Agenda - Council - 12/12/2023 - Laserfiche WebLink

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PART 6. FINANCIAL COVENANTS, LIMITATION ON CERTAIN ACTIVITIES OF BORROWER, AND JOB CREATION 6.1 Indebtedness,liens,and disposition of assets. Other than as specifically provided herein, Borrower shall not, without the prior written consent of Lender, do any of the following: except for trade debt incurred in the normal course of business and indebtedness to Lender contemplated by this Agreement; incur indebtedness for borrowed money; sell, transfer, assign,pledge, lease, grant a security interest in, or otherwise encumber any of Borrower's assets, except to Lender; or sell with recourse any of any Borrower's accounts, except to Lender. 6.2 Ownership stability of Borrower. Borrower herein covenants that unless prior written approval has been provided by Lender, the shareholders of Borrower at the time of this Agreement shall not sell or otherwise relinquish ownership control of Borrower. 6.3 Change of business form or identity. Borrower will not, without the prior written approval of Lender, change its business form, business name or trade name, change location, or acquire or merge or consolidate with any other entity. 6.4 Business taxes and liability insurance. Borrower covenants to pay all taxes associated with its business, including but not limited to income taxes, sales taxes, employee taxes, and all other business-related taxes, whether federal, state, county, municipal, or imposed by any other governmental unit. Borrower further covenants to maintain liability insurance in coverages and with such endorsements as are satisfactory to Lender, and to pay all workman's compensation and unemployment premiums or charges, when due, to maintain all insurance policies and employment-related coverages in full force and effect throughout the term of this Agreement. 6.5 Job Creation and Reporting Requirements. The Borrower covenants that in connection with the construction of the Project it will create at least fifteen (15) full time jobs at an hourly wage of$19.50 (the "Job Goals") per hour, excluding benefits, within two years of the completion of the Project. The Borrower shall provide the Lender with information about the Project as requested by the Lender so that the Lender can satisfy the reporting requirements of Minnesota Statutes, Section 116J.994, Subd. 8. PART 7. DEFAULT 7.1 Default defined. A default under this Agreement shall consist of any one or more of the following events: a. Failure to pay when due any amount required of Borrower or any Guarantor under this Agreement or under any promissory note, security agreement, mortgage or other loan instrument or document executed in connection with this Agreement. Page 4 of 9 129662823v2