7.1. SR 09-03-2013 - Laserfiche WebLink

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5. Disbursement of Loan. Upon receipt by Lender of all of the items required pursuant to Section 4 above in the form and condition required therein and confirmation from Title that Title is prepared to issue the mortgagee's title insurance policy as required herein, Lender agrees to disburse the Loan proceeds into the escrow account set up pursuant to the Escrow and Disbursement Agreement by and among Lender, Borrower and Title. 6. Forgivable Loan Requirements and Covenants. (a) Loan Forgiveness Program. This Loan is made pursuant to the Lender's Forgivable Loan Program. From and after the Closing Date through and until the Conversion Date (as defined below), Borrower shall not be required to make any payments of principal or interest, though interest shall accrue at the interest rate set forth in the Note. (b) Reporting. On each anniversary of the Closing Date, Borrower shall provide an annual report in a form acceptable to Lender, certified by an officer of Borrower, reporting: (i) the number of jobs created by Borrower; (ii) the hourly wage paid to each position; (iii) average weekly hours worked by each employee; and (iv) the location of the business, and each annual reports shall have the pay stubs for each employee attached. (c) Guidelines. The Loan will be forgiven as set forth below if Borrower meets all of the following requirements: (i) Location/Existence. Borrower's business in now, and since the execution of this Agreement has at all times been, located in Elk River and has been open for business as a going concern. (ii) Job Creation/Maintenance. Preferred Powder Coating, LLC has created not less than eight (8) new jobs from and after the earlier of (a) the date the Certificate of Occupancy for the Loan Property is issued; and (ii) January 1, 2014 (the "Commencement Date"). For the created jobs: (A) the salary/wage of each position must be $15.00/hour or greater; (B) at least five (5) of the created jobs must be filled by a person who meets State of Minnesota's most current low to moderate income guidelines; (C) the employee filling such job must have worked for at least 1,750 hours in any twelve (12) month period; provided that the 12-month period shall commence no later than the two (2) year anniversary of the Commencement Date. If the employee initially hired to any created position leaves or is terminated prior to completing the required time of employment, Lender may allow a replacement employee hired to fill the position to complete the requirements of this section, in the sole discretion of Lender as to: (X) whether to allow such "tacking"; and (Y) the terms and conditions of such completion. -6-