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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 />A. On August 6, 2015, the Lender provided a loan to Scott Morrell, LLC, a Minnesota
<br />limited liability company (`Borrower") in the amount of $200,000 (the "Loan"), pursuant to the
<br />Original Loan Agreement. The Borrower applied the proceeds of the Loan to purchase certain real
<br />property, legally described as Lot 1, Block 2, Natures Edge Business Center, according to the plat
<br />thereof on file and record in Sherburne County, State of Minnesota (the "Loan Property"). To
<br />secure the Loan, the Borrower delivered to the Lender (i) the Promissory Note, dated August 6,
<br />2015 (the "Original Promissory Note"), from the Borrower to the Lender; (ii) the Security
<br />Agreement, dated August 6, 2015 (the "Original Loan Agreement"), between Morrell Oversize,
<br />Inc., a Minnesota Corporation ("Morrell Oversize") and the Lender; (iii) the Personal Guaranty,
<br />dated August 6, 2015 (the "Original Personal Guaranties"), from Terry Morrell and Renee Morrell
<br />to the Lender; (iv) the Entity Guaranty, dated August 6, 2015 (the "Original Entity Guaranty"),
<br />from Morrell Oversize to the Lender; (v) the Environmental Indemnification Agreement, dated
<br />August 6, 2015 (the "Original Environmental Indemnification"), between the Borrower and the
<br />Lender; and (vi) the Mortgage and Assignment of Rents and Security Agreement and Fixture
<br />Financing Statement, dated August 6, 2015 (the "Original Mortgage"), from the Borrower to the
<br />Lender. The 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 Lender approved an extension of the maturity date to August 1, 2022.
<br />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 Lender (i) this First Amendment to Loan Agreement; (ii) an Amended and Restated Promissory
<br />Note, dated as of the date hereof, (the "Amended and Restated Promissory Note"), from the
<br />Borrower to the Lender, which amends and restates the Original Promissory Note; (iii) the First
<br />Amendment to Security Agreement; (iv) an Amended and Restated Personal Guaranty, dated as
<br />of the date hereof (the "Amended and Restated Personal Guaranties"), from Renee Morrell and
<br />Terry Morrell, which amends and restates the terms of the Original Personal Guaranties; (v) an
<br />Amended and Restated Entity Guaranty, dated as of the date hereof (the "Amended and Restated
<br />Entity Guaranty"), from Morrell Oversize which amends and restates the terms of the Original
<br />Entity Guaranty; (vi) a First Amendment to Environmental Indemnification Agreement, dated as
<br />of the date hereof (the "First Amendment to Environmental Indemnification"), between the
<br />Borrower and the Lender which amends and supplements the terms of the Original Environmental
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<br />EL 185\33\69303 Lv2
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