YOU VE BEEN HIRED AS A GENERAL CONTRACTOR

CONSTRUCTION LOAN PROCEDURES 1-800-589-8850 WWW.FIRSTFEDLORAIN.COM YOU VE BEEN HIRED AS A GENERAL CONTRACTOR

FIRST FEDERAL SAVINGS AND LOAN ASSOCIATION OF LORAIN YOUR COMMUNITY BANK SINCE 1921 Toll Free 1-800-589-8850 3721 Oberlin Avenue, Lorain (440) 282-6188 2233 E. 42nd St., Lorain (440) 277-5809 1180 Park Ave., Amherst (440) 984-4009 36690 Detroit Rd., Avon (440) 934-3340 427 Main St., Huron (419) 433-2437 207 West Washington Row, Sandusky (419) 626-5576 Member FDIC 1840 E. Perry St., Port Clinton (419) 734-5568

Table of Contents Applications Procedures.Page 2 Appraisal Requirements Builder Approval Construction Procedures.Page 3 Exhibits Inspections Pay-Out Orders Disbursements Draw Schedule Final Affidavit A B C D E F G Builder Reference Sheet Customer Reference Letter Supplier Reference Letter Banking Reference Letter Inspection Card Draw Schedule Pay-Out Order 1 Revised: 03/01/99

We have been informed by our loan applicant,, that you are under contract with them to build a home at. At this time we would like to acquaint you with some of our construction loan policies that will concern you. Or if you have dealt with us in the past, reacquaint you with some of the old policies and bring you up to date with some of our new. 1. Requirements for Appraisals These items need to be submitted: A signed and dated contract with all concerned parties A legal description of the property, if available A complete and accurate set of prints A complete list of specifications/description of Materials A map detailing the exact location of the lot, including the general area (crossroads, etc.) and a map of the subdivision, if applicable. Many of these items you may have supplied to the customer already, but if not they may be contacting you for them. If the appraisal firm has any questions regarding any aspect of the appraisal request, either from the prints or specifications, they may need to contact you, so please supply us with a phone number. 2. Builder Approval If you have worked through First Federal Savings of Lorain as a hired general contractor in the past, you are already an Approved Builder. If you have not worked through us, or have not worked though us for a long time, we will need to have you go through our approval process before we can process the above named customers application completely. As part of the approval process you will need to complete a Builder Reference Sheet (Exhibit A). This sheet requires names, addressed and phone numbers of past customers that we can contact, suppliers you use and your banking institutions which we will then contact for references (see Exhibits B, C & D). This form also requires your signature at the bottom, which authorizes us to run a credit report on you personally. We also require copies of financial statements and/or federal tax returns, both personal and corporate if applicable, for the previous three (3) years. 2 Revised: 03/01/99

CONSTRUCTION PROCEDURES The Loan Servicing Department is in our main office, 3721 Oberlin Avenue, Lorain. Department hours are Monday-Friday 9-5. Call our construction loan clerk at (440) 282-6072 or 1-800-589-8850. 1. Inspections Call Monday by 5:00 p.m. to schedule an inspection or by 9:30 a.m. on Tuesday if Monday is a holiday. You or the customer may call. Inspections are done Tuesdays and Wednesdays, depending upon the location of the property. Tell us what to inspect, and what draw you are on. Lots must be identified. We will provide the customer with an identification sign to be posted on the lot within 6 to 10 feet of the road. If we cannot locate the lot, the inspection will not be done. Disbursements We will pay draws only after we verify, through the on-site inspection, that what we are paying for is attached to the real estate. Draws will be paid in accordance with your previously approved draw schedule. Pay-Out Orders A sample copy of our Pay-Out Order is included (Exhibit G). We will prepare this form and have it signed by the customer prior to any checks being made available to you. We inspect it for completeness of work, not quality. We do, however, reserve the right to question workmanship and materials, which may affect the appraised value of the property. Funds may be withheld until inspections show all portions of a draw are completed. We will ask that you complete the Release of Lien section on the form with the names of the suppliers and subcontractors that you either have paid or intend to pay from the draw funds. Please be as precise and complete as possible. We will then notarize the document. Draw Schedule The percentages of our five draw schedules are as follows: 20% Excavation, Foundation 25% Under-roof 18% Windows, Doors, Rough Plumbing & Electrical, Siding 17% Insulation, Drywall, Heating 20% Cabinets, Trim Light Fixtures, Flooring, Finish 100% 3 Revised: 03/01/99

A copy of our inspection card is included (Exhibit E). If these percentages do not meet your requirements, please let us know and we will work with you on a schedule. Since you have a contract with our customer, we want you as well as our customer to sign the draw schedule acknowledging the amounts that pertain to your contract (Exhibit F). 5. Final Affidavit We will require you to sign a final affidavit, at the time of the final draw, which states that the home has been completed according to the original plans and specifications, and that all supplies and laborers have been paid in full. 6. Pinning Location of House You must have a registered surveyor pin (put the stakes into the ground) the location of the house that is going to be built. Don t have the builder pin it and don t pin it yourself. If a dwelling is outside of a building setback line, it will be necessary for you to obtain a variance from the City (or other pertinent governmental entity in which the property is located). A copy of the approved set back variance must be put into the file before construction can continue. If this is unable to be obtained, then the house must be moved. You cannot continue building in these situations. Houses cannot be built within an easement without risking having to be moved. You are cautioned not to build decks in violation of setback lines. This is as much a problem as having the house violate a setback line requirement. Houses should obviously be built within the lot lines as well as the setback lines. Be aware not to build any structure (house, garage or outbuilding) within a designated flood hazard zone. Otherwise, flood insurance is required. 4 Revised: 08/26/05

Contractor Name: SS#: Contractor Address: DOB: Contractor Phone Numbers: ( ) ( ) CUSTOMER REFERENCES: REFERENCE SHEET NAME ADDRESS PHONE NUMBER 1. ( ) 2. ( ) 3. ( ) SUPPLIER REFERENCES: NAME ADDRESS PHONE NUMBER 1. ( ) 2. ( ) 3. ( ) 4. ( ) 5. ( ) BANKING REFERENCES: NAME ADDRESS PHONE NUMBER 1. ( ) 2. ( ) 3. ( ) 4. ( ) 5. ( ) I authorize First Federal Savings of Lorain to order my credit report from the credit bureau and for all references to release the necessary information. Contractor Signature Exhibit A 5 Revised: 06/16/06

: To: RE: Your name has been given to us, by the above named contractor, as a past customer that we could contact for reference purposes. If you would please complete the following questions and return this form to us in the provided envelope, we would greatly appreciate it. 1. Did the contractor complete your project on a timely basis? 2. Did you have any complaints from sub-contractors concerning non-payment or slow payment? How about suppliers? 3. Were you happy with the overall performance and quality of work of the contractor? 4. Would you recommend the contractor to other individuals interested in building? Signature of person completing questionnaire Print name of person completing questionnaire Thank you for your time and cooperation. Please be advised that all your answers will be held in strict confidence. I, the undersigned, do hereby authorize the release of the above information to First Federal Savings of Lorain. Signature Sincerely, Loan Officer 6 Exhibit B

: To: RE: Dear Sir or Madam: Your name has been given to us as a supplier of materials for the above listed contractor. Please complete this form and return it to us in the provided envelope. 1. How long have they been a customer with your company? 2. Do they have an open account, if so what is the credit limit? 3. If it is not an open account, what was their past credit limit? 4. Do they pay on a timely basis? 5. Have they even been: 30 days late?, 60 days late? 6. Have you ever had to send them for collection? 7. Additional Comments: Signature of person completing questionnaire Print name of person completing questionnaire Thank you for your time and cooperation. I, the undersigned, do hereby authorize the release of the above information to First Federal Savings of Lorain. Signature Sincerely, Loan Officer Exhibit C Revised: 06/16/06 7

: To: RE: The above named contractor has given your institution as a banking reference for either the company or personally. Please complete this form and return it to us in the provided envelope. 1. If this account is a checking account, have there been any returned checks in the past 2 years, if so how many? 2. Approximately, what is the average balance of the account? 3. If this is a loan account, what is the original balance? $.00 Current balance: $.00 Rate: % 4. Do they pay as agreed? 5. If not how many times: 30 days late?, 60 days late? 6. Additional Comments: Signature of person completing questionnaire Print name of person completing questionnaire Thank you for your time and cooperation. I, the undersigned, do hereby authorize the release of the above information to First Federal Savings of Lorain. Signature Sincerely, Loan Officer Exhibit D Revised: 06/16/06 8

LOAN NUMBER NAME ADDRESS BUILDING TYPE CONTRACTOR 90% 100% STAGE/PHASE 90% 100% STAGE/PHASE 1 Excavation 4 Heating { 1 Foundation { Concrete Concrete Block 5 Interior Trim 1 Basement Floor 5 Interior Doors 1 Slab 5 Interior Stairs * 1 Septic 5 Exterior Painting 1 Leach Bed 5 Interior Painting 1 Well/Cistern 2 First Joist { 2 x 8 2 x 10 5 Floors { Carpeted Electric Baseboard Electric Furnace Gas Furnace Plywood Plyscore Varnished 2 Slit Level { Solid Wall 5 Kitchen Floor { Linoleum 2 Beam { Wood * 5 Fireplace 2 Second Joist { 2 x 8 2 x 10 2 Chimney 2 Rafters { 2 x 6 Trussed 2 Roof Sheathing 2 Roofing Asphalt Shingles { Wood 3 Windows Exterior Doors { Aluminum 3 Wood Siding { Insulite Wood 3 Brick Siding Front { tial 3 Brick Veneer 3 Rough Plumbing 3 Tub Surround 3 Rough Wiring Hot Air 4 Heating Pipes { Water 4 Insulation { Walls Ceiling 4 Lathed { Drywall Wood Partition Steel Brick 5 Lighting Fixtures 5 Sheet Metal Carpeted 5 Grading { Rough Finish 5 Walks Overhead Door * 5 Garage { Floor Concrete 5 Driveway { 5 Kitchen Cupboards 5 Kitchen Countertops Par 5 Finish Hardware 5 Finish Plumbing 5 Medicine Cabinet 5 Vanity: Top Occupied Survey Ordered Gravel Stone Concrete * MAY BE IN PRIOR DRAWS Exhibit E Revised 3/1999

First Federal Savings of Lorain 3721 Oberlin Avenue, Lorain, Ohio 44053-2795 (440) 282-6188 - Toll Free (800) 589-8850 - Fax (440) 282-6164 CONSTRUCTION LOAN PAY OUT SCHEDULE LOAN #: 1234597890 : 04/10/08 Name: John and Mary Smith Address: 555 Cherry Tree Lane, Amherst, Ohio 44001 Contract Amount $110,000.00 Down Payment $ 10,000.00 Total Cost to Build $100,000.00 Draw # TOTAL COST TO BUILD $100,000.00 1 Excavation & Foundation 20% $ 20,000.00 2 Under Roof & Shingles 25% $ 25,000.00 3 Rough Wire & Plumbing Windows & Siding 4 Heating & Insulation Drywall & Fireplace 5 Painting & Trim Lighting & Cabinets 18% $ 18,000.00 17% $ 17,000.00 20% $ 20,000.00 Total 100% $100,000.00 We, the undersigned owners and contactors, do hereby acknowledge and accept the above dollar amounts as draws for the appropriate stages of construction. We also acknowledge that First Federal Savings of Lorain reserves the right to withhold funds for any incomplete items based upon the opinion of First Federal Savings of Lorain s inspector. Owners also have the right to withhold funds at their option. John Smith Mary Smith Signature ABC Construction, Inc Exhibit F Revised: 04/15/08

PAY OUT ORDER To: THE FIRST FEDERAL SAVINGS & LOAN 20_ ASSOCIATION OF LORAIN LORAIN, OHIO This is to certify that_ Contractor on the improvement being constructed at and is entitled to a payment of for labor and/or material furnished to and actually incorporated in the improvement. Total of contract and extras or of bills to $ Payments made including this order... $ Balance due.. $ is the Dollars ($ ) Pay this order and charge to the account number of Owner s Name Contractor RELEASE AND WAIVER OF LIEN Owner The undersigned having furnished labor and/or material to the premises described above in an amount equal to or greater than the amount of the above order does hereby acknowledge receipt of check # in payment of the above order and agrees that the receipt of the amount of this check shall constitute a waiver of lien for the amount of this payment. The following are the names of the parties who have furnished labor and/or material who have been paid or will be paid from these funds. NAME OF CONTRACTOR OR SUPPLIER KIND OF WORK OR MATERIAL PROVIDED The undersigned further states that there are no amounts included in this payment for labor or material furnished by other parties which can become a lien against these premises. Sworn to before me and subscribed in my presence by the said this day of 20. at _, Ohio, Notary Public Exhibit G Revised 3/1/99