Document:

EX-4.(G) SECOND AMENDMENT TO CREDIT AGREEMENT

 

Exhibit 4(g)

SECOND AMENDMENT TO CREDIT AGREEMENT 

AND

CONSENT TO EXTENSION 

          THIS SECOND AMENDMENT TO CREDIT AGREEMENT AND CONSENT TO EXTENSION (“Second Amendment”),
dated as of the 28 day of August, 2006, by and among AVATAR PROPERTIES INC., a Florida corporation
(“Borrower”), joined by AVATAR HOLDINGS INC., a Delaware corporation (“Guarantor”) and WACHOVIA
BANK, NATIONAL ASSOCIATION, in its capacity as administrative agent acting on behalf of the Lenders
(“Agent”). This Second Amendment shall become effective as of the date hereof.

R E C I T A L S:

          WHEREAS, on September 20, 2005, Borrower and Guarantor entered into a Credit Agreement with
the Lenders, the Arranger and the other lenders from time to time party thereto, evidencing a
senior unsecured revolving credit facility which, as of the date of execution thereof, had a
maximum outstanding principal balance of $100,000,000 (as amended by the First Amendment to Credit
Agreement dated as of May 25, 2006, the “Credit Agreement”), and which was subsequently increased
to a maximum outstanding principal balance of $125,000,000 pursuant to that certain Commitment and
Acceptance dated as of October 21, 2005; and

          WHEREAS, in accordance with Section 2.01(i) of the Credit Agreement, Borrower has made an
Extension Request to the Agent to obtain an extension of the Maturity Date of the Loan to September
20, 2010;

          WHEREAS, Borrower, Guarantor and Agent on behalf of the Lenders intend to enter into this
Second Amendment in order to (i) set forth modified terms and conditions of the Credit Agreement
and (ii) consent to and approve the Extension Request;

          NOW THEREFORE, in consideration of the sum of TEN DOLLARS ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, as well as the mutual
covenants herein contained, the parties hereto agree as follows:

          1. RECITALS. The above recitals are true and correct and are incorporated herein by
this reference.

          2. CAPITALIZED TERMS. Capitalized terms not defined herein shall have the meaning
ascribed to them in the Credit Agreement.

          3. REPRESENTATIONS; REAFFIRMATION. Borrower and Guarantor each represent and warrant
that, as of the date hereof and after giving effect to this Second Amendment: (a) no event or
condition shall have occurred and then be continuing which constitutes a Default or Event of
Default; (b) the representations and warranties contained in Article 4 of the Credit Agreement are
true and correct in all material respects (except to the extent any such representation or warranty
is stated to relate solely to an earlier date); and (c) Borrower has no offsets, defenses or
counterclaims as to the Facility extended by Lenders to Borrower, the Loan Documents or the
indebtedness evidenced thereby. Borrower and Guarantor hereby reaffirm as of the date hereof all
affirmative covenants and negative covenants contained in the Credit Agreement as if more fully set
forth herein.

          4. AMENDMENTS.

               Notwithstanding anything contained to the contrary in the Credit Agreement, the following
terms and conditions shall apply:

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     A. Each reference to “Section 2.01(j)” in the Credit Agreement shall be deemed deleted and
replaced with the words “Section 2.01(i)”.

     B. The word “four (4)” in the first line of the definition of Maturity Date shall be deemed
deleted and replaced with the word “five (5)”.

          5. CONSENT TO EXTENSION REQUEST; EXTENSION FEES.  In accordance with Section 2.01(i)
of the Credit Agreement, the Agent has obtained the consent of the Requisite Lenders to the
Borrower’s Extension Request to extend the Maturity Date to September 20, 2010, and Agent hereby
consents to and approves such Extension Request on behalf of the Requisite Lenders. Borrower shall
pay an extension fee to the Agent in an amount equal to 0.125% of the amount of the Loan Commitment
Amount, which Agent shall distribute to each Lender pro rata in accordance with such Lender’s
Commitment Percentage.

          6. EFFECT OF SECOND AMENDMENT. Except as modified by this Second Amendment, the
Credit Agreement remains in full force and effect. In the event of any conflict between this Second
Amendment and the Credit Agreement, the provisions and intent of this Second Amendment shall
control.

          6. COUNTERPARTS. This Second Amendment may be executed and delivered by one or more
of the parties hereto on any number of separate counterparts and all of such counterparts taken
together shall be deemed to constitute one and the same instrument.

          7. GOVERNING LAW. This Second Amendment shall be governed by the laws of
the State of Florida.

          8. WAIVER OF JURY TRIAL.

               EACH OF BORROWER AND GUARANTOR HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY AND
ALL RIGHT IT MAY HAVE TO A TRAIL BY JURY IN RESPECT OF ANY LITIGATION (INCLUDING, BUT NOT LIMITED
TO, ANY CLAIMS, CROSS-CLAIMS OR THIRD-PARTY CLAIMS) ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS SECOND AMENDMENT TO CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS
CONTEMPLATED HEREIN. EACH OF BORROWER AND GUARANTOR HEREBY CERTIFIES THAT NO REPRESENTATIVE OR
AGENT OF THE LENDERS, NOR THE LENDERS’ COUNSEL, HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE
LENDERS, OR THE AGENT ON BEHALF OF THE LENDERS, WOULD NOT, IN THE EVENT OF SUCH LITIGATION, SEEK TO
ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION. EACH OF BORROWER AND GUARANTOR ACKNOWLEDGES
THAT THE LENDERS HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, INTER ALIA, THE PROVISIONS OF
THIS PARAGRAPH.

[SIGNATURE PAGES TO FOLLOW]

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          IN WITNESS WHEREOF, the parties have duly executed this Second Amendment to Credit Agreement
and Consent to Extension on the day and year first above written.

BORROWER:

AVATAR PROPERTIES INC., a Florida corporation

	 	 	 	 	 
	 	 	 
	By:  	/s/ Dennis J. Getman
 	 
	 	Dennis J. Getman 	 
	 	Executive Vice President 	 
	 

JOINED IN BY GUARANTOR:

AVATAR HOLDINGS INC., a Delaware corporation

	 	 	 	 	 
	 	 	 
	By:  	/s/ Dennis J. Getman
 	 
	 	Dennis J. Getman 	 
	 	Executive Vice President 	 
	 

AGENT, on behalf of the Lenders:

WACHOVIA BANK, NATIONAL ASSOCIATION

	 	 	 	 	 
	 	 	 
	BY: 	 	      /s/ James D. Getman
 	 
	NAME: 	 	   James D. Davis 	 
	TITLE: 	 	  Vice President 	 
	 

3EX-4.(H) CONSENT AND WAIVER

 

Exhibit 4(h)

CONSENT AND WAIVER

          THIS CONSENT AND WAIVER (“Consent”), dated as of the 4 day of December, 2006, by and among
AVATAR PROPERTIES INC., a Florida corporation (“Borrower”), joined by AVATAR HOLDINGS INC., a
Delaware corporation (“Guarantor”) and WACHOVIA BANK, NATIONAL ASSOCIATION, in its capacity as
Lender and in its capacity as administrative agent (“Agent”), GUARANTY BANK, in its capacity as
Lender and FRANKLIN BANK, SSB, a Texas Savings Bank, in its capacity as Lender (each a “Lender” and
collectively, the “Lenders”). This Consent shall become effective as of the date hereof.

R E C I T A L S:

          WHEREAS, on September 20, 2005, Borrower and Guarantor entered into a Credit Agreement with
the Lenders, the Arranger and the other lenders from time to time party thereto, evidencing a
senior unsecured revolving credit facility which, as of the date of execution thereof, had a
maximum outstanding principal balance of $100,000,000 (as amended by the First Amendment to Credit
Agreement dated as of May 25, 2006, and as further amended by the Second Amendment to Credit
Agreement dated as of September 1, 2006, the “Credit Agreement”), and which was increased to a
maximum outstanding principal balance of $125,000,000 pursuant to that certain Commitment and
Acceptance dated as of October 21, 2005; and

          WHEREAS, in accordance with Section 10.02(b)(ii) of the Credit Agreement, Borrower has
requested a written consent from the Requisite Lenders approving a temporary waiver of the housing
inventory covenant set forth in Section 6.08 of the Credit Agreement;

          WHEREAS, Borrower, Guarantor and Lenders intend to enter into this Consent in order to
temporarily waive the housing inventory covenant set forth in Section 6.08 of the Credit Agreement;

          NOW THEREFORE, in consideration of the sum of TEN DOLLARS ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, as well as the mutual
covenants herein contained, the parties hereto agree as follows:

          1. RECITALS. The above recitals are true and correct and are incorporated herein by
this reference.

          2. CAPITALIZED TERMS. Capitalized terms not defined herein shall have the meaning
ascribed to them in the Credit Agreement.

          3. REPRESENTATIONS; REAFFIRMATION. Borrower and Guarantor each represent and warrant
that, as of the date hereof and after giving effect to this Consent: (a) no event or condition
shall have occurred and then be continuing which constitutes a Default or Event of Default; (b) the
representations and warranties contained in Article 4 of the Credit Agreement are true and correct
in all material respects (except to the extent any such representation or warranty is stated to
relate solely to an earlier date); and (c) Borrower has no offsets, defenses or counterclaims as to
the Facility extended by Lenders to Borrower, the Loan Documents or the indebtedness evidenced
thereby. After giving effect to this Consent, Borrower and Guarantor hereby reaffirm as of the date
hereof all affirmative covenants and negative covenants contained in the Credit Agreement as if
more fully set forth herein.

          4. CONSENT.  In accordance with Section 10.02(b)(ii) of the Credit Agreement, the
Requisite Lenders hereby temporarily waive the restriction set forth in Section 6.08 of the Credit
Agreement limiting the sum of the Speculative Units and the Model Units to an amount not to exceed
twenty-five percent (25%) of the aggregate number of unit sales, as measured during the last twelve
(12) month period at the end of each fiscal year. The Requisite Lenders hereby waive the
restriction contained in Section 6.08 of the Credit Agreement for

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the period commencing on October 1, 2006, extending through the last fiscal quarter of 2006 and the
fiscal year of 2007, and concluding on December 31, 2007. The twenty-five percent (25%)
restriction will be reinstated and become fully effective for the fiscal year commencing on January
1, 2008 and shall continue for each fiscal year thereafter until the end of the Term.

          6. EFFECT OF CONSENT. Except as modified by this Consent, the Credit Agreement
remains in full force and effect. In the event of any conflict between this Consent and the Credit
Agreement, the provisions and intent of this Consent shall control.

          6. COUNTERPARTS. This Consent may be executed and delivered by one or more of the
parties hereto on any number of separate counterparts and all of such counterparts taken together
shall be deemed to constitute one and the same instrument.

          7. GOVERNING LAW. This Consent shall be governed by the laws of the State
of Florida.

          8. WAIVER OF JURY TRIAL.

EACH OF BORROWER AND GUARANTOR HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY AND
ALL RIGHT IT MAY HAVE TO A TRAIL BY JURY IN RESPECT OF ANY LITIGATION (INCLUDING, BUT NOT LIMITED
TO, ANY CLAIMS, CROSS-CLAIMS OR THIRD-PARTY CLAIMS) ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS CONSENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED
HEREIN. EACH OF BORROWER AND GUARANTOR HEREBY CERTIFIES THAT NO REPRESENTATIVE OR AGENT OF THE
LENDERS, NOR THE LENDERS’ COUNSEL, HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE LENDERS, OR
THE AGENT ON BEHALF OF THE LENDERS, WOULD NOT, IN THE EVENT OF SUCH LITIGATION, SEEK TO ENFORCE
THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION. EACH OF BORROWER AND GUARANTOR ACKNOWLEDGES THAT THE
LENDERS HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, INTER ALIA, THE PROVISIONS OF THIS
PARAGRAPH.

[SIGNATURE PAGES TO FOLLOW]

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          IN WITNESS WHEREOF, the parties have duly executed this Consent on the day and year first
above written.

BORROWER:

AVATAR PROPERTIES INC., a Florida corporation

	 	 	 	 	 
	 	 	 
	By:  	/s/ Dennis J. Gertman
 	 
	 	Dennis J. Getman 	 
	 	Executive Vice President 	 
	 

JOINED IN BY GUARANTOR:

AVATAR HOLDINGS INC., a Delaware corporation

	 	 	 	 	 
	 	 	 
	By:  	/s/ Dennis J. Getman
 	 
	 	Dennis J. Getman 	 
	 	Executive Vice President 	 
	 

LENDERS:

WACHOVIA BANK, NATIONAL ASSOCIATION

	 	 	 	 	 
	 	 	 
	BY: 	 	          /s/ James D. Davis
 	 
	NAME: 	 	       James D. Davis 	 
	TITLE: 	 	      Vice President 	 
	 

GUARANTY BANK

	 	 	 	 	 
	 	 	 
	BY: 	 	       /s/ Atila Ali
 	 
	NAME: 	 	     Atila Ali 	 
	TITLE: 	 	    Vice President 	 
	 

FRANKLIN BANK, SSB, a Texas Savings Bank

	 	 	 	 	 
	 	 	 
	BY: 	 	       /s/ Lawrence Shields
 	 
	NAME: 	 	     Lawrence Shields 	 
	TITLE: 	 	Vice President 	 
	 

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