Mr. John T. Golle
Chairman and Chief Executive Officer
The TesseracT Group, Inc.
9701 E. Bell Road
Scottsdale, AZ 85259
Re: Loan Agreement
$1,362,000.00 Loan to The TesseracT Group, Inc., a Minnesota corporation
The undersigned, The TesseracT Group, Inc., a Minnesota corporation (the "BORROWER"), hereby applies to
JEBCO Group, Inc., a Minnesota corporation, (the "LENDER"), for a loan of $1,362,000.00 (the "LOAN").
1. LOAN TERMS. Subject to the terms, covenants and conditions contained in Lender's standard form loan
documents, the basic terms and conditions of the Loan are as follows:
1.01. BORROWER: The TesseracT Group, Inc., a Minnesota corporation
1.02. AMOUNT: $1,362,000.00
1.03. PURPOSE: To provide Borrower with working capital.
1.04. INTEREST RATE: Fixed rate of interest equal to eleven and one-half percent (11.5%) per annum,
calculated on the basis of the actual number of days elapsed and a 360 day year.
1.05. TERM: one (1) year, maturity date.
1.06. PAYMENT: Minimum monthly installments of principal and accrued interest in the amount of $14,524.77,
plus real estate tax and insurance escrow payments as required by Lender.
1.07. FUNDING: $1,293,000.00 of the loan amount will be funded to the Borrower at closing, $87,000.00 of
which will be funded to the Payment Reserve Fund.
Borrower hereby acknowledges that the Loan is a "discount" loan and that Borrower shall be obligated to repay
the entire $1,362,000.00 face amount of the Note despite the disbursement of only $1,293,000.00 by Lender.
2. CONDITIONS TO CLOSING. The following documents or items are to be delivered to Lender prior to or
at closing and shall be in the form and content satisfactory to Lender and Lender's legal counsel in their sole
discretion, and shall include but not be limited to the following:
2.01. $1,362,000.00 Promissory Note (the "NOTE").
2.02. The Deed of Trust.
2.03. One or more UCC-1 Financing Statements to be filed in the Maricopa County, Arizona real estate records