6.3. EDSR 09-04-2018 - Laserfiche WebLink

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proceeds will be used only towards the cost of the construction and equipping of a new manufacturing facility on the Loan Property. 2. The Project. For the purposes of this Agreement, the term "Loan Property" means the real estate described in the Mortgage together with all improvements now located or hereafter placed thereon. Borrower agrees to improve as a part of the Loan Property a project ("Project") consisting generally of constructing and equipping a new manufacturing facility for its apparel decorating business, substantially in accordance with plans and specifications which have been provided to Lender. The improvements to and equipping of the Loan Property contemplated by the plans and specifications, as the same may be changed with the approval of Lender, are herein referred to as the "Improvements." Construction has not commenced of the Improvements. Borrower will commence construction of the Improvements promptly after the date of this Agreement and to carry on continuously, diligently and with reasonable dispatch the construction of the Improvements to full and final completion. Failure to complete the Improvements on or before July 1, 2017 shall be a default hereunder. 3. Title Insurance. Sherburne County Abstract & Title Co. ("Title") is designated as the title insurer with respect to this Agreement. Title will insure Lender against loss or damage on account of mechanic's liens upon or unmarketability of the title to the Loan Property, and will ensure that the Mortgage constitutes a second priority lien upon Borrower's interest in the Loan Property as contemplated by this Agreement, subject only to a mortgage in favor of the Bank of Elk River in the amount of $1,120,000 (the "First Lien Mortgage"). Borrower agrees to promptly and fully observe and comply with the reasonable requirements of Title and Lender with respect to the title, the Mortgage, disbursements of funds and such other reasonable requirements as Title may make. 4. Documents to be Delivered. Borrower covenants and agrees to immediately cause the compliance with the following conditions: (a) Note. Deliver to Lender the Note. (b) Personal Guaranty. Deliver to Lender the Personal Guaranty. (c) Entity Guaranty. Deliver to Lender the Entity Guaranty. (d) Mortgage. Deliver to Lender the Mortgage, together with evidence that the Mortgage has been or will be duly filed for record. (e) Bank Loan Documents. Deliver to Lender copies of all of the documents relating to the First Lien Mortgage (the "Bank Loan Documents"). (f) Environmental Indemnification Agreement. Deliver to Lender the Environmental Indemnification Agreement. (g) Organizational Documents and Resolutions. Deliver to Lender copies of the (i) articles of organization for Borrower certified by the Minnesota Secretary of State,