6.1 EDSR 06-17-2024 - Laserfiche WebLink

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1 DOCSOPEN\EL185\79\955723.v1-5/29/24 SECURITY AGREEMENT (Microloan) This SECURITY AGREEMENT (“Agreement”) is made to be effective as of July __, 2024, by HERITAGE MILLWORK, INC., a Minnesota corporation (“Grantor”) 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 as follows: 1. OBLIGATIONS. “Obligations” means collectively each debt, liability and obligation of every type and nature which the Grantor may now or at any time hereafter owe to Secured Party (including without limitation the obligations of the Grantor created under the loan agreement (the “Loan Agreement”) and the promissory note of the Grantor to Secured Party of even date herewith, in the amount of $200,000 and all amendments, replacements, restatements, and substitutions therefor), 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and the repayment or performance of any of the foregoing if any such payment or performance is at any time avoided, rescinded, set aside, or recovered from or repaid by Secured Party, in whole or in part, in any bankruptcy, insolvency, or similar proceeding instituted by or against the Grantor or any other 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 personal property and equipment of the Grantor and personal property and equipment in which the Grantor has rights, now owned or hereafter acquired, and located at or arising out of that certain real property located at ______________, Elk River, MN, including, but not limited to: Accounts; Chattel Paper; Inventory; Machinery; Equipment; Instruments, including Promissory Notes; Investment Property; Documents; Deposit Accounts; Letter-of-Credit Rights; General Intangibles; Supporting Obligations; and to the extent not included in the foregoing as original collateral, the proceeds and products of the foregoing. The terms Collateral shall also include (a) accessions, additions and improvements to, replacements of, and substitutions for any of the foregoing; (b) all products and proceeds of any of the foregoing; and (c) books, records and data in any form relating to any of the foregoing. 3. SECURITY INTEREST. The Grantor 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. Page 34 of 104