7.1. SR 01-19-2016 - Laserfiche WebLink

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SECURITY AGREEMENT (Microloan) This SECURITY AGREEMENT (“Agreement”) is made to be effective as of _________, 2016, by PATRIOT CONVERTING, INC., a Minnesota corporation (“Grantor”) and the ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER (the “Secured Party”). AGREEMENT In consideration of the above recitals, and the promises set forth in this Agreement, the parties agree as follows: 1. OBLIGATIONS. “Obligations” means collectively each debt, liability and obligation of every type and nature which Stilwell Holdings, LLC, a Minnesota limited liability company (“Borrower”) may now or at any time hereafter owe to Secured Party (including without limitation the obligations created under the loan agreement (the “Loan Agreement”) and the promissory note of the Borrower to Secured Party of even date herewith and all amendments, replacements, restatements, and substitutions therefor), together with the obligations of Patriot Converting, Inc. (the “Entity Guarantor”) to Secured Party pursuant to the Entity Guaranty of even date herewith, whether now existing or hereafter created or arising, and whether direct or indirect, due or to become due, absolute or contingent, and the repayment or performance of any of the foregoing if any such payment or performance is at any time avoided, rescinded, set aside, or recovered from or repaid by Secured Party, in whole or in part, in any bankruptcy, insolvency, or similar proceeding instituted by or against the Borrower, the Entity Guarantor or any other guarantor of any Obligation, or otherwise, including but not limited to all principal, interest, fees, expenses and other charges. 2. COLLATERAL. “Collateral” means collectively all of the following property of the Grantor, whether now owned or hereafter acquired: (a) equipment specified on the attached Exhibit A wherever located; (b) subject to liens of record, all equipment of the Grantor located in Minnesota; (c) accessions, additions and improvements to, replacements of, and substitutions for any of the foregoing wherever located; (d) all products and proceeds of any of the foregoing wherever located; and (e) books, records and data, wherever located, in any form relating to any of the foregoing. 3. SECURITY INTEREST. The Grantor grants to Secured Party a security interest (“Security Interest”) in the Collateral to secure the payment and performance of the Obligations. The Security Interest continues in effect until this Agreement is terminated in writing by Secured Party. 4. REPRESENTATIONS, WARRANTIES AND COVENANTS. The Grantor represents, warrants and agrees that: 1 473884v2 EL185-39