Opening of Bids - MarMain Apartments Roof Replacement Proj No. 122-061 - Midland Engineering Co., Inc.

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MIDLAND ENGINEERING COMPANY, INC. NOTES TO BALANCE SHEETS December 31, 2021 and 2020 NOTE 5 - LINE OF CREDIT At December 311 2021, the Company has an available line of credit of $4,000,000 with 1st Source Bank. Interest is payable monthly at the prime rate less 0.15%, subject to a minimum rate of 4% (4% at December 31, 2021). This line of credit expires on May 31, 2023 and is secured by substantially all assets of the Company. The line of credit agreement contains certain financial and nonfinancial covenants. At December 31, 2021, the Company was in compliance with these financial covenants. The Company had no borrowings under this facility at December 31, 2021 and 2020. NOTE 6 -LONG-TERM DEBT In order to limit the potential impacts of the pandemic, the Company obtained Small Business Administration (SBA) Loans under the Paycheck Protection Program, on April 13, 2020 and January 25, 2021 in the total amount of $4,420,500. The amount of the loan proceeds eligible for forgiveness was based on a formula using a number of factors, including the Company's use of loan proceeds for specific purposes, such as payroll costs, rent payments on certain leases, and certain qualified utility payments. On September 17, 2020 the Company submitted a forgiveness application for the initial loan, and as of April 12, 2021, the principal and all unpaid interest was fully forgiven by the SBA. On'July 30, 2021 the Company submitted a forgiveness application for the second loan and as of September 28, 2021, the principal and all unpaid interest was fully forgiven by the SBA. NOTE 7 -COMMON STOCK At December 31, 2021 and 2020 the Company has 50,000 shares of Class A Voting Common Stock and 450,000 shares of Class B Non -voting Common Stock authorized, with 21,106 shares of Class A Voting Common Stock and 189,954 shares of Class B Non -Voting Common Stock issued and outstanding. The shares have no par value. NOTE 8 -EMPLOYEE BENEFIT PLANS All full-time employees not subject to a collective bargaining agreement with one year of service are covered by the Profit Sharing Plan and Trust of Midland Engineering Company, Inc. Contributions are discretionary. The Company participates in numerous multi -employer pension plans ("MEPPs") that provide retirement benefits to certain union employees in accordance with various collective bargaining agreements. The risks of participating in these multiemployer plans differ from single -employer plans. The potential risks include, but are not limited to, the use of the Company's contributions to provide benefits to employees of other participating employers, the Company becoming obligated for other participating employers' unfunded obligations, and, upon the Company's withdrawal from a plan, the Company being required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. (Continued) 7.