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HomeMy WebLinkAbout5A8 & 9 Assignment - Confirmation Agreements (Great Lakes Capital) - SignedSouth Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Redevelopment Commission Agenda Item D ATE : 11/21/2024 FROM: Erik Glavich, Director of Growth & Opportunity SUBJECT: Assignment Agreement & Confirmation Agreement (Great Lakes Capital) Funding Source* (circle) River West; River East; South Side; Douglas Road; West Washington; RDC General; Riv. East Res. * Funds are subject to the City Controller's determination of availability; if funds are unavailable, as solely determined by the City Controller, then the authorization of the expenditure of such funds shall be void and of no effect. PURPOSE OF REQUEST: Assignment Agreement and Confirmation Agreement together enable the READI grant proceeds from the Northern Indiana Regional Development Authority (RDA) for the Madison Lifestyle District project to be directed to the Redevelopment Commission SPECIFICS: Great Lakes Capital and the RDA have entered into an agreement in which the RDA has agreed to provide $11,780,000 in support of the Madison Lifestyle District project. Adoption of the Assignment Agreement (with consent of the RDA) will allow the RDA to reimburse the Redevelopment Commission directly for costs incurred throughout the project. The Assignment Agreement is necessary for the Redevelopment Commission to receive the READI grant proceeds awarded to the project. The Confirmation Agreement between the Redevelopment Commission and Great Lakes Capital serves to set forth certain obligations of the Commission with respect to any portion of the READI grant funds received by the Commission and clarify certain aspects regarding the scope and advancement of the Madison Lifestyle District project. _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION 11-25-2024  ASSIGNMENT OF PROJECT FUNDS AGREEMENT PAGE 1 ASSIGNMENT OF PROJECT FUNDS AGREEMENT (WITH SEPARATE CONSENT) THIS ASSIGNMENT OF PROJECT FUNDS AGREEMENT (WITH SEPARATE CONSENT) (this Assignment Agreement made and entered into effective as of November _25_, 2024 (the , by and between Great Lakes Capital Development, LLC, an Indiana limited liability company and GLC Madison Development Corp., an Indiana corporation (together, the Assignor the City of South Bend, Department of Redevelopment, acting by and through its governing Assignee , with consent of the Northern Indiana Regional Development Authority, a Regional Development authority organized under Indiana Code § 36-7.6-1 et seq. and the laws of the State of Ind RDA . BACKGROUND A.Assignor and RDA are parties to a certain Northern Indiana Regional Development Authority Regional Economic Acceleration and Development Initiative Subgrant Agreement dated ___________________ Subgrant Agreement , pursuant to which the RDA has agreed to provide the sum of Eleven Million Seven Hundred Eighty Thousand Dollars ($11,780,000) Project Funds to perform work necessary in connection with the Project, all as defined in and subject to the terms of the Subgrant Agreement. B. Assignor and Assignee are parties to a certain Development Agreement dated on or which sets forth various rights and obligations related to development of the Project, including (among other things) the use of Project Funds to pay or reimburse for site work, local public improvements and related site costs as part of the Project. C. The Assignor desires to assign to Assignee, and Assignee desires to accept such assignment, of a portion (or all) of the Project Funds from time to time for use in connection with the Project, including (among others) for site assembly, demolition and for site work and local public improvements all on the terms and conditions set forth herein (and as contemplated under Section 29 of the Subgrant Agreement). NOW, THEREFORE, in consideration of the covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Assignor and Assignee covenant and agree as follows: 1. Assignment. From and after the Effective Date, Assignor agrees that (a) it may, from time to time, submit a Claims Voucher (with the joinder signature of Assignee) to the RDA for payment of a portion (or all) of the Project Funds to the Assignee (, and (b) any Claim for City is deemed an assignment to, and assumption by, Assignee of the portion of the Project Funds set forth in the Claim for City, and (c) any assignment/assumption and Claim for City shall be subject to all terms and provisions set forth herein and in the Subgrant Agreement. The parties covenant and agree that as a condition to Assignor and Assignee submitting a Claim for City, there shall be no default by Assignor under the Subgrant Agreement or separate Repayment Agreement between the RDA and Assignor. November 18 ASSIGNMENT OF PROJECT FUNDS AGREEMENT PAGE 2 2. Acceptance. As a condition to Assignee receiving any Project Funds requested in a Claim for City, Assignee hereby covenants and agrees (subject to it having signed a Claim for City and receiving any portion of Project Funds) to be bound by the terms and conditions of the READI program as well as certain provisions of the Subgrant Agreement as if Assignee were an original party/grantee thereto, including the following Sections: Section Section Heading Section 8 Restrictions of Project Funds Section 10 Compliance with Laws Section 11 Compliance with Audit and Reporting Requirements; Maintenance of Records Section 25 Periodic Monitoring Reviews Section 30 Good Faith Assurances Assignor and Assignee agree to cooperate, in good faith, with making any certifications required from the RDA and/or to (a) respond to reasonable requests from the RDA with respect to the any and all Claims for City, and (b) otherwise comply in full with the Subgrant Agreement for any Claim for City. 3. Signatures. This Assignment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The parties hereto may execute and deliver this Assignment by forwarding facsimile, e-mail, or other means of copies of this Assignment showing execution by the party sending the same, and the parties agree and intend that such signature shall have the same effect as an original signature and that the parties shall be bound by such means of execution and delivery. 4. Governing law. This Assignment Agreement shall be construed and enforced in accordance with the internal laws of the State of Indiana. Neither party hereto shall have the right to further assign any rights to Project Funds or other benefits under the Subgrant Agreement without obtaining the prior written agreement of the counterparty hereto, together with consent of the RDA. 5. Miscellaneous. A. The headings in this Assignment Agreement are intended solely for reference and will be given no effect in the construction or interpretation of this Agreement. B. The parties agree that this Assignment Agreement, including any attached exhibits and/or attachments, supersedes all prior oral and written proposals and communications, if any, and sets forth the entire agreement of the parties with respect to the subject matter hereof. ASSIGNMENT OF PROJECT FUNDS AGREEMENT PAGE 3 C. This Assignment Agreement may not be altered or amended except in writing, signed by each of Assignor and Assignee, with a separate consent of the RDA. D. No waiver of any default, failure to perform, condition, provision, or breach of this Agreement will be deemed to imply or constitute a waiver of any other like default, failure to perform, condition, provision, or breach of this Agreement. F. If any paragraph, term, condition, or provision of this Agreement is found by a court of competent jurisdiction to be invalid or unenforceable, or if any paragraph, term, condition, or provision is found to violate or contravene the laws of the State of Indiana, then the paragraph, term, condition, or provision so found will be deemed severed from this Agreement, but all other paragraphs, terms, conditions, and provisions will remain in full force and effect. G. The undersigned on behalf of each of Grantor and Grantee attests, subject to the penalties for perjury, that the undersigned is the Grantor or Grantee (as the case may be), or that the undersigned is the properly authorized representative, agent, member, or officer of Grantor or Grantee (as the case may be) and has all due authority to execute this Agreement. [Signature Page Follows] ASSIGNMENT OF PROJECT FUNDS AGREEMENT PAGE 4 IN WITNESS WHEREOF, the undersigned have executed this Assignment Agreement as of the Effective Date first above written. SSIGNEE SOUTH BEND REDEVELOPMENT COMMISSION By: Printed: Troy Warner, President By: Printed: Vivian G. Sallie, Secretary SSIGNOR GREAT LAKES CAPITAL DEVELOPMENT, LLC By: Printed: Bradley J. Toothaker, Manager GLC MADISON DEVELOPMENT CORP. By: Printed: Bradley J. Toothaker, President ASSIGNMENT OF PROJECT FUNDS AGREEMENT PAGE 5 CONSENT OF NORTHERN INDIANA REGIONAL DEVELOPMENT AUTHORITY This Consent is made by the Northern Indiana Regional Development Authority (the and is attached to and made a part of that certain ASSIGNMENT OF PROJECT FUNDS AGREEMENT (WITH SEPARATE CONSENT) Assignment Great Lakes Capital Development, LLC, an Indiana limited liability company and GLC Madison Assignor Department of Redevelopment, acting by and through its governing body, the South Bend Assignee The RDA does hereby consent to the terms of the [Remainder of Page Intentionally Blank] ASSIGNMENT OF PROJECT FUNDS AGREEMENT PAGE 6 IN WITNESS WHEREOF, the RDA has executed this Consent to be effective as of the Effective Date of the Assignment (referenced above) RDA Northern Indiana Regional Development Authority By: ___________________________ Name: John DeSalle Its: Board Chair CONFIRMATION AGREEMENT PAGE 1 CONFIRMATION AGREEMENT THIS CONFIRMATION AGREEMENT Agreement made and entered into effective as of November _25th, 2024 , by and between Great Lakes Capital Development, LLC, an Indiana limited liability company and the City of South Bend, Department of Redevelopment, acting by and through its governing body, the South Bend (each, a Party, and collectively, the arties ). BACKGROUND A. Developer and Commission are parties to a certain Development Agreement dated which sets forth various rights and obligations related to development of the Project Property for the Project (as defined in the Development Agreement, as may be amended from time to time). Terms used but not otherwise defined herein are as defined in the Development Agreement. B. parties to a certain Northern Indiana Regional Development Authority Regional Economic Acceleration and Development Initiative Subgrant Agreement dated _November 18_____, 2024 (the award $11,780,000 (the to perform work necessary in connection with the Project as well as a Repayment Agreement regarding the repayment of all or portion of the READI Grant in certain events (the . C. The Development Agreement contemplates that the Parties use the READI Grant (as defined in the Development Agreement, as may be amended from time to time) for the Project. D. Simultaneous with this Agreement, the Developer and Commission are entering into a certain Assignment of Project Funds Agreement (with separate consent of RDA), for Parties to apply for and receive all or a portion of the READI Grant from the RDA subject to the terms of such agreement (the E. The Parties desire to make a claim for the RDA to pay a portion of the READI Grant to Commission, for reimbursement to or use by the Commission in connection with work to be performed in furtherance of the Project, which includes demolition of the six-story office building located at 531 N. Main Street, South Bend, Indiana 46601 owned by Beacon Health System and/or its affiliates, construction of a surface parking lot on the site, and other activities . F. The Parties acknowledge that use of the READI Grant for Other Work (although permitted under the Subgrant Agreement with the RDA) is not contemplated under the Development Agreement as part of spending required for Local Public Improvements for the Project as of March 28, 2024. CONFIRMATION AGREEMENT PAGE 2 G.The Parties enter into this Agreement to (i) set forth certain obligations of the Commission with respect to any portion of the READI Grant advanced to Commission, either (x) for its use or as a reimbursement for items other than as contemplated in the Development Agreement, and/or (y) prior to the Developer and Commission executing a Notice to Commence under the Development Agreement, and (ii) memorialize certain aspects regarding the scope and advancement of the Project. NOW, THEREFORE, in consideration of the background above (including without limitation the Assignment Agreement), and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Commission and Developer agree as follows: 1.Background Provisions. The background provisions above are incorporated into the body of this Agreement as if fully set forth herein and made a part hereof. 2.Assignment of READI Grant. assignment of all or any portion of the READI Grant to Commission, the Commission acknowledges and agrees that: a.Use for Other Work. Any Other Work performed by the Commission does defined in the Development Agreement) toward Local Public Improvements under such Development Agreement. In this regard, any portion of the READI Grant assigned to the Commission for payment or reimbursement to the Commission (directly or indirectly) for t toward Local Public Improvements under the Development Agreement. For example, if and to the extent the RDA advances $5,000,000 of the READI Grant to Commission as a reimbursement of certain demolition costs as part of Other Work, the Commission is responsible to pay $5,000,000 toward Local Public Improvements as defined by the Development Agreement for the Project to ensure that One Hundred Percent (100%) of the READI Grant amount is used toward the Local Public Improvements (in addition to any other obligations of Commission under the Development Agreement). b.Advancement Prior to Notice to Commence. The Commission shall be solely responsible to pay Developer, any amount that Developer is required to repay the RDA under the Repayment Agreement (up to the amount of the READI Grant received by the Commission) if and to the extent any such portion of the READI Grant is advanced prior to the Parties entering into a Notice to Commence under the Development Agreement and the Parties do not enter into such a Notice to Commence. In such event, any such payment to Developer shall be required at the same time Developer is required to repay amounts to the RDA under the Repayment Agreement. c.Repayment with any Default by Commission. Notwithstanding anything herein to the contrary, the Commission agrees to pay Developer any amount that Developer is required to pay the RDA under the Repayment Agreement (up to the amount of the CONFIRMATION AGREEMENT PAGE 3 READI Grant advanced to the Parties), due to any default or breach by the Commission of its obligations under the Assignment Agreement or Development Agreement. 3.Confirmation of Certain Project Items. The Parties, desiring to confirm certain items with the Project, agree that: a.Cooperation/Reporting. The Commission will lead the public procurement process for any Local Public Improvements in the Development Agreement. Developer will cooperate in good faith with supporting such process. In addition, the Commission agrees to assist Developer, on reasonable request, with providing documentation and reporting to the RDA (if and when required under the Subgrant Agreement and/or Assignment Agreement) regarding the deployment and use of the READI Grant. b.Coordination. The Parties agree to cooperate in good faith and coordinate for the Project to utilize existing/improved off-site stormwater infrastructure when feasible for release into the river at no cost to Developer. Any off-site infrastructure would reduce any on-site percentage requirements. Commission will be responsible for the relocation of utilities, if any, and delivery of the Project Property in pad ready (unencumbered condition for development), with utilities stubbed to Project Property without use of the Funding Amount, for the Parties to then advance with respective portions of the Project set forth in the Development Agreement. The Parties agree to cooperate to evaluate and, if and to the extent feasible and mutually agreeable, locate some project stormwater facilities under Madison Street. c.Funding Amount. The Funding Amount, plus such additional sums as are necessary to complete the Local Public Improvements (as well as delivery of the Project Property in pad ready condition) are the responsibility of Commission under the Development Agreement. In order to advance with Project planning before a Notice to Commence (in order to maintain a critical path schedule for completion dates under the Development Agreement and Subgrant Agreement), the Commission will provide support for the Project Plan to meet or exceed an eight percent (8%) return on cost if and in the event financial metrics are below this minimum. Such support may include (among others), paying for the ground lease for location of structured parking, making additional financial contributions or expansion of Local Public Improvements, master leasing of space within the Project upon completion and/or acquiring and preparing additional land for development for the Project with reduced cost to the Project. d.Parking License. The Parties are advancing with preparation of the Ground Lease, Structure Easement and Parking License as provided in Sections 4.4 and 4.5 of the Development Agreement, prior to entering into a Notice to Commence. Such parking license will reserve to Commission, the sole responsibility for all costs of maintaining and operating the Garage. The Parties agree to cooperate in good faith to identify the parking required to support the operations of the Project (beyond those reserved by Commission for Beacon and for use by the public) during the initial intended twenty-five (25) year term of the Parking License, together with any charges (if applicable) as part of meeting or exceeding the minimum financial metrics set forth above for Project viability. CONFIRMATION AGREEMENT PAGE 4 4.Signatures. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The Parties hereto may execute and deliver this Assignment by forwarding facsimile, e-mail, or other means of copies of this Agreement showing execution by the Party sending the same, and the Parties agree and intend that such signature shall have the same effect as an original signature and that the Parties shall be bound by such means of execution and delivery. [Signature Page Follows] CONFIRMATION AGREEMENT PAGE 5 IN WITNESS WHEREOF, the undersigned have executed this Assignment Agreement as of the Effective Date first above written. SOUTH BEND REDEVELOPMENT COMMISSION By: Printed: Troy Warner, President By: Printed: Vivian G. Sallie, Secretary GREAT LAKES CAPITAL DEVELOPMENT, LLC By: Printed: Bradley J. Toothaker, Manager Page 1 of 21 NORTHERN INDIANA REGIONAL DEVELOPMENT AUTHORITY REGIONAL ECONOMIC ACCELERATION AND DEVELOPMENT INITIATIVE SUBGRANT AGREEMENT This Regional Economic Acceleration and Development Initiative Subgrant Agreement (“Agreement”) is entered into as of November 18, 2024 (“Effective Date”), by and between the Northern Indiana Regional Development Authority, a Regional Development Authority organized under Indiana Code § 36-7.6-1 et seq. and the laws of the State of Indiana (the “RDA”), Great Lakes Capital Development, LLC, an Indiana limited liability company (the “Sponsor”) and GLC Madison Development Corp., an Indiana corporation (“Grantee”). WHEREAS, the Indiana Economic Development Corporation (the “IEDC”) is a pass- through subrecipient of federal monies granted from Coronavirus State Fiscal Recovery Funds to the State of Indiana (the “Federal Program”). WHEREAS, the RDA is a lower tier subrecipient under the Federal Program and has entered into a grant agreement with the IEDC, a copy of which is attached hereto as Exhibit “A” and made a part hereof (the “IEDC Agreement”), to enable the IEDC to award a grant of Fifty Million Dollars ($50,000,000.00) to the RDA (the “Grant”) for certain eligible costs to implement the RDA’s Regional Economic and Acceleration Development Initiative (“READI”), which includes awards to other public and private entities for the performance of a service or project. WHEREAS, Sponsor and Grantee have proposed the project as described on Exhibit “B” attached hereto and made a part hereof (“Project”) and the RDA wishes to provide a portion of the Grant funds to Grantee for Grantee to perform (or cause to be performed subject to this Agreement) the work necessary to complete such Project. WHEREAS, pursuant to the IEDC Agreement, the RDA has requested and received approval of Grant funds for the Project from the IEDC, in accordance with the Claim Form (as hereinafter defined) in the amount of ELEVEN MILLION SEVEN HUNDRED EIGHTY THOUSAND AND 00/100 DOLLARS ($11,780,000.00) (“Project Funds”). WHEREAS, Grantee requests that Project Funds be obtained and disbursed to Grantee to be utilized for the Project pursuant to the terms and conditions of this Agreement. WHEREAS, the RDA agrees to disburse Project Funds in accordance with this Agreement. WHEREAS, it is understood that Michiana Partnership, Inc. d/b/a South Bend-Elkhart Regional Partnership, an Indiana nonprofit corporation (the “Administrator”), will provide administrative and operational assistance to the RDA in regard to certain of the RDA’s obligations under the IEDC Agreement and this Agreement, including distribution of Project Funds, all in accordance with that certain Contract for Services dated May 26, 2022 by and between the RDA and the Administrator, as amended by that certain First Amendment of Contract for Services dated February 1, 2022, and as amended by that certain Second Amendment of Contract for Services dated August 1, 2022 (collectively the “Administrative Agreement”). NOW, THEREFORE, in consideration of the mutual promises herein contained and other Page 2 of 21 good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows: 1.TERM OF AGREEMENT. This Agreement shall be effective upon the Effective Date and shall remain in full force and effect, unless sooner terminated in accordance with the terms herein or otherwise extended by the terms hereof, until a letter of completion is issued by the IEDC (the “Expiration Date”). 2.PROJECT CLAIM FORM. Prior to the execution of this Agreement, Grantee completed and submitted the Regional Development Plan Project Claim Form (“Claim Form”) to the RDA for approval and submittal to the IEDC. The Claim form was approved by the RDA, submitted to the IEDC, and approved by the IEDC for the Project. The approved Claim Form (and all other approval documents provided by the IEDC) is attached hereto as Exhibit “C” and made a part hereof. In connection with the submission of the Claim Form, if applicable to Grantee, the RDA shall require Grantee to provide its indirect cost rate, as defined in 2 CFR § 200.414, as amended from time to time. 3.DUTIES AND RESPONSIBILITIES OF GRANTEE. Grantee shall use the Project Funds received pursuant to this Agreement exclusively in compliance with the provisions of this Agreement, the approved Claim Form, the IEDC Agreement, the RDA’s Regional Development Plan (“RDP”), and federal and state (in conformance with Indiana Code §5-28-37, Indiana Code §5-28-38, and other legal authority affecting the use of Project Funds) laws. In exchange for receipt of the Project Funds for the Project, the Grantee also agrees to comply with the following: A.Compliance with IEDC Agreement; Federal Statutes and Regulations. Grantee shall comply with any and all of the applicable terms, provisions, conditions and restrictions contained in the IEDC Agreement. Grantee shall remain in compliance with the federal statutes and regulations at 2 C.F.R. § 200 et seq., and the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, including, but not limited to, Subparts A-F. By submitting a Claim Form and/or Claim Voucher (as hereinafter defined), the Grantee certifies to the RDA that all claims for payment are allowable, allocable, and reasonable in accordance with 2 C.F.R. § 200.403 and the other cost principles in Subpart E of Part 200, as all are amended from time to time. Grantee represents, as is applicable, that it is currently in compliance with and shall remain in compliance with 2 C.F.R. Part 25, as amended from time to time, requiring registration in the federal System for Award Management (SAM.gov), and 2 C.F.R. Part 170, as amended from time to time, requiring reporting of subaward and executive compensation information, as amended from time to time. B.Distribution of Project Funds. Grantee understands and agrees that local and private dollars will be expended by Grantee for projects funded by the Grant and the totality of the Grant through READI requires a minimum of a 4:1 ratio to Grant funds by the completion of READI. The 4:1 match must be comprised of a minimum of a 1:1 ratio in Grant funds to local public funding by the completion of READI. Public funding may, as appropriate, include private non-profit economic development organizations and foundations. Grantee must provide evidence of compliance with this paragraph 3.B upon Page 3 of 21 completion of the Project in a format designated by the RDA or the IEDC, and the commitments made by Grantee, in the Claim Form, as to sources of funds must be maintained in order for the RDA to properly satisfy its obligations. C.Applying for Funding. Grantee shall be solely responsible for applying for, securing, and retaining federal, state, or other public or private funding of any nature the Grantee wishes to obtain to assist Grantee in carrying out the Project. D.Design and Implementation. The Grantee shall be solely responsible for overseeing and/or completing the proper design and implementation of the Project approved by the RDA. E.Documentation. Upon request, Grantee shall provide the RDA with any necessary information or documentation regarding any contracts, agreements, or similar documents with other parties relating to this Agreement or the Project, including, but not limited to, any subcontract agreements, interlocal memorandums of understanding, letters of intent from financial institutions, agreements with other state agencies, federal grants, developer specifications, and tenant arrangements that, upon Grantee’s reasonable best efforts, are available. Grantee shall provide notice to the RDA of any material changes to the aforementioned contracts, agreements, or similar documents. Upon request, Grantee shall submit the materially changed contracts, agreements, or similar documents to the RDA. Grantee acknowledges and agrees that all elements required by 2 CFR § 200.332(a), as amended from time to time, shall be included in the award of Project Funds and the Grantee shall provide such information, as necessary. F.Grantee’s Contractors. Grantee understands and agrees that Grantee and any of its selected contractors and/or subcontractors are solely responsible for the selection of vendors, contractors, subcontractors, and similar parties for the performance of all aspects of the Project. The RDA has no role in selecting any vendors, contractors, subcontractors, or similar party for the performance of the Project, regardless of whether the RDA has listed the vendor, contractor, subcontractor, or similar party on the Claim Form. Grantee may enter into any contracts or agreements necessary or incidental to the performance of this Agreement or the Project; however, the RDA shall not be bound by any contracts or agreements of Grantee unless otherwise agreed to by RDA in writing. G.Further Assurances. Grantee shall from time to time execute and deliver all other documents and instruments and do all things and acts as the RDA reasonably deems necessary to comply with the IEDC Agreement or carry out, better evidence, or perfect the full meaning of this Agreement. 4.PROJECT COMPLETION ACCORDING TO CLAIM FORM. Grantee represents and warrants it has furnished all information, plans, drawings, and specifications as part of the Claim Form in connection with the Project. Grantee shall discharge the services and/or complete the work according to the true intent and meaning of this Agreement, for such intent and meaning the RDA shall be the sole interpreter. It is intended that the Claim Form shall include everything required and necessary to complete the entire Project properly, even though certain minor items may not be mentioned. All services shall be completed in accordance with the Claim Page 4 of 21 Form and all work when finished shall be in a complete and undamaged condition. Unless otherwise set forth in this Agreement, Grantee shall not discharge any services nor undertake any work on the Project without an approved Claim Form. The Project is to be made complete in accordance with the Claim Form and to the satisfaction of the RDA notwithstanding any omissions in the information, plans, drawings, or specifications submitted to the RDA. Grantee hereby warrants to the RDA that Grantee shall (i) complete or caused to be completed the structured parking components of the Project by December 31, 2026, with the balance of the Project completed on or before the Completion Date (as defined below) and (ii) expend Project Funds in accordance with this Agreement and the IEDC Agreement for the Project, in full prior to December 31, 2026. Grantee acknowledges and agrees that any breach of the warranties herein shall constitute an event of default hereunder and shall entitle the RDA to claw back Project Funds previously paid to Grantee in accord with this Agreement, including Sections 8 and 15 herein, or to suspend payments of ongoing or future Project Funds, as the case may be. Grantee shall comply with all applicable administrative actions and work required by 2 CFR § 200.344, as amended from time to time. Grantee agrees that the Project must be completed no later than the date as may be provided in the Project Claim Form and in no event later than December 31, 2028, unless as otherwise agreed to by the RDA and IEDC in writing (such date the “Completion Date”). Grantee’s failure to complete the Project by the Completion Date shall constitute an event of default under this Agreement. 5.MATERIAL CHANGE. Grantee shall provide notice to the RDA within fifteen (15) days of any material change to the Project on the form attached hereto as Exhibit “D”, which is made a part hereof (a “Material Change Notice”). A material change occurs when there is any of the following: (i) an increase in the total cost of the Project of five percent (5%) or more and which, as a result of said increase, would require additional Project Funds for the Project, or (ii) a change in the nature of the Project from the Grantee’s submission on the approved Claim Form as further described on Exhibit B attached hereto (“Material Change”). After the RDA’s receipt of a Material Change Notice, the RDA will notify the IEDC to determine if an amended Claim Form is required to proceed with the Project. In the event there is a Material Change requiring an amended Claim Form, such Claim Form will be subject to the IEDC’s further approval or denial. Notwithstanding any other remedy herein, in the event that Project Funds have been disbursed to the Grantee and the IEDC and/or the RDA reasonably determines the Project is becoming unviable for any reason, including due to a Material Change, or either the RDA or IEDC reasonably determines Project Funds have or will be used in a manner not permitted by this Agreement, the Grantee shall return all Project Funds transferred to it by the RDA, if so demanded in writing by the RDA, and shall cease any further expenditure of Project Funds for the Project until such time as the parties reach an agreement in writing on how to proceed. 6.ADMINISTRATIVE FEE. As set forth in the IEDC Agreement, Administrator, pursuant to the terms of the IEDC Agreement and the Administrative Agreement with the RDA, may request in the submitted Claim Form to retain up to three percent (3%) of the total cost of the Project from the Project Funds (“Administrative Fee”). Administrator, pursuant to the terms of the IEDC Agreement and the Administrative Agreement, may use the Administrative Fee to defray the administrative costs directly associated with implementing READI. 7.DISBURSEMENT OF PROJECT FUNDS. Page 5 of 21 A.Grantee agrees that the Project Funds, less any Administrative Fee to be retained by Administrator, shall be disbursed in accordance with Section 6 of the IEDC Agreement and the Claims Voucher process set forth herein. Each application for disbursement of Project Funds shall be made in writing and shall be directed to the RDA in the form of the Claim Voucher attached hereto and incorporated herein as Exhibit “E” (“Claim Voucher”). The parties reasonably anticipate that payments under each Claim Voucher shall be made in the amounts and on or about the designated date or Project completion thresholds included on Schedule 1 attached hereto. Grantee hereby warrants to complete the Project and expend Project Funds in strict accordance with this Agreement and the IEDC Agreement. B.In the sole discretion of the RDA, Schedule 1 may be modified in writing by the parties hereto in the event that larger disbursements are needed for the success of the Project. Claim Vouchers shall be submitted to the IEDC within thirty (30) calendar days following the end of the month in which work on or for the Project was performed. The RDA shall review and, if appropriate, approve, each Claim Voucher, which Claim Voucher shall then be reviewed and, if appropriate, approved by the IEDC. Each submission of a Claim Voucher shall be deemed a certification by Grantee that as of the date of such submission, all representations and warranties contained in this Agreement are true and correct and that Grantee is in compliance with all the provisions of this Agreement and the IEDC Agreement. The RDA’s obligation to make each disbursement of the Project Funds under this Agreement shall be subject to the approval by the IEDC of the Claim Voucher and, if requested by the RDA, (i) the receipt by the RDA of a certification by an engineer, architect, or other qualified inspector acceptable to the RDA that the construction of the Project has reached the required percentage stage of completion set forth above and such construction has complied with and will continue to comply with all applicable statutes, ordinances, codes, regulations and other similar requirements as set forth in the Claim Form and this Agreement, and (ii) such supportive documentation as designated by the IEDC, which may include evidence that the Project is materially compliant with the timeline provided in the Claim Form. After the Claim Voucher has been approved by the IEDC, disbursement of Project Funds shall be made by the IEDC within thirty-five (35) days of receipt of the application and supporting documentation outlined herein and shall be made in accordance with this Agreement. Grantee shall provide notice to the RDA when the Project is completed. The RDA will subsequently notify the IEDC who shall review the Project and shall issue a letter of completion to the RDA to acknowledge the Project completion. C.The RDA’s obligation to make disbursement of the Project Funds under this Agreement shall be subject to receipt by the RDA of all applicable documentation, including, without limitation, some or all of the following as determined by and in the sole discretion of the RDA: (1)receipt of final approved plans and specifications and construction budget acceptable to the RDA, for any or all of the Project for which Project Funds are requested, providing sufficient detail to ensure adequate monitoring during construction and confirmation that the budget is adequate to complete the work outlined in the plans and specifications; Page 6 of 21 (2)executed Statement of Compliance that the Project Description identified in Exhibit “B” is in all material respects the same Project that will be constructed using Project Funds; (3)fully executed: (a)financing agreements, if any, (including without limitation, loan agreements, notes, guaranties, mortgages, security agreements, title insurance, surveys, environmental site assessments, and such other documents) provided to the lender or as otherwise required by the RDA; (b)all economic incentive agreements other than the Project Funds from all sources, including state, federal and local; (c)all documents evidencing (coupled with the Project Funds) that all necessary funds to complete the Project have been obtained; (d)Performance Bond, Payment Bond, Personal Guaranty, or such other form of guaranty as may be required by the RDA from the Grantee in an amount equal to the Project Funds to assure that the Project Funds are used in the Project in accordance with this Agreement; (4)proof of ownership, leasehold rights or other rights reasonably satisfactory to the RDA that Grantee has the right and access to the real property for which the Project will be completed; (5)all required land use and other federal, State or local approvals; (6)corporate documentation reasonably satisfactory to the RDA establishing Grantee’s corporate (or other form) existence and authority, as well as establishing the authority of the signatory below to execute this Agreement; (7)that certain Commitment and Repayment Agreement duly executed by and between Sponsor and the RDA (the “Repayment Agreement”); and (8)if applicable, that certain Assignment of Project Funds Agreement (the “Assignment Agreement”) as further defined in Section 29. 8.RESTRICTIONS OF PROJECT FUNDS. Grantee, upon its own credit and expenses, assumes the sole risk for all costs incurred prior to the RDA and the IEDC’s approval of the Claim Form. Grantee may incur any cost for the Project it deems appropriate, without RDA’s approval, if Grantee does not intend to request reimbursement for such expenses with Project Funds. Grantee represents and warrants that any Project Funds it receives for the Project will be used only as permitted by this Agreement and the IEDC Agreement, as applicable. Project Funds shall not be expended by Grantee to cover any costs associated with the following: (i) travel expenses or meals; (ii) applying for READI; or (iii) any costs incurred before January 1, 2022. Project Funds may only be expended by Grantee to cover the costs deemed an Eligible Cost (as defined in the IEDC Agreement). Eligible Costs are defined as: Page 7 of 21 A.Statutory Uses. (1)To respond to the COVID-19 public health emergency or its negative economic impacts; (2)To respond to workers performing essential work during the COVID-19 public health emergency by providing grants to eligible employers that have eligible workers who performed essential work; (3)For the provision of government services, to the extent the reduction in revenue of such recipient due to the COVID-19 public health emergency, relative to revenues collected in the most recent full fiscal year of the recipient prior to the emergency; and/or (4)To make necessary investments in water, sewer or broadband infrastructure. B.Administrative Uses. Administrative Uses shall include but are not limited to project support costs, grant management, grant compliance, office personnel, legal fees subject to the limitations of 2 CFR §§ 200.435 and 200.441, accounting fees, audit fees and all other administrative costs not specifically prohibited by the IEDC Agreement. Grantee shall use Project Funds in compliance with the Eligible Costs, as further detailed in Schedule 2 attached hereto. Grantee shall promptly notify the RDA of any known or suspected failure to use the Project Funds in accordance with this Agreement. Upon such notification, the RDA and Grantee shall work together to resolve the concerns. In the event that the RDA determines that there has been a failure to use Project Funds in accordance with this Agreement and such failure cannot be immediately resolved, the RDA may: (i) notify Grantee to return all Project Funds transferred to it by the RDA and may use any and all legal remedies to collect the same if Grantee is noncompliant with such request or (ii) take any other action permitted by this Agreement or otherwise permitted by law to recover the Project Funds not used in accordance with this Agreement. If Grantee fails to comply with applicable laws, rules, regulations, terms and conditions of this Agreement, the RDA may, in its sole discretion, suspend or terminate this Agreement as set forth herein. 9.PROJECT CONSTRUCTION. The Grantee shall, through itself, contractors, or vendors, furnish all labor, supervision, materials, temporary structures, scaffolding, equipment, tools, and appliances of any sort which are necessary to complete the Project. All construction equipment shall be of adequate size and capacity to safely and efficiently handle the work for which it is used. 10.COMPLIANCE WITH LAWS. A.Grantee shall comply with all applicable federal, state and local laws, rules, regulations and ordinances, and all provisions, including but not limited to federal laws and guidance of the American Rescue Plan Act of 2021 (“ARPA”), U.S. Treasury guidance and policies, Office of Management and Budget (“OMB”) and/or State Board of Accounts (“SBA”) policies and procedures for reporting, SBA guidance on administration and Page 8 of 21 tracking of federal COVID funds, and any policies or procedure implemented by the RDA and/or the IEDC for administration of READI. All such materials required thereby to be included herein are hereby incorporated by reference. The enactment or modification of any applicable state or federal statute or the promulgation of rules or regulations thereunder after execution of this Agreement shall be reviewed by the RDA to determine whether the provisions of this Agreement require formal modification. B.Grantee and its agents shall abide by all ethical requirements that apply to persons who have a business relationship with the State of Indiana as set forth in IC § 4-2- 6, et seq., IC § 4-2-7, et seq. and the regulations promulgated thereunder. If Grantee has knowledge, or would have acquired knowledge with reasonable inquiry, that a state officer, employee, or special state appointee, as those terms are defined in IC 4-2-6-1, has a financial interest in Project Funds, Grantee shall ensure compliance with the disclosure requirements in IC § 4-2-6-10.5 prior to the execution of this Agreement. If Grantee is not familiar with these ethical requirements, Grantee should refer any questions to the Indiana State Ethics Commission or visit the Indiana Inspector General’s website at http://www.in.gov/ig/. If Grantee or its agents violate any applicable ethical standards, the RDA may, in its sole discretion, terminate this Agreement immediately upon notice to Grantee. In addition, Grantee may be subject to penalties under IC §§ 4-2-6, 4- 2- 7, 35-44.1-1-4, and under any other applicable laws, all as amended from time to time. C.Grantee certifies by entering into this Agreement that, to the best of its knowledge, it is not presently in arrears in payment of taxes, permit fees or other statutory, regulatory, or judicially required payments to the State of Indiana. D.Grantee warrants that, to the best of its knowledge, it has no current, pending or outstanding criminal, civil, or enforcement actions initiated by the State of Indiana, and agrees that it will immediately notify the RDA of any such actions. During the term of such actions, Grantee agrees that the RDA may suspend funding for the Project. E.Grantee warrants that, to the best of its knowledge, Grantee and any contractors performing work in connection with the Project shall obtain and maintain all required permits, licenses, registrations, and approvals, and shall comply with all health, safety, and environmental statutes, rules, and regulations in the performance of work activities for the State of Indiana. Failure to do so may be deemed a material breach of this Agreement and grounds for immediate termination and denial of grant opportunities with the State of Indiana. F.Grantee affirms that, if it is an entity described in Indiana Code Title 23, it is properly registered and owes no outstanding reports to the Indiana Secretary of State. G.If the RDA is asked by the IEDC or the SBA or any agency or instrumentality of the Federal government to repay any Grant funds that the RDA has disbursed to Grantee, Grantee shall, within fifteen (15) days of notice of such demand, reimburse those funds to the RDA. H. As required by IC § 5-22-3-7, as amended from time to time: Page 9 of 21 (1)Grantee certifies that: (a)Grantee, except for de minimis and nonsystematic violations, has not violated the terms of: (i)IC § 24-4.7 [Telephone Solicitation Of Consumers]; (ii)IC § 24-5-12 [Telephone Solicitations]; or (iii)IC § 24-5-14 [Regulation of Automatic Dialing Machines]; in the previous three hundred sixty-five (365) days, even if IC 24- 4.7 is preempted by federal law, all as amended from time to time; and (b)Grantee will not violate the terms of IC § 24-4.7 for the duration of this Agreement, even if IC §24-4.7 is preempted by federal law, all as amended from time to time. (2)Grantee certifies that no affiliate of Grantee or any agent acting on behalf of Grantee or on behalf of an affiliate of Grantee, except for de minimis and nonsystematic violations, (a)has violated the terms of IC § 24-4.7 in the previous three hundred sixty-five (365) days, even if IC § 24-4.7 is preempted by federal law, all as amended from time to time; or (b)will violate the terms of IC § 24-4.7 for the duration of this Agreement even if IC § 24-4.7 is preempted by federal law, all as amended from time to time. I.Grantee shall complete and return the Information and Questionnaire, attached hereto as Exhibit “F”, and incorporated fully herein. J.Grantee warrants that to the best knowledge of the undersigned on behalf of Grantee, neither the undersigned nor any other member, employee, representative, agent, or officer of Grantee, directly or indirectly, has entered into or been offered any sum of money or other consideration for the execution of this Agreement other than that which appears upon the face hereof. K.Notwithstanding anything herein to the contrary, any obligation, duties or compliance responsibility set forth under this Agreement on Grantee shall rest fully and solely with said Grantee entity and not be an obligation, duty or compliance responsibility of the individual volunteer member, officer, agent, or representative serving said Grantee entity, except for any intentional malicious actions by such individual. L.Grantee warrants and certifies that prior to the Effective Date, it provided Page 10 of 21 to the RDA a complete, accurate, and truthful description of: (1)all civil and administrative complaints against the Grantee or any of its Principals within the five (5) years before the Effective Date for the violation of any state or federal law that (a) resulted in a fine or penalty of more than ten thousand dollars ($10,000) or (b) alleged an act or omission that constitutes a material violation of state or federal law; (2)all pending criminal complaints alleging the violation of any state or federal laws that have been filed against the Grantee or any of its Principals within the five (5) years before the Effective Date; and (3)all judgments of criminal conviction entered against the Grantee or any of its Principals within five (5) years before the Effective Date. For purposes of this Section 10.L., “Principal” shall mean (i) an officer, a corporation director, or a senior management official of Grantee, if Grantee is a is corporation, partnership, limited liability company, or business association; or (ii) an individual, a corporation, a limited liability company, a partnership, or a business association that owns, directly or indirectly, at least a twenty percent (20%) interest in Grantee. 11.COMPLIANCE WITH AUDIT AND REPORTING REQUIREMENTS; MAINTENANCE OF RECORDS. A.Grantees shall submit to an audit by the State of Indiana, or its authorized designee, of funds paid through this Agreement and shall make all books, accounting records and other documents available at all reasonable times during the term of this Agreement and for a period of five (5) years after final payment for inspection by the IEDC or its authorized designee. One (1) copy shall be furnished to the IEDC at no cost. B.Grantee shall arrange for a financial and compliance audit that complies with 2 C.F.R. 200.500 et seq. if required by applicable provisions of 2 C.F.R. § 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements). C.Separate and apart from the Grantee’s status in paragraph 11.B, if Grantee is a non- governmental unit, Grantee shall file the Form E-1 annual financial report required by IC § 5-11- 1-4. The E-1 entity annual financial report will be used to determine audit requirements applicable to non-governmental units under IC § 5-11-1-9. Audits required under this section must comply with the SBA Uniform Compliance Guidelines for Examination of Entities Receiving Financial Assistance from Governmental Sources, found at: https://www.in.gov/sboa/files/guidelines- examination-entities-receiving- financial- assistance-government-sources.pdf, as amended from time to time. 12.RISK OF LOSS AND INSURANCE. The Project shall be under the charge and control of Grantee and all risks of loss or damage in connection therewith and the materials, supplies and equipment to be used therein shall be borne exclusively by the Grantee. The Grantee shall maintain, at Grantee’s own expense, insurance coverages insuring the Grantee, Grantee’s Page 11 of 21 employees, agents and designees and the indemnitees as required herein in commercially reasonable amounts, which insurance shall name the RDA and any additional party requested by the RDA as an additional insured and shall incorporate a provision requiring the giving of written notice to the RDA at least thirty (30) days prior to the cancellation, non-renewal or material modification of any such policies as evidenced by return receipt of United States Certified Mail: (a) Comprehensive General Liability Insurance in the amount of Five Million Dollars ($5,000,000.00) including coverage for blanket contractual liability, broad form property damage, and personal injury; (b) Worker’s Compensation insurance in the amount of the statutory maximum with an employer’s liability coverage of at least Five Hundred Thousand Dollars ($500,000.00); (c) Builder’s Risk Insurance in an amount at least equal to the projected completion value of the Project covering property damage, as to any building or construction activity; and (d) property insurance in an amount at least equal to the projected completion value of the Project. All deductibles of any policy of insurance to be purchased by Grantee hereunder shall be borne by Grantee. Grantee shall submit valid certificates in form and substance satisfactory to the RDA evidencing the effectiveness of the foregoing insurance policies along with copies of the amendatory riders to any such policies. Grantee hereby agrees to maintain the insurance described hereinabove for the period of this Agreement and that referenced in Section 12(a) and (d) for two (2) years following completion of the Project. Grantee hereby waives all rights of subrogation against the RDA and such policies of insurance required herein shall include a waiver of subrogation in favor of the RDA, which waiver shall be effective notwithstanding any duty to indemnify otherwise imposed by contract or applicable law. 13.INDEMNITY. Grantee shall INDEMNIFY, DEFEND, AND HOLD HARMLESS the RDA and its officers, board members, members, employees, and agents, from any and all damages, losses, claims, demands, suits, liabilities, penalties, or forfeitures of every kind and nature (collectively “Claims”), including, but not limited to, reasonable attorneys’ and experts’ fees and expenses, and other costs and expenses of defending against the same, and payment of any settlement or judgment therefore, by reason of bodily and other personal injuries to or deaths of persons; damages to tools or equipment owned or leased by Grantee; damages to other property; the release or threatened release of a hazardous substance or any pollution or contamination of or other adverse effects on the environment; violations of any applicable laws; or infringement of patent, copyright, trademark, trade secret, or other property right to the extent resulting or alleged to have resulted from acts or omissions of Grantee, its employees, agents, contractors, subcontractors, or other representatives or otherwise arising out of, relating to, or in connection with, directly or indirectly, the performance of this Agreement, the Project or otherwise, whether suffered directly by the RDA or indirectly by reason of third party claims, demands, or suits. This obligation to indemnify, defend, and hold harmless shall survive termination or expiration of this Agreement and shall apply whether or not it is alleged that the RDA in any way contributed to the Claims or is liable due to a non-delegable duty; however, Grantee shall not be responsible for any Claim(s) which are caused by the sole negligence or sole willful misconduct of the RDA where such is contrary to law. The indemnification obligation under this Agreement may not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for the Grantee or any contractor(s), subcontractor(s) or materialmen under worker’s or workmen’s compensation acts, disability benefit acts or other employee benefits acts. Without limiting the generality of the foregoing, the indemnity herein shall include all Claims arising out of personal injury, death, or damage to personal property of the Grantee or its contractors or subcontractor’s employees or agents or licensees or invitees or to any other persons, whether based Page 12 of 21 upon or claimed to be based upon, statutory, contractual, common law, tort (including but not limited to negligence, fraud, conversion, intentional tort or other common law tort) or other liability of Grantee, Grantee’s representatives, employees, contractors, subcontractors, material men or suppliers or any other persons. The promise of indemnification herein shall be construed to reflect Grantee’s intent to indemnify the RDA to the fullest extent permitted by law for such Claims. Grantee shall insure specifically the indemnity contained hereinabove and shall include the RDA as an additional insured by causing amendatory riders or endorsements to Grantee’s insurance policies. IN NO EVENT AND UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE LIABLE FOR OR HAVE ANY DUTY FOR INDEMNIFICATION OR CONTRIBUTION TO THE OTHER PARTY FOR ANY CLAIMS FOR STATUTORY OR COMMON LAW INDIRECT, EXEMPLARY, SPECIAL, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, OR TREBLE DAMAGES, WHETHER IN CONTRACT OR TORT (INCLUDING STRICT LIABILITY AND NEGLIGENCE) SUCH AS, BUT NOT LIMITED TO, LOSS OF USE, REVENUE, PROFIT, BUSINESS OPPORTUNITIES AND THE LIKE, DEPRECIATION OR DIMINUTION IN VALUE, EVEN IF THE PARTY HAD BEEN ADVISED, OR KNEW OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES. 14.LIENS. The Grantee shall make prompt payments to all persons who have done work or furnished materials for the Grantee’s performance of the work and shall, from time to time upon demand, furnish satisfactory evidence to the RDA that such persons are entitled to no further compensation. In the event a lien shall be filed against the Project, by any person who has, or has alleged to have, done work or furnished materials for or in the performance of the Grantee or its representatives work, the Grantee shall at its expense, upon demand of the RDA, take all necessary action, by bond or otherwise, to cause any such lien to be released or discharged therefrom, and Grantee shall fully indemnify the RDA against any loss or expense in connection therewith, including reasonable expert and attorneys’ fees incurred by the RDA. 15.TERMINATION. A.Termination for Cause. A breach by Grantee of any representation, certification, or warranty made herein, or Grantee’s failure to complete the Project in accordance with Section 4 herein or to expend Project Funds in accordance with this Agreement and the IEDC Agreement may be considered a material breach hereof and shall entitle the RDA to (i) suspend payment of Project Funds, (ii) suspend Grantee’s participation in the RDA, READI, and/or the IEDC grant programs until such time as all material breaches are cured to the RDA’s and/or the IEDC’s satisfaction, and/or (iii) deem all Project Funds, spent or unspent, due and payable to the RDA. The expenditure of Project Funds other than in conformance with this Agreement and the IEDC Agreement may be deemed a breach of this Agreement. Grantee explicitly covenants that it shall repay to the RDA all funds not spent in conformance with this Agreement and/or the IEDC Agreement within twenty (20) days following the RDA’s demand for payment of such. If the RDA or the IEDC is subject to any fine, penalty or fee as a result of Grantee’s improper expenditure of Project Funds, Grantee shall fully reimburse the RDA and/or the IEDC for any such fine, penalty or fee and any other related incurred expense. B.Termination for Convenience. Grantee acknowledges and agrees that unless prohibited by a statute or regulation relating to the award of the Grant, the IEDC Agreement Page 13 of 21 may be terminated, in whole or in part, by the IEDC whenever, for any reason. Upon termination of the IEDC Agreement, this Agreement shall terminate. Termination shall be effected by delivery to Grantee of a termination notice, specifying the extent to which such termination becomes effective. Absent an existing default or breach by Grantee as of the date of the termination notice contemplated herein, Grantee shall be compensated for completion of the Project properly done prior to the effective date of the termination. The RDA will not be liable for work on the Project performed after the effective date of the termination. In no case shall total payment made to Grantee exceed the original Project Funds award. C.Notice. In all instances of termination for cause or for convenience, Grantee will be provided notice and an opportunity for a hearing according to 2 CFR § 200.340 through § 200.343, as amended from time to time. 16.CANCELLATION OF FUNDING. In the event the Director of the SBA makes a written determination that Grant and/or Project Funds are not appropriated or otherwise available to support the continuation of performance of this Agreement, such determination shall be final and conclusive, and this Agreement shall be immediately cancelled. 17.EMPLOYMENT ELIGIBILITY VERFICATION. As required by IC § 22-5- 1.7, as amended from time to time, if Grantee has employees, Grantee hereby swears or affirms under the penalties of perjury that: A.Grantee has enrolled and is participating in the E-Verify program; B.Grantee has provided documentation to the IEDC that it has enrolled and is participating in the E-Verify program; C.Grantee does not knowingly employ an unauthorized alien; D.Grantee shall require its contractors who perform work under this Agreement to certify to Grantee that the contractor does not knowingly employ or contract with an unauthorized alien and that the contractor has enrolled and is participating in the E-Verify program. Grantee shall maintain this certification throughout the duration of the term of any contract or agreement with a contractor. The RDA may terminate this Agreement for default if Grantee fails to cure a breach of this provision no later than thirty (30) days after being notified by the RDA. 18.DRUG-FREE WORKPLACE CERTIFICATION. As required by Executive Order No. 90-5, dated April 12, 1990, issued by the Governor of Indiana, as amended from time to time, the Grantee, if it has employees, hereby covenants and agrees to make a good faith effort to provide and maintain a drug-free workplace. The Grantee will give written notice to the RDA within ten (10) days after receiving actual notice that the Grantee, or an employee of Grantee in the State of Indiana, has been convicted of a criminal drug violation occurring in the workplace. False certification or violation of this certification may result in sanctions including, but not limited to, suspension of disbursements under this Agreement, termination of this Agreement, and/or debarment of contracting opportunities with the State of Indiana for up to three (3) years. Page 14 of 21 In addition to the provisions of the above paragraph, if the total amount set forth in this Agreement is in excess of $25,000.00, the Grantee agrees that it will provide a drug-free workplace by: A.Publishing and providing to all of its employees a statement notifying them that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the Grantee’s workplace and specifying the actions that will be taken against employees for violations of such prohibition; B.Establishing a drug-free awareness program to inform its employees of: (1) the dangers of drug abuse in the workplace; (2) the Grantee’s policy of maintaining a drug- free workplace; (3) any available drug counseling, rehabilitation, and employee assistance programs; and (4) the penalties that may be imposed upon an employee for drug abuse violations occurring in the workplace; C.Notifying all employees in the statement required by subparagraph (A) above that as a condition of continued employment the employee will: (1) abide by the terms of the statement; and (2) notify the Grantee of any criminal drug statute conviction for a violation occurring in the workplace no later than five (5) days after such conviction; D.Notifying the RDA in writing within ten (10) days after receiving notice from an employee under subdivision (2) above, or otherwise receiving actual notice of such conviction; E.Imposing, within thirty (30) days after receiving notice under subdivision (C)(2) above of a conviction, the following sanctions or remedial measures on any employee who is convicted of drug abuse violations occurring in the workplace: (1) taking appropriate personnel action against the employee, up to and including termination; or (2) requiring such employee to satisfactorily participate in a drug abuse assistance or rehabilitation program approved for such purposes by a federal, state or local health, law enforcement, or other appropriate agency; and F.Making a good faith effort to maintain a drug-free workplace through the implementation of subparagraphs (A) through (E) above. 19.NONDISCRIMINATION. Pursuant to Indiana Code § 22-9-1-10, the federal Civil Rights Act of 1964, the Age Discrimination in Employment Act, and the Americans with Disabilities Act, the Grantee covenants that it shall not discriminate against any employee or applicant for employment related to this Agreement or the Project with respect to the hire, tenure, terms, conditions or privileges of employment or any matter directly or indirectly related to employment, because of race, color, religion, sex, age, disability, national origin, ancestry, status as a veteran, or any other characteristic protected by federal, state, or local law. Breach of this covenant may be regarded as a material breach of this Agreement. Furthermore, Grantee certifies compliance with applicable federal laws, regulations, and executive orders prohibiting discrimination based on these protected characteristics in the provision of services. Grantee understands that the RDA is a recipient of federal funds, and therefore, where applicable, Grantee and its subcontractors shall comply with requisite affirmative action requirements, including Page 15 of 21 reporting, pursuant to 41 CFR Chapter 60, as amended, and Section 202 of Executive Order 11246 as amended by Executive Order 13672, all as amended from time to time. 20.DIVERSITY BUSINESSES. Grantee shall use its reasonable best efforts and is encouraged to contract for services with or purchase materials from Indiana-based persons, including contracting with Indiana minority, women’s, and veteran’s business enterprises. 21.INFORMATION TECHNOLOGY ACCESSIBILITY STANDARDS. Any information technology related products or services purchased, used, or maintained through Project Funds must be compatible with the principles and goals contained in the Electronic and Information Technology Accessibility Standards adopted by the Architectural and Transportation Barriers Compliance Board under Section 508 of the federal Rehabilitation Act of 1973 (29 U.S.C. §794d), as amended from time to time. The federal Electronic and Information Technology Accessibility Standards can be found at: https://www.access-board.gov/ict.html 22.DEBARMENT AND SUSPENSION. A.Grantee represents, warrants, and certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from entering into this Agreement by any federal agency, branch of government, or by any department, agency, or political subdivision of the State of Indiana. The term “principal” for the purposes of this Agreement shall mean any officer, director, or member. B.Grantee represents, warrants, and certifies that it has verified the suspension and debarment status for all subcontractors, vendors, or other lower tier subrecipients receiving funds under this Agreement and shall be solely responsible for any recoupments or penalties that might arise from non-compliance. Grantee shall immediately notify the RDA if any subcontractors, vendors, or other lower tier subrecipients become debarred or suspended, and shall, at the RDA’s request, take all steps required to terminate its contractual relationship with the subcontractors, vendors, or other lower tier subrecipients. C.The RDA reserves the right to immediately suspend, in whole or in part, this Agreement, including any further disbursements of Project Funds, for the appearance of an actual or potential violation of this Agreement or any relevant provision of federal or State laws, rules, or regulations. Grantee shall be provided with notice of the suspension and a thirty (30) day period in which to cure said violation or demonstrate to the RDA that no violation exists. In the event an act (or failure) of the Grantee requires prompt intervention by the RDA, an authorized RDA representative may provide the Grantee with verbal notification of the suspension and extent thereof. Written notice of the suspension shall be provided to the Grantee within fifteen (15) days from the date of verbal notification. The notice shall include the qualifying violation(s) for such suspension and the extent of the suspension. In determining the suspension, the RDA may consider the following criteria: (i) the severity of the violation; (ii) the number of similar violations; (iii) whether the violations were willful or intentional; (iv) whether the violations involved dishonesty; (v) the history of prior violations; or (vi) such other information the RDA determines in its sole discretion is relevant. In the event the RDA determines that the issue Page 16 of 21 is sufficiently resolved, the RDA shall provide notice to the Grantee that the parties shall resume, as soon as practical, their duties of this Agreement. No disbursements of Project Funds shall be issued to the Grantee during the suspension period. In the event the RDA determines that the issue is not sufficiently resolved, the RDA may terminate this Agreement in accordance with Section 15. 23.INDEPENDENT CONTRACTOR. Grantee shall perform and execute the provisions of this Agreement as an independent contractor to the RDA and shall not in any respect be deemed or act, or hold itself out, as an agent of the RDA or the IEDC or an authorized representative of the same for any purpose or reason whatsoever. Grantee shall be solely responsible for providing insurance and other benefits as it deems necessary for its employees. Grantee is an independent contractor, and all of its agents and employees shall be subject solely to the control, supervision, and authority of Grantee. The RDA and Grantee disclaim any intention to create a partnership or joint venture. Grantee shall not be entitled to act for or have any power or authority to assume any obligation or responsibility on behalf of, the RDA or the IEDC or their respective authorized representatives. Since Grantee is an independent contractor, the RDA will not make any deductions from payments due Grantee from the RDA under this Agreement for any payroll or similar taxes, premiums or contributions now or hereafter required to be collected and/or paid by an employer for or on account for such employer’s employees. Without limiting the generality of the preceding sentence, the RDA will not deduct from sums due Grantee, nor pay for or on account of Grantee any (i) federal, state or local income tax withholding, (ii) social security or Medicare tax, (iii) health, accident, disability or life insurance premiums mandated by any governmental agency, (iv) unemployment compensation premium or tax, or (v) workers’ compensation premium or tax that would be required to be withheld and/or paid by the Grantee. The RDA shall not have any right to determine the route or means of transportation to and from the various places that Grantee must travel for the Project under this Agreement, and Grantee will be responsible for providing its own tools and equipment in connection with the Project. 24.NOTICES. All notices to be given under this Agreement shall be in writing, and shall be deemed to have been given and served when delivered in person, by Federal Express, UPS or similar overnight carrier, or by United States mail, postage pre-paid to the addressee at the following addresses: RDA: Northern Indiana Regional Development Authority c/o South Bend-Elkhart Regional Partnership 635 S. Lafayette Boulevard, Suite 123 South Bend, Indiana 46601 ATTN: Bethany Hartley BHartley@southbendelkhart.org (574) 344-4686 Copy to: Krieg DeVault LLP 4101 Edison Lakes Parkway, Suite 100 Mishawaka, Indiana 46545 ATTN: Stephen A. Studer, Esq. sstuder@kdlegal.com (574) 277-1207 Page 17 of 21 Grantee: GLC Madison Development Corp. 7410 Aspect Drive, Suite 100 Granger, IN 46530 Attn: Bradley J. Toothaker, President Sponsor: GLC Madison Development Corp. 7410 Aspect Drive, Suite 100 Granger, IN 46530 Attn: Richard J. Deahl, General Counsel Any party may change its mailing address by serving written notice of such change and of such new address upon the other party. 25.PERIODIC MONITORING REVIEWS. The IEDC may carry out periodic monitoring reviews (“Periodic Monitoring Reviews”) of the RDA and/or the Project, as deemed appropriate by the IEDC. The Grantee shall extend to the IEDC and/or RDA and its authorized designees its full cooperation and give full access to its Project sites and to relevant documentation. The RDA shall not be required to provide the Grantee advance notice of such Periodic Monitoring Reviews except as reasonably required to make sure the necessary individuals and materials are available. Grantee shall cooperate in such monitoring and evaluation efforts and shall produce all documentation reasonably requested by the IEDC. The IEDC shall designate the location of the Periodic Monitoring Reviews (e.g., onsite, the IEDC’s premises or at a location of the RDA’s). Periodic Monitoring Reviews may consist of the following: (i) whether a Project’s activities are consistent with those set forth in this Agreement, the approved Claim Form, the RDP, or any additional information or documentation the RDA has submitted to the IEDC; (ii) a complete, detailed analysis of actual non-public funds, State support, and other public funds expended to date on the on a Project and conformity with a Claim Form; (iii) a detailed listing of a Project’s costs by Project budget line item which are accrued yet unpaid, if applicable; (iv) a written evaluation of a Project with respect to the RDA and/or Grantee’s timely progress in Project management, financial management, control systems, procurement systems and methods, and performance relative to timely submission of the RDA’s quarterly progress reports required pursuant to the IEDC Agreement. Grantee shall take all actions reasonably necessary to correct or cure any issues identified by the IEDC during its Periodic Monitoring Reviews. Failure to do so may allow the RDA to suspend or terminate this Agreement. In the event that the IEDC requests a final audit following the completion of the Project, the Grantee shall cooperate with such audit and any and all other requests for monitoring or evaluation efforts required by the RDA or the IEDC. 26.DISCLOSURE OF PUBLIC RECORDS. Grantee understands that this Agreement is a public record as defined by the Indiana Access to Public Records Act (Indiana Code § 5-14-3-1, et seq. (“APRA”)), and, once fully executed, will be posted on the IEDC’s transparency portal, which is available at https://transparency.iedc.in.gov. The Claim Form and any reports submitted to the IEDC by the RDA under this Agreement are also public documents and are subject to public inspection pursuant to the Indiana Access to Public Records Act. Page 18 of 21 Confidential financial information and other information that Grantee desires to be withheld from disclosure in accordance with the Indiana Access to Public Records Act shall be submitted in a separate addendum clearly designated by Grantee as confidential along with reference to the basis for such non-disclosure pursuant to APRA. The RDA shall not be liable to Grantee for any claims or damages arising from the disclosure of any documents or information marked confidential. Grantee shall also allow the RDA to distribute public information, data, or statistics that the RDA collects on its RDP and the Project to third parties. If requested, the Grantee shall work together with the RDA or a third party, as applicable, on the terms of the data collection, format, submission timelines and distribution methods. 27.PUBLIC RELEASE. Grantee shall use reasonable efforts to coordinate with the RDA in advance of issuing any public relations communications and/or materials, including press releases, or otherwise responding to media inquiries (collectively, “Public Release”) in relation to the subject matter of this Agreement, including the Project. Should the RDA reasonably object to the Grantee’s Public Release, the parties agree to work together to resolve and/or revise the Public Release. Grantee shall ensure that prompt responses and materials are provided to the RDA for the preparation of any Public Release. Grantee shall designate an individual to serve as the primary contact regarding Public Releases. In no event shall Grantee be required to notify the RDA prior to making a notice, submission, or disclosure required by law. 28.USE OF IEDC AND RDA NAME. The RDA and the IEDC have not granted any rights to use their name, trademark, intellectual property, or logos under this Agreement or the IEDC Agreement. Grantee shall not use the IEDC’s or the RDA’s name or intellectual property, including IEDC or RDA trademarks or logos, in any manner, including commercial advertising or as a business reference, without the prior written consent of the IEDC or the RDA, as applicable. For any purposes outside those contemplated by this Agreement, and for which the IEDC’s participation will be referenced, the IEDC or the RDA shall have the right of review and approval of the use, disclosure, and the finished product prior to publication. All such requests from the Grantee must be made in writing and delivered to the RDA for approval at its sole discretion. Any requests by Grantee for the use of the IEDC name or intellectual property shall be first submitted to the RDA who shall work with the IEDC regarding review and approval. The Grantee shall not invoke the name of the RDA or any officer, director or agent of the RDA in connection with any public or private presentation or meeting with respect to the Project, including, without limitation, that the RDA, officer, director or agent supports the Project, without the prior written permission of the RDA. The approval of Project Funds relates only to the issue of the Project as being, in general, of regional importance, and not an endorsement of the physical project or the Grantee. 29.ASSIGNMENT. The RDA shall have the right to unilaterally assign its rights to recover Project Funds and delegate its rights under this Agreement to the IEDC. In such event, the RDA shall provide notice to Grantee of such unilateral assignment and delegation. THE PARTIES AGREE THAT IN NO EVENT SHALL THIS PROVISION BE VOIDED OR CONSTITUTE A MATERIAL BREACH AS SIGNATURE TO THIS AGREEMENT SHALL CONSTITUTE THE PARTIES’ CONSENT TO THE RDA’S UNILATERAL ASSIGNMENT AND DELEGATION Page 19 of 21 TO THE IEDC. Grantee shall not assign, transfer, or convey or otherwise dispose of this Agreement or any part hereof, to any person, company, or corporation, without the prior written consent of the RDA, except that Grantee may, with the approval of the RDA in its sole discretion and in no case other than pursuant to a separate agreement between Grantee, the RDA, Sponsor, and the City of South Bend or an entity thereof (the “City”), assign the Project Funds to the City, provided that no default by Grantee or Sponsor exists under this Agreement or the Repayment Agreement, the City agrees to be bound by the terms and conditions of the READI program and Sections 8, 10, 11, and 25 herein, and Grantee remains fully responsible for compliance with the terms of this Agreement. Any assignment hereunder shall in no way modify or affect Sponsor’s obligations under the Repayment Agreement. Any assignment in violation of this Section 29 shall be null and void. 30.GOOD FAITH ASSURANCES. The parties to this Agreement shall in good faith undertake to perform their obligations under this Agreement, to satisfy all conditions and to cause the transactions contemplated by this Agreement to be carried out promptly in accordance with the terms of this Agreement. Upon the execution of this Agreement and thereafter, each party shall do such things as may be reasonably requested by the other party hereto in order more effectively to consummate or document the transactions contemplated by this Agreement. 31.ADDITIONAL RIGHTS. If at any time during the term of this Agreement, Grantee fails to submit any documentation required herein within a reasonable time following the RDA’s written request, such failure shall be deemed an event of default under this Agreement and the Repayment Agreement, and the RDA may terminate this Agreement; provided, that Grantee shall have thirty (30) days following receipt of written notice from the RDA of such failure to cure any such failure. During the aforementioned cure period, Grantee shall, with respect to matters within its control, act with diligence to effectuate said cure. Upon termination of this Agreement under this Section and without affecting the RDA’s rights under the Repayment Agreement, Grantee, upon demand of the RDA, shall pay to the RDA damages in an amount not to exceed the total amount of Project Funds received by Grantee. 32.MISCELLANEOUS. A.The headings in this Agreement are intended solely for reference and will be given no effect in the construction or interpretation of this Agreement. B.The parties agree that this Agreement, including any attached exhibits and/or attachments, supersedes all prior oral and written proposals and communications, if any, and sets forth the entire agreement of the parties with respect to the subject matter hereof. C.This Agreement may not be altered or amended except in writing, signed by authorized representatives of the RDA and Grantee. D. No waiver of any default, failure to perform, condition, provision, or breach of this Agreement will be deemed to imply or constitute a waiver of any other like default, Page 20 of 21 failure to perform, condition, provision, or breach of this Agreement. E.If any paragraph, term, condition, or provision of this Agreement is found by a court of competent jurisdiction to be invalid or unenforceable, or if any paragraph, term, condition, or provision is found to violate or contravene the laws of the State of Indiana, then the paragraph, term, condition, or provision so found will be deemed severed from this Agreement, but all other paragraphs, terms, conditions, and provisions will remain in full force and effect. F.This Agreement shall be governed in accordance with the laws of the state of Indiana. The venue for disputes hereunder shall be exclusive to local and federal courts of St. Joseph County, Indiana. G.The Grantee shall be responsible for providing all legally required unemployment and workers’ compensation insurance for its employees, if any. H.Unless otherwise terminated or modified as expressly permitted hereunder, this Agreement shall remain in force during the term of this Agreement. Notwithstanding anything contained herein to the contrary, provisions of this Agreement which by their nature contemplate rights and obligations of the parties to be enjoyed or performed after the Expiration Date shall survive until their purposes are fulfilled. I.This Agreement may be executed through an original or electronically, and in duplicate or through counterparts, each of which shall be deemed to be an original, and all of which shall constitute but one and the same agreement. J.If the Grantee refers to more than one entity, each entity shall be jointly and severally responsible to satisfy the obligations under this Agreement. In the event of a default, all entities are jointly and severally liable for the obligations in this Agreement, irrespective of which entity caused the default. K.Nothing in this Agreement shall be construed to confer any rights or remedies on any third party not a signatory to this Agreement, including the employees, or other contractors of the Grantee. L. This Agreement was reviewed and/or revised by legal counsel for the RDA and Grantee, and no presumption or rule that ambiguity shall be construed against the party drafting the document shall apply to the interpretation or enforcement of this Agreement. M.Nothing in this Agreement is intended to preclude or limit the RDA’s ability to seek remedies available at law or in equity against the Grantee in respect to claims of mismanagement, misappropriation, fraud, concealment, or similar claims of disbursed Project Funds. N.The undersigned on behalf of Grantee attests, subject to the penalties for Page 21 of 21 perjury, that the undersigned is the Grantee, or that the undersigned is the properly authorized representative, agent, member, or officer of Grantee and has all due authority to execute this Agreement. [Reminder of Page Intentionally Left Blank; Signature Page Follows] IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first written above. “RDA”: NORTHERN INDIANA REGIONAL DEVELOPMENT AUTHORITY “GRANTEE”: GLC MADISON DEVELOPMENT CORP., an Indiana corporation By: John DeSalle, Board Chair By: Bradley J. Toothaker, President “SPONSOR”: GREAT LAKES CAPITAL DEVELOPMENT, LLC, an Indiana limited liability company By: Bradley J. Toothaker, President Index of Exhibits Schedule 1 – Disbursement of Funds Schedule Schedule 2 – Use of Project Funds Detail Exhibit A – IEDC Agreement Exhibit B – Project Description Exhibit C – READI Claim Form Exhibit D – Project Change Form Exhibit E – Claim Voucher Exhibit F – Information and Questionnaire SCHEDULE 1 to SUBGRANT AGREEMENT [DISBURSEMENT OF FUNDS SCHEDULE ATTACHED] SCHEDULE 2 to SUBGRANT AGREEMENT [USE OF PROJECT FUNDS DETAIL ATTACHED] IEDC Project #: 00213 Project Name: Beacon GLC Integrated Health and Lifestyle District USE OF PROJECT FUNDS DETAIL Total READI Project Funds: ________ $11,780,00.00 # Line-Item Description Use of Project Funds Project Funds Allocation 1. Design & Bidding- parking structure soft $ 1,780,000.00 2. Construction- parking structure $ $10,000,000.00 3. $ 4. $ 5. $ 6. $ 7. $ 8. $ 9. $ 10. $ 11. $ 12. $ 13. $ 14. $ [Schedule 2 to Regional Economic Acceleration and Development Initiative Subgrant Agreement] EXHIBIT “A” to SUBGRANT AGREEMENT [IEDC AGREEMENT ATTACHED] EXHIBIT A The complete Exhibit A can be found at the following link: https://www.iedc.in.gov/program/indiana- readi/regions EXHIBIT “B” to SUBGRANT AGREEMENT [PROJECT DESCRIPTION ATTACHED] EXHIBIT “C” to SUBGRANT AGREEMENT [READI CLAIM FORM ATTACHED] EXHIBIT “D” to SUBGRANT AGREEMENT [MATERIAL CHANGE FORM ATTACHED] REGIONAL ECONOMIC ACCELERATION AND DEVELOPMENT INITIATIVE SUBGRANT AGREEMENT (“AGREEMENT”) MATERIAL CHANGE FORM Name of Grantee: Project Name: Grantee Contact Name: Date of “Material Change”: Description of “Material Change”: Pursuant to Section 5 of the Agreement, Grantee shall provide notice to the RDA within fifteen (15) days of any material change to the Project on this form. A material change occurs when there is any of the following: (i) an increase in the total cost of the Project of five percent (5%) or more and which, as a result of said increase, would require additional Project Funds for the Project, or (ii) a change in the nature of the Project from the Grantee’s submission on the approved Claim Form. This form shall be delivered to the RDA in person, by Federal Express, UPS or similar overnight carrier, or by United States mail, postage pre-paid to the RDA’s address in the Agreement. Grantee Contact Signature Title Date [Exhibit D to Regional Economic Acceleration and Development Initiative Subgrant Agreement] EXHIBIT “E” to SUBGRANT AGREEMENT [CLAIM VOUCHER ATTACHED] EXHIBIT “F” to SUBGRANT AGREEMENT [INFORMATION AND QUESTIONNAIRE ATTACHED]