Document:

Exhibit 10.1 to Scanner Technologies Corporation Form 10-QSB dated September 30, 2005

Exhibit 10.1  

CHANGE IN TERMS AGREEMENT 

	

	Principal
$500,000.00	 	Loan Date
08-01-2005	 	Maturity
10-01-2006	 	Loan No
111518	 	Call/Collateral
11/3450	 	Account
153949	 	Officer
532	 	Initials	 
	

	References in the shaded area are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.

Any item above containing **** has been omitted due to text length limitations. 
	

		
	Borrower: 	 	SCANNER TECHNOLOGIES CORPORATION
14505 21st Avenue #220
Minneapolis, MN 55447 	 	Lender: 	 	BREMER BANK, NATIONAL ASSOCIATION
St. Anthony Office
2401 Lowry Ave. NE
St. Anthony, MN 55418-4000 	 

	Principal Amount:   $ 500,000.00	Initial Rate:    6.750%	Date of Agreement:    August 1, 2005 	 

DESCRIPTION OF EXISTING INDEBTEDNESS.   a Promissory
Note dated March 31, 2003, in the original principal amount of $1,300,000.00 as amended by that certain Change in Terms Agreement
dated June 22, 2004, and as further amended by that certain Change in Terms Agreement dated October 22, 2004, and that certain
Business Loan Agreement dated March 28, 2002, as amended by that certain Change in Terms Agreement dated March 31, 2003, and as
further amended by that certain Change in Terms Agreement dated June 22, 2004, between SCANNER TECHNOLOGIES CORPORATION
(“Borrower”) and BREMER BANK, NATIONAL ASSOCIATION (“Lender”). 

DESCRIPTION OF COLLATERAL.   all assets as listed in the
Commercial Security Agreement dated March 31, 2003, between the Borrower and the Lender. 

DESCRIPTION OF CHANGE IN TERMS.   This Change in Terms
Agreement shall serve to amend the above described Loan Agreement as follows: 

GUARANTIES.    References to Robert P. Bringer, Ruth E.
Bringer and Josef L. Kuhn shall be deleted in their entirety. 

Borrower shall furnish to Lender executed guaranties of the Loans executed by
the guarantors named below, on Lender’s forms, and in the amounts and under the conditions spelled out in those guaranties.

	Guarantors
	Amounts

	David B. Fernald	 	$100,000.00	 
	Nicholas J. Kuhn and Colleen M. Kuhn	 	$200,000.00	
	Steven Scott Bruggerman	 	$100,000.00	 
	Jerome M. Cowan	 	$100,000.00	 

NONUSE FEE.   Reference to the NONUSE FEE shall be deleted in its entirety. 

This Change in Terms Agreement shall also serve to amend the above described
Promissory Note as follows: 

PROMISE TO PAY.   Borrower promises to pay to Lender, or
order, in lawful money of the United States of America, the principal amount of Five Hundred Thousand & 00/100 Dollars
($500,000.00) or so much as may be outstanding, together with interest on the unpaid principal balance of each advance.

PAYMENT.   Borrower will pay this loan in one payment of all
outstanding principal plus all accrued unpaid interest on October 1, 2006. In addition, Borrower will pay regular monthly payments
of all accrued unpaid interest due as of each payment date, beginning September 1, 2005, with all subsequent interest payments to
be due on the same day of each month after that. 

VARIABLE INTEREST RATE.   The interest rate on this Agreement
is subject to change from time to time based on changes in an index which is the rate as announced from time to time by Bremer
Bank, National Association (the “Index”). The Index is the Prime rate as published by Bloomberg at www.Bloomberg.com
under “Market Data: Rates and Bonds: Key Rates,” as of the date of determination. The Index is not necessarily the
lowest rate charged by Lender on its loans and is set by Lender in its sole discretion. If the Index becomes unavailable during
the term of this loan, Lender may designate a substitute Index after notifying borrower. Lender will tell Borrower the current
Index rate upon Borrower’s request. The interest rate change will not occur more often than each day. Borrower understands
that Lender may make loans, based on other rates as well. The Index currently is 6.750% per annum. The interest rate to be applied
to the unpaid principal balance of the Note will be at a rate equal to the Index, resulting in an initial rate of 6.750% per
annum. NOTICE: Under no circumstances will the interest rate on the Note be more than the maximum rate allowed by applicable law.

CONTINUING VALIDITY.   Except as expressly changed by this Agreement, the terms
of the original obligation or obligations, including all agreements evidenced or securing the obligation(s), remain unchanged and
in full force and effect. Consent by Lender to this Agreement does not waive Lender’s right to strict performance of the
obligation(s) as changed, nor obligate Lender to make any future change in terms. Nothing in this Agreement will constitute a
satisfaction of the obligation(s). It is the intention of Lender to retain as liable parties all makers and endorsers of the
original obligation(s), including accommodation parties, unless a party is expressly released by Lender in writing, Any maker or
endorser, including accommodation makes, will not be released by virtue of this Agreement. If any person who signed the original
obligation does not sign this Agreement below, then all persons signing below acknowledge that this Agreement is given
conditionally, based on the representation to Lender that the non-signing party consents to the changes and provisions of this
Agreement or otherwise will not be released by it. This waiver applies not only to any initial extension, modification or release,
but also to all such subsequent actions. 

PRIOR TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE
PROVISIONS OF THIS AGREEMENT. BORROWER AGREES TO THE TERMS OF THE AGREEMENT. 

BORROWER: 

SCANNER TECHNOLOGIES
CORPORATION 

By:   /s/   Elwin M. Beaty 

Elwin M. Beaty, President of SCANNER TECHNOLOGIES CORPORATION 

-2-Exhibit 10.1

CLOSING AGREEMENT ON FINAL
DETERMINATION
 COVERING SPECIFIC MATTERS

By and between

Internal Revenue Service
Director,
Tax Exempt Bonds

-and-

 Gold Bank
(EIN 48-0357520)

Under
section 7121 of the Internal Revenue Code (the “Code”), Gold Bank (the “Bank”)
and the  Commissioner of Internal Revenue (the “Commissioner” or “Service”)
make this closing agreement (the  “Agreement”).

WHEREAS,
the parties have determined the following facts and made the following legal conclusions
and  representations:

A. The Service initiated
an examination of the $150,000,000 Community Development Authority of the City
of Manitowoc, Wisconsin, Multifamily Housing Revenue Bonds, (Great Lakes
Training & Development Projects), Series A, Series B and
Series C, issued on August 15, 2002 (the “Bonds”). The
Series C Bonds were issued in the principal amount of $4,600,000 and
purchased by the Bank.

B. As a result of the
examination of the Bonds, on July 11, 2005, the Service issued a Proposed
Adverse Determination Letter pursuant to which the Service determined the
interest received by Bank on the Series C Bonds is not excludible from the gross
income of the Bank under section 103 of the Code.

C. The Bank relied upon certain
certifications, representations, and/or opinions of the Community Development  Authority
of the City of Manitowoc, Wisconsin (the “Issuer”), Great Lakes Training and
Development Corporation  (the “Conduit Borrower”), and Stinson Morrison Hecker,
L.P. (“Bond Counsel”).

D. As a result of the
Bank’s reliance upon the certifications, representations and opinions of
the Issuer, Conduit Borrower and/or Bond Counsel, the Bank excluded from its
gross income interest received as the bondholder of the Series C Bonds.

E. The Service initiated
an examination of the Bank under Section 6700 of the Code with regard to the
Bank’s participation in connection with the issuance, sale, and purchase of
the Bonds.

	 
	

Closing Agreement with Gold Bank, 48-0357520

F. The Bank and the
Service desire to settle issues raised during the examination of the Bank’s
6700 examination and the Bank’s liabilities for Federal income tax
resulting from its purchase of the Series C Bonds.

G. The terms of the
Agreement were arrived at by negotiations between the Bank and the Service and
may differ from the terms of settlement of other similar examinations, including
examinations conducted under Section 6700 of the Code or of other Series of the
Bonds or of other bond issues examined or to be examined by the Service.

H. The Service has not
formally asserted any claims against the Bank with respect to the Bonds. The
Bank believes it has good and valid defenses to any claims which the Service may
formally assert under Section 6700 or as a result of the Section 6700
Examination, and desires to reach an agreement with the IRS to resolve any
uncertainty with respect to the interest received by the Bank from the Series C
Bonds.

I. The Bank is willing to
consent to a limited disclosure by the Service of information concerning the
existence and subject matter of this Agreement as more specifically set forth in
Paragraph 10 of this Agreement.

NOW
IT IS HEREBY DETERMINED AND AGREED, PURSUANT TO THIS CLOSING AGREEMENT EXECUTED
BY THE PARTIES HERETO UNDER CODE SECTION 7121 THAT FOR FEDERAL INCOME TAX
PURPOSES:

1.
Simultaneously with the execution and delivery of this Agreement, the Bank shall pay the
sum of One Million Sixty Two Thousand Two Hundred Twenty Six Dollars ($1,062,226) (the
“Settlement Amount”) to the Service. Payment of this amount shall be made by
certified or cashier’s check payable to the U.S. Treasury and delivered to a duly
authorized representative of the Service. Payment of the Settlement Amount shall not be
made with proceeds of bonds described in section 103(a) of the Code.

2.
This Agreement is executed with respect to the Federal income tax liability of
the Bank.

3. The
Service will discontinue the 6700 Examination and will not assert any penalties against
the Bank under section 6700 of the Code with respect to any actions or inactions taken by
the Bank in connection with the issuance of the Bonds, and effective upon the receipt of
the Settlement Amount, the Service will not impose any tax, penalty, additions to tax,
additional amounts, adjustments or assessments against the Bank with respect to any aspect
of the issuance of the Bonds or the Bank’s purchase and ownership of the Series C
Bonds.

	 
	2
	

Closing Agreement with Gold Bank,
48-0357520

4. The Bank
shall not be required to file any amended Federal income tax returns to report interest
received as a result of the Bank’s ownership of the Series C Bonds, nor shall Gold
Banc Corporation, Inc. or its subsidiary, Gold Capital Management, Inc. which file
consolidated Federal income tax returns with the Bank.

5. No
income shall be recognized by the Bank as a result of this Agreement or any payments made
pursuant to this Agreement.

6.
No party shall endeavor by litigation or other means to attack the validity of
this Agreement.

7. This
Agreement may not be cited or relied upon by the Service or any other person or entity
whatsoever as precedent in the disposition of any other case.

8. The
Settlement Amount described in Paragraph 1 of this Agreement shall not be treated as a
deductible expense, or subject to credit or offset under any circumstances, by the Bank or
any other party, including any of its current or former officers, directors, stockholders,
agents, partners, employees, parents, subsidiaries, affiliates, or members for Federal
income tax purposes for any year.

9. This
Agreement is final and conclusive except that:

a) The
matter it relates to may be reopened in the event of Bank’s fraud, malfeasance, or
misrepresentation of a material fact;

b) It is
subject to the Internal Revenue Code sections that expressly provide that effect be given
to their provisions (including any stated exception for Code Section 7122) notwithstanding
any other law or rule of law; and,

c) If it
relates to a tax period ending after the effective date of this Agreement, it is subject
to any law, enacted after the date of the Agreement, that applies to that tax period.

10. The Bank
hereby consents to disclosure by the Service of information concerning the existence and
subject matter of this Agreement to Members of Congress, the press and the general public:

a) in the
event of a default by the Bank on any term in this Agreement; or

	 
	3
	

Closing Agreement with Gold Bank,
48-0357520

b) to the extent
the IRS deems necessary to correct any material misstatement with respect to this
Agreement in response to a public statement by the Bank or an agent thereof.

11. The
Service hereby consents to disclosure by the Bank of information concerning the existence
and subject matter of this Agreement to any governmental agency or quasi-public agency,
any party with regulatory authority over the Bank, the press and the general public to the
extent the Bank deems necessary or appropriate.

12. Upon
payment of the Settlement amount, the Service agrees that the Bank, and the parties
identified with particularity in the attached Exhibit A, incorporated as if more fully set
forward herein and designated by the parties as confidential, are and shall be forever
released and discharged from the assertion of any Section 6700 amount by the Service with
regard to the issuance of the Bonds or the Bank’s purchase and ownership of the
Series C Bonds.

By signing, the above
parties certify that they have read and agreed to the terms of this Agreement.

	 
	4
	

Closing Agreement with Gold Bank, 48-0357520

GOLD BANK:

	TIN: 	48-0357520	 
	 
	By: 	/s/ Malcolm M. Aslin	 
	 
	Title: 	CEO	 
	 
	Date: 	October 11, 2005	 

COMMISSIONER OF INTERNAL REVENUE

	By: 	
     /s/ W. Mark Scott	 
	 	
     W. Mark Scott
Director, Tax-Exempt Bonds	 
	 
	Date: 	October 17, 2005	 

	 
	5
	

Closing Agreement with Gold Bank, 48-0357520

Exhibit A

	Individual Name	  	Title(s)/Positions(s) Held	  	Entity Names	  
	  	  
	Malcolm Aslin	  	Director/President/CEO/Chairman	  	Gold Bank	  
	"          "	  	Director/COO/CEO	  	Gold Banc Corp.	  
	  	  
	Michael Gullion	  	Director/President/CEO	  	Gold Bank	  
	"          "	  	Director/President/CEO	  	Gold Banc Corp.	  
	  	  
	Steven Rector	  	Executive V.P./Cashier	  	Gold Bank	  
	  	  
	Patrick Schiesel	  	Accounting Officer/VP	  	Gold Bank	  
	  	  
	J. Daniel Stepp	  	Director/President	  	Gold Capital Mgt.	  
	  	  
	Richard Tremblay	  	Executive V.P./CFO	  	Gold Banc Corp.	  

	 
	6

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