Minnergy LLC Watch

from 10-Q 5 pages Real Property Subordination Agreement Borrower Mortgagor Minnergy, LLC Minnergy, LLC Address Address 8 N. Front St. Nw, Po Box 86 Eyota, Mn 55934 8 N. Front St. Nw, Po Box 86 Eyota, Mn 55934 Telephone No. Identification No. Telephone No. Identification No. Creditor: Winona National Bank

from 10-Q 4 pages Minnergy, , LLC Winona National Bank 8 N Front St Nw 204 Main St Po Box 499 Loan Number 71559 Po Box 86 Winona, Mn 55987 Date 08/01/08 Eyota Mn 55934 Maturity Date 10/06/09 Loan Amount $ 250,000.00 Renewal of 0 Borrower’s Name and Address Lender’s Name and Address “I” Includes Each Borrower Above, Jointly and Severally. “You” Means the Lender, Its Successors and Assigns. for Value Received, I Promise to Pay to You, or Your Order, at Your Address Listed Above the Principal Sum of Two Hundred Fifty Thousand & No/100 Dollars $ 250,000.00

from S-1/A 2 pages For Good and Valuable Consideration, the Receipt and Sufficiency of Which Are Hereby Acknowledged, and to Induce Lender (With Its Participants, Successors and Assigns), at Its Option, at Any Time or From Time to Time to Make Loans or Extend Other Accommodations to or for the Account of Minnergy, LLC (Borrower) or to Engage in Any Other Transactions With Borrower, the Guarantor Hereby Absolutely and Unconditionally Guarantees to the Lender the Full and Prompt Payment When Due, Whether at Maturity or Earlier by Reason of Acceleration or Otherwise, of the Debts, Liabilities and Obligations Described as Follows: Indebtedness. Þ Specific Debts. the Guarantor Guarantees to Lender the Payment and Performance of the Debt, Liability or Obligation of Borrower to Lender Evidenced by or Arising Out of the Following: Note #71490 April 11, 2008 in the Amount of $2,040,000.00 and Any Extensions, Renewals or Replacements Thereof (Indebtedness)

from S-1/A 5 pages O Open End Credit: You and I Agree That I May Borrow Up to the Maximum Principal Sum More Than One Time This Feature Is Subject to All Other Conditions and Expires on Þ Closed End Credit: You and I Agree That I May Borrow (Subject to All Other Conditions) Up to the Maximum Principal Sum Only One Time. Interest: I Agree to Pay Interest on the Outstanding Principal Balance From April 11, 2008 at the Rate of 4.13 % Per Year Until June 11, 2008. O Variable Rate: This Rate May Then Change as Stated Below. O Index Rate: The Future Rate Will Be the Following Index Rate: O No Index: The Future Rate Will Not Be Subject to Any Internal or External Index. It Will Be Entirely in Your Control. O Frequency and Timing: The Rate on This Note May Change as Often as a Change in the Interest Rate Will Take Effect O Limitations: During the Term of This Loan, the Applicable Annual Interest Rate Will Not Be More Than % or Less Than %. the Rate May Not Change More Than % Each Effect of Variable Rate: A Change in the Interest Rate Will Have the Following Effect on the Payments: O the Amount of Each Scheduled Payment Will Change. O the Amount of the Final Payment Will Change. O