Document:

EXHIBIT 10.3

 

SECOND AMENDMENT TO

FORBEARANCE AGREEMENT

 

THIS SECOND AMENDMENT TO FORBEARANCE AGREEMENT (this “Amendment”) is made as of this 1st day March, 2011 (the “Effective Date”), between HERON LAKE BIOENERGY, LLC, a Minnesota limited liability company (“Borrower”), and AGSTAR FINANCIAL SERVICES, PCA, a United States instrumentality (“Lender”).

 

RECITALS

 

A.            The Borrower and the Lender have previously entered into a Forbearance Agreement dated as of July 2, 2010, and a First Amendment to Forbearance Agreement dated December 31, 2010 (collectively, the “Forbearance Agreement”), which provided for a forbearance period which expires on March 1, 2011.

 

B.            The Borrower has requested an extension of the Forbearance Period (as defined in the Forbearance Agreement), and the Lender is willing to grant such an extension upon the terms and conditions set forth in this Amendment.

 

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

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the facts set forth in the foregoing Recitals, which the parties agree are true and correct, and in consideration for entering into this Amendment, the parties hereto agree as follows:

 

1.             Amendments to Forbearance Agreement.

 

a.             Section 3 of the Forbearance Agreement is amended, restated and replaced in its entirety by the following:

 

3.             Forbearance Period. Provided that the Conditions Precedent set forth below have first been satisfied and Borrower complies with the terms of this Agreement, the Lender agrees it will not declare a default under the Loan Documents or enforce any remedies available to it under the Loan Documents or applicable law on account of the Borrower’s default beginning on the Effective Date, and ending on the later of (i) April 1, 2011 or (ii) the occurrence of an Event of Default (as defined below), but in any case no later than May 1, 2011 (the “Forbearance Period”).

 

b.             The following subsection shall be added to Section 11 of the Forbearance Agreement and shall be included as additional “Events of Default” as used in therein:

 

 

e.             Delivery of Final Restructuring Proposal.  Borrower shall have failed to deliver on or before March 10, 2011, a final detailed proposal and request for restructuring of the Loans extended to Borrower by Lender under the Loan Agreement, Notes and related Loan Documents; which proposal and timeline to complete such proposal shall be in form and substance acceptable to the Lender, and shall provide as much detail as Lender may request in its sole discretion.

 

2.             Conditions Precedent. As conditions precedent to the Lender’s continuing forbearance under the Forbearance Agreement, as set forth in the preceding paragraph, the following shall have been executed and/or delivered to the Lender:

 

a.             the Borrower shall have executed and delivered to the Lender this Amendment and any other documents and agreements ancillary or incident hereto;

 

b.             the Borrower shall have obtained and delivered to the Lender any and all further documentation reasonably requested by the Lender; and

 

c.             the Borrower shall have paid to Lender fifty percent (50%) of the Deferred Interest pursuant to Section 5 of the Forbearance Agreement, and all other costs and expenses incurred by Lender in connection with the execution of this Amendment, including, without limitation, reasonable attorneys’ fees.

 

3.             Effect of Amendment. Except as expressly provided in this Amendment, the Forbearance Agreement, Loan Agreement, Notes, Mortgage and Security Agreement remain in full force and effect in accordance with their respective terms, and this Amendment shall not be construed to: (i) impair the validity, perfection or priority of any security interest or lien securing the Loans; (ii) waive or impair any rights, powers or remedies of the Lender under the Forbearance Agreement, Loan Agreement, Notes, Mortgage or Security Agreement; or (iii) constitute an agreement by the Lender or require it to extend the Forbearance Period, or grant additional forbearance periods.

 

4.             Representations and Warranties. The Borrower represents and warrants to Lender as follows:

 

a.             Borrower. The Borrower is a limited liability company duly organized and validly existing and in good standing under the laws of the State of Minnesota and is qualified to do business in all jurisdictions in which the nature of its business makes such qualification necessary and where failure to so qualify would have a Material Adverse Effect on its respective financial condition or operations. The Borrower has the power and authority to own and operate its assets and to carry on its business and to execute, deliver, and perform its obligations under the Loan Documents, the Forbearance Agreement, and this Amendment.

 

 

b.             Execution. The execution, delivery and performance by the Borrower of this Amendment is within the Borrower’s powers, has been duly authorized by all necessary action, does not contravene: (i) the articles of organization or operating agreements of the Borrower; or (ii) any law or any contractual restriction binding on or affecting the Borrower, and does not result in or require the creation of any lien, security interest or other charge or encumbrance (other than pursuant to the terms of the Loan Documents) upon or with respect to any of its respective properties.

 

c.             Enforceability. This Amendment is, the Forbearance Agreement is, and each of the Loan Document to which the Borrower is a party are, or when delivered will be, legal, valid and binding obligations of the Borrower enforceable against the Borrower in accordance with their respective terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditor’s rights generally and by general principles of equity.

 

5.             Miscellaneous.

 

a.             Recitals Incorporated. The Recitals set forth at the beginning of this Amendment are deemed incorporated herein, and the parties hereto represent they are true, accurate and correct.

 

b.             Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of Minnesota.

 

c.             Severability. If any provision of this Amendment shall be invalid, illegal or otherwise unenforceable, such provision shall be severable from the remainder of such agreement and the validity, legality and enforceability of the remaining provisions shall not be adversely affected or impaired thereby and shall remain in full force and effect.

 

d.             Counterparts. This Amendment may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become effective when two or more counterparts have been signed by each of the parties and delivered to the other parties.

 

e.             Entire Agreement. This Amendment, the Forbearance Agreement, and the other Loan Documents set forth the entire agreement between the parties pertaining to the transactions contemplated by this Amendment.  This Amendment may be amended or modified only by a written instrument signed by the party against which enforcement is sought.

 

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the date and year set forth below.

 

	
Dated:   March 1, 2011
    	
 
    
	
 
    	
HERON   LAKE BIOENERGY, LLC, a Minnesota limited 
    
	
 
    	
liability   company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Robert J. Ferguson
    
	
 
    	
By:   
    	
Robert   J. Ferguson
    
	
 
    	
Its:   
    	
President
    
	
 
    	
 
    
	
Dated:   March 1, 2011
    	
 
    
	
 
    	
AGSTAR   FINANCIAL SERVICES, PCA, a United States 
    
	
 
    	
instrumentality,
    
	
 
    	
 
    
	
 
    	
/s/   Mark Schmidt
    
	
 
    	
By:
    	
Mark   Schmidt
    
	
 
    	
Its:
    	
Vice   President
    

 

[Signature Page to Second Amendment to Forbearance Agreement]Exhibit 4.1

 

EXECUTION COPY

 

THIRD SUPPLEMENTAL INDENTURE, dated as of March 1, 2011 (this “Supplemental Indenture”), among  Radiation Therapy Services, Inc., a Florida corporation (the “Company,” which term includes its successors and assigns), each other then existing Guarantor under the Indenture referred to below (the “Guarantors”), and Wells Fargo Bank, National Association, as trustee (“the Trustee”) under the Indenture referred to below.

 

WITNESSETH:

 

WHEREAS, the Company, any Guarantors and the Trustee have heretofore become parties to an Indenture, dated as of April 20, 2010, as amended by the First Supplemental Indenture thereto, dated June 24, 2010, as further amended by the Second Supplemental Indenture thereto, dated September 29, 2010, the “Indenture”), providing for the issuance of 97/8% Senior Subordinated Notes due 2017 of the Company (the “Notes”);

 

WHEREAS, Section 9.01 of the Indenture provides that the Company, the Guarantors and the Trustee may supplement the Indenture to provide for the issuance of Additional Notes; and

 

WHEREAS, the Company wishes to issue $66,250,000 in aggregate principal amount of 97/8% Senior Subordinated Notes due 2017.

 

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged,  the Company, the Guarantors and the Trustee mutually covenant and agree for their benefit and the benefit of the Holders of the Notes as follows:

 

1.     Defined Terms.  As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recital hereto are used herein as therein defined.  The words “herein,” “hereof’ and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular Section hereof.

 

2.     Additional Notes.  The $66,250,000 in aggregate principal amount of 97/8% Senior Subordinated Notes due 2017 as Additional Notes are hereby issued under the Indenture.

 

3.     Governing Law.  THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.  THE TRUSTEE, THE COMPANY, ANY OTHER OBLIGOR IN RESPECT OF THE NOTES AND (BY THEIR ACCEPTANCE OF THE NOTES) THE HOLDERS AGREE TO SUBMIT TO THE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE.

 

4.     Ratification of Indenture; Supplemental Indentures Part of Indenture.  Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect.  This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes

 

 

heretofore or hereafter authenticated and delivered shall be bound hereby.  The Trustee makes no representation or warranty as to the validity or sufficiency of this Supplemental Indenture or as to the accuracy of the recitals to this Supplemental Indenture.

 

5.     Counterparts.  The parties hereto may sign one or more copies of this Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement.

 

6.     Headings.  The Section headings herein are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written.

 

	
 
    	
RADIATION THERAPY SERVICES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kerrin E. Gillespie
    
	
 
    	
Name:
    	
Kerrin E. Gillespie
    
	
 
    	
Title:
    	
Senior Vice President and Chief
    
	
 
    	
 
    	
Financial Officer
    

 

Signature Page to Supplemental Indenture

 

 

	
 
    	
21ST CENTURY ONCOLOGY OF ALABAMA, LLC
    
	
 
    	
ARIZONA RADIATION   THERAPY MANAGEMENT SERVICES, INC.
    
	
 
    	
CALIFORNIA   RADIATION THERAPY MANAGEMENT SERVICES, INC.
    
	
 
    	
21ST CENTURY ONCOLOGY OF JACKSONVILLE, LLC
    
	
 
    	
DEVOTO CONSTRUCTION OF SOUTHWEST   FLORIDA, INC.
    
	
 
    	
RADIATION THERAPY SERVICES   INTERNATIONAL, INC.
    
	
 
    	
21ST CENTURY   ONCOLOGY MANAGEMENT SERVICES, INC.
    
	
 
    	
JACKSONVILLE RADIATION THERAPY SERVICES, LLC
    
	
 
    	
FINANCIAL SERVICES OF SOUTHWEST FLORIDA, LLC
    
	
 
    	
21ST CENTURY ONCOLOGY, LLC
    
	
 
    	
21ST CENTURY   ONCOLOGY OF HARFORD COUNTY MARYLAND, LLC
    
	
 
    	
BERLIN RADIATION   THERAPY TREATMENT CENTER, LLC
    
	
 
    	
21ST CENTURY   ONCOLOGY OF PRINCE GEORGES COUNTY, MARYLAND, LLC
    
	
 
    	
MARYLAND RADIATION   THERAPY MANAGEMENT SERVICES, LLC
    
	
 
    	
AMERICAN CONSOLIDATED TECHNOLOGIES, LLC
    
	
 
    	
MICHIGAN RADIATION   THERAPY MANAGEMENT SERVICES, INC.
    
	
 
    	
NEVADA RADIATION   THERAPY MANAGEMENT SERVICES, INCORPORATED
    
	
 
    	
21ST CENTURY ONCOLOGY OF NEW   JERSEY, INC.
    
	
 
    	
NEW YORK RADIATION   THERAPY MANAGEMENT SERVICES, LLC
    
	
 
    	
NORTH CAROLINA   RADIATION THERAPY MANAGEMENT SERVICES, LLC
    
	
 
    	
21ST CENTURY ONCOLOGY OF SOUTH CAROLINA, LLC
    
	
 
    	
WEST VIRGINIA RADIATION THERAPY   SERVICES, INC.
    
	
 
    	
PHOENIX MANAGEMENT COMPANY, LLC
    
	
 
    	
CAROLINA REGIONAL CANCER CENTER, LLC
    
	
 
    	
ATLANTIC UROLOGY CLINICS, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kerrin E. Gillespie
    
	
 
    	
 
    	
Name:
    	
Kerrin E. Gillespie
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

 

Signature Page to Supplemental Indenture

 

 

	
 
    	
21ST CENTURY ONCOLOGY OF   PENNSYLVANIA, INC.
    
	
 
    	
GETTYSBURG RADIATION, LLC
    
	
 
    	
CAROLINA RADIATION AND CANCER TREATMENT   CENTER, LLC
    
	
 
    	
RADIATION THERAPY SCHOOL FOR RADIATION   THERAPY TECHNOLOGY, INC.,
    
	
 
    	
NEW ENGLAND RADIATION THERAPY MANAGEMENT   SERVICES, INC.
    
	
 
    	
DERM-RAD INVESTMENT COMPANY, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kerrin E. Gillespie
    
	
 
    	
Name: Kerrin E. Gillespie
    
	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
21ST CENTURY ONCOLOGY OF KENTUCKY, LLC, as a   Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kerrin E. Gillespie
    
	
 
    	
Name: Kerrin E. Gillespie
    
	
 
    	
Title:
    	
Chief Financial Officer
    

 

Signature Page to Supplemental Indenture

 

 

	
 
    	
RADIATION THERAPY SERVICES   HOLDINGS, INC., as a Guarantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kerrin E. Gillespie
    
	
 
    	
Name:
    	
Kerrin E. Gillespie
    
	
 
    	
Title:
    	
Senior Vice President and Chief
    
	
 
    	
 
    	
Financial Officer
    

 

Signature Page to Supplemental Indenture

 

 

	
 
    	
WELLS FARGO BANK, NATIONAL ASSOCIATION, as   Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stefan Victory
    
	
 
    	
Name:
    	
Stefan Victory
    
	
 
    	
Title:
    	
Vice President
    

 

Signature Page to Supplemental Indenture

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