Loading...
Kunkel & Bounds CEBA Agree i5U~~E ~ck~ MEMORANDUM August 1, 2006 (-.., TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager , I '.' SUBJECT: Community Economic Betterment Account (CEBA) Loan Kunkel Bounds & Associates, Inc. Master Contract Number P0603M00866 Funding Agreement Number 06-CEBAIVFGF-037 Loan Agreement Number 06-CEBA-037 In March 2006, Kunkel Bounds & Associates, Inc. announced plans to relocate from Mineral Point, Wisconsin, to Dubuque. The company is planning the construction of a new facility in the Dubuque Technology Park. The company has committed to hiring 24 full-time employees within the next 3 years, with an average starting wage that will meet or exceed $19.81 per hour, including benefits. Economic Development Director Dave Heiar recommends City Council approval of the execution of a CEBA Loan Agreement by and among the Iowa Department of Economic Development, Kunkel Bounds & Associates, Inc. and the City of Dubuque. As previously approved by the City Council, the City of Dubuque's financial commitment to this project is limited to providing a land discount and the use of Tax Increment Financing. I concur with the recommendation and respectfully request Mayor and City Council approval. /2z /1(/ IlZ. rh i, LL." I "'''11 t-t Mic~ael c. Van Milligen ~ MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager David J. Heiar, Economic Development Director CITY OF DUBUQUE, IOWA MEMORANDUM July 31, 2006 TO: Michael Van Milligen, City Manager FROM: David J. Heiar, Economic Development Director \Ocyt SUBJECT: Community Economic Betterment Account (CEBA) Loan Kunkel Bounds & Associates, Inc. Master Contract Number P0603M00866 Funding Agreement Number 06-CEBAIVFGF-037 Loan Agreement Number 06-CEBA-037 INTRODUCTION This memorandum presents for City Council review and approval a Resolution relating to a CEBA loan/forgivable loan for Kunkel Bounds & Associates, Inc. The Resolution authorizes the execution of a CEBA Loan Agreement of $75,000 by and among the Iowa Department of Economic Development, Kunkel Bounds & Associates, Inc. and the City of Dubuque. BACKGROUND In March 2006, Kunkel Bounds & Associates, Inc. announced plans to relocate from Mineral Point Wisconsin to Dubuque. The company is planning the construction of a new facility in the Dubuque Technology Park. As part of this project, the company has committed to hiring 24 full-time employees within the next three (3) years. The average starting wage will meet or exceed $19.81 per hour including benefits. DISCUSSION This memorandum asks the City to assist Kunkel Bounds & Associates, Inc. by executing the attached CEBA Loan Agreement of $75,000 that has been approved by the State of Iowa Department of Economic Development Board. This CEBA award is for a $37,500, 0%, 5 year loan and a $37,500 forgivable loan. The CEBA program requires a local financial commitment to the project. The City Council previously approved a development agreement with Kunkel Bounds & Associates, Inc. providing for a land discount and the use of TIF. RECOMMENDATION I recommend that the City Council adopt the attached Resolution authorizing the execution of a CEBA Loan Agreement of $75,000 to support the Kunkel Bounds & Associates, Inc. project in Dubuque. ACTION STEP The Action Step for the City Council is to adopt the attached Resolution. F:IUSERSIDHeiar\KunkeIBoundsICEBA Memo.doc RESOLUTION NO. 347-06 A RESOLUTION AUTHORIZING THE EXECUTION OF A COMMUNITY ECONOMIC BETTERMENT ACCOUNT LOAN AGREEMENT FOR SEVENTY FIVE THOUSAND DOLLARS ($75,000) WITH KUNKEL BOUNDS & ASSOCIATES, INC. Whereas, the Community Economic Betterment Account (CEBA) program has been created by the Iowa Department of Economic Development to assist in the economic development efforts of local jurisdictions; and Whereas, in March 2006, the City of Dubuque, Iowa was awarded a seventy five thousand dollar ($75,000) loan/forgivable loan from the CEBA program by the Iowa Department of Economic Development; and Whereas, the City of Dubuque, Iowa desires to assist Kunkel Bounds & Associates, Inc. in its efforts to locate its operations in Dubuque and create new, permanent employment opportunities for local citizens; and Whereas, a CEBA Loan Agreement, hereto attached and by this reference made a part hereof, is to be executed between the Iowa Department of Economic Development, Kunkel Bounds & Associates, Inc. and the City of Dubuque, Iowa. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Mayor and Corporation Counsel be and they are hereby authorized and directed to endorse, on behalf of the City Council of the City of Dubuque, Iowa, the attached CEBA Loan Agreement. Section 2. That the City Manager be and he is hereby authorized to disburse loan funds to Kunkel Bounds & Associates, Inc. from the CEBA program in accordance with the terms and conditions of the executed Agreement. Passed, approved and adopted this 7th day of August, 2006., Roy D. Buol, Mayor Jeanne F. Schneider City Clerk F:\USERSIDHeiarIKunkeIBoundslceba res.doc JUL-31-2005 11:03 FRDM:KUNKEL, BOUNDS & ASS 15089872310 TD:15535891733 P.2 . L_~. April 26, 2006 Mr. Timothy J. Kunkel, President Kunkel, Bounds & Associates, Inc. 203 High Street Mineral Point, WI 53565 RIO: Financial Assistance Program Awards Award Date: April 20, 2006 Contract #: P0603M00866 Dear Mr. Kunkel: I am pleased to inform you that the Iowa Department of Economic Development has awarded Kunkel, Bounds & Associates, Inc. the following financial assistance for your project in Dubuque, Iowa: Community Economic Betterment Account (CEBA) $37,500 Loan, $37,500 Forgivable Loan High Quality Job Creation (HQJC) - estimated value $75,000 $97,850 Attached you will find a Sales and Use Tax Refund informational sheet describing the required forms for the tax credit program. In a few weeks, our office will send you the necessary contract documents to finalize the terms and conditions of your company's participation in these financial assistance award programs. The contract documents must be signed by authorized representatives of Kunkel, Bounds & Associates, Inc., the City of Dubuque, and IDED. The Iowa Department of Economic Development looks forward to working with Kunkel, Bounds & Associates, Inc. and the City of Dubuque on this important economic development project. We are very pleased that you have chosen to make such a significant investment in Iowa. Should you have any questions regarding this award, please contact your project manager, Julie Cooper at 515/242-4872. Sincerely, ~Uw~ Director MUmm cc: Senator Michaal Connelly Represantativa Pat Murphy David Heiar, City of Dubuque Representative Pam Jochum Mayor Roy Buol, City of Dubuque IDEO IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT Mery l.ewyer, Dire.lllr . 200 Eas' Grand Avo""" Do. Moin.., Iowa 50309 USA . Phone: 515.242.4700 . fox: 515.242.4809 . wwwjow8lHacbanging..1lII1 JUL-31-2006 11:03 FROM: KUNKEL, 80UNDS & RSS 16089872310 TO: 15635891733 P.3 Sales and Use Tax Refunds As a participant in one of Iowa's tax credit programs (Enterprise Zone, High Quality Job Creation Program, New Capital Investment Program, or New Jobs and Income Program), you may be eligible to receive a refund of the sales, sarvice or use taxes paid during the construction phase of your project. To file a claim for a refund of sales/use taxas in Iowa, please utilize the following forms which can be found on the lowe Depertment of Revenue & Finances wabsite at hltDcllwww.state.ia.us/taxlforms/saies.html. Form lA-843 Claim for Refund This form is to be used for all purchases made directiy by the company for those goods and services that qualify for lows's general sales and use tax refund. Sales and use tax refunds on construction matl!rial and services must be daimed on the Construcfion Contract - Claim for Refund form. The Department of Revenue and Finance asks that companies that heve been approved for benefits under one of Iowa's tax credit programs and that are seeking sales and use tax refunds for gas. electric. water of sewer utility services used during the construction process to use Form IA-843 for those specific utility-related sales and use tax refunds. Please explain the kind of items being claimed in the "Reason for Refund Request" portion of the claim form and referenca the law undar which you are applying (I.e. 2005 Iowa Codas Section 15.331A, New Jobs and Income Program) and the Agreement Number givan to you by the Iowa Department of Economic Davelopmant (i.a. 2001-EZ-04). Also, per tha instructions on tha back of Form IA-843, ba sure to include copies of the invoicas or a schadule to support the daim. Form 35-003 Construction Contract -Claim lor Refund This form Is to be used for all construction projects related to seles and use tax refund claims involving a contractor or subcontractor. Use this form to raquest a refund of the Iowa sales and use tax paid by a construction contractor and their sub-contractors (if any) on lllOgible property which: 1) is used by said contractor and subcontractor In performance of a wr~ten construction contract with the progrllm participant; and 2) bacomes a component or intagrel part of the project described. On the "Description of Projecf' line Include the Agreement Number given to you by the Iowa Department of Economic Development (i.a. 2001-EZ-D4). A Contractor's Statement must be complated an(l attached. If you are your own contractor, a Contractor's Statement is still required. These claims are for those sales and use tax refunds described in the Iowa Coda Sections related to the applicable tax incentive program and must be filad within one (1) year aftar the final settlement (project completion) date of the projact. Form 35-o02a Iowa Contractor's Statement This form requires the oath to ba notarized by the contractor. If you note the Instructions on the back of the form, they should be adjusted to replace all references to "govamment body, private nonprofit educational institutions, or nonprofit museum" to the business participating In the tax credit program. II you are your own contractor, the same applies. It is very Important that all portions of tha Iowa Contractor's Statement be cOmpleted by the contractor prior to filing tha refund claim and ali portions of Form IA-843 and Construction Contract - Claim for Rafund be complated by the business eligibla to receive the refund to insure the claim can be processed in a timely manner. Only state sales taxes may be refunded under these programs. These programs do not cover local option sale. taxes. If you have any questions, please leel free to contact: Iowa Department of Revenue Help Line Talephone: Email: (515) 281-3114 or (800) 367-3366 idr@iowa.gov December 1, 2005 JUL-31-2006 11:03 FROM: KUNKEL. 80UNDS & RSS 16089872310 TO: 15635891733 P.4 -~-~ ~~- ~-------"----- IOWA I ,,1-,il"II:) July 13, 2006 Mr. Timothy J. Kunkel, President Kunkel. Bounds & Associates, Inc. 203 High Street Mineral Point, WI 53565 RE: Financial Assistance Program Awards Award Date: April 20. 2006 Contract: P0603M00866 Dear Mr. Kunkel: The Community Economic Betterment Account (CEBA) and High Quality Job Creation Program (HQJC) contract and promissory notes between Kunkel, Bounds & Associates, the City of Dubuque and the Department are enclosed. Please lake a moment to review them thoroughly. sign and forward all documenls to Mayor Roy Buol with the City of Dubuque (address below) for execution. The City, upon signing the aforementioned documents. will retum the contracts and related malerials to the Department. We will then sign them and retum executed copies to you and the City of Dubuque. Please note that the Iowa Economic Development Board adopted administrative rules effective July 7,2005 that require recipients to execute a contract with the Department within 120 days of the award date. Failure to do so may result in action by the Board to rescind the aw;trd. The 120- d;ty signing de;tdline for your aw;trd is August 18, 2006. Ple;tse retum the signed contract documents by this date. Should you have questions. ple;tse feel free to contact me at 515/242-4872. Sincerely, ~n~~ Project Manager Business Services cc: Mayor Roy Buol (letter only) City of Dubuque 50 W 13th Street Dubuque.IA 52001-4864 Bill Baum. City of Dubuque IDEO IOWA DEPARTMENT OF ECONOMIC DEVElDPMENT Mary Lawyer, Ilirecto, . 200 East Grand Au....' Des Moines.lowl 50309 USA . 1't1one: 515.242.4700 . Fax: 515.242.4809 . www.iowtlifochllllling.<OI11 JUL-31-2006 11:04 FROM: KUNKEL, BOUNDS & ASS 16089872310 TO: 15635B91733 P.5 . The fonn required for compliance indicated in ~.I(j) of the master contract (Authorization for Release of Confidential State Tax Information) is attacbed. . Attacbed is a checklist used by !DED fat verification of receipt of items required prior to disbursement. . To assist in complying with the requirement described in 5.1(i) of the master contrac~ attacbed is a listing indicating some of the technical assistance sources for both Bnergy Bfficiency Design and Management and Waste Reduction Design and Management. SOURCES OF TECHNICAL ASSISTANCE Energy Efficiency Design and Management -/ Department of Natural Resources Energy and Waste Management Bureau Wayne Gieselman, Administrator 900 East Grand Des Moines. lA 50319 515/281-5817 " Local utility company " Iowa State University Extension Center for Industrial Research and Service 222 Howe Hall, Suite 2620 Ames,lA 50010.2272 515/294-3420 with regional offICes In Cedar Rapid.. Council Bluffs, Davenport, Des Moines. 810m Lake. and Waterloo " Private energy management engineering and conservation consultants Waste Reduction Design and Management " Department of Natural Resources Energy and Waste Management Bweau Wayne Gieselman. Administrator 900 Bast Grand Des Moines, lA 50319 515/281-5918 www.iowadnr.comlenergy/index www.iowadnr.comlwastelindex University of Northern Iowa Iowa Waste Reduction Center Jo1m Konefes, Director 1005 Technology Parkway Cedar Falls, IA ~0613 3 I 9/273-8905 www.iwrc.org " Iowa State University Extension Center for Industrial Research and Service 2272 Howe Hall, Suite 2620 Ames, lA 50010-2272 5 I 5/294-3420 with regional office. in Cedar Rapids, Council Bluffs, Davenport. Des Moine.. Storm Lake. and Waterloo " Private environmental engineering consultants IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT Mal'! Lawyer,llirector _ 200 East GrandA_I, DesMoinas.lowa 50309 USA _ Phone: 515.242.4700 - FlII: 515.242.4809 - www.iowalifeeh8l1llir19.com TO: 15635891733 JUL-31-2006 11:04 FROM: KUNKEL, 80UNDS & ASS 16089872310 .-~".._ -'. -~--r,''''''---'-'-- ---:--"1""-, ]~ , Kunkel, Bounds & Associates; Inc. 0 ',Master Contract #P0603M00866.. . FundiIig Agreement #06:CEl3AlVFGF-037 , 06-HQJC-038 . .. --.,.,..-----... -_.'-.__.__._'------_.~--_." ~.....-- ---- _.._....__.._._-~,_._- .._'''_..- , _~c_____.,,_.__.... P.6 .\ " DOCUMENTS NEEDED FOR PROCESSING REQUESTS FOR DISBURSEMENT Master Contract Documents 5.1: Received o o o o o o o o o o Responsibility of: Fully executed Master Contract [95.1(a)] Certified copy ofthe corporation's Articles of Incorporation [95.1 (d)] Certificate of Corporate Existence from the Iowa Secretary of State f9S.1(e)] Results of Lien and Tax Search against the Business and Security Property [95.I(f)] Security Documents: personal guaranty (Tim Kunkel) and 2nd position on bldg mortgage [95.1 (g)] Solid and Hazardous Waste Reduction Plan. To comply with Iowa Code section 1 S-A.1 (3)"bU, (lfthe companydo,sn 'I halle hozardous waste, 'i1ey'lI slifl haw solid, i.e. wastepaper. They need to either use one of the conlaclJ provided with the Qward letter. or provide in-house audit results or proposal of all in-house audil). [95.1(i)] Signed Authorization for Release of Confidential Slate Tax Information form [95.I(j)] Documentation of satisfactory credit history of Business and guarantors [95.1(k)] Project Financial Commitments with a letter from each funding source to include amount, rate and terms [95.1(1)] Other Fund/nil Allreement Documents: o o o Fully executed Funding Agreement. [95.I(b)] Executed Promissory Note(s) [95.1(c)] (CEBA 7, I Only) Documentation showing consultation with Iowa Workforce Development to discuss employment services available "Other" Documents: Aprit2006 Signed Request for Disbursement Form (GAX) o o o W -9 form (Communities are a/rendy on the accouming syslem - W.911Ut1ed for 1Iew Bud1lus) Other Business. IDEO Business Business Business Business. IDEO Business Business lpED Business Business. IDEO Business Business Business. IDED Business JUL-31-2006 11:04 FROM: KUNKEL. 80UNDS & ~SS 16089872310 TO: 15635891733 P.7 Iowa Department of Economic Development 200 East Grand Avenue Des Moines, lA 50309 Phone: (515) 242-4882 Fax: (515) 242-4832 AUTHORIZATION FOR RELEASE OF CONFIDENTIAL STATE TAX INFORMATION The undersigned is a recipient of an award by the Iowa Economic Development Board and has entered into contract number P0603M00866 (the "Contract") with IDEO. The Contract requires the undersigned to annually submit certain state tax information to IDED for the purpose ofupdatillg the Public Return on Investment (ROI) model. To meet this obligation, the undersigned. hereby authorizes the Department of Revenue to . annually provide to IDEO state tax information in the file pertinent to this inquiry. This Authorization for Release of Confidential State Tax Information shall be valid for the duration of the Contract. State tax information authorized for release; (1) state income tax, (2) sales and use tax, (3) state tax credits claimed. Name of Taxpayer: Street Address: City, State, Zip Telephone Number: Email Address; Social Security Number: OR Employer Identification Number: Type of Entity: 0 Sole Proprietorship 0 Partnership [] S Corp 0 C Corp 0 LLC Signature of Taxpayer: Title (Required for partnerships and corporations') I Partnerships _ Only partners can authorize release of information. Corporations - Only corporate officers can authorize release of information. Revised 9104 JUL-31-2006 11:05 FROM: KUNKEL, 80UNDS & RSS 16089872310 TO: 15635891733 P.8 PERSONAL GUARANTY FOR VALUE RECEIVED and in consideration of any loan or other financial accommodation at any time made or granted to Kunkel. Bounds & Associates, Inc. ("Business"), by the Iowa Department of Economic Development ("Department"), the undersigned unconditionally guarantees the full and prompt payment when due, whether at stated maturity, by required prepaymcnt, declaration, demand, acceleration or otherwise (including amounts that would become due but for the operation of the automatic stay provision under 9362(a) ofthe Bankruptcy Code (11 U.S.C. 9362(a)), and at all times thereafter, of all the obligations of the Business to the Department which arise out of or in connection with CEBA Funding Agreement Number ~ CEBAIVFGF.037 (all such obligations of the Business hereafter collectively referred to as the "Liabili ties"). I. Absolute Guarantv. This Guaranty is an absolute, continuing, and unconditional Guaranty of the full and punctual payment by the Business of the Liabilities and not their collectibility only. Enforcement of this Guaranty is not conditioned upon the requirement that the Department first attempt to collect or take any action against the Business or any other person primarily or secondarily liable or resort to security or other means of obtaining payment of any of the Liabilities. The undersigned acknowledges that there are no conditions to the effectiveness of this Guaranty. This Guaranty shall remain in full force and effect (notwithstanding the dissolution of the undersigned) until all of the Liabilities have been paid in full. 2. Pavment. The undersigned agrees that, in the event of the dissolution or insolvency of the Business or the undersigned, or the general failure to pay, or admission in writing orthe inability of the Business or the undersigned to pay debts as they become due, or an assignment by the Business or the undersigned for the benefit of creditors, or the institution of any proceeding by or against the Business alleging that the Business or the undersigned is insolvent or unable to pay debts as they mature, or if the Business is declared in default under the above-identified CEBA Funding Agreement, the undersigned will pay (even ifsuch event shall occur at a time when any of the Liabilities may not then be due and payable) immediately to the Department at its office located at 200 East Grand Avenue. Des Moines, Iowa 50309, the full amount which would be payable hereunder by the undersigned as if all Liabilities were then due and payable. 3. Continuation or Reinstatement of Guarantv. If at any time all or part of any payment applied by the Department to any of the Liabilities is or must be rescinded or returned by the Department for any reason (including, but not limited to, the insolvency, bankruptcy or reorganization of the Business) the undersigned agrees that to the extent such payment is or must be rescinded or returned, such Liabilities shall be deemed to have continued in existence, notwithstanding such application by the Department, and this Guaranty shall continue to be effective or be reinstated, as the case may be, as to the Liabilities, all as though such application by the Department had not been made. 4. Modification. No modification or waiver of any ofthe provisions of this Guaranty shall be binding upon the Department and the undersigned unless expressly set forth in a writing duly signed by both the Department and the undersigned. Fmt, revised 3/06 JUL-31-2006 11:05 FROM: KUNKEL, 80UNDS & ASS 16089872310 TO: 15635891733 P.9 Page 2 00 Master Contract # P0603M00866 PERSONAL GUARANTY 5. Waivers. The undersigned hereby expressly waives: (a) notice of the acceptance by the Department of this Guaranty, (b) notice of the existence or creation or non-payment of all or any of the Liabilities', (c) presentment, demand, notice of dishonor, protest and all other notices whatsoever, and (d) all diligence in collection or protection of or realization upon the Liabilities or any thereof, any obligation hereunder, or any security for or Guaranty of any ofthe foregoing. 6. Dealinlls with the Business. The undersigned agrees that the Department shall be at liberty to deal with the Business and each other party (including, without limitation, any other guarantor) who now is or after the date hereof becomes liable in any marmer for any ofthe Liabilities, in such marmer as the Department in its sole discretion deems fit. The Department retains full authority, without the consent of, or notice to the undersigned, without incurring responsibility to the undersigned. without impairing or releasing the obligations of the undersigned hereunder, to do any or all of the following: (a) change the manner, rate of interest, place or terms of payment. and/or change or extend the time of payment of, renew or aller, any liability of the Business, any security therefor. or any liability incurred directly or indirectly in respect thereof, and this Guaranty shall apply to the Liabilities of the Business as so changed, extended, renewed or altered; (b) sell. exchange, release, surrender, realize upon or otherwise deal with in any manner and in any order any property by whomsoever at any time pledged or mortgaged to secure the Liabilities of the Business; (c) exercise or refrain from exercising any rights against the Business or others (including the undersigned) or otherwise act or refrain from acting; (d) settle or compromise any of the Liabilities hereby guaranteed; (e) subordinate the payment of all or any part of the Liabilities to the payment of any liability (whether due or not) of the Business to creditors of the Business other than the Department and the undersigned; and (f) consent to the substitution, exchanges, or release of all or any part of the collateral, whether or not the collateral, if any. received by the Department upon substitution, exchange, or release shall be of the same or of a different character or value than the collateral surrendered to the Department. 7. Access to Information. The undersigned hereby warrants to the Department that the undersigned now has and will continue to have independent means of obtaining information concerning the affairs, financial condition and operations of the Business. The Department shall not have any duty or responsibility to provide the undersigned with any credit or other information concerning the Business which may come into the Department's possession. 8. Successors. Assilll1s. This Guaranty shall be binding upon the undersigned, and upon any of his successors and assigns. If the Business is a partnership or a corporation, all references herein to Business shall be deemed to include any successor or successors to such partnership or corporation. 9. Governing Law. This Guaranty has been delivered at Des Moines, Iowa. and shall be construed in accordance with and governed by its principles of choice of law. Wherever possible each provision of this Guaranty shall be interpreted so that it is effective and valid under applicable law, but if any provision shall be prohibited by or invalid under such law, sllch provision shall be Prot. revitied 3/06 JUL-31-2006 11:06 FROM: KUNKEL, BOUNDS & ASS 160B9B72310 TO: 15635891733 P.10 Page 3 00 Master Contract # P0603M00866 PERSONAL GUARANTY ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of the provision or the remaining portions oftms Guaranty. It is understood that the liability of the undersigned to the Department is joint and several. The total amount of this Personal Guaranty shall not exceed seventy-five thousllnd dollars (575,000). SIGNED AND DELNERED THIS day of ,20_ GUARANTORS: (I) Tim Kunkel (Signature) Social Security Number: (Street Address) (City, State, ZJP) STATE OF IOWA COUNTY OF : ss. On tillS day of. 20_, before me, the undersigned, a Notary Public in and for the State oflowa, personally appeared Tim Kunkel to me personally known to be the identical person(s) named in and who executed the above and foregoing instrument and acknowledged that theylhelshe executed the same as theirlhislher voluntary act and deed. Notary (Signature) Notary Seal (commission number, name and expiration date): Fmt. revised 3/06 JUl-31-2005 11:07 FROM: KUNKEL. BOUNDS & ASS 160B9B72310 TO: 15635891733 P.ll MASTER CONTRACT BY AND BETWEEN Kunkel. Bounds & Associates. Inc. AND THE IOWA DEPARTMENT OF ECONONnC DEVELOPMENT CONTRACT NUMBER: P0603M00866 JUL-31-2006 11:09 FROM: KUNKEL. BOUNDS & RSS 16089B72310 TO: 15635891733 P.l TABLE OF CONTENTS ARTICLE 1. MASTER CONfRACT DURATION; FUNDING AGREEMENT DURATION ARTICLE 2. FUNDING Article 2.} Funding Sources Article 2.2 Reduction. Discontinuance or Alteration of Funding ARTICLE 3. CONTRACT STRuCTURE AND DEFINITIONS; DOcUMENTS INCORPORATED BY REFERENCE; ORDER OF PRIORITY Article 3.I Contract Structure and Definitions Article 3.2 Documents Incorporated by Reference Article 3.3 Business's Financial Assista1lce Application on File Article 3.4 Order of Priority ARTlCLE4. AWAnn Article 4.1 Description oflhe Project and Award Budget Article 4.2 Job Obligations Article 4.3 Repayment Obligation __ _ _ ~~. ~....."'''l'' '1Y\ nl"Rl TRSfiMENT OF FUNDS; DISBURSEMENT TERMS JUL-31-2005 11:12 FROM: KUNKEL. BOUNDS & ASS 15089872310 TO: 15535B91733 ARTICLE8. COVENANTS Article 8. / Article 8.2 Article 8.3 Article 8.4 Ar/icle 8.5 Arlicle 8.6 Article 8.7 Article 8.8 Article 8.9 Article 8./0 Article 8. / } Article 8./2 Article 8.13 Article 8.} 4 Article 8.15 Article 8.16 Article 8. } 7 Article 8. / 8 Ar/icle 8. /9 Main/ain Existence in Iowa Job Obligations Performance Obligations Main/enance of Properties Taxes and Assessments Insurance Required Reports /nspection and Audit Merger;;. Consolidulion;; and Sales Formation and Main/enance of Subsidiaries Compliance with Laws Use of Award Proceeds Changes in Business Ownership. Structure or Control Notice of Meetings No/ice of Proceedings Accounting Records Restrictions No Changes in Business Operations Indemnification ARTICLE 9. EVENTS OF DEFAULT AND REMEDIES Article 9. I Events of DefaulL Article 9.2 DefaulL Remedies Article 9.3 Default Interest Rate Artic/e 9.4 Expenses Article 9.5 No/ice of Defaul/ and Opportunity to Cure ARTICLE 10. MISCELLANEOUS Article 10. / Article 10.2 Article 10.3 Article /0.4 Article 10.5 Article 10. () Article 1 a. 7 Article 10.8 Article /0.9 Article 10.10 Article 10. / i Article 10.12 Article 10. /3 Article /0.14 Article 1 a. /5 Contract # P0603M00666 Timely Performance Stale of Iowa Recognition Choice of Law and Forum Governing Law Master ContracllFunding Agreement Amendments Nottces Headings Final Authority Waivers Counterparts Survival of Representations Severability of Provisions Successors and Assigns Termination Integration -3- P.l Me.t., upar.d Al3W05 JUL-31-2006 11:12 FROM: KUNKEL, 80UNDS & ASS 16089872310 TO: 15635891733 P.2 MASTER CONTRACT BUSINESS: MASTER CONTRACT NUMBER: AWARD DATE: Kunkel, Bounds & Associates, Inc. P0603M00866 April 20, 2006 This FINANCIAL ASSISTANCE CONTRACT (the "Master Contract") is made as of the CONTRACT EFFECTIVE DATE by and between the Iowa Department of Economic Development ("IDED"), 200 East Grand Avenue, Des Moines, IA 50309 and Kunkel, Bounds & Associates, Inc. a Wisconsin S-Corporation (..Bu.ln.....), 203 High Str..t, Mln.ral Point, Wi.consin 53565-1285. WHEREAS, the Business submitted an application to IDEO requesting financial assistance in the financing of its Project as more fully described in Exhibit C, Description of the Project and Award Budget, (the "Project"); and WHEREAS, the IDEO found the Project to meet the requirements established to receive financial as.istance; and WHEREAS, the IDEO and/or the Iowa Department of Economic Development Board ("IDEO Board") have awarded the Business financial assistance from one or more IDEO-administered programs for the Project, all of which are subject to the terms and conditions set forth herein and collectively referred to as the "Award"; and NOW THEREFORE, in consideration of the mutual promises contained herein and intending to be legally bound, the Business and IDEO agree to the following terms: ARTICLE I MASTER CONTRACT DURATION; FUNDING AGREEMENTS DURATION This Master Contract shall be in effect until all of Business's obligations and liabilities under this Master Contract and all of the Funding Agreements executed in connection with this Master Contract have been satisfied. The duration or each Funding Agreement will be as described in the Funding Agreement. ARTICLE 2 FUNDING 2.1 Fundin!! Sources. The sources of funding for this Award are appropriations 10 IDEO for fmancial assistance programs administered by the IDEO and tal( credit programs that IDEO is authorized to administer. 2.2 Reduction. Discontinuance or Alteration of Fundin!!. Any termination, reduction, or delay of funds available due, in whole or in part, to (i) lack of, reduction in, or a deappropriation of revenues previously appropriated by the legislature for this Award, or (ii) any other reason beyond the IDEO's control may, in the IDEO's discretion, result in the termination, reduction or delay of funds to the Business. Contract # P0603M00868 .4. Mllter updated 113005 JUL-31-2006 11:12 FROM,KUNKEL. 80UNDS & RSS 16089872310 TO: 15635891733 P.3 ARTICLE 3 CONTRACT STRUCTURE AND DEFINITIONS; DOCUMENTS INCORPORATED BY REFERENCE; AND ORDER OF PRIORITY 3.1 Contract Structure and Definitions. (a> This Award shall be governed by this Master Agreement and the individual funding agreements (the "Funding Agreements") for each source ofpr02fllm assistance for this Award. This Award has been provided to the Business to fund the Project described in Exhibit C. Description ofthe Projcct and Award Budget. The Articles of this Master Contract apply to each Funding Agreement unless a Funding Agreement specifically states otherwise. (b) The following terms apply to this Master Contract and each of the Funding Agreements, unless otherwise specified in a Funding Agreement: "Award Date"means the date first stated in this Master Contract and is the date the IDED and/or the IDEO Board approved the awarding of financial assistance to the Business for the Project. ..Bu..ine..... Employment Base" means the number of jobs as stated in Exhibit 0, Job Obligations that the Business and IDEO have established as the job base for this Project. The number of jobs the Business has pledged to create/retain shall be in addition to the Business's Employment Base. "Created Job.."means the number of new FTEJobs the Business will add over and above the Bnisiness's Employment Base and, if applicable, Statewide Employment Base. "Forgivable Loan" means a form of an award made by the IDEO to the Business under a Funding Agreement(s) for which repayment is eliminated in part or entirely if the Business satisfies the terms of this Contract and the Funding Agreement(s). "Full-time EquiWllent (FTE) Job" means the employment of one person: (a) For 8 hours per day for a 5-day. 40-hour workweek for 52 weeks per year, includinll paid holidays, vacations and other paid leave. or (b) For the number of hours or days per week, including paId holidays, vacations and other paid leave, currently established by schedule, custom. or otherwise. as constituting a week of full-time work for the kind of service an individual performs for an employing unit. "Job Main/enallCe Period" means the date two (2) years from the Project Completion Date as stated in Exhibit C, Description of the Project and Award Budget. The Business shall maintain the Project, and the ~reated/retained jobs through the Job Maintenance Period. "Job Obligahons" means the Created Jobs, Retained Jobs, Qualifying Johs and Non-qualifying Jobs associated with the Project that pay the wages and benefits. all as outlined in Exhibit D, Job Obligations. "Loan" means form of an award made by the IDEn to the Business under a Funding Agreement(s) for which full repayment is expected. "Non-IJualifyingjobs" are those jobs created or retained by the project that do not qualify for funding. but would not be created or retained if the Project did not proceed. Contract # P0803M00866 - 5- MoteT uptI,ted la'3(V05 JUL-31-2006 11:12 FROM: KUNKEL, BOUNDS & ~SS 16089872310 TO: 15635891733 P.4 "Project" means the description of the work and activities to be completed by the Busroess as outlined in Exhibit C, Description oflbe Project and Award Budget, and Exhibit A, Business's Financial Assistance Application. "Project Completion Date" means the date three (3) years from the Award Date as stated in Exhibit C, Description of the Project and Award Budget. The Project Completion Date is the date by which all Project activities shall be satisfactorily completed. "Stalewide Employment Base" means the number of jobs as stated in Exhibit D, Job Obligations tbat the Business and IDED have determined as those jobs that will be retained at other facilities in the state. The number of jobs the Business has pledged to create/retain shall be in addition to the Statewide Employment Base. "Qualifyingjobs" are those created or retained jobs that qualifY for program funding. 3.2 Documents Incoroorated bv Reference. The following documents are incorporated by reference and considered an integral part of this Master Contract: Exhibit A - Business's Financial Assistance Application, Application # 06-CEBA-037 and 06-HOJC-038 Exhibit B - Exhibit C . Exhibit D - Funding Agreements: B 1- CEBA Funding Agreement B5- HQJCP Funding Agreement Description of the Proj ect and Award Budget Job Obligations "Retained Job" means an existing job that would be eliminated or moved to another state if the project did not proceed in Iowa. 3.3 Business's Financial Assistance Aoolication on File. Due to its size, Exhibit A will not be attached to this Master Contract, but will be kept on file at the Iowa Department of Economic Development. It shall, nevertheless, be considered an incorporated element of this Master Contract and the FWlding Agreements. 3.4 Order of Priori tv. In the case of any inconsistency or conflict between the specific provisions of this document and the exhibits, the following order of priority shall control: (a) MnsterContract, Articles 1-10 (b) Exhibit B - Funding Agreements (c) Exhibit C - Description oftbe Project and Award Budget (d) Exhibit D - Job Obligations (e) Exhibit A - Business's Financial Assistance Application ARTICLE 4 A WARD 4.1 Descriotion of the Proiect and Award Budeet. The IDED andlor the IDED 130ard have approved an Award to the Business from the programs and in the amounts identified in Exhibit C, Description of the Project and Award Budget. The Project Budget for this Award is as detailed in Exhibit C. 4.2 Job Oblieations. The IDED andlor the IDED Board have approved an Award to the Contract # POB03M00888 - 6. Maller upttated SV3010S JUL-31-200611:13 FROM: KUNKEL, 80UNDS & ASS 16089872310 TO: 15635891733 P.5 Business and the Business' obligations for FIE Created Jobs, Retained Jobs. Qualifying Jobs and Non- qualifying Jobs are outlined in Exhibit D, Job Obligations. 4.3 Reoavment Obli2ation. The obligation to repay the direct financial assistance components of this Award shall be evidenced by Promissory Notes executed in connection with the Funding Agreements. ARTICLE 5 CONDITIONS TO DISBURSEMENT OF FUNDS; DISBURSEMENT TERMS The obligation of IDEO to make, continue or disburse funds under this Master Contract and the Funding Agreements shall be subject to the following conditions precedent: 5.1 Documents Submitted. IDEO shall have received each of the following documents, properly executed and completed, and approved by IDED as to form and substance: (a) Master Contract. Fully executed Master Contract. (b) Fundim! Af{Yeements Fully executed Funding Agreements. (c) Promissorv Notes. The Promissory Notes required by the Funding Agreements. (d) Articles of!ncorDoration. Copies of the articles of incorporation of the Business, certified in each instance by its secretary or assistant secretary. (e) Certificate of Coroorate Existence. A certificate of existence for the Business from the Office of the Secretary of State of Iowa. (I) Results of Lien and Tax Search. Financing statement, tax and judgment lien search res\llts, in the Business's state of incorporation/organization, against the Business and Secured Property. (g) SecurilV Documents. The fully executed Security Documents required in Article 6.0. (h) Other Reouired Document.. IDEO shall have received such other contracts, instruments. documents, certificates and opinions as the IDED may reasonably request. (i) Hazardous Waste Audit. To comply with Iowa Code section 15A.I(3)''b,'' if the Business generates solid or hazardous waste, it must either: a) submit a copy of the Business's existingin;house plan to reduce the amount of waste and safely dispose of the waste based on an in-house audit conducted within the past 3 years; or b) submit an outline of a plan to be developed in-house, or 3) submit documentation that the Business has authorized the Iowa Department of Natural Resources or Iowa Waste Reduction Center to conduct the audit. (j) Release Form - Confidential Tax Infonnatlon. A signed Authorization for Release of Confidential State Tax Infonnation form to permit IDEO to receive the Business's stale tax information directly from the Iowa Department of Revenue for purposes of annually updating the Iowa Public Return on Investment Analysis. (k) Satisfactorv Credit Historv. Documentation of satisfactory credit history of the Business and guarantors, as applicable, with no judgments or unsatisfied liens or similar adverse credit actions. Contract # P0603M00866 -7- M."er ~'ed a'3cwe' JUL-31-200611:13 FROM: KUNKEL, BOUNDS & ASS 16089872310 TO: 15635891733 P.6 (I) Proiect Financial Commitments. The Business shall have submitted a letter from thc funding sources identified in Exhibit C committing to the specified fmancial involvement in the Project and received the IDEO's approval of the letters of commitment. Each letter shall include the amount, terms and conditions of the financial commitment, as well as any applicable schedules. (m) Reauests for Disbursement. All disbursements of Award proceeds shall be subject to receipt by the IDEO of requests for disbursement, in form and content acceptable to IDEO, submitted by the Business. All requests shall include documentation of costs that have been paid or costs to be paid immediately upon receipt of Award proceeds. (n) Fundinlr Ap-eements Disbursement Reoulrements. Satisfaction of all disbursement requirements outlined in the specific program Funding Agreements. 5.2 Prior Costs. No expenditures made prior to the Award Date may be included as Project costs. This restriction applies to the direct financial assistance portions of this Award, not the tax credit benefits included in this Award. 5.3 Cost Variation In the event that the total Project cost is less than the amount specified in the Exhibit C, the Funding Agreements shall be reduced at the same ratio to the total Project cost reduction as the ratio of the Funding Agreement amount to the total amount of funds provided by the Business and all funding sources requiring a proportional reduction of their financial contribution to the Project. Any disbursed excess above the reduced IDEO participation amount shall be returned immediately to IDEO. 5.4 Susoension ofOisbursement. Upon the occurrence of an Event ofOefault (as defmed in this Master Contract or any ofthe Funding Agreements) by the Business, the IDEO may suspend payments and tax credit program benefits to the Business until such time as the default has been cured 10 IDEO'. satisfaction. Notwithstanding anything to the contrary in this Master Contract or the Funding Agreements, upon a termination of this Master Contract on account of an Event of Default by the Business, Business will no longer have the right to receive any disbursements or any tax credit program benefits after the effective date of default. All Award funds may also be suspended, in IDEO's sole discretion, m the event the Business experiences a layoff within the state ofIowa or closes any of its Iowa facilities. 5.5 Investment of Award Proceeds. (a) In the event that the Award proceeds are not immediately utilized, temporarily idle Award proceeds held by the Business may be invested prOvided such investments shall be in accordance with State law, including but not limited to the provisions of Iowa Code chapter 12C concerning the deposit of public funds. Interest accrued on temporarily idle Award proceeds held by the Business shall be credited to and expended on the Project prior to the expenditure of other A ward proceeds. (b) All proceeds remaining, including accrued interest, after all allowable Project costs have been paid or obligated shall be returned to the IDEO within thirtY (30) days after the Project Completion Date. Within ten (10) days of receipt ofa written request from IDEO, Business shall inform the IDEO in writing of the amount of unexpended Award funds in the Business's possession or under the Business's control, whether in the form of cash on hand. investments. or otherwise. Conlract # P0603M00866 -8. M.,ter upd,ted Rr'3Q105 JUL-31-2006 11:14 FROM: KUNKEL, BOUNDS & ASS 160B9B72310 TO: 15635891733 P.7 ARTICLE 6 SECURITY; CROSS-COLLATERALIZATION The Business shall execute in favor of the IDEO all security agreements, fmancing statements, mortgages, personal andlor corporate guarantees (the "Security Documents") as required by the IDEO. 6.1 Security. This Award shall be secured by: Second mortgage on project building and a personal guaranty (the "Secured Property") 6.2 Value of Collateral. The value, as reasonably determined by IDEO, of the Secured Property shall meet or exceed the amount of A ward funds disbursed. 6.3 Additional or Substitute Collateral. In case of a decline in the market value of the Secured Property, or any part thereof, IDED may require that additional or substitute collateral of quality and value satisfactory to IDEO be pledged as Secured Property for this Award. The Business shall provide such additional or substitute collateral Secured Property within 20 days of the date of the request for additional or substitute collateral to secure this Award in an amount equal to or greater than the amount of outstanding Award funds. ARTICLE 7 REPRESENTATIONS AND WARRANTIES The Business represents and warrants to IDED as follows: 7.1 Or@:anization and Oualifications. The Business is duly organized, validly existing and in good standing as a corporation under the state of its incorporation. The Business has full and adequate power to own its property and conduct its business as now conducted, and is duly licensed or qualified and in good standing in each jurisdiction in which the nature of the business conducted by it or the nature of the property owned or leased by it requires such licensing or qualifying, except where the failure to so qualify would not have a material adverse effect on the Business's ability to perform its obligations hereunder. 7.2 Authority and Validity ofOblil!ations. The Business has full right and authority to enter into this Master Contract and the Funding Agreements and to make the borrowings herein provided for. The perSon signing this Master Contract and the Funding Agreements has full authority to: a) sign this Master Contract and the Funding Agreements, and b) issue Promissory Notes on behalf of the Business, and c) secure Business's obligations under this Master Contract and the Funding Agreements, and d) perform each and all of the obligations under the Master Contract and its Funding Agreement. The Master Contract and Funding Agreement documents delivered by the Business have been duly authorized, executed and delivered by the Business and constitute the valid and binding obligations of the Business and enforceable against it in accordance with their terms. This Master Contract, the Funding Agreements and related documents do not contravene any provision oflaw or any judgment, injW1ction, order or decree binding upon the Business or any provision of the articles of organization or operating agreement of the Business, contravene or constitute a default under any covenant, indenture or contract of or effecting the Business or any of its properties. 7.3 Use of Proceeds. The Business hereby agrees to use Award proceeds only for the Project Contract # P0603MOO866 -9- Master updated W3G'05 JUL-31-2006 11:14 FROM: KUNKEL, BOUNDS & RSS 16089872310 TO: 15635891733 P.8 and for the activities described in Exhibit C, Description of the Project and Award Budget, this Master Contract and the Funding Agreements. Use of Award proceeds shall conform to the Budget for the Project as detailed in Exhibit C. The Business represents that there are legally enforceable commitments in place from the funding sources identified for the Project in Exhibit C. 7.4 Subsidiaries. The Business has no Subsidiaries on the Contract Effective Date. 7.5 Financial ReDorts. The balance sheet of the Business furnished to IDED as of the Contract Effective Date, fairly presents its financial condition as at said date in conformity with GAAP applied on a consistent basis. The Business has no contingent liabilities which are material to it, other than as indicated on such financial statements or, with respect to future periods, on the financial statements furnished to IDED. 7.6 No Material Adverse Chanl!e. Since the Award Date, there has been no change in the condition (fmancial or otherwise) or business prospects of the Business, except those occurring in the ordinary course of business, none of which individually or in the aggregate have been materially adverse. To the knowledge of the Business, there has been no material adverse change in the condition ofthe Business (financial or otherwise) or the business prospects of the Business 7.7 Full Disclosure: Business's Financial Assistance Aoolication. The statements and other information furnished to the IDED by Business in its Financial Assistance Application and in connection with the negotiation of this Master Contract and the Funding Agreements do not contain any untrue statements of a material fact or omit a material fact necessary to make the material statements contained herein or therein not misleading. The IDED acknowledges that as to any projections furnished to the IDED, the Business only represents that the same were prepared on the basis ofinforrnation and estimates it believed to be reasonable. 7.8 Trademarks. Franchises and Licenses. The Business owns, possesses, or has the right to use all necessary patents, licenses, franchises, trademarks, trade names, trade styles, copyrights, trade secrets, know how and confidential commercial and proprietary information to conduct its businesses as now conducted, without known conflict with any patent, license, franchise, trademark, trade name, trade style, copyright or other proprietary right of any other Person. As used in this Master Contract, "Person" means an individual, partnership, corporation, association, trust, unincorporated organization or any other entity or organization, including a government or agency or political subdivision thereof. 7.9 Governmental Authoritv and ticensing. The Business has received alllicel\SCS, permits, and approvals ofall Federal, state, local, and foreign governmental authorities, if any, necessary to conduct its businesses, in each case where the failure to obtain or maintain the same could Tcasonably be expected to have a material adverse effect. No investigation or proceeding which, if adversely determined, could reasonably be expected to result in revocation or denial of any rnateriallicense, permit, or approval is pending or, to the knowledge of the Business threatened. 7.10 Litil!ation and Other Controversies. There is no litigation or governmental proceeding pending, nor to the knowledge of the Business threatened, against the Business which if adversely determined would result in any material adverse change in the financial condition, Properties, business or operations of the Business, nor is the Business aware of any existing basis for any such litigation or governmental proceeding. , 7.11 Good Title. The Business has good and defensible title (or valid leasehold interests) to all of its Property (including, without limitation, the Secured Property) reflected on the most recent balance sheets furnished to the IDED (except for sales of assets in the ordinary course business). Contract # P0603M00866 -10- Maat,r upC1lJled WJIWS JUL-31-2006 11:15 FROM: KUNKEL, 80UNDS & ASS 16089872310 TO: 15635891733 P.9 7.12 Taxes. All tax retWlls required to be filed by the Business in any jurisdiction have, in fact, been filed, and all taxes, assessments, fees and other governmental charges upon the Business or upon any of its property, income or franchises, which are shown to be due and payable in such returns, have been paid, except such taxes, assessments, fees and governmental charges, if any, as are being contested in good faith and by appropriate proceedings which prevent enforcement of the matter under contest and as to which adequate reserves established in accordance with GAAP have been provided. The Business !mows of no proposed additional tax assessment against it for which adequate provisions in accordance with GAAP have not been made on its accounts. Adequate provisions in accordance with GAAP for taxes on the books of the Business have been made for all open years, and for their current fiscal period. 7.13 Other Contracts. The Business is not in default under the terms or any covenant, indenture or contract of or affecting either the Business or any of its properties, which default, if uncured, would have a material adverse effect on its financial condition, properties, business or operations. 7.14 No Default. No Default or Event of Default has occurred or is continuing. 7.15 Comoliance with Laws. The Business is in compliance with the requirements of all federal, state and local laws, rules and regulations applicable to or pertaining to the business operations of the Business and laws and regulations establishing quality criteria and standards for air, water, land and toxic or hazardous wastes or substances, non-compliance with which could have a material adverse effect on the financial condition, properties, business or operations of the Business. The Business has not received notice to the effect that its operations are not in compliance with any of the requirements of applicable federal, state or local environmental or health and safety statutes and regulations or are the subject of any governmental investigation evaluating whether any remedial action is needed to respond to a release ~f any toxic or hazardous waste or substance into the environment, which non-compliance or remedial action could have a material adverse effect on the financial condition, properties, business or operations of the Business. 7.16 Effective Date of Reoresentations and Warranties. The warranties and representations of this Artiele are made as of the Contract Effective Date and shall be deemed to be renewed and restated by the Business at the time each request for disbursement of fWlds is submitted to the IDEO. ARTICLE 8 COVENANTS The Business agrees that, for the duration of this Master Contract and the Funding Agreements; 8. I Maintain Existence in Iowa. The Business shall at all times preserve and maintain its existence as a corporation in good standing and maintain the Project in Iowa. The Business will preserve and keep in force and affect all licenses, permits, franchises, approval., patents, trademarks, trade names, trade styles, copyrights and other proprietary rights ne<;essary to the proper conduct of its respective business. 8.2 Job Oblil!ations. Ca) Jobs and Wages. By the Project Completion Date, the Business shall create/retain the number of FTE Created Jobs" Retained Jobs, Qualifying Jobs and Non-qualifying Jobs above the Business' Employment Base and, if applicable, the Sta/ewlde Employment Base, and maintain the jobs through the Job Maintenance Period, all as detailed in Exhibit D. The Bosiness shall pay the wage rates Contract 1/ P0603M00866 -11- Mealer upthtfJd Qr.JCV05 JUL-31-200611:16 FROM: KUNKEL. BOUNDS & ASS 16089872310 TO: 15635891733 P.10 I CEBA Funding Agreement Exhibit A2- Business's Promissory Note (Loan) PROMISSORY NOTE FOR VALUE RECEIVED, the undersigned promises to pay to the order of the row A DEPARTMENT OF ECONOMIC DEVEIJOPMENT. at its office at 200 East Grand. Des Moines, Iowa 50309, the sum of THIRTY SEVEN THOUSAND FIVE HUNDRED DOLLARS ($37,500) with interest thereon at ZERO PERCENT (0%) to be paid as follows: 60 monthly payments of $625.00 beginning on the first day of the fourth month from the date A ward funds are disbursed. Final payment may vary depending upon dales payments are received. Interest shall fltst be deducted from the payment and any balance shall be applied on principal. Upon default in payment of any interest, or any installment of principal. the whole amount then unpaid shall become immediately due and payable at the option of the holder. The undersigned, in case of suit on this note, agrees to pay on demand all costs of collection. maintenance of collateral, legal expenses, and attorneys' fees incurred or paid by the holder in collecting and/or enforcing this Note on default. This note shall be secured by the Security specified in the Contract. Makers, endorsers and sureties waive demand of payment. notice of non-payment, protest and notice. Sureties, endorsers and guarantors agree to all of the provisions oflhis note, and consent that the time or times of payment of all or any part hereof may be extended after maturity, from time to time, without notice. Kunkel, Bounds & Associates, IDC. By: Print or Type Name, Title Address: 203 High Street Mineral Point. WI 53565 Date JUL-31-2005 11:15 FROM'KUNKEL, 80UNDS & RSS 15089872310 TO: 15535891733 P.ll Business Job Shortfall Calculation ICEBAI Funding Aareement Exhibit B CEBA City of DubuaueIKunkel. Bounds & Associates. Inc. FUNDING AGREEMENT #: 06-CEBANFGF-037 $ 75.000 UFL I Anti120. 2006 ($37,5000% Loan, $37,500 Forgivable Loan) A. FORON ABLE LOAN - JOB SHORTFALL CALCULATION 50 jobs pledged, 42 jobs attained; 84% of pledged jobs attained, 16 % shortfall $75,000 (forgivable loan amount) X 16% = $12,000 Forgivable Loan Job Sbortfan Balance due = $12.000 B. FORGIVABLE LOAN - INTEREST PENAL TV CALCULA nON CEBA funds disbursed on 11.1-00. Project Completion Date was 6.30-03. Interest penalty - job shortfall balance x 6% x number of years from disbursement of funds to Project Completion Date ($12,000 x 6% x 2.67 years) = $1,922.40 Forgivable Loan Net Interest Penally due = $1.922.40 C. LOAN BALANCE INTEREST PENAL TV CALCULATIONS Loan balance as of7.21-05 - 515.797.58 84% of remaining loan balance stays at 0% interest = ($15,797.58 x .84) = $13.269.97 16% of remaining loan balance changes to 6% interest = ($15.797.58 x .16) = $2.527.61 Imerest penalty = 16% of remaining loan balance x 6% x 2.67 years ($2.527.61 x 6% x 2.67 years) = $404.92 LoaD Net Interest Penally due = $404.92 D. REPAYMENT TERMS & SCHEDULE 1. Total Net Interest Penalty due is 51.317.31 ($1,922.40 t 5404.92). 2. Total Forgivable Loan amount due is 511.000. 3. Remaining Loan Balance as of 7-21-05 will be 515.797.58 and will be re-amortized to convert 16% of that balance to 6% interest over remaining term ofloan MlJSlCr FA ExhibilB updaJed 12.30-05 JUL-31-200511'15 FROM,KUNKEL. 80UNDS & ASS 15089872310 TO: 15535891733 P.12 EXHBIT B - 5 I HQJCP FUNDING AGREEMENT I BUSINESS: COMMUNITY: Kunkel. Bounds & Associates. Inc. City of DubuQue MASTER CONTRACT NUMBER: FUNDING AGREEMENT NUMBER: JOB CREATION PERIOD: JOB MAINTENANCE PERIOD: P0603M00866 06-HQJCP-038 Mav31.2011 Mav 31.2013 THIS HIGH QUALITY JOB CREATION PROGRAM (HQJCP) FUNDING AGREEMENT is made by and among the IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT. 200 East Grand Avenue. Des Moines, Iowa 50309 ("IDEO"), the business identified above ("Business"). and the community identified above ("Community"), effective as of the Contract Effective Date stated in .the Master Contract identified above. WHEREAS, the Department has found the Business' application to be consistent with the requirements of the Act and the administrative rules adopted by the Department for the HQJCP - 261 Iowa Administrative Code, Chapter 68; and WHEREAS, the Business has been approved by the Department to receive certain tax incentives and assistance; and WHEREAS, the Business has executed the Master Contract described above with the IDEO pursuant to an Award on the Award Date stated in the Master Contract to the Business for the Project; and WHEREAS. the Master Contract specifies that for each program funding source the IDEO and the Business shall enter into a Funding Agreement; and WHEREAS, this HQJCP Funding Agreement contains additional terms and conditions for the award of HQJCP benefits; and NOW. THEREFORE. the Business and Community accept the teorns and conditions set forth in this HQJCP Funding Agreement and the Master Contract for the funding of the Project. In consideration of the mutual promises contained in the Master Contract and this HQJCP Funding Agreement and other good and valuable consideration, it is agreed as follows: 1.0 Master Contract. Unless otherwise specified in this HOJCP Funding Agreement, the definitions. teorns, conditions. and provisions contained in the Master Contract are applicable to this HOJCP Funding Agreement. The following provisions in the Master Contract do not apply to this HQJCP Funding Agreement: Article 3.1(b) - Definition of "Project Completion Date" and "Job Maintenance Period." [The HQJC program has different time periods for these activities.] JUL-31-2006 11:17 FROM: KUNKEL. BOUNDS & ASS 16089B72310 TO: 1 5635B91 733 P.13 Article 4.3 - Repayment obligation. [No promissory note required for tax credits.] Article 5. 1 (c) - Promissory Notes. [Execution of note is not a condition precedent to receipt of tax credit benefits] Article 5.1(g) - Security Documents. [Execution of Security Documents is not a condition precedent to receipt of tax credit benefits). Article 5.1(m) - Requests for disbursement. [Not required for tax credit program benefits.] Article 5.2 - Prior costs. [Not applicable to tax credit program benefits.] Article 5.3 - Cost variation. [Not applicable to tax credit program benefits.] Article 5.5- Investment of Award Proceeds. [No proceeds in tax credit programs.] Article 6 - Security, Cross-collateralization. . [Not applicable to tax credit program benefits.] Article 9.1(8) - Nonpayment as an Event of Default. [Not applicable because there are no loan payments in tax credit programs]. Article 9. 1 (c) - Noncompliance with Security Documents as an Event of Default. [Not applicable because there are no Security Documents required in tax credit programs]. Article 9. 1(g) - Lien Deficiencies as an Event of Default. [Not applicable because there are no Security Documents required in tax credit programs.] 2.0 Definitions. As used in this HQJCP Funding Agreement, the following terms shall apply: 2.1 Aareement Exalratlon Date. Expiration of this HQJCP Funding Agreement occurs upon the happening of one of the following events, whichever occurs first: (a) IOEO's detennination that the Business has fully met the requirements of the HQJCP Funding Agreement, including meeting its job creation and maintenance requirements, and IDEO closes out this HQJCP Funding Agreement. (b) An Event of Default occurs that is not remedied within the time period allowed under the Master Contract. (c) This HQJCP Funding Agreement is terminated upon mutual, written agreement of the Business. the Community and IDEO. 2.2 HQJCP. "HQJCP" means the High Quality Job Creation Program. The HQJCP Is authorized by 2005 Iowa Acts, House File 666. 2.3 HQJCP Award. "HQJCP Award" means IDEO's approval of the Business's Financial Assistance Application for the Project. This HQJCP Award authorizes the Business to receive HQJCP Program benefits. 2.4 Averaae County Waae. "Average County Wage" means the average the Department calculates using the most current four quarters of wage and employment Master Contract # P0603M00866 Funding Agreement # 06.HQJCP..Q38 -2- MasterPA upd<<ed 1111(]/(ffl JUL-31-2005 11:17 FROM: KUNKEL, BOUNDS & ASS 15089872310 TO: 15535891733 P.14 information as provided in the Quarterly Covered Wage and Employment Data report as provided by the Iowa department of workforce development. Agricultural/mining and governmental employment categories are deleted in compiling the wage information. 2.5 'Annual Base Rent". 'Annual Base Rent' means the Business' annual lease payment minus taxes, insurance, and operating or maintenance expenses. 2.6 Full.time EQuivalent (FTEl Job. "Full-time Equivalent (FTE) Job' means the employment of one person; (a) For 8 hours per day for a 5-day, 40-hour workweek for 52 weeks per year, including paid holidays. vacations and other paid leave, or (b) For the number of hours or days per week, including paid holidays, vacations and other paid leave, currently established by schedule, custom, or otherwise, as constituting a week of full-time work for the kind of service an Individual performs for an employing uni!. 2.7 Hiah Quality Jobs. "High Quality Jobs" means created jobs that, at minimum. have a starting wage including benefits equal to or greater than $19.81 ,as shown in Master Contract Exhibit D. Job Obligations. 2.8 Proiect. 'Project" means the detailed description of the work, services, and other obligations to be performed or accomplished by the Business and Community as described in the Master Agreement Exhibit C (Description of Project and Award Budget) and Master Agreement Exhibit A (Business's Financial Assistance Application) for which the Business has been approved to receive certain tax credit benefits. 2.9 Proiect Completion Date. 'Project Completion Date" means (1) for new manufacturing facilities. the first date upon which the average annualized production of finished product for the preceding ninety-clay period at the manufacturing facility operated by the Business is at least fifty percent of the initial design capacity of the facility; or (2) for existing or non-manufacturing facilities, the date of completion of all Improvements necessllry for the start- up. location, expllnsion or modernization of business. This definition of 'Project Completion Date' is only used for purposes of claiming the refund of sales, service and use taxes or the corporate tax credit for certain sales taxes paid, if applicable. 2.10 'Proiect Jobs' means the number of new Full-time Equivalent (FTE) Jobs created by the location or expansion of the Business in the High Quality Job Creation Program, as shown in Master Contract Exhibit D. 3,0 High Quality Job Creation Program Benefits. 3.1 Benefits Available. The following High Quality Job Creation Program benefits lire available to the Business under this HQJCP Funding Agreement; (a) Investment Tax Credit. (i) The Business may claim an investment tax credit as provided in Iowa Code section 15.333. An investment tax credit may be claimed up to 5% of the qualifying expenditures. as defined below in subparagraph (Iv), directly related to new jobS created by the start-up. location. expansion, or modernization of the Master Contract II P0603M00866 FUnding Agreement II 06-HQJCP.Q38 .3. Master FA update" 1 f"Q1(J5 JUL-31-2006 11:18 FROM: KUNKEL. BOUNDS & ASS 15089872310 TO: 15535891733 P.15 approved busIness under the program. The Business shall not claim an investment tax credit in excess of $72.850 or as reflected in the final award amount that is approved by the Department at the conclusion of the Project. The credit is to be taken in the year the qualifying asset is placed in service. Any credit in excess of the tax liability for the tax year may be credited to the tax liability for the following seven years or until depleted, whichever occurs first. (ii) The tax credit shall be amortized equally over a five-year period which the Department will, in consultation with the eligible business. define. The five-year amortization period Is specified below: Amortization Schedule Jul 1. 2005-June 30 2006 $14,570 Jul 1. 2006-June30 2007 $14570 Jul 1. 2007 - June 30 2008 $14,570 JuI1.2008-June30.2009 $14,570 Jul 1. 2009 - June 30 2010 $14.570 (iii) HQJCP Funding Agreement Exhibit A. "Investment Tax Credit Amortizetion Schedule Examples: illustrates how the 5-year amortization requirement will be applied. (iv) The qualifying expenditures eligible for the investment tax credit are: 1. The purchase price of real property and any buildings and structures located on the real property. 2. The cost of improvements made to real property which is used in operation of the Business. 3. The costs of machinery and equipment. as defined in Iowa Code sllction 427A.1(1) "e" and "j." purchased for use in the operation of the approved Business and which the purchase price have been depreciated in accordance with generally accepted accounting principles. 4. The Annual Base Rent paid to a third-party developer by an approved Business for a periOd equal to the term of the lease agreement but not to exceed the maximum term of the agreement, provided the cumulative cost of the base rent payments for that period does not exceed the cost of the land the third-party developer's costs to build or renovate the building for the approved Business. Annual base tent shall only be considered when the project includes the construction of a new building or the major renovation of an existing building. The approved Business shall enter into a lease agreement with the third-party developer for a minimum of five years. (b) Refund Of Safes. Service And Use Taxes Paid To Contractors Or Subcontractors. The Business is eligible for a refund of sales, service and use taxes paid to contractors and subcontractors as autihoriled in Iowa Code section 15.331A. (i) The Business may apply for a refund of the sales and use taxes paid under Iowa Code chapters 422 and 423 for gas. electricity, water or sewer utility services. Master Contract # P0603M00866 Funding Agreement # 06-HQJCP..o38 -4- Mas!", FA uptlBled 1 "'~ JUL-31-2006 11:19 FROM: KUNKEL, BOUNDS & ASS 16089872310 TO: 15635B91733 P.l goods. wares, or merchandise. or on services rendered, furnished, or performed to or for a contractor or subcontractor and used in the fulfillment of a written contract relating to the construction or equipping of a facility of the approved business. (ii) Taxes attributable to intangible property and furniture and furnishings shall not be refunded. (iii) To receive a refund of the sales, service and use taxes paid to contractors or subcontractors, the Business must, within one year after Project Completion, make an application to the Department of Revenue. 3.3 Benefits Not Available. The following High Quality Job Creation Program benefits are not available to the Business under this agreement: (a) Additional Research Activities Credit. (b) Refund of Taxes Attributable to Racks. ShelvinQ, and Convevor Eauioment. (c) Comarate tax credit for certain sales taxes oaid bv third oartv deve/ooer. (d) Value-Added Prooertv Tax Exemotion. 4.0 Conditions to Receipt of High Quality Job Creation Program Benefits. The High Quality Job Creation Program Benefits authorized under this HQJCP Funding Agreement are available to the Business provided the Business, (and where applicable. the Community) satisfies each of the following conditions: 4.1 Job Oblioations. The Business's Job Obligations are as detailed in Master Contract Exhibit 0, "Job Obligations." The Business shall create the Project Jobs within 5 years (the "Job C,eaUon Period') of the Effective Date (defined in the Master Contract). The Business shall maintain the Project Jobs for a period of at least two (2) years (the "Job Maintenance Period') beyond the Job Creation Period. for a total contract duration of 7 years. 4.2 Qualifvina Investment. Within five (5) years of the Effective Date (as defined in the Master Agreement), the Business shall make a qualifying Investment of $1 ,451,000. A "qualifying investment" means an investment in real property including the purchase price of land and existing buildings and structures; site preparation; improvements to real property; building construction; long-term lease costs; andior depreciable assets. 4.3 Reauired Elements. (a) Offer a pension or profit sharing plan to fulI.time employees. (b) Produce or manufacture high value-added goods or service or be in one of the state's targeted industries.: Insurance and financial services. (c) Provide and pay 60% of the cost of a standard medical and dental insurance plan for all full-time employees at the facility In which the project will occur. (d) Invest annually no less than 1 % of pretax profits from the facility located to Iowa or expanded under the program in worker training and skills enhancement. Master Contract # P0603MOOBB6 FUnding Agreement # 06-HQJCP-036 -5- Master FA upt$ated 1111Q.()5 JUL-31-2006 11:19 FROM: KUNKEL. BOUNDS & ASS 160B9872310 TO: 15635891733 P.2 4.4 Business Retention. The Business shall have and maintain Project operations contemplated by this Agreement within the Community alleast through the Agreement Expiration Date. 5.0 Events of Default: Notice of Default; Repayment Provisions. 5.1 Events of Default. The terms of the Master Contract regarding Events of Default and Remedies govem this HQJCP Funding Agreement. 5.2 Notice of Default. The following Notice of Default provisions supersede the Notice of Default provisions specified in the Master Contract: (a) From DeDarlment. If. through the annual certification report or other means, the IDEO has reason to believe the Business is in default of the terms of this Agreement, the IDEO will issue a written notice of default to the Business, setting forth the nature of the default In reasonable specificity, and providing therein a reasonable period of time. which shall not be less than 30 days from the date of the notice of default. in which the Business shall have an opportunity to cure, provided that cure is possible and feasible. A copy of any Notice of Default will also be provided to the Community and Department of Revenue. (b) From CommunitY. If, through monitoring, auditing or other means, the Community has reason to believe the Business is in default of the terms of this Agreement. the Community will issue a written notice of default to the Business, setting forth the nature of the default in reasonable specificity, and providing therein a reasonable period of time, which shall not be less than 30 days from the date of the notice of default, in which the Business shalt have an opportunity to cure, provided that cure Is poSSible and feasible. A copy of any Notice of Default will also be provided to the IDEO and Department of Revenue. 5.3 ReDavment Provisions. If the Business has received incentives or assistance under the HQJCP Program and fails to meet and maintain anyone of the requirements of the HQJCP Program, the HQJCP Program Administrative Rules or any term of this HQJCP Funding Agreement, the Business is subject to repayment of all or a portion of the incentives and assistance that it has received, as detailed below: (a) Job maintenance. If the approved Business fails to maintain the required number of created or retained jobs or both as defined in Masler Contract Exhibit D and the final award documentation, the Business shall repay a percentage of the tax incentives and assistance that it has received. The repayment percentage will be equal 10 the percentage of jobs that the approved Business failed to maintain. (b) Reauired elements. If the approved Business fails to meet the four required elements stated in Article 4.4 in anyone year, the Business must meet that requirement in the following year or repay all the tax incentives and assistance that it has received. (c) Sellina. disoosina. or razina of DroDertv. If, within five years of purchase, the approved Business sells. disposes of. razes, or otherwise renders unusable all or a part of the land. building, or other existing structures for which an investment tax credit or insurance premium tax credit was claimed, the income tax liability of the approved Business for the year in which all or part of the property is sold, disposed of, razed, or otherwise rendered unusable shall be increased by one of the following amounts: Master Contract # POe03MO0866 Funding Agreement # Oa-HQJCP-038 -6- Mntftr FA updoted f 1/10105 JUL-31-2006 11:20 FROM: KUNKEL, BOUNDS & ASS 16089872310 TO: 15635891733 P.3 (1) One hundred percent of the tax credit claimed if the property ceases to be approved for the tax credit within one full year after being placed in service. (2) Eighty percent of the tax credit claimed if the property ceases to be approved for the tax credit within two full years after being placed in service. (3) Sixty percent of the tax credit claimed if the property ceases to be approved for the tax credit within three full years after being placed in service. {4} Forty percent of the tax credit claimed if the property ceases to be approved for the tax credit within four full years after being placed in service . (5) Twenty percent of the tax credit claimed if the property ceases to be approved for the tax credit within fIVe full years after being placed in service. (d) Averaae Waae Shortfall. At the end of the project if the average wage for all the project jobs is not mel. jobs not meeting the starting wages in Exhibit D will not be counted toward the total job obligation. {el Lavoffs or closures. If an approved Business experiences a layoff within the state or closes any of its facilities within the state prior to receiving the tax incentives and assistance, the Department may reduce or eliminate all or a portion of the tax incentives and assistance. If an approved Business experiences a layoff within the state or closes any of its facilities within the state after receiving tax incentives and assistance, the Business may be subject to repayment of all or a portion of the tax incentives and assistance that it has received. {f} Deoarlment of Revenue: Communitv Recoverv. Once it has been established. through the Business' annual certification. monitoring. audit or otherwise, that the Business is required to repay all or a portion of the incentives received, the Department of Revenue and the Community shall collect the amount owed. The Community has the authority, pursuant to the HOJCP Program. to take action to recover the value of taxes not collected as a result of the exemption provided by the Community to the Business. Department of Revenue has the authority. pursuant to the HOJCP Program, to recover the value of state taxes or incentives provided under the HQJCP Program. The value of state incentives provided under the HQJCP Program includes applicable interest and penalties. 6.0 Final Award Amount. 6.1 Submit Final Numbers Within 12 Months. The approved Business shall, upon satisfaction of the requirements stated In Article 4.0, submit to the Department information on the final created jobs, including starting wages and benefit values. and the final qualifying investment. This submission must be in writing on the form provided by the Department and must be received by the Department within 12 months of completion of the project and the creation of the jobs. Upon receipt of the completed form. the Department shall review and confirm the information and shall prepare the final award amounts based on the final results. Final award amounts may still be subject to certain limitations put in place when the initial award was made. Master Contract # P0603M00666 Funding Agreement # 06-HQJCP.Q36 .7. Mastel FA IJpdaled 11/1005 JUl-31-2006 11:20 FROM: KUNKEL. BOUNDS & ASS 15089872310 TO: 15535891733 P.4 6.2 Reoavment If Claimed Credits Exceed Final Award Amount. If, upon receipt of the final award amount from the Department. the Department of revenue detemnines that the approved Business has claimed tax incentives and assistance in amounts that exceed the amounts stipulated in the final award, the approved Business shall be required to repay any tax credits and refunds it received in excess of the final award amounts. The Department of Revenue shall have the authority to collect the amount to be repaid to the state including interest and penalties. 7.0 Incorporated documents. reference: 1. 2. The following documents are hereby incorporated by this The Master Contract number and its Exhibits. HOJCP Funding Agreement Exhibit A, "Investment Tax Credit Amortization Schedule Examples." IN WITNESS WHEREOF, the parties have executed this HOJCP Funding Agreement: BUSINESS; BY: Signature Typed Name and Title Date IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT: BY: Mary Lawyer, Director Date COMMUNITY: BY: Signature Typed Name and Title Date Master Contract # P0603MOOse8 Funding Agreement # 06-HQJCP-038 -8- M~fFA IIfJdated 11/10105 JUL-31-2006 11:21 FROM: KUNKEL. BOUNDS & R55 16089872310 TO: 15635891733 HOle Funding Agreement Exhibit A Investment Tax Credit Amortization Schedule Examples P.5 JUL-31-2005 11'21 FROM'KUNKEL, BOUNDS & ASS 15089872310 TO: 15535891733 P.5 (HQJCPI Fundina Agreement Exhibit A Investment Tax Credit Amortization Scbedule Examples Background Information: Effective July I, 2005, Investment Tax Credits (or Insurance Premium Tax Credits) awarded to a Business by the Iowa Department of Economic Developmenl must be amortjzed equally over a 5-year period. The Department will determine the amortization schedule and include it in the Business' funding agreement. Please note Investment Tax Credits (or Insurance Premium Tax Credits) are earned when the corresponding assel (e.g. the building, a piece of machinery & equipment, elc.) is placed in service. "Placed in service" typically corresponds with the point in time when the Business can start depreciating the asset for tax purposes. Earned Investment Tax Credits (or Insurance Premium Tax Credits) which cannot be used because of the amornzationschedule or because the credits exceed the Business' tax liability for that tax year maybe canied forward for up to seven additional tax years. Example #1 In this example, the Business is eligible to receive an Inveslment Tax Credit (ITC) in the amount of$IOO,OOO. The ITC is earned on December IS, 2005 and maybe carried forward until the tax year in which December 15,2012 rails. The Business' lTC amortizaliun schedule follows; Fiscal Vear 2006 - July I, 2005 - June 30, 2006 Fiscal Vear 2007 - July I, 2006 - June 30, 2007 Fiscal Vear 2008 - July 1, 2007 - June 30, 2008 Fiscal Vear 2009 - July I, 200g - June 30, 2009 Fiscal Vear 2010 - July I, 2009 - Juo030, 2010 S20,OOO 520,000 $20,000 $20,000 $20,000 As the ITC was earned in the fir:;t year, the Business may claim up to $20,000 on its tax return for that tax year. The Business' tax liability for that tax year is SI5,OOO therefore; the Business will carry forward $5,000 ofuoused credits. ITe Earned - Tolal SIOO,Ooo ITC Available to be Taken based on the Amortization Schedule Less ITC Claimed on Current Vear'~ Tax Return lTC to be Carried Forward into Future Tsx Vear $20,000 (FY 2006) SI5.000 $ 5,000 The following year the Business may claim up to $25,000 in rrcs on its tsx return; S5,OOO being carried forward from last year plus another $20,000 based on the amortization schedule. The Business' tax liability fnr the current tax year is 525,000. ITC Earned - Total Less ITC Claimed to Dale ITC Remaining - Total $100,000 5 15.000 $ 85.000 ITC Available to be Taken based on the Amortization Schedule Plus ITC Carried Forward from Previous Vear Less ITC Claimed on Current Year's Tax Return ITC to be Carried F01Ward into FutW'e Tax Year 520,000 (FY 2007) 5 5,000 S2S 000 $ 0 September 14, 2005 JUL-31-2006 11:21 FROM: KUNKEL, 80UNOS & ASS 16089872310 TO: 15635891733 P.7 The Business would be able 10 continue to take tax credits based on the amortizalion schedule and its tax liability each year. Ifthis example were 10 continue, the tax credits could continue to be claimed until they are exhausled or until the carry forward period expires in the tax year in which December 15,2012 falls. Example #2 In lhis example, Ihe Business i. etigible to receive an InveSlmenl Tax Credil (ITC) in the amount on500,OOO. The ITC is earned on February IS, 2008 and may be carried forward until the tax year in which February IS, 2015 falls. The Business' rrc amortization schedule follows: Fiscal Vear 2006 - July I, 2005 -June 30, 2006 Fiscal Vear 2007 - July I, 2006 - June 30, 2007 Fiscal Vear 2008 - July I, 2007 - June 30, 2008 Fiscal Vear 2009 - July I, 2008 - June 30, 2009 Fiscal Vear 2010 - July I, 2009 - June 30, 2010 5100,000 $100,000 sloo,ono SIOO,OOO Sloo,OOO As the ITC was earned in the third year of the amnrtizalion schedule, Ihe Business may claim up to 5300,000 on its lax return for Ihat tax year ($100,000 per year for 3 years). The Business' taX liability for Ihat tax year is 550,000 therefore; the Business will carry forward 5250,000 of unused credits. ITC Earned - Tolal 5500,000 $300,000 (FY 2006 - FY 2008) 5 50.000 $250,000 ITC Available to be Taken based on the Amortization Schedule Less ITC Claimed on Current Year'. Tax Return ITC to be Carried Forward into Future Tax Year The following year the Business may claim up 10 $350,000 in ITCs on its tax return; 5250,000 being carried forward from last year plus another 5100,000 based on tho amortizalion schedulo. The Business' lax liability for the cunent tax year is $60,000. ITC Earned - T 0la1 Less ITC Claimed \0 Date ITC Remaining. Total $500,000 5 50.000 $450,000 $100,000 (FY 2009) 5250,000 $ 60.000 5290,000 ITC Available to be Taken based on the Amortization Schedule Plus 1TC Carried Forward from Previous Year Less ITC Claimed on Current Yearts Tax Return ITC to be Carried Forward inlo Furore Tax Year The following year the Busine.. may claim up to 5390,000 in ITC. on its lax return; 5290,000 being carried forward from last year plus another SIOO,ooo based on the amortization schedule. The Business' lax liability for the cunent tax year is 550,000. ITC Earned - Total Less ITC Claimed to Date ITC Remaining - Tolal 5500,000 S110.000 $390,000 5100,000 (FY 2010) $290,000 5 50.000 S340,OOO ITC Available to bo Taken based 011 the Amortization Schedule Plus ITC Cl'lrried Forward from Previous Year Less ITC Claimed on Current Vear's Tax RelUm ITC to be Carried Forward into Future Tax Vear After FY 2010, the Busine.. is no longer subject to !he amortization schedule and therefore, il would be able to continue to lake tax credils based on its tax liability each year. If this example were to conlinue, the tax credits could continue to be claimed until they are exhausted or until the carry fonvard period expires in the tax year in which February 15,2015 fan.. September 14, ZOOS JUL-31-2005 11:22 FROM: KUNKEL. 8oUNoS & RSS 15089872310 TO: 15635891733 '"'' ,=""'""....c_,.,=".-~"'.~"':,"~ ,._.,=~,,:. "-,,,.. , ,~,,,,,-"'-',;, ",,"."'---<~~_:'~'."'- " "-,-="- "".=""~_._'-",--, DESCRIPTION OF THE PROJECT AND AWARD BUDGET (EXHIBIT C) Name 0' Business: Kunkel. Bounds. & Aqoclates 1 Controct Number: PD603MOOBBB L'_,"____~O__ , '._."'''.___.__,,_,.'''.. "_.,_~""",_,"_,,,..______'_...,, P.8 .----'j ! r ",________,.._.._J =--_,_""_",~--"--,,,,,,,,,,,,,-,,~-,g"-,,,,",, ..".-,.~_.........~-"..-~".~~-~~~,',y'''-~---~ ~ "i i PROJECT DESCRIPTION ! "~::I, ~::n:'~-& ::;:'~:;':=~'he~':::'::;;':'~':~~::a::~,nt, ~ise::~~::;u:-.: --..-..---......, lconsltuct a 10.000 s.f. ortl<;e spe<;e. The prOjecl involves land acquisition, building conwuction, computer hardware ~ Eand software purchases, furniture and tiKture purchales, and job training. The Business wtll create 24 full time I .~equivalent poSItions as a result of Ihis projeCt. , , ;,Projecl Completion Oate: 'jOb Maintenance Period: I-....._.-..~._-"..,_'"'_:, ~ T.> CERA 5=lmnl'2n'i f.4O.tc Pmaram May31,2009 May 31. 2011 May31, 2011 May 31, 2013 ~:_~-'-'-"~-"'-"'''""~=.,.,."'--'''""'~...,..,,-------.,,--~-...~~""",,,.,,,-,,-_.. . " , i , ! ~"~.., __.__.-,_..,,,_~_.,.....J -'1"~ '--"'-I- ---I ""~- --~--- - .:.~.".~r.,ooo,' ~ ".".;~,QOO'. .~O<>\OQO 1" "llOl/1lO>' "$2ooiOl>>i i' ~.;.~.'..",.~. .:000. 'I r::.':: : , I >\.~ ,.'\ i'~~;' I 'J ":i : :,: ',:",,' j' "co_ L_____ 11.8S1.'lWf." --- ,j,:_,_:....._~, " __"1 f'--:_'~,.-,il :~i~ '-" L_"IT~---'-j, > '" ","''- 'J ,1,,,$7'000 '_",:~__ -.-.......='--:,,""""'-,=, AWARD BUDGET """1""---'" "".... .....-.<-_ 0".-_=<.;,--_""'" '"''''""~...:-,-'=-"'''''':~ ,0" , SOURCE OF FUNDS :1 i I Am....... 1 ._-__~__ ___-1'__.._. '_'~__"__'_'_~A~ __ _ ._" I : ' -Land AcquiSition r S15:-qDo.~'~~1\ j"ButldlngConstNCbon I I'-computer Hardware . $l80,OOO:Job Training Computer Software _i1~ra.aoo. iEQUitv [Furniture and Fixtures ~~.500 .' T1F ~Job Tl'Blnlng use: OF FUNDS ,'IOEO Programs CEBA ~NOrth towa COmmunity COllege ~Kunkel. Bounds & AsSC)('.iAtes ~Local Government i: . .I~ ~_a . s1iifrofAio" -,,- - }-'~"'----^ -~....;.,-- , , l:r!l!AL~~,!11:!Ii~.~ ._, _m,_,_i" MtOT~ --1 " i " I. i-, I - JUL-31-2006 11:22 FROM: KUNKEL, BOUNDS & ASS 16089872310 TO: 15635891733 P.9 EXHIBIT 0 . JOB OBLIGATIONS Job. C,..ted or Retained through this ProJel;t Kunkel, Bound. & AnoeletN. Inc. Contnlct Number; POtosMDOI.e Below is a lisl of the jobs that mlJSt be (etl[ned and/or created as a mul at this Project. A "retained job" is In exl&ting job that would be eliminated or moved to anulher state if the project did not proceed In Iowa A "created job" means the number of new FTE Jobs !he Business wUt add nwtr .lInrlabove the BUllnttI'" Employment la.. and, if applicable, Statewide EmployfMnt Base. .QualifyIItQ jobs" are Iflose created or retained jobs that qualify for program funding. "Non-queJifylnfl fob1" are lhose jobs created or I'8ta1ned by the prq$cl that do OOt qualify tor lunding, bul would no! be created 01 relained jf the ProjeCt did not proc:eed " , ',' '" . " . ,:: , ., ~RQJECT JOBS QESA411F WQ,JO ~. .' , , . $1S.~1 ': .' , . $19.1)~ TypJo/ ,fe!(>; Stanln; Or ,-- , , JIlbTi1Ie. " ",~JoIl!. .. c.:~~"d \9R~ curro",~ol>l1Y AVs, Ilenolit a".~fyIng Non-O..IIMno a.lilllyi'lll' , No..ooali()\'lll " talned R W. ' v,I':" ., .- :r,' President I C S60.1 .32 1 1 Vice President 1 C 3.27 $<4.32 1 1 Ben.tile Executive/HR 1 C $33.6 .32 1 1 Bene !Ion .r 1 C .32 $4.32 1 1 pac Acc:ount Mi r I C .2' .32 1 I Sale. 1 C $13.94 $4.32 1 1 Sale. 1 C .. 1 1 Sales-N...., 2 C $24.04 $4.32 2 2 Aocounli~_ I C 18.00 .32 1 1 S cial !I. r I C $12.50 1 1 Administrative AMI_lent 1 C 9.19 $4.32 1 1 Adm6nfalr1lttYe AlslltantlS8tVIce 1 C 51 .83 4.32 1 1 &elM 1 C 324.04 .32 1 1 Benent Man or 1 4. 1 1 PAC Accaunl Mana r 1 4 .32 1 1 Administrative ANlslanl 1 C 113.46 .32 1 1 Customer eN'" 1 C 14.42 $4.32 1 1 Sale, 1 C 16.83 $4.32 1 1 s_ \ C 16.83 .32 1 , PIC nt Man. er 1 C 24.04 $4. 2 1 1 8enefitl Men r 1 C 4.04 -s4.32 1 , Sales , C 19.23 $4.32 1 1 Admil'\islnilltlve Assistent 1 C 514.42 .32 1 1 alai Jobl 2. " " Total Joba elained: Totals: 24 ., .. 13 11 16 6 ---.. - .. -.-,.. ... "- ---- Business Employm&f1t Bue: o Statewide Employment Base: o Job Performance Obtlaatkms As a result of this project, Kunkel. Bounds & AssocIates. Inc. wUI a.ate 24 new full-time equivalent (FTE) jObS at the DubuClue location. Thirteen (13) of the created jObs will have starting wages that meet or exceed $19.81 per hour. The average wage. not including benefits. of the 13 qualifying jobs will be at least $29.07 per hour. In addition, 18 of the 24 created project jobs wlll meet the deflnillon of "hlgn.quality" )Dbs. High.quallty JObS. ror the purposes or this project in Dubuque County are defined 3$ crealed jObs with a Slarllng wage Indudlng benefits equal to or greater than $19.81 per hour. By the ProJect COmpletion Dale. Ihe project shall have created 24 Jobs. 18 ofwhfch have an average wage equal to or grealerthan $24.42 per hour. Apr.()O JUL-31-2006 11:23 FROM: KUNKEL, 80UNDS & ASS 16089872310 TO: 15635891733 P.10 identified in Exhibit O. (b) Benefits. The Business shall provide and pay for the eligible benefits described in Exhibit A, Business's Financial Assistance Application, with an Average Benefd Value calculated by IDEO and shown in Exhibit O. During the Contract period the Business may adjust the benefit package provided the Average Benefit Value is not decreased and provided the benefit package includes eligible benefits. For purposes of this Contract, "Eligible beneflls" means, medical and dental insurance plans, pension and profit-sharing plans, child care services, life insurance coverage, vision insurance plan, and disability coverage. 8.3 Performance Oblil!ations. By the Project Completion Date, Business shall complete the Project, make the total investment pledged for the Project, and comply with all other performance requirements described in this Master Contract and the Funding Agreements. The Business shall promptly provide IDEO with written notice of any major changes that would impact the success of the Project. 8.4 Maintenance of Prooerties. The Business shall maintain, preserve and keep its properties in good repair, working order and condition (ordinary wear and tear excepted) and will from time to time make all needful and proper repairs, renewals, replacements, additions and betterments thereto so that at all time the efficiency thereof shall be fully preserved and maintained in accordance with prudent business practices. 8.5 Taxes and Assessments. The Business shall duly pay and discharge all taxes, rates, assessments, fees and governmental charges upon or against it against its properties, in each case before the same become delinquent and before penalties accrue thereon, unless and to the extent that the same are being contested in good faith and by appropriate proceedings and adequate reserves are provided therefore. 8.6 Insurance. The Business shall insure and keep insured in good and responsible insurance companies, all insurable property owned by it which is of a cbaracter usually insured by Persons similarly situated and operating like properties against loss or damage from such hazards or risks as are insured by Persons similarly situated and operating like properties; and the Business shall insure such other hazards and risks (including employers' and public liability risks) in good and responsible insurance companies as and to the extent usually insured by Persons similarly situated and conducting similar businesses. The Business will upon request of the IDEO furnish a certificate setting forth in summary form the nature and extent of the insurance maintained pursuant to this Article. 8.7 Reouired ReDorts. (a) Review of Disbursement Reouests and Reoorts. The Business shall prepare, sign and submit disbursement requests and reports as specified in this Master Contract in the form and content required by IDEO. The Business shall review all reimbursement requests and verify that claimed expenditures are allowable cosls. The Business shall maintain documentation adequate to support the claimed costs. (b) Rcoorts. The Business shall prepare, sign and submit the following reports to the IDEO throughout the Contract period: ReDort Due Date Mid-Year Status ReDor! ..................................... July 31" for the period ending June 30th January 31" for the period ending Dec. 31" End-of-Year Status Reoort Includes:................... - Public Return on Investment (ROI) Update - Payroll Register with all created and/or Contract # P0603MOO866 -12- Ma".,. upd.ttKJ W3OI05 JUL-31-2006 11:23 FROM: KUNKEL, 80UNDS & ASS 16089872310 TO: 15635891733 P.l1 retained jobs highlighted and indicate the Project Jobs paying the required wage - "Employer's Contribution and Payroll Report" - For Enterprise Zone awards, annual certification of compliance with the requirements ofIowa Code ISE.193, as required by ISE.19S(6). End of Proiect ReDort ......................................... Report content: same items as End-of- Year Report Within 30 days of Project Completion Date End of Job Maintenance Period Reoort .............. Report Content: same items as End-or-Year Report Within 30 days of the end of the Job Maintenance Period (c) Additional Reoorts, Financials as ReQuested bv IDEO. The IDEO reserves the right to require more frequent submission of any of the above reports if, in the opinion of the IDEO, more frequent submissions would help improve the Business's Project perfonnance, or if necessary in order to meet requests from the Iowa General Assembly, the Department of Management or the Governor's office. At the request of IDEO, Business shall submit its annual financial statements completed by an independent CPA, or other financial statements including, but not limited to, income, expense, and retained earnings statements. 8.8 InsDection and Audit. The Business will permit the IDEO and its duly authorized representatives to visit and inspect any of the Business's properties, corporale books and financial records of the Business related to the Project, to examine and make copies of the books of accounts and other financial records of the Business, and to discuss the affairs, finances and accounts of the Business with, and to be advised as to the same by, its officers, and independent public accountants (and by this provision the Business authorizes such accountants to discuss with the IDEO and the IDEO's duly authorized representatives the finances and affairs of the Business) at such reasonable time and reasonable interVals as the IDED may designate, but at least annually. 8.9 Mer2ers. Consolidations and Sales. Without the written consent of the IDEO, which shall not be unreasonably withheld, the Business shall not he a party to any merger or consolidation, or sell, transfer, lease or otherwise dispose of all or any part of the Secured Property. 8.1 0 Formation and Maintenance of Subsidiaries. The Business will not form or acquire any Subsidiary or transfer assets pledged as security for this Master Contract to any subsidiary or affiliate without the written consent of the IDED, which shall not be unreasonably withheld. 8.11 ComDliance with Laws. (a) The Business will comply in all material respects with the requirements of all federal, stsle and local laws, rules, regulations and orders applicable to or pertaining to its properties or business operations including, but not limited to, all applicable environmental, hazardous waste or substance, toxic substsnce and underground storage laws and regulations, and the Business will obtain any pennits, licenses, buildings, improvements, fixtures. equipment or its property required by reason of any applicable environmental, hazardous waste or substance, toxic substance or underground storage laws or regulations. (b) The Business shall comply in all material respects with all applicable federal, state, and local laws, rules, ordinances, regulations and orders applicable to the prevention of discrimination in employment, including the administrative rules of the Iowa Department of Management and the Iowa Contracl # P0603MOO.886 -13- M8$ler updated Iiv.JCW5 JUL-31-2006 11:24 FROM: KUNKEL, BOUNDS & ASS 160B9872310 TO: 15635891733 P.12 Civil Rights Commisoion which pertain to equal employment opportunity and affirmative action. (e) The Business shall comply in all material respects with all applicable federal, state and local laws, rules, ordinances, regulations and orders applicable to worker rights and worker safety. (d) TIle Business shall comply with IDED's administrative rules for each program funding source, as identified in the Funding Agreements. 8.12 Use of Award Proceeds. The Business will use the Award proceeds extended under this Master Contract and the Funding Agreements solely for the purposes set forth in Exhibit C. 8.13 Chon"es in Business OwnershiD Structure and Control. The Business shall not materially change the ownership, structure, or control of the Business ifit would adversely affect the Project. This includes, but is not limited to, entering into any merger or consolidation with any person, firm or corporation or permitting substantial distribution, liquidation or other disposal of Business assets directly associated with the Project. Business shall provide IDEO with advance notice of any proposed changes in ownership, structure or control. The materiality of the change and whether or not the change affects the Project shall be as reasonably determined by IDED. 8.14 Notice of Meetin"s. The Business shall notify IDEO at least two (2) working days in advance ofall meetings of the board of directors at which the subject maller of this Master Contract, the Funding Agreements, or the Project is proposed to be discussed. The Business shall provide IDED with copies if the agenda and minutes of such meetings and expressly agrees that a representative of IDEO has a right to attend those portions of any and all such meetings where the Project, this Master Contract or the Funding Agreements are discussed. 8.1 S Notice of Proceedinas. The Business shall promptly notify IDEO of the initiation of any claims, lawsuits, bankruptcy proceedings or other proceedings brought against the Business which would adversely impact the ProJect. 8.16 Accountin\! Records. The Business is required to maintain its books, records and all other evidence pertaining to this Master Contract and it Funding Agreements in accordance with generally accepted accounting principles and such other procedures specified by IDED. These records shall be available to IDEO, its internal or external auditors, the Auditor of the State ofIowa, the Attorney General of the State ofIowa and the Iowa Division of Criminal Investigations at all times during the Master Contract's and the Funding Agreements' duration and any extensions thereof, and for three (3) full years from the Agreement Expiration Date. 8.17 Restrictions. The Business shall not, without prior written disclosure to IDEO and prior written consent of IDEO, which shall not be unreasonably withheld, directly or indirectly: Ca) Assign, waive or transfer any of Business's rights, powers, duties or obligations under this Master Contract or the Funding Agreements. (b) Sell, transfer, convey, assign, encumber or otherwise dispose of any of the Secured Property or the Project. (c) Place or permit any restrictions, covenants or any similar limitations on the Secured Property or the Project. (d) Remove from the Project site or the State all or substantially all of the Secured Property. Contract # P0603M00866 -14- fMsttJr updated 113CW5 JUL-31-2006 11:24 FROM: KUNKEL, BOUNDS & ASS 16089872310 TD:1563S891733 P.13 (e) Create, incur or permit to exist any Lien of any kind on the Secured Property. 8.18 No Chan2es in Business Oncrations. The Business shall not materially change the Project or the nature of the Business and activities being conducted, or proposed to be conducted by Business, as described in the Business's approved application for funding, Exhibit A oflhis Master Contract, unless approved in writing by IDEO prior to the change. 8.19 Indemnification. The Business shall indemnify, defend and hold harmless the IDEO, the State of Iowa, its departments, divisions, agencies, sections, commissions, officers, employees and agents from and against all10sses, liabilities, penalties. fines, damages and claims (including taxes), and all related costs and expenses (including reasonable attorneys' fees and disbursements and costs of investigation, litigation, settlement, judgments, interest and penalties), arising from or in connection with any of the following: a) Any claim, demand, action, citation or legal proceeding arising out of or resulting from the Project; b) Any claim, demand, action, citation or legal proceeding arising out of or resulting from a breach by the Business of any representation or warranty made by the Business in this Master Contract or the Funding Agreements; c) Any claim, demand, action, citation or legal proceeding arising out of or related to occurrences that the Business is required to insure against as provided for in this Master Contract or the Funding Agreements; and d) Any claim. demand, action, citation or legal proceeding which results from an act or omission of the Business or any of their agents in its or their capacity as an employer of a person. ARTICLE 9 EVENTS OF DEFAULT AND REMEDIES 9.1 Events of Default. Anyone or more ofthe following shall constitute an "Event of Default" hereunder: (a) NonDllVment In the event of a missed payment under a Loan or in the event a Forgivable Loan is not forgiven and all or a portion of the Forgivable Loan must be repaid by the Business, a default in the payment when due (whether by lapse of time, acceleration or otherwise) of any principal on the Promissory Note(s), or default in payment for more than ten (10) Business Days of the due date thereof of any interest on the Promissory Note(s) or any fee or other obligation payable by the Business shall be an Event of Default; or (b) NoncomTlliance with Covenants. Default in the observance or performance of any covenant set forth in Article 8. for more than five (5) Business Days; or (c) NoncomTlliance with Security Documents. Default in the observance or performance of any term of any Security Documents beyond any applicable grace period set forth therein; or (d) Noncomoliance with Master Contract. Default in the observance or performance of any other provision of this Master Contract; or (e) Noncomnliance with Fundinf! Af!reements: Cross-Default. Default in the observance or performance of any other provision of any of the Funding Agreements, including Events ofpefault identified in any of the Funding Agreements; IDED may elect to declare the Business in default of this Master Contract and any or all of the Funding Agreements if there is a default under anyone of the Funding Agreements; or Contract # P0603M00666 -15- Masllt updattd SlJi:JI05 JUL-31-2006 11:25 FROM: KUNKEL, BOUNDS & R55 16089872310 TO: 15635891733 P.14 (I) Matorial Misreoresentalion. Any representation or warranty made by the Business in this Master Contract or the Funding Agreements or in any statement or certificate furnished by it pursuant to this Mastel Contract or the Funding Agreements, or made in its Financial Assistance Application, or in connection with any ofthe above, proves untrue in any material respect as of the date of the issuance or making thereof; or (g) Lien Deficiencies. Any of the Security Documents shall for any reason fail to create a valid and perfected priority Lien in favor of the IDED in any Secured Property pledged by Business; or (h) Judgment Over $100.000. Any judgment or judgments, writ or writs or warrant or warrants of attaclunent, or any similar process or processes in an aggregate amount in excess of $100,000 shall be entered or filed against the Business or against any of its property and remains unvacated, unhonded or unstayed for a period of 30 days; or 0) Adverse Change in Financial Condition. Any change shall occur in the financial condition of the Business which would have a material adverse effect on the ability of the Business to perform under this Master Contract or the Funding Agreements; or (i) Bankruotcv or Similar Proceedings Initiated. Either the Business shall (1) have entered involuntarily against it an order for relief under the United States Bankruptcy Code, as amended, (2) not pay, or admit in writing its inability to pay, its debts generally as they become due, (3) make an assignment for the benefit of creditors, (4) apply for, seek, consent to, or acquiesce in, the appointment of a receiver, custodian, trustee, examiner, liquidator or similar official for it or any substantial part of Its Property, (5) institute any proceeding seeking to have entered against it an order for relief under the United States Bankruptcy Code as amended, to adjudicate it insolvent, or seeking dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors or fail to file an answer or other pleading denying the material allegations of any such proeeeding filed against it, or (6) fail to contest in good faith any appointments or proceeding described in Article 9.J(k) below; or (k)Aooointment of Officials. A custodian, receiver, trustee, examiner, liquidator or similar official shall be appointed for either the Business or any substantial part of any of its respective property, or a proceeding described in Article 9.1 G) shall be instituted against either the Business and such appointment continues undischarged or such proceeding continues undismissed or unstayed for a period of sixty (60) days; or (I) Insecurity. IDED shall in good faith deem itself insecure and reasonably believes, after consideration of all the facts and circumstances then existing, that the prospect of payment and satisfaction of the obligations under this Master Contract and/or the Funding Agreements, or the performance of or observance of the covenants in this Master Contract and/or the Funding Agreements, is or will be materially impaired. (m) Failure to Submit ReQuired Reoorts. The Business fails to submit complete reports by the required due dates as outlined in Article 8.7. (n) Lavoffs. Relocation. or Closure. The Business experiences a substantial layoff, relocates a substantial portion of its business or its offices outside of Iowa, or closes its operations during the term of this Contract. 9.2 Default Remedies. When an Event of Default has occurred and is continuing, the IDED Conlract # P0503MOO866 -16- Mater updated SV3QI'05 JUL-31-2006 11:25 FROM: KUNKEL, BOUNDS & ASS 16089872310 TO: 15635891733 P.15 may, by written notice to the Business: (a) tenninate this Master Contract, thc Funding Agreements and a1l of the obligations of IDED under this Master Contract and the Funding Agreements on the date stated in such notice, and (b) declare the principal and any accrued interest on the outstanding Promissory Notes to be forthwith due and payable, including both principal and interest and all fees, charges and other amounts payable under this Master Contract and the Funding Agreements, sha1l be and become immediately due and payable without further demand, presentment, protest or notice of any kind. 9.3 Default Interest Rate. Ifan Event of Default occurs and remains uncured, a default rate of 6% shall apply to repayment of amounts due under this Master Contract and the Funding Agreements. The default interest rate shall accrue from the fIrst date Award funds are disbursed. 9.4 EX1lenses. The Business agrees to pay to the IDEO all expenses reasonably incurred or paid by IDED including reasonable attorneys' fees and court costs, in connection with any Default or Event of Default by the Business or in connection with the enforcement of any of the terms of this Master Contract and the Funding Agreements. 9.5 Notice of Default and Onportunitv to Cure. If IDED has reasonable cause to believe that and Event of Default has occurred under this Master Contract andlor the Funding Agreements. IDED shall issue a written Notice of Default to the Business, setting forth the nature of the alleged default in reasonable specificity, and providing therein a reasonable period time, which shall not be fewer than thirty (30) days from the date of the Notice of Default, in which the Business sha1l have an opportunity to cure, provided that cure is possible and feasible. ARTICLE 10 MISCELLANEOUS. 10.1 Timelv Performance. The parties agree that the dates and time periods specified in this Master Contract and the Funding Agreements, including the timelines established for the Project and more fu1ly described in Exhibit C, are of the essence to the satisfactory performance of this Master ContTact and the Funding Agreements. 10.2 State of Iowa Recoenition. The Project shall permanently recognize. in a manner acceptable to IDEO, the financial contribution to the Project made by the State of Iowa. For example, a sign or plaque acknowledging that the Project was funded in part by an Award from the State ofIowa, Iowa Department of Economic Development. 10.3 Choice of Law and Forum. (a) In the event any proceeding of a quasi-judicial or judicial nature is commenced in connection with this Master Contract or the Funding Agreements, the proceeding shall be brought in Des Moines, Iowa, in Polk County District Court for the State ofIowa, if such court has jurisdiction. If however, such court lacks jurisdiction andjurismction lies only in a United States District Court, the matter shall be commenced in the United States District Court for the Southern District ofIowa, Central Division. (b) This provision shall not be construed as waiving any immunity to suit or liability, in state or federal court, which may be available to the IDEO, the State of Iowa or its members, officers, employees or agents. 10.4 Governinl! Law. This Master Contract and the Funding Agreements and the rights and duties of the parties hereto shall be governed by, and construed in accordance with the internal laws of the Contract # P0603M00866 .17. Master updated 00010' JUL-31-2005 11:25 FROM: KUNKEL, BOUNDS & ASS 15089872310 TD:15535891733 P.15 State of Iowa without regard to principles of conflicts of laws. 10.S Master ContractJFundin~ Al!Teement Amendments. Neither this Master Contract nor any documents incorporated by reference in e<mnection with this Master Contract, including the Funding Agreements, may be changed, waived, discharged or terminated orally, but only as provided below: (a) Writing required. The Master Contract and the Funding Agreements may only be amended if done so in writing and signed by the Business and IDED; and for those Funding Agreements in which the Community is a signatory, by the Community, the Business and IDED. Examples of situations requiring an amendment include, but are not limited to, time extensions, budget revisions, and significant alterations of existing activities or beneficiaries. No amendment will be valid until approved in writing by IDEO. (b) lDED review. IDEO will consider whether an amendment request is so substantial as to necessitate reevaluating the IDEO's or IDED Board's original funding decision. An amendment may be denied by IDEO if it substantially alters the circumstances under which the Project funding was originally approved. ] 0.6 Notices. Except as otherwise specified herein, all notices hereunder shall be in writing (including, without limitation by fax) and shall be given to the relevant party at its address, e-mail address, or fax number set forth below, or such other address, e-mail address, or fax number as such party may hereafter specify by notice to the other given by United States mail, by fax or by other telecommunication device capable of creating a written record of such notice and its receipt. Notices hereunder shall be addressed: To the Business: Kunkel, Bounds & Associates,lnc, Timothy J. Kunkel, President 203 High Street Mineral Point, Wisconsin 53565-1285 E-mai): Telephone: Facsimile: tim.kunkel@kunkel-bounds.com 608.987.1155 608.987.2310 To the IDEO at: Iowa Department of Economic Development Business Services 200 East Grand Avenue Des Moines, Iowa 50309 Attention: Julie Malone, Business Services Project Manager E-mail: julie.malone@iowalifechanging.com Telephone: 515.242.4872 Facsimile: 515.242.4832 Each such notice, request or other communication shall be effective (i) if given by facsimile, when such facsimile is transmitted to the facsimile number specified in this Article and a confinnation of such facsimile has been received by the sender, (ii) if given bye-mail, when such e-mail is transmitted to the e- Contract # P0603M00866 -18- Master upd.,ed 1Ai3CW5 JUL-31-2006 11:27 FROM: KUNKEL, BOUNDS & RSS 16089B72310 TD:15635891733 P.17 mail address specified in this Article and a confmnation of such e-mail has been received by the sender, (iii) if given by mail, five (5) days after such communication is deposited in the mail, certificd or registered with return receipt requested, addressed as aforesaid or (iv) if given by any other means, when delivered at the addresses specified in this Article. 10.7 Headinl!S. Article headings used in this Master Contract and the Funding Agreements are for convenience of reference only and are not a part of this Master Contract or the Funding Agreements for any other purpose. 10.8 Final Authoritv. The IDEO shall have the authority to reasonably assess whether the Business has complied with the terms of this Master Contract and the Funding Agreements. Any IDEO determinations with respect to compliance with the provisions of this Master Contract and the Funding Agreements shall be deemed to be final determinations pursuant to Section 17 A of the Code ofIowa (2005). 10.9 Waivers. No waiver by IDEO of any default hereunder shall operate as a waiver of any other default or of the same default on any future occasion. No delay on the part of the IDEO in exercising any right or remedy hereunder or under the Funding Agreements shall operate as a waiver thereof No single or partial exercise of any right or remedy by IDEO shall preclude future exercise thereof or the exercise of any other right or remedy. 10.10 Countemarts. This Master Contract may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument. 10.11 Survival of Reoresentations. All reptesentations and warranties made herein or in any other Master ContractlFunding Agreement document or in certificates given pursuant hereto or thereto shall survive the execution and delivery of this Master Contract and the Funding Agreements and the other Master ContractlFunding Agreement documents and shall continue in full force and effect with respect to the date as of which they were made until all of BUSiness's obligations or liabilities under this Maater Contract and the Funding Agreements have been satisfied. 10.12 Severability of Provisions. Any provision of this Master Contract or the Funding Agreements, which is unenforceable in any jurisdiction, shall, as to such jurisdiction, be ineffective to the extent of such unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. All rights, remedies and powers provided in this Master Contract and .or the Funding Agreements or any other Master Contract document may be exercised only to the extent that the exercise thereof does not violate any applicable mandatory provisions of law, and all the provisions of this Master Contract and the Funding Agreements and any other Master Contract document are intended to be subject to all applicable mandatory provisions of law which may be controlling and to be limited to the extent necessary so that they will not render this Master Contract or the Funding Agreements or any other Master Contract document invalid or unenforceable. 10.13 Successors and Assil!lls. This Master Contract and the Funding Agreements sbaH be binding upon the Business and its respective successors and assigns, and shall inure to the benefit of the IDEO and the benefit oftheir respective successors and assigns. The Business may not assign its rights hereunder or under any of the Funding Agreements without the written consent ofthe IDEO, which consent will not be unreasonably withheld. 10.14 Termination. This Master Contract and any of the Funding Agreements can be tenninated upon mutual, written agreement of the Business and IDEO and, for amendments to Funding Agreements Contract # P0603M00866 - '9- Mealer updafefJ 8f3W05 JUL-31-2005 11:27 FROM: KUNKEL, BOUNDS & ASS 150B9872310 TO: 15535891733 P.18 to which the Commumty is a signatory, the Community. 10, I S Inte2l"ation. This Master Contract and the Funding Agreements contains the entire understanding between the Business and IDED relating to the Project and any representations that may have been made before or after the signing of this Master Contract and the Funding Agreements, which are not contained herein, are nonbinding, void and of no effect. None of the Parties have relied on any such prior representation in entering into this Master Contract and its Funding Agreement. IN WITNESS WHEREOF in consideration of the mUTual covenants set forth above and for other good and valuable consideration, the receipt, adequacy and legal sufficiency of which are hereby acknowledged, the parties have entered into this Master Contract and have caused their duly authorized representatives to execute this Master Contract, effective as of the latest date stated below (the "Contract Effective Date"). FOR THE lOW A DEPARTMENT OF ECONOMIC DEVELOPMENT: BY; Mary Lawyer, Director Date FOR THE BUSINESS: BY; SignaTure Typed Name and Title Date Contrad II P0603MOO666 -20- MMNr jJfJdat.d 9I3CVD5 JUL-31-2006 11:28 FROM: KUNKEL, 80UNDS & ASS 16089872310 Exhibit A - Exhibit B - Exhibit C - Exhibit D - Contract # P0603M00866 TO: 15635891733 P.19 LIST OF EXHIBITS Business's Financial Assistance Application (on file with IDEO), Application # 06-CEBA-037 and 06-HQJC-038 Funding Agreements B l-CEBA Funding Agreement BS- HQJCP Funding Agreement Description ofthe Project and Award Budget Job Obligations - 21. M8$ter updated 9I3aI05 JUL-31-2006 11:28 FROM: KUNKEL, 80UNDS & ASS 16089872310 TO:1S635891733 P.20 EXHIBIT B-1 I CEBA FUNDING AGREEMENT I BUSINESS: COMMUNITY: Kunkel. Bounds & Associates. Inc, Cny of Dubuque MASTER CONTRACT NUMBER: FUNDING AGREEMENT NUMBER: AWARD TYPE: AMOUNT: # P0603M00866 # 06-CEBAIVFGF-037 Loan/Foraivable Loan $ 75.000 THIS CEBA FUNDING AGREEMENT is made by and among the IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT. 200 East Grand Avenue, Des Moines, Iowa 50309 ("IDEO"), the business identified above ("Business"), and the community identified above, ("Community"), effective as of the Contract Effective Date stated in the Master Contract identified above. WHEREAS. the Business has executed the Master Contract described above with the IDEO pursuant to an Award on the Award Date stated in the Master Contract to the Business for the Project; and WHEREAS, the Master Contract specifies that for each program funding source the IDEO and the Business shall enter into a Funding Agreement; and WHEREAS, the Iowa Code provisions applicable to the CEBA Program require the Community to submit an application on behalf of the Business in order to apply for and receive CeBA funds; and WHEREAS. this CEBA Funding Agreement contains additional terms and conditions for the award of CeBA funds and NOW, THEREFORE. the Business and Community accept the terms and conditions set forth in this Funding Agreement and the Master Contract for the funding of the Project. In consideration of the mutual promises contained in the Master Contract and this CEBA Funding Agreement and other good and valuable consideration, it is agreed as follows: 1.0 Master Contract. Unless otherwise specified in this CEBA Funding Agreement, the definitions, terms. conditions, and provisions contained in the Master Contract are applicable to this CEBA Funding Agreement. 2.0 Definitions. As used in this CEBA Funding Agreement, the following terms shall apply: 2.1 Aareement Exairation Date. Expiration of this CEBA Funding Agreement occurs upon the happening of one of the following events, whichever occurs first: (a) IDEO's determination that the Business and Community have fully met the requirements of this CeSA Funding Agreement, including repayment of all amounts due hereunder, and IDEO closes out this CESA Funding Agreement. (b) An Event of Default occurs that is not remedied within the time period allowed under the Master Contract. (c) If no disbursement of CeBA funds has occurred within twenty-four (24) months JUL-31-2006 11:28 FROM: KUNKEL, BOUND5 & AS5 16089B72310 TO: 15635891733 P.21 of the Award Date (as defined in the Master Contract). (d) This CEBA Funding Agreement is terminated upon mutual. written agreement of the Business, the Community and IDEO. 2.2 CEBA. "CEBA" means the Community Economic Betterment Program (established in Iowa Code sections 15.315-15.325). The source of fUnding for this CEBA Funding Agreement is an appropriation by the State legislature to IDEO. 2.3 CEBA Award. .CEBA Award" means the financial assistance provided to the Business in the form of a Loan and/or Forgivable Loan, as more fully defined in Articles 3 and 4 of this CeBA Funding Agreement. 3.0 Terms of CEBA Award - Loan. CEBA funds have been awarded to the Community on behalf of the Business to assist the Business with the PrOject. The terms of the Loan are as follows; 3.1 $37.500 3.2 60 months 3.3 0% interest rate 3.4 Promissory notes. The obligation of the Business and Community to repay the Loan shall be evidenced by Promissory Notes executed by the Business and the Community. 3.5 No other conditions to disbursement 4.0 Terms of CEBA Award - Forgivable Loan. CEBA funds have been awarded to the Community on behalf of the Business to assist the Business with the Project. The terms of the Forgivable Loan are as follows: 4.1 $37,500 4.2 36 months 4.3 Terms of Foraiveness. IDEO will, in its sole discretion, determine if the Business has satisfied the terms of this CEBA Funding Agreement, including fulfillment of the Job Obligations by the Project Completion Date as shown in Master Contract Exhibit D. If IDEO determines that the Business has satisfied said terms and has continued to satisfy said terms through the Job Maintenance Period, then barring any other default, repayment of principal and interest which would otherwise have accrued for the time period beginning with the Award Date and ending with the Project Completion Date Shall be permanently waived. If IDEO does not waive repayment, the Forgivable Loan shall be repaid as described in Article 11.2(b) of this CEBA Funding Agreement. 4.4 Promissory notes. The obligation of the Business and Community to repay the Forgivable Loan shall be evidenced by a Promissory Notes executed by the Business and Community. 4.5 No other conditions to disbursement Master COntract # P0604M00927 Funding Agreement # 06.CEBAIVFGF-036 .2- MIIst", FA upa.t.a OQI3M)S JUL-31-2006 11:28 FROM: KUNKEL, BOUNDS & ASS 16089872310 TO: 15635891733 P.22 5.0 Maximum CEBA funds available for Project. It is expressly understood and agreed that the maximum amounts to be paid to the Business by IDEO for this CEBA Funding Agreement shall not exceed the amount stated on page one of this CEBA Funding Agreement. 6.0 Business' Job Obligations. The Business' Job Obligations are as described in Master Contract Exhibit D. 7.0 Conditions to Disbursement. In addition to the conditions to disbursement described in the Master Contract, the Business shall meet the following conditions before IDEO will release CEBA funds: 7.1 Consultation with Iowa Workforce DeveloDment. The Business shall have provided documentation to the IDEO that it has consulted with the area Iowa Workforce Development (IWD) office to discuss employment services available. In addition, the Business must provide to IWD agencies a list of positions to be created including job descriptions and qualifications. 8.0 Affirmative Covenants of Community. The Community covenants with IDEO that: 8.1 Proiect Work and Services. The Community shall perform work and services detailed in the Business's CEBA application by the Project Completion Date. 8.2 fi!l!!g. Unless otherwise agreed. IDEO shall file the Security Documents required under this CEBA Funding Agreement. The Community shall, If requested by IDEO, file in a proper and timely manner any and all Security Documents required in connection with the CEBA Award, naming the IDEO as co-security holder and promptly providing the IDEO with date-stamped copies of said Security Documents. The Community shall, at the IDEO's request, obtain and provide to the IDEO lien searches or attorney's title opinions. 8.3 Indemnification. The Community shall indemnify and hold harmless the IDEO. its officers and employees to the extent allowed under the Iowa Constitution and Iowa Code on the same basis as the Business Is obligated to indemnify the IDEO under the Master Contract. 8.4 Reouests for CEBA Award Funds. The Community shall review the Business' requests for CEBA Award funds to ensure that the requests are in compliance with the IDEO's requiSition procedures and shall execute and forward the requests to the IDEO for processing. 8.5 Unused CEBA Award Proceeds. The Community shall return all unused CEBA Award proceeds. including accrued interest, to the IDEO within thirty (30) days after the Project Completion Date. 8.6 Notice of Meetinos. The Community shall notify the IDEO at least two (2) days in advance of all public or closed meetings at which the subject matter of this CeBA Award andlor the Project is proposed to be discussed. The Community shall provide the IDEO with copies of the agenda and minutes of such meetings and expressly agrees that a representative of the IDED has the right to attend any such meetings for the purposes of the discussion of the Project andlor the CEBA Award. 8.7 Notice to IDEO. In the event the Community becomes aware of any material alteration in the Project, initiation of any investigation or proceeding involving the Project or Master Contract # P0604M00927 Funding Agreement # 06-CEBAIVFGF.Q36 -3- Master FA updllled 09/3wtl'1S JUl-31-2006 11:29 FROM: KUNKEL, BOlNDS & ASS 16089872310 TO: 15635891733 P.23 CEBA Award, change in the Business' ownership, structure or operation, or any other similar occurrence, the Community shall promptly notify the IDEO. 8.8 ResponSibilitv Upon Default. If the Business fails to perform under the terms of the Master Contract andlor this CEBA Funding Agreement and the IDEO declares the Business in default, the IDEO shall take the lead on recovery of CeBA Award proceeds, as well as penalties, interest, costs and foreclosure on collateral, provided the Community assigns its security interest and CEBA contract documents to IDEO for collection purposes. 9.0 Negative Covenants of Community. The Community shall not, without written consent of IDEO: (a) Acceptance of CEBA Award Repavments. Accept any CEBA Award repayments and/or settlements on Community funds considered local effort for this CEM Funding Agreement. (b) Asslanment. Assign its rights and responsibilities under this CEBA Funding Agreement. (c) Alter Financial Commitments. Alter, accelerate or otherwise change the terms of the Community's financial commitment to the Business for this CEBA Funding Agreement. (d) Administration. Discontinue administration or loan servicing activities under this CEBA Funding Agreement. 10.0 Community LIability. 10.1 Good Faith Enforcement. The Community's liability under this CEBA Funding Agreement is limited to those amounts which the Community recovers from the Business in unused CeBA Award proceedS, enforcement of judgments against the Business and through its good faith enforcement of the Security Documents executed by the Business. Nothing In this paragraph shall limit the recovery of principal and interest by IDEO in the event of Community's fraud, negligence, or gross mismanagement in the application for, or use of. sums provided under this CEBA Funding Agreement. 11.0 Default; Remedies upon Default. 11.1 The terms of the Master Contract regarding Events of Default and Remedies govern this CEBA Funding Agreement. The following are additional Events of Default for this CeBA Funding Agreement: No other specific default events 11.2 The fOllowing are Default Remedies available to IDEO in addition to those specified in the Master Contract: (a) Reoavment of Loan - Failure to Meet Job Obliaations. If the Business meets less than 100% of its Job Obligations, the IDEO may require full repayment of the Loan, as permitted under the Master Contract. IDEO may also elect to allow repayment on a pro rata basis as described below: If the Business received a Loan at a rate below 6% (the annual interest rata for default set by the IDeO Board), the unpaid principal amount of the Loan may be prorated between the percentage of FTE Jobs created/retained and the percentage of the Master Contract # P0604M00927 Funding Agreement # 06-CEBAIVFGF-Q36 -4- Master FA updated oft.JOlQ$ JUL-31-2005 11:29 FROM: KUNKEL, BOUNDS & ASS 150B9872310 TO: 15535B91733 P.24 shortfall. The shortfall principal portion may be amortized over the remaining term of the Loan, beginning at the Project Completion Date, at a default rate of 6% (the annual Interest rate set by the IDEO Board). Interest will be charged beginning from the date Loan proceeds were disbursed to the Community for the Business; interest accrued from this date will be due immediately. The pro rata portion of the Loan associated with the percentage of FTE Jobs created will be amortized at the original Loan rate and term. (b) ReC8vment of Foraivable Loan - Failure to Meet Job Oblioations. If the Business has fulfilled 50% or more of its Job Obligations, a pro rata percentage will be forgiven for each new FTE job created/retained at the time the repayment amount is calculated (e.g. at the Project Completion Date or the date an Event of Default occurred) Any balance (shortfall) will be amortized over a two (2) year period (beginning at the at the time the repayment amount is calculated (e.g. at the Project Completion Date or the date an Event of Default occurred) at six (6%) percent interest per annum with equal monthly payments, and, interest will be charged at six (6%) percent per annum from the date of the first CEBA disbursement on the shortfall amount with that amount accrued as of the Project Completion Date being due and payable immediately. (c) Reoavment Time Allowed. If the IDEO has allowed repayment of the Forgivable Loan on a pro rata basis as described in paragraph "b" above, that amount is immediately due and payable. If the Business has a current Loan balance, the amount owed on the Forgivable Loan may be combined with the amount owed on the Loan to reflect a single monthly payment. This combined loan shall be repaid over the time period remaining (d) Examole. CEBA Funding Agreement Exhibit B is an example of how these repayment calculations will be applied. 12.0 Incorporated documents. The following documents are hereby incorporated by this reference: 1. The Master Contract and its Exhibits. 2. CEBA Promissory Notes: CEBA Funding Agreement exhibit A1 - Community, and CEBA Funding Agreement Exhibit A2 - Business. 3. CEBA Funding Agreement Exhibit B - EKarnple: Business Job Shortfall Calculation. Master Contract # P0604M00927 Funding Agreement # OB-CEBAIVFGF-Q36 -5- Me:tlfH' FA updatK Q81'3Q1OS JUL-31-2006 11:30 FROM: KUNKEL, 80UNDS & RSS 16089872310 TO: 15635891733 P.25 IN WITNESS WHEREOF, the parties have executed this CeBA Funding Agreement: BUSINESS: BY: Signature Typed Name and Title Date IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT: BY: Mary Lawyer, Director Date COMMUNITY: BY: Signature Typed Name and Title Date Master Contract # P0604M00927 Funding Agreement # 06-CEBAIVFGF.036 -6- M,ster FA uptlsttd CN3OI05 JUL-31-2006 11:30 FROM: KUNKEL, BOUNDS & ASS 16089872310 TO: 15635891733 P.26 CEBA Funding Agreement Exhibit A1- Community's Promissory Note (ForClivable Loan) PROMISSORY NOTE FOR VALUE RECEIVED, the undersigned promises, in the event this Forgivable Loan is not forgiven, to pay to the order of the IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT, at its office at 200 East Grand, Des Moines, Iowa 50309, the sum of THIRTY SEVEN THOUSAND FIVE HUNDRED DOLLARS ($37,500) with interest at a rate of 0% unless an Event of Default occurs. in which case interest shall be at the default rate set forth in Contract number P0603M00866 ("Contract"). The terms and conditions by which forgiveness of this Loan may occur are as specified in the Contract. Interest shall first be deducted from the payment and any balance shall be applied on principal. Upon default in payment of any interest, or any installment of principal, the whole amount then unpaid shall become immediately due and payable at the option of the holder. The undersigned, in case of suit on this note, agrees to pay on demand all costs of collection, maintenance of collateral, legal expenses, and attorneys' fees incurred or paid by the holder in collecting and/or enforcing this Note on default. This note shall be secured by the Security specified in the Contract. Makers, endorsers and sureties waive demand of payment, notice of non-payment, protest and notice. Sureties, endorsers and guarantors agree to all of the provisions of this note, and consent that the time or times ofpayrnent of all or any part hereof may be extended after maturity, from time to time, without notice. ADDRESS: City Hall 50 West 13th Street Dubuque Iowa. 52001 City of Dubuque BY: Roger Buol, Mayor ATTEST: (Signature) Date JUL-31-2006 11:30 FROM: KUNKEL, 80UNOS & ASS 16089872310 TO: 15635891733 P.27 CEBA Funding Agreement ExhibitA1- Community's Promissory Note (Loan) PROMISSORY NOTE FOR VALUE RECEIVED, the undersigned promises to pay to the order of the IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT, at its office at 200 East Grand, Des Moines, Iowa 50309, the sum ofTffiRTY SEVEN THOUSAND FIVE HUNDRED DOLLARS ($ 37,500) with interest thereon at ZERO PERCENT (0%) to be paid as follows: 60 monthly payments ofS625.00 beginning on the first day of the fourth month from the date Award funds are disbursed. Final payment may vary depending upon dates payments are received. Interest shan first be deducted from the payment and any balance shall be applied on principal. Upon default in payment of any interest, or any installment of principal, the whole amount then unpaid shall become immediately due and payable at the option of the holder. The undersigned, in case ofswt on this note, agrees to pay on demand all costs of collection, maintenance of collateral, legal expenses, and attorneys' fees incurred or paid by the holder in collecting and/or enforcing this Note on default. This note shall be secured by the Security specified in the Contract. Makers, endorsers and sureties waive demand of payment, notice of non-payment, protest and notice. Sureties, endorsers and guarantors agree to all of the provisions of this note, and consent that the time or times of payment of all or any part hereof may be extended after maturity, from time to time, without notice. ADDRESS: City Hall 50 West 13th Street Dubuque Iowa, 52001 City of Dubuque BY: Roger Buol, Mayor ATfEST: (Signature) Date JUL-31-2005 11:31 FROM: KUNKEL, BOUNDS & RSS 15089872310 TO: 15535891733 P.28 CEBA Funding Agreement Exhibit A2- Business's Promissory Note (Forcivable Loan) PROMISSORY NOTE FOR V ALlIE RECEIVED, the undersigned promises, in the event this Forgivable Loan is not forgiven, to pay to the order ofthe IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT, at its office at 200 East Grand, Des Moines, Iowa 50309, the sum ofTHmTY SEVEN THOUSAND FIVE HUNDRED DOLLARS (537,500) with interest at a rate of 0% unless an Event of Defaul.t occurs, in which case interest shall be at the default rate set forth in Contract number P0603M00866 ("Contract"). The terms and conditions by which forgiveness of this Loan may occur are as specified in the Contract. Interest shall first be deducted from the payment and any balance shall be applied on principaL Upon default in payment of any interest, or any installment of principal, the whole amount then unpaid shall become immediately due and payable at the option of the holder. The undersigned, in case of suit on this note, agrees to pay on demand all costs of collection, maintenance of collateral, legal expenses, and attorneys' fees incurred or paid by the holder in collecting andlor enforcing this Note on default. This note shall be secured by the Security specified in the Contract. Makers, endorsers and sureties waive demand of payment, notice of non-payment, protest and notice. Sureties, endorsers and guarantors agree to aU of the provisions of this note, and consent that the time or times of payment of all or any part hereof may be extended after maturity, from time to time, without notice. Kunkel, Bounds & Associates, Ine. By: Print or Type Name, Title Address: 203 High Street Mineral Point, WI 53565 Date .,.' '.. IIIIIIIIII~IIIIIIIIIIIIIIIIIIIIIIIIIIIIII~IIIIIIIIIIIIIIII11111111111111111111 Doc ID: 005469600003 Type: GEN Recorded: 08/07/2006 at 03:56:02 PM Fee Amt: $22.00 Page 1 of 3 Revenue Tax: $0.00 Dubuque County Iowa Kathy Flvnn Thurlow Recorder me2006-00012075 Prepared by: Barry A. Lindahl 300 Main Street ,Suite 330, Dubuque IA 52001 563583-4113 Return to: Barry A. Lindahl 300 Main Street ,Suite 330, Dubuque IA 52001 563583-4113 Tax Statement to: Kunkel Bounds & Associates, Inc. 401 Data Court Dubuque IA 52001 SPECIAL WARRANTY DEED KNOW ALL MEN BY THESE PRESENTS: that the City of Dubuque, Iowa, a municipal corporation of the State of Iowa (Grantor), in consideration of the Grantee named below undertaking the obligations of the Developer under the Development Agreement described below and the sum of Four Hundred One Thousand, One Hundred Thirty-Five and no/100 Dollars ($401,135.00) in hand paid, and other good and valuable consideration, and pursuant to the authority of Chapter 403, Code of Iowa, does hereby GRANT, SELL AND CONVEY unto Kunkel Bounds & Associates, Inc., a Wisconsin corporation (Grantee), the following described parcel(s) situated in the County of Dubuque, State of Iowa, to wit (the Property): Lot 6 of Block 2 of Dubuque Technology Park in the City of Dubuque, Iowa, according to the recorded plat thereof, subject to easements of record This Deed is exempt from transfer tax pursuant to Iowa Code section 428A.2(6). This Deed is given pursuant to the authority of Resolution No. 257-06 of the City Council of the City of Dubuque adopted the 19th day of June, 2006, the terms and conditions thereof, if any, having been fulfilled. This Deed is being delivered in fulfillment of Grantor's obligations under and is subject to all the terms, provisions, covenants, conditions and restrictions contained in that certain Development Agreement executed by Grantor and Grantee herein, dated the 19th day of June, 2006 (the Agreement), a memorandum of which was recorded on the -Y- day of' , 2~, in the records of the Recorder of Dubuque County, Iowa, ument Number ,J"cOfc -/~07'/. \ " J iC) l ;....-, REAL ESTATE TRANSFER - GROUNDWATER HAZARD STATEMENT Please read the filing instructions on the reverse side BEFORE completing this form. PART I _ TO BE COMPLETED BY TRANSFEROR TRANSFEROR Name City of Dubuque, Iowa Address 50 West 13th Street Dubuque Iowa 52001 Number and Street or RR City, lownor t'.O Slate z" TRANSFEREE Name Kunkel Bounds & Associates, Inc. Address 203 Hi1,h Street Numberan StreetorRR Mineral Point WI 53565 C,ty, IownorP,O. State ZIp Address of Property Transferred 401 Data Court Dubuque lA 52002 Number and Street orRR City,Town,orP,O. State Zip Legal Description of Property Lot 6 Block 2 Dubuque Technology Park in the City of Dubuque, Iowa, according to the recorded plat thereof 1. Wells (check one) ~ There are no known wells situated on this property. o There is a well or wells situated on this property. The type(s), location(s) and legal status are stated below. 2. Solid Waste Disposal (check one) ~ There is no known solid waste disposal site on this property. o There is a solid waste disposal site on this property, but no notice has been received from the Department of Natural Resources that the site is deemed to be potentially hazardous. [j There is a solid waste disposal site on this property which has been deemed to be potentially hazardous by the Department of Natural Resources. The location(s) of the site(s) is stated below. 3. Hazardous Wastes (check one) ~ There is no known. hazardous waste on this property. o There is hazardous waste on this property and it is being managed in accordance with Department of Natural Resources rules. 4. Underground Storage Tanks (check one) IX There are no known underground storage tanks on this property. (Note exclusions such as small fann and residential motor fuel tanks, most heating oil tanks, cisterns and septic tanks, in instructions.) o There is an underground storage tank on this property. The type(s). size(s) and any known substance(s) contained are described below. 5. Private Burial Site (check one) ~ There are no known private burial sites on this property. o There is a private burial site on this property. The location(s) of the site(s) is stated below. The known identifying information of the decedent is stated below. Information, if any, required by statements checked above: I HEREBY DECLARE Ifso,nurnberofpages Signature: AT THE INFORMA nON CONTAINED IN PART 1 OF THIS STATEMENT IS TRUE AND CORRECT. Telephone Number: '6l g 'E)(S S - '-( ( f.3 _______________________________________.p.________~---____________.._____________.______.~_______.______~___---~--------------.---------~------------------------------ PART II - TO BE COMPLETED BY RECORDER Date ofInstrumen! ~. ~. 0 (/:> Book/l.D. 0 0 Page/l.D. / d, 0 7 ") . Date nfRecording g l. c) fo ~ownShiP Dv\ f,) ~ iZ- Deed'lt Contract D County 1'1,^ IfJ:, lA.. ~ ~ --.---A-~-----------------------.--------.--------..-----------------~-------~-------~~-------------------------b------------------------------.~------p---------- DNR form (November 02) FILE WITH RECORDER 542-0960 INSTRUCTIONS FOR COMPLETING GROUNDWATER HAZARD STATEMENT The transferor of real property is required to complete Part I of this form. The purpose of the statement is to satisfy legal requirements for filing instruments of conveyance of real property with the county recorder (Iowa Code Section 558.69). The Department of Natural Resources does not approve or disapprove of property transfers based on these statements. The statement must be signed by one of the persons transferring the property interest or that person's agent. An agent signing this form represents the information from transferor to be correct. For the most part the information requested is clear (name, address, etc.). One statement under each of the numbered items (1, 2, 3, 4 and 5) must be checked, and if one or more of the statements checked requires the transferor to provide additional information, that infonnation is to be provided in part L Relate the additional infonnation to the specific category of facility (well, etc.) by numbering it with the corresponding number (1, 2, 3, 4, 5). If additional space is needed, type or print it legibly on a separate sheet or sheets, complete the statements at the end of Part 1 and attach the additional infonnation to all copies of the fonn. When describing the location of a facility on the property, be reasonably precise, such as a specific distance and general direction from a landmark or comer of the property. A professional survey is not necessary. The following definitions are for use in completing the fonn. 1. Wells - A "well" is any excavation that is drilled, cored, bored, augered, washed, driven, dug, jetted or otherwise constructed for accessing groundwater or for diverting surface water into the ground, including abandoned wells. "Well" does not include an open ditch or drainage tiles which discharge to the surface. If a well is an "abandoned well" or an "agricultural drainage well," this must be identified and the status of the well with respect to Iowa Code sections 455B.190 and 159.29, respectively, must be stated. An "abandoned well" is a well no longer in use or in such state of disrepair that continued use is unsafe or impracticable. Abandoned wells are to be properly plugged in accordance with chapter 39 of the rules of the Department of Natural Resources. (567 Iowa Administrative Code, Chapter 39) An "agricultural drainage well" is a well constructed for the purpose of draining, or which drains, water from agricultural land to an aquifer (underground), excluding drainage tile intakes which outlet to the surface. Agricultural drainage wells are required to be registered with the department by September 30,1988, and the owner of the well and of the land drained by the well are to develop a plan proposing alternatives to the use of the well by July 1, 1998 (See Iowa Code Section 159.29.) 2. Solid Waste - "Solid waste" means garbage, refuse, rubbish and other similar discarded solid or semisolid material. It does not include dirt, stone, brick, or similar inorganic material used for fill, as long as no other solid waste is included. See 567..100.2(455B), Iowa Administrative Code (LA.C.) for further definitions. A "disposal site" is any area on the property on, in, or under which solid waste has been disposed, whether or not the disposal is or was regulated by the department. If the transferor or agent has not received notice from the Department of Natural Resources that the disposal site has been deemed to be potentially hazardous, there is no duty to inquire to the department. "'Note The land application of sludges or soils resulting from the remediation of underground storage tank releases accomplished in compliance with Department of Natural Resources rules without a permit is not required to be reported as the disposal of solid waste or hazardous waste. (See Iowa Code Section 558.69) DNR fonn (November 02) 3. Hazardous Wastes - "Hazardous waste" is defined in Iowa Code section 455B.411, 567-141.2 (455B), lAC., and federal regulations referenced therein. It is generally defined as waste that poses a threat to human health or the environment. It includes wastes which are ignitable, corrosive, toxic, explosive, violently reactive, or specifically listed as hazardous in the Code of Federal Regulations (40 CFR 261). EXCLUDED are household wastes, agricultural wastes returned to the soil as fertilizers or soil conditioners, agricultural chemicals applied or disposed of by a farmer in accordance with the manufacturer's instructions, triple-rinsed agricultural chemical containers disposed of by farmers (where the rinsate is used as makeup water in the tankmix and applied at appropriate rates), and other specific materials. Persons are legally required to be aware of hazardous waste laws. 4. Underground Storage Tanks - "Underground storage tank" means one or a combination of tanks, including underground piping connected to the tanks, used to contain an accumulation of regulated substances, and the volume of which is 10 percent or more beneath the surface of the ground. "Regulated substances" include petroleum products and hazardous or toxic materials identified in 567--135.2(455B), LA,C. Underground storage tank does not include: a. Farm or residential tanks of 1,100 gallons or less capacity used for storing motor fuel for noncommercial purposes. But See 455B.473(4)) b. Tanks used for storing heating oil for consumptive use on the premises where stored. c. Residential septic tanks. d. Pipeline facilities regulated by state or federal law. e. A surface impoundment, pit pond, or lagoon. ( A storm water or wastewater collection system. g. A flow-through process tank. h. A liquid trap or associated gathering lines directly related to oil or gas production and gathering operations. i. A tank in an underground area such as a basement or mine, if the tank is on or above the surface of the floor. j. Pipes connected to the above exclusions. "Tank type" means the material of construction (steel, fiberglass reinforced plastic [FRP], or other [specifY]), and any internal or external protection such as a protective coating or wrapping, or cathodic protection. IdentifY the capacity in gallons and the substance stored in each tank. S. Private Burial Sites - "Private Burial Site" means one or more graves containing human remains. For each site the transferor shall state the location of the site. For each decedent buried on the property the transferor shall state all known identifying infonnation of that decedent including name, date of death, and date of birth. 6. Filing - The original of this fonn must be presented to the county recorder when the document to be recorded is filed. The Recorder shall forward the original to the transferee when the recorded instrument is returned. The recorder is not required to keep any copies. 543-0960 11I111111111111111111111111111111111111111111111111111111I1111111111111111111111 Ooc 10: 005469590005 Type: GEN Recorded: 08/07/2006 at 03:54:39 PM Fee Amt: $27.00 PaRe 1 of 5 DubuQue County Iowa Kathv Flvnn Thurlow Recorder F1le2006-00012074 Prepared by: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113 Return to: Barry A. Lindahl 300 Main Street Suite 330 Dubuque IA 52001 563 583-4113 MEMORANDUM OF DEVELOPMENT AGREEMENT A Development Agreement by and among the City of Dubuque, Iowa, an Iowa municipal corporation, of Dubuque, Iowa, and Kunkel Bounds and Associates, Inc., with its principal place of business at Mineral Point, Wisconsin (Developer), was made regarding the following described premises: Lot 6 Block 2 Dubuque Technology Park in the City of Dubuque, Iowa, according to the recorded plat thereof The Development Agreement is dated for reference purposes the 19lh day of June 2006, and contains covenants, conditions, and restrictions concerning the sale and use of said premises. This Memorandum of Development Agreement is recorded for the purpose of constructive notice. In the event of any conflict between the provisions of this Memorandum and the Development Agreement itself, executed by the parties, the terms and provisions of the Development Agreement shall prevail. A complete counterpart of the Development Agreement, together with any amendments thereto, is in the possession of the City of Dubuque and may be examined at its offices as above provided. By: ____c- By' -:7: Jeanne F. Schneider, City Clerk u X .LA c:J leD --i-. , /' (I. (.Ii} . 1 . KUNKEL BOUNDS & ASSOCIATES, INC. By: Timothy J. STATE OF IOWA DUBUQUE COUNTY 55: On thiS~ay O~~lf ~ tL J f, 2G? &; before me, a Notary Public in and for the State of Iowa, in and f r said county, personally appeared Roy D. Buol and Jeanne F. Schneider, to me personally known, who being by me duly sworn did say that they are the Mayor and City Clerk, respectively of the City of Dubuque, a Municipal Corporation, created and existing under the laws of the State of Iowa, and that the seal affixed to said instrument is the seal of said Municipal Corporation and that said instrument was signed and sealed on behalf of said Municipal corporation by authority and resolution of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said Municipal Corporation by it voluntarily executed. ~fUA '!t, ~j~?~~ o ry Public, State of Iowa A\., ", KAREN M. CHESTERMAN ~ : ~ COMMISSION NO.l08258 , ._' MY COMMISSION EXPIRES 0",. 4/24/08 STATE OF IOWA 55: DUBUQUE COUNTY On this l day of a~, 20t'~ before me, a Notary Public in and for the State of Iowa, in and fo said county, personally appeared Timothy J. Kunkel, to me personally known, who being by me duly sworn did say that he is the President of Kunkel Bounds & Associates, Inc., and that said instrument was signed on behalf of said company by authority of its members and that he acknowledged the execution of this instrument to be the voluntary act and deed of said company by it voluntarily executed. b~~ I e:r~~~. I ".. ~lii!OllJ. ^ -~"""..~-". -.-. . --------J- ~J '\..,.... t" - .l,~?f ,::'... . . d~ J' 1! . I.. ',' ,.. ~.._~~,~, r<' w Prepared by: Barry A. Lindahl, Corporation Counsel, 300 Main Street, Dubuque, IA 52001 (563) 583-4113 Return to: Jeanne F. Schneider, City Clerk, 50 West 13th Street, Dubuque IA 52001 RESOLUTION NO. 257-06 RESOLUTION APPROVING A DEVELOPMENT AGREEMENT PROVIDING FOR THE SALE OF LOT 6 BLOCK 2 DUBUQUE TECHNOLOGY PARK IN THE CITY OF DUBUQUE, IOWA, TO KUNKEL BOUNDS & ASSOCIATES, INC. Whereas, the City Council, by Resolution No. 214-06, dated June 5, 2006, declared its intent to enter into a Development Agreement with Kunkel Bounds & Associates, Inc. for the sale of Lot 6 Block 2 Dubuque Technology Park (the Property); and Whereas, pursuant to published notice, a public hearing was held on the proposed disposition on June 19, 2006 at 6:30 p.m. at the Carnegie-Stout Public Library Auditorium, 360 W. 11th Street, Dubuque, Iowa.; and Whereas, it is the determination of the City Council that approval of the Development Agreement for the sale to and development of the Property by Kunkel Bounds & Associates, Inc. according to the terms and conditions set out in the Development Agreement is in the public interest of the City of Dubuque. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the attached Development Agreement by and between the City of Dubuque and Kunkel Bounds & Associates, Inc. for the sale of the Property is hereby approved. Section 2. That the Mayor is hereby authorized and directed to execute the Development Agreement on behalf of the City and City Clerk is authorized and directed to attest to his signature. Section 3. That the Mayor and City Clerk are hereby authorized and directed to execute and deliver a Special Warranty Deed for the Property as provided in the Development Agreement. Section 4. That the City Manager is authorized to take such actions as are necessary to comply with the terms of the Development Agreement as herein approved. Passed, approved and adopted this 19th day of June, 2006. Attest: F:\USERS\DHeiar\KunkelBounds\Kunkel Bounds final disposition res.doc CERTIFICATE OF CITY CLERK STATE OF IOWA ) ) COUNTY OF DUBUQUE ) I, Jeanne F. Schneider, do hereby certify that I am the duly appointed, qualified, and acting Clerk of the City of Dubuque, Iowa in the County aforesaid, and as such Clerk I have in my possession or have access to the records of the proceedings of the City Council. I do further state that the hereto attached Resolution No. 257-06 is a correct copy of the original Resolution No. 257-06 approved and adopted by the City Council of the City of Dubuque, Iowa, at a session held by said Council on the 19th day of June, 2006. In Testimony Whereof, I hereunto set my hand and official seal of the City of Dubuque, Iowa. Dated at Dubuque, Iowa on this 19th day of July, 2006. ~~4-C/ra--~ . Jeanne F. Schneider, CMC City Clerk .:!;:-. "i;"" ." "":..' . , .., \ () I .,?' .;.. " 1; (;~.,. . '~,' ;i,. l~" , " ': ~'~':t~('~ ' . ~/S~w " ...\;", ~',' ( "",,, ,,~.~ .. j ,.. ;j. ~,""'J:'"!" 'rf!, :~'O:' ''''~ 'i'O!' 1':.; ':);"1 }.~, '\,,: >/". ~' " .,0/.... " ',' ~l'i'i".",S~ liT ~. ~...~ 00 00 - ;... E-< <z ~~ 00 ....u r.o.~ O~ ~o E-<~ <~ E-<~ oo~ z o 1= -< u :l >= ~ ro.. o Z o - "'" -< u - ro.. - "'" >I: '" U u " ;::.......... 4-< 0 - ~ 0 1-0 V,l" ;g (l) g, ;:: 0 .s a3 .S:: bJ)r" 0.. .....4-< "'... Vl B 0 '"0 ~ . '2 t) ~ ~ ~ :l Q, . Stl:lo'"O\O E ~ 5o'~ ~ o ~ ..E t:: rn U g ;:3:; .~ '"0 m 0 v Ol.l ra "'O"t; ~ ~ ~ _ ._..c: '"0 ~ ..0:0 u g ~ 3 2.J.j ~..c::8~:; ~ ~~f~~ ~ ~ g".g I-< ~~..co<.8 U'---::S s:::: Ol)J.jQ"Ell c _ 4-<..c: (Ij :.:: 4-< 0 U " :-;:::::: 0 >. (Ij ~ a:l t.~ ~ 0 ~~ U (1) ": ~~.,g..s0\ ..c - _ Q) t:: ::s s:::: ctl l=: ..... o..........c:: ;:::::l N ""'0 -..-. ti@oCVi 0.... ~..... Q) d~:.=t::1; ...!..6..c~"'O ~ e- 6..$' gf ::r: 0 s::: ll)...... u 0 ""' ~ C\l ..... 0 0 ..s~1t:S..c:= ctl ........" 0 ~..88~tH " c.~ 0 ~ _ (Ij u __ i ..8 .6 3 o U 0.> N Qo ~N <E . "" fii .S C' :l .0 :l Q ~ <E 11 '" .S Hi :1".......... a:, . "'.~ >-~w 00 E~ ~:i2 0"' ~~e )....!!!a a: Eo ~~~ 1~1. l"~;" 0.> 0 ~ ;., <E '" ~ .0 '" :l .- ",<'3