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CREDIT FACILITY AGREEMENT
BY THIS CREDIT FACILITY AGREEMENT ("Agreement") made and entered into
as of the 18th day of June, 1999, EBS BUILDING, L.L.C., A DELAWARE LIMITED
LIABILITY COMPANY ("EBS"), whose address is PricewaterhouseCoopers LLP, 000
Xxxxxx Xxxxxx, Xxxxx 0000, Xx. Xxxxx, Xxxxxxxx 00000, Attn: Xxxxx X. Xxxxxx,
Partner ("Borrower") and FINPRO, L.L.C., A MISSOURI LIMITED LIABILITY COMPANY,
whose address is 0000 Xxxxxx Xxxxxx, Xxxxx 000, Xxxxxxxx, Xxxxxxxx 00000
(hereinafter called "Lender"), for and in consideration of the recitals and
mutual promises contained herein, confirm and agree as follows:
SECTION 1. RECITALS; DEFINITIONS
1.1 Loan. Borrower has applied to Lender for a loan for the purpose of
financing renovation, and certain other expenses in connection with
leasing and operation of the building known and numbered as One
Financial Plaza, 000 Xxxxxxxxxx Xxxxxx, Xx. Xxxxx, Xxxxxxxx containing
approximately 434,136 rentable square feet of office space (the
"Project").
1.2 Definitions. For the purposes of this Agreement, unless the context
otherwise requires, the following terms shall have the respective
meanings assigned to them in this Paragraph 1.2 or in the paragraph
hereof referred to below:
"Adjusted NOI" of Borrower, for any period, means all income of the
Project of any type for such period, less all Operating Expenses of the Project
for such period.
"Advance" and "Advances" means individually an advance of funds under,
and collectively advances of funds under the Loan.
"Agreement" means this Credit Facility Agreement.
"ALTA" means American Land Title Association.
"Appraisal" for the Project means an appraisal of the Project (i)
ordered by Lender, (ii) prepared by an appraiser reasonably satisfactory to
Lender, (iii) in compliance with all federal and state standards for appraisals
of real estate prepared by or on behalf of national banking associations. Lender
has approved the appraisal dated December 22, 1998 prepared by Xxxxxx Xxxxx
which has determined the Appraised Value of the Project to be $21,100,000.00 and
the "fully stabilized" Appraised Value of the Project to be $32,200,000.00.
"Appraised Value of the Project" at any time means the fair market
value of the Project, based upon the then most recent Appraisal, a current
validation of such Appraisal, or a new Appraisal, as the Lender may require in
its sole discretion.
"Approved Lease" means a Lease which has been approved by Lender as
provided in this Agreement.
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"Assignment" means the Assignment of Rents and Lessor's Interest in
Leases and Contract Rights of even date herewith from Borrower, as Assignor, to
Lender, as Assignee.
"Borrower's Architect" means a supervising architect of the
Improvements for the Project.
"Budget" with respect to any Lease, means the detailed budget for the
Tenant Improvements to be constructed by Borrower in accordance with such Lease,
prepared by or on behalf of Borrower and/or Borrower's Architect, allocating the
Buildout Price by categories and amount to specific items of Hard Costs and Soft
Costs, as the same may be amended, modified or supplemented with the consent of
Lender.
"Buildout Price" for any Tenant Improvements, means the sum of (i) the
Hard Costs, and (ii) the Soft Costs for the Tenant Improvements, as such amount
may be modified as expressly set forth in this Agreement.
"Business Day" means a Monday, Tuesday, Wednesday, Thursday or Friday
on which banks are open for business in St. Louis, Missouri.
"Change Orders" for any Tenant Improvements, means any amendments,
modifications or supplements to the Contract Documents, accompanied by a
certificate of Borrower, or at Lender's reasonable request (if Borrower is using
a supervising architect), Borrower's Architect outlining the impact of the
amendment or modification on the Buildout Price, the Budget, the Construction
Schedule and the Schedule of Values. All such amendments or modifications shall
be subject to the prior approval of Lender, not to be unreasonably withheld.
"Closing Date" means the earlier of the date of Initial Advance of
proceeds of the Loan or the recording of the Deed of Trust.
"Commitment Fee" means the amount set forth in Schedule 1.
"Completion Date" for any Tenant Improvements, means the date of the
final Subsequent Advance with respect to such Tenant Improvements.
"Construction Related Advance" shall have the meaning set forth in
Paragraph 2.1(d).
"Construction Schedule" for any Tenant Improvements, means the schedule
for construction of such Tenant Improvements prepared by the general contractor
and approved by Lender in the exercise of its reasonable judgment.
"Contract Documents" for any Tenant Improvements, means the architect's
agreements, the general contract, major subcontracts, the Construction Schedule
and the final drawings, specifications and other agreements and schedules for
the construction of such Tenant Improvements prepared by Borrower's Architect,
together with all amendments and modifications thereof and supplements thereto
made by Change Orders.
"Debt" means (i) any indebtedness of Borrower for borrowed money, (ii)
all indebtedness of Borrower evidenced by bonds, debentures, notes, letters of
credit, drafts or similar instruments,
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(iii) all indebtedness of Borrower to pay the deferred purchase price of
property or services, (iv) all capital lease obligations of Borrower, (v) all
Debt of others secured by a lien on any asset of Borrower, whether or not such
Debt is assumed by Borrower or guaranteed by Borrower, and (vi) payables and
accrued liabilities. The amount of Debt of Borrower at any date pursuant to
clauses (i)-(iv) and (vi) above shall be as would appear as a liability upon a
balance sheet of Borrower in accordance with GAAP.
"Debt Redemption Fee" means the amount set forth in Schedule 1.
"Deed of Trust" means the Deed of Trust, Security Agreement and Fixture
Filing, dated of even date herewith, executed by Borrower, as trustor, for the
benefit of Lender, as beneficiary, as may be amended, modified, extended,
renewed, restated, or supplemented from time to time.
"Edison Brothers Lease" means the Lease from Borrower to Edison
Brothers Stores, Inc., dated September 30, 1998, for floors 3, 4 and 5, parts of
floors 1 and 2, and the mezzanine levels of floors 1 and 2 in the Project.
"Escrow Account" shall have the meaning set forth in Paragraph 7.11.
"Event of Default" means the occurrence of any of the events or
conditions listed in Paragraph 10.1 herein.
"GAAP" means generally accepted accounting principles consistently
applied.
"Hard Costs" with respect to any Tenant Improvements, means the total
of all costs and expenses, other than the Soft Costs, relating to the
construction of such Tenant Improvements as identified in the Budget and
Schedule of Values for such Tenant Improvements.
"Improvements" means all the improvements now or hereafter located or
constructed on the Real Property.
"Initial Advance" shall mean the Advance made to Borrower pursuant to
Paragraph 2.1(c).
"Lease" means an enforceable lease for any portion of the Project.
"Loan" means the amounts to be loaned by Lender to Borrower pursuant to
the terms of this Agreement, the Note and the Security Documents.
"Loan Commitment" shall have the meaning set forth in Paragraph 2.1(a).
"Loan Documents" means this Agreement, the Note, the Security Documents
and any other agreements, documents, or instruments evidencing, securing or
otherwise relating to the Note, or executed or delivered in connection with the
Loan, as such agreements, documents, and instruments may be amended, modified,
extended, renewed or supplemented from time to time.
"Maturity Date" means May 31, 2001, or such earlier date as Borrower is
dissolved.
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"Maximum Initial Advance Amount" means the amount set forth in
Schedule 1.
"Maximum Lease Advance Amount" for any Lease means an amount calculated
as set forth in Schedule 1.
"Note" means that certain $12,000,000.00 Promissory Note of even date
herewith from Borrower to Lender as such note may be amended, modified,
extended, renewed, restated or supplemented from time to time.
"Operating Deficit Advance and Capitalized Interest Advance" shall mean
an advance made to Borrower pursuant to paragraph 2.1(d)(iii) or (iv).
"Operating Expenses" of the Project for any period means the sum of (i)
all actual ordinary and normal expenses of the operation of the Project
(Including management fees and legal fees and other ownership level expenses and
professional fees but excluding debt service, depreciation and the cost of all
replacements actually incurred), and (ii) replacement reserves for such period,
imputed at a rate equal to twenty cents ($0.20) per annum per rentable square
foot of the Project.
"Project" shall have the meaning set forth in the recitals to this
Agreement.
"Real Property" means, collectively, all the real property owned (with
respect to Parcel No. 1) and leased (with respect to Parcel No. 2) by Borrower
described on Exhibit "A", attached hereto and by this reference incorporated
herein.
"Request for Disbursement" means (i) for an Advance with respect to a
Lease under which Borrower is financing any Tenant Improvements, a properly
completed request for disbursement in the form attached hereto as Exhibit "F-1";
and (ii) for an Advance with respect to a Lease under which Borrower is not
financing any Tenant Improvements, or for which the Final Advance for Tenant
Improvements has been made by Lender, a properly completed request for
disbursement in the form attached hereto as Exhibit "F-2," each such request to
be certified to Lender by Borrower and delivered to Lender, prior to such
Advance as contemplated in this Agreement.
"Required Equity" shall have the meaning set forth in Paragraph 2.2(b)
of this Agreement.
"Retainage" has the meaning set forth in Paragraph 3(c) of Exhibit
"C-1".
"Retention Funds" with respect to any Tenant Improvements, means ten
percent (10%) of the costs under the construction contract for construction of
such Tenant Improvements.
"Schedule of Values" with respect to any Tenant Improvements, means AIA
Form G703, allocated by Construction Specifications Institute category, attached
to the Budget, prepared by Borrower and/or Borrower's Architect prior to any
Construction Component Advance for such Tenant Improvements, and approved by
Lender in its reasonable discretion.
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"Security Documents" means the Deed of Trust, the Assignment and any
other agreements, documents or instruments executed and delivered by Borrower in
order to grant and perfect the lien and security interest required herein, as
such agreements, documents, and instruments may be amended, modified, extended,
renewed or supplemented from time to time.
"Servicing Agent" means NationsBank, N.A. or any other successor
servicing agent from time to time appointed by Lender by giving written notice
to Borrower.
"Servicing and Administration Fee" means the amount set forth in
Schedule 1.
"Soft Costs" means certain fees, costs and expenses relating to the
construction of the related Tenant Improvements other than costs for labor and
materials, all as identified in the related Budget and the Schedule of Values,
including, without limitation, brokerage commissions.
"Subsequent Advances" means Advances following the Initial Advance.
"Tenant" means a tenant under a Lease.
"Tenant Improvements" means the improvements to be constructed upon the
premises described in any Lease in accordance with the Contract Documents for
such Tenant Improvements.
"Title Policy" means an ALTA mortgagee's title insurance policy or
similar policy acceptable to Lender.
SECTION 2. COMMITMENTS; ADVANCES
2.1 Loan.
(a) Loan Commitment. Subject to the conditions herein set
forth, Lender agrees to make a Loan available to Borrower in
the manner set forth below, upon the terms and conditions
herein expressed, in amounts that in the aggregate shall, not
exceed, Twelve Million And No/100 Dollars ($12,000,000.00).
(b) Note. The Loan shall be evidenced by a Note in the form
attached hereto as Exhibit B and interest and principal shall
be payable upon the terms and conditions contained therein.
(c) Initial Advance. Lender shall make an Advance to Borrower,
subject to all of the applicable terms and conditions provided
herein, in an aggregate amount equal to the sum of Six Million
Dollars ($6,000,000.00) as follows:
(i) The amount of $5,200,000 being the outstanding
balance on the existing loan from First Bank; and
(ii) The amount of $800,000 to be used to pay other
costs relating to operation and management of the
Project including, without limitation, the
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escrow deposit described in Paragraph 7.11 of this
Agreement and other fees and expenses associated
with this Agreement.
(d) Subsequent Advances. Subject to the limitations and
conditions set forth in this Agreement, Lender shall make
Subsequent Advances from time to time to provide Borrower with
additional financing of up to Three Million Five Hundred
Thousand Dollars ($3,500,000) in the aggregate with respect to
any Approved Lease, including without limitation, if Borrower
so requests, to pay leasing commissions and to pay approved
costs in connection with the construction of Tenant
Improvements with respect to any Approved Lease. Lender shall
also make Subsequent Advances of up to Two Million Five
Hundred Thousand Dollars ($2,500,000) in the aggregate from
time to time to provide the Borrower with financing to pay
certain operating deficits and interest expenses as provided
below. All Subsequent Advances will be made by Lender subject
to the following conditions:
(i) Borrower-Financed Tenant Improvements. With
respect to any Lease which requires Borrower to
finance or pay for or construct any part of the
Tenant Improvements, Subsequent Advances in respect
of such Tenant Improvements (each, a "Construction
Related Advance") shall be made, subject to all of
the requirements of Exhibit "C-1," attached, and in
an aggregate amount not to exceed the Maximum Lease
Advance Amount for such Lease, upon Lender's (i)
receipt of a Request for Disbursement, together with,
if applicable, a list certified by Borrower or
Borrower's general contractor of payees and amounts
due to each payee in connection with such Subsequent
Advance, and (ii) approval of the corresponding
Subsequent Advance as herein provided. Such Advance
shall be made to Borrower, provided that if an Event
of Default is then continuing, Lender may determine
whether to disburse Subsequent Advances jointly to
Borrower and general contractor and/or subcontractors
or suppliers or directly to general contractor or
subcontractors or suppliers, rather than directly to
Borrower, and Borrower hereby irrevocably directs and
authorizes Lender to so disburse the funds. No
further direction or authorization from Borrower
shall be necessary for such Subsequent Advances.
(ii) Advances Not for Tenant Improvements. With
respect to (a) any Lease which does not require
Borrower to finance any part of the Tenant
Improvements and (b) any other Lease for which the
final Advance to finance Tenant Improvements has been
made as contemplated in clause (i) above or for which
Borrower has financed all such Tenant Improvements
itself, a Subsequent Advance for payment of leasing
commissions and other non-construction expenses with
respect to such Lease or to make any other capital
expenditure benefiting the Project permitted by
paragraph 7.17(a) (a "Lease Related Advance") shall
be made, subject to all of the requirements
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of Exhibit "C-2" attached hereto, upon (1) Lender's
receipt of a Request for Disbursement and (2)
approval of the Subsequent Advance as herein
provided. In no event shall Construction Related
Advances and Lease Related Advances under this clause
(ii) in the aggregate exceed the lesser of (a)
$3,500,000.00 or (b) an amount which when combined
with all other Advances under the Loan would exceed
$12,000,000.00.
(iii) Advances for Operating Deficits. Borrower may
request monthly Advances ("Operating Deficit
Advances") for the purpose of paying Operating
Expenses and/or ownership level expenses and
professional fees but only to the extent that
Borrower's income from the Project for the applicable
period and Borrower's liquid assets other than the
Real Property, but exclusive of up to $100,000.00 in
a Borrower held operating account, are insufficient
to pay the same. In no event shall Operating Deficit
Advances hereunder exceed the lesser of (a)
$1,000,000.00 in the aggregate or (b) an amount which
when combined with all other Advances under the Loan
would exceed $12,000,000.00.
(iv) Advances for Interest. All revenues of the
Project of any type shall be deposited by Borrower
into an operating account in Borrower's name
maintained at NationsBank, N.A. or at such other bank
as Lender shall from time to time direct by written
notice to Borrower. Borrower may withdraw funds from
such account to pay any and all amounts which are
permissible by the terms of this Agreement. On the
day that any payment of interest and/or principal is
due hereunder, Lender is hereby authorized to direct
NationsBank, N.A. to withdraw the amount of such
payment from the operating account (exclusive of the
$100,000 reserve referred to in (iii) above and
disburse the same to Lender. So long as no Event of
Default has occurred and is then continuing, if there
are insufficient funds in the operating account to
pay any payment of interest as and when due
hereunder, Lender shall make an Advance ("Capitalized
Interest Advance") to pay such deficiency. In no
event shall Capitalized Interest Advances hereunder
exceed the lesser of (a) $1,500,000.00 in the
aggregate, or (b) an amount which when combined with
all other Advances under the Loan would exceed
$12,000,000.00.
(v) Documentation with Respect to Advances. Each
Request for Disbursement shall include invoices
sufficient in the reasonable judgment of Lender or
Servicing Agent to substantiate all costs (if any)
which are to be paid from the requested Subsequent
Advance and such conditional lien waivers and/or
affidavits and other information as Lender or
Servicing Agent may reasonably require.
Notwithstanding anything to the contrary contained in
this Agreement, Borrower shall deliver all Requests
for Disbursement to Servicing Agent which shall
review the Request for compliance with the terms of
this Agreement prior to forwarding such
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Request to Lender. If a Request for Disbursement
includes a request to make an advance for Hard Costs,
a properly completed Application and Certificate for
Payment (AIA Forms G702 and G703) shall also be
executed by the general contractor and, if Borrower's
Architect is performing inspections, the Borrower's
Architect, and attached to the Request for
Disbursement.
2.2 Right to Advances.
(a) Borrower shall have no right to any Advance other than to
have the same disbursed by Lender in accordance with the
provisions of this Agreement. Any assignment or transfer,
voluntary or involuntary, of this Agreement or any right
hereunder shall not be binding upon or in any way affect
Lender without its written consent; Lender may nevertheless
make Advances in accordance with the provisions herein,
notwithstanding any such assignment or transfer.
(b) Any other provision of this Agreement to the contrary
notwithstanding, Lender shall be under no obligation to make
any Subsequent Advance with respect to a Lease which requires
Borrower to finance the construction of Tenant Improvements
unless, prior to such Subsequent Advance, Borrower has paid
from its own funds an amount equal to the full amount of the
related Buildout Price for any Tenant Improvements less the
Maximum Lease Advance Amount for such Lease ("Required
Equity").
(c) Anything in the foregoing to the contrary notwithstanding,
Lender shall have no obligation to make any Subsequent Advance
to Borrower with respect to any Lease if the amount of such
Advance, when combined with all other Subsequent Advances to
Borrower with respect to such Lease, would exceed the Maximum
Lease Advance Amount for such Lease.
(d) Lender shall have no obligation to make any Subsequent
Advance to Borrower if the amount of such Advance, when
combined with all other Advances under the Loan would exceed
the sum of $12,000,000.00.
(e) Subsequent Advances, other than Operating Deficit and
Capitalized Interest Advances, shall be in aggregate amounts
of not less than $200,000.00 (except for final draw Advances
for Tenant Improvements, which may be in the amount of the
final draw request).
2.3 Excess Advances. Upon written notice from Lender, Borrower shall
within two (2) business days after delivery of such notice repay any
Advance received by Borrower in excess of the amount Borrower is
entitled to under the provisions of this Agreement.
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SECTION 3. LOAN AND DOCUMENTATION FEES
3.1 Loan Fee. On the Closing Date, Lender shall have earned and
Borrower shall pay to Lender the Commitment Fee and the portions of the
Servicing and Administration Fee and Debt Redemption Fee due and
payable on the Closing Date.
3.2 Servicing and Administration Fee. Lender shall have earned and
Borrower shall pay the Servicing and Administration Fee in the amounts
and at the times set forth in Schedule 1 attached hereto.
3.3 Debt Redemption Fee. Lender shall have earned and Borrower shall
pay the Debt Redemption Fee in the amounts and at the times set forth
in Schedule 1 attached hereto.
3.4 Unused Commitment Fee. Lender shall have earned and Borrower shall
pay the Unused Commitment Fee in the amounts and at the times set forth
in Schedule 1 attached hereto.
SECTION 4. SECURITY
4.1 Security. Borrower shall cause the Loan and all of Borrower's
obligations under this Agreement to be secured by the following:
(a) The Deed of Trust constituting a first and prior lien on
the Project, subject only to such matters as specifically
approved by Lender therein.
(b) Valid and effectual assignments (which shall be made under
the Deed of Trust) of Borrower's interest in the Plans and
Specifications, all construction, architects' and engineers'
contracts, all operating, management and supervision
agreements, all other documents relating to the ownership,
development, construction, maintenance, leasing, management
and operation of such Project and all operating and other cash
accounts, securities, investments and similar property of the
Borrower;
(c) the Assignment, and
together with any UCC financing statements for filing and/or recording and any
other items reasonably required by Lender to fully perfect the liens and
security interests of Lender.
SECTION 5. CONDITIONS PRECEDENT FOR CLOSING AND ADVANCES
The obligation of Lender to make the Loan and each and every Advance is
subject to the following express conditions precedent:
5.1 Loan Documents. Borrower shall have executed (or obtained the
execution or issuance of) and delivered to Lender all of the following
documents, in form reasonably satisfactory to Lender:
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(a) This Agreement;
(b) The Note;
(c) The Security Documents:
(i) The Deed of Trust;
(ii) The Assignment;
(iii) UCC-1 financing statements as required by
Lender;
(d) An Environmental Indemnity Agreement executed by Borrower;
(e) Non-Disturbance, Attornment, Estoppel and Subordination
Agreements ("Non-Disturbance Agreements"), in form
satisfactory to Lender, executed by Borrower and all current
Tenants of the Project provided that only such agreements
executed by Stifel Financial Corp., Xxxxxx Xxxxxxxx & Company,
Incorporated, and Edison Brothers Stores Inc. shall be
required to be delivered to Lender prior to the Initial
Advance and such agreements from all current tenants must be
delivered to Lender prior to any Subsequent Advance;
(f) The Management Agreement Subordination, the Consulting
Agreement Subordination and the Brokerage Agreement
Subordination executed by Borrower and the entities providing
property management, consulting and brokerage services to the
Project and Borrower.
(g) Pro-forma balance sheet of Borrower, certified by the
manager of Borrower, showing its financial condition
immediately after the Initial Advance;
(h) Certificates of Borrower as to such matters regarding
Borrower's formation, good standing, authority and other
factual matters relating to the Project and Borrower's
representations and warranties in the Loan documents as Lender
may require.
(i) Such other items as Lender may reasonably require.
Full satisfaction of the requirements of this paragraph 5.1 with respect to the
Initial Advance shall constitute satisfaction of such requirements for all
additional Advances.
5.2 Fees and Expenses. Lender shall have received the Commitment Fee
and all portions of the Servicing and Administration Fee and the Debt
Redemption Fee payable at the time of such Advance, and Borrower shall
have paid or reimbursed Lender for Lender's expenses as provided in
Paragraph 12.7. Payment of the Commitment Fee at the time of the
Initial Advance shall constitute satisfaction of the Commitment Fee
requirement of this paragraph 5.2 for all additional Advances.
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5.3 Other Conditions. Borrower, at its expense, shall have obtained and
delivered to Lender the following items relating to the Project, all of
which shall be in form and content reasonably satisfactory to Lender
and shall be subject to approval in writing by Lender:
(a) The Appraisal certified to Lender.
(b) Four (4) prints of an original survey of the Real Property
and improvements thereon dated not more than sixty (60)
calendar days prior to the date of this Agreement (or dated
such earlier date, if any, as is satisfactory to the title
insurer, but in any event not more than one hundred eighty
(180) calendar days prior to the date of this Agreement)
satisfactory to Lender and the title insurer and otherwise
complying with Exhibit "D".
(c) An irrevocable commitment from a title insurance company
satisfactory to Lender to issue a Title Policy, with the Title
Policy being issued within a reasonable time after the
recording of the Deed of Trust, with such endorsements as
Lender may require, in the full amount of the Loan, insuring
the lien of the Deed of Trust to be a first and prior lien
upon the Project as security for all Advances pursuant to the
terms of this Agreement, subject only to such exceptions as
Lender may expressly approve in writing.
(d) A current preliminary environmental assessment (Phase I
assessment) of the Real Property and adjacent property, plus
any sampling and analysis (Phase II assessment) or special
limited assessment that Lender may require after review of the
Phase I assessment, together with any other environmental
investigations and reports that Lender may require, all of
which shall be by an environmental consulting firm acceptable
to Lender and none of which shall reveal any existing or
potential environmental condition adversely affecting the use
or value of the Real Property.
(e) Evidence that the Real Property is properly zoned for its
intended use.
(f) Certificates of insurance evidencing the following:
(i) Policies of insurance evidencing personal
liability and property damage liability coverages in
amounts not less than $10,000,000.00 (combined single
limit for bodily injury and property damage), and an
umbrella excess liability coverage in an amount not
less than $10,000,000.00 shall be in effect with
respect to Borrower. Such policies must be written on
an occurrence basis so as to provide blanket
contractual liability, broad form property damage
coverage, earthquake coverage and coverage for
products and completed operations. In addition, in
the event Borrower owns or operates any motor
vehicles there shall be obtained and maintained
business motor vehicle liability insurance protecting
Borrower and Lender against loss or losses from
liability relating to motor vehicles owned,
non-owned, hired or used by Borrower, any contractor,
any
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subcontractor, or any other person in any manner
related to the Project with a limit of liability of
not less than the amount set forth above (combined
single limit for personal injury (including bodily
injury and death) and property damage).
(ii) Fire and extended coverage insurance on the
Improvements in an amount not less than the full
insurable value on a replacement cost basis of the
insured Improvements and personal property related
thereto.
(iii) If applicable, evidence of worker's
compensation insurance coverage satisfactory to
Lender.
(iv) If the Real Property, or any part thereof, lies
within a "special flood hazard area" as designated on
maps prepared by the Department of Housing and Urban
Development, a National Flood Insurance Association
standard flood insurance policy, plus insurance from
a private insurance carrier if necessary, for the
duration of the Loan in the amount of the full
insurable value of the completed Improvements.
(v) Such other insurance as Lender may reasonably
require, which may include, without limitation,
insurance covering vandalism and malicious mischief,
sprinkler leakage, rent abatement and/or business
loss.
All insurance policies (i) shall be issued by an insurance company reasonably
acceptable to Lender, (ii) name Lender as an additional insured on all liability
insurance and first mortgagee on all casualty insurance, and (iii) provide that
Lender is to receive thirty (30) days written notice prior to cancellation.
(g) Evidence whether the Real Property, or any part thereof,
lies within a "special flood hazard area" as designated on
maps prepared by the Department of Housing and Urban
Development.
(h) Copies of all lease agreements affecting the Project and,
if requested by Lender, a summary detailing the major terms of
each lease, including, without limitation, contract rent, free
rent, and other concessions, prepaid rent, security deposits,
net effective rent, expense stop and other expense
information.
(i) Copies of all other material agreements between Borrower
and any architects, engineers, managers or supervisors related
to the maintenance, repair, leasing, management and operation
of the Project, together with written agreements by such
persons or entities that they will perform for Lender the
services contracted to Borrower, notwithstanding the
occurrence of any Event of Default and any trustee's sale or
foreclosure of the Deed of Trust (provided that such persons
or entities continue to receive payments under their
respective contracts), and the consent of such persons or
entities to the collateral assignment by Borrower to Lender of
their respective contracts.
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(j) Copies of any Declaration of Covenants, Conditions and
Restrictions and related documents pertaining to the Project.
(k) Evidence that all taxes and assessments levied against or
affecting the Real Property have been paid current.
(l) The following documents regarding Borrower: (i) a copy of
Borrower's organizational documents; (ii) evidence of the
proper formation and good standing of Borrower in the state of
its organization; (iii) evidence of qualification or
registration in the State of Missouri; and (iv) proper
resolutions, authorizations, certificates, and such other
documents as Lender may reasonably require, relating to the
existence and good standing of Borrower and the authority of
any person executing documents on behalf of Borrower.
(m) UCC search reports of Borrower as Lender may require.
(n) Financial statements from Borrower in form and content
satisfactory to Lender evidencing a financial condition of
Borrower that is satisfactory to Lender and subsequent
financial statements from Borrower as required by Lender. For
purposes of this requirement financial statements conforming
to generally accepted accounting principles and that conform
to the requirements of the SEC shall be deemed satisfactory.
(o) Such other information and documents as Lender may
reasonably require.
Satisfaction of items (a), (b), (c), (e) and (g) of this paragraph 5.3 at the
time of the Initial Advance shall constitute satisfaction of such requirements
for all additional Advances to Borrower. Satisfaction of all other items at the
time of the Initial Advance shall constitute satisfaction of such items for
additional Advances, except to the extent that any of such items require
updating in Lender's judgment reasonably exercised.
5.4 Hedging Contract. Borrower shall have purchased an interest rate
cap on terms satisfactory to Lender in Lender's sole discretion at a
cost not to exceed $25,000 which will be paid by Borrower.
5.5 Legal Opinion. Borrower, at its expense, shall have provided Lender
with a written opinion by counsel in form and substance reasonably
acceptable to Lender. Satisfaction of this requirement with respect to
the Initial Advance shall constitute satisfaction for additional
Advances except to the extent such legal opinion requires updating in
Lender's judgment reasonably exercised.
5.6 Representations True. All representations and warranties by
Borrower shall be true and correct in all material respects as of the
Closing Date and all agreements that Borrower is to have performed or
complied with by the date hereof shall have been performed or complied
with.
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5.7 No Event of Default. No Event of Default shall have occurred and be
continuing and no event has occurred and no condition shall have
occurred that, after notice or lapse of time, or both, would constitute
an Event of Default.
5.8 Adverse Change. There shall not have occurred, in the opinion of
Lender, any material adverse change in the business or financial
condition of Borrower or any material tenant or in the Project, or in
any other state of facts submitted to Lender in connection with the
Loan, from that which existed at the time Lender considered the
issuance of this Agreement. The fact of the bankruptcy filing by Edison
Brothers Stores, Inc. and any partial or full rejection of the Edison
Brothers Lease will not be deemed a material adverse change for the
purpose of this Agreement.
SECTION 6. REPRESENTATIONS AND WARRANTIES
Borrower represents and warrants to Lender as follows:
6.1 Recitals and Statements. The recitals in this Agreement are true
and correct.
6.2 Organization and Good Standing. Borrower is duly organized, validly
existing and in good standing under the laws of the state of its
organization and is, to the extent required by law, qualified to do
business and is in good standing in the State of Missouri.
6.3 Power. Borrower has full power and authority to own its properties
and assets and to carry on its business as now being conducted. The
execution, delivery and performance of the Loan Documents has been duly
authorized by all requisite action on the part of Borrower.
6.4 Authority. Borrower is fully authorized and permitted to enter into
this Agreement, to execute any and all documentation required herein,
to borrow the amounts contemplated herein upon the terms set forth
herein and to perform the terms of this Agreement, none of which
conflicts with any provision of any law, rule or regulation applicable
to Borrower. The Loan Documents to which Borrower is a party are valid
and binding legal obligations of Borrower, and each is enforceable in
accordance with its terms, subject to bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to the rights
of creditors generally and general principles of equity.
6.5 Enforceable Liens. The liens, security interests and assignments
created by the Security Documents will, when granted and recorded or
filed, be valid, effective, properly perfected and enforceable liens,
security interests and assignments.
6.6 No Breach. The execution, delivery and performance by Borrower of
the Loan Documents will not result in any breach of the terms,
conditions or provisions of, or constitute a default under, any
material agreement or instrument under which Borrower is a party or is
obligated. Borrower is not in default in the performance or observance
of any covenants, conditions or provisions of any such material
agreement or instrument.
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6.7 No Actions. Except as disclosed to Lender in writing prior to the
date of this Agreement, no actions, suits or proceedings are pending or
to Borrower's knowledge threatened against Borrower that if adversely
determined could reasonably be expected to materially and adversely
affect the repayment of the Loan, the performance by Borrower under
this Agreement or the financial condition, business or operations of
Borrower.
6.8 Licenses. Borrower has obtained and there remain in full force and
effect all material licenses, permits, consents, approvals and
authorizations necessary or appropriate for the management and
operation of the Improvements for their intended purpose that are
obtainable as of the date hereof.
6.9 Financial Statements True. All financial statements, profit and
loss statements, statements as to ownership and other statements or
reports previously or hereafter given to Lender by or on behalf of
Borrower are and shall be true, complete and correct in all material
respects in accordance with GAAP as of the date thereof. There has been
no material adverse change in the financial condition or the results of
the operation of Borrower since the latest financial statements of
Borrower given to Lender.
6.10 Filing of Taxes. Borrower has filed all federal, state and local
tax returns and has paid all of its current obligations before
delinquency, including all federal, state and local taxes and all other
payments required under federal, state or local law.
6.11 Affirmation of Representations and Warranties. Each request by
Borrower for an Advance shall constitute an affirmation on the part of
Borrower that the representations and warranties contained herein are
true and correct in all material respects as of the time of such
request and that the conditions precedent set forth in Section 5 hereof
have been fully satisfied or waived by Lender in writing. All
representations and warranties made herein shall survive the execution
of this Agreement, all Advances and the execution and delivery of all
other documents and instruments in connection with the Loan, so long as
Lender has any commitment to lend to Borrower hereunder and until the
Loan and all indebtedness hereunder have been paid in full and all of
Borrower's obligations hereunder have been fully discharged.
6.12 Year 2000 Compliance. Borrower has (i) initiated a review and
assessment of all areas within its business and operations (including
those affected by suppliers and vendors) that could be adversely
affected by the "Year 2000 Problem" (that is, the risk that computer
applications used by the Borrower (or its suppliers and vendors) may be
unable to recognize and perform properly date-sensitive functions
involving certain dates prior to and any date after December 31, 1999),
(ii) developed a plan and timeline for addressing the Year 2000 Problem
on a timely basis, and (iii) to date, implemented that plan in
accordance with that timetable. Borrower reasonably believes that all
computer applications (including those of its suppliers and vendors)
that are material to its business and operations will on a timely basis
be able to perform properly date-sensitive functions for all dates
before and after January 1, 2000 (that is, "Year 2000 Compliant"),
except to the extent that a failure to do so could not reasonably be
expected to have material adverse effect on Borrower, its businesses or
assets.
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SECTION 7. AFFIRMATIVE COVENANTS
So long as Lender has any commitment to lend to Borrower hereunder and
until the Loan and all other indebtedness hereunder have been paid in full and
all of Borrower's obligations hereunder have been fully discharged:
7.1 Payment of Construction Costs. Borrower shall promptly pay for, or
cause to be paid for, all labor, materials, equipment and fixtures used
in connection with the construction of the Tenant Improvements and all
other costs relating to the Improvements except that Borrower may
contest in good faith the validity or amount thereof provided that
Borrower shall have furnished to Lender upon Lender's request a cash
deposit or other appropriate security in an amount and form
satisfactory to Lender to protect Lender against the creation of any
lien on, or any sale or forfeiture of, any property encumbered by the
Security Documents. Upon the final determination of Borrower's
liability following the adjudication of such contest, Borrower shall
promptly pay or cause to be paid all sums, if any, determined to be
due. Any deposit or security provided by Borrower shall be returned to
Borrower upon the final determination of Borrower's contest and the
payment of the sums, if any, determined to be due.
7.2 [Intentionally Reserved]
7.3 Enforcement of Contracts. Borrower shall use commercially
reasonable efforts to enforce or cause the enforcement of the contracts
for the construction of the Tenant Improvements to ensure that the
contractors are required to promptly and diligently perform all of
their obligations thereunder and in such a manner as to preserve
Lender's security in the Project. No change, amendment or modification
shall be made to such contracts without the prior written consent of
Lender which consent shall not be unreasonably withheld, conditioned or
delayed, except changes, amendments or modifications that are (i) to
implement changes to the Plans and Specifications permitted hereby,
(ii) which do not individually or in the aggregate increase the cost of
any such contract by more than $25,000.00 or (iii) in connection with
Tenant Improvements wholly financed by a Tenant.
7.4 No Other Security Interests. No materials, equipment, fixtures or
any other part of the Improvements or articles of personal property
placed in the Improvements shall be purchased or installed under any
security agreement or other arrangements wherein the seller reserves or
purports to reserve the right to remove or to repossess any such items
or to consider them personal property after their incorporation into
the Improvements; provided the foregoing shall not preclude Borrower
from (i) leasing materials, equipment or fixtures in the ordinary
course of business, provided that annual payments under such leases do
not exceed $10,000.00 in any one calendar year; or (ii) incurring
purchase money indebtedness permitted pursuant to Section 8.4.
7.5 Maintenance of Licenses and Permits. Borrower shall maintain in
full force and effect all rights and licenses necessary to carry on its
business, and all permits, licenses, consents
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and approvals necessary for the construction, maintenance and operation
of the Improvements.
7.6 Compliance with Loan Documents. Borrower shall make all payments of
interest and principal on the Loan as and when due and shall keep and
comply with all terms, conditions and provisions of the Loan Documents.
7.7 [Intentionally Reserved]
7.8 Bank Accounts. Borrower shall maintain all of its Lender accounts
at NationsBank, N/A., or such other bank as Lender may direct from time
to time, which accounts shall be pledged to Lender as additional
security for the Loan.
7.9 Maintenance of Insurance. Borrower shall maintain in full force and
effect at all times all insurance coverage required to be provided
pursuant to Paragraph 5.3(f).
7.10 Payment of Taxes. Borrower shall pay all of its current
obligations before delinquency, including all federal, state and local
taxes and all other payments required under federal, state or local
law, subject to Borrower's right to contest taxes and assessments of
real and personal property as provided in the Deed of Trust.
7.11 Establishment and Maintenance of Tax and Insurance Escrow Account.
Borrower shall establish with Lender an interest bearing deposit
account ("Escrow Account") for the purpose of maintaining a cash
reserve for taxes and insurance in connection with the Real Property,
which account shall be pledged to Lender as further security for the
Loan. Commencing on the first Business Day of the first calendar
quarter after the date hereof, and on the first Business Day of each
October, January, April and July thereafter, Borrower shall deposit
into the Escrow Account the amount set forth in Schedule 1, and shall
make such further deposits as may be required under the Deed of Trust.
Simultaneously with the execution hereof Borrower shall also pay to
Lender for deposit in the Escrow Account the sum of Three Hundred
Thousand Dollars ($300,000.00) being the quarterly deposit that would
have been required had this loan been outstanding on January 1, 1999.
Lender shall make disbursements from such account to Borrower or, at
Lender's option to the taxing authority or the relevant insurance
company, upon presentation satisfactory to Lender of evidence of the
amounts due and payable thereon. Lender shall have no obligation to pay
charges for such taxes or insurance if there are not sufficient funds
in the Escrow Account for such purpose.
7.12 Books and Records; Access. Borrower shall maintain, in a safe
place, proper and accurate books and records relating to its operations
and its business affairs. Lender shall have the right from time to
time, upon prior written notice, to examine, and to make abstracts from
and photocopies of, Borrower's books and records. Lender shall keep any
and all such information as confidential and may not disclose such
information to third parties except to the extent required by law or to
Lender's employees, attorneys, agents, participants, transferees or
assignees or as may be necessary or appropriate to enforce any of
Borrower's obligations under the Loan Documents.
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7.13 Financial Reports. Borrower shall maintain a standard, modern
system of accounting that reflects the application of GAAP or of tax
basis accounting, consistently applied. Borrower shall furnish to
Lender or cause to be furnished to Lender the following in form and
detail reasonably satisfactory to Lender:
(a) Within ninety (90) days after the close of each fiscal
year, financial statements of Borrower, including a balance
sheet, statement of income and expenses and statement of cash
flows that include the results of the financial operation of
the Project, amounts and sources of contingent liabilities, a
reconciliation of changes in equity and liquidity
verification, all in reasonable detail and prepared according
to GAAP or to tax basis accounting, consistently applied. Year
end statements shall be audited by an independent certified
public accountant of Borrower.
(b) Within forty-five (45) days after the end of each quarter,
quarterly unaudited financial statements for the Project for
the previous quarter.
(c) Within forty-five (45) days after the end of each
quarterly accounting period, rent rolls for the Project,
including the name, annual rental amount and lease expiration
date for each Tenant.
(d) Within forty-five (45) days after the end of each
quarterly accounting period, a certificate signed by the
manager of Borrower in the form attached hereto as Exhibit
"E".
(e) When requested by Lender, such further information as
Lender may reasonably request relating to Borrower and/or the
operation of the Project.
(f) Copies of all material filings of Borrower with the
Securities and Exchange Commission, such copies to be
delivered to Lender within thirty (30) days after filing with
the Securities and Exchange Commission.
7.14 Subsequent Actions. Borrower shall immediately inform Lender of
any actions, suits or proceedings involving Borrower that if adversely
determined would materially and adversely affect the repayment of the
Loan, the performance by Borrower under this Agreement, or the
financial condition, business or operations of Borrower.
7.15 Further Assurances. Borrower shall execute and deliver such
additional documents and do such other acts as Lender may reasonably
require in order to effectuate Borrower's obligations with respect to
the Loan without substantively amending any of the Loan Documents.
7.16 Borrower Notices. Borrower shall promptly give notice in writing
to Lender of (i) the occurrence of any Event of Default, (ii) any
change in the name of Borrower, and in the case of a reorganization,
any change in name, identity or corporate structure, (iii) loss through
fire, theft, liability or property damage in excess of $25,000.00, and
(iv) all
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material developments disclosed to Borrower from any source in the
Edison Brothers bankruptcy proceedings which may have a material effect
upon the Edison Brothers Lease.
7.17 Financial Covenants. Until the Loan is repaid in full, Borrower
shall comply with the following:
(a) Permitted Expenses. Borrower shall not expend any income
of the Project of any type other than for (i) Operating
Expenses of the Project, (ii) payments of principal, interest
and other charges with respect to the Debt, (iii) fees and
expenses associated with the organization and operation of
Borrower (such as tax return preparation, fees and expenses of
filings with the Securities and Exchange Commission, asset
management fees and other similar expenses which are not
included in the definition of Operating Expenses), and (iv)
capital expenditures of or benefiting the Project, provided,
however, that after the making of any Operating Deficit
Advance or Capitalized Interest Advance to Borrower pursuant
to the terms of this Agreement, such capital expenditures
(exclusive of Tenant Improvements made pursuant to an Approved
Lease) shall be limited to the amount which is the greater of
(a) Two Hundred Thousand Dollars ($200,000.00) in the
aggregate per any period of twelve (12) consecutive calendar
months commencing on or after the date of such Operating
Deficit Advance or Capitalized Interest Advance or (b) such
other amount as may be approved by Lender in writing.
(b) No Equity Distributions. Borrower shall not make any
distribution to its members other than as payment for services
rendered currently upon arms' length terms and conditions
approved by Lender.
7.18 Leases. Each lease that is to be used in leasing any of the Real
Property shall be subject to Lender's prior written approval which
approval shall not be unreasonably withheld, conditioned or delayed.
Each such lease shall have been entered into by the Borrower in good
faith and at arm's length. Borrower shall assign to Lender in the
Assignment all of its right, title and interest in and to all Leases
and rents relating to the Improvements at the Project and shall execute
and deliver to Lender written assignments thereof in form satisfactory
to Lender. Upon request of Lender, which request shall not be made more
frequently than once during each calendar year unless an Event of
Default has occurred and is continuing, Borrower will use its
commercially reasonable efforts to deliver to Lender individual
estoppel certificates from all Tenants under such Leases certifying:
(a) that the leased premises have been completed to the satisfaction of
that Tenant, (b) that the lease is in full force and effect and there
are no existing defaults to the knowledge of that Tenant, (c) the date
upon which the term of the lease commenced and the date to which
rentals have been paid, (d) that there are no setoffs or counterclaims
against the rent payments and no credits against the rent payments
except as set forth in the Lease, (e) that the Lease has not been
amended or modified and there are no representations, warranties,
understandings or agreements pertaining to the subject matter thereof
other than as expressly stated in the written lease, and (f) that the
Tenant has no knowledge of any prior assignment or pledge of the lease
or of rentals thereunder.
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Anything in the foregoing to the contrary notwithstanding, Lender's
prior approval shall not be required for any Lease of less than 20,000
square feet of rentable space which (i) is in a form substantially
similar to the most current form of Lease used by Borrower which has
been provided to Lender, (ii) provides for rental in an amount not less
than $15.00 per square foot per year, and (iii) will not require
Borrower to finance tenant improvements for such Lease under the Loan.
Lender shall indicate its approval or disapproval of a proposed Lease
within ten (10) Business Days of Borrower's furnishing to Lender of the
proposed form of Lease, a proposed term sheet showing all essential
terms and any substantive changes to the form of Lease, financial
information regarding the Tenant and such other information as Lender
shall promptly and reasonably request with respect to such Lease and
the Tenant. Lender shall use reasonable efforts to provide such
approval or disapproval of such Lease as soon as practicable after it
receives the required information. Lender's failure to respond within
ten (10) Business Days shall be deemed Lender's approval of such
proposed Lease in substantially the form provided to Lender, subject
only to changes specifically stated in the term sheet provided to
Lender and other changes consistent with Borrower's customary leasing
practices. In the event that any business term or other material
substantive provision of any proposed Lease is different from that
previously provided to Lender, Lender shall have an additional ten (10)
Business Days after receipt of such term or provision to disapprove
such Lease. Lender agrees to sign a Subordination, Attornment and
Non-Disturbance Agreement at Borrower's request in form substantially
identical to the form attached hereto as Exhibit "G", upon delivery to
Lender of such form executed by all other parties thereto, with respect
to any approved (or deemed approved) Leases.
7.19 Year 2000 Compliance. Borrower will promptly notify Lender in the
event Borrower discovers or determines that any computer application
(including those of its suppliers and vendors) that is material to its
business and operations will not be Year 2000 compliant on a timely
basis, except to the extent that such failure could not reasonably be
expected to have a material adverse effect on Borrower, its businesses
or assets.
SECTION 8. NEGATIVE COVENANTS
So long as Lender has any commitment to lend to Borrower hereunder and
until the Loan and all other indebtedness hereunder have been paid in full and
all of Borrower's obligations hereunder have been fully discharged, Borrower
shall not, without receiving the prior written consent of Lender:
8.1 Dissolution or Liquidation. Dissolve or liquidate, or merge or
consolidate with or into any other entity.
8.2 Due on Sale or Encumbrance. Except as provided in Section 7.4 and
8.5, assign, transfer or convey any of its right, title and interest in
any property whether real or personal encumbered by the Security
Documents; create or suffer to be created any mortgage, pledge,
security interest, encumbrance or other lien on any property encumbered
by the Security Documents (other than liens arising from work the cost
of which is being properly contested in accordance with the terms
hereof); or create or suffer
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to be created any mortgage, pledge, security interest, encumbrance or
other lien on any other property or assets which it now owns or
hereafter acquires except in consideration of the contemporaneous
receipt by it of benefits equal or greater in value to the lien
created. Any change or transfer or more than fifty percent (50%) in the
aggregate of the total membership interests in Borrower to a single
member or person (within the meaning of Section 13(d)(3) of the
Securities Exchange Act of 1934) shall be deemed a transfer of property
in violation of this Section.
8.3 Change in Accounting Period. Change the times of commencement or
termination of its fiscal year or other accounting periods; or change
its methods of accounting other than to conform to GAAP or to tax basis
accounting, consistently applied.
8.4 No Additional Debt. During the term of the Loan, without Lender's
prior written consent, which may be withheld in Lender's sole and
absolute discretion, incur any additional debt with respect to, or in
connection with its ownership and operation of the Project (including
without limitation any contingent or guarantor liability), except as
provided in Section 7.4 and except for (i) short term accounts payable
incurred in connection with the operation of the Project, or (ii)
purchase money borrowing for equipment, but not fixtures for the
Project, provided the aggregate amount of all such borrowings shall not
exceed One Hundred Thousand Dollars ($100,000.00) at any one time
outstanding, and provided further that no lender shall have a security
interest in any collateral securing the Loan other than a security
interest in the equipment so purchased.
8.5 Disposition of Personal Property. Borrower shall, have the right to
sell any items of tangible personal property provided that in
connection with any sale of an item acquired at a cost in excess of Ten
Thousand and no/100 Dollars ($10,000.00), Borrower shall simultaneously
with or prior to such sale, either (i) replace said item with an item
of a value substantially equal to that of the item being sold and which
replacement item shall be free from any title retention or security
interest or other encumbrance except to the extent permitted pursuant
to Paragraph 8.4 above; or (ii) deliver any net cash proceeds received
from such disposition promptly to Lender to be applied to the principal
balance of the Note without charge for prepayment.
SECTION 9. WAIVER
9.1 Delay or Omission. No delay or omission by Lender in exercising any
right, power or remedy hereunder, and no indulgence given to Borrower,
with respect to any term, condition or provision set forth herein,
shall impair any right, power or remedy of Lender under this Agreement,
or be construed as a waiver by Lender of, or acquiescence in, any Event
of Default. Likewise, no such delay, omission or indulgence by Lender
shall be construed as a variation or waiver of any of the terms,
conditions or provisions of this Agreement. Any actual waiver by Lender
of any Event of Default shall not be a waiver of any other prior or
subsequent Event of Default or of the same Event of Default after
notice to Borrower demanding strict performance.
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SECTION 10. DEFAULT
10.1 Event of Default. The occurrence of any of the following events or
conditions shall constitute an Event of Default under this Agreement
and with respect to the Loan:
(a) Any failure to pay any principal or interest under the
Note when the same shall become due and payable and such
failure continues for ten (10) days after notice thereof to
Borrower, or the failure to pay any other sum due under the
Loan Documents when the same shall become due and payable and
such failure continues for ten (10) days after notice thereof
to Borrower. No notice, however, shall be required after
maturity of the Note.
(b) Any failure to perform or observe any of the covenants,
conditions or provisions of the Loan Documents (other than a
failure described in one or more of the other provisions of
this Paragraph 10.1) and such failure either cannot be
remedied or, if it can be remedied, it continues unremedied
for a period of thirty (30) days after notice thereof to
Borrower; provided that if such failure is not of a nature
such that can reasonably be cured within 30 days, so long as
Borrower is diligently pursuing such cure in good faith, such
failure shall not constitute an Event of Default.
(c) Any warranty, representation or statement contained in the
Loan Documents, or made or furnished to Lender by or on behalf
of Borrower, that shall be or shall prove to have been false
when made or furnished in any material respect.
(d) The filing by Borrower (or against Borrower to which
Borrower acquiesces or that is not dismissed within sixty (60)
days after the filing thereof) of any proceeding under the
federal bankruptcy laws now or hereafter existing or any other
similar statute now or hereafter in effect; the entry of an
order for relief under such laws with respect to Borrower in a
proceeding in which Borrower is the debtor; or the appointment
of a receiver, trustee, custodian or conservator of all or any
part of the assets of Borrower.
(e) The insolvency of Borrower; or the execution by Borrower
of an assignment for the benefit of creditors; or the
convening by Borrower of a meeting of its creditors, or any
class thereof, for purposes of effecting a moratorium upon or
extension or composition of its debts; or if Borrower is
generally not paying its debts as they mature.
(f) The admission in writing by Borrower that it is unable to
pay its debts as they mature or that it is generally not
paying its debts as they mature.
(g) The liquidation, termination or dissolution of Borrower.
(h) Any levy or execution upon, or judicial seizure of, any
portion of any collateral or security for the Loan.
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(i) Any attachment or garnishment of, or the existence or
filing of any lien or encumbrance, other than any lien or
encumbrance permitted by the Deed of Trust, against, any
portion of any collateral or security for the Loan, that is
not removed or released within thirty (30) days after Borrower
obtains actual knowledge of its creation, not to exceed
forty-five (45) days after its creation.
(j) The institution of any legal action or proceedings to
enforce any lien or encumbrance upon any portion of any
collateral or security for the Loan, that is not bonded or
insured over to Lender's reasonable satisfaction or dismissed
within thirty (30) days after its institution.
(k) A transfer of the Project or any part thereof in violation
of Section 8.2 hereof.
10.2 Remedies. Upon the occurrence of any Event of Default and at any
time while such Event of Default is continuing, Lender may do one or
more of the following:
(a) Cease making Advances without notice;
(b) Declare the Loan and all other indebtedness of Borrower
hereunder immediately due and payable, without notice or
demand;
(c) Proceed to protect and enforce its rights and remedies
under all Loan Documents;
(d) Take over and complete construction of any Tenant
Improvements by or through any agent, contractor or
subcontractor of its selection, and make Advances in payment
of the costs, expenses, fees, reasonable attorneys' fees and
other charges incurred in connection with such taking over and
completion, together with reasonable allowances for
supervision; and
(e) Avail itself of any other relief to which Lender may be
legally or equitably entitled.
SECTION 11. ACTION UPON AGREEMENT
11.1 No Third Party Beneficiaries. This Agreement is made for the sole
protection and benefit of the parties hereto and no other person or
organization shall have any right of action hereon.
11.2 Integration. The Loan Documents embody the entire Agreement of the
parties with regard to the subject matter hereof. There are no
representations, promises, warranties, understandings or agreements
expressed or implied, oral or otherwise, in relation thereto, except
those expressly referred to or set forth therein. Borrower acknowledges
that its execution and delivery of this Agreement is its free and
voluntary act and deed, and that said execution and delivery have not
been induced by, nor done in reliance upon, any representations,
promises, warranties, understandings or agreements made by Lender, its
agents, officers, employees or representatives.
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11.3 Modifications. No promise, representation, warranty or agreement
made subsequent to the execution and delivery of this Agreement by
either party hereto, and no revocation, partial or otherwise, or
change, amendment or addition to, or alteration or modification of,
this Agreement shall be valid unless the same shall be in writing
signed by all parties hereto.
11.4 No Joint Venture. Lender and Borrower each have separate and
independent rights and obligations under this Agreement. Nothing
contained herein shall be construed as creating, forming or
constituting any partnership, joint venture, merger or consolidation of
Borrower and Lender for any purpose or in any respect.
SECTION 12. GENERAL
12.1 Survival. This Agreement shall survive the making of the Loan and
shall continue so long as any part of the Loan, or any extension or
renewal thereof, remains outstanding.
12.2 Discretionary Rights. All rights, powers and remedies granted
Lender herein, or otherwise available to Lender, are for the sole
benefit and protection of Lender, and Lender may exercise any such
right, power or remedy at its option and in its sole and absolute
discretion without any obligation to do so except to the extent Lender
has expressly agreed herein that its consent or approval will not be
unreasonably withheld or that its discretion will be exercised in a
reasonable manner. In addition, if, under the terms hereof, Lender is
given two or more alternative courses of action, Lender may elect any
alternative or combination of alternatives, at its option and in its
sole and absolute discretion except to the extent Lender has agreed
that its consent or approval will not be unreasonably withheld or that
its discretion will be exercised in a reasonable manner. All amounts
paid, suffered or incurred by Lender in exercising any authority
granted herein, including reasonable attorneys' fees, shall be secured
by the Security Documents, shall bear interest at the highest rate
payable on the Loan until paid, and shall be due and payable by
Borrower to Lender immediately without demand.
12.3 Indemnity. Borrower shall indemnify and hold Lender harmless from
and against all claims, costs, expenses, actions, suits, proceedings,
losses, damages and liabilities of any kind whatsoever, including but
not limited to reasonable attorneys' fees and expenses, arising out of
any matter relating, directly or indirectly, to the Loan, to the
ownership, development, construction, or sale of the Project, whether
resulting from internal disputes of Borrower, or whether involving
other third persons or entities, or out of any other matter whatsoever
related to any of the Loan Documents, or any property encumbered
thereby, but excluding any claim or liability which arises as the
result of the gross negligence or willful misconduct of Lender, its
officers, employees or agents. This indemnity provision shall continue
in full force and effect and shall survive not only the making of the
Loan and the Advances but shall also survive the repayment of the Loan
and the performance of all of Borrower's other obligations hereunder.
12.4 Construction. The provisions hereof shall apply to the parties
according to the context thereof and without regard to the number or
gender of words or expressions used.
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12.5 Time of Essence. Time is expressly made of the essence of this
Agreement.
12.6 Notices. All notices required or permitted to be given hereunder
shall be in writing and may be given in person or by United States
mail, by delivery service or by electronic transmission. Any notice
directed to a party to this Agreement shall become effective upon the
earliest of the following: (i) actual receipt by that party; (ii)
delivery to the designated address of that party, addressed to that
party; or (iii) if given by certified or registered United States mail,
seventy-two (72) hours after deposit with the United States Postal
Service, postage prepaid, addressed to that party at its designated
address. The designated address of a party shall be the address of that
party shown at the beginning of this Agreement or such other address as
that party, from time to time, may specify by notice to the other
parties. Notices to Borrower shall also include a copy to:
EBS Building, L.L.C.
PricewaterhouseCoopers, LLP
000 Xxxxxx Xxxxxx, Xxxxx 0000
Xx. Xxxxx, Xxxxxxxx 00000
Attn: Xxxxx X. Xxxxxx, Partner
and
Xxxxx Xxxx LLP
Xxx Xxxxxxxxxxxx Xxxxxx
Xx. Xxxxx, XX 00000
Attn: Xxxxxx X. Xxxxxx III, Esq.
Notices to Lender shall include a copy to each of:
FinPro, L.L.C.
0000 Xxxxxx Xxxxxx
Xxxxx 000
Xxxxxxxx, Xxxxxxxx 00000
Xxxxxxxxxxxx Xxxx & Xxxxxxxxx
Xxx Xxxxxxxxxxxx Xxxxxx, Xxxxx 0000
Xx. Xxxxx, XX 00000
Attn: Xxxxxx X. Xxxxxxxx
Notices to Servicing Agent shall be delivered to:
NationsBank, N.A.
0000 Xxxxxxx Xxxx.
Xx. Xxxxx XX 00000
Attn: Xxxx Xxxxx
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12.7 Payment of Costs. Borrower shall pay upon demand all out of pocket
costs and expenses arising from the preparation of the Loan Documents,
the closing of the Loan, the making of Advances and the monitoring and
administration of the Loan, including but not limited to title
insurance premiums, other title company charges, recording and filing
fees, costs of Uniform Commercial Code searches, Lender's reasonable
outside attorneys' fees, Lender's inspection fees, appraisal and
appraisal review fees, any intangible or recording taxes and any other
charges that may be imposed on Lender as a direct result of this
transaction.
12.8 Choice of Law. This Agreement shall be governed by and construed
according to the laws of the State of Missouri, without giving effect
to conflict of laws principles.
12.9 Successors. Except as otherwise provided herein, this Agreement
shall be binding upon, and shall inure to the benefit of, the parties
hereto and their successors and assigns.
12.10 Headings. The headings or captions of sections and paragraphs in
this Agreement are for reference only, do not define or limit the
provisions of such sections or paragraphs, and shall not affect the
interpretation of this Agreement.
12.11 Participations. Lender, at any time, shall have the right to
sell, assign, transfer, negotiate or grant participation interests in
the Loan and in any documents and instruments executed in connection
herewith; provided that Borrower shall have no obligation with respect
to such sale, assignment or transfer until Borrower has received notice
thereof from Lender. Borrower hereby acknowledges and agrees that any
such disposition (other than a participation) shall give rise to a
direct obligation of Borrower to each such assignee. Lender is
authorized to furnish to any participant or prospective participant any
information or document that Lender may have or obtain regarding the
Loan or Borrower, provided such party signs a confidentiality agreement
reasonably satisfactory to Borrower. In addition to the foregoing, the
Security Documents and the Note shall, at any time until the same shall
be fully paid and satisfied, at the sole election of Lender, be split
or divided into two or more Notes and two or more Security Documents,
each of which shall cover all or a portion of the Project to be more
particularly described therein. To that end Borrower, upon written
request of Lender, shall execute, acknowledge and deliver to Lender
and/or its designee or designees substitute Notes and Security
Documents in such principal amounts aggregating not more than the then
unpaid principal amount secured by the Deed of Trust and containing
terms, provisions and clauses no less favorable to Borrower than those
contained herein and in the Note and such other documents and
instruments as may be required by Lender to effect the splitting of the
Note and the Security Documents.
12.12 Counterparts. This Agreement may be executed in counterparts, all
of which executed counterparts shall together constitute a single
document. Signature pages may be detached from the counterparts and
attached to a single copy of this Agreement to physically form one
document.
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12.13 ORAL MODIFICATIONS. ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY,
EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT
INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE. TO
PROTECT YOU (BORROWER) AND US (LENDER) FROM MISUNDERSTANDING OR
DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE
CONTAINED IN THIS WRITING AND THE OTHER LOAN DOCUMENTS, WHICH IS THE
COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS
WE MAY LATER AGREE IN WRITING TO MODIFY IT.
12.14 Incorporation by Reference. All schedules and exhibits attached
hereto are incorporated herein and made a part hereof by this
reference.
12.15 Business Loan. The proceeds of this Loan will be used for the
purposes specified in Section 408.035 of the Missouri Revised Statutes
and the indebtedness secured thereby constitutes both a business loan
and a real estate loan which comes within the purview of Section
408.035 X.X.Xx.
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IN WITNESS WHEREOF, these presents are executed as of the date first
indicated above.
EBS BUILDING, L.L.C., a Delaware limited liability company
By: PRICEWATERHOUSECOOPERS LLP,
MANAGER
By: /s/ Xxxxxxx X. Xxxxxxx
------------------------------------------------------
Xxxxxxx X. Xxxxxxx, Director
BORROWER
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IN WITNESS WHEREOF, these presents are executed as of the date first
indicated above.
FINPRO, L.L.C., a Missouri limited liability company
By: /s/ E. Xxxxxxx Xxxxxxx
------------------------------------------------------
E. Xxxxxxx Xxxxxxx, Manager
[EBS LOAN AGREEMENT]
LENDER
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LIST OF EXHIBITS
Schedule 1 Schedule of Terms
Exhibit A Legal Description of Project
Exhibit B Form of Note
Exhibit C-1 Conditions and Limitations for Subsequent Advances
(Construction-Related Advances)
Exhibit C-2 Conditions and Limitations for Subsequent Advances (Lease-
Related Advances)
Exhibit C-3 Conditions and Limitations for Subsequent Advances
(Operating Deficit and Interest Reserve Advances)
Exhibit D Survey Requirements
Exhibit E Quarterly Compliance Certificate
Exhibit F-1 Form of Request for Disbursement (Construction-Related
Advances)
Exhibit F-2 Form of Request for Disbursement (Lease-Related Advances)
Exhibit G Form of Subordination, Attornment and Non-Disturbance
Agreement
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SCHEDULE 1
SCHEDULE OF TERMS
1.2A Commitment Fee: One Hundred Eighty Thousand Dollars ($180,000.00),
Twenty-Five Thousand Dollars ($25,000.00) of which has been previously
paid by Borrower.
1.2B Debt Redemption Fee: Sixty Thousand Dollars ($60,000.00) payable
semi-annually in arrears [for a maximum fee of Two Hundred Forty
Thousand Dollars ($240,000.00)]. The first semi-annual payment shall be
prepaid at Loan Closing. If the Note is prepaid prior to maturity, this
fee shall be prorated on a monthly basis for any payment period of less
than six (6) months (exclusive of the first semi-annual payment which
shall not be prorated regardless of when the Loan is prepaid).
1.2C Servicing and Administration Fee. Sixty Thousand Dollars ($60,000.00)
per annum, in advance, payable by Borrower at Loan Closing, and again
one (1) year after the date hereof. If the Note is prepaid prior to
maturity, this fee shall be prorated on a monthly basis and the
overpayment thereof shall be refunded to Borrower (or credited against
the Note payoff amount).
1.2D Unused Commitment Fee: 0.25% per annum of the amount by which
$12,000,000.00 exceeds the total Advances made to Borrower, to be
calculated based upon the average daily ratio of the unfunded portion
of the Loan to the Maximum Loan Amount of $12,000,000.00 based upon an
actual/360-day year basis and paid quarterly in arrears on the first
day of the following calendar month commencing September 1, 1999.
1.2E Maximum Lease Advance Amount: An amount for any Lease calculated as
follows subject to adjustment by Lender as it deems reasonably
necessary to address any changes in the rental terms over the life of
the relevant Lease:
(a) The product of (i)(x) the weighted average annual rental rate under
the lease, calculated on a per square foot basis, minus (y) the then
current annual Operating Expenses of the Project, calculated on a per
square foot basis, minus (z) one year's amortization of tenant
improvement costs and leasing commissions paid by Borrower in
connection with such lease as amortized over the initial term of the
lease, calculated on a per square foot basis, times (ii) the number of
rentable square feet leased to the tenant pursuant to such lease;
minus
(b) The reserve requirement, calculated as the product of $0.20 times
the number of rentable square feet leased to the tenant pursuant to
such lease;
and dividing (a) minus (b) by
(c) Ten percent (10%),
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such that the Maximum Lease Advance Amount = (a-b)/(c).
For the purpose of the foregoing calculation, Operating Expenses shall
not include: (i) fees and expenses payable by the Borrower to the
manager of the Borrower; (ii) asset management fees; (iii) tax return
preparation fees; (iv) fees and expenses associated with filings by the
Borrower with the Securities and Exchange Commission; and (v) other
similar expenses which relate to the operation of the Borrower
exclusive of the operation and management of the Project.
OR.
Twenty-Five Dollars ($25.00) per rentable square foot whichever is less;
OR
Such greater amount as Lender may reasonably determine.
Example:
Assumptions:
- 5,000 square feet of leased space
- $15.00 per square foot per annum gross rent
- $7.00 per square foot per annum expenses
- Calculation of Maximum Lease Advance Amount
(a) 5,000 x ($15.00-$7.00) = $40,000.00
(b) $40,000.00 - (5,000 x $0.20) = $39,000.00
(c) $39,000.00 / .10 = $390,000.00 Maximum Lease Advance
Amount
7.11 Escrow Account. Quarterly required deposit amounts in the amount of
$150,000.00.
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EXHIBIT "A"
REAL PROPERTY
Legal Description of Property:
All that real property located in the City of St. Louis, State of Missouri, more
particularly described as follows:
Parcel No. 1: A tract of land being Book 119, part of Block 118, that part of
Xx. Xxxxxxx Xxxxxx, 00 feet wide, vacated by Ordinance No. 58574 and that part
of a 7.5 foot wide alley in Block 118 vacated by Ordinance No. 58533, in the
City of St. Louis, Missouri and being further described as follows: Beginning at
a point on the East line of Sixth Street, 60 feet wide, at its intersection with
the South line of vacated Xx. Xxxxxxx Xxxxxx, 00 feet wide, said point being the
Northwest corner of Block 118, thence North 1 degree 54 minutes 12 seconds East,
49.93 feet across vacated Xx. Xxxxxxx Xxxxxx to the Southwest corner of Block
119; thence along the East line of Sixth Street, North 0 degrees 09 minutes 53
seconds West, 150.46 feet to its intersection with the South line of Washington
Avenue, 80 feet wide, said point being the Northwest corner of Block 119; thence
along the South line of Washington Avenue, North 89 degrees 54 minutes 07
seconds East, 270.40 feet to its intersection with the West line of Broadway, 80
feet wide, said point being the Northeast corner of Block 119; thence along the
West line of Broadway, South 0 degrees 11 minutes 45 seconds East, 149.47 feet
to its intersection with the North line of vacated St. Xxxxxxx Street, said
point being the Southeast corner of Book 119; thence South 2 degrees 26 minutes
11 seconds West, 50.14 feet across vacated Xx. Xxxxxxx Xxxxxx to the Northeast
corner of Block 118; thence continuing along the West line of Broadway, South 2
degrees 33 minutes 22 seconds West, 13.64 feet to a point on the East line of
Block 118; thence leaving said point and running North 87 degrees 22 minutes 23
seconds West 269.68 feet to the point of beginning according to survey by The
Xxxxxxx Engineering Company dated February, 1998.
Parcel No. 2: A tract of land being part of Block 118 together with the vacated
North and South Alley and portions of the following vacated streets, Broadway,
Locust Street and Sixth Street, in the City of St. Louis, Missouri, and
described as follows: Beginning at a point on the East line of Sixth Street, 60
feet wide at its intersection with the South line of former Xx. Xxxxxxx Xxxxxx,
00 feet wide, as vacated by Ordinance No. 58574, said point being the Northwest
corner of City Block 118 and the Westernmost corner of property conveyed to
Edison Brothers Redevelopment Corporation by deed recorded in Book 338M page 830
of the St. Louis City Records; thence leaving said point and running along the
line of said Edison Brothers Property, South 87 degrees 22 minutes 23 seconds
East, 269.68 feet to a point on the Eastern line of City Block 118, thence along
said Xxxxxxx Xxxxx xxxx, Xxxxx 0 degrees 33 minutes 22 seconds East, 2.00 feet
to a point on the North line of that portion of Broadway as vacated by Ordinance
No. 58656; thence along the North line of said vacated area South 87 degrees 22
minutes 23 seconds East, 13.33 feet to the Northeast corner thereof; thence
along the Eastern line of the portion of Broadway, as vacated, South 2 degrees
33 minutes 22 seconds West, 275.33 feet to an angle point therein;
A-1
34
thence South 50 degrees 50 minutes 47 seconds West, 1797 feet to a point on the
South line of that portion of Locust Street as vacated by Ordinance No. 58656;
thence along the South line of said vacated area, North 87 degrees 22 minutes 23
seconds West, 268.51 feet to an angle point therein; thence North 39 degrees 14
minutes 03 seconds West, 20.11 feet to a point on the Western line of that
portion of Sixth Street, as vacated by Ordinance No. 58656; thence along the
West line of said vacated area, North 2 degrees 37 minutes 07 seconds East,
271.67 feet to the Northwest corner thereof; thence along the North line of said
vacated portion of Sixth Street South 87 degrees 22 minutes 23 seconds East,
12.0 feet to a point on the East line of Sixth Street; thence along xxxx xxxxxx
xxxx, Xxxxx 0 degrees 37 minutes 07 seconds West 1.33 feet to the point of
beginning, according to survey executed by Xxxxxxx Engineering Company.
A-2
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EXHIBIT "B"
FORM OF NOTE
B-1
36
EXHIBIT "C-1"
CONDITIONS AND LIMITATIONS FOR SUBSEQUENT ADVANCES
(CONSTRUCTION-RELATED ADVANCES)
1. Lender Approval of Lease. Prior to the commencement
of construction of any Tenant Improvements, any part of
the construction of which is to be financed with any
Subsequent Advance, Borrower shall submit to Lender for
approval (a) a Lease for the premises on which any
Tenant Improvements are to be constructed (to the extent
not previously approved), (b) the Budget for the Tenant
Improvements, (c) the Contract Documents for the Tenant
Improvements and (d) all plans and specifications for
the Tenant Improvements. Lender shall be under no
obligation to make any Subsequent Advance until Lender
has approved such Lease (including, without limitation,
the identity and financial condition of the Tenant) or
such lease is deemed approved, and until Lender has
approved the Budget, Contract Documents and plans and
specifications, in Lender's discretion, not to be
unreasonably withheld conditioned or delayed.
2. Construction of Tenant Improvements. Borrower shall
(i) construct or, if the Tenant is obligated to
construct Tenant Improvements under the Lease, cause the
Tenant to construct the Tenant Improvements in good and
workmanlike manner and substantially in accordance with
the Contract Documents, (ii) commence, or cause to be
commenced, construction promptly as required under the
related Approved Lease, and (iii) once construction of
the Tenant Improvements has commenced, pursue or cause
to be pursued such construction diligently to completion
and complete such construction substantially in
accordance with the relevant Construction Schedule
subject to force majeure. Borrower shall construct or
cause to be constructed such Tenant Improvements in
accordance with all applicable laws, rules and
regulations of appropriate governmental authorities, so
as not to encroach upon any easement, right-of-way or
land of others and so as not to violate any setback
lines, applicable public or private use restrictions or
other restrictions or regulations.
3. Subsequent Advance Procedures and Request for
Disbursement.
(a) If Borrower is obligated to construct the
Tenant Improvements under any Lease or finance the
construction thereof, Borrower shall prepare and
submit to Lender a
C-1
37
Request for Disbursement for each Subsequent
Advance with regard to such Tenant Improvements,
but no more often than once per month. No Request
for Disbursement, except the final Request for
Disbursement with respect to the Tenant
Improvements for any Lease, shall be for an amount
less than $200,000.00 except to the extent the
aggregate cost for such improvements is less than
$200,000.00, in which event Borrower may request
such lesser amount. Each Request for Disbursement
shall be delivered to Lender not less than ten (10)
Business Days prior to the requested Subsequent
Advance Date and shall be accompanied by the
following:
(1) all information and documentation required
by this Agreement;
(2) evidence that all conditions of this
Agreement required to be satisfied prior to
such Subsequent Advance have been satisfied or
waived; and
(3) such additional information, affidavits,
certificates and other documents as may be
reasonably required by Lender for making the
Subsequent Advance; provided, however, that
lien waivers with respect to payments to
contractors to be financed with the proceeds
of such Advance may be conditional lien
waivers.
Within seven (7) Business Days of Lender's receipt of the Request for
Disbursement, Lender will approve or disapprove the Request for Disbursement.
Lender will review and consider approval of all Requests for Disbursement
submitted by Borrower in good faith. In the event of disapproval, Lender will
also promptly notify Borrower of such disapproval and the basis therefor by
telephone (confirmed in writing). If the Request for Disbursement is approved by
Lender, Lender will pay the amount requested in such Request for Disbursement to
Borrower, or during the continuance of an Event of Default, directly to the
contractors and subcontractors to be paid under such Request for Disbursement,
less the applicable Retainage, on or before the requested Subsequent Advance
Date in accordance with the terms and conditions of this Agreement. If the
Request for Disbursement is not approved in its entirety, Lender shall disburse
approved amounts, but shall not be obligated to disburse any disapproved portion
of the Request for Disbursement until resolution of each basis for disapproval
to the satisfaction of Lender, although Lender may, in its sole discretion,
disburse all or any portion of the requested amount prior to such resolution.
Within ten (10) Business Days of the resolution of each basis for disapproval to
the reasonable satisfaction of Lender, Lender shall disburse the remaining
portion of the requested Subsequent Advance.
C-2
38
(b) No Subsequent Advances shall be approved for
materials purchased or to be purchased but not yet
installed or incorporated into the Tenant
Improvements.
(c) Lender may withhold for its own benefit 10% of
the Hard Costs of each approved Subsequent Advance
(the "Retainage"). The Retainage will be disbursed
upon substantial completion of the Tenant
Improvements to the extent the contractors and
subcontractors are then entitled to such amount
under the construction contracts. In Lender's
reasonable discretion, at Borrower's request, the
Retainage may be reduced to an amount less than 10%
of Hard Costs, provided that Lender's agreement to
such reduction in any one case shall not be
construed to require Lender to so consent in any
other case.
4. Additional Conditions Precedent to Subsequent
Advances. The obligations of Lender hereunder to approve
and make each Subsequent Advance subject to this Exhibit
C-1 shall be subject to the following conditions
precedent:
(i) Request for Disbursement. Requests
for Subsequent Advances shall be
accompanied by supporting documentation,
the adequacy and completeness of which
shall be reasonably approved by Lender,
including, without limitation, a list
certified by general contractor or
Borrower of payees and amounts to be paid
to each payee in connection with such
Request for Disbursement, invoices, lien
waivers for the prior draw, a schedule in
spreadsheet form of all costs incurred to
date by Borrower with respect to the
Approved Lease broken down on a line item
basis and compared with the related
amounts in the approved Budget for such
Lease, affidavits, indemnity agreements
and such other agreements, instruments,
documents and certificates as may be
reasonably required by Lender, including,
without limitation, all such items
related to Borrower's expenditure of the
Required Equity with respect to the
related Subsequent Advance. If work is
not performed by Borrower, the
certificates of
C-3
39
Borrower regarding the foregoing may be
based on Borrower's reasonable inquiry.
(ii) Architect's Certificate. If required
by Lender, Lender shall have received
such certificates from Borrower's
Architect, if Borrower's Architect is
performing inspections, certifying that
all work for which an Advance is being
requested by Borrower has been performed
in accordance with the Approved Plans and
Specifications and applicable law, the
amount of the Advance requested
represents work in place based on on-site
observations and the data comprising the
Draw Request, the work has progressed as
indicated and the applicable contractor
is entitled to payment of the amount
certified.
(iii) No Events of Default. As of the
date of the Request for Disbursement and
the date of the Subsequent Advance, there
shall have been no Event of Default, and
no event shall exist which by notice,
passage of time or both would constitute
an Event of Default under this Agreement.
(iv) Notices, Applications and Filings.
All notices, applications and filings
required by any governmental authority in
connection with the related Tenant
Improvements shall have been duly filed.
(v) Certifications and Governmental
Approvals. Evidence satisfactory to
Lender of Borrower's receipt of all
required governmental certifications and
approvals in connection with the related
Tenant Improvements.
(vi) Other Conditions. To the extent
applicable, Lender shall have received
any and all affidavits, indemnity
agreements, lien waivers, certificates
and other documents that may be
reasonably required by Lender, including,
without limitation, an affidavit of
general contractor as to the payment of
all
C-4
40
contractors, subcontractors, suppliers,
materialmen and vendors entitled thereto
in connection with the related Tenant
Improvements; provided, however, that
lien waivers with respect to payments to
contractors to be financed with the
proceeds of such Advance may be
conditional lien waivers.
5. Special Conditions for Final Advance. In addition to
the requirements set forth in the preceding Paragraph,
the obligation of Lender to make the final Advance with
respect to Tenant Improvements financed by Borrower for
any particular Lease is also conditioned upon the
receipt by Lender of the following:
(i) Certificates of Occupancy. Evidence
satisfactory to Lender of the issuance by
all appropriate governmental authorities
of final certificates of use and
occupancy of the related Tenant
Improvements, to the extent required
under applicable law.
(ii) Completion Certificates. A
certificate to Lender by Borrower
certifying (i) a final certificate of use
and occupancy of the Tenant Improvements
has been issued; and (ii) covering such
other matters as Lender may reasonably
require. If the work is not to be
performed by Borrower, the certificates
of Borrower regarding the foregoing may
be based upon Borrower's reasonable
inquiry.
(iii) Borrower's Affidavit; Borrower's
Certification.
(A) An affidavit of Borrower stating
that each person providing any
material or performing any work in
connection with the premises has
been (or if applicable, will be,
with the proceeds of and immediately
following receipt by Borrower of
such final Loan Advance) paid in
full or bonded (or funds have been
or will be, from the proceeds of the
Final
C-5
41
Advance, reserved therefor) to the
satisfaction of Lender, and that all
withholding taxes have been paid and
lien waivers have been (or if
applicable, will be, with the
proceeds of and immediately
following receipt by Borrower of
such final Advance) obtained from
all contractors, material
subcontractors and material
suppliers who have performed work or
supplied materials in connection
with the construction of the Tenant
Improvements and who have lien
rights, and covering such other
matters as Lender may reasonably
require. If the work is not to be
performed by Borrower, the affidavit
of Borrower regarding the foregoing
may be based upon Borrower's
reasonable inquiry.
(B) A certificate from Borrower to
Lender stating that (a) the Tenant
Improvements have been completed
substantially in accordance with the
Contract Documents subject to
customary punch-list items, (b)
Borrower and the Tenant have
accepted the Tenant Improvements as
constructed, and (c) if applicable,
upon delivery by Lender of the final
Loan Advance to those persons and/or
entities described in the Request
for Disbursement with respect to
such Advance, Lender shall have
satisfied all of its obligations
under this Agreement to disburse
Advances under the Loan with respect
to such Lease and, without affecting
Borrower's continuing
representations, warranties,
covenants, agreements and
obligations hereunder, Lender shall
have no further duties or
obligations under this Agreement to
C-6
42
disburse Advances with respect to
such Lease. If the work is not to be
performed by Borrower, the affidavit
of Borrower regarding the foregoing
may be based upon Borrower's
reasonable inquiry.
(C) Upon reasonable request by
Lender, copies of all documents,
instruments and agreements and all
insurance policies and certificates
required to be delivered pursuant to
any Contract Document together with
any other evidence reasonably
required by Lender that the Tenant
Improvements have been substantially
completed in accordance with the
Contract Documents in compliance
with all Requirements of
Governmental Authority and free of
all liens.
6. Method of Subsequent Advance. Any Subsequent Advance
made by Lender, or so much thereof as Lender may
consider proper, may be disbursed at Lender's option to
Borrower or its order or, at Lender's election, in the
case of Tenant Improvements to be constructed by
Borrower under any Lease, after an Event of Default,
directly to the applicable general contractor, or to the
persons furnishing labor, materials and/or services in
connection with the Improvements. Lender shall have no
obligation to see that the Advances made by it to
Borrower or any designee of Borrower are actually used
by that party to pay for labor and materials furnished
for construction of the Tenant Improvements. Borrower
acknowledges that this determination is its
responsibility, and Borrower assumes all risks in
connection with any Advance made pursuant to this
paragraph.
7. Withholding Advances. Lender shall have no obligation
to require and/or obtain lien waivers or receipts, and,
although Lender may require presentation to it of lien
waivers and/or receipts, Lender shall have no
responsibility for the validity thereof nor for the
correctness of the amounts indicated thereon. No Advance
by Lender shall constitute approval of any certification
or relieve any person making such certification of
responsibility therefor.
8. Change Orders; Payment of Additional Costs; In
Balance.
C-7
43
(i) All Change Orders which individually
or in the aggregate for Tenant
Improvements, which are to be paid for by
Borrower under any Lease exceed
$25,000.00 are subject to the prior
consent of Lender not to be unreasonably
withheld. Lender shall have the right to
impose a reasonable fee for its review of
Change Orders, which fee shall be based
on the nature of the requested change. At
the time Borrower requests Lender's
consent to a Change Order, Borrower must
also notify Lender whether Borrower
intends to pay for all or a portion of
the additional costs resulting from such
Change Order, if any, or desires that
Lender fund all or a portion of such
additional costs through Advances. Lender
shall have the right, but not the
obligation, in its sole discretion, to
fund all or a portion of amounts required
to complete the Tenant Improvements in
excess of the Buildout Price due to
Change Orders. If Lender elects to fund
all or a portion of such excess amounts,
such amounts funded will be advanced as
Subsequent Advances in accordance with
this Agreement and included in the
Buildout Price for purposes of
calculating the amount of the Loan. If
Lender does not elect to fund all or a
portion of such excess amounts, Borrower
shall immediately deposit funds with
Lender equal to the portion of the excess
amounts Lender will not fund, and Lender
shall disburse such deposited funds
toward payment of the Buildout Price
prior to the Advance of any further funds
under the Loan, subject to the
satisfaction of the requirements for
making Subsequent Advances set forth in
this Agreement.
(ii) Borrower agrees to execute such
amendments to the Note and related
documents, as Lender shall require to
evidence the inclusion of additional
amounts
C-8
44
funded by Lender pursuant to this Section
in the Loan.
(iii) If Lender shall reasonably
determine that the Schedule of Values
and/or the Budget is not "in balance" as
provided in this subsection, Lender may,
at its option, refuse to make or approve
further Advances and may require Borrower
to deposit with Lender cash or other
security acceptable to Lender in its sole
discretion in such amount as Lender deems
necessary to put the Schedule of Values
and/or the Budget "in balance." No funds
of Lender shall be disbursed until all
sums deposited by Borrower have been
disbursed. The Schedule of Values and/or
the Budget shall be "in balance" only at
such times that Lender determines, in its
sole and reasonable judgment, that the
moneys available to Borrower for the
payment or reimbursement of (1) the total
costs of constructing the Tenant
Improvements as set forth in the Budget
are at least equal to the amount that
must be expended in order to complete the
Tenant Improvements and to pay all costs
and other expenses contemplated
hereunder, and (2) unexpended amounts
within each category or line item in the
Schedule of Values and/or the Budget are
at least equal to the amount of costs
that must be expended to pay each
category or line item. Any costs listed
as contingencies on the Schedule of
Values and/or the Budget shall be deemed
to be actual costs for the purposes of
balancing. The determination as to
whether the Schedule of Values and/or the
Budget is "in balance" may be made by
Lender at any time, including in
connection with any Request for
Disbursement. Within ten (10) Business
Days following notice from Lender that
the Schedule of Values and/or the Budget
is not "in balance," Borrower shall make
the deposit required to be made pursuant
to this subsection. Any such
C-9
45
amounts deposited with Lender shall be
the next funds disbursed by Lender,
subject to the terms and conditions of
this Agreement.
9. Mechanics' and Materialmen Liens.
(i) Borrower will certify, or cause the
general contractor, if any, to certify,
to Lender upon request at any time, and
from time to time, as to all materialmen,
laborers, subcontractors, suppliers and
any other parties who might or could
claim statutory or common law liens as a
result of furnishing material or labor to
the Premises or any portion thereof or
interest therein, together with evidence
satisfactory to Lender showing that such
parties have been paid (or will be paid
from the Subsequent Advances) all amounts
then due for labor and materials. In
addition, Borrower will provide or cause
to be provided to Lender, promptly upon
Lender's request, copies of any
preliminary notice or notice, written or
oral, from any laborer, subcontractor,
materialman or supplier to the effect
that said laborer, subcontractor,
materialman or supplier has not been paid
when due or intends to or has filed any
mechanics lien for any labor or materials
furnished in connection with the
construction of the Tenant Improvements.
(ii) If, during the construction of the
Tenant Improvements, a lien is filed
against the Project for work performed on
or goods and/or services provided to the
Project, and if Borrower is not then in
breach or default of this Agreement,
Borrower shall have thirty (30) Business
Days after Lender's request that the lien
be released from the applicable real
property records or that Borrower post a
bond or provide an indemnity satisfactory
to Lender to cause the same to be
accomplished. If Borrower fails to so
cause such lien to be released or to post
such a bond or deliver such an
C-10
46
indemnity, such failure shall be an Event
of Default under this Agreement and shall
entitle Lender to exercise the remedies
set forth in Section 10.2.
10. Inspection, Audits and Information Regarding Tenant
Improvements and Construction Component Advances.
(i) Borrower shall permit Lender and its
representatives and agents, to enter upon
the Real Property at all times during
normal business hours and at other times
upon not less than 24 hours prior written
notice and to inspect the Tenant
Improvements and all materials to be used
in the construction thereof, and shall
cooperate and cause the general
contractor, if any, to cooperate with
Lender and its representatives and
agents, during such inspections,
including making available to Lender
working copies of the Contract Documents
together with all related supplementary
materials.
(ii) Borrower shall permit Lender and its
representatives and agents, to examine,
copy and make extracts of the books,
records, accounting data and other
documents of Borrower that relate to
compliance with the terms of this Exhibit
including, without limitation, all
permits, licenses, consents and approvals
of all governmental authorities having
jurisdiction over Borrower or the
Project. All such books, records and
documents shall be made available to
Lender, and its representatives and
agents promptly upon written demand
therefor; and, at the request of Lender,
Borrower shall furnish Lender and its
representatives and agents with
convenient facilities for the foregoing
purpose.
(iii) It is expressly understood and
agreed that Lender shall have no duty to
supervise or to inspect the construction
of any Tenant Improvements or any books,
records, drawings, permits or approvals
concerning
C-11
47
the construction of such Tenant
Improvements, and that any such
inspection or review shall be for the
sole purpose of determining whether or
not the obligations of Borrower under
this Agreement are being properly
discharged and of preserving Lender's
rights hereunder or under the Contract
Documents. If Lender or its agents should
inspect the construction of the Tenant
Improvements or any books and records,
Lender and its agents shall have no
liability or obligation to Borrower or
any third party arising out of such
inspection. A review or inspection not
followed by a notice of an Event of
Default shall not constitute a waiver of
any default then existing; nor shall it
constitute an acknowledgment or
representation by Lender that there has
been or will be compliance with the
Contract Documents, that the construction
is free from defects in materials or
workmanship, or that there has been a
waiver of Lender's right thereafter to
insist that any Tenant Improvements be
constructed in accordance with the
Contract Documents. Lender's failure to
inspect the construction of the Tenant
Improvements or any part thereof or any
books, records, drawings, permits and
approvals related to the construction of
the Tenant Improvements shall not
constitute a waiver of any of Lender's
rights hereunder. Neither Borrower nor
any third party shall be entitled to rely
upon any inspection or review undertaken
by Lender, and Lender owes no duty of
care to Borrower or any third person to
protect against, or inform Borrower or
any third person of the existence of,
negligent, faulty, unlawful, inadequate
or defective design or construction of
the Tenant Improvements.
11. Insurance. In addition to the insurance requirements
Borrower is otherwise obligated under this Agreement to
satisfy, Borrower shall obtain and maintain the
following insurance:
C-12
48
(i) Architect's Insurance. An architect's
professional liability insurance policy
obtained by Borrower's Architect, if any,
in an amount not less than $1,000,000.00
per occurrence. Evidence of such
insurance shall be delivered to Lender.
(ii) General Contractor's Liability
Insurance. General contractor's liability
insurance policy in an amount not less
than $1,000,000.00 per occurrence.
Evidence of such insurance shall be
delivered to Lender.
Borrower shall cooperate with Lender in obtaining for Lender the benefits of any
insurance proceeds lawfully or equitably payable to Lender in connection with
the transactions contemplated hereby, and shall reimburse Lender for any
reasonable expenses incurred in connection therewith (including reasonable
attorneys' fees and expenses, and the payment by Borrower of the expense of an
Appraisal on behalf of Lender in case of a fire or other casualty affecting the
Land or the Tenant Improvements which Lender reasonably believes has a material
adverse effect on the value of the Project).
12. Representations and Warranties of Borrower. The
following representations and warranties, to the extent
applicable, shall be deemed made by Borrower as of the
date of each submission of a Request for Disbursement by
Borrower:
(i) Approval of Contract Documents;
General Contract. The Contract Documents
have been approved by Borrower and, to
the extent required by applicable law or
any effective restrictive covenant, each
governmental authority and the
beneficiaries of each such covenant
respectively. The general contract
provides for the construction of the
Tenant Improvements for a stipulated
amount or guaranteed maximum price.
(ii) Compliance With Laws. The design,
layout and anticipated use of the Tenant
Improvements complies with or will comply
with in all material respects, by the
Completion Date, all applicable zoning
ordinances, regulations and restrictive
covenants affecting the leased premises
and all other requirements of any
governmental
C-13
49
authority and all requirements for such
use have been or will have been satisfied
by the Completion Date.
(iii) Licenses; Permits. Borrower has
obtained all licenses, permits,
authorizations, consents and approvals
from governmental authorities and/or
third parties necessary to commence
construction of the Tenant Improvements,
such licenses, permits, authorizations
and consents are in full force and effect
and will be maintained in full force and
effect throughout construction of the
Tenant Improvements, and Borrower has no
reason to believe that all licenses,
permits, certifications and approvals
with respect to the Tenant Improvements
to be issued subsequent to the date of
this Agreement will not be issued in the
ordinary course of business. In addition
to those licenses, permits,
certifications and approvals which are
required to commence construction of the
Tenant Improvements, Borrower shall
timely obtain and maintain all other
licenses, permits, certifications and
approvals required to construct or
complete the Tenant Improvements. On or
before the Completion Date, Borrower
shall have obtained from each
governmental authority all licenses,
permits, authorizations, consents and
approvals necessary for the occupancy and
operation of the Tenant Improvements for
their intended purpose, and as of the
Completion Date such licenses, permits,
authorizations, consents and approvals
will be in full force and effect.
(iv) Lien Potential. Borrower has made no
material contract or arrangement of any
kind which has given rise to, or the
performance of which by the other party
thereto would give rise to, a lien or
claim of lien on the Premises, except for
its arrangements with Borrower's
Architect, general contractor and
contractors or
C-14
50
subcontractors which have been disclosed
to Lender and the purchase money
financing permitted pursuant to paragraph
8.4 of the Agreement.
(v) No Defaults. To Borrower's knowledge,
there exist no defaults under this
Agreement, the Note or any of the
documents executed in connection with the
Note, and no event has occurred and is
continuing which with notice or the
passage of time or both would constitute
a default under this Agreement or any of
such documents.
(vi) Representations and Warranties. All
representations and warranties of
Borrower in the Note, any other Loan
Documents, and in any certificates or
other instruments delivered pursuant
thereto are incorporated herein by
reference as though fully set forth.
(vii) Other Financing. Borrower
represents that it does not require and
agrees that it will not avail itself of
any other debt financing in connection
with the Project without the prior
written consent of Lender excluding trade
payables and accruals in the ordinary
course of business and the purchase money
financing permitted pursuant to paragraph
8.4 of the Agreement.
13. Retention of Lender's Inspector.
(i) Lender may retain, at Lender's sole
cost and expense, an architectural/
engineering firm ("Lender's Inspector")
to review the work-related items, the
Contract Documents, permits, licenses and
the Budget and any changes to such items;
inspect the Premises prior to
commencement of the work for purposes of
determining the condition of the Premises
and any existing Tenant Improvements;
make periodic inspections of the Premises
during normal business hours and at other
times upon not
C-15
51
less than 24 hours prior written notice
and the work so that Lender may monitor
whether Borrower is in compliance with
the terms and conditions hereof, and
certifying that each Request for
Disbursement is not in excess of the work
completed and the amount to which
Borrower is entitled under the terms and
conditions of this Agreement. Lender may
also require an inspection of the Work by
Lender's Inspector: (a) prior to each
Subsequent Advance; (b) at least once
each month during the course of
completion of the work; (c) upon
substantial completion; and (d) at such
other time as Lender may, in its
reasonable judgment, deem necessary due
to actual or suspected non-compliance
with the plans and specifications,
Contract Documents, any law, regulation
or private restriction, sound
architectural, engineering or
construction principles or commonly
accepted safety standards; or Borrower's
failure to satisfy the requirements
hereof. In exercising such rights, Lender
shall not unreasonably interfere with
Borrower's construction of the Tenant
Improvements.
(ii) Lender shall have no duty to
supervise or to review and inspect the
work, the Contract Documents, permits,
licenses, the Budget, any books and
records pertaining thereto or any changes
to such items or the construction of the
work. Any inspection made by Lender shall
be for the sole purpose of determining
whether the Obligations are being
performed and preserving Lender's rights
hereunder. If Lender, or Lender's
Inspector acting on behalf of Lender,
should review or inspect the work, the
Contract Documents, permits, licenses,
the Budget, any books and records
pertaining thereto or any changes to such
items or the construction of the work,
Lender and Lender's Inspector shall have
no liability or obligation to Borrower or
any third person arising out of such
inspection;
C-16
52
and neither Borrower nor any third person
shall be entitled to rely upon any such
inspection or review. Inspection not
followed by notice of default shall not
constitute (1) waiver of any default then
existing; (2) an acknowledgment or
representation by Lender or Lender's
Inspector that there has been or will be
compliance with the Contract Documents,
permits, licenses, the Budget, applicable
laws, regulations and private
restrictions, sound construction,
engineering or architectural principles
or commonly accepted safety standards, or
that the construction is lien free or
free from defective materials or
workmanship; or (3) a waiver of Lender's
right thereafter to insist that
completion of the work occur in
accordance with the Contract Documents,
permits, licenses, the Budget, applicable
laws, regulations and restrictions, sound
construction, engineering or
architectural principles or commonly
safety standards and free from defective
materials and workmanship. Lender and
Lender's Inspector owe no duty of care to
Borrower or any third person to protect
against, or inform Borrower or any third
person of, the existence of negligence,
faulty, inadequate or defective design or
construction of the Work.
14. Satisfaction of Conditions. Although Lender shall
have no obligation to make any Subsequent Advance unless
and until all of the conditions and prior performances
set forth herein have been kept, fulfilled or performed,
and until all inspections, certifications, releases,
waivers, or paid bills or other requirements set forth
herein have been made, delivered and complied with,
Lender, at its sole discretion, may make Advances prior
to that time without waiving or releasing any of the
requirements or conditions of this Agreement; but
Borrower shall continue to be strictly obligated and
subject thereto, and all such conditions, prior
performances and other requirements shall nevertheless
be strictly and punctually complied with, fulfilled and
performed; and, notwithstanding any such Advance,
Lender, at its sole discretion, may discontinue any
C-17
53
further Advances at any time until all of the
conditions, prior performances and other requirements of
this Agreement have been strictly fulfilled, performed
and complied with.
C-18
54
EXHIBIT "C-2"
CONDITIONS AND LIMITATIONS FOR SUBSEQUENT ADVANCES
(LEASE-RELATED ADVANCES)
15. Lender Approval of Lease. Prior to any Subsequent Advance with
respect to a Lease, which Advance is not requested to fund any Tenant
Improvements, Borrower shall: submit to Lender for approval (a) a Lease for the
related premises to the extent not already approved, (b) if requested by Lender
and if applicable, the Budget and the Contract Documents for any Tenant
Improvements to be constructed and financed by the Tenant under such Lease.
Lender shall be under no obligation to make any Subsequent Advance with respect
to such Lease until Lender has approved such Lease (including, without
limitation, the identity and financial condition of the Tenant) or such lease is
deemed approved, and other items, in Lender's discretion, not to be unreasonably
withheld, conditioned or delayed.
16. Construction of Tenant Improvements. With respect to
any Lease under which Tenant Improvements are to be
constructed, but no part of such Improvements are to be
financed by a Subsequent Advance, Borrower shall (i) use
reasonable efforts to cause the Tenant to construct the
Tenant Improvements in good and workmanlike manner and
substantially in accordance with the Contract Documents,
(ii) commence, or use reasonable efforts to cause to be
commenced, construction promptly as required under the
related Approved Lease, and (iii) once construction of
the Tenant Improvements has commenced, pursue or cause
to be pursued such construction diligently to completion
and complete such construction substantially in
accordance with the relevant Construction Schedule.
Borrower shall use reasonable efforts to cause such
Tenant Improvements to be constructed in accordance with
all applicable laws, rules and regulations of
appropriate governmental authorities, so as not to
encroach upon any easement, right-of-way or land of
others and so as not to violate any setback lines,
applicable public or private use restrictions or other
restrictions or regulations.
17. Eligible Expenses. A Subsequent Advance other than a
Construction-Related Advance made pursuant to Exhibit
"C-1", may only be made to pay or reimburse Borrower for
(i) the cost of any leasing commission, legal fees or
other out-of-pocket expenses approved by Lender in its
sole discretion in connection with an Approved Lease,
(ii) to make any other capital expenditure benefiting
the Project permitted by paragraph 7.17(a), or (iii) to
pay any other Operating Expenses of the Project or other
ownership level expenses of the Borrower.
C-2-1
55
18. SUBSEQUENT ADVANCE PROCEDURES AND REQUEST FOR
DISBURSEMENT.
(a) Borrower shall prepare and submit to Lender a
Request for Disbursement for any such Subsequent
Advance subject to this Exhibit C-2. Each Request
for Disbursement shall be delivered to Lender not
less than ten (10) Business Days prior to the
requested Subsequent Advance date and shall be
accompanied by the following:
(i) all information and documentation
required by this Agreement;
(ii) evidence that all conditions of this
Agreement required to be satisfied prior
to such Subsequent Advance have been
satisfied or waived;
(iii) copies of all relevant
documentation evidencing the amount and
payment, if any, of the expenses for
which a Subsequent Advance is being
requested including, but not limited to,
a waiver of lien with respect to any
brokerage commissions to be paid
hereunder; and
(iv) such additional information,
affidavits, certificates and other
documents as may be reasonably required
by Lender for making the Subsequent
Advance.
Within seven (7) Business Days of Lender's receipt of the Request for
Disbursement, Lender will approve or disapprove the Request for Disbursement.
Lender will review and consider approval of all Requests for Disbursement
submitted by Borrower in good faith.
19. Additional Conditions Precedent to Subsequent
Advances. The obligations of Lender hereunder to approve
and make each Subsequent Advance subject to this Exhibit
C-2 shall be subject to the following conditions
precedent:
(i) Certificates of Occupancy. If
applicable, evidence satisfactory to
Lender of the issuance by all appropriate
governmental authorities of final
certificates of use and occupancy of the
related Tenant
C-2-2
56
Improvements, to the extent required by
applicable law.
(ii) Completion Certificates. If
applicable, certificate to Lender by
Borrower certifying (i) that the Tenant
Improvements have been completed
substantially in accordance with the
Contract Documents; (ii) a final
certificate of use and occupancy of the
Tenant Improvements has been issued; and
(iii) covering such other matters as
Lender may reasonably require.
(iii) Borrower's Affidavit; Borrower's
Certification.
(A) If applicable, an affidavit of
Borrower stating that each person
providing any material or performing
any work in connection with the
premises has been paid in full or
bonded (or funds have been reserved
therefor) to the satisfaction of
Lender, and that all withholding
taxes have been paid and lien
waivers have been obtained from all
contractors, subcontractors and
suppliers who have performed work or
supplied materials in connection
with the construction of any Tenant
Improvements and who have lien
rights, and covering such other
matters as Lender may require.
(B) If applicable, a certificate
from Borrower to Lender stating that
(a) the Tenant Improvements have
been completed substantially in
accordance with the Contract
Documents subject to punch-list
items and (b) Borrower and the
Tenant have accepted the Tenant
Improvements as constructed subject
to punch-list items.
C-2-3
57
(C) Other Items. Upon reasonable
request by Lender, copies of all
documents, instruments and
agreements and all insurance
policies and certificates required
to be delivered pursuant to any
Contract Document together with any
other evidence required by Lender
that the Tenant Improvements have
been substantially completed in
accordance with the Contract
Documents in compliance with all
Requirements of Governmental
Authority and free of all liens.
(iv) If the Advance is for the purpose of
making a capital expenditure benefiting
the Project, then Borrower shall also
provide, to the extent applicable to the
making of such capital expenditure, the
items described in Exhibit "C-1"
paragraph 4 and all references therein to
Tenant Improvements shall be deemed to be
references to such capital expenditures.
20. Withholding Advances. Lender, in its discretion, may
withhold any Subsequent Advance subject to this Exhibit
C-2 until Lender has received releases of lien, waivers
of lien or paid bills in form reasonably satisfactory to
it. Lender shall have no obligation to require and/or
obtain lien waivers or receipts, and, although Lender
may require presentation to it of lien waivers and/or
receipts, Lender shall have no responsibility for the
validity thereof nor for the correctness of the amounts
indicated thereon. No Advance by Lender shall constitute
approval of any certification or relieve any person
making such certification of responsibility therefor.
21. Representations and Warranties of Borrower. The
following representations and warranties, to the extent
applicable, shall be deemed made as of the date of each
submission of a Request for Disbursement by Borrower
with respect to each Subsequent Advance by Lender under
such Request for Disbursement:
(i) Approval of Contract Documents;
General Contract. If applicable, the
Contract Documents have been approved by
Borrower and, to the extent required by
C-2-4
58
applicable law and/or each
governmental authority.
(ii) Compliance With Laws. To the best of
Borrower's knowledge, if applicable, the
design, layout and anticipated use of the
Tenant Improvements complies with or will
comply with in all material respects, by
the Completion Date, all applicable
zoning ordinances, regulations and
restrictive covenants affecting the
leased premises and all other
requirements of any governmental
authority and all requirements for such
use have been or will have been satisfied
in all material respects by the
Completion Date.
(iii) Licenses; Permits. To the best of
Borrower's knowledge, if applicable,
Borrower (or the tenant constructing the
same) has obtained all licenses, permits,
certifications and approvals required to
construct or complete the Tenant
Improvements. On or before the Completion
Date, Borrower (or the tenant
constructing the same) shall have
obtained from each governmental authority
and from each beneficiary of each
restrictive covenant all licenses,
permits, authorizations, consents and
approvals necessary for the occupancy and
operation of the Tenant Improvements for
their intended purpose, and as of the
Completion Date such licenses, permits,
authorizations, consents and approvals
will be in full force and effect.
(iv) No Defaults. To Borrower's knowledge
there exist no Events of Default under
this Agreement, the Note or any other
Loan Documents executed in connection
with the Note, and no event has occurred
and is continuing which with notice or
the passage of time or both would
constitute a default under this Agreement
or any of such documents.
C-2-5
59
(v) Representations and Warranties. All
representations and warranties of the
Borrower in the Note, any other Loan
Documents, and in any certificates or
other instruments delivered pursuant
thereto are incorporated herein by
reference as though fully set forth.
22. Satisfaction of Conditions. Although Lender shall
have no obligation to make any Subsequent Advance unless
and until all of the conditions and prior performances
set forth herein have been kept, fulfilled or performed,
and until all inspections, certifications, releases,
waivers, or paid bills or other requirements set forth
herein have been made, delivered and complied with,
Lender, at its sole discretion, may make Advances prior
to that time without waiving or releasing any of the
requirements or conditions of this Agreement; but
Borrower shall continue to be strictly obligated and
subject thereto, and all such conditions, prior
performances and other requirements shall nevertheless
be strictly and punctually complied with, fulfilled and
performed; and, notwithstanding any such Subsequent
Advance, Lender, at its sole discretion, may discontinue
any further Subsequent Advances at any time until all of
the conditions, prior performances and other
requirements of this Agreement have been strictly
fulfilled, performed and complied with.
C-2-6
60
EXHIBIT "C-3"
CONDITIONS AND LIMITATIONS FOR SUBSEQUENT ADVANCES
(OPERATING DEFICIT AND CAPITALIZED INTEREST ADVANCES)
23. Eligible Expenses. An Operating Deficit Advance may only be made to
pay or reimburse Borrower for Operating Expenses (excluding replacement
reserves) and ownership level expenses and professional fees. A Capitalized
Interest Advance may only be made to reimburse Borrower for interest then due
and payable on the Note.
24. Conditions for Disbursement.
A. Borrower shall be eligible for an Operating Deficit Advance
only if:
(a) No Event of Default has occurred and is then continuing;
and
(b) Borrower has exhausted all other liquid resources
available to it other than the Real Property, and not more than
One Hundred Thousand Dollars ($100,000.00) retained in the
operating account in order to pay such expenses.
(c) Lender shall have no obligation to make an Advance
hereunder to the extent that such an Advance would cause the total
of all Operating Deficit Advances to exceed the sum of
$1,000,000.00 or would cause the sum of all Advances made under
the Note to exceed the sum of $12,000,000.00.
B. Borrower shall be eligible for a Capitalized Interest Advance
only if:
(a) No Event of Default has occurred and is then continuing;
(b) Borrower has exhausted all other liquid resources
available to it, other than the Real Property to pay such
interest; and not more than One Hundred Thousand Dollars
($100,000.00) retained in the operating account in order to pay
such expenses; and
(c) Lender shall have no obligation to make an Advance
hereunder to the extent that such an Advance would cause the total
of all Capitalized Interest Advances to exceed the sum of
$1,500,000.00, or would cause the sum of all Advances made under
the Note to exceed the sum of $12,000,000.00.
25. Subsequent Advance Procedures and Request for
Disbursement.
(a) Borrower shall prepare and submit to Servicing Agent a Request
for Disbursement for any such Operating Deficit Advance. Each Request
for Disbursement
C-3-1
61
shall be delivered to Lender not less than ten (10) Business Days prior
to the requested Operating Deficit Advance date and shall be
accompanied by the following:
(i) all information and documentation required by
this Agreement;
(ii) evidence that all conditions of this Agreement
required to be satisfied prior to such Operating Deficit
Advance have been satisfied or waived;
(iii) copies of all relevant documentation evidencing
the amount and payment, if any, of the expenses for which an
Operating Deficit Advance is being requested; and
(iv) such additional information, affidavits,
certificates and other documents as may be reasonably
required by Lender for making the Operating Deficit Advance.
Within seven (7) Business Days of Lender's receipt of the Request for
Disbursement, Lender will approve or disapprove the Request for Disbursement.
Lender will review and consider approval of all Requests for Disbursement
submitted by Borrower in good faith.
26. Additional Conditions Precedent to Subsequent
Advances. The obligations of Lender hereunder to
approve and make each Subsequent Advance subject
to this Exhibit C-3 shall be subject to the
following conditions precedent:
(i) Financial Information. Lender's receipt of such financial
statements and information as Lender shall request evidencing
Borrower's eligibility for an Operating Deficit or Capitalized Interest
Advance including but not limited to Borrower's financial statement for
the most recent calendar month including profit and loss statement and
balance sheet certified by Borrower as accurate and complete in all
material respects subject to normal year-end adjustments.
(ii) Invoices. Lender's receipt of copies of such invoices as
Lender shall reasonably request evidencing the expenses for which an
Operating Deficit Advance is being requested together with evidence
that all expenses for which any previous Operating Deficit Advance has
been made have been paid in full.
27. Representations and Warranties of Borrower.
The following representations and warranties,
to the extent applicable,shall be deemed made
as of the date of each submission of a Request
for Disbursement by Borrower with respect to
each Subsequent Advance by Lender undersuch
Request for Disbursement:
(i) To Borrower's knowledge there exist no Events of Default
under this Agreement, the Note or any other Loan Documents and no event
has occurred and is
C-3-2
62
continuing which with notice or the passage of time or both would
constitute a default under this Agreement or any of such documents.
(ii) All representations and warranties of the Borrower in
the Note, any other Loan Documents, and in any certificates or other
instruments delivered pursuant thereto are incorporated herein by
reference as though fully set forth.
28. Satisfaction of Conditions. Although Lender
shall have no obligation to make any Subsequent
Advance unless and until all of the conditions and
prior performances set forth herein have been kept,
fulfilled or performed, and until all inspections,
certifications, releases, waivers, or paid bills or
other requirements set forth herein have been made,
delivered and complied with, Lender, at its sole
discretion, may make Advances prior to that time
without waiving or releasing any of the
requirements or conditions of this Agreement; but
Borrower shall continue to be strictly obligated
and subject thereto, and all such conditions, prior
performances and other requirements shall
nevertheless be strictly and punctually complied
with, fulfilled and performed; and, notwithstanding
any such Subsequent Advance, Lender, at its sole
discretion, may discontinue any further Subsequent
Advances at any time until all of the conditions,
prior performances and other requirements of this
Agreement have been strictly fulfilled, performed
and complied with.
C-3-3
63
EXHIBIT "D"
SURVEY REQUIREMENTS
1. The survey must be certified by a surveyor licensed in the jurisdiction in
which the Mortgaged Property is located. If that jurisdiction licenses
engineers instead of surveyors, then the survey may be certified by such a
licensed engineer.
2. The survey must be dated no more than sixty (60) days prior to the date the
Mortgage is recorded.
3. The survey must be acceptable to the title insurance company for purposes of
insuring title free and clear of survey questions.
4. The survey must meet the requirements of an ALTA/ACSM Land Title Survey,
made in accordance with the Minimum Standard Detail Requirements for
American Land Title Association and American Congress on Surveying and
Mapping Land Title Surveys, as adopted in 1997.
5. The description of the Mortgaged Property shown on the survey must conform
to the legal description shown in the title insurance commitment for the
Mortgaged Property. If the title insurance commitment refers to a recorded
plat, then such plat with appropriate recording references must be indicated
on the survey.
6. A surveyor's certificate in the following form must be printed as a legend
on the survey:
The undersigned hereby certifies to FINPRO, L.L.C., Lender,
, Borrower and , Title Insurer that (a) this
survey is true and correct and was made on the ground under my supervision
as per the field notes shown hereon and correctly shows the boundary lines
and dimensions and area of the land indicated hereon and each individual
parcel thereof indicated hereon; (b) all monuments shown hereon actually
exist, and the location, size and type of such monuments are correctly
shown; (c) this survey correctly shows the location, size and type of all
buildings, structures, other improvements and visible items on the subject
Property; (d) this survey correctly shows the location and dimensions of all
alleys, streets, roads, rights-of-way, easements, building setback lines and
other matters of record affecting the subject Property according to the
legal description in such easements and other matters (with instrument,
book, and page number indicated); (e) except as shown, there are no visible
(1) improvements, easements, rights-of-way, party walls, drainage ditches,
streams, uses, discrepancies or conflicts, (2) encroachments onto adjoining
premises, streets, or alleys by any of said buildings, structures, or other
improvements, (3) encroachments onto the subject Property by buildings,
structures, or other improvements on adjoining premises, or (4)
encroachments on any easement, building setback line or other restricted
area by any buildings, structures or other improvements on the subject
property; (f) the distance from the nearest intersecting street or road is
as shown hereon; (g) the subject property abuts a dedicated public street or
road as shown hereon; (h) except as shown, no part of the Property is
located in a 100-year Flood
D-1
64
Plain or in an identified "flood prone area," as defined pursuant to the
Flood Disaster Protection Act of 1973, as amended, as reflected by Flood
Insurance Rate Map Panel # dated , which such map panel
covers the area in which the Property is situated; and (i) this survey meets
the requirements of an ALTA/ACSM Land Survey.
Dated:
----------------------
Name of Surveyor
Registration No:
----------------------
[SEAL]
D-2
65
EXHIBIT "E"
QUARTERLY COMPLIANCE CERTIFICATE
FOR FISCAL QUARTER ENDING
,
("REPORTING QUARTER")
FINPRO, L.L.C.
0000 Xxxxxx Xxxxxx
Xxxxx 000
Xxxxxxxx, Xxxxxxxx 00000
Date: , 19 (1)
Ladies and Gentlemen:
This Quarterly Compliance Certificate refers to the Loan Agreement
dated as of , 1999 (as it may hereafter be amended, modified,
extended or restated from time to time, the "Loan Agreement"), among EBS
Building, L.L.C., a Delaware limited liability company ("Borrower"), and FINPRO,
L.L.C., a Missouri limited liability company ("Lender"). Capitalized terms used
and not otherwise defined herein shall have the meanings assigned to such terms
in the Loan Agreement.
Pursuant to Paragraph 7.13 (d) of the Loan Agreement, the undersigned,
a member or manager of Borrower, hereby certifies that:
1. Enclosed are the required financial statements for the quarter
ending for Borrower as required under Paragraph 7.13 (b) of the Loan Agreement.
2. To the best of the undersigned's knowledge, no "Event of Default"
has occurred [or if so, specify the nature and extent thereof and any corrective
actions taken or to be taken].
EBS BUILDING, L.L.C., A DELAWARE LIMITED LIABILITY
COMPANY
BY: PRICEWATERHOUSECOOPERS LLP, MANAGER
By:
--------------------------------------------
Authorized Representative
--------------------
(1) To be submitted within 45 days after the end of each fiscal quarter of
each fiscal year of Borrower.
E-1
66
EXHIBIT "F-1"
FORM OF REQUEST FOR DISBURSEMENT
(CONSTRUCTION RELATED ADVANCES)
To: FINPRO, L.L.C.
From: EBS Building, L.L.C. ("Borrower")
Re: EBS Building, St. Louis, Missouri
The undersigned authorized representative of Borrower hereby requests that,
pursuant to the Loan Agreement dated , 1999, Lender authorize a
Subsequent Advance with respect to the property identified above and under the
Borrower's Note dated , 1999, of the following amounts for the Tenant
Improvement work at the above-referenced site for the period beginning ,
19 and ending , 19 . Borrower has attached substantiation of all
of the following hard costs (AIA forms G702 and G703) and soft costs (invoices
for each line item).
Date: , 19
EBS BUILDING, L.L.C., A DELAWARE LIMITED LIABILITY
COMPANY
By:
---------------------------------------------
Authorized Representative
F-1-1
67
EXHIBIT "F-2"
FORM OF REQUEST FOR DISBURSEMENT
(LEASE-RELATED ADVANCES)
To: FINPRO, L.L.C.
From: EBS Building, L.L.C. ("Borrower")
Re: EBS Building, St. Louis, Missouri
The undersigned authorized representative of Borrower hereby requests that,
pursuant to the Credit Facility Agreement dated , 1999, Lender
authorize a Subsequent Advance with respect to the property identified above and
under the Note dated , 1999, of the following amounts with respect to
the Lease for the above-referenced site. Tenant Improvements at such site have
been fully completed and accepted by the Tenant. Borrower has attached
substantiation of the acceptance of such Tenant Improvements by such Tenant, of
payment of all construction costs associated therewith, and all lien waivers and
other items with respect to the requested Advance required under the Agreement.
F-2-1
68
MAXIMUM LEASE ADVANCE AMOUNT AS CALCULATED PURSUANT TO
SCHEDULE 1 $
---------------
Less Prior Disbursements, If Any
with respect to Borrower-financed
Tenant Improvements $
---------------
TOTAL OF REQUEST FOR DISBURSEMENT: $
---------------
Date: ,
EBS BUILDING, L.L.C., A DELAWARE LIMITED LIABILITY
COMPANY
By:
---------------------------------------------
Authorized Representative
F-2-2
