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86-- 105247
<br />Promissory Note, Second Guarantee, Readvanced Loan Documents, the Second
<br />` Amendment to Construction Loan Agreement; Third Guarantee; Fourth
<br />Guarantee; and Assignment of Leases; and
<br />WHEREAS, this Agreement modifies the Deed of Trust, Original Pro-
<br />missory Note, Second Promissory Note, and other Loan Documents as defined
<br />herein.
<br />NOW, THEREFORE, Lender and Borrower agree as follows:
<br />1. Deed of Trust. The term "Trustor" as defined in the Deed of
<br />Trust, as modified, is hereby modified to include Borrower, Deveo Inc.,
<br />Dean E. Arter and Carol E. Arter.
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<br />2. New Definition of Loan Documents. This Agreement, Second
<br />Amendment to Construction Loan Agreement, Third Guarantee, Fourth
<br />Guarantee, Parking Lot Trust Deed, Lower Level Trust Deed and Assigment
<br />of Leases are hereby included in the definition of "Loan Documents" as that
<br />term is defined in the Original Loan Agreement, Original Promissory Note,
<br />Deed of Trust, Original Guarantee, Original Loan Documents, First Amend -
<br />ment to Construction Loan Agreement, Second Promissory Note, Second
<br />Guarantee, Readvanced Loan Documents, Second Amendment to Construction
<br />Loan Agreement, Third Guarantee, Fourth Guarantee, and Assignment of
<br />Leases.
<br />3. Legal Description. The Borrower warrants and represents that it is
<br />the owner of only the The Yancey condominium units defuied in Exhibit "A -1"
<br />which is attached hereto and incorporated herein by this reference.
<br />4. Ori 'nal Promissory Note. The Original Promissory Note is a valid
<br />subsisting obligation of the Borrower with an unpaid principal balance and
<br />accrued interest as of this date of $433,038.40.
<br />5. Second Promissory Note. The Second Promissory Note is a valid
<br />subsisting obligation o the Borrower with an unpaid principal balance and
<br />accrued interest as of this date of $828,622.22.
<br />6. Modification of Face Amount of Original Promissory Note. Lender
<br />and Borrower hereby modify the Original Promissory Note by decreasing the ;
<br />face amount of the Original Promissory Note from $2,650,000 to $445,572.40.
<br />7. Defenses. Arter has no defenses or offsets against the payment of
<br />principal or interest of the unpaid balance as set forth in paragraphs 4, 5
<br />and 6 above.
<br />8. Mat�urity_D_at�e. The maturity dates of the Original Promissory Note
<br />and Second Promissory Note are extended until December 31, 1986 with rate
<br />and payment of interest on the extended balance computed according to the
<br />terms and conditions of the Original Promissory Note and Second Promissory
<br />Note.
<br />9. Reaffirmation. Arter reaffirm, represent and warrant (which
<br />reaffirmation, representation and warranties shall survive the termination of
<br />the Loan Documents and the repayment of any loans made pursuant thereto)
<br />the warranties, representations, covenants, terms and conditions as contained
<br />in the Loan Documents, as modified and defined herein. Such reaffirmation,
<br />representation and warranties shall not be construed to be a waiver by
<br />Lender of any possible defaults or breaches by Borrower under the Loan
<br />Documents. Borrower's request for disbursements and advancements under
<br />the Original Promissory Note or Second Promissory Note or any other Note
<br />shall be a reaffirmation of the warranties, covenants, terms and conditions as
<br />contained in the Loan Documents.
<br />10. Financial Statements. All previously submitted financial statements
<br />to the Lender are true, complete and accurate as of the date they are signed
<br />and Borrower agrees that if any change occurs that materially reduces the
<br />Borrower's means and abilities to pay all claims or demands against that
<br />particular Borrower, that Borrower will immediately notify the Lender in
<br />writing; and unless so notified, Lender may continue to rely upon the
<br />financial statements as a true, complete and accurate statement of the
<br />Borrower's financial condition. *�
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