Document:

ex10-110.htm

Exhibit 10.110

 

	CONFIDENTIAL SEPARATION AGREEMENT AND GENERAL RELEASE

 

THIS CONFIDENTIAL SEPARATION AGREEMENT AND GENERAL RELEASE (the “Separation Agreement”) is made and entered into by and between Jenene Thomas (“Employee”) and Unigene Laboratories, Inc. (“Unigene” or the “Company”).

 

RECITALS

 

WHEREAS, Employee has been notified that the Company has decided to terminate her employment, effective September 28, 2012; and

 

WHEREAS, Unigene and Employee wish to confirm the terms of Employee’s separation from employment, and to settle, release and discharge with prejudice, any and all claims, causes of action or disputes Employee has or may have against any of the Released Parties (defined in Paragraph 3(a) below), including but not limited to those arising and/or which may be arising out of her employment with the Company and her separation from that employment.

 

NOW, THEREFORE, Unigene and Employee understand and agree as follows:

 

1.             Separation of Employment.

 

(a)            Employee acknowledges that she will be completely separated from Unigene and her employment ended as of September 28, 2012 (the “Separation Date”).  Except as expressly provided by this Separation Agreement or otherwise required by law, any and all duties or obligations of Unigene pursuant to Employee’s employment and/or separation from that employment, whether by written agreement or otherwise, will be and are completely extinguished as of her Separation Date.

 

(b)           Likewise, all of Employee’s duties and obligations to Unigene will be and are extinguished as of her Separation Date, except as otherwise provided by law.

 

2.             Acknowledgment of Receipt of Previous Pay and Benefits; Payment of Allowable Business Expenses; No Other Amounts Due and Owing.

(a)           Employee represents and warrants that she has reported to Unigene all of her hours worked as of her Separation Date.  She further acknowledges, understands and agrees that, as of the date she executes this Separation Agreement, she has: (i) been paid and received full compensation, less all applicable federal, state and local employment and income taxes and other required or elected withholdings, for all accrued wages and other earnings due to her in connection with her work for the Company; and (ii) been paid in full, at her regular base salary rate, for all accrued, unused vacation days existing under any Unigene policy or practice in her vacation bank as of her Separation Date (a total of eighteen (18) days) the total gross amount of sixteen thousand, forty four 23/100 Dollars $16,044.23.

(b)           Employee understands that she will receive payment for all reimbursable travel and other reasonable business expenses under Unigene’s polices or practices, provided that she submits appropriate, written vouchers and receipts for the same to the Company no later than September 30, 2012.   All such reimbursements shall be made promptly and in all events no later than the end of the taxable year following the year in which the expense was incurred.

(c)           Employee represents and warrants that she has incurred no work-related injuries and, to the best of her knowledge, has contracted no known occupational diseases.  She acknowledges and agrees that she has previously been provided all family, medical and disability leave and other benefits to which she was ever entitled under federal, state or local family or medical leave and disability accommodations laws, including any rights to reinstatement upon the conclusion of any period of leave, if any.

(d)           Unigene will accelerate the vesting of the Employee’s non-vested stock options, effective September 28, 2012.  The exercise period of the Employee’s vested stock options will terminate September 27, 2013, at which point the stock options will expire.

 

  

 

  

 

(e)           Employee understands, acknowledges and agrees that except as provided in this Separation Agreement, she will not be entitled to any payment or other benefit from the Released Parties, and the Released Parties shall never be required to make any further payment or provide any further benefit, for any reason whatsoever, to her or any person regarding any claim, right or status she may have arising on or before the Effective Date of this Separation Agreement (as defined in Paragraph 16(f), below).

3.              Release of Claims and Covenant Not to Sue.

(a)           In exchange for Unigene providing Employee with the payments and other benefits described within this Separation Agreement, Employee on behalf of himself, her heirs, executors, personal representatives, administrators, agents and assigns, forever waives, releases, gives up and discharges all waivable claims against Unigene, its parent, subsidiaries, and other related or affiliated corporations, their employee benefit plans and trustees, fiduciaries, administrators and parties-in-interest of those plans, and all of their past and present employees, managers, directors, officers, administrators, shareholders, members, agents, attorneys, insurers, re-insurers and contractors acting in any capacity whatsoever, and all of their respective predecessors, heirs, personal representatives, successors and assigns (collectively, the “Released Parties” as used throughout this Separation Agreement), whether accrued or unaccrued, liquidated or contingent, and now known or unknown, based on, related to, or arising from any event that has occurred before she signs this Separation Agreement and based upon, related to or arising out of or concerning her employment with Unigene, the termination of her employment by Unigene, the terms, benefits and attributes of her employment with Unigene, and any and all violations and/or alleged violations of federal, state or local fair employment practices or laws by any of the Released Parties for any reason and under any legal theory whatsoever including but not limited to the Title VII of the Civil Rights Act of 1964, 42 U.S.C. 2000(e), et seq. (“Title VII”), the Age Discrimination in Employment Act, 29 U.S.C. § 621, et seq. (“ADEA”), the Older Workers Benefit Protection Act, 29 U.S.C. § 626(f), et seq. (“OWBPA”), the Americans With Disabilities Act, 42 U.S.C. §12101, et seq. (“ADA”),  the Worker Adjustment and Retraining Notification Act, 29 U.S.C. § 2101, et seq. (“WARN”), the Occupational Safety and Health Act, 29 U.S.C. 651, et seq. (“OSHA”), the Civil Rights Act of 1991, 42 U.S.C. §§ 1981, 1983, 1985, 1986 and 1988, the Lilly Ledbetter Fair Pay Act of 2009, H.R. 11 (“Fair Pay Act”), the Fair Credit Reporting Act, 15 U.S.C. 1681, et seq. (“FCRA”), the Family and Medical Leave Act, 29 U.S.C. § 2601, et seq. (“FMLA”), the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. 1001, et seq. (“ERISA”), the Equal Pay Act of 1963, as amended, 29 U.S.C. § 206, et seq. (“EPA”), the Consolidated Omnibus Budget Reconciliation Act, 29 U.S.C. § 1161, et seq. (“COBRA”), the retaliation provisions of the Fair Labor Standards Act, 29 U.S.C. § 215(a)(3), et seq. (“FLSA”), the New Jersey Discrimination in Wages Law, N.J.S.A. 34:11-56.2, et seq., the New Jersey Law Against Discrimination, N.J.S.A. 10:5-12, et seq. (“NJLAD”), the New Jersey Family Leave Act, N.J.S.A. 34:11B-1, et seq. (“NJFLA”), the New Jersey Temporary Disability Benefits and Family Leave Insurance Law, N.J.S.A. 43:21-25, et seq., the New Jersey Civil Rights Act, N.J.S.A. 10:6-1, et seq. (“NJCRA”), the New Jersey Fair Credit Reporting Act, N.J.S.A. 56:-28, et seq. (“NJFCRA”), the New Jersey Conscientious Employee Protection Act, N.J.S.A. 34:19-1, et seq. (“CEPA”), the New Jersey Millville Dallas Airmotive Plant Job Loss Act, N.J.S.A. 34:21-1, et seq., the retaliation provisions of the New Jersey Wage and Hour Law, N.J.S.A. 34:11-56a, et seq., the retaliation provisions of the New Jersey Workers’ Compensation Act, N.J.S.A. 34:15-1, et seq., and all other federal, state and local regulations, rules, ordinances or orders, as they may be amended.  She also forever waives, releases, discharges and gives up all claims, whether accrued or unaccrued, liquidated or contingent, real or perceived, and known or unknown, and all claims for breach of implied or express contract, breach of promise, breach of the covenant of good faith and fair dealing, misrepresentation, negligence, fraud, estoppel, defamation, intentional infliction of emotional distress, violation of public policy, wrongful, retaliatory or constructive discharge, or any other claim or tort arising under any federal, state, or local law, regulation, ordinance or judicial decision and/or under the United States and New Jersey Constitutions.

(b)           Employee understands that the laws described above give her important remedies that relate to claims that she has or may have arising out of or in connection with her employment and/or separation from employment with Unigene and acknowledges and agrees that she freely and voluntarily give up those remedies and claims.  By signing this Separation Agreement, she also acknowledges and agrees that her waivers and releases expressly include a waiver of all claims existing on or before the Effective Date of this Separation Agreement which she knows about and those claims which she may not know about, and specifically includes an unconditional waiver of the right to proceed with any discovery concerning any such claim in any future litigation with any Released Party, if any.  Further, Employee understands, acknowledges and agrees that her waivers and releases under this Separation Agreement include any and all claims for attorneys’ fees or other fees or costs incurred for any reason.

 

  

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(c)           Employee warrants that she does not have any complaint, charge or grievance against any Released Party pending before any federal, state or local court or administrative agency or arbitration panel.  She further agrees not to file a lawsuit against any of the Released Parties in any court of the United States or any state or local governmental subdivision thereof, or with any arbitration panel, concerning any claim, demand, issue or cause of action covered by this Separation Agreement.  Should Employee file a lawsuit with any court or arbitration panel concerning any claim, demand, issue or cause of action waived through this Separation Agreement and not specifically excluded as described in Section 4 and its subparagraphs below, she agrees that she will be responsible to pay the legal fees and costs incurred by the Released Parties in defending any claims which are determined to be barred by this Separation Agreement.  Further, she agrees that nothing in this Separation Agreement shall limit the right of a court, tribunal or arbitration panel to determine, in its sole discretion, that the Released Parties are entitled to restitution, recoupment or set off of any monies paid to her under this Separation Agreement should the release of any claims in this Separation Agreement subsequently be found to be invalid.

4.              Exclusions from Release of Claims and Covenant Not to Sue.

(a)           Employee understands and agrees that nothing in this Separation Agreement limits her right to bring an action to enforce the terms of this Separation Agreement.

(b)           Employee understands and agrees that the Release contained in Section 3 and its subparagraphs above does not include a waiver of any claims which cannot be waived by law, or any accrued, vested rights she may have in any existing Company tax-qualified retirement plan or other benefit plans in accordance with the terms of such plans and applicable law.  Furthermore, she understands that nothing in this Separation Agreement will preclude her from purchasing continuation health benefits coverage under the Company’s group healthcare plans, to the extent she is otherwise eligible and for the period provided by law under COBRA and/or any similar state law and that she will be provided with continuation health benefits coverage information under separate cover letter following her Separation Date.

(c)           Employee understands and agrees that this Separation Agreement does not limit her right to bring an action to contest the validity of the release she has signed under the ADEA or the OWBPA.

(d)           Employee understands and agrees that nothing in this Separation Agreement prevents her from filing, cooperating with, or participating in any proceeding before the United States Equal Employment Opportunity Commission (“EEOC”) or any similar state or local fair employment practices agency.  However, Employee expressly waives her right to any individual monetary award, injunctive relief, or other recovery should any federal, state or local administrative agency pursue any claims on her behalf arising out of or relating to her employment with and/or separation from employment from any Released Party.  This means that by signing this Separation Agreement, Employee will have waived any right she had to bring a lawsuit or obtain an individual recovery if an administrative agency pursues a claim against any of the Released Parties based on any actions taken by any of them up to the date she signs this Separation Agreement and, should she be awarded money damages or any other remuneration or relief, she hereby unconditionally assigns to the Company any right or interest she may have to receive the same.

(e)           Employee understands and agrees that nothing in this Separation Agreement prohibits her from filing a claim to collect any benefits available to her under the New Jersey Unemployment Compensation Law, or from collecting any award of benefits granted to her in accordance with that law, following her Separation Date.

5.             Non-Admission of Liability.

Employee acknowledges and agrees that this Separation Agreement shall not in any way be construed as an admission that any of the Released Parties owe her any money or have acted wrongfully, unlawfully, or unfairly in any way towards her.  In fact, Employee understands that the Released Parties specifically deny that they have violated any federal, state or local law or ordinance, or any right or obligation that they owe or might have owed to her at any time, and maintain that they have at all times treated her in a fair, lawful, non-discriminatory and non-retaliatory manner.

 

  

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6.

	
Payments and Other Benefits to be Provided to Employee in Exchange for her Release.

(a)           In exchange for and in consideration of Employee’s promises set forth in this Separation Agreement, and contingent upon Unigene’s receipt of a signed, unrevoked and effective original of this Separation Agreement in accordance with the provisions of Section 16 below, Unigene agrees to provide the following payments and other benefits to Employee on behalf of all Released Parties:

(i)           Unigene will pay Employee the total gross amount of seventy seven thousand two hundred fifty dollars ($77,250.00), which amount is the equivalent of four (4) months of Employee’s base salary in effect as of her Separation Date (the “Severance Amount”).   The Severance Amount, and Employee’s regular salary for the period August 13, 2012 through September 28, 2012, in the amount of thirty two thousand six hundred eighty two and 69/100 Dollars ($32,682.69) shall be paid in a lump sum payment immediately following the execution of the Separation Agreement and the seven (7) day revocation period.

(ii)           To the extent Employee is eligible for and has elected COBRA continuation coverage in accordance with Unigene’s COBRA continuation health coverage policies, Unigene will pay Employee’s full monthly premiums due to purchase COBRA continuation health coverage through February of 2013, subject to all required taxes, tax withholdings and other applicable deductions (the “COBRA Subsidy” during the “COBRA Subsidy Period”).

(1)           Notwithstanding the foregoing, Unigene has and will have no obligation to make any payments toward COBRA continuation health coverage for Employee and her dependents extending beyond the COBRA Subsidy Period.

(2)           Employee acknowledges and agrees that the Company’s COBRA Subsidy during the COBRA Subsidy Period will not extend her and/or her eligible dependents’ eligibility for continuation health coverage under COBRA and agrees to hold harmless the Released Parties from any and all claims arising directly or indirectly from the COBRA Subsidy referenced above with the sole exception of claims arising from any failure by the Company to pay the COBRA Subsidy.

(3)           Employee understands and agrees that, after expiration of the COBRA Subsidy Period, she and her eligible dependents will be able to continue to receive the COBRA continuation health coverage for the remainder of the applicable COBRA continuation period permitted by law provided that they remain eligible for and pay the full cost of such coverage in accordance with Unigene’s COBRA continuation health coverage policies; and

(b)           Employee acknowledges that the Severance Amount, the COBRA Subsidy, and the vesting of the stock options afforded to her through this Separation Agreement constitutes good and adequate consideration in exchange for her promises and releases herein and is in addition to anything of value to which she is presently entitled by virtue of any understandings, agreements or contracts between her and any of the Released Parties, her employment with Unigene and her separation from that employment, and any of the Released Parties’ policies, practices, plans or prior understandings with her including but not limited to compensation, vacation, bonus, severance, on-call, paid time off, commission agreements, incentive compensation plans, equity incentives, stock options, offer letters, employment agreements, or any other fringe benefit plans or policies.

7.            No Reliance upon Verbal Representations.

Employee represents, acknowledges and agrees that no promises, statements or inducements have been made which caused her to sign this Separation Agreement other than those expressly stated in writing within this Separation Agreement.

 

  

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8.             Reference-Related Communications.

(a)           Employee agrees that, should she or any prospective employer desire that Unigene engage in any reference-related communications, she will direct such inquiries exclusively to Unigene’s Human Resources Department, for confirmation only of her: (i) dates of employment; (ii) employment position; and (iii) base salary.

 

(b)           Except with regard to verbal confirmation of her dates of employment, employment position, and base salary by Unigene as expressly set forth above, Employee agrees that the Released Parties will have no obligation to engage in any reference-related communications whatsoever with her past, existing or prospective employers unless compelled by a court order or other legal process.

 

(c)           Notwithstanding the foregoing, Employee understands and agrees that the Released Parties will remain free to internally communicate, to those with a business need to know, any and all information concerning her employment history with the Company.

 

 

9.             Confidentiality of this Separation Agreement.

(a)          Employee agrees to keep the fact, terms and amount of this Separation Agreement completely confidential, and not to disclose such information to anyone other than to her spouse, civil union or legal domestic partner, her attorneys, and her licensed tax and/or professional investment advisors (collectively, Employee’s “Confidants”), all of whom must first be informed by her of, and agree to be bound by, this confidentiality provision. Neither Employee nor her Confidants shall disclose the fact, amount or terms of this Separation Agreement to anyone including, but not limited to, any representative of any print, radio or television media; any past, present or prospective employee of or applicant for employment with the Company; any executive recruiter or “headhunter”; any counsel for any current or former employee of the Company; any other counsel or third party; or the public at large.  Employee acknowledges and agrees that any breach of this provision by her Confidants shall be treated as if she himself disclosed the information and breached this Separation Agreement.

 

 

(b)           Should Employee or her Confidants receive or hereinafter be subjected to a subpoena, court order or other compulsory process seeking to compel the disclosure of any of the information described in this Separation Agreement or any other confidential or proprietary business information belonging to the Company, or be requested for the disclosure of same pursuant to an investigation conducted by a governmental agency, Employee shall immediately, within forty-eight (48) hours upon receipt of such process or request, notify Unigene’s General Counsel, in writing, and consent to the Released Parties’ immediate intervention in the matter.   Notwithstanding the foregoing, nothing contained in this Separation Agreement shall preclude Employee from discussing any matter concerning the Company with any governmental regulatory or self-regulatory agency.  Furthermore, Employee agrees that she will cooperate with any governmental regulatory or self-regulatory agency that requests her to provide testimony or information regarding the Company; however her cooperation may not include disclosing the terms of this Separation Agreement.  If Employee is compelled to testify by a validly served subpoena or other compulsory process in any legal proceeding or by regulatory authority, she will testify truthfully as to all matters concerning the Company. 

 

  

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10.

	
Continuing Obligation Not to Use Any Confidential Information; and Return of All Confidential Information and Other Company Property.

(a)           Employee acknowledge and agree that all confidential and proprietary business information (the “Confidential Information”) belonging to the Company and/or the Released Parties, whether in tangible form or otherwise, including all documents and records, whether printed, typed, handwritten, videotaped, transmitted or transcribed on data files or on any other type of media, and whether or not labeled or identified as confidential and proprietary, made or compiled by her or made available to her during the period of her employment with the Company, is and remains the sole property of the Company and the Released Parties.  As used in this Agreement, “Confidential Information” means, without limitation, all critical business information such as drug products in development, business models, business strategies, product launch plans, CRO relationships, regulatory submissions, technology used by, or the therapeutic focus of, the Company, as well as all clinical, methodologies, standard operating procedures, and technology used by the Company, the therapeutic focus of the Company and strategic and business models, as well as all marketing and certain financial information, valuations, budgets, internal policies and procedures, organization, business plans, analyses, forecasts, billing practices, pricing information and strategies, service offering strategies, marketing plans and ideas, the identities or other information about customers, customer lists, suppliers and business partners (current and prospective), the terms of current and pending deals, sales data, and sales projections, research, research proposals, unpublished results and reports, and contact and other information regarding suppliers, vendors and consultants.  “Confidential Information” also includes all tangible and intangible property of the Company, its licensors, customers or clients, including intellectual property of the Company related to its products, business or services, which is known, used or disclosed to Employee as a consequence of employment by the Company or discovered or developed by Employee during her employment by the Company, including, but not limited to, trade secrets, designs, devices, techniques, sketches, drawings, models, inventions, improvements, ideas, concepts, discoveries, processes, methods of operation, know-how, expressions of ideas and systems, software, software source documents, microcode and source code, routines, sub-routes and algorithms, structure, sequence and organization of computer programs, specifications, and information related to research, development, manufacturing, purchasing, accounting, systems development, marketing, merchandising and selling, and other related data, whether or not patentable or copyrightable.  “Confidential Information” does not include information that (i) can be demonstrated by clear and convincing evidence to have already been in Employee’s possession from a source other than the Company, provided that such information was not acquired through any violation of law or other legal obligation, and provided that such information is not subject to another obligation of secrecy, and (ii) becomes generally known to the public or in the industry other than as a result of a disclosure in violation of an obligation to keep such information confidential.

(b)           Employee agrees that she has an obligation to and warrants that, as of Unigene’s close of business on her Separation Date, she has returned all originals and all copies of all documents and records made or compiled by her and/or made available to her or provided to her during the period of her employment with Unigene that contain Confidential Information or other business information belonging to the Company and/or any of the Released Parties, whether printed, typed, handwritten, videotaped, transmitted or transcribed on data files or on any other type of media and whether or not labeled or identified as confidential, proprietary or trade secret.  Employee further represents and warrants that she has not, and will not, directly or indirectly, at any time, now or ever in the future, download, print, copy, electronically transmit, disclose, release or retain any such information for her own personal use or any other purposes for her own benefit or the benefit of any third party.

(c)            In addition to returning all originals and copies (in whatever format) of all Confidential Information and other business information belonging to the Company and/or any of the Released Parties, Employee agrees that she has an obligation to and warrants that she has returned all Unigene property and materials including, but not limited to, credit cards, calling cards, keys, keyfobs, identification badges, files, records, samples, computer disks, laptop computers, printers, personal digital assistants, and cellular telephones.

(d)            To the extent that Employee has transferred any Confidential Information or other business information belonging to any of the Released Parties to any personal computer equipment or any other personal electronic storage device, she warrants that she has returned to Unigene true and complete copies of the same and has thereafter fully deleted and otherwise properly disposed of and appropriately removed all electronic copies of the same from her personal computer equipment or other electronic devices in a manner reasonably performed to effectively prevent the disclosure of any sensitive personal data and/or other Confidential Information belonging to the Company.

11.             Non-Disparagement.

Employee represents, warrants and agrees that she has not and shall not, now or ever in the future, publicly or privately, make, verbally or in writing, any false, disparaging, derogatory, defamatory, or otherwise inflammatory remarks about any of the Released Parties, or the conduct, operations or financial condition or business practices, policies or procedures of any of the Released Parties or the Company’s management personnel to any third party, and that she has not and will not make or solicit any comments, statements, or the like to the media or to others that may be considered derogatory or detrimental to the good name and business reputation of Unigene, its management personnel, and/or any of the other Released Parties.

 

  

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12.           Cooperation.

 

Employee agrees to cooperate reasonably and in good faith with the Company as may be necessary to respond to any inquiries that may arise with respect to matters that she was responsible for or involved with during her employment with Unigene.  She further agrees to cooperate reasonably and in good faith with the Released Parties in connection with any defense, prosecution or investigation concerning any actual or potential litigation or administrative proceeding in which she may be involved or may become involved as a party, non-party or witness.

 

 

13.           Responsibility for Taxes. 

 

Employee acknowledges and agrees that she has not been provided any advice by any of the Released Parties regarding the tax or withholding consequences of the payments and other benefits provided under this Separation Agreement under any federal, state or local tax or withholding laws or regulations.  She further agrees that she will be solely responsible for all of her own tax liabilities and consequences arising under all federal, state or withholding laws or regulations which may result from her receipt of the Severance Amount and the COBRA Subsidy and holds the Released Parties harmless from and indemnifies them for any costs, fines, interest or penalties resulting from such laws or regulations. Additionally, she agrees that the Released Parties shall not be required to pay any further sum to her, even if such tax or withholding consequences are not foreseeable to her at the time she signs this Separation Agreement or are ultimately assessed in a manner which she does not anticipate at the time she signs this Separation Agreement.

14.           Successors and Assigns.

This Separation Agreement shall not be assignable by Employee and will be binding upon and inure to the benefit of her and her heirs, administrators, representatives, and executors.  This Separation Agreement shall be freely assignable by Unigene without restriction and shall be deemed automatically assigned by the Company with Employee’s consent in the event of any sale, merger, share exchange, consolidation or other business reorganization.  This Separation Agreement shall be binding upon, and shall inure to the benefit of, Unigene’s successors and assigns.

 

	
  

	
15.

	
Consultation With Counsel; Reasonable Time to Consider Separation Agreement During Review Period; Knowing and Voluntary Acceptance of this Separation Agreement; Right and Time to Revoke; Effective Date.

(a)           Employee acknowledges that, through this writing, Unigene has advised her to consult with an attorney of her own choosing before signing this Separation Agreement, that the time afforded to her to consider the terms of this Separation Agreement provides her a full and fair opportunity to thoroughly discuss all aspects of her rights and this Separation Agreement with her attorney to the extent she elects to do so, and that she has, in fact, so consulted her attorney or knowingly waived the right to consult her attorney.

 

(b)           Employee warrants that she has carefully read and fully understands all of the terms and provisions contained in this Separation Agreement, she is physically and emotionally competent and of sound mind to execute this Separation Agreement, and she is knowingly and voluntarily signing this Separation Agreement of her own free will, act and deed.  She further represents and warrants that she has made such investigation of the facts pertaining to this Separation Agreement and all matters contained herein as she deems necessary, desirable and appropriate, and agrees that the release provided for herein shall remain in all respects effective and enforceable and not subject to termination or rescission by reason of any later discovery of new, different or additional facts.

 

(c)           Employee understands that she has twenty-one (21) calendar days from her receipt of this Separation Agreement to review and consider this Separation Agreement before signing it, except that if the twenty-first (21st) calendar day after she received this Separation Agreement falls on a Saturday, Sunday or holiday observed by Unigene, she shall have until the conclusion of the immediately next business day (the “Review Period”).  She further understands that she may use as much of the Review Period as she wishes before signing this Separation Agreement and that she may use all of the Review Period.  Employee additionally agrees that any material or immaterial changes to this Separation Agreement will not restart the running of the Review Period.

 

  

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(d)          Employee understands that she may elect to accept this Separation Agreement by sending a signed and dated and witnessed original to the attention of Unigene’s Director, Human Resources, postmarked no later than the last day of the Review Period. To the extent that Employee signs this Separation Agreement and returns it to the Company prior to the expiration of the Review Period, she warrants that she has voluntarily and knowingly waived the remainder of the Review Period and that her decision to accept a shortened period of time was not induced by any of the Released Parties through fraud, misrepresentation, a threat to withdraw the offer or alter the offer prior to the expiration of the Review Period, or by providing different terms to workers who sign releases prior the expiration of such periods.  If Employee fails to sign this Separation Agreement and return the executed original by the close of business on the last day of the Review Period, this Separation Agreement will be deemed null and void and Employee will not be entitled to receive any of the payments or other benefits offered to her hereunder.

 

(e)           Employee also understands that, following her execution of the Separation Agreement, she will have a period of seven (7) calendar days to revoke this Separation Agreement by delivering written notification of any such revocation to Unigene’s General Counsel no later than the close of business on the seventh (7th) calendar day after she signs it, except that if the seventh (7th) calendar day after she signs the Separation Agreement falls on a Saturday, Sunday or holiday observed by Unigene, she shall have until the conclusion of the immediately next business day (the “Revocation Period”).  If Employee revokes this Separation Agreement during the Revocation Period, the Separation Agreement will not be effective and enforceable and she will not be entitled to receive any of the payments or other benefits described in Section 6 and its subparagraphs above.

 

(f)           For purposes of this Separation Agreement, the “Effective Date” as used herein shall mean the first (1st) calendar day after the Revocation Period expires, provided that a notice of revocation has not first been timely served upon the Company by Employee prior to that date.

 

16.            Governing Law and Venue.

This Separation Agreement shall in all respects be interpreted, enforced and governed under the laws of the State of New Jersey, exclusive of any choice of law rules.  Any dispute concerning this Separation Agreement shall be brought in, and the parties hereby consent to the personal jurisdiction of, the state and federal courts of the State of New Jersey (to the extent that subject matter jurisdiction exists only).

17.            Severability.

Employee agrees that the terms and provisions of this Separation Agreement are severable and shall be deemed to consist of a serious of separate covenants.  She further agrees that, should any separate term, covenant, word, clause, phrase, sentence, paragraph or provision of this Separation Agreement be declared or found void, illegal, invalid or unenforceable by a court of competent jurisdiction, the same shall be modified by the court to make it enforceable and/or severed from this Separation Agreement but all other terms, covenants words, clauses, phrases, sentences, paragraphs and provisions shall remain in full force and effect.

18.            Proper Construction.

(a)           The language of all parts of this Separation Agreement shall in all cases be construed as a whole according to its fair meaning, and not strictly for or against any of the parties.

(b)           As used in this Separation Agreement, the term “or” shall be deemed to include the term “and/or” and the singular or plural number shall be deemed to include the other whenever the context so indicates or requires.

(c)           The paragraph headings used in this Separation Agreement are intended solely for convenience of reference and shall not in any manner amplify, limit, modify or otherwise be used in the interpretation of any of the provisions hereof.

(d)           The parties also agree that the terms of this Separation Agreement were reached following arms-length negotiations and shall not be construed against the drafter in any respect.

 

  

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19.           Amendments.

 

This Separation Agreement may be modified, altered or terminated only by an express written agreement between Unigene and Employee which agreement must be signed by both parties or their duly authorized agents, and expressly reference and attach a copy of this Separation Agreement in order to be effective.

20.           Entire Agreement.

This Separation Agreement comprises the entire agreement between Employee and the Company and fully supersedes any and all prior agreements or understandings between the parties pertaining to its subject matter.

 

 

 

 

 

 

IN WITNESS WHEREOF, intending to be forever legally bound hereby, the parties have executed this Separation Agreement, being twelve (12) pages in total length plus its Acknowledgment Page, on the dates set forth below:

 

	Dated:        August 13, 2012       	/s/ Jenene Thomas	 
	 	 	 	 
	
  

	
  

	 	 
	 	 	
Jenene Thomas

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	
Unigene Laboratories, Inc.

	 
	 	 	 	 
	 	 	 	 
	Dated:        August 13, 2012       	By:	/s/ Pamela Cantor	 
	 	 	
     Pamela Cantor

	 
	 	 	
     Vice President, Human Resources

	 
	 	 	
     and Business Administration

	 

 

  

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ACKNOWLEDGMENT

STATE OF           New Jersey                             )

)           SS.:

COUNTY OF       Hunterdon                               )

 

On this 13 day of August, 2012, before me, the subscriber, a notary public in and for the above County and State, appeared Jenene Thomas, known and identified to me to be the person described herein, and executed the foregoing Confidential Separation Agreement and General Release, consisting of thirteen (13) pages (including this Acknowledgment Page), duly acknowledging to me that her execution of same was knowing and voluntary and that she signed the same as her own free act and deed for the uses and purposes therein mentioned.

 

IN WITNESS WHEREOF, I have hereunto set my hand and seal at in person, the day and year aforesaid.

 

	SEAL	/s/ Justin Romanowski 	 
	 	
NOTARY PUBLIC

	 
	 	 	 
	 	[Seal of Justin E. Romanowski	 
	 	Notary Public	 
	 	State of New Jersey	 
	 	My Commision expires Jan 30, 2013]	 

 

10Converted by EDGARwiz

 

 Ex 10.1
 
 
 LOAN MODIFICATION AGREEMENT
 THIS LOAN MODIFICATION AGREEMENT (“Amendment”) is dated effective as of October ____, 2012 by and among HARTMAN BENT TREE GREEN, LLC, a Texas limited liability company (“Hartman Bent Tree”), HARTMAN RICHARDSON HEIGHTS PROPERTIES, LLC, a Texas limited liability company (“Richardson”), HARTMAN SHORT TERM INCOME PROPERTIES XX, INC., a Maryland corporation (“XX”), and HARTMAN COOPER STREET PLAZA, LLC, a Texas limited liability company (“Cooper” and, collectively with Hartman Bent Tree, Richardson and XX, the “Borrower”); and TEXAS CAPITAL BANK, NATIONAL ASSOCIATION, a national banking association (together with its successors and assigns, the “Bank”).
 RECITALS
 A.
 Bank previously made a revolving loan (the “Loan”) in the principal sum of the lesser of the Borrowing Limit and $30,000,000 evidenced, governed and secured by, inter alia, that certain Loan Agreement made and entered into as of May 10, 2012 by Bank, Richardson, XX and Cooper (the “Loan Agreement”).
 B.
 Borrower has requested that Bank (i) increase the amount of the Borrowing Base from $14,000,000 to $20,000,000; (ii) add Hartman Bent Tree as a “Borrower” under the Loan, the Loan Agreement and the other Loan Documents; (iii) add the Bent Tree Property to the Borrowing Base Properties; and (iv) permit proceeds of the Loan to be used for the Alamo Construction Project (as defined below).  Bank is willing to so modify the Loan Documents, subject to the terms and conditions set forth herein.
 AGREEMENT
 NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confessed, the parties, intending to be legally bound, hereby agree as follows:
 ARTICLE I
Recitals and Definitions
 Section 1.01.  Recitals.  The foregoing recitals are hereby incorporated into and made a part of this Amendment for all purposes.
 Section 1.02.  Definitions.  Capitalized terms used in this Amendment, to the extent not otherwise defined herein, shall have the same meaning as in the Loan Agreement.  Definitions contained in the Loan Agreement, as amended hereby, and in the other Loan Documents which identify agreements, instruments or documents shall be deemed to include all amendments and supplements to such agreements, instruments and documents and, without any obligation on the part of Bank to enter into any future amendments, modifications or supplements, all future amendments, modifications, and supplements thereto entered into from time to time.
 ARTICLE II
Amendments
 Section 2.01.  Amendments to Loan Agreement.
 

 LOAN MODIFICATION AGREEMENT – PAGE 1
 1253887-v6
 2477-0194
 

 
 

 

 (a)
 Section 1.1 of the Loan Agreement is hereby amended by adding the following definitions in their appropriate alphabetical order:
 “ʻAffidavit of Commencement’ means the affidavit in form and substance as set forth on Exhibit A attached to the October 2012 Loan Modification Agreement.”
 “ʻAffidavit of Completion’ means the affidavit in form and substance as set forth on Exhibit B attached to the October 2012 Loan Modification Agreement.”
 “ʻAlamo Construction Project’ means the construction of the Alamo Improvements in accordance with the Alamo Lease, the Approved Budget, the Plans, the Construction Schedule and all Legal Requirements.”
 “ʻAlamo Construction Reserve’ means a portion of the Loan in the Alamo Construction Reserve Amount, which amount will be used exclusively for expenditures in connection with the Alamo Construction Project.”
 “ʻAlamo Construction Reserve Amount’ means $2,000,000.”
 “ʻAlamo Improvements’ means any and all improvements constructed pursuant to the Alamo Lease and the Plans.”
 “ʻAlamo Lease’ means that certain lease agreement among Iced Tea with Lemon, LLC dba Alamo Draft House Cinema and Richardson, a copy of which is attached to the October 2012 Loan Modification Agreement as Exhibit C.”
 “ʻApproved Budget’ means a budget and cost itemization prepared by Borrower, and approved in writing by Bank, specifying the cost by item of all labor, materials, and services necessary for the completion of the Alamo Construction Project.  A copy of the Approved Budget is attached to the October 2012 Loan Modification Agreement as Exhibit D.”
 “ʻArchitect’ means Borrower’s architect (and/or engineer) licensed in the State of Texas, acceptable to Bank, and named in Exhibit E attached to the October 2012 Loan Modification Agreement.”
 “ʻArchitectural Contract’ means a written agreement between Borrower and Architect for architectural services pertaining to construction of the Alamo Improvements, as applicable.”
 “ʻBent Tree Deed of Trust’ means that certain Deed of Trust, Security Agreement, Financing Statement and Absolute Assignment of Rents dated effective as of October ____, 2012 covering the Bent Tree Property to secure payment and performance of the Indebtedness and Obligation, as such may be amended from time to time.” 
 “ʻBent Tree Land’ means the Land as defined in the Bent Tree Deed of Trust.”
 

 LOAN MODIFICATION AGREEMENT – PAGE 2
 

 
 

 

 “ʻBent Tree Property’ means the Mortgaged Property as defined in the Bent Tree Deed of Trust.” 
 “ʻBorrower’s Deposit’ means such cash sums as Bank may reasonably deem necessary in accordance with Section 2.14 hereof.”
 “ʻCommencement Date’ means the date of the commencement of the Alamo Construction Project.”
 “ʻCompletion’ means the full and complete performance of all work and services (including all punch list items) under the Alamo Construction Project, including obtaining a certificate of occupancy, occupancy by the tenant under the Alamo Lease and, to the extent required under the Alamo Lease, the tenant paying full rent thereunder.”
 “ʻCompletion Date’ means July 15, 2013.”
 “ʻConsent to Demolition Agreement’ means that certain letter agreement entered into by Borrower and Bank dated September 21, 2012 relating to the demolition and debris removal by Richardson of Building 14 of the Richardson Heights Shopping Center as attached to the October 2012 Loan Modification Agreement as Exhibit F.”
 “ʻConstruction Contract’ means each agreement made or entered into by Borrower related in any way to the Alamo Construction Project.”
 “ʻConstruction Schedule’ means the schedule for the Alamo Construction Project attached to the October 2012 Loan Modification Agreement as Exhibit G.”
 “ʻContractor’ means each Person with whom Borrower makes or enters into a Construction Contract.”
 “ʻExtended Maturity Date’ has the meaning set forth in Section 2.14(n) of this Agreement.” 
 “ʻExtension Option’ has the meaning set forth in Section 2.14(n) of this Agreement.”
 “ʻHartman Bent Tree’ means Hartman Bent Tree Green, LLC, a Texas limited liability company.”
 “ʻInitial Maturity Date’ means May 9, 2015.”
 “ʻOctober 2012 Loan Modification Agreement’ means that certain Loan Modification Agreement dated effective as of October [____], 2012 by and among Hartman Bent Tree, Richardson, XX, Cooper, and Bank.”
 “ʻPlans’ means the final working drawings and specifications for the construction of the Alamo Improvements (including soil reports and engineering calculations) prepared by the Architect or another Person and as modified or 
 

 LOAN MODIFICATION AGREEMENT – PAGE 3
 

 
 

 

 supplemented from time to time and approved by Bank, Borrower, the tenant of the Alamo Lease, and, to the extent necessary, by each Governmental Authority.”
 (b)
 Section 1.1 of the Loan Agreement is hereby amended by amending and restating the following definitions in their entirety:
 “ʻBorrowing Base’ means the amount most recently determined and designated by the Bank as the Borrowing Base in accordance with Section 2.13 hereof, as such Borrowing Base is reduced or increased in accordance with Section 2.13 hereof.  The Borrowing Base under Section 2.13 is, subject to the completion by Borrower satisfactory to Bank of all of the conditions precedent under the October 2012 Loan Modification Agreement, deemed to be, as of the date of the October 2012 Loan Modification Agreement, $18,000,000 plus the Alamo Construction Reserve Amount, provided, however, if Richardson shall sell the McDonald’s Pad Site, the Borrowing Base shall be automatically reduced to $17,500,000 plus the Alamo Construction Reserve Amount.”
 “ʻBorrowing Base Properties’ means the real property and improvements identified on Exhibit H to the October 2012 Loan Modification Agreement provided such real property and improvements are secured by a first and prior deed of trust liens encumbering such real property and improvements satisfactory to Bank.” 
 “ʻBorrowing Limit’ means the lesser of (a) the Borrowing Base and (ii) sixty five percent (65.0%) of the appraised value of the Mortgaged Property.”
  “ʻDeed of Trust’ means one or more Deeds of Trust, Security Agreement, Financing Statement and Absolute Assignment of Rents covering the Property to secure payment and performance of the Indebtedness and Obligation, as such may be amended from time to time, including without limitation the Bent Tree Deed of Trust.”
 “ʻLand’ means the parcels of real property described in Exhibit I attached to the October 2012 Loan Modification Agreement.”
 “ʻMaturity Date’ means the Initial Maturity Date, provided, if Borrower timely satisfies the conditions to extend the Initial Maturity Date pursuant to Section 2.15 of this Agreement, then the Maturity Date shall be extended to the Extended Maturity Date.”
 (c)
 The following Section 2.14 of the Loan Agreement is hereby added to read as follows:
 “2.14
 Alamo Construction Project.  Pursuant to the terms of the Alamo Lease, Borrower has commenced the Alamo Construction Project.  Bank consented to the demolition portion thereof pursuant to the terms of the Consent to Demolition Agreement.  A copy of the Approved Budget is attached hereto as Exhibit D; and a copy of the Construction Schedule is attached hereto as Exhibit G.  Borrower desires to use proceeds of the Loan for the Alamo Construction Project and, in connection therewith, agrees to the following: 
 

 LOAN MODIFICATION AGREEMENT – PAGE 4
 

 
 

 

 (a)
 Conditions Precedent.  As conditions precedent to any Advance in connection with the Alamo Construction Project, in addition to all other requirements herein, Borrower shall have satisfied the following requirements unless otherwise waived by Bank:
 (i)
 There shall exist no Default or Event of Default;
 (ii)
 The representations and warranties made in this Agreement shall be true and correct on and as of the date of such Advance, and the request for such Advance shall constitute a representation and warranty by Borrower that such representations and warranties are true and correct at such time;
 (iii)
 Such Advance shall come exclusively from the Alamo Construction Reserve in an amount not to exceed the Alamo Construction Reserve Amount; all prior Advances under the Alamo Construction Reserve shall have been used exclusively in connection with the Alamo Construction Project; at the time of any such Advance, an amount sufficient to fund the requested Advance shall be available in the Alamo Construction Reserve; and no other Loan funds shall be used in connection with the Alamo Construction Project;
 (iv)
 The Bank shall have received and approved the Plans, each Construction Contract, each Contractor and any applicable bonding and insurance requirements;
 (v)
 Until such time as Borrower shall provide to Bank a certificate of occupancy and Bank has determined that Completion of the Alamo Construction Project has occurred, Borrower shall maintain insurance in connection with the Alamo Construction Project as required by Exhibit J as attached to the October 2012 Loan Modification Agreement;
 (vi)
 Upon the request of Bank, a down date endorsement to the Title Policy (or if an endorsement is not available, a letter from the Title Company) showing “nothing further” of record affecting the property subject to the Alamo Construction Project shall be obtained;
 (vii)
 The Bank shall be satisfied that the Alamo Construction Project is being performed in a timely and workmanlike manner in accordance with the Plans, the Approved Budget, the Construction Schedule, the Alamo Lease, and all Legal Requirements; 
 (viii)
 The Alamo Improvements shall not have been materially damaged by fire or other casualty; and
 

 LOAN MODIFICATION AGREEMENT – PAGE 5
 

 
 

 

 (ix)
 Bank shall have received such other documents, instruments, certificates and information as Bank and its counsel may reasonably require.
 Each Advance hereunder shall be deemed to be a representation and warranty by the Borrower to Bank that the conditions specified in this Section 2.14(a) have been satisfied on and as of the date of the applicable Advance or withdrawal.
 (b)
 Construction Contracts; Subordination.  Borrower shall not become party to any Construction Contract in excess of $10,000, except upon such terms and with such parties as shall be approved in writing by Bank.  No approval by Bank of any Construction Contract shall make Bank responsible for the adequacy, form or content of any Construction Contract.  Borrower authorizes Bank, at its option, to contact each Contractor and/or subcontractor or supplier employed to provide material or labor for the construction of the Alamo Improvements.  Upon the request of Bank, Borrower shall cause to be executed such subordination agreements with respect to the Construction Contracts as Bank may reasonably require.
 (c)
 Construction of the Alamo Improvements.  Borrower shall cause construction of the Alamo Improvements to be performed with diligence and continuity in a good and workmanlike manner and in accordance with sound building and engineering practices, all applicable Legal Requirements, the Plans, the Approved Budget, the Construction Schedule, and the requirements of the Alamo Lease.  Borrower shall not permit cessation of work on the Alamo Improvements for a period in excess of thirty (30) days, except cessation for not more than sixty (60) days in the aggregate caused by acts of God or other causes not within the control of Borrower, without the prior written consent of Bank and shall cause Completion of the Alamo Improvements on or before the Completion Date, free and clear of all Liens or other claims for material supplied and for labor or services performed in connection with construction of the Alamo Improvements, except for Liens in favor of Bank and Permitted Encumbrances.
 (d)
 Storage of Materials.  Borrower shall cause all materials supplied for, or intended to be utilized in, the construction of the Alamo Improvements, but not affixed to or incorporated into the Alamo Improvements, to be stored on the site of the Alamo Construction Project or at such other location as may be approved by Bank in writing, with adequate safeguards, as required by Bank.
 (e)
 Inspection of the Property.  Borrower shall, at the expense of Borrower, permit the Bank and its designees to enter upon the Alamo Construction Project property, and any location where materials intended to be utilized in the Alamo Construction Project are stored, for the purpose of inspecting the Alamo Construction Project and such materials at all reasonable times.
 

 LOAN MODIFICATION AGREEMENT – PAGE 6
 

 
 

 

 (f)
 Surveys.  Upon substantial Completion, Borrower shall deliver to Bank an “as-built” Survey which shall be in form and substance satisfactory to the Bank.
 (g)
 Monthly Reporting.  Borrower shall furnish to Bank, in form and substance satisfactory to Bank, on or before the 5th day of each month until Completion, 
 (i)
 a list of contractors and subcontractors involved in the construction of the Alamo Improvements; 
 (ii)
 a reconciliation of the Approved Budget; and
 (iii)
 a written report briefly describing the status of the construction, including the timing of construction in relation to the Construction Schedule.
 (h)
 Licenses and Permits.  Upon the request of Lender, Borrower shall provide to Bank copies of the permits and licenses associated with the Alamo Construction Project.
 (i)
 Borrower’s Deposit.  If from time to time Bank reasonably determines that the portion of the Loan allocable to the construction of the Alamo Improvements will not be sufficient for payment in full of costs of labor, materials and services required for the construction of the Alamo Improvements, other costs and expenses required to be paid in connection with any Legal Requirements, and the requirements of the Alamo Lease, then Borrower shall, on request of Bank, make a Borrower’s Deposit with Bank in the amount of the shortfall as estimated by Bank.  Bank may advance all or a portion of Borrower’s Deposit prior to any portion of the Loan proceeds in connection with the Alamo Construction Project. 
 (j)
 Direct Disbursement and Application by Bank.  After an Event of Default has occurred, Bank shall have the Right, but not the obligation, to disburse and apply directly the proceeds of the Loan to the satisfaction of any of Borrower’s obligations hereunder.  Borrower hereby assigns and pledges the proceeds of the Loan and Borrower’s Deposit and grants therein a security interest to Bank for such purposes.  Bank may advance and incur such expenses as Bank reasonably deems necessary to preserve Bank’s first priority lien therein, and such expenses shall be secured by the Loan Documents and payable to Bank upon demand.
 (k)
 Affidavits of Commencement and Completion.  Borrower shall, within ten (10) days after the Commencement Date, but not before construction of the Alamo Improvements has actually begun, file or cause to be filed in the appropriate records of the county in which the property subject to the Alamo Construction Project is situated, an Affidavit of Commencement, duly executed by Borrower and Contractor.  Within ten (10) days after construction of the Alamo Improvements has 
 

 LOAN MODIFICATION AGREEMENT – PAGE 7
 

 
 

 

 been completed, Borrower shall file or cause to be filed in the appropriate records of the county in which the property subject to the Alamo Construction Project is situated an Affidavit of Completion, duly executed by Borrower.
 (l)
 Assignment of Construction Contracts and Architectural Contracts.  As additional security for the payment and performance of the Indebtedness and the Obligations, Borrower hereby transfers and assigns to Bank all of Borrower’s Right, title and interest, in, to and under (but not any of its obligations under) each Construction Contract and each Architectural Contract, and hereby further represents and warrants to and covenants and agrees with Bank as follows:
 (i)
 The copy of each Construction Contract and each Architectural Contract it will furnish to Bank is a true and complete copy thereof, including all amendments thereto, if any, and that Borrower’s interest therein is not subject to any claim, setoff or encumbrance;
 (ii)
 Neither this assignment nor any action by Bank shall constitute an assumption by Bank of any obligations under any Construction Contract or any Architectural Contract, and Borrower shall continue to perform and to be liable for all obligations of Borrower under each Construction Contract and each Architectural Contract.  Borrower agrees to indemnify and hold Bank harmless from and against any loss, cost, liability or expense (including, but not limited to, reasonable attorneys’ fees) resulting from any failure of Borrower to so perform;
 (iii)
 Bank shall have the Right at any time (but shall have no obligation) to take in its name or in the name of or on behalf of Borrower such action as Bank may at any time determine to be necessary or advisable to cure any default under any Construction Contract or any Architectural Contract or to protect the Rights of Borrower or Bank thereunder.  Bank shall incur no liability if any action so taken by it or in its behalf shall prove to be inadequate or invalid, and Borrower agrees to indemnify and hold Bank harmless from and against any loss, claim, liability, cost and expense (including, but not limited to, reasonable attorneys’ fees) incurred as a result of or in connection with any such action;
 (iv)
 Borrower hereby irrevocably constitutes and appoints Bank as Borrower’s attorney-in-fact, in Borrower’s or Bank’s name, to enforce all Rights of Borrower under each Construction Contract and each Architectural Contract;
 (v)
 Prior to the occurrence of an Event of Default, Borrower shall have the Right to exercise its Rights as owner under each Construction Contract and each Architectural Contract, provided that Borrower shall not cancel or amend any 
 

 LOAN MODIFICATION AGREEMENT – PAGE 8
 

 
 

 

 Construction Contract or any Architectural Contract or do or suffer to be done any act which would impair the security constituted by this assignment without the prior written consent of Bank; 
 (vi)
 Upon the request of Bank, Borrower shall furnish such assignments in connection with each Construction Contract and Architectural Contract as Bank shall reasonably require; and
 (vii)
 This assignment shall inure to the benefit of Bank and its successors and assigns.
 (m)
 Assignment of Plans.  As additional security for the payment and performance of the Indebtedness and the Obligations, Borrower hereby transfers and assigns to Bank all of Borrower’s Right, title and interest in and to the Plans and hereby represents and warrants and covenants and agrees with Bank as follows:
 (i)
 Each schedule of the Plans delivered or to be delivered to Bank is and shall be a complete and accurate description of the Plans;
 (ii)
 The Plans are and shall be complete and adequate for the construction of the Alamo Improvements and there have been no modifications thereof except as described in a schedule attached to the Plans; the Plans shall not be amended without the prior written consent of Bank;
 (iii)
 Bank may use the Plans for any purpose relating to the Alamo Improvements, including but not limited to inspections of construction and the completion of the Alamo Improvements;
 (iv)
 Bank’s acceptance of this assignment shall not constitute approval of the Plans by Bank; Bank has no liability or obligation to Borrower or any other party in connection with the Plans and no responsibility for the adequacy thereof or for the construction of the Alamo Improvements contemplated by the Plans; Bank has no duty to inspect the Alamo Improvements, and if Bank should inspect the Alamo Improvements, Bank shall have no liability or obligation to Borrower or any other party arising out of such inspection; no such inspection nor any failure by Bank to make objections after any such inspection shall constitute a representation by Bank that the Alamo Improvements are in accordance with the Plans or any other requirement or constitute a waiver of Bank’s Right thereafter to insist that the Alamo Improvements be constructed in accordance with the Plans or any other requirement; and
 

 LOAN MODIFICATION AGREEMENT – PAGE 9
 

 
 

 

 (v)
 This assignment shall inure to the benefit of Bank and its successors and assigns.
 (n)
 Alamo Construction Project Events of Default.  In addition to the Events of Default listed in Article Six and in the other Loan Documents, the occurrence of any one or more of the following shall constitute an Event of Default:
 (i)
 A determination by Bank of any failure of the construction of any part of the Alamo Improvements, or of any of the materials or fixtures supplied for incorporation into the construction of the Alamo Improvements, to comply with the Plans, any Legal Requirement, or the Alamo Lease in any material respect.
 (ii)
 The failure to achieve Completion in accordance with the Construction Schedule and on or before the Completion Date.
 (iii)
 The actual costs for the Alamo Construction Project evidenced by the Plans exceed the sum of (a) the cost of the Project set forth in the Approved Budget, plus (b) the Borrower’s Deposit.
 (iv)
 A default arises under the Alamo Lease and such default continues after any applicable grace period specified therein or the Alamo Lease is terminated or otherwise is no longer in full force and effect.
 (o)
 Alamo Lease.  Borrower will cause Richardson to perform and observe all of its agreements and covenants under and pursuant to the Alamo Lease and the Alamo Lease shall not be modified, amended, terminated or canceled without the prior written consent of Bank. 
 (p)
 No Liability of Bank Regarding the Alamo Construction Project.  Bank shall have no liability, obligation or responsibility with respect to the construction or completion of the Alamo Improvements or the Alamo Construction Project.  Bank shall not be liable for the performance or default of Borrower, any Architect, any Contractor or any other party, or for any failure to construct, complete, protect or insure the Alamo Improvements, or for the payment of costs of labor, materials or services supplied for the construction or completion of the Alamo Improvements, or for the performance of any obligation of Borrower or any other Obligated Party.  Nothing herein or in any other Loan Document, nor any other action taken by Bank, including, without limitation, any Advance made by Bank or acceptance of any document or instrument by Bank, shall be construed as a representation or warranty, express or implied, to any party by Bank.  Further, Bank shall not have, and has not assumed, and by its execution and delivery of this Agreement hereby expressly disclaims, any liability or responsibility for the payment or performance of any indebtedness or obligations of Borrower, and no term or condition hereof, or of any of the Loan 
 

 LOAN MODIFICATION AGREEMENT – PAGE 10
 

 
 

 

 Documents, shall be construed otherwise.  Bank has no liability or obligation in connection with the Alamo Improvements, the Alamo Construction Project and Loan Documents except to disburse Loan proceeds as herein agreed.
 Section 2.02.  Amendment to Environmental Indemnity Agreement.  Recital A to that certain Environmental Indemnity Agreement dated effective as of May 10, 2012 executed by Borrower and Bank is hereby amended and restated to read in its entirety as follows:
 “A.
 Lender made a (‘Loan’) to Indemnitor under and pursuant to the terms and provisions of that certain Loan Agreement between Lender and Borrower dated effective as of May 10, 2012 (as amended from time to time, the ‘Loan Agreement’) and evidenced by that certain Promissory Note (as amended from time to time, the ‘Note’) executed by Indemnitor and payable to the order of Lender in the original principal amount of THIRTY MILLION AND NO/100 DOLLARS ($30,000,000.00), secured by, among other things, one or more Deeds of Trust, Security Agreement, Financing Statement and Absolute Assignment of Rents (collectively, the ‘Deed of Trust’) which Indemnitor (or one of them) has executed and delivered or from time to time executes and delivers to John Hudgins, as Trustee (‘Trustee’), for the benefit of Lender, covering certain real property (‘Land’) described in Exhibit I attached to the October 2012 Loan Modification Agreement (as defined in the Loan Agreement), together with the Improvements located thereon and certain Personalty described in the Deed of Trust (the Land, together with said Improvements, Personalty and other property described in the Deed of Trust being referred to herein as the ‘Mortgaged Property’) (the Note, the Deed of Trust, the Loan Agreement, this Agreement and all other documents or instruments evidencing, securing or pertaining to the Loan, as may be amended from time to time, shall be collectively referred to as the ‘Loan Documents’); and”
 ARTICLE III
 Conditions
 Section 3.01.  Conditions Precedent.  The effectiveness of this Amendment is subject to the satisfaction of the following conditions precedent, in form and substance satisfactory to Bank, unless specifically waived in writing by Bank:
 (a)
 Bank shall have received this Amendment originally executed and delivered by Borrower; 
 (b)
 Bank shall have received an Amended and Restated Note originally executed and delivered by Borrower;
 (c)
 Bank shall have received the Bent Tree Deed of Trust executed by Borrower;
 (d)
 Bank shall have received an Assignment of Rents executed by Borrower;
 (e)
 Bank shall have received an attorney invoice and representation letter executed by Borrower;
 (f)
 Bank shall have received an authority certificate executed by an officer of Borrower; 
 

 LOAN MODIFICATION AGREEMENT – PAGE 11
 

 
 

 

 (g)
 Bank shall have received each of the following with respect to the property described in the Bent Tree Deed of Trust referenced in provision (c) above:
 (i)
 copy of the existing owner’s policy;
 (ii)
 mortgagee title policy for the Bent Tree Property from a title company satisfactory to Bank;
 (iii)
 tax certificate;
 (iv)
 survey;
 (v)
 evidence of property and liability insurance;
 (vi)
 flood certificate;
 (vii)
 Phase I environmental report;
 (viii)
 property condition report;
 (ix)
 certificate of occupancy;
 (x)
 rent roll;
 (xi)
 copies of lease agreements;
 (xii)
 tenant estoppels executed by the tenants; 
 (xiii)
 subordination, non-disturbance and attornment agreements executed by the tenants; and
 (xiv)
 an appraisal of the Bent Tree Property indicating an appraised value satisfactory to Bank in all respects;
 (h)
 Bank shall have received a copy of the Plans, the Approved Budget, the Construction Schedule, each Contractor’s Agreement, and the Architect’s agreement;
 (i)
 Bank shall have received from Borrower such UCC lien searches as Bank may require;
 (j)
 The representations and warranties contained herein, in the Loan Agreement, as amended hereby, and in each other Loan Document, as amended of even date herewith, shall be true and correct as of the date hereof, as if made on the date hereof;
 (k)
 No Default or Event of Default shall have occurred and be continuing;
 (l)
 All corporate and limited partnership proceedings taken in connection with the transactions contemplated by this Amendment and all documents, instruments and other legal matters incident thereto, shall be satisfactory to Bank; 
 (m)
 Bank shall have received from Borrower a renewal fee in the amount of $60,000;
 

 LOAN MODIFICATION AGREEMENT – PAGE 12
 

 
 

 

 (n)
 Bank shall have received from Borrower payment of all expenses incurred by Bank to date, including attorneys’ fees and costs; and
 (o)
 Bank shall have received such other documents, instruments or certificates as Bank and its counsel may reasonably require, including such documents as Bank in its sole discretion deems necessary or appropriate to effectuate the terms and conditions of this Amendment and the Loan Documents.
 ARTICLE IV
Ratifications, Representations and Warranties
 Section 4.01.  Ratifications.  The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions set forth in the Loan Agreement and the other Loan Documents, and, except as expressly modified and superseded by this Amendment, the terms and provisions of the Loan Agreement and the other Loan Documents are ratified and confirmed and shall continue in full force and effect.  The Loan Agreement, as amended, and the other Loan Documents, as amended, shall continue to be legal, valid, binding and enforceable in accordance with their respective terms.
 Section 4.02.  Representations and Warranties.  Borrower hereby represents and warrants to Bank as follows:
 (a)
 the execution, delivery and performance of this Amendment and any and all other Loan Documents executed and/or delivered in connection herewith have been authorized by all requisite action on the part of Borrower and do not and will not conflict with or violate any provision of any applicable law, the organizational documents of, or any agreement, document, judgment, license, order or permit applicable to or binding upon any of the Borrower, or the Collateral; and no consent, approval, authorization or order of and no notice to or filing with, any court or governmental authority or third person is required in connection with the execution, delivery or performance of this Amendment or to consummate the transactions contemplated hereby;
 (b)
 the representations and warranties contained in the Loan Agreement, as amended, and in each of the other Loan Documents, as amended, are true and correct on and as of the date hereof as though made on and as of the date hereof, except to the extent such representations and warranties relate to an earlier date;
 (c)
 Borrower is in full compliance with all covenants and agreements contained in the Loan Agreement, as amended, and in each of the other Loan Documents, as amended; 
 (d)
 Borrower acknowledges and agrees that Bank is in full compliance with all covenants and agreements contained in the Loan Agreement, as amended, and in each of the other Loan Documents, as amended; 
 Section 4.03.  Modification.  Borrower acknowledges and agrees that (a) this Amendment shall not constitute a novation or otherwise extinguish the Indebtedness and Obligations evidenced by the Loan Agreement, as amended, or the other Loan Documents, as amended; (b) the Indebtedness shall be paid in accordance with the terms and conditions of the Loan Agreement, as amended, and the other Loan Documents, as amended; (c) the current unpaid principal balance of the Note is $[_____________]; and (d) Borrower has no right of offset, defense, or counterclaim to the payment and performance of the Indebtedness and Obligations under the Loan Agreement, as amended, or any other Loan Document, as 
 

 LOAN MODIFICATION AGREEMENT – PAGE 13
 

 
 

 

 amended.  Borrower hereby acknowledges, ratifies, reaffirms, grants, and re-grants to Bank a first priority, perfected lien and security interest in the Collateral to secure the payment and performance of the Indebtedness and Obligations, which security interest is and shall remain in full force and effect and binding on Borrower, and Borrower acknowledges and agrees that the liens and security interests of each Deed of Trust are valid and subsisting liens and security interests and are superior to all other liens and security interests.  Nothing herein contained shall affect or impair the validity or priority of the liens and security interests under each Deed of Trust and the other Loan Documents.  Except as otherwise specifically set forth herein, Bank has made no commitment, either express or implied, to extend the Maturity Date, or to provide Borrower with any financing, beyond the Maturity Date, it being expressly acknowledged and agreed to by Borrower that the Indebtedness shall be due and payable in full on the Maturity Date.
 Section 4.04.  Joinder of Hartman Bent Tree.  Hartman Bent Tree hereby makes each representation and warranty set forth in Article Three of the Loan Agreement to the same extent as each other Borrower, and hereby agrees, as of the date first above written, (a) to be bound as a Borrower by all of the terms and provisions of the Loan Agreement and the other Loan Documents to the same extent of each of the other Borrowers and (b) to comply with and be subject to all of the terms, conditions, covenants, agreements and obligations set forth in the Loan Agreement and the other Loan Documents.  Hartman Bent Tree further agrees, as of the date first above written that each reference in the Loan Agreement to a “Borrower” shall also mean and be a reference to Hartman Bent Tree.
 ARTICLE V
Miscellaneous
 Section 5.01.  Survival of Representations and Warranties.  All representations and warranties made in this Amendment, the Loan Agreement or any other document or documents relating thereto, including, without limitation, any Loan Document furnished in connection with this Amendment, shall survive the execution and delivery of this Amendment and the other Loan Documents, and no investigation by Bank or any closing shall affect the representations and warranties or the right of Bank to rely upon them.
 Section 5.02.  Reference to Loan Agreement and the Other Loan Documents.  Each of the Loan Documents, including the Loan Agreement and any and all other agreements, documents or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Loan Agreement and the other Loan Documents, as amended hereby, are hereby amended so that any reference in such Loan Documents to the Loan Agreement or any other Loan Document shall mean a reference to the Loan Agreement and the other Loan Documents as amended hereby or of even date herewith, and as may be further amended from time to time.  
 Section 5.03.  Expenses of Bank.  As provided in the Loan Agreement, Borrower agrees to pay on demand all reasonable costs and expenses incurred by Bank in connection with the preparation, negotiation and execution of this Amendment and the other Loan Documents executed pursuant hereto and any and all amendments, modifications, and supplements hereto, including, without limitation, the reasonable costs and fees of Bank’s legal counsel, and all reasonable costs and expenses incurred by Bank in connection with the enforcement or preservation of any rights under the Loan Agreement, as amended hereby, or any other Loan Document.
 Section 5.04.  RELEASE.  BORROWER HEREBY ACKNOWLEDGES THAT IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO PAY AND PERFORM THE INDEBTEDNESS AND 
 

 LOAN MODIFICATION AGREEMENT – PAGE 14
 

 
 

 

 OBLIGATIONS UNDER THE LOAN DOCUMENTS OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM THE BANK.  BORROWER HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES THE BANK, ITS PREDECESSORS, AGENTS, EMPLOYEES, ATTORNEYS, SUCCESSORS AND ASSIGNS (COLLECTIVELY, THE “RELEASED PARTIES”), FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED, WHICH THE BORROWER MAY NOW OR HEREAFTER HAVE AGAINST THE RELEASED PARTIES (OR ANY OF THEM), IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY OF THE OBLIGATIONS, INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE LOAN AGREEMENT, AS AMENDED, OR OTHER LOAN DOCUMENTS, AS AMENDED, AND NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT.  WITHOUT LIMITING ANY PROVISION OF THIS AMENDMENT OR ANY OTHER LOAN DOCUMENT, IT IS THE EXPRESS INTENTION OF THE PARTIES HERETO THAT THE RELEASED CLAIMS INCLUDE ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER (INCLUDING ATTORNEYS’ FEES) ARISING OUT OF OR RESULTING FROM THE SOLE CONTRIBUTORY OR ORDINARY NEGLIGENCE OF THE RELEASED PARTIES (OR ANY ONE OF THEM).
 Section 5.05.  Severability.  Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable in such jurisdiction.
 Section 5.06.  APPLICABLE LAW.  THIS AMENDMENT AND, EXCEPT AS OTHERWISE SET FORTH THEREIN, THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT THE BANK SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.
 Section 5.07.  Successors and Assigns.  This Amendment is binding upon and shall inure to the benefit of the Bank, the Borrower, and their respective successors and assigns, except the Borrower may not assign or transfer any of its rights or obligations hereunder without the prior written consent of Bank.
 Section 5.08.  Counterparts; Facsimiles.  This Amendment may be executed in one or more counterparts, each of which when so executed shall be deemed to be an original, but all of which when taken together shall constitute one and the same instrument.  Delivery of an executed counterpart of this Amendment by facsimile or portable document format (pdf) shall be equally as effective as delivery of an executed original counterpart and shall constitute a covenant to deliver an executed original counterpart, but the failure to do so shall not affect the validity, enforceability and binding effect of this Amendment.  
 Section 5.09.  Further Assurances.  Borrower shall execute and deliver, or cause to be executed and delivered, to the Bank such documents and agreements, and shall take or cause to be taken such actions as the Bank may, from time to time, reasonably request to carry out the terms of this Amendment and the other Loan Documents.
 

 LOAN MODIFICATION AGREEMENT – PAGE 15
 

 
 

 

 Section 5.10.  Headings.  The headings, captions, and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.
 Section 5.11.  ENTIRE AGREEMENT.  THIS AMENDMENT, THE LOAN AGREEMENT, THE NOTE, AND THE OTHER LOAN DOCUMENTS, EACH AS AMENDED, REPRESENT THE ENTIRE AGREEMENT AMONG THE PARTIES RELATED TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
 Section 5.12.  Amendment as a Loan Document.  This Amendment constitutes a Loan Document and any failure of the Borrower to comply with the terms and conditions of this Amendment shall result in an Event of Default under the Loan Agreement.
 [Remainder of page intentionally left blank.]
 

 LOAN MODIFICATION AGREEMENT – PAGE 16
 

 
 

 

 IN WITNESS WHEREOF, the parties have executed this Amendment to be effective as of the date first written above.
 BANK: 
 TEXAS CAPITAL BANK, NATIONAL ASSOCIATION
 By:
 Elizabeth W. Falco, SVP Corporate Banking
 BORROWER:
 HARTMAN RICHARDSON HEIGHTS PROPERTIES, LLC, 
 a Texas limited liability company 
 By:
 Allen R. Hartman, President
 HARTMAN SHORT TERM INCOME PROPERTIES XX, INC., 
 a Maryland corporation
 By:
 Allen R. Hartman, President
 HARTMAN COOPER STREET PLAZA, LLC, 
 a Texas limited liability company
 By:
 Allen R. Hartman, President
 

 HARTMAN BENT TREE GREEN, LLC, 
 a Texas limited liability company
 By:
 Allen R. Hartman, President
 

 

 

 LOAN MODIFICATION AGREEMENT – SIGNATURE PAGE
 

 
 

 

 EXHIBIT A
 AFFIDAVIT OF COMMENCEMENT
 BEFORE ME, the undersigned authority, on this day personally appeared ______, the ______ of ______, a ______ (“Owner”) and ______, the ______ of ______ (“Contractor”), known to me to be the persons (collectively, “Affiants”) whose names are subscribed below, and who, being by me first duly sworn, did each on his or her oath state as follows:
 A.
 Owner.
 The name and address of Owner is:
 

 B.
 Contractor.
 The name and address of Contractor is:
 

 C.
 Original Contractors.  The name and address of each original contractor (other than Contractor) with Owner, presently known, after diligent inquiry, to the Affiants, Owner or Contractor, that is furnishing, or will furnish, labor, service, or materials (including specifically fabricated materials), for the construction of the Improvements, and the nature of such labor, service or materials (including specifically fabricated materials), have been provided to Owner and Texas Capital Bank, National Association.
 D.
 Property.  Owner is the owner of the real property (the “Land”) situated in ______ County, Texas, more particularly described as follows:
 See Exhibit A attached hereto and incorporated herein by reference for all purposes.
 E.
 Commencement Date.  Work, as contemplated by Texas Property Code §53.124(c)(4), on the Alamo Improvements actually commenced on ______, 20__.
 F.
 Improvements.  The improvements (“Improvements”), which are being, or will be, constructed on the Land are generally described as follows:
 ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
 G.
 Affidavit.  This Affidavit of Commencement has been jointly made by Owner and Contractor by and through an authorized representative of each, the same being the Affiants, and may be recorded by any person with the County Clerk of the county in which the Land is located, whereupon it shall be deemed to have been jointly filed by Owner and Contractor.
 [Signature Page Follows]
 

 LOAN MODIFICATION AGREEMENT – EXHIBIT A
 

 
 

 

 DATED this ______ day of ______, 20__.
 AFFIANTS:
 

 

 

 Print Name:  
 who is an authorized representative of Owner
 

 

 

 Print Name:  
 who is an authorized representative of Contractor
 (OWNER)
 SUBSCRIBED AND SWORN BEFORE ME, on this the ___ day of ______, 20__.
 

 

 Notary Public, State of Texas
 (CONTRACTOR)
 SUBSCRIBED AND SWORN BEFORE ME, on this the ___ day of ______, 20__.
 

 

 Notary Public, State of Texas
 

 

 LOAN MODIFICATION AGREEMENT – EXHIBIT A
 

 
 

 

 EXHIBIT B
 AFFIDAVIT OF COMPLETION
 

 BEFORE ME, the undersigned authority, on this day personally appeared ______ (“Affiant”), the ______ of ______, a ______ (“Owner”), known to me to be the person whose name is subscribed below, and who, being by me first duly sworn, did on his oath state as follows:
 A.
 Owner.  The name and address of Owner is:
 

 B.
 Contractor.  The name and address of the original contractor (“Contractor”) is:
 

 C.
 Improvements.  Certain improvements (“Improvements”) were furnished under an original contract (“Contract”) between Owner and Contractor, which Improvements are generally described as follows:
 ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
 D.
 Real Property.  Owner is the owner of the real property (“Real Property”) situated in [______] County, Texas, on which the Improvements were constructed and are located, which Real Property is more particularly described as follows:
 See Exhibit A attached hereto and incorporated herein by reference for all purposes.
 E.
 Completion.  The Improvements under the Contract between Owner and Contractor have been completed within the meaning of Texas Property Code §53.106, and the date of such completion was ______, 20__ (“Date of Completion”).
 F.
 Affiant.  The Affiant is an authorized representative of Owner and has been duly authorized to execute this Affidavit of Completion and cause it to be recorded with the County Clerk of the county in which the Real Property is situated.
 NOTICE:  A CLAIMANT MAY NOT HAVE A LIEN ON RETAINED FUNDS UNLESS THE CLAIMANT FILES THE AFFIDAVIT CLAIMING A LIEN NOT LATER THAN THE 30TH DAY AFTER THE DATE OF COMPLETION.
 [Signature Page Follows]
 

 LOAN MODIFICATION AGREEMENT – EXHIBIT B
 

 
 

 

 

 DATED this ___ day of ______, 20__.
 AFFIANT:
 

 

 

 Print Name: 
 who is an authorized representative of Owner
 

 SUBSCRIBED AND SWORN BEFORE ME, on this the ____ day of ______, 20__.
 

 

 Notary Public, State of Texas
 

 LOAN MODIFICATION AGREEMENT – EXHIBIT B
 

 
 

 

 EXHIBIT C
 ALAMO LEASE
 [see attached]
 

 LOAN MODIFICATION AGREEMENT – EXHIBIT C
 

 
 

 

 EXHIBIT D
 APPROVED BUDGET
 

 [see attached]
 

 LOAN MODIFICATION AGREEMENT – EXHIBIT D
 

 
 

 

 EXHIBIT E
 MISCELLANEOUS INFORMATION
 

 

 

 The Architect:
 The Contractor(s):  
 

 

 

 LOAN MODIFICATION AGREEMENT – EXHIBIT E
 

 
 

 

 EXHIBIT F
 CONSENT TO DEMOLITION AGREEMENT
 

 [see attached]
 

 

 LOAN MODIFICATION AGREEMENT – EXHIBIT F
 

 
 

 

 EXHIBIT G
 CONSTRUCTION SCHEDULE
 

 [see attached]
 

 

 LOAN MODIFICATION AGREEMENT – EXHIBIT G
 

 
 

 

 EXHIBIT H
 Borrowing Base Properties
 Borrowing Base Properties.  As of the date of the October 2012 Loan Modification Agreement, the Borrowing Base Properties are as follows:
 Richardson Heights – (100 South Central Expressway, Richardson, Texas, 75080)
 Cooper Street Plaza – (4601 South Cooper Street, Arlington, Texas 76017)
 Bent Tree – (17300 Dallas Parkway, Dallas, Texas 75248)
 

 

 LOAN MODIFICATION AGREEMENT – EXHIBIT H
 

 
 

 

 EXHIBIT I
 LAND
 

 [see attached]
 

 

 

 LOAN MODIFICATION AGREEMENT – EXHIBIT I
 

 
 

 

 EXHIBIT J
 INSURANCE
 

 Borrower shall maintain with responsible insurance companies having at least an A Policyholder’s Rating and a Financial Size Rating of XII by Alfred M. Best Company (or another company approved by Bank) the following:
 1.
 Hazard Insurance.  Insurance with respect to all insurable Bent Tree Property against loss or damage by fire, lightning, windstorm, explosion, hail, tornado, collapse, riot, riot attending a strike, sprinkler leakage, civil commotion, damage from aircraft and vehicles, and smoke damage and loss or damage from such hazards as are presently included in so called “extended coverage” and against vandalism and malicious mischief and against such other insurable hazards as may be required by Bank for the benefit of Borrower and Bank as named insured and/or loss payees.  The amount of such insurance shall be the full replacement cost of the buildings, improvements, furniture, furnishings, fixtures, equipment and other items (whether personalty or fixtures) included in the Mortgaged Property, without deduction for depreciation.  Full replacement cost, as used herein, means, with respect to the buildings and improvements, the cost of replacing the buildings and improvements, exclusive of the cost of excavations, foundations and footings below the first floor slab grade, but including the cost of debris removal, and means, with respect to such furniture, furnishings, fixtures, equipment and other items, the cost of replacing same.  Each such policy shall contain a replacement cost endorsement and such other endorsements as are sufficient to prevent Borrower and Bank from becoming a coinsurer with respect to such buildings and improvements.  Such insurance shall be “All-Risk” form.
 2.
 Builder’s Risk.  All-Risk Builder’s Risk insurance (which may be provided by the Contractor during the construction of the Alamo Improvements although the responsibility to provide such insurance shall remain Borrower’s responsibility) in an amount equal to 100% of the replacement cost of the Alamo Improvements, providing all-risk coverage on the Alamo Improvements and materials stored on the Bent Tree Property and elsewhere, and including collapse, damage resulting from error in design or faulty workmanship or materials, water damage, and permission to occupy, for the benefit of Borrower and Bank as named insured and/or loss payees.
 3.
 Flood Insurance.  If and to the extent any of the Mortgaged Property is located in a flood hazard area, a federal flood insurance policy in an amount equal to the lesser of the amount of the Loan or the maximum amount available.
 4.
 Other.  Such other insurance on the Bent Tree Property, or any replacements or substitutions thereof, or additions thereto, and in such amounts as may from time to time be required by Bank against other insurable hazards or casualties which at the time are commonly insured against in the case of premises similarly situated, due regard being given to the height and type of the buildings and improvements, or any replacements or substitutions therefor, or additions thereto, and their construction, location, use and occupancy.  Bank may also require Borrower to maintain comprehensive general liability insurance for owners and contractors in amounts and form acceptable to Bank.
 5.
 Contracts.  With respect to any Contractor performing work in connection with the Alamo Improvements such insurance as Bank shall reasonably require, including, but not limited to, Worker’s Compensation Insurance for statutory limits.
 All insurance policies shall be “occurrence” based policies, issued and maintained by Insurers, in amounts, with deductibles, and in form satisfactory to Bank, shall require not less than thirty (30) days’ prior written notice to Bank of any cancellation lapse, expiration, reduction or other change of coverage, and shall provide, if possible, for payment of all costs and expenses incurred by Bank in the event of any contested claim.  Without limiting the discretion of Bank with respect to required endorsements to insurance policies, all such policies for loss or damage to the Bent Tree Property shall contain a standard mortgagee clause (without contribution) naming Bank as mortgagee with loss proceeds payable to Bank.  All such policies also shall provide that the validity and enforceability of such policies will not be affected by, and the proceeds of such policies will be payable to Bank notwithstanding any (i) act, failure to act, or negligence of the insured, (ii) any violation of any warranty, declaration or condition contained in any such policy by the insured, (iii) the occupancy or use of the Bent Tree Property for purposes more hazardous than permitted by the terms of the policy, (iv) the exercise of the power of sale or any foreclosure or other action or proceeding taken by Bank pursuant to the Loan Documents, or (v) any change in title to or ownership of the Bent Tree Property.  In the case of policies of “extended coverage” insurance carried by a lessee of the Bent Tree Property for the benefit of Borrower, Borrower will upon request of Bank cause such policies to be endorsed to provide for payment of proceeds to Bank as its interests may appear.
 

 

 LOAN MODIFICATION AGREEMENT – EXHIBIT J

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