|
1
<br />EL185\40\721009.v1
<br />FIRST AMENDMENT TO LOAN AGREEMENT
<br />(Microloan)
<br />
<br />THIS FIRST AMENDMENT TO LOAN AGREEMENT (the “First Amendment to Loan
<br />Agreement”) is made effective as of May __, 2021, by and between F & M PROPERTIES, LLC,
<br />a Minnesota limited liability company (“Borrower”), and the ECONOMIC DEVELOPMENT
<br />AUTHORITY OF THE CITY OF ELK RIVER, a public body corporate and politic of the State
<br />of Minnesota (“Lender”), and amends and supplements the LOAN AGREEMENT, dated May 23,
<br />2016 (the “Original Loan Agreement”), between the Borrower and the Lender.
<br />
<br />RECITALS
<br />
<br />A. On May 23, 2016, the Lender made a loan to F & M Properties, LLC, a Minnesota
<br />limited liability company (“Borrower”) in the amount of $185,200 (the “Loan”), pursuant to the
<br />Original Loan Agreement. The Borrower applied the proceeds of the Loan relocate to and purchase
<br />and renovate an existing building on certain real property, legally described in Exhibit A (the
<br />“Loan Property”). To secure the Loan, the Borrower delivered to the Lender (i) the Promissory
<br />Note, dated May 23, 2016 (the “Original Promissory Note”), from the Borrower to the Lender; (ii)
<br />the Security Agreement, dated May 23, 2016 (the “Original Security Agreement”), between Die
<br />Concepts, Inc., a Minnesota Corporation (“Die Concepts”) and the Lender; (iii) the Personal
<br />Guaranties, dated May 23, 2016 (the “Original Personal Guaranties”), from Fred Trapp and
<br />Michael Tracey to the Lender; (iv) the Entity Guaranty, dated May 23, 2016 (the “Original Entity
<br />Guaranty”), from Die Concepts to the Lender; (v) the Environmental Indemnification Agreement,
<br />dated May 23, 2016, (the “Original Environmental Indemnification”), between the Borrower and
<br />the Lender; and (vi) the Mortgage and Assignment of Rents and Security Agreement and Fixture
<br />Financing Statement, dated May 23, 2016 (the “Original Mortgage”), from the Borrower to the
<br />Lender. The Loan is due and payable in full with a balloon payment on June 1, 2021.
<br />
<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 May 1, 2023. The
<br />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 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, dated as of the date hereof (the “First Amendment to Security
<br />Agreement”); from Die Concepts to the Lender; (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 Lender, which amend and restate 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 Die Concepts to the Lender which amends and
<br />restates the terms of the Original Entity Guaranty; (vi) a First Amendment to Environmental
<br />Indemnification Agreement, dated as of the date hereof (the “First Amendment to Environmental
<br />Indemnification”), between the Borrower and the Lender which amends and supplements the terms
<br />of the Original Environmental Indemnification; and (vii) a First Amendment to Mortgage and
|