6.1 EDSR 04-18-2016 - Laserfiche WebLink

Home Browse Search

SECURITY AGREEMENT (Microloan) This SECURITY AGREEMENT (“Agreement”) is made to be effective as of _________, 2016, by DIE CONCEPTS, 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 andnature which the Grantormay now or at any time hereafter owe to Secured Partyby Die Concepts, Inc. (the “Entity Guarantor”)pursuant to the Entity Guaranty of even date herewith, whether now existing or hereafter created or arising, and whether direct or indirect, dueor 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and the repayment or performance of any of the foregoing if any such payment or performance is at any time avoided, rescinded, set aside, or recovered from or repaid by Secured Party, in whole or in part, in any bankruptcy, insolvency, or similar proceedinginstituted by or against the Grantor, 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, togetherwith each debt, liability and obligation of every type andnature which the F & M Properties, LLC (the “Borrower”)may now or at any time hereafter owe to Secured Partyincluding the promissory note of the Borrower to the Secured Party (the “Note”) of even date herewith and all amendments, replacements, restatements, and substitutions therefor and the obligationsof the loan agreementbetween the Borrower and the Secured Party(the “Loan Agreement”). 2.COLLATERAL. “Collateral”means collectively all ofthe following property of the Grantor, whether nowowned or hereafter acquired: (a) equipment specified on the attached Exhibit Awherever 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 foregoingwherever located;(d) all products and proceeds of any of the foregoingwherever located; and (e)books, records and data,wherever located,in any form relating to any of the foregoing. 3.SECURITY INTEREST. The Grantorgrants to Secured Party a [first priority]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 Grantorrepresents, warrants,and agrees that: 1 477333v4 EL185-40