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Similar provisions covered the disbursement of operating funds
for 1981-83. The 1980 credit arrangement remained in effect from
May 2, 1980, through June 1983.
White Tail's business was unprofitable,5 and, in December
1980, Mr. Esposito requested that John Hancock modify the terms
of the 1980 credit arrangement in order to prevent a default. On
December 24, 1980, John Hancock mailed a Letter of Agreement
(Letter Agreement) to White Tail c/o Mr. Esposito. The Letter
Agreement states:
Gentlemen:
Reference is made to the enclosed Vote #3, Page Three
approved December 23, 1980 by our Agricultural
Investment Committee, and approved today by our
Committee of Finance, in which vote we have authorized
the Modification of the legal papers evidencing and
securing the above referenced loan.
Said Modification will capitalize certain interest due
from you on January 1, 1981 and will defer certain
principal due from you on the same date, all as set
forth in said vote. Said Modification will further
increase John Hancock's participation in the property's
defined Operating Income and in the Security's
Appreciation, also all as set forth in said enclosed
Vote.
* * * * * * *
You have asked us to enter into this Letter of
Agreement with you this week, in advance of our
referrel [sic] to counsel and his preparation of the
definitive documentation, in order to prevent a default
in your payment due January 1, 1981.
5See supra p. 4.
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