7.2. EDSR 10-17-2022 - Laserfiche WebLink

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LOAN AGREEMENT (Jobs Incentive Microloan) THIS LOAN AGREEMENT ("Agreement") is made effective as of July 17, 2018, by and between ORLUCK INDUSTRIES, INC., a Minnesota corporation (the `Borrower") and the ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER, a public body corporate and politic of the State of Minnesota ("Lender"). RECITALS A. Borrower has applied to Lender for a Jobs Incentive Microloan Program loan in the principal amount of $200,000.00 to assist with financing operating costs and investments associated with an expansion of an existing aerospace manufacturing business located at 13422 Business Center Drive, Elk River, Minnesota (the "Loan Property") in anticipation of new long term contracts received by the Borrower. B. Lender is willing to make such loan to Borrower in the principal amount of $200,000.00 (the "Loan"), subject to all of the terms and conditions of this Agreement. C. Contemporaneously with the execution hereof, Borrower is delivering to Lender the following security documents: (i) A Promissory Note ("Note") effective as of the date herewith made by Borrower and payable by the Borrower to the order of Lender, in the original principal amount of $200,000.00. (ii) A Security Agreement securing the Note ("Security Agreement"). The Security Agreement is of even date herewith, is executed by the Borrower, in favor of the Lender, as secured party, and provides a first or second lien security interest in equipment owned by the Borrower (the "Equipment"); and (iii) The personal guaranty of Mark Orluck, President of the Borrower (the "Personal Guaranty"). NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, it is hereby agreed as follows: 1. Amount and Purpose of Loan. Borrower agrees to take and Lender agrees to make the Loan, to be advanced in a single disbursement as hereinafter provided, and evidenced by the Note and secured by the Security Agreement, the Personal Guaranty and any other security document required under this Agreement. The Loan proceeds will be used to help financing operating costs and investments associated with an expansion of an existing aerospace manufacturing business in anticipation of new long term contracts received by the Borrower. Subject to the prepayment provisions set forth in the Note, the Borrower agrees to repay the Loan by making all payments of principal, interest and any premium, penalty or charge that are required to be made under the Note at the times and in the amounts provided therein 491713v1 EL18546