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FIRST AMENDMENT TO ENVIRONMENTAL INDEMNIFICATION AGREEMENT
<br />(Microloan)
<br />THIS FIRST AMENDMENT TO ENVIRONMENTAL INDEMNIFICATION
<br />AGREEMENT (the "FIRST AMENDMENT TO ENVIRONMENTAL INDEMNIFICATION")
<br />is made effective as of December , by and between SCOTT MORRELL, LLC, a Minnesota
<br />limited liability company (`Borrower"), and the ECONOMIC DEVELOPMENT AUTHORITY
<br />OF THE CITY OF ELK RIVER, a public body corporate and politic of the State of Minnesota
<br />("Lender"), and amends and supplements the ENVIRONMENTAL INDEMNIFICATION
<br />AGREEMENT, dated August 6, 2015 (the "Original Environmental Indemnification"), between
<br />the Borrower 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 />Loan Agreement, dated August 6, 2015 (the "Original Loan Agreement"), between the Buyer and
<br />the Lender. The Borrower applied the proceeds of the Loan to purchase certain real property,
<br />legally described as Lot 1, Block 2, Natures Edge Business Center, according to the plat thereof
<br />on file and record in Sherburne County, State of Minnesota (the "Loan Property"). To secure the
<br />Loan, the Borrower delivered to the Lender (i) the Promissory Note, dated August 6, 2015 (the
<br />"Original Promissory Note"), from the Borrower to the Lender; (ii) the Security Agreement, dated
<br />August 6, 2015 (the "Original Loan Agreement"), between Morrell Oversize, Inc., a Minnesota
<br />Corporation ("Morrell Oversize") and the Lender; (iii) the Personal Guaranty, dated August 6,
<br />2015 (the "Original Personal Guaranties"), from Terry Morrell and Renee Morrell to the Lender;
<br />(iv) the Entity Guaranty, dated August 6, 2015 (the "Original Entity Guaranty"), from Morrell
<br />Oversize to the Lender; (v) the Original Environmental Indemnification; and (vi) the Mortgage
<br />and Assignment of Rents and Security Agreement and Fixture Financing Statement, dated August
<br />6, 2015 (the "Original Mortgage"), from the Borrower to the Lender. The Loan was due and
<br />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) the First Amendment to Loan Agreement, dated as of the date hereof (the "First
<br />Amendment to Loan Agreement"), between the Borrower and the Lender which amends and
<br />supplements the Original Loan Agreement; (ii) an Amended and Restated Promissory Note, dated
<br />as of the date hereof, (the "Amended and Restated Promissory Note"), from the Borrower to the
<br />Lender, which amends and restates the Original Promissory Note; (iii) the First Amendment to
<br />Security Agreement; (iv) an Amended and Restated Personal Guaranty, dated as of the date hereof
<br />(the "Amended and Restated Personal Guaranties"), from Renee Morrell and Terry Morrell, which
<br />amends and restates the terms of the Original Personal Guaranties; (v) an Amended and Restated
<br />Entity Guaranty, dated as of the date hereof (the "Amended and Restated Entity Guaranty"), from
<br />Morrell Oversize which amends and restates the terms of the Original Entity Guaranty; (vi) this
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