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LOAN AGREEMENT <br /> (Blighted Properties Forgivable Commercial/Industrial Loan) <br /> THIS LOAN AGREEMENT ("Agreement") is made effective as of April , 2016, by <br /> and between F & M PROPERTIES, LLC, a Minnesota limited liability company ("Borrower"), <br /> and the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF <br /> ELK RIVER, a public body corporate and politic of the State of Minnesota("Lender"). <br /> RECITALS <br /> A. Borrower has applied to Lender for a Blighted Properties Forgivable <br /> Commercial/Industrial Program loan for Borrower's acquisition of certain real property and <br /> renovation of an existing building located on certain real property at 18489 Twin Lakes Road, <br /> Elk River, Minnesota 55330 (the"Loan Property") in the principal amount of$75,000.00. <br /> B. Lender is willing to make such loan to Borrower in the principal amount of <br /> $75,000.00 (the"Loan"), subject to all of the terms and conditions of this Agreement. <br /> C. Contemporaneously with the execution hereof, Borrower is delivering to Lender <br /> the following security documents: <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 /> $75,000.00. <br /> (ii) The personal guaranty of Fred Trapp, President of Borrower and the <br /> personal guaranty of Michael Tracey, Vice President of Borrower (collectively, the <br /> "Personal Guaranties"); <br /> (iii) 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 the Loan <br /> Property as well as a security interest in certain other property described therein; and <br /> (iv) An entity guaranty (the "Entity Guaranty") of Die Concepts, Inc. (the <br /> "Entity Guarantor"). <br /> NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, it is <br /> hereby agreed as follows: <br /> 1. Amount and Purpose of Loan. Borrower agrees to take and Lender agrees to <br /> make a loan in the principal amount of Seventy-Five Thousand and No/100s Dollars <br /> ($75,000.00) (the "Loan") to be advanced in a single disbursement as hereinafter provided, the <br /> Loan to be evidenced by the Note and secured by the Personal Guaranties, the Mortgage, the <br /> Entity Guaranty, and any other security document required under this Agreement. The Loan <br /> 1 <br /> 477330v1 EL185-40 <br />