Financial Commitment Letter from Richard J. Kurtz to Lapolla Industries, Inc. (November 14, 2014)
Richard J. Kurtz commits to provide funding to Lapolla Industries, Inc. to pay off its outstanding loan with Bank of America and to make up to $1.5 million available for the company's working capital needs. The funding may come from Kurtz personally or through another lender, with any personal loan bearing 8% interest and maturing on June 10, 2017. This commitment becomes void if Lapolla secures independent third-party funding before the commitment is needed. If Kurtz or his lender provides the funds, any later-raised funds by Lapolla may be used to repay him at his discretion.
Exhibit 10.2
Richard J. Kurtz
Nine Duck Pond Road
Alpine, New Jersey 07632
November 14, 2014
Lapolla Industries, Inc.
15402 Vantage Parkway East
Suite 322
Houston, Texas 77032
Re: Bank of America Financial Substitution Commitment
Gentlemen:
This is in response to your request that I provide an assurance as to funding to: (1) pay off the amount outstanding under the revolver loan (“Revolver Loan”) pursuant to that certain Loan and Security Agreement, as amended, between Bank of America, N.A. (“Bank”) and Lapolla Industries, Inc. (the “Company”), which matures on February 15, 2015 (“Loan Agreement”); and (2) make available working capital of up to $1.5 Million for the Company’s ongoing operations from the date hereof and on or after the maturity date of the Loan Agreement (“Financial Substitution Commitment”).
I hereby confirm that, upon the request of Management, I so commit to provide funding for the Financial Substitution Commitment.
This commitment will either be satisfied from personal funds, or, I will cause the funds to be otherwise provided by an appropriate lending or other institution. If such funding is required to be made personally by me, such funding will take the form of a loan bearing 8% interest per annum, which matures June 10, 2017. If such funding is otherwise provided by an appropriate lending or other institution, such funding will take the form as determined by such lending or other institution and approved by the Board of Directors of the Company and mature June 10, 2017.
I have been further advised and understand that the aforesaid commitment and obligation shall be superseded and become null and void in the event and to the extent that the Company is independently funded by a third party source, either privately or institutionally: (1) at or before the time the Financial Substitution Commitment is due and the Revolver Loan is repaid and Loan Agreement obligation is fully satisfied; and (2) working capital of $1.5 Million for the Company’s ongoing operations is obtained from the date hereof and on or after the maturity date of the Loan Agreement.
In the event that I, or the lending institution utilized by me, loan funds for payment of the above Financial Substitution Commitment, and the Company thereafter raises funds through any other available independent means, at my option and sole discretion, such funds shall be first utilized to repay loans made to satisfy the Financial Substitution Commitment.
Very truly yours,
/s/ Richard J. Kurtz
Richard J. Kurtz
