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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 />On August 6, 2015, the Secured Party 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 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,
<br />according to the plat thereof on file and record in Sherburne County, State of Minnesota (the
<br />“Loan Property”). To secure the Loan, the Borrower delivered to the Secured Party (i) the
<br />Promissory Note, dated August 6, 2015 (the “Original Promissory Note”), from the Borrower to
<br />the Secured Party; (ii) the Original Security Agreement; (iii) the Personal Guaranty, dated August
<br />6, 2015 (the “Original Personal Guaranties”), from Terry Morrell and Renee Morrell to the
<br />Secured Party; (iv) the Entity Guaranty, dated August 6, 2015 (the “Original Entity Guaranty”),
<br />from Morrell Oversize to the Secured Party; (v) the Environmental Indemnification Agreement,
<br />dated August 6, 2015 (the “Original Environmental Indemnification”), between the Borrower and
<br />the Secured Party; and (vi) the Mortgage and Assignment of Rents and Security Agreement and
<br />Fixture Financing Statement, dated August 6, 2015 (the “Original Mortgage”), from the Borrower
<br />to the Secured Party. The Loan was due and payable in full with a balloon payment on August 1,
<br />2020.
<br />The Borrower requested an extension of the maturity date of the Loan. The BoardB.
<br />of Commissioners of the Secured Party approved an extension of the maturity date to August 61,
<br />2022. 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 Secured Party (i) a First Amendment to Loan Agreement, dated as of the date hereof (the
<br />“First Amendment to Loan Agreement”), between the Borrower and the Secured Party, which
<br />amends and supplements the terms of the Original Loan Agreement; (ii) an Amended and
<br />Restated Promissory Note, dated as of the date hereof, (the “Amended and Restated Promissory
<br />Note”), from the Borrower to the Secured Party, which amends and restates the Original
<br />Promissory Note; (iii) this First Amendment to Security Agreement; (iv) an Amended and
<br />Restated Personal Guaranty, dated as of the date hereof (the “Amended and Restated Personal
<br />Guaranty”), from Renee Morrell and Terry Morrell, which amends and restates the terms of the
<br />Original Personal Guaranties; (v) an Amended and Restated Entity Guaranty, dated as of the date
<br />hereof (the “Amended and Restated Entity Guaranty”), from Morrell Oversize which amends and
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