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HomeMy WebLinkAboutCity of Tamarac Resolution R-97-1951 1 July 16, 1997 - Temp. Reso. #7948 1 CITY OF TAMARAC, FLORIDA RESOLUTION NO. R-97- l 95' A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA, PROVIDING FOR THE ISSUANCE BY THE CITY OF TAMARAC OF NOT EXCEEDING $4,000,000 OF ITS INDUSTRIAL DEVELOPMENT REVENUE BONDS, SERIES 1997 (SUN BELT PRECISION PRODUCTS, INC. PROJECT), TO PAY THE COST OF CONSTRUCTING A MANUFACTURING FACILITY IN THE CITY OF TAMARAC; AUTHORIZING EXECUTION AND DELIVERY OF DOCUMENTS RELATING THERETO; PROVIDING FOR THE NEGOTIATED SALE OF THE BONDS; APPROVING USE OF A PRELIMINARY AND FINAL OFFICIAL STATEMENT IN CONNECTION WITH THE SALE OF THE BONDS; DESIGNATING THE INITIAL BOND TRUSTEE; MAKING CERTAIN OTHER COVENANTS AND AGREEMENTS IN CONNECTION WITH THE ISSUANCE OF THE BONDS; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND .PROVIDING FOR AN EFFECTIVE DATE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA AS FOLLOWS: Section 1. AUTHORITY FOR THIS RESOLUTION. This resolution is adopted pursuant to the provisions of Chapter 159, Part II of the Florida Statutes, as amended and other applicable provisions of law (the "Act") 1 July 16, 1997 - Temp. Reso. #7948 2 Section 2. FINDINGS. It is hereby ascertained, determined and declared as follows: A. The City of Tamarac, Florida (the "City") is authorized by the Act to make and execute financing agreements, contracts, deeds and other instruments necessary or convenient for the purpose of facilitating the financing of the acquisition, construction and equipping of projects as defined in the Act, including machinery, equipment, land, rights in land and other appurtenances and facilities related thereto, to the end that the City may be able to promote the economic growth of the State of Florida, increase opportunities for gainful employment and otherwise contribute to the welfare of the City and the State of Florida and its inhabitants, and to finance the cost of such projects by the issuance of its revenue bonds. B. The City, by resolution dated February 26, 1997, approved the execution of a Memorandum of Agreement with the Sun Belt Precision Products, Inc., a Florida corporation (the "Borrower") whereby the City agreed, subject to certain conditions and approvals, to issue its Industrial Development Revenue Bonds (Sunbelt Precision Products, Inc. Project), Series 1997 in an amount of up to $4,000.000.00 (the "Bonds") and to loan the proceeds of such bonds to the Borrower to pay the cost of constructing a manufacturing facility (the "Project") within the jurisdictional limits of the City. C. As required by the City, the Company has caused its corporate parent, Interplex Industries, Inc., to guaranty payment of the principal of and interest on the Bonds (the "Guaranty") D. The principal of and interest on the Bonds and all payments required under the documents relating thereto shall be payable solely from the proceeds derived by the City from the proceeds of the Guaranty and monies received pursuant to a Loan Agreement between the City and the Borrower (the "Loan Agreement"), The City shall never be required to (i) levy ad valorem taxes on any property within its territorial limits to pay the principal of a premium, if any, and interest on the Bonds or to make any other July 16, 1997 -Temp. Reso. #7948 3 payments relating to the Bonds or the Project, or (ii) pay the same from any funds of the City other than those derived by the City under the Loan Agreement and the Guaranty; and such Bonds shall not constitute a lien upon any property owned by or situated within the territorial limits of the City except the Project. E. The City held a public hearing with respect to the Bonds in accordance with the requirements of the Tax Equity and Fiscal Responsibility Act of 1984 on February 26, 1997 at which it received and considered comments from the citizens of the City. Section 3. FINANCING OF THE PROJECT AUTHORIZED. The financing of the cost of the Project in the manner provided in the Loan Agreement and the Indenture (hereinafter defined) is hereby authorized. Section 4. AUTHORIZATION OF BONDS. Obligations of the City to be known as "Industrial Development Revenue Bonds (Sun Belt Precision Products, Inc. Project), Series 1997" are hereby authorized to be issued in an aggregate principal amount of not exceeding Four Million Dollars ($4,000,000.00), in the form and manner described in the Indenture. The Bonds will be dated such date and mature in such years and amounts, will contain such redemption provisions, and will bear interest at such rates (not exceeding the maximum interest rate permitted by the Act or by other applicable provision of law), as provided in the Trust Indenture between the City and First Union National Bank, as trustee (the "Trustee") (the "Indenture"). Section 5. AUTHORIZATION OF EXECUTION AND DELIVERY OF INDENTURE. As security for the payment of the principal of and premium, if any, and interest on the Bonds, the Indenture, in substantially the form on file with the City Clerk as Exhibit "A", with such changes, alterations and corrections as may be approved by the Mayor, such approval to be presumed by his execution thereof, is hereby approved by the City, and the City hereby authorizes and directs the Mayor to execute, and the City Clerk to attest under the seal of the City, the Indenture and to deliver to the Trustee the Indenture, all of the provisions of which, when executed and delivered by the City as authorized herein and by 1 July 16, 1997 - Temp. Reso. #7948 4 the Trustee duly authorized, shall be deemed to be a part of this instrument as fully and to the same extent as if incorporated verbatim herein. The City does hereby provide in the Indenture the terms, conditions, covenants, rights, obligations, duties and agreements of the City, the Borrower and the Trustee to and for the benefit of the holders of the Bonds. Section 6. AUTHORIZATION OF EXECUTION AND DELIVERY OF LOAN AGREEMENT. The Loan Agreement, in substantially the form on file with the City Clerk as Exhibit "B", with such changes, alterations and corrections as may be approved by the Mayor, such approval to be presumed by his execution thereof, is hereby approved by the City, and the City hereby authorizes and directs the Mayor to execute, and the City Clerk to attest under the seal of the City, the Loan Agreement and to deliver to the Borrower the Loan Agreement, all of the provisions of which, when executed and delivered by the City as authorized herein and by the Borrower duly authorized, shall be deemed to be a part of this instrument as fully and to the same extent as if incorporated verbatim herein. Section 7. APPROVAL OF FORM OF GUARANTY. The form of the Guaranty issued by Interplex Industries, Inc. providing for payment of the principal of and interest on the Bonds (on file with the City Clerk as Exhibit "C), with such changes, alterations and corrections as may be approved by the Mayor, such approval to be presumed by his execution thereof, is hereby approved by the City, and the City hereby authorizes and directs the Mayor to execute, and the City Clerk to attest under the seal of the City, the Guaranty, all of the provisions of which, when executed and delivered by the City as authorized herein and by the Borrower duly authorized, shall be deemed to be a part of this instrument as fully and to the same extent as if incorporated verbatim herein. Section 8. APPROVAL OF BOND PURCHASE AGREEMENT FOR BONDS. The Bond Purchase Agreement, in substantially the form on file with the City Clerk as Exhibit "C", with such changes, alterations and corrections as may be approved by the Mayor, such approval to be presumed by his execution thereof, is hereby approved by the City, and the City hereby authorizes and directs the Mayor to execute, and the City Clerk to 11 July 16, 1997 - Temp. Reso. #7948 5 attest under the seal of the City, the Bond Purchase Agreement and to deliver to the Borrower and the Underwriter (hereinafter defined) the Bond Purchase Agreement, all of the provisions of which, when executed and delivered by the City as authorized herein and by the other parties thereto duly authorized, shall be deemed to be a part of this instrument as fully and to the same extent as if incorporated verbatim herein. Section 9. NEGOTIATED SALE NECESSARY. It is hereby found, ascertained, determined and declared by the City that a negotiated sale of the Bonds is in the best interest of the City and is found to be necessary on the basis of the following reasons as to which specific findings are hereby made: A. Industrial development revenue bonds are traditionally placed privately and consequently a competitive sale of the Bonds would in all probability not produce better terms than a negotiated sale. B. The Bonds are payable solely from the proceeds of the Loan Agreement and the Guaranty and, therefore, the City does not have a direct financial interest in the terms of sale. The Borrower has expressed its desire not to incur the risks and expenses attendant a public sale of the Bonds. Section 10. AWARD OF BONDS; APPROVAL OF PRELIMINARY AND FINAL OFFICIAL STATEMENT. The negotiated sale of the Bonds to Greenwich Partners, LLC (the "Underwriters") at the price set forth in the Bond Purchase Agreement is hereby authorized pursuant to Section 218.385, Florida Statutes, as amended. The use of a Preliminary Official Statement for the Bonds in substantially the form on file with the City Clerk as Exhibit "E" is hereby approved and ratified. The Preliminary Official Statement is hereby "deemed final' within the meaning of Section 240.15c2-12 of the General Rules and Regulations of the Securities and Exchange Acts of 1934. The use of a Final Official Statement for the Bonds in substantially the form of the Preliminary Official Statement, with appropriate information inserted, is hereby approved, and the Mayor is authorized and directed to execute the Final Official Statement. 1 July 16, 1997 -Temp. Reso. #7948 6 Section 11. TRUSTEE. First Union National Bank, a national banking association having trust powers, is hereby designated Trustee for the Bonds. Section 12. EXECUTION OF BONDS AND AUTHORIZATION OF ALL OTHER NECESSARY ACTION. The proper officers of the City are hereby authorized and directed to execute the Bonds when prepared and to deliver the same to the Trustee for authentication and delivery to the purchasers of the Bonds upon payment of the purchase price therefore. The Mayor, City Clerk, City Attorney, and Akerman, Senterfitt & Edison, P.A., as the City's Bond Counsel, are designated agents of the City in connection with the issuance and delivery of the Bonds, and are authorized and empowered, collectively or individually, to take all action and steps to execute and delivery any and all instruments, opinions, documents or contracts on behalf of the City which are necessary or desirable in connection with the execution and delivery of the Bonds and which are not inconsistent with the terms and provisions of this Resolution and other actions relating to the Bonds heretofore taken by the City. Section 13. NO PERSONAL LIABILITY. No covenant, stipulation, obligation or agreement herein contained or contained in the Loan Agreement, Indenture, Bond Purchase Agreement, Guaranty, the Official Statement or any other document executed and delivered in connection with the issuance of the Bonds (together, hereinafter referred to as the "Bond Documents") shall be deemed to be a covenant, stipulation, obligation or agreement of any officer, member, agent or employee of the City or its governing body in his individual capacity, and neither the members of the City Commission, the City nor any official executing the Bonds shall be liable personally thereon or be subject to any personal liability or accountability by reason of the issuance thereof. Section 14. NO THIRD PARTY BENEFICIARIES. Except as herein or in the Bond Documents otherwise expressly provided, nothing in this Resolution or in the Bond Documents, expressed or implied, is intended or shall be construed to confer upon any person, firm or corporation other than the City, the Borrower, the Underwriters, the holders I 71 L__ J July 16, 1997 -Temp. Reso. #7948 7 of the Bonds, and the Trustee, any right, remedy or claim, legal or equitable, under and by reason of this instrument or any provision thereof or of the Bond Documents. This Resolution and the Bond Documents intended to be for the sole and exclusive benefit of the City, the Bank, the Underwriters, the Borrower, the Trustee and the holders from time to time of the Bonds. Section 15. PREREQUISITES PERFORMED. All acts, conditions, and things relating to the passage of this resolution, to the issuance of the Bonds, and to the execution of the Bond Documents, required by the Constitution or laws of the State of Florida to happen, exist, and be performed precedent to and in the adoption hereof, and precedent to the issuance of the Bonds, and precedent to the execution and delivery of the Bond Documents, have happened, exist and have been performed as so required. Section 16. GENERAL AUTHORITY. The members of the Commission of the City and its officers, attorneys, engineers or other agents or employees are hereby authorized to do all acts and things required of them by this Resolution and the Bond Documents, or desirable or consistent with the requirements thereof, for the full, punctual and complete performance of all the terms, covenants and agreements contained in the Bonds, the Bond Documents and this Resolution. Section 17. SEVERABILITY OF INVALID PROVISIONS. If any one (1) or more of the covenants, agreement or provisions herein contained shall be held contrary to any express provisions of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separable from the remaining covenants, agreements or provisions and shall in no way affect the validity of any of the other provisions hereof. Section 18. REPEALING CLAUSE. All resolutions of the City or parts thereof in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. July 16, 1997 - Temp. Reso. #7948 8 1 Section 19. EFFECTIVE DATE. This resolution shall become effective upon signature by the Mayor or upon becoming effective without the Mayor's signature. PASSED, ADOPTED AND APPROVED this IZ3 day of , 1997. ATTEST: CAROL A. EVANS CITY CLERK I HEREBY CERTIFY that I have approved this RESOLUTION as to form. 1AS MITCHELL S. K A CITY ATTORNEY comm dev\c:\userdata\wpdata\res\7948reso\ps 1 t JOE SCHREIBER MAYOR RECORD OF 00 MAYOR -9 HREIB R DIST 1: COMM. McKA DIST 2: VIM MISHKIN DIST 3: COMM. SULTi DIST 4: - .COMM. ROBE. VOTE „�-9?-Ig6- • • • TRUST INDENTURE between CITY OF TAMARAC, FLORIDA and FIRST UNION NATIONAL BANK TRUSTEE Relating to $3,300,000 City of Tamarac, Florida Industrial Development Revenue Bonds Series 1997 (Sun Belt Precision Products, Inc., Project) Dated as of August 1, 1997 WPO:ITDICKSDN.TAMARAC-$UNBELTIINDENTURE. JU1y 15, 1997 4:56pm EXHIBIT "A” TEMP RESO *7948 TABLE OF CONTENTS Parties . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Recitals . . . . . . . . . . . . . . . . . . . . . . . . . 1 Granting Clauses . . . . . . . . . . . . . . . . . . . . . . . 3 ARTICLE I DEFINITIONS . . . . . . . . . . . . . . . . . 5 Section 101. Definitions . . . . . . . . . . . . . . . 5 Section 102. Use of Words . . . . . . . . . . . . . . 7 ARTICLE II THE BONDS . . . . . . . . . . . . . . . . . . 9 Section 201. Issuance of Bonds . . . . . . . . . . . . 9 Section 202. Details of Bonds . . . . . . . . . . . . 9 Section 203. Executicrl of Bonds . . . . . . . . . . . 9 Section 204. Authentication . . . . . . . . . . . . . 9 Section 205. Form of Bond . . . . . . . . . . . . . . 10 Section 206. Delivery of Bonds . . . . . . . . . . 10 Section 207. Mutilated, Destroyed or Lost Bonds 10 Section 208. Registration of Principal and Interest 10 Section 209. Payment on Saturday, Sunday or Holiday 11 Section 210. Interest Commencement Date . . . . . 11 Section 211. Cancellation . . . . . . . . . . . . . 11 Section 212. Temporary Bonds . . . . . . . . . . . . . 11 Section 213. Additional Bonds . . . . . . . . . . 12 Section 214. Book Entry Bonds and Agent Therefor. 12 Section 215. Issuer to Facilitate Use of Securities Depository . . . . . . . . . . . . . . . 14 ARTICLE III REDEMPTION OF BONDS BEFORE MATURITY . . . . . 15 Section 301. Redemption . . . . . . . . . . . . . . . 15 Section 302. Notice of Redemption . . . . . . . . . . 15 Section 303. Redemption Payments . . . . . . . . . . . 16 Section 304. Cancellation . . . . . . . . . . . . . . 16 ARTICLE IV GENERAL COVENANTS . . . . . . . . . . . . . . 17 Section 401. Payment of Principal and Interest . . . . 17 Section 402. Performance of Covenants . . . . . . . . 17 Section 403. Instruments of Further Assurance . . . . 17 Section 404. Recordation of Financing Statements . . . 18 Section 405. Books of Record and Account; Inspection 18 Section 406. List of Bondowners . . . . . . . . . . 18 Section 407. Lien of Trust Indenture; Enforcement of Obligations and Rights . . . . . . . . . 18 WPO:ITDICKSON.TAMARAC-SUNBELT]INDENTURE. July 15, 1997 4:56pm i Section 410. Covenants of Issuer Not to Take or Permit Actions or Conditions That Would Cause Interest to be Subject to Federal Income Taxation . . . . . . . . 18 Section 411. Continuing Disclosure . . . . . . . . . . 19 ARTICLE V REVENUE AND FUNDS . . . . . . . . . . . . . . 20 Section 501. Creation of Funds Section 502. . . . . . Use of Moneys in Bond Fund . . . 20 20 Section 503. Interest Account Section 504. . . . . . . • Bond Redemption Account . 21 Section 505. . . . . . • Non -presentment of Bonds • 21 Section 506. . . . • . • • Reserved. . 21 Section 507. . . . . . . . . • . . . Reserved. • 22 Section 508. . . . . . . . . . . . Reserved. 22 Section 509. . . . . . . . . . Fees, Charges and Expenses of Trustee 22 and Paying Agent .. . . . 22 Section 510. Moneys to be Held in Trust 22 Section 511. Refunds to Company . . . . . . . . . . . 22 ARTICLE VI CUSTODY AND APPLICATION OF PROCEEDS OF BONDS 24 Section 601. Disbursement of Proceeds; Issuance Costs •• 24 Section 602. Deposit intheLoan Account . . • , . 24 Section 603. • Disbursements from the Loan Account , 24 Section 604. Transfer to Bond Fund . . . . . . . . . . 24 ARTICLE VII INVESTMENTS . . . . . . . . . . . . . . . . . 26 Section 701. Investment of Moneys in Funds 26 Section 702. Arbitrage Requirements . . . . . . . . . 27 ARTICLE VIII POSSESSION, USE AND RELEASE OF MORTGAGED PROPERTY . . . . . . . . . . . . . . . . . . . 28 Section 801. The Company's Right to Possess, Use and Enjoy . . . . . . . . . . . . . . . . . . 28 ARTICLE IX DISCHARGE OF LIEN . . . . . . . . . . . . . 29 Section 901. Discharge of Lien . . . . . . . . . . . . 29 ARTICLE X DEFAULT PROVISIONS AND REMEDIES OF TRUSTEE AND BONDOWNERS . . . . . . . . . . . . . . . . 30 Section 1001. Events of Default . . . . . • • • 30 Section 1002. Acceleration Section 1003. . . . . . • Trustee's Right to Enter and Take Possession . . 30 . . . . . . . . . . . . . 30 WPO:(TDICKSON.TAMARAC-SUNBELT)INDENTVRE. July 15, 1997 4:56pm i j Section 1004. Other Remedies; Rights and Obligations with Reference to Remedies . 31 Section 1005. Right of Majority of Bondowners to Take Charge . . . . . . . . . . . . . . . . . 32 Section 1006. Appointment of Receiver . . . . . . . . . 32 Section 1007. Waiver by Issuer of Benefit of Laws and Rights of Appraisement and Redemption 32 Section 1009. Remedies Vested in Trustee . . . . . 34 Section 1010. Rights and Remedies of Bondowners . . 34 Section 1011. Termination of Proceedings . . . . . . . 35 Section 1012. Waivers of Events of Default . . . . . . 35 ARTICLE XI THE TRUSTEE . . . . . . . . . . . . . . . . 37 Section 1101. Acceptance of Trusts . . . . . . . . . . 37 Section 1102. Fees, Charges and Expenses of Trustee 39 Section 1103. Notice to Bondowners of Default . . . 40 Section 1104. Intervention by Trustee . . . . . . . . . 40 Section 1105. Successor Trustee . . . . . . . . . . . . 40 Section 1106. Resignation by Trustee . . . . . . . . . 41 Section 1107. Removal of Trustee . . . . . . . . . . . 41 Section 1108. Appointment of Successor Trustee; Temporary Trustee . . . . . . . . . . . . 41 Section 1109. Successor Trustee . . . . . . . . . . . . 41 Section 1110. Right of Trustee to Pay Taxes and Other Charges . . . . . . . . . . . . . . . . . 42 Section 1111. Trustee Protected in Relying Upon Resolutions, etc . . . . . . . . . . . . . 42 Section 1112. Trustee Which Has Resigned or Been Removed Ceases to be Paying Agent . . . . 42 Section 1113. Paying Agent's Fees and Charges . . . . . 42 Section 1114. Appointment of Co -Trustee or Separate Trustee . . . . . . . . . . . . . . . . . 43 ARTICLE XII SUPPLEMENTAL INDENTURES AND AMENDMENTS TO THE LOAN AGREEMENTS . . . . . . . . . . . . 45 Section 1201. Supplemental Indentures Not Requiring Consent of Bondowners . . . . 45 Section 1202. Supplemental Indentures Requiring Consent of Bondowners . . . . . . . , . . 45 Section 1203. Amendments to the Loan Agreement . . . . 46 Section 1204. Procedures for Amendments . . . . . . . . 46 Section 1205. Rights of Company . . . . . . . . . . . . 47 ARTICLE XIII MISCELLANEOUS . . . . . . . . . . . . . . . . 48 Section 1301. Consents, etc. of Bondowners . . . . . . 48 Section 1302. Limitation of Rights . . . . . . . . . . 48 Section 1303. Severability . . . . . . . . . . . . . . 48 Section 1304. Notice . . . . . . . . . . . . . . . . . 49 WPO:[TDICKSON.TAMARAC- SUNBELT) INDENTURE. July 15, 1997 4:56pm i i i • • � q�-i0;.� • • Section 1305. Florida Substantive Law Governs . . . . . 49 Section 1306. Uniform Commercial Code . . . . . . . 49 Section 1307. Counterparts . . . . . . . . . . . . . . 49 WPO:[TDICK5ON.TAMARAC-SUNHELTIINDENME. July 15, 1997 4:56pm iv TRUST INDENTURE 0 THIS TRUST INDENTURE executed as of August 1, 1997 by and between CITY OF TAMARAC, FLORIDA, a public body corporate and politic (the "Issuer"), duly existing under the laws of the State of Florida, as party of the first part, and FIRST UNION NATIONAL HANK (the "Trustee"), as party of the second part; W I T N E S S E T H: All terms used herein and not defined shall have the meaning given in Article I. WHEREAS, the Issuer is authorized under Chapter 159, Part II, Florida Statutes, and other applicable provisions of law (the "Act") to make and execute financing agreements, contracts, deeds and other instruments necessary or convenient for the purpose of facilitating the financing and refinancing of certain projects, including machinery, equipment, land, rights in land and other appurtenances and facilities related thereto, to the end that the Issuer may be able to promote the economic development of the State of Florida, increase opportunities for gainful employment and otherwise aid in improving the prosperity and welfare of said State and its inhabitants, and to provide such financing through the issuance of revenue bonds; and WHEREAS, the Issuer proposes to issue its $3,300,000 in principal amount of Industrial Development Revenue Bonds, Series 1997 (Sun Belt Precision Products, Inc. Project) (the "Bonds") pursuant to this Indenture to finance the acquisition, construction and equipping of a manufacturing facility located in Tamarac, Florida (the "Project") and to lend the proceeds of the sale of the Bonds to Sun Belt Precision Products, Inc., a Florida corporation ("the Company"), pursuant to a Loan Agreement (the "Agreement") of even date herewith between the Issuer and the Company; and WHEREAS, it has been determined that the estimated amount necessary to finance the cost of the acquisition, construction and equipping of the Project, including necessary expenses incidental to the issuance of the Bonds, will require the issuance, sale and delivery of Bonds in the aggregate principal amount of $3,300,000, as hereinafter provided; and WHEREAS, all things necessary to make the Bonds, when authenticated by the Trustee and issued as in this Trust Indenture provided, the valid, binding and legal obligations of the Issuer according to the import thereof, and to constitute this Trust Indenture a valid lien on the Mortgaged Property and a valid pledge of revenues to the payment of the principal of and WPO: (TDICKSON. TAMARAC- SUNBELT) INDM47URE. July 15, 1997 4:56pm 1 • 1J interest on the Bonds, in accordance with the creation, execution and delivery of this Indenture and the creation, execution and issuance of the Bonds, subject to the terms hereof, have in all respects been duly authorized; NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS, that the Issuer in consideration of the premises and the acceptance by the Trustee of the Trusts hereby created and of the purchase and acceptance of the Bonds by the owners thereof, and the sum of One Dollar ($1.00), lawful money of the United States of America, to it duly paid by the Trustee, at or before the execution and delivery of these presents, and for other good and valuable considerations, the receipt of which is hereby acknowledged, and in order to secure the payment of the principal of and interest on the Bonds according to their tenor and effect and the performance and observance by the Issuer of all the covenants expressed or implied herein and in the Bonds, subject to all of the provisions hereof, does hereby grant, bargain, sell, convey, mortgage, assign and pledge unto the Trustee, and unto its successor or successors in trust, and to them and their assigns forever, for the securing of the performance of the obligations of the Issuer hereinafter set forth (hereinafter, the "Trust Estate) : WPO:(TDICXSON.TAMARAC-StRMELT]INDENTVRE, 2 July 15, 1997 4:56pm -(�7-/sue All rights of the Issuer under the terms of the Loan Agreement, including without limitation, all the rights and interest of the Issuer in and to the Note (except the rights of the Issuer to indemnification and the payment of certain fees) and all Revenues and the proceeds thereof; II All the rights and interest of the Issuer in and to the Bond Fund and the Loan Account and all moneys and investments therein, but subject to the provisions of this Indenture pertaining thereto, including the making of disbursements therefrom. III All the rights and interest of the Issuer in and to the Mortgage. IV Any other property hereinafter pledged or coming into the possession of the Trustee. All amounts paid under the Guaranty (except the rights of the Issuer to indemnification and reimbursement of fees and expenses) . TO HAVE AND TO HOLD all the same with all privileges and appurtenances hereby conveyed and assigned, or agreed or intended so to be, to the Trustee and its successors in said trusts and to them and their assigns forever; IN TRUST NEVERTHELESS, upon the terms and trusts herein set forth for the equal and proportionate benefit, security and protection of all owners of the Bonds issued under and secured by this Indenture with the privileges, priority or distinction as to lien of the Bonds as provided in the Bond form for the Bonds; provided, however, that if the Issuer, its successors or assigns, shall well and truly pay, or cause to be paid, the principal of the Bonds and the interest due thereon, at the times and in the manner provided in the Bonds, according to the true intent and meaning thereof, and shall make the payments into the Bond Fund as required under Article V or shall provide, as permitted hereby, for the payment thereof by depositing or causing to be deposited with the Trustee the entire amount due or to become due thereon, and shall well and truly keep, perform and observe all the covenants and conditions pursuant to the terms of this WPO:[TDICKSON.TAMARAC- SUNBELT) INDENTURE. July 15, 1997 4:56pm 3 ,e c�7 ism • Indenture to be kept, performed and observed by it, and shall pay to the Trustee all sums of money due or to become due to it in accordance with the terms and provisions hereof, then upon such, final payments this Trust Indenture and the rights hereby granted shall cease, determine and be void; otherwise, this Indenture to be and remain in full force and effect. THIS INDENTURE FURTHER WITNESSETH, and it is expressly declared, that all Bonds issued and secured hereunder are to be issued, authenticated and delivered and all property hereby assigned and pledged and the income, revenues and receipts and other sums of money payable or receivable under the Loan Agreement, hereby assigned and pledged are to be dealt with and disposed of under, upon and subject to the terms, conditions, stipulations, covenants, agreements, trusts, uses and purposes as hereinafter expressed, and the Issuer does hereby agree and covenant, with the Trustee and the respective holders from time to time of the Bonds, as follows: WPO:[TDICKSON.TAMARAC-SUNBELTIINDENTEME. July 15, 1997 4:56pm r - 5 ?_ / 6i4� ARTICLE I DEFINITIONS Section 101. Definitions. In addition to the words and terms elsewhere defined in this Trust Indenture, the following words and terms as used in this Trust Indenture shall have the following meanings: "Act" - Chapter 159, Part II, Florida Statutes, and other applicable provisions of law. "Bonds" or "bonds" - the bonds issued under and secured by this Indenture, designated as provided in Section 202 of this Indenture. "Bond Fund" - the fund of the Issuer created by Section 501 of the Indenture into which the funds specified in Article V are to be deposited and out of which disbursements are to be made as expressly authorized and directed by this Indenture. "Clerk" - The person holding the office and performing the duties of Clerk of the Issuer. "Code" - The Internal Revenue Code of 1986, as amended from time to time, including, when appropriate, the statutory predecessor of the Code, and all applicable regulations thereunder whether proposed, temporary or final, including regulations issued and proposed pursuant to the statutory predecessor of the Code, and, in addition, all official rulings and judicial determinations applicable to the Bonds under the Code and under the statutory predecessor of the Code and any successor provisions to the relevant provisions of the Code or regulations. "Company" - The borrower under the Loan Agreement. "Continuing Disclosure Agreement" - That certain Continuing Disclosure Agreement between the Company and the Trustee dated as of the date hereof, as amended from time to time in accordance with its terms. "Government Securities" - Direct or fully guaranteed obligations of the United states of America (including any such securities issued or held in book -entry form or the books of the Department of the Treasury of the United States of America). "Guaranty" - The Guaranty Agreement dated as of August 1, 1997 from Interplex Industries, Inc. to the Issuer and the Trustee, as supplemented and amended. WPO:ITDICKSON.TAMAPAC-SUNBELT) MEN= . S July 15, 1997 4:56pm 1�1 "Indenture" - This Trust Indenture, together with all indentures supplemental hereto. "Issuer" - The City of Tamarac, Florida, a public body corporate and politic of the State of Florida. "Loan" - The loan from the Issuer to the Company evidenced and governed by the Loan Agreement. "Loan Account" - The account created by Section 602 into which the portion of the proceeds of the sale of the Bonds specified in Section 602 is to be deposited and out of which disbursements are to be made in the manner and for the purposes specified in Article VI of this Indenture. "Loan Agreement" - The Loan Agreement between the Issuer and the Company dated as of August 1, 1997, providing for a loan to the Company for payment of the Project costs. "Mayor" - The Mayor of the Issuer, elected from time to time, or the Vice --Mayor acting by virtue of the incapacity or absence of the Mayor. "Mortgage" - The Mortgage (Including Security Agreement, Assignment of Rents and Leases, and Future Advances) given by the Company to the Issuer to secure the loan made by the Issuer to the Company under the Loan Agreement, dated as of August 1, 1997, and appearing of public record in the office of the Clerk of the Circuit Court of the county in Florida in which the Project is located having been filed of record. "Mortgaged Property" - All of the properties, whether real or personal, tangible or intangible, mortgaged and pledged to the Issuer under the Loan Agreement as well as all other properties which, under the terms of this Indenture subsequently become subject to the lien of the Indenture, including the properties, interests and rights set forth in the granting clauses of this Indenture. "Note" - The promissory note executed and delivered by the Company to the Issuer pursuant to the terms of the Loan Agreement. "Outstanding hereunder" - "Bonds outstanding hereunder" - All Bonds which have been authenticated and delivered under the Indenture except: (a) Bonds canceled because of payment or redemption prior to maturity; WPO:(TDICKSON.TAMAPAC-SUNBELT)INDENTME. July 15. 1997 4:56pm 7- / I4' (b) Bonds for the payment or redemption of which cash or investment securities in the amount required by Section 901 of the Indenture shall have been theretofore deposited with the Trustee (whether upon or prior to the maturity or redemption date of any such Bonds) provided that if such Bonds are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given or satisfactory provision shall have been made therefor, or a waiver of such notice satisfactory in form to the Trustee shall have been filed with the Trustee; and (c) Bonds in lieu of which others have been authenticated under Section 207. "Owner" or "Bondowner" or "owner of the bonds" - The registered owner of any Bond. "Paying Agent" - The bank or trust company named by the Issuer as the place at which the principal of and interest on the Bonds is payable. The original Paying Agent is the Trustee. References to Paying Agent include any alternate Paying Agent. "Person" - Includes natural persons, firms, associations, corporations and public bodies. "Project" - The improvements, equipment and facilities being financed out of the proceeds of the Bonds, together with other expense in connection therewith, including architectural and engineering fees, and the costs of the issuance of the Bonds. "Revenues" - The income, including penalties and interest, derived by the Issuer under the Loan Agreement and the Mortgage and from the Mortgaged Property, and also amounts payable under the Guaranty. "State" - The State of Florida. "Temporary Bonds" - Bonds issued pursuant to Section 212 of the Indenture if definitive bonds are not available upon the initial delivery of the Bonds. "Trustee" - The Trustee appointed from time to time hereunder, whether original or successor, with the original Trustee being First Union National Bank, Miami, Florida. The Trustee is also a Paying Agent and Registrar. "Underwriter" - Greenwich Partners, LLC, or its successors or assigns. Section 102. Use of Words. Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. Unless the context shall otherwise WPO: (TDICKSON. TAMARAC- SUNBELT] INDENTURE. 7 July 15, 1997 4:56pm C] �67 u indicate, the word "bond," "owner," "holder," and "person" shall include the plural, as well as the singular, number. WPO:(TDTCKSDN.TAMARAC-SUNHELT)INDENTURE. July 15, 1997 4:56pm ,e . C, 1-1 `7,5- ARTICLE II THE BONDS Section 201. I nuance of Bonds. No Bonds may be issued under the provisions of this Indenture except in accordance with this Article. Section 202. Details of Bonds. There is authorized to be issued under this Indenture bonds which shall be designated "Industrial Development Revenue Bonds, Series 1997 (Sun Belt Precision Products, Inc., Project) (the "Bonds"), and shall be in the original principal amount of $3,300,000. The Bonds will be dated August 1, 1997, and interest thereon shall be payable as set forth in the form of Bond set forth as Exhibit "A" to this Indenture. The Bonds shall be issued in registered form, in denominations of $5,000 or integral multiples thereof and the principal amount shall be payable, unless sooner redeemed in the manner provided in this Indenture, as set forth in the form of Bond. Section 203. Execution of Bonds. The Bonds shall be executed on behalf of the Issuer by its Mayor (by his original or facsimile signature) and attested by the Clerk (by his original or facsimile signature) thereof, and shall have impressed thereon . the seal of the Issuer. The Mayor and Clerk shall file the certificates required by the Uniform Facsimile Signature of Public Officials Act (Section 113.34, Florida Statutes) and otherwise comply with the provisions of that act, and their facsimile signatures shall have the same force and effect as if they had personally signed. In case any officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of such Bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he had remained in office until delivery. Section 204. Authentication. Only such Bonds as shall have endorsed thereon a Certificate of Authentication substantially in the form set forth on the form of Bond duly executed by the Trustee shall be entitled to any right or benefit under this Indenture. No Bond shall be valid and obligatory for any purpose unless and until such Certificate of Authentication shall have been duly executed by the Trustee, and such Certificate of the Trustee upon any such Bond shall be conclusive evidence that such Bond has been authenticated and delivered under this Indenture. The Trustee's Certificate of Authentication on any Bond shall be deemed to have been executed if signed by an authorized officer of the Trustee, but it shall WPO-CTDICKSON.TAMARAC-SUMELTIINDENTURE. 9 July 15, 1997 4:56pm not be necessary that the same officer sign the Certificate of Authentication on all of the Bonds issued hereunder. The Trustee shall not initially authenticate the Bonds until having received those items required by Sections 4.2 and 6.1 of the Loan Agreement. Section 205. Form of Bond. The Bonds issued under this Indenture shall be substantially in the form set forth in Exhibit "A" hereto with such appropriate variations, omissions and insertions as are permitted or required by this Indenture. Section 206. Delivery of Bonds. Upon the execution and delivery of this Indenture, the Issuer shall execute and deliver to the Trustee and the Trustee shall authenticate the Bonds and deliver them to or at the direction of the Underwriter upon payment of the purchase price plus accrued interest from the date of the Bonds to the date of delivery, and the Trustee shall be entitled to rely upon any certificate, ordinance or resolution as to the purchase price. Section 207. Mutilated, Destroyed or Lost Bonds. In case any Bond issued hereunder shall become mutilated or be destroyed or lost, the Issuer shall, if not then prohibited by law, cause to be executed and the Trustee may authenticate and deliver a new Bond of like date, number, maturity and tenor in exchange and substitution for any such mutilated, destroyed or lost Bond, upon the owners paying the reasonable expenses and charges of the Issuer and the Trustee in connection therewith, and, in case of a Bond destroyed or lost, his filing with the Trustee of evidence satisfactory to it that such Bond was destroyed or lost, and of his ownership thereof and furnishing the Issuer and the Trustee with indemnity satisfactory to them. The Trustee is hereby authorized to authenticate any such new Bond. In the event any such Bonds shall have matured, instead of issuing a new Bond, the Issuer may pay the same without the surrender thereof. Section 208. Reaistration of -Principal anddInterest . The Issuer shall cause books for the registration and for the transfer of the Bonds as provided in this Indenture to be kept by the Trustee as Bond Registrar. Any Bond may be transferred only upon an assignment duly executed by the registered owner or his attorney or legal representative in such form as shall be satisfactory to the Bond Registrar, such transfer to be made on such books and endorsed on the Bond by the Bond Registrar. The principal of any Bond shall be payable only to or upon the order of the registered owner or his legal representative. Interest shall be paid by check or draft at the times provided therein to the registered owner by mail to the address shown on the registration books. WPO:(TDICKSON.TAMARAC- SUNBELT] INDENTURE. 1 0 ,:uly 15, 1997 4:56pm 97- / �"G- The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes and payment of or on account of the principal of any such Bond shall be made only to or upon the order of the registered owner thereof, or his legal representative, and neither the Issuer, the Trustee, nor the Bond Registrar shall be affected by any such notice to the contrary, but such registration may be changed as herein provided. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. Section 209. PayMent on Saturday,_g3andav or Holiday. In any case where the date of maturity of interest on or principal of the Bonds or the date fixed for redemption of any Bonds shall be a Saturday or Sunday or shall be in the State of Florida a legal holiday or a day on which banking instit'(.t,ions are authorized by law to close, then payment of interest or principal (and premium, if any) need not be made on such date but may be made on the next succeeding business day not a Saturday or Sunday or a legal holiday or a day upon which banking institutions are authorized by law to close with the same force and effect as if made on the date of maturity or the date fixed for redemption, and no interest shall accrue for the period after the date of maturity or date fixed for redemption. Section 210. Interest Commencement Date. The Interest . Commencement Date for Bonds issued on a date before any interest has been paid shall be August 1, 1997. Otherwise, each Bond, upon subsequent transfer, shall be dated as of the interest payment date to which interest has been paid. Payment of each installment of interest shall be made to the person in whose name the Bond is registered on the registration books of the Trustee as Bond Registrar at the close of business on the fifteenth day of the month (whether or not a business day) next preceding each interest payment date, irrespective of any transfer or change of any such Bond subsequent to such date. Section 211. Cancellation. All Bonds which are paid, either at maturity or redemption prior to maturity, shall be canceled and, at the option of the Trustee, either (i) cremated, shredded or otherwise disposed of or (ii) returned to the Issuer. In the case of cremating, shredding or other disposition pursuant to (i) above, the Trustee shall execute and forward to the Issuer an appropriate certificate describing the Bonds involved and the manner of disposition. Section 212. Temporary Bonds. The Issuer shall have the right to execute and deliver Temporary Bonds reflecting the indebtedness secured hereby, which Temporary Bonds, if issued and delivered, shall be entitled to the same security, rights and WPO:[TDICKSON.TAMABAC-SUNBELT]INDENTM . 1 July 15, 1997 9:56pm 7 -) 5S protection provided under this Indenture for Bonds in definitive form. Temporary Bonds of the Issuer, if executed, authenticated and delivered shall be replaced by Bonds in definitive form by the Trustee when the Temporary Bonds are returned to the Trustee for exchange. All Temporary Bonds, when returned to the Trustee and when exchanged for Bonds in definitive form shall then be canceled at the option of the Trustee, either (i) cremated, shredded or otherwise disposed of and/or (ii) returned to the Issuer. In the case of cremating, shredding or other disposition pursuant to (i) above, the Trustee shall execute and forward to the Issuer an appropriate certificate reflecting the Temporary Bonds involved and the manner of disposition. Section 213. Additional Bonds. The Issuer, at the request of the Company and to the extent permitted by law in effect at the time thereof, may, at its option, issue from time to time one or more series of Additional Bonds for the purposes of making improvements to the Mortgaged Property or acquiring equipment for use at the Project. Additional Bonds shall be secured equally and ratably with the Bonds and any other Additional Bonds theretofore issued and then outstanding, except insofar as any terms or conditions of redemption or purchase established under this Indenture may afford additional benefit or security for the Bonds of any particular series. The right to issue Additional Bonds set forth in this Indenture shall not imply that the Issuer may not issue, and the Issuer expressly reserves the right to issue, to the extent permitted by law, obligations under another indenture or indentures to provide additional funds to pay Project costs, or to refund all or any principal amount of all or any series of Bonds, or any combination thereof, and the provisions of this Indenture governing the issuance of Additional Bonds shall not apply thereto. The proceeds of the issuance and sale of any series of Additional Bonds, including purchase premium, if any, and accrued interest, if any, thereon to the date of delivery thereof paid by the purchasers thereof, shall be applied simultaneously with the delivery of such Additional Bonds in the manner provided in this Indenture and in the supplemental indenture authorizing such Additional Bonds. Section 214. Book Entry „Bonds and Agent Therefor. (a) The Bonds shall be issued only as fully registered bonds and, except as hereinafter provided, in printed or typewritten form, registered initially in the name of Cede & Co., as nominee of The Depository Trust Company ("DTC"), which shall be considered to be the Owner of the Bonds for all purposes under the Indenture, including, without limitation, payment by the WPO:(TDICKSON.TAMARAC- SUNBELT) INDENTURE. 1 2 July 15, 1997 4:56pm Issuer of principal of, redemption price, premium, if any, and interest on the Bonds, and receipt of notices and exercise of rights of owners. There shall be one Bond for each stated maturity date of the Bonds which shall be immobilized in the custody of DTC with the beneficial owners having no right to receive the Bonds in the form of physical securities or certificates. DTC and its participants shall be responsible for maintenance of records of the ownership interests of beneficial interests in the Bonds by book entry on the system maintained and operated by DTC and its participants, and transfers of ownership of beneficial interests shall be made only by DTC and its participants, by book entry, the Issuer having no responsibility therefor. DTC is expected to maintain records of the positions of participants in the Bonds, and the participants and persons acting through participants are expected to maintain records of the purchasers of beneficial interests in the Bonds. The Bonds as such shall not be transferable or exchangeable, except for transfer to another securities depository or to another nominee of a securities depository, without further action by the Issuer. (b) If any securities depository determines not to continue to act as securities depository for the Bonds for use in a book entry system, the Issuer may establish a securities depository/book entry system relationship with another securities depository. If the Issuer does not or is unable to do so, or upon request of the beneficial owners of all Outstanding Bonds, the Issuer and the Bond Registrar, after the Bond Registrar has made provision for notification of the beneficial owners by the then securities depository, shall permit withdrawal of the Bonds from the securities depository, and authenticate and deliver Bond certificates in fully registered form (in denominations of $5,000 or integral multiples thereof) to the assigns of the securities depository or its nominee, all at the cost and expense (including costs of printing definitive Bonds) of the Company or of the beneficial owners of the Bonds. (c) Prior to issuance of the Bonds, the Issuer shall have executed and delivered to DTC a Letter of Representations setting forth certain undertakings and responsibilities of the Issuer with respect to the Bonds so long as the Bonds or a portion thereof are registered in the name of Cede & Co. (or a substitute nominee) and held by DTC. Notwithstanding such execution and delivery of the Letter of Representations, the terms thereof shall not in any way limit the provisions of Section 214 hereof or in any other way impose upon the Issuer any obligation whatsoever with respect to persons having interests in the Bonds other than the Owners, as shown on the registration books kept by the Bond Registrar. The Bond Registrar shall take all action necessary for all representations of the Issuer in the Representation Letter with respect to the paying agents and the Bond Registrar, respectively, to at all times be complied with. WPO:[TDICKSON.TAMARAC-SUMELT]INDEN= . July 15, 1997 4:56pm 13 r� • u �5%i4- • Is Section 215. Issuer to Facilitate Use of Securities De osit The authorized officers of the Trustee and the Issuer shall do or perform such acts and execute all such certificates, documents and other instruments as they or any of them deem necessary or advisable to facilitate the efficient use of a securities depository for all or any portion of the Bonds; provided that neither the Trustee nor the Issuer may assume any obligations to such securities depository or beneficial owners of Bonds that are inconsistent with their obligation to any Owner under this Indenture. WPO:(TDICKSON.TAMAkAC-SUNBELTJINDWTURE. 4 July 15. 1997 4:56pm ARTICLE III REDEMPTION OF BONDS BEFORE MATURITY Section 301. Redemption. The Bonds shall be callable for redemption prior to maturity in accordance with the provisions pertaining thereto appearing in the form of Bond set forth as Exhibit "A" to this Indenture. Section 302. Notice of Redemption. Notice of the call for redemption shall be by registered or certified mail to the owner or owners of the Bonds not less than thirty (30) days nor more than sixty (60) days prior to the date fixed for redemption, and published notice of the call for redemption need not be given. Each notice shall specify the numbers and the maturities of the Bonds being called, and the date on which they shall be presented for payment. Simultaneously with notice to owners, notice of such redemption also shall be sent by registered or certified mail to at least two of the national information services and securities depositories (described below) that disseminate securities redemption notices. Securities Depositories include The Depository Trust Company, 711 Stewart Avenue, Garden City, New York 11530; Midwest Securities Trust Company, Capital Structures -Call Notification, 440 South LaSalle Street, Chicago, Illinois 60605; Pacific Securities Depository Trust Company, Pacific and Company, P.O. Box 7041, San Francisco, California 94120; Philadelphia Depository Trust Company, Reorganization Division, 1900 Market Street, Philadelphia, Pennsylvania 19103, Attention: Bond Department; o , in accordance with the then current guidelines of the Securities and Exchange Commission, to such other addresses and/or such other securities depositories as the Company may designate in writing to the Trustee. Information services include Financial Information, Inc. "Daily Called Bond Service," 30 Montgomery Street, loth Floor, Jersey City, New Jersey 07302, Attention: Editor; Kenny Information Services, "Called Bond Service," 55 Broad Street, 28th Floor, New York, New York 10004; Moody's Investors Service "Municipal and Government," 99 Church Street, 8th Floor, New York, New York 10007, Attention: Municipal News Reports; and Standard and Poor's Corporation "Called Bond Record," 25 Broadway, New York, New York 10004; or, in accordance with the then current guidelines of the Securities and Exchange Commission, to such other addresses and/or such other services providing information with respect to called Bonds, or any other such services as the Issuer may designate in writing to the WPO:(TDICKSCN.TAMARAC- SUNBELT] INDENTURE. 1 July 15, 1997 4:56pm r� • 0 Trustee. Failure to give notice by mailing to the Owner of any Bond designated for redemption or to any depository or information service shall not affect the validity of the proceedings for the redemption of any other Bond. Section 303. R em ti n Payments. Prior to the date fixed for redemption, funds shall be deposited with the Trustee to pay, and the Trustee is hereby authorized and directed to apply such funds to the payment of, the Bonds called, together with accrued interest thereon to the redemption date and any required premium. Upon the giving of notice and the deposit of funds for redemption, interest on the Bonds thus called shall cease to accrue after the date fixed for redemption until such Bond shall have been delivered for payment or cancellation or the Trustee shall have received the items required by Section 207 hereof with respect to any mutilated, lost, stolen or destroyed Bond. Section 304. Cancellation. All Bonds which have been redeemed shall be canceled by the Trustee and shall be returned to the Issuer. WPO:[TDICKSON.TAMARAC-SUNBELT]INDENTURE. � 6 July 15, 1997 4:56pm ARTICLE IV is GENERAL COVENANTS Section 401. Payment of Principal and Interest. The Issuer covenants that it will promptly pay the principal of, premiums, if any, and interest on every Bond issued under this Indenture at the place, on the dates and in the manner provided herein and in the Bonds according to the true intent and meaning thereof. The principal, premiums and interest (except interest, if any, paid from accrued interest) are payable solely from the Revenues, which Revenues are hereby -specifically pledged to the payment thereof in the manner and to the extent herein specified, and nothing in the Bonds or in this Indenture should be considered as pledging any other fundc or assets of the Issuer (except the securing of the indebtedness evidenced by the Bonds by the provisions of the Loan Agreement). Anything in this Indenture to the contrary notwithstanding, it is understood that whenever the Issuer makes any covenants involving financial commitments, including, without limitation, those in the various sections of this Article IV, it pledges no funds or revenues other than the Revenues and the right, title and interest of the Issuer in the Loan Agreement (except for the obligations of the Company to pay Issuer's expenses and to indemnify the Issuer) and the revenues derived from the avails of the Mortgaged Property, but nothing herein shall be construed as prohibiting the Issuer from using any other funds and revenues. Section 402. Pgrformance of C v n n s. The Issuer covenants that it will faithfully perform at all times any and all covenants, undertakings, stipulations and provisions contained in this Indenture, in any and every Bond executed, authenticated and delivered hereunder. The Issuer covenants that it is duly authorized under the Constitution and laws of the State, including particularly and without limitation the Act, to issue the Bonds authorized hereby and to execute this Indenture and to make the pledge and covenants in the manner and to the extent herein set forth; that all action on its part for the issuance of the Bonds and the execution and delivery of this Indenture has been duly and effectively taken; and that the Bonds in the hands of the owners thereof are and will be valid and enforceable obligations of the Issuer according to the import thereof. Section 403. Instruments of Further Assurance. The Issuer covenants that it will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered, such Indenture or Indentures supplemental hereto and such further acts, instruments and transfers as the Trustee may reasonably require for the better assuring, transferring, mortgaging, WPO: [=ICKSON. TAMARAC- SUNBELT] INDENTURE. 1 July 15, 1997 4:56pm e ?�- i 54' pledging, assigning and confirming to the Trustee the Trust Estate. Section 404. Recordation of Financing Statements. The Company has agreed pursuant to the Loan Agreement that it will cause all financing statements related to this Indenture and all supplements hereto to be recorded and filed in such manner and in such places as may from time to time be required by law in order to perfect fully the security of the Owners of the Bonds and the rights of the Trustee hereunder, and to take or cause to be taken any and all other action necessary to perfect the security interest created by this Indenture. Section 405. Books of Record and Account; Inspection. The Issuer covenants that so long as any Bonds issued hereunder and secured by this Indenture shall be outstanding and unpaid, the Issuer shall keep books of record and account in which complete and correct entries shall be made of its transactions relating to the Project and which shall, together with all books and papers of the Issuer, including insurance policies relating to the Project, at.all times be subject to the inspection of the Trustee and the owner or owners of not less than 15V in principal amount of the Bonds then outstanding or their representatives duly authorized in writing. Section 406. List of Bond wne s. At reasonable times and under reasonable regulations established by the Trustee the list of the names and addresses of the registered owners of the Bonds may be inspected and copied by owners (or a designated representative thereof) of ten percent (10t) or more in principal amount of Bonds outstanding hereunder, such ownership and the authority of any such designated representative to be evidenced to the satisfaction of the Trustee. Section 407. Lien of Trust -Indenture; Enforcement of obligations and Rights. The Issuer covenants that so long as any Bonds authorized by and issued under this Indenture are outstanding, it will not convey or otherwise dispose of its interest in the Mortgaged Property, and that it will not encumber the same, or any part thereof, or its interest therein, or create or permit to be created any charge or lien on the Revenues derived therefrom, except as provided in this Indenture. Nothing contained herein shall prohibit the Issuer from issuing Bonds the payment for which specified revenues of a particular project or projects is pledged as provided in the Act, it being the purpose of this covenant to limit only a subsequent pledge of the Mortgaged Property and Revenues as defined in this Indenture. Section 410. govenants of Issuer Not tg Take or Permit Actions or Conditions That would Caus_e_Interest to be Subiect to Federal Income Taxation. The Issuer and the Trustee covenant WpO:(TDICKSON.TAMARAC- SUNBELT) INDENTURE. 1 S July 15, 1997 4:56pm (� , ly 1'`'`� that neither of them shall take any action which causes or may cause the interest payable on the Bonds to be subject to federal income taxation. The Issuer and the Trustee specifically covenant that the proceeds of sale of the Bonds or investment income thereon and other amounts within the custody or control of the Issuer or the Trustee will not be used directly or indirectly in any manner which, if reasonably expected on the date of issuance of the Bonds, would have caused the Bonds to be treated as "arbitrage bonds" within the meaning of Section 148 of the Code and the regulations thereunder applicable to obligations issued on the date of issuance of the Bonds. Section 411. Continuing Disclo§ure. The Trustee hereby covenants and agrees that it will comply with and carry out its obligations under the provisions of the Continuing Disclosure Agreement. Notwithstanding any other provision of this Indenture, failure of the Trustee or the Company to comply with the Continuing Disclosure Agreement shall not be considered an Event of Default; however, the Trustee may (and, at the request of any Participating Underwriter (as defined in the Continuing Disclosure Agreement) or the Owner of at least 25% aggregate principal amount of Outstanding Bonds, shall) or any Bondowner or Beneficial Owner may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Company or the Trustee, as the case may be, to comply with its obligations under this Section. For purposes of this Section, "Beneficial Owner" means any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes." r� WPO:(TDICKSON.TAMARAC-SUNBELT]INDENTURE. 19 July 15, 1997 4:56pm 0 ARTICLE V REVENUE AND FUNDS Section 501. Creation of Funds. There is hereby created and established with the Trustee a special fund known as the "Bond Fund." There shall be deposited into the Bond Fund as and when received: (a) The proceeds of the sale of the Bonds less amounts set forth in Section 601 hereof; (b) The payments on the Note, and other moneys paid by the Company, pursuant to the Loan Agreement; (c) All amounts paid under the Mortgage; (d) All amounts paid under the Guaranty; (e) Amounts transferred to the Bond Fund pursuant to the provisions of Section 604 hereof; and (f) All other moneys received by the Trustee under and pursuant to any of the provisions of this Indenture which are not directed to be paid in a fund other than the Bond Fund. Money in the Bond Fund shall be kept in separate accounts and apart from other funds or accounts and shall be pledged, appropriated, used and transferred to other funds for the purposes specified in this Article and while separately designated are deemed to be moneys of the Bond Fund as defined. These separate accounts are as follows: (a) The Interest Account (See Section 503); (b) The Bond Redemption Account (see Section 504); (c) The Loan Account (see Section 602). Section 502. Use of Moneys,. in Bond Fund. The Bond Fund shall be in the name of the Issuer, and the Issuer hereby irrevocably authorizes and directs the Trustee to withdraw from the Bond Fund as specified herein sufficient funds to pay the principal of, premium, if any, and interest on the Bonds at maturity and redemption or prepayment prior to maturity, and to remit the funds to the Paying Agent for the purpose of paying the principal and interest in accordance with the provisions hereof pertaining to payment, which authorization and direction the WPO:[TDICKSON.TAMARAC- SUNBELT] INDENTURE. 2 0 July 15, 1997 4:56pm P,� - 7- i 5- Trustee hereby accepts. The Trustee agrees to make demand under the Guaranty for the purpose of paying when due the principal of and interest on the Bonds if moneys in the Bond Fund are not sufficient for such purpose. Section 503. Interest Account. There is hereby created with the Trustee as part of the Bond Fund an "Interest Account" for the purpose of paying interest on the Bonds. The Trustee will cause to be transferred to the Interest Account in the Bond Fund an amount sufficient to pay the interest on the Bonds as the same become due, and to be used for no other purpose unless authorized by Section 511 hereof. The amount so transferred to the Interest Account shall be made at least one (1) day prior to the interest payment specified in Section 1403. Section 504. Bond Redem Lion Account. There is hereby created with the Trustee as part of the Bond Fund a "Bond Redemption Account" for the purpose of paying the principal and premium, if any, on the Bonds issued under the Indenture. After making deposits hereinabove required to be made to the Interest Account, the Trustee will cause to be transferred to the Bond Redemption Account an amount sufficient to pay the principal of and premium, if any, as the same becomes due at maturity or at redemption prior to maturity. All moneys in the Bond Redemption Account shall be used solely for the purpose of paying the principal and premium, if any, of the Bonds at maturity or at their early redemption. It shall be the duty of the Trustee to see to the withdrawal from the Bond Redemption Account at least one (1) day before the maturity or redemption date of any Bond issued hereunder and then outstanding and see to the deposit with the Paying Agent, if a different institution, of an amount equal to the amount due for such Bonds for the sole purpose of paying the same, and no withdrawal from the Bond Redemption Account shall be made for any other purpose. Section 505. Non. -presentment of Bonds. In the event any Bonds shall not be presented for payment when the principal thereof becomes due, either at maturity or otherwise, or at the date fixed for redemption thereof, if there shall have been deposited with the Paying Agent for that purpose, or left in trust if previously so deposited, funds sufficient to pay the principal thereof, together with all interest unpaid and due thereon, to the date of maturity thereof, for the benefit of the owner, all liability of the Issuer to the owner thereof for the payment of the principal thereof and interest thereon shall forthwith cease, terminate and be completely discharged, and thereon it shall be the duty of the Paying Agent to hold such fund or funds, without liability for interest thereon, for the WPO:[TDICXSON.TAMAP-AC- SMELT) INDEN= . � 1 July 15, 1997 4:56pm C7 • C7 benefit of the owner of such Bond who restricted exclusively to such fund or whatever nature on his part under this respect to, the Bond. Section 506. Reserved. Section 507. Reserved. Section 508. Reserved. shall thereafter be funds, for any claim of Indenture or on, or with Section 509. Fees Charges and E2Menges of Trustee and Paying Acrent. It is understood and agreed that pursuant to the provisions of the Loan Agreement, the Company agrees to pay the reasonable fees, expenses and charges of the Trustee and Paying Agent as authorized and provided by this Indenture. The Company is to make payments on statements rendered by the Trustee. All such additional payments under the Loan Agreement which are received by the Trustee shall be expended solely for the purpose for which such payments are received, and the Trustee hereby agrees to make payment for said purposes. Section 510. Moneys to be _Held in Trust. All moneys required to be deposited with or paid to the Trustee under any provision of this Indenture shall be held by the Trustee in trust, and except for moneys deposited with or paid to the Trustee for the redemption of Bonds, notice of which redemption has been duly given, shall, while held by the Trustee, constitute part of the trust estate and be subject to the lien hereof. If the Issuer shall receive any moneys pursuant to applicable provisions of the Loan Agreement, it will forthwith upon receipt thereof pay the same over to the Trustee to be held, administered and disbursed by the Trustee in accordance with the provisions of the Loan Agreement, pursuant to which the. Issuer may have received the same. Furthermore, if for any reason the Loan Agreement ceases to be in force and effect while any Bonds are outstanding, and if the Issuer shall receive any moneys derived from the Mortgaged Property, it will forthwith upon receipt thereof pay the same over the Trustee to be held, administered and disbursed by the Trustee in accordance with provisions of the Loan Agreement that would be applicable if the Loan Agreement were then in force and effect, and if there be no such provisions which would be so applicable, then the Trustee shall hold, administer and disburse such moneys solely for the discharge of the Issuer's obligations under this Indenture. Section 511. Refunds to Cam an . Anything herein to the contrary notwithstanding, so long as an event of default has not occurred and is continuing under this Indenture or under the Loan Agreement, the Trustee is authorized and directed to refund to the Company on January 1 annually all excess amounts remaining in WPO:(TOICKSON.TAMARAC-SUNBELT]INOENTURE. 22 July 15, 1997 4:56pm (� I 1� ' �� the Bond Redemption and the Interest Accounts of the Bond Fund after payment of all amounts due in the previous twelve months including the Trustee's fees and expenses. The foregoing notwithstanding, moneys in the Interest Account and Bond Redemption Account in the Bond Fund being held pending redemption of Bonds shall not be refunded to the Company. • r� WPO.(TDICXSDN.TAMARAC- SUNBELT) INDENTURE. i 3 July 15, 1997 4:56pm g - 5 -7-1 �f 0 ARTICLE VI CUSTODY AND APPLICATION OF PROCEEDS OF BONDS Section 601. Disbursement of Proceeds; Issuance Casts. When the Bonds have been executed as provided in this Indenture, they shall be delivered to the Trustee which shall authenticate them and deliver them to the Purchaser. The Trustee shall disburse the moneys received as proceeds of the Bonds as specified in the written instructions of the Issuer for the following purposes and none other: The costs of issuing the Bonds in the amount designated by the Issuer shall be deposited into a temporary fund hereby created and designated the "Cost of Issuance Fund" and applied at the written direction of the Company to pay costs associated with the issuance of the Bonds. On the date which is six months from the date of issuance of the Bonds, the Trustee shall transfer any balance in the Cost of Issuance Fund to the Bond Fund to be applied toward payment of the interest due on the Bonds. The balance shall be applied as provided in Section 602 hereof . Section 602. Deposit in the Loan Account. After making the necessary use of funds as provided in Section 601 above, the Trustee shall then deposit the remainder of the proceeds in a special account of the. Issuer in the "Loan Account". Section 603. Disbursements from the Loan Account. Moneys in the Loan Account shall be disbursed to the Company for Project costs which shall include costs of acquisition, costs of construction, architect's and engineer's fees, payment of interim indebtedness of the company incurred for Project costs, and all other necessary expenses incidental to the accomplishment of the purposes of the Loan Agreement if permitted by the Code. The Trustee shall disburse funds from the Loan Account upon presentation of a completed Requisition in the form attached as Exhibit "C" to the Loan Agreement. The Trustee shall be under no obligation to investigate the accuracy of the matters set forth in such Requisition, but shall rely on the matters asserted therein. Section 604. Transfer to Bond Fund. Whenever the Company shall notify the Trustee in writing that any balance remaining in the Loan Account will not be needed for completion of the Project pursuant to Section 4.8 of the Loan Agreement, the remaining balance shall be deposited into the Bond Redemption Account and used to redeem Bonds on the first optional redemption date or to pay principal of the Bonds if, in the opinion of bond counsel WPO:(TDICKSON.TAMARAC-SUNBELTIINDENTURE. 2 4 July 15, 1997 4:56pm (,? -� -7- � '�S acceptable to the Trustee, such use will not affect the excludability from gross income of the interest on the Bonds for federal income tax purposes. WPO:(TDICKSON.TAMARAC- SUNBELT] INDENTURE. Z S July 15, 1997 4:56pm C-rr7-/q.4- 0 ARTICLE VII Section 701. Investment of Moneys in Funds. Moneys on deposit with the Trustee shall be invested at the written direction of the Company as follows: (a) Moneys held for the credit of the Loan Account shall, upon direction by the Company, be invested and reinvested by the Trustee in (i) Government Securities, (ii) commercial paper rated A-1 or better by Standard & Poor's, (iii) savings accounts, time deposits or certificates of deposit in any bank, including the Trustee, organized under the laws of the United States of America or any State thereof having a combined capital, surplus and undivided profits, or net worth, of not less than $10,000,000, provided that such accounts or deposits shall be secured by Government Securities to the extent not insured by the Federal Deposit Insurance Corporation, (iv) money market funds or pooled or mutual investment funds whose assets consist primarily of United States Treasury obligations or securities issued or guaranteed by the United States Government or any agency thereof (including any such fund managed by the Trustee) and whose average maturity of such investment is less than twelve (12) months, (v) tax-exempt securities rated "A+" or better by Standard & Poor's, (vi) pooled or mutual investment funds whose assets consist of tax-exempt securities rated "A+" or better by Standard & Poor's, and (vii) other securities or investments which are, at the time of investment, approved by Standard and Poor's for the investment of similar funds for bonds rated "A+" or better. All investments shall have maturity dates, or be subject to redemption by the owner at the option of the owner, or shall have terms for repurchase, on or prior to the dates the funds will be needed as reflected by a statement of the duly designated representative of the Company which statement must be on file with the Trustee prior to any investment. (b) Moneys held for the credit of the Interest Account or Bond Redemption Account in the Bond Fund or any other fund or account shall to the extent practicable be invested and reinvested in Government Securities or obligations listed in Section 701(a)(ii), (iii), (iv) or (vi) which will mature, or which will be subject to redemption by the holder thereof at the option of the holder, not later than the date or dates on which the money held for credit of the particular account shall be required for the purposes intended. WPO:(TDICKSON.TAMARAC- SUNBELT) INDENTURE. 2 JU1y 15, 1997 4:56pm r S i V b (c) obligations so purchased as an investment of moneys in any fund or account shall be deemed at all times a part of such fund or account. Except as provided in Section 507, any profit and income realized from such investments shall be credited to the fund or account and any loss shall be charged to the fund or account. Section 702. Arbitrage Reggirements. In compliance with the provisions of Section 148 of the Code and regulations thereunder, all investments and reinvestments made under this Article VII shall be subject to the following: (a) In the event that the Company is of the opinion that it is necessary or advisable to restrict or limit the yield on the investment of any moneys held in the Loan Account, the Bond Fund or any other fund in order to avoid the Bonds being considered "arbitrage bonds" within the meaning of Section 148 of the Code, or any proposed, temporary or final regulations thereunder as such regulations may apply to obligations issued as of the date of original issuance and delivery of the Bonds, the Company may issue to the Trustee a written certificate to such effect together with appropriate, specific written investment instructions, which the Trustee shall follow. (b) The Issuer shall not make or agree to make any payments or participate in any non -arms -length transaction which would have the effect of reducing the earnings on investments, thereby reducing the amount required to be rebated to the United States under Section 148(f) of the Code and regulations thereunder. (c) The Company has undertaken in the Loan Agreement to make the determinations required by paragraph (b) of this Section 702 and to provide statements to the Trustee to the effect that all actions with respect to the Bonds required by Section 148(f) of the Code has been taken. The Trustee shall be entitled to rely upon such determinations and statements as a sufficient determination of the facts therein contained. WPn:[TDICKSDN.TAMARAC- SUNBELT) INDENTURE. 2 7 .7u1y 15, 1997 4:56pm �J • 0 ARTICLE VIII POSSESSION, USE AND RELEASE OF MORTGAGED PROPERTY • • Section 801. The om an 's Right to Rossess,Use and En?ov. So long as not otherwise provided in this Indenture or the Loan Agreement, the Company shall be suffered and permitted to possess, use and enjoy the Mortgaged Property and appurtenances. WPO:(TDICKSON.TAMARAC-SUMMTJINDENTURE. July 15, 1997 4:56pm 28 ARTICLE IX 0 DISCHARGE OF LIEN Section 901. Discharge of Lien. If the Issuer shall pay or cause to be paid to the owners of the Bonds the principal and interest to become due thereon at the times and in the manner stipulated therein, together with all fees and expenses due the Trustee and if the Issuer shall keep, perform and observe all and singular the covenants and promises in the Bonds and in this Indenture expressed as to be kept, performed and observed by it on its part, then these presents and the estate and rights hereby granted shall cease, determine and be void, and thereupon the Trustee shall cancel and discharge the lien of this Indenture, and execute and deliver to the Issuer such instruments in writing as shall be requisite to satisfy the lien thereof, and reconvey to the Issuer the estate hereby conveyed, and assign and deliver to the Issuer the estate hereby conveyed, and assign and deliver to the Issuer any property at the time subject to the lien of this Indenture which may then be in its possession, including trust funds, except funds held by it for the payment of the principal of and interest on the Bonds. Any Bond shall be deemed to be paid when payment of the principal of and premium, if any, and interest on such Bond (whether at maturity or upon redemption or otherwise), either (i) shall have been made or caused to be made in accordance with the terms of the Indenture, or (ii) shall have been provided for by irrevocably depositing with the Trustee, in trust and irrevocably setting aside exclusively for such payment, (1) moneys sufficient to make such payment or (2) Government Securities (provided that such deposit will not affect the tax-- exempt status of the interest on any of the Bonds or cause any of the Bonds to be classified as "arbitrage bonds" within the meaning of Section 148 of the Code), maturing as to principal and interest in such amount and at such times as will provide sufficient moneys to make such payments, and all necessary and proper fees, compensation and expenses of the Trustee and any Paying Agent pertaining to the Bonds with respect to which such deposit is made and all other liabilities of the Company under the Loan Agreement shall have been paid or the payment thereof provided for to the satisfaction of the Trustee. The Issuer may at any time surrender to the Trustee for cancellation by it any Bonds previously authenticated and delivered hereunder, which the Issuer may have acquired in any manner whatsoever, and such Bonds upon such surrender and cancellation, shall be deemed to be paid and retired. • WPO:[TDICKSON.TAMAPAC-SUNBELT]INDENTURE. 2 9 July 15, 1997 4:56pm 0 ARTICLE X DEFAULT PROVISIONS AND REMEDIES OF TRUSTEE AND BONDOWNERS Section 1001. Events of Default. If any of the following events occur, subject to the provisions of Section 1012 hereof, it is hereby defined as and declared to be and to constitute an "event of default"; (a) Default in the due and punctual payment of any interest on any Bond hereby secured and outstanding; (b) Default in the due and punctual payment of the principal of, and premium, if any, on any Bond hereof secured and outstanding, whether at the stated maturity thereof, or upon proceedings for redemption thereof, or upon the maturity thereof by declaration; (c) Default in the performance or observance of covenants, agreements or conditions to be performed in this Indenture, the Loan Agreement, or in the Bonds contained, and the continuance thereof for a period of fifteen (15) days after written notice to the Issuer by the Trustee or by the owners of not less than ten percent (10t) in aggregate principal amount of Bonds outstanding hereunder. The term "default" shall mean default by the Issuer in the performance or observance of any of the covenants, agreements or conditions on its part contained in this Indenture, or in the Bonds outstanding hereunder, exclusive of any period of grace required to constitute a default an "event of default" as hereinabove provided. Section 1002. Acceleration. Upon the occurrence of an event of default, the Trustee may, and upon the written request of the owners of twenty-five percent (25k) in aggregate principal amount of Bonds outstanding hereunder, shall, by notice in writing delivered to the Issuer, declare the principal of all Bonds hereby secured then outstanding and the interest accrued thereon immediately due and payable and such principal and interest shall thereupon become and be immediately due and payable. Section 1003. Trustee's Right to Enter and Take Possession. Upon the occurrence of an event of default, the Issuer, upon demand of the Trustee, shall forthwith surrender to it the actual possession of, and it shall be lawful for the Trustee, by such officer or agent as it may appoint, to take possession of, all or any part of the Mortgaged Property with the books, papers and WPO:[TDICKSON.TAMARAC- SUNBELT] INDENTURE. 3 July 15, 1997 4:56pm accounts of the Issuer pertaining thereto and to hold, operate and manage the same, and from time to time to make all needful repairs and improvements as the Trustee shall deem wise; and the Trustee, with or without permission, may collect, receive and sequester the rents, revenues, issues, earnings, income, products and profits therefrom (exclusive of any of the foregoing which may have been pledged to secure other obligations of the Issuer) and out of the same and any moneys received from any receiver of any part thereof pay, and/or set up proper reserves for the payment of, all proper costs and expenses of so taking, holding and managing the same, including reasonable compensation to the Trustee, its agents and counsel, and any charges of the Trustee hereunder and any taxes, assessments and other charges prior to the lien of this Indenture which the Trustee may deem it wise to pay, and all expenses of such repairs and improvements and apply the remainder of the moneys so received by the Trustee in accordance with the provisions of Section 1008 hereof. Whenever all that is due upon such Bonds and installments of interest under the terms of this Indenture shall have been paid and all defaults made good, the Trustee shall surrender possession to the Issuer, its successors or assigns; the same right of entry, however, to exist upon any subsequent event of default. While in possession of such property the Trustee shall render annually to the owners of the Bonds, at their addresses as set forth on the bond registration book maintained by the Trustee, a summarized statement of income and expenditures in connection therewith. Section 1004. Oder Remedies; Rights and obligations with Reference to Remedies. Upon the occurrence of an event of default, the Trustee may, as an alternative, proceed either after entry or without entry, to pursue any available remedy by suit at law or in equity to enforce the payment of the principal of and interest on the Bonds then outstanding hereunder, including without limitation, foreclosure and mandamus. Upon the occurrence of an event of default, the Trustee shall, if so requested in writing by sixty-six and two-thirds percent (66-2/3t) in value of the registered owners of the Bonds, assign to the registered owners of the Bonds all its right, title and interest in the Loan Agreement and the Note and Security Documents required, defined and identified in the Loan Agreement in exchange for the Bonds, which assignment shall be full and complete satisfaction and discharge of all liabilities and obligations of the Issuer on the Bonds and of the Trustee under this Indenture. If an event of default shall have occurred, and if it shall have been requested in writing so to do by the owners of twenty- five percent (25*) in aggregate principal amount of Bonds WPO:[TDICKSON.TAMARAC-SUNBELT] INDENTURE. 1 July 15, 1997 4:56pm e-�7-1 5.E outstanding hereunder and shall have been indemnified as provided in Section 1101 hereof, the Trustee shall be obligated to exercise such one or more of the rights and power conferred upon it by this Section and by Section 1003 as the Trustee, being advised by counsel, shall deem most expedient in the interests of the Bondowners. No remedy by the terms of this Indenture conferred upon or reserved to the Trustee (or to the Bondowners) is intended to be exclusive of any other remedy, but each and every such remedy shall be cumulative and shall be in addition to any other remedy given hereunder or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default or event of default shall impair any such right or power or shall be construed to be a waiver of any such default or event of default or acquiescence therein; and every such right and power may be exercised from time to time and as often as may be deemed expedient. No waiver of any default or event of default hereunder, whether by the Trustee or by the Bondowners, shall extend to or shall affect any subsequent default or event of default or shall impair any rights or remedies consequent thereon. Section 1005. Right of Majority of Bondowners to Take Charge. Upon indemnifying the Trustee to its satisfaction, the owners of a majority in aggregate principal amount of Bonds outstanding hereunder shall have the right, at any time, by an instrument or instruments in writing executed and delivered to the Trustee, to direct the method and place of conducting all proceedings to be taken in connection with the enforcement of the terms and conditions of this Indenture, or for the appointment of a receiver or any other proceeding hereunder; provided that such direction shall not be otherwise than in accordance with the provision of law and of this Trust Indenture. Section 1005. Appointment_of Receiver. Upon the occurrence of an event of default, and upon the filing of a suit or other commencement of judicial proceedings to enforce the rights of the Trustee and of the Bondowners under this Indenture, the Trustee shall be entitled, as a matter of right, to the appointment of a receiver or receivers of the Mortgaged Property and of the rents, revenues, issues, earnings, income, products and profits thereof, pending such proceedings with such powers as the court making such appointment shall confer. Section 1007. _Waiver by Issuer of Benefit of Laws and Rights of Anpraisement and Redem tion. in case +of an event of default on its part, as aforesaid to the extent that such rights WPO:[TDICKSON.TAMARAC- SUNBELT IINDENTURE. 3 July 15, 1997 4:56pm may then lawfully be waived, neither the Issuer nor anyone claiming through it or under it shall or will set up, claim or seek to take advantage of any appraisement, valuation, stay, extension or redemption as now or hereafter in force, in order to prevent or hinder the enforcement of this Indenture, but the Issuer, for itself and all who may claim through or under it, hereby waives, to the extent that it lawfully may do so, the benefit of all such laws and all right of appraisement and redemption to which it may be entitled under the laws of the State. Section 1008. Ap-plication of Available Moneys. Available moneys collected pursuant to this Article X shall be applied by the Trustee (after paying its reasonable fees and expenses, including legal fees and expenses) as follows: (a) Unless the principal of all the Bonds all have become or shall have been declared due and payable, all such moneys shall be applied: FIRST: To the payment to the persons entitled thereto of all installments of interest then due, in the order of the maturity of the installments of such interest, and, if the amount available shall not be sufficient to pay in full any particular installment, then to the payment ratably, according to the amounts due on such installment, to the persons entitled thereto, without any discrimination or privilege; SECOND: To the payment to persons entitled thereto of the unpaid principal of any of the Bonds which shall have become due (other than Bonds called for redemption for the payment of which moneys are held pursuant to the provisions of this Indenture), in the order of their due dates, with interest on such Bonds from the respective dates upon which they become due, and, if the amount available shall not be sufficient to pay in full Bonds due on any particular date, together with such interest, then to the payment ratably, according to the amount of principal due on such date, to the persons entitled thereto without any discrimination or privilege; and THIRD: To the payment of the interest on and the principal of the Bonds, and to the redemption of Bonds, all in accordance with the provisions of Article V of this Indenture. (b) If the principal of all the Bonds shall have become due or shall have been declared due and payable, all such moneys shall be applied to the payment of the principal and interest then due and unpaid upon the Bonds, without preference or priority of principal over interest or of interest over principal, or of any Bond over any other Bond, ratably, according to the amounts due respectively for principal and or privilege. WPO:[TDICXSON.TAMARAC-SUN9$LT]INDiNTI - 3 July 15, 1997 4:56pm • • • .�z 57-/5 (c) If the principal of all the Bonds shall have been declared due and payable, and if such declaration shall thereafter have been rescinded and annulled under the provisions of this Article then, subject to the provisions of paragraph (b) of this section, in the event that the principal of all the Bonds shall later become due or be declared due and payable, the moneys shall be applied in accordance with the provisions of paragraph (a) of this Section. whenever moneys are to be applied by the Trustee pursuant to the provisions of this Section, such moneys shall be applied by it at such times, and from time to time, as it shall determine, having due regard to the amount of such moneys available for application and the likelihood of additional moneys becoming available for such application in the future. Whenever the Trustee shall apply such funds, it shall fix the date (which shall be an interest payment date unless it shall deem another date more suitable) upon which such date interest on the amounts of principal to be paid on such dates shall cease to accrue. The Trustee shall give such notice as it may deem appropriate of the deposit with it of any such moneys and of the fixing of any such date and shall not be required to make payment to the owner of any unpaid Bond until such Bond shall be presented to the Trustee for appropriate endorsement or for cancellation if fully paid. Section 1009. Eamedies Vested in Trustee. All rights of action (including the right to file proof of claim) under this Indenture or under any of the Bonds may be enforced by the Trustee without the possession of any of the Bonds or the production thereof in any trial or other proceeding relating thereto and any such suit or proceeding instituted by the Trustee shall be brought in its name as Trustee, without the necessity of joining as plaintiffs or defendants any owners of the Bond hereby secured, and any recovery of judgment shall be for the equal benefit for the owners of the outstanding Bonds in the order herein provided (subject to the right of the Trustee to its reasonable fees and expenses, including legal fees and expenses). Section 1010. Rights and Remedies of Bondowners. No owner of any Bond shall have any right to institute any suit, action or proceeding in equity or at law for the enforcement of this Indenture or for the execution of any trust hereof or for the appointment of a receiver or any other remedy hereunder, unless a default has occurred of which the Trustee has been notified as provided in subsection (g) of Section 1101, or of which by .the subsection it is deemed to have notice, nor unless such default shall have become an event of default and the owners of twenty- five percent (25t) in aggregate principal amount of Bonds outstanding hereunder shall have made written request to the Trustee and shall have offered it reasonable opportunity either to proceed to exercise the powers hereinbefore granted or to WPO: [TDICKSON. TAMARAC -SUNBELT] INDENTURE. 3 4 July 15, 1997 4:56pm .4� -"'? 15s_ institute such action, suit or proceeding in its own name, nor unless also they have offered to the Trustee indemnity as Provided in Section 1101; nor unless the Trustee shall thereafter fail or refuse to exercise the powers hereinbefore granted, or to institute such action, suit or proceeding in its own name; and such notification request and offer of indemnity are hereby declared in every such case at the option of the Trustee to be conditions precedent to the execution of the powers and trusts of this Indenture, and to any action or cause of action for the enforcement of this Indenture or for the appointment of a receiver for any other remedy hereunder; it being understood and intended that not one or more owners of the Bonds shall have any right in any manner whatsoever to affect, disturb or prejudice the lien of this Indenture by his or their action or to enforce any right hereunder except in the manner herein provided, and that all proceedings at law or in equity shall be instituted, had and maintained in t'-.e manner herein provided for the equal benefit of the owners of all Bonds outstanding hereunder. Nothing in this Indenture contained shall, however, affect or impair the right of. any Bondowners to enforce the payment of the principal of and interest on any Bond at or after the maturity thereof, or to the obligation of the Issuer to pay the principal of and interest on each of the Bonds issued hereunder to the respective owners thereof at the time and place in the Bonds expressed. Section 1011. T rm'nat'on of Pro-c-e-adincrs. In case the Trustee shall have proceeded to enforce any right under this Indenture by the appointment of a receiver, by entry or otherwise, and such proceedings shall have been discontinued or abandoned for any reason, or shall have been determined adversely to the Trustee, then and in every such case the authority and the Trustee shall be restored to their former positions and rights hereunder with respect to the property herein conveyed and all rights, remedies and powers of the Trustee shall continue as if no such proceedings had been taken, except to the extent the Trustee is legally bound by such adverse determination. Section 1012. Waivers of_Fven_ts of Default. The Trustee may in its discretion waive any event of default hereunder and its consequences and rescind any declaration of maturity of principal, and shall do so upon the written request of the owners of (i) 50% in aggregate principal amount of all the Bonds outstanding hereunder in respect of which default the payment of principal and/or interest exists, or (ii) SO% in principal amount of all the Bonds outstanding hereunder in the case of any other default, provided, however, that there shall not be waived (a) any event of default in the payment of the principal of any Bonds issued hereunder and outstanding at the date of maturity specified therein or (b) any default in the payment of the interest or of Bond Fund moneys unless prior to such waiver or WPO:(TDICKSON.TAMARAC-SUNBELT IINDENTURE. 3 July 15, 1997 4:56pm • • LJ f,� �?'Ss- • rescission all arrears of interest, with interest at the rate borne by the Bonds in respect of which such default shall have occurred on overdue installments of interest or all arrears of Bond Fund payments, as the case may be, and all expenses of the Trustee and Paying Agent, shall have been paid or provided for, and in case of any such waiver or rescission or in case any proceeding taken by the Trustee on account of any such default shall have been discontinue or abandoned or determined adversely, then and in every such case the Issuer, Trustee and the Bondowners shall be restored to their former positions and rights thereunder respectively; but no such waiver or rescission shall extend to any subsequent or other default, or impair any right consequent thereon. WPO:[TDICKSON.TAMARAC-SLTNBELT]INOENTURE. 3 July 15, 1997 4:56pm ,ARTICLE XI Is THE TRUSTEE Section 1101. Acceiptgncg of T usts. The Trustee hereby accepts the trusts imposed upon it by this Indenture, and agrees to perform the trust with the same degree of care and skill as a prudent man would exercise or use under the same circumstances in the conduct of his own affairs, but only upon and subject to the following expressed terms and conditions: (a) The Trustee may execute any of the trusts or powers hereof and perform any duties required of it by or through attorneys, agents, receivers or employees, and shall be entitled to advice of counsel concerning all matters of trusts hereof and its duties hereunder, and may in all cases pay reasonable compensation to all such attorneys, agents, receivers and employees as may reasonably be employed in connection with the trusts hereof. The Trustee may act upon the opinion or advice of any attorney, surveyor, engineer or accountant selected by it in the exercise of reasonable care, or, if selected or retained by the Issuer prior to the occurrence of a default of which the Trustee has been notified as provided in sub -section (g) of this Section, or of which by the sub -section the Trustee is deemed to have notice, approved by the Trustee in the exercise of such care. The Trustee shall not be responsible for any loss or damage resulting from an action or non -action in accordance with any such opinion or advice. (b) The Trustee shall not be responsible for any recital herein, or in the Bonds (except in respect to the certificate of the Trustee endorsed on such Bonds), or for the recording or re-recording, filing or re -filing of this Indenture, or for insuring the property herein conveyed or collecting any insurance moneys, or for the validity of the execution by the Issuer of this Indenture or of any supplemental indentures or instruments of further assurance, or for the sufficiency of the security for the Bonds issued hereunder or intended to be secured herein, or for the value of the title of the property here conveyed or otherwise as to the maintenance of the security hereof; except that in the event the Trustee enters into possession of a part or all of the property herein conveyed pursuant to any provision of this Indenture, it shall use due diligence in preserving such property; and the Trustee shall not be bound to ascertain or inquire as to the performance or observance of any covenants, conditions or agreements on the Issuer, except as hereinafter set forth; but the Trustee may require of the Issuer full information and advice as to the performance of the covenants, conditions and agreements aforesaid as to the condition of the property herein conveyed. WPO: ITDICKSON. TAMARAC-SUNBELT) INDF171STRE. 37 July 15, 1997 4:56pm g -97-/5 s (c) The Trustee shall not be accountable for the use of any Bonds authenticated or delivered hereunder. The Trustee may become the owner of Bonds with the same rights which it would have if not Trustee. No merger of title shall occur if at any time the Trustee owns all of the Bonds. (d) The Trustee shall be protected in acting upon any notice, request, consent, certificate, order, affidavit, letter, telegram or other paper or document believed by it, in the exercise of reasonable care, to be genuine and correct and to have been signed or sent by the proper person or persons. Any action taken by the Trustee pursuant to this Indenture upon the request or authority or consent of the owner of any Bond secured hereby, shall be conclusive and binding upon all future owners of. the same Bond and upon Bonds issued in exchange therefor or in place thereof. (e) As to the existence or non-existence of any fact or as to the sufficiency or validity of any instrument, paper or proceeding, the Trustee may rely upon a certificate of the Issuer or the Company as sufficient evidence of the facts therein contained and prior to the occurrence of a default of which it has been notified as provided in sub -section (g) of this Section, or of which by said subsection it is deemed to have notice, and shall also be at liberty to accept a similar certificate to the effect that any particular dealing, transaction or action is necessary or expedient, but may at its discretion, at the reasonable expense of the Company, in every case secure such further evidence as it may think necessary or advisable, but shall in no case be bound to secure the same. The Trustee may accept a certificate of the Clerk of the Issuer under its seal to the effect that a resolution or ordinance in the form therein set forth has been adopted by the Issuer as. conclusive evidence that such resolution or ordinance has been duly adopted, and is in full force and effect. (f) The permissive right of the Trustee to do things enumerated in this Indenture shall not be construed as a duty of the Trustee, and the Trustee shall be answerable only for its own negligence or willful default. (g) The Trustee shall not be required to take notice or be deemed to have notice of any default hereunder except failure by the Issuer to make or cause to be made any of the payments to the Trustee required to be made by Article IV unless the Trustee shall be specifically notified in writing of such default by the Issuer or by the owners of at least ten percent (10%) in aggregate principal amount of Bonds outstanding hereunder and all notices or other instruments required by this Indenture to be delivered to the Trustee must, in order to be effective, be delivered to the office of the Trustee, and in the WPO:(TDICKSON.TAMARAC- SUNBELT] INDENTURE. 3 Ju1y 15, 1997 4:56pm c7 7 s absence of such notice so delivered, the Trustee may conclusively assume there is no default except as aforesaid. (h) The Trustee shall not be personally liable for any debts contracted or for damages to persons or to personal property injured or damaged, or for salaries or nonfulfillment of contracts during any period in which it may be in the possession of or managing the real and tangible personal property as in this Indenture provided. (i) At any and all reasonable times the Trustee, and its duly authorized agents, attorneys, experts, engineers, accountants and representatives, shall have the right fully to inspect all of the. property herein conveyed, including all books, papers and records of the Issuer pertaining to the Project and the Bonds, and to take such memoranda from and in regard thereto as may be desired. (j) The Trustee shall not be required to give any Bond or surety in respect of the execution of the said trusts and powers or otherwise in respect of the premises. (k) Notwithstanding anything elsewhere in this Indenture contained, the Trustee shall have the right, but shall not be required, to demand, in respect of the authentication of any Bonds, the withdrawal of any cash, the release of any property, or any action whatsoever within the purview of this Indenture, any showings, certificate, opinions, appraisals, or the information, or corporate action or evidence thereof, in addition to that by the terms hereof required as a condition of such action by the Trustee, deemed desirable for the purpose of establishing the right of the Issuer to the authentication of any Bonds, the withdrawal of any cash, the release of any property, or the taking of any other action by the Trustee. (1) Before taking such action hereunder, the Trustee may require that it be furnished indemnity (including reasonable attorneys, fees and expenses) satisfactory to it for the reimbursement to it of all expenses to which it may be put and to protect it against all liability, except liability which is adjudicated to have resulted from the negligence or willful default of the Trustee, by reason of any action so taken by the Trustee. Section 1102. Fes Charges and gxpenses of Trustee. The Trustee shall be entitled to payment and/or reimbursement for its reasonable fees for services rendered hereunder and all advances, counsel fees and other expenses reasonably and necessarily made or incurred by the Trustee in and about the execution of the trusts created by this Indenture and in and about the exercise and performance by the Trustee of the powers and duties of the WPO:(TDICKSON.TAMARAC-SUNBELT] INDENTURE. 3 9 .7uly 15, 1997 4:56pm 0 1�1 Trustee hereunder, and for all reasonable and necessary costs and expenses incurred in defending any liability in the premises of any character whatsoever (unless such liability is adjudicated to have resulted from the negligence or willful default of the Trustee). In this regard, it is understood that the Issuer pledges no funds or revenues other than those provided for in the Loan Agreement and the Revenues derived from the Mortgaged Property and payments under the Guaranty to the payment of any obligation of the Issuer set forth in this Indenture, including the obligations set forth in this Section, but nothing herein shall be construed as prohibiting the Issuer from using any other funds and revenues for the payment of any of its obligations under this Indenture. Upon default by the Issuer but only upon default, pursuant to the provisions of this Indenture pertaining to default, the Trustee shall have a first lien with right of payment prior to payment on account of principal or interest of a Bond issued hereunder upon the Trust Estate for the reasonable and necessary advances, fees, costs and expenses (including reasonable attorneys, fees and expenses) incurred by the Trustee. Section 1103. Notice to Bondowners of Default. If a default occurs of which the Trustee is by Section 1101(g) deemed to have notice, or is notified by the Issuer or by the owners of at least 10% in aggregate principal amount of Bonds then outstanding, the Trustee shall give written notice by mail to the Underwriter and each owner of Bonds then outstanding. Section 1104. Internention_by_Txustee. In any judicial proceeding to which the Issuer is a party and which in the opinion of the Trustee has a substantial bearing on the interests of owners of Bonds issued hereunder, the Trustee may intervene on behalf of the Bondowners and shall do so if requested in writing by the owners of at least ten percent (10%-) of the aggregate principal amount of Bonds outstanding hereunder. The rights and obligations of the Trustee under this Section are subject to the approval of the court having jurisdiction in the premises. Section 1105. Successor -Trustee. Any bank or trust company into which the Trustee may be merged, or with which it may be consolidated, or to which it may sell or transfer its trust business and assets as a whole or substantially as a whole, or any bank or trust company resulting from any such sale, merger, consolidation or transfer to which it is a party, ipso facto, shall be and become successor trustee hereunder and vested with all of the title to the whole property or trust estate and all the trusts, powers, discretions, immunities, privileges, and all other matters as was its predecessor, without the execution or filing of any instrument or any further act, deed or conveyance on the part of any of the parties hereto, anything herein to the contrary notwithstanding; provided, however, that such successor trustee shall have capital and surplus of at least $20,000,000. WPO:[TDICKSON.TAMARAC-SUNBELT]INDENTURE. 0 July 15, 1997 4:56pm Section 1106. Resignation by Trustee. The Trustee and any successor trustee may at any time resigr from the trusts hereby created by giving thirty (30) days written notice to the Issuer and the registered owners of the Bonds, and such resignation shall take effect at the end of such thirty (30) days, or upon the earlier appointment of a successor trustee by the Bondowners or by the Issuer. Such notice may be served personally or sent by registered mail. Section 1107. Removal of Trustee. The Trustee may be removed at any time by an instrument or concurrent instruments in writing delivered to the Trustee and to the Issuer and signed by the owners of a majority in aggregate principal amount of Bonds outstanding hereunder. Section 1108. Appointment of Successor Trustee;:Cgmporarv_ Trustee. In case the Trustee hereunder shall resign or be removed, or be dissolved, or shall be in course of dissolution or liquidation, or otherwise become incapable of acting hereunder, or in case it shall be taken under the control of any public officer or officers, or of a receiver appointed by the court, a successor may be appointed by the owners of a majority in aggregate principal amount of Bonds outstanding hereunder, by an instrument or concurrent instruments in writing signed by such owners, or by their attorneys, in fact, duly authorized; provided, nevertheless, that in case of such vacancy the Issuer by an instrument executed and signed by its Mayor and attested by its Clerk under its seal, shall appoint a temporary trustee to fill such vacancy until a successor trustee shall be appointed by the Bondowners in the manner above provided; and any such temporary trustee so appointed by the Issuer shall immediately and without further act be superseded by the trustee so appointed by such Bondowners. Every such temporary trustee and every such successor trustee shall be a trust company or bank in good standing, having capital and surplus of not less than $20,000,000. Section 1109. Successor Trustee. Every successor or temporary trustee appointed hereunder shall execute, acknowledge and deliver to its predecessor and also to the Issuer an instrument in writing accepting such appointment hereunder, and thereupon such successor or temporary trustee, without any further act or conveyance, shall become fully vested with all the estates, properties, rights, powers, trusts, duties and obligations of its predecessor; but such predecessor shall nevertheless, on the written request of the Issuer or of its successor trustee, execute and deliver an instrument transferring to such successor all the estate, properties, rights, powers and trusts of such predecessor hereunder; and every predecessor trustee shall deliver all securities, moneys and any other property held by it as trustee hereunder to its successor. WPO:[TDICKSON.TAMARAC- SUNBELT] INDENTURE. 4 1 July 15, 1997 4:56pm C� C� • Should any instrument in writing from the Issuer be required by a successor trustee for more fully and certainly vesting in such successor the estates, rights, powers and duties hereby vested or intended to be vested in the predecessor trustee, any and all such instruments in writing shall, on request, be executed, acknowledged and delivered by the Issuer. The resignation of any trustee and the instrument or instruments removing any trustee and appointing a successor hereunder, together with all other instruments provided for in this Article shall, at the expense of the Issuer, be forthwith filed and/or recorded by the successor trustee in each recording office where the Indenture shall have been filed and/or recorded. Section 1110. Ri ht of Trustee to Pay Taxes and Qther Charges. In case the Issuer shall fail seasonably to pay or to cause to be paid any tax, assessment or governmental or other charge upon any part of the property herein conveyed, to the extent, if any, that the Issuer may be liable for same, the Trustee may pay such tax, assessment or governmental charge, without prejudice, however, to any rights of the Trustee or the Bondowners hereunder arising in consequence of such failure; and any amount at any time so paid under this Section, with interest thereon from the date of payment at the rate of ten percent (lot) per annum, shall be repaid by the Issuer upon demand, and shall become so much additional indebtedness secured by this Indenture, and the same shall be given a preference in payment over any of the Bonds and shall be paid out of the proceeds of revenues collected from the property herein conveyed, if not otherwise caused to be paid by the Issuer, but the Trustee shall not be under obligations to make any such payment unless it shall have been requested to do so by the owners of at least ten percent (lot) of the aggregate principal amount of the Bonds outstanding hereunder and shall have been provided with adequate funds for the purpose of such payment. Section 1111. Trustee Protected in Relying Upon Resolutions, etc. The resolutions, opinions, certificates and other instruments provided for in this Indenture may be accepted and relied upon by the Trustee as conclusive evidence of the facts and conclusions stated therein and shall be full warrant, protection and authority to the Trustee for the payment and withdrawal of cash hereunder. Section 1112. Trustee Which Has Resigned or Seen Removed Ceases to be Paying Agent. In the event of a change in the office of Trustee, if the Trustee is the Paying Agent, the former Trustee which has resigned or been removed shall cease to be Paying Agent. Section 1113. Pavincr A ent's Fees and ChaXcres. There shall be paid the standard and customary Paying Agent's fees and WPO:(TDICKSCN.TAMARAC- SUNBELT) INDENTURE. 4 2 July 15, 1997 4:56pm charges of the Paying Agent for handling the payment of the principal of, premium (if any) and interest on the Bonds, and funds sufficient to pay the same shall be deposited with the Paying Agent prior to the dates on which payments are required to be made on principal and interest. Section 1114. AAoointment of Co-TrMgt-eq or Separate Trustee. The Issuer and the Trustee shall have power to appoint and upon the request of the Trustee the Issuer shall for such purpose join with the Trustee in the execution of all instruments necessary or proper to appoint another corporation or one or more persons approved by the Trustee, either to act as co -trustee or co -trustees jointly with the Trustee of all or any of the property subject to the lien hereof, or to act as separate trustee or trustees of all or any such property, with such powers as may be provided in the instrument of appointment and to vest in such corporation or person or persons as such separate trustee or co -trustee any property, title, right or power deemed necessary or desirable. In the event that the Issuer shall not have joined in such appointment within fifteen days after the receipt by it of a request so to do the Trustee alone shall have the power to make such appointment. Should any deed, conveyance or instrument in writing from the Issuer be required by the separate trustee or co -trustee so appointed for more fully and certainly vesting in and confirming to him or to it such properties, rights powers, trusts, duties and obligations, any and all such deeds, conveyances and instruments in writing shall, on request, be executed, acknowledged and delivered by the Issuer. Every such co -trustee and separate trustee shall, to the extent permitted by law, be appointed subject to the following provisions and conditions, namely: (1) The Bonds shall be authenticated and delivered, and all powers, duties, obligations and rights conferred upon the Trustee in respect of the custody of all money and securities pledged or deposited hereunder, shall be exercised solely by the Trustee; and (2) The Trustee, at any time by an instrument in writing, may remove any such separate trustee or co -trustee. Every instrument, other than this Indenture, appointing any such co -trustee or separate trustee, shall refer to this Indenture and the conditions of this Article XI expressed, and upon the acceptance in writing by such separate trustee or co -trustee, it shall be vested with the estate or property specified in such instrument, jointly with the Trustee (except insofar as local law makes it necessary for any separate trustee to act alone), subject to all the trusts, conditions and provisions of this Indenture. Any such separate trustee or co -trustee may at any time, by an instrument in writing, constitute the Trustee as its WPO:[TDICKSON.TAMARAC-SUNSELT]INDENTURE, 4 3 July 15, 1997 4:56pm 11 • agent or attorney, to the extent authorized by law, to do all acts and things and exercise all discretion authorized or permitted by it, for and on behalf of it and its name. In case any separate trustee or co -trustee shall die, become incapable of acting, resign or be removed, all the estates properties, rights, powers, trusts, duties and obligations of the separate trustee or co -trustee shall vest in and be exercised by the Trustee until the appointment of a new trustee or a successor to such separate trustee or co -trustee. WPO:(TOICKSON.TAMARAC- SUNBELT) INDENTURE. Ju1y 15, 1997 4:56pm 44 P Gi 7 i S- ARTICLE XIT SUPPLEMENTAL INDENTURES AND AMENDMENTS TO THE LOAN AGREEMENTS Section 1201. Supplemental Indentures Not Requiring Consent of Bondowners. The Issuer and the Trustee may, from time to time, without the consent of or notice to the Bondholders, enter into such indentures supplemental hereto as shall not be inconsistent with the terms and provisions, hereof (which supplemental indenture shall hereafter form a part hereof), (a) to cure any ambiguity or formal defect or omission in this Indenture or in any supplemental indenture, or (b) to grant to or confer or impose upon the Trustee for the benefit of the Bondowners any additional rights, remedies, powers, authority, security, liabilities or duties which may lawfully be granted, conferred, or imposed; (c) to add to the covenants and agreements of, and limitations and restrictions upon, the Issuer in this Indenture or to waive other covenants, agreements, limitations and restrictions to be observed by the Issuer which are not contrary to or inconsistent with this Indenture as theretofore in effect; (d) to confirm, as further assurance, any pledge under, and the subjection to any claim, lien or pledge created or to be created by, this Indenture, of the Revenues of the Issuer from the Loan Agreement or of any other moneys, securities or funds; (e) to comply with the requirements of the Trust Indenture Act of 1939, as from time to time amended; (f) to authorize the issuance and sale of one or more series of Additional Bonds; or (g) to modify, alter, amend or supplement this Indenture in any other respect which is not materially adverse to the Bondholders and which does not involve a change described in clause (a), (b), (c), (d) or (e) of Section 1202 hereof and which, in the judgment of the Trustee, is not to the prejudice of the Trustee. Section 1202. Supplemental Indentures Requiring Consent of Bondowners. Subject to the terms and provisions contained in this Section, and not otherwise, the owners of more than fifty percent (50%) in aggregate principal amount of the Bonds then outstanding shall have the right, from time to time, anything contained in this Indenture to the contrary notwithstanding, to consent to and approve the execution by the Issuer and the Trustee of such indenture or indentures supplemental hereto as shall be deemed necessary and desirable by the Issuer for the purpose of modifying, altering, amending, adding to or rescinding, in any particular, any of the terms or provisions contained in this Indenture or in any supplemental indenture; provided, however, that nothing herein contained shall permit or be construed as permitting (a) an extension of the maturity of the principal of or the interest on any Bond issued hereunder, or (b) a reduction in the principal amount of any Bond or redemption WPO:(TDICXSON.TAMARAC- SUNBELT) INDENTURE, 5 Slily 15, 1997 4:56pm 12_q-)-/sue premium or the rate of interest thereon, or (c) the creation of any lien ranking prior to for on a parity with the lien of this Indenture on the Trust Estate, except as expressly permitted herein, or (d) a privilege or priority of any Bond or Bonds over any other Bond or Bonds or (e) a reduction in the aggregate principal amount of the Bonds required for consent to such supplemental indenture. Nothing herein contained, however, shall be construed as making necessary the approval of Sondowners of the execution of any supplemental indenture as provided in Section 1201 of this Article. If at any time the Issuer or the Company shall request the Trustee to enter into any supplemental indenture for any of the Purposes of this Section, the Trustee shall, at the expense of the requesting party cause notice of the proposed execution of such supplemental indenture to be mailed by first class mail to each owner at his address on the Bond registration book maintained by the Trustee. Such notice shall briefly set forth the nature of the proposed supplemental indenture and shall state that copies thereof are on file at the principal office of the Trustee for inspection by Bondowners. The Trustee shall not, however, be subject to any liability to any Bondowner by reason of its failure to publish or mail such notice, and any such failure shall not affect the validity of such supplemental indenture consented to and approved as provided in this Section. If the owners of not less than fifty percent (50k) in aggregate principal amount of the Bonds outstanding at the time of the execution of any such supplemental indenture shall have consented to and approved the execution thereof as herein provided, no owner of any Bond shall have any right to object to any of the terms and provisions contained therein, or the operation thereof, or to enjoin or restrain the Trustee or the Issuer from executing the same or from taking any action pursuant to the provisions thereof. Upon the execution of any such supplemental indenture, this Indenture shall be and be deemed to be modified and amended in accordance therewith. Section 1203. Amendments to the Loan Agreement. The Trustee may from time to time, and at any time, consent to any amendment, change or modification of the Loan Agreement for the purpose of curing any ambiguity or formal defect or omission or making any other change therein, which in the reasonable judgment of the Trustee is not to the prejudice of the Trustee or the holders of the Bonds. The Trustee shall not consent to any other amendment, change or modification of the Loan Agreement without the approval or consent of the holders of more than fifty percent (50%) in aggregate principal amount of the Bonds at the time outstanding. Section 1204. P ocedurts for Amendments. If at any time the Issuer or the Company shall request the Trustee's consent to WPO: [TOT CKSON.TAMARAC- SUNBELT] INDENTURE. JUIy 15, 1997 4:55pm 4 6 � S-7-ids a proposed amendment, change or modification requiring Bondholder approval under Section 1203, the Trustee, shall, at the expense of the requesting party, cause notice of such proposed amendment, change or modification to be mailed in the same manner as provided by Section 1202 hereof with respect to supplemental indentures. Such notice shall briefly set forth the nature of such proposed amendment, change or modification and shall state that copies of the instrument embodying the same are on file in the principal office of the Trustee for inspection by any interested Bondholder. The Trustee shall not, however, be subject to any liability to any bondholder by reason of its failure to mail such notice, and any such failure shall not affect the validity of such amendment, change or modification when consented to by the Trustee in the manner hereinabove provided. Section 120=. Rights_ of Company. Anything herein to the contrary notwithstanding, any Supplemental Indenture which affects any rights, powers and authority of the Company under the Security Documents, or requires a revision of the Security Documents, shall not become effective unless and until the Company shall have given its written consent. 0 • WPO:(TDICKSON.TAMARAC- SUNBELT) INDENTURE. July 15, 1997 4:56pm 47 ARTICLE XIII MISCELLANEOUS Section 1301. Consents, etc, of Bondowners. Any request, direction, objection or other instrument required by this Indenture to be signed and executed by the Bondowners may be in any number of concurrent writings of similar tenor and may be signed or executed by such Bondowners in person or by agent appointed in writing. Proof of the execution of any such request, direction, objection or other instrument or of the writing appointing any such agent and of the ownership of Bonds, if made in the following manner, shall be sufficient for any of the purposes of this Indenture and shall be conclusive if in favor of the Trustee with regard to any action taken by it under such request or other instrument, namely: The fact and date of the execution by any person of any such writing may be proved by the certificate of any officer in any jurisdiction that the person signing such writing acknowledged before him the execution thereof, or by any affidavit of any witness to such execution. Section 1302. Limitation gf Rights. With the exception of rights herein expressly conferred, nothing expressed or mentioned in or to be implied from this Indenture, or the Bonds issued hereunder, is intended or shall be construed to give to any person other than the parties hereto, and the owners of the Bonds secured by this Indenture, any legal or equitable rights, remedy or claim under or in respect to this Indenture or any covenants, conditions and provisions hereof being intended to be and being for the sole exclusive benefit of the parties hereto and the owners of the Bonds secured as herein provided. Section 1303. Severability. If any provisions of this Indenture shall be held or deemed to be or shall, in fact, be inoperative or unenforceable as applied in any particular case in any jurisdiction or jurisdictions or in all jurisdictions or in all cases because it conflicts with any provisions or any constitution or statute or rule of public policy, or for any other reason, such circumstances shall not have the effect of rendering the provision in question inoperative or unenforceable in any other case or circumstance, or of rendering any other provision or provisions herein contained invalid, inoperative or unenforceable to any extent whatever. The invalidity of any one or more phrases, sentences, clauses or paragraphs in this Indenture contained shall not affect the remaining portions of this Indenture or any part thereof. WPO:(TDICYSON.TAMARAC- SUNBELT) INDENTURE. July 15, 1997 4:56pm 4 8 Section 1304. Notice. Notices as required in this Agreement shall be considered delivered when posted in United States Mail, postage prepaid and addressed as set forth below (or at such other address as may have been provided by the party to all other parties hereto by proper notice): If intended for the Issuer: City of Tamarac, Florida 7525 N.W. 88th Ave. Tamarac, Florida 33321-2401 Attn: City Attorney If intended for the Trustee: First Union National Bank 200 S. Biscayne Blvd., 14th Floor Miami, Florida 33131 Attn: Corporate Trust Department If intended for the Underwriter: Greenwich Partners, Inc. One Pickwick Plaza, Suite 250 Greenwich, CT 06830 Section 1305. Figrida Subs,antive„Law Governs. This Indenture shall be considered to have been executed in the State and it is the intention of the parties that the substantive law of the State govern as to all questions of interpretation, validity and effect. Section 1306. Uniform Commercial Code. This Indenture is also a security agreement under the Uniform Commercial Code of the State. The Issuer hereby irrevocably appoints the Trustee as its lawful attorney in fact and agent to execute, on behalf of the Issuer, one or more financing statements and renewals thereof with respect to the security interest granted by this Indenture and, on its behalf to file such statements or renewals thereof signed by the Trustee alone in any appropriate public office. Section 1307. Counterparts. This Indenture may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. WPO:[TDICKSON.TAMARAC- SUNBELT] INDENTURE. 4 July 15, 1997 4:56pm C� • • �z r7-,5�:- 0 • IN WITNESS WHEREOF, the Issuer has caused these presents to be signed in its name and behalf by its Mayor and attested by its Clerk, and, to further evidence its acceptance of the trust hereby created, First Union National Bank, has caused these presents to be signed in its name and behalf by its duly appointed officer all as of the day and year first above written. ATTEST: WPO:(TAICKSON.TAMARAC-SUMELT)INCENTLTRE. Suly 15, 1997 4:56pm 50 CITY OF TAMARAC, FLORIDA By: FIRST UNION NATIONAL BANK By: EXHIB 0 IT A (Form of Bond) UNITED STATES OF AMERICA STATE OF FLORIDA CITY OF TAMARAC, FLORIDA INDUSTRIAL DEVELOPMENT REVENUE BOND SERIES 1997 (SUN BELT PRECISION PRODUCTS, INC., PROJECT) Registered Number Cusip: Interest Commencement Date: Interest Rate: Maturity Date: Registered Owner: Principal Amount: Dollars KNOW ALL PERSONS BY THESE PRESENTS: That the Cityof Tamarac Florida a public p lic body corporate and politic of the State of Florida (the "Issuer") for value received, promises to pay to the Registered Owner stated above, in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, the Principal Amount (stated above) on the Maturity Date (stated above), and to pay in like coin or currency, interest on said Principal Amount from the Interest Commencement Date (stated above) until paid as follows: Interest on the unpaid Principal Amount shall be payable semiannually on 1 and 1 of each year, beginning on 1, 199, and shall accrue from the Interest Commencement Date (stated above) at the Interest Rate (stated above) until the Issuer's obligation with respect to payment of such Principal Amount shall be discharged. Payment of interest shall be by check or draft of First Union National Bank, Miami, Florida, as Trustee and Paying Agent (the "Trustee"), to the Registered Owner as shown on the bond registration book of the Issuer maintained by the Trustee on the fifteenth day preceding the interest payment date (whether or not a business day). Payment of principal shall be made at the principal office of the Trustee in Miami, Florida, upon due surrender of this Bond on the Maturity Date (stated above) if not sooner called for redemption. WPO:(TDICKSON.TAMARAC-SUNEELTIINDENTURS. 1 July 15, 1997 4:S6pm This Bond is one of an authorized issue of bonds of the Issuer in the Principal Amount (stated above) (the "Bonds") which are issued for the purpose of providing funds for the making of a loan to Sun Belt Precision Products, Inc. (the "Company") to finance a certain industrial enterprise within the State of Florida (the "Project"). The Bonds are all issued under and are all equally and ratably secured and entitled to the protection given by a Trust Indenture (the "Indenture") dated as of August 1, 1997, duly executed and delivered by the Issuer to the Trustee. Reference is hereby made to the Indenture and all indentures supplemental thereto for the provisions, among others, with respect to the nature and extent of the security, the issuance of additional series on a parity of security with the Bonds, the rights, duties and obligations of the Issuer, the Trustee and the Registered Owners of the Bonds, and the terms upon which the Bonds are issued and secured, The Bonds are secured by a mortgage lien on and perfected security interest on the Project. The Bonds of are secured by a perfected security interest in the equipment financed with Bond proceeds. The payment of the principal of and interest on this Bond is secured by a Guaranty Agreement (the "Guaranty"), executed by Interplex Industries, Inc. in favor of the Issuer and the Trustee. Reference is hereby made to the Guaranty for provisions governing the scope of that Guaranty. This Bond is issued wit h the intent that the laws of the State of Florida will govern its construction. THESE BONDS ARE ISSUED UNDER THE PROVISIONS OF THE FLORIDA INDUSTRIAL DEVELOPMENT FINANCE ACT, CHAPTER 159, PART II, FLORIDA STATUTES, AS AMENDED (THE "ACT',), AND THE ISSUER IS PROHIBITED FROM PAYING ANY AMOUNTS DUE WITH RESPECT TO THE BONDS EXCEPT FROM MONEYS RECEIVED BY THE ISSUER PURSUANT TO THE LOAN AGREEMENT, THE MORTGAGE OR THE GUARANTY. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE ISSUER OR THE STATE OF FLORIDA OR OF ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON THE BONDS, AND THE HOLDER OF THIS BOND SHALL HAVE NO RIGHT TO COMPEL ANY EXERCISE OF THE TAXING POWER OF THE ISSUER OR THE STATE OF FLORIDA OR ANY POLITICAL SUBDIVISION THEREOF TO ENFORCE SUCH PAYMENT. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Indenture until the Certificate of Authentication hereon shall have been signed by the Trustee. The Issuer hereby covenants that it has been duly organized in accordance with law; and that all acts, conditions and things required to be done precedent to and in the issuance of this Bond WPO:ITDICKSON.TAMARAC- SUNBELT] INDENTURE. Ju1y 15, 1997 4:56pm have existed, have happened, and have been performed as required by law. 0 (Reference is hereby made to further provisions of this Bond on the reverse side hereof which have the same effect as if set forth in this place.) IN WITNESS WHEREOF, the Issuer has caused this Bond to be executed in its name by its Mayor and City Clerk, thereunto duly authorized, with the manual or facsimile signature of the Mayor and the manual or facsimile signature of the City Clerk, and the corporate seal to be impressed or imprinted, all as of the 1st day of , 199_. CITY OF TAMARAC, FLORIDA ATTEST: By: MAYOR (facsimile) facsimile City Clerk • WPO:[TDICKSON.TAMARAC-SUNBELT)INDENTURE. July 15, 1997 4:56pm 3 (Back of Bond) The Bonds are not general obligations of the Issuer, but are special obligations payable solely from revenues derived from the Project and payments under the Guaranty. The Project consists of certain land, buildings, improvements, equipment and facilities which have been mortgaged to the Issuer by the Company under the terms of a Loan Agreement (the "Loan Agreement"), which provides for the loan and repayment of moneys in such amounts as shall be sufficient to pay the principal of and interest on the Bonds as the same become due. Provision has been made in the Loan Agreement for the loan repayments to be made directly to the Trustee and deposited in a special account of the Issuer designated "Bond Fund" (the "Bond Fund"). Certain Project revenues (including particularly repayments of the loan under the Loan Agreement) have been duly pledged by the Indenture to the payment of the principal of and interest on the Bonds. The Bonds do not constitute an indebtedness of the Issuer within the meaning of any constitutional or statutory limitation. The owner of this Bond shall have no right to enforce the provisions of the Indenture or to institute action to enforce the covenants therein, or to take any action with respect to any event of default under the Indenture, or to institute, appear in and defend any suit or other proceeding with respect thereto, except as provided in the Indenture. In certain events, on the conditions, in the manner and with the effect set forth in the Indenture, the principal of all the Bonds issued under the Indenture and then outstanding may be declared and may become due and payable before the stated maturity thereof, together with accrued interest thereon. Modifications or alterations of the Indenture, or of any indenture supplemental thereto, may be made only to the extent and in the circumstances permitted by the Indenture. The Bonds shall be subject to redemption prior to maturity as follows: (1) On any interest payment date, in whole, at the option Of the Issuer at the direction of the Company, from the proceeds of insurance in the event of major damage or destruction of the Project pursuant to the provisions of the Loan Agreement, or from legal curtailment of the use and occupancy of all or substantially all of the Project for any reason other than condemnation. If called for redemption upon the occurrence of any of the events described in the preceding sentence, this Bond shall be redeemed in whole, in the manner provided in this Bond and the Indenture, at one hundred percent (10OU of the principal . amount thereof, plus accrued interest to the date of redemption. WPO:(TDICKSON.TAWAC- SUNBELT] INDMUZZ , July 15. 1997 4:56pm 4 (2) On any interest payment date, in whole, but not in part, from the proceeds of condemnation of all or substan::ially all of the Project at a redemption price equal to one hundred percent (100V of the principal amount being redeemed plus accrued interest to the redemption date. (3) At any time, in whole, but not in part, within 60 days following a Determination of Taxability at a redemption price equal to one hundred three percent (103%) of the principal amount being redeemed plus accrued interest to the redemption date. (4) At any time, in whole, but not in part, at the direction of the Issuer, if the Issuer shall notify the Trustee in writing that an event of default has occurred under the Loan Agreement (other than based on a Determination of Taxability) and that it requests a redemption of the Bonds at a redemption price equal to one hundred percent (100U of the principal amount being redeemed plus accrued interest to the redemption date. (5) From and after 1, , the Bonds (or any portion thereof in $5,000 multiples) will be subject to redemption prior to maturity, at the option of the Issuer at the direction of the Company, in whole or in part, on any interest payment date, at the prices set forth below, plus accrued interest to the date of redemption. If less than all the Bonds outstanding are called, Bonds will be called in inverse order of maturity (and by lot within a maturity in such manner as the Trustee may determine). Redemption Price Red!2Mtion Dates Expressed a_M a psrcentaae through through and thereafter 102W 101k 100% Notice of redemption shall be mailed by registered or certified mail to the registered owner of the Bonds addressed to such registered owner at his registered address and placed in the mails not less than thirty (30) days prior to the date fixed for redemption. Each notice shall specify the numbers and the maturities of the Bonds being called and the date on which they shall be presented for payment. After the date specified in such notice, the Bond or Bonds so called will cease to bear interest provided funds for their payment have been deposited with the Trustee, and, except for the purpose of payment, shall no longer be protected by the Indenture and shall not be deemed to be outstanding under the provisions of the Indenture. (END OF FORM] WPO.CTDICKSON.TAMARAC-$UNBELT)INDENTURE. July 15, 1997 4;56pm • • 0 (Form of Trustees Certificate) C] TRUSTEE'S CERTIFICATE OF AUTHENTICATION This Bond is one of the bonds described in and issued under the provisions of the within mentioned Indenture. FIRST UNION NATIONAL BANK Miami, Florida, as Trustee Date of Registration and Authentication: By (Authorized Signature) (FORM OF ASSIGNMENT) FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto (Printed or Typewritten Name and Address of Transferee and social security or other Identifying Number) the within Bond and all rights thereunder and hereby appoints attorney -in -fact to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: Signature Notice: The signature to this assignment must correspond with the name as it appears on the face of the within Bond in every particular. Signature Guaranteed By (Name of Bank) By: Title: WPO:[TDICKSON.TAMARAC-SLNBELT)INDENTURS. July 15, 1997 4:56pm 6 -R-97-/5S- • LOAN AGREEMENT BETWEEN CITY OF TAMARAC, FLORIDA AND SUN BELT PRECISION PRODUCTS, INC., RELATING TO CITY OF TAMARAC, FLORIDA INDUSTRIAL DEVELOPMENT REVENUE BONDS SERIES 1997 (SUN BELT PRECISION PRODUCTS, INC., PROJECT) Dated as of August 1, 1997 WPO.ETDICXSON.TAMARAC-SUNDELTILOANAGMT. July 1S, 1997 4:23pm EXHIBIT "B" TEMP RESQ *7948 2-9�_'�s TABLE OF CONTENTS Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Recitals . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . 1 ARTICLE I TERMS OF THE LOAN . . . . . . . . . . . . 4 Section 1.1 Agreement to Make Loan . . . . . . 4 Section 1.2 Issuance of Bonds . . . . . . . . . . . . 4 Section 1.4 Trust Indenture . . . . . . . . . . . . . 4 Section 1.5 Prepayment of Note . . . . . . . . . . . 4 Section 1.6 Payments to be Made . . . . . . . . . . . 4 Section 1.7 Trustee's Fee . . . . . . . . . . . . . . 5 Section 1.8 No Defense or Set-off -- Unconditional Obligation . . . . . . . . . . . . . . . 5 ARTICLE II SECURITY . . . . . . . . . . . . . . . . . . . 6 Section 2.1 Security for the Loan . . . . . . . . . . 6 Section 2.2 Filing of Security Documents . . . . . . 6 Section 2.3 Assignment of Note and Security Documents . . . . . . . . . . . . . . . . 6 ARTICLE III REPRESENTATIONS AND WARRANTIES . . . . . . . . 7 Section 3.1 Representations and Warranties of the Issuer . . . . . . . . . . . 7 Section 3.2 General Representations and Warranties of the Company . . . . . . . . . . . . . 7 ARTICLE IV THE PROJECT . . . . . . . . . . . . . . . . . 12 Section 4.1 Acquiring, Constructing and Equipping the Project . . . . . . . . . . . . . . . 12 Section 4.2 Requirements for Disbursement . . . . . . 12 Section 4.3 Form of Draw Requests . . . . . . . . . . 13 Section 4.4 Subsequent Actions of the Company. . . . 14 Section 4.5 Review upon Completion . . . . . . . . . 14 Section 4.6 Company Required to Pay in Event Loan Account Insufficient . . . . . . . . . . 15 Section 4.7 Modification of Plans and Specifications . . . . . . . . . . . . . 15 ,ARTICLE V COVENANTS AND AGREEMENTS . . . . . . . . . . . 17 Section 5.1 General Covenants of the Company . . . . 17 Section 5.2 Damage to or Destruction of Project . . . 18 Section 5.3 Prepayment Upon Major Damage or Destruction . . . . . . . . . . . . . 20 Section 5.4 Condemnation of the Project . . . . . . . 21 WPO:[TDICKSON.TAMARAC-SUNHELTjLOANAGMT. i July IS, 1997 4:23pm r.5'7-ice Section 5.5 Removal or Dispositions of Property . . . Section 5.6 Compliance with Local Law Section 5.7 Maintenance of Corporate Existence . . . ARTICLE VI CONDITIONS OF LENDING . . . . . . . . . . . . Section 6.1 Conditions Precedent to Making Loan . . . Section 6.2 Company's Closing Certificate . . . . . . ARTICLE VII TAX EXEMPTION . . . . . . . . . . . . . . . . Section 7.1 Maintenance of Tax -Exempt Status of Bonds . . . . . . . . . . . . . . . . . . Section 7.2 Determination of Taxability . . . . . . . ARTICLE VIII EVENTS OF DEFAULT . . . . . . . . . . . . . . Section 8.1 Events of Default . . . . . . . . . . . . Section 8.2 Remedies on Default . . . . . . . . . . . ARTICLE IX PREPAYMENTS FOR REDEMPTION OF BONDS Section 9.1 Optional Prepayments for Full Redemption . . . . . . . . . . . . . . . Section 9.2 Further Option to Prepay . . . . . . . . Section 9.3 Prepayment Upon Determination of Taxability . . . . . . • . . , Section 9.4 Mandatory Prepayment on Condemnation . . ARTICLE X RESERVED . . . . . . . . . . . . . . . . . . . ARTICLE XI MISCELLANEOUS . . . . . . . . . . . . . . . . Section 11.1 No Waiver of Rights . . . . . , . . . . Section 11.2 Day for Payment . . . . . . . . . . . . . Section 11.3 Notices . . . . . . . . . . . . . . . . Section 11.4 Payment of Expenses . . . . . . . . . . . Section 11.5 Accounting Terms . . . . . . . . . . . . Section 11.6 Binding Agreement . . . . . . . . . Section 11.7 Choice of Law . . . . . . . . . . . . . . Section 11.8 Agreement to Remain in Effect . . . . . . Section 11.9 Amendments . . . . . . . . . . . . . . . Section 11.10 Entire Agreement . . . . . . . . . . . . ARTICLE XII NOTICE . . . . . . . . . . . . . . . . . . . . Section 12.1 Addresses for Notice . . . . . . . . . . Exhibit A Mortgage Exhibit B Promissory Note Exhibit C Requisition WPO:MICICSON. TAMARAC- SUNBELT] LOANAGMT. July 15, 1997 4:23pm 1 1 21 22 22 24 24 24 25 25 25 26 26 27 28 28 28 28 28 hX*7 411 30 30 30 30 31 31 31 31 31 31 ky, �JPa LOAN AGREEMENT 0 THIS LOAN AGREEMENT dated as of August 1, 1997 (the "Agreement"), by and between the CITY OF TAMARAC, FLORIDA (the "Issuer") and SUN BELT PRECISION PRODUCTS, INC. (the "Company"), W I T N E S S E T H: That the parties hereto, intending to be legally bound hereby, and for and in consideration of the premises and the mutual covenants hereinafter contained, do hereby covenant, agree and bind themselves as follows: provided, that any obligation of the Issuer created by or arising out of this Agreement shall never constitute a debt or a pledge of the faith and credit or the taxing power of the Issuer or any political subdivision or taxing district of the State of Florida but shall be payable solely out of the Trust Estate (as defined in the Indenture), anything herein contained to the contrary by implication or otherwise notwithstanding:; NOW, THEREFORE, in consideration of the premises and of the mutual promises herein set forth, the Issuer and the Company agree as follows: DEFINITIONS The words and terms as used in this Agreement shall have the meaning given in the Indenture (defined below), and if not defined therein, shall have the following meanings: "Act" - Chapter 159, Part II, Florida Statutes, and other applicable provisions of law. "Agreement" - This Loan Agreement dated as of August 1, 1997, between the Issuer and the Company. "Architect" _ or such other architect acceptable to the Company and the Underwriter. "Authorized Representative" - With respect to the Company, the President of the Company or such other person or persons as the President shall designate in writing to the Issuer and the Trustee. "Bonds" - The Industrial Development Revenue Bonds, Series 1997 (Sun Belt Precision Products, Inc., Project) dated as of August 1, 1997. "Code" - The Internal Revenue Code of 1986, as amended from time to time, including, when appropriate, the statutory WPO:jTDICKSDN.TAM"AC-SUNBELT)LDANAGMT. July 15, 1997 4:23pm • predecessor of the Code, and all applicable regulations thereunder whether proposed, temporary or final, including regulations issued and proposed pursuant to the statutory predecessor of the Code, and, in addition, all official rulings and judicial determinations applicable to the Bonds under the Code and under the statutory predecessor of the Code and any successor provisions to the relevant provisions of the Code or regulations. "Company" - Sun Belt Precision Products, Inc., a Florida Corporation. "Contractor" - or such other contractor acceptable to the Company and the Underwriter. "County" - Broward County, Florida. "Determination of Taxability" - Any determination, decision or decree made in regard to Section 103 of the Code (or any other relevant section) by the Commissioner or any District Director of Internal Revenue, or, if there is an appeal from such determination by a Commissioner or District Director, when a final administrative or judicial determination has been made, or by a final decision of any court of competent jurisdiction, that the interest payable on the Bonds is includable in the gross income of the holders of the Bonds for federal income tax purposes (other than a holder who is a "substantial user" or "related person" as such are defined in the Code) by virtue of the occurrence of an Event of Taxability. "Event of Taxability" - The occurrence of any circumstance under which the Determination of Taxability shall be found to have occurred, with the result that interest payable on the Bonds becomes includable in the gross income of the holders of the Bonds for federal income tax purposes (other than a holder who is a "substantial user" or "related person" as such are defined in the Code). "Improvements" - Those improvements subject to a first lien by the Company pursuant to this Loan Agreement. "Indenture" - The Trust Indenture dated as of August 1, 1997, executed between the Issuer and the Trustee securing the Bonds. "Issuer" - The City of Tamarac, Florida, a public body corporate and politic of the State of Florida created by the Act. "Loan" - The Loan from the Issuer to the Company which is evidenced and governed by this Loan Agreement. WPO:(TDICKSON.TAMAPAC- SUNBELT] LOANAGMT. 2 JU1y 15, 1997 4:23pm -9 . `1 / I / 1`1 "Mortgage" - The Mortgage (Including Security Agreement, Assignment of Rents and Leases, and Future Advances) given by the Company to the Issuer to secure the Loan under this Loan Agreement, and thereafter securing the repayment of the Bonds, and appearing of record in the office of the Clerk of the Circuit Court of the County in Florida in which the Project is located, a copy of which are attached as Exhibit "A" to this Loan Agreement. "Mortgaged Property" - All of the properties, whether real or personal, tangible or intangible, mortgaged and pledged to the Issuer under the Loan Agreement and the Mortgage, including the Property, the Improvements and the Personal Property. "Nontaxable Rate" - The original rate on the Bonds before the occurrence of an Event of Taxability. "Note" - The promissory note executed and delivered by the Company to the Issuer pursuant to the terms of this Loan Agreement, a copy of which is attached to this Loan Agreement as Exhibit "B" and.which is secured by the Mortgage. "Personal Property" - Any personal property obtained with proceeds of the Loan and securing the Loan by means of a perfected security interest in the property. "Prime Rate of Interest" - That rate which shall be established by the Trustee from time to time as its Prime Rate of interest. "Principal Amount" - The principal amount of the Bonds. "Project" - The improvements, equipment and facilities being financed out of the proceeds of the Bonds, which financing includes all other expenses in connection therewith, including, without limitation, architectural, engineering and legal fees, construction interest, and the cost of issuing the Bonds. "Property" - The real property in the State of Florida, described on Exhibit "A" of the Mortgage which is Exhibit "A" to this Loan Agreement. "Security Documents" - Those documents which give the liens or security instruments set out in Article II of this Loan Agreement. "State" - The State of Florida. "Trustee" - The Trustee for the time being, whether original or successor, with the original Trustee being First Union National Bank of Florida, Miami, Florida. The Trustee is also the paying agent and registrar. WPO':[TDICKSON.TAMAIiAC-SUNB$LT]LOANAGMT. 3 July 15, 1997 4:23pm • 0 C� 1� .07 / 9 S ARTICLE I TERMS OF THE LOAN Section 1.1 Actreement to Make Loan. Subject to the terms and conditions contained herein, the Issuer agrees to make the Loan to the Company in the Principal Amount, for the purpose of providing financing for expenses incurred and to be incurred by the Company for the Project, which Project is located on real property situated in the State and more particularly described on Exhibit "A" to the Mortgage which is attached hereto as Exhibit "A." Section 1.2 Issuance of Bonds. In order to obtain funds for the making of the Loan, the Issuer will issue the Bonds in the Principal Amount, the proceeds of which will be loaned to the Company for the purpose of financing the Project, and for other necessary and related expenses, including a portion of the costs of issuance of the Bonds (including, without limitation, the cost of printing the Bonds and the official statement, if any, and related legal, accounting and other professional expense, and the obtaining of any necessary or desirable credit enhancement). Section 1.3 Promissory Note. The Loan shall be evidenced by the Note in the Principal Amount in substantially the form of Exhibit "B" annexed hereto. The Note shall be dated the date of its issuance and shall be payable to the Issuer (as hereinafter provided) as therein set forth. Section 1.4 TTx}jst Indenture. The Issuer and the Company acknowledge that the Indenture has been or will be executed between the Issuer and the Trustee. Section 1.5 Prepayment of Note. The Company shall have the right to prepay the Note, in whole or in part, provided that such payments shall only be made as and in the same amounts as the Bonds may be prepaid or redeemed prior to maturity, in accordance with the terms of the Indenture, which Indenture the Company acknowledges that it has approved in the form finally executed and delivered to the Trustee by the Issuer. Section 1.6 Payments to be Made. All payments due to the Issuer hereunder and under the Note or under the Security Documents on account of the Loan or otherwise shall be made to the Trustee, at its designated office in Miami, Florida, as and when due. When the Note is paid in full, and when the Bonds are fully paid and discharged and there are no other obligations outstanding to or in favor of the Issuer, the Issuer shall cancel and return the Note to the Company, and cause the lien of the WPO:[TDICKSON.TAMARAC-5UN13ELTILOANAGMT. July 15, 1997 4:23pm 4 Mortgage and Indenture to be released and all security interests to be terminated. 0 Section 1.7 Trustee's Fee. In addition to the payments required hereunder and under the Note, the Company will also pay directly to the Trustee all fees and charges, and other expenses, properly payable to the Trustee for its services as Trustee and Paying Agent as provided in the Indenture. Section 1.8 No Defense or Set-off -- Unconditional Obligation. The obligations of the Company to make the payments required in this Article I and to perform and observe the other agreements on its part contained herein shall be absolute and unconditional, irrespective of any defense or any right of set- off, recoupment or counterclaim it might otherwise have against the Issuer or the Trustee, and the Company shall pay absolutely during the term of this Agreement the payments to be made on account of the Loan and all other payments required hereunder free of any deductions and without abatement, diminution or set- off; and until such time as the principal of and premium, if any, and interest on the Bonds shall have been fully paid, or provision for the payment thereof shall have been made in accordance with the Indenture, the Company: (i) will not suspend or discontinue any payments provided for in this Agreement or the Note; (ii) will perform and observe all of its other agreements contained in this Agreement; and (iii) will not terminate this Agreement for any cause, including, without limiting the generality of the foregoing, failure to complete the Project, the occurrence of any act or circumstances that may constitute failure of consideration, destruction or damage to the Project, commercial frustration of purpose, any change in the tax laws of the United States of America or the State or any political subdivision of either or them, or a failure of the Issuer or the Trustee to perform or observe an agreement, whether express or implied, or any duty, liability or obligation arising out of or connected with this Agreement or the Indenture. • WPO:[TDICXSON.TAMARAC-SVNHELT)LOANAGMT. 5 July 15, 1997 4:23pm ARTICLE II SECIIRITY Section 2.1 acurity_for the Loan. In order to induce the Issuer to make the Loan, the Company agrees that all of the obligations of the Company hereunder and under the Note shall be secured by the following liens or security instruments given pursuant to the terms of the security documents described below (the "Security Documents"): (i) A first lien mortgage given by the Company and creating a lien on the Mortgaged Property substantially in the form of Exhibit "A" hereto. (ii) A guaranty from Interplex Industries, Inc. to the Trustee and the Issuer as provided in the Guaranty. Section 2.2 Filing ,of„Security _ Documents. The Company will cause the Security Documents to be duly filed, refiled, recorded and rerecorded at its sole cost and expense, prior to the making of the Loan, or as soon as practicable thereafter, in all places necessary and cause all other necessary filings or recordings to be made (including, without limitation, the filing . of Uniform Commercial Code financing statements) in order to preserve and protect the liens or security interests of the Issuer in the property mortgaged or assigned therein and will perform each and every term, covenant, condition and agreement contained in the Note and the Security Documents. • The Company agrees to execute additional documents on reasonable request of the Issuer or the Trustee. Section 2.3 Assignment of Note and Security Documents. The Company acknowledges that the Note and the Security Documents, and any documents or instruments delivered thereunder, will be assigned or delivered to the Trustee as security for the Bonds, and by execution of this Agreement consents thereto. WPO:(TDiCSSON.TAMARAC-SUNSELT)LOANAGMT. July 15, 1997 4:23pm 6 ARTICLE III REPRESENTATIONS AND WARRANTIES Section 3.1 Representations and Warranties of the Issuer. The Issuer represents and warrants as follows: (a) The Issuer is duly organized and existing under the laws of the State and has full power and authority to enter into this Agreement. (b) The making and performance of this Agreement has been duly authorized by all necessary action of the governing board of the Issuer, and does not contravene any law, regulation or decree or any contractual restriction binding on the Issuer. Section 3.2 General Representations and Warranties of the Co=anv. The Company represents and warrants as follows: (a) The Company is duly organized and existing under the laws of the State of Florida and has full power and authority to enter into this Agreement. (b) The making and performance of this Agreement has been duly authorized by all necessary action of the Board of Directors or appropriate governing body of the Company, and does not contravene any law, regulation or decree or any contractual restriction binding on the Company. (c) The Company is or will be the owner of the Mortgaged Property which shall be free and clear of all mortgage, liens, charges and encumbrances, which constitute a lien or charge against its property, real or personal, tangible or intangible, except those described in the Security Documents (except for such liens as will be waived or discharged at the time of the making of the Loan). (d) The making and performance of this Agreement, the Note, the Security Documents, and each and every other document required to be delivered under Article II hereof, has received all necessary governmental approvals, and does not contravene any law, regulation or decree or any contractual restriction (other than those which shall be waived or discharged at the time of the making of the Loan) binding on or affecting the Company. (e) This Agreement, the Note, the Security Documents to which the Company is a party and each and every other document required to be delivered by the Company under Article II hereof, when duly executed and delivered for value, will be legal and binding obligations of the Company, enforceable in accordance WPO:(TDICIC50N.TAMARAC- SUNBELT] LOANAGMT. 7 July 15, 1997 4:23pm C i'7-r5._ with their respective terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors' rights generally. (f) Except as disclosed in the opinion of Company's counsel, there are no pending or threatened actions or proceedings before any court or administrative agency which may materially adversely affect the financial condition or operations of the Company. (g) The financial statements of the Company at December 31, 1996, correctly and accurately set forth its financial condition as of such date to the best of the Company's knowledge, and since such date there have been no material adverse changes in such condition. (h) The Company is not in default under any provision of any lease or rental agreement. (i) The Company is not in default under the terms of any instrument or undertaking with respect to its obligations to repay any borrowed money. (j) The Company is not aware of any claim, or purported claim, of any laborer, materialman, contractor or other person who might assert a lien against the Mortgaged Property by reason of the construction or other improvement, other than those shown on the title commitment of the approved title insurance company, which shall be fully paid and satisfied from the proceeds of the Loan. (k) No part of the proceeds of the Loan have been, or will be used, for construction, renovation, or repair to any property of the Company other than the Mortgaged Property. (1) Estimated Project costs have been determined in accordance with sound engineering and accounting principles, and the Company estimates that all of the proceeds of the Bonds (exclusive of accrued interest, if any, paid by the original purchasers thereof) will be expended to pay or reimburse such Project costs. Section 3.3 Tgx Representations and Warranties of the Company. The Company represents and warrants as follows: (a) Ninety-five percent (95"s) or more of the net proceeds (within the meaning of Section 144(a)(1) of the Code and regulations thereunder) from the sale of the Bonds will be expended for Project costs which constitute proper costs of land or property of a character subject to the allowance for depreciation, or which will be, for federal income tax purposes, WPO;[TDICKSON.TAMARAC-SUNHELTILOANAGMT. July 15, 1997 4:23pm 8 chargeable to the Project's capital account or would be so chargeable either with a proper election by Company (for example, under Section 266 of the Code) or but for a proper election by Company to deduct such amounts, and which were paid or incurred by the Company on or after December 28, 1996. (b) The Company intends to utilize or cause the Project to be utilized as a manufacturing facility within the meaning of Section 144(a) of the Code. (c) No changes shall be made in the Project and no actions will be taken by the Company which in any way affect the qualification of the Project for financing under the Act, or impair the exemption of interest on any of the Bonds from federal income taxation. (d) As of the date of delivery of this Agreement, there are no outstanding obligations of any state, territory or possession of the United States, or any political subdivision of the foregoing or of the District of Columbia the proceeds of which have been or are to be used primarily with respect to facilities located within the jurisdictional limits of the County within which the Project is located and which are to be used primarily by the Company (including any person related to the Company within the meaning of Section 144(a)(3) of the Code), except as follows: None. (e) The representations contained in subsection (d) above also apply to facilities which are either contiguous to or integrated with the facilities being financed out of proceeds of the Bonds within the meaning of Section 144(a) of the Code and separated from such facilities by a single political border (state, county or municipal or a common line therefor), regardless of where located. (f) Neither the Company nor a "related person" (as that term is defined in Section 144(a)(3) of the Code) is or is expected to be the principal user of any facilities financed by industrial development bonds that were or are to be sold: (i) at substantially the same time as the Bonds, and under a common plan of marketing with the Bonds, and at substantially the same rate of interest as the Bonds. WPO:(TDICKSON.TAMARAC-SUNDELT]LOANAGMT. July 15, 1997 4:23pm r� (g) The average maturity of the Bonds does not exceed 120%- of the average reasonably expected economic life of the Project as determined under Section 147(b) of the Code. (h) As of the date of issuance of the Bonds, the sum of the (i) outstanding bonds identified in subsection (d) above, the proceeds of which were to be used with respect to the Project or other facilities located in the County of the Project or contiguous to or integrated with the Project or to any such facility and the principal user of which is or will be the Company or one or more related persons, (ii) the aggregate amount of "capital expenditures" (within the meaning of Section 144(a)(4) of the Code) with regard to the Project or such other facilities paid or incurred during the period beginning three years before the date of the issuance of the Bonds (and financed otherwise than out of the proceeds of the Bonds or the other outstanding principal amount of bonds identified in (d) above) and (iii) the aggregate authorized face amount of the Bonds, is or will be less than $10,000,000. (i) The Company covenants that no action will be taken or permitted or caused to be taken or permitted that will cause the $10,000,000 capital expenditures limit set forth in Section 144(a)(4) of the Code to be exceeded. (j) None of the proceeds of the Bonds will be used (i) as working capital or (ii) to finance inventory or all or any portion of any residential real property for family units as described in Section 144(a)(5) of the Code. (k) The Company will not use any of the funds provided by the Bonds in such manner as to take or omit to take any action which would impair the exemption of interest on the Bonds for federal income taxation. (1) None of the proceeds of the Bonds will be expended for a golf course, country club, massage parlor, tennis club, skating facility, racquet sports facility, hot tub facility, suntan facility, racetrack facility, airplane, sky box, private luxury box, gambling facility, any store the principal business of which is the sale of alcoholic beverages for consumption off premises, or health club facility. Not more than 25k of the proceeds of the Bonds will be used to provide a facility of which, during the term of this Agreement, the primary purpose is retail food and beverage service, automobile sales or service or the provision of recreation or entertainment. (m) Neither the Company nor any related person is the. "owner" or "principal user" of facilities financed by "private activity bonds" (all within the meaning of Section 141 of the Code) collectively in excess of $40,000,000 in outstanding WPO:(TDICKSON.TAMARAC-SUNHBLT)LOANAGMT. 1 0 July 15, 1997 4:23pm gz �'T, ,s principal amount (including the principal amount of the Bonds) and the Company will not permit any person to own or become a principal user of the Project who would cause the $40,000,000 limitation imposed by Section 144(a)(10) of the Code to be exceeded for the three-year period beginning on the date the Project is first placed in service. (n) None of the proceeds of the Bonds will be applied to acquire existing buildings or used equipment or facilities (equipment or facilities the original use of which did not commence with the Company) without the written consent of the Issuer. (o) Less than twenty-five percent (25k) of the net proceeds of the Bonds will be used (directly or indirectly) for the acquisition of land (or an interest therein). (p) The Project is not a part of another building, a shopping mall, or a strip of offices, stores or warehouses using substantial common facilities not owned or used by the Company and any related person (as defined in Section 144(a)(3) of the Code). (q) No more than two percent (2k) of Bond proceeds will be used to pay issuance costs in accordance with Section 147(g) of the Code. All of the above representations and warranties shall survive the making of this Agreement and the closing of the Loan: WPO:(TOICKSON.TAMARAC-SANBELTILOANAMC- 1 1 July 15, 1997 4:23pm E �J 0 • ARTICLE IV THE PROJECT Section 4.1 Ac irin -Constructing and E i in the Project. The Company shall cause the Project to be acquired, constructed and equipped with all reasonable dispatch in order to effectuate the purposes of the Act in accordance with the proposed Project plans and specifications filed with the Trustee. The Company shall have the sole responsibility under this Agreement for the acquiring, constructing and equipping of the Project and may perform the same itself or through its agents, ana may maxe or issue sucn instructions, and in genera other things as it may in i or advisable for the acquix Project and for fulfilling The Company shall have full this Agreement to supervise all aspects of the acquirin Project, except as set fort property of the Company and or interest therein except that the Improvements to be Bonds shall be wholly const in Exhibit "A" to the Mortcr contracts, oraers, receipts and 1 do or cause to be done all such is sole discretion consider requisite ing, constructing and equipping of the its obligations under this Article IV. authority and the sole right under and control, directly or indirectly, ;, constructing and equipping of the z herein. The Project shall be the the Issuer shall have no right, title is created hereby. The Company agrees financed from the proceeds of the -ucted on the Real Property described tae attached hereto as Exhibit "A_ Section 4.2 Recruirements for Disbursement. Prior to the disbursement of any of the proceeds of the Loan for payment or reimbursement of Project costs (the undisbursed balance of the Loan being referred to herein as the "Loan Account"), the Trustee shall have received the following, unless specifically waived by the Underwriter or unless permission has been granted in writing by the Underwriter for substituted documents or performance: [This list will be shortened as items are delivered prior to closing or not required by Underwriters.] (a) a construction contract with for completion of the Improvements with an enforceable completion date of no later than , 199 ; (b) plans and specifications for the Project and an itemized budget for the Project, certified as correct by the Company and contractor and establishing a schedule of projected draws from the Loan Account; (c) a zoning and improvements letter; (d) a flood plain letter; WPO:CTDICKSON.TAMARAC-5UNHELT]LOANAGMT. 1 z July 15, 1997 4:23pm (e) UCC searches from the appropriate circuit court clerk and the Florida Secretary of State; (f) payment and performance bonds naming the Issuer and the Trustee or their respective successors as dual obligee and guaranteeing completion of the Improvements upon the terms provided in Company's contract with the general contractor; (g) building permits showing zoning consistent with intended use; (h) "Builder's Risk -Completed Value" insurance policy showing the Issuer and the Trustee or its successor as mortgagee loss payee and evidence of all other insurance required herein; (i) current survey showing all easements, building set -back line, and existing improvements certified to the Issuer and the Trustee by an Florida registered land surveyor; (j) such other items as the Issuer, the Trustee, the Underwriter or their respective counsel may reasonably request for preparation of documents and obtaining title insurance; (k) a title commitment covering the "gap" period from the title insurance company responsible for recording the Mortgage; (1) evidence that Company holds or may reasonably expect to timely obtain valid and fully effective permits, licenses or franchises necessary or appropriate for the operation of the Project or as contemplated by the parties, including but not limited to permits from appropriate environmental agencies; (m) preliminary environmental audit performed by environmental consultants approved by the Underwriter, with results satisfactory to the Underwriter, such approval and satisfaction to be conclusively presumed by the Underwriter's payment of the purchase price of the Bonds. Section 4.3 Form of Draw Requests. Draws from the Loan Account shall be made no more often than every two weeks and Requisitions, which shall be in the form attached as Exhibit "C" hereto and accompanied by such certificates and additional documentation as stated in such Requisition, and which shall be submitted to the Trustee at least five (5) business days before the requested draw. Where the Requisition includes amounts to be paid to the Contractor, such Requisition shall be accompanied by AIA Forms G702 and G703, executed by the Contractor and the Architect. Where the Requisition relates to items other than payments to the Contractor, there shall be included a statement of the purpose of the advance and/or invoices for the same. WPO:ITDICKSON.TAMARAC-SUNBELTILOANAG4T. 3 July 15, 1997 4:23pm • r� r� u Draw requests for costs and expenses of issuance of the Bonds shall be made on a form acceptable to the Trustee. Section 4.4 Subsequent Actions of ,the „Company. Subsequent to the closing of the Loan, the Company covenants to do the following: (a) construct the Improvements in a workmanlike manner on the Property and in complete conformity with the plans and specifications and the construction contract and except to the extent otherwise permitted by the Mortgage keep the Project free from all liens for services, labor and materials until all amounts advanced hereunder, or from the Bond proceeds, or under any instrument securing this Loan are repaid in full; (b) diligently and continuously proceed to construct said improvements in order to complete construction and perform all of its covenants and promises arising out of this Agreement or in connected therewith and obtain a certificate of occupancy or other evidence of local authority's satisfaction with the Project, all not later than , 199 ; (c) furnish the Trustee, as often as may be reasonably requested, with full information on the status of the Project and permit the Trustee or its agent to inspect all of the Company's records with respect to the Project; (d) to pay its the expenses of closing, including fees and expenses of the Issuer's and the Trustee's counsel for preparation of this and other documents and review of all documents on behalf of the Issuer and the Trustee; and services subsequent to closing in connection with future disbursements of Loan proceeds and endorsements to the title policy; and (e) to obtain prior approval of the Trustee for all change orders as more fully set forth in Section 4.10. Section 4.5 Review upon Completion. Promptly upon completion of the Project, and prior to the release of any retainage, the Company shall provide the Trustee the following: (a) title insurance update; (b) a current as -built survey, certified by an independent registered land surveyor, establishing construction of the Improvements in accordance with the approved plans and specifications; (e) evidence of all building permits, certificates of occupancy, subdivision ordinance variances, environmental impact statement, pollution control permits (if any) and such other WPO;(TDiCSSON.TAMARAC- SUNBELT] LOANAGMP. 4 July 15, 1997 4:23pm � -) 1 `7 '> licenses, permits and other evidence to show compliance with all legal_ requirements and final completion and readiness for occupancy or operation of the Improvements. Evidence shall be furnished that the Project complies with all subdivision and platting requirements affecting the Project and would so comply if the Project were conveyed as a separate parcel; (d) a certificate of completion by the Project architect or contractor to the effect that the Improvements have been completed in accordance with the approved plans and specifications; that the Improvements have been directly connected to abutting public water, sewer, gas and electrical pipes or connections; and that the structure or structures are sound; any mechanical plant is in good working order; and the Improvements, have been satisfactorily maintained; (e) a cost certificate of the general coilzractor or Project architect certifying the final cost of the Improvements; (f) casualty and liability insurance updates; (g) further opinions of the Company's or other counsel deemed reasonably necessary by the Trustee to assure the enforceability of the obligations of the Company and any guarantors hereof and the validity of the Issuer's and the Trustee's liens; and (h) the certificate described in Section 4.8 hereof. Section 4.6 Company Reauiredtq Pay in Even an Account Insufficient. In the event the moneys in the Loan Account as described in Article VI of the Indenture available for payment of Project costs should not be sufficient to pay the Project costs in full, the Company agrees to complete the Project and to pay that portion of the Project costs in excess of the moneys available therefor in the Loan Account. The Issuer does not make any warranty, either expressed or implied, that the proceeds of the Note or the moneys paid into the Loan Account and available for payment of Project costs will be sufficient to pay all of the Project costs. The Company agrees that if after exhaustion of the moneys in the Loan Account the Company should pay any portion of the Project costs pursuant to the provisions of this Section, the Company shall not be entitled to any reimbursement therefor from the Issuer or from the Trustee or from the holders of any of the Bonds, nor shall the Company be entitled to any diminution of the amounts payable under this Agreement. section 4.7 Modification of Plans and Specifications. The Company may revise the plans and specifications for the Project (including, without limitation, any changes therein, additions thereto, substitutions therefor and deletions WPO:(TDICKSON.TAMARAC-5UNHELT)LOANAGMT. July 15, 1997 4:23Pm 15 • r] is therefrom) at any time and from time to time, provided that the company shall (i) certify that no such change shall render inaccurate any of the representations with respect thereto contained in Article III, and (ii) the Project contractor shall certify that such revisions will not cause the cost of completion of the Project to exceed the amounts on deposit in the Loan Account. Section 4.8 Certification of Completion Date. Promptly after the date upon which the Project is complete, the Company shall submit to the Trustee a certificate, executed by an Authorized Representative, which shall specify the completion date and shall state that acquisition, construction and equipping of the Project has been completed and the Project costs have been paid, except for any Project costs which have been incurred but are not then due and payable, or the liability for the payment of which is being contested or disputed by the Company, and for the payment of which the Trustee is directed to retain specified amounts of moneys in specified accounts within the Loan Account. Such certificate may state that it is given without prejudice to any rights against third parties which exist at the date thereof or which may subsequently come into being. Any amount remaining in the Loan Account after payment of all Project costs shall be transferred to and deposited in the Bond Redemption Account pursuant to Section 604 of the Indenture. WPO:(TDICKSON.TAMAR.AC- SUNBELT] LOANAGMT. 1 6 July 15, 1997 4:23Pm ARTICLE V COVENANTS AND AGREEMENTS Section 5.1 General. Covenants of the Company. The Company covenants with and warrants to the Issuer that during the period of this Agreement and so long as the Loan shall be outstanding, the Company will: (a) Furnish to the Trustee, the Underwriter and, upon written request, holder of at least 15k of the principal amount of the Bonds (i) on or before the 120th day after the end of its fiscal year each year, the annual reviewed financial statements of the Company and the Guarantor complete with balance sheet, income statement, statement of changes in financial position, supporting schedules and notes to financial statements as of the preceding fiscal year, (ii) within 45 days after the end of each quarter, quarterly financial statements of the Company which may be prepared by the Company, (iii) within 3 days after the occurrence of an Event of Default (or of an event which with the passage of time or the giving of notice, or both, would become an Event of Default), notice of such occurrence together with the detailed statement by the Company of the steps being taken by the Company to cure the effect of such Event, and (iv) such other information respecting the financial condition and operations of the Company reasonably requested. (b) Duly pay and discharge all taxes, assessments and governmental charges upon it or against its properties prior to the day on which penalties are attached thereto, unless and to the extent only that the same shall be contested in good faith and by appropriate proceedings by the Company (i) the effect of which is to prevent any impairment of the lien evidenced by the Mortgage or (ii) upon the posting of security or other action approved by the Trustee. (c) Maintain with financially sound and reputable insurance companies (A) during construction of the Project, builder's all-risk insurance, as set forth in Section 4.2(h), and (B) following construction, $1,000,000 public liability insurance, workers' compensation insurance, and multi -risk insurance on the Project. The insurance must provide coverage and be issued by a company satisfactory to the Trustee showing the Issuer and the Trustee, as their interests appear, named as mortgagee in the loss payable clause of the multi -risk policy and named as additional insured in the public liability policy. The multi -risk insurance shall be in an amount at least equal to the amount of the Note. The Trustee shall have the right during the Company's normal business hours from time to time to review the original policies of such insurance. If the Property is located is wpo:(TDICKsox.TAMARAC-SUNBELTILOANAr.MT. 17 July 15, 1997 4:23pm (� c ,7 i S �� . in a flood plain such policies shall include coverage for flood and rising waters, as the Issuer may require. (d) The Certificate(s) of Insurance evidencing required insurance coverage shall recite that the coverage being provided are in force and satisfy Paragraph (c) above and shall contain the written obligation on the part of the insurance carrier to notify the Trustee in writing at least thirty (30) days prior to any cancellation, termination or material amendment of its policy. (e) Allow any representative of the Issuer or the Trustee (including an accountant or consultant or firm of accountants or firm of consultants selected by such party) to visit any of its property, to examine its books of record and account, at such reasonable times and as often as such parties may reasonably request. (f) Perform the covenants and obligations contained in this Agreement, the Note and the Security Documents, or any other loan documents executed in the future representing additional debt owed by the Company to the Issuer. (g) Perform all of the obligations to be performed by the Company pursuant to the terms of the Indenture or of any other indenture, agreement, contract or other instrument by which the Company is bound; provided, however, that the Company shall not be in violation, of this covenant if it shall be in good faith contesting any alleged failure of performance in the Indenture or of any other indenture, agreement, contract or instrument, as provided in the terms and provisions thereof. (h) Indemnify, protect, defend and save the Issuer, the Trustee, and any purchaser of the Bonds harmless from and against any and all claims, demands, liabilities and costs, including attorney's fees, arising from damage or injury, actual or claimed, of whatsoever kind or character, to property or persons, occurring or allegedly occurring in, on or about the Mortgaged Property during the life of this Agreement, and upon notice from the Issuer or Trustee, the Company shall defend such party in any action or proceeding brought thereon. (i) Unless debt service has been paid and the Company is not in default under the terms of this Agreement or the Mortgage, not declare or pay, or set apart any funds for the payment of, any dividends on any shares of the Company's capital stock or apply any of its funds or other assets for the purchase, redemption or other retirement in respect to any capital stock. Section 5.2 Damage to or Destruction -of Pro'ect. If prior to the full payment of the Bonds (unless funds for the WPO:[TDICKSON.TAMARAC-SUNBELT)LOANAGMT. July 1S, 1997 4:23pm 18 � 9�-iy5� redemption of all of the Bonds, including accrued interest thereon, and expenses related thereto shall have been deposited with the Trustee) the Improvements or the Personal Property is destroyed (in whole or in part) or is damaged by fire or other casualty to the extent that the claim for loss resulting from such destruction or damage is not greater than $25,000, the Company shall (i) promptly repair, rebuild or restore the Improvements or the Personal Property (as appropriate) damaged to substantially the same condition as it existed prior to the event causing such damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Company and as will not impair the operating unity and (ii) apply for such purposes so much as may be necessary of any of the net proceeds of insurance resulting from claims for such losses, as well as any additional moneys of the Company necessary therefor. All net proceeds of insurance resulting from claims for such losses not in excess of $25,000 may be paid directly to the Company. If, prior to full payment of the Bonds (or provision for payment thereof having been made in accordance with the provisions of the Indenture), the Improvements or the Personal Property (in whole or in part) are damaged by fire or other casualty to such extent that the claim for loss resulting from such destruction or damage is in excess of $25,000, the Company shall promptly give written notice thereof to the Trustee, and all net proceeds of insurance resulting from such claims for such losses shall be paid to and held by the Trustee, whereupon (i) the Company will proceed promptly to repair, rebuild or restore the Improvements or the Personal Property (as appropriate) to substantially the same condition as it existed prior to the event causing such damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be determined by the Company with the consent of the Issuer and as will not impair the character of the Improvements or the Personal Property in its use as it had been used prior to such damage or destruction; and (ii) the Trustee will apply so much as may be necessary of the net proceeds of such insurance (the "Net Proceeds" being the gross proceeds of such insurance less any attorney's fees or other costs or expenses incurred in collecting the Net Proceeds) to payment of the cost of such repair, rebuilding or restoration, either on completion thereof or as the work progresses, as directed by the Company. Each such direction of the Company shall be accompanied by a certificate of an architect or engineer (who shall be selected by the Company and satisfactory to the Trustee) in charge of the rebuilding, repairing or restoring, dated not more than 30 days prior to such direction, setting forth in substance (a) that the sum then directed to be applied either has been paid by the WPO:(TOICKSON.TAMARAC-SUNHELT]LOANAGMT. 1 g July 15, 1997 4:23pm jeq'71? - • Company or is justly due, to contractors, subcontractors, materialmen, engineers, architects or other persons who shall have rendered services or furnished materials or improvements for the rebuilding, repairing or restoring therein specified; the names of such persons; a brief description of such services or materials or improvements and the several amounts so paid or due to each of such persons; and a statement that none of the cost of the services or materials or improvements described in such certificate has been or is being made the basis of any previous or then pending direction for payment under this Section and that the sum then directed to be applied does not exceed the value of the services or materials or improvements described in the certificate, and (b) that, except for the amount, if any, stated (pursuant to (a) preceding) in such certificate to be due for services or materials or improvements, there is not outstanding any indebtedness known to the persons signing such certificate which is then due for labor, wages, materials, supplies or services in connection with the repairing, rebuilding or restoring which, if unpaid, might become the basis of a vendor's, mechanics, laborer's or materialmen's lien upon the Property or the Personal Property or any part thereof. The Trustee may conclusively rely upon such direction and shall have no liability or responsibility for payments made pursuant to this paragraph in reliance thereon. In the event the Net Proceeds are not sufficient to pay in full the costs of such repair, rebuilding or restoration, the Company will nonetheless complete the work thereof and will pay that portion of the costs thereof in excess of the amount of the Net Proceeds. The Company shall not, by reason of the payment of such excess costs, be entitled to any reimbursement from the Issuer or any abatement or diminution of the amounts payable on the Note. Any balance of such Net Proceeds, whether held by the Company or the Trustee, remaining after payment of all the costs of any such repair, rebuilding or restoration shall be deposited in the Bond Fund established under the Indenture and used to make required payments thereunder in an amount sufficient and in a manner for the Bonds not to be "arbitrage bonds" as defined in Section 148 of the Code. If the Bonds have been fully paid (or provisions therefor made in accordance with the provisions of the Indenture) and no funds are otherwise due and owing to the Issuer, all Net Proceeds will be paid to the Company, otherwise they shall be paid to the Issuer to the extent of any amounts owed to the Issuer. Section 5.3 Pre ayLnent U on Major Damage or Destruction. Notwithstanding the foregoing provision of this Article, the Company shall not be required to repair, restore, replace or rebuild the Project or any part thereof, if the Company shall elect to pay in full all of its indebtedness to the Issuer pursuant to Section 9.1 of this Agreement, such indebtedness WPO:(TDICKSON.TAMARAC-SiYMBELT]LOANAGMT. z O July 15, 1997 9:23Pm including, without limitation, an amount sufficient to redeem prior to maturity on the next possible redemption date all of the Bonds then outstanding, together with accrued interest to the redemption date, and all charges, fees and expenses necessarily incurred and required to be incurred in connection with such redemption, and all other amounts then owing by the Company to the Issuer. In that event, the proceeds of all insurance shall be placed in and become part of the Bond Fund provided for in the Indenture. If there be any deficiency in the moneys on deposit in the Bond Fund, after the deposit therein of all insurance proceeds, to make said required payments by the Company, the Company shall immediately deposit therein the amount of the deficiency. Section 5.4 Condemnation of the Projggt. In the event of condemnation by a competent authority for any public use or purpose of all or substantially all of the Mortgaged Property, the Company shall prepay the Loan in such amount (which may include the proceeds of such condemnation award) as will provide for the payment of the Bonds in full, including funds necessary to pay all principal, interest, Trustee's fees, redemption premiums, and all other costs of redemption of the Bonds. In the event the net condemnation award, together with any other amounts in the hands of the Trustee, shall be in excess of the amount necessary to pay the total redemption expense of the Bonds, and if the Company is not in default in any of its other obligations under this Agreement and no funds are otherwise due and owing to the Issuer, then such excess shall belong to and be paid to the Company. otherwise they shall be payable to the Issuer to the extent any money is owed to the Issuer. If the Company is in default with reference to any of its other obligations hereunder, the amount in excess of that necessary to satisfy such default shall be paid to the Company. In the event of a condemnation of less than all, or substantially all, of the Mortgaged Property, the Company will repair or rebuild the Mortgaged Property so that the remaining part as nearly as possible will be in the condition existing prior to the taking, to the extent that the same may be feasible, subject to the right of the Company to make alterations so as to improve the efficiency of the improvements. Such condemnation award for a taking of less than substantially all of the Mortgaged Property shall be payable to the Company upon providing to the Trustee such reasonable evidence and documentation in relation to the taking as they may require. Section 5.5 Removal or Dispositionsof Property_. (a) Except as set forth in subsection (b) below, from the date of this Agreement and so long as the Note or the Bonds shall be outstanding, the Company will not sell or otherwise transfer the Mortgaged Property, without the prior written WPO:[TDICKSON.TAMAEAC-SUNBELTJLOANAGMT. Z 1 July.15, 1997 4:23pm • 1�1 • consent of the Trustee which consent shall not be unreasonably withheld. (b) Personal property may be disposed of hereunder upon condition that: (i) such property is replaced with property performing a like function in relation to the Project, with the result that the efficiency and utility of the Project are enhanced by such replacement; and (ii) the Company takes the necessary action to cause the replacement property to be subjected to the lien and security interest conferred by the Mortgage. Section 5.6 Compliance ,with, Local ,Law. (a) All construction upon and use of the Mortgaged Property is and shall be in compliance with all pertinent and applicable local, county, state and federal statutes and ordinances including applicable zoning, building code and environmental protection ordinances. (b) The Company shall cause the Project to be constructed of first class materials in a good, substantial and workmanlike manner in accordance with the plans and specifications filed with the Trustee. The Company will cause the Project to be completed free and clear of any claims or liens for labor or material, and the Company shall cause the Project to be constructed within the building set -back lines as shown on the plat of the Property. Section 5.7 Maintenange of Corporates Existence. The Company agrees that it will maintain its corporate or organizational existence and will not dissolve or otherwise dispose of all or substantially all of its assets and will not consolidate with or merge into another corporation or entity or permit one or more other corporations or entities to consolidate with or merge into it, except the Company may, without violating the foregoing, consolidate with or merge into another corporation or entity, or permit one or more other corporations or entities to consolidate with or merge into it, or transfer all or substantially all of its assets to another corporation or entity (and thereafter dissolve or not dissolve as it may elect), and if the entity surviving such merger or resulting from such consolidation, or the entity to which all or substantially all of the assets of the Company are transferred, as the case may be: (i) shall be a domestic corporation or other recognized business entity organized under the laws of the United States of America, the District of Columbia or one of the states of the United States and qualified to do business in the State of Florida, (ii) shall assume in writing all of the obligations to the Company thereunder, and (iii) shall have net tangible assets at least equal to the net tangible assets of the Company immediately WPO:(TDICKSON.TAMARAC-SUNHSI,T]LOANAGMr. July 15, 1997 9:23pm 22 9 prior to such consolidation, merger or transfer. As used herein, the term "net tangible assets" means all net assets of the corporation or entity (except there shall not be included goodwill), less all liabilities. WPO:(TDICKSON.TAMARAC-ST.TNBELTILOANAGMT. 2 3 July 15, 1991 4:23pm t�, C� ?-1 s-�- 9 ARTICLE VI • CONDITIONS OF LENDING Section 6.1 Conditions Precedent to Making Loan. The obligation of the Issuer to make the Loan is subject to the conditions precedent that the Issuer shall have received on or before the date of the Loan the following, each dated on or before the date of the Loan, in form and substance satisfactory to the Issuer: (a) The Note and the Guaranty. (b) A signed copy of a Certificate of Authorized Representatives of the Company which shall certify the names of the persons authorized to sign this Agreement, the Guaranty, the Note and the Security Documents, together with the true signatures of such persons. (c) The Mortgage, together with evidence of all necessary recordings thereof. (d) A policy of title insurance, or commitment therefor, acceptable to the Purchaser and dated the date of the making of the Loan, such acceptance to be conclusively presumed by the Purchasers payment of the purchase price of the Bonds. (e) Those items set forth in Section 4.2 hereof. Section 6.2 C m an 's Closing Certificate. The obligation of the Issuer to make the Loan is also subject to the further conditions precedent that on the date of the Loan the following statements shall be true, and the Issuer shall have received a certificate signed by the Authorized Representatives of the Company dated such date, stating that: (a) The representations and warranties contained in Section 3.2 and Section 3.3 are true and correct on and as of such date even though made on and as of an earlier date (except to the extent that such representations and warranties relate solely to an earlier date); and (b) No event has occurred and is continuing, or would result from the making of the Loan, which constitutes an Event of Default or would constitute an Event of Default but for the requirement that notice be given or time elapse or both. WPO:(TDICKSON.TAMARAC- SUNBELT) LGANAGMT. July 1S, 1997 4:23pm 24 ,� , 7-1 9.� ARTICLE VII TAX EXEMPTION Section 7.1 Maintenance of Tax -Exempt Status of Bonds. In order to preserve the income tax exemption of the Bonds, the Issuer has elected, with respect to the Bonds, that the provisions of Section 144(a)(4) of the Code shall be applied. in order to effect such election and to continue the same in full force and effect so long as any of the Bonds shall remain outstanding and unpaid, the Company agrees to cooperate with the Issuer in taking such further action and filing or causing to be filed, such further supplemental instruments, documents, statements, or reports at such office or offices, as may from time to time be required by applicable law or regulation in connection therewith. V Section 7.2 Determination of Taxability_. If, for any reason, without regard to whether such circumstances shall be caused by any act or failure to act of the Issuer or the Company, there shall occur a "Determination of Taxability," this Loan shall be due and payable at such time and in such amount necessary to pay all of the principal of, interest and premium due on the Bonds in accordance with the terms thereof. P-j Wp4:(TAICKSCN.TAMARAC-SUNBELTILCANAGMT. 2 July 15, 1997 4:23pm t q'7_1SS- 0 ARTICLE VIII EVENTS OF DEFATMT Section 8.1 Events of Default. If any of the following events shall occur and be continuing it is hereby defined as and declared to be and to constitute an "Event of Default: (a) A payment under the Note shall not be made in the manner or time required thereunder; or (b) Any other payment required by this Agreement or the Security Documents shall not be made in the manner required thereunder and such failure shall continue for a period of five days after written notice to the Company; or (c) Any representation or warranty made in connection with the execution and delivery of this Agreement, the Note, the Guaranty, or any of the Security Documents or in any certificate furnished pursuant hereto or thereto shall prove to be at any time incorrect; or (d) The Company shall default in the performance of any other term, covenant or agreement contained in this Agreement, the Note, the Guaranty, or any of the Security Documents or contained in any other loan, mortgage, note or other obligation of the Company to the Issuer, and such default shall continue unremedied for 15 days after written notice thereof shall have been given to the Company by the Issuer or Trustee; or (e) The Company shall file a voluntary petition in bankruptcy or fail to lift any execution, garnishment or attachment in an amount in excess of $25,000 or be adjudged a bankrupt, or admit in writing its inability to pay or fail to pay its debts generally as they become due; or (f) The Guaranty, or any Security Documents shall be canceled (except by operation of law upon payment in full of the indebtedness secured thereby), or otherwise cease to be in full force and effect and enforceable by the Issuer or the Trustee in accordance with their terms against the Company and all other persons, or they do not vest in the Issuer a fully perfected valid lien or security interest, as the case may be; or (g) The Company shall fail to maintain the insurance required by the Agreement, the Note, the Mortgage or any other document executed in connection therewith and such failure shall continue for a period of fifteen days after written notice to the Company. WPO:[TDICKSON.TAMARAC-SUNBELT]LOANAGMf. 2 July 15, 1997 4:23pm Section 8.2 Remedies on Default. If an Event of Default occurs, the Note with all accrued interest applicable to the Bonds shall, upon declaration to such effect, become and be immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are expressly waived by the company. Any amounts collected pursuant to action taken under this Section shall be applied in accordance with the Indenture. u WPO:CTAICKSON.TAMARAC-SUNHELTILOANAGMT. 2 7 July 15, 1997 4:23pm ((� 5,7-/sue 0 ARTICLE IX • PREPAYMENTS FOR REDEMPTION OF BONDS Section 9.1 Optional Prepayments for Full Redem]tion. The Company shall have the option to prepay installments payable hereunder for the purpose of redeeming prior to maturity the Bonds, in whole but not in part, if any of the following shall have occurred: (a) The Project shall have been damaged or destroyed (i) to such extent that it cannot be reasonably restored within a period of six months to the condition thereof immediately preceding such damage or destruction, or (ii) to such extent that the Company is thereby prevented, in the Company's judgment, from carrying on its normal operation of the Project for a period of six months, or (iii) to such extent that it would not be economically feasible, in the Company's judgment, for the Company to repair the Project. (b) The legal curtailment of the use and occupancy of all or substantially all of the Project by the Company for any reason other than condemnation. Section 9.2 lF rther Option to Prepay. From and after 1, , the Company shall have the further option to prepay installments payable hereunder for the purpose of redeeming Bonds, in whole or in part, at the premiums (if any) set forth in the Bonds, prior to maturity without such events having occurred. The Company may, at any time, prepay its obligations hereunder upon irrevocably depositing funds or securities with the Trustee sufficient to pay the Bonds when due in the manner provided in Section 901 of the Indenture. Section 9.3 Pre a ent U on Determination of Taxability. Upon the occurrence of a Determination of Taxability, as defined herein, the Company may prepay all installments due hereunder as provided in Section 7.2. Section 9.4 Mandatory -Prepayment on Condemnation. The Company shall also be obligated, and agrees to prepay the entire amount payable under Section 1.3 hereof in the case of condemnation requiring a mandatory prepayment described in Section 5.4 hereof. WPO:]TDICKSON.TAMAIAC-SUMELT]LOANAGMT. July 15, 1997 4:23pm 2 8 (2 -� - / S S- ARTICLE X RESERVED r� WPO:(TDICKSON.TAMARAC-SUNEELTILOANAGMT. July 15, 1997 4:23pm 29 ,-(�?-/5 ARTICLE XI MISCELLANEOUS Section 11.1 No Waiver of,Riahts. No failure or delay on the part of the holder of the Note in exercising any power or right hereunder or under the Guaranty or any Security Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power preclude any other or further exercise thereof or the exercise of any other right or power hereunder. No modification or waiver of any provision of this Agreement, the Note, or any Security Document nor consent or any departure by the Company therefrom shall in any event be effective unless the same shall be in writing, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. No notice to or demand on the Company in any case shall entitle the Company to any other or further notice or demand in similar or other circumstances. The holder of the Note shall in no event be required to exercise any of its remedies in respect of any Security Documents before exercising any remedies hereunder or otherwise to enforce the provisions of this Agreement or the Note. Section 11.2 Day for Payment. Whenever any payment to be made hereunder, or under the Note shall be stated to be due on a Saturday, Sunday or a day banks are closed under the laws of the State or the United States of America, such payment shall be made on the next business day. Section 11.3 Notices. All notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given when mailed by registered or certified mail, return receipt requested, postage prepaid addressed as set forth in Section 12.01 hereof. A duplicate copy of each notice, certificate or other communication given hereunder by the Issuer, the Company or the Trustee to any other party shall also be given to the parties to whom the notice, certificate or other communication is not primarily addressed. The parties may, by notice given hereunder, designate any further or different address to which subsequent notices, certificates or other communications shall be sent. Section 11.4 Payment of Expenses. The Company agrees to pay, or cause to be paid, all costs and expenses in connection with the preparation, execution, and delivery of this Agreement, the Note, the Bonds, and the Security Documents, and any and all fees, taxes or expenses payable in connection with the filing, refiling, recording and re-recording of any Security Document and costs and expenses, if any, in connection with the enforcement of WPp:[TDICKSON.TAMARAC-SUNBELT)LOANAGW. 3 p JU1Y 15, 1997 4:23pm 5, ,7 _ / � - this Agreement, the Note, and the Security Documents, as well as any and all stamp and other taxes, and to save the holder of the Note harmless from any and all liabilities with respect to or resulting from any delay or omission to pay such taxes, if any, which may be payable or determined to be payable and enforcement of this Agreement, the Note and the Security Documents or such filing, refiling, recording, or re-recording of any Security Document. Section 11.5 Accounting Terms. All accounting terms not specifically defined herein shall be construed in accordance with generally accepted accounting principles consistently applied. Section 11.6 Binding Agreement. This Agreement shall be binding upon and inure to the benefit of the Company, the Issuer, and the Trustee, their respective successors and assigns, except that the Company may not assign or transfer its rights hereunder without the prior written consent of the Trustee and the Issuer. The term "Trustee" as used herein shall include any successor or assignee of the Trustee. Section 11.7 Choice of Law. This Agreement and the Note shall be deemed to be contracts under the laws of the State and for all purposes shall be governed by and construed in accordance with the laws of the State. Section 11.8 Agreement to_Remain in Effect. This Agreement shall remain in full force and effect until the Note is paid in full. Section 11.9 A endme ts. Except as otherwise provided in this Agreement or the Indenture, subsequent to the issuance of Bonds and prior to payment in full of the Bonds (or the provisions for payment thereof having been made in accordance with the provisions of the Indenture), this Agreement may not be effectively amended, changed or modified, altered or terminated nor any provision waived, without the written consent of the Trustee. Section 11.10 Entire Agreement. This Agreement constitutes the entire agreement, and supersedes all prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof and may be executed in several counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. El WPO:(TDICKSON.TAMARAC-SUNBELT)LOANAGMT. 1 July 15, 1997 4:23pm �.�j7-ASS • ARTICLE XII NOTICE Section 12.1 Addresses for Notice. Notices as required in this Agreement shall be considered delivered when posted in United States Mail, postage prepaid and addressed as set forth below (or at such other address as may have been provided by the party to all other parties hereto by proper notice): If intended for the Company: Sun Belt Precision Products, Inc, 900 S.W. 21st Terrace Ft. Lauderdale, Florida 33312 Attention: President If intended for the Issuer: City of Tamarac, Florida 7525 N.W. 88th Ave Tamarac, Florida 33321-2401 Attention: City Attorney If intended for the Trustee: First Union National Bank of Florida 200 S. Biscayne Blvd., 14th Floor Miami, Florida 33131 Attention: Corporate Trust Department WPO; ETDICKSON. TAMARAC-SUNBELT) LOANAGMT. 3 2 July 15, 1997 4:23pm (-'� '�?_/�s IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written. ATTEST: By:_ Its: ATTEST: Its WPO:(TDICKSON.TAMARAC-SUNBELT ILOANAGMT. 3 July 15, 1997 4:23pm SUN BELT PRECISION PRODUCTS, INC. By:_ Its: CITY OF TAMARAC, FLORIDA By: Its: • • • f2 . S? - � 9_5-� 0 EXHIBIT A THIS INSTRUMENT PREPARED BY AND, AFTER RECORDING, TO BE RETURNED TO: AKERMAN, SENTERFITT & EIDSON, P.A. P.O. Box 231 Orlando, FL 32802-0231 Attentionz T. Dean Dickson (407) 843-7860 MORTGAGE (INCLUDING SECURITY AGREEMENT, ASSIGNMENT OF RENTS AND LEASES AND FUTURE ADVANCES) KNOW ALL PERSONS BY THESE PRESENTS: THAT THIS MORTGAGE (INCLUDING SECURITY AGREEMENT, ASSIGNMENT OF RENTS AND LEASES, AND FUTURE ADVANCES) (hereinafter sometimes referred to as the "Mortgage") made and entered into as of this lst day of May, 1997, by SUN BELT PRECISION PRODUCTS, INC., a corporation organized and existing under the laws of the State of Florida, whose address is 900 S.W. 21st Terrace, Ft. Lauderdale, Florida 33312 (hereinafter called "Mortgagor"), in favor of CITY OF TAMAR.AC, FLORIDA with offices at 7525 N.W. 88th Avenue, Tamarac, Florida 33321-2401, together with its successors and assigns, including First Union National Bank of Florida, as trustee, pursuant to the Assignment of Construction Money Mortgage of even date herewith (hereinafter called "Mortgagee"). WITNESSETH: THAT FOR AND IN CONSIDERATION OF TEN DOLLARS ($10.00) cash in hand paid by the Mortgagee to the Mortgagor, and the debt and undertakings hereinafter mentioned, the said Mortgagor does hereby mortgage, bargain, grant, sell, convey, deliver, confirm and warrant unto the said Mortgagee and its successors and assigns, the real property (said real property together with the Improvements, herein defined, being herein called the "Mortgaged Property") situated and being in Broward County, Florida, more particularly described in Exhibit "A" attached hereto and made a part hereof as fully and particularly as if set out herein verbatim, together with: (1) All the improvements now on or which may be hereafter . placed on said land during the existence of this lien; and WPO:(TDICKSON.TAMARAC-SUNHELTILOANAGMT. July 15, 1997 4:23pm (2) All the income, rents, issues and profits arising therefrom and for the use thereof, including, but not limited to, insurance proceeds and condemnation awards, and all ledgers, books of accounts and records relating thereto; and (3) All machinery, appliances, materials, equipment, furnishings or other property whatsoever now or hereafter acquired, installed or to be installed and used or to be used in and about the building or buildings on said land, including, but not being limited to, all heating, plumbing, electrical, lighting, water heater, cooking, refrigeration, incinerating, ventilating and air-conditioning equipment, storm doors and windows, floor coverings, awnings, window coverings, smoke detectors, burglar alarms, fire extinguisher systems and property of like nature, all of which property and things are hereby declared to be permanent accessions to the freehold and part of the realty conveyed herein, even if also described in Exhibit ,B" referred to hereinafter, the property described in the foregoing paragraph (1) and this paragraph (3) being sometimes herein called the "Improvements"; TO HAVE AND TO HOLD the aforedescribed Mortgaged Property, together with all the hereditaments and appurtenances thereunto belonging or in anywise appertaining, including all rights of homestead, unto the said Mortgagee, its successors and assigns forever; and the said Mortgagor does hereby warrant covenant with the said Mortgagee, its successors and assigns, that Mortgagor is lawfully seized in fee of the estate described in Exhibit "A" attached hereto, that Mortgagor has a good right to sell and convey the same; that the same is unencumbered except for those exceptions deemed permissible by Mortgage, if any, and set forth in an Exhibit hereto (said exhibit, if any, being Exhibit "C"); and that the title and quiet possession thereto Mortgagor shall and Mortgagors successors shall warrant and forever defend against the lawful claims of all persons. BUT THIS IS A MORTGAGE, and is made for the following uses and purposes, and none other; that is to say, Mortgagor is justly indebted to Mortgagee hereinafter mentioned, in the principal sum of Three Million Three Hundred Thousand Dollars ($3,300,000), evidenced by that certain promissory note (the "Note") of even date herewith in the total principal amount of Three Million Three Hundred Thousand Dollars ($3,300,000), bearing interest at the rate specified therein, and the Mortgagee's Industrial Development Revenue Bonds, Series 1997 (Sun Belt Precision Products, Inc., Project) (the "Bond"), said Note being payable in accordance with the terms of the Note, but in no event later than the maturity date set forth in the Note, i.e., , All of the Note is incorporated herein by reference. WPO:[TDICKSON.TAMARAC- SUNBELT] LOANAGKr. 2 July 16, 1997 4:23pm C • re , � ? - / " sJ AS FURTHER SECURITY, Mortgagor hereby pledges, assigns and grants to Mortgagee a continuing security interest in the Property (the "Personal Property") described in Exhibit "E" attached hereto and incorporated herein by reference (the property described in clause (a) of Exhibit "E" being sometimes herein called the "Tangible Personal Property"). AND AS FURTHER SECURITY, as to any of the property described in the preceding paragraph which constitutes or becomes fixtures under the laws of the State of Florida, or similar statute, whether now or hereinafter enacted, (whether or not also described on Exhibit "E"), this also constitutes a fixture filing perfecting a lien on fixtures by filing in the real estate records and with the Secretary of State of the State of Florida. Mortgagor desires to secure and make certain the payment of the Note, and any and all renewals, modifications and extensions thereof, in whole or in part and also the payment and performance of the other Obligations, as hereinafter defined. NOW, THEREFORE, so long as any part of the Obligations shall remain unpaid or unperformed, Mortgagor covenants, agrees, represents and warrants as follows: ARTICLE I OBLIGATIONS DEFINED The following obligations of the Mortgagor are hereinafter collectively called the "Obligations": 1.1 Note. Payment of the indebtedness (and interest, late charges, prepayment premiums and liquidated damages, if any, thereon) evidenced and to be evidenced by the Note, and of any and all renewals, modifications and extensions thereof, in whole or in part; and 1.2 Mortgage. Payment of all sums advanced by Mortgagee to or for the benefit of Mortgagor contemplated hereby and. Performance of all obligations and covenants herein contained, including, without limitation, any amounts advanced to protect the mortgage estate and security interests herein granted and all attorneys' fees, court costs, and expenses of whatever kind incident thereto or to the collection of the indebtedness and obligations hereby secured and/or enforcement of the liens and security interests herein granted; 1.3 Loan Agreement. Compliance with the covenants, terms and conditions contained in the Loan Agreement of even date between Mortgagor and Mortgagee; and WPO:[TDICKSON.TAMARAC-SUNSELT]LOANAGMT. 3 July 15, 1997 4:23pm 1.4 Other Indebtedness. Payment of any other sums which are owed by Mortgagor to Mortgagee (including but not limited to those acquired by transfer, judgment or endorsement and whether or not that debt is related in any way to the Note) at any time hereafter and prior to the release and satisfaction of this Mortgage. The Note, the Loan Agreement, this Mortgage, any financing statements, and all documents securing the Obligations are sometimes referred to herein as "Loan Documents." ARTICLE IT COVENANTS AND AGREEMENTS AS TO MORTGAGED PROPERTY Mortgagor does hereby covenant, warrant and represent to and agree with Mortgagee as follows: 2.1 Payment and__Performance. Mortgagor shall make all payments on the indebtedness evidenced by the Note when due and shall punctually and properly perform all of Mortgagor's other obligations in accordance with their terms. 2.2 Insurance. Mortgagor shall, at Mortgagor's sole cost and expense, obtain and maintain insurance upon all insurable property encumbered hereby against such hazards, in such amounts and under such form of policies, in accordance with the terms of the Loan Agreement. 2.3 Taxes and Assessments. Mortgagor will promptly pay when due all taxes, assessments, levies, dues and charges of every type or nature assessed against the Mortgaged Property or the Personal Property, and any claim, lien or encumbrance against the Mortgaged Property or the Personal Property which may be or become prior to the lien of this Mortgage as provided in the Loan Agreement. 2'.4 Taxes on Mortgage. If at any time any law shall be enacted imposing or authorizing the imposition of any tax upon the Note, any of the Obligations, or this Mortgage, or upon any rights, titles, liens, or security interests created hereby, or any part thereof, Mortgagor shall immediately pay all such taxes; provided that, if it is unlawful for Mortgagor to pay such taxes, Mortgagee may pay such taxes and Mortgagor shall reimburse Mortgagee for such payment in full within ten (10) days after notice; provided, further, that if it shall be unlawful for Mortgagor either to pay such taxes or to reimburse Mortgagee therefor, or if such payment or reimbursement would be usurious, Mortgagor shall not be required to make such payment or reimbursement, but at Mortgagee's option, the Obligations shall thereupon be immediately due and payable. WPO:CTDICKSON.TAMARAC-SUNBELT]LOANAGMT. July 15, 1997 4:23pm C� • 2.5 Repair, Waste, Alterations, Etc. Mortgagor shall keep every part of the Mortgaged Property and the Personal Property in good operating order, repair and condition and shall not commit or permit any removal or waste thereof, normal wear and tear excepted. Mortgagor shall not remove or demolish or materially alter the design or structural character of any Improvements now or hereafter erected upon the Mortgaged Property without the prior written consent of Mortgagee or as permitted by the Loan Agreement. Mortgagor shall promptly make all necessary repairs, renewals and replacements to the Mortgaged Property and the Personal Property. 2.6 Advances by Mortcracree to Protect QQllateral. If the Mortgagor shall default in paying taxes or assessments, maintaining insurance or making repairs, the Mortgagee may, at its discretion, advance and pay such sums as may be proper to satisfy taxes, maintain insurance and make repairs, and protect and preserve the Mortgaged Property and Personal Property, and such amounts so paid shall be treated as part of the expenses of administering this pledge of collateral, shall be repaid by Mortgagor on demand with interest at the Default Rate (hereinafter defined), and shall be secured by the lien hereof. However, the making of any such payment by Mortgagee shall not be construed as a waiver of any default of Mortgagor. 2.7 No Mech5lnic's„Liens. Mortgagor shall discharge all claims for labor performed and material furnished to the Mortgaged Property, and shall not suffer any lien of mechanics or materialmen to be filed against any part of the Mortgaged Property. Mortgagee has not consented and will not consent to any contract or to any work or to the furnishing of any materials which might be deemed to create a lien or liens superior to the lien of this instrument, unless by signed, recorded writing, which consent it may refuse to give in its sole and absolute discretion. 2.8 Protection and ,Priori v of _Lien. Mortgagor shall not do anything or suffer or permit anything to be done whereby the lien and security interest of this Mortgage could be impaired. In particular (but not by way of limitation), Mortgagor shall not consent, directly or indirectly, to the inclusion of any portion of the Mortgaged Property within any improvement district or similar organization which has the authority to levy assessments against the Mortgaged Property which constitute a lien thereon which is equal or superior to the lien of this Mortgage. Nor shall Mortgagor do anything or suffer or permit anything to be done or omit to do anything which could result in foreclosure of a lien of any kind on any portion of the Mortgaged Property whether that lien was superior, inferior or equal to that of the Mortgage. None of the provisions of this Section 2.8 may be waived except by a signed, recordable writing from Mortgagee. WPO:(MICKSON.TAMARAC-SUNBELT]LOANA04T. July 15, 1997 4:23pm 5 2.9 Hazardous Substances. As used herein, "Hazardous Substances" shall mean and include all hazardous and toxic substances, wastes or materials, any pollutants or contaminants (including, without limitation, asbestos, petroleum products, polychlorinated biphenyls and raw materials which include hazardous constituents), or any other similar substances, or materials which are included currently or hereinafter under or regulated by any local, state or federal law, ordinance, rule or regulation pertaining to environmental regulation, contamination or clean-up, including, without limitation, "CERCLA," "RCRA,', or state lien or state superlien or environmental clean-up statutes (all such laws, rules and regulations being referred to collectively as "Environmental Laws"). Mortgagor warrants, represents and covenants as follows: (i) Neither the Mortgagor or the Mortgaged Property nor any other personal or real property owned by Mortgagor is subject to any private or governmental lien or judicial or administrative notice or action, relating to Hazardous Substances or environmental problems, impairments or liabilities, or the direct or indirect violation of any Environ- mental Laws. (ii) No Hazardous Substances are located on or have been stored, used, processed or disposed of on or released or discharged from (including ground water contamination) the Mortgaged Property (other than any chemicals or petroleum products used in the ordinary course of Mortgagors business and properly stored, used and disposed of in accordance with all applicable Environmental Laws) and no above or underground storage tanks exist on the Mortgaged Property. Mortgagor has not entered into any contracts or other arrangements for Hazardous Substances to be disposed or treated. Mortgagor shall not allow any Hazardous Substances to be stored, located, used, discharged, possessed, managed, processed or otherwise handled on the Mortgaged Property (other than any chemicals or petroleum products used in the ordinary course of Mortgagors business and properly stored, used, transported and disposed of in accordance with all applicable Environmental Laws) and shall comply with all Environmental Laws affecting the Mortgaged Property. (iii) Mortgagor shall immediately notify Mortgagee should Mortgagor become aware of (1) any Hazardous Substance or other environmental problem or liability with respect to the Mortgagor or the Mortgaged Property, or (2) any lien, action, or notice of the nature described in subparagraph (i) above. Mortgagor shall, at Mortgagor's own cost and expense, take all actions as shall be necessary or advisable for the clean-up of the Mortgaged Property, including all removal, containment and remedial actions in accordance with all applicable Environmental Laws (and in all events in a manner satisfactory to Mortgagee), WPO:(TDICKSON.TAMARAC-SUNBELTJLOANAGMT. July 15, 1997 4:23pm • C r� ,� / 9 SJ and shall further pay or cause to be paid at no expense to Mortgagee all clean-up, administrative, and enforcement costs of any court or applicable government agencies which may be asserted against the Mortgaged Property or the owner thereof. Mortgagor shall indemnify Mortgagee against and hold it harmless from all clean-up, administrative and enforcement costs, damages, liabilities, losses, claims, expenses (including attorneys' fees and disbursements) which are incurred by Mortgagee, whether before or after foreclosure of the lien hereof, with respect to any violation or claim of violation of any Environmental Law pertaining to the Mortgaged Property. Mortgagor shall pay such amounts within ten (10) days after notice from Mortgagee itemizing the amounts incurred to the date of such notice without requirement of waiting for the ultimate outcome of any litigation, claim or other proceeding. 2.10 Survival of Warranties and Representations. All warranties and representations in this Article Ii and elsewhere shall be deemed to be continuing and shall remain true and correct in all material respects until all of the Obligations have been paid in full and any limitations period expires. Mortgagor's covenants above shall survive any exercise of any remedy by Mortgagee hereunder or under any other instrument or document now or hereafter evidencing or securing the obligations, including foreclosure of this Mortgage (or deed in lieu thereof), even if, as a part of such foreclosure or deed in lieu of foreclosure, the obligations are satisfied in full and/or this Mortgage shall have been released. .ARTICLE III ASSIGNMENT OF RENTS AND LEASES 3.1 Assignment of Rents and Leases. All of the rents, revenue, deposits, escrow accounts and other benefits derived from the Mortgaged Property or arising from the use or enjoyment of any portion thereof or from any existing or future lease or agreement pertaining thereto and liquidated damages following default under such leases, and all proceeds payable under any Policy of insurance covering loss of rents resulting from untenantability caused by damage to any part of the Mortgaged Property, together with any and all rights that Mortgagor may have against any tenant under such leases or any subtenants or occupants of any part of the Mortgaged property and any award made hereafter to Mortgagor in any court proceeding involving any of the tenants or in any bankruptcy, insolvency, or reorganization proceedings in any state or federal court, and all payments by tenants in lieu of rent (all hereinafter collectively called the "Rents") are hereby absolutely and unconditionally assigned to Mortgagee, to be applied by Mortgagee in payment of WPO;[TDICXSON.TAMAMC-SUNBSLT]LOANAGMT. July 15, 1997 4:23pm 7 the Obligations. Mortgagor hereby further assigns to Mortgagee, as security hereunder, any and all future leases, including subleases, any and all extensions, renewals, modifications, and replacements thereof, and all guaranties of tenants' performance thereunder, upon any part of the Mortgaged Property and Improvements (the "Leases"). It is understood and agreed by the parties that this assignment is intended to be and is an absolute assignment from Mortgagor to Mortgagee, and not merely the passing of a security interest; provided, however, that prior to an Event of Default, Mortgagor shall have a license, without joinder of Mortgagee, to enforce the Leases and to collect the Rents as they come due and to retain, use and enjoy the same, but no rents, issues, or profits not due under the terms of any of the leases or rental or other arrangements shall be collected or accepted by Grantor without the prior written consent of Mortgagee. Mortgagor shall, upon request of Mortgagee, execute confirmatory assignments of any specific leases affecting any part of the Mortgaged Property and a separate, recordable assignment of rents and leases, which shall be in addition to and not in replacement of this assignment. 3.2 Representations and Warranties. Mortgagor covenants and represents that said Mortgagor has full right and title to assign said Leases and Rents; that the terms of said Leases have not been changed from the terms in the copies of said Leases submitted to the Mortgagee for approval, if any; that no other assignment of any interest therein have been made; and that there are no existing defaults of a material nature under the provisions of said Leases. Mortgagor will not change, cancel, surrender, or terminate any of said Leases, exercise any option which might lead to such cancellation, surrender, termination or change, alter or modify them or the assignment of the lessees' interest in them, without the prior written consent of the Mortgagee. 3.3 No Obligation Upon Mortgagee. Mortgagee's acceptance of the assignment of Leases and Rents provided for herein shall not obligate Mortgagee to appear in nor defend any proceeding relating to any of the Leases or to the Mortgaged Property, take any action hereunder, expend any money, incur any expenses, or perform any obligation or liability under the Leases, or assume any obligation for any deposits delivered to Mortgagor by any tenant. Mortgagee shall not be liable for any injury or damage to person or property in or about the Mortgaged Property. • WPO:[TDICXSON.TAMARAC-SUNBELTILOANAGMP. Q July 15, 1997 4:23pm (� -9 r�- / 9S, 0 ARTICLE IV SECURITY AGREEMENT 4.1 Se urity Interest. This Mortgage shall be a security agreement between Mortgagor, as debtor, and Mortgagee, as secured party, respecting the Personal Property, and Mortgagor grants to mortgagee a security interest in such Personal Property. In addition to Mortgagee's other rights hereunder, Mortgagee shall have all rights of secured parties under the Uniform Commercial Code as adopted in Florida (hereinafter called the "Code"). Mortgagor shall execute and deliver to Mortgagee all financing statements that may be required by Mortgagee to establish and maintain the validity and priority of Mortgagee's security interest, and Mortgagor shall bear all costs thereof, including all Code searches reasonably required by Mortgagee. 4.2 Representations and warranties. The Mortgagor represents and warrants that the Mortgagor owns and, with respect to any Personal Property hereafter acquired, will own the Personal Property free and clear of any lien, security interest or other charge or encumbrance except for the security interest created by this Mortgage; Mortgagor has the right to encumber the Personal Property and to grant a security interest therein to Mortgagee; and Mortgagor will forever warrant and defend the security interest of Mortgagee against the lawful claims of all persons. 4.3 No Duty Imposed on Mortgagee. The powers conferred on Mortgagee hereunder are solely to protect its interest in the Personal Property and shall not impose any duty upon it to exercise any such powers. Except for the accounting for monies actually received by it hereunder, Mortgagee shall have no duty as to any Personal Property, the preservation or protection of the same or the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining to any Personal Property. ARTICLE V EVENTS OF DEFAULT The occurrence of any one or more of the following events shall constitute an Event of Default hereunder: 5.1 Failure to Pay obligations. If Mortgagor shall fail to pay any part of the Obligations, whether principal or interest, promptly when the same becomes due, or if the Mortgagor shall fail to pay any sum necessary to satisfy and discharge taxes and assessments promptly when due, or to maintain insurance or WPO:[TDICKSON.TAMARAC-SUNBELT)LOANAGMT. July 15, 1997 4:23pm 9 repairs, or the necessary expense of protecting the Mortgaged Property or the Personal Property and executing this Mortgage; or 5.2 Default Under Other Liens. If any of the Mortgaged Property or the Personal Property be levied upon or attached by any legal process, or if there shall occur any default under or with respect to any lien or security interest on the Mortgaged Property or the Personal Property, or if the holder of any such lien institutes foreclosure or other proceedings for the enforcement of its remedies thereunder; or 5.3 Bankruptcy Or Insolvency. If Mortgagor, any permitted successor or assign, or any guarantor of any of the Obligations, shall voluntarily become a party to any insolvency, bankruptcy, composition, receivership or reorganization procedure, shall make any assignment for the benefit of creditors or shall admit in writing such person's inability t. pay its or their debts as they become due; or if any involuntary bankruptcy, insolvency, composition, receivership or other reorganization proceedings be filed against Mortgagor, any permitted successor or assign, or any guarantor of the Obligations, and the same shall not be dismissed within thirty (30) days after the commencement of any such involuntary proceedings; or 5.4 Abandonment. If Mortgagor abandons any material portion of the Mortgaged Property; or 5.5 False�Repz:es�!-ntation. If any statement, representation or warranty in any instrument or document or Loan Documents evidencing or securing the Obligations, any financial statement or any other writing delivered to Mortgagee in connection with the obligations is false, misleading or erroneous in any material respect; or 5.6 Mortgagor's Default Under Leases. If Mortgagor shall default in any of Mortgagor's covenants, obligations and undertakings under any of the Leases and shall fail to cure said default within the time, if any, permitted by any of such Leases for cure thereof; or 5.7 Nonperformance of other„Cgv'enants. If there shall occur any default in Mortgagor's other covenants, warranties, agreements, liabilities, obligations and undertakings as contained in this Mortgage and, except in the case of defaults under Section 2.9 hereof, the same shall not be cured within thirty (30) days after notice by Mortgagee to Mortgagor; or if there shall occur any default beyond any applicable cure or grace period, in Mortgagor's covenants, warranties, agreements, liabilities, obligations and undertakings contained in any other instrument which now or hereafter secures the Obligations. WPO:(TDICKSON.TAMARAC-SUNHELTILOANAGMT. x O July 15. 1997 4:23pm Notice as provided for herein shall be deemed properly given by Mortgagee to Mortgagor if delivered in person, sent by recognized overnight courier service, or mailed by the Mortgage certified U. S. Mail, return receipt requested, to Mortgagor at the address set forth in the first paragraph of this Mortgage. ARTICLE VI REMEDIES If an Event of Default shall occur, Mortgagee may exercise any one or more of the following remedies: 6.1 Acceleration. Mortgagee may declare the entire obligations, principal and interest, immediately due and payable without further notice or demand, the same being hereby expressly waived; provided, however, no penalty for prepayment provided for in the Note shall be waived or reduced because the prepayment was effected by foreclosure or occasioned by acceleration, and Mortgage shall be entitled to collect no less than the highest such penalty provided for therein from the proceeds of such prepayment, before applying the proceeds to interest and principal. 6.2 Enforcement of„Assignment, of Rents and Leases. Mortgagee may (a) terminate the license granted to Mortgagor to collect the Rents (regardless of whether Mortgagee shall have entered into possession of the Mortgaged Property), collect and sue for the Rents in Mortgagee's own name, give receipts and releases therefor, and after deducting all expenses of collection, including reasonable attorneys' fees, apply the net proceeds thereto to any Obligations as Mortgagee may elect; (b) make, modify, enforce, cancel or accept surrender of any Leases, evict tenants, adjust Rents, maintain, decorate, refurbish, repair, clean and make space ready for renting, and otherwise do anything Mortgagee reasonably deems advisable in connection with the Mortgaged Property; (c) apply the Rents so collected to the operation and management of the Mortgaged Property, including the payment of reasonable management, brokerage and attorneys' fees, or to the Obligations; and (d) require Mortgagor to transfer and deliver possession of all security deposits and records thereof to Mortgagee. 6.3 Sale of Personal „Property. Mortgagee shall sell the Personal Property concurrently with and in conjunction with a sale of the Mortgaged Property. Mortgagor stipulates and agrees that a sale of the Personal Property in conjunction with the Mortgaged Properties constitutes a commercially reasonable manner of disposing of the Personal Property. Alternatively, Mortgagee may sell or otherwise dispose of the Personal Property separately WPO:(TDiCKSON.TAMARAC-SUNHELTILOANAGMT. July 15, 1997 4:23pm 11 and apart from the Mortgaged Property in the time and manner provided by the Code. To the extent that the Code shall require prior notice of sale or other disposition of the Personal Property, five (5) days' written notice shall be deemed to be reasonable notice. Mortgagee also may (a) require the Mortgagor to, and the Mortgagor hereby agrees that Mortgagor will at Mortgagor's expense and upon request of the Mortgagee forthwith, assemble all or part of the Personal Property as directed by Mortgagee and make it available to Mortgagee at a place to be designated by Mortgagee which is reasonably convenient to the parties; and (b) sell the Personal Property or any part thereof in one or more parcels at public or private sale for cash or credit or for future delivery, and at such price or prices and upon such other terms as Mortgagee may deem commercially reasonable. Mortgagee shall not be obligated to make any sale of the Personal Property regardless of notice of sale having been given. Mortgagee may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. 6.4 Judicial ard_Other Relief. Mortgagee may proceed by a suit or suits in equity or at law, whether for the specific performance of any covenant or agreement herein contained or in aid of the execution of any power herein granted, or for any foreclosure hereunder or for the sale of the Mortgaged Property or the Personal Property under the judgment or decree of any court or courts of competent jurisdiction. In the event of a conflict between the expressed powers on default granted to Mortgage hereunder and the same or similar or additional powers granted by any state or federal enactment to lenders such as Mortgagee, the latter shall be controlling and this Mortgage shall be deemed to have been amended or supplemented accordingly. 6.5 Receiver. Mortgagee may make application to a court of competent jurisdiction, as a matter of strict right and without notice to Mortgagor or regard to the adequacy of the Mortgaged Property for the repayment of the obligations, for appointment of a receiver of the Mortgaged Property, and Mortgagor does hereby irrevocably consent to such appointment. Any such receiver shall have all necessary and proper powers and duties of receivers in similar cases, including the full power to rent, maintain and otherwise operate the Mortgaged Property upon such terms as may be approved by the court, at Mortgagor's sole expense. 6.6 Method of Payment. If any payment is not paid timely, as contemplated by Section 5.1 hereof, by reason of dishonor of Mortgagor's check, Mortgagee may at any time thereafter require any or all future payments hereunder to be made by wire transfer, or cashier's check, or other certified or guaranteed funds, and to such office as Mortgagee may direct, all at Mortgagor's sole WPO:[TDICKSON.TAMARAC- SUNBELT] LOANAGMT. 1 July 15, 1997 4:23pm • 0 � r� • • C� expense. After notice of such requirement (or notice of a modification thereof), Mortgagee may refuse to accept tender of payment not complying with such requirement, as originally imposed or modified. 6.7 Remedies,Cumula.tive, Concurrent and Nonexclusive. Mortgagee shall have all rights, remedies and recourses granted in this Mortgage and in any other chattel mortgage, deed of trust, security agreement, pledge, contract of guaranty, assignment of leases, or instrument at any time securing the obligations, or otherwise available to it at law or equity (including, without limitation, those granted by the code), and same (a) shall be cumulative, concurrent, and nonexclusive, (b) may be pursued separately, successively or concurrently against Mortgagor or others obligated for the Obligations, or any part thereof or against any one or more of them, or against the Mortgaged Property or the Personal Property, at the sole discretion of Mortgagee, and (c) may be exercised as often as occasion therefor shall arise, it being agreed by Mortgagor that the exercise of or failure to exercise any of same shall in no event be construed as a waiver or release thereof or of any other right, remedy or recourse. ARTICLE VII MISCELLANEOUS 7.1 Waiver of Marshalling and Certgin Rights. To the extent that Mortgagor may lawfully do so, Mortgagor hereby expressly waives any right pertaining to the marshalling of assets or marshalling of liens, the equity of redemption, any statutory or common law right of redemption, homestead, dower, curtesy, marital share, and all other exemptions, or other matter which might defeat, reduce or affect the right of Mortgagee to sell the Mortgaged Property or the Personal Property for the collection of the Obligations, or the right of Mortgagee to the payment of the Obligations out of the proceeds of the Rents and Leases, in preference to every other person and claimant. 7.2 Waiver „of Impairment of Recourse Defenses. Without affecting the liability of Mortgagor or any other person (except any person expressly released in writing) for the payment or performance of any of the Obligations, and without affecting the rights of Mortgagee with respect to any security not expressly released in writing, Mortgagee may, at any time, and from time to time, either before or after the maturity of the Note, and without notice or consent: (a) Release any person liable for payment or performance of all or any part of the obligations; WPO:[TDICXSON.TAMARAC-SUNBELT]LOANAGMT. July 15, 1997 4:23pm 13 (b) Make any agreement extending the time or otherwise altering the terms of payment of all or any part of the Obligations (without limit as to the number of such extensions or the period or periods thereof), or modifying or waiving any obligation, or subordinating, modifying or otherwise dealing with the lien or charge hereof; (c) Exercise or refrain from exercising any right Mortgagee might have; (d) Accept additional security of any kind; and (e) Release or otherwise deal with any property, real or personal, securing the Obligations, including all or any part of the Mortgaged Property herein described. Furthermore, the failure of the Mortgagee to perfect any lien granted herein or in any other Loan Document, to take any action to obtain payment or performance of the Obligations or to exercise any rights or remedies available hereunder shall not relieve Mortgagor or any other person from liability for the payment or performance of the Obligations nor effect a discharge of the lien, security interest or assignment herein granted; it being intended that all "impairment of recourse" and "impairment of collateral" defenses are hereby waived. 7.3 No Waiver. No waiver by the Mortgagee shall be construed as a waiver of a subsequent similar default or any other default by the Mortgagor. No delay by Mortgagee in exercising any right or remedy hereunder, or otherwise afforded by law, shall operate as a waiver thereof or preclude the exercise thereof during the continuance of any default hereunder. No failure of Mortgagee to exercise any option herein given to declare the maturity of the obligations hereby secured, no forbearance by Mortgagee after the exercise of such option, and no withdrawal or abandonment of foreclosure proceedings by the Mortgagee after the exercise of such option, shall be taken or construed as a waiver of its right to exercise such option or to declare such maturity by reason of any past, present, or future default on the part of the Mortgagor. Acceptance by Mortgagee of partial payments shall not constitute a waiver of the default by failure to make full payments. 7.4 Mortaa ee's Consent. Except as otherwise expressly provided herein, in any instance hereunder where Mortgagee's approval or consent is required or the exercise of Mortgagee's judgment is required, the granting or denial of such approval or consent and the exercise of such judgment shall be within the sole discretion of Mortgagee, and Mortgagee shall not, for any reason or to any extent, be required to grant such approval or consent or exercise such judgment. Mortgagee may consult with WPO:(TDIMON.TAMARAC- SUNBELT] LOANAGMT. July 15, 1997 4:23pm 14 7- counsel, and the written advice or opinion of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon. 7.5 Appointment of Attorne . Mortgagor hereby irrevocably appoints Mortgagee its attorney -in -fact, coupled with an interest, with full power and authority in the place and stead of the Mortgagor and in the name of the Mortgagor or otherwise, from time to time after the occurrence of an Event of Default, in the Mortgagee's discretion, to take any action and to execute any instrument which Mortgagee may deem necessary or advisable to accomplish the purposes of this Mortgage, including, without limitation (a) to obtain and adjust insurance required to be maintained pursuant to the provisions of this Mortgage; (b) to ask, demand, collect, sue for, recover, compound, receive and give acquittance and receipts for monies due and to become due in respect of any of the Mortgaged Property, the Leases or the Personal Property; (c) to receive, endorse, and collect any drafts or other instruments, documents, and chattel paper in connection with clause (a) or (b) above; (d) to appear in any action concerning any of the Leases; (e) to deal with planning, zoning and regulatory agencies having jurisdiction over the Mortgaged Property and to effect compliance with the requirements of those agencies, including but not limited to plat amendments or filings convenient or necessary to permit conveyance of the Mortgaged Property as a separate tract or tracts; and (f) to file any claims or take any action or institute any proceedings which Mortgagee may deem necessary or desirable for the collection of any of the Rents or the Personal Property or any amounts otherwise due in connection with the Mortgaged Property or the Personal Property, or otherwise to enforce the rights of Mortgagee with respect to the Mortgaged Property, the Leases and Rents and the Personal Property. Mortgagor hereby ratifies and approves all acts of said attorney; and so long as the attorney acts in good faith it shall have no liability to Mortgagor for any act or omission as such attorney. 7.6 Estoppel Certificate. At the request of the Mortgagee, Mortgagor shall furnish promptly a written statement or affidavit, in such form as may be required by Mortgagee, confirming the unpaid balance of the Obligations, the date to which interest has been paid and that there are no set off to or defenses against any payment or performance of the Obligations or, if there are any such offsets or defenses, specifying them. 7.7 Ex enses of Mortgagee. The Mortgagor will upon demand pay to the Mortgagee the amount of any and all costs and expenses, including without limitation all fees and disbursements of the Mortgagee's counsel and of any experts and agents, which Mortgagee may incur in connection with (a) the preparation and WPO:[TDICKSON.TAMAPAC-SUNBELTILOANAWr. July 15, 1997 4:23pm Z 5 recording of this Mortgage and the financing statements to be filed to perfect the security interests granted herein, (b) the administration of this Mortgage, (c) the sale of collection from, or other realization upon the Mortgaged Property, the Rents and Leases and the Personal Property; (d) the exercise or enforcement of any of the rights of Mortgagee hereunder; or (e) the failure of Mortgagor to perform or observe any of the provisions hereof. 7.8 Indemnification. The Mortgagor agrees to indemnify and hold the Mortgagee harmless from and against any and all claims, losses, and liabilities arising out of or resulting from this Mortgage and the assignment of rents and leases and the grant of security interests contained herein (including, without limitation, enforcement of this Mortgage), except claims, losses, or liabilities resulting solely and directly from the Mortgagee's gross negligence or willful misconduct. 7.9 Payment in Full. If the Mortgagor shall pay and perform all of the Obligations promptly when due, and shall comply with all of the covenants, terms and conditions of the Note and this Mortgage, and any other instrument which also now or hereafter secures the obligations secured hereby, then this conveyance shall become void, the Mortgagee shall release the lien hereof or reconvey by quitclaim the Mortgaged Property herein described at expense of the Mortgagor. However, in the event the Note permits prepayment, Mortgagee may require at least thirty (30) days written notice of Mortgagor's intention to prepay the Note before providing pay-off figures, and may require Mortgagor to submit the proposed release documents to it with that notice. 7.10 Severability. If any provision of this Mortgage is held to be illegal, invalid, or unenforceable under present or future laws effective while this Mortgage is in effect, the legality, validity and enforceability of the remaining provisions of this Mortgage shall not be affected thereby, and in lieu of each such illegal, invalid or unenforceable provision, there shall be added automatically as part of this Mortgage a provision that is legal, valid and enforceable and as similar in terms to such illegal, invalid or unenforceable provision as may be possible. 7.11 Burden and Benefit. This Mortgage shall be binding on Mortgagor, its successors and assigns, and shall inure to the benefit of the Mortgagee and its successors and assigns. 7.12 Applicable Law. This Mortgage shall be governed by and construed in accordance with the laws of the State of Florida. 7.13 Greater Estate. In the event that Mortgagor is the owner of a leasehold estate or any other estate less than a fee WPd:[TDICKSON.TAMARAC- SUNBELT] LOANAOMT. 1 G July 15, 1997 4:23pm • 11 • 9 �I?- /gam • simple with respect to any portion of the Mortgaged Property and/or Personal Property and, prior to the satisfaction of the Obligations and the cancellation of this mortgage of record, Mortgagor obtains a greater estate or interest in such portion of the Mortgaged Property and/or Personal Property, then, such greater estate or interest shall automatically and without further action of any kind on the part of Mortgagor be and become subject to the lien of this Mortgage. 7.14 Extensions, Etc. Mortgagor and Mortgagee may agree to extend the time for payment of all or any part of the Obligations, without limit as to the number of such extensions or the period or periods thereof, or reduce, rearrange or otherwise modify the terms of payment thereof, or accept a renewal note or notes therefor, all without notice to or the consent of any junior lienholder or any other person having an interest in the Mortgaged Property and/or Personal Property subordinate to the lien of this Mortgage, and without the consent of Mortgagor, regardless of whether Mortgagor has then parted with title to the Mortgaged Property and/or Personal Property. No such extension, reduction, modification or renewal shall affect the priority of this Mortgage or impair the security hereof in any manner whatsoever. Mortgagor appoints Mortgagee as its attorney in fact to execute and record any memoranda of such extensions, in Mortgagee's discretion. WPO:(TDiCKSON.TAMARAC-SUN8ELTILOANAGMT. .Tiny 15, 1997 4:23pm 17 f: .q ?_ 1 � IN WITNESS WHEREOF, Mortgagor has caused this Mortgage to be executed by its duly authorized member, on this the day and year first above written. SUN BELT PRECISION PRODUCTS, INC. WITNESS By: Its: Print Name: Print Name: STATE OF FLORIDA COUNTY OF BROWARD The foregoing instrument was acknowledged before me this day of 199_, by as of a corporation, on behalf of the corporation. Name: Notary Public, State of Florida Personally Known Produced Identification Type of Identification: (NOTARY SEAL) � J WPO:[TDICKSON.TAMARAC- SUNBELT] LOANAGMT. 8 July 15, 1997 4:23pm 9 % I c �- 0 "A" • • LOCATED IN BROWARD COUNTY, FLORIDA: [Property description] WPO:(TDICKSON.TAMARAC-SUNBELT]LOANAGMP. July 15. 1997 4:23pm EXHIBIT "B" All fixtures and all personal property of every kind and description whether now owned or hereafter acquired with the proceeds of the Obligation, which are located on or associated with the operation and use of the real estate described in Exhibit "A" including, but not limited to, (a) all machinery, appliances, materials, equipment, furnishings, all heating, plumbing, electrical, lighting, water heater, cooking, refrigeration, incinerating, ventilating and air-conditioning equipment, storm doors and windows, floor coverings, awnings, window coverings, smoke detectors, burglar alarms, fire extinguisher systems and property of like nature, ledgers and books of account and records with respect to such property, together with all accessions, used or intend�vd to be used, now owned or hereafter acquired, and all improvements, appurtenances, substituted and replaced equipment and any proceeds, including insurance proceeds, thereof, (b) those items listed below, (c) all contract rights, leases, rents, income and profits, presently existing or subsequently arising with respect to such real estate and (d) all proceeds, proceeds of hazard insurance, eminent domain or condemnation awards with respect to such real property and improvements and the aforementioned personal • property. 0 WPO:(TDICKSON.TAMARAC-SU"ELT)LOANACMT. July 15, 1997 4:23pm 17� • WPO:(TDICKSON.TAMARAC-SUNBELT)LOANA04T. July 15, 1997 4:23pm EXHIBIT "C" QIiTN:� EXHIBIT B I* PROMISSORY NOTE CITY OF TAMARAC, FLORIDA SUN BELT PRECISION PRODUCTS, INC., BORROWER Dated as of August 1, 1997 11 WPO:(TAICKSON.TAMARAC- SUNBELT) LOANAGMT. July 15, 1997 4:23pm �'), r- / q S--, 1�� THIS NOTE MAY BE ASSIGNED TO FIRST UNION NATIONAL BANK OF FLORIDA, MIAMI, FLORIDA, AS TRUSTEE UNDER A TRUST INDENTURE (THE "INDENTURE") DATED AS OF AUGUST 1, 1997, BETWEEN THE CITY OF TAMARAC$ FLORIDA AND THE TRUSTEE. THIS NOTE IS (OR WILL BE) REGISTERED IN THE NAME OF THE TRUSTEE AND IS THEREAFTER NON -TRANSFERABLE EXCEPT AS PERMITTED IN THE INDENTURE. PRQMISSORY NOTE For Value Received, the undersigned, Sun Belt Precision Products, Inc. , a corporation organized and existing under the laws of the State of Florida (the "Company"), promises to pay to the order of the City of Tamarac, Florida (the "Issuer"), or its registered assigns, the principal sum of not more than Three Million Three Hundred Thousand Dollars ($3,300,000) and to pay interest thereon as specified in this Note. Payments of principal and interest shall be made in the amounts and on the dates set forth in Appendix A attached hereto. This is the Note (the "Note") described in a certain Loan Agreement between the Issuer and the undersigned dated as of August 1, 1997 (the "Loan Agreement"). This Note constitutes the . promise to repay to the Issuer, or its order, funds loaned by the Issuer to the maker which are obtained by the issuance of the Issuer's $3,300,000 Industrial Development Revenue Bonds, Series 1997 (Sun Belt Precision Products, Inc., Project) dated August 1, 1997 (the "Bonds"). The Bonds are being issued to finance the Project described in the Loan Agreement. This Note is subject to the terms and conditions of the Loan Agreement and the Bonds. The principal of and interest hereon shall be payable for the account of the Issuer at the office of First Union National Bank of Florida, Miami, Florida (the "Trustee"). Under the provisions of the Loan Agreement, the undersigned are also obligated to pay certain other amounts, premiums, fees, charges, and expenses, as set forth in Sections 1.6, 1.7, and 7.2 of the Loan Agreement, which amounts shall also constitute the indebtedness of the undersigned under the provisions of this Note. Each installment of principal and interest not paid when due shall bear interest thereafter at the maximum rate permitted by law per annum. If total or partial default be made in the payment of any installment of principal or interest under this Note, as the same matures, the entire principal sum and accrued interest shall at once become due and payable without notice at WPO:tTDICKSON.TAMARAC-SUNBELTjLOANAGMT. 2 July 15, 1997 4:23pm (,�-9?-/5 s- the option of the holder of this Note. Failure to exercise this option shall not constitute a waiver of right to exercise the same in the event of any subsequent default. This Note shall be prepayable only in the circumstances and upon the events described in the Loan Agreement and in the Trust Indenture dated as of August 1, 1997, between the Issuer and the Trustee (the "Indenture"). This Note is the Note so identified and referred to in, and is entitled to the benefits of, the Loan Agreement, as the same may be further amended from time to time, which Loan Agreement, among other things, provides that this Note is secured by a mortgage in favor of the Issuer and the Trustee on the land, buildings, improvements and equipment described in Exhibit "A" attached to the -Mortgage and incorporated by reference herein, and a security interest in certain personal property. GUARANTY: This Note is further secured by the Guaranty Agreement from Interplex Industries, Inc.. The maker hereby waives presentment, demand for payment, protest and notice of dishonor. If this obligation, after default, is placed in the hands of an attorney for collection, the maker will be obligated to pay the holder hereof an additional sum as attorney's fee. Anything contained herein to the contrary notwithstanding, it is the intention of the Issuer and the undersigned that this Note may be assigned to First Union National Bank of Florida, Miami, Florida, as Trustee for the benefit of the holders of the Bonds and any and all rights set out in this note may be enforced by the Trustee without further notice or demand. SUN BELT PRECISION PRODUCTS, INC. By:_ Its. ATTEST: BY Its: • WPO:(TDICKSON.TAMARAC-SUNBELT)LOANAGMT. 3 July 15, 1997 4:23pm (� si-1 s- 0 A EIGNMENT OF NOTE FOR VALUE RECEIVED the within Note is hereby assigned to First Union National Bank of Florida, Miami, Florida, Trustee, pursuant to the provisions of that certain Trust Indenture between the undersigned and the Trustee, dated as of August 1, 1997. • • WPO:(TDICKSON.TAMARAC-SUNBELT1LOANAGMT. July 15, 1997 9:23pm CITY OF TAMARAC, FLORIDA By: Its: ( 1�S EXHIBIT "C" REQUISITION WPO:[TDiCKSON.TAMARAC-SUNBELT]LOANAGMT. July 15. 1997 4:23pm �l �l rwev REQUISITION AND CERTIFICATE First Union National Bank of Florida First Union Financial Center 200 South Biscayne Blvd., 14th Floor Miami, Florida 33131 Attn: Lakshmi McGrath Re: $3,300,000 City of Tamarac, Florida, Industrial Development Revenue Bonds, Series 1997 (Sun Belt Precision Products, Inc., Project) Sirs: 199 On behalf of Sun Belt Precision Products, Inc. (the "Borrower"), I hereby requisition, in accordance with the terms of the Loan Agreement (the "Loan Agreement"; capitalized terms used but not defined herein shall have the meanings assigned thereto in the Loan Agreement) dated August 1, 1997, by and between the Borrower and the City of Tamarac, Florida (the "Issuer"), from the funds representing the proceeds of the sale of the Industrial Development Revenue Bonds, Series 1997 (Sun Belt Precision Products, Inc., Project) issued by the Issuer, and dated as of August 1, 1997 (the "Bonds"), which funds are held by you in the Loan Account in accordance with the Trust Indenture, dated as of August 1, 1997 (the "Indenture"), between the Issuer and you, the sum of $ from the Loan Account to make payment to those payees and in those amounts set forth on ScheduLe A attached hereto for costs of the Project, or for reimbursement to the Borrower of the costs paid to those payees and in those amounts set forth on Schedule A attached hereto. I hereby certify that (a) the payment(s) by the Borrower in connection with the Project, is a proper cost of the Project incurred by the Borrower, and has not been the basis for any prior requisition which has been paid; (b) neither the Borrower nor, to the best of the Borrower's knowledge, the Issuer, has received written notice of any lien, right to lien or attachment upon, or claim affecting the right of any such payee to receive payment of, any of the money payable under this requisition to any of said payees named on Schedule A attached hereto, or if any WPO:(TDICKSON.TAMARAC-SUXBELTJLOANAGMT, July 15. 1997 4:23pm notice of any such lien, attachment or claim has been received, such lien, attachment or claim either has been released or discharged or will be released or discharged upon payment of this requisition; (c) no Event of Default (as defined in the Loan Agreement) or event or default which after notice or lapse of time or both would constitute such a Default has occurred and not been waived; and (d) the amount requisitioned hereby is being expended in a manner consistent in all material respects with the representations, warranties and covenants of the Borrower set forth in the Loan Agreement and the Borrower's Tax Certificate. [The following paragraph is to be completed and complied with when any requisition and certificate includes any item for payment of machinery, equipment and other personal property] Attached hereto as 'Schedule is a true and correct listing (including serial numbers, if applicable, or other appropriate identification) of all items of machinery, equipment and other personal property for which payment is requested hereunder together with an executed UCC-1 Financing Statement which has been filed with the Clerk of the Circuit Court of Broward County, Florida, perfecting the security interest of the Trustee in such personal property. [The following paragraph is to be completed when any requisition and certificate includes any item for payment for labor or to contractors, builders or materialmen.] I hereby certify that insofar as the amount covered by the above requisition includes payments to be made for labor or to contractors, builders or materialmen, including payment for equipment, materials or supplies, in connection with the Project, (i) all obligations to make such payments have been properly incurred, (ii) any such labor was actually performed and any such equipment, materials or supplies were actually furnished or installed in or about the Project and are a proper cost of the Project, (iii) such equipment, materials or supplies either are not subject to any lien or security interest or, if the same are so subject, such lien or security interest will be released or discharged upon payment of this requisition, and (iv) attached hereto are current contractor's lien waivers and certification, including contractor's draw request on AIA form G702 or its equivalent signed by the contractor. Authorized Borrower Representative WPO:(TDICKSON.TAMARAC- SUNBELT) LOANAGMT. July 15, 1997 4:23pm • EXHIBIT "C" 0 GUARANTY AGREEMENT THIS GUARANTY AGREEMENT, dated as of May 1, 1997, by and between INTERPLEX INDUSTRIES, INC., a Delaware corporation (the "Guarantor"), and FIRST UNION NATIONAL BANK, a national banking association, as Trustee (together with any successor Trustee or Co -Trustee under the Indenture described below, the "Try stiee"), and the CITY OF TAMARAC, FLORIDA, a public body corporate and politic, organized and existing under and by virtue of the laws of the State of Florida (the "Issuer"); W I T N E S S E T A: WHEREAS, arrangements have been made pursuant to a Trust Indenture of even date herewith (the "Indenture") between the Issuer and the Trustee for the issuance and sale by the Issuer of its Industrial Development Revenue Bonds, Series 1997 (Sun Belt Precision Products, Inc., Project), in the original aggregate principal amount of $3,300,000 and for the possible issuance of Additional Bonds as provided in the Indenture (collectively, the "Bonds"); and WHEREAS, the proceeds of the sale of the Bonds are to be loaned by the Issuer to Sun Belt Precision Products, Inc., a Florida corporation (the "Borrower") pursuant to a Loan Agreement of even date herewith (the "L an Agreement") between the Issuer and the Borrower, such loan to be used to finance the costs of the Project (as defined in the Loan Agreement); and WHEREAS, the Guarantor will materially and directly benefit from the issuance and sale by the Issuer of the Bonds and the loan of the proceeds thereof as hereinabove described and, therefore, to provide an inducement to the Issuer to issue and deliver the Bonds to Greenwich Partners, LLC (the "Underwriter") for sale to the purchasers thereof (the "Purchasers"), the Guarantor is willing to enter into this Guaranty Agreement; NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, including the covenants, terms and conditions hereinafter appearing, the Guarantor does hereby covenant and agree with the Issuer and the Trustee as follows: ARTICLE I The Guaranty 1.1 The Guaranty. The Guarantor hereby unconditionally and 0 irrevocably guarantees to the Issuer and the Trustee for their benefit and the benefit of the Purchasers and any future owners of WPO:[TDICXSON.FORMSIGUARANTY-CORPORATE. July 15, 1997 3:38pm TEMP RES4 #7948 the Bonds ("Owners") (i) the full and prompt payment by the Issuer of all obligations under the Loan Agreement, including without limitation, its obligations to pay interest (including, to the extent applicable, interest at any default rate), premium, if any, and principal when and as the same shall become due whether at the stated maturity thereof, by acceleration or call for prepayment, and (ii) the payment and performance of all other obligations of Borrower arising under the Indenture, the Loan Agreement (including the obligation to make additional payments in the event of a Determination of Taxability and to pay fees and expenses), the Note and the Mortgage (both as defined in the Indenture) (together, the "Bond Documents"), prior to the expiration of any grace period applicable thereto. 1.2 Guaranty Unconditional. This Guaranty Agreement shall be a continuing, absolute and unconditional guaranty and shall be irrevocable and remain in full force and effect until the entire principal of, premium, if any, and interest on the Bonds, and any other amount payable under the Bond Documents, shall have been paid or provided for according to the terms of the Bond Documents. The obligations of the Guarantor hereunder shall arise absolutely and unconditionally when the Bonds shall have been issued, sold and delivered to the Purchasers by the Issuer. 1.3 Operation of Guarant . This is a guaranty of payment and not of collection, and the Guarantor expressly waives any right to require that any action be brought against the Borrower or the Issuer or to require that resort be had to any security, whether held by or available to the Trustee or the Issuer, or to any other guaranty. If the Borrower shall default in payment of the principal of, premium, if any, or interest on or any other amount payable under the Bond Documents when and as the same shall become due, whether by acceleration, call for prepayment, or ocherwise, or if the Borrower shall default in the payment and performance of any or all other obligations of the Borrower arising under, or any default or event of default shall otherwise occur pursuant to any of the Bond Documents, or upon the occurrence of any other Event of Default (as defined in Section 5.1 hereof) hereunder, the Guarantor, upon demand by the Trustee or its successors or assigns, will promptly and fully make such payments and/or render such performance. The Guarantor will pay all reasonable costs and expenses, including attorneys' fees (whether or not suit is brought and whether incurred at trial, upon rehearing, retrial or appeal or in any bankruptcy proceeding), paid or incurred by the Issuer or the Trustee or their successors or assigns, under this Guaranty Agreement, the amount of such attorneys' fees to be without regard to any statutory presumption. All payments by the Guarantor shall be made in immediately available coin or currency of the United States of America which on the respective dates of payment thereof is legal tender for the payment of public and private debts. Each default in payment of the principal of, premium, if any, or WPO:ITDICKSON.FORMSIGUARANTY-CORPORATE. 2 July 15, 1997 3:38pm • A • interest on or any other amount payable under the Loan Agreement, or the occurrence of any other Event of Default hereunder or any of the Bond Documents, shall give rise to a separate cause of action hereunder, and separate suits may be brought hereunder as each cause of action arises. The Issuer or the Trustee or their successors or assigns, in its sole discretion, shall have the right to proceed first and directly against the Guarantor and its successors and assigns. 1.4 OblicTation of the Guarantor Absolute. The obligations of the Guarantor hereunder shall not be impaired, modified, released or limited by any occurrence or condition whatsoever, including without limitation (a) any compromise, settlement, release, waiver, renewal, extension, indulgence or modification of or change in any of the obligations and liabilities of the Issuer or the Borrower contained in the Bonds or in any of the Bond Documents, (b) any impairment, modification, release or limitation of the liability of the Issuer, the Borrower or any of their respective estates in bankruptcy, or any other security for the Bonds or the Bond Documents, or any remedy for the enforcement thereof, resulting from the operation of any present or future provision of the Bankruptcy Code, or other statute or from the decision of any court, (c) the assertion or exercise by the Issuer, the Trustee,, the Borrower or any of their respective legal representatives, successors or assigns, of any rights or remedies under any of the Bond Documents, including this Guaranty Agreement, or their delay in or failure to assert or exercise any such rights or remedies, (d) the assignment or mortgaging or the purported assignment or mortgaging of any property as security for the Bonds or the Bond Documents or for any of the Issuer's and/or the Borrower's obligations under any of the Bond Documents, including all or any part of the interests of the Issuer in the Bond Documents, (e) the invalidity or unenforceability of any of the Bond Documents, or (f) the limitation of the Issuer's liability for the payment of the principal of, premium, if any, and interest on the Bonds solely to revenues and receipts derived by it from the Bond Documents. 1.5 Waiver of Notice. The Guarantor unconditionally waives (a) notice of any of the matters referred to in Section 1.4 hereof and (b) any demand (except as specified in Section 1.3 hereof), proof or notice of nonpayment of principal, premium, if any, or interest on the Bonds or the Note, or other payments of money required by the Bond Documents, or of default by the Issuer, the Borrower, the Trustee or any other obligor or their respective legal representatives, successors or assigns, in performing and keeping any other covenant, condition or agreement required of them under the Bond Documents. 1.6 No Right of Set off. No act of commission or omission of any kind or at any time upon the part of the Issuer, the Borrower, is the Trustee or any Owner or their respective legal representatives, WPD:(TDICKSON.FORMS)GUARANTY-CORPORATE. 3 July 15, 1997 3:38pm 17 i 's' successors or assigns in respect of any matter whatsoever shall in any way affect or impair the rights of the Trustee or the Issuer to enforce any right, power, or benefit under this Guaranty Agreement, and no setoff, recoupment, claim, reduction or diminution of any obligation or any defense of any kind or nature which the Guarantor has or may have against the Issuer, the Borrower, the Trustee, any Owner or any other obligor or any such legal representative, successor or assign shall be available to or asserted by the Guarantor in any suit or action brought by the Issuer or the Trustee, or their respective legal representatives, successors or assigns, to enforce any right, power or benefit under this Guaranty Agreement. Nothing in this Guaranty Agreement shall be construed as a waiver by the Guarantor of any rights or claims that it may have against the Issuer, the Borrower, the Trustee, any Owner or any other guarantor separately, it being the intent of this Guaranty Agreement that the Guarantor shall be unconditionally and absolutely obligated to perform fully all of its obligations, agreements and covenants hereunder for the benefit of the Issuer, the Trustee and the Owners. 1.7 No Right to Contribution or Subrogation. Until payment in full of the Bonds and satisfaction in full of all of the other obligations of the Issuer and/or the Borrower under the Bond Documents, the Guarantor shall not have any rights of contribution or subrogation against the Borrower or any other guarantor of the Bonds or such other obligations and the Guarantor may not bring any suit or cause of action against the Borrower or any other guarantor of the Bonds or such other obligations based on any contribution or subrogation rights which the Guarantor may have against the Borrower or any other guarantor of the Bonds or such other obligations. ARTICLE II Representations by Guarantor The Guarantor hereby represents and warrants to the Trustee and the Issuer, which representations and warranties shall be continuing representations and warranties so long as this Guaranty Agreement remains in force and effect: 2.1 Incorporation. The Guarantor is a corporation duly organized, existing and in good standing under the laws of the State of Delaware, and has the corporate power to own its properties and to carry on its business as now being conducted, and is duly qualified as foreign corporation to do business in every jurisdiction in which the nature of its business makes such qualification necessary and is in good standing in such jurisdictions. 0 WPO:(TDICKSON.FORMS]GUARANTY-CORPORATE, 4 July 1S, 1997 3:38pm 2.2 Power and Authority; Binding Effect; etc. The Guarantor is duly authorized under all applicable provisions of law to execute, deliver and perform this Guaranty Agreement, and all corporate action on its part required for the lawful execution, delivery and performance hereof has been duly taken and this Guaranty Agreement has been duly executed and delivered by the Guarantor and constitutes the valid and binding obligation of the Guarantor, enforceable against the Guarantor in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors, rights generally. Neither the execution of this Guaranty Agreement, nor the fulfillment of or compliance with its provisions and terms, will (A) conflict with, or result in a breach of the terms, conditions or provisions of, or constitute a violation of or default under any applicable law, regulation, judgment, writ, order or decree to which the Guarantor or any of its properties are subject, or the Charter or Bylaws of the Guarantor, or any agreement or instrument to which the Guarantor is now a party or by which it, or any of its properties, are bound or affected (other than agreements or instruments for which appropriate waivers, consents or approvals have been obtained or made), or (B) create any lien, charge or encumbrance upon any of the property or assets of the Guarantor pursuant to the terms of any agreement or instrument to which the Guarantor is a party or by which it, or any of its properties are bound. 2.3 Title to As Its. The Guarantor rantor has good and marketable title to, or valid and existing leasehold interests in, its properties and assets. 2.4 Financial Statements. The financial statement of the Guarantor, dated I delivered to the Underwriter is true, correct and complete in all material respects. There has been no material change in the financial condition of the Guarantor since the date of such financial statement. 2.5 Contingent Liabilities. The Guarantor has not guaranteed any obligations of others and is not, to the knowledge of the Guarantor, contingently liable in any manner, direct or indirect, except as previously disclosed to the Underwriter. 2.6 Litigation. There are no actions, suits or proceedings pending or, to the knowledge of the Guarantor, threatened, against or affecting the Guarantor, at law or in equity, or before or by any court, arbitrator or governmental or administrative body, agency or instrumentality which, if determined adversely to the Guarantor, might materially adversely affect the properties, business or condition, financial or otherwise, of the Guarantor. 2.7 Taxes. The Guarantor has filed or has obtained appropriate extensions of time to file all income tax returns WPO:(TDICKSON.FORMSIGUARANTX-CORPORATE. 5 July 15, 1997 3:38pm required to be filed by it and all taxes shown thereon have been paid, and no controversy in respect of additional income taxes, state, federal or foreign, of the Guarantor is pending, or, to the knowledge of the Guarantor, threatened. The Federal and state income taxes of the Guarantor or any corporation merged with the Guarantor have been examined and reported on or closed by applicable statutes for all fiscal years to and including the fiscal year ending September 30, 1993. 2.8 Contract or Restriction Affecting the Guarantor. The Guarantor is not a party to, or bound by any contract or agreement or subject to any charter or other corporate restrictions which, in the opinion of the Guarantor, materially and adversely affects the business, properties or condition, financial or otherwise, of the Guarantor. 2.9 Trademarks_ Franchises and Licenses. The Guarantor owns, _ possesses, or has the right to use all necessary patents, licenses, franchises, trademarks, trademark rights, trade names, trade name rights, copyrights, trade secrets, know how and confidential commercial and proprietary information to conduct its business as now conducted, without known conflict with any patent, license, franchise, trademark, trade name, copyright or other proprietary right of any other Person. 2.10 No Default. The Guarantor is not in default in the . performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement or instrument to which it is a party or by which it may be bound, the effect of which default would allow any Person to cause such obligation under the agreement or instrument to become due prior to its stated maturity. 2.11 Governmen_tal_Authority. The Guarantor has received the written approval of all Federal, state, local and foreign governmental authorities, if any, necessary to carry out the terms of this Guaranty Agreement, and no further governmental consents or approvals are required in the making or performance of this Guaranty Agreement. 2.12 No Untrue Statements. Neither this Guaranty Agreement nor any reports, schedules, certificates, agreements or instruments heretofore or simultaneously with the execution of this Guaranty Agreement delivered to the Underwriter or the Trustee by the Guarantor in connection with the issuance and sale of the Bonds contains any misrepresentation or untrue statement of fact or omits to state any material fact necessary to make this Guaranty Agreement or any such reports, schedules, certificates or instruments not misleading. • WPO:(TDICKSON.FORMSIGUARANTY-CORPORATE. July 15, 1997 3:38pm 6 2.13 ERISA RegMirements. The Guarantor has not incurred any material accumulated funding deficiency within the meaning of ERISA, or incurred any material liability to the Pension Benefit Guaranty Corporation established under ERISA (or any successor thereto under ERISA) in connection with any employee pension benefit plan established or maintained by any of them or by any Person under common control with any of them (within the meaning of Section 414(c) of the Internal Revenue Code of 1986, as amended, or of Section 4001(b) of ERISA), or in which employees of any of them are entitled to participate. No Reportable Event (as defined in ERISA) in connection with any such plan has occurred or is continuing. ARTICLE III Affirmative Covenants Until all the obligations of the Borrower under the Bond Documents to be performed and paid shall have been performed and paid in full (or as otherwise set forth herein) , and for so long as the Bonds or any portion thereof shall be outstanding, unless the Trustee shall otherwise consent in writing, the Guarantor will: 3.1 Financial Statements. Deliver to the Trustee and Greenwich Partners, LLC (the "Und rwr'ter") (i) within thirty (30) days after the end of each fiscal quarter of the Guarantor a profit and loss statement and balance sheet of the Guarantor, prepared in accordance with generally accepted accounting principles applied on a consistent basis and certified by the Chief Financial Officer of the Guarantor as being true and correct, and (ii) within ninety (90) days after the end of each fiscal year of the Guarantor a profit and loss statement and reconciliation of surplus statement of the Guarantor for such year, and a balance sheet as of the end of such year, audited without scope limitations by independent certified public accountants of recognized standing selected by the Guarantor, together with a copy of the annual management letter prepared by the Guarantor's independent certified public accountants, all prepared in accordance with generally accepted accounting principles applied on a consistent basis. 3.2 Taxes and Liens. Promptly pay, or cause to be paid, all taxes, assessments or other governmental charges (if any) which may lawfully be levied or assessed upon the income or profits of the Guarantor, or upon any property, real, personal or mixed, belonging to the Guarantor or upon any part thereof, and also any lawful claims for labor, material and supplies which, if unpaid, might become a lien or charge against any such property; provided, however, the Guarantor shall not be required to pay any such tax, assessment, charge, levy or claim so long as the validity thereof shall be actively contested in good faith by proper proceedings and WPO:(TDICXSON.FORMS]GUARANTY-CORPORATE. July 15, 1997 3:38pm 7 against which reserves, a bond, or other provision for payment shall have been established; but provided further that any such tax, assessment, charge, levy or claim shall be paid forthwith upon the commencement of proceedings to foreclose any lien securing the same unless a surety bond satisfactory to the Issuer is obtained and delivered to the Trustee. 3.3 Business and Existence. Do or cause to be done all things necessary to preserve and to keep in full force and effect its corporate existence, all material rights and franchises, trade names, patents, trademarks, licenses, permits, copyrights, trade secrets and other proprietary information. 3.4 Insurance on Pra erties. Keep its business and properties insured at all times by responsible insurance companies and carry such types and amounts of insurance as are customarily carried by companies operating similar businesses, including without limitation, fire and extended coverage property insurance and workers' compensation insurance. Upon execution and delivery hereof, and thereafter upon request by the Trustee, the Guarantor shall deliver to the Trustee certificates from insurance companies evidencing such coverage and such other supporting documentation as the Trustee shall request. 3.5 Maintain Pra ert . Maintain its properties in good order and repair, ordinary wear and tear excepted, and, from time to time, make all needful and proper repairs, renewals, replacements, additions and improvements thereto. 3.6 Ricrht of Inspection. Permit any Person designated by the Trustee to visit and inspect any of the properties, corporate books and financial reports of the Guarantor and to discuss its affairs, finances and accounts with its principal officers and accountants, all at such reasonable times and as often as the Trustee may reasonably request. 3.7 Notice of Default. Immediately give notice to the Trustee and the Underwriter of the occurrence of any Event of Default (as defined in Section 5.1 hereof) hereunder, or an event of which the Guarantor has knowledge which would constitute such an Event of Default or default but for the requirement that notice be given or time elapse or both hereunder or under any other obligation of the Guarantor, spdcifying the nature thereof, the period of existence thereof and what action the Guarantor proposes to take with respect thereto. 3.8 Suits or Other Proceedings. Immediately give the Trustee „ written notice of any litigation, dispute or proceeding involving a claim for $100,000.00 or more in excess of amounts covered in full by applicable insurance or any attachment, levy, execution, or other process being instituted against any assets having a fair is WPO:(TDICKSON.FORMSIGUARANTY-CORPORATE. July 15, 1997 3:38pm • • Ll market value in excess of $100,000.00 of the Guarantor and, if requested by the Trustee, bond, establish and maintain reserves, or otherwise provide for payment therefor in amounts satisfactory to the Trustee. 3.9 Observe All Laws. Conform to and duly observe all laws, regulations and other valid requirements of any regulatory authority with respect to the conduct of its business. 3.10 ERISA. Comply with all requirements of ERISA applicable to it, except where the same are being contested in good faith by appropriate proceedings diligently prosecuted, appropriate reserves therefor are maintained and enforcement thereof has been stayed pending such contest, and furnish to the Trustee as soon as possible and in any event within thirty (30) days after the Guarantor or the duly appointed administrator of a Plan (as defined in ERISA) knows or has reason to know that any Reportable Event (as defined in ERISA) with respect to any Plan has occurred, a statement of the chief financial officer of the Guarantor describing in reasonable detail such Reportable Event and any action which the Guarantor proposes to take with respect thereto, together with a copy of the notice of such Reportable Event given to the Pension Benefit Guaranty Corporation or a statement that said notice will be filed with the annual report to the United States Department of Labor with respect to such Plan if such filing has been authorized. 3.11 Payment of Obligations. Pay, when due, all its obligations and liabilities, except where the same (other than Indebtedness) are being contested in good faith by appropriate proceedings diligently prosecuted and appropriate reserves for the accrual of same are maintained and, in the case of judgments, enforcement thereof has been stayed pending such contest. ARTICLE IV Nggative„Covenants Until all the obligations of the Borrower under the Bond Documents to be performed and paid shall have been performed and paid in full, and for so long as the Bonds or any portion thereof shall be outstanding, unless the Trustee shall otherwise consent in writing, the Guarantor will not: 4.1 Sale of Assets. The Guarantor covenants that, unless the Issuer shall otherwise consents in writing, it will not sell, assign, transfer, convey, grant a lien on or security interest in or otherwise dispose of all, or substantially all of its assets. WPO:[TDICKSON.FORMSIGUARAt=-CORPORATE. 9 July 15, 1997 3:38pm (�.5i7-i S 4.2 Mererer Consolidation Dissolution Etc. The Guarantor will not, without the Issuer's prior written consent (such consent being within the sole and absolute discretion of the Issuer), consolidate with or merge into any other corporation, or permit another corporation to merge into it (unless the Guarantor is the surviving corporation), or dissolve or'take or omit to take any action which would result in its dissolution. ARTICLE V Default 5.1 Events of Default. Each of the following shall constitute an "Event of Default" by the Guarantor under this Guaranty Agreement, whereupon the Bonds and all indebtedness of the Issuer under the Bonds and the Issuer's and/or the Borrower's indebtedness under the Bond Documents will, at the option of the Trustee (or the Owners, as provided in the Indenture), or its successors or assigns, immediately become due and payable by the Guarantor without presentation, demand, protest or notice of any kind (except as hereinafter expressly provided), all of which are hereby expressly waived, and the Guarantor will pay the reasonable attorneys' fees (without regard to any statutory presumption) incurred by the Trustee, or its successors or assigns, in connection with such Event of Default or recourse against any collateral held by the Trustee, or its successors or assigns, as security for the indebtedness guaranteed by the Guarantor (whether or not suit is brought and whether incurred at trial, upon rehearing, retrial or appeal or in any bankruptcy proceeding). (a) Nonpayment of any principal payment, interest on or any other amount payable by the Borrower under the Bond Documents, when due, whether at maturity, by acceleration or otherwise; or (b) The occurrence of an "Event of Default" or a default or event of default under any of the Bond Documents; or (c) If the Guarantor defaults in the payment of principal when due, whether by acceleration or otherwise, or interest on any other indebtedness of Guarantor with a principal amount in excess of $25,000 beyond any period of grace provided with respect thereto, or in the performance of any other agreement, term or condition contained in any agreement under which any such indebtedness is created, if the effect of such default is to cause, or permit the holder or holders of such indebtedness (or a trustee for such holder or holders) to cause, such indebtedness to become due prior to its stated maturity; or (d) If any representation or warranty made by or on behalf of the Guarantor herein, or in any writing furnished by or WPO:[TDICKSON.FORMSIGUARANTY-CORPORATE. Q July 15, 1997 3:38pm --�_,.7 I9�- on behalf of the Guarantor in connection with the issuance and sale of the Bonds or pursuant to this Guaranty Agreement or the Bond Documents, including, but not limited to any report, certificate, or financial statement so furnished, shall have been false, misleading or incomplete in any material respect on the date as of which made; or (e) If the Guarantor defaults in the performance or observance of any other agreement, covenant, term or condition contained herein, and such default shall not have been remedied within thirty (30) days after written notice thereof shall have been received by it from the Trustee; or (f) Filing by the Guarantor of a voluntary petition in bankruptcy or a voluntary petition or an answer seeking reorganization, arrangement, readjustment of its debts or for any other relief under the Bankruptcy Code, or under any other insolvency act or law, state or Federal, now or hereafter existing, or any other action of the Guarantor indicating its consent to, approval of, or acquiescence in any such petition or proceeding; the application by the Guarantor for, or the appointment by or with the consent or acquiescence of the Guarantor of, a receiver, a trustee or a custodian for the Guarantor; the application by the Guarantor for, or the consent to or acquiescence of the Guarantor in, an assignment for the benefit of creditors; or the inability of the Guarantor or the admission by the Guarantor or in writing of its inability to pay its debts as they mature: or (g) Filing of an involuntary petition against the Guarantor in bankruptcy or seeking reorganization, arrangement, readjustment of its debts or for any other relief under the Bankruptcy Code, or under any other insolvency act or law, state or Federal, now or hereafter existing; or the involuntary appointment of a receiver, a trustee or a custodian of the Guarantor or for all or a substantial part of its property; the issuance of a warrant of attachment, execution or similar process against any substantial part of the property of the Guarantor and the continuance of any of such events for thirty (30) days undismissed or undischarged; or (h) If a final judgment, which with other outstanding final judgments against the Guarantor exceeds an aggregate of $25,000.00 shall be rendered against the Guarantor and if within sixty (60) days after entry thereof such judgment shall not have been discharged or execution thereof stayed pending appeal, or if within sixty (60) days after the expiration of any such stay such judgment shall not have been discharged; or (i) The (i) entry by any Federal, state, territorial, foreign or other court or governmental department, commission, board or agency, or any arbitral tribunal of any writ, order, judgment, mandamus or other decree (whether temporary, permanent, WPO:[TDICKSON.FORMS)GUARANTY-CORPORATE. July 15, 1997 3:38pm Z r g?-/1 sr final or subject to further appeal or review), requiring by its terms payment by the Guarantor of, or (ii) consent or acknowledgement by the Guarantor to, or its acquiescence in, any allocation or assessment (whether interim or final.) by any steering committee, any successor thereof, or any similar body or other Person requiring by its terms payment by the Guarantor of, (iii) payment by the Guarantor of, an amount or amounts during any period of twelve (12) consecutive calendar months exceeding in the aggregate the sum of $100,000.o0 (in excess of amounts (A) funded by reserves theretofore established by the Guarantor or (S) the payment of which is provided by applicable insurance maintained by the Guarantor) in connection with any current or future actual or potential liability of the Guarantor under applicable state, Federal or local environmental laws, statutes, ordinances, rules or regulations for the generation, transportation, storage, disposal or emission of Hazardous Materials (including clean-up costs, administrative and operating expenses, experts and consultants' fees and expenses and attorneys' fees and expenses); (j) If the Guarantor seeks to cancel this Guaranty Agreement for any reason whatsoever; then at any time thereafter, the Trustee may proceed hereunder and shall have the right to proceed first directly against the Guarantors, and the Trustee shall have no obligation to proceed against or exhaust any other remedy or remedies which it . may have and without resorting to any other security, whether held by or available to the Trustee or the Issuer. 5.2 No Remedy Exclusive. No remedy herein conferred upon or reserved to the Trustee is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Guaranty Agreement or now or hereafter existing at law or in equity or by statute. ARTICLE VI Miscellaneous 6.1 Capitalized Terms. Capitalized terms used in this Guaranty Agreement shall have the meanings ascribed to such terms in the Loan Agreement and/or the Indenture, unless otherwise defined herein or if the context clearly requires otherwise. 6.2 Successors and Assigns. This Guaranty Agreement shall be binding upon the Guarantor, its legal representatives, successors and assigns and all rights against the Guarantor arising under this Guaranty Agreement shall be for the sole benefit of the Issuer and the Trustee (on behalf of the Owners), their respective legal WPO:(TDICKSON.FORMS]GUARANTY-CORPORATE. July 15, 1997 3:38pm 12 representatives, successors and assigns, all of whom shall be entitled to enforce performance and observance of this Guaranty Agreement to the same extent as if they were parties hereto. The Trustee (and the Issuer with respect to collection of its administrative expenses due under the Loan Agreement) shall be entitled to bring any suit, action or proceeding against the Guarantor for the enforcement of any provision of this Guaranty Agreement in its name, without exhausting any other remedies which it may have pursuant to the terms of this Guaranty Agreement, the Bonds or any of the other Bond Documents and without resort to any other security, whether held by or available to the Issuer or the Trustee. 6.3 Notices. All notices, requests and demands to or upon the respective parties hereto shall be deemed to have been given or made when delivered by hand or mailed first class, certified or registered mail, postage prepaid, addressed as follows or to such other address as the parties hereto shall have been notified pursuant to this Section 6.3: Guarantor: Interplex Industries, Inc. 1200-12 28th Avenue Flushing, NY 11354 Attention: Chief Financial Officer . Issuer: City of Tamarac, Florida 7525 N.W. 88th Ave. Tamarac, Florida 33321-2401 Attention: City Attorney Trustee: First Union National Bank 200 South Biscayne Blvd., 14th Floor Miami, Florida 33131 Attention: Corporate Trust except in cases where it is expressly herein provided that such notice, request or demand is not effective until received by the party to whom it is addressed, in which event said notice, request or demand shall be effective only upon receipt by the addressee. 6.4 Amendment• Consent of Issuer. This Guaranty Agreement may be amended or modified only upon an agreement in writing of the Guarantor, the Trustee and the Issuer. The consent of the Issuer shall not be required for any amendment hereof or the waiver of any provision hereof by the Trustee, except to the extent any such amendment or waiver affects the Issuer by reducing or limiting the guaranty provided hereunder for the obligations of the Issuer under the Indenture or the Bonds. 6.5 DiachaKcre.. of the Guar1* antor. Upon payment in full of the Bonds, and satisfaction in full of all other obligations of the WPO:(TDZCKSON.PORMS]GUARANTy_CORPORATE. July 15, 1997 3:38pm 13 Guarantor hereunder, including the obligations of the Guarantor contained in Article I hereof relating to payments upon a Determination of Taxability, all liability of the Guarantor hereunder shall cease and be discharged and, upon request, the Issuer and/or the Trustee shall execute and deliver to the Guarantor an appropriate instrument in writing evidencing the release and discharge of the Guarantor from any and all such further liability under this Guaranty Agreement; provided, however, that the Guarantor's liability for payments upon the occurrence of a Determination of Taxability with respect to the Bonds shall survive payment of the Bonds. This Guaranty Agreement shall be retained by the Trustee until the period has elapsed without claim within which the Internal Revenue Service may claim that interest payable pursuant to the Bonds is not exempt from federal income taxes. 6.6 Effect of Delay and Waivers. No delay or omission to exercise any right or power accruing upon any default, omission or failure of performance hereunder shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Trustee to exercise any remedy now or hereafter existing at law or in equity or by statute, it shall not be necessary to give any notice, other than such notice as may be herein expressly required. In the event any provision contained in this Guaranty Agreement should be . breached by any party and thereafter waived by the other party so empowered to act, such waiver shall be limited to the particular breach hereunder. No waiver, amendment, release or modification of this Guaranty Agreement shall be established by conduct, custom or course of dealing, but solely by an instrument in writing duly executed by the parties thereunto duly authorized by this Guaranty Agreement. 6.7 Counterparts. This Guaranty Agreement may be executed simultaneously in several counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 6.8 Severabilit . The invalidity or unenforceability of any one or more phrases, sentences, clauses, Sections or Articles contained in this Guaranty Agreement shall not affect the validity or enforceability of the remaining portions of this Guaranty Agreement, or any part thereof. 6.9 Cost of Collection. The Guarantor shall be liable for the payment of all fees and expenses, including attorneys, fees (without regard to any statutory presumption), incurred in connection with preparation, execution, delivery or enforcement of this Guaranty Agreement. 0 WPO:[TDICKSON.FORMSIGUARANTY-CORPORATE. July 15, 1997 3:38pm 14 6.10 Set Off, Upon the occurrence of an Event of Default hereunder, the Owners, or the Trustee on behalf of the Owners, are hereby authorized, without notice to the Guarantor, to set off, appropriate and apply any and all monies, securities and other properties of the Guarantor hereafter held or received by or in transit to the Trustee or such Bondholders from or for the Guarantor, against any indebtedness evidenced by the Bonds held by such Owners. 6.11 Reinstatement. The Guarantor agrees that this Guaranty Agreement shall continue to be effective or be reinstated, as the case may be, at any time payment received by the Trustee or any Owner under the Bonds, any of the Bond Documents or this Guaranty Agreement is rescinded or must otherwise be restored upon the bankruptcy or reorganization of any of the Issuer, the Borrower, the Guarantor, or otherwise. 6.12 Consent to Jurisdiction• venue. In the event that any action, suit or other proceeding is brought against the Guarantor by or on behalf of the Trustee or the Owners whether in the name of the Trustee, the Owners or the Issuer, to enforce the observance or performance of any of the provisions of this Guaranty Agreement or of the Loan Agreement or, to the extent permitted by law, the Mortgage, including without limitation, the collection of any amounts owing thereunder, the Guarantor hereby irrevocably, to the extent permitted by law, (i) consents to the exercise of jurisdiction over the Guarantor and its property by the United States District Court, Southern District of Florida, and by the Florida Circuit Court in and for Broward County, Florida, (ii) waives any objection it might now or hereafter have or assert to the venue of any such proceeding in any court described in clause (i) above, and (iii) constitutes and appoints its President at the Guarantor's address as agent for service of process upon it if so elected by the Trustee in connection with any such proceeding. 6.13 Indemnification. The Guarantor hereby agrees to indemnify and defend the Issuer, the Trustee and the Owners and hold them harmless from and against any and all claims, losses, liabilities or damages in any way growing out of or resulting from this Guaranty Agreement, including without limitation, the enforcement of this Guaranty Agreement. The Guarantor hereby further agrees to indemnify and hold harmless the Issuer, the Trustee and the Owners from any loss suffered or occasioned by the failure of the Borrower to satisfy its respective obligations under any and all of the Bond Documents. The obligations of the Guarantor under this Section 6.13 shall be independent primary obligations of the Guarantor hereunder. The agreement to indemnify contained in this Section 6.13 shall be enforceable notwithstanding the invalidity or unenforceability of any and all of the Bond Documents. WPO:(TDiCKSON.FORMS]GUARAN y-CORPORATE. July 15, 1997 3:38pm �( 9 � �'7 5� 6.14 Governing Law. This Guaranty Agreement shall be governed by and construed in accordance with the laws of the State of Florida. 0 6.1S WAIVER OF JURY TRIAL. THE GUARANTOR HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON THIS GUARANTY AGREEMENT OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS GUARANTY AGREEMENT OR ANY DOCUMENT OR INSTRUMENT CONTEMPLATED TO BE EXECUTED IN CONNECTION WITH THIS GUARANTY AGREEMENT, INCLUDING WITHOUT LIMITATION, THE BOND DOCUMENTS, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY WITH RESPECT HERETO OR THERETO. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE ISSUER'S ISSUANCE OF THE BONDS AND LOAN OF THE PROCEEDS THEREOF TO THE BORROWER AND FOR ISSUER'S AND/OR THE TRUSTEE'S ACCEPTANCE OF AND/OR ENTRY INTO, FOR THEMSELVES AND FOR THE BENEFIT OF THE OWNERS, ALL DOCDMF.JgTS AND INSTRUMENTS EXECUTED IN CONNECTION WITH THIS GUARANTY AGREEMENT, INCLUDING WITHOUT LIMITATION, THE BOND DOCUMENTS FROM, OR WITH, BORROWER AND/OR THE GUARANTOR. IN WITNESS WHEREOF, the Guarantor, the Trustee and the Issuer have caused this Guaranty Agreement to be executed in their respective corporate names and their respective corporate seals to be hereunto affixed and attested by their duly authorized officers, all as of the date first above written. 0 Signed, sealed and delivered INTERPLEX INDUSTRIES, INC. in the presence of: By: Name: Name: Attest: Name: Name: As to "Guarantor" WPO:(TDICKSON.FORMS)GUARANTY-CORPORATE. 1 6 July 15, 1997 3:38pm (CORPORATE SEAL) E • FIRST UNION NATIONAL BANK, as Trustee By: Name: Title: CITY OF TAMAR.AC, FLORIDA By. - Attest: WPG:(TDYCKSON.FORMS] GUARAM-CORPORATE. July 15, 1997 3:38pm - 17 (SEAL) t` Ll I-- l 9c-- .'UL. 22 97 (`JE) t5:22 WHITMAI� BREEM ABBOTT 'VORGAN 2C38691951 PAGE. 2 EXMIBIT CITY' OF TAMARAC, FLURIDA Industrial Development Revenue Bonds, Series 1997 (Sun Belt Precision Products, Inc. Project) August _, 1997 City of Tamarac, Florida 7525 N.W. 88th Avenue Tamarac, FL 33121-2401 Sun Belt Precision Products, Inc. 900 S.W. 21 st Terrace Fort Lauderdale, FL 33312 Interplex lndustides, Inc. 1200-12 28th Avenue Flushing, NY 11354 0 Sirs and Madams: The undersigned, Greenwich Partners, LLC (the "Underwriter" ), offers to enter into the following agreement (the "Bond Purchase Agreement") with Sun Belt Precision products, Inc, (the "Company') and Interplex Industries, Inc. (the "Guarantor') (the Company and the Guarantor collectively r &nvd to as the "Bormwer�'), and the City of Tamarac, Florida (the 'Issuer") with respect to the purchase and sale of the Issuer's Industrial Development Revenue Bonds, Series 1997 (Sun Belt Precision Products, Inc. project) in the aggregate principal amount of up to $3,300,000 (the "Bonds') on the terms and subject to the conditions herein set forth. Terms used but not otherwise defined herein shall have the meanings respectively ascribed by the hereinafter defined Official Statement; 1 • ftrSh2w Ed - Upon the terms and conditions and upon the basis of the respective representations, Warrranties and covenants set forth herein, the Underwriter agrees to purchase from the Issuer, and the Issuer agrees to sell to the Underwriter, all (but not less than all) of the Bonds in the aggregate principal amount of up to $3,300,000.00. The Bonds shall be dated the date of delivery and be in the authorized denominations of $5,000 principal amount and integral multiples of $5,000 in excess thereof (except that Bonds may be issued and Outstanding in lesser denominations to the extent required or necessitated by the Depository Trust Company, New York, New York ("DTC") for the redemption of Bonds), have the maturities and bear interest payable semiannually February1 and August gu I ,commencing 1971 S r- / =UL. 22 97 (-r-JE1 :5:23 WHI:MA'V 4REED ASS077 MORGAN 2C3869195. PACE. 3 February 1, 1998, all as shown on the cover page of the Official Statement dated August _, 1997 (the "Official Statement') and in the Indenture (defined below). The purchase price of the Bonds shall be the aggregate face amount thereof plus accrued interest, if any, Iess (i) the original issue discount, if any, and (ii) the Underwriter's discount of 2'% of the aggregate face amount of the Bonds. The Bonds will be issued initially in book -entry form only. In connection therewith, the Issuer, the Trustee and DTC will eater into a letter agreement (the "DTC Agmment"). The Bonds are being issued and sold by the Issuer, and the proceeds of the sale of the Bonds are being used to finance the acquisition and construction of the Project, defined below, and to pay the costs of issuance of the Bonds issued pursuant to a Trust Indenture dated as of August 1, 1997 (the "Indenture') between the Issuer and First Union National Bank, as Trustee (the "Trustoe"). The Issuer has authorized the Bonds by resolutions duly adapted on February 26, 1997 and July 23, 1997 (the "Resolution"). The Bonds will be special obligations of the Issuer payable solely out of the revenues or other receipts, funds or moneys pledged therefor, and from any amounts odmvise available to the Trustee for the payment thereof under the Indenture. The proceeds of the sale of the Bonds will be used to finance the acquisition, construction and equipping of the project, all as described in the Loan Agreement (the " Loan Agreement") dated as of August. 1, 1997. Payments under the Loan Agreement sufficient to pay the Bonds shall be applied to amounts due and payable on the Bonds. The Bonds are secured by a mortgage by the Company in favor of the Issuer dated as of August 1, 1997 (the "Mortgage"). The Bonds also are to be secured by the Guaranty dated as of August 1, 1997 (the "Guaranty`) from the Guarantor to the Trustee. 2. Mdng. The Underwriter represents and warrants that it will offer the Bonds only pursuant to the Official Statement and only in states (including the District of Columbia, and territories and possessions of the U.S.) where the offer and sale of the Bonds are legal, either as exempt securities, as exempt transactions or as a result of due registration of the Bonds for sale in any such state. The Underwriter agrees to offer the Bonds at the initial offering prices or yields set forth in the Official Statement, but the Underwriter reserves the fight to change such prices or yields as it may deers necessary or desirable in connection with the offering and sale of the Bonds and to sell the Hoods to dealer's (including dealers depositing Bonds into investment trusts) and others at prices lower than the public offering prices. The Issuer hereby represents that the Preliminary Official Statement, as herein defined, with such additions and amendments as have hereWfore berm agreed upon between the Issuer and the Underwriter, is deemed final as of the date hereof, except for the omission of offering prices, interest rates, selling compensation, aggregate principal amount, principal amount 39715 .2- • XL- 22 ' 97 f:'JE; 15:29 WHI-LUON BREED ABBd__ MOAGAN 209969:95'. FACE. 4 per Bond, delivery dates, ratings and other terms of the Bonds depending on such matters. Such rgmontation is made in reliance upon the Company's and the Guarantor's representations herein that material relating to the Company and the Guarantor included in the Preliminary Official Statement is true and correct. The Company will cooperate with the Underwriter to secure the delivery of an acceptable number copies of the Official Statement with reasonable promptness and within seven business days. lire Underwriter agrees to file a copy of such Official Statement with a nationally reoogxuized municipal securities information repository within five (5) days after such final Official Statements are made available to the Underwriter and to advise the issuer as to the location and time of such filing. The Underwriter has talmn and will continue to take action to comply with the Securities and Exchange Commission Municipal Securities Disclosure Rule, 17 C.F.R. 240.15c2-12 and the provisions of this paragraph shall survive the expiration hereof to the extent necessary for such purpose. 4. thegodthe. The Company and the Guarantor represent and warrant to the Underwriter and the Issuer that: (a) Qtc+al5talffm art. The descriptions and statements contained in the Preliminary Official Statement, dated July _, 1997 (the "Preliminary Official Statement") and the Official Statement under the headings "Thc Summary% "The Introduction`, "The Company and the Guarantor", "The Project", "Estimated Use of Proceeds", "Na Litigation", "Appendix A - Unaud'tcd Financial Statements of the Con�aany", "Appendix B - Audited Consolidated Financial IS Statements of the Guarantoe, and, to their bet knowledge 'Investment considerations," do not contain any untrue statement of a material fact or omit to state any material fact required to be stated or necessary to make such descriptions and statements, in light of the circumstances- under which they were made, not misleading. The financial statements included in Appendices A and B to the Official Statement have been prepared in accordance with generally accepted accounting principles, applied on a consistent basis in all material aspects (except as otherwise disclosed in the notes to such financial statements) and fairly represent the financial position, results of operations, retained earnings and statements of cash flows of the Company and the Guarantor at the respective dates and for the respective periods indicated. (b) UndiselmedJuatedski . Neither the: Company nor the Guarantor has failed to disclose to the Underwriter and the Underwriter's Counsel facts that materially and adversely affect or will materially and adversely affect the operations, affairs, properties, conditions or prospects (financial or otherwise) of the Company or the Guarantor. (c) NQ Advem ClAnsm, No material and adverse change has occurred in the financial condition of the Company or the Guarantor or the results of the Guarantor's operations since the date of its most recent audited financial statements which are included in the Official Statement, and all financial statements and the discussion thereof included in the Official Statement pnesarrt fairly the financial condition of the Company and the Guarantor as of the dates thereof and the results of their operation for the periods therein described, E i� 7 / " / J 1UL. 22 ' 97 c': M 15:24 W'41 %102i SREE'Z ABB077 MORGAN 209869.95: PAGE. 5 (d) I7ndiadamW I The Company and the Guarantor have no debt (including any capital leases and guaranties) outstanding except as specifically set forth in the Official Statement or as shown on its financial statements set forth in Appendix A and Appendix B to the Official Statement as of the date of said statements and the Company and the Grantor represent that no unusual or exceptional transactions have occurred between those dates and the date of this contract. and, as to all such debt, all amounts due and payable thereon, as of the date hereof, are cun=nt and not in default. (e) The Company is duly organized and validly existing as a corporation and is in good standing under the laws of the State of Florida. The Guarantor is duly. organized and validly existing as a corporation and is in good standing under the laws of the State of Delaware. (f) ftwer and ,, litho b. The Company and the Guarantor each have the right, power and authority to own its properties and assets, to condnc:t its busimss as it is presently conducted and as it is described in the Official Statement, to execute and deliver the Loan Agreement, the Mortgage and the Guaranty, hereinafter (the "Financing Documents"), the Continuing Disclosure Agrwnent and this Bond Purchase Agreement, to perform their respective obligations thereunder and hereunder and to carry out and consummate all transactions described therein. (g) . W At meetings duly called and held by the Board of Directors of the Company, at which a quorum was present and acting throughout, the Board of Directors duly adopted in accordance with the law and the Articles of Incorporation $ - rpo and By -Laws of the Company resolutions (the "Company Resolution") approving, or authorizing approval of, the Official Statement, the Company's obligations with respect to the Bonds, the Indenture, the Mortgage, the Loan Agreement, the Continuing Disclosure Agreement and this Bond Purchase Agreement and authorizing the execution and delivery and use and distribution thereof, and the consummadon of the transaction established by the same; and notice of the meetings of the Board of Directors at which the Company Resolution was adopted was given in accordance with law and the Articles of Incorporation and By -Laws of the Company, (ii) At meetings duly called and held by the members of the Board of Directors of the Guarantor, at which a quorum was present and acting throughout, the Board of Directors duly adopted in accordance with the law and the Certificate of Incorporation and By -Laws of the Guarantor resolutions (the "Guarantor Resolution") approving, or authorizing approval of, the Official Statement, the Guarantor's obligations with respect to the Bonds, the Guaranty, the Continuing Disclosure Agreement, the Indenture and this Bond purchase Agreement and authorizing the execution and delivery and use and distribution thereof, and the consummation of the transaction established by the same; and notice of the meetings of the Guarantor at which the Guarantor Resolution was adopted was given in accordance with law and the Certificate of Incorporation and By-laws of the Guarantor. • 39715 -4- y 7 - / 9 MA2� JUL. 22 ' 97 (TJEN, t 5 ; 25 wT. ld$REED ABBOTT MORGAN 2038691 95'_ ?AGE. 6 (h) ND Modil3alijm. No proceeding or authority for the execution and delivery of the Official Statement or the Financing Documents, has been amended, repealed, rescinded, or revoked. (t) Ueoutoon 2gid DWIvery.. Each Of the Company and the Guarantor have duly authorized the execution and delivery of, and the performance of its obligations under the Financing Documents, approved the distribution of the Official Statement, and upon the Closing, each of them will deliver or cause to be delivered all opinions, certificates, letters and other documents required to be delivered hercim. 0) No Litigation, Faccept.if, and to the extent, specifically set forth in the Official Statement, no litigation, action, suit or administrative proceeding of any nature is pending or threatened against the Company or the Guarantor: (1) affecting directly or indirectly the validity of the Financing Documents, the Bonds, the Indenture, the Continuing Disclosure Agreement, this Bond purchase Agreement, or the Cot 4any Resolution or the Guarantor Resolution; 00 restraining, enjoining, or in any 'other manner affecting the execution or delivery of the Financing Documents, the Bonds, the Indenture, the Continuing Disclosure Agreement, this Bond Purchase Agreement, or the adoption of the Company Resolution or the Guarantor Resolution; (iii) affecting, g, in any way, the right or authority of each of the Company and the Guarantor to carry out the terms and provisions of the Financing Documents, the Bonds, the Indenture, the Continuing Disclosure Agreement, this Bond Purchase Agreement, the Company Resolution or the Guarantor Resolution, and the covenants and agreements therein and herein; (iv) affecting the corporate existence of the Company, or the titles of the officers Or seeking to remove such officers or members of its Board of Directors or any of them from their respective offices; (v) affecting the corporate existence of the Guarantor or the titles of the officers or seeking to remove such officers or members of its Board of Directors or any of them from their respective offices; or (vii) wherein an unfavorable decision, ruling or finding would materially adversely affect the operations, affairs, properties, conditions or prospects (financial or otherwise) of the Company or the Guarantor, (k) . No event has occurred and is continuing that constitutes, or that with notice or lapse of time or both would constitute, an Event of Default tinder the Indenture; or the Financing Documents. 39715 .J- JUL. 22 ' 97 (TI.E) 15'26 ` whi:-:MkV BREED AB307T MORGAN 203869195/ PAGE. 7 (1) . 01 The Company is rift in default and has not been in default, with respect to: any provision of its Articles of Incorporation or By -Laws; the payment of principal of or interest on any security or other obligation issued or guaranteed by the Company; or any other covenant of a material obligation of the Company, including any indenture, mortgage, lien, agreemen, contract, deed, lease, loan agreement, note, order, judgment, decree or other instrument or restriction of any kind or character to which it is a panty or by which it is bound, or to which it or any of its assets is subject. 0i) The Guarantor is not in default, and has not been in default, with respect to any provisions of its Certificate of Incorporation or Sy -Laws; the payment of principal of or interest on any security or other obligation issued or guaranteed by the Guarantor, or any other covenant of a material obligation of the Guarantor,' including any indenture, mortgage, lien, agreement, contract, deed, lose, loan agreement, note, order, judgment, decree or other instrument or restriction of any kind or character to which it is a party or by which it is bound, or to which it or any of its assets is sut-jcct. (m) No Violation of Law or f..ontr=, Authorization, execution and delivery of each Of the Financing Documents and any other agreement or instrument to which the Company or the Guarantor is a party and which is to be used or contemplated for use in the consummation of the transactions contemplated by the Official Statement, compliance with the terms and conditions thereof and consummation of the transactions therein and in the Official Statement contemplated, do not and will not (i) violate any laws or any regulation, order, injunction or decree of any court, governmental body, agency or other instrumentality applicable to the Company or the Guarantor, or (ii) result in a conflict with or a breach of any of the terms and conditions of, or constitute a default under, or result in the creation or imposition of any mortgage, lien, charge or encumbrance of any nature whatsoever upon any of the properties or assets of the Company or the Guarantor pursuant to the terms of their respective organizational documents or any indenture, mortgage, loan, line of credit, now, lease, or other agreement or other instmment to which either the Company or the Guarantor is a party or by which the Company or the Guarantor or any of their properties is bound; and no approval of, notice to, registration or filing with or other action by any governmental authority or agency is required in connection with the execution or performance of any of such documents by the Company or the Guarantor, except such as have been obtained or accomplished. (n) HOZardOW MaWdallq. The Company has caused to be carried out a Phase I environmental audit of the Project covering periods prior to , 1997, copies of which have been delivered to Underwriter's Counsel (the "Phase I Audit ), and, except as described in the Official Statement such investigation has disclosed no Hazardous Materials (hereinafter defined) in violation of any Environmental Laws (hereinaf'iGr defined} or possible violations of any Environmental Laws with respect to the Project. The Company warrants and represents (1) with respect to the period prior to , 1997 based upon the Phase I Audit and (2) with respect to the period subsequent thereto based upon the best of its knowledge after due inquiry and investigation, including the investigation described above, (1) that there have been no releases of Hazardous Materials either at, upon, under or within the Project, and no Hazardous Materials 39715 -6- qtL 11 7 - i 9 s JUL. 22 ' 97 (TGE) 15:27 WH!MAN SP.EZZ ASSOT: MORGAN 203869195'. PAGE. 8 have migrated onto the Project; (2) that there is no and has not previously been any above or underground storage tanks on the Project; (3) no Hazardous Materials have been located on or stored on the Project except in approved containers in accordance with applicable laws and no Hazardous Materials are or will be located, or stored, or have been or will be processed or disposed of on, or released or discharged from (including ground water contamination) the Project, except as permitted by Law. The Company has received no notice from any occupant of the Project, any governmental agency or other person with respect to any release of Hazardous Materials. Neither the Company nor, to the best of the Company's knowledge, any current or prior owner of the Project (i) has received notice of any private or governmental lien or judicial or administrative notice, order or action relating to Hazardous Materials or environmental contaminants, impairmen s or liabilities with respect to the project or (ii) is in, or with any applicable notice or lapse of time, or failure to take certain curative or remedial actions, will be in, either direct or indirect violation of any Environmental Laws. For purposes of this subparagraph, "Environmental Laws" shall mean any federal, state and local laws, rules and regulations and orders of any court or other governmental authority having jurisdiction ("laws") pertaining to environmental regulations, contamination, clean-up or disclosures, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. Section 9601 CLAM. ("CERCLA" ); The Federal Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 cLSM. ("RCIUlf); The Oil Pollution Act of 1990, 42 U.S.C. Section 2701 q. ("OpA ), The Community Planning and Right to Know Act, 42 U.S. C. Section l 101 dzM. ("Title III'), The Clean Water Act, 33 U.S.C. Section 1321 d.0Q, ("t~WA"), The Clean Air Act, 42 U.S.C. Section 74p1 et sM. ("CAA"), Superfund Amendments and Reauthorization Act of 19S6, Public Law No: 99=499 (signed into law October 17, 1986) ("S ARA"); Toxic Substances Control Act, 15 U.S. C. Section 2601 seq. ("TSCA"); The Hazardous Materials Transportation Act, 49 U.S.C. Section 1801 CL=.; any and all other federal, State of Florida, county, or local superlien or environmental protection, cleanup or disclosure laws; and "Hazardous Materials" shall mean and include, brit shall not be limited to, any oil, petroleum product and any hazardous or toxic wastes .or substances, any substances which because of their quantitative concentration, chemical, radioactive, flammable, explosive, infectious or other characteristics, constitute or may reasonably be expected to constitute or contribute to a danger or hazard to public health, safety or welfare or to the environment, including, without limitation, any asbestos (whether or not friable) and any asbestos -containing materials, lead paint, waste oils, solvents and chlorinated oils, polychlorinated biphenyls (PCB's), toxic metals, etchants, pickling and plating wastes, explosives, reactive metals and compounds, pesticides, herbicides, radon gas, urea formaldehyde foam insulation and chemical, biological and radioactive wastes, or any other similar materials which are included under or regulated by any Envirorunental Laws. (o) LU Rfift=- Except as described in the OfliCial Statement, the Company and. the Guarantor have each filed all federal, foreign, State of Florida and State of Delaware tax returns and all other tax returns that, as of the date hereof, are required to be filed unless the deadline therefor has been extended in accordance with the provisions of applicable law (whether information returns or not), and has paid all taxes due, if any, as of the date hereof pursuant to such returns or pursuant to any assessment received by the Company or the Guarantor. Mrs -7- 22 Y7 MUZ) 1 5 ! 28 �i9HiTMA1� BREA Assn:'- MORGAti 2038691 95: ?AGE. 9 (p) Awmak of Imnsagdonand ftiect. The Company and the Guarantor have obtained and theme are currently in force and effect, all consents, permits (except certain buikitug permits which are the subject of pending applications), licenses, accreditations, certificates and ether approvals (governmental or otherwise) that: 0) would constitute a condition precedent to, or the absence of which would materially adversely affect, the performance by the Company and the Guarantor of their obligations under the Financing Documents, the Tax Certificate, and any other agreement or instrument to which they are a party and which is to be used or contemplated for use in the cunsumnution of the transactions contemplated by the Official Statement; or (ii) are necessary for the acquisition, construction, renovation, equipping or operation of the project; other than, in either case (i) or Q, any special permits or other approvals which are normally obtained prior to or during the course of construction, which cannot be obtained at this time and which, in the reasonable judgment of the Company and the Guarantor upon consultation with legal counsel, architects, or others, as necessary, will be obtainable at the proper and customary time without material impediment. (q) Lars. Except (x) as specifically set forth in the Official Statement, (y) purchase money security interests with respect to the acquisition of equipment not being financed or refinanced from the proceeds of the Bonds, or (x) as set forth by the Schedule of Security Interests appended to this Bond Purchase Agreement, if any, the Company and the Guarantor have not created or suffered to exist any: (i) pledge of funds, investments or other property; (u) security interest in any property of whatever nature, including in particular but without limitation gross revenues, accounts receivable and proceeds; or (iii) mortgage of any real property, land or building, leasehold interest or other right or intcrrst pertaining thereto. (r) a . The Company has good and marketable fee simple title to the Project free of all encumbrances except for encumbrances and exceptions identified in the Title Insurance Commitments issued by as agent for Title Guarantee Company under Title Number dated , I997 and Permitted Encumbrances, provided same do not materially interfere with the intended use of the Project. (s) . 'Tile Borrower deems the Preliminary Official Statement, dated July ,, 1997, final for purposes of Rule 15c2-12 of the Securities and Exchange Commission. (t) • The Company and the Guarantor will undertake, pursuant to the Loan Agreement and a Continuing Disclosure Agreement, to provide certain annual financial information and notices of the occurrence of certain events, if material. A description iC - 9"7 - i JE;L. 22 ' 97 (Ta) 15:28 WH:,rMAh BREED ABBOT MORGAN 2058b919�: =AGE. _0 of this undertaking is set forth in the Preliminary Official Statement and will be set forth in the Final Official Statement. The Issuer hereby represents and warrants that: (a) It is authorized under Chapter 159, part II, Florida Statutes, and other applicable provisions of law to issue the Bonds in accordance with the Act and to enter into the transaction contemplated herein, (b) The Issuer has complied with the provisions of the Act and has full power and authority pursuant to the Act to consummate all transactions contemplated by the Bonds, the Resolution, the Indenture, the DTC Agreement and the Financing Documents, and to issue, sell and deliver the Bonds to the Underwriter as provided herein. (c) By resolution duly adopted by the Issuer and still in full force and effect, the Issuer has authorized the execution, delivery and due performance of the Bonds, the Indenture, the DTC Agreement, and the Financing Documents, and the taking of any and all action as may be requited on the part of the Issuer to carry out, give effect to and consummate the transactions contemplated by this Bond Purchase Agreement, and all approvals necessary in connection with the foregoing have been received. (d) W'hcn delivered to and paid for by the Underwriter in accordance with the terms of this Bond Purchase Agreement, the Bonds will have been duly authorized, executed, authenticated, issued and delivered and will constitute valid and binding special obligations of the Issuer payable solely from revenues or other receipts, fiends or moneys pledged therefor under the Indenture and from any amounts otherwise available therefor under the Indenture, and will be entitled to the benefit of the Indenture. (e) The execution and delivery of the Bonds, the indenture, the DTC Agreement and the Financing Documents, and compliance with the provisions thereof, will not conflict with or constitute on the part of the Issuer a violation of, breach of or default under any statute, indenture, mortgage, deed of trust, note agreement or other agreement or instYument to which the Issuer is a party or by which the Issuer is bound, or any order, rule or regulation of any court or governmental agency or body having jurisdiction over the Issuer or any of its activities or properties, and all consents, approvals, authorizations and orders of governmental or regulatory authorities which are required for the consummation by the Issuer of the transactions contemplated thereby have been obtained, (0 Subiect to the provisions of the Loan Agreement and the Indenture, the Issuer will apply the prnc Beds from the sale of the Bonds to the purposes specified in the Indenture and the Financing Documents. 39715 19- JUL. 22 ' 97 (TUE) 15:29 VrF-T)" BiEED' A"J3d0 -r-MORGAN 203869195: ?AGE. _ (g) To the bast knowledge of the Issuer, there is no action, suit, proceeding or investigation at law or in equity before or by any court, public board or body pending or threatened against or affecting the Issuer, or to the best knowledge of the Issuer, any basis therefor, wherein an unfavorable decision, ruling or finding would adversely affect the transactions contemplated hereby and by the Indenture, or which, in any way, would adversely affect the validity of the Bonds, the Resolution, the Indenture, the DTC Agreement, the Financing Documents, or any agresrmcnt or instrument to which the Issuer is a party and which is used or contemplated for use in consummation of the transactions contemplated hereby and by the Indenture or the exemption from taxation as set forth therein. (h) Any certificate signed by any Authorized Issuer Representative under the Resolution or this Bond Purchase Agreement and delivered to the Underwriter or to the Trustee shall be deemed a representatk m and warranty by the Issuer to the Underwriter as to the statements made therein. (i) The information with respect to the Issuer in the Official Statement, dated 1997, is correct and complete, except that none of the representations and warranties herein apply to statements in or omissions from the Official Statement made in reliance on or in conformity with information furnished to the Issuer by the Company or the Guarantor, or to information under the headings "The Project", ",Investment Considerations, "Independent Auditors", "Tax Matters% "Legal Matters", and "Underwriting", or to anything contained in the appendices to the Official Statement or otherwise with respect to the Company, the Guarantor or the Trustee. The Issuer has authorized the use of the Official Statement in both its preliminary and final forms and delivered duly executed copies thereof in final form to the Underwriter. It is specifically understood and agreed that the Issuer makes no representation as to the financial position or business condition of the Company or the Guarantor or any other person and does not, with respect to the Offacial Statc=nt or otherwise, except to the extent the Issuer deems the Preliminary Official Statement to be find as provided in Section 4 hereof, represent or warrant as to any of the statements, materials (financial or otherwise), mpresentations or certifications furnished or to be made and furnished by the Company or the Guarantor or any other person in connection with the sale of the Bonds, or as to the correctness, completeness or accuracy of any of such statements, materials, representations or certificates. Except as set forth in the first sentence of paragraph (i) above, the Issuer makes no representation as to the corn octness, completeness or accuracy of the Official Statement and the Preliminary Official Statement, (such Preliminary Official Statemet including all appendices thereto and all material incorporated by reference therein, is hereinafter called the "Preliminary Official Statement"). 0) The Issuer has not been in default at any time after December 31, 1975 as to principal and interest on any obligation issued or guaranteed by it except as fully and fairly disclosed in the Official Statement as required by Section 517.051 of the Florida Statutes, Rule 313-400.003 of the Florida Administrative Code and the Florida Department of Banking and Finance. • 34715 .10- K 5'7-/�� JC:.27 ' 9 7 (TUE) 15:30 WHITMA:ti BREED AB80.7 ORGAN 203069195: ?AGE :2 6• . At 10:00 a.m, prevailing local time 41 of the Issuer, on or before , 1997, or at such other time or later date as shall have been mutually agreed upon by the Company, the Guarantor, the Issuer and the Underwriter, the Trustee will deliver, or cause to be delivered, to the Underwriter the Bonds, in definitive form, duly executed by the Issuer and authemicated by the Trustee, together with the other documents hereinafter mentioned. and, subject to the oarnditions contained herein, the Underwriter will accept such delivery and pay the purchase price of the Bonds by wire transfer to the Trustee for the account of the Issuer of immediately available federal funds. Delivery of the Bonds shall be made through the offices of the DTC. Payment for the Bonds shall be made at the O fiocs of the Trustee, or at such other location as may be agreed upon by the Trustee and the parties hereto. Such payment and the related delivery is herein called the "Closing." The Bonds will be delivered as a fully registered bond, bearing proper CUSIP numbers and will be registered in the name of Cade & Co., as nominee of DTC, After execution by the Borrower, authentication by the Trustee and completion of checking and packaging, the Bond shall be held in safe custody by DTC. Upon Closing, the Trustee shall authorize the release of the Bonds to DTC. 7` . The obligations of the Underwriter hereunder to accept delivery of and pay for the Bonds shall be subject to (i) the performance by the Company, the Guarantor and the Issuer of their respective obligations to be performed 10 hereunder, (iij the accuracy in all material respects, as of the date hereof and upon Closing, of the representations and warranties of the Company, the Guarantor and the Issuer herein, and of the Company and the Guarantor in the Financing Documents and the Indenture, and (iii) the conditions set forth in this section, below. L.] (a) Upon Closing, () the Official Statement, the Indenture, the Continuing Disclosure Agreement, the Financing Documents and this Bond Purchase Agreement shall have been executed and delivered in the forms approved by the Underwriter and shall be in full force and effect and shall not have been amended, modified or supplemented except as may have been agreed to in writing by doe Underwriter, (u) the proceeds of the sale of the Bonds shall be applied as described in the Official Statement, and (ill) the Company and the Guarantor shall have duly adopted and there shall be in full force and effect such resolutions as, in the judgment of Akerman, Senterfitt & Eidson, F.A., as bond counsel ("Bond Counsel") and Whitman Breed Abbott & Morgan I.L.P. as Underwriter's counsel ("Underwriter's Counsel"), shall be pessary in connection with the transactions contemplated hereby; (b) Upon Closing, the Underwriter shall have received executed copies of each of the following documents; i971, (i) the approving opinions of Bond Counsel, dated the date of the Closing, relating to, among other things, the validity of the Bonds in substantially the form set forth as Appendix C to the Official Statement; JUL. 22 97 .T'.'c) 15:5. WHITMAN BaZEO AB8077 M09kGAN 203869195: ?AGE. :9 !njs (ii) supplemental opinions of Bond Counsel, dated the date of the Closing, addressed to the Company, the Guarantor, the Trustee, and the Underwriter in substantially the form of Exhibit B hereto; and a "reliance latter" of Bond Counsel, dated the date of the Closing, addressed to the Underwriter and the Trustee in substantially the form of Exhibit C hereto; NO an opinion, dared the date of Closing, of Nabors, Gitlin & Nickerson, P.A., counsel to the Tnistee, addressed to the Underwriter and Bond Counsel, in substantially the form of Exhibit D hereto; (iv) an Th'i0n, dated the date of the Closing, of Underwriter's Counsel, addresser to the Underwriter, in substantially the form of Exhibit E hereto; (v) opinions, dated the date of Closing, of Cuddy & Feder & Worby, Counsel to the Borrower, adds -seed to the Company, the Guarantor, the Trustee, the Underwriter, and Bond Counsel, in substantially the form of Exhibit F hereto; (vi) a cerdficate, executed by a duly authorized officer of the Issuer, dated the date of Closing, to the effect that to the best knowledge and belief of such officer (A) the representations and warranties of the Issuer contained in the Bond Purchase Agreement are true and corrzct upon Closing; (B) the information regarding the Issuer contained in the Official Statement does not include any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under whey they were made, not misleading; and (C) the Issuer has satisfied all the conditions on its part to be performed or satisfied at or prior to the Closing; (vii) a cute, dated the die of Closing, signed by an authorized offjrer of the Trustee, to the effect that (A) the Trustee is a [rational banking association, duly organized and validly existing under the laws of the United States of America, (B) the Trustee has the power to take all action required of it under the Y.rrdenture, (C) the officer who exmaed the Indenture or meted the Bonds on behalf of the Trustee was at the time of said execution, and upon Closing is, the duly elected, qualified, and acting incumbent of the office set forth by his or her signature, and the signature appearing after his or her name is a true and correct specimen of his or her genuine signature, (D) the Trustee is authorized to act as trustee and accept the deities in connection with the Indenture, and in so acting is not in violation of any provision of its Charier or By -Laws, any law, regulation, or court or admimstrntive order applicable to it or any agreement or other instrument to which it is a party or by which it may be bound, and (E) attached as an exhibit to such certifilcate i5 a true, complete, and confect copy of the By -Laws of the Trustee and/or Resolution of the Board of Directors of the Trustee and/or any other applicable document which evidences the Trustee's powers, its right to enter into the indenture, and the Issuer of the officers referred to above to act on behalf of the Trustee, -12- JUL. 22 ' 97 (-,::E) :7:;2 W417MAN BREED ABB07T MOAGAN 203869I95: -MACE, :4 and that said By -Laws and or Resolutions and/or other applicable documents were in effect on the date or dates said officers acted and remain in full force and effect upon Closing; (viii) certificates dated the date of Closing and signed by the president of the Company and the President of the Guarantor to the effect that (A) each of the roc n=M3 Cations and warranties set forth herein and in any of the Bond Docttments to which the Company or the Guarantor is a party is true and correct upon Closing (as if given or made upon Closing}; (B) attached thereto as exhibits are true, correct and complete copies Of the Articles of Incorporation of the Company; the Certificate of Good Standing (dated within the past 30 days) with respect to the Company; and the By -Laws of the Company and the Certificate of Incorporation and By -Laws and a Certificate of Good Standing (dated within the past 30 days) with respect to the Guarantor (for each of the Company and the Guarantor, respectively the IoTganizational Documents`); the Organizational Documerrts were in full force and effect on the date that the Company Resolution and the Guarantor Resolution were adopted and are in full force and effect on the date of Closing; and no amendments to the Organizational Documents as set forth in said exhibits have been adopted or flied; (C) the resolutions appended thereto as an exhibit is a true, correct and complete copy of the resolutions described by paragraph 4(g) of the Bond Purchase Agreement (the " Resolutions") duly at a meeting or meetings duly called and held at which a quorum was present and acting throughout; the Resolutions have not been modified, amended or minded and are in full force and effect on the Closing Date; and the Resolutions constitute the only resolutions or official actions of the Board of Directors Of the Company or the Guarantor with respect to the matters described by paragraph 4(g) of the Bond Purchase Agreement, except for those resolutions or official actions superseded by the Resolutions or otherwise no longer in any force or effect; (D) the R tatives named therein am upon Closing the duly elected and qualified incumbent Of the offree set opposite said person's name authorized by the Resolutions to execute and deliver each of the Financing Documents and the signature appearing at the right of said pt:rsan's respective name is the genuine signature of said offix:er; and (B) addressing such additional matters as reasonably may be required by Bond Counsel and Underwriter's Counsel; (ix) executed counterparts of the Indenture, the DTC Agreement, the Financing Documents and a specimen of the Bonds; W a policy or policies of title insurance or commitments shall have been delivered to the Trustee, in form satisfactory to the Underwriter, insuring the Trustee's interest in the Project constituting real property which are to be financed by application Of It portion of the proceeds of the Bonds; (A) consent and comfort letters from M.R. Weiser & Co. L -p; (xii) such other certificates, agreements, opinions, letters, and other documents, including but not limited to affidavits and certificates in respect of signatures and 39775 -13 - 2 ti 1 ; , YS JUL. 22 ' 97 (T,:E) 15:32 WE: -.VAX BREED ABBO;'T MORGAA 2.^3869195: PAGE. ;5 cerffkates relating to receipt of Bonds and purchase price, as may reasonably be required by Bond Counsel or the Underwriter. All such opinions, certificates, letters, agreements and documents will be in compliance with the provisions hereof only if they are reasonably satisfactory in form and substance to the Underwriter. the Company and the Guarantor will fumish the Underwriter with such conformed copies or photocopies of such opinions, cortifiicams, letters, agreements and documents as the Underwriter may reasonably request. 7. TerminAtion. The Underwriter shall have the right to cancel its obligations to purchase the Bonds if (i) between the date hereof and the Closing, legislation shall be enacted or recommended to the Congress for passage by the President of the United States, or favorably reported for passage to either House of the Congress of the United States by any committee of such House or announced by the Chairman of any such committee to which such legislation has been referred for consideration, a joint announcement of the Chairman of the Ways and Means Committee and the Finance Committee and the Secretary of the Treasury shall have been made, a decision by a court of the United Stags or the United States Tax Court shall be rendered, or a ruling, regulation or statement by or on behalf of the Treasury Department of the United States, the Internal Revenue Service or other govermnental agency shag be made or proposed to be made with respect to the federal taxation upon avenues or other income of the general character to be derived by the Issuer under the Loan Agreement or by any similar body, or upon interest on Obligations of the general character of the Bonds, or other action or events shall have transpired which may have the purpose or effect, directly or indirectly, of changing the federal or State tax consequences of any of the transactions contemplated in connection herewith and, in the reasonable opinion of the Underwriter, materially and adversely affects the market price of the Bonds, or (ii) there shall exist any event which in the Underwriter's reasonable judgment either (A) makes untrue or incorrect in any material respect any statement or information contained in the Official Statement or (B) is not reflected in the Official Statement but should be reflected therein in light of the circumstances in which they were made in order to make the statements and information contained therein not misleading in any material respect, or (in) there shall have occurred any outbreak of hostilities or any national or international calamity or crisis or a financial crisis or a default with respect to the debt obligations of, or the institution of proceedings under the federal or the state bankruptcy laws by or against the State of Florida or any municipality, subdivision, agency or instrumentality thereof, the effect of which on the financial markets of the United States being such as, in the reasonable judgment of the Underwriter, would make it impracticable for the Underwriter to market the Bonds or to enforce contracts for the sale of the Bonds, or (iv) there shall be in force a general suspension of trading on the New York Stock Exchange, or (v) a general banking moratorium shall have been declared by either federal, State of New York or New York City authorities, or (vi) there shall have occurred since the date of this Bond Purchase Agreement any material adverse change in the affairs of the Company or the Guarantor, except for changes which the Official Statement discloses have occurnod or may occur, or (vii) legislation shall be enacted or any action shall be taken by the Securities and Exchange Commission which, in the opinion of Underwriter's Counsel, has the effect of requiring the contemplated distribution of the Bonds to be registered under the Securities Act of 1933, as »T�, -14- • C7 • JUL. 22 ' 97 (-,JE) 15:93 WK:TMAN 3R EM AB OTT MORGAn 2038691951 ?ACE. 16 amended, or the Indenture to be qualified under the Trust Indenture Act of 1939, as amended, or (viii) a stop order, ruling, regulation or official statement by or on behalf of the Securities and Exchange Commission shall be issued or made to the effect that the issuance, offering or sale of the Bonds, or of obligations of the general character of the Bonds as contemplated hereby, is in violation of any provision of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, or the Trust Indenture Act of 1939, as amended, or (ix) any state "Blue Sky' or securities commission shall have withheld registration, exemption or clearance necessary for the offering authorized herein, and in the reasonable judgment of the Underwriter the market for the Bonds is materially affected thereby, or (x) the Now York Stock Exchange or other national securities exchange, the National Association of Securities Dealers, Inc., or any governmerrtal authority or agency imposes, as to the Bonds or obligations of the general character of the Bonds, any new restrictions or transactions in securities materially affecting the free market for securities (including the imposition of any limitations on interest rates) or the extension of credit by, or the change to the net capital requirements of, underwriters established by any such exchange, the Securities and Exchange Commission, any other federal or state agency or the Congress of the United States of America, or by Executive order, or (xi) the failure of the Company to deliver to the Underwriter copies of the Official Statement in the manner specified in Paragraph 3 of this Bond Purchase Agreement, where, in the reasonable opinion of the Underwriter, such failure afhxts the Underwriter's marketing and sale of the Bonds or subjects the Underwriter to possible compliance infractions under applicable delivery requirements of the Securities and Exchange Commission. If the Company or the Guarantor shall be unable to satisfy any of the conditions to the obligations of the Underwriter contained in this Bond Purchase Agreement and such condition is not waived by the Underwriter, or if the obligations of the Underwriter to purchase and accept delivery of the Bonds shall be terminated or canceled for any reason permitted by this Bond Purchase Agremeitt, this Bond Purchase Agreement shall terminate and neither the Underwriter, nor the Company or the Guarantor shall be under further obligation hereunder, except as provided by the next succeeding paragraph. In the event this Bond Purchase Agreement is terminated for any reason without delivery of the Bonds, the Underwriter, the Company and the Guarantor each will pay their own respective expenses, without recourse against the other party hereto, in no event, however, will the Underwriter be responsible for the payment of the expenses of the Issuer. (a) ne Company and the Guarantor covenant and agree with the Underwriter as follows: (i) Before revising, amending or supplementing the Official Statement, the Company shall furnish a dopy of the revised Official Statement or such amendment or supplement to the Underwriter. No such revised Official Statement or such amendment or supplement to the official Statement will contain information substantially different axis - l S- JUL. 22 - 97 (T;E) 15:5G� WHI,MAI�7 EEJ ABBO 7 MORGAN 203869195. PAGE. :7 r from that contained in the next preceding Official Statement on the date it was issued, unless such information is satisfactory in form and substance to the Underwriter. 00 The Company shall cooperate with the Underwriter and with Underwriter's Counsel in any endeavor to qualify the offer and sale of the Bonds as an exempt transaction under the securities or Blue Sky laws of such jurisdictions of the United States as the Underwriter may request; provided, however, that the Company shall not be required with respect to such qualification or any offer or sale of the Bonds to qualify or regi= as a foreign corporation. The Company and the Guarantor consent to the use of the Official Statement by the Underwriter in obtaining such qualifications. (fill) The Company and the Guarantor shall ensure that the sections relating to the Company, the Guararnor and the Project in the Official Statement, at all times between the date of this Bond Purchase Agreement and the date 90 days from the end of the underwriting period (as defined by thv. Rule) do not contain any untrue statement of a material fact and do not omit to state any material fact necessary to make the statements made therein, in light of the circumstances under which they are made, not misleading. The obligation of the Company and the Guarantor to provide information during such period shall be limited to providing such information that is (1) in the actual knowledge of officials of the Company and the Guarantor executing this Bond purchase Agreement or (2) in the actual knowledge of officials of the Company and the Guarantor required to provide such. information as may be required by the Rule. (iv) If between the date of this Bond Furrchase Agreement and the date 90 days from the end of the underwriting period any event shall occur that might or would cause the Official Statement, as then supplemented or amended, to contain any untrue statement of a material fact or to omit to state a material fact necessary to make the statements thetein, in the light of the circtunstanc es under which they were made, not misleading, the Company and the Guarantor shall promptly notify the Underwriter thereof; and if, in the reasonable opation of the Underwriter, such event requires the preparation and publication of a suppletrrent or amendment to the Official Statement, the Company shall at its expense supplement or amend the Official Statement in a form and in a manner approved by the Underwriter and the Company (which approval shall not be unreasonably withheld). (v) The Company and the Guarantor shall notify the Underwriter should it default on the payment of principal of or interest on any security or other obligation issued or guaranteed by the Borrower at any time prior to the Closing. The Company and the Guarantor acknowledge that the foregoing covenant and related representation in Paragraph 4(1) hereof will be relied upon by the Underwriter and their counsel in determining whether the Bonds are exempt from registration under the Blue Sky laws of certain states. (b) The Company and the Guarantor will undertake, pursuant to the Loan Agreement and the Continuing Disclosure Agreement, to provide certain annual financial information and notices of the occurrence of certain events, if material. A description of this undertaking is set 39715 -16- • C� JUL. 22 97 (T::E) 1 7 : 5 � ,WH.TMANN BREED ASS077 MORGAN 2C9869195: ?ROE. : g forth in the Preliminary Official Statement and will also be set forth in the Final Official Statement. 10. - . All representations, warranties and agreements of the Company and the Guarantor hereunder and under the Indenture, the Continuing Disclosure Agreement or the Financing Documetrts shall remain operative and in full force and effect, regardless of any investigation made by or on behalf of the Underwriter and shall survive the delivery of the Bonds and any termination of this Bond Purchase Agreement by the Underwriter pursuant to the terms hereof. 11 • . If the Bonds are sold to the Underwriter by the Issuer, the Company shall pay from the proceeds of the sale of the Bonds, or from other funds available to the Company, any reasonable expenses incident to the performance by the Underwriter of its obligations hereunder, including but not limited to.- (i) the cost of the pteparation of the bond documents; (ii) the cost of the preparation, printing and distribution of the Preliminary Official 5tatemem and the Official Statement in such numbers as the Underwriter deems reasonable; (iii) the cost of the preparation and printing of the Bonds; (iv) the fees and disbursement of its counsel, the Trustee and its counsel, if any, Bond Counsel, and Underwriter's Counsel, (v) all advertising expenses in connection with the offering of the Bonds; (vi) the disbursements for fling fees in connection with the registration, qualification or exemption of the Bonds under the Blue Sky laws of any jurisdiction in which the Underwriter proposes to offer or sell the Bonds; (vii) the fees of the Underwriter, and (viii) all other reasonable customary expenses incarrnd by the Borrower or the Underwriter in connection with the offering and distribution of the Bonds. Such fees and expenses shall be paid by the Company upon Closing. 12• . The Company and the Guarantor jointly and severally shall indemnify and hold harmless the Issuer and the Underwriter and each of their members, officers and directors, and each person, if any, who controls the Underwriter within the meaning of Section 15 of the Securities Act of 1933, as amended, and within the meaning of Section 30 (a) of the Securities Exchange Act of 1934, as amended, from any and all losses, claims, damages and liabilities (including legal and other expenses of defending any actions) that they or any of them may incur or have asserted against any of them as a result of any breach (or alleged breach) by the Company or the Guarantor of any of their respective representations or warranties or covenants set forth in this Bond Purchase Aft. If any litigation is commence or threatened against any of the parties entitled to indetnon hereunder in respect of which indemnity may be sought against the Company or the Guarantor, such indemnified party shall promptly notify the Company or the Guarantor i.n writing, but failure to so notify shall not relieve the Company and the Guarantor from any liability that it may have whether on account of this indemnity or otherwise. The Company or the Guarantor shall promptly assume the investigation, preparation, and defense of all such litigation or action, including the employment of counsel reasonably acceptable to the indemad d parties, the payment of fees and expenses and the right to negotiate and consent to settlement. Any indemnified party shall have the right to make its own investigation or employ separate counsel, but the fees and expenses of such investigation or J" 15 -17- JUL. 22 ' 97 (Tuz) i s : 35 Rri: y.A_ti $REzb As sbVT -UO ROAN 2036691 95: ?AGE.: g counsel shall be at the expanse of such indemnified party unless such investigation or the employment of such counsel has been specificAy authorized by the Company or the Guarantor. 13. nation. Any notice or other communication to be given under this Bond Purchase Agreement may be given by delivering the same in writing, if to the Company or the Guarantor at their address set forth above with copies to Cuddy & Feder & Worby, 90 Maple Avenue, White Plains, New York 10601, Attention: Joseph P. Carlucci, Es1, and any notice or other communication to be given to the Underwriter under this Bond purchase Agreement may be given by delivering the same in writing to Greenwich Partners, LLC, One Pickwick Plaza, Suite 250, Greenwich, Connecticut 06830 with copies to Whitman, Breed Abbott & Morgan LLP, 100 Field Point Road, Greenwich, Connecticut 06830, Attention: Kevin A. Walsh, Esq. and If to the Issuer to: City of Tamarac, Florida, 7525 N.W. 88th Avenue, Tamarac, Florida 33321-2401, Attention: City Manager. 14. Pam. This Bond Purchase Agreement is made solely for the benefit of the Company, the Guarantor, the Issuer and the Underwriter (including their successors) and no other person shall acquire or have any right hereunder or incur any obligation hereunder or by virtue hereof. 15. Govajp. This Bond Purchase Agreement shall be governed by and construed in accordance with the laws of the State of Florida. 16. Amendments. Any amendments to this Bond Purchase Agreement must be in writing executed by the Company, the Guarantor, the issuer and the Underwriter. 0 C� J "»s —19- JUL. 22 ' 97 (T;:E) 1 7 : 3b WHITMAX `3RE D�ABBO T MORGAN 2038691 95: ?ACE. 20 17. fifflaW. This Bond Purchase AgrKrne nt may be executed in several couutcrpmU, each of which shall be regarded as one and the same instrument. The paragraph headings of this Bond Purchase Agreement are for convenience of reference only and shalt not affect its interpretation. SUN BELT PRWISION PROTIUM, INC. By: Bernard S. Koppel President 0 CITY OF TAMARAC FLORIDA By: Very tivly yours, GREENWICH PARTNERS, LLC By: Robert & Christie Executive Vice President IN] RPLEX INDUSTRIES, INC. By: President 0 [Signature Page to Bond Purchase Agreement) 39713 -19- JUL. 22 ' 97 (77.7E) 15:37 WH1TMAn 81R$E15 A880T7'M0FI-6AIN 2C38d9195: ?AGE. 21 Exhibit A: Exhibit B: Exhibit C: Exhibit D: Exhibit E: Exhibit F: sv715 Terms of the Bonds Form of Supplwncntal Opinion of Bond Counsel Form of Reliance Letter of Bond Counsel Form of Opinion of Trustee's Counsel Form of Opinion of Underwriter's Counsel Form of Opinions of Borrower's Counsel 11 �J 7-7 JCL. 22 ' 97 ('UE) 15.37 WHI-MAN BREED ABBOT MORGAN 203869195: PAGE. 22 Exhibit A CMS OF,BANDS City of Tamarac, Florida Industrial Development Revenue Bonds, Series 1997 (Sun Belt Precision Products, Inc. Project) Amount and QWgnatip : $3,300,000 Lndustrial Development Revenue Bonds, Series 1997 (Sun Belt Precision Products, Inc. Project) (the "Bonds'. % Bonds due August 1, 20 % Bonds due August 1, 20— ,— Interest on the Bonds will be payable on February 1 and August l of each year commencing February 1, 1998. EWU of ' Principal or redemption price, if any, is payable at the corporate trust off ce Of First Union National Bank, 200 South Biscayne Boulevard, 14th floor, Miami. Florida 33131. Interest is payable by check or draft mailed to the registered owners. Alternatively, payment shall be made as otherwise agreed in writing by the Bondowner and the Trustee, and at the written request to the Trustee of any owner of at least $500,000 of the Bonds, such payment may be made by wire transfer or other reasonable method to an account or ph= designated by such Bondowner. The Bonds when issued will be registered in the frame of Cede & Co., as nominee of The Depository Trust Company, New York, New York ("DTC"). DTC will act as Securities Depository for the Bonds. Individual purchases must be made in book -entry form only, and purchase-rs will not receive certificates representing their interest in the Bonds. Issuable in fully registered form in denominations of $5,000. Redemption Prices and T= : As provided in the Indenture. NO Bating: The Bonds will be non -ratted. Sir rifx: The Bonds will be secured by the Mortgaged Property and the Guaranty. Tex E liW: Bonds are to be exempt from Federal and State of Florida and local income taxes. 39713 JUL. 22 ' 97 (T,:rL) 15:37 WH17Y-I-N BREED'AaB674 MORGAN 203869195: =AGE.23 Exhibit B to the Bond Purchase Agreement [FORM OF SUPPLEMENTAL OPINION OF BOND COUNSEL] August 1997 City of Tamarac, Florida 7525 N.W. 88th Avenue Tamarac, FL 33321-2401 First L)nion National Bank First Union Financial Center 200 South Biscayne Boulevard Miami, FL 33131 Sun Belt Precision Products, Inc. 900 S.W. 21 st Terrace , Fort Lauderdale, FL 33312 is Interplex industries, lnc. 1200-12 28th Avenue Flushing, NY 11354 Greenwich Partners, LLC One Pickwick Plaza Suite 250 Greenwich, CT 06930 S3,380,000 CITY OF TAMARAC, FLORIDA Industrial Development Revenue Bonds, Series 1997 (San Belt Precision Products, Inc. Project) Ladies and Gentlemen- .� ,s. JUL. 22 ' 97 (T::E) 15 : 98 Wfi1 MA\' SRE'�5 ABB07T MORGAN 203869195: ?AGE. 24 • This supplemental opinion is rendered at your request in connection with the issuance by the City of Tamarac, Florida (thc "Issuer") of its $3,300,000 industrial Development Revenue Bonds, Series 1997 (Sun Belt Precision Products, Inc. Project), dazed August _, 1997 (the "Bonds"). The Bonds are issued under and pursuant to a Trust Indenture dated as of August 1, 1997 (the "Indenture") between the Issuer and First Union National Bank, as trustee (the "Trustee). We have delivered to you a copy of our approving legal opinion as Bond Counsel in connection with the Bonds (the "Approving Opinion"), in rendering this opinion, we have examined and relied upon the matters contained, referred to and identified, and to the same extent stated, in the Approving Opinion. We also have examined (i) the Preliminary Official Statement., dated July _,1997 relating to the Bonds (the "Preliminary Official Statement"); (ii) the Official Statement, dated August _, 1997, relating to the Bonds (the "Final OfEcial Statement," which together with the Preliminary Official Statement shall be herein referred to as the "Official Statement") and (iii) the Securities Act of 1933, as amended (the "1933 Act"), the Trust Indenture Act of 1939, as amended (the 111939 Act"), and the rules and regulations and interpretations under those acts. All terms used in this supplemental opinion and not defined herein shall have the meaning as assigned in the Approving Opinion. Based on such examination, we are of the opinion that, under existing law: (1) The Bond Purchase Agreement dated August , 1997, between Cneenwich Partners, 1-LC, Sun Belt Precision Products, Inc.(the "Company,), Interplex Industries, Inc. and the Issuer has been duly authorized, executed and delivered by the issuer and, assuming the due authorization, execution and delivery by the other parties thereto constitutes a valid and legally binding obligation of the Issuer, enforceable against the issuer in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other laws affecting the rights of creditors generally. (2) In connection with the offering and sale of the Bonds, the Bonds constitute exempted securities within the meaning of the 1933 Act and are not required to be registered under the 1933 Act and the Indenture is not required to be qualified under the 1939 Act. (3) The statements in the Official Statement pertaining to the Bonds, the Indenture, and the Financing Documents under the captions "The Issuer," "The Bonds," "Tax Matters," "Legal Matters," "No Litigation" and "Continuing Disclosure" insofar as they pertain to the Issuer and in the summaries of the provisions of the Financing Documents insofar as they describe the provisions of the Financing Documents, are accurate statements or summaries of the matters therein set forth and taidy present the information purported to be shown therein. This letter is furnished by us solely for your benefit in connection with the original issuance and delivery of the Bonds and may not, without express written consent, be relied upon by any other person. Very truly yours, r7v? _z_ �UL. 22 ' 97 17UZ) 15;9a wHITY-A ERE'= .,,aiOTT'MORGAA 2038691951 ?AG---. 25 Exhibit C to the Bond Purchase Agreement [FORM OF RELIANCE LETTER OF COUNSEL] August 1997 Greenwich Partners, LLC One Pickwick Plaza Suite 250 Greenwich, CT 06830 53,300,000 CITY OF TAMARAC, FLORYDA Industrial development Revenue Bonds, Series 1997 (Sun Belt Precision Products, Inc. Project) Ladies and Gentlemen: You may rely upon our approving ing legal opinion dated the date hereof, relating to the above - captioned Bonds, as if such opinion were addressed to you. We do not hereby render any further . opinion relating to the above -referenced Bonds, nor do we hereby update, amend, modify, supplement or otherwise change any opinions expressed in the aforesaid legal opinion. No other party, other than an addressee hereof or thereof; is entitled to rely upon or refer to such legal opinion for any purpose whatsoever. Very truly yours, 39707 JCL. 22 ' 97 =V, 15:39 WHi;MAT 33EED AHBO=,-MORGATt 2V^3869195: PACE.26 Exhibit D to the Bond Purchase Agreement FFORM OF OPINION OF TRUSTEE'S COUNSEL) August_, 1997 Greenwich Partners, LLC One Pickwick Plaza Suite 250 Greenwich, CT 06830 City of Tamarac, Florida 7525 N.W. 88th Avenue Tamarac, FL 33321-2401 Akern=, Senterfitt & Eidson, P.A. 255 S. Orange Avenue P.O. Box 231 Orlando, FL 32802-0231 Whitman Breed Abbott & Morgan LLP 100 Field Point Road Greenwich, CT 06930 S3,300,000 CITY OF TAMARAC, FLORIDA IndustrW Development Revenue Bonds, Series 1997 (San Belt Precision Produeft, Inc. project) Ladies and Gentlemen: We have acted as spcounsel to First Union National Bank (the "Trustee") in connection with iecial its appointment as Trustee under a Trust Indenture dated as of August I, 1997 (the "Indenture"), between the Trustee and City of Tamarac, Florida (the "Issuer"), relating to the issuance by the Issuer of the above -captioned bonds (the "Bonds"). In connection therewith, we have examined originals or copies, certified or otherwise identified to our satisfaction, of 0) the Articles of Association and By -Laws of the Trustee; (u) the Indenture; . (Hi) the Bonds; and low :CL. 22 - 97 -JE) 15:99 9:TV.AN SRS_:5 AiS67T MORGAN 2030691951 MACE. 27 (iv) the Continuing Disclosure Agreement. We have also examined originals or copies, certified or otherwise identified to our satisfaction, of such other records, materials, documents, certificates and correspondence, and we have considered such matters of law, as we have deemed necessary to enable us to render this opinion. In our examination of such materials, we have assumed the genuineness of all signatures, the authenticity of all items submitted to us as originals and the conformity with the originals of all items submitted to us as copies. In making our examination of documents executed by entities other than the Trustee, we have assumed that each such other entity had the power to enter into and perform all its obligations thereunder, and also have assumed the due authorization by all requisite action and due execution of such documents by each such entity. Based on the foregoing and subject to the limitations set forth in this letter, we are of the opinion that: I. The Trustee is a national banking association, duly organized and validly existing under the laws of the United States of America, fully qualified to do business and to exercise trust powers in the State of Florida, and has full corporate right, power and authority, and has taken all necessary corporate action, to execute the Indenture and to accept the trust contemplated by the Indenture and to perform all duties and obligations on its part to be performed and to take all actions required or permitted on its part to be taken under and pursuant to the Indenture. 2, The Trustee has duly authorized the acceptance of the trusts contemplated by the Indenture and the duties and obligations contemplated by the Indenture and the Continuing Disclosure Agreement and has taken all corporate action necessary to assume the duties and obligations of the Trustee and Dissemination Agent thereunder. 3. The Trustee has duly authorized the execution and delivery of the Indenture and the Continuing Disclosure Agreement which constitute the valid, legal, and binding obligations of the Trustee enforceable against the Trustee in accordance with their terms, except as such enforceability may be limited by (i) bankruptcy, insolvency, or similar laws relating to or affecting creditors' rights generally and court decisions with respect thereto or (i) the availability of any equitable remedies. 4. The performance or the consummation of the transactions on the part of the Trustee contemplated in the Indenture and the Continuing Disclosure Agreement and the compliance by the Trustee with the terms, conditions, and provisions of such documents do not contrav-nc any provisions of applicable banking law or regulations, the Trustee's Articles of Association or By-laws, or, to the best of our knowledge after due investigation, any order, decree, writ or injunction applicable to the Trustee. S. To the best of our knowledge after due investigation, no litigation is pending or threatened in any way contesting or affecting the existence of powers (including trust powers) of the Trustee necessary for the Trustee's performance of its duties and obligations under the indenture and the Continuing Disclosure Agreement. 3'lm7 -2. r� u rI C" JL:L. 22 ' 97 (T*L E) 1 5 :40 WH:—MAN BREED AH90, T MORGAN 2039591 95. 7-AGE.2a • r1 u 6. The individuals executing and attesting the Indenture , the Continuing Disclosure Agreement and authenticating the Bonds on behalf of the Trustee are duty authorized to execute and attest the Indenture, the Continuing Disclosure Agreement and to authenticate the Bonds on behalf of the Trustee. 7. All material authorizations and approvals of any governmental authority- having jurisdiction required with respect to the performance on the part of the Trustee of its duties and obligations under the Indenture and the Continuing Disclosure Agreement have been obtained and are in full force and effect as of this date, provided, however, that no opinion is rendered as to actions of the issuer in its capacity as issuer of the Bonds. 10707 Very truly yours, :4L. 22 ' 97 ;YJi) t5 4: HITMAN �BR_E� ABB'Q*'VORGAN 2038691951 PAGE. 29 Exhibit E to the Bond Purchase Agreement [FORM OF OPMON OF UNDERWRITER'S COUNSEL] August _, 1997 Greenwich Partners, LLC One Pickwick Plaza Suite 250 Greenwich, CT 06830 $3,300,000 CITY OF TAMARAC, FLORIDA Industrial Development Revenue Bonds, Series 1997 (Sun Belt Precision Products, Inc. Project) Ladies and Gentlemen: We have acted as counsel to Greenwich Partners, LLC (the "Underwriter") in connection with the purchase by the Underwriter on this date from the City of Tamarac, Florida (the "Issuer") of its Industrial Development Revenue Bonds, Series 1997 (Sun Belt precision Products, Inc. Project) (the "Bonds") pursuant to the Bond Purchase Agreement, dated August — 1997 (the "Bond Purchase Agreement") bdwecn the Underwriter, Sun Belt Precision Products, Inc. (the "Company"), Interplex Industries, Inc. (the "Guarantor") and the Issuer_ Unless otherwise expressly provided herein, capitalized terms used but not defined herein have the respective meanings ascribed to them by the Bond Purchase Agreement. As counsel to the Underwriter, we have examined the Bond Purchase Agreement, the Indenture, the Financing Documents, the Preliminary Official Statement dated July __, 1997 and the Vnial Official Statement dated August __, 1997 (the '"Official Statement") relating to the Bonds, and opinions of counsel and certificates delivered to satisfy conditions of the Bond Purchase Agreement. We have also examined and relied on originals or copies certified or otherwise identified to our satisfaction of such other documents, instruments or corporate records, and have made such investigation of law, as we have considered necessary or appropriate for the purpose of this opinion. In making the aforesaid examinations, we have assumed the authenticity of all original documents and the conformity to original documents of all conformed copies and photocopies of documents, the genuineness of all signatures and the due authorization, execution and delivery of all documents and the authority to do so of all persons executing such documents. As to various questions of fact material to our opinions expressed herein, we have relied upon representations of the Issuer, the Company and the Guarantor. • 197W e Ci '7 / � JUL. 22 - 97 (T;:E) 1 5 : 4: WH:7MA)v 3REED A8$o. MQRGwIv 2038697 95: PAGE. 30 • In accordance with our understanding with you, we rendered legal advice and assistance to you in the course of your investigation and negotiations pertaining to, and your participation in the preparation of, the Official Statement and the issuance and sale of the Bonds. The purpose of our retainer was (a) to assist in your investigation relating to and in the preparation of the official Statement, and (b) to assist in the preparation and negotiation of the Bond Purchase Agreement and to examine the documents delivered to the Underwriter in satisfaction of the conditions thereof and otherwise consult with you as to the satisfaction of these conditions. Rendering assistance in these matters involved, among other things, examinations, inquiries and discussions concerning various legal and related subjects, and review of and reports on certain documents and proceedings. We also participated in conferences and telephone conferences with officers and agents of the Issuer, Bond Counsel, counsel to the Trustee, and officers and employees and agents of and counsel to the Company and the Guarantor, during which conferences and telephone conferences the contents of the Official Statement, or portions thereof, and related matters were discussed and reviewed. The limitations inherent in the independent verification offactua) matters and the character of determinations involved in the preparation of the official Statement are such, however, that we have necessarily assumed the accuracy, completeness and fairness of and take no responsibility for any of the statements made in the Official Statement. In the course of the performance of the services referred to above, subject to the limitations expressed in the preceding paragraph, nothing has come to our attemion which, considered in the light of our understanding of applicable law and the experience we have gained through our practice thereunder, would lead us to believe that, as of the date of the Closing, the Official Statement (except for the financial and statistical data included therein including, but not limited to, Appendices A and B thereto, as to which no opinion is expressed,) contains any untrue statement of a material fact or omits to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, It is to be understood that we have not undertaken to determine or verify independently the accuracy, completeness or fairness of the financial or statistical information, statements or forecasts contained in the Official Statement and Appendices thereto. We are of the opinion, based upon the foregoing, that no registration under the Securities Act of 1933, as amended, and no qualification of the Jndenture under the Trust Indenture Act of 1939, w amended, is required in connection with the offer and sale of the Bonds. To the extent that the opinions rendered herein are dependent on the validity of the Bonds we are relying on the approving opinion of Bond Counsel, of even date herewith. This opinion is furnished by us as counsel for the Underwriter and is solely for the benefit of the Underwriter and may not be relied upon by any other parties. Very truly yours, -Wang .2- JUL. 22 ' 97 (TUE) 15:42 WH:TMAh B3Erm Ar.:�JJ T M A AN 2038691;5. PAGE. 9 +, Exhibit F to the Bond purchase Agreement [FORM OF OPINION OF THE SUN BELT'S AND E4TERPLEX'S COUNSEL] August 1997 Greenwich Partners, LLC One Pickwick Plaza Suite 250 Greenwich, CT 06930 City of Tamarac, Florida 7525 N.W. 88th Avenue Tamarac, FL 33321-2401 First Union National Bank First Union Financial Center 200 South Biscayne Boulevard Miami, FI, 33131 Akerman, Senterfitt & Eidson, P.A. 255 S. Orange Avenue P.O. Box 231 Orlando, FL 32802-0231 Whitman Breed Abbott & Morgan LLP 100 Field Point Road Cn-eenwich, CT 06830 S3,300,000 CITY OF TAMARAC, FLORMA Industrial Development Revenue Bonds, Series 1997 (Sun Belt Precision Products, Inc. Project) Ladies and Gentlemen; As its special counsel, we have represented Sun Bch Precision Products, Inc., a Florida corporation (the "Company") and I.nterplex Industries, 1nc., a Delaware corporation (the "Guarantor") in connection with the issuance of the above -captioned Bonds. This opinion is rendered in fulfillment of the requirement of Section 7(b)(v) of the Bond purchase Agreement dated August -, 1997 (the "Bond Purchase Agreement") among the Company, the Guarantor, the City of :17L. 22 - 97 (7UE) 15:42 WHi TMAN BREED A�BO �ORGAi► 20SS691951 ?AGE. 32 Tamarac, Florida (the "Issuer") and Greenwich Partners, LLC. Capitalized terms used but not defined herein shall have the meanings respectively ascribed to them by the Bond Purchase Agreement. We have reviewed executed counterparts of the indenture, the Financing Documents, the Continuing Disclosure Agreement, the Company Resolution, the Guarantor Resolution and the Preliminary Official Statement dated July ^, 1997, and the Official Statement, dated August _, 1997 pertaining to the Bonds and certificates delivered to satisfy conditions of the Bond Purchase Agreement. In addition, we have examined the originals or copies, certified or otherwise identified to our satisfaction, of such records of the Company and the Guarantor, certificates of officers and representatives of the Company and the Guarantor, certificates of public officials, and such other documents, and we have made such investiptions of laws and fact, as we have deemed necessary or advisable as a basis for the opinions expressed below. As to opinions concerning factual matters relating to the Company and the Guarantor, we render such opinions based solely on information provided to us by the officers of the Company and the Guarantor and have made no independent investigations of such factual matters and representations of the Company and the Guarantor set forth in the Company Documents and the Guarantor Documents. In out examinations, we have assumed the genuineness of all signatures (other than the Company and the Guarantor), the authenticity of all documents submitted to us as originals, the conformity to the originals of all documents submitted to us as certified, photostatic or conformed copies, and the authenticity of the originals of all such latter documents. We have assumed the accuracy ofthe factual matters contained in the Company Documents and the Guarantor Documents and have not attempted to verify independently such representations VW advice; however, nothing has come to our attention which would cause us to question the accuracy of such representations and advice. than Based upon the foregoing and subject to the matters set forth below, we are of the opinion 1. The Company's duly organized and validly existing as a corporation incorporated and in mood standing under the laws of the State of Florida. The Guarantor is duly organized and validly existing as a corporation in good standing under the laws Of the State of Delaware. Z. Each of the Company and the Guarantor has the right, power and authority to own its properties and assets, to conduct its business as it is presently conducted and as it is described in the Official Statement•, to enter into the financing Documents to which it is a party, the Continuing Disclosure Agreement, and the Bond Purchase Agreement, to perform its obligations thereunder and to carry out and consummate all transactions described therein. 3. The Company Resolution has been duly adopted by the Board of Directors of the Company. The Guarantor Resolution has been duly adopted by the Board of Directors of the Guarantor. 4. Each of the Company and the Guarantor has duly authorized the execution and delivery of, and the performance of its obligations under, the Financing Documents, the Bond 3V707 .Z_ JUL. 22 ' 97 f-uE) 15:44 WH:TMAN BREED AB 80T MORGAIti 2038691951 -AGB. 33 Purchase Agreement, the Continuing Disclosure Agreement, the Official Statement and the Tax Certificate. S. Each of the Company and the 'Cguarantor has duly executed and delivered the Financing documents to which it is a party, the Tax Certificate, the Continuing Disclosure Agreement and the Bond Purchase Agreement, and such agreements constitute the legal, valid and binding obligations of the Company and the Guarantor enfarc:eable in accordance with their respective terms. 6. To the best of our knowledge, after due and diligent inquiry the ownership and operation of the Property as contemplated by the Loan Agreement will be in compliance with all applicable zoning ordinances, orders, permits, licenses, approvals, rules and regulations of all governmental bodies having jurisdiction over the Property. 7. To the best of our knowledge, relying solely on the Title Commitment and the Survey, the Company has good and marketable title to the Property except as set forth in the Title Commitment or as shown on the Survey, no partof the Property is in the possession of any third party claiming a lien thereon or is subject to possessory lien asserted by any third party. 8_ Authorization, execution and delivery of each of the Financing Documents, the Tax Certificate, the Continuing Disclosure Agreement and the Bond Purchase Agreement, compliance with the terms and conditions thereof and consummation of the trw=ctions therein and in the Official Statement contemplated do not and will not (i) violate any laws or any regulation, order, injunction or decree of any court, governmental body, agency or other instrumentality applicable to the Company or the Guarantor, or (H) result in a conflict with or a breach of any of the terms and conditions of, or constitute a default under, or result in the creation or imposition ofany mortgage, lien, charge or encumbrance of any nature whatsoever upon any of the properties or assets of the Company or the Guarantor pursuant to the terms of, the Company's Articles of Incorporation and By -Laws, the Guarantor's Certificate of Incorporation and By -Laws or any indenture, mortgage, loan, line of credit, note, leaw, or other agreement or other instrument known to us to which the Company or the Guarantor is a party or by which the Company or the Guarantor or any of their properties is bound; and no approval of, notice to, registration or flung with or other action by any governmental authority or agency is required in connection with the execution or performance of any of such documents by the Company or the Guarantor, except such as have been obtained or accomplished, % To our knowledge after due inquiry, except if, and to the extent, specifically set forth in the Official Statement, no litigation or administrative proceeding of any nature is pending or threatened against the Company or the Guarantor: (i) affecting directly or indirectly the validity of the Financing Documents, the Bond Purchase Agreement, the Tax Certificate, the Continuing Disclosure Agreement, the Company Resolution or the Guarantor Resolution; (ii) restraining, enjoining, or in any other manner affecting the execution or delivery ofthe Financing Documents, the Continuing Disclosure Agreement, the Tax Certificate or the 19707 -3- C7 C� f f- - y'7 / 5 s JUL.22 '97 (7JE) 15:46 WH:TMAN BREED ABBOTT MORGAN 209669i951 PAGE. 94 Bond Purchase Agreement, or the adoption of the Company Resolution or the Guarantor .� Resolution; (iii) affecting the provision made for the payment of, or the granting of security for, the principal ofand irrtarest on the Bonds or any other payments required to be made pursuant to the Indenture; (iv) affecting, in any way, the right or authority of the Company or the Guarantor to carry out the terms and provisions of the Financing Documents, the Continuing Disclosure Agreement, the Tax Certificate, the Bond Purchase Agreement, the Company Resolution or the Guarantor Resolution and the covenants and agreements therein; (v) affecting the corporate existence of the Company, or the titles of the officers or other members of its Board of Directors or any of them to their respective offices; (vi) affecting the existence of the Guarantor, or the titles of the officers or other members of its Board of Directors or any of them to their respective offices; or (vii) wherein an unfavorable decision, ruling or finding would materially adversely affect the Project or the operations, affairs, properties, conditions or prospects (financial or otherwise) of the Company or the Guarantor. 10. All permits, consents, certificates, approvals, licenses or other authorizations necessary for the conduct of the Company's or the Guarantor's business substantially as it currently is conducted, the acquisition, construction, renovation, furnishing, equipping or intended use of the Project (other than certain building permits which have been applied for and any of such authorizations normally obtained during the course of, or Mowing construction, as to which no warranty or representations is made as to the ultimate success of obtaining such permits and authorizations, however, no impediment to the issuance thereof is known as of the date hereof), and the execution, delivery, and performance by the Company and the Guarantor of the Financing Documents, the Tax Certificate, the Continuing Disclosure Agreement and the Band Purchase Agreement, have been obtained. We have rendered legal advice and assistance to the Company and the Guarantor in connection with the preparation of the Official Statement. Rendering such legal advice and assistance invoked, among other things, discussions and inquiries concerning various legal and related subjects and reviews of certain records, documents and proceedings_ We have also corresponded with, held telephone conversations with, and participated in conferences and meetings with, various officers, employees and representatives of the Company and the Guarantor, the Issuer, the Trustee, M.R. Weiser & Co. LLP and the Underwriter, and their respective counsel. In the course of such conversations, meetings and conferences, the contents of portions of the Official Statement and related matters were discussed and revised. Without having undertaken to determine independently the accuracy, completeness or fairness of the statements contained in the Official Statement (other than such information as is referred to in the next succeeding sentence), nothing has come to our attention that would lead us to believe that the Official Statement (except for financial and statistical data included therein, as to which no view is expressed) contains any untrue statement of a material 3Y707 .4_ JUL. 22 ' 97 (TUE) 15 ; 48 2REEn ABBOTT MORGAN 2090691951 PAGE. 35 fact or omits to state any material fact required to be stated therein or necessary to snake the statements therein, in light of the circumstances under which they were made, not misleading. The statements in the Official Statement under the heading "The Company and The Guarantor", "The Project", 'Legal Matters" and "No Litigation" as it pertains to the Company or the Guarantor, fairly and accurately summarize the laws intended to be thereby described or are accurate statements or surnmarits of the matters therein set forth and fairly present the information purported to be shown therein. (a) In rendering such opinions, we have assumed the authenticity of all original documents and the conformity to original documents of all conformed copies and photocopies of documents_ Without limiting such opinions as they relate to the Company or the Guarantor, we have further assumed that documents we have reviewed in connection with this opinion that have been executed by parties other than the Company or the Guarantor have been duly authorized, executed and delivered by the other parties thereto. (b) These opinions are specifically limited to matters of the currently existing laws of the State of Florida, the corporate law of the State of Delaware and federal laws of the United States of America. These: opinions are limited to the extent that the performance and enforceability of any agreement by or against any party may be subject to (i) applicable bankruptcy, insolvency or other laws relating to or affecting the enforcement of creditors' rights generally, (ii) the availability of the remedy of specific performance or of injunctive relief or of any other equitable remedy, (iii) the application by a court of the general principles of equity, and (iv) as to the enforceability against the Company or the Guarantor of the indemnification provisions of the Bond Purchase Agreement, principles of public policy, Very truly yours, 197M .S. • r� u r� �, 7_ / %-�-- EXHIBIT "E" • • !W--7vT7 In the opinion of Bond Counsel to tho Lover, under otist3ag stgung, "Wj&don4 Wministrative Grterpretatione and court decisions, assum s compliance with the tax the Scads is eModuded 4om gross incaaoa for purposes ot�denl descxibed� �anst on of the Internal Revenue Code of 1986, as arnerded (the "CW**). Under t� W P=JM � mom l03(t) tUWW bs 2 e � item to be included in calculating �rnapye � �a�� 0° the Bonds is five mininmmn tax which may be imposed with respect to hviduals and ivaogme W Noose of Is y � PAW �' such Bon No opinion earpressed as to the ercclusian of on as Bond for person who, vAtWn with the the of Section 147(a) of the during which such Barad h is h c by s Bonds ca� (b) a elated � � (a) t "substartdal user" a[ the So'Stla person. In the opinion ofBond Counsel, the Bonds and the braw thereon are a OMPt $am taltion under the Ian of the State of Florida as N aate�d and co�yed an the date hsrea4 except as to estate taxes and texas IMPOIed by Cbqxw 220, Florida Statutaa, as Income or prods on debt obligations owned by -corporations. For exceptions and other an tntanest, we "'Tax Matters" herein S3,Z00,000 CITY OF TAMARAC, FWRIDA IndustrW Development Revenue Bonds, Series 1997 (Sunbelt Precision Products, Inc. Project) U000400 Term Bonds due August 1,1 81,Z00,000 TUM Bonds due Aagutt 11 Dated: August _,_ 0 1997 The Bonds due August 1, Z and the Bonds due August 1, Z (cu0 y the'sg�,.) no �ci obligations of tfe MY G`� Florida (the "Lauer•'), payable solely out of the Mnnuta or other rroeipts, fiords or moneys of the Twee pledged therefor or otherwise avat'lable to First Unition National Bank of Florida, as trustee (tbe "Tru W) fqr the Payment dw0OC induding those derived under a Loan Agreement (the "Loan A$reerr 9W 'I between the issuer and Sunbelt preaslon Products, Inc. (the "Ca Project under a Trust Indenture dated as of '�� w to �e «Indenture"). Payment of principal oiti redemption price if a� interest on the Bonds is Inuer and the securedT�� (the martgaga on the project between the Company and the Issuer (the "Mortgage', a debt service reserve >� under the lndamure'v4 It fi mo ofthe 7hwee {the Qguaranty ubY In�terplex Industries, Inc. (the "Cluarentor") pup ,ar t to a guaranty in 7be Bonds wM be issueble as My regiatavd bonds in the denomination of S5,000 and integral muttiPIC$ thereof The Bands initially will be registered in the name of Cede & Co.. as nominee of The D ory Trust Company, New York, New York (" DTC"), which will act as securities depository for the Bonds aPumhasers of the Bonds will not receive physical delivery of bond certificates, accept in the events as described herein. PAYment Of redom don interest (each February 1 and Auugust 1, commencing February 1, 1998) on and principal and P price ofBonds will be made by the Trustee, to Cede sit CO., to be subsequently disbursed to the beneficial owwn "as further described herein. See'MM BONDS -BOOK ENTRY SYSTEM" herein. The Bonds are subject to optional and mandatory redemption prior to maturity under the conditions described herein. 69E� TEMP RESO #7948 Qa3va HVM IF-V. b t :: 1 t3(1_) L6 . 5 : '-rr The Sonde an bob* isiam to 0) &a*, a percd of land in the City of Tu=r rthe cost of Florida and to llrnd ResewAooa the �� (the 1"*a'% M Amd a Debt 9w*o (9Q pay costs of ieaunce of the Bonds. Rapgment ofamounte equal to principal, redemption price if ley, and iatant on the Be an absolute, uncoaditlonal obliption of the Company and the Guarantor pormant to the Loan ASreement and the Guarsaty. See "Appendices A and B* and'Zavestment Consideration* berein. THE BONDS ARE ISSUED UNDER THE PROVISIONS OF TIM FLO]RMA INDUSTRIAL DEVELOPMENT PDUNCE ACC CHAPTER 159. PART Il, FLORIDA STATUTES AS AMMED. THE ". rI AND THE ISSUER IS, PROHIBITED FROM PAYING ANY AMOUNTS DUE WrM RSSPBCT TO TEE BONDS EXCEPT FROM MONEYS RBCEIVBD BY THE ISSUER PEMSUANT To THE LOAN THE MORTGAGE OR THE GUARANTY. NE17111ER THE pAITH AND CR=rr NOR 77M TAXING POWER OF TIE ISSUER OR THE STATE OF FLORIDA OR OF ANy POLITICAL SUBDWWON TI RBOF IS PLEDGED TO -THE PAYMENT OF THE PRINCIPAL OF, PREIVIIUM, IF ANY, OR INTEREST ON TIM BONDS, AND THE HOLDERS OF THE BONDS SHALL HAVE NO RICHiT TO COMPEL. ANY EMWW OF TIE TAXING} POWER OF THE ISSUER OR THE STATE OF FLORIDA OR ANY POLITICAL SUBDMSION THEREOF TO ENFORCE SUCH PAyMEIN'T. The Bonds are ofibred who; as and if issued by the Iawer and accepted by Greenwich Putners, LLC (the "Underwrite ). subject to prior sate, witllduawai or modification of the offer without to the, apprwai of legality by Akermak Seata tt & Eidson, P.A.. re os, and Subject legal maturs will be passed upon for the Company sad the Guarent 0.� Band Counsel. Certain �Worby,-Whitt Plaias.•New York..and ibr the Underwriter its by �urlsei, Abbott Feder A LLp, Qreemvich, Cganechcut. I! u by counsel, Whitmaa.Breed Abbott dt Morgan expected that book entry delivery of the Bonds upon paynwnt them in Now York, New York, will be made on or about August --, 1997. Greenwich Partners,• LLC NO& AV" `,1997 3M 3ard =5 _.fi3A a C3nff HVY- HA 5* 1: fH:J.) L6 . 51 7, ..y F CONNECTION WITH THIS OFFBRII�T(}, TIC UNDERWRITE MAY OV13R_AyLOT OR BFFECT'TR.�NSACTIONS WHICH STABII.IZ1,; OR MAINTAIN T� TER BONDS AT A LEVEL ABOVE THAT WHICH haaW O'?T�Ryylgg PREVAIL of s OPEN MARKET. SUCH STABM ZINQ IF COItiA�Nt MAY THE ANY TI&M. B8 DISCONMUED AT t i nnalae o broker, dealer, salesman or other person has been sutiwdzedto to t eri►s� other than those contained is this Official �� any boa witch ' d a offirin made hereby w4 lfStm ornw* such tion or M upon as havW9 beAuthorized by the issuer, the Co otu must es not be relied nwor Neither the delivery of thia OffieW Statarn & nor any sa,lehaeuWer shU for the Unda'writer. that there his bw no change in the a8kirs of the Issuer, the ��umetanrA� Ommum, Since the date Karoo£ or the The mft=adost d herein bu been obtained &one the Lm w (with raapxt to the Issuer), the Company, the Quat�antor and other sourtxs reliable, but is not aranteed as to aaw that am batik to gube racy or oomplater�ess, and is not to be construed u a mention ofthe U0&rwdtar. An quotations ftm.suaunadas and a glanations ofprovigons of law and doffs hq�n do not purport to be complete, and reference is made to F 1m and document for Rill and complete stAtem�ts of their provisions. This OfficialmStatement does not conethuta an oar or soliatadoo in MY j icp� in which such oft or solicitation is not "Wr'24 or in which the Pa mak[M 5wh oJ%r or soliatation is not qualified to do so or to any parson to whom it is unlawlW to make such oR'ar or solicitation. icitation. E UPON ISSUANCE, THE BONDS WILL NOT BE RE(IISTMW UNDER TM SECURITIES ACT OF 1933, AS AM$NDBD, IN RELIANCE UPON TIM Emeno S OTI CONTAINED SElJRI'ITEIN SUCH ACT. THE BONDS W'M NOT 13E LISTED ON ANY STOCK OR CS 13=4ANCH AND TMUR TBE UNITS STATES SECLIRIM EXC�NGE CM&0SION NOR ANY On -MR FEDERAL, STATE OR QO AIL TAL ENTITY OR AGENCY Wff-L HAVE PASSED UPON TfM ACCURACY OR ADEQUACY HEREOF. sm t H�vd :561 699 6 Calve tiYYY_:FiX. 9 1 : t t ;3f :! L6 . 5 t ..!. TABLE OF CONTENTS SUMMARY....................................................... INTRODUCTION ............. . ......... . .... . ...................... MES'TM NT CONSIDERATIONS .............. . ... . ................ . TITS ISSUER ...................... . ........... . THE CONPANY AND THE GUARANToR .......................... .. . THE PRG}ECT ............ . ...................... .. . E.STMATED US OF PROCMIDS .. .... , .......... . THE BONDS ................................ ....................... TAXMATTERS ........................... . UNDERWRITING.................................................. LEGAL MALT w................................................. NO LTTIQATTON.................................... ... W(PERTS ............... . CONTI NUI G DISCLOSURE ......................... .... . DISCLOSURE REQUIRED BY FLORIDA BLUE SKY LAW ................. ADDITIONAL INFORN4ATION ........ ..... . aM APpen& A Unaudited Fnaaaial Statements of the Compsny Appendix B Audited Consolidated FinandW Statements of the Guarantor and Subsidiaria Appendix C Form ofApprovinS Opinion ofBond Counsel Appendix D Summary of Certain Documents b� 077 I 698 E. C—Me xyw.L:P.M L I c t t "ar-!" L6 . :I "1C.' d 1 C; / / -� SUMMARY The foaowhg material is qua ged in is entirely by the detaited inibrmttion grid finane statements ccntWnW in this Ofddal Statement and the Appendices hereto, which must be read to a evaluate an investment in the Beads. YN'I'BRWACCRUAL: Semi -Annual fh m the Date of Delivery, NO RAMNG: Non -rated. LSSUZR.- The isaer of the Scads is the City of Tmumc, Florida (the -Issuer"). The Lauer by duty approved upon taken on 1997, has agreed to issue Its Industrial Develop Revenue Bonds, Series 1997 (Sun Belt PrecWo a Produce I= project) (the "Bonds„). See'Vm ISSUER" BONDS: The Bonds are being issued by the Issuer under and Indenture dated as of Au purauaat to the nd between the Lover and F� Union Nadonv Bank of � as Trustee (the `Trustee"). The Bonds are swved, payable, mature, bear and are abject to optional and mandatory redwVdon as described herein and as set forth in the Indenture. See "T BONDS.„ DTC BOOK -ENTRY A' oftbe Bonds will hitiallY be m6ftined under a �book-entry ONLY: under wbwh The Depo�ry Trwt system will act as securities depository. ' New York NNew York, COMPANY: Sunbelt Precision Products, Inc., a Florida corporation formed in 1979, mDACt"m predsion WrMowb ibr the electronic, electrical and automcdve industries. GUARANTOR: Imerplex Industries, Inc., it Delaware corporation, is engaged in the manufacture of a diversified range of ele&oric products sold to OEM manufacturers throughout North America, Europe and the Far Last. PROJECT: The Issuer, will use the proceeds of the Bonds to finance the acquisition of real property in the City of Tar NTA Florida, the congnrctiOn of an approximately 40,000 square foot maws &Wity thereon, the acquisition of erluipment for use at such fbcility, Amding a Debt S&Mce Reserve A=mt under the Indenture and paying costs of Imance. xm 9 39Vd Irr6go SOZ CIZEB tiYPC_:F M L. t : t t lzr.L) :.6 . 5t ISSUER'S Tie Issuer is prohibited from paying any amounts due with respect to ODUGA710NI the Bads except fiont moneys mmved by the hmw puraumt to the the Mo:tgage or the Guaranty. Neither the with wd Power of Issuer or the State ofFlorida or of VWPoHdW wbdiv elm dweofis pledged to the payment ofthe p CKC prembaft, ifany, or interest on the Bonds, And the holden of the Bonds AW have no rigtrt to Compel any mcmmiss of the taxing POW of the Issuer or the State offt ida or any political subdivision ttersof to enfbree such payment. SOURCE OF RMNMs Substantially &U of the Company's revenue is derived from the m4nu&cturer and sale of precision coazponents for the electro * electrical and automotivie industries. SECURITY: The Bonds are Special obligations of the Issuer payable tom the revmm of the Issuer fiom the Loan Agreement, the Mortgage and the Guaranty. The Payment obligation of the Company is a general obligmtion of the Company. Payment of principal, redemption Premium and interest on the Bonds is guaranteed by the Guarantor pursuant to the Guaranty. The Hoods will be Secured by a Ant mortgyle ilea on the Project and a Debt Service Reserve Fund 0 T'he Bonds am being issued under and as secured by the indenture to be delivered by the Issuer to the Trustee, Payments under the Loan Arsemat are to be made directly to the Trwtee in such amounts as will pay, when due, the principal of and the premium, if any, and interest on the Bonds. BONDHOLDER'S The Bonds involve a substantial degree of risk. These risks include, RISKS: without limitation, (i) g=W9 business risks; (il) risks of ikaure to complete the oonstruction of the Facility on time and within budget; (1) risks that the amnnpdm on which the Company's budget for the Project is based will not materiaiirA (iv) risks of Adverse changes to federal and state law and regulations; (v) risk that a We of the project upon a default will produce limfFcient proceeds to pay the Bonds; (vi) osin legal risks Pertaining to bankruptcy and security interests; (vii) risks of early redemption; and (viii) bond market and bond tmusfer risks. See "Investment Considerations." rM -5- • 1961 699 6CL C33xe NYK ::F.Y. 9 t : t t 13r.-I a6 . E t If, ,�7 5?-i�sl 0 OFFICIAL STATEMMMT S 200,000 CITY OF TAMARAC, FLORDA Indub1 al Devdopment Revenue Bonds, Sena 1997 (900tt Precision Products. Inc. project) � A $2,000,000 Term Bonds due August 1, 20 �% 51.200,000 Tam Bonds due August 19 20 EMODucnox The purpose of this Ofcial Stetea►ent is to set ibrth certarW information in connection with the issuance by the City of Tamarac, Florida (the "Issued of AOOO,OOO Industrial Development Revenue Bonds, Series 1997 (Sunbelt precision Products, Inc. project) due August 1, 20 and $I=,0001ndustrlal Development Revenue Bonds, Seder 1997 (Sunbelt precision produces Inc. Project) due August 1, 20 (collectively the "Bonds'). The Bonds are authorized to be issued ptna v& to 139, Pat ff' Florida Statutes cad other applicable provisions of law (the "AW), cad a res Mon of the Issuer adopted 1997 (the "Reaohution-). The Bonds are bring issued undw and are secured by a Trust Indenture dated as of August 1, 1997 (the "indenture") $om the Issuer to First Union National Bank ofFlorida, as trustee (the "Trustee'l. The Bonds will be issuable as fully registered bonds in denominations of $5,000 and iistegrxl Multiples dtereof (un apt to the cadent required cad necdsatated by DTC for the redemption & Bonds) and u** wdl be re0twed in the name of Cede & Co. as nominee for DTC. Priodpd and 1ztt payments will be made by the Trustee to Cede &Co. to be subsequently disbursed to the bend eW owners oftbe Bogs as set f w& herein. One or more series of Additional Bonds may ftom time to time be issued trader the Indsatm on a pauity with the Bonds for purposes more a,uy descn1W berein. The Bonds are being issued to 0) nnance or refinance a project in the City of Tamarac, Florida, consisting ofthe acquisition of a parcel ofproparty of approximately 3.5 acres of land Iocated at in the City of Tamara.; Florida coast feet (the -Facility) and the purchase and ianstaliadon of raachi d equipment (the 'Equi square at the Facility, (ii) fiend a debt service reserve account and � � equipmern (the "Equipper ) and the ui mart t C � pay casts of issuance. The Facility Eq P (together, the "Project' are to be used by the Company in its business of firing preasion oomponerrts for the electronic, electrical and automotive industries. To assure the exclusion of irnterest on the Bonds eOm gross income for purposes of federal income taxation, the Company, the Guavantor and the Trustee win gaiter into a Tex Regulsaory xwd :56: 690 ccz 433VE Mvw1::IM 6 [ :.. :ZZ.:.1 46 . 5 t Agreement or Agreements dated the date of delivery of the Bonds (the "Tax Regulatory The Isuer wits land the prc ace s ftm the sale of the Bonds to the Company pursuant to the Loan Agraernent dated as of August 1, 1997 (tbe "Loan Agreanertt")1awm the issuer aid the' Company. 'The Company is obligated under the Low Agreement, as is evidenced by the Note dated the date of issuance of the Bonds (the "Note"), to make monthly loan payments in amoum RACIerat to pay the prrndpal of and Interest on the Bonds as the some become due, and to pay certain Additional Payan M Nreinarftr described). The Company has Sim the Issuer a taortgage on the Project to the Issuer to secure payaxwts due under the Loan Agreement anal the Bonds (the "Mortgage"). rbe Issuer will pledge and assign t0 the Trustee the Issuer's rights under the Loan Agreement and in the Note (except fbr right/ of the Issuer to indemnification and the payment of certain fowl the Mortgage and all amounts in the %nds held by the Trustee under the Indenture, iachaft all investment earnings tbKoom To secure Mirth the payment of the Company's obligations under the Loan Agreement ad the Note' the C3uara w will enter into a guaramty dated as of August 1, 1997 whereby the Guarantor gua ru tr es to the Trustee and Bondholders the dull and prompt prynunt of principal, premium and interest on the Bonds when due (the "vuatanty"). Repayment of amount@ egwi to the principal or redemption price, if any. of and interest on -the Bonds is an absolute, uaeondidoaai obligation of the Company and the Guarantor pursuant to the Lan Agreement, the Note and the Guaranty. See "Appendix A." . "Appendix B" and "Investment Considerations" herein. The Bonds are special obligations of the Issuer, payable solely bom any revenues, raxi % Ands or morays pledged theref and hm any amounts otherwise available under the Indenture for the payment tharw& including those derived under the Loan Agreement, the Mortgage and the Owm=y and those on deposit in all funds and Accounts held under the Indenture, all of which are pledged and assigned to the Trustee equally and ratably fur the benefit of the Bondholders. Neither the faith and credit nor the taxing power of the Issuer, the State of Florida (the "State") nor any trntu�dpaSity dneroof is pledged to the payment of the principal of or the pra dum, if any, or interest on the Bonds and the holders of the Bonds shall have no power to compel any exercise of the taxing power of the Issuer State or any municipality thereof to enforce such payment. Summary descriptions of the Bonds, the Loan Agreement, the Note, the Guaranty and the I ndaztum am iw:luded in Appendix D of this Ofujai Statement; The Loam Agreement and the Note, the Guaranty, the Tax Regulatory Agro mesa and any other documents and agreements executed by the Cry and the OLwv for in connection th wewith arc referred to in this official Statement as the "Financing Documents." information regarding the Company and the Guarantor is included in Appendices A and B hereto. All words and terms used but not defined in this OfHaial Statement shall have the meaning$ sac 1W to such words and tertn� respectivrly, in the Indenture, ner. .Z. 6 aavd t561 699 ;0Z Claim %-vr-L:FY- 0�: t: (3r._; c6. r-9�-/�s- • • • Tile suzu nary descriptions of the dOmmeats contained berein are qualified in their entirety by reference to such documents. Rai'erown herein to the Sonde are qualified in their entirety by reference to the bbrm dmv d' included in the Indenture and the Ird;ormation with reap= thereto ioch�d in the X&Maid doau mus, copies of which rutty be Obtained gvm the Company ad, du* the 8 Pam+ at the P'W'pal office Of the Underwriter. All such to b descriptions entirety by r�nce are Au quWMW in their enti-dy bankruptcy laws and tnwa relating to or affecting �y the enfo, aaerrts of creditors' fights. INVESTII ENT CONSID$RATnONS Purchase of the Bonds involves certain risiu. Prospccuve purchasers of theaw Bd: shoWd gfv�e careful consideration to the natters re$r j to in the fbnowing summary, This summaryshould not be considered eod=stive but, rather, kdbrmational only. A. Special Limked Obligations. The Bonds are special limited obligations payable by the Issuer solely flom the xxcm deem bed in this Official Statement, including particulerly the Loan Agreement, the Note, the Guaranty and the Indenture:. B. Failure to Perfbrm. No representations or Assurances. can be � that the Company will not deibult in � its Obligations, under the Loan Agreement or that the Guarantor will sot defwk in performing its obagatiowr under the ()uaraaty. C. Ai4rket Caneeutmdoa. Colson$ m900r potential business risks such as market corxentration," dgmndaaee upon suppliom dependence on key per:aa* etc.] 73 . No Credit EnhancemCuL The Bonds are being ofi'ered solely on the basis of the Snandai strength Of the Company and the Guarantor. No letter of credit or other fbrm of credit eafiAnoaxtacrt will ma" paymunt: of the Bonds. Purchase of the Bonds should be based solely upon the financial common of the Company and the Guarantor, which is subject to change. E. No Rating No application has boar made for a rating on the Bonds from any rating F. Additional Debt. The Company MAY issue Additional Bonds on a parity with the Bonds for the purpose of making improvements to the Facility or acquiring equipment for use at the Project. The Company may incur other debt without restriction under the Loan Agreement and the Indenture. 0. Amendments to Documents. Ce nsin amendments to the Indenture the Loan Agreement, and the Guaranty may be made with the consent of the owners of not less than fifty percent (S8'/°) ofthe gggregite principal amount ofthe Bonds then outstmdirg. Such amendmants mIght adversely A tact the security of the owners of the Bonds, .3- IL Ta:nbWty►. Fdhn to comply with certain legal � „may Cause interest on the Bonds to become subject to federal income taxation, either Stoma the date of the occurrence of certain events or retraactiw to the date of isatatsoe of the Bonds. Upon a Determination of Taxability, the Bonds are subject to mandstory taxability redemption at a pramh m, 1. Acceleration. The Bonds mry be sooderated Arad declared to be lmmedlitdy due and payable upon the oc==ce of an Event of Ddhuk under the Indenture (see "Trust Indamme in Appendix D hereto) and the Bonds as subject to mandatory redemption upon a Determination of T'axsbdlity, major damage or destruction of the Project or the condemnation of all or substantially All of the Project. It is possible that the Company and the Guarantor may not have suffiicient Cush to meet the required redemption and, $udw, It is possible that the Company And the Guarantor may not be able to refinance their obl4pdom in sufficiept time to nuke the required payer with the consequence that the Bonds would go into deikuh. See "TIC: BONDS" herein. J. Reatale Value of the Collateral Upon .Defsialt. Upon a de$ult in payment of the Bonds. the Truetos would be entitled to exwadse its ranedies wader the indenture and the Financing Documents and to sell the Facility. the Equipment, and any other assets of the Company held as secwity for the Bonds, It is possible that the proceeds of a We of theas assets would not be in an onount sufficient to pay the rwnab ttg pduc:ipatl balance, premium if any, and accrued interest on the Bonds. K. No -Assurances. Neither the Issuer nor the Underwriter makes any representations or assuranoe'conoernitW (1) fture BavUn n nt"! policies or lgoslation affecting or administrative actions regarding the Issuer, the Company or the Durantor or Action that may be taken by the Company or the Guarantor in response thereto, or (H) the availability of, or the ability of the Company or the Guammor to obtain sotu m of rev vm Roan which to satisfy their obliptions under the Loan Agreement, the Guaranty or the Bonds. XM vy :1: _ 1-4 i [TO COIF] idyl 4 si-ff. T ,MM-577MMM. • a p M-r rz15 • 30Yd [S6: ego Ece aa3ss NYrU:'-M :S' .. ;vu) 1,6 . S1: '7C • • TBE COMPANY ftW [Dbmnsion to Dome ftom the Company Tgjrft corporate structure, history and bu*mu in SOMW] THE CIIARANMR [GMeW ft ussion to aurae ftm the Queradw reS ding its corporate structure, history end business] MW -s- 7,1 zove t56: 696 6CL alzus Y`+Yt.I.:Sm LZ : *. . :vu) L6 . 9 t -Ir.: xBZ rxoJscr • The Bonds vi balm issued to (1) &a = or refinance a prgaM in the City of Tamarac, Florida, cow of the a=didan ofa parcel of property ofapprmdacstely 3.5 acres of land located at in the City of Tarmvcr Florida consistiq of approximately 40,000 square fint (the TaaftO and the p cbm a and ration of machinery and equipcumt (the ! Equiprnevf) at the Facility, (il) fund a debt savioe reserve account and (iii) pay cons of lsmanoo The Fway and .the Equipawnt (together, the `?rojoct") are to be used by the Company in its buaineaa of manufiscturing precision components for the electronic, electrical and automotive industries. E IL MATED USE OF PRQCMMS The proceeds of the Bonds will ffnanoe the cost of the Project. The C=q=W grid the G=xdor expect to apply the proceeds from the sale of the Bonds as follows: kii:� Acquisition of FUMY S Realty. Fadlity R,ehabilitadon and Construction Costs Acquisition of EgaipmeM 1,200,000 Costs ofissuam principal amount of the Borsch $3,200,000 �6- • 6: 30W i461 699 6CZ C33va NYX-I :Fm ZZ' i l t3r_; L6 . 91 '7r: 2-�?-/S's • C� L] Grwend THE BONDS The Bonds viM be dated the date of delivery and will bear interest as described on the cover page of this Official Statement. interest will be payable on February 1 and August 1 of each year. commencing February 1, 1998. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. Pursuant to the Indenture, the Trustee will serve as the Paying Agent with respect to the ff - Book Entry paten The Depository Trust Company ("DTC"). New York, New York, will act as securities depository fbr the Bondi. The Bonds will be issued as #tartly -registered securities registered in the name of Cede tit Co. (DTC's partnership nominee), one tally -registered Bond certificate will be issued for each maturity of the Bonds In their respective aggregate prindpal amount, and will be deposited with DTC. The ftov * daoussiom wfil not apply to Bonds if issued in physical form due to the discaatiauanca of the Book -Entry System. See "Disci of Bookaitry System" herein DTC is a limited -purpose trust company organized under the New York Banking Law, a "banking oaf" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the Now York Uniform Commercial Coda and a "clearing ege:tey" re&ered pursuant to the provisions of Section 17A of the Securities Siachamge Act of 1934. DTC holds seaurWes that its Wdcipnrts ("Participants') deposit with DTC. DTC also iiceilitates the senkmant among Participacts ofsoauities transactions, such as transfers and pledges, in deposited smwltiw through elwVonhc cannputam ' book -envy changes in Participants► accounts, thereby elbuinating the need fbr physical movement of secwities cettriicates. Direct Participants include securities broken and deelem beaks, trust eompaties, clearing corporations, and certain other ergs ations. DTC is owned by a number of its Direct Participants and by the Now York Stock Exchange. Inc.. the American Stock Exchange, Inc., and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as securities brokers and dealers, banks, and trust companies that clear thorough or maintain a custodial relationship with a Direct Participant either directly or indirectly ("Indirect Participants"). The Rules applicable to DTC and its Participants are on file with Securities and Exchange Commission. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond CBeneficial Owner") is in turn to be recorded on the Direct and indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but BeneficW Owners are expected to receive written confirmations providing details of the transaction, as wed as periodic statanats of their holdings, from the Direct or Indirect Participant MW -7. '!t '3JVE :56: 696 fi:,L G33193 NM —:AM Ems' t : ;3 :.L) L6 . 5 1 '-1 through which the Beneficial Oww entered into the trr ashen Trarusiirrs of ownership inteseats In the Bonds are to be AocompUW by erttrim made on the books of Participants acting on behalf of Bemdcial Owners. Beneficial owners will not motive certificates represuatittg their ownership irrtaes1s in Bonds exoept in the eves that use of the book -entry system fbr the Bonds is discontinued. To flu W= n+Mquat ems, ail Bomb deposited by Par iciparrrs with DTC are registered in the name ofDTC's pmuenWp nominee, Cede & Co. The deposit of Bonds with DTC and their rgg istrstion in the name of Cede & Co. efiict no change in beneficial ownership. DTC has no midge of thr sic W Bertsficial Owam of the Bonds. DTC's nerds reflect only the identity of the Duerr pwdcip=U to whose accounts such Bonds are crafted, which may or may not be the Benticxsl owners. The par&ipzo wM remain msporalle fbr keeping account of their holdings on behalf of their customer. Conveyance of notices and other eo==nicadions by DTC to Direct Participants, by Direct Participws to Indirect Participants, and by Direct Participants and indirect Participants to Beneficial Ownw will be governed by arranger an Ong theta, subject to any statutory or regulatory mquk m &j as may be in elfbct from time to time. goon notion shall be sent to Cede & Co. If leas t1m.AU of the Securities within An issue are being redeemed, DTC's putice is to determine by lot the amount of the interest of each Direct participLm in such issue to be redeemed. Neither DTC nor Cede & Co. will canser; or vote with respect to the Bonds. Under its usual proceim DTC mails an O=ibus Proxy to the issuer u soon as posslle after the record date. The Omnibus Proxy assigns Cede & Co.'s conseming or voting rights to thole Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Pdncipai and interest payments on the Bonds will be made to DTC. DTC's practice is to ore& Direct pw6 pwal aoco = on the payable date in accordance with their respective holdings shown on DTC's records unless DTC has reason to believe that it will not receive payment on the payable date. Payments by Participants to Beneficial Owners will be goveanod by standing ir* ucdom cad customary pmd;ceau, as is the case with securities held for the accounts of customer in bearer form or registered in "street name" and will be the responsibility of such Participant and not ofDTC, the Trustees or the Issuer, subject to any statutory or regulatory requirements as may be in effect from ti= to time. Payment of the principal and interest to DTC is the responsibility of the Issuer or the Trustee, disbursaneatt Of such payments to Direct Participants shall be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct Participants and Indirect Participants. Transfers of ownership interests in the Bonds will be accaasplishod by book entry made by DTC and the Participants who act on behalf of the bene&W owners. For every transfw and exchange of the Bonds, the beneficial owner may be charged a sum sufficient to pay any tax, fee or other govermruental charge required to be paid with • • S: 39Yd t561 699 'nOZ C334E8 �iVKI Iii1r1 6Z= 1 ; :3fr. 46 respect thereto. Should DTC discoraivue its services, Bonds may be delivered to Wadholders in physical form THE INFORMATION INCLUDED UNDER THIS CAPTION, HAS BEEN PROVIDED BY DTC. NO REPRESENTATION IS MADE BY THE ISSUER, THE COMPANY, THE ( UAR,ANTOR OR THE UNDERWRITER AS TO THE ACCURACY OR ADEQUACY OF TH8 WORMATION PROVIDED BY DTC OR AS TO TH33 ABSENCE OF MATERIAL ADVERSE CHANCES IN SUCH INFORMATION SUBSEQUENT TO THS DATE HEREOF. DTC may camatinue providing its services as securities depositary with respect to the Bonds at any time by giving reasonable notice the Issuer or the True. Under such circumstances, in the even that a successor securities depository is not obtained, security certificates are required to be painted and delivered. The Imw may decide to discontinue use of the system of book -entry tr m fe rrs through DTC (or a successor-seauities depository). In that event, security certificates will be printed and delivered. The information in this secdon concerning DTC and DTC's book -entry system has been obtained f m soon= that the tw r believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof. THE ISSUER AND THE TRUSTEE WILL NOT HAVE ANY RESPONSIBILITY OR OBLIGATION TO PARTICIPANTS, INDIRECT PARTICIPANTS OR ANY BENEFICIAL OWNER WITH RESPECT TO (I).7718 ACCURACY OF ANY RECORDS MAIN'TARM BY DTC, ANY PARTICIPANT OR ANY ROME= PARTICBANT; (II) THE PAYMENT BY DTC OR ANY PARTICIPANT OR IIw1DiRECT PARTICIPANT OR ANY AMOUNT WITH RESPECT TO THE PRIIdCIPAL OF, OR PRF.NWK IF ANY, OR INTEREST ON THE BONDS; (M) THE TII4MY 1MCISE BY DTC, ANY PARTICIPANT OR ANY INDIRECT PARTICIPANT OF ANY DIRECTION OF A BENEFICIAL OWNER WITH RESPECT TO ANY TENDER OR ELECTION NOT TO TENDER BONDS; (IV) ANY NOTICE WHICH IS PERMITTED OR REQUnUM TO BE GIVEN TO BONDHOLDERS UNDER THE INDENTURE; ern THE SELWrIONBY DTC OR ANY DIRECT OR INDIRECT PARTICIPANT OF ANY PERSON TO RECEIVE PAYMENT IN THE EVENT OF A PARTIAL REDEMP' ON OF THE BONDS; OR (VI) ANY CONSENT GIVEN OR OTHER ACTION TAKEN BY DTC AS BONDHOLDER. The Bonds ere issuable in fully registered form in denominations of $5,000 or in any integral multiple of S5,000 in excess thereof The Bonds are subject to prior redemption as hereinafter stated_ Interest on the Bonds will be payable by check mailed to the registered owner thereog or, at the option of any owner of Bonds in the aggregate principal amount of not less than $500.000, by wire transfer to the account designated by such owner with the Trustee. The Trustee is appointed as the Paying Agent pursuant to the Indenture. The Indenture provides that any Trustee may resign or be removed at sM time by the written direction of the owners of a majority of the aggregate principal amount of the Bonds then outsttandin% and that upon any such resignation or removal the owners of x5m •9- 9. 'Zow 196i 699 90i C-T3'Ee NVK_7FsM '�L' ;I (an-: 46 . 51 nn: X- 9 -7 - / 5s-- a M40y ofdro aggreg w prfadpal amount of the Bonds they outstanding may appoint a successor to fl11 the vacancy. Sources of psryment and Serttrlty The Bonds will be payable as to principal, premunn, if any, and interest solely out of the rnoeipts, Rwds err moneys pledgederC sad 8vm anY amamts otherwise available under the Indenture for the payment thereof, including amounts derived under the Loan Agreement, the Note, the MortgagR and the Cuunuty, moneys =nbutable to Bond Proceeds, the Income ftorn temporary Wmtrn t and, under cutsin draunstaam proceeds tom, insunum and condemeation .�, an ofwbich are pledged and assigned to the Trustee ibr the benefit ofBondholden, Payment of the Bonds will be made solely by the Company purvuant to the Loan Agreement and the Note or by the Guamntor pursuant to the Guaranty. The Company has the absolute and unconditional obligation under the Loan Agreement and the Note to make payments equal to the amounts payable as principal, premium, if any, and Interest on the Bonds. THE BONDS ARE ISSUED UNDER THE PROVISIONS OF THE FLORIDA INDUSTRIAL DEVELOMM FINANCE ACT, CHAPM 159, PART It; FLORIDA STATUTES, AS AMMED (TIM "ACT" AND TEM ISSUER IS PROHIBITED FROM PAYING ANY AMOUNTS DUE WITH RESPECT TO THE BONDS EXCEPT FROM MONEYS REC BY THE ISSUER PURSUANT TO TIC LOAN AGREEMENT, THE MORTGAGE OR THE GUARANTY, NEITHER THE }~AMi AND CREDIT NOR THE TAXING POWER OF THE ISSUER OR THE STATE OF FWRIDA OR OF ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR INi'ERLST ON THE BONDS, AND THE HOLDERS OF THE BONDS SHALL HAVE NO RIMU TO COMPEL ANY EXERCISE OF THE TAX NG POWER OF THE ISSUER OR THE STATE OF FLORIDA OR ANY POLITICAL SUBDMSION THEREOF TO ENFORCE SUCH PAYMENT. Truster The Trustee is First Urgoo National Bank of Florida, The principal office of the Trustee and Paying Agent under the Indenture is located at - , Mami, Florida Redemption of Bonds The Bonds are subject to redemption prior to maturity on or after August 1, 2007 as a whole on any date or in part on any Bond Payment Date, at the option of the Issuer (which option shall be exercised upon the direction of the Company) and, when redeemed during any period sat forth in the following table, at the Redemption Price (expressed as percentages 39534 .ter C7 • L : '39Yd 156: 699 SCz C33U11 %-fM-:F-M 9L' I l (3r-" 46 . 51 '"IG: C� of principal mount) set opposite pxk period in the table, plus accrued interest to the redemption date: August 1, 2008 to July 31, 2009 101% August 1, 2009 and thereafter 100% Q=Wgg. The Bondi are subject to mandatory redemption prior to maturity at a R.edempdoA price Equa1 to 100ye of the principal amount thereof to the extent that money* remain In the Loan Account unexpended on the Completion Date. Jam. The Honda are subject to redemption prior to maturity at a Redemption Price equal to 100%•of the principal amount thereof in the avert that the Project shall have beep dun* or destroyed 0) to such extent fiat It cannot be reasonably restored within a period of six months to the condition thwedimtmediately preceding such damage or destruction, or (ii) to such extent that the Company is thereby prevented in the Company's judgment, fom carrying on its normal operation of the Project for it pe dod of six months, or ('ii) to such extent that it would not be economically, featsible, in the Company's judgment,1br the Company to repair, the Project. The Bonds are also subject to n&n#on at a Redemption Price of 1 W19 of the principal amount thereof in tha avant of the logah oxWmmt of the use and occupancy of all or substantially all of the Project by the Company for any reason other than oondevanstion. lMdMM&d= The Bonds are also subject to redemption prior to maturity at a Redemption price equal to 10o% of the principal amount thereof in the event of condemnation' of all or sub stantially all of the, Prof act. . The Bonds are subject to mandatory redemption at a Redemption Price equal to the principal amount thereof, plus accrued interest to the redemption date, on February 1 of the following years in accordance with the sinking fund provisions of the Indenture, in the respective amounts set forth opposite the years specified in the following table: XM4 •11- 8I 3•Jrc LEV 699 coz a33ve YVYII: LA 4Z::: t3:1-) L6. 5L 'ir. Sinking Fund Distafiment Schedule 0 Bends due Bonds due Y , 20 ,.. 22.�.� 1998 19" 2000 2001 2002 2003 2004 2008 2006" 2007 2008 2009 2010 2011 2012 01 2014 2015 2016 2017 " Final maturity , 11" Bonds arc alto subject to mandatory redemption, at a redernpdon price equal to the Red=Vtioa Prier of 103% of the principal amount thereof to be redeemed, within thirty (30) days iEniiO*ing a De ainadon of Taxability with respect to the Bonds. A "Determination of Taxanb3lity" mean any determination, decision or decree made in regard to Section 103 of the Code (or any other rdwvant section) by the Commissioner or any District Director of internal Revenue, ai; if there is an appeal from such determination by a Commissioner or District Director, when a End administrative or judicial determination has been made, or by a final decision of any court of competed jurWCtien, that the Iuerest payable on the Bonds is includable in the groat income of the holders of the Bonds for federal income tax purposes (other than a bolder who is a "substandal use or "related person" as such are defined in the Code) by virtue of the occurrence of an Event of Taxability. •t1- 0 6 1 ICVCE 699 60L C338B XVK-:3x 9 z : r : (3:,.L) 46 . ST *1"! ,e-�-?s1— E Upon arty redaslpd= of Bonds there also shall be due ad payablk oonaurently with the payment of the RW=ptioa prM interest aocrued on the Bonds to the date of redemption and ail other arnounts then due under the Financing Documents. Any Additiond Bonds shall be subject to redemption prior to m= ty at such times and privet, in the met>srer and upon such terms and conditions, not bx sistatt with the Ind=ture, as shall be spu fled in the Supplemental Indenture authorizing such Bonds. 13e Trustee shall give the Bondholders notice of of Bonds by oe tied mail. not leas than 30 days nor more theses 60 days prior to the date fW far rWmV6M and published notice of the call redemption need not be given. Simultaneously with notice to owners, notice of much redemption also shall be sent by registered or cetlfied mad to at least two of the Information Sa-Aces and 8mmides Depositories that dissaminata securities redemption notiee+s. If less than an of a particular Bond shall be called fbr redemption, the particular Bomd (or $5,00o unit: theraaf'to be medeerned) shall be selected by lot by the Trustee in such manner as it damns proper. All Bonds called for redemOon wM cesse to bear interest on the specified redemption date, provided Lnds sufficient fbr the redemption of such Bonds in accordance with the Indenture are on deposit with the Trustee. On presentation and surrender of Bonds called for redemption at the place or places of payment, such Bonds shell be paid and redeemed. Any such no ioe shall be fictive as to each Bond to be redeemed when mailed to she registered owner thereof; and any fljttre to receive any such notice by any such registered owner shall not affect the validity of any proceedings fbr the redamption of Bonds for which such notice was given. Additional Bonds So long as the Finsndng Documents am in effect and the Company is not in deftuh tl emoder, the imMW may issue Additional Bonda on a parity with the Bonds, but only for the purposes and upon the tw= and conditions stated in the Loan Agreement and the Indenture. Additional Bonds shall bs issued only for the purpose of making improvements to the Mortgaged Property or acquiring equsipmemt for use at the Prajed. No Additions) Bonds than be issued unless (1) the terms of such Additional Bonds, the purchase price to be paid the: efiu and the manner in which the proceeds therefrom are to be disbursed shell have been approved in writing by the Cow4my, the Guuuttor and the Issuer, (2) the Company, the Guuantor and the Issuer shall have entered into a supplement to the Financing Documents as described in the Indentum and (3) the Issuer and the Trustee shall have entered Into a Supplemental Indenture 'authorizing the issuance of such Additional Bonds, and the Issuer shall have othertirise complied with the provisions of the Indenture and the Act with respect to the issuance of such Additional Bonds. MM -13- 0Z aDyd IS61 598 soz G33HH YYr[�:Fr1K 8L: I I t3f _) L6 . :I "t(;; TAX MAT E RS 0 The Internal Revenue Code of IM, a emended (the "Coda") establishes certain requirp P -- which must be met stand subsequent to the 6 ma m and delivery of the Bonds in order that nrterest on the Bonds be anti remain rscluded fiom gross inoome for purposes of federal Income taxmtion pureumt to Section 103(a) of the Code. The Issuer has covenanted in the Indenture and in the Tax Regulatory Agreern M and the Company has covenanted in the Tax Regulatory Agreement to comply with snuh requiremaats. Non-compliance with such requirements may cause interest on the Bonds to beooDae subj" to &ddoll IrAx a taxation retroactive to their date of issue, Irrespective of the date on which such non-compliance is ' ascertained. Compliance with certain of the requioreanents may neoesdtate that persons not within the control of the Issuer, the Company or the Ck antor take or raftain firom taking coin actions. Iu the opinion of AkwnMn, SerterStt & Eidson, P.A., Bond Counnsel, under existing stetutes, irr apretstions and court decisions interest on the Bonds is excluded from gross bu=e of the recipients thereof for purposes of federal income taxation pursuant to Section 103(11) ofthe Codes Under the Coda however, such interest on the Bonds is treated as a preference item to be i Wuded in calculating altern sthv minimum taxable income for purposes of the alternative miW== tax which may be imposed with respect to individuals and corporations. No opinion is exproased by Bond Counsel as to the eoodual��owithin the meaning of Section m gross Income t ]�47 sy ofthe Coda ond during the period that suchBond is bdd by a person S( ) is a substantd user of f wilides for whiob the proceeds of the Bonds were used or a related person. In addition, under the Code, we rote that interest on the Bonds is to be taken into account in the computation of certain taxes that may be imposed with respect to corporations, including without limitation the envirorrmmtal tsx and the foreign Brach profits tax In the opinion dBorrd Counsel, the Bonds and the interest thereon are exempt fivm taxation undo the lawa of the State ofFlorida as enacted and construed on the date hereof except as to estate taxes and taxes imposed,by chapter =, Flarnda Statutes, as amended, on interest, income or profits on debt obhgatiorns owned by corporations. In rendering the above-descnbed opinions. Bond Counsel will assume the accuracy of the &ctuai oert &&dons and continuing compliance by the Issuer, the Company and the Guarantor with the coves, representations, warranties, provisions and procedures set forth in the Indenture and the Tax Regulatory Agreement. If the Issuer, the Company or the Guarantor should Sul to comply with such covenants, representations, warranties, provisions and procedures or if such Factual certifications should be determined to be inaccurate or incomplete, interest on the Bonds could became includable in gross income for purposes of federal income taxation retroactive to the date of original issue of the Bonds, regardless of the date on which the event causing such Includebility occurs. 3W► •14- • L 3wa is6 = 599 coz IC. 9 7- / S Band Coureei has not undertaken to detwmim (cc to irdbrm any pawn) whether any actions taken (or not taken) or eveats ooaarring (or not oc=n is>,g) after the date of issuance of the Bonds may affect the tax tutus of infant on the Bonds. Certain requirements and procedures contained in or referred to in the Indenture, the Resohabm the Tax Regulatory Asmetnesst, the Tax Certificates and other relevant documents may be ctaueed and certain actions may be taken or omkW under the circumstances and subject to the teams cad cord d m set firth is such dowments, upon the advice or with the approving opinion of nationaihy, recognixad bond counsel. Bond Counseh expenses no opinion as to any Bond or the interest thereon if any such Omge occurs or action is taken or omitted without such advice or approval or upon the advice or approval of Bond Counsel other them thennmlves. Bond Counsel has not wA td= to advise in the fixture whether any events after the date of issusnoe afthe Bonds may of w the tax status of interest on the Bonds. No assurance can be given that Rztu v legislation, if enacted Into law, or amordmenta to the Code will not contain provisions that could directly or indirectly reduce the benefit of the ow1usion of the interest on the Bonds from gross income for purposes of federal income tnntion. Although interest on the Bonds is amiuded form gross income for purposes of federal income taxation, receipt or aoerual of such interest may otherwise affm the tax liability of the bondhdder. Ownership of tax-exempt obligations may result in collateral federal income tax consequenoes to certain taxpayers inebaditng, without iianitadon, financial institutions, property and casualty innuanoe ovrnpett 6 certain foreign corporations doing business to the United States, certain S corporations with excess passive income, individual recipients of Social Security or Railroad Retirement benefits, tsxpayas who may be deterred to have incauced or continued indebtedness to purchase or carry taax- etenapt obligsd=6 and for taxable years beginning after 1995, for persons who would otherwise be entitled to the eared income tax era& Prospective purchasers of the Bonds should consult their tax advisors as to the applicability of any collate W tax consequences ofthe ownership of a Bond including, but not limitod to alternative minimum tax and earvh onmental tax liability. See "Appendix C - Form of Approving Opinion of Bond CounseV The obligations ofC3reertwich Partners, LLC, as underwriter (the "Underwriter•') are subject to certain terms and conditions net firth in a Bond Purchase Agreement between the Issuer, the UmWwriter, the Company and the Guarantor, including the approval of certain legal matters by Bond Cocueel, the existence of no material adverse change (not in the ordinary course of business) in the condition of the Company and the Guarantor from that set forth in this Official Statement and the Appendices hereto and certain ether conditions. a0M -1s- The Company will pry the Undewriw a The of percent L%) of the aggregate pdrfc1; i arWWA of the Bonds. The Company and the Guarantor have agreed to indemnify the Underwriter and the Issuer against certain liabilities, including liabilities under the faderW securities laws. Tne Underwriter may offer aril sell the Bonds to certain dealers (including dealers depositing the Bonds into investment meats) and others at pried lower than the offering price stated on the cover page hereof. After the initial public of ing, the public offering price of the Bonds may be changed torn time to time by the Underwriter. LEGAL MATTERS Legal matters incident to the authorization and issuaw�; of the Bonds are subject to the appraving opinion ctfAkernwt, Senterfitt & Eidson, P.A., Orlando, Florids, Bond Counsel. Copies of such opinion will be avaUble at the time of the delivery of the Bonds. Certain legal matters will be passed upon for the Company and the Guarantor by Cuddy & Feder & Worby, White Plains, New York, and for the Underwriter by Whitman Breed Abbott & Morgan LLP, Greenwich, Conaecticut. NO LMGATTON The issuer. As of the date hereof there is no controversy or litigation of any nature now Pending or, to the knowledge of the Issuers, threatened against the Issuer restraining or e>joinino the isarence, sale, execution or delivery of the Bonds, or in lay way oontesting or effecting the validity of the Bonds or any proceedings of the Issuer taken with respect to the issuance or sale thereof. The Company and the Guarantor. As of the date hee=4 there is no litigation pending or, to the best knowledge of the Company and the Guww=, threatened against or affecting the Company or the Guarantor wherein an unf`vorable decision would materially and adversely &Met the Company's or the Guarantor's ability to meet their obligations under the Fuancing Doaunents to which that' are a party. F-W.1 T-4 tl*l The intarAl financial datements of the Company as of May 31, 1995. May 31, 1996 and May 31, 1997 aid for each of the yew then ended, included in Appendix A to this Official Statement, have not been audited and have bees prepared by the Company's management and were provided to the Guaraives outside auditors to be included in preparing Its consolidated financial statements for ouch years. The consolidated fmaneial statements of the Guarantor u of May 31, 1994, May 31, 1995 and May 31, 1996 and for ewh of the years then ended, included in Appendix B to this Official ta~u -16- �J • Cz'3ovd js6t 699 5C! CIZES !(YK—:FM 9: 1 1 ;3n—, 1-6 . 51 "IC" C� 8tatnead, have been sudhed by M.R. Weiser dt Co. LLP, independent certified public accountants, as stated in their report appearing therein. Such Snancial statanents haw been I=Wdsd herein In reliance upon such report given upon the a Murky of said lkm as experts in accounting nerd suditirrg. CONTM[J G DYSCM3M The law has dedwmbmd that no $nandai or operating data =morning the Issuer is material to any decision to purchase, hold or sen the Bonds and the Issuer will not provide any such k6rmartion. The Company and the Guarantor have undertaken all resporusrblities for any contimaing disclosure to Bondholden as described below, and the Issuer shall have no liability to the Bondholders of the Bonds or any other person with respect to such disclosures, The Company and the Guernotw' have covenanted for the bare8t of Bondholders to provide certain. Anancial inAmnstion and operating data relating to them by not later than ninety (90) days after the end of their fiscal years (presently May 31) commencing with the I fiscal year (the "Annual Report"), and to provide nodces of the occur: =e of certain enumerated events, ifmaterial. The Annual Report will be filed by the Company and the Gwtrantor or the Trustee on behalf of the Company and the Guaranor with the State Repository, if any. The notices of material event: will be Sled by the Trustee on behalf of the Company snd the Guarantor with the Municipal Securities Rulemaking Board or with the National -Repositories, and with any State Repository as may be designated in the State of Florida as a state repository for purposes of compliance with SEC Rule 134-12(b)(5). Annual Reports and nodoes of material events may be obtained $om the Trustee, First Union National Bank of Florida, Corporate Trust Administration, (___) TW specific nature of the kdbrrnation to be contained inthe Annual Report or the nod= of material events Is summarized in Appendix D gender the caption "Ccntim* Disclosure Agreement". These covenants have been made in order to assist the Underwriter in complying with SEC Rule l5al2(bx5). DISCLOSME REQMRED BY FLORMA BLUE SKY LAW Section 517.051(1), Florida Statutes, as amended, by Chapter 87-3I6, Laws of Florida, provides that no, person may directly or indirectly offeror sa11 securities of the Issuer except by an offering c:irculsr oontaining flrll and fair dis lostn with respect to the Bonds or other debt obligations that it has issued or guuwfted that are or have been in default a, to payment of principal or interest at any time after December 31, 1975 as provided by rule of the Florida Department of Banking and Finance (the "Department"), Pursuant to Rule 3PA00.003, Florida Administrative Code, the Department has required disclosure of the amounts and types of defaults, any legal proceedings result'rrrg from such defaults, whether a trustee or receiver has been appointed over the assets of the Issuer, and certain additional financial information, unless the Issuer believes in good (kith that such information would not be considered material by a reL onable Investor. M" -17- 71 '30vd czzys xVK—: F-V, Z e : 1 1 ; jr—) The Issuer is not and has not siaae December 31, 1975 bean in dAult as to principal or ineererc on any of its bonds or other debt Obligations, a tcept with respect to certain bonds issued on behalf of developers of projects unrelated to the Project. The Lover believes in good ihith that additional disclosure concerning such bonds would not be considered material by a reasonable investor in the Bonds because such deftAed bonds were payable solely $om the revenues of the respective projects with such bonds. The Issuer aged solely as a conduit issuer with respect to such dr&uked bond and was in no way obligated to make payments on such bonds "t that it Modyad paymenu heralbr Horn the related developer. A000rd&Wy, the defaults with respect to such other bonds in no way affect the Bonds or the :county tbereft ADDITIONAL INFORMATION The references hers i and in the appendices hereto to the Financing Documents and other documents are brief outlines of certain provisions thereof Such outlines do not purport to be complete, and reference is made to such documents, laws and contracts, copies of which are on file with the Trustee; for fill and complete statements of their provisions. Any meats in this Official Statement imoh* matters of Opinion, estimates, tbreeasts, projections or the lilac, whether or not expressly so stated, are intended as such and not as representations of l', a. U i By: SUNBELT PRECISION PRODUCTS, INC. By: INTE"LEX INDUSTRIES, INC. By: • • 5 y 30vd :S6: 699 6ct CISVE ti` nz.:F-14