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FIRST AMENDMENT TO LOAN AGREEMENT <br />(Microloan) <br />FIRST AMENDMENT TO LOAN AGREEMENT ("Agreement") is made effective as of <br />2016, by and between PATRIOT CONVERTING, INC., a Minnesota corporation <br />(`Borrower"), and the ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK <br />RIVER, a public body corporate and politic of the State of Minnesota ("Lender"). <br />RECITALS <br />A. The Borrower and the Lender are parties to that certain Loan Agreement, dated as <br />of May 5, 2016 (the "Loan Agreement") whereby the Lender agreed to provide a loan to the <br />Borrower pursuant to its microloan program; <br />B. As security for the loan, the Lender required that the Borrower provide a first lien <br />security interest in certain equipment acquired with the proceeds of the loan; <br />C. The Borrower had requested that the Lender agree to amend the equipment <br />subject to the first lien security interest to reflect that the Borrower will use the loan proceeds to <br />purchase different equipment than originally anticipated; and <br />D. The Lender has agreed to the Borrower's request on the condition that the Loan <br />Agreement be amended as provided herein. <br />NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, it <br />is hereby agreed as follows: <br />1. Exhibit A to the Loan Agreement is amended and restated as set forth in Exhibit <br />A attached hereto. <br />2. Paragraph C of the Loan Agreement shall be amended and restated as follows: <br />C. A Security Agreement, as amended by the First Amendment to Security <br />Agreement and all supplements and amendments thereto, securing the Note <br />("Security Agreement"). The Security Agreement is of even date herewith, is <br />executed by the Borrower, in favor of the Lender, as secured party, and provides a <br />first lien security interest in the equipment acquired by the Borrower with the <br />proceeds of the Loan and a second lien security interest in all other equipment of <br />the Borrower located in Minnesota currently owned or hereafter acquired by the <br />Borrower (the "Equipment"); <br />3. Except as set forth herein, the Loan Agreement shall otherwise continue in full <br />force and effect, in accordance with its terms. <br />4. The Borrower shall pay all costs associated with the preparation of this <br />Amendment, the First Amendment to Security Agreement, amended UCC filing statements, and <br />filing amended UCC filing statements with the Minnesota Secretary of State. <br />487829v2 EL185-39 <br />