3.1. EDSR 03-27-2015 - Laserfiche WebLink

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1. Amount and Pu_pose,of Loan. Borrower agrees to take and Lender agrees to make a loan in the principal amount of S 111,155.13 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 Guaranty, 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 of materials, labor and soft costs of constructing the Improvements (as defined below). 2. The Project_ (a) Construction of Im rovement_s.. Borrower agrees to improve as a part of the Loan Property a project ("Project ") consisting generally of constructing a 6,210 square foot expansion of the upper level of the existing building located on the Loan Property., 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 cause Entity Guarantor to commence construction of the Improvements promptly after the date of this Agreement and will 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 September 30, 2014, shall be a default hereunder, except for delays caused by fire, accident, labor dispute, war, insurrection, riot, act of goverrunent, act of God, or any other cause reasonably beyond Borrower's control; provided Borrower uses all reasonable efforts to minimize the extent of any such delay. (h) Purchase of E_quiprrterrt 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 Agreement will provide Lender with a I" priority security interest in the Equipment. Borrower agrees to promptly and fully observe and comply with the reasonable requirements of Lender with respect to the Security Agreement, disbursements of funds and such other reasonable requirements as Lender may make. 3. Title Insurance. Sherburne County Abstract and Title Company ( "Title "), is designated as the title insurer with respect to this Agreement. Title will insure Lender against loss or damage on account of mechanic's liens upon or unmarketability of the title to the Loan Property, and will insure that the Mortgage constitutes a first priority lien upon Borrower's interest in the Loan Property as contemplated by this Agreement, subject only to the lien of the mortgages set forth as Item I on Exhibit B to the Mortgage (the "Mortgage "), Borrower agi -ces 1741240 -2-