Laserfiche WebLink
LOAN AGREEMENT <br />(Forgivable LoanProgram) <br />THIS LOAN AGREEMENT (“Agreement”) is made effective as of October__, 2016 <br />(the “Closing Date”), by and between APEX EMBROIDERY DESIGN, INC., a Minnesota <br />corporation (“Borrower”), and the ECONOMIC DEVELOPMENT AUTHORITY OF THE <br />CITY OF ELK RIVER, a public body corporate and politic of the State of Minnesota <br />(“Lender”). <br />RECITALS <br />A.Borrower has applied to Lender for a Forgivable LoanProgram loan for <br />Borrower’s acquisition of land and construction and equipping of a new manufacturing facility <br />th <br />located on certain real property at 9775 158 <br />CircleNW, Elk River, Minnesota 55330 (the “Loan <br />Property”) in the principal amount of $200,000.00. <br />B.Lender is willing to make such loan to Borrower in the principal amount of <br />$200,000.00(the “Loan”), subject to all of the terms and conditions of this Agreement. <br />C.Contemporaneously with the execution hereof, Borrower is delivering to Lender <br />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 />$200,000.00. <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 <br />favor of Lender, as secured party, and provides a second position security interest in <br />certain equipment to be purchased using the proceeds of the Loan (the “Equipment”); <br />(iii)The personal guaranty of Brian Hill,Presidentof Borrower (the “Personal <br />Guaranty”); <br />(iv)Mortgage and Assignment of Rents and Security Agreement and Fixture <br />Financing Statementsecuring the Entity Guaranty(“Mortgage”). The Mortgage is of <br />even date herewith, is executed by Borrower, as mortgagor, in favor of Lender, as <br />mortgagee, and coversthe Loan Property as well as a security interest in certain other <br />property described therein; and <br />(v)An entity guaranty (the “Entity Guaranty”) of SBH Properties, LLC(the <br />“Entity Guarantor”). <br />NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, it is <br />hereby agreed as follows: <br />487521v2 EL185-45 <br /> <br />