Document:

PROMISSORY
NOTE

 

	$1,000,000.00
    	February
    7th 2017

 

1.
FOR VALUE RECEIVED, KRIEGER ENTERPRISES, LLC (the “Borrower”), hereby promises to pay to the order of ASPIRITY FINANCIAL,
LLC (the “Lender”), the principal sum of One Million and 00/100 Dollars ($1,000,000.00), or so much thereof as may
be advanced by the Lender to or for the benefit of the Borrower pursuant to that certain Loan Agreement of even date herewith
(the “Loan Agreement”), by and between the Borrower and the Lender, and which remains unpaid, in lawful money of the
United States and immediately available funds, together with interest on the outstanding balance accruing at a fixed rate of eight
and no/100 percent (8.00%).

 

2.
The full amount of principal plus accrued interest hereon shall be due and payable on the earlier of: (i) within three (3) days
of the Lender’s written demand, which demand may be made at any time Lender’s cash position as determined by Lender
in good faith is less than One Hundred Thousand and 00/100 Dollars ($100,000) or (ii) March 30, 2017. Any demand by Lender for
payment hereunder prior to March 30, 2017 may in Lender’s sole discretion be a demand for partial payment. Lender agrees
to provide notice to Borrower when Lender’s cash position is less than Two Hundred Thousand and 00/100 Dollars ($200,000).

 

3.
Interest hereunder shall be calculated on the basis of a year of three hundred sixty (360) days, but charged on the basis of the
actual number of days’ principal is unpaid.

 

4.
The outstanding principal balance of this Note may be prepaid in whole or in part at any time without premium or penalty.

 

5.
If any installment of principal or interest on this Note is not paid within ten (10) days of the due date thereof, the Borrower
shall pay to the Lender a late charge equal to five percent (5.00%) of the amount of such installment, which shall be in addition
to any other amount due hereunder.

 

6.
Notwithstanding anything to the contrary contained herein, at all times after an Event of Default (as defined in the Loan Agreement)
has occurred and is continuing, interest shall accrue on amounts outstanding hereunder at a rate equal to five percent (5.00%)
per annum in excess of the rate otherwise payable hereunder.

 

7.
All payments and prepayments shall, at the option of the Lender, be applied first to any costs of collection, second to any late
charges, third to accrued interest on this Note and the remainder thereof to principal.

 

8.
Notwithstanding anything to the contrary contained herein, if the rate of interest, late payment fee or any other charges or fees
due hereunder are determined by a court of competent jurisdiction to be usurious, then said interest rate, fees and/or charges
shall be reduced to the maximum amount permissible under applicable Minnesota law.

 

    	 	 

    	 		 

    

 

9.
This Note is issued pursuant to the terms and provisions of the Loan Agreement and is guaranteed by the Guarantor pursuant to
the Guaranty, and the Lender is entitled to all of the benefits provided for in said Guaranty.

 

10.
Unless otherwise defined herein, capitalized terms used herein shall have the meanings assigned to such terms in the Loan Agreement.

 

11.
Upon the occurrence of an Event of Default and at any time thereafter, the outstanding principal balance hereof plus accrued interest
hereon plus all other amounts due hereunder shall, at the option of the Lender, be immediately due and payable, without notice
of demand.

 

12.
Upon the occurrence of an Event of Default and at any time thereafter, the Lender shall, at its option, have the right to set
off any and all amounts due hereunder by the Borrower to the Lender against any indebtedness or obligation of the Lender to the
Borrower.

 

13.
Upon the occurrence of an Event of Default and at any time thereafter, the Borrower promises to pay all costs of collection of
this Note, including but not limited to reasonable attorneys’ fees, paid or incurred by the Lender on account of such collection,
whether or not suit is filed with respect thereto and whether or not such costs are paid or incurred, or to be paid or incurred,
prior to or after the entry of judgment.

 

14.
Demand, presentment, protest and notice of nonpayment and dishonor of this Note are hereby waived.

 

15.
This Note shall be governed by and construed in accordance with the laws of the State of Minnesota without giving effect to the
choice of law provisions thereof.

 

16.
The Borrower hereby irrevocably submits to the jurisdiction of any Minnesota state court or federal court over any action or proceeding
arising out of or relating to this Note, the Loan Agreement, and any instrument, agreement or document related thereto, and the
Borrower hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in such
Minnesota state or federal court. The Borrower hereby irrevocably waives, to the fullest extent it may effectively do so, the
defense of an inconvenient forum to the maintenance of such action or proceeding. The Borrower agrees that judgment final by appeal,
or expiration of time to appeal without an appeal being taken, in any such action or proceeding shall be conclusive and may be
enforced in any other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Paragraph
shall affect the right of the Lender to serve legal process in any other manner permitted by law or affect the right of the Lender
to bring any action or proceeding against the Borrower or its property in the courts of any other jurisdiction to the extent permitted
by law.

 

[THE REMAINDER
OF THIS PAGE IS INTENTIONALLY BLANK]

 

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	 	BORROWER:
	 	 
	 	KRIEGER
    ENTERPRISES, LLC
	 	 	 
	 	By:	/S/ Timothy S. Krieger

	 	Name:	Timothy S. Krieger
	 	Its:	President/CEO

 

[SIGNATURE PAGE
TO PROMISSORY NOTE DATED FEBRUARY __, 2017]

 

    	 	- 3 -PERSONAL
GUARANTY

 

BY

 

TIMOTHY S. KRIEGER

 

TO

 

ASPIRITY FINANCIAL,
LLC

 

Dated: February
7th 2017

 

 

 

 

This
instrument was drafted by:

 

WINTHROP
& WEINSTINE, P.A.

Suite
3500

225
South Sixth Street

Minneapolis,
MN 55402

 

    	 

    	 

    

 

PERSONAL
GUARANTY

 

In consideration
of and in order to induce ASPIRITY FINANCIAL, LLC (the “Lender”), to extend financial accommodations to KRIEGER ENTERPRISES,
LLC (the “Borrower”), pursuant to that certain Loan Agreement of even date herewith by and between the Lender and
the Borrower (the “Loan Agreement”) and as evidenced by that certain Promissory Note of even date herewith executed
by the Borrower in the original principal amount of $1,000,000.00 and payable to the order of the Lender (the “Note”),
the undersigned (the “Guarantor”) hereby:

 

 1. Unconditionally and absolutely guarantees to the Lender:

 

(a)
the full and prompt payment, when due, whether at the maturity dates specified therein or theretofore upon acceleration of
maturity pursuant to the provisions thereof, of principal, accrued interest, prepayment premiums and late charges, if any, on
the Note, and any and all renewals thereof including notes taken in substitution therefor; and

 

(b)
any and all other liability or indebtedness of the Borrower to the Lender pursuant to the Note whether now existing or
hereafter arising, joint or joint and several, contingent or direct; and

 

(c)
the payment and performance by the Borrower of all of its obligations under and pursuant to the Note, the Loan Agreement and
any and all documents related thereto;

 

(the Note,
the Loan Agreement and such other liability, indebtedness and obligations are herein collectively referred to as the “Obligations”);
together with the full and prompt payment of any and all costs and expenses of and incidental to the collection of the Obligations
or the enforcement of this Guaranty, including, without limitation, attorneys’ fees.

 

2.
Agrees that if the Borrower fails to pay any installment of principal or interest under the Note, when due, the Lender may
demand payment from the Guarantor of such installment (or portion thereof) of principal or interest on the Note, when due,
and the Guarantor shall immediately pay the same to the Lender, and the Lender may demand payment or performance of any or
all of the other Obligations, when such payment or performance is due or required, and the Guarantor shall immediately pay or
perform the same, whether or not the Lender has (i) declared an Event of Default (as defined in the Loan Agreement), or (ii)
accelerated payment of the Note, or (iii) otherwise exercised its rights and remedies hereunder or under the Note, the
documents related thereto or applicable law.

 

3.
Waives (i) presentment, demand, notice of nonpayment, protest and notice of protest and dishonor on the Obligations; (ii)
notice of acceptance of this Guaranty by the Lender; and (iii) notice of the creation or incurrence of the Obligations by the
Borrower.

 

4.
Agrees that the Lender may from time to time, without notice to the Guarantor, which notice is hereby waived by the
Guarantor, extend, modify, renew or compromise the Obligations, in whole or in part, without releasing, extinguishing or
affecting in any manner whatsoever the liability of the Guarantor hereunder, the foregoing acts being hereby consented to by
the Guarantor.

 

    	 

    	 

    

 

5.
Agrees that the Lender shall not be required to first resort for payment to the Borrower or any other person, corporation or
entity, or their properties or estates, or any other right or remedy whatsoever, prior to enforcing this Guaranty.

 

6.
Agrees that this Guaranty shall be construed as a continuing, absolute, and unconditional guaranty without regard to (i) the
validity, regularity or enforceability of the Obligations or the disaffirmance thereof in any insolvency or bankruptcy
proceeding relating to the Borrower, or (ii) any event or any conduct or action of the Borrower or the Lender or any other
party which might otherwise constitute a legal or equitable discharge of a surety or guarantor but for this
provision.

 

7.
Agrees that this Guaranty shall remain in full force and effect and be binding upon the Guarantor until the Obligations are
paid in full.

 

8.
Agrees that the Lender is expressly authorized to forward or deliver any or all collateral and security which may at any time
be placed with it by the Borrower, the Guarantor or any other person, directly to the Borrower for collection and remittance
or for credit, or to collect the same in any other manner and to renew, extend, compromise, exchange, release, surrender or
modify the installments of, any or all of such collateral and security with or without consideration and without notice to
the Guarantor and without in any manner affecting the absolute liability of the Guarantor hereunder; and that the liability
of the Guarantor hereunder shall not be affected or impaired by any failure, neglect or omission on the part of the Lender to
realize upon the Obligations, or upon any collateral or security therefor, nor by the taking by the Lender of any other
guaranty or guaranties to secure the Obligations or any other indebtedness of the Borrower to the Lender, nor by the taking
by the Lender of collateral or security of any kind nor by any act or failure to act whatsoever which, but for this
provision, might or could in law or in equity act to release or reduce the Guarantor’s liability hereunder.

 

9.
Waives any right that the Guarantor may have to collect or seek to collect from the Borrower the claim, if any, by
subrogation or otherwise, acquired by the Guarantor through payment of any part or all of the Obligations until the
Obligations have been paid in full.

 

10.
Agrees that the liability of the Guarantor hereunder shall not be affected or impaired by the existence or creation from time
to time, with or without notice to the Guarantor, which notice is hereby waived, of indebtedness from the Borrower to the
Lender in addition to the indebtedness evidenced by the Note; the creation or existence of such additional indebtedness being
hereby consented to by the Guarantor.

 

11.
Agrees that the possession of this instrument of guaranty by the Lender shall be conclusive evidence of due execution and
delivery hereof by the Guarantor.

 

12.
Agrees that this Guaranty shall be binding upon the legal representatives, successors and assigns of the Guarantor, and shall
inure to the benefit of the Lender and its successors, assigns and legal representatives; that notwithstanding the foregoing,
the Guarantor shall have no right to assign or otherwise transfer his rights and obligations under this Guaranty to any third
party without the prior written consent of the Lender; and that any such assignment or transfer shall not release or affect
the liability of the Guarantor hereunder in any manner whatsoever.

 

    	 	- 2 -	 

    	 

    

 

13.
Agrees that he may be joined in any action or proceeding commenced against the Borrower in connection with or based upon the
Obligations and recovery may be had against him in any such action or proceeding or in any independent action or proceeding
against him should the Borrower fail to duly and punctually pay any of the principal of or interest on the Obligations
without any requirement that the Lender first assert, prosecute or exhaust any remedy or claim against the
Borrower.

 

14.
Agrees that upon the occurrence at any time of an Event of Default (as defined in the Loan Agreement), the Lender shall have
the right to set off any and all amounts due hereunder by the Guarantor to the Lender against any indebtedness or obligation
of the Lender to the Guarantor.

 

15.
Agrees that the Guarantor shall be liable to the Lender for any deficiency remaining after foreclosure of any mortgage in
real estate or any security interest in personal property granted by the Borrower, the Guarantor or any third party to the
Lender to secure repayment of the Obligations and the subsequent sale by the Lender of the property subject thereto to a
third party (whether at a foreclosure sale or at a sale thereafter by the Lender in the event the Lender purchases said
property at the foreclosure sale) notwithstanding any provision of applicable law which may prevent the Lender from obtaining
a deficiency judgment against, or otherwise collecting a deficiency from, the Borrower.

 

16.
Agrees that this Guaranty shall be deemed a contract made under and pursuant to the laws of the State of Minnesota and shall
be governed by and construed under the laws of such state without giving effect to the choice of law provisions thereof; and
that, wherever possible, each provision of this Guaranty shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Guaranty shall be prohibited by or invalid under applicable law, such
provision shall be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder of
such provision or the remaining provisions of the Guaranty.

 

17.
Agrees that no failure on the part of the Lender to exercise, and no delay in exercising, any right or remedy hereunder shall
operate as or constitute a waiver thereof; nor shall any single or partial exercise of any right or remedy hereunder preclude
any other or further exercise thereof or the exercise of any other right or remedy granted hereby or by any related document
or by law.

 

18.
Waives any and all claims against the Lender and defenses to performance and payment hereunder relating in any way, directly
or indirectly, to the performance of the Lender’s obligations or exercise of any of its rights under the Note and the
documents related thereto.

 

19.
Warrants and represents to the Lender as follows:

 

(a) Enforceability.
This Guaranty constitutes the legal, valid and binding obligation of the Guarantor enforceable in accordance with its terms
(subject, as to enforceability, to limitations resulting from bankruptcy, insolvency or other similar laws affecting
creditors’ rights generally).

 

    	 	- 3 -	 

    	 

    

 

(b) Litigation.
There is no action, suit or proceeding pending or, to the knowledge of the Guarantor, threatened against or affecting the
Guarantor which, if adversely determined, would have a material adverse effect on the condition (financial or otherwise),
properties or assets of the Guarantor, or which would question the validity of this Guaranty or any instrument, document or
other agreement related hereto or required hereby, or impair the ability of the Guarantor to perform his obligations
hereunder or thereunder.

 

(c) Default.
The Guarantor is not in default of a material provision under any agreement, instrument, decree or order to which he is a
party or by which he or his property is bound or affected.

 

(d) Consents.
To the Guarantor’s knowledge, no consent, approval, order or authorization of, or registration, declaration or filing
with, or notice to, any governmental authority or any third party is required in connection with the execution and delivery
of this Guaranty or any of the agreements or instruments herein mentioned to which the Guarantor is a party or the carrying
out or performance of any of the transactions required or contemplated hereby or thereby or, if required, such consent,
approval, order or authorization has been obtained or such registration, declaration or filing has been accomplished or such
notice has been given prior to the date hereof.

 

(e) Taxes.
The Guarantor has filed all tax returns required to be filed and has paid all taxes shown thereon to be due, including
interest and penalties, which are not being contested in good faith and by appropriate proceedings and has no information or
knowledge of any objections to or claims for additional taxes in respect of federal income or excess profits tax returns for
prior years.

 

(f) Financial
Condition. The financial statements of the Guarantor furnished to the Lender are complete and correct in all respects
and fairly present the financial condition of the Guarantor at the dates of such statements. Since the most recent set of
financial statements delivered by the Guarantor to the Lender, there have been no material adverse changes in the financial
condition of the Guarantor.

 

(g) Residence,
Etc. The Guarantor is an individual person who is a citizen of the United States of America and a citizen and resident
of the State of Minnesota who is under no legal disability.

 

20.
Agrees that the liability of the Guarantor and any other guarantor of the Obligations shall be joint and several.

 

21.
Agrees to deliver to the Lender the financial information and documentation required under the Loan Agreement for the
Guarantor.

 

22.
Agrees that (i) he will indirectly benefit by and from the making of the loan by the Lender to the Borrower evidenced by the
Note; (ii) he has received legal and adequate consideration for the execution of this Guaranty and has executed and delivered
this Guaranty to the Lender in good faith in exchange for reasonably equivalent value; (iii) he is not presently insolvent
and will not be rendered insolvent by virtue of the execution and delivery of this Guaranty; (iv) he has not executed or
delivered this Guaranty with actual intent to hinder, delay or defraud his creditors; and (v) the Lender has agreed to make
such loan in reliance upon this Guaranty.

 

    	 	- 4 -	 

    	 

    

 

23.
Agrees that if, at any time, all or any part of any payment previously applied by the Lender to any of the Obligations must
be returned by the Lender for any reason, whether by court order, administrative order or settlement, the Guarantor shall
remain liable for the full amount returned as if said amount had never been received by the Lender, notwithstanding any term
of this Guaranty or the cancellation or return of any note or other agreement evidencing the Obligations.

 

24.
Irrevocably submits to the jurisdiction of any Minnesota a state court or federal court over any action or proceeding arising
out of or relating to this Guaranty, the Note, the Loan Agreement, and any instrument, agreement or document related thereto
(collectively, the “Loan Documents”); agrees that all claims in respect of such action or proceeding may be heard
and determined in such Minnesota state or federal court; irrevocably waives, to the fullest extent he may effectively do so,
the defense of an inconvenient forum to the maintenance of such action or proceeding; irrevocably consents to the service of
copies of the summons and complaint and any other process which may be served in any such action or proceeding by the mailing
by United States certified mail, return receipt requested, of copies of such process to the Guarantor’s last known
address; and agrees that judgment final by appeal, or expiration of time to appeal without an appeal being taken, in any such
action or proceeding shall be conclusive and may be enforced in any other jurisdictions by suit on the judgment or in any
other manner provided by law; provided that nothing in this paragraph shall affect the right of the Lender to serve legal
process in any other manner permitted by law or affect the right of Lender to bring any action or proceeding against either
Guarantor or his property in the courts of any other jurisdiction to the extent permitted by law.

 

25.
WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON OR PERTAINING TO THIS GUARANTY OR THE OTHER LOAN
DOCUMENTS.

 

Dated as of
this 7th day of February, 2017.

 

	 	/S/
    Timothy S. Krieger
	 	TIMOTHY
    S. KRIEGER

 

    	 	- 5 -

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