Document:

Exhibit 10.2

 

 

	
   

  	
   

  	
  Addendum
  to Master Loan and Security Agreement No.  21379-70000

  
	
  Banc of America Leasing & Capital, LLC

  	
   

  	
  (Joint and Several Co-Borrowers)

  

 

This
Addendum (the “Addendum”) is an
addendum to that certain Master Loan and Security Agreement No. 21379-70000 dated as of June 25,
2010  (the “Agreement”) by and between Banc of America Leasing & Capital, LLC (“Lender”) and Stellaris
LLC (“Borrower”), who
have determined that it is to their mutual benefit to make certain amendments
to the Agreement and each of the Loans and Related Agreements in connection
therewith (collectively, the “Loan Documents”).  The parties hereto desire that each of the
entities executing this Addendum as a Co-Borrower below (together with the
Borrower, each a “Co-Borrower” and
collectively the “Co-Borrowers”)
be and become a party to each of the Loan Documents as of the effective dates
thereof.  All capitalized terms used
herein without definition shall have the respective meaning assigned or
referred to them in the Agreement. 
Accordingly, for good and valuable consideration, intending to be
legally bound and pursuant to the terms and conditions of the Agreement, it is
hereby agreed as follows:

 

1.     Addition of Co-Borrowers.   Lender and Co-Borrowers agree that each
Co-Borrower shall be deemed to be a signatory party to each of the Loan
Documents, effective as of the respective dates thereof, and that for all
purposes and in all respects, each Co-Borrower shall be jointly and severally
obligated with each other Co-Borrower as a “Borrower” for the payment or
performance of any Obligations owing to Lender under or in respect of the Loan
Documents (the “Loan Obligations”), and jointly
and severally with any Guarantor or other party that may be liable, directly or
indirectly, for the payment or performance of any Loan Obligation.  References to a “Borrower” contained in any
Loan Document shall be deemed to be (unless the context otherwise specifically
requires) references to all Co-Borrowers and each of them.  Each Co-Borrower hereby (i) appoints
each and every other Co-Borrower, acting singly or together, as its
attorney-in-fact for the purpose of executing and delivering any Loan Document
on its behalf, (ii) acknowledges and agrees that any Equipment Note or
other Loan Document may be executed and delivered by any one or more of the
Co-Borrowers, and (iii) upon such execution and delivery, any such Loan
Document shall constitute the joint and several obligation of each and every
Co-Borrower.

 

2.     Nature of Obligations.  Each Co-Borrower’s Loan
Obligations owing to Lender are absolute and unconditional, and shall not be
affected, reduced, diminished, released or discharged for any reason (other
than the payment and performance of the Loan Obligations in full), including
without limitation:  (i) any
illegality, unenforceability, or invalidity of any Loan Document or Loan
Obligations;  (ii) any termination,
discharge, cancellation, amendment, or modification of the terms of any Loan
Document, or any consent, extension, indulgence, compromise, settlement, or
complete or partial release of any Co-Borrower or Guarantor with respect to any
Loan Obligation; (iii) any exercise or non-exercise of any right, remedy,
power, or privilege with respect to any Loan Obligation or any Collateral under
any Loan Document; (iv) any voluntary or involuntary bankruptcy,
insolvency, liquidation, dissolution or similar proceeding with respect to any
Co-Borrower or Guarantor;  (v) any
defect in title to or condition of any item of Equipment or any Collateral; (vi) any
failure of Lender to create or properly perfect any lien, mortgage, pledge or
security interest in any Collateral, any release, subordination, surrender,
exchange, deterioration, waste, loss or impairment of such Collateral or Lender’s
interest therein, or any failure of Lender to exercise reasonable care in the
preservation, protection, sale or other treatment of such Collateral;  (vii) any merger or consolidation of any
Co-Borrower into or with any other entity, or any reorganization of or change in
the composition of the shareholders, partners or members of any Co-Borrower; or
any termination of or other change in the relationship between any
Co-Borrowers;  (viii) any other
action or inaction on the part of Lender, whether or not such action or inaction
prejudices any Co-Borrower or increases the likelihood that any Co-Borrower
will be required to pay or perform any Loan Obligation pursuant to the terms of
the Loan Documents;  and (ix) any
other condition or circumstance which might otherwise constitute a legal or
equitable discharge, release, defense, or limitation arising out of any laws of
the United States of America or any state thereof.

 

3.     Waivers.  Each Co-Borrower hereby waives:  (a) any right to require Lender to file
suit or proceed to obtain or assert any claim or exhaust remedies against any
other Co-Borrower or its assets, or any Collateral or any Guarantor, either
before or as a condition to enforcing any of Lender’s rights and remedies
against such Co-Borrower under the Loan Documents, to join any Co-Borrower or
Guarantor in any action seeking to enforce the Loan Documents, to marshal
assets or allocate the use or benefits of any item of Equipment or any
Collateral, or to resort to any other means of obtaining payment or performance
of any Loan Obligation;  (b) any
notice of the execution, delivery or acceptance by Lender, any Co-Borrower or
any other party of any Loan Documents, notice of the amount of credit extended
by Lender to any Co-Borrower at any time, notice of defaults or other
non-performance by any Co-Borrower; notice of the acceptance of the Loan
Documents by Lender; notice of Lender’s demand and presentation for payment
upon any Co-Borrower or Guarantor; notice of any other action or inaction on
the part of Lender in connection with the Loan Documents or any Loan
Obligation;  (c) until all Loan
Obligations have been paid or performed in full, any right which such
Co-Borrower may have against any other Co-Borrower as the result of the
performance by such Co-Borrower of its joint and several obligations under the
Loan Documents, including, but not limited to, contractual, statutory and
common law rights of subrogation, reimbursement, indemnification, set-off or
contribution; and (d) any defenses which Co-Borrower may have or assert
against the enforcement of the Loan Documents or any Loan Obligation based upon
suretyship principles or any impairment of Collateral.

 

4.     Representations and
Warranties.  Each
Co-Borrower hereby represents and warrants that it has the form of organization,
chief executive office and any organizational identification number indicated
below with its execution of this Addendum, and hereby reaffirms all of the
representations warranties and covenants contained in any Loan Documents
concerning such Co-Borrower.  Each
Co-Borrower further represents and warrants to Lender that:  (a) it has received, or will receive,
substantial benefit from the agreements and transactions giving rise to 

 

1

 

the Loan Obligations, and
has received, or will receive, reasonably equivalent value for its undertakings
under the Loan Documents;  (b) it is
not entering into the Loan Documents in reliance on the value or the
availability of any of the Collateral or on the basis that any party will be
liable to perform any Loan Obligation or that Lender will look to any other
party to perform any Loan Obligation;  (c) Lender
has not made any representation, warranty or statement to such Co-Borrower in
order to induce it to join and enter into the Loan Documents;  (d) such Co-Borrower has adequate means
to obtain continuing and sufficient information concerning the financial and
business condition of the other Co-Borrowers and any Guarantors in respect of
the Loan Obligations;  and (e) as of
the date hereof, and after giving effect to the Loan Documents and any
contingent obligations contained herein, such Co-Borrower is and will be
solvent and has assets which, when fairly valued, exceed its liabilities.

 

This
Addendum shall be deemed a “Related Agreement” as defined in the Agreement, and
is subject to all of the terms and provisions applicable to Related Agreements
provided in the Agreement.  It is
expressly agreed by the parties that this Addendum is supplemental to the
Agreement and made a part thereof, and that all the terms, conditions and
provisions thereof, unless specifically modified herein, shall remain in full
force and effect.  In the event of any
conflict, inconsistency or incongruity between the provisions of this Addendum
and any of the provisions of any Loan Document, the provisions of this Addendum
shall in all respects govern and control.

 

IN WITNESS WHEREOF, the parties have caused this
Addendum to be executed as of June 25, 2010.

 

 

	
  Co-Borrower: Stellaris
  LLC

  	
   

  	
  Co-Borrower: James
  Construction Group, L.L.C.

  
	
  a limited liability company organized under the laws of Nevada with
  an organizational identification number and a chief executive office at the
  address set forth below

  	
   

  	
  a limited liability company organized under the laws of Florida, with
  an organizational identification number and a chief executive office at the
  address set forth below

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Primoris
  Services Corporation (fka Primoris Corporaiton)

  	
   

  	
  By:

  	
  /s/
  Peter J. Moerbeek

  
	
   

  	
  its
  Member

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Print
  Name:

  	
  Peter
  J. Moerbeek

  
	
  By:

  	
  /s/
  Alfons Theeuwes

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Manager

  
	
  Print
  Name:

  	
  Alfons
  Theeuwes

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Sr.
  Vice President

  	
   

  	
  Address:

  	
  11200 Industriplex Boulevard, Suite 150

  
	
   

  	
   

  	
   

  	
   

  	
  Baton Rouge, LA 70809

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  26000 Commercentre Drive

  	
   

  	
   

  	
   

  
	
   

  	
  Lake Forest, California 92630

  	
   

  	
   

  	
   

  
						

 

	
   

  	
   

  	
  Banc of America Leasing & Capital, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Cristina Foley

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Print
  Name:

  	
  Cristina Foley

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

2Exhibit
10.3

 

 

	
  Banc of America
  Leasing & Capital, LLC

  	
   

  	
  Equipment Security Note Number
  70001

  

 

This Equipment Security Note
No. 70001, dated as of June 25, 2010, (this “Equipment Note”), is entered into pursuant
to and incorporates by this reference all of the terms and provisions of that
certain Master Loan and Security Agreement No. 21379-70000 dated as of June 25, 2010 (the “Master
Agreement”), by and between Banc
of America Leasing & Capital, LLC (“Lender”) and Stellaris LLC (“Co-Borrower”) and James Construction Group, L.L.C. (“Co-Borrower”)
(each a Co-Borrower herein, together referred to as “Borrower”).  All capitalized terms used herein and not
defined herein shall have the respective meanings assigned to such terms in the
Master Agreement. If any provision of this
Equipment Note conflicts with any provision of the Master Agreement, the
provisions contained in this Equipment Note shall prevail. Borrower hereby authorizes Lender to insert the serial numbers and other
identification data of the Equipment, dates, and other omitted factual matters
or descriptions in this Equipment Note.

 

The occurrence of an “Event of
Default,” as defined in the Master Agreement, shall entitle Lender
to accelerate the maturity of this Equipment Note and to declare the Prepayment
Amount to be immediately due and payable, and to proceed at once to exercise
each and every one of the remedies provided in the Master Agreement or
otherwise available at law or in equity. 
All of Borrower’s Obligations under this Equipment Note are absolute and
unconditional, and shall not be subject to any offset or deduction
whatsoever.  Borrower waives any right to
assert, by way of counterclaim or affirmative defense in any action to enforce
Borrower’s Obligations hereunder, any claim whatsoever against Lender.

 

1.                          Equipment Financed; Equipment Location; Grant of Security Interest.  Subject to the terms and provisions of the
Master Agreement and as provided herein, Lender is providing financing in the
principal amount described in Section 2 below to Borrower in connection
with the acquisition or financing of the following described Equipment:

 

	
  Quantity

  	
   

  	
  Description

  	
   

  	
  Serial Number

  	
   

  	
  Cost

  	
   

  
	
   

  	
   

  	
  See
  Exhibit “A” attached hereto and made a part hereof.

  	
   

  	
   

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  
									

 

Location of
Equipment.  The Equipment will be located or (in the case
of over-the-road vehicles) based at the following locations:

 

	
  Location

  	
   

  	
  Address

  	
   

  	
  City

  	
   

  	
  County

  	
   

  	
  State

  	
   

  	
  ZIP

  
	
  A

  	
   

  	
  37110 Highway 30

  	
   

  	
  Geismar

  	
   

  	
  Ascension

  	
   

  	
  Louisiana

  	
   

  	
  70734

  

 

Borrower has agreed and does
hereby grant a security interest in and to the Equipment and the Collateral
related thereto, whether now owned or hereafter acquired and wherever located,
in order to secure the payment and performance of all Obligations owing to
Lender, including but not limited to this Equipment Note, all as more
particularly provided in the Master Agreement. 
Lender’s agreement to provide the financing contemplated herein shall be
subject to the satisfaction of all conditions established by Lender and Lender’s
prior receipt of all required documentation in form and substance satisfactory
to Lender in its sole discretion.

 

2.                          Payments.  For value
received, Borrower promises to pay to the order of Lender, the principal amount
of $10,000,000.00, together with interest thereon as provided herein.  This Equipment Note shall be payable by
Borrower to Lender in 60  (sixty) consecutive monthly, installments of
principal and interest (the “Payments”)
commencing on July 29, 2010 (the “Initial
Payment”) and continuing thereafter through and including June 29,
2015 (the “Maturity Date”)
(collectively, the “Equipment Note Term”).  Each Payment shall be in the amount provided
below, and due and payable on the same day of the month as the Initial Payment
set forth above in each succeeding payment period (each, a “Payment Date”) during Equipment Note
Term.  All interest hereunder shall be
calculated on the basis of a year of 360 days comprised of 12 months of 30 days
each.  The final Payment due and payable
on the Maturity Date shall in any event be equal to the entire outstanding and
unpaid principal amount of this Equipment Note, together with all accrued and
unpaid interest, charges and other amounts owing hereunder and under the Master
Agreement.

 

(a)  Interest Rate.  Interest
shall accrue on the entire principal amount of this Equipment Note outstanding
from time to time at a fixed rate of four and 12/100 percent (4.12%) per annum
or, if less, the highest rate of interest permitted by applicable law (the “Interest Rate”), from the date hereof until
the principal amount of this Equipment Note is paid in full, and shall be due
and payable on each Payment Date.

 

(b)  Payment Amount.  The principal and interest amount of each
Payment shall be $184,707.25.

 

1

 

3.                                      Prepayment.  Borrower may
prepay all (but not less than all) of the outstanding principal balance of this
Equipment Note on a scheduled Payment Date occurring after one (1) year
from the date hereof upon 30 days prior written notice from Borrower to Lender,
provided that any such prepayment shall be made together with (a) all
accrued interest and other charges and amounts owing hereunder through the date
of prepayment, and (b) a prepayment charge calculated as follows: two
percent (2.0%) of the amount prepaid during months thirteen (13) through
twenty-four (24), one percent (1.0%) of the amount prepaid during months
twenty-five (25) through thirty-six (36), and no prepayment penalty thereafter;
provided, however, that, if any prepayment of this Equipment Note is
made following an Event of Default, by reason of acceleration or otherwise, the
prepayment charge shall be calculated based upon the full original Equipment
Note Term.

 

4.                          Borrower Acknowledgements.  Upon delivery and acceptance of the
Equipment, Borrower shall execute this Equipment Note evidencing the amounts
financed by Lender in respect of such Equipment and the Payments of principal
and interest hereunder.  By its execution
and delivery of this Equipment Note, Borrower:

 

(a)                    reaffirms of all of Borrower’s
representations, warranties and covenants as set forth in the Master Agreement
and represents and warrants that no Default or Event of Default under the
Master Agreement exists as of the date hereof;

 

(b)                   represents, warrants and
agrees that: (i) the Equipment has been delivered and is in an operating
condition and performing the operation for which it is intended to the
satisfaction of Borrower; (ii) each item of Equipment has been
unconditionally accepted by Borrower for all purposes under the Master
Agreement and this Equipment Note; and (iii) there has been no material adverse change in the operations, business,
properties or condition, financial or otherwise, of Borrower or any Guarantor
since March 31, 2010;

 

(c)                    authorizes and directs
Lender to advance the principal amount of this Equipment Note to reimburse
Borrower or pay Vendors all or a portion of the purchase price of Equipment in accordance with Vendors’ invoices therefor,
receipt and approval of which are hereby reaffirmed by Borrower; and

 

(d)                   agrees that Borrower is
absolutely and unconditionally obligated to pay Lender all Payments at the
times and in the manner set forth herein.

 

 

	
  BANC OF AMERICA LEASING &
  CAPITAL, LLC 

  	
   

  	
  Co-Borrower: STELLARIS LLC 

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Cristina Foley

  	
   

  	
   

  	
  By:

  	
  Primoris Services Corporation (fka
  Primoris 

  
	
   

  	
   

  	
   

  	
   

  	
  Corporation), its Member 

  
	
  Printed Name:

  	
  Cristina Foley

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Alfons Theeuwes

  
	
  Title:

  	
  Vice President

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Printed Name:

  	
  Alfons Theeuwes

  	
  .

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Sr. Vice President

  	
  .

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Co-Borrower: JAMES CONSTRUCTION
  GROUP, L.L.C. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Peter J. Moerbeek

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Printed Name:

  	
  Peter J. Moerbeek

  	
  .

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Manager

  	
  .

  
																		

 

2

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