6.2 EDSR 10-17-2016 - Laserfiche WebLink

Home Browse Search

PROMISSORY NOTE (Forgivable Loan) October__, 2016 Amount:$200,000.00 Interest:3.00% Maturity: To Be Determined FOR VALUE RECEIVED, the undersigned,APEX EMBROIDERY DESIGN, INC., a Minnesota corporation (“Borrower”), promises to pay to the order of the ECONOMIC DEVELOPMENT AUTHORITY OF 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 thisNote may designate in writing, on or before the Maturity Date (as defined below), the principal sum of TwoHundred Thousand Hundred and 00/100 Dollars ($200,000.00), 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 threepercent (3%) per annum. This Note is made pursuant to a Loan Agreement, between Borrower and Lender, of even date herewith (“Loan Agreement”). All capitalized terms which are not otherwise defined herein shall have the meanings set forth in the Loan Agreement. This Note issecured by, among other things, the Mortgageby SBH Properties, LLC (the “Entity Guarantor”)in favor of Lender,the Security Agreement by the Borrower to the Lender, thePersonalGuarantymade by Brian Hill,and that certain Entity Guaranty made by the Entity Guarantor,all of which are made to Lender of even date herewith (collectively, the “Security Documents”). All of the terms and conditions contained in the Security Documents which are to be kept and performed by Borrower are hereby made a part of this Note to the same extent and with the same force and effect as if they were fully set forth herein; and Borrowercovenants and agrees to keep and perform them, or cause them to be kept and performed, strictly in accordance with their terms. This Note is made pursuant to Lender’s Forgivable Loan program. On the Determination Date (as defined in the Loan Agreement), Lender will make a determination as to whether Borrower has fully and timely complied with the requirements of the program. If Borrower has done so, Lender will forgive the entire principal balance of the Note, pursuant to the terms of the Loan Agreement as of the Determination Date. If Lender determines that Borrower has failed to timely and fully comply with the terms of the program, Borrower will be required to begin making monthly installment payments of principal and interest due hereunder, commencing on the Conversion Date (as defined in the Loan Agreement), which payments shall continue on the first (1st) day of each and every month thereafter until the 5thanniversary of the Conversion Date (the “Maturity Date”), when all outstanding principal and accrued but unpaid interest shall be payable in full.All unpaid interest which has accrued to the Conversion Date shall be capitalized into principal and the principal and interest payments under this Note shall be calculated based upon a 5year term anda20year amortization, as of the Conversion Date. 487518v2 EL185-45