Document:

exv10w2

Exhibit 10.2

LOAN ORIGINATION AGREEMENT

     THIS LOAN ORIGINATION AGREEMENT (this “Agreement”) is entered into as of the 6th day
of September, 2011 (the “Effective Date”), by and between CM REIT, Inc., a Maryland
corporation (“CMR”), Ignite Funding, LLC, a Delaware limited liability company
(“Ignite”), and for the purposes of Paragraphs I and J of Article I hereof, 2020 Capital
Advisors, LLC, a Delaware limited liability company (“Parent”).

RECITALS:

     WHEREAS, Ignite is regularly and actively engaged in the business of arranging for the
financing and servicing non-agency mortgage loans and mortgage loans for the acquisition of,
development of, and construction on real estate (collectively, “Mortgage Loans”);

     WHEREAS, CMR is a real estate investment trust that originates and invests in, among other
things, Mortgage Loans; and

     WHEREAS, Ignite and CMR desire to enter into this Agreement to set forth certain rights and
obligations between the parties regarding the origination and servicing of Mortgage Loans by Ignite
and the funding of Mortgage Loans by CMR.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual premises hereinafter
expressed, the parties hereto do mutually agree as follows:

ARTICLE I. FUNDING PROCESS.

     A. Ignite shall continue to originate Mortgage Loans in accordance with its historical
practices. Ignite shall send a weekly report (a “Mortgage Loan Report”) to CMR presenting
in reasonable detail Mortgage Loans identified by Ignite and that Ignite believes satisfy the
investment criteria of CMR and are appropriate for investment by CMR (each, a “Potential
Qualifying Loan”). CMR shall then have a period of two (2) business days from the date of such
notice (an “Initial Election Period”) to elect to fund all or a portion of those Potential
Qualifying Loans by delivering written notice to Ignite (each, a “Preliminary Funding
Notice”). Each Preliminary Funding Notice shall constitute an offer by CMR to fund all or the
specified portion of each Potential Qualifying Loan listed in such Preliminary Funding Notice upon
the terms and conditions set forth in the Mortgage Loan Report as modified by any requested changes
set forth in such Preliminary Funding Notice, with such changes thereto as CMR shall deem
appropriate for its funding thereof. If CMR fails to deliver a Preliminary Funding Notice to
Ignite prior to the expiration of the Initial Election Period, or if the Preliminary Funding
Notices delivered by CMR does not include all of the Potential Qualifying Loans listed on the
Mortgage Loan Report, then Ignite may arrange for the funding of all or any such portion, as the
case may be, of the remaining Potential Qualifying Loans set forth in the applicable Mortgage Loan
Report that were not selected by CMR through one or more other investment programs sponsored by
Parent (each, a “Competitive Program”) or third parties.

     B. No later than two (2) business days after its receipt of a Preliminary Funding Notice (an
“Election Period”), Ignite may elect to accept any changes set forth in the applicable

Loan Origination Agreement—Page 1 of 13

 

 

Preliminary Funding Notice that CMR requests be made to the terms of any Potential Qualifying
Loan listed in such Preliminary Funding Notice. If Ignite rejects any of the modified terms
requested by CMR, it may withdraw from the Preliminary Funding Notices each Potential Qualifying
Loan with respect to which modified terms were requested and shall permit CMR to fund all or the
specified portion of any remaining Potential Qualifying Loans listed on the Preliminary Funding
Notices. If Ignite agrees to all modified terms requested by CMR in a Preliminary Funding Notice,
then Ignite shall permit CMR to fund all or the specified portion of the Potential Qualifying Loan
listed in the Preliminary Funding Notice upon the modified terms requested by CMR.

     C. Ignite may freely arrange for the funding of any Potential Qualifying Loan that was set
forth in a Mortgage Loan Report or portion thereof that CMR did not elect to fund or as to which
any modified terms set forth in the Preliminary Funding Notice were not accepted by Ignite.

     D. For any and all Mortgage Loans that CMR should choose to fund, as soon as available
following the delivery of a Preliminary Funding Notice, Ignite shall deliver to CMR the due
diligence materials, reports and documents described in Attachment “B” hereto (the “Specified
Materials”) relating to the Mortgage Loan to be funded, participated in or purchased by CMR
then in the possession of Ignite. Upon receipt of all Specified Materials, CMR shall have three
(3) business days to review and approve or object in writing to the Specified Materials received.
In addition, Ignite shall provide CMR with any additional documents and other information that CMR
may reasonably request with respect to any Mortgage Loan to be funded by CMR hereunder. It shall
be a condition to the obligation of CMR to fund any Mortgage Loan at a Closing (hereinafter
defined) that Ignite shall have timely provided to CMR all of the Specified Materials (and any
other documents and other information reasonably requested by CMR). In the event that with respect
to any Mortgage Loan, (i) CMR does not approve the Specified Materials initially delivered to CMR,
or (ii) the Specified Materials received by CMR thereafter do not support or conform to the
representations and description of the Mortgage Loan provided by Ignite to CMR in the Mortgage Loan
Report, including, without limitation, the borrower, loan amount, collateral type, ownership,
appraised value, lien priority and environmental condition, CMR shall have no obligation to fund
such Mortgage Loan at a Closing.

     E. Each closing of a funding of a Mortgage Loan by CMR hereunder (each, a “Closing”)
shall take place at the principal offices of CMR, at the address specified in Article XII hereof,
on the business day specified as the closing date for the applicable Mortgage Loan in the
applicable Mortgage Loan Report. At each Closing, Ignite shall arrange for the execution and
delivery to CMR of a standard set of investment documents, in form and substance reasonably
acceptable to CMR (and shall provide CMR with customary representations and warranties as well as
adequate assurances that such Mortgage Loans are valid and enforceable obligations of the
respective borrowers and that no default, event of default, or similar event has occurred of which
Ignite could reasonably be expected to be aware with respect to such Mortgage Loans). At each
Closing, unless otherwise agreed upon by the parties, CMR shall fund all or the specified portion
of each Mortgage Loan in the applicable amount payable in immediately available funds.

Loan Origination Agreement—Page 2 of 13

 

 

     F. CMR may, at its election, request periodic accounting and other financial records from
Ignite that demonstrate its compliance with this Agreement. Any proprietary information and
associated products, copyrights, trademarks and logos developed by parties to this Agreement shall
remain the property of the party which developed them.

     G. Each party hereto shall, in a professional manner, take all steps reasonably necessary to
perform its duties hereunder.

     H. In addition to the other matters set forth in this Article I, the parties agree to the
covenants and other matters set forth in Attachment “A” hereto, which are incorporated by reference
as if fully set forth herein.

     I. As promptly as possible but in any event within thirty (30) days (or such later date as the
parties may agree) after (i) any person or entity engaged in the business of originating or
brokering commercial loans becomes an Affiliate (as defined in Rule 12b-2 of the regulations
promulgated under the Securities Exchange Act of 1934, as amended) of Parent and/or Ignite, or (ii)
any Affiliate of Parent and/or Ignite becomes engaged in the business of originating or brokering
commercial loans, Parent shall provide CMR with written notice thereof setting forth information in
reasonable detail describing the business of such person or entity and shall, if requested by CMR,
within thirty (30) days after the date of such notice, cause each such person or entity to deliver
to CMR a joinder agreement in form and substance reasonably acceptable to CMR pursuant to which
such person or entity becomes a party to and agrees to be bound by the terms and provisions of this
Agreement.

     J. Subject to the rotation process described in this Paragraph J, each investment opportunity
in a Potential Qualifying Loan will be offered by Ignite to CMR, to the extent that CMR then has
available capital in an amount sufficient to allow CMR to participate in such investment
opportunity. Ignite may also offer certain Mortgage Loans it has identified as satisfying the
investment criteria of a Competitive Program and appropriate for investment by such Competitive
Program to such Competitive Program to the extent that such Competitive Program then has sufficient
funds to allow the Competitive Program to participate in such Mortgage Loans. However, if the
Parent’s investment committee determines that any Potential Qualifying Loan satisfies the
investment criteria of CMR and one or more Competitive Programs and CMR and each such Competitive
Program then has sufficient capital to invest in such Potential Qualifying Loan, then each such
Potential Qualifying Loan, shall be subject to a rotation process that gives CMR and all applicable
Competitive Programs sequential opportunities to be presented and acquire Potential Qualifying
Loans. This rotation process shall continue such that CMR or a Competitive Program shall in turn
be offered each Potential Qualifying Loan investment opportunity. The foregoing rotation process
shall apply regardless of the number of applicable Competitive Programs, such that each has a fair
and equitable opportunity, in an orderly and consistent rotation, to evaluate an applicable
Potential Qualifying Loan. The foregoing notwithstanding, if the party next-in-line declines a
Potential Qualifying Loan, then such Potential Qualifying Loan shall be presented to the
next-in-line after the declining party, provided, that the failure by CMR or any
Competitive Program to accept a Potential Qualifying Loan shall not affect its right to be offered
any future Potential Qualifying Loan in accordance with the rotation process described in this
Paragraph J (it being understood that CMR or a Competitive Program that declines to accept a
Potential Qualifying Loan goes to

Loan Origination Agreement—Page 3 of 13

 

 

the end of the rotation line behind all other applicable rotating parties). Parent’s
investment committee shall allocate Mortgage Loan investment opportunities among CMR and all other
Competitive Programs first, in accordance with the investment criteria that is best satisfied by
the Mortgage Loan and second, pursuant to the foregoing rotation policy. To the extent that any
investment opportunity does not satisfy CMR’s investment criteria, such investment opportunity
shall not be subject to the rotation process described in this Paragraph J and Ignite may present
such Mortgage Loan investment opportunity to any other Competitive Programs without presenting it
to CMR.

ARTICLE II. CONTINUING OBLIGATIONS OF IGNITE.

     Ignite agrees to comply with all applicable regulations and statutes affecting licensing
status, and/or the origination and processing of Mortgage Loans. Ignite further agrees to properly
supervise any agents or employees of Ignite which directly or indirectly handle any phase of
origination or processing of its Mortgage Loans. Ignite shall immediately notify CMR of any
claims, administrative proceedings or actions by a government or private entity, which could affect
Ignite’s status as a licensed entity. Ignite shall notify CMR in writing of any changes in its
ownership structure or its address for notice within thirty (30) business days of such change.
Furthermore, Ignite does hereby represent and warrant that it is solvent and has adequate financial
capitalization to properly engage in the business of originating and processing Mortgage Loans.
Ignite shall immediately notify CMR should Ignite become insolvent, incur claims or obligations
which could make it insolvent, or experience a material change in its financial condition that
could impair its ability to perform under this Agreement.

ARTICLE III. IGNITE WARRANTIES.

     Ignite hereby represents and warrants to CMR:

	 	(a)	 	No Untrue Statements: None of the statements or information contained
in any Mortgage Loan package, to the best of Ignite’s knowledge after a reasonable
investigation with due diligence, will contain any untrue or erroneous statement, and
Ignite shall not omit any facts material to any Mortgage Loan package.
	 
	 	(b)	 	Duly Licensed and Authorized: Ignite is duly licensed under the laws
of the state of operation and possesses all necessary licenses, permits and authority
to engage in the activities contemplated by this Agreement. CMR may require Ignite to
provide copies of such licenses or permits upon renewal. If Ignite originates any
loans outside the state where it is physically located, Ignite warrants that it has
obtained the required state agency approvals, territorial authority, and/or license to
originate such loans, and will provide such upon request.
	 
	 	(c)	 	Regulatory Compliance: Ignite will comply with all applicable federal,
state and local laws and regulations with respect to its business activities and all
loans, including all anti-predatory lending laws. Specifically, in connection
therewith, Ignite has given all applicable required local, state, federal and/or agency
disclosures to borrowers with respect to any loan.

Loan Origination Agreement—Page 4 of 13

 

 

	 	(d)	 	No Other Fees: Except as otherwise disclosed to CMR in writing, prior
to the funding of any transaction by CMR, Ignite shall not receive any direct or
indirect payment or consideration from any third-party with respect to the transaction,
including, but in no way limited to, payments involving escrow, appraisal or sale.
	 
	 	(e)	 	No Pending Suits: Unless otherwise disclosed to CMR in writing, there
is not pending or threatened any suit, action, arbitration or legal, administrative or
other proceeding or governmental investigation (including any allegation of fraud)
against Ignite or its current or former owners, agents, or employees that could have a
material adverse effect on Ignite’s business, assets, financial condition, or
reputation.
	 
	 	(f)	 	Borrower Processing: No borrower shall have had in his or her direct
or indirect possession or control any credit, income or deposit verification document
submitted to CMR with respect to any loan.
	 
	 	(g)	 	Corporate Good Standing: Ignite is a duly organized and validly
existing entity that is in good standing under the applicable laws and regulations of
its state of organization, all jurisdictions in which it conducts business and the
United States of America. Ignite has the requisite power, authority and capacity,
corporate or otherwise, to execute and deliver this Agreement and perform its
obligations hereunder. At any time, with reasonable notice, CMR may require Ignite to
provide copies of Ignite’s corporate or other organization documents.
	 
	 	(h)	 	No Violations of Law: Ignite’s execution and delivery of this
Agreement, and performance hereunder, does not and will not violate any law, rule or
regulation (federal, state or local); any order, writ, judgment, injunction, decree,
determination or award; or any other agreement or instrument to which Seller is a party
or by which it may be bound or affected. This warranty applies whether any of the
above are presently effective or known by Ignite to become effective.
	 
	 	(i)	 	Fair Lending Statement: Ignite acknowledges that it does not
discriminate against applicants on the basis of age, race, color, gender, ethnic
background, national origin, religion, marital status, familial status, veteran status,
handicap, sexual orientation, receipt of public assistance, because rights have been
exercised under the Consumer Credit Protection Act, or any other prohibited basis.

ARTICLE IV. PERIOD OF PERFORMANCE.

     This Agreement shall be effective as of the Effective Date and its initial term shall expire
on the one-year anniversary of the Effective Date unless any party gives written notice of
termination to the other party at least 90 days prior to the scheduled date of expiration. If no
notice of termination is given by either party, this Agreement shall be automatically renewed for
successive one-year periods. Notwithstanding the foregoing, this Agreement shall be earlier
terminated (x) at any time by mutual agreement of the parties, or (y) at any time by CMR or

Loan Origination Agreement—Page 5 of 13

 

 

Ignite upon thirty (30) days’ advance written notice after an event constituting “cause” has
occurred with respect to the other party. For purposes of this Agreement “cause” means a judgment
by a court of competent jurisdiction that the subject party has committed fraud either against
third parties or against the other party to this Agreement; the bankruptcy, insolvency or
dissolution of the subject party; or the material breach of this Agreement by the subject party
(that is not cured by the subject party within 30 days after receipt of written notice). Time is
of the essence in the performance of the obligations under this Agreement.

ARTICLE V. MANAGEMENT.

     Each party shall designate a partner, officer or other senior person to be responsible for the
overall administration of such party’s responsibilities under this Agreement. Neither party shall
have management authority over the other outside the scope and performance of this Agreement.

ARTICLE VI. CONFIDENTIAL INFORMATION.

     Ignite acknowledges and agrees that in the course of the performance of this Agreement or
additional services pursuant to this Agreement, it may be given access to, or come into possession
of, confidential information of CMR, which information may contain trade secrets, proprietary data
or other confidential material of CMR. Ignite agrees, during the term of this Agreement, to hold
in confidence and, except as provided herein, not publish or disclose to any third parties any of
CMR’s Confidential Information (hereinafter defined) without the prior consent of CMR. Ignite
agrees to use the same degree of care (and in any event not less than reasonable care) to safeguard
the confidentiality of the Confidential Information that it uses to protect its own secret
information. Ignite agrees to limit any disclosure of the Confidential Information only to those
of its affiliates and its and its affiliates’ employees, managers, directors, officers and outside
professional advisors who have a need to know and to advise such persons of Ignite’s obligations
under this Agreement. Notwithstanding anything in this Agreement to the contrary, each party
hereto agrees that any party to this Agreement (and any person or entity to which Confidential
Information is disclosed by a party as permitted hereby) may disclose to (without limitation) its:
(i) regulators; (ii) auditors; and (iii) persons or entities who need to know the tax treatment and
tax structure of the transactions contemplated by this Agreement, and all materials of any kind
(including opinions or other tax analyses) related to such tax treatment and tax structure.

     The term “Confidential Information” shall include all financial, marketing and other
information concerning the Mortgage Loans and CMR which CMR discloses to Ignite in connection with
this Agreement or otherwise. Confidential Information shall not include, and the parties agree
that this Agreement is not intended to restrict use or disclosure of, any portion of such
information which:

     is now or later made known to the public through no default by Ignite of its
obligations under this Agreement;

     is received by Ignite from a third party provided Ignite has no actual knowledge such
third party is breaching an obligation of confidentiality to CMR in providing such
information to Ignite;

Loan Origination Agreement—Page 6 of 13

 

 

     is independently developed by Ignite by persons who did not have access to Confidential
Information of CMR;

     is disclosed by Ignite after receipt of written permission from CMR; or

     is required to be disclosed by law, order or regulation of a governmental agency or
court of competent jurisdiction.

ARTICLE VII. NO PARTNERSHIP.

     Nothing herein contained shall be construed to imply a joint venture, partnership or
principal-agent relationship between CMR and Ignite, and neither party shall have the right, power
or authority to obligate or bind the other in any manner whatsoever, except as otherwise agreed to
in writing. The parties do not contemplate a sharing of profits relating to the business of CMR or
Ignite so as to create a separate taxable entity under Section 761 of the Internal Revenue Code of
1986, as amended, nor co-ownership of a business or property so as to create a separate partnership
under the law of any jurisdiction, including, without limitation, the state of Delaware, Nevada or
Maryland. Revenues and expenses relating to the Mortgage Loans hereunder and any activities
relating thereto shall be reported separately by the parties for tax purposes. This provision does
not eliminate the possibility that the parties may enter into various revenue or equity sharing
agreements with regard to any Mortgage Loans that the parties may consider on a case by case basis.
During the performance of any of the contemplated business activities set forth herein, CMR’s
employees, if any, will not be considered employees of Ignite, and vice versa, within the meaning
or the applications of any federal, state or local laws or regulations including, but not limited
to, laws or regulations covering unemployment insurance, retirement or medical benefits, worker’s
compensation, industrial accident, labor or taxes of any kind.

ARTICLE VIII. TRADEMARK, TRADE NAME AND COPYRIGHTS.

     This Agreement does not give any party any ownership rights or interest in another party’s
trade name, trademarks or copyrights.

ARTICLE IX. ADDITIONAL IGNITE WARRANTIES.

     Ignite represents and warrants that all Mortgage Loans submitted to CMR shall meet the
following conditions, in addition to any other requirements set out in this Agreement:

	 	(a)	 	Appraisers:

	 	a.	 	Ignite warrants that the appraiser’s compensation was not
affected by the approval or disapproval of the loan, or contingent upon
returning a minimum appraised value.
	 
	 	b.	 	Ignite reserves the right to refuse appraisals from any
appraiser or appraisal firm whose work has been deemed unacceptable in CMR’s
sole discretionary judgment.

Loan Origination Agreement—Page 7 of 13

 

 

	 	(b)	 	Ignite shall execute all documentation required to close and fund loans to be
purchased by CMR, including, if applicable, the assignment of the loans transferring
and assigning to CMR all right, title and interest in and to said loans, free and clear
of any and all claims, charges, defenses, offsets, demands, or encumbrances of any kind
whatsoever.
	 
	 	(c)	 	The Note and Security Instrument executed in connection with a Mortgage Loan
shall not be modified without CMR’s prior written permission. All documents affecting
said Mortgage Loan shall be genuine and each shall be legal, valid and binding upon
borrowers.
	 
	 	(d)	 	CMR may fund a Mortgage Loan and may temporarily withhold Ignite’s compensation
until all funding conditions have been met.
	 
	 	(e)	 	A Mortgage Loan shall not be subject to any right of rescission, offset,
counterclaim or defense, including the defense of usury.

ARTICLE X. INDEMNIFICATION.

     Each of CMR and Ignite, at its own expense, shall indemnify, defend and hold the other, its
partners, members, shareholders, directors, officers, employees and agents harmless from and
against any and all third-party suits, actions, investigations and proceedings, and related costs
and expenses (including, reasonable attorney’s fees), resulting solely and directly from the
indemnifying party’s gross negligence, willful misconduct or material breach of this Agreement.
Neither CMR nor Ignite shall be required hereunder to defend, indemnify or hold harmless the other
or its partners, shareholders, directors, officers, employees and agents, or any of them, from any
liability resulting from the gross negligence, willful misconduct or material breach of this
Agreement by the party seeking indemnification or by any third party. Each of CMR and Ignite
agrees to give the other prompt written notice of any claim or other matter as to which it believes
this indemnification provision is applicable.

ARTICLE XI. INTELLECTUAL PROPERTY.

     Work performed pursuant to this Agreement by either CMR or Ignite and information, materials,
products and deliverables developed in connection with business endeavors pursuant to this
Agreement shall be the property of the respective parties performing the work or creating the
information. All underlying methodology utilized by Ignite and CMR, which was created or developed
prior to the date of this Agreement and utilized in the course of performing their duties pursuant
to this Agreement, shall not become the property of the other.

ARTICLE XII. GENERAL PROVISIONS.

     A. Entire Agreement. This Agreement, together with the Attachments hereto and all
documents executed in connection herewith or incorporated by reference herein, constitutes the

Loan Origination Agreement—Page 8 of 13

 

 

entire and sole agreement between the parties hereto with respect to the subject matter hereof
and supersedes any prior agreements, negotiations, understandings or other matters, whether oral or
written, with respect to the subject matter hereof. This Agreement cannot be modified, changed or
amended, except in writing signed by a duly authorized representative of each of the parties
hereto.

     B. Conflict. In the event of any conflict, ambiguity or inconsistency between this
Agreement and any other document which may be annexed hereto, the terms of this Agreement shall
govern. Any conflicts or disputes that are not amicably settled in the due course of this business
relationship shall be settled through binding arbitration, in accordance with the latest edition of
rules as set forth by the American Arbitration Association, such arbitration to be held in Las
Vegas, Nevada. Said rulings in arbitration shall be considered final and binding on the parties
hereto and shall be enforceable in any competent United States court.

     C. Assignment and Delegation. No party shall voluntarily assign or delegate this
Agreement or any rights, duties or obligations hereunder to any other person or entity without
prior express written approval of the other party, provided that, notwithstanding the foregoing, a
party may assign this Agreement by operation of law to any successor to such party by merger or
consolidation (without the prior consent of the other parties).

     D. Notices. Any notice required or permitted to be given under this Agreement shall
be in writing, by hand delivery, commercial overnight courier or registered or certified U.S. Mail,
to the address stated below across from such party’s name, and shall be deemed duly given upon
receipt, or if by registered or certified mail three business days following deposit in the U.S.
Mail. The parties hereto may from time to time designate in writing other addresses expressly for
the purpose of receipt of notice hereunder.

	 	 	 	 	 

	 

	 	If to CMR:
	 	CM REIT, Inc.
	 

	 	 	 	1291 Galleria Drive, Suite 200
	 

	 	 	 	Henderson, Nevada 89014
	 

	 	 	 	Attention: Todd B. Parriott
	 

	 	 	 	Telephone: (702) 795-7930
	 
	 	 	 	 
	 

	 	If to IGNITE:
	 	Ignite Funding, LLC
	 

	 	 	 	1291 Galleria Drive, Suite 220
	 

	 	 	 	Henderson, Nevada 89014
	 

	 	 	 	Attention: Carrie Cook
	 

	 	 	 	Telephone: (702) 921-5172

     E. Severability. If any provision of this Agreement is declared invalid or
unenforceable, such provision shall be deemed modified to the extent necessary and possible to
render it valid and enforceable. In any event, the unenforceability or invalidity of any provision
shall not affect any other provision of this Agreement, and this Agreement shall continue in full
force and effect, and be construed and enforced, as if such provision had not been included, or had
been modified as above provided, as the case may be.

Loan Origination Agreement—Page 9 of 13

 

 

     F. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Nevada without giving effect to its choice of law principles.

     G. Headings. The article and paragraph headings set forth in this Agreement are for
the convenience of the parties, and in no way define, limit, or describe the scope or intent of
this Agreement and are to be given no legal effect.

     H. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same instrument.

     I. Attachments. The Attachments attached hereto are made a part of this Agreement as
if fully set forth herein.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK —

SIGNATURE PAGE IMMEDIATELY FOLLOWS]

Loan Origination Agreement—Page 10 of 13

 

 

     IN WITNESS WHEREOF, the parties, by their duly authorized representatives, have caused this
Agreement to be executed as of the date first written above.

	 	 	 	 	 
	 	CM REIT, INC.

 	 
	 	By:  	/s/ Todd B. Parriott
 	 
	 	 	Todd B. Parriott 	 
	 	 	Chief Executive Officer 	 
	 
	 	IGNITE FUNDING, LLC

 	 
	 	By:  	/s/ Carrie Cook
 	 
	 	 	Carrie Cook 	 
	 	 	President 	 
	 
	 	2020 CAPITAL ADVISORS, LLC

 	 
	 	By:  	/s/ Todd B. Parriott
 	 
	 	 	Todd B. Parriott 	 
	 	 	Chief Executive Officer 	 
	 

Loan Origination Agreement—Page 11 of 13

 

 

ATTACHMENT “A”

Additional Provisions

In accordance with the provisions set forth in the foregoing Loan Origination Agreement of which
this Attachment forms an integral part, it is agreed and understood between the parties as follows:

	 	1)	 	Ignite is entitled to retain origination fees with respect to any Mortgage
Loans funded by CMR hereunder.
	 
	 	2)	 	CMR is acquiring loans on a servicing-released basis, and Ignite shall have no
right under this Agreement to service any Mortgage Loans funded by CMR hereunder.
Notwithstanding the foregoing, CMR and Ignite may enter into a separate servicing
agreement pursuant to which Ignite may service some or all of the Mortgage Loans funded
by CMR hereunder.

 

 

ATTACHMENT “B”

Specified Materials

	1.	 	All customary due diligence reports, documents, and analyses including, without limitation,
all appraisals, title commitments and related exception documents, surveys, engineering
reports, environmental reports, UCC, tax and judgment lien searches, organizational documents,
construction contracts, architect’s plans and specifications, rent rolls, leases, management
agreements and other material agreements, reports and analyses.

	2.	 	All other materials, documents and information reasonably requested by CMR.

	3.	 	Contents of a Complete Credit File, including, without limitation:

	 	a.	 	Loan Application
	 
	 	b.	 	Current Credit Reports on all Principals (60-days)
	 
	 	c.	 	Fully Executed Purchase Agreement and any and all addenda, as
applicable
	 
	 	d.	 	Appraisal and Valuation documents
	 
	 	e.	 	Title Documents and Reports
	 
	 	f.	 	Underwriting Approval
	 
	 	g.	 	Asset Documentation (60-days)
	 
	 	h.	 	All Disclosures
	 
	 	i.	 	Financial Information and Income Documentationexhibit_4-1.htm

EXHIBIT 4.1

 

Form of Series A Note due 2016

 

AGL Capital Corporation

 

Series A Senior Note Due [__________], 2016

 

No. [_____][Date]

$[_______]PPN _________

 

For Value Received, the undersigned, AGL Capital Corporation (herein called the “Company”), a corporation organized and existing under the laws of the State of Nevada hereby promises to pay to [____________], or registered assigns, the principal sum of [_____________________] Dollars (or so much thereof as shall not have been prepaid) on [___________], 2016 with interest (computed on the basis of a 360-day year of twelve 30-day months during the Fixed Rate Period and a 360-day year and actual days elapsed during the Floating Rate Period) (a) on the unpaid balance hereof at the Applicable Interest Rate per annum from the date hereof, payable on each Interest Payment Date in respect of the then Applicable Interest Rate and at maturity, until the principal hereof shall have become due and payable, and (b) to the extent permitted by applicable law, on any overdue payment of interest and, during the continuance of an Event of Default, on such unpaid balance and on any overdue payment of any Make-Whole Amount or LIBOR Breakage Amount, as applicable, at the applicable Default Rate, payable on each Interest Payment Date as aforesaid (or, at the option of the registered holder hereof, on demand).  

 

Payments of principal of, interest on and any Make-Whole Amount or LIBOR Breakage Amount, as applicable, with respect to this Note are to be made in lawful money of the United States of America at Bank of America, N.A. in New York, New York or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the Note Purchase Agreement referred to below.

 

This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to the Note Purchase Agreement, dated as of August 31, 2011 (as from time to time amended, modified, supplemented, restated and/or replaced from time to time, the “Note Purchase Agreement”), between the, Company, AGL Resources Inc. and the respective Purchasers named therein and is entitled to the benefits thereof.  Each subsequent holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 20 of the Note Purchase Agreement and (ii) made the representations set forth in Sections 6.2 and 6.5 of the Note Purchase Agreement.  Unless otherwise indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase Agreement.

 

This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender of this Note for registration of transfer accompanied by a written instrument of transfer duly executed, by the registered holder hereof, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee.  Prior to due presentment for registration of transfer, the Company may treat the Person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

 

The Company will make required prepayments of principal on the dates and in the amounts specified in the Note Purchase Agreement.  This Note is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but not otherwise.  

 

Pursuant to the Guaranty contained in Section 22 of the Note Purchase Agreement, AGL Resources Inc. has absolutely and unconditionally guaranteed payment in full of the principal of, Make-Whole Amount, if any, the LIBOR Breakage Amount, if any, and interest on this Note all as more fully set forth in said Guaranty.

 

If an Event of Default occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount or LIBOR Breakage Amount) and with the effect provided in the Note Purchase Agreement.

 

This Note shall be construed and enforced in accordance with, and the rights of the Company and the holder of this Note shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

	
AGL Capital Corporation

	  	  
	  	  
	
By 

	  
	  	
Name:

	  	
Title:

  

  

  

Security Guaranty

 

AGL Resources Inc. irrevocably and unconditionally guarantees the Obligations of AGL Capital Corporation, a Nevada corporation (the “Company”), under this Note including that the principal of, premium, if any, and interest on this Note shall be promptly paid in full when due, whether at stated maturity, by acceleration, redemption or otherwise.

 

The obligations of AGL Resources Inc. pursuant to this Security Guaranty are expressly set forth in Section 22 of the Note Purchase Agreement, and reference is hereby made thereto for the precise terms of this Security Guaranty.

 

No stockholder, employee, officer, director or incorporator, as such, past, present or future, of AGL Resources Inc. shall have any liability under this Security Guaranty by reason of his or its status as such stockholder, employee, officer, director or incorporator.

 

THE TERMS OF SECTION 22 OF THE NOTE PURCHASE AGREEMENT ARE INCORPORATED HEREIN BY REFERENCE.

 

Capitalized terms used herein have the same meanings given in the Note Purchase Agreement unless otherwise indicated.

 

	
AGL Resources Inc.

	  	  
	  	  
	
By 

	  
	  	
Name:

	  	
Title:

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