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172982028v5 Taft Draft June 27, 2025 UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF WASHINGTON CITY OF HUGO, MINNESOTA Educational Facilities Revenue Note, Series 2025 (Legacy Christian Academy Project) Date of Note: September [__], 2025 $5,500,000.00 FOR VALUE RECEIVED the City of Hugo, Minnesota, Washington County, Minnesota (the “City”) hereby promises to pay to the order of Falcon National Bank, a national banking association, its successors or registered assigns (the “Lender”), from the source and in the manner hereinafter provided, the principal sum of FIVE MILLION FIVE HUNDRED THOUSAND DOLLARS ($5,500,000.00), or so much thereof as has been advanced and remains unpaid from time to time (the “Principal Balance”), with interest thereon from the date hereof until paid or otherwise discharged as set forth in Paragraph 1 below, in any coin or currency which at the time or times of payment is legal tender for the payment of public or private debts in the United States of America, in accordance with the terms hereinafter set forth. 1. Interest Rate. (a) During the period beginning on the date of this Note until September [__], 2030 the (“Initial Rate Reset Date”), the initial fixed rate of interest payable hereunder shall be equal to 4.39 percent per annum (the “Initial Rate”). On the Initial Rate Reset Date and on each five year anniversary thereafter (each, a “Rate Reset Date”) through [_____] [___], 2045 (the “Final Maturity Date”), the interest rate on this Note will be adjusted to a rate per annum equal to seventy percent (70%) of the number which is the sum of the Index in effect on the Business Day immediately preceding such Rate Reset Date plus 250 basis points (the “Adjusted Rate”). The “Index” means an independent index which is the yield on the five year United States Treasury Securities. “Business Day” means any day that the Lender is open for business and excludes all Saturdays, Sundays and federally designated bank holidays. In no event will the Adjusted Rate be less than 4.0% or greater than 6.5%. (b) The interest rates referred to in this Note are not necessarily the lowest rates charged by the Lender on its loans. If the Lender determines, in its sole discretion, that, as of a Rate Reset Date, the Index has become unavailable or unreliable, either temporarily, indefinitely, or permanently, the Lender may amend this Note by designating a substantially similar substitute index. The Lender may also amend and add a positive or negative margin (percentage added to or subtracted from the substitute index value) as part of the rate determination on a Rate Reset Date. In making these amendments, the Lender may take into consideration any then-prevailing market convention for selecting a substitute index and margin for the specific Index that is unavailable or unreliable. Such an amendment to the terms of this Note will become effective and bind the Borrower (defined below) on a Rate Reset Date, provided the Lender has given at least 10 Business Days written notice to the Borrower without any action or consent of the Borrower. NOTICE: Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable law. On a Rate Reset Date, the Lender, at its option, may do one or more of the