Document:

exv10w1

 

Exhibit 10.1

AMENDMENT NO. 1 TO CREDIT AGREEMENT

               This Amendment No. 1 to Credit Agreement (this “Amendment”) is made as of
July 18, 2003, among ATLANTIS PLASTIC FILMS, INC., a Delaware corporation
(“Atlantis Plastic Films”), ATLANTIS MOLDED PLASTICS, INC., a Florida
corporation (“Atlantis Molded Plastics”), ATLANTIS FILMS, INC., a Delaware
corporation (“Atlantis Films”), RIGAL PLASTICS, INC., a Florida corporation
(“Rigal Plastics”), ATLANTIS PLASTICS INJECTION MOLDING, INC., a Kentucky
corporation (“Injection Molding”), PIERCE PLASTICS, INC., a Delaware
corporation (“Pierce Plastics”), and EXTRUSION MASTERS, INC., an Indiana
corporation (“Extrusion Masters”) (Atlantis Plastic Films, Atlantis Molded
Plastics, Atlantis Films, Rigal Plastics, Injection Molding, Pierce Plastics
and Extrusion Masters are sometimes referred to herein as the “Borrowers” and
individually as a “Borrower”), the other financial institutions who are or
hereafter become parties to this Agreement as Lenders, GENERAL ELECTRIC CAPITAL
CORPORATION, a Delaware corporation, in its capacity as Agent, and the
financial institutions signatories hereto, each as a Lender.

               Reference is made to that certain Credit Agreement dated as of December
27, 2002, among Borrowers, General Electric Capital Corporation, as Agent and
the financial institutions party thereto as Lenders (as amended or otherwise
modified as of the date hereof, the “Credit Agreement”; capitalized terms used
herein without definition shall have the meanings ascribed to such terms in the
Credit Agreement).

               Borrowers have requested that Requisite Lenders agree to amend the Credit
Agreement in certain respects.

               NOW, THEREFORE, Agent, the undersigned Lenders and Borrowers hereby agree
as follows:

     1.     Amendments to Credit Agreement. Subject to the satisfaction of the
conditions precedent set forth in Section 2 below, Borrowers, Agent and the
undersigned Lenders hereby agree to amend the Credit Agreement as follows:

     1.1 Effective as of the first day of the first calendar month that occurs
more than one (1) day after delivery of Borrowers’ quarterly Financial
Statements to Lenders for the Fiscal Quarter ending September 30, 2003, the
pricing grids contained in Section 1.2(a) of the Credit Agreement which set
forth the adjustments in Applicable Margins are hereby amended and restated as
follows:

1

 

	 	 	 	 	 
	 	 	Level of
	"If Leverage Ratio is:	 	Applicable Margins:
	
	 	

	> 3.5 to 1.0
	 	Level I
	< 3.5 to 1.0, but > 3.0 to 1.0
	 	Level II
	< 3.0 to 1.0, but > 2.5 to 1.0
	 	Level III
	< 2.50 to 1.0, but > 2.0 to 1.0
	 	Level IV
	< 2.0 to 1.0
	 	Level V

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Level I	 	Level II	 	Level III	 	Level IV	 	Level V
	 	 	
	 	
	 	
	 	
	 	

	Applicable Revolver
Index Margin and
Applicable Term
Loan A Index Margin
	 	 	2.50	%	 	 	2.50	%	 	 	2.25	%	 	 	2.0	%	 	 	1.75	%
	Applicable Revolver
LIBOR Margin and
Applicable Term
Loan A LIBOR Margin
	 	 	4.00	%	 	 	4.00	%	 	 	3.75	%	 	 	3.50	%	 	 	3.25	%
	Applicable Term
Loan B Index Margin
	 	 	3.25	%	 	 	3.00	%	 	 	2.75	%	 	 	2.75	%	 	 	2.75	%
	Applicable Term
Loan B LIBOR Margin
	 	 	4.75	%	 	 	4.50	%	 	 	4.25	%	 	 	4.25	%	 	 	4.25	%
	Applicable L/C
Margin
	 	 	4.00	%	 	 	4.00	%	 	 	3.75	%	 	 	3.50	%	 	 	3.25	%

     For any period prior to the first day of the first calendar month that
occurs more than one (1) day after delivery of Borrowers’ quarterly Financial
Statements to Lenders for the Fiscal Quarter ending September 30, 2003, the
pricing grid set forth in the original Loan Agreement shall remain unchanged.”

2

 

     1.2 Section 4.3 of the Credit Agreement is hereby amended and restated in
its entirety as follows:

		
	 	     “Section 4.3 Minimum EBITDA.
	 
	 	     Holdings, Borrowers and their Subsidiaries on a consolidated
basis shall have, at the end of each Fiscal Quarter set forth
below, EBITDA for the 12-month period then ended of not less than
the following:

	 	 	 	 	 
	Fiscal Quarter	 	EBITDA
	
	 	

	June 30, 2003
	 	$	24,500,000	 
	September 30, 2003
	 	$	25,000,000	 
	December 31, 2003
	 	$	26,000,000	 
	March 31, 2004
	 	$	27,500,000	 
	June 30, 2004
	 	$	30,000,000	 
	September 30, 2004
	 	$	30,000,000	 
	December 31, 2004
	 	$	30,000,000	 
	March 31, 2005
	 	$	32,500,000	 
	June 30, 2005
	 	$	32,500,000	 
	September 30, 2005
	 	$	32,500,000	 
	December 31, 2005
	 	$	32,500,000	 
	March 31, 2006
	 	$	35,000,000	 
	June 30, 2006
	 	$	35,000,000	 
	September 30, 2006
	 	$	35,000,000	 
	December 31, 2006
	 	$	35,000,000	 
	March 31, 2007
	 	$	37,500,000	 
	June 30, 2007
	 	$	37,500,000	 
	September 30, 2007
	 	$	37,500,000	 
	December 31, 2007
	 	$	37,500,000	 
	March 31, 2008 and each Fiscal Quarter ending thereafter
	 	$	40,000,000"	 

     1.3 Section 4.6 of the Credit Agreement is hereby amended and restated in
its entirety as follows:

		
	 	     “Section 4.6 Maximum Leverage Ratio
	 
	 	     Holdings, Borrowers and their Subsidiaries on a consolidated
basis shall have, at the end of each Fiscal Quarter set forth
below, a Leverage Ratio as of the last day of such Fiscal Quarter
and for the 12-month period then ended of not more than the
following:

3

 

	 	 	 	 	 
	Fiscal Quarter	 	Maximum Leverage Ratio
	
	 	

	June 30, 2003
	 	3.80 to 1.0
	September 30, 2003
	 	3.70 to 1.0
	December 31, 2003
	 	3.25 to 1.0
	March 31, 2004
	 	3.00 to 1.0
	June 30, 2004
	 	2.75 to 1.0
	September 30, 2004
	 	2.5 to 1.0
	December 31, 2004
	 	2.5 to 1.0
	March 31, 2005
	 	2.0 to 1.0
	June 30, 2005
	 	2.0 to 1.0
	September 30, 2005
	 	2.0 to 1.0
	December 31, 2005
	 	2.0 to 1.0
	March 31, 2006
	 	1.5 to 1.0
	June 30, 2006
	 	1.5 to 1.0
	September 30, 2006
	 	1.5 to 1.0
	December 31, 2006
	 	1.5 to 1.0
	March 31, 2007
	 	1.5 to 1.0
	June 30, 2007
	 	1.5 to 1.0
	September 30, 2007
	 	1.5 to 1.0
	December 31, 2007
	 	1.5 to 1.0
	March 31, 2008 and each Fiscal Quarter ending thereafter
	 	1.5 to 1.0"

     1.4 Section 4.8(o) is hereby amended and restated in its entirety as
follows:

		
	 	     "(o) Compliance, Pricing and Excess Cash Flow Certificate.
Together with each delivery of Financial Statements of Holdings
and its Subsidiaries pertaining to the last month of a Fiscal
Quarter pursuant to Sections 4.8(a) and (b), Borrower
Representative will deliver a fully and properly completed
Compliance, Pricing and Excess Cash Flow Certificate (in
substantially the same form as Exhibit 4.8(o) (the “Compliance,
Pricing and Excess Cash Flow Certificate”) signed by Borrower
Representative’s chief executive officer or chief financial
officer or another officer designated by the chief executive
officer or chief financial officer; provided that Schedule 2 of
the Compliance, Pricing and Excess Cash Flow Certificate
pertaining to the calculation of Excess Cash Flow shall only be
required to be completed with the delivery of Financial Statements
of Holdings and its Subsidiaries pursuant to Section 4.8(b).”

     1.5 Section 4.3 (Minimum EBITDA) of Schedule 1 to Exhibit 4.8(o) of the
Loan Agreement is hereby amended and restated in its entirety as attached on
Exhibit A hereto.

4

 

     2.     Conditions Precedent. The effectiveness of the amendments set forth
above is subject to the satisfaction of the following conditions precedent
(unless specifically waived in writing by Agent):

     (a)  Receipt by Agent of a counterpart to this Amendment duly executed and
delivered by Borrowers, and such other documents and instruments as Agent may
require;

     (b)  Receipt by Agent of a counterpart to this Amendment duly executed and
delivered by Requisite Lenders;

     (c)  Receipt by Agent of a Reaffirmation executed by Holdings, in form and
substance satisfactory to Agent;

     (d)  All proceedings taken in connection with the transactions contemplated
by this Amendment and all documents, instruments and other legal matters
incident thereto shall be satisfactory to Agent and its legal counsel;

     (e)  No Default or Event of Default shall have occurred and be continuing;
and

5

 

     (f)  Borrowers shall have paid Agent, for the benefit of the Lenders, the
Amendment Fee (defined below).

     3.     Amendment Fee. Borrowers shall have paid to each Lender which shall
have executed and delivered a counterpart to this Amendment prior to 5:00 p.m.
(Chicago time) on July 18, 2003 a fee, fully earned as of the date hereof,
equal to 0.125% of the sum of (x) such Lender’s pro rata share of the Revolving
Loan Commitment, and (y) such Lender’s outstanding Term Loans, in each case
measured as of the date hereof (the “Amendment Fee”). The Amendment Fee is in
addition to, and not in lieu of, all other fees charged to Borrowers under the
Loan Documents.

     4.     Covenant Fee. In the event that Borrower breaches any of its financial
covenants for the periods ending September 30, 2003 or December 31, 2003,
Borrower shall pay to each Lender a fee equal to 0.125% of the sum of (x) such
Lender’s pro rata share of the Revolving Loan Commitment, and (y) such Lender’s
outstanding Term Loans, in each case measured as of the date hereof (the
“Covenant Fee”). The Covenant Fee shall be fully earned and payable upon the
delivery of the Compliance, Pricing and Excess Cash Flow Certificates for such
periods. The Covenant Fee is in addition to, and not in lieu of, all other fees
charged to Borrowers under the Loan Documents. Notwithstanding the payment of
any Covenant Fee, nothing contained herein shall be construed as a waiver of
any Events of Default under the Loan Agreement or a limitation in any way of
any of Agent’s and Lenders’ rights and remedies under the Loan Agreement.

     5.     Representations and Warranties. To induce Agent and the undersigned
Lenders to enter into this Amendment, each Borrower represents and warrants to
Agent and Lenders:

     (a)  that the execution, delivery and performance of this Amendment has
been duly authorized by all requisite corporate action on the part of such
Borrower and that this Amendment has been duly executed and delivered by such
Borrower;

     (b)  each of the representations and warranties set forth in Section 5 of
the Credit Agreement (other than those which, by their terms, specifically are
made as of certain date prior to the date hereof) are true and correct in all
material respects as of the date hereof; and

     (c)  that no Default or Event of Default has occurred and is continuing as
of the date hereof.

     6.     Consent to Revised Financial Projections. Agent and the undersigned
Lenders hereby acknowledge and agree that the revised financial projections for
the Fiscal Year ending December 31, 2003 attached hereto as Exhibit B replace
the financial projections previously delivered to Agent for such period.

     7.     Miscellaneous.

6

 

     7.1 Expenses. Each Borrower hereby acknowledges and agrees that this
Amendment is a “Loan Document” for purposes of, among other things, Section
1.3(e) of the Credit Agreement.

     7.2 Event of Default. Each Borrower hereby acknowledges and agrees that
the breach by such Borrower of any of the representations, warrants and/or
covenants set forth in this Amendment shall constitute an Event of Default.

     7.3 Governing Law. This Amendment shall be a contract made under and
governed by the internal laws of the State of New York.

     7.4 Severability. Any provision of this Amendment held by a court of
competent jurisdiction to be invalid or unenforceable shall not impair or
invalidate the remainder of this Amendment and the effect thereof shall be
confined to the provision so held to be invalid or unenforceable.

     7.5 Counterparts. This Amendment may be executed in one or more
counterparts, each of which shall constitute an original, but all of which
taken together shall be one and the same instrument.

     7.6 Ratification. The terms and provisions set forth in this Amendment
shall modify and supersede all inconsistent terms and provisions of the Credit
Agreement and shall not be deemed to be a consent to the modification or waiver
of any other term or condition of the Credit Agreement. Except as expressly
modified and superseded by this Amendment, the terms and provisions of the
Credit Agreement are ratified and confirmed and shall continue in full force
and effect.

     7.7 Reference. Any reference to the Credit Agreement contained in any
document, instrument or agreement executed in connection with the Credit
Agreement shall be deemed to be a reference to the Credit Agreement as modified
by this Amendment.

     7.8 Successors. This Amendment shall be binding upon Borrowers, the
Lenders, Agent and their respective successors and assigns, and shall inure to
the benefit of Borrowers, the Lenders, Agent and their respective successors
and assigns.

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their respective officers thereunto duly authorized and delivered
as of the date first above written.

7

 

	 	 	 	 	 
	 	 	ATLANTIS PLASTIC FILMS, INC.,

ATLANTIS MOLDED PLASTICS, INC.

ATLANTIS FILMS, INC.

RIGAL PLASTICS, INC.

ATLANTIS PLASTICS INJECTION MOLDING, INC.

PIERCE PLASTICS, INC.

EXTRUSION MASTERS, INC.

each as a Borrower
	 	 	 	 	 
	 	 	
Each By:

 

Name:

Title:
	 	/s/ Paul G. Saari

Paul G. Saari

Senior Vice President and Chief Financial Officer
	 	 	 	 	 
	 	 	GENERAL ELECTRIC CAPITAL CORPORATION, as Agent, Co-Lead Arranger and a Lender
	 	 	 	 	 
	 	 	
By:
 
	 	/s/ Thomas S. Beck

	 	 	Its Duly Authorized Signatory
	 	 	 	 	 
	 	 	CIBC WORLD MARKETS CORP., as Syndication Agent and Co-Lead Arranger
	 	 	 	 	 
	 	 	
By:

 

Name:

Title:
	 	/s/ Dean J. Decker

Dean J. Decker

Managing Director
	 	 	 	 	 
	 	 	MERRILL LYNCH CAPITAL, A DIVISION OF MERRILL LYNCH BUSINESS FINANCIAL SERVICES INC.
	 	 	 	 	 
	 	 	
By:

 

Name:

Title:
	 	/s/ Troy Oder

Troy Oder

Assistant Vice President

8

 

	 	 	 	 	 
	 	 	BNP PARIBAS
	 	 	 	 	 
	 	 	
By:

 

Name:

Title:
	 	/s/ Cecile Scherer

Cecile Scherer

Director, Merchant Banking Group
	 	 	 	 	 
	 	 	CIBC INC., as a Lender
	 	 	 	 	 
	 	 	
By:

 

Name:

Title:
	 	/s/ Dean J. Decker

Dean J. Decker

Managing Director, CIBC World Markets Corp., as Agent
	 	 	 	 	 
	 	 	JOHN HANCOCK LIFE INSURANCE COMPANY
	 	 	 	 	 
	 	 	
By:

 

Name:

Title:
	 	/s/ Lorn C. Davis

Lorn C. Davis

Director
	 	 	 	 	 
	 	 	JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
	 	 	 	 	 
	 	 	
By:

 

Name:

Title:
	 	/s/ Lorn C. Davis

Lorn C. Davis

Authorized Signatory
	 	 	 	 	 
	 	 	JOHN HANCOCK INSURANCE COMPANY OF VERMONT
	 	 	 	 	 
	 	 	
By:

 

Name:

Title:
	 	/s/ Lorn C. Davis

Lorn C. Davis

Authorized Signatory

9

 

	 	 	 	 	 
	 	 	ORIX FINANCIAL SERVICES, INC.
	 	 	 	 	 
	 	 	
By:

 

Name:

Title:
	 	/s/ Dawn M. Dieter

Dawn M. Dieter

Vice President

10

 

REAFFIRMATION

     The undersigned (each a “Guarantor”) hereby (i) acknowledges receipt of a
copy of the foregoing Amendment No. 1 to Credit Agreement (the “Amendment”);
(ii) consents to each Borrower’s execution and delivery thereof; and (iii)
agrees to be bound thereby. Guarantor hereby affirms that nothing contained
therein shall modify in any respect whatsoever its guaranty of the obligations
of Borrowers to Agent and Lenders pursuant to the terms of that certain
Guaranty of Holdings dated December 27, 2002 (the “Guaranty”) executed by
Guarantor in favor of Agent and Lenders and reaffirms that the Guaranty is and
shall continue to remain in full force and effect. Although Guarantor has been
informed of the matters set forth herein and has acknowledged and agreed to
same, Guarantor understands that Agent and Lenders have no obligation to inform
Guarantor of such matters in the future or to seek Guarantor’s acknowledgment
or agreement to future amendments or waivers, and nothing herein shall create
such a duty.

     IN WITNESS WHEREOF, each of the undersigned has executed this
Reaffirmation on and as of the date of such Amendment.

	 	 	 	 	 
	 	 	ATLANTIS PLASTICS, INC.
	 	 	 	 	 
	 	 	
By
	 	/s/ Paul G. Saari

	 	 	Its Senior Vice President and CFO

11

 

EXHIBIT A

MINIMUM EBITDA

(SECTION 4.3)

	 	 	 	 	 	 	 
	Consolidated Net Income is defined as follows:
	 	 	 	 
	 
	 	 	 	 
	Consolidated net income during the measuring period excluding:
	 	$	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	 	the income (or deficit) of any Person accrued prior to
the date it became a Subsidiary of, or was merged or
consolidated into, Holdings or any of Holdings’
Subsidiaries
	 	 	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	 	the income (or deficit) of any Person (other than a
Subsidiary) in which Holdings has an ownership
interest, except to the extent any such income has
actually been received by Borrowers or any of their
Subsidiaries in the form of cash dividends or
distributions
	 	 	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	 	the undistributed earnings of any Subsidiary of
Holdings to the extent that the declaration or payment
of dividends or similar distributions by such
Subsidiary is not at the time permitted by the terms of
any contractual obligation or requirement of law
applicable to such Subsidiary
	 	 	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	 	any restoration to income of any contingency reserve,
except to the extent that provision for such reserve
was made out of income accrued during such period
	 	 	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	 	any net gain attributable to the write-up of any asset
	 	 	 	 
	 
	 	 	 	 
	 	any net gain from the collection of the proceeds of
life insurance policies
	 	 	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	 	any net gain arising from the acquisition of any
securities, or the extinguishment of any Indebtedness,
of Holdings or any of their Subsidiaries
	 	 	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	 	in the case of a successor to Holdings or any of their
Subsidiaries by consolidation or merger or as a
transferee of its assets, any earnings of such
successor prior to such consolidation, merger or
transfer of assets
	 	 	 	 
	 
	 	 	
	 

12

 

	 	 	 	 	 	 	 
	 	any deferred credit representing the excess of equity
in any Subsidiary of Holdings at the date of
acquisition of such Subsidiary over the cost to
Holdings of the investment in such Subsidiary
	 	 	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	Consolidated Net Income
	 	$	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	EBITDA is defined as follows:
	 	 	 	 
	 
	 	 	 	 
	Consolidated Net Income (from above)
	 	$	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	Less: (in each case to the extent included in the calculation
of Consolidated Net Income, but without duplication):
	 	 	 	 
	 
	 	 	 	 
	 	income tax credits
	 	 	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	 	interest income
	 	 	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	 	gain from extraordinary items (net of loss from
extraordinary items)
	 	 	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	 	any aggregate net gain (but not any aggregate net loss)
arising from the sale, exchange or other disposition of
capital assets (including any fixed assets, whether
tangible or intangible, all inventory sold in
conjunction with the disposition of fixed assets and
all securities)
	 	 	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	 	any other non-cash gains
	 	 	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	 	expenditures pursuant to the last sentence of Section
4.9 of the Credit Agreement applicable to, but not
included on, the Pro Forma, including expenditures made
in connection with Related Transactions and payment of
liabilities on the Closing Date
	 	 	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	Plus: (in each case to the extent deducted in the calculation
of Consolidated Net Income, but without duplication):
	 	 	 	 
	 
	 	 	 	 
	 	any provision for income taxes (calculated as provided
in Section 4.4 of this Exhibit)
	 	 	 	 
	 
	 	 	
	 

13

 

	 	 	 	 	 	 	 
	 	Interest expense (whether cash or non-cash)
deducted in the determination of Consolidated Net
Income, including interest expense with respect
to any Funded Debt and interest expense that has
been capitalized
	 	 	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	 	depreciation and amortization
	 	 	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	 	amortized debt discount (but in the case of
amortization and expenses of Related Transactions, only
to the extent included in the Pro Forma)
	 	 	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	 	any deduction as the result of any grant to any members
of the management of Holdings or any of their
Subsidiaries of any Stock
	 	 	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	 	expenses of the Related Transactions acceptable to
Agent, provided that such expenses were included in the
Pro Forma, or disclosed in any notes thereto, and are
deducted from Net Income (other than as amortization
expenses)
	 	 	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	 	 	when this certificate is delivered with respect
to the quarter ended March 31, 2003, June 30,
2003 or September 30, 2003 permitted add-backs
relating to Gibson Expense, Resin Savings and Rio
Grande in the amount set forth below for such
quarter	 	 	 	 
	 
	 	 	 	 
	 	 	March 31, 2003
	 	$	3,840,123	 
	 
	 	 	 	 
	 	 	June 30, 2003
	 	$	2,298,721	 
	 
	 	 	 	 
	 	 	September 30, 2003
	 	$	920,242	 
	 
	 	 	 	 
	EBITDA
	 	$	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	Required EBITDA
	 	$	 	 
	 
	 	 	
	 
	 
	 	 	 	 
	In Compliance
	 	Yes/No

14<PAGE>
                                                                  EXHIBIT 10.239

                                                                     Page 1 of 1

                                 LEASE ADDENDUM
                                     NO. 2
                                       TO
                             OFFICE BUILDING LEASE

This lease addendum constitutes an addendum to that certain office Building
Lease (the "Agreement") dated April 10, 2000, including all exhibits and prior
addenda between Dixie Sun Ventures, LLC, a Utah Limited Liability Company, as
"Lessor", and Meadow Valley Contractors, Inc., a Nevada Corporation, as
"Lessee", for the property designated as Building 2, located at 2250 West Center
Street Springville Utah 84663.

The following terms are hereby incorporated as part of the Agreement, and to
the extent that they modify or conflict with any provisions of the same, these
terms shall control. All other terms and conditions shall remain the same.

52.  EXERCISE OPTION TO EXTEND
     As referenced in Section 41. of the Agreement, Lessee and Lessor have
hereby negotiated to extend the term of the lease period by an additional five
(5) years. This lease extension is subject to the following modifications.

53.  FLOOR PLAN CHANGE
     In reference to Section 15.(a) of the Agreement, the new floor plan
attached hereto as Exhibit "D" shall henceforth supersede and take the place of
the floor plan referenced as Exhibit "B" attached to the original Agreement.

54.  SPACE REDUCTION & AMENDED ADDRESS
     In reference to Section 2. of the Agreement the "Premises" shall decrease
in size to approximately 2000 square feet, which shall be exclusively located
on the second floor. The address shall be amended to 2250 West Center Street,
Bldg. 2, Suite B Springville, Utah 84663.

55.  UTILITIES & SHARED FACILITIES
     In reference to Section 18. of the Agreement, utilities shall be prorated
according to square footage between the Lessee and the first floor tenant. As
the first floor entry and rest-rooms shall be shared by Lessee and the first
floor tenant, they shall be considered "shared facilities" and maintained by
both Lessee and the first floor tenant. Lessee shall maintain the shared
facilities when the first floor is not occupied.

56.  PREMISES IMPROVEMENTS
     In reference to Section 15.(a) of the Agreement, the Premises shall be
improved by Lessor in accordance with the floor plan attached hereto as Exhibit
"D". Said improvements are estimated to be completed on or before June 1, 2003.

57.  AMENDED RENT SCHEDULE
     In reference to Section 5.(b) of the Agreement, the monthly rent shall be
amended to reflect the reduced square footage and improvements. The amended
rent schedule listed below shall supersede and amend the previous rent schedule
referenced in Section 5.(b) of the Agreement.
     YEAR #4        $1,950.00 (commencing May 1, 2003)
     YEAR #5        $2,047.00
     YEAR #6        $2,150.00
     YEAR #7        $2,257.00
     YEAR #8        $2,370.00 (ending April 30, 2008)

58.  SECOND OPTION TO EXTEND
     Provided the Lessee is not in default in any of the terms and conditions
of the Agreement and/or it's Addenda, Lessor shall grant Lessee a "Second
Option To Extend" the lease term for a period of five (5) years beyond the
first extension period which ends April 30, 2008, provided Lessee notifies
Lessor in writing of it's intent to exercise the second option on or before
March 1, 2008. The second extension period rental rate and annual cost of
living adjustment shall continue as set forth in Section 57. above and Section
6. of the Agreement.

59.  LEASE ADDENDUM NO. 2 ACCEPTANCE
     In accordance with Section 44. of the Agreement this Lease Addendum No. 2
is signed and accepted by both Lessee and Lessor on this 9th day April, 2003.

LESSOR:                                      LESSEE:
Dixie Sun Ventures, LLC                      Meadow Valley Contractors, Inc.

     /s/ Bradley W. Wilkinson                    /s/ Alan Terril
By: _____________________________            By: _______________________________
    Bradley W. Wilkinson, Manager                Alan Terril, Vice President

         /s/ Bailey Butters                           /s/ Brandon Hartman
WITNESS:_________________________            WITNESS:___________________________

Print:  Bailey Butters                       Print:   Brandon Hartman

                                       1

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