6.3. EDSR 12-21-2015 - Laserfiche WebLink

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Agreement, the Note, the Security Agreement, and any other document to be executed by Borrower pursuant to this Agreement. (h) Source of Funds Certificate. Deliver to Lender a source of funds certificate ("Source of Funds Certificate"), in a form acceptable to Lender, verified on oath by an officer of Borrower showing the itemized breakdown of the source and amounts of the "Project Funds", including, without limitation, Borrower's equity contribution, and any Other Financing. Not less than fifty percent (5001a) of the Project funds must come from a source other than the Loan proceeds. (h) Escrow Agreement. Deliver to Lender the Escrow Agreement, as defined in Section 5 below. Lender may waive any of the above requirements in its sole discretion. 5. Disbursement of Loan. Within two (2) business days after receipt by Lender of all of the items required pursuant to Section 4 above, in the form and condition required therein, Lender agrees to disburse the Loan proceeds into the escrow account set up pursuant to the Escrow Agreement by and among Lender, Borrower and Sherburne County Abstract ("Escrow Agent"). The Escrow Agreement shall be in form and content reasonably acceptable to the parties and shall provide, among other things, that: (a) Escrow Agent shall not be obligated to release all or any portion of the Loan proceeds until it has a copy of the Bill of Lading for the Equipment and such other proof of delivery thereof as Escrow Agent may require in its reasonable business judgment; (b) that Escrow Agent shall pay all such funds directly to Hegman Machinery (the party selling the Equipment to Borrower); and (c) that if Borrower does not comply with section 15(f) of this Agreement, that Escrow Agent may return the Loan proceeds to Lender in reliance upon a written request from Lender. 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. -3-