Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.23

FIRST AMENDMENT

TO

FIRST SUPPLEMENT

TO THE AMENDED AND RESTATED MASTER LOAN AGREEMENT

(DATED OCTOBER 17, 2007)

by and among

CENTRAL IOWA ENERGY, LLC

and

F & M BANK-IOWA

Dated

as of

October 17, 2007

 

 

 

FIRST AMENDMENT TO THE FIRST SUPPLEMENT

TO THE AMENDED AND RESTATED MASTER LOAN AGREEMENT

(CONSTRUCTION AND TERM LOAN)

THIS FIRST AMENDMENT to the FIRST SUPPLEMENT DATED AS OF October 17, 2007 (the “First
Amendment”), is between F & M BANK-IOWA (the “Lender”) and CENTRAL IOWA ENERGY, LLC, an Iowa
limited liability company (the “Borrower”), and amends that certain First Supplement to that
certain Amended and Restated Master Loan Agreement dated October 17, 2007, between the Lender and
the Borrower. In consideration of the premises herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending
to be legally bound, hereby agree as follows:

RECITALS

A. The Borrower and the Lender have previously entered into that certain First Supplement to
the Amended and Restated Master Loan Agreement dated October 17, 2007 by which the Lender agreed to
extend financial accommodations to the Borrower pursuant to the terms of the Amended and Restated
Master Loan Agreement and First Supplement to the Amended and Restated Master Loan Agreement (the
“MLA”).

B. The Borrower and Lender desire to make certain changes to the First Supplement upon the
terms and subject to the conditions set forth in this First Amendment.

AGREEMENT

NOW THEREFORE, in consideration of the facts set forth in these Recitals which the parties
agree are true and correct, and in consideration for entering into this First Amendment and the
related documents to be executed concurrently with or pursuant hereto, the parties agree as
follows:

1. Defined Terms. All terms used and not otherwise defined herein shall have the
meanings assigned to them in the MLA and the First Supplement.

2. Modification of First Supplement. Notwithstanding any of the provisions of the MLA
and the First Supplement, the First Supplement is amended as follows:

	 	a.	 	Paragraph #8(c) of the First Supplement is hereby amended and restated to read as
follows:

	 
	 	 	 	“Term Loan Payments. Beginning on the first (1st) day of
November 1, 2007, and continuing on the first (1st) day of each
succeeding month thereafter until the Maturity Date, the Borrower shall make
equal monthly payments of principal in such amounts as will be required to
fully amortize the entire outstanding principal of the Term Note, over a
period not to exceed ten (10) years from the Conversion Date, together with
accrued interest thereon. Following the Conversion Date, and in addition to
all other payments of principal and interest required under the MLA, the
Borrower shall annually remit to Lender the Excess Cash Flow Payment
pursuant to Section 11 of this First Supplement.”

 

 

 

3. Effect on First Supplement and MLA. Except as expressly amended by this First
Amendment, all of the terms of the First Supplement and the MLA shall be unaffected by this First
Amendment and shall remain in full force and effect. Nothing contained in this First Amendment
shall be deemed to constitute a waiver of any rights of the Lender or to affect, modify, or impair
any of the rights of the Lender as provided in the First Supplement or the MLA.

4. Representations and Warranties of Borrower. The Borrower hereby agrees with,
reaffirms, and acknowledges as follows:

	 	a.	 	The representations and warranties contained in the MLA, the
First Supplement and the Related Documents. Furthermore, the Borrower
represents that the representations and warranties contained in the MLA, the
First Supplement and the Related Documents continue to be true and correct and
in full force and effect.

	 
	 	b.	 	Borrower has the power and authority to execute, deliver, and
perform this First Amendment and any documents required under this First
Amendment and that all documents contemplated herein when executed and
delivered to Lender will constitute the valid, binding and legally enforceable
obligations of Borrower in accordance with their respective terms and
conditions, except as enforceability may be limited by any applicable
bankruptcy or insolvency laws.

{SIGNATURE PAGE TO FOLLOW}

 

 

 

SIGNATURE PAGE TO

FIRST AMENDMENT

TO

FIRST SUPPLEMENT

TO THE AMENDED AND RESTATED MASTER LOAN AGREEMENT

(DATED OCTOBER 17, 2007)

Dated: October 17, 2007

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed
and delivered as of the date and year first above written.

BORROWER:

CENTRAL IOWA ENERGY, LLC,

an Iowa limited liability company

	 	 	 	 	 
	By:

	 	/s/ James Johnston	 	 
	 

	 	 

   James Johnston
	 	 
	 

	 	   Its: Chairman	 	 
	 
	 	 	 	 
	F & M BANK-IOWA, a bank chartered
Under the laws of Iowa	 	 
	 
	 	 	 	 
	By:

	 	/s/ Daniel J. Hassman	 	 
	 

	 	 

   Daniel J. Hassman
	 	 
	 

	 	   Its: President	 	 

 

4Filed by Bowne Pure Compliance

 

Exhibit 10.24

AMENDED AND RESTATED THIRD SUPPLEMENT

TO THE AMENDED AND RESTATED MASTER LOAN AGREEMENT

(REVOLVING LINE OF CREDIT LOAN)

THIS AMENDED AND RESTATED THIRD SUPPLEMENT TO THE AMENDED AND RESTATED MASTER LOAN AGREEMENT
(this “Third Supplement”), dated as of October 17, 2007, is between F & M BANK-IOWA, a bank
chartered under the laws of Iowa (the “Lender”) and CENTRAL IOWA ENERGY, LLC, an Iowa limited
liability company (the “Borrower”), and supplements and incorporates all of the provisions of that
certain Amended and Restated Master Loan Agreement, dated as of even date herewith, between the
Lender and the Borrower (as the same may be amended, modified, supplemented, extended or restated
from time to time, the “MLA”).

In consideration of the events reflected in the recitals and commitments of the Lender and the
Borrower under the MLA, the Lender and Borrower agree as follows:

1. Definitions. As used in this Third Supplement, the following terms shall have the
following meanings. Capitalized terms used and not otherwise defined in this Third Supplement
shall have the meanings attributed to such terms in the MLA. Terms not defined in either this
Third Supplement or the MLA shall have the meanings attributed to such terms in the Uniform
Commercial Code, as enacted in the State of Iowa and as amended from time to time.

“Accounts” means all of the Borrower’s “Accounts”, as such term is defined in the
UCC, including, without limitation, the aggregate unpaid obligations of customers and other
account debtors to Borrower arising out of the sale or lease of goods or rendition of
services by Borrower on an open account or deferred payment basis. For purposes of
determining the Borrowing Base under this Third Supplement, “Accounts” shall include
Internal Revenue Service biodiesel blender tax credit receivables.

“Availability Date” shall have the meaning specified in Section 5 of this Third
Supplement.

“Borrowing Base” means, at any time, the lesser of: (a) $4,500,000.00; or (b)
commencing sixty days after start-up of operations, the sum of: (i) 75% of Borrower’s
Eligible Accounts Receivable; plus (ii) 50% of Borrower’s Eligible Inventory.

“Borrowing Base Certificate” means the certificate in the form of Exhibit A attached
hereto properly completed and duly executed by an authorized officer of the Borrower.

“Eligible Accounts Receivable” means all unpaid Accounts, net of any credits, except
the following shall not in any event be deemed Eligible Accounts:

(a) That portion of Accounts (other than Internal Revenue Service biodiesel
blender tax credit receivables) unpaid 30 days or more after the invoice date;

 

 

 

(b) That portion of Internal Revenue Service biodiesel blender tax credit
receivables unpaid 60 days or more after the appropriate filing is made with the
Internal Revenue Service;

(c) That portion of Accounts that is disputed or subject to a claim of offset or a
contra account;

(d) That portion of Accounts not yet earned by the final delivery of goods or
rendition of services, as applicable, by any Borrower to the customer;

(e) Accounts owed by any unit of government, whether foreign or domestic except
Incentive Payments will be considered a part of Eligible Accounts as defined in this
Agreement;

(f) Accounts owed by an account debtor located outside the United States;

(g) Accounts owed by an account debtor that is insolvent, the subject of bankruptcy
proceedings or has gone out of business;

(h) Accounts owed by a member, Guarantor, Affiliate, officer or employee of any
Borrower. Notwithstanding the foregoing and subject to all other exclusions listed
in the Eligible Accounts Receivable definition, Accounts owed to Borrower by REG,
Inc. arising out of the sale of biodiesel, glycerin and fatty acids produced by
Borrower at its bio-diesel production facility in Newton, Iowa, and sold to REG,
Inc. pursuant to that certain Management and Operational Services Agreement dated
August 22, 2006, as amended by that certain First Amendment to Management and
Operational Services Agreement dated on or before September 26, 2006 by and between
REG, Inc. and Borrower, will be deemed to be Eligible Accounts;

(i) Accounts not subject to a duly perfected security interest in the Lender’s
favor or which are subject to any lien, security interest or claim in favor of any
Person other than the Lender, including, without limitation, any payment or
performance bond;

(j) That portion of Accounts that has been restructured, extended, amended or
modified;

(k) That portion of Accounts that constitutes advertising, finance charges,
service charges or sales or excise taxes; and

(l) Accounts, or portions thereof, otherwise deemed ineligible by the Lender, in
its sole discretion, exercised reasonably.

 

 

 

“Eligible Inventory” means all inventory held for ultimate sale or lease, or which
has been or will be supplied under contracts of service, or which are raw materials, work in
process, or materials used or consumed in the Borrower’s business and that has been
specifically identified and accepted by the Lender, excluding all of the following
inventory:

	 	(a)	 	Covered by documents of title, instruments, or chattel paper
when these documents, instruments and paper are not owned and held by the
Borrower or are subject to competing claims, liens or encumbrances.

	 
	 	(b)	 	Intended to be sold outside of the ordinary course of business.

	 
	 	(c)	 	Consigned, sold or leased to others or on consignment or
lease from others or subject to a bailment.

	 
	 	(d)	 	Subject to a competing claim, lien or encumbrance.

	 
	 	(e)	 	Paid for in advance with progress payments or any other sums to
the Borrower in anticipation of the sale and delivery of inventory.

	 
	 	(f)	 	Obsolete or unusable in the ordinary course of business.

	 
	 	(g)	 	Inventory of work in progress.

	 
	 	(h)	 	Inventory that the Lender, in its reasonable discretion,
disqualifies as Eligible Inventory.

“Incentive Payments” means any and all federal or state governmental subsidies,
payments, transfers or other benefits, whether now or hereafter established, received by the
Borrower in any fiscal year aged less than 120 days.

“Maximum Rate” shall have the meaning specified in Section 8 of this Third
Supplement.

“Monthly Payment Date” means the first (1st) day of each calendar month.

“Outstanding Credit” means, at any time of determination, the aggregate amount of
Advances then outstanding under this Third Supplement and the Revolving Line of Credit Note.

“Outstanding Revolving Advance” means the total Outstanding Credit under this Third
Supplement and the Revolving Line of Credit Note.

“Request for Advance” shall have the meaning specified in Section 6(a) of this Third
Supplement.

“Revolving Advance” means an advance under this Third Supplement and the Revolving
Line of Credit Note.

“Revolving Letters of Credit” shall have the meaning specified in Section 7.

 

 

 

“Revolving Letter of Credit Liabilities” means, at any time, the aggregate maximum
amount available to be drawn under all outstanding Revolving Letters of Credit (in each
case, determined without regard to whether any conditions to drawing could then be met) and
all unreimbursed drawings under Revolving Letters of Credit.

“Revolving Line of Credit Loan” shall have the meaning specified in Section 2 of
this Third Supplement.

“Revolving Line of Credit Commitment” shall have the meaning specified in Section 2
of this Third Supplement.

“Revolving Line of Credit Loan Maturity Date” shall have the meaning specified in
Section 2 of this Third Supplement.

“Revolving Line of Credit Loan Termination Date” shall have the meaning specified in
Section 2 of this Third Supplement.

“Unused Commitment Fee” shall have the meaning specified in Section 6(d) of this
Third Supplement.

2. Revolving Line of Credit Commitment. On the terms and conditions set forth in the
MLA and this Third Supplement, Lender agrees to make one or more advances (collectively, the
“Revolving Line of Credit Loan”) to the Borrower, during the period beginning on the Availability
Date (as defined in Section 5 of this Third Supplement) and ending on the Business Day immediately
preceding the Revolving Line of Credit Loan Maturity Date (as hereinafter defined in this Section
2) (the “Revolving Line of Credit Termination Date”), in an aggregate principal amount outstanding
at any one time not to exceed $4,500,000.00 (the “Revolving Line of Credit Commitment”) provided,
however, that at no time shall the Outstanding Revolving Advance exceed the Borrowing Base. The
Revolving Loan Commitment shall expire at 12:00 noon Central time on October 14, 2008 (the
“Revolving Line of Credit Loan Maturity Date”). Subject to Section 7 of this Third Supplement,
under the Revolving Loan Commitment amounts borrowed and repaid or prepaid may be re-borrowed at
any time prior to and including the Revolving Line of Credit Termination Date.

3. Purpose. The purposes for which advances under the Loan may be used are for
general corporate and operating purposes of the Borrower and its subsidiaries, including closing
costs and fees associated with the Revolving Line of Credit Loan. The Borrower agrees that the
proceeds of the Loan are to be used only for the purposes set forth in this Section 3.

4. Repayment of the Revolving Line of Credit Loan. The Borrower will pay accrued
interest on the Revolving Line of Credit Loan on the first (1st) day of each month,
commencing on the first (1st) Monthly Payment Date following the date on which the first
Advance is made on the Revolving Line of Credit Loan, and continuing on each Monthly Payment Date
thereafter until the Revolving Line of Credit Loan Maturity Date. On the Revolving Line of Credit
Loan Maturity Date, the amount of the then unpaid principal balance of the Revolving Line of Credit
Loan and any and all other amounts due and owing hereunder or under any other Loan Document
relating to the Revolving Line of Credit Loan will be due and
payable. If any Payment Date is not a Business Day, then the principal installment then due shall
be paid on the next Business Day and shall continue to accrue interest until paid.

 

 

 

5. Availability. Subject to the provisions of the MLA and this Third Supplement,
during the period commencing on the date on which all conditions precedent to the initial advance
under the Revolving Line of Credit Loan are satisfied (the “Availability Date”) and ending on the
Revolving Line of Credit Loan Termination Date, advances under the Revolving Line of Credit Loan
will be made as provided in this Third Supplement.

6. Making the Advances. 

(a) Revolving Advances. Each Revolving Advance shall be made, on notice from the
Borrower (a “Request for Advance”) to the Lender delivered before 12:00 Noon (Minneapolis,
Minnesota time) on a Business Day which is at least three (3) Business Days prior to the date of
such Revolving Advance specifying the amount of such Revolving Advance, provided that, no
Revolving Advance shall be made while an Event of Default exists or if the interest rate for such
LIBOR Rate Loan would exceed the Maximum Rate. Any Request for Advance applicable to a Revolving
Advance received after 12:00 Noon (Minneapolis, Minnesota time) shall be deemed to have been
received and be effective on the next Business Day. The amount so requested from the Lender shall,
subject to the terms and conditions of this Third Supplement, be made available to the Borrower by:
(i) depositing the same, in same day funds, in an account of the Borrower; or (ii) wire
transferring such funds to a Person or Persons designated by the Borrower in writing.

(b) Requests for Advances Irrevocable. Each Request for Advance shall be irrevocable
and binding on the Borrower and the Borrower shall indemnify the Lender against any loss or expense
it may incur as a result of any failure to borrow any Advance after a Request for Advance
(including any failure resulting from the failure to fulfill on or before the date specified for
such Advance the applicable conditions set forth in this Third Supplement and the MLA), including,
without limitation, any loss (including loss of anticipated profits) or expense incurred by reason
of the liquidation or reemployment of deposits or other funds acquired by the Lender to fund such
Advance when such Advance, as a result of such failure, is not made on such date.

(c) Minimum Amounts. Each Revolving Advance shall be in a minimum amount equal to
$50,000.00.

(d) Unused Commitment Fee. In addition to fees payable on the Closing Date, Borrower
agrees to pay to the Lender an Unused Commitment Fee on the average daily unused portion of such
Lender’s commitment under the Revolving Line of Credit Loan from the Availability Date until the
Revolving Line of Credit Loan Maturity Date at the rate of 0.35% per annum, payable in arrears in
quarterly installments payable on the first (1st) day of each third month after the
Availability Date.

(e) Conditions Precedent to All Advances. The Lender’s obligation to make each
Advance under the Revolving Line of Credit Note shall be subject to the terms,
conditions and covenants set forth in the MLA and this Third Supplement, including, without
limitation, the following further conditions precedent:

 

 

 

(i) Completion of Project. The Project shall have been completed per the Plans and
Specifications and a Completion Certificate shall have been obtained;

(ii) Repayment of Construction Loan. All obligations of the Borrower for the
Construction Loan shall have been paid in full (whether through conversion to a Term Loan pursuant
to MLA and the First Supplement or otherwise);

(iii) Representations and Warranties. The representations and warranties set forth in
the MLA and this Third Supplement are true and correct in all material respects as of the date of
the request for any Advance, except as disclosed in writing to the Lender, to the same extent and
with the same effect as if made at and as of the date thereof except as disclosed in writing to the
Lender;

(iv) No Defaults. The Borrower is not in default under the terms of the MLA, the
Related Documents or any other Material Contracts to which the Borrower is a party and which
relates to the construction of the Project or the operation of the Borrower’s business;

(v) Government Action. No license, permit, permission or authority necessary for the
construction or operation of the Project has been revoked or challenged by or before any
Governmental Authority;

(vi) Marketing Agreements. The Borrower has executed marketing agreements for all
biodiesel and glycerin to be produced at the Project and provided Lender with collateral
assignments of all such agreements in form and content which is satisfactory to Lender and its
counsel and acknowledged by the non-Borrower party to all such agreements; and

(vii) Intercreditor Agreement. Notwithstanding anything to the contrary in the Loan Documents,
Lender shall not be obligated to make any advance to the Borrower or issue any Letter of Credit
that would cause the Outstanding Revolving Advances to exceed $2,000,000.00 until such time as an
intercreditor and subordination agreement between the Lender and the County of Jasper, Iowa, in
form acceptable to the Lender, has been executed and delivered to the Lender.

7. Letters of Credit.

Commitment to Issue. The Borrower may request Revolving Advances by the Lender, and
the Lender, subject to the terms and conditions of this Third Supplement, may, in its sole
discretion, issue letters of credit for any Borrower’s account (such letters of credit, being
hereinafter referred to collectively as the “Revolving Letters of Credit”); provided, however,
that:

(i) the aggregate amount of outstanding Revolving Letter of Credit Liabilities shall not at
any time exceed the amount of $500,000.00;

 

 

 

(ii) the sum of the outstanding Revolving Letters of Credit plus the Outstanding Revolving
Advances shall not at any time exceed the Borrowing Base;

(iii) the expiration date of a Revolving Letter of Credit advanced under the Revolving Line of
Credit Loan shall be no later than the Revolving Line of Credit Loan Maturity Date.

Any Revolving Letters of Credit issued under this Section 7 are subject to the provisions of
Section 2.06 of the MLA.

8. Interest Rate. Subject to the provisions of Sections 2.07 and 2.08 of the MLA and
Section 9 and 11 of this Third Supplement, the Revolving Line of Credit Loan shall bear interest at
a rate equal to the LIBOR Rate plus 325 basis points. The computation of interest, amortization,
maturity and other terms and conditions of the Revolving Line of Credit Loan shall be as provided
in the Revolving Line of Credit Note, provided, however, in no event shall the applicable rate
exceed the maximum nonusurious interest rate, if any, that at any time, or from time to time, may
be contracted for, taken, reserved, charged, or received under applicable state or federal laws
(the “Maximum Rate”).

9. Default Interest. In addition to the rights and remedies set forth in the MLA:
(i) if the Borrower fails to make any payment to Lender when due, then at Lender’s option in each
instance, such obligation or payment shall bear interest from the date due to the date paid at 2%
per annum in excess of the rate of interest that would otherwise be applicable to such obligation
or payment; (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 of the
Revolving Line of Credit Loan shall bear interest from the date of the Event of Default or such
later date as Lender shall elect at 2% per annum in excess of the rate(s) of interest that would
otherwise be in effect on the Revolving Line of Credit Loan under the terms of the Revolving Line
of Credit Note; (iii) after the maturity of the Revolving Line of Credit Loan, whether by reason of
acceleration or otherwise, the unpaid principal balance of the Revolving Line of Credit Loan
(including without limitation, principal, interest, fees and expenses) shall automatically bear
interest at 2% per annum in excess of the rate of interest that would otherwise be in effect on the
Revolving Line of Credit Loan under the terms of the Revolving Line of Credit Note. 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. Late Charge. If any payment of principal or interest due under this Third
Supplement or the Revolving Line of Credit Note is not paid within ten (10) days of the due date
thereof, the Borrower shall pay, in addition to such amount, a late charge equal to five percent
(5%) of the amount of such payment.

11. Changes in Law Rendering Certain LIBOR Rate Loans Unlawful. In the event that any
change in any applicable law (including the adoption of any new applicable law) or any change in
the interpretation of any applicable law by any judicial, governmental or other regulatory body
charged with the interpretation, implementation or administration thereof, should make it (or in
the good-faith judgment of the Lender should raise a substantial question as to whether it is)
unlawful for the Lender to make, maintain or fund LIBOR Rate Loans, then: (a)
the Lender shall promptly notify each of the other parties hereto; and (b) the obligation of the
Lender to make LIBOR rate loans of such type shall, upon the effectiveness of such event, be
suspended for the duration of such unlawfulness. During the period of any suspension, Lender shall
make loans to Borrower that are deemed lawful and that as closely as possible reflect the terms of
the MLA.

 

 

 

12. Maximum Amount Limitation. Anything in this MLA, this Third Supplement, or the
other Loan Documents to the contrary notwithstanding, Borrower shall not be required to pay
unearned interest on the Revolving Line of Credit Note or any of the Loan Obligations, or ever be
required to pay interest on the Revolving Line of Credit Note or any of the Loan Obligations at a
rate in excess of the Maximum Rate, if any. If the effective rate of interest which would
otherwise be payable under the MLA, this Third Supplement, the Revolving Line of Credit Note, or
any of the other Loan Documents would exceed the Maximum Rate, if any, then the rate of interest
which would otherwise be contracted for, charged, or received under the MLA, this Third Supplement,
the Revolving Line of Credit Note, or any of the other Loan Documents shall be reduced to the
Maximum Rate, if any. If any unearned interest or discount or property that is deemed to
constitute interest (including, without limitation, to the extent that any of the fees payable by
Borrower for the Loan Obligations to the Lender under the MLA, this Third Supplement, the Revolving
Line of Credit Note, or any of the other Loan Documents are deemed to constitute interest) is
contracted for, charged, or received in excess of the Maximum Rate, if any, then such interest in
excess of the Maximum Rate shall be deemed a mistake and canceled, shall not be collected or
collectible, and if paid nonetheless, shall, at the option of the holder of the Revolving Line of
Credit Note, be either refunded to the Borrower, or credited on the principal of the Revolving Line
of Credit Note. It is further agreed that, without limitation of the foregoing and to the extent
permitted by applicable law, all calculations of the rate of interest or discount contracted for,
charged or received by the Lender under the Revolving Line of Credit Note, or under any of the Loan
Documents, that are made for the purpose of determining whether such rate exceeds the Maximum Rate
applicable to the Lender, if any, shall be made, to the extent permitted by applicable laws (now or
hereafter enacted), by amortizing, prorating and spreading during the period of the full terms of
the Advances evidenced by the Revolving Line of Credit Note, and any renewals thereof all interest
at any time contracted for, charged or received by Lender in connection therewith. This section
shall control every other provision of all agreements among the parties to the MLA pertaining to
the transactions contemplated by or contained in the Loan Documents, and the terms of this section
shall be deemed to be incorporated in every Loan Document and communication related thereto.

13. Mandatory Prepayments or Collateralization. The Borrowers shall, within five (5)
days following the earlier of the delivery of each Borrowing Base Certificate hereof or the day
upon which such Borrowing Base Certificate was due, either (i) prepay the Advances in the amount,
if any, by which the Outstanding Credit on the date of prepayment under this Section 15 exceeds the
Borrowing Base at such time, together with accrued interest to the date of such prepayment on the
amount prepaid, or (ii) pledge and assign to the Lender additional collateral acceptable to the
Lender, in the Lender’s sole discretion, and deliver all documentation that the Lender, in its sole
discretion, may require in connection with such pledge and assignment and the perfection of a
first-priority security interest in such additional collateral, so that the Borrowing
Base plus the value assigned by the Lender, in its sole discretion, to such additional collateral
equals or exceeds the Outstanding Credit.

 

 

 

14. Reporting Requirements. In addition to the reporting requirements under Section
5.01(c) in the MLA, the Borrower will furnish to the Lender as soon as available and in any event
within 30 days after the end of each month (or at such other times or with such greater frequency
as is requested by the Lender), a duly completed Borrowing Base Certificate, setting forth the
Borrowing Base as of the last day of such month calculated based upon collateral value criteria and
advance rates which do not exceed those set forth in the Borrowing Base Certificate, and including
such other information, representation and warranties contemplated therein, certified by the
appropriate authorized officer of the Borrower.

15. Security. The Borrower’s obligations hereunder and, to the extent related
thereto, the MLA, shall be secured as provided in the MLA.

IN WITNESS WHEREOF, the parties have caused this Third Supplement to the Amended and Restated
Master Loan Agreement to be executed by their duly authorized officers as of the date shown above.

	 	 	 	 	 
	 	 	CENTRAL IOWA ENERGY, LLC

an Iowa limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	/s/ James Johnston
	 

	 	 	 	 
	 

	 	Name:
	 	James Johnston
	 

	 	Title:
	 	Chairman
	 
	 	 	 	 
	 	 	F & M BANK-IOWA, a bank chartered under the laws of Iowa
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Daniel J. Hassman
	 

	 	 	 	 
	 

	 	Name:
	 	Daniel J. Hassman
	 

	 	Its:
	 	President

 

 

 

EXHIBIT A

BORROWING BASE CERTIFICATE

Detailed Calculation

Date:                     
____,                    

	 	 	 	 	 	 	 	 	 	 	 
	1	 	Accounts Receivable:
	 	 	 	 	 	 	 	 
	 	 	                    (biodiesel)
	 	$	 	 	 	 	 	 
	 	 	                     (glycerin)
	 	$	 	 	 	 	 	 
	 	 	                     IRS Biodiesel Tax Credit Receivables
	 	$	 	 	 	 	 	 
	 	 	Other
	 	$	 	 	 	 	 	 
	 	 	Other
	 	$	 	 	 	 	 	 
	 	 	Total
	 	$	 	 	 	 	 	 
	 	 	Deduct Ineligible Accounts
	 	$	 	 	 	 	 	 
	 	 	(30 days or more from invoice date)
	 	 	 	 	 	 	 	 
	 	 	(60 days or more from filing date for Internal
Revenue Service biodiesel tax credit
receivables)
	 	 	 	 	 	 	 	 
	 	 	Deduct Ineligible Accounts
	 	$	 	 	 	 	 	 
	 	 	     (as determined by Bank)
	 	 	 	 	 	 	 	 
	 	 	Eligible Accounts Receivable
	 	$	 	 	 	 	 	 
	 	 	Multiply by Borrowing Base Factor
	 	 	75.00	%	 	 	 	 
	 	 	Accounts Receivable Loan Availability
	 	 	 	 	 	$	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	2	 	Glycerin (current value)
	 	 	 	 	 	 	 	 
	 	 	Ending soybean oil Inventory
	 	$	 	 	 	 	 	 
	 	 	Ending
Glycerin & other bi-products Inventory
	 	$	 	 	 	 	 	 
	 	 	Total Inventory
	 	 	 	 	 	 	 	 
	 	 	Multiply by Borrowing Base Factor
	 	 	50.00	%	 	 	 	 
	 	 	Inventory Loan Availability
	 	 	 	 	 	$	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	3	 	Biodiesel Inventories (lower of cost or market)
	 	 	 	 	 	 	 	 
	 	 	Ending Biodiesel Inventory
	 	$	 	 	 	 	 	 
	 	 	Ending                      Inventory
	 	$	 	 	 	 	 	 
	 	 	Other Inventory
	 	 	 	 	 	 	 	 
	 	 	Total Inventory
	 	$	 	 	 	 	 	 
	 	 	Multiply by Borrowing Base Factor
	 	 	50.00	%	 	 	 	 
	 	 	Inventory Loan Availability
	 	$	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	4	 	Total Borrowing Base (Totals from #1, #2, & #3)
	 	 	 	 	 	$	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	5	 	Outstanding Loan Balance (as of month end)
	 	$	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	6	 	Margin (Line 4 minus Line 5)
	 	 	 	 	 	$

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}]]