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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 Parry" 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 Parry.
<br />RECITALS
<br />A. On August 6, 2015, the Secured Parry 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 Parry 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 Parry (i) the Promissory
<br />Note, dated August 6, 2015 (the "Original Promissory Note"), from the Borrower to the Secured
<br />Parry; (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 Parry; (iv)
<br />the Entity Guaranty, dated August 6, 2015 (the "Original Entity Guaranty"), from Morrell Oversize
<br />to the Secured Parry; (v) the Environmental Indemnification Agreement, dated August 6, 2015 (the
<br />"Original Environmental Indemnification"), between the Borrower and the Secured Parry; 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 Parry. 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 Parry 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 Parry (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 Parry, 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 Parry, 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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