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PROMISSORY NOTE <br /> (Microloan) <br /> December , 2016 <br /> Amount: $100,000.00 <br /> Interest: 3.00% <br /> Maturity: [January 1,2022 or 27] <br /> FOR VALUE RECEIVED, the undersigned, HERITAGE MILLWORK, INC., a <br /> Minnesota corporation ("Heritage") and Tradition Finishing, Inc., a Minnesota corporation <br /> ("Tradition" and collectively with Heritage, the "Borrowers"),jointly and severally, promise to <br /> pay to the order of the ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK <br /> RIVER, a public body corporate and politic of the State of Minnesota ("Lender"), at 13065 <br /> Orono Parkway, Elk River, Minnesota 55330, or such other place as the Lender or any other <br /> holder of this Note may designate in writing, on or before [January 1, 2022 or 27] ("Maturity <br /> Date"), the principal sum of One Hundred Thousand and 00/100 Dollars ($100,000.00), together <br /> with interest on any and all amounts remaining unpaid thereon from time to time from the date <br /> hereof(computed on the basis of actual days elapsed in a year of 360 days) at a fixed interest rate <br /> of three percent(3%)per annum. <br /> This Note is made pursuant to a Loan Agreement, between Borrowers and Lender, of <br /> even date herewith ("Loan Agreement") which provides for the payment of a portion the cost of <br /> purchasing equipment in connection with the acquisition, renovation and equipping of an <br /> existing facility for use in the Borrowers' manufacturing business. The principal amount of this <br /> Note shall be amortized over a [five(5) or ten (10)] year period. <br /> Based on the foregoing, the Borrowers shall be obligated to make monthly installments <br /> (each a "Monthly Installment") in the amount of , which Monthly Installments <br /> shall commence on [January 1, 2017,] and continue on the first (1st) day of each and every <br /> month thereafter until the Maturity Date, when all outstanding principal and accrued but unpaid <br /> interest shall be payable in full. <br /> This Note is secured by, among other things a Security Agreement ("Security <br /> Agreement") given by Heritage to Lender and the Personal Guaranty made by Patrick Menth, to <br /> Lender both of which are made to Lender of even date herewith (collectively, the "Security <br /> Documents"). All of the terms and conditions contained in the Security Documents which are to <br /> be kept and performed by the Borrowers are hereby made a part of this Note to the same extent <br /> and with the same force and effect as if they were fully set forth herein; and Borrowers covenant <br /> and agree to keep and perform them, or cause them to be kept and performed, strictly in <br /> accordance with their terms. <br /> If the Lender, or any other holder of this Note, has not received the full amount of any <br /> Monthly Installment provided for in this Note, by the end of ten (10) calendar days after the date <br /> it is due, Borrowers shall pay a late charge fee to the Lender, or any other holder of this Note. <br /> The amount of the late charge fee shall be five percent (5.00%) of the overdue Monthly <br /> 1 <br /> 491716v1 EL185-46 <br />