.             CONDITIONS

TO EFFECTIVENESS OF THIS AMENDMENT.  This

Amendment, and the consents and approvals contained herein, shall be effective

only if and when signed by, and when counterparts hereof shall have been

delivered to the Agent (by hand delivery, mail or telecopy) by, Fleetwood, the

Borrowers and each Lender and only if and when each of the following conditions

is satisfied:

 

5.1           Consent of Guarantors.  Each of the Guarantors shall

have executed and delivered to the Agent the Consent.

 

5.2           No Default or Event of Default;

Accuracy of Representations and Warranties.  No Default or Event of Default shall exist

and each of the representations and warranties made by the Loan Parties herein

and in or pursuant to the Loan Documents shall be true and correct in all

material respects as if made on and as of the date on which this Amendment

becomes effective (except that any such representation or warranty that is

expressly stated as being made only as of a specified earlier date shall be

true and correct as of such earlier date), and the Borrowers shall have

delivered to the Agent a certificate confirming such matters.

 

5.3           Consents.  The Borrowers shall have received original

copies of executed consents delivered by Textron Financial, in a form

reasonably satisfactory to the Agent:

 

(a)           giving their consent, effective on or

prior to the Sixth Amendment Effective Date, to the Loan Parties entering into

the Sixth Amendment; and

 

(b)           giving their consent, effective

January 24, 2003, to the Loan Parties entering into the Fifth Amendment and

waiving any right as a result of the Loan Parties entering into such amendment

to exercise any remedies pursuant to the Wholesale Security Agreement or to

exercise any remedies pursuant to that certain Continuing Cross Default and

Cross Security Agreement, dated as of August 21, 2002 by and among Textron

Financial, the Loan Parties and the other parties thereto (the “Continuing

Cross Default and Cross Security Agreement”).

 

5.4           Fees.  The Borrowers shall have paid to the Agent

for the pro rata account of all Lenders an amendment fee equal to three-eighths

of one percent (0.375%) times the aggregate Commitments of all Lenders as of

the Sixth Amendment Effective Date, after giving effect to the Sixth Amendment.

 

5.5           Other Documents.  The Agent shall have received such documents

as the Agent may reasonably request in connection with this Amendment.

 

6.             COMMITMENT ADJUSTMENTS.  Each of the parties hereto acknowledges

that, in accordance with Section 13.19 of the Credit Agreement, the

Commitments

 

7

 

of each Lender were adjusted on March 25 2003, to the amount set forth

for such Lender on Schedule II as the Commitment of such Lender.

 

7.             EFFECTIVE

DATE.  This Amendment shall become effective on the

date of the satisfaction of the conditions set forth in Section 5, and

each of the Lenders signatory hereto hereby waives any Default or Event of

Default that may have arisen prior to the date of the Amendment, but that would

not be a Default or Event of Default after giving effect to this Amendment.

 

8.             EFFECT OF

AMENDMENT; RATIFICATION. 

This Amendment is a Loan Document. 

From and after the date on which this Amendment becomes effective, all

references in the Loan Documents to the Credit Agreement shall mean the Credit

Agreement as amended hereby.  Except as

expressly amended hereby or waived herein, the Credit Agreement and the other

Loan Documents, including the Liens granted thereunder, shall remain in full

force and effect, and all terms and provisions thereof are hereby ratified and

confirmed.  Each of Fleetwood and the

Borrowers confirms that as amended hereby, each of the Loan Documents is in

full force and effect, and that none of the Credit Parties has any defenses,

setoffs or counterclaims to its Obligations.

 

9.             APPLICABLE

LAW.  THE VALIDITY, INTERPRETATIONS

AND ENFORCEMENT OF THIS AMENDMENT AND ANY DISPUTE ARISING OUT OF OR IN

CONNECTION WITH THIS AMENDMENT, WHETHER SOUNDING IN CONTRACT, TORT, EQUITY OR

OTHERWISE, SHALL BE GOVERNED BY THE INTERNAL LAWS AND DECISIONS OF THE STATE OF

CALIFORNIA; PROVIDED THAT THE AGENT AND THE LENDERS SHALL RETAIN ALL RIGHTS

ARISING UNDER FEDERAL LAW.

 

10.           COMPLETE

AGREEMENT.  This Amendment

sets forth the complete agreement of the parties in respect of any amendment to

any of the provisions of any Loan Document or any waiver thereof.  The execution, delivery and effectiveness of

this Amendment do not constitute a waiver of any Default or Event of Default,

amend or modify any provision of any Loan Document except as expressly set

forth herein or constitute a course of dealing or any other basis for altering

the Obligations of any Loan Party.

 

11.           CAPTIONS;

COUNTERPARTS.  The catchlines

and captions herein are intended solely for convenience of reference and shall

not be used to interpret or construe the provisions hereof.  This Amendment may be executed by one or

more of the parties to this Amendment on any number of separate counterparts

(including by telecopy), all of which taken together shall constitute but one

and the same instrument.

 

[signatures follow;

remainder of page intentionally left blank]

 

8

 

IN WITNESS WHEREOF, each of the undersigned

has duly executed this Sixth Amendment to Credit Agreement and Security

Agreement as of the date set forth above.

 

	

  FMC BORROWERS

  	

   

  	

  FLEETWOOD HOLDINGS INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD HOMES OF ARIZONA, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD HOMES OF CALIFORNIA, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD HOMES OF FLORIDA, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD HOMES OF GEORGIA, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD HOMES OF IDAHO, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD HOMES OF INDIANA, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD HOMES OF KENTUCKY, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD HOMES OF NORTH CAROLINA,

  INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD HOMES OF OREGON, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD HOMES OF PENNSYLVANIA,

  INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD HOMES OF TENNESSEE, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD HOMES OF TEXAS, L.P.

  
	

   

  	

   

  	

  By:  FLEETWOOD GENERAL PARTNER

  
	

   

  	

   

  	

  OF TEXAS, INC.,

  its General Partner

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD HOMES OF VIRGINIA, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD HOMES OF WASHINGTON, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD MOTOR HOMES OF

  CALIFORNIA, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD MOTOR HOMES OF INDIANA,

  INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD MOTOR HOMES OF

  PENNSYLVANIA, INC.

  

 

S-1

 

	

   

  	

   

  	

  FLEETWOOD TRAVEL TRAILERS OF

  CALIFORNIA, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD TRAVEL TRAILERS OF

  INDIANA, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD TRAVEL TRAILERS OF KENTUCKY,

  INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD TRAVEL TRAILERS OF

  MARYLAND, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD TRAVEL TRAILERS OF OHIO,

  INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD TRAVEL TRAILERS OF

  OREGON, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD TRAVEL TRAILERS OF TEXAS,

  INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD FOLDING TRAILERS, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  GOLD SHIELD, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  GOLD SHIELD OF INDIANA, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  HAUSER LAKE LUMBER OPERATION, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  CONTINENTAL LUMBER PRODUCTS, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD GENERAL PARTNER OF TEXAS,

  INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD HOMES INVESTMENT, INC.

  

 

 

	

   

  	

  By: 

  	

  /s/ Boyd. R. Plowman

  	

   

  
	

   

  	

  Name: 

  	

  Boyd. R. Plowman

  
	

   

  	

  Title: 

  	

  Executive Vice President and Chief Financial Officer

  

 

S-2

 

	

  FRC BORROWERS

  	

   

  	

  FLEETWOOD RETAIL CORP.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD RETAIL CORP. OF

  CALIFORNIA

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD RETAIL CORP. OF IDAHO

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD RETAIL CORP. OF KENTUCKY

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD RETAIL CORP. OF

  MISSISSIPPI

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD RETAIL CORP. OF NORTH

  CAROLINA

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD RETAIL CORP. OF OREGON

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FLEETWOOD RETAIL CORP. OF VIRGINIA

  

 

 

	

   

  	

  By:

  	

  /s/ Boyd. R. Plowman

  	

   

  
	

   

  	

  Name:

  	

  Boyd R. Plowman

  
	

   

  	

  Title:

  	

  Executive Vice President and Chief Financial Officer

  

 

 

	

  GUARANTOR

  	

   

  	

  FLEETWOOD ENTERPRISES, INC.,

  as the Guarantor

  

 

 

	

   

  	

  By:

  	

  /s/ Boyd. R. Plowman

  	

   

  
	

   

  	

  Name:

  	

  Boyd R. Plowman

  
	

   

  	

  Title:

  	

  Executive Vice President and Chief Financial Officer

  

 

S-3

 

	

   

  	

   

  	

  BANK OF AMERICA, N.A.,

  as the Agent and

  
	

   

  	

   

  	

  a Lender

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By:

  	

  /s/ John McNamara

  	

   

  
	

   

  	

   

  	

  Name:

  	

  John McNamara

  
	

   

  	

   

  	

  Title:

  	

  Vice President

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  HELLER FINANCIAL, INC.,

  as a Lender

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By:  

  	

  /s/ Howard C. Bailey

  	

   

  
	

   

  	

   

  	

  Name: 

  	

  Howard C. Bailey

  
	

   

  	

   

  	

  Title: 

  	

  Senior Vice President

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  FOOTHILL CAPITAL CORPORATION,  as a

  
	

   

  	

   

  	

  Lender

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By:

  	

  /s/ Juan Barrera

  	

   

  
	

   

  	

   

  	

  Name:

  	

  Juan Barrera

  
	

   

  	

   

  	

  Title:

  	

  Assistant Vice President

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  THE CIT GROUP/BUSINESS CREDIT,

  INC., as a Lender

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By:

  	

  /s/ Thomas H. Hopkins

  	

   

  
	

   

  	

   

  	

  Name:

  	

  Thomas H. Hopkins

  
	

   

  	

   

  	

  Title:

  	

  Vice President

  
						

 

S-4

 

CONSENT OF GUARANTORS

 

Each of the

undersigned is a Guarantor of the Obligations of the FMC Borrowers and/or FRC

Borrowers under the Credit Agreement and hereby (a) consents to the

foregoing Amendment, (b) acknowledges that notwithstanding the execution

and delivery of the foregoing Amendment, the obligations of each of the

undersigned Guarantors are not impaired or affected and the Guaranties continue

in full force and effect, and (c) ratifies its Guaranty and each of the

Loan Documents to which it is a party.

 

IN WITNESS

WHEREOF, each of the undersigned has executed and delivered this CONSENT OF

GUARANTORS as of the 25th day of March, 2003. 

 

	

  FMC BORROWERS

  	

  FLEETWOOD HOLDINGS INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD HOMES OF ARIZONA, INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD HOMES OF CALIFORNIA, INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD HOMES OF FLORIDA, INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD HOMES OF GEORGIA, INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD HOMES OF IDAHO, INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD HOMES OF INDIANA, INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD HOMES OF KENTUCKY, INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD HOMES OF NORTH CAROLINA,

  INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD HOMES OF OREGON, INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD HOMES OF PENNSYLVANIA,

  INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD HOMES OF TENNESSEE, INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD HOMES OF TEXAS, L.P.

  
	

   

  	

  By:  FLEETWOOD GENERAL PARTNER

  
	

   

  	

  OF TEXAS, INC.,

  its General Partner

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD HOMES OF VIRGINIA, INC.

  

 

S-5

 

	

   

  	

  FLEETWOOD HOMES OF WASHINGTON, INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD MOTOR HOMES OF

  CALIFORNIA, INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD MOTOR HOMES OF INDIANA,

  INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD MOTOR HOMES OF

  PENNSYLVANIA, INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD TRAVEL TRAILERS OF

  CALIFORNIA, INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD TRAVEL TRAILERS OF

  INDIANA, INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD TRAVEL TRAILERS OF

  KENTUCKY, INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD TRAVEL TRAILERS OF

  MARYLAND, INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD TRAVEL TRAILERS OF OHIO,

  INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD TRAVEL TRAILERS OF

  OREGON, INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD TRAVEL TRAILERS OF TEXAS,

  INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD FOLDING TRAILERS, INC.

  
	

   

  	

   

  
	

   

  	

  GOLD SHIELD, INC.

  
	

   

  	

   

  
	

   

  	

  GOLD SHIELD OF INDIANA, INC.

  
	

   

  	

   

  
	

   

  	

  HAUSER LAKE LUMBER OPERATION, INC.

  
	

   

  	

   

  
	

   

  	

  CONTINENTAL LUMBER PRODUCTS, INC.

  
	

   

  	

   

  
	

   

  	

  FLEETWOOD GENERAL PARTNER OF TEXAS,

  INC.

  

 

S-6

 

	

   

  	

  FLEETWOOD HOMES INVESTMENT, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Boyd. R. Plowman

  	

   

  
	

   

  	

  Name:

  	

  Boyd. R. Plowman

  	

   

  
	

   

  	

  Title:

  	

  Executive Vice President and Chief Financial Officer

  

 

S-7

 

	

  FRC BORROWERS

  	

  FLEETWOOD RETAIL CORP.

  
	

   

  
	

  FLEETWOOD RETAIL CORP. OF

  CALIFORNIA

  
	

   

  
	

  FLEETWOOD RETAIL CORP. OF IDAHO

  
	

   

  
	

  FLEETWOOD RETAIL CORP. OF KENTUCKY

  
	

   

  
	

  FLEETWOOD RETAIL CORP. OF

  MISSISSIPPI

  
	

   

  
	

  FLEETWOOD RETAIL CORP. OF NORTH

  CAROLINA

  
	

   

  
	

  FLEETWOOD RETAIL CORP. OF OREGON

  
	

   

  
	

  FLEETWOOD RETAIL CORP. OF VIRGINIA

  

 

 

	

   

  	

  By:

  	

  /s/ Boyd. R. Plowman

  	

   

  
	

   

  	

  Name:

  	

  Boyd R. Plowman

  
	

   

  	

  Title:

  	

  Executive Vice President and Chief Financial Officer

  

 

 

	

  OTHER GUARANTORS

  	

  FLEETWOOD ENTERPRISES, INC.

  
	

  FLEETWOOD CANADA LTD.

  
	

  BUCKINGHAM DEVELOPMENT CO.

  
	

  FLEETWOOD INTERNATIONAL INC.

  

 

 

	

   

  	

  By:

  	

  /s/ Boyd. R. Plowman

  	

   

  
	

   

  	

  Name:

  	

  Boyd R. Plowman

  	

   

  
	

   

  	

  Title:

  	

  Executive Vice President and Chief Financial Officer

  

 

S-8Exhibit
10.2

 

 

Textron Financial
Corporation, Subsidiary of Textron Inc.

 

WHOLESALE SECURITY AGREEMENT

 

This Wholesale Security
Agreement (this “Agreement”) is entered into, as of the date set forth below,
by the debtor identified below (“Debtor”) and Textron Financial Corporation
(“Secured Party”).  For purposes of this
Agreement, any party which controls, is controlled by, or is under common
control with Debtor or Secured Party, shall be deemed an affiliate of Debtor or
Secured Party, as appropriate.

 

1.                                       Grant
of Security Interest; Description of Collateral.

 

Debtor grants to Secured Party and its affiliates a
security interest in the following property (collectively, the “Collateral”):

 

See Attached Exhibit A

 

2.                                       Promise
to Pay.

 

Debtor promises to pay to Secured Party the original
invoice cost (“Invoice Cost”) of each item of Collateral financed or refinanced
for Debtor by Secured Party pursuant to terms letters, finance plans or
otherwise (in all cases, a “Finance Plan”), together with interest and charges
on the Invoice Cost as specified in the applicable Finance Plan and this
Agreement (collectively, the “Total Debt”). 
All payments hereunder and under each Finance Plan shall be made payable
to Secured Party and delivered to the address specified by Secured Party from
time to time.  Each payment received
from Debtor by Secured Party shall be applied: 
first, to the portion of the Total Debt attributable to items of
Collateral which have been disposed of by Debtor, in the order in which such
items of Collateral were invoiced to Debtor (the “Order of Invoicing”); second,
to the portion of the Total Debt then due and owing attributable to other items
of Collateral in their Order of Invoicing; and, third, the excess, if
any, shall be held by Secured Party as security for the payment of all other
obligations of Debtor and/or its affiliates secured by the Collateral.  With respect to any particular item of
Collateral, payments received by Secured Party from Debtor which are allocable
thereto shall be applied:  first,
to accrued and unpaid late charges and interest owing hereunder and under any
applicable Finance Plan with respect to such item of Collateral; and, second,
to the then outstanding Invoice Cost of such item of Collateral.

 

3.                                       Obligations
Secured by the Collateral.

 

Each item of Collateral shall secure the payment and
performance by Debtor and/or its affiliates of all present and future
indebtedness and obligations of Debtor and/or its affiliates, of every kind and
nature whatsoever, owing to Secured Party and/or its affiliates.  Debtor acknowledges that Secured Party shall
be entitled to a purchase money security interest in the items of Collateral
financed by Secured Party for Debtor and agrees that the extent of Secured
Party’s purchase money priority in any such item of Collateral shall be
determined, at any time, by reference to the unpaid Total Debt attributable to
such item of Collateral.

 

4.                                       Collateral
to Remain Personal Property; Location of Collateral.

 

Debtor agrees that the Collateral shall at all times
remain personal property, shall not become affixed to or form a part of any
real estate, and shall be located at Debtor’s place(s) of business set forth
below.  Debtor shall not remove any of
the Collateral from such location(s) (including moving any of the Collateral
between or among such locations) or change its principal place of business
without the prior written consent of Secured Party.

 

5.                                       Disclaimer
of Warranties; Unconditional Nature of Obligations.

 

DEBTOR HEREBY ACKNOWLEDGES AND AGREES THAT:  (a) SECURED PARTY IS NOT THE MANUFACTURER OR
THE SELLER OF THE COLLATERAL; AND (b) SECURED PARTY HAS NOT MADE ANY WARRANTY
OR REPRESENTATION WITH RESPECT TO THE COLLATERAL OF ANY NATURE OR KIND
WHATSOEVER, EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE
MERCHANTABILITY OF THE COLLATERAL, ITS FITNESS FOR A PARTICULAR PURPOSE, ITS
COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS OR ITS NON-INFRINGEMENT OF THE
RIGHTS OF OTHERS. 
Debtor agrees that it shall give notice to Secured Party of any defect
or non-conformity in any shipment of the Collateral financed by Secured
Party, or any claim of a right to reject or revoke acceptance of such
Collateral for any reason, no later than five (5) days after delivery of such
Collateral.  NOTWITHSTANDING SUCH NOTICE, DEBTOR
AGREES THAT ITS OBLIGATIONS TO SECURED PARTY WITH RESPECT TO SUCH COLLATERAL
SHALL BE ABSOLUTE AND UNCONDITIONAL AT ALL TIMES AFTER SECURED PARTY HAS
ADVANCED OR COMMITTED TO ADVANCE ALL OR ANY PART OF THE INVOICE COST OF SUCH COLLATERAL
TO THE SELLER THEREOF.

 

6.                                       Debtor’s
Representations, Warranties and Agreements.

 

Debtor represents and warrants to Secured Party
that:  Debtor lawfully possesses and
owns each item of Collateral financed or refinanced by Secured Party for
Debtor; except for the security interest granted hereby, the Collateral is free
from, and will remain free from, all liens, claims, security interests or other
encumbrances; no financing statement covering the Collateral or its proceeds is
on file in favor of any party other than Secured Party; all information
supplied and statements made by Debtor in any financial or accounting statement
or application for credit delivered to Secured Party at any time is, or shall
be, true, correct, complete and genuine when delivered and there has been no
material adverse change in the Debtor’s credit worthiness, financial position
or in the information provided by Debtor to Secured Party in the credit
application or otherwise from the date of submission of such information through
the date of Debtor’s signing of this Agreement.  Debtor agrees:  to defend,
at Debtor’s own expense, any action, proceeding or claim affecting the
Collateral; to pay attorneys’ fees and all other expenses incurred by Secured
Party in enforcing its rights after Debtor’s default hereunder; to pay promptly
all taxes, assessments, license fees and other public or private charges when
levied or assessed against the Collateral, this Agreement, any Finance Plan or
payments to be made in connection therewith (such obligation shall survive the
termination of this Agreement); that if a certificate of title is required by
law with respect to any item of Collateral, Debtor shall obtain such
certificate and shall note the security interest of Secured Party thereon and,
in any event, shall do everything necessary or expedient to preserve or perfect
the security interest of Secured Party therein; that Debtor will not misuse,
fail to keep in good repair, secrete or, except as herein expressly permitted,
rent, lend, encumber or otherwise transfer any of the Collateral, or use the
Collateral for any purpose other than for display or demonstration on Debtor’s
premises without the prior written consent of Secured Party; and that Secured
Party may enter upon Debtor’s premises at any reasonable time to inspect the
Collateral and Debtor’s books and records pertaining to the Collateral with the
full cooperation and assistance of Debtor.

 

1

 

7.                                       Disposition
of Collateral by Debtor; Release of Lien.

 

Debtor is a merchant engaged in the business of
selling the Collateral and other personal property of a kind similar to the
Collateral.  Both Debtor and Secured
Party intend for Debtor to sell the Collateral, but only in the ordinary course
of its business as Debtor normally sells such Collateral.  Therefore, Debtor may sell any item of
Collateral provided that:  (a)
Debtor is not in default hereunder, (b) the price obtained for such item of
Collateral is not less than the unpaid Total Debt attributable thereto and (c)
Debtor holds all of the proceeds of any such sale in trust for, and promptly
remits the unpaid Invoice Cost of such item of Collateral to, Secured
Party.  Debtor acknowledges that Secured
Party may extend financial accommodations, in an amount equal to all or a
portion of the Debtor’s sales price, to the purchaser or lessee of an item of
Collateral from Debtor.  In such a case,
the unpaid Invoice Cost of such item of Collateral and the amount to be
financed by Secured Party may be offset against one another to determine the
amount payable by or to Debtor.

 

8.                                       Insurance
and Risk of Loss.

 

At all times during the term of this Agreement, Debtor
shall bear the entire risk of loss or destruction of, or damage to, the
Collateral.  Debtor will procure and
continuously maintain “all risk” property insurance covering each item of
Collateral for the full replacement value thereof, plus such other insurance as
Secured Party may reasonably specify from time to time.  Each policy of insurance shall contain a
standard Lender’s Loss Payable Endorsement in favor of Secured Party, providing
for, among other things, thirty (30) days prior written notice to Secured Party
of any cancellation, non-renewal or modification of such coverage.  Secured Party’s acceptance of policies in
lesser amounts in one instance shall not be a waiver of Debtor’s obligations
hereunder in any other instances.

 

9.                                       Events
of Default; Acceleration.

 

Debtor and Secured Party acknowledge that time is of
the essence in this Agreement.  The
following are events of default under this Agreement permitting Secured Party
to take such action under Paragraph 10 of this Agreement as Secured Party deems
necessary:

 

(a)                                any
of Debtor’s obligations owing to Secured Party and/or any affiliate of Secured
Party under this Agreement, any Finance Plan or any other agreement are not
paid or performed as required; provided, that, so long as such default does not
involve a misrepresentation or false
statement, the Debtor shall have (x) five (5) business days to cure a
default based upon a failure to pay any amount when due (including, without
limitation, principal, interest, fees and/or expenses) and (y) twenty (20)
business days to cure any other default if such default is able to be cured.
Any cure period shall commence upon the date such payment or performance is
due;

 

(b)                             Default
by Debtor or any guarantor or other party liable for any of Debtor’s and/or its
affiliates’ obligations to Secured Party in the payment of any other material
indebtedness for borrowed money or default in the observance or performance of
any material covenant or condition (including, without limitation, any
financial covenants) contained in any agreement or instrument evidencing,
securing, or relating to any such indebtedness (including, without limitation,
any Event of Default under the Other Credit Facility (hereafter defined));

 

(c)                                there
occurs a default by any affiliate of Debtor under any agreement with Secured
Party and/or any affiliate of Secured Party;

 

(d)                               any
sale or other disposition of the Collateral is made by Debtor other than in
compliance with Paragraph 7 hereof;

 

(e)                                Debtor
breaches any material (as determined by Secured Party in its reasonable
discretion) representation, warranty or covenant contained herein or in any
other instrument or agreement delivered by Debtor to Secured Party or any
affiliate of Secured Party in connection with this Agreement or any other
transaction;

 

(f)                                  Debtor
dies, ceases to do business as a going concern or there occurs a material change
in the ownership or management of Debtor’s business;

 

(g)                               any
substantial part (as determined by Secured Party in its reasonable discretion)
of the Collateral is lost, damaged or destroyed and Debtor fails to pay to
Secured Party, within five (5) days thereafter, the unpaid Invoice Cost of such
Collateral;

 

(h)                               Debtor
becomes insolvent or bankrupt; makes an assignment for the benefit of creditors
or consents to the appointment of a trustee or receiver; a trustee or a
receiver is appointed for Debtor or for a substantial part of its property
without its consent and such trustee or receiver is not removed within a period
of thirty (30) days; bankruptcy, reorganization or insolvency proceedings are
instituted by or against Debtor and, if instituted against Debtor, are not
dismissed within a period of thirty (30) days; or if any of the foregoing
occurs with respect to any guarantor or other party liable for any of Debtor’s
and/or its affiliates obligations to Secured Party and/or its affiliates;

 

(i)                                   all
or any part of the Collateral is attached, levied or seized upon in any
proceeding and such process is not discharged within ten (10) days;

 

(j)                                   Secured
Party believes in good faith that the prospect of payment or performance of
Debtor’s and/or its affiliates obligations to Secured Party and/or its
affiliates is impaired, whether by reason of a material adverse change in the
business prospects or financial condition of Debtor or otherwise, or, in good
faith, believes that the Collateral is insufficient security for Debtor’s
obligations to Secured Party;

 

(k)                                any
guarantor, surety or endorser for any of Debtor’s and/or its affiliates
obligations to Secured Party and/or its affiliates dies, defaults in any
obligation or liability owing to Secured Party or any affiliate of Secured
Party, or any guaranty of the obligations secured hereby is terminated; or

 

	
  (l)

  	
   

  	
  without the prior
  written consent of Secured Party, the covenants in the financing arrangement
  agented by Bank of America or its affiliates (or any successor agent) (the
  “Other Credit Facility”) shall be materially different (as determined by
  Secured Party in its reasonable discretion) than the financial covenants set
  forth on Schedule 9(l) hereof (the “Agreed Financial Covenants”). For the
  avoidance of doubt and without limiting the generality of the foregoing
  sentence, any (x) termination or expiration of the Other Credit Facility
  and/or (y) refinancing of the Other Credit Facility (if such new credit
  facility does not contain the Agreed Financial Covenants (or other financial
  covenants which are not materially different than the Agreed Financial
  Covenants)) without the prior written consent of Secured Party shall be
  considered an additional event of default.

  

 

2

 

If Debtor is in default hereunder, the indebtedness
herein described and all other debts then owing by Debtor to Secured Party
and/or its affiliates under this Agreement or any other present or future
agreement shall, if Secured Party or any such affiliate shall so elect, become
immediately due and payable.

 

10.                                 Secured
Party’s Remedies After Default; Consent to Enter Premises.

 

Upon a default hereunder, and then and at any time
thereafter, Secured Party shall have all of the rights and remedies of a secured
party under the Uniform Commercial Code and any other applicable laws,
including the right to collect from Debtor any deficiency remaining after
disposition of the Collateral.  Debtor
agrees that Secured Party may, by itself or through an agent, without notice to
any person and without judicial process of any kind, but without breaching the
peace, enter into any premises or upon any land owned, leased or otherwise
under the apparent control of Debtor where Secured Party believes the
Collateral may be, and disassemble, render unusable and/or repossess all or any
items of the Collateral. Debtor expressly waives all rights to possession of
the Collateral after default and all claims for injuries suffered through or
loss caused by such entering and/or repossession by Secured Party.  Debtor shall, upon demand by Secured Party,
assemble the Collateral and return it to Secured Party at a place designated by
Secured Party.  Secured Party will give
Debtor reasonable notice of the time and place of any public sale of the
Collateral or of the time after which any private sale of the Collateral or any
other intended disposition thereof is to be made.  The requirement of reasonable notice shall be met if such notice
is mailed to the notice address of Debtor shown herein at least ten (10) days
before the time of the sale or other disposition of the Collateral.  Debtor agrees that the repurchase of any
item of Collateral by the manufacturer or any distributor thereof shall constitute
a commercially reasonable private sale of the Collateral by Secured Party, if
the price obtained is equal to:  (a) the
then outstanding Invoice Cost of such item of Collateral, minus (b) amounts
incurred, if any, to restore such item of Collateral to the equivalent of
unused condition.  Expenses of retaking,
holding, preparing for sale, selling and the like shall include attorney’s fees
and other reasonable legal expenses. 
Debtor understands that Secured Party’s rights are cumulative and not
alternative.

 

11.                                 Waiver
of Defaults; Agreement Inclusive.

 

Secured Party may, in its sole discretion, waive a
default or cure a default at Debtor’s expense. 
Any such waiver in any particular instance or any waiver of a particular
default shall not be a waiver of any other defaults at the same time or at any
other time.  No modification or change
in this Agreement, or supplement hereto, shall bind Secured Party unless in
writing and signed by an authorized officer of Secured Party.

 

12.                                 Financing
Statements; Financial Information.

 

Debtor shall execute all financing statements or other
instruments which Secured Party reasonably deems to be necessary or appropriate
to protect and perfect its security interest in the Collateral.  Debtor authorizes Secured Party to file a
financing statement with respect to the Collateral signed only by Secured Party
and/or to file a reproduction of this Agreement or a reproduction of a
financing statement.  Debtor will
deliver to Secured Party, within ninety (90) days after the close of each
fiscal year of Debtor, Debtor’s balance sheet and statement of income
(“Financial Statements”), certified by a recognized firm of certified public
accountants as having been prepared in accordance with generally accepted
accounting principles and as presenting fairly the financial condition of
Debtor as of the date thereof and for the period then ended.  Upon request, Debtor will deliver to Secured
Party, within ninety (90) days after the close of each fiscal quarter of the
Debtor, copies of Debtor’s quarterly Financial Statements certified by the
chief financial officer of Debtor as presenting fairly the financial condition
of Debtor as of the date thereof and for the period then ended.

 

13.                                 Miscellaneous.

 

Any provisions hereof contrary to, prohibited by, or
invalid under applicable law, shall be inapplicable hereto, deemed omitted
herefrom, and shall not invalidate the remaining provisions hereof.  Secured Party may establish a credit limit
for Debtor in an aggregate amount not to exceed Twenty Million and 00/100
Dollars ($20,000,000); provided, that, Secured Party may adjust such credit
limit from time to time in its sole discretion.  Such credit limit will not constitute a committed line of credit.
It is the intention of Secured Party not to charge interest pursuant to the
Finance Plans at a rate in excess of the highest rate permitted by applicable
law.  In making such determination,
interest on any outstanding loan amount shall be spread over the entire period
that such loan amount is outstanding. 
Any such excess charges paid by Debtor to Secured Party shall be applied
to reduce the applicable loan amount outstanding or refunded to Debtor, as
appropriate.  Debtor acknowledges
receipt of a true copy hereof and waives notice of Secured Party’s acceptance
hereof.  If Debtor is a corporation,
Debtor represents that this Agreement is executed pursuant to authority of its
Board of Directors and constitutes the valid and binding obligation of
Debtor.  If more than one party executes
this Agreement as Debtor, their obligations under this Agreement are joint and
several.  Debtor may not assign its
rights or delegate its obligations hereunder without the prior written consent
of Secured Party.  All notices hereunder
shall be in writing and delivered or sent to the respective addresses set forth
herein, or such other address as either Secured Party or Debtor may hereafter
designate to the other.  This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of Rhode Island, without reference to applicable conflict of law
principles.  Each of the
parties hereto consents to the non-exclusive jurisdiction of Rhode Island
courts in connection with the resolution of any disputes concerning the matters
contemplated herein.

 

[remainder of page
intentionally left blank]

 

3

 

                The parties hereto have executed this Agreement as of
August 21, 2002.

 

	
  SECURED
  PARTY:

  	
   

  	
  DEBTOR:

  
	
   

  	
   

  	
   

  
	
  TEXTRON FINANCIAL CORPORATION, for itself and as
  agent for its affiliates

  	
   

  	
  FLEETWOOD RETAIL CORP. OF ARKANSAS, an Arkansas
  corporation

  
	
   

  	
   

  	
  FLEETWOOD RETAIL CORP. OF GEORGIA, a Georgia
  corporation

  
	
   

  	
   

  	
  FLEETWOOD RETAIL CORP. OF ILLINOIS, a Illinois
  corporation

  
	
  By:

  	
      /s/  CINDI RUTLEDGE

  	
   

  	
  FLEETWOOD RETAIL CORP. OF KANSAS, a Delaware
  corporation

  
	
  Print Name:

  	
  CINDI RUTLEDGE

  	
   

  	
  FLEETWOOD RETAIL CORP. OF LOUISIANA, a Louisiana
  corporation

  
	
  Print Title:

  	
  AVP

  	
   

  	
  FLEETWOOD RETAIL CORPORATION OF MISSOURI, a Missouri
  corporation

  
	
   

  	
   

  	
  FLEETWOOD RETAIL CORP. OF OHIO, a Ohio corporation

  
	
   

  	
   

  	
  FLEETWOOD HOME CENTERS OF NEVADA, INC., a Nevada
  corporation

  
	
   

  	
   

  	
  FLEETWOOD RETAIL CORP. OF OKLAHOMA, a Oklahoma
  corporation

  
	
   

  	
   

  	
  FLEETWOOD RETAIL CORP. OF SOUTH CAROLINA, a South
  Carolina corporation

  
	
   

  	
   

  	
  FLEETWOOD RETAIL CORP. OF WEST VIRGINIA, a West
  Virginia corporation

  
	
   

  	
   

  	
  FLEETWOOD RETAIL CORP. OF WASHINGTON, a Delaware
  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/
         : BOYD R. PLOWMAN

  
	
   

  	
   

  	
  Print Name:

  	
  BOYD R. PLOWMAN

  
	
   

  	
   

  	
  Print Title:

  	
  AS SR. V.P. FOR EACH OF THE FOREGOING DEBTORS

  
	
   

  	
   

  	
   

  
	
  Secured Party’s address for notices:

  	
  P.O. Box 3090

  Alpharetta, GA 30023

  	
   

  	
  WITNESS FOR DEBTORS SIGNATURE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
  Debtor’s 
  trade names (if any):

  	
   

  	
  Home Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Debtor’s principal place of business and address for
  notices:

  
	
  Debtor’s other places of business where the
  collateral may be located:

  	
   

  	
   

  
	
   

  	
   

  	
  Street:

  	
  3125 MYERS STREET

  
	
  Street:

  	
  SEE EXHIBIT B

  	
   

  	
  City:

  	
  RIVERSIDE

  	
  State:

  	
  CA

  
	
  City:

  	
   

  	
   

  	
  County:

  	
   

  	
  Zip:

  	
  92503

  
	
  County:

  	
   

  	
  Zip:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name (s) of Debtor’s other  partner(s) (if applicable):

  
	
  Street:

  	
   

  	
   

  	
   

  
	
  City:

  	
   

  	
   

  	
   

  
	
  County:

  	
   

  	
  Zip:

  	
   

  	
   

  	
   

  
																							

 

4

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