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LOAN AGREEMENT <br /> THIS LOAN AGREEMENT ("Agreement") is made effective as of August <br /> 2011, by and between GRM OF MINNESOTA, LLC, a Minnesota limited liability <br /> company, ("Borrower") and the HOUSING AND REDEVELOPMENT AUTHORITY <br /> OF THE CITY OF ELK RIVER, MINNESOTA, a public body corporate and politic of <br /> the State of Minnesota("Lender"). <br /> RECITALS <br /> A. Borrower has applied to Lender for a construction and term mortgage loan <br /> pp <br /> on the Loan Property(as hereinafter defined) in the principal amount of$90,000.00. <br /> B. Lender is willing to make such mortgage loan to Borrower in the principal <br /> amount of$90,000.00,subject to all of the terms and 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 Note("Note") effective as of the date herewith made <br /> by Borrower and payable to the order of Lender, in the original principal amount <br /> of$90,000.00. <br /> (ii) A Mortgage and Assignment of Rents and Security Agreement and <br /> Fixture Financing Statement securing the Note("Mortgage"). The Mortgage is of <br /> even date herewith, is executed by Borrower and Robert McDonald, as <br /> mortgagor, in favor of Lender, as mortgagee, and covers property therein <br /> described situated in Sherburne County,Minnesota(the"Loan Property"). <br /> NOW, THEREFORE, in consideration of the mutual covenants hereinafter <br /> contained, it is hereby agreed as follows: <br /> 1. Amount and Purpose of Loan. Borrower agrees to take and Lender agrees <br /> to make a mortgage loan in the principal amount of $90,000.00 (the "Loan") to be <br /> advanced in a single disbursement as hereinafter provided, the Loan to be evidenced b <br /> g p by <br /> the Note and secured by the Mortgage and any other security document required under <br /> this Agreement. The sole source of the Loan is available tax increments generated within <br /> the Lender's Tax Increment Financing District No. 16 (A Redevelopment District) and <br /> authorized to be spent in accordance with the spending plan adopted by the Lender on <br /> June 7, 2010, as amended on August 1, 2011, and the City Council of the City of Elk <br /> River, Minnesota (the "City") on June 21, 2010, as amended on August 15, 2011, (the <br /> "Spending Plan"), pursuant to Minnesota Statutes, Section 469.176 Subd. 4m (the <br /> "Temporary Authority"). <br /> 385593v4 JSB EL185-12 <br />