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<br />EL185\40\720812.v1
<br />FIRST AMENDMENT TO SECURITY AGREEMENT
<br />(Microloan)
<br />
<br />
<br /> This FIRST AMENDMENT TO SECURITY AGREEMENT (“First Amendment to
<br />Security Agreement”) is made to be effective as of May __, 2021, by DIE CONCEPTS, INC., a
<br />Minnesota corporation (the “Entity Guarantor”) and the ECONOMIC DEVELOPMENT
<br />AUTHORITY OF THE CITY OF ELK RIVER (the “Secured Party” or the “EDA”), and amends
<br />and supplements the SECURITY AGREEMENT, dated May 23, 2016 (the “Original Security
<br />Agreement”) between Entity Guarantor and the Secured Party.
<br />
<br />RECITALS
<br />
<br />A. On May 23, 2016, the Secured Party provided a loan to F & M Properties, LLC, a
<br />Minnesota limited liability company (the “Borrower”) in the amount of $185,200 (the “Loan”),
<br />pursuant to a Loan Agreement, dated May 23, 2016 (the “Original Loan Agreement”) between the
<br />Secured Party and the Borrower. The Borrower applied the proceeds of the Loan to purchase
<br />certain real property, legally described in Exhibit A (the “Loan Property”). To secure the Loan,
<br />the Borrower delivered to the Secured Party (i) the Promissory Note, dated May 23, 2016 (the
<br />“Original Promissory Note”), from the Borrower to the Secured Party; (ii) the Original Security
<br />Agreement; (iii) the Personal Guaranties, dated May 23, 2016 (the “Original Personal
<br />Guaranties”), from Fred Trapp and Michael Tracey to the Secured Party; (iv) the Entity Guaranty,
<br />dated May 23, 2016 (the “Original Entity Guaranty”), from Entity Guarantor to the Secured Party;
<br />(v) the Environmental Indemnification Agreement, dated May 23, 2016 (the “Original
<br />Environmental Indemnification”), between the Borrower and the Secured Party; and (vi) the
<br />Mortgage and Assignment of Rents and Security Agreement and Fixture Financing Statement,
<br />dated May 23, 2016 (the “Original Mortgage”), from the Borrower to the Secured Party. The Loan
<br />is due and payable in full with a balloon payment at maturity.
<br />
<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 May 1, 2023.
<br />The Loan is currently outstanding in the principal amount of $146,253.78.
<br />
<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”), from
<br />the Borrower to the Secured Party, which amends and restates the Original Promissory Note; (iii)
<br />this First Amendment to Security Agreement; (iv) Amended and Restated Personal Guaranties,
<br />dated as of the date hereof (the “Amended and Restated Personal Guaranties”), from Fred Trapp
<br />and Michael Tracey to the Secured Party, which amend and restate the terms of the Original
<br />Personal Guaranties; (v) an Amended and Restated Entity Guaranty, dated as of the date hereof
<br />(the “Amended and Restated Entity Guaranty”), from Entity Guarantor to the Security Party, which
<br />amends and restates the terms of the Original Entity Guaranty; (vi) a First Amendment to
<br />Environmental Indemnification Agreement, dated as of the date hereof (the “First Amendment to
<br />Environmental Indemnification”), between the Borrower and the Secured Party which amends and
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