6.2 EDSR 10-17-2016 - Laserfiche WebLink

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SECURITY AGREEMENT (Forgivable Loan Program) This SECURITY AGREEMENT (“Agreement”) is made to be effective as of October____, 2016, by APEX EMBROIDERY & DESIGN, INC., a Minnesota corporation(“Debtor”) 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 asfollows: 1.OBLIGATIONS. “Obligations”means collectively each debt, liability and obligation of every type and nature which Debtor may now or at any time hereafter owe to Secured Party (including without limitation the obligations created under the loan agreement (the “Loan Agreement”) and the promissory note of the Debtor to Secured Party of even date herewith and all amendments, replacements, restatements, and substitutions therefore), whether now existing or hereafter created or arising, and whether direct or indirect, due or 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and the repayment or performance of any of the foregoing if any such payment or performance is at any time avoided, rescinded, set aside, or recovered from or repaid by Secured Party, in whole or in part, in any bankruptcy, insolvency, or similar proceeding instituted by or against Debtor or any guarantor of any Obligation, or otherwise, including but not limited to all principal, interest, fees, expenses and other charges. 2.COLLATERAL. “Collateral”means collectively all of the following property of Debtor, whether nowowned or hereafter acquired and wherever located: (a) equipment specified on the attached Exhibit A; (b) accessions, additions and improvements to, replacements of and substitutions for any of the foregoing;(c) all products and proceeds of any of the foregoing; and (d) books, records and data in any form relating to any of the foregoing. 3.SECURITY INTEREST. Debtor grants to Secured Party a 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.Debtor represents, warrants and agrees that: 4.1.Principal Office/Residence.Debtor’s chief executive office/residence is located at the address specified on the signature pages to this Agreement. Debtor will give Secured Party written notice prior to any change in the location of Debtor’s principal office/residence. 1 488002v1 EL185-45