5.0. 6.0. EDSR 10-11-1999 - Laserfiche WebLink

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® The use of funds will include: Equipment & Machinery $ 540,076 Leasehold Improvements $ 10,000 Inventory/Working Capital $ 95,000 Total $645,076 The EDA will have a second lien position on all equipment. Mr. Butalla stated that mold making equipment has a useful life of 10 — 20 years. Additionally, the finance committee noted that the value of such equipment often increases immediately after purchase and then depreciates slowly. None the less, several committee members commented on the risk associated with this collateral position. Finance Committee Recommendation The EDA Finance Committee reviewed ProTech's application on September 29, 1999 and noted that the company meets or exceeds the Micro Loan Fund's criteria. Micro Loan Criteria ProTech Engineering • Max. Loan Amount: $50,000 • Amount requested: $50,000 • Interest rate: 1 below prime • Rate requested: 1 below prime • • Equity to EDA loan ratio of 1:1 • Equity to EDA loan ratio of 2.2:1 • 1 job created per $20,000 loaned • 1 job created per $12,500 loaned • Min. average wage of$8 per hour • Average wage of$24.50 per hour The Finance Committee unanimously recommended that the EDA approve a Supplemental Financing Loan to ProTech Engineering contingent on the submittal of the following documents: • Contracts for purchase of equipment • Financing agreements with lenders • Lease agreement with Dave Decker • Shareholder buyout agreement ProTech Engineering will also be require d to execute the following paperwork which is standard procedure for all EDA Micro Loans: • Security Agreement • Promissory Note • Personal Guarantees • Job Performance Agreements (with new requirements of Business Subsidy Law) A UCC-1 financing agreement will also be filed to protect the interests of the EDA.