5. EDSR 07-15-2013 - Laserfiche WebLink

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LOAN AGREEMENT THIS LOAN AGREEMENT ("Agreement") is made effective as of August , 2013, by and between PREFERRED REAL ESTATE HOLDINGS, LLC, a Minnesota limited liability company ("Borrower"), and the ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER, a public body corporate and politic of the State of Minnesota("Lender"). RECITALS A. Borrower has applied to Lender for a construction and term mortgage loan on the Loan Property (as hereinafter defined) in the principal amount of$100,000.00. B. Lender is willing to make such mortgage loan to Borrower in the principal amount of $100,000.00 (the "Loan"), subject to all of the terms and conditions of this Agreement. C. Contemporaneously with the execution hereof, Borrower is executing and delivering to Lender the following security documents: (i) A Promissory Note ("Note") effective as of the date herewith made by Borrower and payable to the order of Lender, in the original principal amount of$100,000.00. (ii) A Mortgage and Assignment of Rents and Security Agreement and Fixture Financing Statement securing the Note ("Mortgage"). The Mortgage is of even date herewith, is executed by Borrower, as mortgagor, in favor of Lender, as mortgagee, and covers property therein described situated in Sherburne County, Minnesota (the "Loan Property") as well as a security interest in certain equipment to be purchased using the proceeds of the Loan (the"Equipment"). (iii) The personal guaranties of Dan Bosshart, of Borrower and Lloyd Peterson, of Borrower (collectively, the "Guaranties"); and NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, it is hereby agreed as follows: 1. Amount and Purpose of Loan. Borrower agrees to take and Lender agrees to make a mortgage loan in the principal amount of One Hundred Thousand and No/100s Dollars ($100,000.00) (the "Loan") to be advanced in a single disbursement as hereinafter provided, the Loan to be evidenced by the Note and secured by the Mortgage, the Guaranty and any other security document required under this Agreement. The Loan proceeds will be used only to pay for the costs of the purchase of the Equipment.