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<br />611366v1EL185-30
<br />AMENDED AND RESTATED LOAN AGREEMENT
<br />(Microloan)
<br />
<br />THIS AMENDED AND RESTATED LOAN AGREEMENT (the “Agreement”) is made
<br />effective as of ___________, 2019, by and between HEMMER COMPANIES L.L.C., a
<br />Minnesota limited liability company (“Borrower”), and the ECONOMIC DEVELOPMENT
<br />AUTHORITY OF THE CITY OF ELK RIVER, a public body corporate and politic of the State
<br />of Minnesota (“Lender”), and amends and restated in all respects the Loan Agreement, dated
<br />February 17, 2015 (the “Original Loan Agreement”), by and between the Borrower and the
<br />Lender.
<br />
<br />RECITALS
<br />
<br />A. On February 17, 2015, the Lender provided to the Borrower a microloan under its
<br />Microloan Program, in the principal amount of $126,000.00.
<br />
<br />B. Lender was willing to make such mortgage loan to Borrower in the principal
<br />amount of $126,000.00 (the “Original Loan”), of which $89,338.20 is currently outstanding.
<br />
<br />C. The loan was secured by a Promissory Note, dated February 17, 2015 (the
<br />“Original Promissory Note”), from Borrower to the Lender; a Security Agreement, dated
<br />February 17, 2015 (the “Original Security Agreement”), from Distinctive Iron, LLC (the “Entity
<br />Guarantor”), in favor of Lender, as secured party, providing a security interest in certain
<br />equipment currently owned or hereafter acquired (the “Equipment”) by Distinctive Iron, LLC
<br />(the “Entity Guarantor”); a Mortgage and Assignment of Rents and Security Agreement and
<br />Fixture Financing Statement (the “Original Mortgage”), executed by Borrower, as mortgagor, in
<br />favor of Lender, as mortgagee, and covering property situated in Sherburne County, Minnesota
<br />legally described as Lot 5 and the east 80 feet of lot 4, Block 2, Elk River Industrial Park,
<br />according to the plat thereof on file and of record in Sherburne County, State of Minnesota as
<br />well as a security interest in certain other property described therein; and Guaranty Agreements,
<br />each dated February 17, 2015, from Cynthia Mae Hemmer & Steven Michael Hemmer (the
<br />“Original Personal Guaranties) and Distinctive Iron, LLC (the “Original Entity Guaranty,” and
<br />together with the Original Personal Guaranties, the “Original Guaranties”).
<br />
<br />D. To complete the Improvements described herein, the Borrower has requested an
<br />additional loan in the principal amount of $100,000 from the Lender, pursuant to its Microloan
<br />Program (the “New Loan,” and together with the Original Loan, the “Loan”).
<br />
<br />E. The Borrower and the Lender desire to amend and restate the Original Loan
<br />Agreement to provide the New Loan to the Borrower subject to the terms and conditions of this
<br />Agreement.
<br />
<br />F. As of the date hereof, the principal amount of the Loan is $189,338.20.
<br />
<br />G. Contemporaneously with the execution hereof, Borrower is delivering to Lender
<br />the following fully executed security documents:
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