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HomeMy WebLinkAbout029-R-177/31 /2017 29-R-17 A RESOLUTION Authorizing the City Manager to Negotiate and Execute a Loan Agreement with Sweet Vendome, Inc. doing business as "Cafe Coralie" NOW BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS, THAT: SECTION 1: The City Manager is hereby authorized to execute the Loan Agreement, attached hereto as Exhibit 1, the terms are incorporated herein by reference, with Sweet Vendome, Inc., an Illinois corporation. SECTION 2: The City Manager is hereby authorized and directed to negotiate any additional conditions of the Loan Agreement as he determines to be in the best interests of the City and in a form acceptable to the Corporation Counsel. SECTION 3: That this Resolution 29-R-17 shall be in full force and effect from and after the date of its passage and approval in the manner provided by law. Attest: Devon Reid, City Clerk Adopted:/✓f r� , 2017 29-R-17 f=:1:II-]h& Loan Agreement -2- PROMISSORY NOTE Name and Address of Borrower: Sweet Vendome, Inc. d/b/a "Cafe Coralie" 600 Davis Street Evanston, IL 60201 Commencement Date: October 1, 2017 1. BORROWER'S PROMISE TO PAY FOR VALUE RECEIVED, the undersigned, SWEET VENDOME, INC., an Illinois corporation (referred to hereafter as the "Borrower"), promise to pay to the order of the City of Evanston, an Illinois home rule municipal corporation, with its principal office located at 2100 Ridge Avenue, Evanston, Illinois (the "Lender"), in the manner provided in this Note, the principal sum of $50,000.00 (Fifty Thousand and 00/100 Dollars) (the "Loan"). The Loan is secured by a Uniform Commercial Code financing statement (the "UCC Financing Statement") which includes the Borrower's equipment and fixtures to be located at 633 Howard Street, Evanston, Illinois (the "Property") for the operation of the business (the "Security"), together with interest computed on the basis of a 365 day year, from the date of disbursement on the balance of principal remaining from time to time unpaid at an annual rate equal to three percent (3.00%). Any principal amount not paid when due (at maturity, by acceleration, or otherwise) will bear interest thereafter until paid at a rate, which will be eighteen percent (18%). The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note will be called "Note Holder". 2. LOAN TERM, FORGIVENESS AND REPAYMENT The term of the Loan is ten (10) years, commencing on October 1, 2017 — September 30, 2027 (the "Loan Term"). The Loan will start to bear interest on the Commencement Date. The loan payments will be five hundred twenty-eight and 85/100 Dollars ($528.85) each month. The Loan schedule is attached as Exhibit 1. The interest rate is three percent (3.0%) per annum and computed on the basis of a 365 day year. Borrower agrees to commence payments of the Loan on October 1, 2018. Loan payments will be due on or before the first day of the month. If the Borrower's Loan payment is five days after the first of the month or more, there shall be assessed a late fee of $50. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note will be called "Note Holder". 3. DISBURSEMENTS AND BORROWER RESPONSIBILITIES A. Funding Sources: The Loan is conditioned on the completion and satisfaction of each part of Section 3 below. The Loan is funded through two different sources: i. $25,000 from the Community Development Block Grant fund is provided as a loan to the for -profit entity. The specific requirements for the borrower with respect to these funds are outlined in Section 3(F) below. The CDBG funds will be used for eligible equipment purchases as defined by the Department of Housing and Urban Development guidelines. ii. $25,000 from the City of Evanston Economic Development Fund is provided as a loan to the Borrower. B. Project Completion: i. Borrower must renovate the Subject Property, for the intended use of the Subject Property in substantial conformance with the plans submitted to the building permit division and included in the lease agreement with the City of Evanston. ii. Borrower shall provide documentation that bids for the Project were sought from no less than three contractors, of which one must be an Evanston -based contractor. If an Evanston based contractor is not available to seek bids based on the scope and scale of the Project work, this requirement will be waived upon confirmation from City staff that bid solicitation to Evanston based businesses was pursued by Borrower. iii. Borrower acknowledges and agrees that it cannot commence construction work for the Project unless and until the City Council approves the Loan and this Agreement is executed by both parties. C. Borrower Responsibilities: i. The Borrower shall be responsible for hiring a licensed contractor to complete the Project. The Director or his designee may require submission of proof of the State License issued to the selected contractor. ii. The Borrower shall be responsible for contacting the appropriate City departments to arrange for obtaining all necessary approvals and/or permits required for construction and completion of the Project. iii. The Borrower shall be fully responsible for managing, monitoring, and scheduling the construction of the Project and ensuring its compliance with all applicable federal, State, and local laws and regulations. iv. The Borrower shall be fully responsible for ensuring that all invoices from the contractors, suppliers, vendors and/or other third parties are distributed to the City. v. Borrower shall during the Term and for a period of 2 years following the expiration of the Term, keep and make available for the inspection, examination and audit by City or City's authorized employees, agents or representatives, at all reasonable time, all records respecting the services and expenses incurred by Borrower, including without limitation, all book, accounts, memoranda, receipts, ledgers, canceled checks, and any other documents indicating, documenting, verifying or substantiating the cost and appropriateness of any and all expenses. If any invoice submitted by Borrower is found to have been overstated, Borrower shall provide City an immediate refund of the overpayment together with interest at the highest rate permitted by applicable law, and shall reimburse all of City's expenses for and in connection with the audit respecting such invoice. D. Evanston business: i. Borrower shall remain an Evanston based business for the entire Term. Meaning, Borrower cannot remove its operations from the Subject Property during the Term of this Agreement. In the event that Borrower ceases to operate at 633 Howard Street, Evanston, Illinois during the Loan Term, any principal and interest not previously paid will be repaid within 30 days of vacating the property. ii. If Sweet Vendome is sold, (except in circumstances of an illness of principal necessitating retirement) for any reason to any entity other than one controlled by the current managers of the LLC, or files for bankruptcy protection, the Borrower shall be in Default and any principal and interest not previously forgiven will be repaid on the balance remaining from Exhibit A depending on the date that the business is sold. The remaining balance, not previously forgiven, shall be paid to the City within thirty (30) days. iii. Borrower will coordinate with the City's Youth and Young Adult Program Manager and other workforce development professionals to employ Evanston residents with skills and abilities to work at the Subject Property either in full- time or part-time positions. 4. BORROWER REPRESENTATIONS. The Borrower represents and warrants that it is duly organized and existing under the laws of State of Illinois and is in good standing as necessary in the State of Illinois. The Borrower represents it has the power to enter into this Agreement and other Loan Documents required under this agreement. That by proper action in accordance with its organizational documents has been duly authorized to execute and deliver this Agreement and all documents required under its terms. The Borrower covenants that this Agreement does not contravene any law or contractual restriction binding or affecting the Borrower, and that the Agreement will be legal, valid, and binding obligations of the Borrower, and further that as of the date of this agreement the Borrower represents that no event or change of condition has occurred which is a material (as defined by the Securities and Exchange Commission) which would affect the ability of the Borrower to perform its obligations hereunder on a timely basis. A. As of the date of this Agreement there is no suit, action, or proceeding pending or threatened as to which outcome would be materially adverse effect on the Borrower. B. The Borrower and all entities affiliated with the Borrower have filed all tax returns required to be filed by them and paid all taxes required as show on those returns. C. The Borrower represents that it has a DUNS (Data Universal Numbering System) number, in order facilitate disbursement of loan funds properly under federal guidelines. D. Borrower must remain in good standing with the Illinois Secretary of State. E. Job Creation: Borrower must create at least one new full-time equivalent (FTE) position (40 hours per week) that may be filled by low/moderate income persons, defined as requiring no more than a high school diploma unless on the job training is provided. The person(s) hired shall have a family income at time of hire that does not exceed 80% of the area median income established by HUD and in effect at the time of hire. Evanston residents shall be prioritized for hire. If Borrower hires more than one new FTE, the City will include this information in its report to HUD for use of CDBG funds. Borrower shall provide, on City -generated forms, the following information regarding new job(s) created pursuant to the Project: • Number of full- and part-time jobs • Race/ethnicity of new job hires • Family income at time of hire • Weekly hours for part-time positions • Number of jobs with employer -sponsored health care benefits • Number of people filling jobs who were unemployed when hired • Job category per HUD definitions F. Terms of Disbursement i. Disbursements. The City will issue the loan disbursements on a repayment basis with the following requirements: • Borrower cannot make requests for payment in an amount less than $5,000, unless it is the last draw; and • Borrower is limited to a total of 4 draws; • Borrower's request for reimbursement for equipment purchases must include: (a) copies of itemized invoices from vendor(s); (b) proof of payment to the vendor(s); (c) proof of reasonableness of the equipment selected, including copies of multiple quotes from at least 3 vendors or copies of internet searches for the same model/year of the equipment selected for the business in accordance with the Omni Circular procurement requirements for small purchase procedures (200.320(b)); and Borrower must follow the CDBG Regulations fully outlined below in Section 3(F); ii. The Borrower must provide the invoices as soon as available to the City prior to disbursement and provide the City at least 15 days to disburse the payment. The City will disburse up to $50,000. If the invoices do not exceed $50,000, the City will only disburse up to the total amount of the invoices. The total loan amortization schedule will be adjusted accordingly if the disbursement is less than $50,000. 5. CDBG FUNDS. A. General Requirements for CDBG funds: CDBG Funds. The funds for the Loan are provided through the City's Community Development Block Grant entitlement funds ("CDBG funds"),. The Loan funds are allocated for economic development activities, particularly in the City's Neighborhood Revitalization Strategy Area and Howard Street retail/commercial corridor following the priorities in the City's 2015 — 2019 Consolidated Plan to achieve the community development goals of that plan. CDBG funds will be used to purchase equipment for the restaurant kitchen, which are eligible expenses under CDBG regulations. Funds may not be used for any construction labor or materials, which would trigger compliance with Davis -Bacon prevailing wages and a higher level of review under the National Environmental Review Act. The CDBG Regulations require that funds utilized for economic development purposes meet the requirements outlined in 24 CFR 570 (CDBG - Economic Development) as follows: i. The project costs are reasonable; ii. That all sources of the project financing are committed; iii. That to the extent practicable, CDBG funds are not substituted for non -Federal financial support; iv. That the project is financially feasible; v. That to the extent practicable, the return on the owner's equity investment will not be unreasonably high; vi. That to the extent practicable, CDBG funds are distributed on a pro-rata basis with other financing. B. Omni Circular procurement: Borrower acknowledges that it will follow the guidelines contained in the Omni Circular 200.33 for equipment purchases which states that "§200.33 Equipment. Equipment means tangible personal property (including information technology systems) having a useful life of more than one year and a per- unit acquisition cost which equals or exceeds the lessor of the capitalization level established by the non -Federal entity for financial statement purposes, or $5,000. C. Equipment Inventory: During the term of the Loan, Borrower must maintain an inventory of equipment purchased with CDBG funds that includes the name, model number, serial number, and year manufactured. D. Job Creation: The Borrower is required to hire at least two new employees with a low/moderate income level or full-time equivalent (FTE). The first FTE meets a CDBG national objective and the second FTE created meets economic development goals for the City of Evanston. Preference for applicants must be given to Evanston residents in hiring. The Borrower must retain an employee who was low/moderate income at the time of hire for at least five years. 6. SECURITY FOR NOTE: UCC FINANCING STATEMENT The indebtedness evidenced by this Note (including all principal, interest, charges, fees, and expenses) is secured by the aforementioned Security, dated of even date herewith encumbering the fixtures and personal property of the Borrower. The Note, Security Agreement, and UCC Financing Statement shall be collectively referred to as the "Loan Documents" and the terms of which are hereby incorporated by this reference. The Lender will file the UCC Financing Statement with the Secretary of State following the execution of this Note, which shall remain a valid lien on the Equipment and Fixtures until the Loan is paid off in full and until the end of the Loan Term. The Note, Security Agreement, Project Agreement, and UCC Financing Statement shall be collectively referred to as the "Loan Documents" and the terms of which are hereby incorporated by this reference. 7. DEFAULT AND REMEDIES A. The occurrence of any one or more of the following events ("Event of Default") with respect to Borrower shall constitute a default hereunder ("Default"): i. If all or any part of the Fixtures and Equipment or any interest in it is sold or transferred (or if a legal or beneficial interest in Borrower's interest in the Fixtures and Equipment is sold or transferred) without Lender's prior written consent. ii. If a default or event of default occurs and is continuing under any representation or covenant under the Loan Documents. iii. If a default or event of default occurs and is continuing under any other mortgage or loan agreement encumbering the Fixtures and Equipment. iv. Borrower or any beneficiary thereof shall (i) file a petition for liquidation, reorganization, or adjustment of debt under Title 11 of the United States Code or any similar law, state or federal, whether now or hereafter existing, or (ii) file any answer admitting insolvency or inability to pay debts, or (iii) fail to obtain a vacation or stay of involuntary proceedings within ten days, as hereinafter provided. v. Borrower or any beneficiary thereof shall make an assignment for the benefit of creditors of this Note, or shall admit in writing of its inability to pay its debts generally as they become due, or shall consent to the appointment of a receiver or trustee or liquidator of all or any major part of the Fixtures and Equipment. B. The Borrower also promises that, if the Event of Default specified above, 4(A)(1), shall occur (after applicable notice and the Occupancy Cure Period detailed above) before the expiration of the Loan Term, the Borrower agrees to repay to the order of the Lender or its designee an amount equal to the original principal amount of the Loan and it is immediately due and payable. Provided however, if an Event of Default is solely with respect any other Event of Default specified above in 4(A), the Borrower shall have sixty (60) days after the date on which the notice is delivered to Borrower to cure such breach, provided, however, that if the curing of such non -monetary breach cannot be accomplished with due diligence within said period of sixty (60) days then Borrower shall have such additional reasonable period of time to cure such breach as may be necessary, provided Borrower shall have commenced to cure such breach within said period, such cure shall have been diligently prosecuted by Borrower thereafter to completion ("Other Default Cure Period"). The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of Borrower to acceleration and foreclosure. If the Borrower does not cure the Default within the specified Other Default Cure Period within the notice, then this Note is due and payable only with respect to the remaining balance of the Loan at the time of Default. C. If the Borrower Defaults hereunder and fails to cure the Default, during the 10-year loan Term, the Loan shall be immediately due and owing and the balance of the Loan shall be immediately repaid to Lender in full, subject to the availability of net proceeds from sale of the Fixtures and Equipment. Lender can auction the Fixtures and Equipment and use the proceeds and apply it to the loan balance. D. If any payments of interest or the unpaid principal balance due under this Note or any escrow fund payments for taxes or insurance required under the Security Agreement become overdue for a period in excess of ten days, the Borrower shall pay to Lender a late charge of $50 per day. If any attorney is engaged by Lender, including in-house staff (a) to collect the indebtedness evidenced hereby or due under the Loan Documents, whether or not legal proceedings are thereafter instituted by Lender; (b) to represent Lender in any bankruptcy, reorganization, receivership, or other proceedings affecting creditors' rights and involving a claim under this Note; (c) to protect the lien of any of the Loan Documents; (d) to represent Lender in any other proceedings whatsoever in connection with this Note or any of the Loan Documents or the real estate described therein; or (e) as a result of the Borrower's Default and collection efforts, the Borrower shall pay to Lender all reasonable attorneys' fees and expenses incurred or determined to be due in connection therewith, in addition to all other amounts due hereunder. E. Lender's remedies under this Note, and all of the other Loan Documents shall be cumulative and concurrent and may be pursued singly, successively, or together against the Borrower and any other Obligors (as defined below), the Property, and any other security described in the Loan Documents or any portion or combination of such real estate and other security, and Lender may resort to every other right or remedy available at law or in equity without first exhausting the rights and remedies contained herein, all in Lender's sole discretion. Failure of Lender, for a period of time or on more than one occasion to exercise its option to accelerate the maturity date shall not constitute a waiver of the right to exercise that option at any time during the continued existence of the Default or in the event of any subsequent Default. Lender shall not by any other omission or act be deemed to waive any of its rights or remedies hereunder unless such waiver is in writing and signed by Lender, and then only to the extent specifically set forth therein. A waiver in connection with one event shall) not be construed as continuing or as a bar to or waiver of any right or remedy in connection with a subsequent event. 8. PAYMENT OF NOTE HOLDER'S COSTS AND EXPENSES If the Lender is required to initiate legal process as the result of the Borrower's Default as described- above, the Lender will have the right to be paid back for all of its costs and expenses incurred as a result of such Default, to the extent not prohibited by applicable law. Those costs and expenses include but are not limited to, reasonable attorneys' fees, court costs, and related litigation expenses. 9. BORROWER'S WAIVERS To the extent permitted by law, the Borrower waives all rights to require the Lender to do certain things. These things are: (A) to demand payment of amounts due (known as "presentment"); (B) to give notice that amounts due have not been paid (known as "notice to dishonor"); (C) to obtain an official certification of nonpayment (known as "protest"). If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Notes, including the promise to pay the full amount owed. Any person, who takes over these obligations, is also obligated to keep all promises made in this Note. The Lender may enforce its rights under this Note against each person individually or against all of us together. 10. GIVING OF NOTICES Any notices that must be given to the Borrower under this Note will be given by delivering or by mailing by certified mail addressed to the Borrower at the address of the Property set forth above. Any notice that must be given to the Lender under this Note will be given by delivering it or mailing it by certified mail to the Lender at the following address: City of Evanston Attn: Economic Development Division 2100 Ridge Avenue, Room 3103 Evanston, Illinois 60201 with a copy to: City of Evanston Attn: Corporation Counsel 2100 Ridge Avenue, Room 4400 Evanston, Illinois 60201 11. RESPONSIBILITY OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note. The Lender may enforce its rights under this Note against the signatories either individually or together. This means that both signatories, either individually or together, may be required to pay all of the amounts owned under this Note. Any person who takes over the rights or obligations of the Borrower, with the written permission of the Lender, will have all of the Borrower's rights and must keep all of the Borrower's promises made in this Note. Notwithstanding anything in the Security Agreement to the contrary, the Loan is a recourse obligation of the Borrower. 12. GOVERNING LAW AND VENUE This Promissory Note shall be governed by the laws of the State of Illinois. Venue will be in Cook County, Illinois. 13. MISCELLANEOUS The headings of sections and paragraphs in this Note are for convenience only and shall not be construed in any way to limit or define the content, scope, or intent of the provisions hereof. As used in this Note, the singular shall include the plural, and masculine, feminine, and neuter pronouns shall be fully interchangeable, where the context so requires. If any provision of this Note, or any paragraph, sentence, clause, phrase, or word, or the application thereof, in any circumstances, is adjudicated to be invalid, the validity of the remainder of this Note shall be construed as if such invalid part were never included herein. Time is of the essence of this Note. Upon any endorsement, assignment, or other transfer of this Note by Lender or by operation of law, the term "Lender," as used herein, shall mean such endorsee, assignee, or other transferee or successor to Lender then becoming the holder of this Note. This Note and all provisions hereof shall be binding on all persons claiming under or through the Undersigned. The terms "Undersigned" and "Borrower," as used herein, shall include the respective beneficiaries, successors, assigns, legal and personal representatives, executors, administrators, devisees, legatees, and heirs of the Undersigned and Borrower and shall be binding upon the same In the event the Undersigned is an Illinois land trust, then this Note is executed by the Trustee, not personally but as Trustee as aforesaid in the exercise of the power and authority conferred on and vested in it as the Trustee, and is payable only out of the property specifically described in the Loan Documents securing the payment hereof, by the enforcement of the provisions contained therein. No personal liability shall be asserted or be enforceable against the Trustee because or in respect of this Note or the making, issue, or transfer thereof, all such liability, if any, being expressly waived by each taker and holder hereof, and each original and successive holder of this Note accepts the Note on the express condition that no duty shall rest on the Trustee to sequester the rents, issues, and profits arising from the property described in the Loan Documents, or the proceeds arising from the sale or other disposition thereof, but that in case of Default in the payment of this Note or of any installment hereof, the sole remedies of the holder hereof shall be by foreclosure of the UCC Financing Statement, realization on the other security given under the other Loan Documents to secure indebtedness evidenced by this Note, in accordance with the terms and provisions set forth herein, or any combination of the above. LENDER: M Its: City Manager, Wally Bobkiewicz In Its: President Print Name: Pascal Berthoumiuex EXHIBIT 1 LOAN PAYMENT SCHEDULE Patisserie Coralie -Amortization Schedule 633 Howard Loan Amount Interest Rate # of Months Monthly Payment Payment # 1 2 3 4 S 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 S3 54 55 56 57 58 59 60 61 62 63 64 50,000 3.00 108 ($528.85) Date 10/1/2017 11/1/2017 12/1/2017 1/1/2018 2/1/2018 3/1/2018 4/1/2018 5/1/2018 6/1/2018 7/1/2018 8/1/2018 9/1/2018 10/1/2018 11/1/2018 12/1/2018 1/1/2019 2/1/2019 3/1/2019 4/1/2019 5/1/2019 6/1/2019 7/1/2019 8/1/2019 9/1/2019 10/1/2019 11/1/2019 12/1/2019 1/1/2020 2/1/2020 3/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 8/1/2020 9/1/2020 10/1/2020 11/1/2020 12/1/2020 1/1/2021 2/1/2021 3/1/2021 4/1/2021 5/1/2021 6/1/2021 7/1/2021 8/1/2021 9/1/2021 10/1/2021 11/1/2021 12/1/2021 1/1/2022 2/1/2022 3/1/2022 4/1/2022 5/1/2022 6/1/2022 7/1/2022 8/1/2022 9/1/2022 10/1/2022 11/1/2022 12/1/2022 1/1/2023 (120 month loan, first 12 months no payment or interest) Start Balance Interest Payment End Balance 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 S0,000.00 50,000.00 50,000.00 125.00 (528.85) 49,596.15 49,596.15 123.99 (528.85) 49,191.30 49,191.30 122.98 (528.85) 48,785.43 48,785.43 121.96 (528.85) 48,378.54 48,378.S4 120.95 (S28.85) 47,970.64 47,970.64 119.93 (528.85) 47,561.72 47,561.72 118.90 (528.85) 47,151.78 47,151.78 117.88 (528.85) 46,740.81 46,740.81 116.85 (528.85) 46,328.82 46,328.82 115.82 (528.85) 45,915.79 4S,915.79 114.79 (528.85) 45,501.74 45,501.74 113.75 (528.85) 45,086.64 45,086.64 112.72 (528.85) 44,670.51 44,670.S1 111.68 (528.85) 44,253.34 44,253.34 110.63 (528.85) 43,835.13 43,835.13 1C9.S9 (528.85) 43,415.87 43,415.87 108.S4 (528.85) 42,995.56 42,995.56 107.49 (528.85) 42,574.20 42,574.20 106.44 (528.85) 42,151.79 42,151.79 105.38 (528.85) 41,728.32 41,728.32 104.32 (528.85) 41,303.80 41,303.80 103.26 (528.85) 40,878.21 40,878.21 102.20 (528.85) 40,451.56 40,451.56 101.13 (528.85) 40,023.84 40,023.84 100.06 (528.85) 39,595.05 39,595.05 98.99 (528.85) 39,165.19 39,165.19 97.91 (528.85) 38,734.26 38,734.26 96.84 (528.85) 38,302.25 38,302.25 95.76 (528.85) 37,869.16 37,869.16 94.67 (528.85) 37,434.98 37,434.98 93.59 (528.85) 36,999.72 36,999.72 92.50 (528.85) 36,563.38 36,563.38 91.41 (528.85) 36,125.94 36,125.94 90.31 (S28.85) 35,687.41 35,687.41 89.22 (528.85) 35,247.78 35,247.78 88.12 (528.85) 34,807.05 34,807.05 87.02 (S28.85) 34,36S.22 34,365.22 85.91 (528.85) 33,922.29 33,922.29 34.81 (S28.85) 33,478.24 33,478.24 33.70 (528.85) 33,033.09 33,033.09 32.58 (528.85) 32,586.83 32,586.83 .31.47 (528.85) 32,139.45 32,139.45 80.35 (528.85) 31,690.95 31,690.95 79.23 (528.85) 31,241.33 31,241.33 78.10 (528.8S) 30,790.59 30,790.59 76.98 (528.85) 30,338.72 30,338.72 75.85 (528.85) 29,885.72 29,885.72 74.71 (528.85) 29,431.58 29,431.S8 73.58 (528.85) 28,976.32 28,976.32 72.44 (528.85) 28,519.91 28,519.91 71.30 (528.85) 28,062.36 28,062.36 70.16 (528.85) 27,603.67 Patisserie Coralie -Amortization Schedule 633 Howard Loan Amount $ 50,000 Interest Rate 3.00 # of Months 108 (120 month loan, first 12 months no payment or interest) Monthly Payment ($528.85) Payment # Date Start Balance Interest Payment End Balance 65 2/l/2023 27,603.67 69.01 (528.85) 27,143.83 66 3/l/2023 27,143.83 67.86 (528.85) 26,682.85 67 4/l/2023 26,682.85 66.71 (528.85) 26,220.71 68 5/l/2023 26,220.71 65.55 (S28.85) 25,757.41 69 6/l/2023 25,757.41 64.39 (S28.85) 25,292.96 70 7/l/2023 25,292.96 63.23 (528.85) 24,827.34 71 8/l/2023 24,827.34 62.07 (528.85) 24,360.56 72 .9/l/2023 24,360.56 60.90 (528.85) 23,892.62 73 10/1/2023 23,892.62 59.73 (528.85) 23,423.50 74 ll/l/2023 23,423.50 58.56 (528.85) 22,953.21 75 12/1/2023 22,953.21 57.38 (528.85) 22,481.75 76 l/l/2024 22,481.75 S6.20 (528.85) 22,009.11 77 2/l/2024 22,009.11 55.02 (528.8S) 21,535.28 78 3/l/2024 21,535.28 53.84 (528.85) 21,060.27 79 4/l/2024 21,06C.27 52.65 (528.85) 20,584.08 80 5/l/2024 20,584.08 51.46 (528.85) 20,106.69 81 6/l/2024 20,106.69 50.27 (528.85) 19,628.11 82 7/l/2024 19,628.11 49.07 (528.85) 19,148.33 83 8/l/2024 19,148.33 47.87 (528.85) 18,667.36 84 9/l/2024 18,667.36 46.67 (528.85) 18,185.18 85 10/1/2024 18,185.18 45.46 (528.85) 17,701.80 86 ll/l/2024 17,701.80 44.25 (528.85) 17,217.20 87 12/1/2024 17,217.20 43.04 (528.85) 16,731.40 88 l/l/2025 16,731.40 41.83 (528.85) 16,244.38 89 2/l/2025 16,244.38 40.61 (528.85) 15,756.14 90 3/l/2025 1S,756.14 39.39 (528.85) 15,266.69 91 4/l/2025 15,266.69 38.17 (528.85) 14,776.01 92 5/1/2025 14,776.01 36.94 (528.85) 14,284.10 93 6/1/2025 14,284.10 35.71 (528.85) 13,790.96 94 7/1/202S 13,790.96 34.48 (528.85) 13,296.59 95 8/1/2025 13,296.59 33.24 (528.85) 12,800.99 96 9/l/2025 12,800.99 32.00 (528.8S) 12,304.14 97 10/1/2025 12,304.14 30.76 (528.85) 11,806.06 98 ll/l/2025 11,806.06 29.52 (528.85) 11,306.73 99 12/1/2025 11,306.73 28.27 (528.85) 10,806.15 100 l/l/2026 10,806.15 27.02 (528.85) 10,304.31 101 2/l/2026 10,304.31 25.76 (528.85) 9,801.23 102 3/1/2026 9,801.23 24.50 (528.85) 9,296.88 103 4/l/2026 9,296.88 23.24 (528.85) 8,791.28 104 S/1/2026 8,791.28 21.98 (528.85) 8,284.41 105 6/l/2026 8,284.41 20.71 (528.85) 7,776.27 106 7/l/2026 7,776.27 19.44 (528.85) 7,266.87 107 8/l/2026 7,266.87 28.17 (528.85) 6,756.19 108 9/l/2026 6,756.19 16.89 (528.85) 6,244.23 109 10/1/2026 6,244.23 15.61 (S28.85) 5,730.99 110 ll/l/2026 5,730.99 14.33 (528.85) 5,216.48 ill 12/1/2026 5,216.48 13.04 (528.85) 4,700.67 112 i/l/2027 4,700.67 11.75 (528.85) 4,183.57 113 2/l/2027 4,183.S7 10.46 (528.85) 3,665.19 114 3/l/2027 3,665.19 9.16 (528.85) 3,145.50 115 4/l/2027 3,145.50 7.86 (S28.85) 2,624.52 116 5/l/2027 2,624.52 6.56 (528.85) 2,102.23 117 6/l/2027 2,102.23 5.26 (S28.8S) 1,578.64 118 7/l/2027 1,578.64 3.95 (528.85) 1,053.74 119 8/l/2027 1,053.74 2.63 (528.85) 527.S3 120 9/l/2027 527.53 1.32 (528.8S) (0.00) GUARANTY Borrower: Sweet Vendome, Inc., an Illinois corporation Guarantors: Pascal Berthoumieux, individual (address) Loan Term: 10 years (120 months) Lender: City of Evanston, an Illinois home rule municipal corporation Principal Amount: $50,000.00 CONTINUING GUARANTEE OF PAYMENT AND PERFORMANCE. For good and valuable consideration, Guarantor absolutely and unconditionally guarantees full and punctual payment and satisfaction of the Indebtedness of Borrower to Lender, and the performance and discharge of all Borrower's obligations under the Note and the Related Documents. This is a guaranty of payment and performance and not of collection, so Lender can enforce this Guaranty against Guarantor even when Lender has not exhausted Lender's remedies against anyone else obligated to pay the Indebtedness or against any collateral securing the Indebtedness, this Guaranty or any other guaranty of the indebtedness. Guarantor will make any payments to Lender or its order, on demand, in legal tender of the United States of America, in same -day funds, without set-off or deduction, or counterclaim, and will otherwise perform Borrower's obligations under the Note and Related Documents. Under this Guaranty, Guarantor's liability is limited to Borrower's obligations under the Note. INDEBTEDNESS. The word "'Indebtedness" as used in this Guaranty means all of the principal amount outstanding from time to time and at any one or more times, accrued unpaid interest thereon and all collection costs and legal expenses related thereto permitted by law, attorneys' fees, arising from Borrower's obligations under the Note. CONTINUING GUARANTY. THIS IS A "CONTINUING GUARANTY" UNDER WHICH GUARANTOR AGREES TO GUARANTEE THE FULL AND PUNCTUAL PAYMENT. DURATION OF GUARANTY. This Guaranty will take effect when received by Lender without the necessity of any acceptance by Lender, or any notice to Guarantor or to Borrower, and will continue in full force until all the Indebtedness incurred or contracted before receipt by Lender of any notice of revocation shall have been fully and finally paid and satisfied and, all of Guarantor's other obligations under this Guaranty shall have been performed in full. If Guarantor elects to revoke this, Guaranty, Guarantor may only do so in writing. Guarantor's written notice of revocation must be mailed to Lender; by certified mail, at Lender's address listed above or such other place as Lender may designate in writing. Written revocation of this Guaranty will apply only to new Indebtedness created after actual receipt by Lender of Guarantor's written revocation. For this purpose and without limitation, the term "new Indebtedness" does not include the Indebtedness which at the time of notice of revocation is contingent, unliquidated, undetermined or not due and which later becomes absolute, liquidated, determined or due. For this purpose and without limitation" new indebtedness" does not include all or part of the Indebtedness that is: incurred by Borrower prior to revocation; Incurred under a commitment that became binding before revocation; any renewals, extensions, substitutions, and modifications of the indebtedness. This Guaranty shall bind Guarantor's estate as to the Indebtedness created both before and after Guarantor's death or incapacity, regardless of Lander's actual notice of Guarantor's death, Subject to the foregoing, Guarantor's, executor or administrator or other legal representative may terminate this Guaranty in the same manner in which Guarantor might have terminated it and with the some effect. Release of any, other guarantor or termination of any other guaranty of the Indebtedness shall not affect the ability of Guarantor under this guaranty. A revocation Lender receives from anyone or more Guarantors shall not affect the liability of any remaining Guarantors under this Guaranty. GUARANTOR'S AUTHORIZATION TO LENDER. Guarantor authorizes Lender, either before or after any revocation hereof upon written notice to Guarantor by Lender, without lessening Guarantor's liability under this Guaranty, from time to time: (A) prior to revocation as set forth above, to make one or more additional secured or unsecured loans to Borrower, to lease equipment or other goods to Borrower, or otherwise to extend additional credit to Borrower; (B) Intentionally Deleted; (C) to take and hold security for the payment of this Guaranty or the Indebtedness, and exchange, enforce, waive, subordinate, fail or decide not to perfect, and release any such security, with or without the substitution of new collateral; (D) to release, substitute, agree not to sue, or deal with anyone or more of Borrower's sureties, endorsers, or other guarantors on any terms or in any manner Lender may choose; (E) to determine how, when and what application of payments and credits shall be made on the Indebtedness; (F) to apply such security and direct the order or manner of sale thereof, including without limitation. any non -judicial sale permitted by the terms of the controlling security agreement or deed of trust, as Lender in its discretion may determine; (G) to sell, transfer, assign or grant participations, in all or any part -of the Indebtedness: and (H) to assign or transfer this Guaranty in whole or in part. GUARANTOR'S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lender that (A) no representations or agreements of any kind have been made to Guarantor which would limit or qualify in any way the terms of this Guaranty; (B) Intentionally Deleted; (C) Guarantor has full power, right and authority to enter into this Guaranty; (D) the provisions of this Guaranty do not conflict with or result in a default under any agreement or other instrument binding upon Guarantor and do not result in a violation of any law, regulation, court decree or order applicable to Guarantor;" (E) Intentionally Deleted; (F) upon Lender's request, Guarantor will provide to Lender financial and credit information in form acceptable to Lender, and all such financial information which currently has been, ,and all future financial information which will be provided Lender is and will be true and correct in all material respects and fairly present, Guarantor's financial condition as of the dates the financial information is provided; and (G) no material adverse change has occurred in Guarantor's financial condition since the date of the most recent financial statements provided to Lender and no event has occurred which may materially adversely affect Guarantor's financial condition. GUARANTOR'S WAIVERS. Except as prohibited by applicable law, Guarantor waives any right to require Lender (A) to continue lending money or to extend other credit to Borrower; (B) to resort for payment or to proceed directly or at once against any person, including Borrower or any other guarantor; (C) to proceed directly against or exhaust any collateral held by Lender from Borrower, any other guarantor, or any other person; (D) Intentionally Deleted; (E) to pursue any other remedy within Lender's power; or (F) to commit any act or omission of any kind, or at any time, with respect to any matter whatsoever. GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees that each of the waivers set forth above is made with Guarantor's full knowledge of its significance and consequences and that, under the circumstances, the waivers are reasonable and not contrary to public policy or law. If any such waiver is determined to be contrary to any applicable law of public policy, such waiver shall be effective only to the extent permitted by law or public policy. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Guaranty: Amendments. This Guaranty together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Guaranty, No alteration of or amendment to this- Guaranty shall be effective unless given in writing and signed by both parties. Attorneys' Fees; Expenses. Guarantor agrees to pay upon demand all of Lender's costs and expenses, including Lender's attorneys' fees and Lender's legal expenses, incurred in connection with the enforcement of this Guaranty. Lender may hire or pay someone else to help enforce this Guaranty, and Guarantor shall pay the costs and expenses of such enforcement. Caption Headings. Caption headings in this Guaranty are for convenience purposes only and are not to be used to interpret or define the provisions of this Guaranty. Governing law. This Guaranty will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the' laws of the State of Illinois without regard to its conflicts of law provisions. Integration. Guarantor further agrees that Guarantor has read and fully understands the terms of this Guaranty; Guarantor has had the opportunity to be - advised by Guarantor's attorney with respect to this Guaranty; the Guaranty fully reflects Guarantor's intentions and parol evidence is not required to interpret the terms of this Guaranty. Guarantor hereby indemnifies and holds Lender harmless from all losses, claims, damages, and costs (including Lender's attorneys' fees) suffered or incurred by Lender as a result of any breach by Guarantor of the warranties, representations and agreements of this paragraph. Interpretation. In all cases where there is more than one Borrower or Guarantor, then all words used in this Guaranty in the singular shall be deemed to have been used in the plural where the context and construction so require; and where there is more than one Borrower named in this Guaranty or when this Guaranty is executed by more than one Guarantor, the words "Borrower" and "Guarantor" respectively shall mean all and anyone or more of them. The words "Guarantor," "Borrower," and "Lender" include the heirs, successors, assigns, and transferees of each of them, If a court finds that any provision of this Guaranty is not valid or should not be enforced, that fact by itself will not mean that the rest of this Guaranty will not be valid or enforced. Therefore, a court will enforce the rest of the provisions of this Guaranty even if a provision of this Guaranty may be found to be invalid or unenforceable. If anyone or more of Borrower or Guarantor are corporations, partnerships, limited liability companies, or similar entities, it is not necessary for Lender to inquire into the powers of Borrower or Guarantor or of the officers, directors, partners, managers, or other agents acting or purporting to act on their behalf, and any indebtedness made or created in reliance upon the professed exercise of such powers shall be guaranteed under this Guaranty. Notices. Any notice required to be given under this Guaranty shall be given in writing, and, except for revocation notices by Guarantor, shall be effective when actually delivered, when actually received by tele-facsimile (unless, otherwise required by law) when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Guaranty. All revocation notices by Guarantor shall be in writing and shall be effective upon delivery to Lender as provided in the section of this Guaranty entitled "DURATION OF GUARANTY." Any party may change its address for notices under this Guaranty by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address, For notice purposes, Guarantor agrees to keep Lender informed at all times of Guarantor's current address. Unless otherwise provided or required by law, if there is more than one Guarantor, any notice given by Lender to any Guarantor is deemed to be notice given to all Guarantors. No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Guaranty unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Guaranty shall not prejudice or constitute a waiver of lender's right otherwise to demand strict compliance with that provision or any other provision of this Guaranty. No prior waiver by Lender, nor any course of dealing between Lender and Guarantor, shall constitute a waiver of any of Lender's rights or of any of Guarantor's obligations as to any future transactions, Whenever the consent of Lender is required under this Guaranty, the granting of such consent by Lender in any Instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender. Successors and Assigns. Subject to any limitations stated in this Guaranty on transfer of Guarantor's interest, this Guaranty shall be binding upon and inure to the benefit of the parties, their successors and assigns. Waive Jury. Lender and Guarantor hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Guarantor against the other. DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Guaranty. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Guaranty shall have the meanings attributed to such terms in the Uniform Commercial Code: Borrower. The word "Borrower" means Sweet Vendome, Inc. and includes all co-signers and co —makers signing the Note and all their successors and assigns. GAAP. The word "GAAP" means generally accepted accounting principles. Guarantor. The word "Guarantor" means everyone signing this Guaranty Pascal Berthoumieux, and in each case, any signer's successors and assigns. Guaranty. The word "Guaranty" means this guaranty from Guarantor to Lender. Indebtedness. The word "Indebtedness" means Borrower's indebtedness to Lender as more particularly described in this Guaranty. Lender. The word "Lender" means Citv of Evanston, its successors and assigns. Note. The word "Note" means and includes without limitation all of Borrower's promissory notes and/or credit agreements evidencing Borrower's loan obligations in favor of Lander, together with all renewals of, extensions of, modifications of, substitutions for promissory notes or credit agreements. Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security 'agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS TERMS, IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT THIS GUARANTY IS EFFECTIVE UPON GUARANTOR'S EXECUTION AND DELIVERY OF THIS GUARANTY TO UNDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE MANNER SET FORTH IN THE SECTION TITLED "DURATION OF GUARANTY", NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE, THIS GUARANTY IS DATED , 2017. GUARANTOR: Pascal Berthoumieux SECURITY AGREEMENT This Security Agreement dated , 2017 by and between the Sweet Vendome, Inc., an Illinois corporation hereinafter referred to collectively as the "Debtor" for value received, hereby grants to the City of Evanston, Illinois, an Illinois home rule municipality, with its principal address at 2100 Ridge Avenue, Evanston, Illinois 60201, hereinafter referred to as the "Secured Party," a security interest in the collateral listed in the attached EXHIBIT A, hereinafter referred to as the "Collateral" and incorporated by reference. This security interest is given for the purpose of securing payment of any and all indebtedness of the Debtor to the Secured Party in connection with the loan made to the Debtor and evidenced by promissory note dated July 1, 2017, together with all costs and expenses in connection therewith including but not limited to expenses of retaking, preserving, repairing, maintaining, preparing for sale, and selling said collateral as well as reasonable attorney's fees, court costs, and other legal expenses. In the event that Debtor defaults in the payment of said indebtedness, or becomes insolvent, or fails to keep said collateral free of all other liens, or if for any reason the secured party feels insecure, Secured Party has the option of declaring the entire indebtedness immediately due and payable, and shall have all of the rights and remedies of a secured party under the Illinois Uniform Commercial Code as the same may be amended from time to time. The requirement of the reasonable notice of any sale hereunder shall be met if such notice is mailed, postage prepaid, to the address of the Debtor shown at the beginning of this agreement at least 5 days before the time of sale or disposition. Secured Party and Debtor have caused this Agreement to be executed and delivered as of the date set forth opposite their name. City of Evanston, Illinois Sweet Vendome, Inc. By: By: City Manager, Wally Bobkiewicz President Print Name: COLLATERAL EQUIPMENT LIST [TO BE AMENDED AFTER BORROWER ORDERS EQUIPMENT] i ca��GP a french coffee shop and bakery BUDGET PROPOSAL Metrorestorations (General contractor) 24950 Corrigan & Freres Electric Co 19500 Walk in/Freezer Combo (Edward Don) 21490 Kichen equipment 29208 Ventilation system (estimated) 10000 Operating capital 10000 Blanton Plumbing 9525 Lighting fixtures 3000 Furniture 5000 Architect drawings 2350 Small equipment (flatware, etc) 1500 Office furniture 1000 Signage 1000 Simplex fire alarm 2000 Total 138 523 Cost increased by $38 523 over proposed budget due in part to the following factors: - Building not equipped with adequate electrical output. Additional Cost $11500 - Walk in refrigerator/freezer combo must be custom made to fit existing room. Additional cost $10000 - City is requiring ventilation system although our first location was approved without one. Additional cost $10000 (estimated) - City is requiring architect drawings although this was not a requirement for first location build out. Additional cost $2350