exv10w12



 





Exhibit 10.12




AMENDMENT NO. 1 TO

THIRD SUPPLEMENT TO THE MASTER LOAN AGREEMENT

(TERM LOAN)




     This Amendment No. 1 to Third Supplement to the Master Loan Agreement (Term Loan) (this
“Amendment”) is effective as of October 19, 2007, by and between US BIO ALBERT CITY, LLC, an Iowa
limited liability company (“Borrower”) and AGSTAR FINANCIAL SERVICES, PCA (“Lender”).



RECITALS




     A. Lender has extended various credit facilities to Borrower for the purposes of acquiring,
constructing, equipping, furnishing and operating an ethanol production facility in Buena Vista
County, Iowa, pursuant to that certain Master Loan Agreement dated as of November 15, 2005 (as
amended by that certain Amendment No.1 and Waiver to Master Loan Agreement dated as of July 31,
2006, and by that certain Amended and Restated Master Loan Agreement dated as of February 26, 2007)
(as amended, the “MLA”); First Supplement to the Master Loan Agreement (Construction Loan) dated as
of November 15, 2005 (as amended by that certain Amendment No.1 to Amended and Restated First
Supplement to Master Loan Agreement dated as of July 31, 2006, by that certain Amended and Restated
First Supplement to the Master Loan Agreement (Construction Loan) dated as of January 24, 2006, and
by that certain Second Amended and Restated First Supplement to the Amended and Restated Master
Loan Agreement (Construction Loan) dated as of February 26, 2007) (as amended, the “First
Supplement”); Second Supplement to the Master Loan Agreement (Revolving Loan) dated as of November
15, 2005 (the “Second Supplement”); Third Supplement to the Master Loan Agreement (Term Loan) dated
as of February 26, 2007 (the “Third Supplement”); and Fourth Supplement to the Master Loan
Agreement (Term Revolving Loan) dated as of February 26, 2007 (the “Fourth Supplement”). The MLA,
First Supplement, Second Supplement, Third Supplement and Fourth Supplement are referred to
collectively hereinafter as the “Loan Agreement”).



     B. Borrower has requested Lender amend certain provisions of the Loan Agreement, and Lender
has agreed to such amendments upon the terms and conditions set forth herein.



     C. Unless otherwise expressly defined herein, capitalized terms used herein shall have the
same meaning ascribed to them in the MLA.



AGREEMENT




     NOW, THEREFORE, in consideration of the premises herein contained, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto herby agree as follows:



 









 




1. Amendment to Third Supplement. The following shall be added as section 18 of the Third
Supplement:





Excess Cash Flow. In addition to all other payments of principal and
interest required under this Agreement, at the end of the first full fiscal quarter
following the Conversion Date, and continuing each fiscal quarter thereafter until
the Maturity Date, Borrower shall remit to Lender within five (5) days of delivery
of the Financial Statements used to calculate the applicable Excess Cash Flow, an
amount equal to one hundred percent (100%) of Borrower’s Excess Cash Flow,
calculated based upon, with respect to the first three fiscal quarters of each
fiscal year of Borrower, that fiscal quarter’s interim Financial Statements, on or
before sixty (60) days after the end of each such fiscal quarter of Borrower and,
with respect to the fourth fiscal quarter of Borrower, the annual Financial
Statements of Borrower required to be delivered pursuant to Section 5.01(c)(i) of
the MLA, on or before one hundred and twenty (120) days after the end of each fiscal
year of Borrower (the “Excess Cash Flow Payment”), provided however, that the total
Excess Cash Flow Payments required hereunder shall not exceed One Million Two
Hundred Fifty Thousand and No/100 Dollars ($1,250,000.00) in any fiscal quarter or
Five Million and No/100 Dollars ($5,000,000.00) in any fiscal year (the “Maximum
Excess Cash Flow Payment”). One hundred percent (100%) of the Excess Cash Flow
Payment shall be applied to the reduction of the outstanding principal balance of
the Term Loan in the inverse order of maturity. The Excess Cash Flow Payment shall
be re-calculated annually based upon fiscal year-end Financial Statements required
by Section 5.01(c)(i) of the MLA. If any such recalculation evidences an
underpayment by Borrower for such fiscal year, then any time after the annual
Financial Statements are required to be delivered pursuant to Section 5.01(c)(i) of
the MLA, Borrower shall within thirty (30) days of Lender’s request remit to Lender
any additional amounts, resulting from such underpayment, to Lender under this
Section in an amount not to exceed the Maximum Excess Cash Flow Payment. If any
such recalculation by Borrower or Lender evidences an overpayment by Borrower for
such fiscal year, Borrower may reduce its next Excess Cash Flow Payment due by the
amount of such overpayment until the entire overpayment is applied. Any Excess Cash
Flow Payment or any other payment from Excess Cash Flow shall not constitute a
prepayment with respect to which a prepayment fee under Section 2.10 of the MLA is
required to be paid. Notwithstanding the foregoing, the requirement to make an
Excess Cash Flow Payment for any fiscal quarter shall not apply if Borrower’s
Owner’s Equity is greater than or equal to sixty percent (60%), but will be
reinstated if Owner’s Equity falls below sixty percent (60%), in each case measured
for such fiscal quarter or year end, as the case may be.


2. Conditions to Effectiveness of this Amendment. This Amendment shall become effective as
of the date hereof upon the satisfaction of the conditions precedent that Lender shall have
received, on or before the date hereof, executed counterparts of this Amendment, duly executed by
each of the parties hereto, and an executed Consent and Reaffirmation of Guaranty in the form
attached hereto as Exhibit A, duly executed by the Guarantor.




 









 







3. Representations and Warranties. Borrower hereby represents to Lender that, after giving
effect to this Amendment:




     (a) All of the representations and warranties of Borrower contained in the MLA and in each
other Loan Document are true and correct in all material respects as though made on and as of the
date hereof.



     (b) As the date hereof, except as otherwise specifically stated herein, no Event of Default
has occurred and is continuing.



4. Miscellaneous.




     (a) Effect; Ratification. The amendments set forth herein are effective solely for
the purposes set forth herein and shall be limited precisely as written, and shall not be deemed to
(i) be a consent to, or an acknowledgment of, any amendment, waiver or modification of any other
term or condition of the Loan Agreement or (ii) prejudice any right or remedy which Lender may now
have or may have in the future under or in connection with the Loan Agreement, as amended hereby,
or any other instrument or agreement referred to therein. Each reference in the Loan Agreement and
in other Loan Document to the “Third Supplement” shall mean the Third Supplement, as amended hereby



     (b) Loan Documents. This Amendment is a Loan Document executed pursuant to the MLA
and shall be construed, administered and applied in accordance with the terms and provisions
thereof.



     (c) Counterparts. This Amendment may be executed in any number of counterparts, each
such counterpart constituting an original and all of which when taken together shall constitute one
and the same instrument.



     (d) Severability. Any provision contained in this Amendment which is held to be
inoperative, unenforceable or invalid in any jurisdiction shall, as to that jurisdiction, be
inoperative, unenforceable or invalid without affecting the remaining provisions of this Amendment
in that jurisdiction or the operation, enforceability or validity of such provision in any other
jurisdiction.



     (e) GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF MINNESOTA.



     (f) WAIVER OF JURY TRIAL. THE BORROWER AND THE LENDER HEREBY IRREVOCABLY WAIVE ALL
RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO ANY
LOAN DOCUMENT TO WHICH IT IS A PARTY OR ANY INSTRUMENT OR DOCUMENT DELIVERED THEREUNDER.



{SIGNATURE PAGE FOLLOWS}




 









 








SIGNATURE PAGE TO




AMENDMENT NO. 1 TO

THIRD SUPPLEMENT TO THE MASTER LOAN AGREEMENT

(TERM LOAN)




BY AND BETWEEN

US BIO ALBERT CITY, LLC

AND

AGSTAR FINANCIAL SERVICES, PCA




DATED: October 19, 2007




     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered
by their respective duly authorized officers as of the date first written above.



	 	 	 	 	 
	BORROWER:	 	 
	 
	 	 	 	 
	US BIO ALBERT CITY, LLC,	 	 
	an Iowa limited liability company	 	 
	 
	 	 	 	 
	By:

	 	/s/ Kelly S. Langley
 

      Kelly S. Langley
	 	 
	 

	 	      Its: Treasurer	 	 
	 
	 	 	 	 
	LENDER:	 	 
	 
	 	 	 	 
	AGSTAR FINANCIAL SERVICES, PCA,	 	 
	a United States corporation	 	 
	 
	 	 	 	 
	By:

	 	/s/ Mark Schmidt
 

      Mark Schmidt
	 	 
	 

	 	      Its: Vice President	 	 






 









 






EXHIBIT A




CONSENT AND REAFFIRMATION OF GUARANTY




     The undersigned, US BioEnergy Corporation, hereby:



     (i) consents to the modifications set forth in: (a) that certain Amendment No. 1 to Amended
And Restated Master Loan Agreement effective as of October 19, 2007; (b) that certain Amendment No.
1 to Second Supplement to the Master Loan Agreement effective as of October 19, 2007; (c) that
certain Amendment No. 1 to Third Supplement to the Master Loan Agreement effective as of October
19, 2007; (d) that certain Allonge to the Term Note effective as of October 19, 2007; (e) that
certain Amendment No. 1 to Fourth Supplement to the Master Loan Agreement effective as of October
19, 2007; and (f) that certain Allonge to the Term Revolving Note effective as of October 19, 2007;
and



     (ii) reaffirms the guaranty of the undersigned, as set forth in that certain Amended and
Restated Continuing Guaranty made as of February 26, 2007, by the undersigned for the benefit of
Lender, is and shall remain in full force and effect.



	 	 	 	 	 	 	 
	 	 	US BIOENERGY CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kelly S. Langley	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Kelly S. Langley	 	 
	 	 	Its: Treasurer