7.5. SR 07-15-2013 - Laserfiche WebLink

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EXHIBIT A PROMISSORY NOTE $1,153,878.00 Elk River, Minnesota 12013 FOR VALUE RECEIVED, the undersigned, PREFERRED POWDER COATING, LLC, a Minnesota limited liability company, whose address is 13251 George Weber Drive, Rogers, Minnesota 55374 ("Borrower"), promises to pay to the order of the CITY OF ELK RIVER, a Minnesota municipal corporation, or its successors and assigns ("CITY"), at its principal office at 13065 Orono Parkway, Elk River, Minnesota 55309, or at such other place as the holder of this Note ("Note") may require, the principal sum of One Million One Hundred Fifty-three Thousand Eight Hundred Seventy-eight and No/100 Dollars ($1,153,878.00), or such greater or lesser sum as may be actually owing, together with interest on the unpaid principal balance from the date of advance at the Note Rate (as hereinafter described), in effect from time to time, during the term of this Note, as required under the terms of the Tax Abatement and Business Subsidy Agreement between the Borrower, City and Sherburne County, dated 2013 ("Agreement"). Principal and interest payable under this Note shall be paid as follows: (a) The outstanding principal sum together with interest on the unpaid principal balance from the date of advance of the Note due in cash or certified funds twenty-four months following the Approval Date of the Agreement ("First Payment"). Notwithstanding the foregoing, the First Payment shall be adjusted and reduced to zero and 00/100 Dollars ($0.00) if Borrower substantially completes the Minimum Improvements in accordance with the terms of the Agreement; (b) The outstanding principle sum together with interest on the unpaid principle balance less the amount paid under subsection (a) from the date of the advance of the Note due in cash or certified funds twenty four months following issuance of a certificate of occupancy for the Minimum Improvements in accordance with the Agreement ("Second Payment"). Notwithstanding the foregoing, the Second Payment shall be adjusted and reduced to zero and 00/100 Dollars($0.00) if Borrower has satisfied the requirements contained in Article IV of the Agreement. If Borrower fails to create 8 full-time jobs and maintain existing full-time jobs with a wage of a minimum of $12.19 per hour, the Second Payment will be reduced by 12.5% for each full-time position at a wage of at least $12.19 per hour that was not created by Borrower over the current twenty four full- time positions. The principal balance and interest thereon shall be payable in coin or currency which at the time of payment is legal tender for the payment of public or private debts in the United States of America. This Promissory Note may be prepaid in full or in part at any time. The interest rate (termed "Note Rate") shall be set at the minimum rate authorized under Minn. Stat. §116J.994, subd. 6, which shall be applied to any and all amounts of principal advanced pursuant to the terms of this Note remaining unpaid from time to time. Per diem interest during the Loan Term shall be computed on the basis of a three hundred sixty (360) day year but shall be payable on the actual days elapsed during the term of this Note. 171419v1 16