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FIRST AMENDMENT TOSECURITY AGREEMENT <br />(Microloan) <br />This FIRST AMENDMENTTO SECURITY AGREEMENT (“Amendment”) is made to <br />be effective as of _________,2016,by PATRIOT CONVERTING, INC., a Minnesota <br />corporation(“Grantor”) and theECONOMIC DEVELOPMENT AUTHORITY OF THE CITY <br />OF ELK RIVER (the “Secured Party”). <br />RECITALS <br />A.On May 5, 2016, the Secured Party provided a loan to the Grantor pursuant to its <br />microloan program; <br />B.As security for the loan, the Grantor and the Secured Party entered intothat <br />certain Security Agreement effective as of May 5, 2016 (the “Security Agreement”)providing <br />the Secured Party a first lien security interest in certain equipment acquired with the proceeds of <br />the Loan; <br />C.The Grantor has requested that the Secured Party allow it to amend the collateral <br />securing the loan from the Secured Party to the Grantorto reflect that the Borrower will use the <br />loan proceeds to purchase different equipment than originally anticipated; and <br />D.The Grantor and Secured Party have agreed to amend the description of the <br />Collateral. <br />NOW THEREFORE, in consideration of the above recitals, and the promises set forth in <br />this Amendment, the parties agree as follows: <br />1.Exhibit Ato the Security Agreementis amended and restatedas set forth <br />in Exhibit Aattached hereto. <br />2.Paragraph 1 of the Security Agreement is amended and restated as <br />follows: <br />1.OBLIGATIONS. “Obligations”means collectively each debt, <br />liability and obligation of every type andnature which the Grantormay <br />now or at any time hereafter owe to SecuredParty (including without <br />limitation the obligations created under the loan agreement, and any <br />amendments thereto(the “Loan Agreement”),and the promissory note of <br />the Grantorto Secured Party of even date herewith and all amendments, <br />replacements, restatements, and substitutions therefor),whether now <br />existing or hereafter created or arising, and whether direct or indirect, due <br />or to become due, absolute or contingent, and the repayment or <br />performance of any of the foregoing if any such payment or performance <br />is at any time avoided, rescinded, set aside, or recovered from or repaid by <br />Secured Party, in whole or in part, in any bankruptcy, insolvency, or <br />1 <br />487824v2 EL185-39 <br /> <br />