| Notes |
The first loan agreement executed by MCOP in August 1987 called for MCOP to loan $15 million to Federated over a five-year term at 12% annual interest (the "First Term Loan"). That loan agreement also provided for a separate $5 million, five-year revolving credit line at the prime rate plus 1% (the "Line of Credit"). As further consideration for these loans, MCOP was granted a 25% interest in the net profits realized from Mirada lot sales, plus the right to participate in any further development of the Mirada that Federated decided to undertake |