6.1 EDSR 06-17-2024 - Laserfiche WebLink

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11 EL185\79\955722.v2 other documents executed in connection herewith; and the prosecution or defense of any action in any way related to this Agreement, the Note, the Security Agreement or the other documents executed in connection herewith. 24. Business Subsidies Act. (a) In order to satisfy the provisions of Minnesota Statutes, Sections 116J.993 to 116J.995 (the “Business Subsidies Act”), the Borrower acknowledges and agrees that the amount of the “Business Subsidy” granted to the Borrower under this Agreement is the amount of the Loan and that the Business Subsidy is needed because the project is not sufficiently feasible for the Borrower to undertake without the Business Subsidy. The public purpose of the Business Subsidy is to develop manufacturing facilities, increase the tax base in the City, help an existing business expand in the City, and stimulate the creation and retention of jobs. In consideration of the Business Subsidy provided to assist with the Borrower’s acquisition of equipment for the Loan Property, the Borrower represents that it will cause meet following goals (the “Goals”): the Borrower shall create 10 full-time equivalent jobs at the Loan Property with hourly wages of at least $21.00 per hour exclusive of benefits by the two (2) year anniversary of the date of closing on the Loan (the “Benefit Date”). (b) If none of the Goals are met, the Borrower agree to repay all of the Business Subsidy to the Lender, plus interest (“Interest”) set at the greater of 4% per annum or the implicit price deflator defined in Minnesota Statutes Section 275.70, subdivision 3, accruing from and after the date of closing on the Loan, compounded semiannually. If the Goals are met in part, the Borrower agrees to repay a portion of the Business Subsidy (plus Interest) determined by multiplying the Business Subsidy by a fraction, the numerator of which is the number of jobs in the Goals which were not created at the wage level set forth above and the denominator of which is 10 (i.e. number of jobs set forth in the Goals). (c) The Borrower agrees to: (i) report its progress on achieving the Goals to the Lender until the later of the date the Goals are met or two years from the Benefit Date, or, if the Goals are not met, until the date the Business Subsidy is repaid, (ii) include in the report the information required in Section 116J.994, subdivision 7 of the Business Subsidies Act on forms developed by the Minnesota Department of Employment and Economic Development, and (iii) send completed reports to the Lender. The Borrower agrees to file these reports no later than March 1 of each year commencing March 1, 2025, and within 30 days after the deadline for meeting the Goals. The Lender agrees that if it does not receive the reports, it will mail the Borrower a warning within one week of the required filing date. If within 14 days of the post marked date of the warning the reports are not made, the Borrower agrees to pay to the Lender a penalty of $100 for each subsequent day until the report is filed up to a maximum of $1,000. (d) The Borrower agrees that they will continue operations in the Lender for at least five years after the date of closing on the Loan. If the Borrower relocates Page 26 of 104