Line of Credit - $2,500,000 Kokomo Central Office
501 West Lincoln Road F 1 R S T
Kokomo,Indiana 46902-5391
(765)453-9100 FARM
F R S
Fax:(765)453-9171
BAN K&TRUST
May 16,2011
Carmel Redevelopment Commission
Mr.James Rush,Regional President United Fidelity Bank
Mr. Karl Haas, Wallack, Somers and Haas, P.C.
One Indiana Square
Suite 1500
Indianapolis,IN 46204
Re: Line of Credit Proposal
Dear Sirs:
I am pleased to notify you that First Farmers Bank&Trust(FFBT)has approved financing the
line of credit for the Carmel Redevelopment Commission,according to the following terms and
conditions:
• Lender: First Farmers Bank&Trust
• Borrower: Carmel Redevelopment Commission
• Purpose: Backup liquidity for short term cash flow needs
• Loan Amount: $2,500,000.00
• Term: 1 year revolving line of credit, renewable annually upon Bank's
receipt,review and acceptance of Borrower's business financial
statements and any other documentation deemed necessary by the
Bank to adequately assess Borrower's financial position.
• Rate: National Prime+ 1.00%, with a floor of 5.00%,daily adjustable.
• Payment: Monthly payments of interest will be made by Borrower to Bank
until maturity of the loan.
• Collateral: Assignment, grant and/or pledge to First Farmers of all of the Tax
Increment Fund(TIF)collections of the City of Carmel and/or
Carmel Redevelopment Commission..
www.ffbt.com
Kokomo Central Office
501 West Lincoln Road
Kokomo,Indiana 46902-5391
(765)453-9100
Fax:(765)453-9171
First Farmers' collateral will give it parity with all other similar
bank loans and/or bonds that have been arranged for the benefit of
the Carmel Redevelopment Commission and related entities.
• Guaranty: Not applicable
• Fee: Fees are as follows:
a. 1 point underwriting fee($25,000)
b. Non Usage Fee: 3/8 of One Percent(00.375%), payable
quarterly, on any unused portion of the line of credit.
• Prepayment Penalty: Not applicable
• Contingencies: Closing to be held by, and loan and collateral documentation to be
prepared by, outside counsel, selected by Borrower.
The Bank's attorney's fees, and other costs of closing,will be at the
expense of,and paid by, the Borrower.
The Carmel Redevelopment Commission also commits to pay the
Bank's attorney's fee and other closing costs, if this proposal is
accepted by Borrower,but the loan subsequently does not close.
• Expiration: This letter must be accepted by Borrower on or before May 27,
2011
• Confidentiality: This letter is for the sole use of the Carmel Redevelopment
Commission,concerning the aforementioned loan to be extended by
First Farmers Bank&Trust,and is not to be distributed, or made
available to,third parties, other than directors, officers, employees,
agents,consultants,or representatives who have a need to know
such information in connection with this loan.
This letter is not a commitment to lend. The Bank's obligation to provide the financing is
subject to further negotiations and agreement by the Bank with the Carmel Redevelopment
Commission,on all material terms of the proposal,and subject to the completion of loan
documents acceptable to the Bank and its counsel. This letter is also not assignable to any third
parties,and it supersedes all other discussions and agreements between the Borrower and the
Bank.
Kokomo Central Office
501 Wcst Lincoln Road
Kokomo,Indiana 46902-5391
(765)453-9100
Fax:(765)453-9171
If the above terms and conditions are acceptable to the Carmel Redevelopment Commission,
please acknowledge their agreement by signing this proposal below. If you have any questions,
please contact us.
Sincerely,
Lut,„6,
7YI �P
Cary Mawbey
Senior Commercial Lender
Vice President
First Farmers Bank&Trust
Accepted this day of May, 2011,
By (Sign)
(Print Name)
(Print Title)
of the Carmel Redevelopment Commission