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FORGIVABLE LOAN PROGRAM <br />LOAN AND BUSINESS SUBSIDY AGREEMENT <br />THIS LOAN AGREEMENT ( "Agreement ") is made effective as of April 25, 2014 (the <br />"Closing Date'), by and between SPORTE CH, INC., a Minnesota corporation. ( "Borrower "), <br />and the ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER, a <br />public body corporate and politic of the State of Minnesota ( "Lender "). <br />RECITALS <br />A. Borrower has applied to Lender for a term loan on the Loan Property (as <br />hereinafter defined) under Lender's "Forgivable Loan Program" in the principal amount of One <br />Hundred Eleven One Hundred Fifty -five Thousand and 13 /100s Dollars ($111,155.13) <br />(the "Loan "). <br />B. Lender is willing to make the Loan to Borrower, subject to all of the terms and <br />conditions of this Agreement. <br />C. Contemporaneously with the execution hereof, Borrower is executing and <br />delivering to Lender the following security documents; <br />(i) A Promissory Nate ( "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 />$111,155.13; <br />(ii) A Secui ty Agreement securing the Note ( "Security Agreement "). The <br />Security Agreement is of even date herewith, is executed by Borrower, as debtor, in favor <br />of Lender, as secured party, and provides a security interest in certain equipment to be <br />purchased using the proceeds of the Loan (the "Equipment "); <br />(iii) The personal guaranty of Chris Carlson, President of Borrower (the "personal <br />Guaranty "); <br />(iv) An entity guaranty (the "Entity Guaranty ") of Envision Company, LLC, a <br />Minnesota limited liability company (the "Entity Guarantor'); and <br />(v) A Mortgage and Assignment of Rents and Security Agreement and Fixture <br />Financing Statement securing the Entity Guaranty ( "Mortgage "). The Mortgage is of <br />even date herewith, is executed by Entity Guarantor, as mortgagor_ in favor of Lender, as <br />rnortgagee, and covers property therein described situated in Sherburne County, <br />Minnesota (the "Loan Property ") together with all improvements now located or <br />hereafter placed thereof, as well as a security interest in the Equipment; and <br />NOW, THEREFORE, in consideration of the mutual caveriants hereinafter contained, it <br />is hereby Agreed as follows: <br />17G412dv5 <br />