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FIRST AMENDMENT TO LOAN AGREEMENT
<br />(Microloan)
<br />THIS FIRST AMENDMENT TO LOAN AGREEMENT (the “First Amendment to Loan
<br />Agreement”) is made effective as of December __, 2020, by and between SCOTT MORRELL,
<br />LLC, a Minnesota limited liability company (“Borrower”), and the ECONOMIC
<br />DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER, a public body corporate and
<br />politic of the State of Minnesota (“Lender”), and amends and supplements the LOAN
<br />AGREEMENT, dated August 6, 2015 (the “Original Loan Agreement”), between the Borrower
<br />and the Lender.
<br />RECITALS
<br />On August 6, 2015, the Lender provided a loan to Scott Morrell, LLC, aA.
<br />Minnesota limited liability company (“Borrower”) in the amount of $200,000 (the “Loan”),
<br />pursuant to the Original Loan Agreement. The Borrower applied the proceeds of the Loan to
<br />purchase certain real property, legally described as Lot 1, Block 2, Natures Edge Business
<br />Center, according to the plat thereof on file and record in Sherburne County, State of Minnesota
<br />(the “Loan Property”). To secure the Loan, the Borrower delivered to the Lender (i) the
<br />Promissory Note, dated August 6, 2015 (the “Original Promissory Note”), from the Borrower to
<br />the Lender; (ii) the Security Agreement, dated August 6, 2015 (the “Original Loan Agreement”),
<br />between Morrell Oversize, Inc., a Minnesota Corporation (“Morrell Oversize”) and the Lender;
<br />(iii) the Personal Guaranty, dated August 6, 2015 (the “Original Personal Guaranties”), from
<br />Terry Morrell and Renee Morrell to the Lender; (iv) the Entity Guaranty, dated August 6, 2015
<br />(the “Original Entity Guaranty”), from Morrell Oversize to the Lender; (v) the Environmental
<br />Indemnification Agreement, dated August 6, 2015 (the “Original Environmental
<br />Indemnification”), between the Borrower and the Lender; and (vi) the Mortgage and Assignment
<br />of Rents and Security Agreement and Fixture Financing Statement, dated August 6, 2015 (the
<br />“Original Mortgage”), from the Borrower to the Lender. The Loan was due and payable in full
<br />with a balloon payment on August 1, 2020.
<br />The Borrower requested an extension of the maturity date of the Loan. The BoardB.
<br />of Commissioners of the Lender approved an extension of the maturity date to August 61, 2022.
<br />The Loan is currently outstanding in the amount of $153,415.81154,170.63.
<br />In consideration for amending the terms of the Loan, the Borrower is delivering toC.
<br />the Lender (i) this First Amendment to Loan Agreement; (ii) an Amended and Restated
<br />Promissory Note, dated as of the date hereof, (the “Amended and Restated Promissory Note”),
<br />from the Borrower to the Lender, which amends and restates the Original Promissory Note; (iii)
<br />the First Amendment to Security Agreement; (iv) an Amended and Restated Personal Guaranty,
<br />dated as of the date hereof (the “Amended and Restated Personal Guaranties”), from Renee
<br />Morrell and Terry Morrell, which amends and restates the terms of the Original Personal
<br />Guaranties; (v) an Amended and Restated Entity Guaranty, dated as of the date hereof (the
<br />“Amended and Restated Entity Guaranty”), from Morrell Oversize which amends and restates the
<br />terms of the Original Entity Guaranty; (vi) a First Amendment to Environmental Indemnification
<br />Agreement, dated as of the date hereof (the “First Amendment to Environmental
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