PADERTA, attorneys, LLP, - Construction Law Today · PDF file18463, 8th Floor Data Suites 800-850 Digital ... Studio & Newsroom Renovation of Fox Television Stations, Inc. $11

Case 1:10-cv-00406 Document 1 Filed 01/20/10 Page 1 of 11

IN THE UNITED STATES DISTRICT COURTFOR THE NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

TRAVELERS CASUALTY AND SURETYCOMPANY OF AMERICA, a Connecticut

Corporation,

Plaintiff,

vs. No.

JOHN P. PADERTA, an Illinois citizen,

Defendant.

TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA’SINDEMNITY COMPLAINT AGAINST DEFENDANT

Travelers Casualty and Surety Company of America (“Travelers”), by and through its

attorneys, John E. Sebastian and Daniel R. Degen of the law firm of Hinshaw & Culbertson LLP,

sets forth its Complaint against the Defendant, John P. Paderta (“Paderta”) (hereinafter referred

to as “Defendant” or “Indemnitor”) as follows:

PARTIES

1. Travelers is a Connecticut corporation with its principal place of business located

in Hartford, Connecticut.

2. Krahl Associates, Inc. d/b/a Krahl Construction (“Krahl Construction”) is an

Illinois Corporation with its principal place of business located at 322 South Green Street, Suite

300, Chicago, Illinois 60607.

3. Krahl Construction has filed an assignment for the benefit of creditors and is no

logner operating.

4. On information and belief, Defendant Paderta is an Illinois citizen and lives in

LaGrange Highlands, Illinois.

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JURISDICTION AND VENUE

5. This court has jurisdiction over this cause under 28 U.S.C. 1332(a)(1) in that the

matter in controversy, exclusive of interest and costs, exceeds the sum or value of $75,000.00,

and is between citizens of different states.

6. Venue is proper in this Court under 28 U.S.C. §1391(a) because Defendant resides

in this District and the acts and omissions giving rise to Travelers’ cause of action occurred in

this District.

FACTS COMMON TO ALL COUNTS

7. Krahl Construction is a private contractor in the business of providing general

contracting services for, among other things, public and private projects located throughout the

State of Illinois and the State of Colorado.

8. At all relevant times herein, Paderta is and was the President of Krahl

Construction.

9. In accordance with the Illinois Public Construction Bond Act, 30 ILCS 550 et

seq., (the “Illinois Bond Act”) Krahl Construction was required obtain and provide payment and

performance surety bonds for various projects to guarantee Krahl Construction’s performance

obligations under its various public contracts and to ensure the payment obligations of Krahl

Construction to its subcontractors and materialmen that it engaged for the various projects,

subject to the terms of the bonds, the contracts, the Illinois Bond Act, and the law.

10. In accordance with the Colorado Construction Bond Act, C.R.S. 38-26-101 et

seq., (“Colorado Bond Act”), Krahl Construction was required obtain and provide payment and

performance surety bonds for various projects to guarantee Krahl Construction’s performance

obligations under its various public contracts and to ensure the payment obligations of Krahl

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Project Name Owner Penal Sum of Bond(s)

University of Colorado Denver 2009 State of Colorado University $611,550.0000021 Bldg 402 Renovation of Colorado Denver

Parking Garage Upgrades-1750 Harrison, Rush University Medical $300,000.00

Chicago Center (RUMC)

#19432 Adventist Material Suite 231 Trammell Crow Company $256, 102.00

#19074 –150/151 Kellogg E.V.S. Rush University Medical $624,029.00E.R.C.P. Center (RUMC)

#18710, Jelke New Fire Alarm Rush University Medical $5,722,265.00Center (RUMC)

#19025, BP -135 Geofoam 1725 W. Rush University Medical $469,397.00

Harrison, Chicago Center (RUMC)

19030, BP-133 OAB Pedestrian Bridge. Rush University Medical $959,802.00Center (RUMC)

18437, 676 Outpatient Imaging Center Northwestern Memorial $12, 166,802.00

Hospital

18463, 8th Floor Data Suites 800-850 Digital Lakeside, LLC $29,620,290.00

19445, Denver Central Library Remodel City and County ofDenver $1,496,569.00


Construction to its subcontractors and materialmen that it engaged for the various projects,

subject to the terms of the bonds, the contracts, the Colorado Bond Act, and the law.

11. Travelers is a surety company in the business of issuing surety bonds on behalf of

contractors in the State of Illinois and the State of Colorado.

THE BONDED PROJECTS

12. At the request of Krahl Construction, Travelers, as surety, issued the following

payment and performance bonds (collectively, “Bonds”) on behalf of Krahl Construction, as

principal, for the Krahl Construction projects identified below (collectively, “Projects”), in favor

of the obligees:

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19330, 11th Floor Sheriff Office 69 West Washington $439,930.00

19329, 8th Floor Compliance Offices 69 West Washington $21,138.00

19270, Docutech Print Shop 69 West Washington $340,485.00

18466, Multi Purpose Room Lower 69 West Washington $450,228.00Level

18127, Harris Theater Remediation Harris Theatre for Music & $1, 101,566.00Dance

17834, Medical Health Design Building Dept. ofVeterans Affairs $927,000.00

Studio & Newsroom Renovation of Fox Television Stations, Inc. $11,404,861.00Station.

National Passenger Corp, Project Name Illinois Department of $50,895.004th Floor Restroom Renovation Transportation (IDOT)

Remodeling Offices of Cook County Clerk 69 West Washington $112, 197.005th Floor, George W. Dunne

Infiltration Remediation Suite 410 through Digital Lakeside LLC $24,049,283.00

460@ 350 E. Cermak Rd

Harris Theater Water Infiltration Harris Theatre for Music & $1,307,095.00Remediation Dance, Inc.

Renovation & Environ Upgrade of the National Railroad Passenger $4,269,230.00Diesel Fueling Station at Amtrack Yards Corp.1600 S. Lumber


THE INDEMNITYAGREEMENT

13. As a condition for Travelers’ issuance of Bonds on behalf of Krahl Construction,

Travelers first required that the Krahl Construction and Defendant each enter into a General

Agreement of Indemnity (“Indemnity Agreement”) with Travelers. (A true and correct copy of

the Indemnity Agreement executed by Krahl Construction and Paderta is attached hereto as

Exhibit 1).

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14. The Defendant, Paderta and Krahl Construction executed the Indemnity

Agreement. (Defendant, Paderta and Krahl Construction are hereinafter collectively referred to

as “Indemnitors.”)

15. The Indemnity Agreement requires the Defendant and/or Krahl Construction to

indemnify and hold Travelers harmless, in part, from all liability under the Bonds it issues on

behalf of Krahl Construction. Specifically, the Indemnity Agreement provides, in relevant part,

the following:

(Exhibit 1).

3. Indemnification and Hold Harmless: Indemnitors shall

exonerate, indemnify and save Company harmless from and

against all Loss. An itemized, sworn statement by an employee of

Company, or other evidence ofpayment, shall be prima facieevidence of the propriety, amount and existence of theIndemnitors’ liability. Amounts due to Company shall be payableupon demand.

(Exhibit 1).

16. The Indemnity Agreement also requires the Defendant and/or Krahl Construction

to post collateral upon Travelers’ demand to cover any loss, contingent or otherwise.

Specifically, the “Collateral Security” section of the Indemnity Agreement provides that the

Indemnitors agree to the following:

5. Collateral Security: Indemnitors agree to deposit with

Company, upon demand, an amount as determined by Companysufficient to discharge any Loss or anticipated Loss. Indemnitorsfurther agree to deposit with Company, upon demand, an amount

equal to the value of the assets or Contract funds improperlydiverted by any Indemnitor. Sums deposited with Companypursuant to this paragraph may be used by Company to pay suchclaim or be held by Company as collateral security against anyLoss or unpaid premium on any Bond. Company shall have no

duty to invest, or provide interest on, the deposit. Indemnitors

agree that Company would suffer irreparable damage and wouldnot have an adequate remedy at law if Indemnitors fail to complywith the provisions of this paragraph.

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17. Pursuant to 9 of the of the Indemnity Agreement, Krahl Construction and

Defendant agreed to treat, whether in their possession or not, all contract funds paid on projects

that Travelers issues bonds as “trust funds” for the “benefit and payment of all obligations for

which Company as beneficiary may be liable under any Bond.” (Exhibit 1).

THE CLAIMS ASSERTED AND THE INDEMNITORS DEFAULT

18. Upon information and belief, in January, 2010 the Federal Bureau of Investigation

(“FBI”) raided the Chicago office Krahl Construction’s as part of an ongoing federal

investigation.

19. Upon information and belief, in January, 2010, Krahl Construction ceased its

operations and is no longer in business.

20. On or about January 15, 2010, Krahl Construction entered into a Trust Agreement

and Assignment for the Benefit ofCreditors ofKrahl Associates, Inc., d/b/a Krahl Construction.

21. As of January 19, 2010, Travelers has received numerous claims against the

payment bonds and performance bonds.

22. Upon information from Krahl’s counsel Krahl Construction’s bank has swept

contract funds from Krahl Construction’s operating business checking account in order to

reimburse the bank for Krahl Construction’s loans with the bank.

23. Krahl Construction has abandoned the bonded contracts. The abandonment of the

bonded contracts by Krahl Construction constitutes a default under the Indemnity Agreement.

24. Travelers has notified the Defendant and Krahl Construction of the claims against

the Bonds and demanded that the Defendant and/or Krahl Construction indemnify and hold

Travelers harmless.

25. Travelers has requested that the Defendant and/or Krahl Construction post

collateral.

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26. Travelers has requested access to inspect the books and records Krahl

Construction.

27. The Defendant and/or Krahl Construction have not indemnified Travelers, refused

to post collateral and have not been granted full and complete access to Krahl Construction’s

ooks and records. A copy of Travelers collateral demand is attached hereto as Exhibit 2.

COUNT I —BREACH OF CONTRACT

28. Travelers hereby adopts and incorporates by reference its allegations in

paragraphs 1 through 27 above as though set forth fully herein.

29. The Defendant and Krahl Construction are obligated to (a) indemnify Travelers to

and from all losses in connection with the Bonds and the costs and expenses incurred by

Travelers in enforcing the terms of the Indemnity Agreement and (b) to post collateral to cover

Travelers contingent bond exposure and future expenses. (Exhibit 1).

30. Despite Travelers demand, the Defendant has breached the agreement between the

parties by failing and refusing to indemnify and hold Travelers harmless from the Bond claims

and to post collateral in the amount ofTravelers initial estimated Bond exposure.

31. Travelers has been damaged by the Defendant’s material breach of the Indemnity

Agreement.

COUNT II—EXONERATION AND QUIA TIMET



33. Travelers has demanded that the Defendant and/or Krahl Construction indemnify

and hold it harmless from the amount it has expended to date. Travelers has further demanded

that the Defendant and/or Krahl Construction post collateral. The collateral Travelers has

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demanded does not include all pending claims, future claims and the attorneys and consulting

fees and expenses Travelers will incur in discharging its obligations under the Bonds and in

enforcing the terms of the Indemnity Agreement.

34. As the principal of the performance and payment bonds, Defendant and Krahl

Construction owe Travelers the duty of exoneration, requiring Defendant and/or Krahl

Construction to perform its obligation before Travelers is called upon to perform its obligations

under the Bonds. Additionally, the Indemnity Agreement requires the Indemnitors to place funds

or other security with it upon demand. (Exhibit 1).

35. Travelers is entitled to a remedy known as quia timet. This remedy secures a

surety from loss when it appears that the principal is reasonably likely to fail or refuse to perform

or to protect the surety from loss.

36. Based, in part, upon the Defendant’s failures to reimburse Travelers and post

collateral, the Defendant has failed and refused to meet his obligations under the Indemnity

Agreement.

37. Krahl Construction has assigned its corporate assets to be liquidated for the

benefit of its secured creditor, the bank.

38. Travelers is entitled to be reimbursed for the attorneys and consulting fees and

claim payments it has currently paid and to be fully collateralized by the Defendant. Unless the

injunctive relief requested in Count IV below is granted, the Defendant is likely to sell, transfer,

dispose, lien, secure, or otherwise divest their assets from being used to discharge the

Defendant’s obligations to exonerate and indemnify Travelers, all to the irreparable harm of

Travelers.

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39. Travelers lacks an adequate remedy at law to secure its right of exoneration from

the Defendant and/or Krahl Construction and is without a plain, speedy remedy at law, and will

be irreparably and permanently injured unless this Court grants the injunctive and equitable relief

requested herein.

COUNT III—SPECIFIC PERFORMANCE OF THE INDEMNITY AGREEMENT



41. Travelers has demanded that the Defendant and/or Krahl Construction indemnify

and hold Travelers harmless from any and all costs it incurred and to post collateral.

42. Despite demands, and Travelers good faith efforts, the Defendant has failed to

repay Travelers and has not posted collateral.

43. Travelers lacks an adequate remedy at law and will suffer irreparable harm if the

relief sought is not granted.

COUNT IV—PRELIMINARY INJUNCTION



45. By the express provisions of the Indemnity Agreement and by virtue of the

equitable doctrines of exoneration and quia timet, Travelers is entitled to have the Defendant

place funds or other security with it upon demand that are sufficient to cover the above-described

Bond claims.

46. Unless preliminary injunctive relief is granted, Travelers will not be adequately

secured for its obligations prior to resolving the pending claims under the Bonds or incurring

further bond expenses. Further, unless the preliminary injunctive relief is granted, the Defendant

and/or Krahl Construction is likely to sell, transfer, dispose, lien, secrete, or otherwise divert

96523213v1 838180 2866


their assets from being used to discharge Defendant’s obligations to exonerate and indemnify

Travelers, all to Travelers irreparable harm.

PRAYER FOR RELIEF FOR ALL COUNTS

WHEREFORE, Travelers Casulty and Surety Company of America respectfully requests

that the Court grant the following relief:

a. Enter a Judgment in favor of Travelers for Breach of Contract in the amount of

$499,000, plus interest for Travelers initial collateral demand;

b. Issue an order to Defendant to Show Cause at the earliest possible date as to why

the relief demanded herein should not be granted;

c. Issue a Preliminary Injunction, which includes the following:

i. Requires Defendant to place with Travelers the initial amount of $499,000of funds by money, property, or liens or security interests in property, and

any additional amount as determined by Travelers as security for its

obligations under the Bonds;

ii. Enjoins and restrains Defendant from selling, transferring, or disposing or

liening their assets and property, and further enjoins and restrainsDefendant from allowing their assets and property to be liened, unless anduntil Travelers shall receive the funds requested in sub-paragraph c-iabove;

iii. Grants a lien upon all assets and property, including, realty, personaltyowned by Defendant and property in which Defendant has an interest.Such lien shall secure Travelers against any loss that it may sustain underthe Bonds. Such lien shall remain in effect unless and until Travelers shallreceive the funds requested in sub-paragraph c-i above;

iv. Requires Defendant to indemnify and exonerate Travelers for allliabilities, losses, and expenses incurred by Travelers as a result ofTravelers having executed the Bonds;

v. Requires Defendant to provide Travelers access to the Defendant’s andKrahl Construction’s books and records for inspection and copying byTravelers pursuant to the terms of the Indemnity Agreement;

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d. Order the Defendant to pay for Travelers future costs, including reasonable

attorneys’ and consulting fees incurred herein;

e. For such other relief as this Court deems appropriate.

John E. Sebastian (#6230240)Daniel R. Degen (#6296199)Hinshaw & Culbertson LLP222 North LaSalleSuite 300

Chicago, IL 60601

Telephone: (312) 704-3000Facsimile: (312) 704-3001

[email protected]@hinshawlaw.com

11

TRAVELERS CASUALTY ANDSURETY COMPANY OF AMERICA

By:/s/ John E. SebastianOne of Its Attorneys

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Case 1:10-cv-00406 Document 1-1 Filed 01/20/10 Page 1 of 5

General Agreement TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICAOf Indemnity Hartford, Connecticut 06183

We the undersigned, incfividually and for and on behalf of all other Indernnitors, enter into this General Agreement of Indernr("Agreement) in favor of Company. Witnesseth:WHEREAS, in the transaction of business, Bonds have heretofore been and may hereafter tie executed by Company. In connectiwith the execution, delivery and/or assumption of obfigations of such Bonds, Company requires complete indemnification.NOW, THEREFORE, as an inducement to Company and in consideration of Company's execution and/or delivery of one or mcBonds, refraining from canceling one or more Bonds, andlor assumption of obligations by Company of one or more Bonds, andother good and valuable consideration, the Indemnitors jointly and severally agree with Company as follows:1. Definitions: For purposes of this Agreement, the following definitions apply, which definitions shall be equally applicable to bothe singular and plural forms of such terms:Bond Any and all bonds, undertakings, guarantees, contractual obligations, and writings or statements of prequalificafioncommitment, including Modifications thereof, for which Company has an obligation as a result of an asset purchase, acquisition, mereor like transaction, issued for, or which Company has executed or procured for or on behalf of: (a) any one or more of the lndemnito(without regard to whether any such Indemnitor signed this Agreement), their respective present or future direct or indirect parecompanies, subsidiaries and affiliates and all of their respective successors and assigns; (b) any present or future joint venture, aventure, consortium, partnership, trust, association, limited liability company or other legal entity in which one or more of the persons centities identified in sub-paragraph (a) above have an interest; (c) any other person or entity at the request of any of the Indemnitors; c(d) any combination of the above, whether executed or procured before, on, or after the execution of this Agreement For the purposof this definition. 'Modifications' shall include but not be limited to renewals, substitutions, riders, endorsements, reinstatementreplacements, increases or decreases in penal sum, continuations, and extensions.

Company Travelers Casualty and Surety Company of America, St, Paul Fire and Marine Insurance Company, any of their present cfuture direct cr indirect parent companies, any of the respective present or future direct or Indirect affiliates or subsidiaries of sucicompanies and parent companies, and/or any of the aforementioned entities' successors or assigns.Contract Any contract or obligation the performance of which is guaranteed or covered ether in whole or in part under a Bond.Default Any of the following shall constitute a Defautt: (a) a declaration of Contract default by any Obligee; (b) actual breach oabandonment ofany Contract; (c) a breach of any provision of this Agreement; (d) failure to make payment of a properly due and owirebill in connection virtb any Contract; (e) Company's good faith establishment of a reserve; (t) improper diversion of Contract funds oany Indemnities assets to the detriment of Contract obligations; (g) any Indemnitar's becoming the subject of any proceeding oiagreement of bankruptcy, receivership, insolvency, or creditor assignment, or actually becoming insolvent; (h) any lndemnitor's dyingbecoming legally incompetent, being imprisoned, being convicted of a felony, or disappearing and being unable to be located; (i) anrepresentation furnished to Company by or on behalf of any Indemnitor proving to have been materially false or misleading when made,and/or 0) any change in =trot or existenee of any Indemnitor. Change of control means the addition or departure of any person orentity having a 10% or greater ownership interest in any lndemnitor.Indemnitors Undersigned, all new indemnitors added ter this Agreement by rider, their present and future direct and indirectsubsidaries, affiliates, and parent companies, and all of their successors and assigns, and any joint venture, co-venture, consortium,partnership, trust, emaciation, limited liability company or other legal entity in which one or more of them are involved, whether inexistence now or formed or acquired hereafter, and any entity that obtains Bonds from Company at the request of any of theaforementioned parties, or any combination of the above.Loss All loss and expense of any kind or nature, including attorneys' and other professional fees, which Company incurs inconnection with any Bond or this Agreement, including but not limited to all loss and expense incurred by reason of Company's: (a)making any investigation in connection with any Bond; (b) prosecuting or defending any action in connection with any Bond; (c)obtaining the release of any Bond; (d) recovering or attempting to recover Property in connection with any Bond or this Agreement; (e)enforcing by lifigation or otherwise any of the provisions of this Agreement, and (f) all interest accruing thereon at the maximum legalrate.

Obligee My person or entity in whose favor a Bond has been issued, and that person's or entity's successors and assigns.Peoperty indernnitors' rights, titie and interest, whether now held or hereafter acquired in; (a) any Contract or contract, including butnot limited to subcontracts let, (b) any and all sums due or which may hereafter become due under any Contract or contract, and alldamage claims and proceeds related thereto; (c) all rights arising under any surety bonds or insurance policies; and (d) any and altaccounts receivable, letters of credit, documents of title, bills of lading, warehouse receipts, machinery, plants, equipment, toofe,materials, supplies, inventory, vehicles, hardware, software, machine toots, futures, office equipment, books, recceds, designs,licenses, patents, intellectual property, as-builts, construction drawings and documents, and all electronically stored information.Z Payment of Premium: lndemnitors shall pay to Company all premiums for each Bond executed and all renewals and extensionsthereof.3. Indemnification and Hold Harmless: Indemnitors shall exonerate, indemnify and save Company harmless from and against allLoss. An itemized, sworn statement by an employee of Company, or other evidence of payment, shall be prima fade evidence of thepropriety, amount and existence of Indemnitors' liability. Amounts due to Company shall be payable upon demand.4. Claim Settlement Company shall have the right, in its sole discretion, to determine for itself and indemnitors whether any claim,demand or suit brought against Company or any Indemnitor in connection with or relating to any Bond shall be paid, compromised,settled, tried, defended or appealed, and its determination shall be final, binding and conclusive upon the Indemnitors. Company shallbe entitled to immediate reimbursement for any and all Loss incurred under the belief it was necessary or expedient to make suchPar-rents.S-5007 (8-2004) EX1.1.....11111111171nr Page 1

Case 1:10-cv-00406 Document 1-1 Filed 01/20/10 Page 2 of 55. Collateral Security: Indemnitors agree to deposit with Company, upon demand, an amount as determined by Company sufficientto distharge any Loss or anticipated Loss. lndemnitors further agree to deposit with Company, upon demand, an amount equal to Olevalue of any assets or Contract funds improperly diverted by any Indemnitor. Sums deposited with Company pursuant to this paragrephMay be used by Company to pay such claim or be held by Company as collateral security against any Loss or unpaid premium on tnyBond. Company shall have no duty to invest, or provide interest on, the deposit. Indemnitors agree that Company would su erirreparable damage and would not have an adequate remedy at law if Indemnitors fail to comply with the provisions of this paragraph!6. Remedies: In the event of a Default, Indemnitors assign, cenvey and transfer to Company all of their rights, title and interests inProperty, and Company shall have a right in its sole discretion to: (a) take possession of the work under any Contract and to completesaid Contract, or cause, or consent to, the completion thereof, (b) immediately take possession of Indemnitors' Property, and utilize teeProperty for the completion of the work under the Contracts without payment for such use; (c) assert or prosecute any right or claim inthe name of any Indemnitor and to settle any such right or claim as Company sees fit; (c1) execute in the name of any Indemnitoe seeinstruments deemed necessary or desirable by Company to: (i) provide Company with title to assets, (ii) take immediate possession tsfContract funds whether earned or unearned, (iii) collect such sums as may be due lndemnitors and to endorse in the name pfIndemnitors, and (iv) collect on any negotiable instruments; (e) require any Obligee to withhold payment of Contract funds unless anduntil Company consents to its release; (f) be subrogated to all the rights, remedies, properties, funds, securities and receivables relatigto Indemnitors' Contracts or contracts and have the right to offset losses on any Contract or Bond against proceeds, funds, or proper;ydue from another Contract, bond or contract. Further, in the event cf Default and upon demand Indemnitors shall direct that z! Iipayments, monies, and properties that are clue or may become due on any Contract or contract be made payable to, and/or seetdirectly to, Company, and shall issue whatever writing or notices as deemed necessary by Company to effectuate the default and/ertermination of any Contract.7. Joint and Several Liability: The obligations of Indernnitors hereunder are joint and several. Company is authorized to settle witilany one or more of the lndemnitors individually, and without reference to the others, and any such settlements shall not bar or prejudiceactions by Company against or affect the liability of the other Indemnitors hereunder.8. Decline Execution: Company has the right, for any reason, to decline to execute: (a) any Bond, including final Bonds wherCompany provided a bid Bond; (b) any Bond rider or consent authorizing any change to any Bond; and/or (c) any other consentsurety, without incurring any liability or waiving any right.

9. Trust Fund: All payments due or received for or on accpunt of any Contract whether or not in the possession of any tndemnftor;shall be held in trust as trust funds by lndemnitors for the benefit and payment of all obligations for which Company as beneficiary rna:,be liable under any Bond. Company may open a trust account or accounts with a bank for the deposit of the trust funds. Upon demand:Indemnitors shall deposit therein aii trust funds received. Withdrawals from such trust accounts shall require the express consent or'Company.10. Books, Records and Credit: Indemnitors shall furnish upon demand, and Company shall have the right of free access to, aftreasonable times, the records of Indemnitors including, but not limited to, books, papers, records, documents, contracts, reports,1financial information, accounts and electronically stored information, for the purpose of examining and copying them. Indernnitors!expressly authorize Company to access their credit records, including, but not limited to, account numbers and/or account balances.,,,from financial institutions. To the extent required by law, Indemnitors, upon request, shaft be informed whether or not a consumer:report has been requested by Company, and if so, of the name and address of the consumer reporting agency furnishing the report11. Attorney in Fact: Indemnitors irrevocably constitute, appoint and designate Company as their attorney in fact with the right, butnot the obligation, to exercise all rights of lndernnitors assigned or granted to Company and to execute and deliver any otherassignments, documents, instruments or agreements deemed necessary by Company to exercise its rights under this Agreement in thename ofany Indemnitor.

12, Security Interest As security for their obliaations hereunder, lndemnitors hereby grant to Company a security interest in the Ifollowing properties, assets and rights of lndemnitors, wherever located, whether now owned or hereafter acquired or arising, and all 1preceeds and products thereof: all goods (including inventory, equipment and any accessions thereto), instruments (includingpromissory notes), documents, accounts, chattel paper, deposit accounts, letter-oecredit rights, securifies and all other investmentproperty, supporting obligations, arty Contract or contract rights or rights to the payment of money, insurance claims and proceeds, andall general intangibles (the "Collateral"). This Agreement shalt for all purposes constitute a Security Agreement for the benefit ofCompany in accordance with the Uniform Commercial Code ("UCC") and all similar statutes. Indemnitors hereby irrevocably authorizeCompany, without notice to any IndemnItor, in order to perfect the security interest granted herein, to file either (a) this Agreement or acopy or other reproduction of this Agreement; or (b) any initial financing statements or amendments thereto that indicate the Collateralas all assets of Indemnitors or words of similar effect, as being of an equal or lesser scope or with greater detail and that contain any;other information relating to any Indemnitor required by Part 5 ofArticle 901 the UCC for the jurisdiction where such financing statementor amendment is filed. Company may add schedules or other documents to this Agreement as necessary to perfect its rights. The;failure to file or record this Agreement or any finandng statement shall not release or excuse any of the obligations of lndemnitorsunder this Agreement.13, Termination: Th;s ts a continuing Agreement, which remains Fri full form and effect until terminated. The sole method available to:Indemnitors to terminate their participation in this Agreement is by giving written notice to Company of Indemnitors' intent to terminate.Such notice shall be sent to St. Paul Travelers Bond, Attention: Construction Services Bond, One Tower Square, 5P8, Hartford,Connecticut 06181 The termination shall take effect thirty (30) days after Company receives such notice (Termination Date). Thenotice shall not relieve indernnitor from its obligations for any Bond executed prior to the Termination Date or with respect to any Bondexecuted after the Termination Date: (a) upon the award of a Contract to any lndemnitor on a bid or proposal in respect of whichCompany has executed or procured a bid Bond prior to the Termination Date; or (b) which Company has become committed to executeor procum prior to the Termination Date; or (c) in connection with any maintenance, guarantee, claim, lien, litigation, or other matterinvolving or relating to any Bond executed prior to the Termination Date or thereafter executed or procured as provided in sub-paragraphs (a) or (b) above.

S-6007 (8-2004)Page 2

Case 1:10-cv-00406 Document 1-1 Filed 01/20/10 Page 3 of 514. Jurisdiction: In any legal proceeding brought by or aganst Company that in any way relates to this Agreement, each Indernn tor,fix itself and its property, irrevocably and unconditionally submits to the exclusive jurisdiction, at the sole and exclusive option ofCompany, of the coeds in any state in which any Indemnitor resides, has property, or in which any Contract is performed. Indemniiorshereby irrevocably and unconditionally submit to the jurisdicfion of said courts and waive and agree not to assert any claim that they !erenot subject to the jtidsdiction of any such court that such proceeding is brought in an inconvenient forum or that the venue of sechproceeding is improper.

15. Other Sureties: tf Company procures the execution of Bonds by other sureties, executes Bonds with co-sureties or oblafrisreinsurance. the provisions of this Agreement inure to the benefit of such other surety, co-surety or reinsurer, but only as to s( chBonds.16, Nature of Rights: If any provision or portion of this Agreement is or becomes unenforceable, this Agreement shall not be void, eutshall be constnied and enforced with the same effect as though such provision or portion were omitted. This Agreement is in additiorfloand not in lieu of any other agreement of indemnity, whether now existing or entered into hereafter. Company shall be entifierreospecific performance of the terms of this Agreement in addition to any other remedy at law or equity. Time is of the essence in t-iisAgreement Whenever the context may require, any pronoun used in this Agreement shall include the corresponding ma scule,e,

feminine and neuter forms, The rights and remedies afforded to Company by the terms of this Agreement can only be modified by. awritten rider to this Agreement signed by an authorized representative of Company. If any Indemnitor fails to execute or impropeelyexecutes this Agreement or is otherwise found not to be bound under this Agreement, such failure or finding shall not affect tieobligations of the other Indemnitors The failure to sagn or the improper execution of a Bond shall not affect Company's rights under thisAgreement, and Indemnitors waive any claim they may have, now or at any time in the future, arising out of the failure to sign brproperly execute a Bond. Termination and/or limitation of any Indemnitore obligations under this Agreement shall in no way affect tfobligations of any of the other Indemnitors whose obligations have not been terminated and/or limited. Indemnitors acknowledge thisAgreement can be amended via rider to add another person, entity or entities as Indernnitor(s) to this Agreement and lndemnitors wa'any and all notice in connection with the addition of additional Indemnitors and further acknowledge the rights and obligations providdherein shall apply to all Indemnitors whenever made a party to the Agreement.17. Jury Waiver: Indemnitors hereby waive and covenant that they will not assert any right to trial by jury in respect to any legfilproceeding arising out of this Agreement.

i18. Resolution: Indemnitors have a substantial, material and beneficial interest: (a) in the obtaining of Bonds by aeiy of thl.leIndemnitors and (b) in the transaction(s) for which any Indemnitor has applied or will apply to Company for Bonds pursuant to thieAgreement Indemnitors have the full power and authority to execute, deliver and perform this Agreement and to carry out theobligations stated herein. indemnitors further acknowledge and agree that (x) the execution, derwery and performance of thitiAgreement by such Indemnitors; (y) the compliance with the terms and provisions hereof and (z) the carrying out of the obligation;contemplated herein, do not, and will not, conflict with and will not result in a breach or violation of any tei-ms, conditions or provisions Cithe charter documents or bylaws of such Indemnitors, or any law, governmental rule or regulation, or any applicable order, writ.injUnclion, judgment or decree of any court or governmental authority against Indernnitors, or any other agreement binding uporiIndemnitors, or constitute a Default hereunder.19. Date ofAgreement: The date of this Agreement shall 'ese the earliest date any lndemnitor executes this Agreement.,WE HAVE READ THIS iNDEMNITY AGREEMENT CAREFULLY. MERE ARE NO SEPARATE AGREEMENTS ORUNDERSTANDINGS WHICH IN ANY WAY LESSEN OUR OBLIGATIONS AS ABOVE SET FORTH. IN TESTIMONY HEREOF, THEINDEMNITORS HAVE SET THEIR HANDS AND FIXED THEIR SEALS AS SET FORTH BELOW.IMPORTANT: 1. PRINT OR TYPE NAMES UNDER EACH SIGNATURE,2. ALL PERSONAL INDEMNITORS MUST PROVIDE A RESIDENTIAL ADDRESS AND SOCIAL SECURITY NUMBER ANDEACH SIGNATURE MUST BE NOTARIZED.

3. AU. ENTITY INDEMNITORS MUST PROVIDE AN ADDRESS AND FEDERAL TAX IDENTIFICATION NUMBER, IFAPPLICABLE. TWO SIGNATURES ARE REQUIRED OF ALL ENTITIES AND EACH SIGNATURE MUST BE NOTARIZED.

e 4, --t. „1-1-4".;,z4."..7 I '4-1 V. 1 4.-1-3,. e%.x,(I-nitor —Individual (signature) Month/Day/Year Address

John P. Paderta11111110438.tnriemnitcr l-cf JL.,,ii :mint Of type) SS#

ACKNOWLEDGEMENT

On this ...a. day of 0 4.: -..r.: 2:14" (taf., e personany appeared Jo.'f.‘, i? cof 4v..,b.- r- /2 e1,--tre...i known iP I( ior proven to me to be the person described in a r c ..r o executed the foregoing Instrument and hershe acknowledged to me that he/she executed thesame. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my OFFIC LliFAL. the day and year i t above written.

Notary Publicl(signature),'7OFFICAL SEAL //1-7/2/4,,,,4 /fr, 6PATRICIA Itif GALL Notary Public (print or type)NOTARY Ftli9LIC STATE OP ILUNOIS

f‘Y COMMISSION EXPIRES:PM/3/11 Nasty Public residing at

-ICommission expires:,y 2,,, tieI..'s. ir,,..-1 -...e-r, i

8-5007 (8-2004)Page 3 i

1I

If Indemnitor a Corporation, Limtted IJability Company Partnprehty,

322 S. Green St, Chicago IL.


bruir oelow:Instniotions: All signatures must be notarized. If the entity is: 1) a Corporation, the Secretary and an Authorized Officer should sign on behalf of 'the

taw..

Corporation; 2) a Limited Liability Company, the Manager or Member(s) should sign on behaff of the LLO, 3) a Partnership, the Partner(s) should sigr; onCompany.behalf of the Partnership; or 4) a Trust, all Trustees should sign. Two signatures are required for ail entities except where otherwise instructed byEach of the undersigned hereby affirms to Company as follows: I am a secretary or a duly authorized officer, manager or official of the business endyindernnitor on whose behalf I am executing tNs Agreement M such capacrly I am familiar with all of the documents which set forth and estabfish 1-?erights which govern the affairs, power and authority of such business entity including, to the extent applicable, the certificate or articles of incorporati 11.bylaws, corporate resolutions, and partnership, operating or limited liability agreements of such business entity, Haying reviewed all such applicaledocuments and instruments and such other facts as deemed appropriate, I hereby affirm that such entity has the power and authority to enter into ilisAgreement and that I am duly authorized to execute this Agreement on behatf of said entity.

Krahl Associates Inc. dba Krahf Construction36-3570175Indemnitor Corporation, Limited Liability Company, Pa rtne rsilp, orTrust (drciesiW,, .1. —me.-(Federal Tax ID) Month/Day/Year

ACKNOWLE'DCSMENT rt1.17;01$STATE OF County ofMk;,

i*On this,?2 day cf r,,, ''''1 ..^:t.,,, before rne personally appeared kiV,,,i.., P. 3)=1"--er 4-4., known or proven to me to be thIeof the C,Orporatiorimited Liability Company. Partnership, or Trust (circle one); hereinafter referred to as 'Entity')and g 4- (4":4-1.7, known or proven to me to be the 5---.,-..-...A--, t.„..2_-- of the Entfty executing the abovi,.instrument, and acknowledged said instrument to be the free and voluntary act and deed of said Entity, for the uses and purposes therein mentionedoh oath stated that the seal affixed is the seal of said Entity and that it was affixed and that they executed said instrument by authority ofsaid Entity. IWITNESS WHEREOF, I have hereunto set my hand and affixed my OFFICIAL SEAL the day and year first above written.

1!

rvoiary ruom (signature)CFFICIAL SEAL ikfr27,,c, //I /4PA1RICIA M GALL Notary Public (print or type)NOTARY PUBLIC STATE OF ILLINOIS

MY COMMISSION EXPIRES:051 Notary Public residing at e.:veitic,e4 _412_MCommission expires:

Indemnfter Corporation, Limited Liability Company, Partnership, or (Federal Tax ID) Month/Day/YearTrust (circle one)

By (Seal) By(Seal)(Signature ofAuthorized Officer) (Signature ofAuthorized Officer),

(Print or Type Name and Title) (Print or Type Name and Title)(Address) (State of incorporation Formation)

ACKNOWLEDCEVENTSTATE OF County of

On this dayof,,before rne pers appeared known or proven to me to be theof the (Corporation, Limiteu Lronoily Company, PartnershO, or Trust (circle one); hereinafter referred to as 'Entity)and,known or proven to me to be the of the Entrly executing the above.instrument, and adoowledged said instrument to be the free and voluntary act and deed of said Entity, for the uses and purposes therein mentioned aridon oath stated that the seal affixed is fhe seal of said Entity and that it was affixed and that they executed said Instrument by authority of said Entity. INWITNESS WHEREOF, f have hereunto set my hand and affixed my OFFICIAL SEAL Me day and year Fust above wrilten.

Notary Pubfic (signature)S-5007 (8-2004)Page 4

0/11"ifik4j.,,

e0..-• 4:).+(Signature oz'' -.4."*.*-

Bernice Wilson, Secretary itil ca.:or *kern MO i fz.iIL (Print.1. e,

(State OfTwerp° P, k a

44404115113.-Staka0


Notary Public (print or type)Notary Public residing at

Commission expires:

indemnitor Corporation, Limited Liability. Company, Partnership, or (Federal Tax ID) Month/Day/year,Trust (circle one)

BY(Seal) By

(Seal!(Signature ofAuthorized Officer) (Signature of Authorized Officer)

(Print or Type Name and Title) (Print or Type Name and Till0(Address) (State of Incorporation Fomlation)ACKNOWI.7777'E'VENT

STATE OF .INNliR Coi tyOn this dayof,brfore me personallyappeared,known or proven to me to be the;of the (Corporation, Limited Liability Company, Partnership, or Trust (circle one); hereinafter referred to as 'Entity)and,known or proven to me to be the of the Entity executtng the aboveInstrument, and acknowledged said instrument to be the free and voluntary act and deed of said Entity, for the uses and purposes therein mentioned enVon oath stated that the seal aft-aced is the seal ofsaid Entity and that it was affixed and that they executed said instrument by authority ofsaid Entity, INWITNESS WHEREOF, T have hereunto set my hand and affixed my OFFICIAL SEAL the day and year first above written.

y r UUULi (print Or

Notary Public residing at:

Commission expires:

(signature)

5-5007 (8-2004)Page 5


HINSHAW& CULBERTSON LLP

ATTORNEYS AT LAW

222 N. LaSalle StreetSuite 300Chicago, IL 60601-1081

January 12, 2010 T 312-704-3000F 312-704-3001www.hinshawlaw.com

VIA EMAIL AND FACSIMILE

Harold Rosen, Esq.Attorney for Krahl Construction and John P. PadertaWolin & Rosen55 West MonroeSuite 3600Chicago, Illinois [email protected]

Re: Contractor: Krahl Construction, Inc.

Surety: Travelers Casualty and Surety CompanyMatter: Indemnity

Dear Mr. Rosen:

On behalf ofTravelers Casualty and Surety Company ("Travelers"), I am writing to make

a formal demand for your clients, Krahl Construction ("Krahl") and John P. Paderta [collectivelyreferred to as the "Indemnitors"], to post collateral with Travelers and to provide Travelers free

access to inspect and copy the Indemnitors books and records.

Krahl Construction's Closing Business and Krahl's Status

Travelers has learned in the news that the FBI is investigating Krahl, that Krahl

voluntarily shut its office, and Jason Campbell, Krahl's COO, wrote to Kralil's employess statingthat "Krahl Construction is no longer in business as of Friday, January 08, 2010, for the

employees with company vehicles, computers and phones you will need to bring them to the

main office ofMonday, January 1 lth, 2010....I would like to thank you for your service and hard

work throughout the years.° Based upon the foregoing, among other defaults, the Indemnitors

shuting its operations and abandonding the bonded contracts is an event of default under the

General Agreement of Indemnity ("Indemnity Agreement"). .-10.1.111111M111.111111nlorrNBC News Chicago, Dick Johnson, published January 8, 2010

Arizona California Florida Illinois Indiana Massachusetts Minnesota Missouri NewYork Oregon Rhode Island Wisconsin6523395v1 026 026

CArilun

5


Harold Rosen, Esq.1/12/2010Page 2

You infonned me that Krahl's lender swept its operating account, that Krahl owes itslender approximately $4 million, and that Krahl is considering filing an assignment for thebenefit of creditors. In order to ensure that the contract funds, which are trust funds, are used to

discharge Krahl's obligations under the bonded contracts I ask that you provide me the contact

information ofKrahl's lender and the proposed assignee and notify these parties that the contract

funds paid on the bonded projects are trust funds as discussed below.

Bond Claims and the Open Bonded Projects

As we discussed, since Krahl has ceased operations, Travelers has received severalclaims against the payment and performance bonds it issued on behalf of Krahl. The openbonded projects that Travelers is aware at this time are the following projects:

Rush University- 105150332, $5.4MM High rise alarm & fire suppression system;Rush University- 105200154, $469M Geofoam installation;Rush University-105200155, $1MN4 Pedestrian bridge;Rush University-105200157, $624M Kellogg improvements;Denver County -105268766, $1.5MM- Central Library remodel;Rush University-105268775, $300M- Parking Garage update;U ofColorado-105323829,$612M- Renovation ofAnschutz Medical Bldg;Data Center- 105150330,$27MM.

The Indemnitors Indemnity Obligations And Travelers Collateral Demand

At this time, Travelers demands that the Indemnitors post cash collateral with Travelersas described below. Travelers' collateral demand is being made pursuant to the terms of theGeneral Agreement of Indenmity (the "Indemnity Agreement"). (A copy of the IndemnityAgreement is attached as Exhibit 1). Pursuant to the terms ofthe Indemnity Agreement, each ofthe Indemnitors, jointly and severally, agreed to:

3. Indemnification and Hold Harmless: Indemnitors shall exonerate, indeumifyand save Company harmless from and against all Loss.2 An itemized, sworn statement by an

2 Loss All loss and expense of any kind or nature, including attorneys' and other professional fees, whichCompany incurs in connection with any Bond or this Agreement, including but not limited to all loss and expenseincurred by reason of Company's: (a) making any investigation in connection with any Bond; (b) prosecuting or

defending any action in connection with. any Bond; (c) obtaining the release of any Bond; (d) recovering or

attempting to recover Property in connection with any Bond or this Agreement; (e) enforcing by litigation or

otherwise any ofthe provisions of this Agreement; and (f) all interest accruing thereon at the maximum legal rate.

6523395v1 026 026


Harold.Rosen, Esq.1/12/2010Page 3

employee of Company, or other evidence of payment, shall be prima facie evidence of the

propriety, amount and existence of Indemnitors' liability. Amounts due to Company shall be

payable upon demand.

Additionally, each of the Indemnitors agreed to place with Travelers collateral in an

amount as determined by Travelers. Specifically, the Indemnity Agreement requires theIndemnitors to post collateral with Travelers as follows:

5. Collateral Security: Indemnitors agree to deposit with Company, upon demand,an amount as determined by Company sufficient to discharge any Loss. hidemnitors furtheragree to deposit with Company, upon demand, an amount equal to the value of any assets or

Contract funds improperly diverted by any Indemnitor. Sums deposited with Company pursuantto this paragraph may be used by Company to pay such claim or be held by Company as

collateral security against any Loss or unpaid premium on any Bond. Company shall have no

duty to invest, or provide interest on, the deposit. Indemnitors agee that Company would suffer

irreparable damage and would not have an adequate remedy at law if Indemnitors fail to complywith the provisions of this paragraph.

At this time, Travelers initally requests that the Indemnitors post cash collateral withTravelers in the amount of $499,500. The collateral amount requested is subject to be increased

pending review of additional information. Travelers requests that the initial amount of collateralbe placed with Travelers on or before the close ofbusiness on January 13, 2010.

Trust Fund Obligations

The Indemnitors agreed to treat all contract funds it received, has on hand, and receivesin the future on the projects bonded by Travelers as trust funds pursuant to Paragraph 9 of the

Indemnity Agreement and in accordance with the Illinois Construction Trust Fund Act, 770ILCS 60/21.02. Any failure by the Indemnitors, Krahl Construction's lender, an assignee andKrahl Construction's employees who have not and do not treat the bonded contract funds as trust

funds will subject each of them to liability for any violation(s) that duty such a violation hasbeen found to not be dischargeable if that individual later files for bankruptcy relief. Paragraph9 of the Indemnity Agreement provides the following:

9. Trust Fund: All payments due or received for or on account of any Contract,whether or not in the possession of any Indenmitor, shall be held in trust as trust funds byIndemnitors for the benefit and payment of all obligations for which Company as beneficiarymay be liable under any Bond. Company may open a trust account or accounts with a bank forthe deposit of the trust funds. Upon demand, Indemnitors shall deposit therein all nust fundsreceived. Withdrawals from such trust accounts shall require the express consent ofCompany.

6523395v1 026 026



Pursuant to Paragraph 9, Travelers demands that the Indemnitors deposit all trust funds ithas on hand or receives in the future in connection with the bonded projects. You reported to me

during our telephone conversation Krahl Construction's lender has swept Krahl's operatingaccount. To the extent that such sweep included contract funds on the bonded projects, Travelers

requests that Krahl tender to Travelers the trust funds that were swept and notify the bank thatthe funds swept are trust funds pursuant to the Indemnity Agreement and the IllinoisConstruction Trust Fund Act.

Books and Records Review

As we discussed, Travelers has requested access to review and inspect KrahlConstruction's books and records. Although requested, the Indenmitors have failed to honorTravelers request. The Indemnity Agreement requires the Indemnitors to furnish Travelers freeaccess to its records. Paragraph 10 provides, in relevant part, the following:

10. Books, Records and Credit: Indemnitors shall furnish upon demand, and

Company shall have the right of free access to, at reasonable times, the records of Indemnitors

including, but not limited to, books, papers, records, documents, contracts, reports, financialinformation, accounts and electronically stored information, for the purpose of examining andcopying them. Indemnitors expressly authorize Company to access their credit records,including, but not limited to, account numbers and/or account balances from fmancialinstitutions. To the extent required by law, Indemnitors, upon request, shall be informed whetheror not a consumer report has been requested by Company, and if so, of the name and address ofthe consumer reporting agency furnishing the report.

Travelers reiterates its request for immediate free access, during business hours, to

inspect and copy the Indemnitors books and records. At this time, Travelers requests specificaccess to the following documents and information3:

The following information is requested for the parent/holding company and/or alloperating entities as of the most recent fmancial period-ended. Please provide all information as

of the same cut-off date. Projects subject to review will include any "open" projects defined as

jobs with outstanding work to complete, bills to pay or funds to collect.

1. Organizational Chart2. Current Business Plan3. Copy ofmost recent CPA prepared corporate financial statement including;

3.1. CPA Management Letter & Notes ofFinancial Statements

3 Travelers reserves the right to modify or supplement this request.

6523395v1 026 026



3.2. Supplementary Schedules including, but not limited to;3.2.1. Schedule ofWork in Progress3.2.2. Schedule of Completed Contracts3.2.3. Schedule of Indirect Operating Expenses (Allocated & Unallocated)3.2.4. Schedule ofNotes Payable3.2.5. Schedule of Lease Obligations3.2.6. Schedule ofAccounts Receivable and Accounts Payable with Reconciliations to

Balance Sheet4. Copy ofmost recent internally prepared fmancial statement including;

4.1. Trial Balance4.2. Income Statement4.3. Balance Sheet4.4. Schedule ofAccounts Receivable4.5. Schedule ofAccounts Payable4.6. Schedule ofWork in Progress4.7. Schedule ofCompleted Contracts4.8. Schedule ofNotes Payable (Bank Letter and or Line ofCredit and Equipment Term

Notes)4.9. Account Reconciliations for significant Balance Sheet Accounts

5. Copies of any recent correspondence with the bank regarding the status of letter and or lineof credit.

6. Copy of the most recent CPA prepared Financial Statement for affiliated entities that are

indemnitors7. Listing ofall bank accounts, account numbers and a brief description of each account.8. Summary ofbank and book cash balances and copies ofmost recent bank reconciliations and

statements. Bank sweep of company's operating account, obtain explanation and informationas to the bank line of credit account sweep such as what was the source of the funds that thebank used to close out the line of credit and request any documentation that the companyreceived from the bank as to any notice that was given to the company about the impendingsweep and request a copy of the bank line ofcredit agreement.

9. Summary ofoutstanding bank debt, Letters of Credit, copies of Loan Ageements, Line(s) ofCredit and most recent invoices for payment

10. Detailed Schedule ofFixed Assets11. Depreciation Schedule ofFixed Assets12. Corporate Tax Returns

12.1. 2009, 2008 Federal 1120 Return12.2. Quarterly 941 Returns12.3. 2009, 2008 State and Local Returns

13. Affiliated entities that are indemnitors updated financial statements and corporate tax returns.

14. Updated personal financial statements & tax returns for all indemnitors15. Schedule ofall significant assets ofaffiliated entities and indemnitors.16. Current Schedule ofWork In Progress

6523395v1 026 026



17. Job Cost Reports summarizing costs by category per job18. Access to Job Cost Detail Reports by Job19. Access to Project Files20. Schedule ofAccounts Payable (including retainage) by Job21. Schedule ofAccounts Payable (including retainage) by Vendor22. Schedule ofHeld Check (Remittance Written but not Released)23. Subcontractor and Significant Purchase Order Summary Schedule by Job24. Detail of any accrued liabilities not included in the Schedule ofAccounts Payable such as

payroll taxes and withholdings, unemployment insurance, worker's compensation, insurancepremiums or other items.

25. Current Aged Schedule ofAccounts Receivable (including retainage) by Job26. Current Aged Schedule ofAccounts Receivable (including retainage) by Customer27. Copies ofthe last paid and unpaid requisition(s) to the owners on all bonded jobs. Access to

requisitions on all unbonded jobs.28. Contract Status Summary reflecting Original Contract Amount, Revised Contract Amount,

Billings and Receipts to Date, Accounts Receivable, Retention and Unbilled Balance.29. Access to job files including Contract Change Orders, Contract Agreements, Purchase

Orders, and correspondence30. Current detailed cost to complete estimates on bonded projects by significant cost category31. Schedule of contract completion dates reflecting the company's projected completion dates

and the contractual completion dates32. Schedule of self-performed work (per trade) on bonded contracts33. Monthly financial projections for 2009 including; income statement, balance sheet, work-in-

progress and statement ofcash flow34. Monthly financial projections for 2009 including; income statement, balance sheet, work-in-

progress and statement ofcash flow35. Detailed monthly cash flow projections for 2009.36. Information regarding any claims against the company37. Information regarding any affirmative claims (e.g. against owners, subcontractors, or

suppliers)38. Detail ofmonthly and annual overhead39. Copies ofall signatory Collective Bargaining Agreements40. Benefit Fund Contribution Remittances

Failure To Comply With Travelers Requests

In closing, if Travelers has not received the collateral requested by the close of businesson January 13, 2010 and/or Travelers is not granted immediate access, during business hours, to

inspect and copy the Indemnitors books and records, Travelers will take all steps available to

protect and enforce its rights under the Indemnity Agreement, the bonded contracts, and the law.

6523395v1 026 026



If you would like to discuss this matter, please contact me. Nothing contained in thisletter shall be deemed a waiver of any of Travelers' rights and defenses and Travelers expresslyreserves all of its rights and defenses under the bonds, the Indemnity Agreement, any otheragreements, and the law. Travelers also reserves the right to demand additional collateral fromthe Indemnitors for, among other things, pending claims which Travelers is currentlyinvestigating, for future claims that may be asserted against the bonds, and additional costs and

expenses.

Very truly yours,

HINSHAW & CULBrRTr LLP

By: j.J E. SebastiiiDirect (312)704-3894

[email protected]

JESEnclosurecc: Shawn Pikas, Esq.

6523395v1 026 026


General Agreement TRAVELERS CASUALTY AND SURETY COMPANY OF AmERICAOf Indemnity Hartford, Connecticut 06183

We the undersigned, indwidually and for and on behalf of all other Indemnitors, enter into this General Agreement of indemr("Agreement" in favor of Company. Wrtnesseth:WHEREAS, in the transaction of business, Bonds have heretofore been and may hereafter be executed by Company. In connectiwith the execution, defivery and/or assumption of obligations of such Bonds, Company rewires complete indemnificadm.NOW, THEREFORE, as an inducement to Company and in considerafion of Company's execution and/or delivery of one or meBonds, refraining from canceling one or more &nth, and/or assumption of obligations by Company of one or more Bonds, and Iother good and valuable consideration, the Indemnitora jointly and severally agree with Company as follows:1. Definitions: For purposes of this Agreement, the following dermitions apply, which definitions shall be equany applicable to bethe singular and plural forms of such tei ms:Bond My and all bonds, undertakings, guarantees, contractual obligations, and writings or statements of prequalificationcommitment, inducling Modifications thereof, for which Company has an obligation as a result of an asset purchase, acquisition, mersior lace transaction, issued for, or which Company has executed or procured for or on behaft of (a) any one or more of the Indemnito(without regad to whether any such indemnitor signed this Agreement), their respective present or future direct or indirect parscompanieS, subsidiaries and affiliates and an of their respective successors and assigns;. (b) any present or future joint venture, aventure. consortium, Partnership, trust, association, limited liability company or other legal entity in which one or more ofthe persons cenfities identified in sub-paragraph (a) above have an interest; (c) any other person or entity at the request of any of the indemnitort; c(d) any combination of the above, whether executed or procured before, on, or after the execution of this Agreement For the purposof this definition, °Modifications' shaft include but not be limited to renewals, substitutions, riders, endorsements, reinstatementreplacements, increases or decreases in penal sum, continuations, and extensions.

Company Travelers Casualty and Surety Company of America, St. Paul Fire and Marine Insurance Company, any of their presentfuture direct or indirect parent companies, any of the respective pmsent or future direct or indirect affiliates or subsidiaries of sucicompanies and parent companies, and/orany of the aforementioned entities' successors or assigns.Contract My contract or obligation the performanc* cif which is guaranteed or covered either in whole or in pan under a Bond.Default Any of the foltowing shall constitute a Default: (a) a dedaration of Contract default by any Obligee; (b) actual breachabandonment army Contract; (c) a breach ofany provision of this Agreement; (d) fadure to make payment ofa property due and owirx.NI in commotion With -any Contract; (e) Company's good faith establishment en reserve; (i) improper diversion of Contract fundsany Indemnitoes assets to the deishnent of Contract obligations; (g) any Indemnitor's becoming the subject of any proceeding oiagreement of bankruptcy, receivership, insolvency, or creddorassignment, or actually becoming insolvent; (it) ahY Indemnitor's dYingbecoming legally incompadent, being imprisoned, being convicted of a felony, or disappearing and being unable to be located; (i) anyrepresentation furnished to Company by or on behalf of any lndemnitor proving to have been materially false or Mislealing when made;and/or (i) any change in control or existence of any Indemnitor. Change of control means the addition or departure of any person orentity having a 10% or greater ownership interest in any Indemnitor.Indemnftors Undersigned, all new indemnftom added to this Agreement by rider, their present and future direct and indirectsubsidaries, affiliates, and parent companies, and all of their successors and assigns, and any joint venture, co-venture, consortium,partnership, trust, associafion, limited fiability company or other legal entity in which one or More of them are invotved, whether inexistence noW or fanned or acquired hereafter, and any entity that obtains Bonds from Company at the request of any of theaforementioned parties, or any combination of the above.Loss Ali loss and expense of any kind or nature, including attorneys' and other professional fees, which Company incurs inconnection wilh any Bond or this Agreement, including but not limitad to all loss and expense incurred by reason of Company's: (a)making any invesfigation in connection with any Bond; (b) prosecuting or defending any action in connection with any Bond; (c)obtaining the releate ofany Bond; (d) recovering or attempting to recover Property in ponnection with any Bond or this Agreement; (e)enforcing by litigation or otherwise any of the provisions of this Agreement; and (f) all interest accruing thereon at the maximum legalrate.

Crialigee Any person or entity in whose favor a Bond has been issued, andthat person's or entity's successors and assigns.Property indemnitors' rights, title and interest, whether now held or hereafter acrkired in: (a) any Contract or contract, Inc:Wang butnot limited to subcontracts let (b) any and all sums due or which may hereafter become due under any Contract or contract, and alldamage claims and proceeds related thereto; (c) all rights arising under any surety bonds or insurance policies; and (d) any and allaccounts receivable, letters of credit, documents of title, bills of lading, warehouse receipts, machinery, plants, equipment, tools,materials, supplies; inventory, vehicks, hardware, software, machine telt, fixtures, office equipment, books, records, designs,licenses, patents, intellectual property, as-buits, construcfion drawings and documents, and ail electronically stored information.2. Payment of Premium: Indemnitors shall pay to Company all premiums for each Bond executed and all renewals and extensionsthereof.3. Indemnification and Hold Harmless: Indemnitors shall exonerate, indemnify and save Company harmless from and against allLoss. Anitemized, sworn statement by an employee of Company, or other evidence of payment shall be prima fade evidence of thepropriety, amount end existence of tndemnitorsliability. Amounts due to Company shall be payable upon demand.4. Claim Settlement Company shall have the right, in its sole discretion, to determine for itself and Indemnitors whether any claim,demand or suit breught against Company or any lndemnitor in connection with or relating to. any Bond shall be paid, compromised,settled, tried, defended or appealed, and its determination shall be final, birxfing and conclusive upon the indeninitors. Company shallbe entitled to immediate reimbursement for any and all Loss incurred under the belief it was necessary or expedent to make suchpaymentS.S-5007 (8-2004)

Page 1


5. Collateral Security: lndernnitors agree to deposit with Company, upon demand, an amount as determined by Company suffieto discharge any Loss or anticipated Loss. Indemnitors further agree to deposit with Company, upon demand, an amount equal tovalue of any assets or Contract funds improperly diverted by any Indemnitor. Sums deposited with Company pursuant to this paragnmay be used by Company to pay such claim or be held by Company as collateral security against any Loss or unpaid premium on;Bond. Company shall have no duty to invest, or provide interest on, the deposit Indemnitors agree that Company would suirreparable damage and would not have an adequate remedy at law if indernnitors fail to comply with the provisions ofthis paragraphO. Remedies: in the event of a Default, Indemnitors assign, convey and transfer to Company all of their righte, title and interestsProperty, and Company shall have a fight In its sole discretion to: (a) take possesston of the work under any Contract and to oomphsaid Contract, or cause, or consent to, the completion thereof; (b) immediately take possession of Indemnitors' Property, and utilize iProperty forthe completion of the work under the Contracts without payment for such use; (c) assert or prosecute any right or claimthe name of any lndemnftor and to settle any such right or claim as Company sees ft; (d) execute in the name of any Indemnitor, ainstruments deemed necessary or desirable by Company to: (I) provide Company with title to assets, (ii) take immediate possessionContract funds whether earned or unearned, (iii) collect such sums as may be due indemnitors and to endorse in the nameIndemnitors. and (Iv) collect on any negottable instruments; (e) require any Obligee to withhold payment of Contract funds unless atuntli Company consents to its release; (I) be subnogated to all the rights, remedies. properties, funds, securfties and receivables relatirto Indent/1km' Centracts or contracts and have the right to offset losses on any Contract or Bond against proceeds, funds, or properdue from another Contract, bond or contract Further, in the event of Default and upon demand Indemnitors shall direct thatparnents, monies, and properties that are due or may become due on any Contract or contract be made payable to, and/or sedirectfY to, Company, and shall isSue whatever writing or notices as deemed necessans by Company to effectuate the default an&termination of any Contract.7. Joint and Several Liability: The obligetions of Indemnitors hereunder are joint and several Company is authorized to settle wilany one or mom ofthe Indemnitois individually, and without reference to the others, and any such settlements shall not bar or prejudicactions by Company against oraffect the liability ofthe other Indemnitors hereunder.8. Decline Execution: Company has the right, for any reason, to decline to execute: (a) any Bond, including final Bonds wherCompany pnividect a bid Bond; (b) any Bond rider or consent authorizing any change to any Bond; andfor (e) any other censentsurety, without incurdng any liability or waiving any right.9. Trust fund: All payments due or received for or on account of any Contract, whether or hot in the possession of any Wen-mikeshall be held in trust as truSt hinds by Inderenftors for the benefit and payment of all obligations for which Company as beneficiary mgbe labia under apy Bond. Company may open a trust account or accounts with a bank for the deposit of the trust funds. Upon demandIndemnitors shall deposit therein all trust funds received. Withdrawals from such mist accounts shall require the express consent isCompany.10. Books. Record§ and Credit lndemnitors shall furnish upon demand, and Company shall have the right of free access to, atreasonable' times, the records of IndeMnitors including, but not limited to, books, papers, records, documents, contracts, neports,financial information, accotmts arid electronically stored information, for the purpoee of examieing and copying them. IndemnitoreeXpressly authorize Company to access. their wadi records, including, but not limited to, account numbers and/or account balancesfrom financial institutions. To the extent required by law, Indemnitors, upon request shall be Informed whether or not a consumerreport has been requested by Company, and ifso, ofthe name and address of the consumer reporting agency furnishing the report11. Attorney In Fact Indemnitors irrevocably constitute, appoint and designate Company as their attorney in fact with tte right, butnot the Obligation to exercise all rights cit' Inclemnitors assigned or granted to Company and to execute and deliver any otherassignments; doemenis, instruments or agreements deemed necessary by Company to exercise its rights under this Agreement in thename. ofany indemnitor.

1Z Security Interest: As secUrity for their obligations hereunder, lndemnitors hereby grant to Company a security interest In the.folloviing properties, 'assets andrights. of Ifidemnitors, wherever located, whether now owned or hereafter acquired or arising, and allproceed4 and prOductis thereof ell goods (including inventory, equipment and any accessions thereto), instruments (includingpromissory notes), documents, accounts, chattel paper, deposit accounts, fetter-of-credit rights, securities and all other investmentproperty, supporting obligations, any Contract or contract rights or rights to the payment ofmoney, insurance claims and proceeds, andall general Intangibles (the 'Collateral This Agreement shall for all purposes constitute a Security Agreement for the benefit ofCompany in accordance with the Uniform Commercial Code ("UCC") and all similar statutes, lndemnitors hereby Irrevocably authorizeCompany, without name to any lndernnitor, in order to perfect the security interest granted herein, to ele either: (a) this Agreement or acopy or other reproduction of this Agreement; or (b) any initial financing statements or amendments thereto that indicate the Collateralas all assets of Indemmlors or words of similar effect, es being of an equal or lesser scope or with greater detali and that contain anyother inforMation relating to any indemnitar required by Part 5 ofArticle gobthe UGC for the jurisdiction where such 'financingstatementor amendment is tiled. COmpanymay add schedules or other documents to this Agreement as necessary to perfect its rights. TheFaure to file or record this Agreement or any financing statement shall not release or excuse any of the obligations of Indemnilorsunder this Agreement13. Termination: This is a continuing Ameement, which remains in full force and effect until 'terminated. The sole method available toIndent/it-Orate terminate their participafion In this Agreernent is by giving written mete to Company of Indemnitors' intent to terminate.Such nofice shaN be sent to St. Paul Travelers Bond, Attention: Construction Services Bond, One Tower Square, 5PB, Hartford,Connecticut 06181 The termination shaft take effect thirty (30) days after Company receives such notice ("Termination Date"). Thenettice shall not reeve indemnitor -Rem its obligafions for any Bond executed prior to the Terreination Date or with respect to any Bondexecuted afier the Termination Date: (a) upon the award of a Contract to any Indemnitor on a bid or proposal in respect of whichCompany hai executed or procured a bid Bond prior to the Termination Date; or (b) which Company has become committed So executeor procure prior to the Termination Date; or (c) in connection With any maintenance, guarantee, claim, lien, litigation, or other matterinvolving or relating to arty Bond executed prior to the Termination Date or thereafter executed or procured as provided in sub-Paraternebs (a) or (b) above.

s-6007 (8-2004)Page 2


14. Jurisdiction: In any legal proceeding brought by or against Company that in any way relates to this Agreement, each lndem or,fix itself and its property, irrevocably and unconditionally submits to the exclusive jurisdiction, at the sole and exclusive Oa ts ofCompany. of the courts In any state in whieh any Indemnitor resides, has property, or in which any Contract is performed. Ind •rshereby irrevocably and unconditionally submit to the jwisdiclion of said courts and waive and agree not to assert any claim that they renot subject to the jurisdiction of any such court, that such proceeding is brought in an inconvenient forum or that the venue of s ehproceeding is improper.15. Other Sureties: If Company procures the execution of Bonds by other sureties, executes Bonds with co-surelies or ob sreinsurance, the provisions of this Agreement inure to the benefit of such other surety, co-surety or reinsurer, but only as toBonds.16. Nature of frights: If any provision or portion of this Agreement is or becomes unenforceable, this Agreement shall not be voidol,utshall be construed aed enforced with the same effect as though such provition Or portion were omitted. This Agreement is in ackliti toand not in Bau of any other agreement of indemnity, whether now existing or entered Into hereafter. Company shall be enfitled toVedic performance of the terms of this Agreement in addition to any other remedy at law or equity. lime Is of the essence inAgreement Whenever the context may require, any pronoun used in this Agreement shall include the corresponding masculi e,feminine and neuter forms. The rights and remedies afforded to Company by the terms Of this Agreement can only be modified awritten rider to this Agreement signed by an authorized representative of Company. If any Indemnitor fails to execute or improexecutes this Agreement or is otherwise found not to be bound under this Agreement, such failure or finding shall not affectobligations of the other Indemnitors. Thelarlure to sign or the improper execution of a Bond shall not affect Company's rights under tliis

piAgreement, and Indemnitors Waive any claim they may have, now or at any time in the future, arising out of the failure to signgproperly execute a Bond. Termination and/or limitation of any Indemnitors' obligations under this Agreement shall in no way affecttobligationsof any of the other Indemnitors whose obligations have not been terminated and/or limited. Indernnitors acknowledge nesAnreereent Can be amended via rider to add another person, entity or entities as Indernnitor(s) to this Agreement and Indemnitos wai&any and all nolice in coneection with the addition of additional lndemnitors and Maher acknowledge the rights and obligation provididherein slvall apply. to all Indermitors whenever made a party to the Agreement.17. Jury Waiver: Indemnitors hereby waive and covenant that they will not assert any right to trial by jury in respect to any legit,proceeding arising out cl this Agreeinent18; Resolution: indemnitors have a substantial, material and beneficial interest (a) in the obtaining of Bonds by any ofIndemnitois and (b) in the transaction(s) fOr which any Indemnitor has app5ed or will apply to Company for Bonds pursuant to th.Aoreement. Indemnitors have the full Omer and authority to execute, deliver and perform this Agreement apd to cany Out.obligations stated herein. Indemnitors further adknowledge and agree that (x) the execulion, delivery and performance of.Agreement by such Indemnitors; (y) the compliance with the terms and provisions hereof arid (z) the carrying outOf the obligati.contemplated herein, do not, and writ not, conflict wilh and will not result in a breach orviolation ofany terms, condition or provisionsthe charter documents or bylaws of such indemnitors, or any law, governmental rule or regulation, or any applicable order,injunction, judgment or decree of any court or governmental authority against Indemnitors, or any other agreement bindingIndemnitors, or constitute a Default hereunder.

119. Date ofAgreement The date of this Agreement shall be the earliest date any Indemnitor executes this AgreementWE HAVE READ THIS INDEMNIFY AGREEMENT CAREFULLY. THERE ARE NO SEPARATE AGREEMENTS 01UNDERSTANDINGS WHICH IN ANY WAY LESSEN OUR OBLIGATIONS AS ABOVE SET FORTH. IN TESTIMONY HEREOF, THINDEMIOTORS HAVE SET THEIR HANDS AND FIXED THEIR SEALS AS SET FORTH BELOW

IIMPORTANT: 1. PRINT OR TYPE NAMES UNDER EACH SIGNATURE.2. AU. PERSONAL INDEMNITORS MUST PROVIDE A RESIDENTIAL ADDRESS AND SOCIAL SECURfTY NUMBER ANDEACH SIGNATURE MUST BE NOTARIZED.

3. AU. ENTITY INDEMITORS MUST PROVIDE AN ADDRESS AND FEDERAL TAX IDENTFICATION NUMBER, IFAPPUCABI.E. TWO SIGNATURES ARE REQUIRED OF ALL ENTITIES AND EACH SIGNATURE MUST BE NOTARIZED, 1i

JoheP.Padeita330-58-0438indemidor IncfNidual (print or type) SS*

ACKNOWLEDPEMENTSTATE OF County off:":7:L.qon this .2.2_ day of 0 )4,o ?before Me persenaily appeared jak,,. iaor /4:c e,knownor proven to me to be the person describedin and who executed the foregoing Instrument, and hieshe acknowtedged to me that heishe executed thesane. iN WITNESS WI-EREOF, I have hereunto set my hand and abut my OFRCAt. the day and year flçst above written.

59-7Notay Pubre (signature)

OFFICiAL SEAL A71-7,00/4-44 6.4,PATRICIA M GALL Notary Public (print or type)NOTARY PUBLIC STATE OF WNWMY COMPASSION ESO5ii Notary Public residing at

Commission expires: 2.S8-5007 (3-2004) 7. Page 3


-------r, as...a.. .tv,i1 WIWI;,instructions: AR signatures must be notarized. If the entity is: 1) a Corporation, the Secretary and an Authorized Officer should sign on behalf ofitheComoration;.2) a Limited Liabirdy Company, the Manager or Member(s) shbuld sign on behalf of the LLC; 3) a Partnership, the Partner(s) shwc:tlrducsti4 onbehalf of the Partnership; or 4) a Trust, all Trustees should sign. Two signatures are requked for all entities except where otherwise byCompany.

iytEach ofthe undersigned hereby affirms to Company as follows: I am a secretary or a duly authorized officer, manager or official of the busineerss.Inderrinitor on whose behalf I am execufing this Agreement. In sudi capacity I am familiar with all of the documents which set forth and establish erights which govern the affairs, power and authonly of such business entily including, to the extent applicable, the certificate or articles of incorporatOri.bylaws, corporate resolutions, and partnership, operating or limited liability agreements of such business entity. Having reviewed all such agreeabledocuments and instmments and such other facts as deemed appropriate. I hereby affirm that such entity has the power and authority to enter into IdsAgreement and that I ern dirty authortzed to execute this Agreement on behalfof said entity.

Krahl Asseciates liic. dba Krell! Censtruetion!kW/rattier Coo:Ireton. Lintited LlabrIty Company, Partnership, orTrust (circleoriel

322

ACKNOWLEDGEWITSTATE OF01§Migni County of

On this ..22 day of -O. before me personally appeared -kre..-,et."P,known or proven to me to be ther0/1.1.1 of the tr, rporatioLimited Liability Company‘ParfnershO, or Trust (circle one); hereinafter referred to asand A r.--7k 141,

4,4 known or omen to me to be the S ofthe Entrly executing theinstrument, and acknowledged said instrument tp be the free andvoluntary act and deed ofsaid Entity, for the uses and purposes therein mentionedon oath stated that the seal affixed is the seal ofsaid Entity and that it was affixed:and that they executed said insfermerd by authority ofsaid Entity. 111varrEssWHEREOF, I have hereuntosetmy hand and affixed my OFFICIAL SEAL 51day and year first above writte'n.

(Sgruiture)acne& SEAL At- 64 e--e—PATRICIA M GALL Notary Public (print or type)NOTARY PUBLIC STATE OF il.UNOIS

Notary Pubfic residing at Ci././e.-4 4 LMY COMMISSION EXPIRES:05/03Ni

Commission expires:

indertnitor—Corporation, Limited Liability Company, Partnership, or (Federal Tex ID) Month/Day/YearTrust (circle one)

BY (Seal) SY (Seal)(Signature ofAuthorized Officer) (Signature ofAuthorized Officer)

(Print or T)pe Name and Tide) (Print OrType Name and Tale)(Address) (State of Intorporation Forrnation)

ACKNONLEDGEMENTSTATE 01 1$1114MIMiI County of tialtK4'-',":17.0On this dayof,before me personallyappeared,known or proven to me to be theei the (CratParatinn, United Liabifity cOmPany, Partnership, or Trust (circle one); hereinafter referred to as 'Entity')and,known or proven to me to be the ofthe Enbiy executing the aboveinstrument, and adenowledged said instrument to be the free and voluntary act and deed ofsaid Early, for the uses andpurposes therein mentioned andon oath staled thatthe seal Axed is the seal of said Entity and that It was affixed and that they executed said instniment by authority of said Entity. INWITNESS WHEREOF, I have hereunto set my hand end affixed my OFFICiAL SEAL the day and year first above written.

Notary Public (signature)S-5007 (8-2004)Page 4


Notary Public residing at

Commission expires:

Indemnitor Corporation, Limited Liability Company, Parmership, orTrust (circle one)

BY (Bea°(Signature ofAuthorized Offtcer)

(Print or Type Name andTitle)

(Address)ACKNOWLEDGEMENTSTATE OF :IfiLltaZgr":' County ofAliffiggEnnOn this dayof, before me personallyappeared.known or proven to me to be theOf the (CorporationAirnited Lief:41y Company, Partnership, or Trust (circle one); hereinafter refemed to as 'Enfit5and.known or proven te mab be the ofthe, Enlityexecuting the aborinstrument, and acknowledgedsaki instninent to be the freaand voluntary act and deed ofsaid Entity, for the uses and purposes therein mentioned aron oath stated that the seataffixed is the seal ofSad Entity and that ft wet raked and that they executedsad instrument byauthority ofsaid Entrly. IWITNESSMEREOF, I have heieunto set mY hand and afftxed.my OFFICIAL SEAL the day and year first above written.

Notary Public residing at

Commission expires:

(signature)

S-5007 (13-2004)Page 5

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PADERTA, attorneys, LLP, - Construction Law Today · PDF file18463, 8th Floor Data Suites 800-850 Digital ... Studio & Newsroom Renovation of Fox Television Stations, Inc. $11