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1 <br />491716v3 EL185-46 <br />PROMISSORY NOTE <br />(Microloan) <br />July __, 2024 <br />Amount: $200,000.00 <br />Interest: 3.00% <br />Maturity: August 1, 2029 <br />FOR VALUE RECEIVED, the undersigned, HERITAGE MILLWORK, INC., a <br />Minnesota corporation (the “Borrower”), promises to pay to the order of the ECONOMIC <br />DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER, a public body corporate and <br />politic of the State of Minnesota (“Lender”), at 13065 Orono Parkway, Elk River, Minnesota <br />55330, or such other place as the Lender or any other holder of this Note may designate in <br />writing, on or before August 1, 2029 (“Maturity Date”), the principal sum of Two Hundred <br />Thousand and 00/100 Dollars ($200,000.00), together with interest on any and all amounts <br />remaining unpaid thereon from time to time from the date hereof (computed on the basis of <br />actual days elapsed in a year of 360 days) at a fixed interest rate of three percent (3%) per <br />annum. <br />This Note is made pursuant to a Loan Agreement, between Borrower and Lender, of even <br />date herewith (“Loan Agreement”) which provides for the payment of a portion the cost of <br />purchasing equipment in connection with the acquisition, construction and equipping of an <br />approximately 110,000 square industrial warehouse facility for use in the Borrower’ <br />manufacturing business. The principal amount of this Note shall be amortized over a ten (10) <br />year period. <br />Based on the foregoing, the Borrower shall be obligated to make monthly installments <br />(each a “Monthly Installment”) in the amount of $________, which Monthly Installments shall <br />commence on ______ 1, 2024, and continue on the first (1st) day of each and every month <br />thereafter until the Maturity Date, when all outstanding principal and accrued but unpaid interest <br />shall be payable in full. <br />This Note is secured by, among other things a Security Agreement (“Security <br />Agreement”) given by the Borrower to Lender and the Personal Guaranty made by each of <br />Patrick Menth, David Menth, Anna Pulde and Joseph Menth to Lender both of which are made <br />to Lender of even date herewith (collectively, the “Security Documents”). All of the terms and <br />conditions contained in the Security Documents which are to be kept and performed by the <br />Borrower are hereby made a part of this Note to the same extent and with the same force and <br />effect as if they were fully set forth herein; and Borrower covenants and agrees to keep and <br />perform them, or cause them to be kept and performed, strictly in accordance with their terms. <br />This Note shall be immediately due and payable in full if the Borrower relocates <br />operations outside of the City of Elk River prior to the Maturity Date. <br />Page 30 of 104