7.1. SR 09-03-2013 - Laserfiche WebLink

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D. Contemporaneously with the execution hereof, Borrower is entering into a loan facility (the `Bank Loan") with the Bank of Elk River (the `Bank"); two (2) loan facilities (respectively, the "City Loan" and the "County Loan") with the City of Elk River (the "City"); and a separate Microloan Loan facility (the "Microloan") with Lender. 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 loan in the principal amount of $200,000.00 to be advanced in a single disbursement as hereinafter provided, the Loan to be evidenced by the Note and secured by the Security Agreement, the Personal Guaranties, the Entity Guaranty, the Mortgage and any other security document required under this Agreement. The Loan proceeds will be used only to pay for the costs materials, labor and soft Nlpurp ructing the Improvements (as defined below). 2. The Project. (a) Construction` of Improve eats. For s of this Agreemen t, the term "Loan Property" means the real estate described in the Mortgage together with all improvements now located or hereafter placed thereon. Borrower agrees to improve as a part of the Loan Property a project ("Project") consisting generally of constructing a new industrial building, substantially in accordance with plans and specifications which have been provided to Lender. The improvements to and equipping of the Loan Property contemplated by the plans and specifications, as the same may be changed with the approval of Lender, are herein referred to as the "Improvements." Entity Guarantor has not commenced construction of the Improvements. Borrower shall 14 cause Entity Guarantor to commence construction of the Improvements promptly after the date of this Agreement and to carry on continuously, diligently and with reasonable dispatch the construction of the Improvements to full and final completion. Failure to complete the Improvements on or before December 31, 2013, shall be a default hereunder. (b) Purchase of Equipment and Security Interest. Borrower has provided Lender a preliminary list of the Equipment that it intends to purchase for use in its business from the Project, attached hereto as Exhibit A. Borrower will complete the purchase of the Equipment and take delivery of the same on or before the date that the Certificate of Occupancy for the Loan Property is issued. If Borrower wishes to purchase other or different Equipment, Borrower shall provide Lender an updated Exhibit A for its review and approval, which approval will not be unreasonably withheld, so long as the replacement equipment is substantially similar to the replaced Equipment in function and value. Borrower will provide Lender a final list of Equipment purchased within fifteen (15) days after the Certificate of Occupancy for the Loan Property is issued. The Security -2-