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6.1 EDSR 05-16-2016
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6.1 EDSR 05-16-2016
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5/13/2016 10:51:49 AM
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City Government
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EDSR
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5/16/2016
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FORGIVABLE LOAN PROGRAM <br /> LOAN AND BUSINESS SUBSIDY AGREEMENT <br /> THIS LOAN AGREEMENT("Agreement")is made effective as of April 25,2014 (the <br /> "Closing Date"), by and between SPORTECH, INC., a Minnesota corporation ("Borrower"), <br /> and the ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER, a <br /> public body corporate and politic of the State of Minnesota("Lender"). <br /> RECITALS <br /> A. Borrower has applied to Lender for a term loan on the Loan Property (as <br /> hereinafter defined) under Lender's "Forgivable Loan Program" in the principal amount of One <br /> Hundred Eleven One Hundred Fifty-five Thousand and 13/100s Dollars ($111,155.13) <br /> (the"Loan"). <br /> B. Lender is willing to make the Loan to Borrower, subject to all of the terms and <br /> conditions of this Agreement. <br /> C. Contemporaneously with the execution hereof, Borrower is executing and <br /> delivering to Lender the following security documents: <br /> (i) A Promissory Note ("Note") effective as of the date herewith made by <br /> Borrower and payable to the order of Lender, in the original principal amount of <br /> $111,155.13; <br /> (ii) A Security Agreement securing the Note ("Security Agreement"). The <br /> Security Agreement is of even date herewith, is executed by Borrower, as debtor,in favor <br /> of Lender, as secured party, and provides a security interest in certain equipment to be <br /> purchased using the proceeds of the Loan (the"Equipment"); <br /> (iii)The personal guaranty of Chris Carlson, President of Borrower(the"Personal <br /> Guaranty"); <br /> (iv) An entity guaranty (the "Entity Guaranty") of Envision Company, LLC, a <br /> Minnesota limited liability company(the"Entity Guarantor");and <br /> (v) A Mortgage and Assignment of Rents and Security Agreement and Fixture <br /> Financing Statement securing the Entity Guaranty ("Mortgage"). The Mortgage is of <br /> even date herewith, is executed by Entity Guarantor,as mortgagor, in favor of Lender, as <br /> mortgagee, and covers property therein described situated in Sherburne County, <br /> Minnesota (the "Loan Property") together with all improvements now located or <br /> hereafter placed thereof, as well as a security interest in the Equipment; and <br /> NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, it <br /> is hereby agreed as follows: <br /> 174124v5 <br />
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