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1 <br />EL185\81\983245.v1 <br />LOAN AGREEMENT <br />(Microloan) <br /> <br />THIS LOAN AGREEMENT (“Agreement”) is made effective as of November __, 2024, <br />by and between MODERN CONSTRUCTION OF MINNESOTA, INC., a Minnesota <br />corporation (the “Borrower”) and the ECONOMIC DEVELOPMENT AUTHORITY OF THE <br />CITY OF ELK RIVER, a public body corporate and politic of the State of Minnesota <br />(“Lender”). <br /> <br />RECITALS <br /> <br />A. Borrower has applied to Lender for a Microloan Program loan to assist with <br />acquiring and renovating property located at 709 Main Street NW in the City Elk (the “Loan <br />Property”) for use as a restaurant in the principal amount of $51,499.00. <br /> <br />B. Lender is willing to make such loan to Borrower in the principal amount of <br />$51,499.00 (the “Loan”), subject to all of the terms and conditions of this Agreement. <br /> <br />C. Contemporaneously with the execution hereof, Borrower is delivering to Lender <br />the following security documents: <br /> <br />(i) A Promissory Note (“Note”) effective as of the date herewith made by the <br />Borrower to the order of Lender, in the original principal amount of $51,499.00; <br /> <br />(ii) A Security Agreement securing the Note (“Security Agreement”) executed <br />by MFS Foods, Inc., a Minnesota corporation (the “Corporate Guarantor”) in favor of the <br />Lender, as secured party, and provides a second lien security interest in equipment located <br />at the Loan Property (the “Equipment”); <br /> <br />(iii) The Personal Guaranties of Jesse and Sarah Hartung (collectively, the <br />“Personal Guaranties”); <br /> <br />(iv) A Corporate Guaranty of MFS Foods, Inc. (the “Corporate Guaranty”); <br />and <br /> <br />(v) A Mortgage and Assignment of Rents and Security Agreement and Fixture <br />Financing Statement (the “Mortgage”) and covering the Loan Property. <br /> <br />NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, it is <br />hereby agreed as follows: <br /> <br />1. Amount and Purpose of Loan. Borrower agrees to take and Lender agrees to <br />make the Loan, to be advanced in a single disbursement as hereinafter provided, and evidenced <br />by the Note and secured by the Security Agreement, the Mortgage, the Corporate Guaranty, the <br />Personal Guaranties and any other security document required under this Agreement. The Loan <br />proceeds will be used to help finance the cost of acquisition and renovation of the Loan Property <br />Page 44 of 124