Filed by Bowne Pure Compliance






Exhibit 10.3




 [Space Above This Line For Recording Data]




FIRST AMENDMENT OF CONSTRUCTION LOAN MORTGAGE,

SECURITY AGREEMENT,

ASSIGNMENT OF LEASES AND RENTS

AND FIXTURE FINANCING STATEMENT




THIS FIRST AMENDMENT OF CONSTRUCTION LOAN MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF LEASES
AND RENTS AND FIXTURE FINANCING STATEMENT (“Amendment”) is made as of July 31, 2008, between
CARDINAL ETHANOL, LLC, an Indiana limited liability company (“Mortgagor”), whose address is 1554 N,
600 E., Union City, Indiana 47390 and FIRST NATIONAL BANK OF OMAHA, a National Banking Association
(“Mortgagee”), whose address is 1620 Dodge Street, Stop 1050, Omaha, Nebraska 68197-1050, and
amends that certain Construction Loan Mortgage, Security Agreement, Assignment of Leases and Rents
and Fixture Financing Statement dated December 19, 2006 (“Mortgage”) executed and delivered by
Mortgagor in favor of Mortgagee and recorded in the mortgage records of Randolph County, Indiana as
Instrument No. 2006-6145 on December 21, 2006.



RECITALS




A. Mortgagor and Mortgagee have entered into that certain Construction Loan Agreement dated
December 19, 2006 (as the same may be modified or amended from time to time, the “Loan Agreement”),
pursuant to which Mortgagee has extended to Mortgagor the Loans and financial accommodations
described therein and in the Mortgage.



B. Pursuant to that certain Third Amendment of Construction Loan Agreement dated of even date
herewith and the documents executed in connection therewith, Mortgagee extended to Mortgagor the
Oil Extraction Loan in the maximum principal amount of $3,600,000,00. The Oil Extraction Loan is
secured by the Mortgage. The Mortgage provides that it secures the total
principal amount of $101,602,500, or so much thereof as may have been advanced and/or
readvanced now or in the future at variable and/or fixed rates of interest to or for the benefit of
the Mortgagee and remains unpaid from time to time, plus the amount of any protective advances made
by Mortgagee as provided for in this Mortgage or any other Loan Document.


 


 









 





C. The Mortgage encumbers the real property and improvements described in
Exhibit A attached hererto and incorporated herein by reference.



D. Mortgagor and Mortgagee agree to amend the Mortgage to reflect the increase in the maximum
principal amount of the Loans and otherwise as set forth below.



NOW, THEREFORE, in consideration of the foregoing Recitals, which are hereby made an integral
part of this Mortgage, the mutual covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree to
amend the Mortgage as follows:



1. Capitalized terms not otherwise defined in this Amendment shall have the meaning given to
such terms in the Mortgage. The term. “Mortgage”, as defined in the Mortgage and the other Loan
Documents, shall be deemed to mean the Mortgage as amended by this Amendment and as the Mortgage
may he hereafter further amended, supplemented, restated or modified from time to time.



2. The definition of the term “Loans” in Recital A of the Mortgage is hereby amended to
include the Oil Extraction Loan in the principal amount of up to $3,600,000,00.



3. The reference in Recital A to S101,602,500,00 as the total principal amount secured by the
Mortgage is hereby deleted and $105,202,500.00 is hereby inserted in lieu thereof, and hereafter
Mortgage shall secure the principal amount of $50,846,000.00, or so much thereof as may have been
advanced and/or readvanced now or in the future at variable and/or fixed rates of interest to or
for the benefit of the Mortgagee and remains unpaid from time to time, plus the amount of any
protective advances made by Mortgagee as provided for in this Mortgage or any other Loan Document.



4. Mortgagor’s notice address in Section 5.3 and Mortgagor’s address in Section 5.9 of the
Mortgage is hereby amended to 1554 N. 600 E., Union City, Indiana 47390, Fax. No. (765) 964-3349.



5. The Mortgage, as amended by this Amendment, shall remain in full force and effect as
originally executed and delivered by Mortgagor, except as expressly modified and amended herein.
Mortgagor hereby confirms and reaffirms all of its obligations under the Mortgage, as modified and
amended by this Amendment.



6. Mortgagor certifies and reaffirms by its execution hereof that the representations and
warranties set forth in the Mortgage and the other Loan Documents are true as of this date, and
that no Event of Default under the Mortgage or any other Loan Document, and no event which, with
the giving of notices or passage of time or both, would become such an Event of
Default, has occurred as of execution hereof.


 


 









 





7. This Amendment may he executed simultaneously in several counterparts, each of which shall
be deemed an original but which together shall constitute one and the same Instrument.



IN WITNESS WHEREOF, the parties have executed and delivered this Amendment on the date
first written above.



	 	 	 	 	 	 	 
	 	 	FIRST NATIONAL BANK OF OMAHA,
a national 
banking association	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ Fallon Savage
 

	 	 
	 

	 	
	 	TITLE: Second Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	CARDINAL ETHANOL, LLC,
an Indiana
 Limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ Troy Prescott	 	 
	 

	 	 	 	 	 	 
	 

	 	
	 	TITLE: President	 	 






Prepared by and Return to:



James M. Pfeffer

Stinson Morrison Becker LLP 

1299
Farnam St. Suite 1500 

Omaha,
Nebraska 68102



 


 









 





CERTIFICATE OF ACKNOWLEDGEMENT




	 	 	 	 	 	 	 
	STATE OF INDIANA

	 	 	)	 	 	 
	 

	 	) ss,
	 	 
	COUNTY OF Grant

	 	 	)	 	 	 






Before me, a Notary Public in and for said County and State, personally appeared Troy
Prescott, known to me to be the President of Cardinal Ethanol, LLC, an Indiana limited
liability company, and acknowledged the execution of the foregoing Note for and on behalf of such
limited liability company.



	 	 	 	 	 
	 

	 	/s/ Techia K. Brewer
 

Notary Pubic — Signature
	 	 
	 
	 	 	 	 
	 

	 	Techia K. Brewer	 	 
	 

	 	 	 	 
	 

	 	Notary Public — Printed Name	 	 
	 
	 	 	 	 
	 

	 	Date: July 31, 2008	 	 






My Commission Expires:




12/27/2009




My County of Residence: Grant County, Indiana



 


 









 





EXHIBIT A

LEGAL DESCRIPTION




Tract I, containing 207.623 acres




Situated in the Northeast and. Southeast Quarters, both being in Section 17, Township 20 North,
Range 15 East, Wayne Township, Randolph County, Indiana, being more particularly described as
follows:



Beginning at a mag nail found at the southeast corner of the Southeast Quarter in Indiana State
Highway No. 32;



Thence
North 89o50'43" West 1993.12 feet (bearing base established from State Plan Coordinates)
along the south line of said Southeast Quarter, Indiana State Highway No. 32, to a mag nail set,
witness an iron. rod set North 00o09'17" East 30.00 feet (all
iron rods set are 5/8" rebar with
plastic cap stamped “RLS 20400025”);



Thence
North 00o09'17" East 332.46 feet, to an iron rod set;



Thence
North 89°50'43" West 298.90 feet, to art iron rod set;



Thence
South 00o09'17" West 332.46 feet, to a mag nail set on the south line of said Southeast
Quarter, witness an iron rod set North 00o09'17" East 30.00 feet;



Thence
North, 89o50'3" West 502.27 feet, along said south line, in said highway, to a mag nail
found at said southwest corner of said Southeast Quarter, witness a concrete post found North
01o31'35" East 30.52 feet;



Thence
North 01o31'35" East 2649.53 feet along the west line of said Southeast Quarter, to an.
iron rod set at the northwest corner of said Quarter (all iron rods
set are 5/8" rebar with
plastic cap stamped “RLS 20400025”);



Thence
North. 01o31'35" East 378.81 feet along the west line of said Northeast Quarter, to an
iron rod set on the south right-of-way of the New ‘1°c-irk Central Lines Railroad;



Thence
North 77o15'15' East 2775.43 feet along said south right-of-way, to a mag nail set on
the east line of said Northeast Quarter, in Randolph County Road 600 East, witness a concrete
end post found South 77o15'15" West 21.33 feet;



Thence
South 00o40'05" West 1012.22 feet along the east line of said Northeast Quarter, in said
County Road to an iron rod found at the southeast comer of said Northeast Quarter;



Thence
South 00°23'58" West 2635.04 feet along the east line of said Southeast Quarter, in said
road, to the point of beginning, containing 207.623 acres, more or less, there being 43.128
acres, more or less, in the Northeast Quarter and 164.495 acres, more or less, in the Southeast Quarter.


 


 









 





Tract II, containing 87.598 acres




Situated in the Northwest and Southwest Quarters, both in Section 17, Township 20 North, Range 15
East, Wayne Township, Randolph County, Indiana, being more particularly described as follows:



Beginning at a mag nail found at the southeast corner of the Southwest Quarter, in Indiana State
Highway No.32, witness a concrete end post found North 01o31’35” East 30.52 feet;



Thence
North 89o42'11' West 1320.67 feet (bearing base established from State Plan Coordinates)
along the south line of said Southwest Quarter, in said State Highway, to a mag nail set at the
Southeast corner of a 63.39 acre tract as recorded in instrument 0002247, witness a concrete end
post found North 01o12'42" East 30.49 feet;



Thence
North 01o12'42" East 2652.77 feet along the east line of said 63.39 acre tract, to an iron
rod set on the North line of said Southwest Quarter;



Thence
North 01o12'42" East 64.26 feet, entering into the Northwest Quarter, to an iron rod set
on the south right-of-way of the New York Central Lines Railroad (al( iron rods set with plastic
cap stamped 7955);



Thence
North 77o15'15" East 1377.82 feet along said right-of-way, to at; iron rod set on the east
line of said Northwest Quarter;



Thence
South 01o31'35" West 378.81 feet along the east line of said Northwest Quarter, to an
iron rod set at the southeast corner of said carter;



Thence
South 01o31'35" West 2649.53 feet along the east line of said Southwest Quarter, to the
point of beginning, containing 87.598 acres, more in less, there being 80.807 acres, more or less,
in the Southwest Quarter and 6.791 acres, more or less, in the Northwest Quarter.