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<br />LOAN AGREEMENT <br />[A1] <br />(Microloan) <br /> <br />THIS LOAN AGREEMENT (“Agreement”) is made effective as of _______________, <br />2015, by and between STONESTHROW PROPERTIES, LLC, a Minnesota limited liability <br />company (“Borrower”), and the ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY <br />OF ELK RIVER, a public body corporate and politic of the State of Minnesota (“Lender”). <br /> <br />RECITALS <br /> <br /> <br />A.Borrower has applied to Lender for a Microloan Program loan on the Loan <br />Property (as hereinafter defined) in the principal amount of $200,000.00. <br /> <br /> <br />B.Lender is willing to make such mortgage loan to Borrower in the principal <br />amount of $200,000.00 (the “Loan”), subject to all of the terms and conditions of this <br />Agreement. <br /> <br /> <br />C.Contemporaneously with the execution hereof, Borrower is delivering to Lender <br />the following security documents: <br /> <br /> <br />(i)A Promissory Note (“Note”) effective as of the date herewith made by <br />Borrower and payable to the order of Lender, in the original principal amount of <br />$200,000.00. <br /> <br /> <br />(ii)A Security Agreement securing the Note (“Security Agreement”). The <br />Security Agreement is of even date herewith, is executed by Coin-Tainer Co, LLC, as the <br />entity guarantor, in favor of Lender, as secured party, and provides a security interest in <br />certain existing equipment currently owned by Coin-Tainer Co., LLC (the “Equipment”); <br /> <br /> <br />(iii)The personal guaranties of David M. Walters, Chief Executive <br />Manager/President of Borrower and Barbara J. Walters, Vice President/Secretary of <br />Borrower (collectively, the “Personal Guaranties”); <br /> <br /> <br />(iv)An entity guaranty (the “Entity Guaranty”) of Coin-Tainer Co., LLC (the <br />“Entity Guarantor”); <br /> <br /> <br />(v)An Assignment of Life Insurance Policy as Collateral assigning a life <br />insurance policy on of David M. Walters (“Life Insurance Security Agreement”). The <br />Life Insurance Security Agreement is of even date herewith, is executed by the Borrower <br />in favor of Lender, as secured party and provides a security interest in a certain life <br />insurance policy held by the Borrower on the life of David M. Walters (the “Life <br />[A2] <br />Insurance Policy”); and <br /> <br /> <br />(vi)A Mortgage and Assignment of Rents and Security Agreement and Fixture <br />Financing Statement (“Mortgage”). The Mortgage is of even date herewith, is executed <br />by Borrower, as mortgagor, in favor of Lender, as mortgagee, and covers property situated <br />1 <br />454752v2 EL185-29 <br />