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FIRST AMENDMENT TO SECURITY AGREEMENT
<br /> (Microloan)
<br /> This FIRST AMENDMENT TO SECURITY AGREEMENT ("First Amendment to
<br /> Security Agreement") is made to be effective as of December ___, 2020, by MORRELL
<br /> OVERSIZE, INC., a Minnesota corporation ("Morrell Oversize") and the ECONOMIC
<br /> DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER (the "Secured Party" or the
<br /> "EDA"), and amends and supplements the SECURITY AGREEMENT, dated August 6, 2015 (the
<br /> "Original Security Agreement"), between Morrell Oversize and the Secured Party.
<br /> RECITALS
<br /> A. On August 6, 2015, the Secured Party provided a loan to Scott Morrell, LLC, a
<br /> Minnesota limited liability company ("Borrower") in the amount of $200,000 (the "Loan"),
<br /> pursuant to a Loan Agreement, dated August 6, 2015 (the "Original Loan Agreement") between
<br /> the Secured Party and the Borrower. The Borrower applied the proceeds of the Loan to purchase
<br /> certain real property, legally described as Lot 1,Block 2,Natures Edge Business Center, according
<br /> to the plat thereof on file and record in Sherburne County, State of Minnesota (the "Loan
<br /> Property"). To secure the Loan, the Borrower delivered to the Secured Party (i) the Promissory
<br /> Note, dated August 6, 2015 (the "Original Promissory Note"), from the Borrower to the Secured
<br /> Party; (ii)the Original Security Agreement; (iii)the Personal Guaranty, dated August 6, 2015 (the
<br /> "Original Personal Guaranties"), from Terry Morrell and Renee Morrell to the Secured Party; (iv)
<br /> the Entity Guaranty,dated August 6,2015(the"Original Entity Guaranty"),from Morrell Oversize
<br /> to the Secured Party;(v)the Environmental Indemnification Agreement, dated August 6,2015(the
<br /> "Original Environmental Indemnification"),between the Borrower and the Secured Party; and(vi)
<br /> the Mortgage and Assignment of Rents and Security Agreement and Fixture Financing Statement,
<br /> dated August 6, 2015 (the "Original Mortgage"), from the Borrower to the Secured Party. The
<br /> Loan was due and payable in full with a balloon payment on August 1, 2020.
<br /> B. The Borrower requested an extension of the maturity date of the Loan. The Board
<br /> of Commissioners of the Secured Party approved an extension of the maturity date to August 1,
<br /> 2022. The Loan is currently outstanding in the amount of$154,170.63.
<br /> C. In consideration for amending the terms of the Loan, the Borrower is delivering to
<br /> the Secured Party(i) a First Amendment to Loan Agreement, dated as of the date hereof(the"First
<br /> Amendment to Loan Agreement"), between the Borrower and the Secured Party, which amends
<br /> and supplements the terms of the Original 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 Secured Party,which amends and restates the Original Promissory Note;
<br /> (iii) this First Amendment to Security Agreement; (iv) an Amended and Restated Personal
<br /> Guaranty, dated as of the date hereof (the "Amended and Restated Personal Guaranty"), from
<br /> Renee 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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