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<br />1 <br />491713v1 EL185-46 <br />LOAN AGREEMENT <br />(Jobs Incentive Microloan) <br /> <br />THIS LOAN AGREEMENT (“Agreement”) is made effective as of July 17, 2018, by and <br />between ORLUCK INDUSTRIES, INC., a Minnesota corporation (the “Borrower”) and the <br />ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER, a public body <br />corporate and politic of the State of Minnesota (“Lender”). <br /> <br />RECITALS <br /> <br />A. Borrower has applied to Lender for a Jobs Incentive Microloan Program loan in <br />the principal amount of $200,000.00 to assist with financing operating costs and investments <br />associated with an expansion of an existing aerospace manufacturing business located at 13422 <br />Business Center Drive, Elk River, Minnesota (the “Loan Property”) in anticipation of new long <br />term contracts received by the Borrower. <br /> <br />B. Lender is willing to make such loan to Borrower in the principal amount of <br />$200,000.00 (the “Loan”), subject to all of the terms and conditions of this Agreement. <br /> <br />C. Contemporaneously with the execution hereof, Borrower is delivering to Lender <br />the following security documents: <br /> <br />(i) A Promissory Note (“Note”) effective as of the date herewith made by <br />Borrower and payable by the Borrower to the order of Lender, in the original principal <br />amount of $200,000.00. <br /> <br />(ii) A Security Agreement securing the Note (“Security Agreement”). The <br />Security Agreement is of even date herewith, is executed by the Borrower, in favor of the <br />Lender, as secured party, and provides a first or second lien security interest in equipment <br />owned by the Borrower (the “Equipment”); and <br /> <br />(iii) The personal guaranty of Mark Orluck, President of the Borrower (the <br />“Personal Guaranty”). <br /> <br />NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, it is <br />hereby agreed as follows: <br /> <br />1. Amount and Purpose of Loan. Borrower agrees to take and Lender agrees to <br />make the Loan, to be advanced in a single disbursement as hereinafter provided, and evidenced <br />by the Note and secured by the Security Agreement, the Personal Guaranty and any other <br />security document required under this Agreement. The Loan proceeds will be used to help <br />financing operating costs and investments associated with an expansion of an existing aerospace <br />manufacturing business in anticipation of new long term contracts received by the Borrower. <br />Subject to the prepayment provisions set forth in the Note, the Borrower agrees to repay the <br />Loan by making all payments of principal, interest and any premium, penalty or charge that are <br />required to be made under the Note at the times and in the amounts provided therein