REG Newton, LLC Revolving Line of Credit Note


 Exhibit 10.4 

REVOLVING LINE OF CREDIT NOTE 
  

			
	 $2,350,000.00
	  	March 8, 2010

 1. FOR
VALUE RECEIVED, REG NEWTON, LLC, an Iowa limited liability company (the “Borrower”), hereby promises to pay to the order of AGSTAR FINANCIAL SERVICES, PCA, a United States instrumentality (the “Lender”), the
principal sum of Two Million Three Hundred Fifty Thousand and No/100ths ($2,350,000.00) Dollars, or so much thereof as may be advanced to, or for the benefit of, the Borrower and be outstanding, with interest thereon, to be computed on each advance
from the date of its disbursement as set forth herein pursuant to that certain Master Loan Agreement of even date herewith by and between the Lender and the Borrower, as the same may be amended, modified, supplemented, extended or restated from time
to time (the “MLA”), and pursuant to that certain Second Supplement to the MLA, of even date herewith, by and between the Lender and the Borrower, as the same may be amended, modified, supplemented, extended or restated from time to
time (the “Second Supplement”), and which remains unpaid, in lawful money of the United States and immediately available funds. This Revolving Line of Credit Note (the “Note”) is issued pursuant to the terms and
provisions of the MLA and the Second Supplement and is entitled to all of the benefits provided for in the MLA and the Second Supplement. Amounts borrowed and repaid or prepaid under this Note, other than amounts attributable to the Acquisition
Advance, may be re-borrowed at any time prior to and including the Revolving Line of Credit Termination Date, provided, however, that at no time shall the total outstanding principal balance of this Note exceed the unpaid principal balance of the
Acquisition Advance plus the Borrowing Base or $2,350,000.00. All capitalized terms used and not defined herein shall have the meanings assigned to them in the MLA and the Second Supplement. 

2. The outstanding principal balance of this Note shall bear interest at a variable rate determined by Lender to be three percent
(3.00%) above the Applicable Rate in effect on the date of the first Advance pursuant to this Note. Notwithstanding the foregoing, the rate of interest under this Note shall be adjusted by Lender pursuant to the provisions of the MLA, the
Second Supplement and this Note. 
 3. The rate of interest due hereunder shall initially be determined as of the date hereof
and, in addition to any other adjustments pursuant to the provisions of the MLA and this Note, shall thereafter be adjusted, as and when, the LIBOR Rate changes. All such adjustments to the rate of interest shall be made and become effective as of
the first day of each Interest Period following the date of any change in the LIBOR Rate and shall remain in effect until and including the last day of each Interest Period. Interest on the outstanding principal balance of this Note shall be
computed on the basis of a year of three hundred sixty-five (365) days and charged for a year of 365 days. 
 4.
Notwithstanding anything to the contrary in the MLA, the Second Supplement and this Note, no advances will be made to the Borrower under this Note until the Availability Date as specified in the Second Supplement. 

5. Beginning on the first
(1st) day of the first calendar month following the
Availability Date and continuing on the first
(1st) day of each succeeding month thereafter until
the Revolving Line of Credit Loan Maturity Date, the Borrower shall make monthly payments of accrued interest. 
 6. The
outstanding principal balance hereof, together with all accrued interest, if not paid sooner, shall be due and payable in full on March 7, 2011 (the “Revolving Line of Credit Loan Maturity Date”). 






 7. All payments and prepayments shall, at the option of the Lender, be applied first to any
costs of collection, second to any late charges, third to accrued interest and the remainder thereof to principal. 
 8. This
Note may be prepaid at any time, at the option of the Borrower, either in whole or in part, subject to the obligations of the Borrower to compensate the Lender for any loss, cost or expense as a result of such prepayment as set forth in the MLA and
the Second Supplement. This Note is subject to mandatory prepayment, at the option of the Lender, as provided in Articles II and VI of the MLA and Section 12 of the Second Supplement. 

9. In addition to the rights and remedies set forth in the MLA and the Second Supplement: (i) if the Borrower fails to make any
payment to Lender when due under this Note, then at Lender’s option in each instance, such obligation or payment shall bear interest from the date due to the date paid at the applicable Default Rate; (ii) upon the occurrence and during the
continuance of an Event of Default beyond any applicable cure period, if any, at Lender’s option in each instance, the unpaid balances under this Note shall bear interest from the date of the Event of Default or such later date as Lender shall
elect at the applicable Default Rate; (iii) after the Revolving Line of Credit Loan Maturity Date, whether by reason of acceleration or otherwise, the unpaid principal balance of this Note (including without limitation, principal, interest,
fees and expenses) shall automatically bear interest at the applicable Default Rate. Interest payable at the Default Rate shall be payable from time to time on demand or, if not sooner demanded, on the last day of each calendar month. 

10. If the Borrower fails to make any payment to Lender within ten (10) days of the due date thereof (including, without limitation,
any purchase of equity of Lender when required), the Borrower shall pay, in addition to such amount, a late charge equal to five percent (5%) of the amount of such payment. 

11. This Note is secured by, among other instruments, that certain Mortgage of even date herewith, as it may be amended, modified,
supplemented, extended or restated from time to time (the “Mortgage”), covering various parcels of real property, fixtures, and personal property located in Jasper County, Iowa, and that certain Security Agreement of even date herewith, as
it may be amended, modified, supplemented, extended or restated from time to time . In the event any such security is found to be invalid for whatever reason, such invalidity shall constitute an event of default hereunder. All of the agreements,
conditions, covenants, provisions, and stipulations contained in the Mortgage, or any instrument securing this Note are hereby made a part of this Note to the same extent and with the same force and effect as if they were fully set forth herein. It
is agreed that time is of the essence of this Note. 
 12. Upon the occurrence at any time of an Event of Default or at any time
thereafter, the outstanding principal balance hereof plus accrued interest hereon plus all other amounts due hereunder shall, at the option of the Lender, be immediately due and payable, without notice or demand and Lender shall be entitled to
exercise all remedies provided in this Note, the MLA, the Second Supplement, or any of the Loan Documents. 
 13. Upon the
occurrence at any time of an Event of Default or at any time thereafter, the Lender shall have the right to set off any and all amounts due hereunder by the Borrower to the Lender against any indebtedness or obligation of the Lender to the Borrower.

  

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 14. The Borrower promises to pay all reasonable costs of collection of this Note, including,
but not limited to, reasonable attorneys’ fees paid or incurred by the Lender on account of such collection, whether or not suit is filed with respect thereto and whether or not such costs are paid or incurred, or to be paid or incurred, prior
to or after the entry of judgment. 
 15. Demand, presentment, protest and notice of nonpayment and dishonor of this Note are
hereby waived. 
 16. This Note shall be governed by and construed in accordance with the laws of the State of Minnesota.

 17. The Borrower hereby irrevocably submits to the jurisdiction of any Minnesota state court or federal court over any action
or proceeding arising out of or relating to this Note, the MLA and any instrument, agreement or document related hereto or thereto, and the Borrower hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and
determined in such Minnesota state or federal court. The Borrower hereby irrevocably waives, to the fullest extent it may effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding. Nothing in this Note
shall affect the right of the Lender to bring any action or proceeding against the Borrower or its property in the courts of any other jurisdiction to the extent permitted by law. 

 

			
	REG NEWTON, LLC, an Iowa limited liability company
	
	 /s/ Daniel J. Oh

	By:	 	Daniel J. Oh
	  Its:	 	President


  

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