Document:

<PAGE>
                                                                   EXHIBIT  10.1

                                PROMISSORY NOTE

$11,500,000.00                                                 September 4, 2003
                                                        Columbia, South Carolina

         FOR VALUE RECEIVED, INDUS UTILITY SYSTEMS, INC. ("Borrower") promises
to pay to the order of NEW SMALL RESEARCH, LLC ("Lender") at its offices at
1331 Elmwood Avenue, Suite 150-A, Columbia, South Carolina 29211, Attention:
Charles I. Small (or at such other place or places as Lender may designate in
writing) the principal sum of $11,500,000.00 under the terms and conditions of
this promissory note (the "Note") and as more fully set forth in that certain
Loan Agreement of even date (as amended or modified, the "Loan Agreement").
This Note is secured by a lien on, among other things, that certain real
property pursuant to a Mortgage and Security Agreement of even date (as amended
or modified, the "Mortgage"). The defined terms in the Loan Agreement and
Mortgage are used herein with the same meaning. All of the terms, definitions,
conditions and covenants of the Loan Agreement and Mortgage are expressly made
a part of this Note by reference in the same manner and with the same effect as
if set forth herein at length and any holder of this Note is entitled to the
benefits of and remedies provided in the Loan Agreement and Mortgage and other
agreements by and between the Borrower and Lender related to this Note or the
loan evidenced hereby. Any Event of Default under the Loan Agreement is an
Event of Default under the terms of this Note.

         1.       Interest.  The outstanding principal balance evidenced by
this Note shall accrue interest at 6 1/2 percent. Interest shall be calculated
on the basis of a 360-day year and the actual number of days elapsed during
each interest period.

         2.       Payment of Interest and Repayment of Principal.  Borrower
shall pay Lender monthly payments of principal and interest as set forth on the
payment schedule attached hereto on the 1st day of each month, starting on
October 1, 2003, during the 60-month term of the Note. On the date of this
Promissory Note, a payment of $53,986.11, representing a pro-rated payment of
principal and interest, shall be due and owing. On September 30, 2008 (as
potentially extended as set forth below, the "Maturity Date"), all unpaid
principal, interest and other charges due on the Loan shall be due and payable.

         3.       Acceleration.  Lender shall have the option of accelerating
all amounts, whether outstanding principal or accrued but unpaid interest, if an
Event of Default occurs. If payment of all sums due hereunder is accelerated,
the then outstanding principal and all accrued but unpaid interest shall bear
interest at the rate provided for hereunder plus 5% per annum until such
principal and interest have been paid in full; provided, however, that in no
event shall this or any other provision herein permit the collection of any
interest which would be usurious under the law governing this transaction, and
if any such interest is collected, the amount above the maximum rate permitted
by law shall be deemed to be a principal payment hereunder. Borrower
acknowledges that the loss to Lender due to an Event of Default is impossible
to determine and that any default rate of interest or late charges are fair and
adequate liquidated damages and not a penalty.

         4.       Late Charges.  In the event any payment of interest or
principal is delinquent more than 15 days, the Borrower will pay to Lender a
late charge of 5% of the amount of the overdue payment. This provision for late
charges shall not be deemed to extend the time for payment or be a "grace
period" or "cure period" that gives the Borrower a right to cure a default
under the Mortgage or this Note. Imposition of late charges is not contingent
upon the giving of any notice. Borrower acknowledges that the loss to Lender
due to an Event of Default is impossible to determine and that any default rate
of interest or late charges are fair and adequate liquidated damages and not a
penalty.

         5.       Application of Payments.  All sums received by Lender for
application to this Note shall be applied by Lender to late charges, expenses,
costs, interest, principal and other amounts owing to Lender in connection with
the Mortgage or this Note in the order selected by Lender in its sole
discretion.
<PAGE>
         6.  Pre-Payment.  The Note shall not be pre-paid between the effective
date hereof and September 30, 2004 (dates inclusive). The Note may be pre-paid
in whole between October 1, 2004 and September 30, 2005 (dates inclusive) with a
charge of 3% of the balance due at the time of such pre-payment. The Note may be
pre-paid in whole between October 1, 2005 and September 30, 2006 (dates
inclusive) with a charge of 2% of the balance due at the time of such
pre-payment. The Note may be pre-paid in whole between October 1, 2006 --
September 30, 2007 (dates inclusive) with a charge of 1% of the balance due at
the time of such pre-payment. The Note may be pre-paid at any time on or after
October 1, 2007 through the Maturity Date (as potentially extended as provided
in the next paragraph) without any charge. Borrower acknowledges that the loss
to Lender due to Borrower's pre-payment is impossible to determine and that any
pre-payment fee is not a penalty but, rather, fair and adequate liquidated
damages agreed to by Borrower.

         7.  Loan Renewal Option.  Provided no Event of Default has occurred
and is then continuing, Borrower may extend the Maturity Date for one
additional five year term commencing October 1, 2008 and expiring September 30,
2013 at an interest rate equal to the rate which is 425 basis points over the
rate applicable to five year U.S. Treasury bills on September 1, 2008 (or the
next business day if September 1, 2008 is not a business day), which interest
rate shall be fixed for ninety (90) day intervals (commencing October 1, 2008)
and shall adjust each January 1, April 1, July 1 and October 1 (or the next
business day if the first day of the aforesaid months is not a business day)
thereafter through the extended Maturity Date. To clarify the foregoing, the
interest rate determined as of September 1, 2008 will be effective for the
months of October, November and December, 2008 and then as of January 1, 2009
the interest rate shall be adjusted, with such adjusted interest rate effective
for the months of January, February and March, and so on through the extended
Maturity Date. Borrower must elect this renewal option by providing Lender
written notice of such election not earlier than March 1, 2008 nor later than
the last day of March, 2008. Such written election shall be deemed a
modification and amendment to this Note extending the term and adjusting the
interest rate. Lender may, however, require additional documentation of such
modification.

         8.  Expenses.  In the event this Note is not paid when due at any
stated or accelerated maturity, Borrower will pay, in addition to principal and
interest, all costs of collection, including reasonable attorneys' fees
actually incurred.

         9.  Governing Law.  This Note shall be governed by, and construed in
accordance with, the laws of the State of South Carolina.

         10.  Exculpation.  Notwithstanding anything in this Note or the Loan
Documents to the contrary, but subject to the qualifications hereinbelow set
forth, Lender agrees that:

(a)  Borrower shall be liable upon the indebtedness evidenced hereby and for
the other obligations arising under the Loan Documents to the full extent (but
only to the extent) of the security therefor, the same being all properties
(whether real or personal), rights, estates and interests now or at any time
hereafter securing the payment of this Note and/or the other obligations of
Borrower under the Loan Documents (collectively, the "Security Property");

(b)  if an Event of Default occurs, any judicial or other proceedings brought
by Lender against Borrower shall be limited to the preservation, enforcement
and foreclosure, or any thereof, of the liens, security titles, estates,
assignments, rights and security interests now or at any time hereafter
securing the payment of this Note and/or the other obligations of Borrower
under the Loan Documents, and no attachment, execution or other writ of process
shall be sought, issued or levied upon any assets, properties or funds of
Borrower other than the Security Property, except with respect to the liability
described below in this section; and

(c)  in the event of a foreclosure of such liens, security titles, estates,
assignments, rights or security interests securing the payment of this Note
and/or the other obligations of Borrower under the Loan Documents, no judgment
for any deficiency upon the indebtedness evidenced hereby shall be sought or
obtained by Lender against Borrower, except with respect to the liability
described below in this section;

                                      -2-
<PAGE>

(d)     provided, however, that notwithstanding the foregoing provisions of this
section, Borrower shall be fully and personally liable and subject to legal
action to the extent of any loss, damage, cost, expense, liability, claim,
demand or other obligation incurred by Lender (including reasonable attorneys
fees and costs actually incurred) arising out of or in connection with the
following: (i) for proceeds paid under any insurance policies (or paid as a
result of any other claim or cause of action against any person or entity) by
reason of damage, loss or destruction to all or any portion of the Security
Property, to the full extent of such proceeds not previously delivered to
Lender, but which, under the terms of the Loan Documents, should have been
delivered to Lender, (ii) for proceeds or awards resulting from the condemnation
or other taking in lieu of condemnation of all or any portion of the Security
Property, or any of them, to the full extent of such proceeds or awards not
previously delivered to Lender, but which, under the terms of the Loan
Documents, should have been delivered to Lender, (iii) for all tenant security
deposits or other refundable deposits paid to or held by Borrower or any other
person or entity in connection with leases of all or any portion of the Security
Property which are not applied in accordance with the terms of the applicable
lease or other agreement, (iv) for waste committed on the Security Property by,
or damage to the Security Property as a result of the intentional misconduct or
negligence of, Borrower or any of its principals, officers, general partners
or members, any guarantor, any indemnitor, or any agent or employee of any such
persons, or any removal of the Security Property in violation of the terms of
the Loan Documents, to the full extent of the losses or damages incurred by
Lender on account of such occurrence, (v) for failure to pay any valid taxes,
assessments, mechanic's liens, materialmen's liens or other liens which
could create liens on any portion of the Security Property which would be
superior to the lien or security title of the Mortgage or the other Loan
Documents, to the full extent of the amount claimed by any such lien claimant
except, with respect to any such taxes or assessments, to the extent that funds
have been deposited with Lender pursuant to the terms of the Mortgage
specifically for the applicable taxes or assessments and not applied by Lender
to pay such taxes and assessments, (vi) for all obligations and indemnities of
Borrower under the Loan Documents relating to hazardous or toxic substances or
radon or compliance with environmental laws and regulations to the full extent
of any losses or damages incurred by Lender as a result of the existence of such
hazardous or toxic substances or radon or failure to comply with environmental
laws or regulations, (vii) for fraud or material misrepresentation by Borrower
or any of its principals, officers, general partners or members, any guarantor,
any indemnitor or any agent, employee or other person authorized or apparently
authorized to make statements, representations or disclosures on behalf of
Borrower, any principal, officer, general partner or member of Borrower, any
guarantor or any indemnitor, to the full extent of any losses, damages and
expenses of Lender on account thereof, and (viii) for any loss of Lender
resulting from the unauthorized transfer of title to the Property by Borrower in
violation of Section 1.9 of the Mortgage.

(e)     The agreement contained in this Section 10 to limit the personal
liability of Borrower shall become null and void and be of no further force and
effect in the event of any attempt by Borrower to file a petition in
bankruptcy, or any petition seeking any reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief under the
bankruptcy laws of the United States or under any other similar federal, state
or other statute relating to relief from indebtedness, which has the effect of
materially delaying any foreclosure against the Property or other Collateral.

                        [SIGNATURES APPEAR ON NEXT PAGE]

                                      -3-
<PAGE>
         IN WITNESS WHEREOF, the Borrower has caused this Note to be duly
executed under seal as of the day and year first above written.

                                            INDUS UTILITY SYSTEMS, INC.   (SEAL)

                                            By: /s/ Jeffrey A. Babka
                                               ---------------------------------
                                               Its: Vice President and Treasurer
                                                   -----------------------------

                                      -4-
<PAGE>
                                PAYMENT SCHEDULE

<Table>
<S>                       <C>
Compound Period.........: Monthly

Nominal Annual Rate......:  6.500  %
Effective Annual Rate....:  6.697  %
Periodic Rate............:  0.5417 %
Daily Rate...............:  0.01806%
</Table>

CASH FLOW DATA

<Table>
<Caption>
-----------------------------------------------------------------------------------
     Event          Start Date     Amount              Number Period       End Date
-----------------------------------------------------------------------------------
<S>                 <C>            <C>                 <C>                 <C>
   1 Payment        09/05/2003         53,986.11           1
   2 Loan           09/05/2003     11,500,000.00           1
   3 Payment        10/01/2003         63,888.89          60 Monthly       09/01/2008
        Fixed Payment(+ Interest)
   4 Payment        10/01/2008      7,653,915.84           1
</Table>

AMORTIZATION SCHEDULE - Normal Amortization, 360 Day Year

<Table>
<Caption>
        Date            Loan              Payment      Interest        Principal        Balance
---------------------------------------------------------------------------------------------------
<S>                 <C>                 <C>           <C>             <C>            <C>
   1 09/05/2003     11,500,000.00        53,986.11          0.00       53,986.11         53,986.11-
Loan 09/05/2003                                             0.00            0.00     11,446,013.89
   2 10/01/2003                         117,621.57     53,732.68       63,888.89     11,382,125.00
   3 11/01/2003                         125,542.07     61,653.18       63,888.89     11,318,236.11
   4 12/01/2003                         125,196.00     61,307.11       63,888.89     11,254,347.22
2003 Totals         11,500,000.00       422,345.75    176,692.97      245,652.78

   5 01/01/2004                         124,849.94     60,961.05      63,888.89      11,190,458.33
   6 02/01/2004                         124,503.87     60,614.98      63,888.89      11,126,569.44
   7 03/01/2004                         124,157.81     60,268.92      63,888.89      11,062,680.55
   8 04/01/2004                         123,811.74     59,922.85      63,888.89      10,998,791.66
   9 05/01/2004                         123,465.68     59,576.79      63,888.89      10,934,902.77
  10 06/01/2004                         123,119.61     59,230.72      63,888.89      10,871,013.88
  11 07/01/2004                         122,773.55     58,884.66      63,888.89      10,807,124.99
  12 08/01/2004                         122,427.48     58,538.59      63,888.89      10,743,236.10
  13 09/01/2004                         122,081.42     58,192.53      63,888.89      10,679,347.21
  14 10/01/2004                         121,735.35     57,846.45      63,888.89      10,615,458.32
  15 11/01/2004                         121,389.29     57,500.40      63,888.89      10,551,569.43
  16 12/01/2004                         121,043.22     57,154.33      63,888.89      10,487,680.54
2004 Totals                  0.00     1,475,358.96    708,692.28     766,666.68

  17 01/01/2005                         120,697.16     56,808.27      63,888.89      10,423,791.65
  18 02/01/2005                         120,351.09     56,462.20      63,888.89      10,359,902.76
  19 03/01/2005                         120,005.03     56,116.14      63,888.89      10,296,013.87
  20 04/01/2005                         119,658.97     55,770.08      63,888.89      10,232,124.98
  21 05/01/2005                         119,312.90     55,424.01      63,888.89      10,168,236.09
  22 06/01/2005                         118,966.84     55,077.95      63,888.89      10,104,347.20
  23 07/01/2005                         118,620.77     54,731.88      63,888.89      10,040,458.31
  24 08/01/2005                         118,274.71     54,385.82      63,888.89       9,976,569.42
  25 09/01/2005                         117,928.64     54,039.75      63,888.89       9,912,680.53
  26 10/01/2005                         117,582.58     53,693.69      63,888.89       9,848,791.64
  27 11/01/2005                         117,236.51     53,347.62      63,888.89       9,784,902.75
  28 12/01/2005                         116,890.45     53,001.56      63,888.89       9,721,013.86
2005 Totals                  0.00     1,425,525.65    658,858.97     766,666.68

  29 01/01/2006                         116,544.38     52,655.49      63,888.89       9,657,124.97
  30 02/01/2006                         116,198.32     52,309.43      63,888.89       9,593,236.08
</Table>
<PAGE>
                                                            09/05/2003    Page 2

<Table>
<Caption>
       DATE                 LOAN             PAYMENT           INTEREST          PRINCIPAL          BALANCE
       ----             -------------     -------------      ------------      -------------      ------------
<S> <C>  <C>            <C>                <C>               <C>               <C>                <C>
    31   03/01/2006                          115,852.25         51,963.36          63,888.89      9,529,347.19
    32   04/01/2006                          115,506.19         51,617.30          63,888.89      9,465,458.30
    33   05/01/2006                          115,160.12         51,271.23          63,888.89      9,401,569.41
    34   06/01/2006                          114,814.06         50,925.17          63,888.89      9,337,680.52
    35   07/01/2006                          114,467.99         50,579.10          63,888.89      9,273,791.63
    36   08/01/2006                          114,121.93         50,233.04          63,888.89      9,209,902.74
    37   09/01/2006                          113,775.66         49,886.97          63,888.89      9,146,013.85
    38   10/01/2006                          113,429.80         49,540.91          63,888.89      9,082,124.96
    39   11/01/2006                          113,083.73         49,194.84          63,888.89      9,018,236.07
    40   12/01/2006                          112,737.87         48,848.78          63,888.89      8,954,347.18
2006     Totals                  0.00      1,375,692.30        609,025.62         766,666.68

    41   01/01/2007                          112,391.60         48,502.71          63,888.89      8,890,458.29
    42   02/01/2007                          112,045.54         48,156.65          63,888.89      8,826,569.40
    43   03/01/2007                          111,699.47         47,810.58          63,888.89      8,762,680.51
    44   04/01/2007                          111,353.41         47,464.52          63,888.89      8,698,791.62
    45   05/01/2007                          111,007.34         47,118.45          63,888.89      8,634,902.73
    46   06/01/2007                          110,661.28         46,772.39          63,888.89      8,571,013.84
    47   07/01/2007                          110,315.21         46,426.32          63,888.89      8,507,124.95
    48   08/01/2007                          109,969.15         46,080.26          63,888.89      8,443,236.06
    49   09/01/2007                          109,623.09         45,734.20          63,888.89      6,379,347.17
    50   10/01/2007                          109,277.02         45,388.13          63,888.89      8,315,458.28
    51   11/01/2007                          108,930.96         45,042.07          63,888.89      8,251,569.39
    52   12/01/2007                          108,584.89         44,696.00          63,888.89      8,187,680.50
2007     Totals                  0.00      1,325,858.96        559,192.28         766,666.68

    53   01/01/2008                          108,238.83         44,349.94          63,888.89      8,123,791.61
    54   02/01/2008                          107,892.76         44,003.87          63,888.89      8,059,902.72
    55   03/01/2008                          107,546.70         43,657.81          63,888.89      7,996,013.83
    56   04/01/2008                          107,200.63         43,311.74          63,888.89      7,932,124.94
    57   05/01/2008                          106,854.57         42,965.68          63,888.89      7,868,236.05
    58   06/01/2008                          108,508.50         42,619.61          63,888.89      7,804,347.16
    59   07/01/2008                          106,162.44         42,273.55          63,888.89      7,740,458.27
    60   08/01/2008                          105,816.37         41,927.48          63,888.89      7,676,569.38
    61   09/01/2008                          105,470.31         41,581.42          63,888.89      7,612,680.49
    62   10/01/2008                        7,653,915.84         41,235.35       7,612,680.49              0.00
2008     Totals                  0.00      8,615,606.95        427,926.45       8,187,680.50

Grand Totals            11,500,000.00     14,640,386.57      3,140,388.57      11,500,000.00
</Table><PAGE>
                                                                    EXHIBIT 10.2

THIS AGREEMENT IS SUBJECT TO MANDATORY ARBITRATION PURSUANT TO THE FEDERAL
ARBITRATION ACT AND IF THE FEDERAL ARBITRATION ACT IS INAPPLICABLE, THE UNIFORM
ARBITRATION ACT, SECTION 15-48-10, ET SEQ., CODE OF LAWS OF SOUTH CAROLINA 1976
AS AMENDED

                                 LOAN AGREEMENT

         THIS LOAN AGREEMENT, made this 4th day of September, 2003 (this
"Agreement") between INDUS UTILITY SYSTEMS, INC., a Delaware corporation
("Borrower"), whose address is: Carolina Research Park, 9 Science Court,
Columbia, South Carolina 29203-9344, Attention: Marvin W. Davis, with copy to
Indus International, Inc., 3301 Windy Ridge Parkway, Atlanta, Georgia 30339,
Attention: General Counsel and Chief Financial Officer, and NEW SMALL RESEARCH,
LLC, a South Carolina limited liability company ("Lender"), whose address is
1331 Elmwood Avenue, Suite 150-A, Columbia, South Carolina 29211, Attention:
Charles I. Small.

                                   ARTICLE I

                                      LOAN

         1.1      In accordance with the terms and conditions of that certain
term sheet from Lender to Borrower (the "Term Sheet"), the Lender does hereby
agree to lend to the Borrower, and the Borrower does hereby agree to borrow
from the Lender, up to the sum of $11,500,000.00 (the "Loan"), said sum to be
advanced at closing and repaid together with interest thereon and with certain
costs and charges as may be incurred by the Borrower, all as more particularly
described in the Loan Documents. The Loan shall be evidenced by a promissory
note, to be dated the date hereof, with such note to be in the principal amount
of up to $11,500,000.00 ("Note"), the proceeds of which shall be used to pay
off existing debt and for general corporate purposes. The Note shall be secured
pari passu by:

                  A.       A mortgage and security agreement (the "Mortgage"),
         in form and content satisfactory to Lender, granting to the Lender a
         title insured first priority mortgage lien on that certain real
         property containing approximately 22 acres located at #7 and #9
         Science Corporation, Carolina Research Park, Columbia, South Carolina
         (as more particularly described in Exhibit A attached hereto and made
         a part hereof), together with all improvements constructed thereon
         (the "Property"), and a security interest in therein described
         personal property owned by Borrower and located, or to be located, on
         the Property, together with sufficient financing statements (the
         "Financing Statements"), in form and content satisfactory to Lender,
         to perfect such security interest in accordance with South Carolina
         law.

                  B.       Assignment of Contracts (the "Assignment of
         Contracts") in form and content satisfactory to Lender.

                  C.       A Recourse Carve-Out Guaranty (the "Guaranty") in
         form and content satisfactory to Lender.

         This Loan Agreement, the Note, Mortgage, Assignment of Contracts, the
Guaranty, Financing Statements and all other documents and instruments which
may be reasonably required by the Lender, are hereinafter sometimes referred to
collectively as the "Loan Documents". In the event of a conflict between the
Term Sheet and the Loan Documents, the Loan Documents shall control. The
closing of the loan evidenced by the Note shall be deemed conclusive evidence
that Lender has approved the form and content of the aforesaid documents.

<PAGE>
         1.2      In the event of any conflict between the terms and provisions
contained in this Agreement and in any of the Loan Documents or the Term Sheet,
the terms and provisions of this Agreement shall control.

                                   ARTICLE II

                                   [RESERVED]

                                  ARTICLE III

                 REPRESENTATIONS AND WARRANTIES OF THE BORROWER

         3.1      In order to induce the Lender to enter into and execute this
Agreement and to make the Loan to the Borrower, as of the date hereof, the
Borrower represents and warrants to the Lender as follows:

                  A.       The Borrower has full power to enter into and
         execute this Agreement and the Loan Documents and to consummate the
         transaction contemplated thereby.

                  B.       The Borrower has heretofore delivered to Lender a
         true, accurate and complete copy of its organizational documents,
         together with all amendments thereto, including a complete and
         accurate listing of all parties of the entity with ownership
         percentages, as applicable.

                  C.       The Borrower has heretofore delivered to the Lender
         the financial statements of the Borrower.

                  D.       There are no actions, suits or proceedings pending,
         or to the knowledge of the Borrower, threatened: (i) involving the
         validity or enforceability of this Agreement or any of the Loan
         Documents; or (ii) involving the priority of any lien created by, or
         granted pursuant to, any of the Loan Documents; or (iii) to the extent
         the following would have a material, adverse effect on the Borrower's
         ability to perform under the Loan Documents, against or affecting the
         Borrower or the Property.

                  E.       The Borrower has obtained all licenses, permits,
         authorizations, consents or approvals from all appropriate public or
         private boards and bodies necessary for the ownership of the Property,
         and all such licenses, permits, authorizations, consents or approvals
         are or will be, in full force and effect.

                  F.       The Borrower is not in default of any of the
         material provisions of any of the Loan Documents.

                  G.       The Property has adequate rights of access to public
         ways and all water, sanitary sewer and storm drain facilities. All
         public utilities necessary or convenient to the full use and enjoyment
         of the Property are available to the Property, and if not now
         installed the same shall be constructed and installed to service the
         Property.

                  H.       No representation or warranty of the Borrower
         contained in this Agreement or in any of the Loan Documents, and no
         statement contained in any certificate, schedule, list, financial
         statement or other instrument furnished to the Lender by or on behalf
         of the Borrower contains, or will contain, any untrue statement of a
         material fact, or omits, or will omit, to state a material fact
         necessary to make the statements contained herein or therein not
         materially misleading.

         3.2      All warranties and representations of the Borrower contained
herein shall survive the execution of this Agreement and any advances made in
accordance with this Agreement. All such representations and warranties shall
be deemed to be remade as of the date of each request for an advance under the
Loan and shall be true and correct as of such date.

                                      -2-
<PAGE>
                                   ARTICLE IV

                           COVENANTS OF THE BORROWER

         4.1      The Borrower covenants with the Lender as follows, unless
Lender provides its written consent to the contrary:

                  A.       It shall maintain, preserve and keep the Property
         and the grounds, structure improvements appurtenant thereto or used
         therewith, and each and every part and parcel thereof, in good repair
         and working order and in safe condition at all times.

                  B.       It shall permit the Lender and its duly authorized
         agents free access to the Property and shall, upon reasonable prior
         notice from Lender, make available for audit and inspection, at any
         reasonable time by the Lender or its duly authorized agents, all
         property, equipment, books, contracts, records and other papers
         relating to the Property. It shall keep the books and accounts of all
         operations relating to the Property in accordance with generally
         accepted accounting procedures.

                  C.       It shall promptly respond to any inquiry from the
         Lender for information with respect to the Property which information
         may be verified by the Lender; provided, however, that the Lender
         shall at all times be entitled to rely upon any statements or
         representations made by the Borrower or any employee or agent of
         Borrower.

                  D.       It shall pay, when due, all reasonable costs, fees
         and expenses actually incurred by Lender as required by the Loan
         Documents and all reasonable fees, costs and expenses actually
         incurred by Lender concerning the consummation of the transaction
         contemplated hereby. Such fees and expenses shall include, without
         being limited to, all reasonable fees and expenses of Lender's counsel
         in connection with the closing of the Loan and for such further advice
         and counsel as Lender may reasonably require during the term of the
         Loan in order to preserve Lender's interest in the Property. If
         Borrower fails to pay all such fees and expenses, Lender may at its
         option advance funds under the Note to pay such fees and expenses.

                  E.       It shall pay promptly when due and at maturity the
         principal of the Loan, together with interest thereon, and all other
         charges and amounts due the Lender, the said payment to be made
         without any deduction for taxes, assessments or governmental charges
         in the nature thereof upon said Loan, or the interest evidenced
         thereby, or any part thereof, which the Borrower may be required or
         permitted to deduct, retain or pay therefrom or thereon, under or by
         reason of any present or future law of the United States or of any
         state, municipality or taxing authority thereof.

                  F.       It shall purchase and continually maintain and keep
         in full force and effect, at its sole expense, those policies of
         insurance and endorsements thereto described in the Mortgage. The
         Borrower shall deliver the original policies of insurance or
         certificates thereof to the Lender and shall deliver to the Lender all
         renewals thereof not less than 30 days in advance of the expiration
         date of the existing policy or policies.

                  G.       It shall notify the Lender of any loss insured
         against under any policy of insurance required hereby within 10 days
         of the occurrence of said loss.

                  H.       It shall faithfully pay and discharge promptly when
         due all taxes, assessments, forced contributions, local assessments
         and governmental charges of every description which shall from time to
         time be imposed or assessed or levied upon the Property, or any part
         thereof, and/or upon or against any personal property situated
         therein, including all state and municipal taxes affecting the
         Property and the Property and/or personal property located therein;
         provided, however, that Borrower shall be entitled by appropriate
         proceedings to contest the amount or

                                      -3-
<PAGE>
         validity of such tax, assessment or charge so long as the collection
         of the same by foreclosure of the lien upon the Property is stayed
         during the pendency of such proceedings and Borrower deposits with the
         applicable authority to which such tax, assessment or charge is
         payable or with Lender such appropriate security for payment of the
         same, together with any applicable interest and penalties, should the
         same be determined due and owing.

                  I.       It shall keep valid and unimpaired the Mortgage and
         the other Loan Documents described hereinabove, and to that end shall
         execute at any future time and as often as may be deemed necessary,
         within a reasonable time after demand of the Lender, all further
         instruments, assignments and other acts in due form and effect as may
         be deemed proper by the Lender to the better carrying out of the true
         intent and meaning of this Agreement, and at the Borrower's sole cost,
         shall do all other things that may be reasonably required by the
         Lender to make and keep valid the liens on, and security interest in,
         the property described in the various Loan Documents and to maintain
         the priority of the said liens and security interests. Notwithstanding
         the foregoing to the contrary, Borrower shall not be required to
         execute any further instruments, assignments or acts if same would
         increase Assignor's obligations or liability under this Agreement or
         the Loan Documents or if same would contradict any express provisions
         of this Agreement or the Loan Documents.

                  J.       It shall notify the Lender in writing within 10 days
         of receipt of notice thereof should any mortgage or lien or any other
         security instrument whatsoever be filed against the Property described
         in the Mortgage.

                  K.       It shall remove or bond off under the provisions of
         applicable law any lien or claim of lien filed for record, within 60
         days of date of notice to the Borrower of filing of said claim.

                  L.       It shall not permit the entry of any monetary
         judgment or the assessment against, the filing of any tax lien
         against, or the issuance of any writ of garnishment or attachment
         against the Property that is not discharged or execution not stayed
         within 30 days of entry.

                  M.       It shall not create, assume, or permit to exist any
         mortgage, security deed, deed of trust, pledge, lien, charge or other
         encumbrance on the Property, whether now owned or hereafter acquired,
         other than (i) security interests required by the Loan Documents; (ii)
         liens for taxes contested in good faith; (iii) liens accruing by law
         for employee benefits; or (iv) permitted liens.

                  N.       It shall not convey, transfer, lease, deteriorate or
         further encumber the Property or any of the properties described in
         the Mortgage and/or the other Loan Documents, or any right to manage
         or receive any of the rents and profits and insurance thereof.

                  O.       It shall not Convey, assign, transfer, deteriorate,
         or encumber any personal property included within the definition of
         Property. It shall not dispose of any personal property included
         within the definition of Property, unless replaced with an item of
         equal or better utility or value.

                  P.       It shall not, directly or indirectly, create, incur,
         assume or become liable for any additional indebtedness, whether
         contingent or direct, if such additional indebtedness is secured by
         the Property.

                  Q.       It shall not purchase or acquire any items meeting
         the definition of Property upon leases, conditional sale or other type
         of title retention or security agreement.

                                   ARTICLE V

                                      -4-
<PAGE>
                 CONDITIONS TO CLOSING/OTHER SPECIAL CONDITIONS

         5.1      On or prior to the date of the funding, Borrower will provide
Lender with an opinion, in form and substance satisfactory to Lender, from an
attorney acceptable to Lender.

         5.2      Prior to the date of Closing, at Borrower's expense, Lender
must be able to obtain an appraisal (the "Appraisal") of the Property from an
MAI certified appraiser acceptable to Lender which Appraisal must show a market
value (the "Market Value"), after review and adjustment, if any, by Lender
sufficient to provide a Loan to Market Value ratio of no greater than 62%.

         5.3      Any management of the Property, other than the current
Borrower's self-management, is subject to the approval of Lender. Any
management agreement must be reviewed and approved by Lender, and Lender shall
require an assignment of such agreement in form and content acceptable to
Lender. The distribution of any management fees will be subordinate to the
Loan.

         5.4      To additionally secure Borrower's timely payment of the Note,
on or prior to the date of the funding, Borrower shall cause $600,000.00 to be
transferred into an interest bearing cash collateral account (the "Account")
with Carolina First Bank, which account shall be in the name of Lender. The
Account, including all interest earned, shall be released to Borrower on April
1, 2008 if no Event of Default has occurred and is then continuing. Lender
shall hold the Account in trust for Borrower until an Event of Default, at
which time Lender may, at its option, use all or a portion of the Account to
cure such Event of Default; if such funds are not so used, such funds (or
remaining portion thereof), including all interest earned, shall be returned to
Borrower on the Maturity Date.

         5.5      Payment of a loan commitment fee to Lender of $115,000.00.

         The closing of the loan evidenced by the Note shall be deemed
conclusive evidence that Borrower satisfied the conditions set forth in this
Article V to Lender's satisfaction.

                                   ARTICLE VI

                            REQUIREMENTS FOR FUNDING

         6.1      The obligation of the Lender to fund the Loan to the Borrower
is subject to the receipt of the Lender, on or prior to the date of execution
of this Agreement, of the following:

                  A.       Executed copies of all Loan Documents required by
         Lender.

                  B.       Evidence of compliance with all laws, zoning and
         other ordinances, rules, regulations and restrictions affecting the
         construction and use of the Property, and evidence of approval of the
         Property by all local environmental and ecology boards, zoning and
         planning commissions and any other land use regulatory bodies.

                  C.       Evidence of compliance with all restrictions and
         covenants effecting the Property.

                  D.       A current survey, certified to the Lender and to the
         title insurer, showing all easements (existing and proposed, labeled
         accordingly), rights of way, utilities, means of ingress and egress,
         setback lines and encroachments, if any.

                  E.       A paid policy of mortgagee title insurance on an
         American Land Title Association Loan Policy form acceptable to Lender,
         without exceptions which are unacceptable to the Lender, in the full
         amount of the Loan, issued by a title company approved by the Lender
         and insuring title to the Property, free and clear of all other liens,
         claims and encumbrances except

                                      -5-
<PAGE>
         such as Lender and its counsel shall reasonably approve. Such policy
         must also contain such other terms as may be required by Lender as
         specified in the Commitment.

                  F.       Provide evidence that those policies of insurance as
         required in the Mortgage are in effect.

         The closing of the loan evidenced by the Note shall be deemed
conclusive evidence that Borrower satisfied the conditions set forth in this
Article VI to Lender's satisfaction.

                                  ARTICLE VII

                                   [RESERVED]

                                  ARTICLE VIII

                          EVENTS OF DEFAULT; REMEDIES

         8.1      The following shall constitute Events of Default hereunder:

                  A.       If the Borrower shall fail to pay the Note in full
         on the Maturity Date.

                  B.       If the Borrower shall fail to pay any other payment
         of principal or interest on the Loan when due, and such failure is not
         cured within 10 business days after written notice from Lender. (an
         Event of Default under this subsection (B) is referred to herein as a
         "Monetary Event of Default")

                  C.       If at any time any representation or warranty made
         by the Borrower herein or in any other Loan Document shall be or
         become materially incorrect, and such is not cured, if subject to
         cure, within 30 days after written notice from Lender.

                  D.       If the Borrower shall breach or fail to comply with
         any other covenant, term or condition of, or any of its obligations
         under, this Agreement, the Mortgage or any other Loan Document, all of
         which are cumulative to this Agreement and to each other, and such
         breach is not cured, if subject to cure, within 30 days after written
         notice from Lender (or if not capable of cure within such 30-day
         period, then such longer time as may be necessary provided Borrower is
         diligently prosecuting such cure to completion).

                  E.       If a lien for the performance of architectural or
         engineering services, or other work, or labor, or the supply of
         materials, be filed against the Property and remain unpaid or unbonded
         at the time of any request for advance, or for a period of 60 days
         after the date of filing thereof.

                  F.       If the Borrower shall agree to, or execute, any
         assignment of this Agreement or any advance hereunder without the
         Lender's prior written consent.

                  G.       If Borrower: (i) files a voluntary petition in
         bankruptcy, or (ii) is adjudicated as a bankrupt or insolvent, or
         (iii) files any petition or answer seeking or acquiescing in any
         reorganization, management, composition, readjustment, liquidation,
         dissolution or similar relief for itself under any law relating to
         bankruptcy, insolvency or other relief for debtors, or (iv) seeks or
         consents to or acquiesces in the appointment of any trustee, receiver,
         master or liquidator of itself or of all or any substantial part of
         the Property or of any or all of the rents, revenues, issues,
         earnings, profits or income thereof, or (v) makes any general
         assignment for the benefit of creditors, or (vi) makes an admission in
         writing of its inability to pay its debts generally as they

                                      -6-
<PAGE>
         become due; or (vii) a court of competent jurisdiction enters an
         order, judgment or decree approving a petition filed against Borrower,
         seeking any reorganization, arrangement, composition, readjustment,
         liquidation, dissolution or similar relief under any present or future
         federal, state, or other statute, law or regulation relating to
         bankruptcy, insolvency or other relief for debtors, which order,
         judgment or decree remains unvacated and unstayed for an aggregate of
         60 days (whether or not consecutive) from the date of entry thereof;
         or (viii) any trustee, receiver or liquidator of Borrower or of all or
         any substantial part of the Property or of any or all of the rents,
         revenues, issues, earnings, profits or income thereof, is appointed
         without the prior written consent of Lender, which appointment shall
         remain unvacated and unstayed for an aggregate of 60 days (whether or
         not consecutive).

                  H.       If default be made in the repayment by the Borrower
         to the Lender, together with interest, of any amount the Lender may
         pay as insurance premiums, taxes, assessments, forced contributions,
         local assessments and governmental charges of every description, or
         other charges as herein provided, and such default is not cured within
         10 days after written notice from Lender.

                  I.       If the property described in the Mortgage, or any
         part or parcel thereof, be seized in the execution of a writ of
         seizure and sale, attachment, sequestration, fieri facias or any other
         legal process or an order for the sale of such property, or any part
         or parcel thereof, be issued in any judicial proceeding, and such
         writ, or other legal process or order, be not released, revoked,
         stayed or set aside within 30 days from issuance thereof, or if any
         sale be made pursuant to any of the above.

                  J.       If the Borrower should ever be required or permitted
         to deduct from the payments to be made on the Loan, or any part
         thereof, any amount whatsoever as taxes, assessments or governmental
         charges in the nature thereof by reason of any present or future law
         of the United States or of any state, municipality or taxing authority
         thereof, and the Borrower fails to pay to the Lender, within 30 days
         after written notice from Lender, an amount sufficient so that all
         payments due the Lender pursuant to the terms hereof or any Loan
         Document shall be absolutely net of such tax, assessment or
         governmental charge.

                  K.       If there should be passed after the date hereof any
         law of the State of South Carolina providing or changing in any way
         the laws now enforced with respect to the taxation of mortgages or
         debts secured thereby, or the manner of the collection of any such
         taxes, so as to affect the interest of the Lender adversely, and the
         Borrower fails to pay to the Lender within 30 days notice from the
         Lender any costs to be borne by the Lender attributable to the
         composition of, and/or change in, such law or laws.

         8.2.     If an Event of Default shall occur, the Lender, at its
option, may:

                  A.       Terminate any obligation to make any advances of the
         Loan and/or declare the entire outstanding principal balance of the
         Loan, together with all interest thereon, to be due and payable
         immediately, anything contained in this Agreement, the Note or any
         other Loan Document to the contrary notwithstanding.

                  B.       With or without accelerating the Loan, advance funds
         under the Note directly to third parties to cure any default by
         Borrower, including without limitation, payments for property taxes,
         insurance premiums, maintenance and repair, and management fees,
         payment of other expenses concerning the Property, and payment of
         Lender's reasonable attorney's fees actually incurred and other
         reasonable fees and expenses. All of said advances shall be deemed
         made under the Note and shall be payable immediately with interest at
         the Default Rate (as such term is defined in the Note).

                  C.       Enforce any and/or all of the Loan Documents, and,
         by way of illustration but not by way of limitation, cause all and
         singular the property described in the Mortgage and/or any

                                      -7-
<PAGE>
         of the other Loan Documents to be seized and sold under executory
         process without appraisement, appraisement being hereby expressly
         waived, as an entirety or in parcels, as the Lender may determine, in
         accordance with law. Notwithstanding the foregoing to the contrary,
         Lender's remedies shall be subject to the limitations as set forth in
         Section 10 of the Note.

         8.3      Upon the occurrence of an Event of Default, all powers and
remedies given by this Article VIII to the Lender shall be cumulative and not
exclusive of any other right or remedy or of any other powers and remedies
available to the Lender under the Loan Documents, by judicial proceedings or
otherwise, to enforce the performance or observance of the covenants and
agreements of the Borrower contained in this Agreement, and no delay or
omission of the Lender to exercise any right or power accruing upon any Event
of Default occurring shall impair any such right or power, or shall be
construed to be a waiver of any such Event of Default or an acquiescence
therein. Upon the occurrence of an Event of Default, every power and remedy
given by this Article VIII or by law to the Lender may be exercised from time
to time, and as often as may be deemed expedient, by the Lender. No waiver of
any default hereunder shall extend to or affect any other or subsequent default
or impair any rights or remedies consequent thereon. Notwithstanding the
foregoing to the contrary, Lender's remedies shall be subject to the
limitations as set forth in Section 10 of the Note.

         8.4      Should the Lender, at its sole option, elect to employ the
services of any attorney at law to represent it in the enforcement of any
obligation undertaken by the Borrower in favor of the Lender, or undertaken by
any third person in favor of the Borrower in connection herewith, the Borrower
does hereby agree to pay to the Lender the reasonable fees and expenses of said
attorneys actually incurred by Lender.

         8.5      The Borrower does hereby expressly waive in favor of the
Lender and its assigns, to the fullest extent allowed by law, any and all
exemptions from seizure provided by any law, rule or regulation of the State of
South Carolina, the United States, or any other state.

         8.6      Except as otherwise expressly provided herein or in the other
Loan Documents, the Borrower does hereby expressly waive any notice by the
Lender of any Event of Default or any notice or demand by the Lender of any
breach of any obligation undertaken by the Borrower in favor of the Lender.

                                   ARTICLE IX

                                 MISCELLANEOUS

         9.1      No waiver at any time of the provisions or conditions of this
Loan Agreement or of any of the other Loan Documents shall be construed as a
waiver of any of the other provisions or conditions hereof or thereof nor shall
a waiver of any provision or condition be construed as a right to subsequent
waiver of the same provision or condition.

         9.2      Unenforceability for any reason of any provision of this
Agreement, or of any of the Loan Documents or other agreements between the
Borrower and the Lender, shall not limit or impair the operation or validity of
any other provisions of this Agreement, any of the Loan Documents or any other
such agreement.

         9.3      Any notice, demand, request or other instrument which may be
or is required to be given under this Agreement shall be given to the parties
at their addresses respectively set forth on page one (1) of this Agreement, by
certified mail, return receipt requested or by nationally recognized overnight
courier, and shall be deemed to be received upon the date of execution of the
return receipt or the date upon which the postal authorities or courier service
first attempted delivery of such notice and same is undelivered or refused.

         9.4      Except as may otherwise be provided the Loan is made and
accepted, and all instruments related thereto are executed and delivered, at
Columbia, South Carolina, and this Agreement and all the

                                      -8-
<PAGE>
Loan Documents shall be governed by, and construed in accordance with, the laws
of the State of South Carolina.

         9.5      The Loan shall be made without cost whatsoever to the Lender.
All brokerage and real estate commissions shall be payable solely by the
Borrower, and all other costs, including but not limited to reasonable
attorneys' fees actually incurred by the Lender and the Borrower, other
professional fees, intangible taxes and other typical expenses incurred in
connection with the Loan, shall be borne by the Borrower. The fees Borrower
must pay pursuant to this Section 9.5 shall be identified by Lender and paid by
Borrower at the Closing.

         9.6      The parties hereto agree that time is of the essence to this
Agreement.

         9.7      The Borrower hereby specifically grants unto the Lender the
right and privilege, at Lender's option but upon written notice to Borrower, to
transfer and assign to any third person all or any part of the Lender's rights
to receive funds or payments hereunder.

         9.8      The Lender shall not be responsible for the solvency of any
company issuing any policy of insurance in connection with this Agreement,
whether or not approved by it, or for the collection of any amount due under
any such policy, and shall be responsible and accountable only for such money
as may be actually received by it, and then only in accordance with the terms
hereof. Nothing herein contained shall be construed as making the Lender liable
in any way for any loss, damage, or injury resulting from the non-insurance of
any buildings, improvements and/or personal property located on the Property.

         9.9      In the event that the Borrower should, for any reason, fail
to pay and discharge properly any taxes, assessments, forced contributions,
local assessments or governmental charges when due, or any other charges or
expenses payable by the Borrower, then the Lender shall be authorized to pay
the same with full subrogation to all rights of the taxing authority or other
recipient by reason of such payment, and the amount so paid shall be added to
the principal of the Loan and, any clause to the contrary herein
notwithstanding, in the event of payment by the Lender, the Borrower covenants
and agrees that within 10 days after payment and demand therefor by the Lender,
the Borrower shall repay the amount so paid by the Lender, together with
interest thereon at the rate provided for in the Note, calculated from date of
such payment until said amount is repaid. Nothing herein shall be construed,
however, as making the payment of said taxes, assessments, forced
contributions, local assessments, governmental charges or other expenses
obligatory upon the Lender or its assigns, and none and neither of them shall
be liable for any loss, damage or injury resulting from the nonpayment of such
taxes, assessments, forced contributions, local assessments, governmental
charges or other expenses.

         9.10     It is expressly agreed that any and all terms of this
Agreement, the Loan Documents and all other agreements made or executed by the
Borrower or others in favor of the Lender, and all rights, powers, privileges,
options and remedies conferred to the Lender herein, shall inure to and be for
the benefit of and may be exercised by the Lender, its successors and assigns;
and the word "Lender", unless the context otherwise requires, shall also mean
and include the successor or successors and the assign or assigns of the said
Lender.

         9.11     All obligations contained in this Agreement, the Loan
Documents and all other agreements to be observed, complied with or performed
by the Borrower shall be binding upon the Borrower, and upon its successor and
assigns, as well as upon any person, firm or corporation hereinafter acquiring
title to the Property, or any part thereof, or any personal property located
thereon, by, through or under the Borrower, and the word "Borrower", unless the
context clearly requires otherwise, shall also mean and include the successors
and assigns of the Borrower, and any other person, firm or corporation,
acquiring title to any of the Property, or any part thereof, or personal
property located thereon, by, through, or under the Borrower.

         9.12     Upon demand of any party hereto, whether made before or after
institution of any judicial proceeding, any dispute, claim or controversy
arising out of, connected with or relating to this Agreement and/or any other
Loan Documents ("Disputes") between or among parties to this Agreement shall be

                                      -9-
<PAGE>
resolved by binding arbitration as provided herein. Institution of a judicial
proceeding by a party does not waive the right of that party to demand
arbitration hereunder. Disputes may include, without limitation, tort claims,
counterclaims, disputes as to whether a matter is subject to arbitration,
claims brought as class actions, claims arising from Loan Documents executed in
the future, or claims arising out of or connected with the transaction
reflected by this Agreement.

         Arbitration shall be conducted under and governed by the Commercial
Financial Disputes Arbitration Rules (the "Arbitration Rules") of the American
Arbitration Association (the "AAA") and Title 9 of the U.S. Code. All
arbitration hearings shall be conducted in the city in which the office of Bank
first stated above is located. The expedited procedures set forth in Rule 51 et
seq. of the Arbitration Rules shall be applicable to claims of less than
$1,000,000. All applicable statutes of limitation shall apply to any Dispute. A
judgment upon the award may be entered in any court having jurisdiction. The
panel from which all arbitrators are selected shall be comprised of licensed
attorneys. The single arbitrator selected for expedited procedure shall be a
retired judge from the highest court of general jurisdiction, state or federal,
of the state where the hearing will be conducted or if such person is not
available to serve, the single arbitrator may be a licensed attorney.
Notwithstanding the foregoing, this arbitration provision does not apply to
disputes under or related to swap agreements.

         Notwithstanding the preceding binding arbitration provisions, Lender
and Borrower agree to preserve, without diminution, certain remedies that any
party hereto may employ or exercise freely, independently or in connection with
an arbitration proceeding or after an arbitration action is brought. Lender and
Borrower shall have the right to proceed in any court of proper jurisdiction or
by self-help to exercise or prosecute the following remedies, as applicable:
(i) all rights to foreclose against any real or personal property or other
security pursuant to the remedies granted under Loan Documents, to the extent
allowable under applicable state law, or under applicable law or by judicial
foreclosure and sale, including a proceeding to confirm the sale; (ii) all
rights of self-help including peaceful occupation of real property and
collection of rents, set-off, and peaceful possession of personal property; and
(iii) obtaining provisional or ancillary remedies including injunctive relief,
sequestration, garnishment, attachment, appointment of receiver and filing an
involuntary bankruptcy proceeding. Preservation of these remedies does not
limit the power of an arbitrator to grant similar remedies that may be
requested by a party in a Dispute.

         Borrower and Lender agree that they shall not have a remedy of
punitive or exemplary damages against the other in any Dispute and hereby waive
any right or claim to punitive or exemplary damages they have now or which may
arise in the future in connection with any Dispute whether the Dispute is
resolved by arbitration or judicially.

         9.13     Borrower submits to the jurisdiction of any court of
competent jurisdiction within the State of South Carolina. Borrower agrees that
any action concerning this Agreement, the Note or any other loan document,
whether initiated by Lender, Borrower or any other party, shall be tried only
in a court of competent jurisdiction within the State of South Carolina, and
Borrower waives all objections to venue. All matters arising hereunder shall be
determined in accordance with the law and practice of such South Carolina
court. Borrower further agrees to comply with all requirements necessary to
give such court in personam jurisdiction and agrees that service of process may
be accomplished by, in addition to any other lawful means, certified mail,
return receipt requested, to the Borrower at Borrower's address set forth above
or any new address of which Lender has been notified by Borrower in writing.

         9.14     BORROWER AND LENDER WAIVE, TO THE FULL EXTENT PERMITTED BY
LAW, THE RIGHT TO A JURY TRIAL IN ANY LITIGATION CONCERNING THIS AGREEMENT AND
IN ANY LITIGATION CONCERNING ANY DEFENSE, CLAIM, COUNTERCLAIM, CLAIM OF SET-OFF
OR SIMILAR CLAIM OF ANY NATURE THAT BORROWER MAY ASSERT AGAINST LENDER.

                        [SIGNATURES APPEAR ON NEXT PAGE]

                                     -10-
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have executed this Loan
Agreement as of the date first above written.

                                    INDUS UTILITY SYSTEMS, INC.          (SEAL)

                                    By: /s/ Jeffrey A. Babka
                                       ----------------------------------------
                                       Its: Vice President and Treasurer
                                           ------------------------------------

                                    NEW SMALL RESEARCH, LLC              (SEAL)

                                    By: /s/ Charles I. Small
                                       ----------------------------------------
                                       Its: Authorized Member
                                           ------------------------------------

                                     -11-
<PAGE>
                                   EXHIBIT A

                                LAND DESCRIPTION

PARCEL A

All that certain piece, parcel, lot or tract of land with improvements thereon,
situate, lying and being near Columbia in the County of Richland, State of
South Carolina, and being more specifically shown and delineated as PARCEL "B,"
containing 4.774 acres, more or less, on a plat prepared for SCT Utility
Systems, Inc. by Power Engineering Company, Inc., dated June 13, 1997, and
recorded on June 26, 1997 in the Office of the Register of Deeds for Richland
County in Plat Book 56 at Page 9200. Reference to said plat is made for a
further and more accurate description.

This being the same property heretofore conveyed to SCT Utility Systems, Inc.,
a Delaware corporation, by deed of the South Carolina Research Authority, dated
July 7, 1998 and recorded on July 15, 1998 in the Office of the Register of
Deeds for Richland County in Deed Book RO123 at Page 0586.

TMS No.:  17200-02-23

PARCEL B

INCLUDING all that certain piece, parcel, lot or tract of land with
improvements thereon, situate, lying and being near Columbia in the County of
Richland, State of South Carolina, and being more specifically shown and
delineated as 9.003 acres, more or less, on a plat prepared for SCT Utility
Systems of Columbia by Power Engineering Company, Inc. dated November 19, 1998
and recorded in Plat Book 280 at Page 2381 in the Office of the Register of
Deeds for Richland County.

This being the same property heretofore conveyed to SCT Utility Systems, Inc.
by deed of the South Carolina Research Authority dated February 16, 1999 and
recorded on February 18, 1999 in Book 280 at Page 2382 in the Office of the
Register of Deeds for Richland County.

TMS No.:  17200-02-24

PARCEL C

All that certain piece, parcel, lot or tract of land with improvements thereon,
situate, lying and being near Columbia in the County of Richland, State of
South Carolina, and being more specifically shown and delineated as Parcel "A",
containing 1.284 acres, more or less, on a plat prepared for SCT Utility
Systems, Inc. by Power Engineering Company, Inc., dated June 13, 1997, to be
recorded, which plat is specifically incorporated into this description, and
containing such boundaries and measurements as shown on said plat, be all
measurements a little more or less.

This conveyance is subject to easements and restrictions of record, including
those shown on recorded plats and those which an inspection of the Property
would disclose.

This being a portion of the property heretofore conveyed to Grantor herein by
deed of the State of South Carolina dated October 20, 1983, recorded October
25, 1983 in Deed Book D-667, page 979; and by Corrected Deed dated February 8,
1984, recorded March 19, 1984 in Deed Book D-686, page 291.

TMS No. Portion of 17200-02-22

PARCEL D

All that certain piece, parcel or tract of land, situate, lying and being in
the County of Richland, State of South Carolina, being designated as Lot 4,
containing 7.004 acres, more or less, on a plat prepared for

                                     -12-
<PAGE>
Digital Systems, Inc., by B. P. Barber & Associates, Inc., dated June 2, 1988,
to be recorded, and more recent plat prepared for SCT Utility Systems of
Columbia by Power Engineering Company, Inc., dated July 6, 1994, to be
recorded, said plats being incorporated herein by reference as part of the
description of said property.

This conveyance includes and is subject to any and all easements, covenants,
conditions and restrictions of record affecting the subject property.

The above described property was heretofore conveyed to PSC Services, Inc., a
Delaware corporation, by Digital Systems, Inc., a Delaware corporation, by deed
dated February 27, 1991, and duly recorded in the Office of the RMC for
Richland County, S.C. in Deed Book D-1024 at Page 603 on March 22, 1991.

TMS Number:  17200-02-18

                                     -13-

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