Construction Line Of Credit Agreement 03/13/96

CONSTRUCTION LINE OF CREDIT LOAN AGREEMENT


BY AND BETWEEN


THE ADLER COMPANIES, INC., a Florida corporation


AND


BANK UNITED OF TEXAS FSB,
a federal savings bank


Dated


March 13, 1996


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TABLE OF CONTENTS


Page


1. DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 Advance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 Approved Subdivision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.3 Business Day . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.4 Construction Advance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.5 Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.6 Customary Complying Substance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.7 Developed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.8 Draw Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.9 Environmental Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.10 Final Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.11 Financed Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.12 Financing Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.13 Guarantor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.14 Hazardous Substance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.15 Improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.16 Inspector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.17 Loan Requisition Affidavit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.18 Loan Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.19 Lot(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.20 Lot Advance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.21 Maturity Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.22 Model Unit(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.23 Mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.24 Note . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.25 Sale Contract(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.26 Scattered Lots . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.27 Security Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.28 Sold Units(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.29 Spec Unit(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.30 Title Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.31 Unit(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.32 Unused Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4


2. THE LOAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.1 Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.2 Advances for Acquisition of Scattered Lots . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.3 Advances for Construction of Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.4 Additional Limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.5 The Loan Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.6 Payment of the Note . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.7 Loan Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5


3. CONSTRUCTION OF IMPROVEMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.1 Commencement and Completion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.2 Compliance with and Changes to the Final Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.3 Right to Lender to Inspect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6


4. CONDITIONS TO LENDER'S OBLIGATION TO FUND THE LOAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
4.1 Title Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
4.2 Survey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
4.3 Title Company's Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
4.4 Note and Guaranty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
4.5 Mortgage Security Agreement and other Loan Documents . . . . . . . . . . . . . . . . . . . . . . . . . 8


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4.6 Affidavits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
4.7 Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
4.7.1 Public Liability and Worker's Compensation Insurance . . . . . . . . . . . . . . . . . . . . 8
4.7.2 Builder's Risk and Hazard Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
4.7.3 Flood Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
4.7.4 Other Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
4.8 Soil Test and Hazardous Waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
4.9 Appraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
4.10 Public Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
4.11 Corporate Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
4.12 Opinion of Borrower's Counsel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
4.13 Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4.14 Sales Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4.15 Design Review and Cost Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4.16 Soil Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.17 Notice of Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.18 Contracts and Permits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.19 Contracts and Subcontractors Statements: and Release of Lien . . . . . . . . . . . . . . . . . . . . 12
4.20 Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.21 Foundation and Form Surveys . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.22 Other Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4.23 Representations and Warranties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4.24 No Event of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13


5. REQUESTS FOR ADVANCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13


6. RIGHT TO WITHHOLD FUNDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14


7. PAYMENT OF ADVANCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14


8. FINAL ADVANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14


9. EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15


10. WARRANTIES AND REPRESENTATIONS OF BORROWER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
10.1 Organization Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
10.2 Construction and Compliance with Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
10.3 Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
10.4 Authority to Enter into Loan Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
10.5 Validity of Loan Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
10.6 Priority of Lien on Personalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
10.7 Conflicting Transactions of Borrower . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
10.8 Pending Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
10.9 Availability of Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
10.10 Condition of Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
10.11 Availability of Roads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
10.12 Environmental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
10.13 No Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18


11. ADDITIONAL COVENANTS OF BORROWER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
11.1 Construction Liens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
11.2 No Transfer, Subordinate Mortgage Financing or other Encumbrance of
Financed Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
11.3 Compliance with Restrictions and Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
11.4 Brokerage Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
11.5 Title to Personalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
11.6 Correction of Defects and Satisfaction of Conditions . . . . . . . . . . . . . . . . . . . . . . . 19
11.7 Financial Statements and Reporting Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . 19
11.8 Borrower to Maintain Bookkeeping System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20


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11.9 Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
11.10 Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
11.11 Indebtedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
11.12 Further Assurances and Preservation of Security . . . . . . . . . . . . . . . . . . . . . . . . . 21
11.13 Utilization of Loan Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
11.14 No Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
11.15 Sales Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
11.16 Environmental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
11.17 Indemnification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
11.18 Survival of Indemnity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
11.19 Financial Covenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
11.20 Actual Construction Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
11.21 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
11.22 Third-Party Defaults . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
11.23 Change of Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
12. DEFAULT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
12.1 Failure to Satisfy Conditions to an Advance . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
12.2 Bankruptcy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
12.3 Improper Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
12.4 Breach of Covenants, Warranties and Representations . . . . . . . . . . . . . . . . . . . . . . . 24
12.5 Material Adverse Change of Borrower . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
13. REMEDIES OF LENDER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24


14. RELEASES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25


15. GENERAL TERMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
15.1 Rights of Third Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
15.2 Borrower is not Lender's Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
15.3 Lender Not Liable for Damage or Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
15.4 Lender Not Obligated to Insure Proper Disbursement of Funds to Third Parties . . . . . . . . . . . 26
15.5 Indemnification from Third Party Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
15.6 Rights of Subcontractors, Laborers and Materialmen . . . . . . . . . . . . . . . . . . . . . . . . 26
15.7 Evidence of Satisfaction of Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
15.8 Headings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
15.9 Invalid Provisions to Affect No Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
15.10 Application of Interest to Reduce Principal Sums . . . . . . . . . . . . . . . . . . . . . . . . . 27
15.11 Governing Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
15.12 Number and Gender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
15.13 Extraneous Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
15.14 Waiver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
15.15 Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
15.16 Successors and Assigns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
15.17 Time is of the Essence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
15.18 Attorney's Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
16. ARBITRATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28


17. WAIVER OF JURY TRIAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29


EXHIBITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32


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CONSTRUCTION LINE OF CREDIT LOAN AGREEMENT


THIS CONSTRUCTION LINE OF CREDIT LOAN AGREEMENT (the "Agreement") is made and entered into as of the 13th day of March, 1996, by and between THE ADLER COMPANIES, INC., a Florida corporation with an address at 2601 South Bayshore Drive, Coconut Grove, Florida 33133 ("Borrower"); and BANK UNITED OF TEXAS FSB, a federal savings bank, with an address at 3200 Southwest Freeway, Suite 2000, Houston, Texas 77027 ("Lender").


RECITALS


WHEREAS, Borrower has applied to Lender for a revolving line of credit loan (the "Loan") in an amount not to exceed the principal sum of Ten Million Dollars ($10,000,000.00) outstanding at any time, the proceeds of which shall be used (i) to finance the construction of Model Units, Sold Units and Unsold Units in Parcel "B" of the Windsor Palms Subdivision, as more particularly described on Exhibit "A" attached hereto and made a part hereof and (ii) to acquire and construct Model Units, Sold Units and Unsold Units on Scattered Lots as may be approved by the Lender hereunder from time to time, all in accordance with certain plans and specifications prepared or to be prepared by or on behalf of Borrower and acceptable to Lender in all respects;


WHEREAS, Borrower and Lender have negotiated, and desire to enter into, this Agreement to set forth the terms and conditions of the disbursement of the Loan;


NOW, THEREFORE, in consideration of the premises, and of the mutual covenants and agreements set forth below, Borrower and Lender agree as follows:


1. DEFINITIONS. As used in this Agreement the terms listed below shall have the following meanings unless otherwise required by the context:


1.1 Advance. An advance of loan proceeds by the Lender in accordance with this Agreement.


1.2 Approved Subdivision. Residential subdivision developments which Lender may approve in writing from time to time in its sole and absolute discretion, including, without limitation, Parcel "B" of the Windsor Palm Subdivision.


1.3 Business Day. Each day, other than a Saturday, Sunday, national holiday or other day when Lender's offices or branch banking facilities are not open for business to the general public.


1.4 Construction Advance. A disbursement by Lender of a portion of the proceeds of the Loan for Costs incurred in connection with the construction of a Unit.


1.5 Costs. The actual cost of all labor, materials, services, including, without limitation, architectural and engineering services, and other work to be performed and costs to be incurred in connection with the construction and completion of the Improvements financed hereunder from time to time, in accordance with the Final Plans and the terms and conditions of this Agreement.


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1.6 Customary Complying Substance. Any customary Hazardous Substance which is necessary to the business operations of Borrower at the Financed Property and which is manufactured, produced, distributed, used, treated, transported, stored, released, disposed of or otherwise handled in compliance with all applicable Environmental Laws.


1.7 Developed. Improved with all necessary roadway, drainage, utility and other infrastructure, and ready to be improved with a Unit.


1.8 Draw Schedule. The draw schedule attached hereto as Exhibit "B".


1.9 Environmental Laws. All existing and future federal, state and local laws, statutes, ordinances, rules, and regulations pertaining to health, industrial hygiene, pollution or the environment, including, without limitation: (i) the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Section 9601 et seq.; (ii) the Resource Conservation and Recovery Act of 1976, 42 U.S.C. Section 6901 et seq.; (iii) the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801 et seq.; (iv) the Pollution Spill Prevention and Control Act (Chapter 376 of the Florida Statutes), (v) the Florida Air and Water Pollution Control Act, the Florida Resource Recovery and Management Act and other Acts included within Chapter 403 of the Florida Statutes, and (vi) all other laws relating to Pollution or the protection of the environment, including laws relating to emissions, discharges, releases or threatened releases of pollutants, contaminants, chemicals, or industrial, toxic or hazardous substances or wastes into the environment (including, without limitation, ambient air, surface water, groundwater, or land), or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling of pollutants, contaminants, chemicals, or industrial, toxic or hazardous substances or wastes.


1.10 Final Plans. The plans and specifications for the construction of the Improvements, in each case as prepared by or on behalf of Borrower and reviewed and approved in writing by Lender, together with all amendments and modifications thereto as approved by Lender.


1.11 Financed Property. The land and all of the Improvements thereon which are to any extent and at any time financed under this Agreement.


1.12 Financing Statements. One or more financing statements from the Borrower to Lender to perfect Lender's security interest in the personal property described in the Mortgage and Security Agreement.


1.13 Guarantor. NHC Holdings Corp., a Nevada corporation.


1.14 Hazardous Substance. Asbestos, polychlorinated biphenyls, and petroleum products, and any other substance(s), material(s) and waste(s) now or hereafter regulated under any Environmental Laws, including, without limitation, any "hazardous substance(s)", "hazardous material(s)", "toxic substance(s), "solid waste(s)", "waste(s)", "hazardous waste(s)", "pollutant(s)", or "pollution", as defined in any Environmental Laws; and those substances listed in the United States Department of Transportation Table (49 CFR 172.101 and amendments thereto) or by the Environmental Protection Agency (40 CFR Part 302 and amendments thereto) as hazardous substances.


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1.15 Improvements. All work accomplished in accordance with the Final Plans, which shall consist of all work necessary to construct the residential dwelling Units and other related improvements to a Lot.


1.16 Inspector. Any inspecting engineer, architect or other consultant appointed or employed by Lender from time to time, the costs of which shall be paid by the Borrower.


1.17 Loan Requisition Affidavit. An affidavit substantially in the form of Exhibit "C", attached hereto, sworn to and duly executed by an authorized officer of Borrower.


1.18 Loan Documents. This Agreement, the Note, the Guaranty, the Mortgage, the Security Agreement, the Financing Statements, and each of the other documents or instruments now or hereafter evidencing or securing the payment or performance of any of the Loan obligations of Borrower. All Loan Documents shall be satisfactory to Lender in form and in substance.


1.19 Lot(s). A Lot, as shown on a recorded Plat of a Developed subdivision, on which a Unit shall be constructed. To constitute a Lot, the platted subdivision containing the Lot must be fully Developed and a building permit for the construction of a Unit on the Lot must be capable of being immediately obtained. Lots do not include raw or partially developed land.


1.20 Lot Advance. A disbursement by Lender of a portion of the proceeds of the Loan for acquisition of Scattered Lots in Approved Subdivisions.


1.21 Maturity Date. April 1, 1997.


1.22 Model Unit(s). A Unit used to display or demonstrate Units to potential buyers of Lots and Improvements.


1.23 Mortgage. One or more Mortgage and Security Agreements from Borrower to Lender, securing the Loan and granting to Lender a valid first mortgage lien on, inter alia, the Financed Property.


1.24 Note. That certain promissory note of even date herewith made by the Borrower payable to the order of the Lender in the principal amount of Ten Million Dollars ($10,000,000.00), evidencing the Loan.


1.25 Sale Contract(s). A binding arm-length written contract for sale and purchase between Borrower as seller and a bona fide buyer, free from defaults, pursuant to which the Borrower shall sell a Unit or Units to such buyer and such buyer shall be obligated to purchase such Unit or Units from the Borrower.


1.26 Scattered Lots. A Developed Lot in an Approved Subdivision other than Parcel "B" of the Windsor Palms Subdivision.


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