Document:

Exhibit 10.1

 

TEXTURA CORPORATION

STOCK INCENTIVE PLAN

 

Effective October 1, 2007,

As Amended and Restated Effective January 1, 2009

 

ARTICLE I
  PURPOSE

 

The purpose of this Textura Corporation, a Delaware corporation (the “Company”), Stock Incentive Plan (the “Plan”) is to advance the interests of the Company and its shareholders by providing officers, directors, key employees, consultants and other independent contractors of the Company, upon whose judgment, initiative and efforts the Company largely depend, with additional incentives to perform in a superior manner.  The Plan is also designed to attract and retain key personnel and to reward such individuals for achievement of corporate and individual performance goals.

 

ARTICLE II
  DEFINITIONS

 

As used in the Plan, the following defined terms have the meanings indicated below:

 

“Award” means a Stock Grant or a grant of an Option, a Stock Appreciation Right, or a Restricted Stock Unit pursuant to the provisions of the Plan.

 

“Board of Directors” or “Board” means the board of directors of the Company.

 

“Cause” means the termination of employment or other services for gross negligence, personal dishonesty, incompetence, willful misconduct, any breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, or the willful violation of any law, rule or regulation (other than traffic violations or similar offenses); provided, however, if an Employee has an employment agreement with the Company and such employment agreement defines a termination for “cause,” then “Cause” used herein shall have the same meaning as set forth in such employment agreement.

 

“Change in Control” means the occurrence of any one of the following events, unless stated otherwise in an Award or as otherwise required by Code Section 409A to avoid the additional taxes therein: (a) any person (other than the Company, a trustee or other fiduciary holding securities under an employee benefit plan of the Company or an underwriter) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company (excluding from the securities beneficially owned by such Person any securities acquired directly from the Company) representing more than 70% of the total voting power of the Company’s then outstanding voting securities; (b) the consummation of a merger or consolidation of the Company with or into any other corporation or any other corporate reorganization if more than 70% of the combined voting power of the voting securities of the 

 

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Company or such surviving entity (or any parent thereof) outstanding immediately after such merger, consolidation, or reorganization is owned by persons who were not shareholders of the Company immediately prior to such merger, consolidation or reorganization; (c) the complete liquidation or dissolution of the Company; or (d) the sale or disposition of all or substantially all of the Company’s assets (in one transaction or a series of related transactions within any period of twelve (12) consecutive months), other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity at least 30% of the combined voting power of the voting securities of which are owned by persons in substantially the same proportions as their ownership of the Company immediately prior to such sale.

 

“Code” means the Internal Revenue Code of 1986, as amended.  Any reference to a specific provision of the Code includes the successor provision(s) and the regulations promulgated.

 

“Common Stock” means the common stock of the Company.

 

“Company” has the meaning set forth in Article I.

 

“Date of Grant” means the date an Award is effective pursuant to the terms hereof.

 

“Disability” will have the meaning set forth in any employment, consulting, or other agreement between the Company (or its affiliate) and the Participant.  If there is no such employment, consulting, or other agreement, or if such agreement does not define “Disability,”  then “Disability” will mean any permanent physical or mental incapacity or impairment which satisfies the requirements for benefits under the long-term disability plan of the Company.  If no such long-term disability plan is in effect, then “Disability” will mean any permanent physical or mental incapacity or impairment that would constitute a disability for purposes of receiving benefits under the federal Social Security Act.

 

“Effective Date” has the meaning set forth in Article XV.

 

“Employee” means any person who, on the particular Date of Grant or other time of determination as the context requires, is currently employed by the Company.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.  Any reference to a specific provision of the Exchange Act includes the successor provision(s) and the regulations promulgated thereunder.

 

“Exercise Notice” has the meaning set forth in Section 9.1.

 

“Fair Market Value” means, as of a particular date, the fair market value of one share of Common Stock or Series A-2 Stock as determined by the Plan Administrator in a manner consistent with Code Section 409A and any regulations or other guidance thereunder.  It is the intent that such determinations shall be made in such a manner so that the Plan and Awards granted hereunder are not subject to the additional taxes referenced in Code Section 409A.

 

“Investment Representation Statement” has the meaning set forth in Section 9.1.

 

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“Option” means an Award granted under Article VII of the Plan.

 

“Option Award Agreement” has the meaning set forth in Article VIII.

 

“Option Period” means the time period within which the Option holder may exercise the right to purchase shares of Common Stock or Series A-2 Stock under an Award.

 

“Participant” means an eligible person who receives an Option, Stock Grant, Stock Appreciation Right, or a Restricted Stock Unit pursuant to the Plan.

 

“Plan” has the meaning set forth in Article I.

 

“Plan Administrator” means the Board or if delegated by the Board, a committee of the Board.

 

“Restricted Stock Unit” means an Award granted under Article XIII of the Plan.

 

“SEC” means the United States Securities and Exchange Commission.

 

“Series A-2 Stock” means the Series A-2 preferred stock of the Company.

 

“Stock Appreciation Right” means an Award granted under Article XII of the Plan.

 

“Stock Grant” means a grant of shares of Common Stock or Series A-2 Stock accompanied by such restrictions if any, as may be determined by the Plan Administrator under this Plan.

 

ARTICLE III
  ADMINISTRATION

 

3.1                               General.  The Plan shall be administered by the Plan Administrator.  The Plan Administrator shall act by vote or written consent of a majority of its members.  The Plan Administrator is authorized, subject to the provisions of the Plan, to establish, amend, suspend and waive such rules and regulations as it deems necessary for the proper administration of the Plan and to make whatever determinations and interpretations in connection with the Plan it deems necessary or advisable with respect to Participants.  The Plan Administrator’s decision and determinations under the Plan need not be uniform and may be made selectively among Participants, regardless of whether they are similarly situated. All determinations and interpretations made by the Plan Administrator shall be binding and conclusive on such Participants and on their legal representatives and beneficiaries.

 

3.2                               Power and Authority of the Plan Administrator.  Subject to the other terms and conditions set forth herein, the Plan Administrator shall have the power and authority, in its discretion, to determine from time to time which Participants will be granted Awards under the Plan, the number of shares of Common Stock or Series A-2 Stock subject to each Award, the exercise price of an Option and the restrictions, if any, which will be applicable to each Stock Grant and Option.  In making all such determinations, the Plan Administrator shall take into account the duties, responsibilities and performance of each respective Participant, his or her 

 

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present and potential contributions to the growth and success of the Company, his or her compensation, and such other factors as the Plan Administrator shall deem relevant to accomplishing the purposes of the Plan.  In addition, the Plan Administrator shall have the power and authority to determine other terms, conditions, restrictions, and other provisions of Awards, and to interpret, administer, and make factual determinations with respect to the Plan and Awards and agreements and instruments related to or made under the Plan.

 

3.3                               Limitation on Liability.  No member of the Plan Administrator shall be liable for any action or determination made in good faith with respect to the Plan, any rule, regulation or procedure adopted by it pursuant thereto or any Awards granted under it.

 

ARTICLE IV
  STOCK SUBJECT TO THE PLAN

 

Subject to adjustment as provided in Article X, the maximum number of shares reserved for Stock Grants and for purchase pursuant to the exercise of Options under the Plan is [1,700,000] shares of Common Stock or                                      shares of Series A-2 Stock.  The shares of Common Stock or Series A-2 Stock subject to the Plan may be either authorized but unissued shares or shares previously issued and reacquired by the Company.  To the extent that Options are granted and Stock Grants are made under the Plan, the shares underlying such Options and Stock Grants will be unavailable for future grants under the Plan.  However, to the extent that the Options or Stock Grants granted under the Plan are forfeited, terminate, expire or are canceled without having been exercised, the shares for such Options and Stock Grants shall not be counted against the maximum number of shares available for issuance hereunder and new Awards may be made with respect to such shares.

 

ARTICLE V
  ELIGIBILITY

 

Employees, consultants, advisors, independent contractors, directors and officers of the Company or its affiliated companies are eligible to receive Stock Grants, Options, Stock Appreciation Rights and/or Restricted Stock Units under the Plan.

 

ARTICLE VI
  STOCK GRANTS

 

6.1                               Terms of Stock Grants.  Each Stock Grant may be accompanied by such conditions, restrictions, and contingencies, or may be made without any, as may be determined in the discretion of the Plan Administrator as provided in the Award.  Such conditions, restrictions, and contingencies may include, without limitation, requirements that the Participant remain in the continuous employment or service of the Company for a specified period of time, that the Participant meet designated individual performance goals, that the Company, an Affiliate, or a combination thereof, meet designated organizational performance goals, or that the Company have a right to purchase, upon the Participant’s separation from service with the Company for any reason, all or any part of the shares of stock covered by a Stock Grant held by the Participant at the date of such separation.

 

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6.2                               Issuance Procedures.  A stock certificate representing the number of shares of stock covered by a Stock Grant shall be registered in the Participant’s name and may be held by the Participant; provided however, unless the Plan Administrator provides otherwise in the specified Award or otherwise consents in writing, if a Stock Grant is subject to certain restrictions or performance obligations, the shares of stock covered by such Stock Grant shall be registered in the Participant’s name and held in custody by the Company.  Unless the Plan Administrator provides otherwise in the specified Award or otherwise consents in writing, a Participant who has been awarded a Stock Grant shall have the rights and privileges of a stockholder of the Company as to the shares of stock covered by such Stock Grant, including the right to receive dividends and the right to vote such shares, except that the dividends shall be accumulated in an escrow account by the Company and shall not be paid to the Participant unless and until the expiration of any restrictions or satisfaction of any performance requirements.  None of the shares of stock covered by the Stock Grant may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of prior to the expiration of any applicable restrictions or satisfaction of any performance requirements.  Unless the Plan Administrator provides otherwise in the specified Award or otherwise consents in writing, all of the shares of stock covered by a Stock Grant shall be forfeited and all rights of a Participant who has been awarded such Stock Grant to such shares shall terminate without further obligation on the part of the Company in the event that any applicable restrictions or performance obligations do not expire or are not satisfied.  Upon forfeiture of shares of stock, such shares shall be transferred to the Company without further action by the Participant.  Upon the expiration of all applicable restrictions and satisfaction of the applicable performance obligations, whether in the ordinary course or under circumstances set forth in Section 6.3, the Company may deliver certificates evidencing shares of stock subject to the related Stock Grant to the Participant, or the Participant’s beneficiary or estate, as the case may be, free of such restrictions and applicable restrictive legends, but still subject to any applicable transfer restrictions.

 

6.3                               Acceleration.  If the Plan Administrator so provides in the specified Award or otherwise consents in writing, the vesting and the lifting of conditions, performance obligation requirements, restrictions and contingencies in whole or in part may be accelerated for any reason or upon the occurrence of any event.

 

ARTICLE VII
  STOCK OPTIONS

 

7.1                               Terms of Options.  Options granted under the Plan are subject to the following terms and conditions:

 

(a)                                 Price.  The purchase price per share of Common Stock or Series A-2 Stock deliverable upon the exercise of each Option shall be equal to at least the Fair Market Value on the Date of Grant, unless the Plan Administrator provides otherwise in the specified Award, in which case the terms of such Option shall comply with the requirements of Code Section 409A to avoid the additional taxes referenced therein.

 

(b)                                 Option Period Generally.  The Plan Administrator shall determine the Option Period during which each Option may be exercised as set forth in the Award.

 

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(c)                                  Vesting.  The Plan Administrator shall determine the date or dates on which each Option vests (may be exercised) as set forth in the Award and may provide that an Option is exercisable in installments.  If the Plan Administrator so provides in the specified Award or otherwise consents in writing, the shares comprising each installment may be purchased in whole or in part at any time after such installment becomes purchasable.

 

(d)                                 Acceleration.  If the Plan Administrator so provides in the specified Award or otherwise consents in writing, the vesting and the earliest time during which any Option may be exercised in whole or in part may be accelerated for any set reason or upon the occurrence of any set event.

 

(e)                                  Extension by Plan Administrator.  The Plan Administrator may extend the Option Period of an Option for a period not exceeding five (5) years past the end date of the original Option Period and in accordance with any applicable provisions of Code Section 409A.

 

(f)                                   Termination of Service.

 

(i)                                     Termination for Cause.  Unless the Plan Administrator provides otherwise in the specified Award or otherwise consents in writing, in the event a Participant’s employment with or provision of services to the Company are terminated by the Company for Cause, all rights under the Participant’s Options shall expire upon termination.

 

(ii)                                  Termination for Other Reasons.  Unless the Plan Administrator provides otherwise in the specified Award or otherwise consents in writing, upon the termination of a Participant’s employment with or provision of service to the Company because of any reason other than for Cause, the Participant’s Options shall be exercisable only as to those shares which were immediately purchasable by the Participant at the date of termination and only for up to ninety (90) days following termination.

 

(g)                                  Other Conditions, Restrictions, Contingencies.  Each Award may specify other conditions, restrictions and contingencies to which the Option is subject as deemed appropriate in the sole discretion of the Plan Administrator, including, without limitation, that the Company have a right to purchase, upon the Participant’s separation from service with the Company for any reason, all or any part of the underlying shares held by the Participant as a result of the exercise of an Option, the unexercised and vested Options or the unexercised and vested warrants that are held by the Participant at the date of such separation.

 

7.2                               Reload Option.  If a Participant pays for all or any portion of the aggregate Option purchase price with shares of Common Stock or Series A-2 Stock by withholding a number of shares upon exercise of an Option, the Plan Administrator may grant a reload Option.  Such reload Option may grant the Participant a new Option for the number of shares of Common Stock or Series A-2 Stock equal to the number tendered as consideration for the purchase of shares under the former Option under terms satisfactory to the Plan Administrator.

 

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ARTICLE VIII

AGREEMENT WITH GRANTEES

 

Each Award will be evidenced by a written option award agreement, substantially in the form attached hereto as Exhibit A in the case of Stock Grants (the “Stock Grant Agreement”),  Exhibit B in the case of Options (the “Option Award Agreement”) or Exhibit D in the case of Restricted Stock Units (the “Restricted Stock Unit Agreement”), or in such form approved by the Company in the case of Stock Appreciation Rights, executed by the Participant and the Company.  Each Award will describe the conditions for receiving such Award, the Date of Grant, the purchase price, if any, applicable Option Periods, performance or other periods, and any other terms and conditions as may be established by the Company or required by applicable securities or tax laws and that are not inconsistent with the terms of the Plan.

 

ARTICLE IX
  MISCELLANEOUS REQUIREMENTS OF OPTIONS

 

9.1                               Method of Exercise; Cashless Exercise.  Each Option shall be exercised pursuant to the terms of the Plan by giving written notice to the Company at its principal place of business.  Unless the Plan Administrator consents in writing to the contrary, the form of such notice shall be substantially similar to the exercise notice contained in Exhibit C, which may be amended and otherwise updated from time to time by the Plan Administrator (the “Exercise Notice”).  No Option granted under the Plan may be exercised or Award granted unless, at the time of exercise or grant, Common Stock or Series A-2 Stock to be issued qualifies for exemption from, or is registered pursuant to, applicable federal and state securities laws.  In the event there is not then on file with the SEC an effective registration statement, including a prospectus relating to the shares subject to the Award, the Plan Administrator may require the Participant to execute and deliver to the Company prior to receipt by such Participant of any such shares under the Plan, an investment representation statement, the form of such statement shall be substantially similar to the investment representation statement contained in Attachment 1 to Exhibit C (the “Investment Representation Statement”).  Unless the Plan Administrator provides otherwise in the specified Award or consents in writing, shares may be purchased pursuant to an Option only upon full payment of the purchase price in cash.  If the Plan Administrator so provides in the specified Award or otherwise consents in writing, payment of the purchase price may be made, in whole or in part, through the exchange of previously held shares of Common Stock or Series A-2 Stock (or through the withholding of shares of Common Stock or Series A-2 Stock to be received by the Participant upon exercise of the Option) at the Fair Market Value of such shares on the date of surrender.

 

9.2                               Rights of a Shareholder.  No Participant shall have any rights as a shareholder with respect to any shares covered by an Option until the date of issuance of a stock certificate for such shares.  Nothing in the Plan or in any Award granted confers on any person any right to continue in the employ of the Company or to continue as a director, officer, consultant or independent contractor of the Company or interferes in any way with the right of the Company to terminate a Participant’s services at any time.

 

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9.3                               Limited Transferability.  Except as otherwise provided in an Award or unless the Plan Administrator consents in writing to the contrary, Options may only be transferred pursuant to the laws of descent and distribution upon a Participant’s death.  Except as otherwise provided in an Award or unless the Plan Administrator consents in writing to the contrary, during the lifetime of a Participant granted Options, such Options may only be exercised by such Participant or such Participant’s guardian or legal representative.  The Plan Administrator has the power and authority to establish additional rules and regulations from time to time specifically governing the transfer of Options as it deems necessary or advisable.

 

9.4                               Change in Control.

 

(a)                                 Exercise or Terminate.  Unless the Plan Administrator provides otherwise in the specified Award, upon thirty (30) days advance written notice by the Company to the Participant of the Company’s intent to consummate a Change in Control, the Company shall have the right, exercisable in the Company’s sole discretion, to require that the Participant exercise the Participant’s right to purchase all the shares that the Participant has a vested right to purchase under an existing Award within the ten (10)-day period following the expiration of the thirty (30)-day advance written notice period.  If the Participant fails to exercise such right as to all the shares that the Participant has a vested right to purchase within such ten (10)-day period, then to the extent not so exercised, all remaining purchase rights under the outstanding Options (regardless of their vested status) shall be immediately forfeited to the Company.

 

(b)                                 No Acceleration of Vesting.  Unless the Plan Administrator provides otherwise in the specified Award or otherwise consents in writing, no acceleration of vesting will occur upon a Change in Control.

 

(c)                                  Replacement by Successor.  In the event of a merger of the Company with or into another corporation, or a Change in Control, unless the Award Agreement provides otherwise, each outstanding Award, and, if applicable, each right of the Company to repurchase or redeem Shares acquired pursuant thereto, may be assumed or an equivalent award substituted by the successor corporation or a parent or subsidiary of the successor corporation.

 

(d)                                 Payout.  The Plan Administrator may, without obtaining Participant consent, require that each Option that is outstanding on the date of a Change in Control be terminated as of the date of the Change in Control in exchange for a cash payment to the Participant equal to the product of (a) the number of shares that the Participant has a vested and, if approved by the Plan Administrator, the unvested right to purchase under the Award as of the date of the Change in Control and (b) the excess (if any) of the price paid for a share of Common Stock or Series A-2 Stock in the Change in Control transaction (as determined by the Plan Administrator) over the purchase price per share under such Option.  Each Option that is outstanding and unexercised immediately prior to the effective time of the Change in Control transaction, whether vested or unvested, that has an exercise price greater than or equal to the price paid for a share of Common Stock or Series A-2 Stock in the Change in Control transaction (as determined by the Plan Administrator), may be cancelled at such time, without obtaining Participant consent, by the Plan Administrator.

 

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ARTICLE X
  DILUTION AND OTHER ADJUSTMENTS

 

In the event of any change in the outstanding shares of Common Stock or Series A-2 Stock of the Company by reason of any stock dividend or split, recapitalization, merger, consolidation, conversion, spin-off, reorganization, combination or exchange of shares (including, but not limited to the conversion of preferred stock to Common Stock pursuant to the Company’s Certificate of Incorporation), or other similar corporate change, or other increase or decrease in such shares without receipt or payment of consideration by the Company, the Plan Administrator shall make such adjustments to previously granted Awards, to prevent dilution or enlargement of the rights of the Participant, including any or all of the following:

 

(a)                                 adjustments in the aggregate number or kind of shares of Common Stock or Series A-2 Stock that may be awarded under the Plan;

 

(b)                                 adjustments in the aggregate number or kind of shares of Common Stock or Series A-2 Stock covered by Awards already made under the Plan; or

 

(c)                                  adjustments in the purchase price of outstanding Options.

 

No such adjustments may, however, materially change the value of benefits available to a Participant under a previously granted Award.  For purposes of clarification, no such adjustments shall be made as a result of the dilution of the Participant as a result of the issuance of options, warrants, or shares of the Company (whether pursuant to this Plan or otherwise) for consideration.

 

ARTICLE XI
  WITHHOLDING; TAXATION

 

11.1                        Withholding.  As a condition to the exercise of any Option or Stock Appreciation Right granted hereunder, the issuance of a Stock Grant, the issuance, vesting or payment in respect of a Restricted Stock Unit, or the release of stock certificates from the Company’s custody in connection with a Stock Grant, the Participant shall make such arrangements as the Plan Administrator may require for the satisfaction of any federal, state or local withholding tax obligations that may arise in connection with such exercise, issuance, vesting, payment or release.  Such arrangements may include the deduction of any such required withholding from any payments due or to become due to the Participant or the payment in cash by the Participant to the Company in an amount equal to any such withholding.

 

11.2                        No Guarantee of Tax Treatment.  Notwithstanding any provisions of the Plan, the Company does not guarantee or make any warranty to any Participant or any other person with an interest in an Award that any Award intended to comply with Code Section 409A shall so comply, nor will the Company indemnify, defend or hold harmless any individual with respect to the tax consequences of any such failure.

 

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ARTICLE XII

STOCK APPRECIATION RIGHTS.

 

The Company is hereby authorized to grant Stock Appreciation Rights to Participants, which Stock Appreciation Rights are subject to the terms of the Plan and any applicable Award.  A Stock Appreciation Right granted under the Plan shall confer on the holder thereof a right to receive upon exercise thereof the excess of (i) the Fair Market Value on the date of exercise (or, if the Company shall so determine, at any time during a specified period before or after the date of exercise) over (ii) the grant price of the Stock Appreciation Right as specified by the Company, which price shall not be less than 100% of the Fair Market Value on the date of grant of the Stock Appreciation Right.  Subject to the terms of the Plan and any applicable Award, the grant price, term, methods of exercise, dates of exercise, methods of settlement and any other terms and conditions of any Stock Appreciation Right shall be as determined by the Company.  The Company may impose such conditions or restrictions on the exercise of any Stock Appreciation Right as it may deem appropriate.

 

ARTICLE XIII

RESTRICTED STOCK UNITS

 

The Company is hereby authorized to grant, at any time and from time to time, Restricted Stock Units to Participants, which Restricted Stock Units are subject to the terms of the Plan and any applicable Award. in the number and form as the Company may determine in its discretion.  A Restricted Stock Unit granted under the Plan shall confer on the holder thereof a right to receive, subject to the terms and conditions of the Plan and Restricted Stock Unit Agreement, a share of Common Stock (or other converted ownership interest as may be provided under the Restricted Stock Unit Agreement) or a cash payment equal to the value of a share of Common Stock, if and when the Restricted Stock Unit becomes payable.  Subject to the terms of the Plan and the applicable Restricted Stock Unit Agreement, the number, vesting conditions, methods of payment, dates of payment and any other terms and conditions of any Restricted Stock Units shall be as determined by the Company in its absolute discretion.  The Company may impose such conditions or restrictions on the payment in respect of any Restricted Stock Unit as it may deem appropriate.

 

ARTICLE XIV
  TERMINATION AND AMENDMENT OF THE PLAN

 

The Board may at any time, and from time to time, terminate, modify or amend the Plan in any respect.  No Awards under the Plan shall be granted more than ten (10) years after the Effective Date of the Plan.  The Board may determine that shareholder approval of any amendment to the Plan may be advisable for any reason, including but not limited to, for the purpose of obtaining or retaining any statutory or regulatory benefits under tax, securities or other laws or satisfying applicable stock exchange listing requirements.  Except as otherwise provided in the Plan or the specified Award, such termination, modification or amendment may not materially and adversely affect the rights of a Participant under such Award.

 

Notwithstanding any other provision in the Plan, the Board, to the extent it deems necessary or advisable in its sole discretion, reserves the right, but shall not be required, to unilaterally amend

 

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or modify the Plan and any Award granted under the Plan so that such Award qualifies for exemption from or complies with Code Section 409A; provided, however, that the Board makes no representations that Awards granted under the Plan shall be exempt from or comply with Code Section 409A.  The Board shall not have the power to modify, amend, exchange or substitute Awards if such modification, amendment, exchange or substitution would violate Code Section 409A (it is not a violation if the expiration of the Award is tolled while the Award is unexercisable because an exercise would violate applicable securities laws, provided that the period during which the Award may be exercised is not extended more than thirty (30) days after the exercise of the Award first would no longer violate applicable securities laws).

 

ARTICLE XV
  EFFECTIVE DATE OF PLAN

 

Subject to the approval of the shareholders of the Company, the effective date of the Plan shall be as of October 1, 2007 (the “Effective Date”).  The Plan shall remain in effect subject to the terms hereof, until the earlier of the following: (1) October 1, 2017; (2) termination of the Plan by the Board of Directors; or (3) the purchase of all shares to be delivered pursuant to the Plan.

 

ARTICLE XVI
  APPLICABLE LAW

 

15.1                        Governing Law.  The Plan will be administered in accordance with the laws of the State of Illinois but without giving effect to the principles of conflicts of laws thereof.  The exclusive jurisdiction and venue for any disputes arising under, or any action brought to enforce (or otherwise relating to), this Plan or an Award Agreement shall be exclusively in the courts in the State of Illinois, County of Cook, including the Federal Courts located therein (should Federal jurisdiction exist).

 

15.2                        Compliance With Code Section 409A.  Notwithstanding any provision of the Plan to the contrary, all Awards made under the Plan are intended to be exempt from, or, in the alternative, comply with Code Section 409A and the interpretive guidance thereunder, including the exceptions for stock rights and short-term deferrals.  The Plan will be construed and interpreted in accordance with such intent.

 

	
 
    	
By:
    	
/s/   Patrick Allin
    
	
 
    	
Name:   
    	
Patrick   Allin
    
	
 
    	
Its:   
    	
Chief   Executive Officer
    

 

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EXHIBIT A

 

FORM OF STOCK GRANT AGREEMENT

 

THIS SHARES OF COMMON STOCK OR SERIES A-2 PREFERRED STOCK ISSUABLE PURSUANT TO THIS STOCK GRANT HAVE NOT BEEN REGISTERED UNDER STATE OR FEDERAL SECURITIES LAWS.  THE SHARES OF COMMON STOCK OR SERIES A-2 PREFERRED STOCK ISSUABLE HERETO MAY NOT BE OFFERED OR SOLD, PLEDGED OR OTHERWISE DISTRIBUTED, NOR MAY THE SHARES OF COMMON STOCK OR SERIES A-2 PREFERRED STOCK BE TRANSFERRED ON THE BOOKS OF THE COMPANY, EXCEPT IN A TRANSACTION THAT (I) IN THE OPINION OF COUNSEL THAT IS SATISFACTORY TO THE COMPANY, WOULD RESULT IN NO VIOLATION OF SAID SECURITIES LAWS, AND (II) WOULD COMPLY WITH THE TRANSFER RESTRICTION PROVISIONS CONTAINED IN THE TEXTURA CORPORATION STOCK INCENTIVE PLAN.

 

TEXTURA CORPORATION

STOCK INCENTIVE PLAN

STOCK GRANT AGREEMENT

 

*  *  *  *  *

 

	
Stock   Grant Recipient:
    	
                                                  
    
	
 
    	
 
    
	
Stock   Grant Date:
    	
                                                  
    
	
 
    	
 
    
	
Number   of Shares Granted:
    	
                                                  
    
	
 
    	
 
    
	
Type   of stock:
    	
[Common   Stock] or [Series A-2 Preferred Stock]
    
	
 
    	
 
    
	
Fair   Market Value of Shares Granted:
    	
                                                  
    

 

Vesting Schedule:

 

	
Vesting Date (or
   Vesting Criteria)
    	
 
    	
Vesting
    Amount
    	
 
    	
Number of
    Shares Subject to
   Vesting
    	
 
    	
Cumulative Total of
    Shares Subject to
   Vesting
    	
 
    
	
                     , 20      
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

THIS STOCK GRANT AGREEMENT (this “Agreement”), dated as of the stock grant date specified above, by and between Textura Corporation, a Delaware corporation (the “Company”), and the person named above (the “Recipient”), is entered into pursuant to the Textura Corporation Stock Incentive Plan (as the same may be amended, restated, supplemented and otherwise modified

 

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from time to time, the “Plan”).  All capitalized terms not otherwise defined in the text of this Agreement have the meanings attributed to them in the Plan.

 

ARTICLE I
  STOCK GRANT

 

1.1                               Stock Grant.  Subject to the terms and conditions of the Plan and this Agreement, the Company hereby grants to the Recipient the number of shares of Common Stock, or in the alternative, the number of shares of Series A-2 Preferred Stock set forth above (such shares of Common Stock and Series A-2 Preferred Stock are referred to as the “Grant Shares”).

 

1.2                               Delivery of Certificates. The certificates representing the Grant Shares hereunder shall be held in escrow by the Company and delivered to the Recipient pursuant to the terms hereof.

 

1.3                               Stockholder Rights.  Subject to the terms and conditions contained herein, the Recipient shall have all the rights of a stockholder (including voting and dividend rights) with respect to the Grant Shares.

 

ARTICLE II
  ESCROW

 

2.1                               Deposit.  Upon issuance, the certificates for any Grant Shares granted hereunder shall be deposited in escrow with the Corporation to be held in accordance with the provisions of this Article II.  The deposited certificates, together with any other assets or securities from time to time deposited with the Corporation pursuant to the requirements of this Agreement, shall remain in escrow until such time or times as the Grant Shares, or portion thereof, represented by such certificates, become vested.  At such time, the Corporation shall promptly deliver to Recipient, after the Recipient’s satisfaction of applicable tax withholding, the certificate or certificates evidencing the Grant Shares (or portion thereof) that are vested.

 

2.2                               Recapitalization.  In the event of any stock dividend, stock split, recapitalization or other change affecting the Corporation’s outstanding Common Stock as a class effected without receipt of consideration or in the event of a transaction, any new, substituted or additional securities or other property which is by reason of such transaction distributed with respect to the Grant Shares shall be immediately delivered to the Corporation to be held in escrow under this Article II, but only to the extent the unvested Grant Shares are at the time are subject to the escrow requirements of Section 2.1.

 

ARTICLE III

SPECIAL TAX PROVISIONS

 

3.1                               Section 83(b) Election Acknowledgement.  The Recipient understands that under Section 83 of the Internal Revenue Code of 1986, as amended (the “Code”), the Recipient may elect under Code Section 83(b) to be taxed at the time the Grant Shares are acquired hereunder, rather than when the Grant Shares (or portion thereof) vest.  The Recipient acknowledges that (i) it is the Recipient’s sole discretion to determine whether to make an election under Code Section

 

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83(b), and (ii) it is the Recipient’s sole responsibility, and not the Company’s, to timely and properly file an election under Code Section 83(b).

 

3.2                               Valuation of Common Stock.  The Recipient understands that the Grant Shares have been valued by the Board of Directors of the Company (the “Board”) and that the Board believes this valuation represents a fair attempt at reaching an accurate appraisal of their worth on the date of the grant.

 

3.3                               Withholding.  The Company may require as a condition precedent to the issuance or transfer of any Grant Shares that the Recipient make such arrangements to the satisfaction of the Company for the satisfaction of any federal, state or local withholding tax obligations that may arise including requiring the Recipient to remit cash to the Company in an amount equal to such withholding.  If the amount so requested is not remitted, the Company may refuse to issue or permit the transfer of the Grant Shares.

 

ARTICLE IV

RIGHT OF PURCHASE

 

4.1                               Company Purchase Right.  In the event (i) the Recipient’s employment with or provision of services to the Company is terminated for any reason (including, without limitation, termination for cause or as a result of Recipient’s death or disability) or (ii)  the Recipient voluntarily resigns from his or her position with the Company, then, in any case, the Company shall have the right to purchase (a) all or any part of the shares of the Company (the “Shares”) held by the Recipient (if any); (b) all or any part of the unexercised and vested options (the “Vested Options”) of the Company held by the Recipient (if any) and (c) all or any part of the unexercised and vested warrants (the “Vested Warrants”) of the Company held by the Recipient (if any).

 

4.2                               Notice by Company.  The Company’s right to purchase described herein shall be exercised by written notice from the Company to the Recipient (the “Company Notice”) within ninety (90) days after the date of termination of employment or other position of the Recipient with the Company.

 

4.3                               Purchase Price.  The purchase price for the Shares shall be the fair market value of such Shares (as determined in the sole discretion of the Company) as of the date of the Closing (as defined below).  The purchase price for the Vested Options shall be (a) the fair market value of the shares subject to the Vested Options (as determined in the sole discretion of the Company) as of the date of the Closing minus (b) the exercise price applicable to the Vested Options, less all applicable taxes.  The purchase price for the Vested Warrants shall be (a) the fair market value of the shares subject to the Vested Warrants (as determined in the sole discretion of the Company) as of the date of the Closing minus (b) the exercise price applicable to the Vested Warrants.

 

4.4                               Payment.

 

(a)                                 Generally.  At the Closing, the Company shall pay the purchase price to the Recipient either (in the Company’s sole discretion) (i) in full at the Closing by cash, check or

 

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wire transfer (at the discretion of the Company); or (ii) pursuant to the terms of a promissory note as described below.

 

(b)                                 Promissory Note.  Any promissory note executed and delivered pursuant to this Agreement shall be unsecured and provide, in the Company’s sole discretion, up to five (5) equal, consecutive, annual payments of principal, together with interest computed upon the unpaid principal amount at a rate equal to the Prime Rate of interest, adjusted upon each anniversary of such promissory note.  The “Prime Rate” shall mean the interest rate publicly quoted in the Wall Street Journal (or any successor thereto) as the prime rate for interest rate determinations for commercial banks.  The promissory note shall reserve the right of the maker to prepay the indebtedness evidenced thereby, in whole or in part at any time, without penalty.  Indebtedness evidenced by a promissory note executed and delivered by the Company hereunder shall be always junior and subordinate in right of payment to all now outstanding indebtedness and obligations of the Company, other than ordinary trade payables and accrued expenses, and such other indebtedness and obligations which the Company at any time shall determine and designate as being prior and senior to any such promissory note, including, without limitation, the Company’s present or future obligations to any banks or other financial institutions providing credit or loans to the Company on a secured or unsecured basis.

 

4.5                               Closing.  The closing of the purchase described above (the “Closing”) shall take place at the principal office of the Company (or at such other place which may be mutually agreed upon by the parties hereto) on or before sixty (60) days after the date of the Company Notice.  If applicable, at the closing, the Recipient shall transfer to the Company the Shares and the certificates representing the same (duly executed for transfer), free and clear of all liens, claims and encumbrances.  At the request of the Company, the Recipient shall execute all documents that may be reasonably requested by the Company to effectuate such transfer.

 

4.6                               Spouses and Interests in Shares.  For purposes of this Agreement, all references to Shares, Vested Options or Vested Warrants owned or held by the Recipient shall include, without limitation, all such interests now owned or acquired in the future by the Recipient’s spouse, if any, as marital property, community property or quasi-community property, or pursuant to such spouse’s elective rights to deferred marital property or to an augmented marital property estate.

 

4.7                               Public Offering.  The purchase rights described in this Article IV shall terminate at the sooner of (a) such time as Option Holder no longer holds any shares in the Company or rights to acquire shares in the Company or (b) upon the closing of a Public Offering, as defined in the Company’s bylaws, as such bylaws may be amended from time to time.

 

ARTICLE V

MISCELLANEOUS

 

5.1                               Transfer Restrictions.  This Agreement, the Recipient’s rights hereunder, and the Grant Shares are not transferable by the Recipient, except as provided in the Plan.

 

5.2                               Securities Law Requirements.  As required by the Plan, Grant Shares under this Agreement may not be issued unless, at such time, the Grant Shares to be issued qualify for

 

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exemption from, or are registered pursuant to, applicable federal and state securities laws.  In the event there is not then on file with the SEC under the Securities Act of 1933, as amended, an effective registration statement, including a prospectus related to the Grant Shares subject to this Agreement, the Recipient shall execute and deliver to the Company prior to receipt by the Recipient of any of the Grant Shares under this Agreement, an Investment Representation Statement, in a form satisfactory to the Company.

 

5.3                               Restrictive Legend.  In addition to any other restrictive legend as may be required by agreement or by the Company, all certificates evidencing the Grant Shares shall bear the following legend:

 

“Transfer of the securities evidenced by this certificate is not valid except to the extent that such transfer has complied with the provisions regarding transfer contained in the bylaws, effective as of October 1, 2007, as may be amended from time to time.  A copy of the bylaws, which imposes various restrictions upon the holder of this certificate, is available to interested parties for inspection at the offices of the Corporation.”

 

“The securities evidenced by this certificate have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state, but have been issued in reliance upon exemptions therefrom.  The securities may not be offered, sold, pledged or otherwise transferred without registration under the Securities Act and applicable state securities laws or receipt of an opinion of counsel satisfactory to the Corporation that an exemption from registration is available or that such transfer may otherwise lawfully be made.”

 

5.4                               Professional Advice.  The acceptance and exercise of the rights under this Agreement and the issuance of Grant Shares may have consequences under federal and state tax and securities laws, which may vary depending on the individual circumstances of the Recipient.  Accordingly, the Recipient acknowledges that it has been advised to consult the Recipient’s legal and tax advisor(s) in connection with this Agreement and the acquisition, holding and disposition of the Grant Shares.  The Recipient acknowledges that neither the Company nor any of its officers, directors, attorneys or agents have made any representations as to the federal and state tax effects of the acceptance of any rights under this Agreement, the vesting of the Grant Shares, or the sale of any Grant Shares.

 

5.5                               Interpretation.  The terms of this Agreement are subject to the Plan, of which the Recipient acknowledges receipt.  As a condition of the Company entering into this Agreement, the Recipient agrees for himself or herself and his or her representatives that any dispute or disagreement that may arise under or as a result of or pursuant to this Agreement shall be determined by the Plan Administrator in its sole discretion, and any interpretation by the Plan Administrator of the terms of this Agreement or the Plan shall be final, binding, and conclusive.

 

5.6                               Notices.  All notices, consents and other exchanges of written material required or implied under this Agreement shall be in writing and delivered in person or by messenger, facsimile, overnight courier or certified mail and shall be sent to the following:

 

A-16

 

	
If   to the Company:
    	
Textura   Corporation
    
	
 
    	
51   Sherwood Terrace, Suite A
    
	
 
    	
Lake   Bluff, IL 60044
    
	
 
    	
Attn:   Stock Incentive Plan Administrator
    
	
 
    	
 
    
	
If   to Recipient:
    	
The   address on file with the Company
    

 

All notices shall be deemed delivered and received by the receiving party (i) if delivered by messenger, on the date of delivery or on the date delivery was refused by the addressee, (ii) if delivered by facsimile transmission, upon receipt of facsimile confirmation of the party transmitting such notice, or (iii) if delivered by overnight courier or certified mail, on the date of delivery as established by the return receipt, courier service confirmation or similar documentation (or the date on which the courier or postal service, as applicable, confirms that acceptance of delivery was refused by the addressee).  A party may change its notice information set forth above by giving the other party proper notice of the change, but a change to such notice information is only effective when it is actually received.

 

5.7                               Prior Agreements.  This Agreement constitutes the final and complete understanding between the Recipient and the Company regarding the subject matter hereof and supersedes all prior agreements and understandings (written or oral) concerning the granting of equity interests in the Company.

 

5.8                               Tender of Warrants.  Upon execution of this Agreement, the Recipient hereby acknowledges that any warrants previously held by the Recipient in Textura, LLC (if any) are null and void and the Recipient agrees to immediately return any copies of documents held by the Recipient regarding such warrants to the Company.

 

5.9                               Acknowledgment of Restrictions Contained in the Company’s Bylaws.  The Recipient acknowledges that the Shares granted pursuant to this Award are subject to the restrictions on transfer and other obligations and rights contained in the Company’s bylaws, which are available for inspection at the offices of the Company.

 

IN WITNESS WHEREOF, the parties have caused this Stock Grant Agreement to be executed as of the Stock Grant Date.

 

	
RECIPIENT
    	
TEXTURA   CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:   
    	
Patrick   Allin
    
	
 
    	
Its:   
    	
Chief   Executive Officer
    

 

A-17

 

The undersigned spouse of the Recipient identified above hereby acknowledges that the undersigned spouse has read the foregoing Agreement and agrees and consents to all of its terms (having been advised to retain separate representation by counsel of the spouse’s own choosing with respect to the execution of this Agreement, and having done so or declined to do so).

 

	
Spouse’s   Signature:
    	
 
    	
 
    
	
Spouse’s   Name:
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    

 

A-18

 

EXHIBIT B

 

FORM OF OPTION AWARD AGREEMENT

 

THIS OPTION AND THE SHARES OF COMMON STOCK OR SERIES A-2 PREFERRED STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER STATE OR FEDERAL SECURITIES LAWS.  THIS OPTION AND THE SHARES OF COMMON STOCK OR SERIES A-2 PREFERRED STOCK ISSUABLE UPON EXERCISE HEREOF MAY NOT BE OFFERED OR SOLD, PLEDGED OR OTHERWISE DISTRIBUTED, NOR MAY THE SHARES OF COMMON STOCK OR SERIES A-2 PREFERRED STOCK ISSUED UPON EXERCISE HEREOF BE TRANSFERRED ON THE BOOKS OF THE COMPANY, EXCEPT IN A TRANSACTION THAT (I) IN THE OPINION OF COUNSEL THAT IS SATISFACTORY TO THE COMPANY, WOULD RESULT IN NO VIOLATION OF SAID SECURITIES LAWS, AND (II) WOULD COMPLY WITH THE TRANSFER RESTRICTION PROVISIONS CONTAINED IN THE TEXTURA CORPORATION STOCK INCENTIVE PLAN.

 

TEXTURA CORPORATION

STOCK INCENTIVE PLAN

STOCK OPTION AGREEMENT

 

*  *  *  *  *

 

	
Option   Holder:
    	
                                                      
    
	
 
    	
 
    
	
Option   Grant Date:
    	
                                                      
    
	
 
    	
 
    
	
Exercise   Price:
    	
$                          per share
    
	
 
    	
 
    
	
Number   of shares subject to this Option:
    	
                                                      
    
	
 
    	
 
    
	
Type   of stock:
    	
[Common   Stock] or [Series A-2 Preferred Stock]
    
	
 
    	
 
    
	
Vesting   Schedule:
    	
 
    

 

	
Vesting Date (or
   Vesting Criteria)
    	
 
    	
Vesting
    Amount
    	
 
    	
Number of
    Option Shares Subject
   to Vested Purchase
   Right
    	
 
    	
Cumulative Total of
    Option Shares Subject
   to Vested Purchase
   Right
    	
 
    
	
                  ,   20      
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

THIS STOCK OPTION AGREEMENT (this “Agreement”), dated as of the option grant date specified above, by and between Textura Corporation, a Delaware corporation (the

 

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“Company”), and the option holder named above (the “Option Holder”), is entered into pursuant to the Textura Corporation Stock Incentive Plan (as the same may be amended, restated, supplemented and otherwise modified from time to time, the “Plan”).  All capitalized terms not otherwise defined in the text of this Agreement have the meanings attributed to them in the Plan.

 

ARTICLE I
  OPTION ISSUANCE

 

1.1                               Grant of Options.  Subject to the terms and conditions of the Plan and this Agreement, the Company hereby grants to the Option Holder the option to purchase from the Company the number of shares of Common Stock, or in the alternative, the number of shares of Series A-2 Preferred Stock set forth above (such shares of Common Stock and Series A-2 Preferred Stock are referred to as the “Option Shares”).

 

1.2                               Purchase Price.  The purchase price per Option Share to be paid for the Option Shares shall be as set forth above.

 

ARTICLE II
  EXERCISE OF OPTIONS

 

2.1                               Vesting.  The Option Holder may only exercise the right to purchase the Option Shares to the extent such right is vested.  Subject to the terms and conditions contained herein, the vesting schedule for the Option Holder’s purchase right is set forth above.  The right to purchase Option Shares shall only continue to vest while the Option Holder is employed or otherwise engaged as an independent contractor by the Company.  If the Option Holder is no longer employed or otherwise engaged as an independent contractor by the Company, the Option Holder’s purchase rights under this Agreement shall no longer continue to vest.  [If there is a Change in Control while the Option Holder is employed by the Company, all rights to purchase the Option Shares shall immediately vest.](1)

 

2.2                               Minimum Exercise Amount.  The minimum number of Option Shares that the Option Holder may purchase at any time is           (2) or such other number of Option Shares as the Plan Administrator determines from time to time, provided that if the vested portion of this Option is less than such number of Option Shares, this Option may be exercised with respect to all Option Shares for which it is vested.

 

2.3                               Option Period.  Subject to the other provisions in this Agreement and the Plan that further limit or terminate the purchase rights of the Option Holder, the Option Period commences on the option grant date and ends upon the earlier of ten (10) years from the option grant date or ninety (90) days after the date on which the Option Holder is no longer an employee of the Company or otherwise engaged as an independent contractor of the Company.

 

2.4                               Procedure for Exercise.

 

(1)  Remove brackets and boldface around this sentence if it will be retained.  Delete if otherwise.

 

(2)  Insert a number that is administratively practical.

 

B-2

 

NOTE: CHOOSE EITHER ALTERNATIVE A OR B:

 

ALTERNATIVE A(3): Except as otherwise provided herein, this Option may only be exercised by the Option Holder’s delivery of an Exercise Notice during the Option Period to the Company (attention: Plan Administrator)

 

ALTERNATIVE B(4):  [Except as otherwise provided herein, this Option may only be exercised by the Option Holder’s delivery of an Exercise Notice to the Company (attention: Plan Administrator) during the calendar year during which the earliest of the following occurs (as each are defined in Treasury Regulation §1.409A-3(a)): (1) the Option Holder’s separation from service, (2) the Option Holder’s disability, (3) the Option Holder’s death, (4) [                            ](5) (a particular date), (5) a change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets of the Company or (6) the occurrence of an unforeseeable emergency.]

 

The Exercise Notice must be accompanied by cash payment in the amount of the exercise price multiplied by the number of Option Shares being purchased plus the appropriate withholding tax. Upon written approval of the Plan Administrator, the Option Holder may pay for all or any portion of the aggregate purchase price for any Option Shares in accordance with the procedures set forth in the Plan, which procedures may be amended from time to time without the consent of the Option Holder.  Upon receipt of the payment of the entire purchase price for the Option Shares so purchased and compliance with all the terms of the Plan and this Agreement, certificates for such Option Shares shall be issued to the Option Holder.

 

2.5                               Termination of Option Holder’s Services.  Notwithstanding any other provision of this Agreement, if the Option Holder’s service with the Company terminates for Cause, all of the Option Holder’s rights hereunder and the Option Period shall immediately terminate (regardless of whether the purchase right is vested).

 

2.6                               Withholding.  The Company may require as a condition precedent to the issuance or transfer of any Option Shares that the Option Holder make such arrangements to the satisfaction of the Plan Administrator for the satisfaction of any federal, state or local withholding tax obligations that may arise including requiring the Option Holder to remit cash to the Company in an amount equal to such withholding.  If the amount so requested is not remitted, the Company may refuse to issue or permit the transfer of the Option Shares.

 

(3)  Note: Choose Alternative A if the exercise price is equal to or more than the fair market value of Textura stock on the date of grant.

 

(4)  Note: Choose Alternative B if the exercise price is less than the fair market value of Textura stock on the date of grant to avoid the new Section 409A penalties to the option holder.  Given the complexity of Code Section 409A and the evolving rules and regulations associated therewith, this exercise language is not final and must be reviewed by counsel and updated prior to issuing any discounted stock options.

 

(5)  Insert a particular date that is not tied to an event (e.g., January 1, 2009 is acceptable, but the date earnings exceed $X is not acceptable)

 

B-3

 

2.7                              Company Purchase Right.

 

(a)                                  Generally.  Option Holder agrees to the following purchase right described in this Section 2.7.  In the event (i) Option Holder’s employment with or provision of services to the Company is terminated for any reason (including, without limitation, termination for cause or as a result of Option Holder’s death or disability) or (ii) Option Holder voluntarily resigns from his or her position with the Company, then, in any case, the Company shall have the right to purchase: (a) all or any part of the shares of the Company (the “Shares”) held by Option Holder (if any); (b) all or any part of the unexercised and vested options (the “Vested Options”) of the Company held by Option Holder (if any); and (c) all or any part of the unexercised and vested warrants (the “Vested Warrants”) of the Company held by the Option Holder (if any).

 

(b)                                  Notice by Company.  The Company’s right to purchase described herein shall be exercised by written notice from the Company to Option Holder (the “Company Notice”) within ninety (90) days after the date of termination of employment or other position of Option Holder with the Company.

 

(c)                                   Purchase Price.  The purchase price for the Shares shall be the fair market value of such Shares (as determined in the sole discretion of the Company) as of the date of the Closing (as defined below).  The purchase price for the Vested Options shall be (a) the fair market value of the shares subject to the Vested Options (as determined in the sole discretion of the Company) as of the date of the Closing minus (b) the exercise price applicable to the Vested Options, less all applicable taxes.  The purchase price for the Vested Warrants shall be (a) the fair market value of the shares subject to the Vested Warrants (as determined in the sole discretion of the Company) as of the date of the Closing minus (b) the exercise price applicable to the Vested Warrants.

 

(d)                                  Payment.

 

(i)                                     Generally.  At the Closing, the Company shall pay the purchase price to Option Holder either (in the Company’s sole discretion) (i) in full at the Closing by cash, check or wire transfer (at the discretion of the Company), or (ii) pursuant to the terms of a promissory note as described below.

 

(ii)                                  Promissory Note.  Any promissory note executed and delivered pursuant to this Section 5(d) shall be unsecured and provide, in the Company’s sole discretion, up to five (5) equal, consecutive, annual payments of principal, together with interest computed upon the unpaid principal amount at a rate equal to the Prime Rate of interest, adjusted upon each anniversary of such promissory note.  The “Prime Rate” shall mean the interest rate publicly quoted in the Wall Street Journal (or any successor thereto) as the prime rate for interest rate determinations for commercial banks.  The promissory note shall reserve the right of the maker to prepay the indebtedness evidenced thereby, in whole or in part at any time, without penalty.  Indebtedness evidenced by a promissory note executed and delivered by the Company hereunder shall be always junior and subordinate in right of payment to all now outstanding indebtedness and obligations of the Company, other than ordinary trade payables and accrued expenses, and such other indebtedness and obligations which the Company at any time shall determine and designate as being prior and senior to any such promissory note, including, without limitation,

 

B-4

 

the Company’s present or future obligations to any banks or other financial institutions providing credit or loans to the Company on a secured or unsecured basis.

 

(d)                                  Closing.  The closing of the purchase described above (the “Closing”) shall take place at the principal office of the Company (or at such other place which may be mutually agreed upon by the parties hereto) on or before sixty (60) days after the date of the Company Notice.  If applicable, at the closing, Option Holder shall transfer to the Company the Shares and the certificates representing the same (duly executed for transfer), free and clear of all liens, claims and encumbrances.  At the request of the Company, Option Holder shall execute all documents that may be reasonably requested by the Company to effectuate such transfer.

 

(e)                                   Spouses and Interests in Shares.  For purposes hereof, all references to Shares, Vested Options or Vested Warrants owned or held by Option Holder shall include, without limitation, all such interests now owned or acquired in the future by Option Holder’s spouse, if any, as marital property, community property or quasi-community property, or pursuant to such spouse’s elective rights to deferred marital property or to an augmented marital property estate

 

(f)                                    Public Offering.  The purchase rights described in this Section 2.7 shall terminate at the sooner of (a) such time as Option Holder no longer holds any shares in the Company or rights to acquire shares in the Company or (b) upon the closing of a Public Offering, as defined in the Company’s bylaws, as such bylaws may be amended from time to time.

 

ARTICLE III

MISCELLANEOUS

 

3.1                               Rights as a Shareholder.  The Option Holder shall not be deemed for any purposes to be a shareholder of the Company solely by reason of holding this Agreement and shall not have any shareholder privileges with respect to any Option Shares, except to the extent that this Option has been exercised with respect thereto and a stock certificate issued therefor.

 

3.2                               Transfer Restrictions.  This Agreement, the Option Holder’s rights hereunder, and the Option Shares are not transferable by the Option Holder, except as provided in the Plan.

 

3.3                               Securities Law Requirements.  As required by the Plan, the right to purchase Option Shares under this Agreement may not be exercised unless, at the time of exercise, the Option Shares to be issued qualify for exemption from, or are registered pursuant to, applicable federal and state securities laws.  In the event there is not then on file with the SEC under the Securities Act of 1933, as amended, an effective registration statement, including a prospectus related to the Option Shares subject to this Agreement, the Option Holder shall execute and deliver to the Company prior to receipt by the Option Holder of any of the Option Shares under this Agreement, an Investment Representation Statement, in a form satisfactory to the Company.

 

3.4                               Adjustments.  The existence of the purchase rights under this Agreement shall not affect in any way the right or power of the Company or its shareholders to make or authorize any or all adjustments, recapitalizations, reorganizations, or other changes in the Company’s capital

 

B-5

 

structure or its business, or any merger or consolidation of the Company, or any issuance of bonds, debentures, preferred, or prior preference stock ahead of or affecting the Common Stock Series A-2 Preferred Stock or the rights thereof, or dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.

 

3.5                               Restrictive Legend.  In addition to any other restrictive legend as may be required by agreement or by the Company, all certificates evidencing the Option Shares shall bear the following legend:

 

“Transfer of the securities evidenced by this certificate is not valid except to the extent that such transfer has complied with the provisions regarding transfer contained in the bylaws, effective as of October 1, 2007, as may be amended from time to time.  A copy of the bylaws, which imposes various restrictions upon the holder of this certificate, is available to interested parties for inspection at the offices of the Corporation.”

 

“The securities evidenced by this certificate have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state, but have been issued in reliance upon exemptions therefrom.  The securities may not be offered, sold, pledged or otherwise transferred without registration under the Securities Act and applicable state securities laws or receipt of an opinion of counsel satisfactory to the Corporation that an exemption from registration is available or that such transfer may otherwise lawfully be made.”

 

3.6                               Professional Advice.  The acceptance and exercise of the rights under this Agreement and the sale of the Options Shares may have consequences under federal and state tax and securities laws, which may vary depending on the individual circumstances of the Option Holder.  Accordingly, the Option Holder acknowledges that he or she has been advised to consult the Option Holder’s legal and tax advisor(s) in connection with this Agreement and the acquisition, holding and disposition of the Option Shares.  The Option Holder acknowledges that neither the Company nor any of its officers, directors, attorneys or agents have made any representations as to the federal and state tax effects of the acceptance of any rights under this Agreement, the exercise of this Option, the vesting of the purchase rights under this Agreement, or the sale of any Option Shares.

 

3.7                               Interpretation.  The terms of this Agreement are subject to the Plan, of which the Option Holder acknowledges receipt.  As a condition of the Company entering into this Agreement, the Option Holder agrees for himself or herself and his or her representatives that any dispute or disagreement that may arise under or as a result of or pursuant to this Agreement shall be determined by the Plan Administrator in its sole discretion, and any interpretation by the Plan Administrator of the terms of this Agreement or the Plan shall be final, binding, and conclusive.

 

3.8                               Notices.  All notices, consents and other exchanges of written material required or implied under this Agreement shall be in writing and delivered in person or by messenger, facsimile, overnight courier or certified mail and shall be sent to the following:

 

B-6

 

	
If   to the Company:
    	
 
    	
Textura   Corporation
    
	
 
    	
 
    	
51   Sherwood Terrace, Suite A
    
	
 
    	
 
    	
Lake   Bluff, IL 60044
    
	
 
    	
 
    	
Attn:   Stock Incentive Plan Administrator
    
	
 
    	
 
    	
 
    
	
If   to Option Holder:
    	
 
    	
The   address on file with the Company
    

 

All notices shall be deemed delivered and received by the receiving party (i) if delivered by messenger, on the date of delivery or on the date delivery was refused by the addressee, (ii) if delivered by facsimile transmission, upon receipt of facsimile confirmation of the party transmitting such notice, or (iii) if delivered by overnight courier or certified mail, on the date of delivery as established by the return receipt, courier service confirmation or similar documentation (or the date on which the courier or postal service, as applicable, confirms that acceptance of delivery was refused by the addressee).  A party may change its notice information set forth above by giving the other party proper notice of the change, but a change to such notice information is only effective when it is actually received.

 

3.9                               Prior Agreements.  This Agreement constitutes the final and complete understanding between the Option Holder and the Company regarding the subject matter hereof and supersedes all prior agreements and understandings (written or oral) concerning the granting of options to purchase stock or other equity interests in the Company.

 

3.10                        Tender of Warrants.  Upon execution of this Agreement, the Option Holder hereby acknowledges that any warrants previously held by the Option Holder in Textura, LLC (if any) are null and void and the Option Holder agrees to immediately return any copies of documents held by the Option Holder regarding such warrants to the Company.

 

3.11                        Acknowledgment of Restrictions Contained in the Company’s Bylaws.  The Option Holder acknowledges that the Shares granted pursuant to this Award are subject to the  restrictions on transfer and other obligations and rights contained in the Company’s bylaws, which are available for inspection at the offices of the Company.

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the Option Grant Date.

 

	
OPTION   HOLDER
    	
TEXTURA   CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:
    	
Patrick   Allin
    
	
 
    	
Its:
    	
Chief   Executive Officer
    
					

 

B-7

 

EXHIBIT C

 

EXERCISE NOTICE

 

Textura Corporation

51 Sherwood Terrace, Suite A

Lake Bluff, IL 60044

Attn:                    Stock Incentive Plan Administrator

 

1.                                       Exercise of Option. Effective as of today,                                     , 20      , the undersigned (“Option Holder”) hereby elects to exercise his or her option to purchase                      shares of the Common Stock (the “Common Stock”) or                    shares of the Series A-2 Preferred Stock (the “Series A-2 Stock”) of Textura Corporation (the “Company”), under and pursuant to the Company’s Stock Incentive Plan (the “Plan”) and the Stock Option Agreement dated                                     , 20       (the “Option Agreement”).

 

2.                                       Delivery of Payment/Withholding. Option Holder herewith delivers to the Company the full purchase price of the shares of Common Stock or Series A-2 Stock (as applicable) and any applicable tax withholding (unless other arrangements have been made for such withholding), as set forth in the Option Agreement.

 

3.                                       Rights as Shareholder. Until the issuance of the shares of Common Stock or Series A-2 Stock, as applicable (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder shall exist due to the Option Holder’s exercise of the Option. The certificate evidencing the shares of Common Stock or Series A-2 Stock (as applicable) shall be issued to Option Holder as soon as practicable after the Option is exercised.  No adjustment shall be made for a dividend or other right for which the record date is prior to the date of issuance except as provided in the Plan.

 

4.                                       Tax Consultation. Option Holder understands that Option Holder may suffer adverse tax consequences as a result of Option Holder’s purchase or disposition of the shares of Common Stock or Series A-2 Stock (as applicable). Option Holder represents that Option Holder has consulted with any tax consultants Option Holder deems advisable in connection with the purchase or disposition of the shares of Common Stock or Series A-2 Stock (as applicable) and that Option Holder is not relying on the Company for any tax advice.

 

5.                                      Company Purchase Right.

 

(a)                                  Generally.  Option Holder agrees to the following purchase right described in this Section 5.  In the event (i) Option Holder’s employment with or provision of services to the Company is terminated for any reason (including, without limitation, termination for cause or as a result of Option Holder’s death or disability) or (ii) Option Holder voluntarily resigns from his or her position with the Company, then, in any case, the Company shall have the right to purchase: (a) all or any part of the shares of the Company (the “Shares”) held by Option Holder (if any); (b) all or any part of the unexercised and vested options (the “Vested Options”) of the

 

C-1

 

Company held by Option Holder (if any); and (c) all or any part of the unexercised and vested warrants (the “Vested Warrants”) of the Company held by the Option Holder (if any).

 

(b)                                  Notice by Company.  The Company’s right to purchase described herein shall be exercised by written notice from the Company to Option Holder (the “Company Notice”) within ninety (90) days after the date of termination of employment or other position of Option Holder with the Company.

 

(c)                                   Purchase Price.  The purchase price for the Shares shall be the fair market value of such Shares (as determined in the sole discretion of the Company) as of the date of the Closing (as defined below).  The purchase price for the Vested Options shall be (a) the fair market value of the shares subject to the Vested Options (as determined in the sole discretion of the Company) as of the date of the Closing minus (b) the exercise price applicable to the Vested Options, less all applicable taxes.  The purchase price for the Vested Warrants shall be (a) the fair market value of the shares subject to the Vested Warrants (as determined in the sole discretion of the Company) as of the date of the Closing minus (b) the exercise price applicable to the Vested Warrants.

 

(d)                                  Payment.

 

(i)                                     Generally.  At the Closing, the Company shall pay the purchase price to Option Holder either (in the Company’s sole discretion) (i) in full at the Closing by cash, check or wire transfer (at the discretion of the Company), or (ii) pursuant to the terms of a promissory note as described below.

 

(ii)                                  Promissory Note.  Any promissory note executed and delivered pursuant to this Section 5(d) shall be unsecured and provide, in the Company’s sole discretion, up to five (5) equal, consecutive, annual payments of principal, together with interest computed upon the unpaid principal amount at a rate equal to the Prime Rate of interest, adjusted upon each anniversary of such promissory note.  The “Prime Rate” shall mean the interest rate publicly quoted in the Wall Street Journal (or any successor thereto) as the prime rate for interest rate determinations for commercial banks.  The promissory note shall reserve the right of the maker to prepay the indebtedness evidenced thereby, in whole or in part at any time, without penalty.  Indebtedness evidenced by a promissory note executed and delivered by the Company hereunder shall be always junior and subordinate in right of payment to all now outstanding indebtedness and obligations of the Company, other than ordinary trade payables and accrued expenses, and such other indebtedness and obligations which the Company at any time shall determine and designate as being prior and senior to any such promissory note, including, without limitation, the Company’s present or future obligations to any banks or other financial institutions providing credit or loans to the Company on a secured or unsecured basis.

 

(d)                                  Closing.  The closing of the purchase described above (the “Closing”) shall take place at the principal office of the Company (or at such other place which may be mutually agreed upon by the parties hereto) on or before sixty (60) days after the date of the Company Notice.  If applicable, at the closing, Option Holder shall transfer to the Company the Shares and the certificates representing the same (duly executed for transfer), free and clear of all

 

C-2

 

liens, claims and encumbrances.  At the request of the Company, Option Holder shall execute all documents that may be reasonably requested by the Company to effectuate such transfer.

 

(e)                                   Spouses and Interests in Shares.  For purposes hereof, all references to Shares, Vested Options or Vested Warrants owned or held by Option Holder shall include, without limitation, all such interests now owned or acquired in the future by Option Holder’s spouse, if any, as marital property, community property or quasi-community property, or pursuant to such spouse’s elective rights to deferred marital property or to an augmented marital property estate

 

(f)                                    Public Offering.  The purchase rights described in this Section 5 shall terminate at the sooner of (a) such time as Option Holder no longer holds any shares in the Company or rights to acquire shares in the Company or (b) upon the closing of a Public Offering, as defined in the Company’s bylaws, as such bylaws may be amended from time to time.

 

6.                                       Entire Agreement.  This Exercise Notice, the Plan, the Option Agreement, and the Investment Representation Statement (contained in Attachment 1 hereto and also delivered herewith if required by the Company) constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Option Holder with respect to the subject matter hereof.

 

7.                                       Effect of Invalid Provisions; Governing Law.  The invalidity or unenforceability of any provision of this Exercise Notice shall not affect the other provisions hereof, and this Exercise Notice shall be construed in all respects as if such invalid or unenforceable provision were omitted.  To the extent not preempted by federal law, this Exercise Notice, and all agreements hereunder, shall be construed in accordance with and governed by the laws of the State of Illinois, without regard to that state’s conflict of laws principles or rules of construction concerning the draftsman hereof.

 

8.                                       Benefit and Assignment.  This Exercise Notice shall be binding upon and shall operate for the benefit of the parties hereto and their respective personal representatives, executors or administrators, successors and assigns.

 

9.                                       Counterparts.  This Exercise Notice may be executed in one or more counterparts, including by facsimile or electronic signature, each counterpart of which shall be deemed an original, provided that all such copies, in the aggregate, shall contain the signatures of all parties hereto.

 

	
Submitted   by:
    	
 
    	
Accepted   by:
    
	
 
    	
 
    	
 
    
	
OPTION   HOLDER
    	
 
    	
TEXTURA   CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Signature
    	
 
    	
 
    
	
 
    	
 
    	
Name:   Patrick Allin
    
	
 
    	
 
    	
 
    

 

C-3

 

	
Print   Name
    	
 
    	
Its:   Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
 
    	
 
    	
Date   Received
    

 

 

The undersigned spouse of the Option Holder identified above hereby acknowledges that the undersigned spouse has read the foregoing Exercise Notice and agrees and consents to all of its terms (having been advised to retain separate representation by counsel of the spouse’s own choosing with respect to the execution of this Exercise Notice, and having done so or declined to do so).

 

	
Spouse’s Signature:
    	
 
    	
 
    	
 
    
	
Spouse’s Name:
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
 
    

 

C-4

 

ATTACHMENT 1 TO EXHIBIT C

 

INVESTMENT REPRESENTATION STATEMENT

 

OPTION HOLDER:

 

COMPANY:                                                                                                    Textura Corporation

 

SECURITY:                                                                                                    Common Stock or Series A-2 Preferred Stock

 

AMOUNT:

 

DATE:

 

In connection with the purchase of the above-listed securities (the “Securities”), the undersigned Option Holder represents to the Company the following:

 

(a)                                 The Option Holder has had an opportunity to discuss the Company’s business, management, financial affairs and the terms and conditions of the offering of the shares of Common Stock with the Company’s management.  The Option Holder understands that such discussions, as well as other written information delivered by the Company to the Option Holder, were intended to describe the aspects of the Company’s business which, at the time such information was provided, it believed to be material.

 

(b)                                 Option Holder is acquiring the shares of Common Stock or Series A-2 Stock (as applicable) for its own account for investment, not with a view to, or for sale in connection with, any distribution thereof, nor with any present intention of distributing or selling the same; and the Option Holder does not presently have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the shares of Common Stock or Series A-2 Stock (as applicable).  The Option Holder has not been formed for the specific purpose of acquiring the shares of Common Stock or Series A-2 Stock (as applicable).

 

(c)                                  Option Holder understands that the shares of Common Stock or Series A-2 Stock (as applicable) have not been, and will not be, registered under the Securities Act, and have been issued by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Participant’s representations as expressed herein.  The Option Holder understands that the shares of Common Stock or Series A-2 Stock (as applicable) are restricted securities under applicable U.S. federal and state securities laws and that, pursuant to these laws, the Option Holder must hold the shares of Common Stock or Series A-2 Stock (as applicable)  indefinitely unless they are registered with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification requirements is available.  The Option Holder acknowledges that the Company has no obligation to register or qualify the shares of Common Stock or Series A-2 Stock (as applicable) for resale.  The Option Holder further acknowledges that if an exemption from registration or qualification

 

C-5

 

is available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the shares of Common Stock or Series A-2 Stock (as applicable), and on requirements relating to the Company which are outside of the

 

C-6

 

Option Holder’s control, and which the Company is under no obligation, and may not be able, to satisfy.

 

(d)                                 The Option Holder understands that no public market now exists for any of the shares of Common Stock or Series A-2 Stock (as applicable) issued by the Company, and that the Company has made no assurances that a public market will ever exist for such shares.

 

 

	
 
    	
 
    
	
 
    	
Signature   of Option Holder
    
	
 
    	
 
    
	
 
    	
Date:
    	
 
    

 

 

EXHIBIT D

 

FORM OF RESTRICTED STOCK UNIT AWARD AGREEMENT

 

TEXTURA CORPORATION

STOCK INCENTIVE PLAN

RESTRICTED STOCK UNIT AWARD AGREEMENT

 

*  *  *  *  *

 

	
Restricted   Stock Unit Recipient:
    	
 
    
	
 
    	
 
    
	
Restricted   Stock Unit Grant Date (“Grant Date”):
    	
 
    
	
 
    	
 
    
	
Number   of Restricted Stock Units:
    	
 
    
	
 
    	
 
    
	
Restricted   Stock Unit Vesting Date (“Vesting Date”):
    	
 
    

 

THIS RESTRICTED STOCK UNIT AWARD AGREEMENT (this “Agreement”), dated as of the Grant Date specified above, by and between Textura Corporation, a Delaware corporation (the “Company”), and the restricted stock unit recipient named above (the “Recipient”), is entered into pursuant to the Textura Corporation Stock Incentive Plan (as the same may be amended, restated, supplemented and otherwise modified from time to time, the “Plan”).  All capitalized terms not otherwise defined in the text of this Agreement have the meanings attributed to them in the Plan.

 

ARTICLE I
  RESTRICTED STOCK UNIT ISSUANCE

 

1.1                               Grant of Restricted Stock Units.  Subject to the terms and conditions of the Plan and this Agreement, the Company hereby grants to the Recipient the number of restricted stock units specified above (the “Restricted Stock Units”).  Each Restricted Stock Unit is a notional amount that represents one unvested share of the Company’s Common Stock.  Each Restricted Stock Unit constitutes an unfunded and unsecured promise of the Company to deliver (or cause to be delivered) to the Recipient, subject to the terms and conditions of the Plan and this Agreement, a share of Common Stock (or other converted ownership interest as provided under Section 3.3) or a cash payment equal to the value of a share of Common Stock, if and when the Restricted Stock Unit becomes payable.

 

1.2                               Rights of Restricted Stock Unit Recipient.  The Recipient shall not be deemed for any purposes to be a shareholder of the Company or have any voting rights with respect to Restricted Stock Units, nor shall he or she receive, or be entitled to receive, any dividends or dividend equivalents with respect to the Restricted Stock Units.

 

 

1.3                               Restricted Stock Unit Account.  The Company shall maintain an account on its books in the name of the Recipient, which shall reflect the number of Restricted Stock Units awarded to the Recipient.

 

ARTICLE II

VESTING OF RESTRICTED STOCK UNITS

 

2.1                               Vesting Date.  The Recipient is only entitled to payment in respect of a Restricted Stock Unit on the payment date provided in Article III of this Agreement to the extent such right is vested.  Subject to the terms and conditions contained herein, Restricted Stock Units shall fully vest on the Vesting Date set forth on the first page of this Agreement, provided that the Recipient remains in service with the Company continuously during the period from the Grant Date through the Vesting Date.  Except as provided in Section 2.3 of this Agreement, if the Recipient’s service with the Company terminates for any reason prior to the Vesting Date, the Recipient’s rights under this Agreement shall immediately terminate.

 

2.2                               Vesting Upon a Change in Control or Termination of Agreement.  If, while the Recipient is in the service of the Company, the Company experiences a Change in Control, as defined in Section 3.2 of this Agreement, or the Company terminates this Agreement before the Vesting Date, then the Restricted Stock Units shall become fully vested as of the effective date of such Change in Control or termination of the Agreement.

 

2.3                               Vesting Upon Termination Due to Disability or Death.  If, before the Vesting Date, the Recipient’s service with the Company terminates by reason of Disability or death, then the Restricted Stock Units shall become fully vested as of the date of such termination without regard to the Vesting Date specified above.

 

2.4                           Forfeiture Upon Termination For Cause.  Notwithstanding any other provision of this Agreement, if the Recipient’s service with the Company terminates for Cause, all of the Recipient’s rights under this Agreement shall immediately terminate, regardless of whether the Recipient’s Restricted Stock Units are vested.

 

ARTICLE III

PAYMENT IN RESPECT OF RESTRICTED STOCK UNITS

 

3.1                               Time of Payment.  Subject to Section 3.4 of this Agreement, the Recipient (or his or her Beneficiary, as defined in Section 3.5 of this Agreement) shall be entitled to payment in respect of the Recipient’s vested Restricted Stock Units as soon as administratively feasible and in all events within 30 days following a Change in Control, as defined in Section 3.2 of this Agreement.

 

3.2                               Change in Control.  For purposes of this Agreement, a “Change in Control” means the occurrence of any of the following events, but only to the extent such event constitutes a “change in control event” as that term is defined for purposes of Code Section 409A:

 

 

(a)                                 any one “Person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), or more than one Person acting as a group (including owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company, but not including Persons solely because they purchase or own stock of the Company at the same time or as a result of the same public offering), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Person or Persons) ownership of stock of the Company possessing fifty  percent (50%) or more of the total voting power of the Company’s stock, but only if such Person or group is not considered to effectively control the Company (within the meaning of Section 1.409A-3(i)(5)(vi) of the Treasury Regulations) prior to such acquisition;

 

(b)                                  any one Person, or more than one Person acting as a group (including owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company, but not including Persons solely because they purchase or own stock of the Company at the same time or as a result of the same public offering), acquires ownership of stock of the Company that, together with stock held by such Person or group, constitutes more than fifty  percent (50%) of the total voting power or total fair market value of the stock of the Company, but only if such Person or group was not considered to own more than fifty percent (50%) of the total voting power or total fair market value of the stock of the Company prior to such acquisition; or

 

(c)                                   any one Person, or more than one Person acting as a group (including owners of a corporation that enters into a merger, consolidation, purchase or acquisition of assets, or similar business transaction with the Company, but not including Persons solely because they purchase assets of the Company at the same time), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Person or group) assets from the Company that have a total gross fair market value (determined without regard to any liabilities associated with such assets) equal to or more than fifty  percent (50%) of the total gross fair market value of all of the assets of the Company (determined without regard to any liabilities associated with such assets) immediately before such acquisition or acquisitions, except where the assets are transferred to (i) a shareholder of the Company (immediately before the asset transfer) in exchange for or with respect to its stock, (ii) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company immediately after the asset transfer, (iii) a Person, or more than one Person acting as a group, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the Company immediately after the asset transfer, or (iv) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a Person described in (iii), above, immediately after the asset transfer.

 

3.3                               Form of Payment.  The Company may, in its absolute discretion, fulfill its obligations with respect to all or any portion of the vested Restricted Stock Units that become payable to the Recipient (or his or her Beneficiary) by:

 

(a)                                 making of a cash payment in an amount equal to the Fair Market Value of the Company’s Common Stock as of the date of the Change in Control that corresponds with the number of vested and payable Restricted Stock Units;

 

 

(b)                                 delivery of (i) the number of shares of the Company’s Common Stock that corresponds with the number of vested and payable Restricted Stock Units or (ii) such other ownership interest as such shares of Common Stock that correspond with the vested Restricted Stock Units may be converted into by virtue of the Change in Control transaction; or

 

(c)                                  delivery of any combination of shares of the Company’s Common Stock (or other converted ownership interest) and cash having an aggregate Fair Market Value equal to the Fair Market Value of the Company’s Common Stock as of the date of the Change in Control that corresponds to the number of vested and payable Restricted Stock Units.

 

3.4                               Termination of the Agreement.  The Company may, in its absolute discretion, terminate this Agreement at any time without any liability hereunder for any such termination.  Upon termination of the Agreement, any vested Restricted Stock Units will be paid in accordance with Code Section 409A and Section 1.409A-3(j)(4)(ix) (or any similar or successor provisions).  The value of any vested Restricted Stock Units that become payable in connection with the termination of this Agreement shall be determined as of the date the Company has taken all necessary action, for purposes of Code Section 409A, to irrevocably terminate and liquidate this Agreement.

 

Notwithstanding any provision of the Plan or Agreement to the contrary, in the event of a Public Offering, the Company will terminate this Agreement and all vested Restricted Stock Units shall be paid in full on the first anniversary of such termination, in accordance with Code Section 409A and Treasury Regulation Section 1.409A-3(j)(4)(ix) (or any similar or successor provisions).  For purposes of this Agreement, the term “Public Offering” shall have the meaning set forth in the Company’s bylaws, as such bylaws may be amended from time to time.

 

3.5                               Designation of Beneficiary.  The Recipient may designate a person or persons to receive payment in respect of the Recipient’s vested Restricted Stock Units in the event that the Recipient dies prior to the payment in respect of such Restricted Stock Units (a “Beneficiary”).  Such designation, or any change to a prior designation of a Beneficiary, must be done by giving notice to the Plan Administrator on a form designated by the Plan Administrator.  If more than one person is designated as the Beneficiary, their respective interests shall be as indicated on the designation form.  In the event of the Recipient’s death, the Recipient’s designated Beneficiary or Beneficiaries will be entitled to receive payment in respect of the Recipient’s vested Restricted Stock Units at the time such Restricted Stock Units become payable, in accordance with the terms of this Agreement.

 

A copy of the death notice or other sufficient documentation must be filed with and approved by the Plan Administrator.  If upon the death of the Recipient the Plan Administrator has determined that there is no designated Beneficiary for part or all of the Recipient’s vested Restricted Stock Units, such Restricted Stock Units shall be paid, in accordance with the terms of the Agreement, to the Recipient’s surviving spouse, or, if none, to the Recipient’s estate (such spouse or estate shall be deemed to be the Beneficiary for purposes of the Agreement).

 

 

3.6                               Withholding.  The Company may require as a condition precedent to the issuance, vesting, or payment in respect of any Restricted Stock Unit that the Recipient (or his or her Beneficiary) make such arrangements acceptable to the Plan Administrator to satisfy any federal, state or local withholding tax obligations that may arise in connection with such issuance, vesting, or payment, including requiring the deduction of any such required withholding from any payments due or to become due to the Recipient (or his or her Beneficiary) or the requiring the Recipient (or his or her Beneficiary) to remit cash to the Company in an amount equal to such withholding.  If the amount so requested is not remitted, the Company may refuse to issue, vest, or pay, as applicable, a Restricted Stock Unit.

 

ARTICLE IV

MISCELLANEOUS

 

4.1                               Transfer Restrictions.  This Agreement, the Recipient’s rights hereunder, and the Restricted Stock Units are not transferable by the Recipient, except as otherwise provided in the Plan and this Agreement.

 

4.2                               Securities Law Requirements.  No shares will be delivered to a Recipient unless, at the time of delivery, the shares qualify for exemption from, or are registered pursuant to, applicable federal and state securities laws.  In the event there is not then on file with the SEC under the Securities Act of 1933, as amended, an effective registration statement, including a prospectus related to the shares subject to this Agreement, the Recipient shall execute and deliver to the Company prior to receipt by the Recipient of any of shares under this Agreement, an Investment Representation Statement, in a form satisfactory to the Company.

 

4.3                               Adjustments.  The Recipient’s right to Restricted Stock Units under this Agreement shall not affect in any way the right or power of the Company or its shareholders to make or authorize any or all adjustments, recapitalizations, reorganizations, or other changes in the Company’s capital structure or its business, or any merger or consolidation of the Company, or any issuance of bonds, debentures, preferred, or prior preference stock ahead of or affecting the Common Stock Series A-2 Preferred Stock or the rights thereof, or dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.

 

4.4                               Restrictive Legend.  In addition to any other restrictive legend as may be required by agreement or by the Company, all certificates evidencing shares shall bear the following legend, to the extent applicable at the time such shares are transmitted:

 

“Transfer of the securities evidenced by this certificate is not valid except to the extent that such transfer has complied with the provisions regarding transfer contained in the bylaws, effective as of October 1, 2007, as may be amended from time to time.  A copy of the bylaws, which imposes various restrictions upon the holder of this certificate, is available to interested parties for inspection at the offices of the Corporation.

 

The securities evidenced by this certificate have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities

 

 

laws of any state, but have been issued in reliance upon exemptions therefrom.  The securities may not be offered, sold, pledged or otherwise transferred without registration under the Securities Act and applicable state securities laws or receipt of an opinion of counsel satisfactory to the Corporation that an exemption from registration is available or that such transfer may otherwise lawfully be made.”

 

4.5                               Professional Advice.  The acceptance and exercise of the rights under this Agreement may have consequences under federal and state tax and securities laws, which may vary depending on the individual circumstances of the Recipient.  Accordingly, the Recipient acknowledges that he or she has been advised to consult the Recipient’s legal and tax advisor(s) in connection with this Agreement.  The Recipient acknowledges that neither the Company nor any of its officers, directors, attorneys or agents have made any representations as to the federal and state tax effects of the acceptance of any rights under this Agreement.

 

4.6                               Interpretation.  The terms of this Agreement are subject to the Plan, of which the Recipient acknowledges receipt.  As a condition of the Company entering into this Agreement, the Recipient agrees for himself or herself and his or her representatives that any dispute or disagreement that may arise under or as a result of or pursuant to this Agreement shall be determined by the Plan Administrator in its sole discretion, and any interpretation by the Plan Administrator of the terms of this Agreement or the Plan shall be final, binding, and conclusive.

 

4.7                               Notices.  All notices, consents and other exchanges of written material required or implied under this Agreement shall be in writing and delivered in person or by messenger, facsimile, overnight courier or certified mail and shall be sent to the following:

 

	
If   to the Company:
    	
 
    	
Textura   Corporation
    
	
 
    	
 
    	
51   Sherwood Terrace, Suite A
    
	
 
    	
 
    	
Lake   Bluff, IL 60044
    
	
 
    	
 
    	
Attn:   Stock Incentive Plan Administrator
    
	
 
    	
 
    	
 
    
	
If   to Recipient:
    	
 
    	
The   address on file with the Company
    

 

All notices shall be deemed delivered and received by the receiving party (i) if delivered by messenger, on the date of delivery or on the date delivery was refused by the addressee, (ii) if delivered by facsimile transmission, upon receipt of facsimile confirmation of the party transmitting such notice, or (iii) if delivered by overnight courier or certified mail, on the date of delivery as established by the return receipt, courier service confirmation or similar documentation (or the date on which the courier or postal service, as applicable, confirms that acceptance of delivery was refused by the addressee).  A party may change its notice information set forth above by giving the other party proper notice of the change, but a change to such notice information is only effective when it is actually received.

 

4.8                               Rights Are Unsecured.  Under this Agreement, the right of a Recipient or Beneficiary to receive payment hereunder shall be an unsecured claim against the general assets of the Company, and neither the Recipient nor any Beneficiary shall have any rights in or against any specific assets of the Company or any affiliate or subsidiary. All amounts credited to the

 

 

Recipient shall constitute general assets of the Company, and may be disposed of by the Company at such time and for such purposes as it may deem appropriate.

 

4.9                                 Prior Agreements.  This Agreement constitutes the final and complete understanding between the Recipient and the Company regarding the subject matter hereof and supersedes all prior agreements and understandings (written or oral) concerning the Restricted Stock Units specified herein or other equity interests in the Company.

 

4.10                        Acknowledgment of Restrictions Contained in the Company’s Bylaws.  The Recipient acknowledges that any shares delivered pursuant to this Agreement are subject to the  restrictions on transfer and other obligations and rights contained in the Company’s bylaws, which are available for inspection at the offices of the Company.

 

4.11                        Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of all successors and assigns of the Company and the Recipient, including without limitation, the estate of the Recipient and the executor, administrator or trustee of such estate or any receiver or trustee in bankruptcy or representative of the Recipient’s creditors.

 

4.12                        Severability.  The terms or conditions of this Agreement shall be deemed severable and the invalidity or unenforceability of any term or condition hereof shall not affect the validity or enforceability of the other terms and conditions set forth herein.

 

4.13                        Code Section 409A.  This Agreement is intended to comply with Code Section 409A and all guidance issued thereunder by the U.S. Internal Revenue Service in all respects and shall be administered in a manner consistent with such intent.  If an unintentional operational failure occurs with respect to Code Section 409A requirements, the Recipient shall fully cooperate with the Company to correct the failure, to the extent possible, in accordance with any correction procedure established by the U.S. Internal Revenue Service.

 

4.14                        No Employment Rights.  Nothing in the rules, the operation of the Plan or this Agreement forms part of any contract of employment or employment relationship between the Recipient and the Company.  Participation in the Plan and receipt of this Award does not create any right to, or expectation of, continued employment or a continued employment relationship, nor shall it interfere in any way with the Company’s right to terminate the Recipient’s employment at any time.

 

4.15                        Enforcement.  Neither this Agreement nor the Plan confers on the Recipient any legal or equitable rights (other than those related to the Restricted Stock Unit award) against the Company or directly or indirectly gives rise to any cause of action at law or in equity against the Company.Exhibit 10.5

 

CONSTRUCTION LOAN AGREEMENT

 

Dated August 14, 2007

 

by and between

 

Textura, LLC,

a Wisconsin limited liability company, as 

Borrower

 

and

 

First Midwest Bank as Lender

 

1405 Lake Cook Road, 
 Deerfield, Illinois

 

 

TABLE OF CONTENTS

 

	
 
    	
Page
    
	
 
    	
 
    
	
ARTICLE 1 INCORPORATION AND DEFINITIONS
    	
1
    
	
 
    	
1.1
    	
Incorporation   and Definitions
    	
1
    
	
 
    	
 
    
	
ARTICLE 2 REPRESENTATIONS AND WARRANTIES
    	
4
    
	
 
    	
2.1
    	
Representations   and Warranties
    	
4
    
	
 
    	
2.2
    	
Continuation   of Representations and Warranties
    	
7
    
	
 
    	
 
    
	
ARTICLE 3 THE LOAN
    	
8
    
	
 
    	
3.1
    	
Agreement   to Borrow and Lend
    	
8
    
	
 
    	
3.2
    	
Interest
    	
8
    
	
 
    	
3.3
    	
Maturity   Date,
    	
8
    
	
 
    	
3.4
    	
Equity   Requirements
    	
8
    
	
 
    	
 
    
	
ARTICLE 4 LOAN DOCUMENTS
    	
8
    
	
 
    	
4.1
    	
Loan   Documents
    	
8
    
	
 
    	
 
    
	
ARTICLE 5 CONDITIONS TO LOAN OPENING
    	
9
    
	
 
    	
5.1
    	
Conditions   to Loan Opening
    	
9
    
	
 
    	
5.2
    	
Termination   of Agreement
    	
16
    
	
 
    	
 
    
	
ARTICLE 6 DISBURSEMENTS
    	
16
    
	
 
    	
6.1
    	
Conditions   Precedent to Disbursement of Loan Proceeds
    	
16
    
	
 
    	
6.2
    	
Loan   Disbursement
    	
17
    
	
 
    	
6.3
    	
Documents   Required for Each Construction Disbursement
    	
18
    
	
 
    	
6.4
    	
Loan   In Balance
    	
20
    
	
 
    	
6.5
    	
Foundation   Work
    	
20
    
	
 
    	
6.6
    	
Lender’s   Verification of Contracts
    	
21
    
	
 
    	
6.7
    	
Payments   Directly to Subcontractors
    	
21
    
	
 
    	
6.8
    	
Escrow   Payouts
    	
21
    
	
 
    	
6.9
    	
Frequency   of Payouts
    	
21
    
	
 
    	
6.10
    	
Consultants
    	
21
    
	
 
    	
6.11
    	
Retain   ages
    	
22
    
	
 
    	
6.12
    	
Stored   and Unincorporated Materials
    	
22
    
	
 
    	
6.13
    	
Final   Disbursement
    	
22
    
	
 
    	
6.14
    	
Expenses   and Advances Secured by Mortgage
    	
23
    
	
 
    	
6.15
    	
Acquiescence   not a Waiver
    	
23
    
	
 
    	
6.16
    	
Lender’s   Action for Lender’s Own Protection Only
    	
23
    
	
 
    	
 
    
	
ARTICLE 7 RESERVES
    	
24
    
	
 
    	
7.1
    	
Setting   Up and Adjusting Reserves
    	
24
    
	
 
    	
7.2
    	
Disbursement   of Reserves
    	
24
    
	
 
    	
7.3
    	
No   Interest Payable on Reserves
    	
24
    
	
 
    	
7.4
    	
Application   of Reserves in Case of Event of Default
    	
25
    

 

i

 

	
ARTICLE 8 FURTHER AGREEMENTS OF BORROWER
    	
25
    
	
 
    	
8.1
    	
Construction   of Project
    	
25
    
	
 
    	
8.2
    	
Changes   in Plans and Specifications and Contracts; Extras
    	
25
    
	
 
    	
8.3
    	
Mechanics’   Liens, Taxes and Contest Thereof
    	
25
    
	
 
    	
8.4
    	
Fixtures   and Personal Property
    	
26
    
	
 
    	
8.5
    	
Proceedings   to Enjoin or Prevent Construction
    	
26
    
	
 
    	
8.6
    	
Event   of Defaults Under Construction Contracts
    	
26
    
	
 
    	
8.7
    	
Furnishing   Information
    	
27
    
	
 
    	
8.8
    	
Excess   Indebtedness
    	
28
    
	
 
    	
8.9
    	
Compliance   with Covenants; Prohibition Against Additional Recordings
    	
28
    
	
 
    	
8.10
    	
Project   Accounts
    	
28
    
	
 
    	
8.11
    	
Distributions
    	
28
    
	
 
    	
8.12
    	
Further   Assurance
    	
28
    
	
 
    	
 
    
	
ARTICLE 9 CASUALTIES AND CONDEMNATION
    	
28
    
	
 
    	
9.1
    	
Application   of Insurance Proceeds and Condemnation Awards
    	
28
    
	
 
    	
 
    
	
ARTICLE 10 ASSIGNMENTS, SALE AND ENCUMBRANCES
    	
29
    
	
 
    	
10.1
    	
Lender’s   Right to Assign
    	
29
    
	
 
    	
10.2
    	
Prohibition   of Assignments and Encumbrances by Borrower
    	
29
    
	
 
    	
 
    
	
ARTICLE 11 EVENTS OF DEFAULT BY BORROWER
    	
29
    
	
 
    	
11.1
    	
Event   of Default Defined
    	
29
    
	
 
    	
 
    
	
ARTICLE 12 LENDER’S REMEDIES UPON EVENT OF   DEFAULT
    	
31
    
	
 
    	
12.1
    	
Remedies   Conferred upon Lender
    	
31
    
	
 
    	
12.2
    	
Right   of Lender to Make Advances to Cure Event of Defaults; Obligatory Advances
    	
32
    
	
 
    	
12.3
    	
Attorneys’   Fees
    	
33
    
	
 
    	
12.4
    	
No   Waiver
    	
33
    
	
 
    	
12.5
    	
Default   Rate
    	
33
    
	
 
    	
 
    
	
ARTICLE 13 MISCELLANEOUS
    	
33
    
	
 
    	
13.1
    	
Time   is of the Essence
    	
33
    
	
 
    	
13.2
    	
Lender’s   Determination of Facts
    	
33
    
	
 
    	
13.3
    	
Prior   Agreements
    	
34
    
	
 
    	
13.4
    	
Disclaimer   by Lender
    	
34
    
	
 
    	
13.5
    	
Indemnification
    	
34
    
	
 
    	
13.6
    	
Erection   of Sign
    	
34
    
	
 
    	
13.7
    	
Captions
    	
35
    
	
 
    	
13.8
    	
Inconsistent   Terms and Partial Invalidity
    	
35
    
	
 
    	
13.9
    	
Gender   and Number
    	
35
    
	
 
    	
13.10
    	
Notices
    	
35
    
	
 
    	
13.11
    	
Effect   of Agreement
    	
36
    
	
 
    	
13.12
    	
Governing   Law
    	
36
    
	
 
    	
13.13
    	
Consent   to Jurisdiction
    	
36
    
	
 
    	
13.14
    	
Waiver   of Jury Trial
    	
36
    

 

ii

 

	
 
    	
13.15
    	
Waiver   of Defenses
    	
36
    
	
 
    	
13.16
    	
Counterparts;   Facsimile Signatures
    	
37
    

 

EXHIBITS

 

EXHIBIT A - THE LAND

EXHIBIT B - PERMITTED EXCEPTIONS

EXHIBIT C - PROJECT BUDGET

EXHIBIT D - LOAN REQUISITION ADVANCE

 

iii

 

CONSTRUCTION LOAN AGREEMENT

 

THIS CONSTRUCTION LOAN AGREEMENT (“Agreement”), is made and entered into as of August 14, 2007, by and between Textura, LLC, a Wisconsin limited liability company (“Borrower”), and First Midwest Bank, its successors and assigns (“Lender”).

 

R E C I T A L S :

 

Borrower is about to acquire title to the commercial building commonly known as 1405 Lake Cook Road, Deerfield, Cook County, Illinois and described in Exhibit A attached hereto (“Land”) and proposes to renovate the building for Borrower’s own use (“Improvements). The acquisition of the Land and the Improvements are collectively referred to herein as the “Project”. Borrower has applied to Lender for the Loan (as hereinafter defined) for the purpose of acquiring the Land and Improvements thereon as well as renovation costs and Lender is willing to make the Loan upon the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants and agreements herein contained, the sufficiency of which is hereby acknowledged, the parties hereto represent and agree as follows:

 

ARTICLE 1

 

INCORPORATION AND DEFINITIONS

 

1.1                               Incorporation and Definitions. The foregoing recitals and all exhibits hereto are hereby made a part of this Agreement. The following terms shall have the following meanings in this Agreement:

 

Architect: To be determined post closing.

 

Architect’s Contract: To be entered into post closing.

 

Borrower: Textura, LLC, a Wisconsin limited liability company.

 

Completion Date: August 14, 2008.

 

Construction Commencement Date: Within ninety (90) days after Loan Opening

 

Construction Contracts: The Contract and the Subcontracts.

 

Construction Disbursement: A disbursement of Loan Proceeds for construction of the Project.

 

1

 

Construction Loan: The Construction Loan in the Construction Loan Amount to be made pursuant to, and upon the conditions set forth in, this Agreement, including, without limitation, Section 3.1(c) hereof for up to eighty (80%) percent of hard construction costs plus approved for soft costs such as permits, and fees.

 

Construction Loan Amount: Twelve Million and 00/100 Dollars ($12,000,000.00).

 

Default Rate: As defined in the Promissory Note.

 

Engineer: To be determined post closing.

 

Engineer’s Contract: To be entered into post closing.

 

Environmental Indemnity Agreement: The Environmental Indemnity Agreement of even date herewith from Borrower in favor of Lender.

 

Environmental Laws: As defined in the Environmental Indemnity Agreement.

 

Equity Requirements: Prior to the Loan Opening Date, Borrower shall have contributed an equity investment in the Project equal to twenty (20%) percent of acquisition costs and a minimum of twenty (20%) percent of all Project Costs. Thereafter, Borrower shall provide additional equity in amounts sufficient to keep the Loan In Balance, as provided in Section 6.4 hereof. The Equity Requirement shall be subject to Lender’s verification of the sources thereof and the timing and manner of funding.

 

Event of Default: One or more of the events or occurrences referred to in Article 11 of this Agreement.

 

General Contractor: To be entered into post closing.

 

General Contract: To be entered into post closing.

 

Hazardous Materials: As defined in the Environmental Indemnity Agreement.

 

Improvements: As defined in the Recitals to this Agreement.

 

Land:  That certain parcel or parcels of real estate legally described in Exhibit A to this Agreement, together with all improvements presently located thereon and all easements and other rights appurtenant thereto.

 

Lender: First Midwest Bank, its successors and assigns.

 

Lender’s Consultant: Such person or entity that Lender may, from time to time, select.

 

Loan:  the Construction Loan to be made pursuant to this Agreement.

 

2

 

Loan Opening: The first disbursement of the Loan.

 

Loan Opening Date: August 14, 2007.

 

Loan Documents: This Agreement, the documents specified in Article 4 hereof and any other instruments evidencing, securing or guarantying obligations of any party under the Loan.

 

Loan Expenses: As defined in Section 6.2(d) hereof.

 

Loan Proceeds: All amounts advanced as part of the Loan, whether advanced directly to Borrower or otherwise.

 

Loan Rate: As defined in the Promissory Note, as the case may be.

 

Maturity Date: August 14, 2009

 

Mortgage: As defined in Section 4 hereof.

 

Permitted Exceptions: The title exceptions specified in Exhibit B hereto.

 

Plans and Specifications: Detailed plans and specifications and/or project manual for the construction of the Project, which are prepared in accordance with the terms of the Architect’s Contract and approved by Lender and Lender’s Consultant, including any shop or field drawings made in furtherance thereof, together with any changes made therein which are permitted under the terms of this Agreement.

 

Premises: The Land and the improvements presently located thereon.

 

Promissory Note: The note referred to in Section 4.1 of this Agreement.

 

Project:  As defined in the Recitals to this Agreement.

 

Project Budget: The Project Budget attached to this Agreement as Exhibit C, or such budget subsequently approved in writing by Borrower and Lender.

 

Project Costs: The costs of the Project as set forth in the Project Budget.

 

Remaining Subcontracts: Those Subcontracts which will not have been executed as of the Loan Opening Date, which are for work and materials not to exceed $100,000.

 

Request for Advance: As defined in Section 6.3 of this Agreement.

 

Reserves: As defined in Section 7.1 of this Agreement.

 

State:  The State of Illinois.

 

3

 

Subcontract: Any contract and/or purchase order between Borrower, the General Contractor or any Subcontractor for the construction or equipping of the Project or for the furnishing of labor or materials for all or any portion of the Project.

 

Subcontractor: Any person or entity having a contract with the General Contractor or any Subcontractor for the construction, equipping or supplying by such Subcontractor of any portion of the Project.

 

Title Insurance Company: Chicago Title Insurance Company.

 

ARTICLE 2

 

REPRESENTATIONS AND WARRANTIES

 

2.1                               Representations and Warranties. To induce Lender to execute and perform this Agreement, Borrower hereby represents, covenants and warrants to Lender as follows:

 

(a)                                 At the Loan Opening and at all times thereafter until the Loan is paid in full, Borrower will have good and merchantable fee simple title to the Land, subject only to the Permitted Exceptions;

 

(b)                                 Borrower is a duly organized limited liability company, validly existing and in good standing under the laws of the State of Wisconsin and is qualified to conduct business in the State of Illinois. Borrower has full power and authority to conduct its business as presently conducted, to develop the Project, to enter into this Agreement and to perform all of its duties and obligations under this Agreement and under the Loan Documents; such execution and performance have been duly authorized by all necessary member approval. Borrower has not been convicted of a felony and there are no proceedings or investigations being conducted involving criminal activities of Borrower or any of its unit owners;

 

(c)                                  This Agreement, the Promissory Note, the Mortgage, the other Loan Documents and any other documents and instruments required to be executed and delivered by Borrower in connection with this Loan, when executed and delivered, will constitute the duly authorized, valid and legally binding obligations of the party required to execute the same and will be enforceable strictly in accordance with their respective terms (except to the extent that enforceability may be affected or limited by applicable bankruptcy, insolvency and other similar debtor relief laws affecting the enforcement of creditors’ rights generally); no basis presently exists for any claim against Lender under this Agreement, under the Loan Documents or with respect to the Loan; enforcement of this Agreement and the Loan Documents is subject to no defenses of any kind;

 

4

 

(d)                                 The execution, delivery and performance of this Agreement, the Promissory Note, the Mortgage, the other Loan Documents and any other documents or instruments to be executed and delivered by Borrower pursuant to this Agreement or in connection with this Loan and the construction of the Project will not: (i) violate any provisions of law or any applicable regulation, order, writ, injunction or decree of any court or governmental authority, or (ii) conflict with, be inconsistent with, or result in any breach or default of any of the terms, covenants, conditions or provisions of any indenture, mortgage, deed of trust, instrument, document, agreement or contract of any kind to which Borrower is a party or by which it may be bound. Borrower is not in default (without regard to grace or cure periods) under any contract or agreement to which it is a party, the effect of which default will adversely affect the performance by Borrower of its obligations pursuant to and as contemplated by the terms and provisions of this Agreement;

 

(e)                                  No condition, circumstance, event, agreement, document, instrument, restriction, litigation or proceeding (or threatened litigation or proceeding or basis therefor) exists which could adversely affect the validity or priority of the liens and security interests granted Lender under the Loan Documents, which could adversely affect the ability of Borrower to complete the Project (or applicable portion thereof) prior to the Completion Date, which could materially adversely affect the ability of Borrower to perform its obligations under the Loan Documents, which could constitute an Event of Default under any of the Loan Documents or which would constitute such an Event of Default with the giving of notice or lapse of time, or both;

 

(f)                                   The Land, the present use and occupancy of the Land, the Plans and Specifications, the construction of the Project pursuant to the Plans and Specifications and the use and occupancy of the Premises when the Project is completed, will not violate or conflict with any applicable law, statute, ordinance, rule, regulation or order of any kind, including, without limitation, Environmental Laws, zoning, building, land use, noise abatement, occupational health and safety or other laws, any building permit or any condition, grant, easement, covenant, condition or restriction, whether recorded or not and if a third-party is required under any covenants, conditions and restrictions of record or any other agreement to consent to the construction, use and/or operation of the Project, Borrower has or will, prior to the commencement of such construction, use or operation, obtained such approval from such party. In addition, and without limiting the foregoing, the Borrower shall (a) ensure that no person or entity which owns a controlling interest in or otherwise controls the Borrower is or shall be listed on the Specially Designated Nationals and Blocked Person List or other similar lists maintained by the Office of Foreign Assets Control (“OFAC”), the Department of the Treasury or included in any Executive Orders, (b) not use or permit the use of any Loan Proceeds to violate any of the foreign asset control regulations of OFAC or any enabling statute or Executive Order relating thereto, and (c) comply with all applicable Bank Secrecy Act (“BSA”) laws and regulations, as amended;

 

(g)                                  The Land has, to Borrower’s knowledge never been used, and the Premises will not be used, for any activities which, directly or indirectly, involve the use,

 

5

 

generation, treatment, storage, transportation or disposal of any Hazardous Materials. Except as disclosed in the environmental reports previously supplied to Lender and enumerated in the Environmental Indemnity Agreement described herein at paragraph 4.1 (e), (i) no Hazardous Materials exist now, and no Hazardous Materials will hereafter exist, on or under the Premises or in any surface waters or groundwaters on or under the Premises; (ii) the Premises and its existing and, to Borrower’s knowledge, prior uses have at all times complied with and will comply with all Environmental Laws, and (iii) Borrower has not violated, and will not violate, any Environmental Laws;

 

(h)                                 There are no facilities on the Premises which are subject to reporting under any State laws or Section 312 of the Federal Emergency Planning and Community Right-to-Know Act of 1986 (42 U.S.C. Section 11022), and federal regulations promulgated thereunder. The Premises do not contain any underground storage tanks;

 

(i)                                     All financial statements submitted by Borrower to Lender in connection with this Loan are true and correct in all material respects, have been prepared in accordance with generally accepted accounting principles consistently applied, and fairly present the respective financial conditions and results of operations of the entities which are their subjects;

 

(I)                                   This Agreement and all financial statements, budgets, schedules, opinions, certificates, confirmations, General Contractor’s statements, applications, affidavits, agreements, Construction Contracts and other materials submitted to Lender in connection with or in furtherance of this Agreement by or on behalf of Borrower fully and fairly state the matters with which they purport to deal, and neither misstate any material fact nor, separately or in the aggregate, fail to state any material fact necessary to make the statements made not misleading;

 

(k)                                 All utility and municipal services required for the construction, occupancy and operation of the Premises, including, but not limited to, water supply, storm and sanitary sewage disposal systems, cable services, gas, electric and telephone facilities are available for use to the Improvements;

 

(1)                                 All governmental permits and licenses required by applicable law toconstruct, occupy and operate the Premises and the Project have been validly issued and are in full force or, if the present stage of construction of the Project does not allow the issuance of all such permits and licenses, then as the construction progresses Borrower shall promptly obtain such licenses and permits as and when they become available and the Borrower knows of no groups, organizations or people that are contesting the development, construction and/or use of the Project;

 

(m)                             The storm and sanitary sewage disposal system, water system, drainagesystem and all mechanical systems of the Premises do comply with all applicable laws, statutes, ordinances, rules and regulations, including, without limitation, all Environmental Laws. The applicable environmental protection agency, pollution control

 

6

 

board and/or other governmental agencies having jurisdiction of the Premises have issued their permits for the construction, tap-on and operation of those systems;

 

(n)                            All utility, parking, access (including curb-cuts and highway access), construction, recreational and other permits and easements required for the construction and use of the Premises have been or shall be granted and issued;

 

(o)                            When completed in accordance with the Plans and Specifications, the Project will not encroach upon any building line, set back line, sideyard line, or any recorded or visible easement (or other easement of which Borrower is aware or has reason to believe may exist) which exists with respect to the Premises, except as may currently exist;

 

(p)                            The Plans and Specifications have been or shall be designed using generally accepted trade practices, are or shall be complete in all respects, and containing all other details requisite for the Project which, when built and equipped in accordance therewith, shall be ready for the intended use thereof;

 

(q)                            In the aggregate, the Construction Contracts cover, or will cover all labor, material and equipment required by the Plans and Specifications or necessary to complete the Project.

 

(r)                               The Loan, including interest rate, fees and charges as contemplated hereby, is a business loan; the Loan is an exempted transaction under the Truth In Lending Act, 12 U.S.C., Section 1601 et seq.; and the Loan does not, and when disbursed will not, violate the provisions of the usury laws of the State, any consumer credit laws or the usury laws of any state which may have jurisdiction over this transaction, Borrower or any property securing the Loan; and

 

(s)                              There are no leases, licenses or agreements for use or occupancy of any part of the Premises except as previously disclosed to the Lender. Furthermore, all new leases for the Premises shall be subject to the Lender’s reasonable review and acceptance.

 

2.2                               Continuation of Representations and Warranties. Borrower hereby represents, covenants, warrants and agrees that the representations and warranties made in Section 2.1 hereof shall be and shall remain true and correct at the time of the Loan Opening and at all times thereafter so long as any part of the Loan shall remain outstanding. Each Request For Advance shall constitute a reaffirmation that these representations and warranties are true as of the date of such Request For Advance and will be true on the date of the advance.

 

7

 

ARTICLE 3

 

THE LOAN

 

3.1                               Agreement to Borrow and Lend.

 

(a)                                 Borrower agrees to borrow from Lender, and Lender agrees to lend to Borrower, the Construction Loan in an amount not to exceed the Construction Loan Amount of $12,000,000.00, all on the terms of and subject to the conditions of this Agreement.

 

3.2                               Interest. Interest on funds advanced hereunder with respect to the Construction Loan shall:

 

(a)                                 from the Loan Opening until the Maturity Date accrue at the Loan Rate as described in the Promissory Note; and

 

(b)                                 be computed upon advances of the Construction Loan from and including the date of each advance thereof by Lender to or for the account of Borrower (whether to an escrow or otherwise), on the basis of a three hundred sixty (360) day year and the actual number of days elapsed in any portion of a month in which interest is due.

 

3.3                               Maturity Date. Prior to the Maturity Date principal payments, if any, shall be made as provided herein and in the Promissory Note. The entire principal balance of the Promissory Note and all accrued and unpaid interest thereon shall be due, if not sooner paid, on the Maturity Date.

 

3.4                               Equity Requirements. Borrower shall furnish equity in the amount of the Equity Requirements for the Project, including the acquisition of the Land and construction of the Project. Such amount shall be so disbursed prior to any disbursement of Loan Proceeds. The amount of the Equity Requirements represented by the Land and any improvements thereon shall be valued at the cost to the Borrower of the Land and such improvements, unless otherwise approved by Lender. Lender shall not be required to accept any portion of the Equity Requirements in a form other than cash.

 

ARTICLE 4

 

LOAN DOCUMENTS

 

4.1                               Loan Documents. As a condition precedent to the Loan Opening, Borrower agrees that it will deliver the following Loan Documents to Lender at least five (5) days prior to the Loan Opening, all of which must be satisfactory to Lender and Lender’s counsel in form, substance and execution:

 

(a)                                 Promissory Note. a promissory note (“Promissory Note”) executed by the Borrower payable to the order of Lender, in the Construction Loan Amount.

 

8

 

(b)                            Mortgage. A first Mortgage, Security Agreement, Assignment of Rents and Leases and Fixture Filing (“Mortgage”) duly executed by Borrower and conveying good and marketable title to the Land and granting a first lien on the Land to secure the Promissory Note, the Loan and all obligations of Borrower in connection therewith.

 

(c)                             Assignment of Rents and Leases. A first collateral assignment from Borrower to Lender of all rents, leases and profits of the Premises as security for the Promissory Note (“Assignment of Rents”).

 

(d)                            Financing Statements. Uniform Commercial Code Financing Statements as required by Lender to perfect all security interests granted by the Mortgage.

 

(e)                             Environmental Indemnity. An agreement from Borrower to Lender, indemnifying Lender for all risks, liabilities, costs and expenses associated with environmental matters at the Premises.

 

(f)                              Pledge Agreement. An agreement from the Borrower to the Lender restricting use of funds held in an account in the name of the Borrower held with the Lender to guaranty payment of certain interest charges.

 

(g)                            Assignment of Plans, Specifications, Construction and Service Contracts, Licenses and Permits. An assignment to Lender of Borrower’s rights in and to all contracts, plans and specifications, tests, reports, permits, licenses and approvals which may be obtained for the construction and use of the Project, which assignment shall contain the consent of the General Contractor, Architect, Engineer and other applicable professional and such parties’ agreement to continue performance under its contract on behalf of Lender if Lender shall exercise its rights under the Assignment.

 

(h)                            Other Loan Documents. Such other documents and instruments as further security for the Loan as Lender may reasonably require.

 

ARTICLE 5

 

CONDITIONS TO LOAN OPENING

 

5.1                               Conditions to Loan Opening.                              As a condition precedent to the Loan Opening, Borrower shall furnish the following to Lender at least five (5) days prior to the Loan Opening or at such time as is set forth below, all of which must be strictly satisfactory to Lender and Lender’s counsel in form, content and execution:

 

(a)                                 Title Insurance Policy. At the Loan Opening, an ALTA Construction Loan Policy-2006 issued on the date of the Loan Opening by the Title Insurance Company to Lender in the full amount of the Loan, insuring the Mortgage to be a valid first, prior and paramount lien upon the fee title to the Premises subject only to the Permitted Exceptions and to customary exceptions for pending disbursements of the Loan (“Construction Title Insurance Policy”). The Construction Title Insurance Policy must

 

9

 

specifically insure Lender for claims and questions related to claims for mechanics’ or materialmen’s liens and contain the following endorsements: (i) ALTA Endorsement Form 3.1 zoning endorsement (including compliance with parking requirements) which must specifically state that the intended use of the Project is a “permitted use” under the governing zoning ordinance; (ii) Comprehensive Endorsement No. 1, modified based on the Plans and Specifications (if then available); (iii) location endorsement; (iv) usury endorsement; (v) access endorsement; (vi) tax parcel endorsement; (vii) if the Land consists of more than one subparcel, contiguity endorsement; (viii) creditor’s rights endorsement; (ix) variable rate endorsement; (x) survey endorsement; (xi) Restrictions Endorsement; (xii) Pending Disbursement Endorsement and (xiii) such other endorsements as Lender may require.

 

(b)                                 Survey, A plat of survey (“Survey”) of the Land made by a land surveyor licensed in the State, which Survey must be satisfactory to the Lender, showing:

 

(i)                                     the location of all buildings, structures, foundations, driveways, parking areas, number of parking spaces, fences and other improvements on the Land including the Project;

 

(ii)                                  the location (and recording numbers, to the extent recorded) of all visible or recorded easements (including appurtenant easements), water courses, drains, sewers, public and private roads (including the names and widths thereof and recording numbers for the dedications thereof), other rights of way, and curb cuts, if any, within, adjacent to or serving the Premises or to which the Premises are subject, and the proposed location of any such easements to be granted; that the same are, and after construction of the Project and granting of easements will be, unobstructed; and that all portions of the Project will have direct access to dedicated public roads;

 

(iii)                               the location of the servient estate of any easements, if the Land is the dominant estate thereunder;

 

(iv)                              the common street address of the Premises and the dimensions, boundaries and acreage or square footage of the Land;

 

(v)                                 that all foundations and other structures under construction or to be constructed pursuant to the Plans and Specifications, and all other improvements on the Land, are placed within the lot and building lines and in compliance with all deed restrictions, recorded plats, other restrictions of record and ordinances relating to the location thereof (and, to the extent that any deed restrictions, recorded plats, other restrictions of record or ordinances require any structure to be set back specified distances from any line, showing said line and the measured distance of said structure, or the proposed location of said structure, from said line);

 

10

 

(vi)                              that there are no encroachments onto the Land from improvements located on adjoining property;

 

(vii)                           the location and course of all utility lines;

 

(viii)                        if the Premises comprise more than one parcel, interior lines and other data sufficient to insure contiguity; and

 

(ix)                              such additional information which may be required by Lender or the Title Insurance Company.

 

The Survey shall be made in accordance with (i) the current survey standards of the American Title Association and American Congress on Surveying and Mapping for suburban properties including items 1, 2, 3, 4, 7(a), 8, 9, 10, and 11(a) of Table A thereof and (ii) the laws of the State. To the extent that there is any conflict or inconsistency among the Survey standards described above, the more restrictive standard shall apply. The Survey shall be dated not later than ninety (90) days prior to the Loan Opening, and shall bear a proper certificate by the surveyor, which certificate shall recite compliance with the laws and standards enumerated above, shall include the legal description of the Premises and shall run in favor of Borrower, Lender and the Title Insurance Company.

 

(c)                                  Insurance Policies. Borrower shall, during the term of this Agreement, procure at its expense and keep in force the insurance coverages required by the Mortgage. All insurance shall be in form, content and amounts approved by Lender and written by an insurance company or companies licensed to do business in the state in which the Premises are located and domiciled in the United States or a governmental agency or instrumentality approved by Lender. The policies for such insurance shall have attached thereto standard mortgagee clauses in favor of and permitting Lender to collect any and all proceeds payable thereunder and shall include a 30 day (except for nonpayment of premium, in which case, a 10 day) notice of cancellation clause in favor of Lender. All policies or certificates of insurance shall be delivered to and held by Lender as further security for the payment of the Promissory Note and any other obligations arising under the Loan Documents, with evidence of renewal coverage delivered to Lender at least 30 days before the expiration date of any policy.

 

(d)                                 Utilities; Licenses; Permits. Evidence satisfactory to Lender that:

 

(i)                                     all utility and municipal services required for the construction, occupancy and operation of the Premises are available for use at the Premises;

 

(ii)                                  all permits, licenses and governmental approvals (“Permits”), including a building permit issued by the appropriate governmental authority authorizing construction of the Project in accordance with the Plans and Specifications and including tap-on permits (if and to the extent available), required by applicable law to construct, occupy and operate the

 

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Premises have been issued, are in full force and all fees therefor have been fully paid or, if the stage of construction of the Project does not allow the issuance of all such Permits, then Borrower shall provide evidence, satisfactory to Lender that as the construction progresses Borrower will promptly obtain and deliver to Lender such Permits as and when they become available;

 

(iii)                               the storm and sanitary sewage disposal system, the water system and all mechanical systems serving the Premises do comply with all applicable laws, ordinances, rules and regulations, including Environmental Laws and the applicable environmental protection agency, pollution control board and/or other governmental agencies having jurisdiction of the Premises have issued their permits for the construction and operation thereof; and

 

(iv)                              all utility, parking, access (including curb-cuts and highway access), recreational and other easements and permits required or, in Lender’s judgment, necessary for the use of the Premises and construction of the proposed renovation work have been or shall be granted or issued;

 

which evidence shall include a certificate of the Architect reciting the above matters and listing (and reciting that there are so listed) all such services, permits, licenses and easements, together with copies of all Permits and all utility letters, licenses and grants of easements.

 

(e)                                  Intentionally Deleted.

 

(f)                                   Environmental Report. A written report (“Environmental Report”) prepared at Borrower’s sole cost and expense by an independent professional environmental consultant approved by Lender in its sole and absolute discretion. The Environmental Report shall be subject to Lender’s approval in its sole and absolute discretion. If the Environmental Report reveals contamination or conditions warranting further investigation in order to establish baseline data, Lender may require, in its sole and absolute discretion, a written report (also referred to herein as the “Environmental Report”) based on additional testing and investigation in order to define the source and extent of the contamination or to establish baseline data, as well as to provide relevant detailed information on the area’s geological and hydrogeological conditions. Any additional Environmental Report prepared pursuant to this requirement shall be subject to Lender’s approval, in its sole and absolute discretion.

 

(g)                                  Appraisal. An appraisal satisfactory and addressed to Lender prepared by a certified or licensed appraiser who is approved by Lender,

 

(h)                                 Documents of Record. Officially certified copies of all covenants, conditions, restrictions, easements and matters of record which affect the Premises.

 

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(i)            Searches. A report from the Title Insurance Company or the appropriate filing officers of the state and county in which the Land is located, indicating that no judgments, tax or other liens, security interests, leases of personalty, financing statements or other encumbrances (other than Permitted Exceptions and liens and security interests in favor of Lender) are of record or on file encumbering any portion of the Land, and that there are no judgments, tax liens, pending litigation or bankruptcy actions outstanding with respect to the Borrower.

 

(j)            Plans and Specifications. Three (3) complete sets of the final detailed Plans and Specifications for the Project, including all changes to the date of submission thereof, showing identification thereof by the Architect and generally consistent with any preliminary plans theretofore submitted to Lender, together with evidence satisfactory to Lender that the Plans and Specifications have been approved by the Borrower and the General Contractor. The Plans and Specifications must be satisfactory to Lender in all respects and must be approved in writing by Lender.

 

(k)           Intentionally Deleted.

 

(1)           Construction Contracts. Certified copies of the executed Contract and Subcontracts for work and materials in excess of $100,000, including purchase orders for all fixtures and equipment to be installed in the Project, which shall conform to applicable terms of this Agreement, including, without limitation, provisions regarding retainage, changes in Plans and Specifications, change orders, extras, bonds and construction schedule and which must be strictly satisfactory to Lender and Lender’s counsel in all respects; provided that if such Construction Contracts do not cover all of the work necessary for completion of construction of the Project, Borrower shall furnish detailed studies, designs, budgets and schedules, construction contracts and any other information that Lender shall require with respect to such additional work from responsible parties satisfactory to Lender. If Lender elects to disburse any Loan Proceeds prior to execution of all Construction Contracts necessary to complete the Project, Lender may increase the amount of the Equity Requirements or require Borrower to deposit additional funds with Lender to secure Borrower’s ability to obtain the remaining Construction Contracts necessary to complete the Project within the Project Budget.

 

(m)          Architect’s and Engineers’ Contracts. A certified copy of the executed Architect’s Contract and any other engineers’ contracts, which shall be in a format and of a scope which is commensurate with industry practice for projects of a similar size and nature, conform to applicable terms of this Agreement, and which must be satisfactory to Lender and Lender’s counsel in all respects.

 

(n)           Sworn Statement. A sworn statement (“Owner’s Sworn Statement”) from Borrower (and/or such other party as may be required by the Title Insurance Company or applicable mechanics’ lien laws) and a sworn statement from the General Contractor setting forth a description of all contracts executed by Borrower or the General Contractor with respect to the Land, the names and addresses of the contractors, engineers and other parties under those contracts, the date of each such contract and of

 

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any supplements or amendments thereto, the nature and scope of the work covered thereby, and the aggregate amounts theretofore paid and thereafter to be paid to each contractor thereunder; and further stating whether said contracts include all of the work required to be done and all of the material necessary for completion of the Project in accordance with the Plans and Specifications, and, if not, providing sufficient information to enable Lender to estimate the cost of any work or materials not so covered.

 

(o)                                 Construction Schedule. A schedule (“Construction Schedule”) in form and content satisfactory to Lender which, among other things, sets forth dates for commencement and completion of all phases of the Project, indicates projected cash flow and the time for performance of the work to be accomplished under the Contract and each Subcontract, and includes a statement from the General Contractor that, in its best professional judgment, the Construction Schedule is realistic and can be adhered to in completing the Project in accordance with the Plans and Specifications.

 

(p)           Borrower’s Attorney’s Opinion. An opinion of Borrower’s counsel addressing such issues as Lender may request, including the following propositions and questions of law:

 

(i)                                     that Borrower is duly organized, validly existing and in good standing to do business in the State of Wisconsin and duly qualified to transact business in the State;

 

(ii)                                  that Borrower has all necessary legal right, power and authority to conduct its business, to develop the Project and to enter into and perform its obligations under this Agreement and the Loan Documents;

 

(iii)                               that all necessary membership approvals, resolutions and directions have been obtained for the development of the Project and the execution of this Agreement and the Loan Documents;

 

(iv)                              that the execution and delivery of this Agreement and the Loan Documents, the performance thereunder by Borrower will comply with all applicable law and will not violate or conflict with the instruments under which Borrower is organized or any applicable contracts or agreements;

 

(v)                                 that the Loan Documents and this Agreement have been duly and validly executed and delivered by Borrower, are enforceable in accordance with their respective terms (subject to bankruptcy laws and laws pertaining to the exercise of creditors’ rights generally) and are subject to no defenses of any kind;

 

(vi)                              that the making of the Loan, the charging of all interest and fees due thereunder do not violate any usury or consumer credit laws; and

 

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(vii)                           that if permitted by the laws of the State, the Borrower has effectively waived in the Mortgage any rights of redemption from a decree or order foreclosing the Mortgage on behalf of itself and all persons claiming through Borrower.

 

(q)           Organizational Documents. A copy of the operating agreement creating Borrower, certified by its Chief Executive Officer as being true and correct copy and as otherwise unmodified and in full force and effect, together with current Certificate of Good Standing for Borrower from the State of Wisconsin and the State of Illinois, a certified copy of the Articles of Organization, including all amendments thereto, for Borrower, a certificate from the Chief Executive Officer of the Borrower providing that no certificate of dissolution has been filed, a notarized incumbency certificate showing specimen signatures for all of the members of Borrower executing any Loan Documents and, if necessary, certified copies of resolutions from the unit owners authorizing execution and delivery of the Loan Documents.

 

(r)            Construction Escrow Agreement. A construction loan escrow agreement to be prepared by counsel for Lender establishing a construction escrow (“Construction Escrow”) with an escrowee satisfactory to Lender through which all advances of the Loan for construction costs will be disbursed, which Construction Escrow shall require delivery to Lender and the Title Insurance Company prior to each Construction Disbursement of such documents regarding the Construction Disbursement as Lender and Title Insurance Company may require, including, without limitation, the documents specified in Section 6.3 hereof.

 

(s)            Real Estate Taxes. Copies of the most recent real estate tax bills for the Land and evidence satisfactory to Lender that the Land is separately assessed for real estate taxing purposes.

 

(t)            Broker. Evidence satisfactory to Lender that all brokers’ commissions or fees due with respect to the Loan or the Project, if any, have been paid in full in cash.

 

(u)           Lender’s Consultant Report. A written report(s) prepared at Borrower’s expense by Lender’s Consultant, which report(s) shall be based upon an evaluation and/or investigation of specific factors and shall describe in detail the investigation and evaluations, as well as the findings. The report(s) shall include the evaluation of the Plans and Specifications and their compliance with governmental regulations; and the evaluation of the mechanical, electrical and plumbing systems to be installed in the Project and the adequacy of design and operation of the systems for their intended uses and any other matters required by Lender.

 

(v)           Additional Documents. Such other papers and documents regarding Borrower or the Project as Lender may require.

 

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Notwithstanding the foregoing, it is understood that items d(ii), j, 1, m, n, o, r and u of this subsection 5.1 shall be deposited with Lender prior to the first disbursement of loan proceeds for construction purposes and shall not be required by Loan Opening

 

5.2                               Termination of Agreement. Borrower agrees that all conditions precedent to the Loan Opening will be complied with on or prior to the Loan Opening Date. If all of the conditions precedent to the Loan Opening hereunder shall not have been performed on or before the Loan Opening Date, Lender, at its option at any time thereafter and prior to the Loan Opening, may terminate this Agreement and all of its obligations hereunder by giving a written notice of termination to Borrower. In the event of such termination, Borrower shall pay all Loan Expenses (as hereinafter defined) which have accrued or been charged as of the Loan Opening Date.

 

ARTICLE 6

 

DISBURSEMENTS

 

6.1                               Conditions Precedent to Disbursement of Loan Proceeds. No disbursement of Loan Proceeds shall be made by Lender to Borrower at any time unless:

 

(a)                                 all conditions precedent to that disbursement have been satisfied, including, without limitation, performance of all of the then pending obligations of Borrower under this Agreement and the Loan Documents;

 

(b)                                 the Loan is In Balance (as defined in Section 6.4 hereof);

 

(c)                                  Lender shall be satisfied as to the continuing accuracy of the Project Budget;

 

(d)                                 no Event of Default has occurred under this Agreement or under any Loan Document, and no event, circumstance or condition has occurred or exists which, with the passage of time or the giving of notice, would constitute a Event of Default under this Agreement or under the Loan Documents;

 

(e)                                  no litigation or proceedings are pending or threatened (including proceedings under Title 11 of the United States Code) against Borrower, General Contractor or the Project, which litigation or proceedings, in the sole and exclusive judgment of Lender, is material (or which, in the case of the General Contractor, could materially affect the completion of the Project);

 

(f)                                   no event, circumstance or condition exists or has occurred which, in Lender’s sole judgment, could delay or prevent the completion of the Project by the Completion Date;

 

(g)                                  all representations and warranties made by Borrower to Lender herein and otherwise in connection with the Loan continue to be accurate; and

 

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(h)                                 if the proposed disbursement is a Construction Disbursement, the additional requirements of Section 6.3 hereof have been satisfied.

 

6.2                               Loan Disbursement. Subject to the satisfaction of the terms and conditions herein contained, the Loan Proceeds shall be disbursed as follows:

 

(a)                                 The Loan Opening shall be made at such time as all of the conditions and  requirements of this Agreement required to be performed by Borrower or other parties prior to the Loan Opening have been satisfied or performed; but in no event shall the Loan Opening occur later than the Loan Opening Date. At the Loan Opening, Lender shall disburse funds necessary to pay any Loan Expenses then due.

 

(b)                                  The initial disbursement of Loan Proceeds shall be limited to eighty (80%) percent of the acquisition cost of the Land and related closing costs.

 

(c)                                   All Construction Disbursements will be made in accordance with the provisions of this Article 6 and in the form of the Loan Advance Requisition attached hereto as Exhibit D.

 

(d)                                  If any disbursement of Loan Proceeds is made by Lender into an escrow, including the Construction Escrow, those Loan Proceeds shall be considered to be disbursed to Borrower from the date of deposit into that escrow, and interest shall accrue on those Loan Proceeds from that date.

 

(e)                                  Borrower hereby requests and authorizes Lender to make advances directly to itself for payment and reimbursement of all interest, charges, costs and expenses incurred by Lender in connection with the Loan, including, but not limited to, (i) interest due on the Loan and any points, loan fees, service charges, commitment fees or other fees due to Lender in connection with the Loan; (ii) all title examination, survey, escrow, filing, search, recording and registration fees and charges; (iii) all fees and disbursements of the Architect, Engineer and consultants engaged by Borrower and Lender, including the fees and disbursements of any architect, engineers, Lender’s Consultant and Lender’s insurance consultant; (iv) all documentary stamp and other taxes and charges imposed by law on the issuance or recording of any of the Loan Documents; (v) all appraisal fees; (vi) all title, casualty, liability, payment, performance or other insurance or bond premiums; (vii) all fees and disbursements of legal counsel engaged by Lender in connection with the Loan, including, without limitation, counsel engaged in connection with the enforcement or administration of this Agreement or any of the Loan Documents; and (viii) any amounts required to be paid by Borrower under this Agreement, the Mortgage or any Loan Document after the occurrence of an Event of Default (all of which are herein referred to as “Loan Expenses”).

 

(f)                                   No disbursement of Loan Proceeds shall be made at any time that the  Loan is not In Balance. Any disbursement of Loan Proceeds must be made for payment of the Project Costs in strict accordance with the Project Budget. No amendment of the Project Budget greater than $50,000.00 shall be made without Lender’s prior written

 

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consent. No reallocation of line items within the Project Budget shall be made unless Borrower can demonstrate to Lender’s satisfaction that (i) sufficient funds remain in the line item from which the amount is to be reallocated to pay all Project Costs which may be paid from that line item; and (ii) no line items in the Project Budget (other than the line item to which the reallocation is sought) are required, in Lender’s judgment, to be increased.

 

6.3                               Documents Required for Each Construction Disbursement. At least ten (10) business days prior to, and as a condition of, each “Construction Disbursement”, Borrower shall furnish to Lender and to Lender’s Consultant the following documents covering such disbursement:

 

(a)                                 Borrower’s disbursement request (“Request For Advance”), which shall, among other things specify the amount of the requested disbursement (exclusive of interest); direct Lender to disburse such funds in accordance with this Agreement; and certify to Lender, as of the date of the applicable request for disbursement, that:

 

(i)                                     the total amount of each request for disbursement (exclusive of interest) represents the actual amount payable to the General Contractor and/or Subcontractors who have performed work on the Project and indicating what payment requests, if any, have been received by Borrower from the General Contractor or the Subcontractors but have not yet been approved by Borrower for payment;

 

(ii)                                  no Event of Default, or condition or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default, exists under this Agreement;

 

(iii)                               the representations and warranties contained in Article 2 of this Agreement are true and correct;

 

(iv)                              Borrower has received no notice and has no knowledge of any liens or claims of lien either filed or threatened against the Premises except the liens of Lender and those which are specifically identified in writing to Lender;

 

(v)                                 all amounts shown as previous payments on the current disbursement request have been paid to the parties entitled to such payment;

 

(vi)                              approval by Borrower of all work and materials for which a payment is then due and for which disbursement of the Loan is thereby requested;

 

(vii)                           that all work and materials theretofore furnished for the Project conform with the Plans and Specifications;

 

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(viii)                        copies of all Construction Contracts, as then in effect, have been delivered to Lender; and

 

(ix)                              the Loan is In Balance;

 

(b)                                 A certificate as to completion and payment authorization in form reasonably approved by Lender, properly executed by the General Contractor or the Subcontractors seeking payment, the Architect and Lender’s Consultant;

 

(c)                                  Owner’s, General Contractor’s and Subcontractors’ sworn statements and waivers of lien, covering all work for which disbursement is to be made to a date specified therein, and covering all work done on the Premises, to a reasonably current date, otherwise paid for or to be paid for by Borrower or any other person, all in compliance with the mechanics’ lien laws of the State and with the requirements of Lender and the Title Insurance Company (for issuance of interim title endorsements covering such disbursement), together with such invoices, contracts or other supporting data as Lender or the Title Insurance Company may require;

 

(d)                                 Disclaimers from suppliers of fixtures and equipment of any vendor’s lien or purchase money security interest therein and evidence satisfactory to Lender that all fixtures and equipment are and will remain free of security interests of all kinds other than security interests of Lender;

 

(e)                                  Endorsements to the Construction Title Insurance Policy to cover the amount and date of the Construction Disbursement (whether into escrow or otherwise) insuring that the Mortgage is a first, prior and paramount lien on the Land subject only to Permitted Exceptions (and to exceptions and objections in the usual form relating to the issuance of a mortgage title insurance policy, which by their nature cannot be waived or removed until the final disbursement of the proceeds of the Loan), that nothing has intervened to affect the validity or priority of the Mortgage, insuring against mechanics’ lien claims for work performed prior to the date covered by such continuation, and containing a mechanics’ lien interim certification to cover the amount of the Loan then disbursed (including the current Construction Disbursement); those endorsements may be delivered to Lender concurrently with the disbursement of the Loan Proceeds which are the subject of those endorsements;

 

(f)                                   Such other papers and documents as the Title Insurance Company may require for the issuance of endorsements to the Construction Title Insurance Policy for each disbursement of Loan Proceeds;

 

(g)                                  An updated Construction Schedule, including a statement from each of the General Contractor and the Architect that, in their best professional judgment, the Construction Schedule, as updated, is realistic and can be adhered to in completing the Project in accordance with the Plans and Specifications; and

 

(h)                                 Evidence satisfactory to Lender that the following conditions are true:

 

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(i)                                     Borrower, the Architect and Lender’s Consultant shall provide evidence that all proceeds of the Loan disbursed to date have been applied to payment of the Project Costs;

 

(ii)                                  Borrower, the Architect and Lender’s Consultant shall provide evidence that the Project is being constructed in accordance with the Plans and Specifications and with applicable law;

 

(iii)                               Borrower, the Architect and Lender’s Consultant shall provide evidence that the Construction Contracts are in full force and effect; and

 

(iv)                              Borrower, the Architect and Lender’s Consultant shall provide evidence that the Project is being completed in accordance with the Construction Schedule.

 

6.4                               Loan In Balance. Anything in this Agreement contained to the contrary notwithstanding, it is expressly understood and agreed that the Loan at all times shall be In Balance (as hereinafter defined). The Loan shall be deemed to be “In Balance” only if the total of the Available Funds (as hereinafter defined), in Lender’s sole and absolute judgment, shall equal or exceed the aggregate of: (i) the amounts to be paid as retainage to persons who have supplied labor, services or materials to the Project including, without limitation, the General Contractor, the Architect and all Subcontractors; (ii) the amount required, in Lender’s sole and absolute judgment, for a contingency reserve; and (iii) the amount necessary to pay for all unpaid costs incurred or to be incurred in the completion of the construction of the Project and operation of the Project until the Maturity Date, including the cost of purchase and installation of all fixtures and equipment and all work required to finish or improve any portion of the Premises to be leased, if any. As used herein, the term “Available Funds” shall mean:

 

(a)                                 the undisbursed proceeds of the Loan, net of any unpaid accrued interest on the Loan; plus

 

(b)                                 any other amounts deposited by Borrower pursuant to this Section 6.4 and then held by Lender; plus

 

(c)                                  the value of any portion of the Equity Requirements as may be then held in cash by Lender; for the purposes hereof, letters of credit shall not be treated as cash or a cash equivalent.

 

Borrower agrees if for any reason the Loan is not In Balance, Borrower, within ten (10) days after request by the Lender, will deposit with Lender cash in an amount which will place the Loan In Balance, which deposit shall first be exhausted before any further disbursement of the proceeds of the Loan shall be made. No interest shall be payable on such amounts.

 

6.5                               Intentionally Deleted.

 

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6.6                               Lender’s Verification of Contracts. Prior to the initial construction advance, and from time to time thereafter, Lender or the Title Insurance Company may forward to the General Contractor and any or all Subcontractors listed on the Owner’s Sworn Statement a contract verification to confirm the terms and amount of the Contract or Subcontract for the General Contractor and each Subcontractor. If there is any discrepancy between the terms and amounts as shown by the Construction Contracts, the sworn statements, and the verifications, Lender may require, as a condition to further disbursements, that such discrepancies be eliminated to its reasonable satisfaction.

 

6.7                               Payments to General Contractor. Lender shall make or cause to be made (through the Construction Escrow or otherwise) payments for the cost of construction of the Project directly to any General Contractor.

 

6.8                               Escrow Payouts. All disbursements hereunder, at the option of Lender exercisable at any time, may be made through the Construction Escrow with the Title Insurance Company or any third party under the provisions of the Construction Escrow Agreement to which said escrowee, Borrower, Lender and such of the General Contractor or Subcontractors designated by Lender or by the Title Insurance Company will be parties. Borrower will cause the General Contractor and Subcontractors to comply with the requirements of said escrowee in order to enable said escrowee to issue to Lender interim mechanics’ lien certifications, make disbursements and obtain necessary sworn statements and waivers of lien.

 

6.9                               Frequency of Payouts. Subsequent to the Loan Opening, disbursements of Loan Proceeds shall be made, and the conditions precedent to such disbursements shall be met, from time to time as construction progresses, but no more frequently than once in each calendar month.

 

6.10                        Consultants. In connection with the transactions contemplated hereby, Lender shall have the right (but not the duty) to employ such consultants, including Lender’s Consultant, as it may deem appropriate from time to time, to (a) review and make recommendations regarding the Plans and Specifications, the Project Budget and the Construction Schedule, (b) inspect the Premises from time to time to insure that the same are being duly constructed and equipped as herein provided, (c) review and make recommendations regarding any elements of a request for disbursement, (d) obtain information and documentation respecting the Project, attend meetings respecting the Project and formulate reports for Lender pertaining to the Project and (e) perform such other services as Lender from time to time may require, all solely on behalf of Lender. The costs and disbursements of such consultants shall be deemed “Loan Expenses.”  Neither Lender nor any such consultants shall be deemed to have assumed any responsibility to, or be liable to, Borrower with respect to any actions taken or omitted by Lender or such consultants pursuant to this Section. Notwithstanding the aforesaid or anything else provided in this Agreement to the contrary, Borrower shall not be entitled to rely on any statements or actions of Lender’s Consultant or any of Lender’s other consultants and neither the Lender’s Consultant nor any other consultant retained by Lender shall have the power or authority to grant any consents or approvals or bind Lender in any manner, absent confirmation by Lender of the accuracy of the information conveyed by such consultant to Borrower.

 

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6.11                        Retainages. Disbursement of the available proceeds of the Loan shall be limited to an amount equal to the percentage thereof required by the terms of the Construction Contracts, but in no event shall Lender be obligated in respect of any Construction Contract, until final disbursement, to disburse in excess of ninety percent (90%) of the value (as certified by Lender’s Consultant), of the materials and labor incorporated in the Project from time to time pursuant to such Construction Contract. Notwithstanding the foregoing, upon completion of fifty (50%) percent of the work as set forth in the Construction Budget, the retention shall be eliminated.

 

6.12                        Stored and Unincorporated Materials. No disbursement for materials purchased by Borrower but not yet installed or incorporated into the Project shall be made without Lender’s prior approval of the conditions under which such materials are purchased and stored. In no event shall any such disbursement be made unless the materials involved have been delivered to the Land or stored with a bonded warehouseman, with satisfactory evidence of security, insurance both during storage and transit and suitable storage. Borrower shall provide Lender, in connection with such materials, a copy of a bill of sale or other evidence of title in Borrower. Borrower shall provide Lender, Architect and any applicable governmental agency or testing authority having jurisdiction over the Project with access to inspect, test or otherwise examine such stored and unincorporated materials.

 

6.13                        Final Disbursement. Lender will advance to Borrower, for payment of Project Costs only and in accordance with the Project Budget, the full amount of the Loan not theretofore disbursed (“Final Disbursement”) when the following conditions shall have been complied with, to the extent not already complied with respect to all previously completed works, and provided that such compliance shall have occurred prior to the Completion Date and no Event of Default then exists:

 

(a)                                 The Architect, Borrower and Lender’s Consultant certify in writing to Lender that the Project has been fully and satisfactorily completed in accordance with the Plans and Specifications;

 

(b)                                 Lender has received as-built Plans and Specifications for the Project satisfactory to Lender in form and content;

 

(c)                                  All Subcontractors and the General Contractor have supplied Lender and the Title Insurance Company with final sworn statements and full and complete waivers of all mechanics’ lien claims;

 

(d)                                 Lender has received a final date down endorsement to its Construction Loan Policy by the Title Insurance Company in the full amount of the Loan;

 

(e)                                  Borrower shall have furnished to Lender permanent insurance in form and amount and with companies satisfactory to Lender in accordance with the requirements of the Mortgage;

 

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(f)                                   Borrower shall have furnished Lender a final Certificate of Occupancy, and all other governmental licenses and permits required to use, occupy and operate the Premises as contemplated from appropriate governmental authorities;

 

(g)                                  All fixtures and equipment required for the operation of the Premises shall have been installed free and clear of all liens, title retention agreements and security interests except security interests granted to Lender;

 

(h)                                 Lender shall have received reports from the Title Insurance Company or the appropriate filing offices of the state and county in which the Premises are located, indicating that no judgments, tax or other liens, security interests, leases of personalty, financing statements or other encumbrances (other than Permitted Exceptions and liens and security interests in favor of Lender and no other party), are of record or on file encumbering any portion of the Premises, and that there are no judgments or tax liens outstanding in respect to Borrower;

 

(i)                                     Based on Lender’s analysis, the amount advanced does not exceed eighty (80%) percent of the appraised value of the as-improved Premises; and

 

(j)                                    All other requirements of this Agreement shall have been complied with.

 

6.14                        Expenses and Advances Secured by Mortgage. Any and all advances or payments made by Lender hereunder, from time to time, and any amounts expended by Lender pursuant to this Agreement, together with Lender’s reasonable Consultant’s fees and attorneys’ fees, if any, and all other Loan Expenses, as and when advanced or incurred, shall be deemed to have been disbursed as part of the Loan and be and become secured and guaranteed by the Loan Documents to the same extent and effect as if the terms and provisions of this Agreement were set forth therein, whether or not the aggregate of such indebtedness shall exceed the face amount of the Promissory Note.

 

6.15                        Acquiescence not a Waiver. To the extent that Lender may have acquiesced (whether intentionally or unintentionally) in the Borrower’s failure to comply with and satisfy any condition precedent to the Loan Opening, to any Construction Disbursement or to any disbursement of Loan Proceeds, such acquiescence shall not constitute a waiver by Lender of any condition precedent set forth in this Agreement, and Lender at any time thereafter may require the Borrower to comply with and satisfy all conditions and requirements of this Agreement.

 

6.16                        Lender’s Action for Lender’s Own Protection Only. The authority herein conferred upon Lender and any action taken by Lender or Lender’s Consultant or their agents or employees in making inspections of the Premises, attending regularly scheduled Project meetings, procuring sworn statements and waivers of lien, approving Subcontracts and approving Plans and Specifications will be taken by Lender and Lender’s Consultant and by their agents or employees for their own protection only, and neither Lender nor Lender’s Consultant nor their agents or employees shall be deemed to have assumed any responsibility to Borrower or any other person or entity with respect to any such action herein authorized or taken by them or

 

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with respect to the proper construction and equipping of the Project, performance of Construction Contracts or prevention of claims for mechanics’ or materialmen’s liens.

 

ARTICLE 7  

 

RESERVES

 

7.1                               Setting Up and Adjusting Reserves. At the Loan Opening, Lender may pay from the proceeds of the Loan all Loan Expenses, to the extent the same have not been previously paid. Lender may also designate reserves (“Reserves”) The Lender may from time to time in its reasonable discretion adjust the amount of such Reserves as circumstances may require for any or all of the following purposes to cover the actual or estimated amounts required for such purposes until the Maturity Date:

 

(a)                            All unpaid Loan Expenses and fees of Lender’s Consultant and Lender’s counsel;

 

(b)                            Intentionally Deleted;

 

(c)                             An amount, as estimated by Lender, for real estate taxes which will accrue prior to the Maturity Date, as applicable, and for tax deposits, if any, required by the Mortgage;

 

(d)                            An amount, as estimated by Lender, for premiums on insurance policies required to be furnished by Borrower hereunder, payable prior to the Maturity Date, and for insurance deposits, if any, required by the Mortgage;

 

(e)                             Funds to pay any license fees, mortgage or lease guaranty insurance premiums, permits and other charges and fees; and

 

(f)                              An amount to fund a Reserve for contingencies (“Contingency Reserve”)  in the amount, if any, set forth in the Project Budget.

 

7.2                               Disbursement of Reserves. Provided that (i) no Event of Default hereunder has occurred, (ii) no event or circumstance has occurred which, with the passage of time, the giving of notice, or both, could constitute an Event of Default and (iii) the Loan is In Balance, Lender may, and at the request of Borrower shall, disburse the Reserves for the respective purposes for which they have been set aside, either by payment of items for which the Reserves have been set aside, or by reimbursement to Borrower for payments so made by Borrower. Lender from time to time may disburse any part or all of the Contingency Reserve, but shall not be obligated to do so until all conditions for final disbursement of the Loan have been satisfied.

 

7.3                               No Interest Payable on Reserves. No interest shall accrue upon Reserves held by Lender until disbursement thereof, whereupon such disbursement shall be deemed to be a disbursement of proceeds of the Loan. Payments by Lender into an escrow or title indemnity or otherwise for the benefit of Borrower or to satisfy any requirements of the Title Insurance Company shall be deemed a disbursement.

 

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7.4                               Application of Reserves in Case of Event of Default. In case of Event of Default, Lender may use and apply Reserves or any monies deposited by Borrower with Lender, regardless of the purpose for which deposited, to cure such Event of Default or to apply as a prepayment of the Loan.

 

ARTICLE 8

 

FURTHER AGREEMENTS OF BORROWER

 

8.1                               Construction of Project. Borrower agrees that the Project will be constructed and fully equipped free and clear of all liens and encumbrances (excepting only (i) the lien of real estate taxes and assessments not due, (ii) any liens and encumbrances of Lender and (iii) any other Permitted Exceptions), in a good and workmanlike manner with materials of high quality, substantially in accordance with the Plans and Specifications, any and all covenants, conditions and restrictions of record, and applicable building, zoning and other laws and ordinances including, without limitation, Environmental Laws. Borrower further agrees that such construction and equipping of the Project will be commenced on or before the Construction Commencement Date and the Project (or applicable portion thereof) will be prosecuted with due diligence and will be fully completed not later than the earlier to occur of (i) such date that is specified in any Sale Contract and (ii) the Completion Date. If Lender reasonably disapproves any portion of the construction or equipping of the Premises, Borrower, within fifteen (15) days after such disapproval, shall commence to correct the condition so disapproved, and thereafter will diligently complete such correction. Borrower agrees that all materials contracted or purchased for construction of the Project and all labor hired or contracted for with respect to the Project and paid for with Loan Proceeds will be used and employed solely on the Project and for no other purpose.

 

8.2                               Changes in Plans and Specifications and Contracts; Extras. Borrower agrees that no changes will be made in the Plans and Specifications, no change will be made in any Construction Contract, and no extras will be allowed to the General Contractor or any Subcontractor, except upon the written approval of the same by Lender, which approval shall not be unreasonably withheld or delayed; provided, however, Borrower may make changes in the Plans and Specifications or in the Construction Contracts, or allow such extras, without first obtaining such approval thereof, if (a) Borrower notifies Lender in writing of such change within three (3) business days thereafter; (b) Borrower obtains the approval of all parties to the Construction Contract proposed to be modified, the tenants of the premises, if any, affected by the proposed modification, and all sureties whose approval is required; (c) the structural integrity of the Project is not impaired; (d) no substantial change in architectural appearance is effected; (e) the square footage of the Project is not materially reduced; (f) no default in any obligations to any other party, including any governmental authority, results from such changes; (g) the cost of or reduction resulting from one such change or extra does not exceed Ten Thousand Dollars ($25,000.00) and the aggregate changes in cost of all such changes and extras does not exceed Fifty Thousand Dollars ($100,000.00); and (h) the Loan remains In Balance.

 

8.3                               Mechanics’ Liens, Taxes and Contest Thereof. Borrower agrees that it will not suffer or permit any mechanics’ lien claims to be filed or otherwise asserted against the Premises

 

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and will promptly discharge the same in case of the filing of any claims for lien or proceedings for the enforcement thereof, and will pay all special assessments which have been placed in collection and all real estate taxes and assessments of every kind (regardless of whether the same are payable in installments) upon the Premises, before the same become delinquent; provided, however, that Borrower shall have the right to contest in good faith and with reasonable diligence the validity of any such lien, claim, tax or assessment if the right to contest such matters is expressly granted in the Mortgage. If Borrower shall fail promptly either to discharge or to contest claims, taxes or assessments asserted or give security or indemnity in the manner provided in the Mortgage, or having commenced to contest the same, and having given such security or indemnity shall fail to prosecute such contest with diligence, or to maintain such indemnity or security so required by the Mortgage, or upon the adverse conclusion of any such contest, to cause any judgment or decree to be satisfied and lien to be released, then and in any such event Lender may, at its election (but shall not be required to), procure the release and discharge of any such claim and any judgment or decree thereon and, further, in its sole discretion, effect any settlement or compromise of the same. Any amounts so expended by Lender, including premiums paid or security furnished in connection with the issuance of any surety bonds, shall be deemed to constitute disbursement of the proceeds of the Loan hereunder. In settling, compromising, discharging or providing indemnity or security for any claim for lien, tax or assessment, Lender shall not be required to inquire into the validity or amount thereof.

 

8.4                               Fixtures and Personal Property. Except for a security interest granted to Lender, Borrower agrees that all of the personal property, fixtures, attachments, furnishings and equipment delivered in connection with the construction, equipping or operation of the Project will be kept free and clear of all chattel mortgages, vendor’s liens, and all other liens, claims, encumbrances and security interests whatsoever, and that Borrower will be the absolute owner of said personal property, fixtures, attachments and equipment. Borrower, on request, will furnish Lender with satisfactory evidence of such ownership, and of the terms of purchase and payment therefor.

 

8.5                               Proceedings to Enjoin or Prevent Construction. If any proceedings are filed or are threatened to be filed seeking to (a) enjoin or otherwise prevent or declare invalid or unlawful the construction, occupancy, maintenance or operation of the Project or any portion thereof; (b) adversely affect the validity or priority of the liens and security interests granted Lender hereby; or (c) adversely affect the financial condition of Borrower or the ability of Borrower to complete the Project, then Borrower will notify Lender of such proceedings and within two (2) business days following Borrower’s notice of such proceedings, Borrower will cause such proceedings to be vigorously contested in good faith, and in the event of an adverse ruling or decision, prosecute all allowable appeals therefrom. Without limiting the generality of the foregoing, Borrower will resist the entry or seek the stay of any temporary or permanent injunction that may be entered, and use commercially reasonable efforts to bring about a favorable and speedy disposition of all such proceedings.

 

8.6                               Event of Defaults Under Construction Contracts. Borrower will not suffer or permit any breach or default to occur in any of the obligations of Borrower under the Construction Contracts nor suffer or permit the same to terminate by reason of any failure of Borrower to meet any requirement thereof including those with respect to any time limitation

 

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within which the Project is to be completed and available for occupancy; Borrower will keep the Construction Contracts in full force and effect and promptly notify Lender of any default thereunder; Borrower will comply with all conditions of the Construction Contracts and will execute all documents necessary for the consummation of the transactions contemplated thereby.

 

8.7                               Furnishing Information and Financial Covenants. Borrower will:

 

(a)                            cooperate with Lender in arranging for inspections by representatives of Lender of the progress of construction from time to time;

 

(b)                            promptly supply Lender with such information concerning its assets, liabilities and affairs, as Lender may reasonably request from time to time hereafter; which in the case of Borrower shall include, without necessity of any request by Lender, as soon as available and in no event later than 120 days after the close of each fiscal year, federal income tax returns and audited financial statements of Borrower showing the results of operations of the Borrower and consisting of a balance sheet and statement of income and expense prepared in accordance with generally accepted accounting principles and quarterly internally prepared financial statements, budjets and cash flow projections of the Borrower certified by the Chief Operating Officer of the Borrower;

 

(c)                             at all times during the term of the Loan maintain a minimum tangible net worth of $5,000,000.00. Tangible Net Worth shall mean the Borrowers’ total equity as set forth on its financial statements minus (i) any intangible assets, including goodwill and (ii) any loans or notes receivable from the Companies’ unit holders or officers, unless the foregoing loans or notes receivable are subordinated to this Loan;

 

(d)                            maintain at all times a minimum balance of One Million and 00/100 Dollars ($1,000,000.00) in Borrower’s operating account (the “Account”) with Lender during the term of the Loan to provide for the payment of interest on the Note upon the occurence of an Event of Default hereunder. At such time as the Borrower has demonstrated to Lender operating results for six (6) consecutive months showing a positive cash flow from operations (excluding any extraordinary income) so as to support the monthly payment of interest under the Note from current operations, the minimum balance requirement in the Borrower’s Account shall be reduced to Five Hundred Thousand and 00/100 Dollars ($500,000.00), At such time as the Borrower has demonstrated to Lender operating results for twelve (12) consecutive months showing a positive cash flow from operations (excluding any extraordinary income) so as to support the monthly payment of interest under the Note from current operations, the minimum balance requirement shall be terminated;

 

(e)                             promptly notify Lender of any condition or event which constitutes (or which, with the giving of notice or lapse of time, or both, would constitute) an Event of Default, and of any material adverse change in the financial condition of Borrower;

 

(f)                              maintain a standard and modern system of accounting in accordance with generally accepted accounting principles;

 

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(g)                             permit Lender or any of its agents or representatives to have access to and to examine all books and records regarding the Premises at any time or times hereafter during business hours; and

 

(h)                            permit Lender to copy and make abstracts from any and all of said books and records.

 

8.8                               Excess Indebtedness.  Borrower agrees to pay to Lender on demand the amount by which the indebtedness hereunder, at any time, may exceed the Loan Amount.

 

8.9                               Compliance with Covenants; Prohibition Against Additional Recordings. Borrower will comply with all recorded or other covenants affecting the Premises. Borrower will not record or permit to be recorded any document, instrument, agreement or other writing against the Land or Improvements without the prior written consent of Lender.

 

8.10                        Project Accounts. Borrower will set up and maintain all operating accounts and other accounts with Lender.

 

8.11                        Distributions. Borrower shall not make any distributions to its members of any revenue received by or on behalf of Borrower from the operation and ownership of the Project, unless or until the Loan and all interest accrued thereon and other amounts due and owing to Lender under the Loan Documents have been repaid in full.

 

8.12                        Further Assurance. Borrower, on request of Lender, from time to time, will execute and deliver such documents as may be necessary to perfect and maintain perfected as valid liens upon the Premises the liens granted to Lender pursuant to this Agreement, and to fully consummate the transactions contemplated by this Agreement.

 

ARTICLE 9

 

CASUALTIES AND CONDEMNATION

 

9.1                               Application of Insurance Proceeds and Condemnation Awards. The proceeds of any insurance policies collected or claims as a result of any loss or damage to any portion of the Project resulting from fire, vandalism, malicious mischief or any other casualty or physical harm and any awards, judgments or claims resulting from the exercise of the power of condemnation or eminent domain shall be applied to reduce the outstanding balance of the Loan or to rebuild and restore the Project, as provided in the Mortgage. Borrower shall not settle and adjust any claims under policies of insurance without Lender’s prior written consent, except as provided in the Mortgage.

 

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ARTICLE 10

 

ASSIGNMENTS, SALE AND ENCUMBRANCES

 

10.1                        Lender’s Right to Assign. Lender may assign, negotiate, pledge or otherwise hypothecate this Agreement or any of its rights and security hereunder, including the Promissory Note, Mortgage, and other Loan Documents to any bank, participant, financial institution, or any other person or entity and in case of such assignment, Borrower will accord full recognition thereto and agree that all rights and remedies of Lender in connection with the interest so assigned shall be enforceable against Borrower by such bank, participant, financial institution or any other person or entity with the same force and effect and to the same extent as the same would have been enforceable by Lender but for such assignment.

 

10.2                        Prohibition of Assignments and Encumbrances by Borrower. Except as expressly provided in the Mortgage, Borrower, without the prior written consent of Lender, shall not create, effect, consent to, attempt, contract for, agree to make, suffer or permit any Prohibited Transfer (as defined in the Mortgage).

 

ARTICLE 11

 

EVENTS OF DEFAULT BY BORROWER

 

11.1                        Event of Default Defined. The occurrence of any one or more of the following shall constitute an “Event of Default” as said term is used herein, and any Event of Default which may occur hereunder shall constitute an Event of Default under each of the other Loan Documents:

 

(a)                            Borrower fails to pay (i) any installment of principal or interest payable pursuant to any of the Promissory Note within ten (10) days of the date when due, or (ii) any other amount payable to Lender under the Promissory Note, this Agreement or any of the other Loan Documents within ten (10) days after the date when any such payment is due in accordance with the terms hereof or thereof;

 

(b)                            Borrower fails to perform or cause to be performed any other obligation or observe any other condition, covenant, term, agreement or provision required to be performed or observed by Borrower under the Promissory Note, this Agreement or any of the other Loan Documents; provided, however, that if such failure by its nature can be cured, then so long as the continued operation and safety of the Premises, and the priority, validity and enforceability of the liens created by the Mortgage or any of the other Loan Documents and the value of the Premises are not impaired, threatened or jeopardized, then Borrower shall have a period (“Cure Period”) of thirty (30) days after Borrower obtains actual knowledge of such failure or receives written notice of such failure to cure the same and an Event of Default shall not be deemed to exist during the Cure Period, provided further that if Borrower commences to cure such failure during the Cure Period and is diligently and in good faith attempting to effect such cure, the Cure Period shall be extended for sixty (60) additional days, but in no event shall the Cure Period be longer than ninety (90) days in the aggregate;

 

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(c)                             The existence of any inaccuracy or untruth in any material respect in any representation or warranty contained in this Agreement or any of the other Loan Documents or of any statement or certification as to facts delivered to Lender by Borrower;

 

(d)                            The disapproval by Lender of any construction work and failure of Borrower to commence correction to the satisfaction of Lender within thirty (30) days thereafter and diligently complete the same;

 

(e)                             An unreasonable delay in the construction of the Project or a discontinuance or abandonment of construction for a period of thirty (30) days, material failure to adhere to the Construction Schedule, or in any event a delay in construction of the Project so that the same, in Lender’s judgment, may not be completed on or before the Completion Date;

 

(f)                              The bankruptcy or insolvency of the General Contractor and failure of Borrower to procure a replacement General Contractor satisfactory to Lender within fifteen (15) days from the occurrence of such bankruptcy or insolvency;

 

(g)                             The occurrence of a Prohibited Transfer (as defined in the Mortgage);

 

(h)                            The existence of any collusion, fraud, dishonesty or bad faith by or with the acquiescence of Borrower which in any way materially relates to or materially affects this Loan or the Project;

 

(i)                                Failure by Borrower to deposit with Lender funds required to maintain the Loan In Balance within the time and in the manner herein required;

 

(j)                               If there occurs a material adverse change in the financial condition of Borrower;

 

(k)                            The termination of the Contract or the Architect’s Contract without Lender’s prior written consent;

 

(1)                            If the conditions set forth in Section 6.13 hereof are not complied with prior to the Completion Date;

 

(m)                        Borrower (i) files a voluntary petition in bankruptcy or is adjudicated a bankrupt or insolvent or files any petition or answer seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under the present or any future federal, state, or other statute or law, or (ii) seeks or consents to or acquiesces in the appointment of any trustee, receiver or similar officer of Borrower or of all or any substantial part of the property of Borrower or the Premises; or all or a substantial part of the assets of Borrower are attached, seized, subjected to a writ or

 

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distress warrant or are levied upon unless the same is released or located within thirty (30) days;

 

(n)                            The commencement of any involuntary petition in bankruptcy against Borrower or the institution against Borrower of any reorganization, arrangement, composition, readjustment, dissolution, liquidation or similar proceedings under any present or future federal, state or other statute or law, or the appointment of a receiver, trustee or similar officer for all or any substantial part of the property of Borrower, which shall remain undismissed or undischarged for a period of sixty (60) days;

 

(o)                            The failure of the Borrower to maintain all of its operating accounts with the Lender;

 

(p)                            The dissolution, termination or merger of Borrower; or

 

(q)                            The occurrence of an “Event of Default” under any of the other Loan Documents.

 

ARTICLE 12

 

LENDER’S REMEDIES UPON EVENT OF DEFAULT

 

12.1                        Remedies Conferred upon Lender. Upon the occurrence of any Event of Default, Lender, in addition to all remedies conferred upon Lender by law and by the terms of the Promissory Note, the Mortgage and the other Loan Documents, may pursue any one or more of the following remedies concurrently or successively, it being the intent hereof that none of such remedies shall be to the exclusion of any others:

 

(a)                            Take possession of the Premises and complete the construction and equipping of the Project and do anything required, necessary or advisable in Lender’s sole judgment to fulfill the obligations of Borrower hereunder, including the rights to avail itself of or procure performance of existing Construction Contracts, to let any contracts with the same contractors, subcontractors or others and to employ watchmen to protect the Premises from injury. Without restricting the generality of the foregoing and for the purposes aforesaid, Borrower hereby appoints and constitutes Lender as Borrower’s lawful attorney-in-fact with full power of substitution in the premises to perform the following actions:

 

(i)            to complete construction of the Project in the name of Borrower;

 

(ii)           to use unadvanced Loan Proceeds or to advance funds in excess of the face amount of the Promissory Note to complete the Project;

 

(iii)          to make changes in the Plans and Specifications which shall be necessary to complete the Project;

 

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(iv)          to retain or employ new contractors, subcontractors, architects, engineers and inspectors;

 

(v)           without inquiring into and without respect to the validity thereof, to pay, settle or compromise all existing bills and claims which may be liens, or to avoid such bills and claims becoming liens, against the Premises or any portion of the Premises or as may be necessary or desirable for the completion of the construction and equipping of the Project or for the clearance of title to the Premises;

 

(vi)          to prosecute and defend actions or proceedings in connection with the Premises;

 

(vii)         to take action and require such performance as Lender deems necessary or advisable under any of the bonds to be furnished hereunder and to make settlements and compromises with the surety or sureties thereunder, and in connection therewith, to execute instruments of release and satisfaction; and

 

(viii)        to do any and every act which Borrower might do in its own behalf with respect to the Premises, it being understood and agreed that this power of attorney shall be a power coupled with an interest and cannot be revoked;

 

(b)                            Withhold further disbursement of the proceeds of the Loan and terminate any of its obligations to Borrower;

 

(c)                             Declare the Promissory Note to be due and payable forthwith, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived;

 

(d)                            In addition to any rights of setoff that Lender may have under applicable law, Lender, without notice of any kind to Borrower, may appropriate and apply to the payment of the Promissory Note or of any sums due under this Agreement any and all balances, deposits, credits, accounts, certificates of deposit, instruments or money of Borrower then or thereafter in the possession of Lender; and

 

(e)                             Exercise or pursue any other remedy or cause of action permitted at law or in equity or under this Agreement or any other Loan Document, including, but not limited to, foreclosure of the Mortgage and enforcement of all Loan Documents.

 

12.2                        Right of Lender to Make Advances to Cure Events of Default; Obligatory Advances. If Borrower shall fail to perform any of its covenants or agreements herein or in any of the other Loan Documents contained, Lender may (but shall not be required to) perform any of such covenants and agreements, and any amounts expended by Lender in so doing, and any amounts expended by Lender pursuant to Section 12.1 hereof and any amounts advanced by Lender pursuant to this Agreement shall be deemed advanced by Lender under an obligation to do so regardless of the identity of the person or persons to whom said funds are disbursed. Loan Proceeds advanced by Lender in the exercise of its judgment that the same are needed to

 

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complete the Project to protect its security for the Loan are obligatory advances hereunder and shall constitute additional indebtedness payable on demand and evidenced and secured by the Loan Documents.

 

12.3                        Attorneys’ Fees. Borrower will pay Lender’s reasonable attorneys’ fees and costs in connection with the negotiation, preparation, administration and enforcement of this Agreement; without limiting the generality of the foregoing, if at any time or times hereafter Lender employs counsel for advice or other representation with respect to any matter concerning Borrower, this Agreement, the Premises or the Loan Documents or to protect, collect, lease, sell, take possession of, or liquidate any of the Premises, or to attempt to enforce or protect any security interest or lien or other right in any of the Premises or under any of the Loan Documents, or to enforce any rights of Lender or obligations of Borrower or any other person, firm or corporation which may be obligated to Lender by virtue of this Agreement or under any of the Loan Documents or any other agreement, instrument or document, heretofore or hereafter delivered to Lender in furtherance hereof, then in any such event, all of the attorneys’ fees arising from such services, and any expenses, costs and charges relating thereto, shall constitute an additional indebtedness owing by Borrower to Lender payable on demand and evidenced and secured by the Loan Documents.

 

12.4                        No Waiver. No failure by Lender to exercise, or delay by Lender in exercising, any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof, or the exercise of any other right, power or privilege. The rights and remedies provided in this Agreement and in the Loan Documents are cumulative and not exclusive of each other or of any right or remedy provided at law or in equity. No notice to or demand on Borrower in any case, in itself, shall entitle Borrower to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of Lender to any other or further action in any circumstances without notice or demand.

 

12.5                        Default Rate. From and after the date of any Event of Default until the date on which such Event of Default is cured, interest on funds outstanding hereunder shall accrue at the Default Rate and be payable on demand. The failure of Lender to charge interest at the Default Rate shall not be evidence of the absence of an Event of Default or waiver of an Event of Default by Lender.

 

ARTICLE 13

 

MISCELLANEOUS

 

13.1                        Time is of the Essence. Borrower agrees that time is of the essence in all of their covenants under this Agreement.

 

13.2                        Lender’s Determination of Facts. Lender at all times shall be free to establish independently to its satisfaction and in its sole and absolute discretion the existence or nonexistence of any fact or facts, the existence or nonexistence of which is a condition of this Agreement.

 

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13.3                   Prior Agreements. This Agreement and the other Loan Documents, and any other documents or instruments executed pursuant thereto or contemplated thereby, shall represent the entire, integrated agreement between the parties hereto with respect to construction of the Project not yet in place, and shall supersede all prior negotiations, representations or agreements pertaining thereto, either oral or written. This Agreement and any provision hereof shall not be modified, amended, waived or discharged in any manner other than by a written amendment executed by all parties to this Agreement.

 

13.4                   Disclaimer by Lender. Lender shall not be liable to the General Contractor, any Subcontractor, Architect, supplier, laborer, architect, engineer or any other party for services performed or materials supplied in connection with construction of the Project. Lender shall not be liable for any debts or claims accruing in favor of any such parties against Borrower or against the Premises. Borrower is not or shall not be an agent of Lender for any purposes, and Lender is not a venture partner with Borrower in any manner whatsoever. Lender shall not be deemed to be in privity of contract with the General Contractor, any Subcontractor, Architect or provider of services on or to the Premises, nor shall any payment of funds directly to the General Contractor, a Subcontractor, Architect or provider of services be deemed to create any third party beneficiary status or recognition of same by Lender unless and until Lender expressly assumes such status in writing. No General Contractor, Subcontractor, Architect, supplier, laborer, architect, engineer or other party shall be deemed to be a third party beneficiary of this Agreement or any of the Loan Documents. Approvals granted by Lender for any matters covered under this Agreement shall be narrowly construed to cover only the parties and facts identified in any written approval or, if not in writing, such approvals shall be solely for the benefit of Borrower.

 

13.5                   Indemnification. To the fullest extent permitted by law, Borrower hereby agrees to protect, indemnify, defend and save harmless, Lender and its directors, officers, agents and employees from and against any and all liability, expense or damage of any kind or nature and from any suits, claims or demands, including legal fees and expenses on account of any matter or thing or action or failure to act by Lender, whether or not in litigation, arising out of this Agreement or in connection herewith unless such suit, claim or damage is caused solely by any act, omission or willful malfeasance of Lender, its directors, officers, agents and authorized employees. This indemnity is not intended to excuse Lender from performing hereunder. This obligation on the part of Borrower shall survive the closing of the Loan, the repayment thereof and any cancellation of this Agreement. Borrower shall pay, and hold Lender harmless from, any and all claims of any brokers, finders or agents claiming a right to any fees in connection with arranging the financing contemplated hereby. Lender hereby represents that it has not employed a broker or other finder in connection with the Loan. Borrower represents and warrants that no brokerage commissions or finder’s fees are to be paid in connection with the Loan.

 

13.6                   Erection of Sign. Upon the request of Lender, Borrower shall, at Lender’s sole cost and expense, erect a sign on the Premises satisfactory to Lender in a conspicuous location indicating that the acquisition and construction financing for the Project has been arranged through and supplied by Lender.

 

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13.7                        Captions. The captions and headings of various Articles and Sections of this Agreement and exhibits pertaining hereto are for convenience only and are not to be considered as defining or limiting in any way the scope or intent of the provisions hereof.

 

13.8                        Inconsistent Terms and Partial Invalidity. In the event of any inconsistency among the terms hereof (including incorporated terms), or between such terms and the terms of any other Loan Document, Lender may elect which terms shall govern and prevail. If any provision of this Agreement, or any paragraph, sentence, clause, phrase or word, or the application thereof, in any circumstances, is adjudicated by a court of competent jurisdiction to be invalid, the validity of the remainder of this Agreement shall be construed as if such invalid part were never included herein.

 

13.9                        Gender and Number. Any word herein which is expressed in the masculine or neuter gender shall be deemed to include the masculine, feminine and neuter genders. Any word herein which is expressed in the singular or plural number shall be deemed, whenever appropriate in the context, to include the singular and the plural.

 

13.10                 Notices. Any notices, communications and waivers under this Agreement shall be in writing and shall be (i) delivered in person, (ii) mailed, postage prepaid, either by registered or certified mail, return receipt requested, or (iii) by overnight express carrier, addressed in each case as follows:

 

	
To   Lender:
    	
First   Midwest Bank 8501
    	
 
    
	
 
    	
W.   Higgins Road Chicago,
    	
 
    
	
 
    	
Illinois   60631 Attn: Mr.
    	
 
    
	
 
    	
Kenneth   Kadleck
    	
 
    
	
 
    	
 
    	
 
    
	
With   a copy to:
    	
Much   Shelist
    	
 
    
	
 
    	
191   N. Wacker Drive, Suite 1800
    	
 
    
	
 
    	
Chicago, Illinois   60606
    	
 
    
	
 
    	
Attn:   Mr. Michael Wolfe
    	
 
    
	
 
    	
 
    	
 
    
	
To   Borrower:
    	
Textura,   LLC
    	
 
    
	
 
    	
51   Sherwood Terrace, Suite K
    	
 
    
	
 
    	
Lake   Bluff, Illinois 60044
    	
 
    
	
 
    	
Attn:   Mr. Patrick Allin
    	
 
    
	
 
    	
 
    	
 
    
	
With   a copy to:
    	
Schiff   Hardin LLP
    	
 
    
	
 
    	
6600   Sears Tower
    	
 
    
	
 
    	
Chicago, Illinois   60606
    	
 
    
	
 
    	
Attn:   Mr. David A.  Grossberg
    	
 
    

 

or to any other address as to any of the parties hereto, as such party shall designate in a written notice to the other party hereto. All notices sent pursuant to the terns of this Paragraph shall be deemed received (i) if personally delivered, then on the date of delivery, (ii) if sent by overnight,

 

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express carrier, then on the next federal banking day immediately following the day sent, or (iii) if sent by registered or certified mail, then on the earlier of the third federal banking day following the day sent or when actually received.

 

13.11                 Effect of Agreement. The submission of this Agreement and the Loan Documents to Borrower for examination does not constitute a commitment or an offer by Lender to make a commitment to lend money to Borrower; this Agreement shall become effective only upon execution and delivery hereof by Lender to Borrower.

 

13.12                 Governing Law. This Agreement has been negotiated, executed and delivered at Chicago, Illinois, and shall be construed and enforced in accordance with the laws of the State of Illinois, without reference to the choice of law or conflicts of law principles of the State.

 

13.13                 Consent to Jurisdiction.  TO INDUCE LENDER TO ACCEPT THE NOTE, BORROWER IRREVOCABLY AGREES THAT, SUBJECT TO LENDER’S SOLE AND ABSOLUTE ELECTION, ALL ACTIONS OR PROCEEDINGS IN ANY WAY ARISING OUT OF OR RELATED TO THE LOAN DOCUMENTS WILL BE LITIGATED IN COURTS HAVING SITUS IN CHICAGO, ILLINOIS. BORROWER HEREBY CONSENTS AND SUBMITS TO THE JURISDICTION OF ANY COURT LOCATED WITHIN CHICAGO, ILLINOIS, WAIVES PERSONAL SERVICE OF PROCESS UPON BORROWER, AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY REGISTERED MAIL DIRECTED TO BORROWER AT THE ADDRESS STATED HEREIN AND SERVICE SO MADE WILL BE DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT.

 

13.14                 Waiver of Jury Trial. BORROWER AND LENDER (BY ACCEPTANCE HEREOF), HAVING BEEN REPRESENTED BY COUNSEL EACH KNOWINGLY AND VOLUNTARILY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS (a) UNDER THIS AGREEMENT OR ANY RELATED AGREEMENT OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION WITH THIS AGREEMENT OR (b) ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING WILL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. BORROWER AGREES THAT IT WILL NOT ASSERT ANY CLAIM AGAINST LENDER OR ANY OTHER PERSON INDEMNIFIED UNDER THIS AGREEMENT ON ANY THEORY OF LIABILITY FOR SPECIAL, INDIRECT, CONSEQUENTIAL, INCIDENTAL OR PUNITIVE DAMAGES.

 

13.15                 Waiver of Defenses. OTHER THAN CLAIMS BASED UPON THE FAILURE OF LENDER TO ACT IN A COMMERCIALLY REASONABLE MANNER, BORROWER, WAIVES EVERY PRESENT AND FUTURE DEFENSE (OTHER THAN THE DEFENSE OF PAYMENT IN FULL), CAUSE OF ACTION, COUNTERCLAIM OR SETOFF WHICH BORROWER MAY NOW HAVE OR HEREAFTER MAY HAVE TO ANY ACTION BY LENDER IN ENFORCING THIS AGREEMENT. PROVIDED

 

36

 

THAT LENDER ACTS IN GOOD FAITH, THE BORROWER RATIFIES AND CONFIRMS WHATEVER LENDER MAY DO PURSUANT TO THE TERMS OF THIS AGREEMENT. THIS PROVISION IS A MATERIAL INDUCEMENT FOR LENDER GRANTING ANY FINANCIAL ACCOMMODATION TO BORROWER.

 

13.16    Counterparts; Facsimile Signatures. This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Agreement. Receipt of an executed signature page to this Agreement by facsimile or other electronic transmission shall constitute effective delivery thereof. Electronic records of executed Loan Documents maintained by Lender shall deemed to be originals thereof.

 

Remainder of this page intentionally left blank 
 Signature page follows

 

37

 

IN WITNESS WHEREOF, Lender and Borrower have caused these presents to be executed the day and year first above written.

 

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
Textura,   LLC,
    
	
 
    	
a   Wisconsin limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   William Eichhorn
    
	
 
    	
 
    	
William   Eichhorn, its Executive Vice President
    
	
 
    	
 
    	
Sales   and Marketing
    

 

 

	
 
    	
LENDER:
    
	
 
    	
 
    
	
 
    	
First   Midwest Bank
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth Kadleck
    
	
 
    	
 
    	
Kenneth   Kadleck, Executive Vice President
    

 

38

 

EXHIBIT A

 

CONSTRUCTION LOAN AGREEMENT 

 

THE LAND

 

LOT 2 IN LAKE-COOK ROAD INDUSTRIAL PARK, A SUBDIVISION OF PART OF THE NORTHEAST 1/4 AND THE NORTHWEST 1/4 OF SECTION 5, TOWNSHIP 42 NORTH, RANGE 12 EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT OF SUBDIVISION RECORDED IN THE OFFICE OF THE COOK COUNTY RECORDER OF DEEDS ON FEBRUARY 18, 1982 AS DOCUMENT NO. 26147952, (EXCEPTING AND EXCLUDING FROM SAID LOT 2 THAT PORTION DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF SAID LOT 2: THENCE NORTH 00 DEGREES 24 MINUTES 37 SECONDS EAST ON A BEARING BASED ON THE ILLINOIS STATE PLANE COORDINATE SYSTEM NAD 83 EAST ZONE ALONG THE EAST LINE OF SAID LOT 2, A DISTANCE OF 16.96 FEET; THENCE SOUTH 89 DEGREES 52 MINUTES 08 SECONDS WEST, 464.17 FEET; THENCE SOUTH 88 DEGREES 25 MINUTES 45 SECONDS WEST, 85.23 FEET TO THE WEST LINE OF SAID LOT 2; THENCE SOUTH 00 DEGREES 24 MINUTES 24 SECONDS WEST ALONG SAID WEST LINE, 14.53 FEET TO THE SOUTH LINE OF SAID LOT 2, THENCE NORTH 89 DEGREES 53 MINUTES 55 SECONDS EAST ALONG SAID SOUTH LINE 549.35 FEET TO THE POINT OF BEGINNING) IN COOK COUNTY, ILLINOIS.

 

P.I.N.: 04-05-101-010

04-05-200-008

 

 

EXHIBIT B

 

CONSTRUCTION LOAN AGREEMENT 

 

PERMITTED EXCEPTIONS

 

1.                                 General real estate taxes for the year 2006 (Second Installment Only) and each year thereafter not yet due and payable.

 

2.                                 Exception No. (Per Pro-forma) contained on Schedule B of Chicago Title Insurance Company loan policy No. 8359951.

 

 

EXHIBIT C
 PROJECT BUDGET

 

See attached

 

 

Textura Office Budget
 1405 Lake Cook Road
 #5

 

Textura, LLC
 1405 Lake Cook Road
 Project Budget

 

	
Description
    	
 
    	
Amount
    	
 
    	
Equity (20%)
    	
 
    	
Loan(80%)
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Existing Building   and Land
    	
 
    	
8,627,500.00
    	
 
    	
1,725,500.00
    	
 
    	
6,902,000.00
    	
 
    
	
Parking   Resurfacing
    	
 
    	
120,000.00
    	
 
    	
24,000.00
    	
 
    	
96,000.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Demolition   Interior
    	
 
    	
126,000.00
    	
 
    	
25,200.00
    	
 
    	
100,800.00
    	
 
    
	
Demolition   Exterior
    	
 
    	
150,000.00
    	
 
    	
30,000.00
    	
 
    	
120,000.00
    	
 
    
	
Remove Existing   Floor
    	
 
    	
18,900.00
    	
 
    	
3,780.00
    	
 
    	
15,120.00
    	
 
    
	
Trench Concrete   for Conduit and Plumbing
    	
 
    	
8,625.00
    	
 
    	
1,725.00
    	
 
    	
6,900.00
    	
 
    
	
EPDM Roof
    	
 
    	
118,125.00
    	
 
    	
23,625.00
    	
 
    	
94,500.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
New Façade
    	
 
    	
1,650,000.00
    	
 
    	
330,000.00
    	
 
    	
1,320,000.00
    	
 
    
	
New Vestibule   Entries
    	
 
    	
15,000.00
    	
 
    	
3,000.00
    	
 
    	
12,000.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
New HVAC System
    	
 
    	
283,500.00
    	
 
    	
56,700.00
    	
 
    	
226,800.00
    	
 
    
	
Liebert Units
    	
 
    	
8,000.00
    	
 
    	
1,600.00
    	
 
    	
6,400.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Plumbing
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Refurbish   Existing to Code
    	
 
    	
48,000.00
    	
 
    	
9,600.00
    	
 
    	
38,400.00
    	
 
    
	
Install Slop Sink   to Code
    	
 
    	
5,200.00
    	
 
    	
1,040.00
    	
 
    	
4,160.00
    	
 
    
	
Revise Existing   Sprinkler System
    	
 
    	
94,500.00
    	
 
    	
18,900.00
    	
 
    	
75,600.00
    	
 
    
	
Install Double   Water Fountain
    	
 
    	
10,800.00
    	
 
    	
2,160.00
    	
 
    	
8,640.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
New Ceiling
    	
 
    	
126,000.00
    	
 
    	
25,200.00
    	
 
    	
100,800.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Electrical
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Specialty   Lighting
    	
 
    	
48,000.00
    	
 
    	
9,600.00
    	
 
    	
38,400.00
    	
 
    
	
Additional   Emergency and Exit Lighting
    	
 
    	
45,400.00
    	
 
    	
9,080.00
    	
 
    	
36,320.00
    	
 
    
	
110 Volt, 20 AMP   Wall Duplex Outlets
    	
 
    	
60,800.00
    	
 
    	
12,160.00
    	
 
    	
48,640.00
    	
 
    
	
Refurbish   Existing 2000 AMP Service
    	
 
    	
8,500.00
    	
 
    	
1,700.00
    	
 
    	
6,800.00
    	
 
    
	
Telephone   Connections, Boards and Wiring
    	
 
    	
20,000.00
    	
 
    	
4,000.00
    	
 
    	
16,000.00
    	
 
    
	
Refurbish and   Relamp Existin 2 x 4 Lights
    	
 
    	
10,710.00
    	
 
    	
2,142.00
    	
 
    	
8,568.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Finishes and   FF&E
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Elevator Cabs
    	
 
    	
15,000.00
    	
 
    	
3,000.00
    	
 
    	
12,000.00
    	
 
    
	
New Wall Finishes
    	
 
    	
97,522.00
    	
 
    	
19,504.40
    	
 
    	
78,017.60
    	
 
    
	
New Floor   Finishes
    	
 
    	
284,180.00
    	
 
    	
56,836.00
    	
 
    	
227,344.00
    	
 
    
	
Install New   Drywall
    	
 
    	
221,000.00
    	
 
    	
44,200.00
    	
 
    	
176,800.00
    	
 
    
	
Install New   Ceiling Partitions
    	
 
    	
120,000.00
    	
 
    	
24,000.00
    	
 
    	
96,000.00
    	
 
    
	
Interior Doors   and Hardware
    	
 
    	
31,500.00
    	
 
    	
6,300.00
    	
 
    	
25,200.00
    	
 
    
	
Custom Millwork
    	
 
    	
30,000.00
    	
 
    	
6,000.00
    	
 
    	
24,000.00
    	
 
    
	
FF&E and   electrical for 150 Work Stations
    	
 
    	
640,000.00
    	
 
    	
128,000.00
    	
 
    	
512,000.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Subtotal   Improvements and Alterations
    	
 
    	
4,295,262.00
    	
 
    	
859,052.40
    	
 
    	
3,436,209.60
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
General   Contractor General Conditions (5%)
    	
 
    	
224,763.00
    	
 
    	
44,952.60
    	
 
    	
179,810.40
    	
 
    
	
General   Contractor Profit and Overhead (5%)
    	
 
    	
224,763.00
    	
 
    	
44,952.60
    	
 
    	
179,810.40
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Signage
    	
 
    	
6,000.00
    	
 
    	
1,200.00
    	
 
    	
4,800.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total Hard Costs
    	
 
    	
13,498,288.00
    	
 
    	
2,699,657.60
    	
 
    	
10,798,630.40
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Soft Costs
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Development   Manager Fees and Expenses: AT Group
    	
 
    	
120,000.00
    	
 
    	
24,000.00
    	
 
    	
96,000.00
    	
 
    
	
A & E   Fees and Expenses: Valerio Dewalt Train
    	
 
    	
495,430.00
    	
 
    	
99,086.00
    	
 
    	
396,344.00
    	
 
    
	
Perm its
    	
 
    	
99,121.00
    	
 
    	
19,824.20
    	
 
    	
79,296.80
    	
 
    
	
Contingency
    	
 
    	
542,161.00
    	
 
    	
108,432.20
    	
 
    	
433,728.80
    	
 
    
	
Finnacing Fee:   FMWB 50 bps x $12 Million
    	
 
    	
60,000.00
    	
 
    	
12,000.00
    	
 
    	
48,000.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Legal Fees   (Bank’s and Schiff Hardin LLP)
    	
 
    	
150,000.00
    	
 
    	
30,000.00
    	
 
    	
120,000.00
    	
 
    
	
Estimated Closing   Costs (Appraisal, Title, etc.)
    	
 
    	
15,000.00
    	
 
    	
3,000.00
    	
 
    	
12,000.00
    	
 
    
	
Insurance
    	
 
    	
20,000.00
    	
 
    	
4,000.00
    	
 
    	
16,000.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Subtotal Soft   Costs
    	
 
    	
1,501,712.00
    	
 
    	
300,342.40
    	
 
    	
1,201,369.60
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total Budget
    	
 
    	
15,000,000.00
    	
 
    	
3,000,000.00
    	
 
    	
12,000,000.00
    	
 
    

 

 

EXHIBIT D

 

LOAN ADVANCE REQUISITION

 

First Midwest Bank

8501 W. Higgins Road, Suite 230

Chicago, Illinois 60631

Attention: Construction Loan Administration

 

PROJECT NAME: 1405 Lake Cook Road, Deerfield, Illinois (the “Project”)

BORROWER:                                               Textura, LLC (the “Borrower”) 
 DRAW NO:

 

Reference is hereby made to that certain Construction Loan Agreement dated as of August 14, 2007 (the “Loan Agreement”), executed by and between the Borrower and First Midwest Bank (the “Bank”). Capitalized words and phrases used herein without definition shall have the respective meanings ascribed to such words and phrases in the Loan Agreement.

 

1.                                      Pursuant to the Loan Agreement, the Borrower hereby requests a Construction Disbursement in the amount of $                                              . The Borrower acknowledges that the approval of this Construction Disbursement by the Bank is subject to all of the terms and conditions precedent for the disbursement of Loan proceeds, including, without limitation, inspection of the Project, verification of the matters set forth in this Loan Advance Requisition and the available of Loan proceeds. The Borrower acknowledges that that no funds shall be disbursed by the Bank in connection with any portion of the Project for which a payoff amount has been quoted by the Bank to a title company.

 

2.                                      The Borrower agrees to provide, if requested by the Bank, a Vendor Payee List (Sworn Owner’s Statement), showing the name and the amount currently due each party to whom the Borrower is obligated for labor, material and/or services supplied. This information would be provided in support of the disbursements requested in this Loan Advance Requisition.

 

3.                                      The Borrower hereby represents, warrants and covenants with the Bank as 
 follows:

 

(a)                                 all conditions precedent to the disbursement have been satisfied, including, without limitation, performance of all of the then pending obligations of Borrower under the Loan Agreement and the other Loan Documents;

 

(b)                                 all representations and warranties made by the Borrower to the Bank in the Loan Agreement and otherwise in connection with the Loan continue to be accurate;

 

 

(c)                                  no Event of Default has occurred under the Loan Agreement or under any Loan Document, and no event, circumstance or condition has occurred or exists which, with the passage of time or the giving of notice, would constitute a Event of Default under the Loan Agreement or under the other Loan Documents;

 

(d)                                 the Borrower has received no notice and has no knowledge of any litigation, proceedings (including proceedings under Title 11 of the United States Code), liens or claims of lien, either filed or threatened against the Borrower, the Project or the Contractor, the Premises, except the liens of the Lender and those which are specifically identified in writing to the Bank;

 

(e)                                  no event, circumstance or condition exists or has occurred which could delay or prevent the completion of the Project by the Completion Date;

 

(f)                                   all Construction Disbursements advanced by the Bank to the Borrower for labor, materials and/or services furnished prior to this draw request have been paid to the parties entitled to such payment, and all Loan proceeds so disbursed have been used for the purposes set forth in the Loan Agreement;

 

(g)                                  all work and materials furnished to date for the Project substantially conform with the Plans and Specifications, and the Borrower has approved all work and materials for which a payment is now due and for which this Construction Disbursement is being requested;

 

(h)                                 the total amount of the requested Construction Disbursement represents the actual amount payable to the Contractor and/or Subcontractors who have performed work on the Project, and all of the Construction Disbursement requested hereby will be used as payment for the work on the Project described on the attached documentation and for no other reason;

 

(i)                                     all change orders or changes to the Plans and Specifications or the Schedule of Values have been submitted to and approved by Bank, if such approval is required; and

 

(j)                                    the Loan is In Balance (including, without limitation, any change orders approved by the Bank).

 

4.                                      Disbursement of the Loan proceeds requested hereby may be subject to (a) the receipt by the Bank of a certificate from the issuing Title Company stating that no claims have been filed of record which adversely affects the title, and (b) approval from the Bank’s Inspecting Architect/Consultant.

 

5.                                      The amount of change orders in dispute between the Borrower and the General Contractor (or any Subcontractor) is $              

 

 

6.                                      The Borrower hereby agrees and acknowledges that this affidavit is made for the purpose of inducing the Bank to make a Construction Disbursement to the Borrower and the Bank is relying upon the accuracy of such matters in making such Construction Disbursement, and the Borrower certifies that the statements made herein and in any documents submitted herewith are true and correct.

 

7.                                      The Borrower requests that this draw be funded and that the funds be disbursed into the Construction Escrow No.                                 at                                        or deposited to the following account number                              at                             

 

IN WITNESS WHEREOF, the Borrower has executed this Loan Advance Requisition as of                                     , 200  .

 

 

	
 
    	
Textura,   LLC,
    
	
 
    	
a   Wisconsin limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Patrick Allin, its Chief Executive Officer

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