6.3. EDSR 12-21-2015 - Laserfiche WebLink

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FORGIVABLE LOAN PROGRAM LOAN AGREEMENT THIS LOAN AGREEMENT ("Agreement") is made effective as of June 17, 2013 (the "Closing Date"), by and between Alliance Machine, Inc., a Minnesota corporation ("Borrower"), and Economic Development Authority of the City of Elk River, a public body corporate and politic of the State of Minnesota ("Lender"). RECITALS A. Borrower has applied to Lender for a term equipment loan on the Loan Property (as hereinafter defined) under Lender's "Forgivable Loan Program" in the principal amount of Two Hundred Thousand and No/100s Dollars ($200,000.00)(the "Loan"). B. Lender is willing to make the Loan to Borrower, subject to all of the terms and conditions of this Agreement. C. Contemporaneously with the execution hereof, Borrower is executing and delivering to Lender the following security documents: (i) A Promissory Note ("Note") effective as of the date herewith made by Borrower and payable to the order of Lender, in the original principal amount of $200,000.00; (ii) A Security Agreement securing the Note ("Security Agreement"). The Security Agreement is of even date herewith, is executed by Borrower, as debtor, in favor of Lender, as secured party, and provides a security interest in certain equipment to be purchased using the proceeds of the Loan (the "Equipment"); (iii) A personal guaranty of Bryan Provo (the "Guaranty"), Vice President and shareholder of Borrower; and (iv) A Subsidy Agreement. NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, it is hereby agreed as follows: 1. Amount and Pumose of Loan. Borrower agrees to take and Lender agrees to make a Security Agreement 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 Guaranty, the Subsidy Agreement and any other security document required under this Agreement. The Loan proceeds will be used only to pay for the costs of purchasing the Equipment (the "Project").