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ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER COUNTY OF SHERBURNE STATE OF MINNESOTA RESOLUTION NO. 19-05 RESOLUTION APPROVING AN AMENDED AND RESTATED LOAN AGREEMENT AND RELATED DOCUMENTS (DISTINCTIVE IRON PROJECT) WHEREAS, on February 17, 2015, the Economic Development Authority of the City of Elk River (the "EDA") provided a loan to Hemmer Companies L.L.C., a Minnesota limited liability company (the "Borrower"), pursuant to the EDA's Microloan Program (the "Program") in the amount of $126,000.00 (the "Original Loan") pursuant to a Loan Agreement, dated February 17, 2015 (the "Original Loan Agreement"), between the Borrower and the EDA. WHEREAS, the Original Loan was secured by (i) a Promissory Note, dated February 17, 2015 (the "Original Promissory Note"), from Borrower to the EDA; (ii) a Security Agreement, dated February 17, 2015 (the "Original Security Agreement"), from Distinctive Iron, LLC (the "Entity Guarantor"), in favor of the EDA providing the EDA with a security interest in certain equipment (the "Equipment") owned by Distinctive Iron, LLC (the "Entity Guarantor"); (iii) a Mortgage and Assignment of Rents and Security Agreement and Fixture Financing Statement (the "Original Mortgage"), executed by Borrower, in favor of EDA, covering property located in the City of Elk River, Minnesota (the "City"); (iv) a Personal Guaranty, dated February 17, 2015, from Cynthia Mae Hemmer & Steven Michael Hemmer (the "Original Personal Guaranties); and (v) an Entity Guaranty, dated February 17, 2015 (the "Original Entity Guaranty" and together with the Original Personal Guaranties, the "Original Guaranties"), from the Entity Guarantor. The current outstanding principal balance of the Original Loan is $89,338.20. WHEREAS, the Board of Commissioners (the "Board") of the EDA has received a request from the Borrower that the EDA provide an additional loan to the Borrower in the amount of $100,000.00 (the "New Loan") pursuant to the Program in order to assist in financing the acquisition, renovation and equipping of a new facility in the City in connection with the expansion of its current business in the City. WHEREAS, the Borrower has proposed that the Borrower and the EDA enter into an Amended and Restated Loan Agreement (the "Amended and Restated Loan Agreement") and related documents in connection with the New Loan. In total, the outstanding principal of the Original Loan and the New Loan (together, the "Loan") will be $189,338.20. WHEREAS, the EDA has caused to be prepared the Amended and Restated Loan Agreement setting forth, among other things, the terms and conditions under which the EDA will make the loan, a copy of which is on file with the Executive Director. The Amended and Restated Loan Agreement amends and restates the Original Loan Agreement to provide for the issuance of the New Loan. NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority of the City of Elk River as follows: 611673v2EL185-30