7.0. EDSR 04-11-2005 - Laserfiche WebLink

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SUBSIDY AGREEMENT • The Economic Development Authority of the City of Elk River (hereinafter referred to as the "EDA") and Display Solutions, Inc. (hereinafter referred to as the "Company") agree that the assistance under this Agreement is a "Business Subsidy" as defined by the City of Elk River Micro Loan Policy and is subject to the provisions thereof, including without limitation,job creation goals, reporting requirements, five year commitment by the Company, and repayment of the subsidy if the Company is in default under this agreement, including this Section hereof. The assistance under this Agreement does not qualify as a "Business Subsidy" as defined by Minnesota Statutes, Sections 116J.993 through 116J.995 (the "Subsidy Law"), however this Agreement is reflective of the Subsidy Law requirements. Accordingly, it is agreed: (a) The amount if the subsidy is $ 50,000 The type of subsidy is City Micro Loan, sub-prime financing The subsidy will be used by the Company to purchase equipment necessary to operation (b) The public purposes of the subsidy includes job creation and • enhancement of city's industrial tax base (c) The goals of the subsidy include the above public purposes, the completion of the project and the retention of the project for at least five years after the "Benefit Date" of the project, as defined in the Subsidy Law, which is hereby determined to be the date upon which this loan is closed. emims)(d) If the Company fails to meet its obligations under this Agreement, the Company shall repay all amounts of the subsidy theretofore paid to the Company by the EDA, together with interest accruing at the annual rate per annum equal to the implicit price deflator of Minnesota statutes, Section 275.70, subdivision 2, with all such interest accruing on each subsidy payment made to the Company hereunder from the date of said payments. If the Company meets some but not all of the job goals hereinafter defined, the Company may request in writing, and the EDA may agree, in its absolute discretion, that the subsidy be repaid by the Company on a pro rata basis. The Company represents that the subsidy is needed in order to induce the Company to complete the project in the City of Elk River. The Company covenants that it will continue its operations at the project for at least five years after the benefit date. • 1 S:\Eda\MicroLoan\LOANS\Display Solutions\SUBSIDY AGREEMENT.doc