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LOAN AGREEMENT <br />(Blighted Properties Forgivable Commercial /Industrial Loan) <br />THIS LOAN AGREEMENT ( "Agreement ") is made effective as of May , 2017, by <br />and between TRUCK SHOP, INC., a Minnesota corporation (`Borrower "), and the HOUSING <br />AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ELK RIVER, a public <br />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 in the principal amount of $75,000.00 to finance a portion <br />of Borrower's acquisition of certain real property in the City of Elk River, Minnesota (the <br />"City "), removal of existing substandard buildings and the construction of a new light <br />maintenance facility with related office and storage space (the "Project ") to be located on at 623 <br />Quinn Avenue, 620 Quinn Avenue, 633 Proctor Avenue, and 623 Proctor Avenue in the City <br />(the "Loan Property "). <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 Kenneth J. Beaudry, the of Borrower <br />(the "Personal Guaranty "); <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 Beaudry Oil and Service, <br />Inc. (the "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 Guaranty, the Mortgage, the <br />498527v1 EL185 -51 <br />