7.2. HRSR 04-04-2016 - Laserfiche WebLink

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PROMISSORY NOTE (Blighted Properties Forgivable Commercial/Industrial Loan) , 2016 Amount: $75,000.00 Interest: 2.00% Maturity: April , 2021 FOR VALUE RECEIVED, the undersigned, F & M Properties, LLC, a Minnesota limited liability company ("Borrower"), promises to pay to the order of the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ELK RIVER, a public body corporate and politic of the State of Minnesota ("Lender"), at 13065 Orono Parkway, Elk River, Minnesota 55330, or such other place as the Lender or any other holder of this Note may designate in writing, on or before April , 2021 ("Maturity Date"), the principal sum of Seventy-Five Thousand and 00/100 Dollars ($75,000.00), together with interest on any and all amounts remaining unpaid thereon from time to time from the date hereof (computed on the basis of actual days elapsed in a year of 360 days) at a fixed interest rate of two percent (2.00%) per annum. This Note is made pursuant to a Loan Agreement, between Borrower and Lender, of even date herewith ("Loan Agreement") which provides for the payment of a portion of the cost of acquisition, renovation and equipping of an existing building on certain Loan Property (as defined in the Loan Agreement) in the City of Elk River, Minnesota(the "City"). All capitalized terms which are not otherwise defined herein shall have the meanings set forth in the Loan Agreement. Except as provided in the following paragraph, the principal of and accrued interest on this Note shall be due and payable on April , 2021 (the "Note Maturity Date"); provided, however that the Note is subject to repayment prior to the Note Maturity Date in accordance with Section 24 of the Loan Agreement. If as of the Note Maturity Date (a) no Event of Default exists under the Loan Agreement, (b) the Borrower has acquired the Loan Property and completed the renovation of the existing building on the Loan Property(as evidenced by a certificate of occupancy from the City), and (c) the Borrower has created 12 new FTE jobs in the City at the greater of$15.00 per hour or 150% of state or federal minimum wage, whichever is greater, exclusive of benefits required by law (the "Jobs") and maintained the Jobs in the City through the Note Maturity Date and for at least 24 months, then the principal of and interest on this Note shall be deemed paid in full on the Note Maturity Date. This Note may be prepaid by the Borrower at any time. This Note is secured by, among other things a Mortgage, certain Personal Guaranties made by Fred Trapp and Michael Tracey, and that certain Entity Guaranty made by Die Concepts, Inc., all of which are made to Lender of even date herewith(collectively, the "Security 1 477376v2 EL185-40