5. HRSR 05-02-2011 - Laserfiche WebLink

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with closing on the acquisition of the Loan Property, including the land necessary for all required parking, and (d) determination by Lender that construction of the Improvements has commenced, Lender agrees to disburse the Loan to Borrower, provided no event of default exists under this Agreement or the Mortgage. 6. Business Subsidies Act. (a) In order to satisfy the provisions of Minnesota Statutes, Sections 116J.993 to 116J.995 (the "Business Subsidies Act''), Borrower acknowledges and agrees that the amount of the "Business Subsidy" granted to the Borrower under this Agreement is the amount of the Loan, and that the Business Subsidy is needed because the cost of the Improvements is prohibitive for the Borrower to undertake without the Business Subsidy. The public purpose of the Business Subsidy is to develop new jobs within the City and better utilize an existing property in the City. The Borrower agrees that it will meet the following goals (the "Goals"): it will create 4 new full time equivalent positions at the Loan Property at a wage of at least $15.00 -per hour within two years of the date which is the earlier of (i) the date the Borrower completes the Improvements in accordance with the Plans and Specifications, or (ii) the date the Borrower receives a certificate of occupancy for the Loan Property and the Improvements (the "Benefit Date"). (b) If the Goals are not met, the Borrower agrees to immediately repay all or a part of the Business Subsidy to the Lender on a pro rata basis, plus interest ("Interest") set at the greater of 2% or the implicit price deflator defined in Minnesota Statutes, Section 275.70, Subdivision 2, accruing from and after the Benefit Date, compounded semiannually. If the Goals are met in part, the Borrower will repay a portion of the Business Subsidy (plus Interest) determined by multiplying the Business Subsidy by a fraction, the numerator of which is the number of jobs in the Goals which were not created at the wage level set forth above and the denominator of which is 4 (i.e. number of jobs set forth in the Goals). (c) To the extent required by the Minnesota Department of Employment and. Economic Development, the Borrower .agrees to (i) report its progress on achieving the Goals to the Lender until the later of the date the Goals are met or two years from the Benefit Date, or, if the Goals are not met, until the date the Business Subsidy is repaid, (ii) include in the report the information required in Section 116J.994, Subdivision 7 of the Business Subsidies Act on forms developed by the Minnesota Department of Employment and Economic Development, and (iii) send completed reports to the Lender. The Lender shall have the right to inspect the Borrower's books and records to verify compliance with the requirements of this Section 6. The Borrower agrees to file these reports no later than March 1 of each year commencing March 1, 2012, and within 30 days after the deadline for meeting the Goals. The Lender agrees that if it does not receive the reports, it will mail the Borrower a warning within one week of the 385593v3 JSB EL185-12 -5-