ID NO. 2529 EXHIBIT 10.2
AG CAPITAL COMPANY
CREDIT AGREEMENT MODIFICATION
FARGO, NORTH DAKOTA
JUNE 1, 2000
The Credit Agreement made and entered into as of June 1, 1999, by and
among RDO MATERIAL HANDLING CO. ("BORROWER"), and AG CAPITAL COMPANY ("Agent"),
is hereby modified as follows:
Section one (1), DEFINITIONS, page 3, of the Credit Agreement, shall be
modified as follows:
"MATURITY" OF THE SUBJECT NOTE(S) MEANS THE EARLIER OF (a) THE DATE ON
WHICH THE SUBJECT NOTE(S) BECOMES DUE AND PAYABLE UPON THE OCCURRENCE
OF AN EVENT OF DEFAULT; OR (b) DECEMBER 1, 2000.
Section one (1), DEFINITIONS, page 4, of the Credit Agreement, shall be
modified as follows:
"TERMINATION DATE" MEANS THE EARLIER OF (a) DECEMBER 1, 2000; OR (b)
THE DATE UPON WHICH THE OBLIGATION OF THE LENDER TO MAKE ADVANCES IS
TERMINATED PURSUANT TO SECTION 2.7 OR SECTION 3.7.
Section one (1), DEFINITIONS, page 1, of the Credit Agreement, shall be
modified as follows:
"BORROWING BASE" MEANS, AT ANY TIME, THE LESSER OF (a) $5,000,000 OR
(b) THE SUM OF (i) EIGHTY FIVE PERCENT (85%) OF ACCEPTABLE ACCOUNTS
RECEIVABLE; (ii) NINETY PERCENT (90%) OF NEW WHOLEGOODS INVENTORY, NET
OF UNPAID ACCOUNTS PAYABLE ON SUCH INVENTORIES; (iii) SIXTY-FIVE
PERCENT (65%) OF USED WHOLEGOODS AND PARTS INVENTORY, NET OF UNPAID
ACCOUNTS PAYABLE ON SUCH INVENTORIES, ALL AS DETERMINED IN ACCORDANCE
WITH GAAP.
Section two (2), THE SEASONAL LOAN, page 4, of the Credit Agreement,
shall be modified as follows:
2.1 COMMITMENT FOR SEASONAL LOAN. SUBJECT TO THE CONDITIONS OF
LENDING SET FORTH IN SECTION 4 HEREOF, THE LENDER AGREES TO
MAKE ADVANCES TO THE BORROWER FROM TIME TO TIME FROM THE DATE
OF THIS AGREEMENT THROUGH THE TERMINATION DATE, PROVIDED,
HOWEVER, THAT THE LENDER SHALL NOT BE OBLIGATED TO MAKE ANY
ADVANCE, IF AFTER GIVING EFFECT TO SUCH ADVANCE, THE AGGREGATE
OUTSTANDING PRINCIPAL AMOUNT OF ALL ADVANCES WOULD EXCEED THE
BORROWING BASE. WITHIN THE LIMITS SET FORTH ABOVE, THE
BORROWER MAY BORROW, REPAY, AND REBORROW AMOUNTS UNDER THE
SEASONAL NOTE.
Except as expressly modified by the terms of this Credit Agreement
Modification, all of the terms and conditions of the Credit Agreement shall
remain in full force and effect.
1
IN WITNESS WHEREOF, the parties have executed this agreement this _1_
day of June, 2000.
RDO MATERIAL HANDLING CO.
A Minnesota corporation
By: /s/TKE
------------------------------
Xxxxxx X. Xxxxx
Its: Chief Financial Officer
AG CAPITAL COMPANY
A Delaware corporation
By: /S/Xxxx X. Xxxxx
------------------------------
Xxxx X. Xxxxx
Its: Loan Officer
2
