7.2 EDSR 10-21-2024 - Laserfiche WebLink

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1 PROMISSORY NOTE (Microloan) November ___, 2024 Amount: $51,499.00 Interest: 3.00% Maturity: January 1, 2030 FOR VALUE RECEIVED, the undersigned, MODERN CONSTRUCTION OF MINNESOTA, INC., a Minnesota corporation (the “Borrower”), promises to pay to the order of the ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER, a public body corporate and politic of the State of Minnesota (“Lender”), at 13065 Orono Parkway, Elk River, Minnesota 55330, or such other place as the Lender or any other holder of this Note may designate in writing, on or before January 1, 2030 (“Maturity Date”), the principal sum of Fifty Thousand and Four Hundred Ninety-Nine and 00/100 Dollars ($51,499.00), together with interest on any and all amounts remaining unpaid thereon from time to time from the date hereof (computed on the basis of actual days elapsed in a year of 360 days) at a fixed interest rate of three percent (3%) per annum. This Note is made pursuant to a Loan Agreement, between Borrower and Lender, of even date herewith (“Loan Agreement”) which provides for the payment of a portion the cost of the acquisition and renovation of real property in the City of Elk River, Minnesota to be used as a restaurant. The principal amount of this Note shall be amortized over a twenty (20) year period. Based on the foregoing, the Borrower shall be obligated to make monthly installments (each a “Monthly Installment”) in the amount of $________, which Monthly Installments shall commence on December 1, 2024, and continue on the first (1st) day of each and every month thereafter until the Maturity Date, when all outstanding principal and accrued but unpaid interest shall be payable in full. The final payment shall be a balloon payment in the amount of all outstanding principal and accrued but unpaid interest. This Note is secured by, among other things, (i) a Security Agreement (“Security Agreement”) given by MFS Food, Inc. to the Lender, (ii) the Corporate Guaranty given by MFS Food, Inc. to the Lender, (iii) a Mortgage and Assignment of Rents and Security Agreement and Fixture Financing Statement given by the Borrower in favor of the Lender, and (vi) the Personal Guaranty made by Sarah and Jesse Hartung to Lender, all of which are dated of even date herewith (collectively, the “Security Documents”). All of the terms and conditions contained in the Security Documents which are to be kept and performed by the Borrower are hereby made a part of this Note to the same extent and with the same force and effect as if they were fully set forth herein; and Borrower covenants and agrees to keep and perform them, or cause them to be kept and performed, strictly in accordance with their terms. Page 59 of 124