Document:

Revolving Credit Note

 Exhibit 10.2 
 RENEWAL REVOLVING CREDIT NOTE 
 (the “Note”) 

 

			
	$5,000,000.00	  	Effective Date: October 14, 2011

  
  

FOR VALUE RECEIVED, the undersigned borrowers, DEER VALLEY FINANCIAL CORP., a Florida corporation, DEER VALLEY CORPORATION,
a Florida corporation and DEER VALLEY HOMEBUILDERS, INC., an Alabama corporation, jointly and severally (collectively the “Borrower”) promise to pay to the order of FIFTH THIRD BANK, an Ohio banking corporation (the
“Lender”), at 201 E. Kennedy Blvd., Suite 1800, Tampa, Florida 33602, or at such other place as Lender may from time to time designate in writing, with payment due as provided herein and in the Revolving Credit Loan and Security Agreement
dated October 14, 2009, as amended by Amendment dated April 7, 2010, and as amended of even date herewith (collectively the “Credit Agreement”), the principal sum not to exceed $5,000,000.00, or so much thereof as has been
disbursed for advances hereunder. This Note partially renews and supersedes in its entirety that certain Revolving Credit Note dated effective October 14, 2009, in the principal amount of $7,500,000.00. 

The Interest Rate shall be a variable rate at 400 basis points (4.00%) above the One-Month “LIBOR-Index Rate”, and shall
be adjusted every month on each Interest Rate Determination Date with all such interest rate terms defined as set forth in “ADDENDUM A” attached hereto and made a part hereof. 

Principal and interest shall be due and payable as follows: 
 (a) To the extent accrued, interest only, as stated above, shall be payable monthly commencing November 1, 2011, and continuing on the same day of each month thereafter on the principal outstanding
from time to time until the loan maturity date at which time the outstanding indebtedness, whether principal, accrued interest or otherwise, shall be due and payable in full. 
 (b) The principal amount evidenced hereby may be borrowed (and to the extent any principal amount advanced hereunder is repaid by Borrower, such sum may be borrowed again) until this Note is terminated.
At no time, however, shall the principal balance outstanding hereunder exceed $5,000,000.00. 
 If any payment on this Note
becomes due and payable on a Saturday, Sunday or legal holiday under the laws of the State of Florida, the maturity thereof shall be extended to the next succeeding business day and interest thereon shall be payable at contract rate of interest
during such extension. 
 As provided in the Credit Agreement, the Note is to be utilized by Borrower on a revolving credit
basis to provide display model financing for dealers. 

  

					
	Initials:
                          	  		  	

 This Loan facility matures on October 14, 2013. If any letters of credit supported by
this Loan facility are redeemed, the amount so redeemed is due on demand in accordance with the Credit Agreement. Upon the occurrence of any one or more of the Events of Default specified in the Credit Agreement or in any other document or
instrument delivered in connection therewith and following notice and the expiration of all cure periods (if any), all amounts then remaining unpaid on this Note may be declared to be immediately due and payable. Advances under this Note shall be
requested by Borrower and evidenced as a debit to Borrower’s loan account. 
 Borrower may repay all or part of the
principal balance at any time without penalty. Such prepayment shall be accompanied by payment of any unpaid interest accrued to the time of such prepayment. All payments made hereunder shall at Lender’s option first be applied to late charges,
then to accrued interest, then to principal. Permitted partial prepayments shall not affect or vary the duty of Borrower to pay all obligations when due, and they shall not affect or impair the right of Lender to pursue all remedies available to it
hereunder, under the security instruments securing this indebtedness, or under any other loan documents or guaranty executed in connection herewith. 
 In the event that any payment of principal or interest is not made within ten (10) days after the date when due hereunder, it is hereby agreed that the Lender shall have the option of collecting five
percent (5%) of the amount of each such delinquent payment; provided, however, such late fee shall not apply to the lump sum payment of the principal on the Maturity Date or the lump sum payment of principal upon acceleration. Said late charge
and/or interest shall be immediately due and payable in full on demand by the Lender. 
 The “Default Interest Rate”
shall be five percent (5%) per annum above the contract interest rate set forth above, but not exceeding 18% per annum. Upon default, the Default Interest Rate shall commence upon written notice to Borrower. Upon default, the Default
Interest Rate shall commence upon written notice to Borrower. Upon a failure by Borrower to repay principal upon demand by Lender made not less than ten (10) days after the date due hereunder, Lender may declare the entire principal and
interest then remaining unpaid to be immediately due and payable without further notice or demand, and the entire unpaid principal balance shall bear interest at the “Default Interest Rate”. In addition to the rights described in this
paragraph, Lender shall have the right to exercise all other rights or remedies provided by law or at equity and shall specifically have the right to recover all damages resulting from such default including, without limitation, the right to recover
the payment of all amounts owing to Lender. Exercise of any of these options shall be without notice to Borrower, notice of such exercise being hereby expressly waived. 
 The terms and provisions of this Note are to be governed by and construed under the laws of the State of Florida and of the United States of America, and the rules and regulations promulgated under the
authority thereof. It is the intent of this Note that such laws shall be interpreted in such a manner that after default the maximum rate of interest charged under this Note not exceed the rate allowed to be contracted for by applicable law as
changed from time to time which is applicable to this Note (hereinafter called the “Maximum Rate”). 

  

					
	Initials:
                          	  	2            	  	

 In no event shall Lender have the right to charge or collect, nor shall Borrower be required
or obligated to pay, interest or payments in the nature of interest, which would result in interest being charged or collected at a rate in excess of the Maximum Rate. In the event that any payment which is interest or in the nature of interest is
made by Borrower or received by Lender which would result in the rate of interest being charged or collected by the Lender being in excess of the Maximum Rate, then the portion of any such payment which causes the rate of interest being charged or
collected by Lender exceed the Maximum Rate (hereinafter called the “excess sum”) shall be credited as a payment of principal. If Borrower notifies Lender in writing that Borrower elects to have such excess sum returned to Borrower, such
excess sum shall be returned to Borrower. In the event that any such overcharge is discovered after this Note has been paid in full, then the amount of such excess sum shall be returned to Borrower together with interest thereon from the date such
excess sum was paid or collected at the same rate as was due Lender during such period under the terms of this Note. All excess sums credited to principal shall be credited as of the date paid to Lender. 

Time is of the essence hereunder. In the event that this Note is collected by law or through attorneys at law, or under advice therefrom,
Borrower and any other person liable for payment hereof, to the extent of such liability, hereby agree to pay all costs of collection, including reasonable attorneys’ fees and costs (including charges for paralegals and others working under the
direction or supervision of Lender’s attorneys) and all sales or use taxes thereon, whether or not suit is brought, and whether incurred in connection with collection, trial, appeal, bankruptcy or other creditor’s proceedings or otherwise.

 Borrower authorizes Lender, from time to time, to debit any account that Borrower may have with Lender in the name of
Borrower, for any payment of principal or interest past due hereunder for the amount of such payment of principal or interest. Exercise of this right shall be optional with Lender and the provisions of this paragraph shall not be construed as
releasing Borrower from the obligation to make payments of principal or interest according to the terms hereof. Borrower shall have no right of setoff against the Lender under this Note or any instrument securing this Note. 

The remedies of Lender as provided herein shall be cumulative and concurrent, and may be pursued singularly, successively, or together,
at the sole discretion of Lender. No act of omission or commission of Lender, including specifically any failure to exercise any right, remedy or recourse, shall be deemed to be a waiver or release of the same, such waiver or release to be effected
only through a written document executed by Lender and then only to the extent specifically recited therein. A waiver or release with reference to any one event shall not be construed as continuing, as a bar to, or as a waiver of release of, any
subsequent right, remedy or recourse as to a subsequent event. 

  

					
	Initials:
                          	  	3            	  	

 Borrower, for itself and its successors and assigns, hereby: (a) expressly waives any
presentment, demand for payment, notice of dishonor, protest, notice of nonpayment or protest, all other forms of notice whatsoever, and diligence in collection; (b) agrees that Lender, in order to enforce payment of this Note against them
shall not be required first to institute any suit or to exhaust any of its remedies against any Borrower or any other person or party or to attempt to realize on the collateral for this Note. 

BORROWER AND ANY OTHER PERSON LIABLE FOR PAYMENT HEREOF, BY EXECUTING THIS NOTE OR ANY OTHER DOCUMENT CREATING SUCH LIABILITY, WAIVE
THEIR RIGHTS TO A TRIAL BY JURY IN ANY ACTION WHETHER ARISING IN CONTRACT OR TORT, BY STATUTE OR OTHERWISE, IN ANY WAY RELATED TO THIS NOTE. THIS PROVISION IS A MATERIAL INDUCEMENT FOR LENDER’S EXTENDING CREDIT TO BORROWER AND NO WAIVER OR
LIMITATION OF LENDER’S RIGHTS HEREUNDER SHALL BE EFFECTIVE UNLESS IN WRITING AND MANUALLY SIGNED ON LENDER’S BEHALF. 

Borrower acknowledges that the above paragraph has been expressly bargained for by Lender as part of the loan evidenced hereby and that,
but for Borrower’s agreement and the agreement of any other person liable for payment hereof, Lender would not have extended the loan for the term and with the interest rate provided herein. 

If more than one party shall execute this Note, the term “Borrower”, as used herein, shall mean all parties signing this Note
and each of them, who shall be jointly and severally obligated hereunder. In this Note, whenever the context so requires, the neuter gender includes the feminine and/or masculine, as the case may be, and the singular number includes the plural.

 IN WITNESS WHEREOF, Borrower has caused this Note to be executed in its name on the day and year first above written.

 THE UNDERSIGNED ACKNOWLEDGES THAT THE LOAN EVIDENCED HEREBY IS FOR COMMERCIAL PURPOSES ONLY AND NOT FOR PERSONAL, FAMILY OR
HOUSEHOLD PURPOSES. 
  

			
	“BORROWER”
	
	 DEER VALLEY FINANCIAL CORP.,
 a Florida corporation

		
	By:	 	 s/ Steve Lawler

		 	John Steven Lawler, as its
		 	Chief Financial Officer and Secretary
		
		 	 (CORPORATE SEAL)

  
 4 

 
			
	DEER VALLEY CORPORATION,
	a Florida corporation
		
	By:	 	 s/ Steve Lawler

		 	John Steven Lawler, as its
		 	Chief Financial Officer and Secretary
		
		 	 (CORPORATE SEAL)

	
	 DEER VALLEY HOMEBUILDERS, INC.,
 an Alabama corporation

		
	By:	 	 s/ Steve Lawler

		 	John Steven Lawler, as its
		 	Chief Financial Officer and Secretary
		
		 	 (CORPORATE SEAL)

 This instrument was made, executed and delivered outside the State of Florida and no Florida Documentary Stamp
Tax is due hereon in accordance with F.A.C. 12B-4.053(35) 

  
 5 

 Addendum A to Note 

LIBOR Index Rate 

SECTION 1 
 Definitions. As used
in this Addendum, the following terms shall have the meanings set forth below: 
 “Bank” shall mean Fifth Third Bank and its
successors and assigns. 
 “Borrower” shall collectively and individually refer to the maker of the attached note dated effective
October 14, 2011 (“Note”). The terms of this Addendum are hereby incorporated into the Note and in the event of any conflict between the terms of the Note and the terms of this Addendum, the terms of this Addendum shall control.

 “Business Day” shall mean, with respect to Interest Periods applicable to the LIBOR Rate, a day on which the Bank is open for
business and on which dealings in U.S. dollar deposits are carried on in the London Inter-Bank Market. 
 “Interest Period” shall mean
a period of one (1) month, provided that (i) the initial Interest Period may be less than one month, depending on the initial funding date and (ii) no Interest Period shall extend beyond the maturity date of the Note. 

“Interest Rate Determination Date” shall mean the date the Note is initially funded and the first Business Day of each calendar month
thereafter. 
 “LIBOR Rate” shall mean that rate per annum effective on any Interest Rate Determination Date which is equal to the
quotient of: 
 (i) the rate per annum equal to the offered rate for deposits in U.S. dollars for a one (1) month period, which rate
appears on that page of Bloomberg reporting service, or such similar service as determined by the Bank, that displays British Bankers’ Association interest settlement rates for deposits in U.S. Dollars, as of 11:00 A.M. (London, England time)
two (2) Business Days prior to the Interest Rate Determination Date; provided, that if no such offered rate appears on such page, the rate used for such Interest Period will be the per annum rate of interest determined by the Bank to be
the rate at which U.S. dollar deposits for the Interest Period, are offered to the Bank in the London Inter-Bank Market as of 11:00 A.M. (London, England time), on the day which is two (2) Business Days prior to the Interest Rate Determination
Date, divided by 
 (ii) a percentage equal to 1.00 minus the maximum reserve percentages (including any emergency, supplemental, special
or other marginal reserves) expressed as a decimal (rounded upward to the next 1/100th of 1%) in effect on any day to which the Bank is subject with respect to any LIBOR loan pursuant to regulations issued by the Board of Governors of the Federal
Reserve System with respect to eurocurrency funding (currently referred to as “eurocurrency liabilities” under Regulation D). This percentage will be adjusted automatically on and as of the effective date of any change in any reserve
percentage. 

  
 6 

 “Prime Rate” shall mean the publicly announced prime lending rate of the Bank from time to time in
effect, which rate may not be the lowest or best lending rate made available by the Bank or, if the Note is governed by Subtitle 10 of Title 12 of the Commercial Law Article of the Annotated Code of Maryland, “Prime Rate” shall mean the
Wall Street Journal Prime Rate, which is the Prime Rate published in the “Money Rates” section of the Wall Street Journal from time to time. 
 SECTION 2 
 Interest. The Borrower shall pay interest upon the unpaid principal
balance of the Note at the LIBOR Rate plus the margin provided in the Note (which principal balance shall not include the Letter of Credit Obligations until such Letter of Credit Obligations are drawn upon and honored by the Bank, and remain
unreimbursed by Borrower). Interest shall be due and payable as provided in the Note and shall be calculated on the basis of a 360 day year and the actual number of days elapsed. The interest rate shall remain fixed during each month based upon the
interest rate established pursuant to this Addendum on the applicable Interest Rate Determination Date. 
 SECTION 3 

Additional Costs. In the event that any applicable law or regulation or the interpretation or administration thereof by any
governmental authority charged with the interpretation or administration thereof (whether or not having the force of law) (i) shall change the basis of taxation of payments to the Bank of any amounts payable by the Borrower hereunder
(other than taxes imposed on the overall net income of the Bank) or (ii) shall impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by
the Bank, or (iii) shall impose any other condition with respect to the Note, and the result of any of the foregoing is to increase the cost to the Bank of making or maintaining the Note or to reduce any amount receivable by the Bank hereunder,
and the Bank determines that such increased costs or reduction in amount receivable was attributable to the LIBOR Rate basis used to establish the interest rate hereunder, then the Borrower shall from time to time, upon demand by the Bank, pay to
the Bank additional amounts sufficient to compensate the Bank for such increased costs (the “Additional Costs””). A detailed statement as to the amount of such Additional Costs, prepared in good faith and submitted to the Borrower by
the Bank, shall be conclusive and binding in the absence of manifest error. 
 SECTION 4 

Unavailability Of Dollar Deposits. If the Bank determines in its sole discretion at any time (the “Determination Date”) that it can no
longer make, fund or maintain LIBOR based loans for any reason, including without limitation illegality, or the LIBOR Rate cannot be ascertained or does not accurately reflect the Bank’s cost of funds, or the Bank would be subject to Additional
Costs that cannot be recovered from the Borrower, then the Bank will notify the Borrower and thereafter will have no obligation to make, fund or maintain LIBOR based loans. Upon such Determination Date the Note will be converted to a variable rate
loan based upon the Prime Rate. Thereafter the interest rate on the Note shall adjust simultaneously with any fluctuation in the Prime Rate. 

  
 7 

 
			
	“BORROWER”
	
	DEER VALLEY FINANCIAL CORP.,
	a Florida corporation
		
	By:	 	 s/ Steve Lawler

		 	John Steven Lawler, as its
		 	Chief Financial Officer and Secretary
		
		 	 (CORPORATE SEAL)

	
	DEER VALLEY CORPORATION,
	a Florida corporation
		
	By:	 	 s/ Steve Lawler

		 	John Steven Lawler, as its
		 	Chief Financial Officer and Secretary
		
		 	 (CORPORATE SEAL)

	
	DEER VALLEY HOMEBUILDERS, INC.,
	a Florida corporation
		
	By:	 	 s/ Steve Lawler

		 	John Steven Lawler, as its
		 	Chief Financial Officer and Secretary
		
		 	 (CORPORATE SEAL)

  
 8Second Amendment to Revolving Credit Loan and Security Agreement

 Exhibit 10.3 
 SECOND AMENDMENT TO REVOLVING CREDIT LOAN AND SECURITY 
 AGREEMENT

 $3,000,000 REVOLVING CREDIT LOAN 

This Second Amendment to Revolving Credit Loan and Security Agreement (the “Second Amendment”) is entered
into effective the 14th day of October, 2011, by and among
FIFTH THIRD BANK, an Ohio banking corporation, having a mailing address of 201 East Kennedy Boulevard, Suite 1800, Tampa, Florida 33602 (the “Bank”), DEER VALLEY FINANCIAL CORP., a Florida corporation (“DVFC”),
having its principal place of business at 205 Carriage Street, Guin, Alabama 35563, DEER VALLEY CORPORATION, a Florida corporation (“DVC”), having a mailing address of 3111 West Dr. MLK Boulevard, Suite 100, Tampa, Florida
33607, and DEER VALLEY HOMEBUILDERS, INC., an Alabama corporation authorized to do business in the State of Florida (“DVHI”), having its principal place of business at 205 Carriage Street, Guin, Alabama 35563, jointly and severally
(collectively the “Borrowers”), and amends and modifies that certain Revolving Credit Loan and Security Agreement dated October 14, 2009, as amended by Amendment dated April 7, 2010 (collectively the “Loan Agreement”),
as follows: 
 1. Terms. All of the capitalized terms in this Second Amendment shall have the meanings as defined
in the Loan Agreement. 
 2. Loan Renewal. The Bank has reduced and renewed the Loan in the amount of
$3,000,000.00 (the “Renewal Loan”) as evidenced by a Renewal Revolving Credit Note dated effective October 14, 2011 (the “Renewal Note”). 
 3. Loan and Note. The term “Loan” under the Loan Agreement is hereby modified to include the Renewal Loan, and the term “Note” under the Loan Agreement is hereby modified
to reference the Renewal Note. 
 4. Definitions. In Section 1.2, the definition of “Eligible Accounts
Receivable” is deleted in its entirety and the following definition of Eligible Accounts Receivable is hereby substituted in its place and stead: 
 “Eligible Accounts Receivable” shall mean, at any date of determination thereof, all Accounts Receivable of DVHI and DVFC: (a) which are bona fide, valid and legally enforceable obligations
of the account debtors in respect thereof, which are unconditionally owing by such account debtors, and which do not represent sales on consignment, sales on return or other similar understandings; (b) which, except for the security interest in
the Accounts Receivable granted to the Bank, are solely owned by the Borrowers, free and clear of any and all mortgages, liens, security interests, encumbrances, claims or rights of others, except sellers’ rights (if any) to reclaim goods under
Uniform Commercial Code Section 2-702; (c) which are not the subject of any defense, offset, counterclaim or claim; (d) as to which no more than 90 days (or are 30 days past due) shall have elapsed from the original date of the
relevant invoice; (e) with respect to a single account debtor (other than an account debtor that is a governmental agency), whose total obligations owing exceeds 20% of all Eligible Accounts Receivable shall be limited to 20% of Eligible
Accounts Receivable; (f) as to which the account debtors are (1) solvent, going concerns unaffiliated with any of the Borrowers, and (2) reasonably satisfactory to the Bank from a credit standpoint (the Bank’s satisfaction may be
assumed unless the Bank shall at any time advise the Borrowers to the contrary). 

 5. Borrowing Base and Borrowing Base Certificate. The Borrowing Base
definition in the Loan Agreement and the Borrowing Base Certificate are hereby modified to provide that total advances under the Loan shall not exceed $3,000,000.00, or such lesser amount as permitted by the Borrowing Base, and the Borrowing Base
Certificate is revised and restated as set forth in Exhibit “A” attached hereto. 
 6. Financial
Statements and Reports. Section 6.4 is deleted in its entirety and the following Section 6.4 is hereby substituted in its place and stead: 
 “6.4 Financial Statements and Reports. Each of the Borrowers shall maintain a system of accounting established and administered in accordance with Generally Accepted Accounting
Principles. Borrowers, as appropriate, will furnish to the Bank: 
 (a) Within one hundred twenty (120) days after the end
of each fiscal year, each of the Borrowers shall deliver to the Bank, consolidated, audited balance sheets and statements of income, retained earnings and changes in financial position for such year, an audited inventory of DVHI, all of which shall
be accompanied by supporting schedules and the unqualified opinion of independent certified public accountants of recognized standing reasonably acceptable to the Bank, and upon filing, all filings required in accordance with SEC regulations, if
any. 
 (b) Within forty-five (45) days after the end of each fiscal quarter-end, deliver to the Bank the following
financial statements certified by the President or Vice President of each of the Borrowers as accurate to the best of their knowledge upon due inquiry and investigation: (1) a Compliance Certificate executed by an authorized officer for each of
the Borrowers certifying that to the best of their knowledge, no Event of Default hereunder, nor any event which with notice or lapse of time, or both, would constitute such an Event of Default, has occurred or, if such Event of Default or event has
occurred, specifying the nature and extent thereof; and (2) internally prepared, consolidated, interim financial statements for each of the Borrowers; in such form and context as Bank may require. 

(c) Within fifteen (15) days of the end of each month, deliver to the Bank the following financial statements certified by the
President or Vice President for each of the Borrowers as accurate to the best of their knowledge upon due inquiry and investigation: (1) a Borrowing Base Certificate for DVHI; (2) a Consolidated Borrowing Base Certificate for DVHI and
DVFC; and (3) an accounts receivable aging report by customer reflecting the past due status of each invoice for DVHI; all in such form and context as Bank may require. 

  
 2 

 (d) Promptly, from time to time, such other information regarding the operation, business,
affairs and financial condition of any of the Borrowers as the Bank may reasonably request.” 
 7. Financial
Covenant. The Financial Covenant set forth in Section 6.10 (a) of the Loan Agreement is deleted in its entirety and the following Section 6.10 (b) is hereby substituted in its place and stead: 

“(a) Minimum Fixed Charge Coverage Ratio. Maintain a global Minimum Fixed Charge Coverage Ratio of not less than 1.20
to 1.00, measured on a rolling 4-quarter basis, commencing December 31, 2011. As used herein “Minimum Fixed Charge Coverage Ratio” shall be defined as the ratio of: (a) Borrowers EBITDA plus rent and operating lease payments,
less cash taxes paid, distributions, dividends and capital expenditures (other than Capital Expenditures financed with the proceeds of purchase money Indebtedness or Capital Leases to the extent permitted hereunder) and other extraordinary income
for the twelve month period then ending, to: (b) the consolidated sum of: (i) Borrowers interest expense; and (ii) all principal payments with respect to Indebtedness (but excluding principal that is payable at maturity), including
capital leases and subordinated debt, that were paid or were due and payable by Borrowers during the period, plus rent and operating lease expense incurred in the same such period.” 

8. Notices. Section 10 of the Loan Agreement for Notices is amended to provide that all notices to the Bank shall be
sent to: 
  

			
	If to the Bank:	  	FIFTH THIRD BANK
		  	Attention: Julio C. Ramirez, Jr., Senior Vice President
		  	201 East Kennedy Blvd., Suite 1800
		  	Tampa, Florida 33602

 9. Consent and Waiver. Borrowers hereby consent to the foregoing and agrees that the
execution of this Second Amendment shall in no manner or way whatsoever impair or otherwise adversely affect Borrowers’ liability to the Lender under the Loan Documents or any other instrument set forth in the Recitals or herein, all as
modified by this Second Amendment. 
 10. Cross Document Default. Any default under the terms and conditions of
this Second Amendment or of any instrument set forth herein or contemplated by this Second Amendment shall be and is a default under every other instrument set forth herein or contemplated by this Second Amendment. 

11. Ratification. Except as modified by this Second Amendment, Borrowers hereby ratify and confirm the continued validity
and viability of all terms, conditions and obligations set forth in the Loan Documents and all other instruments as modified by this Second Amendment. 

  
 3 

 12. Severability. Whenever possible, each provision of this Second Amendment
shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision hereof shall be prohibited or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or
invalidity only, without invalidating the remainder of such provision or of the remaining provisions of this Second Amendment. 

13. Florida Contract. This Second Amendment shall be deemed a Florida contract and shall be construed according to the laws
of the State of Florida, regardless of whether this Second Amendment is executed by certain of the parties hereto in other states. 
 14. Time. Time is of the essence of this Second Amendment. 
 15.
Binding Effect and Modification. This Second Amendment shall bind the successors and assigns to the parties hereto and constitutes the entire understanding of the parties, which may not be modified except in writing, executed by all
parties hereto in the same form as this Second Amendment. 
 16. Other Terms. Except as specifically modified and
amended by the terms set forth in this Second Amendment, all of the other terms, covenants, obligations and conditions of the Loan Agreement shall remain in full force and effect. 

Entered into as of the day and year first above written. 

 

							
	WITNESSES:	 		 	BORROWERS:
			
		 		 	DEER VALLEY HOMEBUILDERS, INC.,
an Alabama corporation
				
	  
	 		 	By:	 	 s/ Steve Lawler

	Signature of Witness	 		 		 	John Steven Lawler, as its Chief
	  
	 		 		 	Chief Financial Officer and Secretary
	Print or type name of Witness	 		 		 	
	  
	 		 		 	 (CORPORATE SEAL)

	Signature of Witness	 		 		 	
	  
	 		 		 	
	Print or type name of Witness	 		 		 	

 [SIGNATURES CONTINUED ON FOLLOWING PAGE] 

  
 4 

							
		 		 	DEER VALLEY CORPORATION, a Florida
corporation
				
	  
	 		 	By:	 	 s/ Steve Lawler

	Signature of Witness	 		 		 	John Steven Lawler, as its Chief Financial
	  
	 		 		 	Officer and Secretary
	Print or type name of Witness	 		 		 	
	  
	 		 		 	 (CORPORATE SEAL)

	Signature of Witness	 		 		 	
	  
	 		 		 	
	Print or type name of Witness	 		 		 	
			
		 		 	DEER VALLEY FINANCIAL CORP., a Florida
corporation
				
	  
	 		 	By:	 	 s/ Steve Lawler

	Signature of Witness	 		 		 	John Steven Lawler, as its Chief Financial
	  
	 		 		 	Officer and Secretary
	Print or type name of Witness	 		 		 	
	  
	 		 		 	 (CORPORATE SEAL)

	Signature of Witness	 		 		 	
	  
	 		 		 	
	Print or type name of Witness	 		 		 	

 STATE OF ALABAMA 

COUNTY OF
                             
 The foregoing instrument was acknowledged before me this          day of October, 2011, by John Steven Lawler, as Chief Financial Officer and Secretary of DEER
VALLEY HOMEBUILDERS, INC., an Alabama corporation, on behalf of the corporation. 
  

									
	          
	 	Personally known	 	  

	  
	 	Driver’s License (St:        )	 	Notary Public
	  
	 	Other Identification Produced	 	
		 		 	  
	 		 	  

		 		 	  
	 		 	Print or type name of Notary
					
		 		 		 		 	 (SEAL)

  
 5 

 STATE OF
                             
 COUNTY OF                          

The foregoing instrument was acknowledged before me this          day of October, 2011, by John
Steven Lawler, as Chief Financial Officer and Secretary of DEER VALLEY CORPORATION, a Florida corporation, on behalf of the corporation. 
  

									
	          
	 	Personally known	 	  

	  
	 	Driver’s License (St:        )	 	Notary Public
	  
	 	Other Identification Produced	 	
		 		 	  
	 		 	  

		 		 	  
	 		 	Print or type name of Notary
					
		 		 		 		 	 (SEAL)

 STATE OF
                             
 COUNTY OF                          

The foregoing instrument was acknowledged before me this          day of October 2011, by John
Steven Lawler, as Chief Financial Officer and Secretary of DEER VALLEY FINANCIAL CORP., a Florida corporation, a Florida corporation, on behalf of the corporation. 
  

									
	          
	 	Personally known	 	  

	  
	 	Driver’s License (St:        )	 	Notary Public
	  
	 	Other Identification Produced	 	
		 		 	  
	 		 	  

		 		 	  
	 		 	Print or type name of Notary
					
		 		 		 		 	 (SEAL)

  

							
		 		 	BANK:
			
		 		 	 FIFTH THIRD BANK,

an Ohio banking corporation

				
	  
	 		 	By:	 	 s/ Julio C. Ramirez, Jr.

	Signature of Witness	 		 		 	Julio C. Ramirez, Jr.,
	  
	 		 		 	as its Senior Vice President
	Print or type name of Witness	 		 		 	
	  
	 		 		 	
	Signature of Witness	 		 		 	 (CORPORATE SEAL)

	  
	 		 		 	
	Print or type name of Witness	 		 		 	

  
 6 

 STATE OF FLORIDA 
 COUNTY OF                              

The foregoing instrument was acknowledged before me this          day of October, 2011, by Julio
C. Ramirez, Jr., as Senior Vice President of FIFTH THIRD BANK, an Ohio banking corporation, on behalf of the Bank. 
  

									
	          
	 	Personally known	 	  

	  
	 	Florida Driver’s License	 	Notary Public
	  
	 	Other Identification Produced	 	
		 		 	  
	 		 	  

		 		 	  
	 		 	Print or type name of Notary
					
		 		 		 		 	 (SEAL)

 ATTACHMENTS: 
 Exhibit “A” - Revised Borrowing Base Certificate 

  
 7 

 EXHIBIT “A” 

BORROWING BASE CERTIFICATE 
 $3,000,000.00 RLOC 
 FIFTH THIRD BANK 

201 East Kennedy Blvd., Suite 1800 
 Tampa,
Florida 33602 
 Pursuant to the Loan and Security Agreement as amended, Borrower hereby certifies, as of the above date, the following:

  

											
				
	(A)	  	 Current Value of DVHI Inventory
	  				  	$	                    	  
		  		  				  	  
	  
	 
				
	(B)	  	 Less: Ineligibles
	  				  	$	 	  
		  		  				  	  
	  
	 
				
	(C)	  	 Net Amount of DVHI Inventory (A) Less (B)
	  				  	$	 	  
		  		  				  	  
	  
	 
				
	(D)	  	 50% of (C) Not To Exceed $1,500,000.00
	  				  	$	 	  
		  		  				  	  
	  
	 
				
	(E)	  	 Aggregate Amount of DVHI and DVFC Accounts Receivable
	  				  	$	 	  
		  		  				  	  
	  
	 
				
	(F)	  	 Less: Ineligibles
	  				  			
				
		  	 Accounts over 90 days (30 days past due)
	  	$	                    	  	  			
		  		  	  
	  
	 	  			
		  	 Accounts with Account Debtors (other than government agencies) having in excess of 20% of total Eligible A/R (only enter
amounts over 20% of total A/R threshold)
	  	$	 	  	  			
		  		  	  
	  
	 	  			
		  	 Other (if applicable)
	  	$	 	  	  			
		  		  	  
	  
	 	  			
		  	 Total Ineligible
	  	$	 	  	  			
		  		  	  
	  
	 	  			
				
	(G)	  	 Net Amount of Eligible Accounts Receivable (E) Less (F)
	  				  	$	 	  
		  		  				  	  
	  
	 
				
	(H)	  	 80% of (G)
	  				  	$	 	  
		  		  				  	  
	  
	 
				
	(I)	  	 CURRENT BORROWING BASE:
	  				  	$	 	  
		  		  				  	  
	  
	 
		  	 (D) Plus (H)
	  				  			
				
	(J)	  	 The aggregate unpaid principal owed to Bank is:
	  				  	$	 	  
		  		  				  	  
	  
	 
		  	 Not to exceed maximum loan limit or (I) above
	  				  			
				
	(K)	  	 Availability (I) Less (J), Less all issued and outstanding Letters of Credit:
	  				  	$	 	  
		  		  				  	  
	  
	 
		  	 Not to exceed the maximum loan limit of $3,000,000.00
	  				  			

  
 8 

 The undersigned hereby certifies, represents, and warrants to FIFTH THIRD BANK (the “Bank”) as
follows: 
 1. All the representations and warranties contained in the Loan and Security Agreement or in any other related loan document are
true and correct on the date hereof. 
 2. No event of default has occurred, or would result from the advance made in connection herewith, that
constitutes an Event of Default under the Loan and Security Agreement or any other related document. 
 3. The description of Eligible Inventory
and Eligible Accounts and the values assigned thereto are true and correct in all material respects (see attached inventory declaration and accounts receivable aging). DVHI is legal owner of the inventory and the accounts receivable as identified
above. We further certify that the inventory is in good condition and that storage conditions are safe and satisfactory for this type of inventory. 
 4. The aggregate unpaid principal balance of the Loan does not exceed the lesser of the $3,000,000.00 (after taking into account issued and outstanding Letters of Credit) Commitment or Borrowing Base.

 This shall also certify that, for the month ending
                    , 20    , the Borrower was in compliance with the following covenants contained in the Loan and
Security Agreement between Bank and Borrower dated                     , 2009. 

 

							
	  	 	 COVENANT
	  	ACTUAL	  	COMPLIANCE
				
	 1.      
	 	Minimum Fixed Charge Coverage Ratio of not less than 1.20 to 1.00	  		  	
		 		  	  
	  	  

 “Minimum Fixed Charge Coverage Ratio” is defined as Borrowers EBITDA plus rent and operating
lease payments, less cash taxes paid, distributions, dividends and capital expenditures (other than Capital Expenditures financed with the proceeds of purchase money Indebtedness or Capital Leases to the extent permitted hereunder) and other
extraordinary income for the twelve month period then ending, to: (b) the consolidated sum of: (i) Borrowers interest expense; and, (ii) all principal payments with respect to Indebtedness, including capital leases and subordinated
debt, that were paid or were due and payable by Borrowers during the period, plus rent and operating lease expense incurred in the same such period. 
  

			000000		000000		000000
	 2.      
	 	 Maintain a Debt to Tangible Net Worth Ratio of Not More than 3.00 to 1.00
	  		  	
		 		  	  
	  	  

  
 9 

 “Debt to Tangible Net Worth Ratio” is defined as (1) (A) Total
Liabilities of Borrower, minus (B) Subordinated Debt, divided by (2) (A) Net Worth, plus (B) Subordinated Debt, plus (C) Intangibles, minus (D) Related Party Receivables. 

 

							
	 3.      
	 	Maintained minimum, unencumbered Liquidity of $2,500,000.	  		  	
		 		  	  
	  	  

  

									
	By:	 	  
	 		 	By:	 	  

					
	Its:	 	  
	 		 	Its:	 	  

					
	Date:	 	                            ,
20    	 		 	Date:	 	                            ,
20    

  
 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}]]