Document:

Exhibit 10.1

 

LEASE AGREEMENT

By
and Between

The
Indiana Port Commission

And

Aventine
Renewable Energy-Mt Vernon, LLC

 

LEASE AGREEMENT

THIS LEASE AGREEMENT (“Lease”)
is made and entered into this _____ day of October, 2006 between the INDIANA
PORT COMMISSION, a body corporate and politic existing under the laws of the
State of Indiana (the “Commission”)
and AVENTINE RENEWABLE ENERGY-MT VERNON, LLC an Delaware Limited Liability
Company (Lessee).

RECITALS:

A.            The
Commission is charged with the management and operation of the Ports of
Indiana, including the Port of Indiana-Mount Vernon, in Posey County, Indiana
(the “Port”).

B.            Lessee
has discussed with the Commission the lease of certain property at the Port for
the construction and operation of an Ethanol Plant.  The Commission and Consolidated Grain and
Barge Co entered into an Option to Lease Real Estate on June 22nd 2006 and an
Amended Option to Lease Real Estate on August 17th, 2006.  The Option and Amended Option were assigned
to Lessee, with the consent of the Commission, on September 11, 2006.  Lessee exercised the Option on September 29,
2006.

C.            It
is anticipated by the Commission that the lease of such property to Lessee and
the use thereof by Lessee will contribute to the growth and development of the
Port.

D.            After
review by the Commission’s staff and in consideration of the benefits to be
derived from and the burdens imposed by Lessee’s use of such property, the
Commission has authorized the preparation of this Lease.

E.             Lessee
and the staff of the Commission have each had substantial participation in the
preparation of this definitive Lease, which shall, upon approval of this Lease
by the Governor of Indiana, become effective.

F.             At
a properly convened public meeting, the Commission has duly approved the
execution and delivery of this Lease by its duly authorized officers.

NOW, THEREFORE, in consideration of the foregoing
premises, the mutual undertakings hereinafter set forth, and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Commission and Lessee (the “Parties”)
hereby agree as follows:

ARTICLE I

LEASE OF THE PREMISES

Section 1.01.          THE
DEMISE.  The Commission does hereby
demise and lease to Lessee, and Lessee does hereby lease from the Commission,
that certain real estate consisting of approximately 116 acres, more or less,
located at the Port of Indiana-Mount Vernon, a port managed and operated by the
Commission in Posey County, Indiana; said real estate more

 1
 

particularly described and depicted in the drawings and descriptions
attached hereto, made a part hereof, and marked Exhibit A (the “Real
Estate”; the buildings, structures, fixtures and other improvements
now or hereafter located on the Real Estate being herein referred to as the “Improvements”; and the Real Estate and
Improvements being herein referred to as the “Leased
Premises”).  The Real Estate is
located within the Port more particularly described on Exhibit A-1 hereto.  Within sixty (60) days from the date hereof,
Lessee shall provide to the Commission at Lessee’s sole expense a current
ALTA/ACSM Land Title Survey of the Real Estate, containing Table A Items 1-4,
6, 7a, 8-10, 11a and 13 (the “Survey”).  Promptly after the receipt of the Survey, the
parties shall enter into amendments to this Lease and the Memorandum hereof in
form and substance reasonably satisfactory to each of them setting forth the
metes and bounds description of the Real Estate.  The demise further grants to Lessee:

(i)                                     the
non-exclusive right of ingress and egress to and from the nearest public roads
and to and from the Leased Premises over existing roads within the Port, as
such access may be changed from time to time by the Commission;

(ii)                                  the
non-exclusive right of ingress and egress to and from all public wharves
serving the Port and the Leased Premises, over existing roads and railroad
tracks within the Port, as such access may be changed from time to time by the
Commission; and

(iii)                               the
non-exclusive right and easement to install, maintain, use, operate, repair,
restore and relocate (A) water, gas, electric, sewer, drainage,
telecommunications and other utility lines, pipes, pumps, conduits, facilities
and equipment; (B) ethanol pipelines, facilities and equipment between the
Leased Premises and wharfs at the Port; (C) grain conveyor lines between the
Leased Premises and grain storage facilities and/or wharfs at the Port; (D)
roads and railroad tracks between the Leased Premises and the roads and
railroads within the Port.  The easements
under this clause (iii) shall be at locations to be requested by Lessee and
approved by the Commission.  Upon such
approval by the Commission, at the request of Lessee or the Commission, the
parties shall execute and deliver amendments to this Lease and any Memorandum
hereof in form and substance reasonably satisfactory to each of them reflecting
the location of the easement in question.  The facilities installed by Lessee in the
easements under this clause (iii) shall be installed, operated, maintained and
repaired by Lessee at its sole cost and expense as part of the Improvements,
shall be the property of Lessee and shall be for the exclusive use of
Lessee.  The Commission shall have the
right to use and to grant others the use of the land on which such easements
are located for other purposes that do not unreasonably interfere with the use
and operation of the facilities installed therein by Lessee.

(iv)                              The
Commission shall have the right at its sole cost and expense to relocate the
roads and railroads within the Port and the easements under clause (iii) and
the facilities Lessee’s facilities therein, provided that Lessee’s ingress and
egress to and from the Leased Premises and wharves serving the Port and use of
the facilities in the easements to be relocated is not interrupted for any
substantial period of time or diminished. 
In the event of any such relocation, at the request of

 2
 

Lessee or the
Commission, the parties shall execute and deliver amendments to this Lease and
any Memorandum hereof in form and substance reasonably satisfactory to each of
them reflecting the location of the new easement in question and releasing the
old easement.

Section 1.02.          THE
ADDENDUM.  Immediately following the
signature page of this Lease is the Addendum of State required contract
provisions.  The Addendum and this Lease
are incorporated into each other and, when read together, shall constitute one
integrated document.  Any inconsistency,
conflict, or ambiguity between the Addendum and this Lease shall be resolved by
giving precedence and effect to the Addendum.

ARTICLE II

TERM

Section 2.01.          APPROVAL
BY GOVERNOR.  This Lease is subject
to and conditioned upon the approval of the Governor of the State of
Indiana.  Lessee agrees that any of
Lessee’s Work performed by Lessee prior to the approval of this Lease by the
Governor of the State of Indiana or any other action taken or expense incurred
by Lessee shall be at the sole risk of Lessee. 
Lessee shall be without recourse against the Commission or the State of
Indiana in the event this Lease is not approved by the Governor of the State of
Indiana, and agrees to, and hereby does, hold the Commission harmless for any
loss asserted or claimed, and to indemnify and defend the Commission against
any such loss arising as a result of Lessee’s Work or occupancy of the Real
Estate prior to the approval of this Lease by the Governor.  If the Governor fails to approve this Lease,
Lessee agrees to restore, at its own expense, the Leased Premises substantially
to its original condition.

Section 2.02.          THE
ORIGINAL TERM.  The initial term of
this Lease (the “Original Term”)
shall commence on November 1, 2006, (the “Commencement
Date”), and shall end at midnight on the 31st day of October, 2026.

Section 2.03.          OPTIONS
FOR EXTENSIONS.  Lessee shall have
options to extend this Lease for six (6) additional consecutive terms of five
(5) years each (individually, an “Additional
Term” and, collectively, the “Additional
Terms”) commencing at the expiration of the Original Term or the
prior Additional Term at the rental rate (subject to adjustment as provided
herein) and subject to all of the other terms, covenants and conditions contained
in this Lease, all of which shall be applicable to the Additional Terms.  The Original Term and any Additional Term the
option for which is exercised may be referred to hereinafter collectively as
the “Demised Term”.

The option to extend the term of this Lease may be exercised only if no
Event of Default (as hereinafter defined) exists at the date of exercise or at
the end of the Original Term or the current Additional Term, if
applicable.  Notice of the exercise of an
option to extend the term of this Lease shall be received by the Commission no
later than one year prior to the expiration of the Original Term or the then
current Additional Term (the “Notice Date”).  If such notice is not given by the Notice
Date, the Lease shall terminate as of the end of the then current term.  If such

 3
 

notice is given by the Notice Date, the Lease, without further action
by the parties, shall be automatically extended for the Additional Term.

Section 2.04.          PREMISES
RESTORATION PLAN.  On or before
December 1 of the last year of the term of this Lease Agreement, Lessee shall
submit its Premises Restoration Plan to the Commission as provided in Article
XIV.

ARTICLE III

RENT

Section 3.01.          METHOD
AND MANNER OF PAYMENT.  Payment of
Basic Rent (hereafter defined) shall be made by check payable to the order of
Indiana Port Commission, mailed to the Commission at 150 West Market Street,
Suite 100, Indianapolis, Indiana 46204, or to such other payee or at such other
place as the Commission may designate from time to time in writing.

Section 3.02.          BASIC
RENT.  Lessee agrees to pay to the
Commission as rent for the Leased Premises a “Basic
Rent” composed of Ground Rent for the Leased Premises, as follows:

(a)           The annual ground
rental rate (the “Ground Rent”)
for the Leased Premises, from the Commencement Date through the fifth
anniversary of the Commencement Date, shall be Three Thousand Two Hundred
Dollars ($3,200) per acre for a total annual Ground Rent of Three Hundred Seventy One Thousand Two Hundred Dollars ($371,200)
(the “Initial Ground Rent”).  The Initial Ground Rent shall be payable in
advance in equal successive monthly installments commencing on the Commencement
Date (the “Initial Payment Date”)
and continuing thereafter on the first day of every calendar month until the
fifth anniversary of the Commencement Date. 
If the actual number of acres of the Real Estate as determined by the
Survey shall be more or less than 116 acres, at the request of Lessee or the
Commission, the Ground Rent shall be redetermined and parties shall execute and
deliver an amendment to this Lease in form and substance reasonably
satisfactory to each of them reflecting the redetermined Ground Rent.

(b)           An Option Fee of One
Hundred Thousand Dollars ($100,000) has been previously paid to the Commission.  Pursuant to the terms of the Amended Option
the Option Fee shall be applied in full to Lessee’s Basic Rent
obligations,  commencing with the
November 1, 2006 Basic Rent payment.

(c)           On November 1, 2011
and on each fifth year thereafter (each date referred to as a “Rental Adjustment Date”) a rental
adjustment (“Rent Adjustment”)
shall be made, which shall produce the “Adjusted
Ground Rent”.  Adjusted Ground
Rent shall be based upon increases in the Producer Price Index All Commodities,
1982=100(hereinafter called the “Index”)
published by the Bureau of Labor Statistics United States Department of
Labor.  For purposes of calculating the
first Adjusted Ground Rent, the “Final Index”
published immediately preceding the Commencement Date of November 1, 2006 shall
be the original base Index.  The term “Final Index” recognizes that the most
recent four-month figures of the Producer Price Index are subject to
revision.  Therefore the Commission will
select the most

 4
 

recent Final Index figure which under current procedure
will be that index four months prior to the Rental Adjustment Date.

Any increase in the Index from the original base Index to the Index
last published preceding the first Rental Adjustment Date shall be computed as
a percentage and the Adjusted Ground Rent to be paid by Lessee during the five
(5) year period immediately succeeding the first Rental Adjustment Date shall
be the Initial Ground Rent, multiplied by the sum of one hundred percent (100%)
plus such percentage change in the Index; but shall in no event be less than
the per acre annual Initial Ground Rent rate payable by Lessee, or the Adjusted
Ground Rent then payable.

For example, the calculation of Adjusted Ground Rent to be paid by
Lessee at the first Rental Adjustment Rate would be as follows:

	
  Original Base Index:

  	
   

  	
  100

  
	
  Index Last
  Published

  	
   

  	
   

  
	
  Preceding first
  Rental

  	
   

  	
   

  
	
  Adjustment Date:

  	
   

  	
  110

  
	
  % Change in
  Index:

  	
   

  	
  10%

  
	
   

  	
   

  	
   

  
	
  Adjusted Ground
  Rent:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  $3,200 x 110%

  	
   

  	
  $3,520*

  

*Figures assumed for purposes of demonstration only.

(d)           In computing the
rental adjustment for each subsequent Rental Adjustment Date, (the “Current Rental Adjustment Date”) the Index
last published preceding the last preceding Rental Adjustment Date (the “Prior Rental Adjustment Date”) shall be the
new base Index for purposes of calculating the Adjusted Ground Rent for the
five (5) year period commencing on the Current Rental Adjustment Date.  Any increase in the Index from the new base
Index to the Index last published preceding the Current Rental Adjustment Date
shall be computed as a percentage, and the Adjusted Ground Rent to be paid by
Lessee during the five (5) year period commencing on the Current Rental
Adjustment Date shall be the per acre Ground Rent rate payable by Lessee for
the period immediately prior to the Current Rental Adjustment Date multiplied
by the sum of one hundred percent (100%) plus such percentage change in the
Index; but shall in no event be less than the per acre Ground Rent rate payable
by Lessee for the period immediately prior to the Current Rental Adjustment
Date.  For example, the Adjusted Ground
Rent to be paid by Lessee would be as follows:

	
  New Base Index (last

  	
   

  	
   

  
	
  published before
  the Prior

  	
   

  	
   

  
	
  Rental
  Adjustment Date):

  	
   

  	
  110

  
	
   

  	
   

  	
   

  
	
  Index Last
  Published

  	
   

  	
   

  
	
  Preceding
  Current

  	
   

  	
   

  
	
  Rental
  Adjustment Date:

  	
   

  	
  117

  
	
  % Change in
  Index:

  	
   

  	
   

  	
  6.36%

  

 

 5
 

 

	
  Annual per acre Adjusted
  Ground Rent

  	
   

  	
   

  
	
  for Five (5)
  Year Period Commencing

  	
   

  	
   

  
	
  on the Current
  Rental

  	
   

  	
   

  
	
  Adjustment Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  $3,520 x 106.36%

  	
   

  	
  $3,747.87*

  

*Figures assumed for
purposes of demonstration only.

The Adjusted Rent shall be the Basic Rent payable by the Lessee
starting on the Rental Adjustment Date. 
A notice of the Adjusted Rent shall be sent to the Lessee at least two
(2) weeks prior to the Rental Adjustment Date.

If, during the Demised Term, the Bureau of Labor Statistics shall
discontinue the publication of the Producer Price Index, all commodities,
without issuing appropriate method of adjustment, the Commission shall select a
substitute index.

Section 3.03.          PORT
TARIFF CHARGES.  In addition to the
Basic Rent, Lessee shall pay the Commission (either directly or through an
authorized terminal operator) the tariff charges specified in the most recently
published Port Tariff, Rates, Charges, Rules and Regulations (the “Port Tariff”) a current copy of which is
attached hereto as Exhibit B.  The Commission reserves the unqualified and
unconditional right to interpret, change, amend or revise the Port Tariff and
to supplement, increase or decrease the rates and charges specified
therein.  Lessee covenants that it shall
comply with the Port Tariff in all respects and shall pay all assessments and
charges thereunder as and when due in accordance with the Commission’s billing
procedures and shall provide all documentation as and when reasonably required
by the Commission for the determination of such assessments and charges.

The Port Tariff charges are for Lessee’s use of the harbor, docks,
wharves, appendant facilities, roads, railroad tracks and similar
transportation facilities of the Commission, and Lessee’s customers and/or
suppliers and/or by vehicles and vessels owned or chartered in connection with
the delivery or transportation of materials, goods or products to and from the
Leased Premises.  Notwithstanding the
foregoing, Lessee shall not be required to pay the Port Tariff charges on raw
materials transported to the Leased Premises which are used in ethanol
production.  Lessee’s use of such
facilities is subject to any operators thereof and the Port Tariff.  Lessee shall be responsible for reporting to
the Commission all vehicle and vessel activity and cargos on a weekly basis
(but not later than seven (7) days after vessel departure), with supporting
documentation, manifests, bills-of-lading, etc. 
The Port Director, or another affiliate of the commission, shall have
the right to review and inspect Lessee’s records and books to verify reported
activity at the Port.

The Commission shall then invoice Lessee with thirty (30) day payment
terms.  Any invoices not paid within
thirty (30) days after billing shall be deemed delinquent.  If the reports required herein are not timely
made, the Commission shall have the right to assess Lessee a reasonable fee for
the additional administrative costs of handling such late reports, such fee not
to exceed five percent (5%) of the amount ultimately determined by the
Commission from reviewing such

 6
 

reports to be due from Lessee in excess of the amount determined to be
due from reports previously submitted by Lessee.

Section 3.04.          MINIMUM
GUARANTEED WHARFAGE.

(a)           In addition to the
Basic Rent and the tariff charges provided in Sections 3.02 and 3.03, Lessee
shall pay or cause to be paid to the Commission wharfage payments on no less
than One Hundred Seventy Six Million (176,000,000) gallons of ethanol per year
(equal to 572,280 tons) (the “Minimum
Guaranteed Ethanol Wharfage”) and 548,043 tons of DDG’s per year
(the tons of DDG’s generated from the production of 176 million gallons of
ethanol) (the “Minimum Guaranteed DDG’s
Wharfage”; together with the Minimum Guaranteed Ethanol Wharfage,
the “Minimum Guaranteed Wharfage”).

(b)           The Minimum
Guaranteed Wharfage shall be phased in pursuant to the following schedule:

The Project shall have a two-phased production build
out.  Phase One equals 110 million gallon
annual capacity; Phase Two equals 110 million gallon annual capacity; for a
total Project annual capacity of 220 million gallons of ethanol.  The Phase One 110 million-gallon annual
production of ethanol shall begin (other than for purposes of testing
operations) on or before September 1, 2008. 
The Phase Two production shall commence (other than for purposes of
testing operations) on or before January 1, 2010.  Beginning January 1, 2010 the Project’s
annual production of ethanol shall be 220 million gallons.

The Phase One Minimum Guaranteed Wharfage is 88
million gallons of ethanol per year and the tons of DDG’s generated from the
production of 88 million gallons of Ethanol, which shall commence on the
earlier of (i) the start of ethanol production (other than for purposes of
testing operations) in Phase One or (ii) September 1, 2008. The Phase Two
Minimum Guaranteed Wharfage is on an additional 88 million gallons of ethanol
per year, and the tons of DDG’s generated from the production of an additional
88 million gallons of Ethanol, which shall commence on the earlier of (i) the
start of ethanol production (other than for purposes of testing operations) in
Phase Two or (ii) January 1, 2010.

(c)           Notwithstanding the
rates set forth in the Port Tariff, the wharfage rates for Ethanol, DDG’s and
C02 is as follows:

	
  Ethanol

  	
   

  	
  33 cents per ton

  
	
  DDG’s 

  	
   

  	
  15 cents per ton

  
	
  C02

  	
   

  	
  15 cents per ton (when commercial marketable.)

  

 

Notwithstanding
the rates set forth in the Port Tariff, the wharfage rate for ethanol, DDG’s
and CO2 shall be adjusted on each fifth (5th) anniversary date of the Lease Agreement
using the Index formula for adjusting Ground Rent as stated herein.  Lessee shall pay wharfage on all outbound
product regardless of the mode of transportation used.  Notwithstanding anything else

 7
 

 

to the
contrary set forth in the Port Tariff or this Lease, Lessee shall not pay any
wharfage rate on raw materials delivered to the Leased Premises which are used
in the production of ethanol.

(d)           In the event during any calendar year
the wharfage actually paid or caused to be paid to the Commission by Lessee (“Actual Wharfage”) for ethanol, DDG’s and
C02 received or trans-shipped to and from the Leased Premises over the
Commission’s wharves and docks for such calendar year shall not equal or exceed
the Minimum Guaranteed Wharfage, Lessee shall pay to the Commission within
thirty (30) days of the end of such calendar year and receipt of a bill
therefor from the Commission, as additional rent for the use of the Commission’s
property and the Leased Premises, the positive difference between the Minimum
Guaranteed Wharfage and the Actual Wharfage, with the difference being calculated
based on the a wharfage rate at the then current per ton tariff rate as agreed
to in this Lease.

(e)           In the event the first or last Lease
Year under this Lease does not commence on January 1, or end on December 31,
the Minimum Guaranteed Wharfage Tonnage shall be prorated.  For purposes of this Section 3.04(e), a “Lease Year” (x) with respect to Phase One,
commences on the earlier of (i) the start of ethanol production (other than for
purposes of testing operations) in Phase One or (ii) September 1, 2008, and (y)
with respect to Phase Two, commences on the earlier of (i) the start of ethanol
production (other than for purposes of testing operations) in Phase Two or (ii)
January 1, 2010.  Any amount of wharfage
paid by Lessee over and above the Minimum Guaranteed Wharfage for a calendar
year shall not be credited against the Minimum Guaranteed Wharfage for any
prior or succeeding calendar years.

Section 3.05.          NET
RENT.  Lessee shall pay to the
Commission the Basic Rent, the Minimum Guaranteed Wharfage, Impositions and the
other charges hereunder without any notice, demand, set-off, counterclaim,
abatement or deduction whatsoever, except as may be expressly set forth in this
Lease.  The parties intend that the
obligations of Lessee hereunder shall be covenants and agreements that are
separate and independent from any obligations of the Commission hereunder and
shall continue unaffected unless such obligations have been modified or
terminated in accordance with an express provision of this Lease.

Section 3.06.          DELINQUENT
PAYMENTS AND AUDITS.  The Commission
shall assess a late fee on any delinquent payments due from Lessee to the
Commission under the terms of this Lease at the rate set forth in the Port
Tariff, and if no rate is set forth in the Port Tariff, at the annual rate of
ten percent (10%), per annum.  The
Commission shall also have the right to request an audit by an independent
certified public accountant of Lessee’s Use of the Commission’s
facilities.  If discrepancies are found
to exceed two percent (2%) of the total usage reported in any year, then Lessee
shall pay the amount due and owing as a result of the discrepancy together with
the cost of the audit within thirty (30) days after receipt of a statement
thereof.

 8
 

ARTICLE IV

CONSTRUCTION OF
IMPROVEMENTS

Section 4.01.          LESSEE
IMPROVEMENTS.

(a)           Lessee agrees to
construct a facility (the “Project”)
on the Leased Premises as more fully described on Exhibit C attached hereto. 
Such Project shall be constructed substantially in accordance with the
Plans and Specifications (as defined below) and said construction shall
hereafter be referred to as “Lessee’s Work”.  Throughout the Demised Term, Lessee shall
retain fee simple title to the Improvements now or hereafter located on the
Real Estate.  Upon the expiration or
termination of the Demised Term, title to the Improvements shall vest in
accordance with Article XIV hereof.

(b)           Lessee shall
commence construction of Phase I of the Project on or before April 1, 2007 (the
“Construction Date”).  For purposes hereof, “Commence Construction” means the presence
of contractors on the Leased Premises performing excavation work beyond
clearing of the site after Lessee has obtained all required building
permits.  Lessee shall: (i) cause
substantial completion of Phase One of the Project with a capacity of 110
million gallons of ethanol and the commencement of production of ethanol from
Phase One (other than for the purposes of testing operations) to occur on or
before September 1, 2008, and (ii) to cause substantial completion of Phase Two
of the Project with a capacity of an additional 110 million gallons of ethanol
and the commencement of production of ethanol from Phase Two (other than for
the purposes of testing operations) to occur on or before January 1, 2010.

(c)           Lessee agrees to
prosecute with due diligence all Lessee’s Work. 
The parties acknowledge the Construction Date in Section 4.01(b) above
is established following consultation by Lessee with its construction managers
and suppliers and are reasonable and obtainable.  The parties further acknowledge that there
are external circumstances and conditions, which may arise, through no fault of
Lessee, which will make it impossible for Lessee to comply with such
Construction Date.  Such external
circumstances and conditions, such as the failure of a governmental agency to
issue a required permit following timely application, while not rising to the
level of a Force Majeure Event, as hereafter defined, may extend the time for
compliance by Lessee.  Lessee shall
diligently pursue obtaining permits for Phase One and Phase Two.  In the event Lessee believes it will be
unable to obtain permits by April 1, 2007, but in good faith believes that such
permits may be issued by July 1, 2007, Lessee may postpone until July 1, 2007 such
April 1, 2007 date by written notice of such postponement provided to the
Commission on or before April 1, 2007. 
Lessee may thereafter, but prior to July 1, 2007, give the Commission
written notice of an anticipated failure to comply with the July 1, 2007
date.  Immediately following the written
notice, Lessee and the Commission agree to negotiate in good faith a waiver of
the July 1, 2007 date and the establishment of a new date, which shall be for
the shortest reasonable time period required. 
Failing agreement, either Lessee or the Commission may terminate this
Lease.

Section 4.02.          ALTERATIONS
AND ADDITIONS.  Lessee shall be
entitled to make modifications to the Project provided the modifications do not
expand the physical scope or size of the Project or alter the physical
infrastructure (“Minor Modifications”).  Lessee shall not be

 9
 

entitled to make modifications that would expand the physical scope or
size of the Project or alter the physical infrastructure, without the prior
written consent of the Commission, which consent will not be unreasonably
withheld (“Major Modifications”).  All Minor Modifications and Major
Modifications undertaken by the Lessee shall be made in accordance with this
Article.  Any modifications, Minor and
Major, shall also be referred to herein as “Lessee’s Work”. 
During the Demised Term, the Project and all other Lessee’s Work shall
be the property of Lessee.

Section 4.03.          ASSURANCE
OF PAYMENT AND PERFORMANCE.  Lessee
shall promptly pay all expenses, costs and charges of every kind and nature
arising out of Lessee’s Work, as the same become due and payable.

Section 4.04.          COMPLIANCE
WITH LAWS.  The Project or any other
Lessee’s Work, when completed in accordance with the Plans and Specifications
will not violate or conflict with any applicable law, statute, ordinance, rule,
regulation or order of any kind, including, without limitation, Federal and
State Homeland Security laws and regulations, aviation, zoning, building,
environmental, land use, noise abatement, occupational health and safety or
other laws, any building permit or any condition, grant, easement, covenant,
condition or restriction, whether recorded or not, and in accordance with all
rules and regulations promulgated by the Commission.  In addition, Lessee shall comply with the
provisions of the Declaration of Restrictions attached hereto as Exhibit D and hereby made a part hereof
(the “Declaration”) binding upon a
lessee of the Leased Premises.  The
Declaration may be amended by the Commission from time to time and it is the
duty of the Lessee to examine the most recent Declaration as found in the
Commission’s office.

Lessee shall
indemnify and hold the Commission harmless from and against any and all costs,
expenses, liability, claims, actions and causes of action actually incurred by
the Commission and arising out of Lessee’s violation of any legal requirements.

At its sole cost and expense, Lessee may contest in good faith the
validity in whole or in part of any of the foregoing legal requirements or the
application thereof to the Project or Lessee. 
Promptly upon request, but subject to the Commission’s normal approval
process, the Commission shall execute and deliver any documents that are
reasonably requested by Lessee and required to be signed by the Commission to
permit Lessee to conduct any such contest and shall cooperate with Lessee  in conducting such contest, and Lessee shall
reimburse all third-party costs incurred by the Commission.  To the extent permitted by law Lessee may
defer compliance with the legal requirement or requirements being contested,
provided that the contest proceeding prevents enforcement of the legal
requirement/s being contested or will not subject the Commission to any
criminal penalty or to any material fine or liability, and provided that if an
Event of Default is continuing Lessee shall provide to the Commission
reasonable security.  When any such
contest is concluded and such legal requirement/s are complied with to the
extent required, any security so deposited 
shall be promptly returned to Lessee.

Section 4.05.          PLANS
AND SPECIFICATIONS.  The plans and
specifications for the Project and any Major Modifications shall be reviewed
and approved in writing by the Port Engineer, prior to commencing any of Lessee’s
Work (once approved, the “Plans and
Specifications”).  Approval of
the Plans and Specifications shall not be unreasonably withheld conditioned or

 10
 

delayed.  Review and approval of
the Plans and Specifications shall be for the sole benefit of the Commission,
and the Commission makes no representations or warranties as to the suitability
or soundness of the Plans and Specifications or of any aspect of the Lessee’s
Work.  The location of all utilities,
including electric, telephone, gas and water, as they enter upon the Leased Premises,
will be included in said Plans and Specifications for approval in order that
the master plan layout for such items on the Port site will not be violated or
jeopardized.

Within twenty (20) business days after delivery of Plans and
Specifications to the Port Engineer, the Port Engineer shall either approve the
Plans and Specifications or shall advise Lessee in writing of any modifications
which, in the Port Engineer’s reasonable opinion, are necessary for compliance
with the regulations promulgated by the Commission and the Declaration (as
defined above).  Lessee shall thereafter
make appropriate modifications to the Plans and Specifications.  When tendered to the Port Engineer, the Plans
and Specifications shall be complete in all material respects, containing all
detail requisite for the Lessee’s Work, which, when built and equipped in
accordance therewith, shall be ready for the intended use thereof.  Lessee shall not make any changes in the
Plans and Specifications after they have been approved by the Port Engineer,
without the prior written consent of the Port Engineer, which shall not be
unreasonably withheld.

Lessee, at its sole cost, shall obtain all permits, licenses and
approvals necessary for Lessee’s Work, which permits shall be delivered to the
Port Engineer at least five (5) days prior to the commencement of
construction.  When tendered to the Port
Engineer, the Plans and Specifications shall be complete in all material
respects, containing all detail reasonably required for the Major Modifications
which, when built in accordance therewith, shall be ready for the intended use
thereof.  Lessee shall not make any
material changes in the Plans and Specifications after they have been approved
by the Port Engineer, without the prior written consent of the Port Engineer,
which consent shall not be unreasonably withheld, conditioned or delayed.

Section 4.06.          MECHANIC’S
LIENS.  Lessee shall keep the Leased
Premises, including all Lessee’s Work and improvements located thereon, free
and clear of any and all mechanic’s, materialmen’s and other liens for or
arising out of or in connection with work or labor done, services performed, or
materials or appliances used or furnished for or in connection with any
operations of Lessee, any alteration, improvement, or repairs or additions
which Lessee may make or permit or cause to be made, or any work or
construction, by, for, or permitted by Lessee on or about the Leased Premises,
or any obligations of any kind incurred by Lessee.  Except as otherwise expressly provided for
herein, Lessee shall promptly and fully pay and discharge or bond over any and
all claims against Lessee on which any such lien is or could be based and
indemnify and hold harmless the Commission and the Leased Premises and all
buildings and improvements located thereon against all such liens and claims of
liens and suits or other proceedings pertaining thereto.

If Lessee
desires to contest any such lien, it shall notify the Commission of its
intention to do so within thirty (30) days after Lessee’s receipt of notice of
the filing of such lien and shall commence to contest such lien within the same
time period, and diligently pursue such contest thereafter.  In such case, and provided that enforcement
of such lien against the Leased Premises is stayed pending the conclusion of
such contest, Lessee shall not be in default under this Lease until thirty (30)
days after the final determination of the validity thereof by the court or
other

 11
 

tribunal
having proper jurisdiction of the same, within which time Lessee shall satisfy
and discharge such lien to the extent held valid, but the satisfaction,
discharge or bonding of any such lien shall not, in any case, be delayed if
enforcement of the lien is not stayed pending the conclusion of such contest.

Lessee shall
give the Commission written notice no less than ten (10) days in advance of the
commencement of any substantial construction, alteration, addition or
improvement to the Leased Premises in order that the Commission may post
appropriate notices of the Commission’s non-responsibility in connection
therewith.

Section 4.07.          NO
LIENS ON FEE.  The Commission’s
interest in the Leased Premises shall not be subjected to liens of any nature
by reason of Lessee’s construction, alteration, repair, restoration, replacement
or reconstruction of any Improvements on the Leased Premises, or by reason of
any other act or omission of Lessee (or of any person claiming by, through or
under Lessee) including, but not limited to, mechanics’ and materialmen’s
liens.  All persons dealing with Lessee
are hereby placed on notice that such persons shall not look to the Commission
or to the Commission’s credit or assets (including the Commission’s interest
in  the Improvements constructed thereon
or furnishings contained therein) for payment or satisfaction of any
obligations incurred in connection with the construction, alteration, repair,
restoration, replacement, reconstruction or financing thereof by or on behalf
of Lessee.  Lessee has no power, right or
authority to subject the Commission’s interest in the Leased Premises to any
mechanic’s lien or claim of lien.

Section 4.08.          CONDITION
OF LEASED PREMISES.  Lessee’s Work
and all other work performed by or on behalf of Lessee at the Leased Premises
shall be at the sole risk of Lessee, including any and all loss arising or
resulting from the condition of the Leased Premises.  Lessee understands that the Commission has
made no representations concerning the condition of the Real Estate or its
suitability for construction of the Project or for any use or purpose
whatsoever and that the execution of this Lease is based solely upon Lessee’s
inspection of the Real Estate.

Section 4.09.          FAILURE
TO COMPLETE PROJECT.  In the event
Lessee fails to meet its obligations under this Article, the Commission shall
be entitled to any remedies the Commission has under Article XI hereof.  In addition, the Commission may (but shall
not be obligated to), after providing Lessee sixty (60) days prior written
notice and opportunity to cure (unless Lessee commences within such time to
cure such failure and thereafter diligently prosecutes such cure to
completion), take over and complete construction in accordance with the Plans
and Specifications, with such changes as the Commission may, in its reasonable
discretion, deem appropriate (provided the character and scope of the Project
remains materially unchanged), all at the risk, cost and expense of the
Lessee.  If the Commission elects to
complete the construction of the Project, Lessee shall promptly pay to the
Commission the cost of such completion as reasonably estimated by the
Commission, provided that Lessee shall also be liable to reimburse the
Commission on demand for any reasonable costs incurred in excess of such
estimate.

The Commission may assume or reject any contracts entered into by
Lessee in connection with the Project, and may enter into additional or
different contracts for services, labor and for materials required, in the
reasonable judgment of the Commission, to complete construction, and

 12
 

may pay, compromise and settle all claims in connection therewith.  Upon the Commission’s election to take over
and complete construction, Lessee hereby assigns all of its rights in the
contract with the contractor and any subcontractors or material suppliers it
may have or enter into in the future in completing the Project to the
Commission, and all its rights in the Plans and Specifications and all other
contracts in connection with the Project, all subject to any prior assignment
to any Mortgagee, and subject to any consents to such assignment as may be
required from third parties, such assignment or assignments to be accepted and
become effective only in the event the Commission shall proceed with the
remedies afforded herein.  Any contract
entered into by Lessee shall provide that it is assignable to any Mortgagee and
the Commission, or may be terminated by any Mortgagee or the Commission, if a
Mortgagee exercises its rights under its Mortgage or the Commission exercises
it rights under this Section, such rights of the Commission being subject and
subordinate to such rights of a Mortgagee.

Section 4.10.          REPRESENTATIONS,
WARRANTIES AND AGREEMENTS OF LESSEE. 
The Lessee makes the following representations, warranties and
agreements:

(a)           Lessee is a limited liability
company duly formed, validly existing and in good standing under the laws of
the State of Delaware.  Lessee has full
right, power and authority to execute and deliver this Lease.  Lessee shall provide to the Commission,
contemporaneously with the execution hereof, corporate resolutions approving
this Lease and authorizing the signatory hereto to execute this Lease on behalf
of Lessee.  If Lessee is not organized
pursuant to laws of the State of Indiana, it warrants and represents that it is
now duly qualified to do business in the State of Indiana as a foreign limited
liability company and agrees that it will continuously remain so qualified
during the Demised Term.

(b)           Neither the
execution and delivery of this Lease, nor the consummation of the transactions
contemplated hereby, nor compliance with the terms, conditions and provisions
hereof will conflict with or result in a breach of any law or any regulation,
order, writ, injunction or decree of any court or governmental instrumentality
or agency or any agreement or instrument to which Lessee or any guarantor is a
party or by which it or its property are subject or bound, or constitute a
default thereunder or result in the creation or imposition of any lien, charge,
security interest or encumbrance of any nature whatsoever upon any of the
property of Lessee pursuant to the terms of any such agreement or instrument.

(c)           The execution and
delivery of this Lease has been duly authorized by all necessary action on the
part of Lessee, and no authorization, approval or consent by, or from, any
governmental or public regulatory authority is necessary.  This Lease has been duly and validly executed
and delivered by Lessee and constitutes a legal, valid and binding obligation
of Lessee, enforceable in accordance with its terms.  Guarantors’ financial statements delivered to
the Commission prior to the execution and delivery of this Lease fairly present
their respective financial condition as of the date thereof.  Since the dates of such financial statements,
there has been no material adverse change in the assets, liabilities or
financial condition of guarantors as reflected therein.  Neither Lessee nor guarantor has admitted or
failed to disclose a fact or contingency that would materially adversely affect
the consolidated financial position of guarantor reflected in such financial
statements.

 

 13

(d)           There are no
actions, suits, proceedings, investigations or inquiries pending, or to the
knowledge of Lessee or any of the guarantors, threatened, against or affecting
Lessee or any of the guarantors before any court or governmental
instrumentality or agency, the result of which might have a material adverse
effect on Lessee or its operations or consolidated financial condition, or on
the operation of the Leased Premises or the financial condition of any of the
guarantors.

(e)           During the Demised
Term, and within ninety (90) days after the close of each fiscal year, Lessee
shall furnish the Commission the current annual consolidated audited financial
statements of guarantor filed with the U.S. Securities and Exchange Commission
on Form 10-K.  In addition, during the
Demised Term, and within forty-five (45) days after the close of each fiscal
quarter, Lessee shall furnish the Commission current quarterly financial
statements of guarantor filed with the U.S. Securities and Exchange Commission
on Form 10-Q.

(f)            Lessee shall
promptly give the Commission written notice of all litigation, actions, suits
or proceedings, investigations or inquiries before any court or governmental
authority affecting Lessee, the Leased Premises or a guarantor which, if
determined adversely to Lessee, would have a material adverse effect on the
consolidated financial condition of any of the guarantors or on the
consolidated financial condition or operations of Lessee or its ability to
perform any of its obligations under the Lease.

(g)           Lessee shall provide
to the Commission, contemporaneously with the execution hereof, an opinion of
counsel to Lessee as to those matters reasonably requested by the Commission.

ARTICLE V

USE AND
MAINTENANCE

Section 5.01.          BUSINESS
USE.  The Leased Premises shall be
used and occupied by Lessee only for the operation of an ethanol production
facility, including the production, storage and shipment (by truck, railroad,
barge, pipeline and other means of transportation) of ethanol and ethanol
related products and by products, and for related offices, storage tanks,
storage facilities and other facilities incidental to such activity, in
accordance with the description set forth on Exhibit F (the “Permitted
Uses”).  Lessee shall comply
with all laws, orders, rules and regulations in carrying out such Permitted
Uses.  The Leased Premises may not be
used for any other purpose without the Commission’s prior written consent,
which consent may be withheld in the Commission’s sole discretion.  If Lessee shall materially alter its method
of producing ethanol from that described in Exhibit F, Lessee shall notify the Commission prior to
such modification and the Commission may impose reasonable conditions on the
use of the Leased Premises for such alternate method.  Lessee shall not abandon the Leased Premises
at any time during the Demised Term.  If
Lessee shall abandon or surrender the Leased Premises, or be dispossessed by
process of law, or otherwise, any personal property belonging to Lessee and
left on the Leased Premises for more than ninety (90) days shall be deemed to
be abandoned, at the option of the Commission. 
Lessee covenants and agrees that it will use, maintain and occupy the
Leased Premises in a careful, safe and lawful manner.

 14
 

Section 5.02.          MAINTENANCE
OF LEASED PREMISES.  Lessee shall, at
its sole cost and expense, keep the Leased Premises, including, but not limited
to, the entire interior and exterior of all improvements at any time located
thereon, all structural components and mechanical systems, the parking areas,
landscaped areas, lawns, and all other portions of the Leased Premises in good
condition and repair and in good operating condition and in a clean and sightly
condition.  The Commission shall have no
repair or maintenance obligations concerning the Leased Premises.

Section 5.03.          UTILITY
CHARGES.  Lessee agrees to pay all
charges for sewer, trash removal, water, gas, electricity, telephone and all
other utility services used upon the Leased Premises throughout the Demised
Term, including any and all tap-in fees and all costs and expenses incurred in
extending any utility service to the Leased Premises from the point provided by
the utility company, and to indemnify and hold the Commission harmless from any
and all liability resulting from any non-payment for any such services.  Lessee shall abide by all requirements of any
utility providing service to Lessee, and Lessee shall indemnify and hold the
Commission harmless from any and all liability, cost and expense (including
reasonable attorneys’ fees) incurred by the Commission as a result of Lessee’s
use of any utilities.

ARTICLE VI

PAYMENT OF TAXES
AND ASSESSMENTS

Section 6.01.          IMPOSITIONS.  Lessee shall pay or cause to be paid, all
real property taxes, personal property taxes and other taxes, assessments,
including any assessments and other charges provided for in the Declaration;
water and sewer charges, levies, license and permit fees and other governmental
charges of any kind and nature whatsoever, which at any time during the Demised
Term may be assessed, levied, or become due and payable, or become a lien on,
the Leased Premises, Lessee’s leasehold interest therein, improvements or any
appurtenance thereon; all of which are collectively referred to herein as “Impositions”.  All such payments shall be made before any
fine, penalty, interest or cost may be added for non-payment.

Upon written
request, Lessee shall furnish the Commission reasonable evidence of payment of
all such Impositions.

Section 6.02.          LESSEE
CONTESTING IMPOSITIONS.  Lessee shall,
for tax purposes, have the right to seek a reduction in the valuation of the
Leased Premises or its interest therein, including any real or personal
property located on the Leased Premises. 
At its sole cost and expense, Lessee, may contest in good faith the
amount or validity in whole or in part of any Imposition.  Promptly upon request but subject to the
Commission’s normal approval process, the Commission shall execute and deliver
any documents that are reasonably requested by Lessee and required to be signed
by the Commission to permit Lessee to conduct any such contest and shall
cooperate with Lessee  in conducting such
contest, and Lessee shall reimburse all third-party costs incurred by the
Commission.  To the extent permitted by
law, Lessee may defer payment thereof, provided that such contest prevents the
collection of item or items being contested, and provided that if an Event of
Default is continuing Lessee shall provide to the Commission reasonable
security in the amount of the item or items so contested, plus from time

 15
 

to time such additional amounts as may be reasonably required to cover
interest or penalties accrued or to accrue on any such item or items.

The Commission
may, on thirty (30) days written notice to Lessee, require Lessee to pay such
contested item or items or may pay such items out of the security provided to
the Commission if, in the Commission’s reasonable determination, there is undue
delay by Lessee in the prosecution of such proceedings, or if, in the
reasonable determination of the Commission, protection of the Leased Premises
or of the Commission’s interests therein shall require such payment.  When any such contested items shall have been
paid or canceled, any security so deposited to cover them and not applied by
the Commission as a payment, shall be promptly returned to Lessee.

ARTICLE VII

ASSIGNMENT AND SUBLETTING

Section 7.01.          ASSIGNMENT,
SUBLETTING AND MORTGAGING.  Lessee
may not assign this Lease or sublet all or any portion of the Leased Premises
without the prior written approval of the Commission, which approval shall not
be unreasonably withheld.  In granting
such approval consent in this Section 7.01 and Section 7.02 below, the
Commission shall be entitled to consider, among other items, the proposed
assignee’s financial condition, business reputation, nature of the proposed
assignees business, and such other factors as may reasonably bear upon the
suitability of the assignee as a lessee of the Leased Premises and a tenant at
the Port.  No such approval shall be
required for any assignment or sublease to any Affiliate.  Except as permitted under Section 7.02
hereunder, Lessee may not grant a security interest in, pledge or mortgage its
Leasehold Estate, without the prior written approval of the Commission, which
approval may be granted or withheld in the sole and absolute discretion of the
Commission.

As
herein, unless otherwise specified, the following terms have the following
meanings:

“Affiliate”
means, with respect to any person, any other person directly or indirectly
controlling, controlled by or under common control with such person.

“person”
means any natural person, corporation, limited liability company, partnership,
joint venture, association, trust or other entity or organization, including a
government or political subdivision, agency or instrumentality thereof.

“control”
and variations thereof means ownership, directly or indirectly, of more than
50% of the voting securities of or interests in a person.

Section 7.02.          MORTGAGEE
PROTECTIONS.  Notwithstanding
anything in this Lease to the contrary:

(a)           Provided that any
Mortgagee or Lessee provides the Commission with a copy of an executed, or
conformed copy, of a Mortgage which contains the name and address of the
Mortgagee, the Commission hereby covenants and agrees to faithfully perform and
comply with the following provisions with respect to such Mortgage (“Mortgage” and “Mortgagee” mean a mortgage or a mortgagee satisfying the
provisions of this Section 7.02):

 16
 

(b)           Acknowledgement
of Notice.  Upon receipt of a
Mortgage as set forth above, the Commission shall provide a written
acknowledgment to such Mortgagee.  Such
notice from Mortgagee shall not be deemed effective until Lessee or Mortgagee
receives confirmation of delivery of such notice as described in Section 16.01
or the Commission has provided written acknowledgement of such delivery
pursuant to said Sections.

(c)           No Modification
or Lease Impairment.  No action by
Lessee or the Commission to cancel, surrender, or materially modify the terms
of this Lease or the provisions of this Section 7.02 or any other Lease
Impairment shall be binding upon Mortgagee without its prior written consent.

(d)           Notices.  If the Commission shall give any notice,
demand, election or other communication which may adversely affect the security
for a Mortgage, including without limitation a notice of a default or an Event
of Default hereunder (hereinafter collectively “Notices”), to Lessee hereunder, the Commission shall
simultaneously give a copy of each such Notice to the Mortgagee at the address
theretofore designated by it.  No Notice
given by the Commission to Lessee shall be binding upon or affect said
Mortgagee unless a copy of said Notice shall be given to Mortgagee pursuant to
this Section.  In the case of an assignment
of such Mortgage or change in address of such Mortgagee, said assignee or
Mortgagee, by written notice to The Commission, may change the address to which
such copies of Notices are to be sent. 
The Commission shall not be bound to recognize any assignment of such
Mortgage unless and until the Commission shall be given written notice thereof,
a copy of the executed assignment, and the name and address of the assignee;
and such notice shall not be effective until the person giving such notice
receives confirmation of delivery of such notice as described in Section 16.01
or the Commission has provided written acknowledgement of such delivery
pursuant to said Section.  Thereafter,
such assignee shall be deemed to be the Mortgagee hereunder with respect to the
Mortgage being assigned.  If such
Mortgage is held by more than one person, corporation or other entity, no
provision of this Lease requiring the Commission to give Notices or copies
thereof to said Mortgagee shall be binding upon the Commission with respect to
such Mortgage unless and until all of said holders shall designate in writing
one of their number to receive all such Notices and copies thereof and shall
have given to the Commission a copy of an executed, or conformed copy, of  such designation.

(e)           Performance of
Covenants.  The Mortgagee shall have
the right to perform any term, covenant or condition and to remedy any default
or Event of Default by Lessee hereunder within the time periods specified
herein, and the Commission shall accept such performance with the same force
and effect as if furnished by Lessee; provided, however, that said Mortgagee
shall not thereby or hereby be subrogated to the rights of the Commission.

(f)            Delegation to
Mortgagee.  Lessee may delegate
irrevocably to the Mortgagee the exclusive or non-exclusive authority to
exercise any or all of Lessee’s rights hereunder, but no such delegation shall
be binding upon the Commission unless and until either Lessee or the Mortgagee
shall give to the Commission a true copy of the Mortgage (with the relevant
provisions noted in such notice or on such copy of the Mortgage) or other
written instrument effecting such delegation; and such notice shall not be
effective until the person giving such notice receives confirmation of delivery
of such notice described in Section 16.01 or the Commission has provided
written acknowledgement of such delivery pursuant to said Section.

 17
 

(g)           Default by Lessee.  In the event of an Event of Default by Lessee
in the payment of any monetary obligation hereunder, the Commission agrees not
to exercise its remedies hereunder unless and until the Commission provides
written notice of such Event of Default to any Mortgagee and such Mortgagee, or
the Lessee, shall have failed to cure such Event of Default within thirty (30)
business days following receipt of such notice and the expiration of any grace
or cure periods granted to Lessee herein. 
In the event of an Event of Default by Lessee in the performance or
observance of any non-monetary term, covenant, or condition to be performed by
it hereunder, the Commission agrees not to exercise its remedies hereunder
unless and until the Commission provides written notice of such Event of
Default to any Mortgagee and such Mortgagee, or the Lessee, shall have failed to
cure such Event of Default within sixty (60) days following receipt of such
notice  and the expiration of any grace
or cure periods granted Lessee herein; provided, however, (x) if such Event of
Default cannot practicably be cured by Mortgagee within such sixty (60) day
period, (y) if such Event of Default cannot practicably be cured by Mortgagee
without taking possession of the Leased Premises or Foreclosure, or (z) if
Mortgagee is stayed, enjoined or otherwise prevented from curing such Event of
Default, taking possession of the Leased Premises or Foreclosing, then the
Commission shall not exercise its remedies hereunder if and so long as:

(i)                                     In
the case of an Event of Default which cannot practicably be cured by the
Mortgagee within such sixty (60) day period, Mortgagee shall have delivered to
the Commission, prior to the expiration of such sixty (60) day period, a
written notice wherein Mortgagee states that it intends to cure such Event of
Default and, thereafter, shall proceed diligently to cure such Event of
Default.

(ii)                                  In
the case of an Event of Default which cannot practicably be cured by the
Mortgagee without taking possession of the Leased Premises or Foreclosure,
Mortgagee shall have delivered to the Commission, prior to the expiration of
such sixty (60) day period, a written notice wherein Mortgagee states that it
intends to obtain possession of the Leased Premises or Foreclose and cure such
Event of Default and, thereafter, shall proceed diligently to obtain possession
of the Leased Premises (including possession by receiver) or Foreclose and,
upon obtaining such possession or Foreclosing, shall proceed diligently to cure
such Event of Default.

(iii)                               In
the case of a Lessee-Specific Event of Default, Mortgagee shall institute
Foreclosure and diligently prosecute the same to completion (unless in the
meantime it shall acquire Lessee’s Leasehold Estate by assignment, deed or
other transfer in lieu of Foreclosure) and, upon such completion of Foreclosure
or such acquisition, such Tenant-Specific Event of Default shall be deemed to
have no further effect and no longer to be an Event of Default.

If Mortgagee
is stayed or enjoined form taking any action under (i), (ii) or (iii) above,
Mortgagee’s time to take such action shall be extended by the length of time
that such stay or injunction remains in effect, so long as Mortgagee pursues
normal and customary steps to terminate such stay or injunction, and,
thereafter, Mortgagee shall have a reasonable time to take such action.  Mortgagee shall not be required to continue
any action under (i), (ii) or (iii) above. 
However, if Mortgagee terminates or fails to prosecute diligently any
action under (i), (ii) or (iii) 

 18
 

above, then,
upon not less than thirty(30) days prior written notice to Lessee, the Commission
may exercise its remedies with respect to the Event of Default in question,
unless Mortgagee shall thereafter proceed diligently with such action under
(i), (ii) or (iii) above.  Mortgagee
shall not be required to continue any action under (i), (ii) or (iii) above if
and when the Event of Default in question shall be cured.  Nothing herein shall preclude the Commission
from exercising any of its rights or remedies with respect to any other Event
of Default by Lessee during any period of such forbearance, but in such Event
of Default Mortgagee shall have all of its rights provided for herein.  If the Mortgagee, its Affiliate or a
Qualified Operator, shall acquire title to Lessee’s Leasehold Estate hereunder
and shall cure all Events of Default other than Lessee-Specific Events of
Default, then all prior Lessee-Specific Events of Default shall be deemed to
have no further effect and no longer to be Events of Default.

(h)           Foreclosure.  Foreclosure of any Mortgage shall not require
the consent of the Commission or constitute a breach of or default under any
provision of this Lease; and, upon completion of Foreclosure, the Commission
shall recognize Mortgagee, its Affiliate or a Qualified Operator as the new
Lessee hereunder without the necessity of obtaining the Commission’s consent to
such transfer pursuant to Section 7.01, and such new Lessee shall thereafter
have the right to further transfer the Leasehold Estate to a Qualified
Operator.  Upon the acquisition of the
Leasehold Estate by Mortgagee, its Affiliate or a Qualified Operator by
Foreclosure, upon written request by such New Lessee given not later than
ninety (90) days after acquisition of the Leasehold Estate by such New Lessee,
the Commission shall promptly (but not later than ninety (90) days after its
receipt of such request) execute and deliver a New Lease to such New Lessee,
provided that the Commission receives reasonably satisfactory evidence that
Lessee no longer has any rights in and to the Leasehold Estate and/or this
Lease.

(i)            New Lease.  The Commission agrees that in the event of any
termination of this Lease by reason of the disaffirmance hereof by a receiver,
liquidator or trustee for Lessee or its property, Mortgagee may by written
notice given to the Commission within sixty (60) days after such termination
require the Commission to promptly (but not later than ninety (90) days after
its receipt of such request) enter into a New Lease with a New Lessee.  The Commission need not do so, however, unless
and until New Lessee has (i) cured all Events of Default (except
Lessee-Specific Events of Default), and (ii) reimbursed the Commission’s
out-of-pocket costs (including reasonable attorneys’ fees and expenses) to
terminate this Lease, recover the Leased Premises and enter into the New Lease.  If more than one Mortgagee requests a New
Lease, the Commission shall enter into the New Lease with the most-senior
Mortgagee (as determined pursuant to clause (n) below) requesting such New
Lease, upon compliance by such most-senior Mortgagee with the conditions for
such New Lease.  The New Lessee under the
New Lease shall have the same right, title and interest in and to all
Improvements and Equipment located on the Leased Premises as Lessee had under
the terminated Lease immediately prior to its termination, and the Commission
shall cause any Fee Mortgagees to confirm the subordination of their Fee
Mortgages to the New Lease.

(j)            Personal
Liability.  In the event any
Mortgagee, its Affiliate or a Qualified Operator becomes Lessee under this
Lease or New Lessee under a New Lease, such Mortgagee, Affiliate or Qualified
Operator shall be liable for the obligations of Lessee under this Lease or New
Lessee under such New Lease from and after the date it becomes Lessee or New
Lessee for so long as it remains Lessee or New Lessee, provided, any Mortgagee’s
liability shall be limited

 19
 

to its interest in the Leasehold Estate under this Lease or the New
Lease, as the case may be, and such liability shall terminate if and when it
assigns or otherwise transfers the Leasehold Estate under this Lease or the New
Lease, as the case may be, to another person.

(k)           Reimbursement.  As a condition to the Commission’s acceptance
of the cure of an Event of Default or issuance of a New Lease, Mortgagee (or
its Affiliate or New Lessee) shall reimburse the Commission for all out- with
of-pocket costs, including reasonable attorneys’ fees, incurred by the
Commission in connection its obligations under this Section 7.02 with respect
thereto.

(l)            Lessee’s
Leasehold Rights.  Notwithstanding
anything to the contrary herein, so long as Mortgagee’s time to obtain a New
Lease has not expired, it may exercise Lessee’s rights (including Preemptive
Rights) under this Lease, even if a default or Event of Default exists.  Lessee irrevocably assigns to Mortgagee: (i)
to the exclusion of Lessee and any other person, any right to exercise any
Bankruptcy Termination Option; and (ii) any right of Lessee to object to any
Bankruptcy Sale by the Commission.

(m)          Certain
Proceedings.  If the Commission or Lessee
initiates any appraisal, arbitration, litigation or other dispute resolution
proceeding affecting this Lease, then the parties shall simultaneously notify
Mortgagee. Mortgagee may participate in such proceedings on Lessee’s behalf, or
exercise any or all of Lessee’s rights in such proceedings, in each case (at
Mortgagee’s Option) to the exclusion of Lessee. 
No settlement shall be effective without Mortgagee’s consent, unless
Lessee simultaneously pays the settlement, the amount at issue does not exceed
Twenty-Five Thousand Dollars ($25,000), and the claimant has released (or does
not assert) any claim against Mortgagee.

(n)           Multiple
Mortgagees.  If at any time multiple
Mortgagees exist: (i) any consent by or notice to Mortgagee refers to all
Mortgagees; (ii) except under clause (i) the most senior Mortgagee may exercise
all rights of Mortgagee(s), to the exclusion of junior Mortgagee/s; (iii) to
the extent that the most senior Mortgagee declines to do so, any other
Mortgagee may exercise those rights, in order of priority; and (iv) if
Mortgagees do not agree on priorities, a written determination of priority
issued by a title insurance company licensed in the State of Indiana shall
govern.

(o)           Further
Assurances.  Upon request from Lessee
or any Mortgagee (prospective or current), the Commission shall promptly, under
documentation reasonably satisfactory to the requesting party and the
Commission: (i) agree directly with Mortgagee that it may exercise against the
Commission all Mortgagee’s rights in this Lease; and (ii) certify (subject to
any then exception reasonably specified) that to the Commission’s knowledge
this Lease is in full force and effect, that no Lease Impairment has occurred,
that no default or Event of Default exists, the date through which rent and
other charges hereunder have been paid, and other similar matters as reasonably
requested.

(p)           No Merger.  If the Leasehold Estate and the Fee Estate
are ever commonly held, they shall remain separate and distinct estates (and
not merge) without each Mortgagee’s and each fee mortgagee’s consent as long as
any Mortgagee and any fee mortgage remain in effect.

 20
 

(q)           Fee Mortgages.  Every Fee Mortgage shall be, shall state that
it is, and shall be deemed to state that it is, subject and subordinate to this
Lease and any New Lease, and shall attach only to the Fee Estate. A Foreclosure
with respect to a Leasehold Mortgage shall not impair any estate or right under
any Fee Mortgage and shall transfer only the Leasehold Estate.

(r)            Miscellaneous.  Notwithstanding anything to the contrary in
this Lease, Mortgagee may: (i) exercise its rights through an Affiliate, (and
anyone acting under this clause (r) shall have the same rights, protections and
limitations of liability as Mortgagee), provided that any Mortgagee, its
Affiliate or a Qualified Operator shall be entitled to become the new Lessee
hereunder or a New Lessee under a New Lease; (ii) refrain from curing any
default or Event of Default; (iii) abandon such cure at any time; or (iv)
withhold consent or approval for any reason or no reason, except where this
Lease states otherwise. Any such consent or approval must be written. To the
extent any Mortgagee’s rights under this Lease apply after this Lease
terminates, they shall survive such termination.

(s)           Definitions.  As herein, unless otherwise specified, the
following terms have the following meanings:

“Bankruptcy Sale” means a sale of any
property, or any interest in any property, under 11 U.S.C. §363 or otherwise in
any bankruptcy, insolvency, or similar proceeding affecting the owner of such
property.

“Bankruptcy Termination Option” means Lessee’s
right to treat this Lease as terminated under 11 U.S.C. §365(h)(1)(A)(i) or any
comparable provision of law.

“Fee Estate” means the Commission’s fee
interest in the Leased Premises, including the Commission’s reversionary
interest, all subject to this Lease.

“Fee Mortgage” means any mortgage, deed of
trust, collateral assignment or other lien (as modified from time to time)
encumbering the Fee Estate.  A Fee
Mortgage shall not attach to the Leasehold Estate.

“Foreclosure” means any: (i) foreclosure
sale (or trustee’s sale, assignment in lieu of foreclosure, Bankruptcy Sale, or
similar transfer) affecting the Leasehold Estate; (ii) Mortgagee’s exercise of
any other right or remedy under a Leasehold Mortgage (or applicable law) that
divests Lessee of its Leasehold Estate, or (iii) any sale, assignment, deed or
other transfer in or in lieu of (i) or (ii). 
“Foreclose” (and any variation of such term) means to take any
Foreclosure action.

“Lease Impairment” means Lessee’s: (i)
canceling, modifying, restating, surrendering, or terminating this Lease; (ii)
consenting, or failing to object, to a Bankruptcy Sale of any Leased Premises;
(iii) determining that a Total Loss has occurred; (iv) exercising any
Bankruptcy Termination Option; (v) subordinating this Lease or the Leasehold
Estate to any other estate or interest in the Leased Premises; or (vi) waiving
any term(s) of this Lease.

“Leasehold Estate” means Lessee’s leasehold
interest in the Leased Premises under this Lease and the fee interest in the
Improvements located on the Leased Premises.

 21
 

The fee interest in the Improvements located
on the Leased Premises shall be owned by Lessee until the expiration or earlier
termination as provided herein of the Demised Term.

“Lease Termination Notice” means a notice by
the Commission to Mortgagee stating that the Lease has terminated and
describing in reasonable detail any uncured defaults or  Events of Default.

“Lessee-Specific Event of Default” means any
default or Event of Default (i) that arises from any lien or encumbrance
attaching solely to the Leasehold Estate (not the Fee Estate) but junior to the
Leasehold Mortgage; (ii) that Mortgagee or a purchaser in or in lieu of
Foreclosure or New Lessee cannot cure (including without limitation any default
or Event of Default referred to in the following clause (iii); and (iii) that
arise under (1) Section 11.01 (b), (c), (d), (e), (f), (g) or (h), (2) the last
paragraph of Section 11.01, (3) Article XVII, or (4) the Addendum

“Loss” means any Damage or any taking by a
Condemnation Proceeding.

“New Lease” means a new lease of the Leased
Premises and related customary documents such as a memorandum of lease. Any New
Lease shall: (i) commence immediately after this Lease terminated; (ii)
continue for the entire remaining term of this Lease, as if no termination had
occurred, subject to any Preemptive Rights; (iii) give New Lessee the same
rights to Improvements that this Lease gave Lessee; (iv) have the same
terms, including Preemptive Rights, and the same priority, as this Lease,
subject to any subsequent written amendments made with Mortgagee’s consent; and
(v) require New Lessee to cure, with reasonable diligence and continuity,
within a reasonable time, all Events of Default (except Lessee-Specific Events
of Defaults) not otherwise cured or waived.

“New Lessee” means Mortgagee, its Affiliate
or a Qualified Operator.

“Preemptive Right” means any extension right
this Lease gives Lessee.

“Qualified Operator” means an entity that is
approved by the Commission, which approval shall not be unreasonably
withheld.  In granting such approval, the
Commission shall be entitled to consider, among other items, the proposed
entity’s financial condition, business reputation, nature of its business, and
such other factors as may reasonably bear upon the suitability of the entity as
a lessee of the Leased Premises and a tenant at the Port.

ARTICLE VIII

INDEMNIFICATION
AND INSURANCE

Section 8.01.          GENERAL
INDEMNITY.

(a)           Lessee shall
indemnify and hold harmless and defend the Commission, its Commissioners,
officers, employees, agents, successors, transferees and assigns (collectively
referred to in this Section 8.01 as the “Commission”)
from all losses, costs, claims, liabilities,

 22
 

damages and expenses of whatever kind, including reasonable attorneys’
fees, which arise out of or are alleged to arise out of; 1) Lessee’s use and
occupancy of the Leased Premises; 2) any breach or default by Lessee in the performance
of its obligations under this Lease; 3) any activity, work or things done,
permitted or suffered by Lessee in or about the Leased Premises or elsewhere in
the Port, including performance of Lessee’s Work; 4) any act or omission of the
Lessee or any of Lessee’s agents, employees, directors, officers, contractors,
subcontractors, licensees, invitees, successors, assigns, transferees or any
other person on the Leased Premises on behalf of Lessee; 5) or any damage to
the property of or injury to or death of Lessee, its directors, officers,
contractors, subcontractors, licensees, invitees, successors, assigns,
transferees or any other person on the Leased Premises on behalf of Lessee, and
whether based upon, or claimed to be based upon, statutory, contracted, tort or
other liability of the Commission, in whole or in part, or by the negligence of
the Commission, or its breach of contract, breach of warranty, strict liability
or breach of duty (excluding the Commission’s gross negligence or the gross
negligence of the Commission’s officers or employees).

(b)           Lessee, as a
material part of the consideration to the Commission, hereby assumes all risks
of damage to property or injury to persons, in, upon or about the Leased
Premises arising from any cause first occurring during the Demised Term and
Lessee hereby waives all claims in respect thereof against the Commission
(except for the Commission’s gross negligence and the gross negligence of the
Commission’s officers or employees). 
This indemnity includes all, costs, reasonable attorneys’ fees, expenses
and liabilities incurred in the defense of any such claim or any action or
proceeding brought thereon.

(c)           In the case of this
indemnity and each other indemnity by Lessee in this Lease, (i) the Commission
shall give written notice to Lessee promptly upon receiving any notice of any
such indemnified claim; (ii) upon receiving written notice of any such claim
from the Commission, Lessee  shall defend
the Commission with respect to any such claim with counsel selected by Lessee,
subject to the approval of the Commission (unless such counsel is selected by
Lessee’s insurance carrier), which approval shall not be unreasonably withheld,
delayed or conditioned; (iii) Lessee shall control the defense and settlement
of any such claim, provided that Lessee shall not settle any such claim without
the approval of the Commission (unless such settlement is fully covered by
Lessee’s insurance), which approval shall not be unreasonably withheld, delayed
or conditioned.

Section 8.02.          PROPERTY
INSURANCE.

(a)           Throughout the
Demised Term, Lessee shall procure and maintain in full force and effect fire
and extended coverage commercial property insurance written upon the Project
and all buildings and other insurable improvements located upon the Leased
Premises.  Said insurance shall be in an
amount not less than the full replacement cost of the Project and other
buildings and other insurable improvements located upon to the Leased Premises.  Deductibles, if any, included in such insurance
shall be the sole responsibility of Lessee and payments to others shall be
unencumbered by such deductibles.  Lessee
shall also procure and maintain in full force and effect throughout the Demised
Term fire and extended coverage commercial property insurance for the full
insurable value of Lessee’s trade fixtures, furnishings, equipment and all
items of personal property on the Leased Premises.  During the period of any construction,
including construction of the Project, Lessee shall maintain builder’s risk
insurance in an amount

 23
 

sufficient to cover all costs of construction and uninstalled materials
otherwise reasonably acceptable to the Commission.  Such insurance shall include coverage for
earthquake at a sub-limit of $10,000,000.

(b)           Such insurance shall
provide that the insurer shall have no rights of subrogation against either the
Commission or Lessee.  Said insurance
shall be effective not later than the Commencement Date and provide for at
least thirty (30) days written notice to the Commission prior to cancellation
or non-renewal.  On or before the
Commencement Date, Lessee shall provide to the Commission certificates of such
insurance or other proof of such insurance policies evidencing such insurance
is in force.  Appropriate renewal or
replacement insurance conforming to the requirements in (a) above shall be in
force prior to or upon the expiration of any such insurance without any lapse
in coverage.  Such insurance shall be
issued by companies licensed or authorized to provide fire and extended
coverage insurance in the State of Indiana and otherwise reasonably acceptable
to the Commission and having a policyholder rating of not less than “A- VII” in
the then-most current edition of Best’s Insurance Reports; or, if such rating
is changed, the equivalent rating; or, if Best’s Insurance Reports is no longer
published, an equivalent rating in another publication reasonably selected by
the Commission and reasonably satisfactory to Lessee.  Such insurance shall name Mortgagee as loss
payee and shall name the Commission as additional insured.

(c)           If Lessee shall fail
or refuse, for five (5) days after written notice by the Commission to Lessee,
to procure, pay for or keep in force the policies of insurance as set forth
herein (or in Section 8.04 below), or to deliver certificates of insurance or
other proof of such insurance as provided above, the Commission may keep in
force and/or from time to time renew such insurance until compliance by Lessee;
and all sums so expended or expenses so incurred by the Commission under this
section 8.02(c) shall bear interest the Stated Rate per annum; and such sums
and interest shall be treated as additional rent due from Lessee to the
Commission payable within fifteen (15) days after invoice therefore is
delivered to Lessee.

Section 8.03.          LIABILITY
INSURANCE.

(a)           Throughout the
Demised Term, Lessee shall procure and maintain in full force and effect
throughout the Demised Term liability insurance as described below against
claims or suits for bodily injury, including death, or property damage
occurring upon, in or about the Leased Premises.  Such insurance shall name Lessee as insured
and shall name the Commission and such other persons as Lessee may specify as
an additional insureds.

(b)           Such insurance shall
provide that the insurer shall have no rights of subrogation against either the
Commission or Lessee.  Said insurance
shall be effective not later than the Commencement Date and provide for at
least thirty (30) days written notice to the Commission prior to cancellation
or non-renewal.  On or before the
Commencement Date, Lessee shall provide to the Commission certificates of such
insurance or other proof of such insurance policies evidencing such insurance
is in force.  Appropriate renewal or
replacement insurance conforming to the requirements in (a) above shall be in
force prior to or upon the expiration of any such insurance without any lapse
in coverage.  Such insurance shall be
issued by companies licensed or authorized to provide liability insurance in
the State of Indiana and otherwise reasonably acceptable to the Commission and
having a policyholder rating of not less than “A-

 24
 

VII” in the then-most current edition of Best’s Insurance Reports; or,
if such rating is changed, the equivalent rating; or, if Best’s Insurance
Reports is no longer published, an equivalent rating in another publication
reasonably selected by the Commission and reasonably satisfactory to Lessee.

(c)           If Lessee shall fail
or refuse, for five (5) days after written notice by the Commission to Lessee,
to procure, pay for or keep in force the policies of insurance as set forth
herein (or in Section 8.04 below), or to deliver certificates of insurance or
other proof of such insurance as provided above, the Commission may keep in
force and/or from time to time renew such insurance until compliance by Lessee;
and all sums so expended or expenses so incurred by the Commission under this
section 8.02(c) shall bear interest at the Stated Rate per annum; and such sums
and interest shall be treated as additional rent due from Lessee to the
Commission payable within fifteen (15) days after invoice therefore is
delivered to Lessee.

(d)           Lessee agrees to
carry liability insurance providing coverage for the liabilities set forth in
this Article as follows, at its sole expense:

(i)                                     Commercial
general liability insurance against claims or suits for bodily injury to,
including death of, persons or damage to, including loss of use of, property
occurring on or about the Leased Premises with minimum limits of liability of
Five Million Dollars ($5,000,000) combined single limit for each
occurrence.  Deductibles, if any,
included in such insurance shall be the sole responsibility of Lessee and
payments to others shall be unencumbered by such deductibles.  Such insurance shall include but not be
limited to bodily injury liability, personal injury liability, property damage
liability, broad form property damage liability, contractual liability, and
products/completed operations liability.

(ii)                                  Commercial
automobile liability insurance against claims for injury to, including death
of, persons or damage to property occurring in or about the Leased Premises
with minimum limits of liability of Five Million Dollars ($5,000,000) combined
single limit for each accident.  Deductibles,
if any, included in such insurance shall be the sole responsibility of Lessee
and payments to others shall be unencumbered by such deductibles.  Such insurance shall include but not be
limited to bodily injury liability, personal injury liability, property damage
liability, hired car liability, and nonowned auto liability.

(iii)                               Workers
compensation insurance as required by the laws of the State of Indiana, and as
applicable, all appropriate Federal Acts such as, but not limited to the U.S.
Longshoremen and Harborworkers Compensation Act, the Jones Act, and the Federal
Employers Liability Act.  The limit of
liability under employer’s liability shall not be less then Five Million
Dollars ($5,000,000) for each accident.

(iv)                              Pollution
Legal Liability insurance to include pollution clean-up, bodily injury and
property damage, on or off the Leased Premises, with a minimum limit of
liability of $1,000,000 for each occurrence.

 25
 

Lessee may, at its option, purchase a
combination of primary insurance, including commercial general liability
insurance, commercial automobile liability insurance and employers liability
insurance, and umbrella or excess liability insurance that when combined
together meet the Five Million Dollars ($5,000,000) each occurrence/accident
requirement herein.  Such umbrella or
excess liability insurance shall be issued by companies licensed or authorized
to provide liability insurance in the State of Indiana and otherwise reasonably
acceptable to the Commission  and the
insurance carrier and having a policyholder rating of not less than “A- VII” in
the then-most current edition of Best’s Insurance Reports; or, if such rating
is changed, the equivalent rating; or, if Best’s Insurance Reports is no longer
published, an equivalent rating in another publication reasonably selected by
the Commission and reasonably satisfactory to Lessee.

Section 8.04.          BLANKET
COVERAGE.  Notwithstanding anything
to the contrary contained in this Article, Lessee’s obligations to carry the
insurance provided for herein may be brought within the coverage of a so-called
blanket policy or policies of insurance carried and maintained by Lessee;
provided, however, that the coverage afforded the Commission will not be
reduced, diminished or otherwise be different from that which would exist under
a separate policy meeting all other requirements of this Lease by reason of the
use of such blanket policy of insurance, and provided further that the
requirements of this Article are otherwise satisfied.  Such blanket policy shall contain an
endorsement that names the Commission as an additional insured, references the
Leased Premises and guarantees a minimum limit available for the Leased
Premises equal to the insurance amounts required in this Lease.

Section 8.05.          RIGHTS
UPON TERMINATION.  If this Lease is
forfeited or terminated by Lessee for any reason, then all policies of
insurance and all insurance proceeds shall remain the property of Lessee.  Lessee will at the request and expense of the
Commission cooperate with the Commission to seek to have such policies of
insurance assigned to the Commission, however, such policies may not be
assigned by Lessee without the prior written consent of the insurance carrier.

Section 8.06.          WAIVER
OF LIABILITY/SUBROGATION.

(a)           Lessee hereby waives
any and all rights of recovery against the Commission, and against the
Commissioners, officers, employees, agents and representatives of the
Commission, for loss of or damage to Lessee or its property or the property of
others under Lessee’s control.  Lessee
shall, upon obtaining policies of property insurance insuring its property,
including the property insurance required hereunder, give notice to the
insurance carrier or carriers of the foregoing waiver of subrogation as
contained in this Lease and such waiver of subrogation shall be noted on all
such insurance policies and in certificates of insurance which Lessee shall
deliver to the Commission.

(b)           The Commission
hereby waives any and all rights of recovery against the Lessee, or against the
officers, employees, agents and representatives of the Lessee for loss of or
damage to the Commission or its property or the property of others under the
Commission’s control if such loss or damage is insured against under any
insurance policy maintained by the Commission in force at the time of such
loss.

 

 26

Section 8.07.          COMPLIANCE.  Lessee shall comply with all reasonable
requirements of the insurance companies the providing the Leased Premises.

ARTICLE IX

DAMAGE BY CASUALTY

Section 9.01.          REPAIR
OR RESTORATION.  Except as provided
in Section 9.02, in the event of damage to or destruction of any Improvements
by fire or otherwise (herein “Damage”),
Lessee shall promptly repair, restore and rebuild the same as nearly as
possible to their condition existing prior to such damage or destruction, or
replace the same with facilities that are substantially similar in function and
capacity to the Improvements Damaged (herein “Restore”
or “Restoration”), all at the sole
cost and expense of Lessee.  Payment of
Basic Rent, Minimum Guaranteed Wharfage, Impositions and other charges payable
by Lessee hereunder shall not abate because of any such Damage, except as
provided in Section 9.02.

Section 9.02.          LESSEE’S
ELECTION.  If any Improvements shall
be Damaged and (i) the cost of Restoration as reasonably estimated by Lessee (“Restoration Cost”) is an amount equal to or
greater than forty percent (40%) of the replacement cost of the Project
exclusive of excavations, footings and foundations as reasonably estimated by
Lessee (“Replacement Cost”), or
(ii) if any Improvements shall be Damaged during the last year of the Demised
Term and the Restoration Cost is an amount equal to or greater than ten (10%)
of the Replacement Cost, then, Lessee may, in its discretion, by written notice
to the Commission within sixty (60) days after the occurrence of such Damage,
subject to the consent of any Mortgagee, terminate this Lease effective as of a
date not later than sixty (60) days after the date of the notice of
termination.  In the event there is no Mortgage
in effect at the time of the Damage and either (i) or (ii) above occurs, Lessee
shall consult with the Commission and consider in good faith the Commission’s
views as to whether or not to terminate this Lease or Restore the Improvements
Damaged.  Upon any such termination of
this Lease, all Basic Rent, Impositions, Minimum Guaranteed Wharfage and other
charges hereunder of all types shall be adjusted and prorated to the date of
such termination and all other rights and obligations of the parties hereunder
(except under Sections 14.03 and 3.04) thereafter accruing shall be terminated
as of the date of such termination.

As used herein, “Insurance Proceeds”
means and includes all proceeds of the property insurance under Section. 8.02
with respect to any Damage (except any such proceeds with respect to Lessee’s
personal property and Equipment and the interruption of Lessee’s business,
which proceeds shall be Lessee’s property). 
If Damage occurs (a) the party that first becomes aware of it shall
notify the other; (b) all claims for Insurance Proceeds shall be made by
Lessee; (c) Mortgagee may participate in negotiating all claims to Insurance
Proceeds and control the settlement thereof; (d) Lessee and the Commission may
participate in negotiating all claims to Insurance Proceeds and, if there is no
Mortgage in effect, Lessee shall control the settlement thereof; (e) the
parties shall direct the insurer to pay all Insurance Proceeds to Mortgagee or,
if there is no Mortgage in effect, to an insurance trustee as described below;
(f) each party’s rights to receive Insurance Proceeds shall be subject to the
rights of Mortgagee; and (g) all Insurance Proceeds shall be paid and applied
as follows:

 27
 

 

(i)                                     If
and for so long as any Mortgage shall be in effect, all Insurance Proceeds
shall be paid to the Mortgagee under the most senior Mortgage, to be held,
applied and paid in accordance with the following provisions:  (A) if this Lease is not terminated, and if
no default or event of default is continuing under such Mortgage, such
Insurance Proceeds shall be applied (1) first, to pay the out-of-pocket costs
of the Mortgagee, Lessee and the Commission, including reasonable attorneys’
fees, in connection with the collection of such Insurance Proceeds; (2) next,
such Insurance Proceeds shall be made available to Lessee to pay for the cost
of Restoration and Lessee shall perform such Restoration; and (3) next, any
remaining Insurance Proceeds shall at the option of Lessee (to be exercised
either in the Mortgage or at any other time) be paid to Lessee as its property
or applied to the indebtedness secured by such Mortgage; or (B) if this Lease
is terminated or, if a default or event of default is continuing under such
Mortgage, such Insurance Proceeds shall be applied as provided in such
Mortgage; provided, however, Lessee shall be obligated to demolish and remove
the Improvements and restore the Real Estate pursuant to Section 14.03 and,
prior to payment to anyone else, the Insurance Proceeds shall be used to pay
such demolition and restoration costs.

(ii)                                  If
there is no Mortgage in effect, all Insurance Proceeds shall be paid to an
insurance trustee located in Indianapolis, Indiana, reasonably selected by
Lessee and reasonably satisfactory to the Commission, to be held, applied and
paid as follows:  (A) if this Lease is
not terminated and no default or Event of Default is continuing hereunder, such
Instance Proceeds shall be applied (1) first, to pay the out-of-pocket expenses
of Lessee and the Commission, including reasonable attorneys’ fees, in
connection with the collection of such Insurance Proceeds; (2) next, such
Insurance Proceeds shall be made available to Lessee to pay for the cost of
Restoration and Lessee shall perform such Restoration; and (3) next, any
remaining Insurance Proceeds shall be paid to the Lessee; or (B) if this Lease
is terminated, or if a default or Event of Default is continuing hereunder,
such Insurance Proceeds shall be paid (1) first, to pay for Lessee to demolish
and remove the Improvements and restore the Real Estate pursuant to Section
14.03; (2) next, to Lessee to pay the out-of-pocket expenses of Lessee,
including reasonable attorneys’ fees, in connection with the collection of such
Insurance Proceeds; (3) next, to the Commission to the extent necessary to cure
the default or Event of Default; and (4) next, any remaining Insurance Proceeds
shall be paid to Lessee subject to the following sentence.

Mortgagee or any trustee acting under Section 9.02(i) or (ii) or
Section 10.04(i) or (ii) shall be entitled to act on any document it believes
to be genuine; shall have no liability in connection with actions under said
Sections, except such liability as may arise from its willful misconduct or
gross negligence; and may consult with counsel of its choice, including
attorneys employed by it, and shall not be liable for any actions taken or
omitted in accordance with the advice of such counsel.

If Lessee is required to Restore, from and after adjustment and
settlement of the Insurance Proceeds, Lessee shall prosecute with due diligence
the Restoration work so that it shall be 

 28
 

 

completed as promptly as reasonably possible; subject however to the
availability of replacement materials for any damaged Improvements and
replacement parts for any damaged Equipment and Force Majeure.  All such work shall be accomplished in
accordance with Article IV.

ARTICLE X

EMINENT DOMAIN

Section 10.01.        TOTAL
TAKING.  If the entire Leased
Premises shall be taken by an exercise of the power of eminent domain
(hereinafter, including a sale, assignment or other transfer in lieu thereof,
the “Proceeding” or “Condemnation Proceeding”), this Lease shall
terminate as of the date of the vesting of title in the taking authority
pursuant to such Proceeding.  The Basic
Rent, Minimum Guaranteed Wharfage, Impositions and other charges payable by
Lessee hereunder shall be apportioned as of the date of such termination, and
neither party shall have any further liability hereunder, except as provided in
this Article.

Section 10.02.        PARTIAL TAKING.  If less than the entire Leased Premises or
any right appurtenant thereto shall be taken in any such Proceeding, this Lease
shall terminate as to the portion of the Leased Premises so taken upon the
vesting of title in the taking authority pursuant to such Proceeding.  If such partial taking should make it no
longer economic, in Lessee’s good faith judgment, to use the remainder of the
Leased Premises not so taken for the Permitted Uses,  then, Lessee may, in its discretion, by
written notice to the Commission within sixty (60) days after the vesting of
title of the portion of the Leased Premises so taken, subject to the consent of
any Mortgagee, terminate this Lease effective as of a date not later than sixty
(60) days after the date of the notice of termination.  In the event there is no Mortgage in effect
at the time of the Proceeding, Lessee shall consult with the Commission and
consider in good faith the Commission’s views as to whether or not to terminate
this Lease.  Upon such termination of
this Lease, all Basic Rent, Impositions, Minimum Guaranteed Wharfage and other
charges hereunder of all types shall be adjusted and prorated to the date of
such termination and all other rights and obligations of the parties hereunder
(except under Sections 14.03 and 3.04) thereafter accruing shall be terminated
as of the date of such termination.

In the event of a taking of a portion of the Leased Premises, if Lessee
does not terminate this Lease as to the remainder of the Leased Premises, the
Basic Rent and Impositions, shall be equitably reduced in proportion to the
reduction in acreage resulting from such taking.  Lessee shall be responsible for any necessary
Restoration of the Leased Premises as required for Lessee’s use thereof, and
the provisions and conditions in Article IV shall similarly apply to the
Restoration work.

Section 10.03.        TEMPORARY TAKING.  If all or any portion of the Leased Premises
is taken by the exercise of the right of eminent domain for a limited period
(being agreed between the parties on six (6) months or less), this Lease shall
not terminate and Lessee shall continue to perform its obligations hereunder as
though such taking had not occurred, except to the extent that it may be unable
to do so because of the taking.  In the
event of such a temporary taking, (x) if any Mortgage is in effect, the entire
award shall be paid to the Mortgagee to be held, applied and paid as provided
in Section 10.04(i), and (y) if no Mortgage is in effect, the entire award
shall be paid to Lessee if no Event of Default is continuing, unless the period
of public occupancy extends 

 

 29
 

 

beyond the termination of the Demised Term,
in which case the award shall be apportioned between the Commission and Lessee
as of the date of such termination and Lessee’s portion shall be paid as
provided in clause (x) or (y) above as applicable.  Lessee covenants that at the termination of
any such temporary taking during the Demised Term it will, at its sole cost and
expense, unless the taking was initiated by the State of Indiana, Restore the
Leased Premises as nearly as may be reasonably possible to the condition in
which the same were prior to such taking.

Section 10.04.        DISTRIBUTION OF DAMAGES.  As used herein, “Condemnation Proceeds” shall mean and include all damages,
awards and proceeds with respect to the Leased Premises in any Condemnation
Proceeding (except any such proceeds with respect to Lessee’s personal property
and Equipment, Lessee’s relocation expenses and interruption of Lessee’s
business, which proceeds shall be Lessee’s property).  If a Condemnation Proceeding occurs (a) the
party that first becomes aware of it shall notify the other; (b) all claims for
Condemnation Proceeds shall be made by Lessee; (c) Mortgagee may participate in
negotiating all claims to Condemnation Proceeds and control the settlement
thereof; (d) Lessee and the Commission may participate in negotiating all
claims to Condemnation Proceeds and, if there is no Mortgage in effect, Lessee
shall control the settlement thereof; (e) the parties shall direct the payer to
pay all Condemnation Proceeds to Mortgagee or, if there is no Mortgage in
effect, to an trustee as described below; (f) each party’s rights to receive
Condemnation Proceeds shall be subject to the rights of Mortgagee; and (g) all
Condemnation Proceeds shall be paid and applied as follows:

(i)                                     If
and for so long as any Mortgage shall be in effect, all Condemnation Proceeds
shall be paid to the Mortgagee under the most senior Mortgage, to be held,
applied and paid in accordance with the following: (A) first, to the Commission
(1) to reimburse the Commission for its out-of-pocket costs, including
reasonable attorneys’ fees, incurred in connection with the Proceeding; and
(2), to pay to the Commission the value of the Real Estate and any other
interest taken in the Proceeding determined as encumbered by this Lease; (B)
next, if this Lease is not terminated, and if no default or event of default is
continuing under such Mortgage, such Condemnation Proceeds shall be applied (1)
next, to pay the out-of-pocket costs of the Mortgagee and Lessee, including
reasonable attorneys’ fees,  in
connection with the collection of such Condemnation Proceeds; (2) next, such
Condemnation Proceeds shall be made available to Lessee to pay for the cost of
Restoration and Lessee shall perform such Restoration; and (3) next, any
remaining Condemnation Proceeds shall at the option of Lessee (to be exercised
either in the Mortgage or at any other time) be paid to Lessee as its property
or applied to the indebtedness secured by the Mortgage; or (C) if this Lease is
terminated, or if a default or event of default is continuing under such
Mortgage, such Condemnation Proceeds shall be applied as provided in such
Mortgage; provided, however, Lessee shall be obligated to demolish and remove
the Improvement and restore the Real Estate pursuant to Section 14.03 prior to
payment to anyone else and the Condemnation Proceeds shall be made available to
Lessee to pay such demolition and Restoration costs.

(ii)                                  If
there is no Mortgage in effect, all Condemnation Proceeds shall be paid to a
trustee located in Indianapolis, Indiana, reasonably selected by Lessee and 

 

 30
 

 

 reasonably satisfactory to the
Commission, to be held, applied and paid as follows:  (A) first, to the Commission (1) to reimburse
the Commission for its out-of-pocket costs, including reasonable attorneys’
fees, incurred in connection with the Proceeding; and (2) to pay to t he
Commission the value of the Real Estate taken in the Proceeding determined as
encumbered by this Lease; (B) next, if this Lease is not terminated and no
default or Event of Default is continuing hereunder, such Condemnation Proceeds
shall be applied (1) next, to pay the out-of-pocket expenses of Lessee,
including reasonable attorneys’ fees, in connection with the collection of such
Condemnation Proceeds; (2) next, such Condemnation Proceeds shall be made
available to Lessee to pay for the cost of Restoration and Lessee shall perform
such Restoration; and (3) next, any remaining Condemnation Proceeds shall be
paid to the Lessee; or (B) if this Lease is terminated, or if a default or
Event of Default is continuing hereunder, such Condemnation Proceeds shall be
paid (1) first, to pay for Lessee to demolish and remove the Improvements and
restore the Real Estate pursuant to Section 14.03; (2) next, to Lessee to pay
the out-of-pocket expenses of Lessee, including reasonable attorneys’ fees, in
connection with the collection of such Condemnation Proceeds; (3) next, to the
Commission to the extent necessary to cure the default or Event of Default; and
(4) next, any remaining Condemnation Proceeds shall be paid to Lessee.

Section 10.05.        VESTING
OF TITLE.  Whenever the term “vesting
of title” or any similar phrase is used in this Article, a taking of possession
by the condemning party shall be deemed a vesting of title.

Section 10.06.        RIGHTS
ON TERMINATION.  Upon any termination
of this Lease as a result of an exercise of a right of eminent domain, all
Basic Rent, Impositions, Minimum Guaranteed Wharfage and charges of all types
shall be adjusted and prorated to the date of such termination and all other
rights and obligations of the parties hereunder thereafter accruing shall be
terminated as of said date.

ARTICLE XI

DEFAULTS AND REMEDIES

Section 11.01.        DEFAULTS
BY LESSEE.  The happening of any one or
more of the following events shall be deemed to be an “Event of Default”:

(a)           The failure of
Lessee to pay any installment of Basic Rent, Minimum Guaranteed Wharfage, Port
Tariff charge, any Impositions, additional rent or any other amounts hereunder
within five (5) days of when due;

 

(b)           The making by Lessee
or by any guarantor of Lessee’s obligations hereunder of a general assignment
for the benefit of its creditors in connection with an insolvency
reorganization, liquidation or dissolution of Lessee or Guarantor;

 

 31
 

 

(c)           Except in connection
with a Foreclosure of a Mortgage, the levying of a writ of execution or
attachment on or against the Leased Premises as the property of Lessee and the
same is not released or discharged within thirty (30) days after written notice
thereof, or the taking by any party of the leasehold created hereby, or any
part thereof, upon foreclosure or other process of law or equity, except as
permitted hereunder;

(d)           Institution of
proceedings in a court of competent jurisdiction for an insolvency
reorganization, liquidation or dissolution of Lessee or of any guarantor of
Lessee’s obligations hereunder, or for their adjudication as a bankrupt or
insolvent, or for the appointment of a receiver of the property of Lessee or of
any guarantor of Lessee’s obligations hereunder, and said proceedings are not
dismissed, and any receiver, trustee or liquidator appointed therein
discharged, within one hundred eighty (180) days after the institution of said
proceedings;

(e)           The failure of any guarantor
of Lessee’s obligations hereunder to perform any of its covenants under said
guarantor’s guaranty agreement with the Commission within thirty (30) days
after written notice thereof from the Commission to Lessee;

(f)            Any representation
or warranty made herein, or in any financial statement or other document
furnished pursuant to the provisions hereof, shall prove to have been false or
misleading in any material respect as of the time made and any material adverse
consequences thereof shall not be cured within thirty (30) days after written
notice thereof from the Commission to Lessee;

(g)           The vacating or
abandonment of the Leased Premises, which shall be rebutably presumed if Lessee
is absent from the Leased Premises for ten (10) consecutive days or more;

(h)           Lessee fails, by
January 1, 2010, together with its Affiliates, agents, suppliers, contractors
and sub-contractors, to actively employ the equivalent of at least 50 full time
workers at the Leased Premises and such failure shall not be cured within
thirty (30) days after written notice thereof by the Commission to the Lessee;

(i)            Lessee defaults in
the performance of any of its covenants under this Lease (which pursuant to
other terms hereof includes the Addendum), other than those set forth in (a)-(h)
immediately above, and fails to cure such default within thirty (30) days after
written notice thereof.

If such default is of such a character as to require more than a thirty
(30) day period to cure such default, such failure shall not be considered to
be an Event of Default if Lessee has commenced to cure such default within
thirty (30) days of receipt of written notice from the Commission and Lessee
diligently pursues that cure to completion. 
In that instance, such default will not allow the Commission to exercise
its remedies until a period of ninety(90) days has expired after said notice
and the default remains uncured.  Once
that ninety (90) day period has expired and the default has not been cured, the
Commission will have all of its remedies under the Lease Agreement.  If the Lessee has commenced to cure such
default within the thirty (30) day period and has diligently pursued such cure
but it has not yet completed such cure within such ninety (90) day period, then
the Lessee may request an extension of such ninety (90) day period, which
extension shall not be unreasonably withheld.

 32
 

 

Subject to applicable law, in the event that Lessee is
adjudicated to be a bankrupt, this Lease shall automatically terminate and be
of no further force or effect.

Section 11.02.        REMEDIES.  Upon the occurrence and during the
continuance of an Event of Default, the Commission may, subject to applicable
law:

(a)           Without terminating
this Lease, re-enter the Leased Premises, with or without process of law, using
such means as may be necessary, remove all persons and property therefrom, and
re-let the Leased Premises (or any part thereof) for such term or terms (which
may extend beyond the Demised Term) and at such rental and upon such other
terms as the Commission deems advisable. 
The Commission shall not be liable to Lessee for damages or otherwise by
reason of such re-entry.  Upon regaining
possession of the Leased Premises, the Commission may relet the Leased Premises
at such rental and upon such terms as the Commission may deem reasonable under
the circumstances.  The Commission is
authorized to make all necessary repairs and alterations in or to the Leased
Premises for the new lessee and to charge the cost thereof to Lessee.  Any re-entry, repossession and removal by the
Commission shall not be a waiver, release or discharge of any obligation or
liability of Lessee hereunder. 
Notwithstanding any re-entry without termination, the Commission may at
any time thereafter elect to terminate this Lease for Lessee’s default, and be
entitled to the damages set forth in (c) below.

(b)           Without terminating
this Lease, pursue an action for recovery of Basic Rent, Minimum Guaranteed
Wharfage, Impositions, Port Tariff charges, and all other charges payable over
the remainder of the Demised Term of this Lease as the same become due an
payable, less the net proceeds of any reletting of the Leased Premises pursuant
to  (a) above.

(c)           Terminate this Lease
and all rights of Lessee hereunder, without terminating Lessee’s obligations
hereunder, reenter the Leased Premises, with or without process of law, using
such lawful means as may be necessary, and remove all persons and property
there from, and the Commission shall not be liable for damages or otherwise by
reason of such reentry.  The Commission
shall also be entitled to recover immediately, as and for liquidated and agreed
final damages for Lessee’s default, in lieu of the damages in (b) above and any
other comparable damages under applicable law, an amount equal to (i) the
positive difference between (x) the rent and all additional rent reserved
hereunder, if any, for the period to the date upon which the Demised Term would
have ended but for the default of Lessee and (y) the then fair and reasonable
rental value of the Leased Premises for the same period, each discounted to the
present value thereof at an interest rate per annum equal to the Stated Rate as
of the date of such termination, plus (ii) an amount equal to two years of
Basic Rent and Minimum Guaranteed Wharfage, provided that the amount in clause
(i) shall be subtracted form the amount in clause (ii).

(d)           The Commission shall
also be entitled to exercise any other right or remedy available to the
Commission at law or in equity in addition to or as an alternative to any of
the other rights and remedies of the Commission herein specified upon the
occasion of any Event of Default.

 

 33
 

 

Lessee shall be liable for the cost of seizure and repossession of the
Leased Premises and reasonable attorneys’ fees incurred as a result of, or to
complete, the seizure and repossession of the Leased Premises.

Section 11.03.        SECURITY
INTEREST.

(a)           Lessee hereby grants
and transfers to the Commission a security interest in all inventory, equipment
and fixtures now or hereafter located on the Leased Premises or at anytime used
in connection with Lessee’s business carried out on the Leased Premises to
secure the performance by Lessee of Lessee’s obligations under this Lease (the “Collateral”).  Lessee represents and warrants to the
Commission that (i) such security interest will grant to the Commission a first
lien priority security interest in the Collateral and that no other person or
entity holds a security interest in such Collateral; and (ii) Lessee will be
the owner of all Collateral.  Lessee
hereby authorizes the Commission to execute and file financing statements
signed only by a representative of the Commission covering the security
interest granted hereby.

(b)           If an Event of
Default shall have occurred and be continuing, the Commission, at its option,
subject to applicable law, shall be entitled to enter the Leased Premises and
to take immediate possession of the property which is the subject of this
security interest for purposes of disposition or rendering the same unusable.  Upon repossession, the Commission may propose
to retain such property in satisfaction of the obligation of the Lessee secured
hereby or collect or sell all or any portion of same at public or private sale
in accordance with the Uniform Commercial Code as adopted and in effect in
Indiana or any other applicable statute. 
Upon request by the Commission, Lessee shall assemble and make such
property available to the Commission at a place designated by the Commission,
which is reasonably convenient to both the Commission and Lessee.

(c)           Lessee agrees that
the requirement of reasonable notification by the Commission to Lessee of the
time and place of any public or private sale or of the date after which any
private sale or other indicated disposition is to be made shall be met if written
notification is sent at least ten (10) days prior to the date of sale or
disposition.  In the further event that
the Commission shall collect or dispose of any or all of said property after
default, the proceeds of disposition shall be applied in the following order:

(i)                                     To
the reasonable expenses of retaking, holding, preparing for sale, selling,
collecting and the like;

(ii)                                  To
the reasonable attorneys’ fees and legal expenses incurred by the Commission;
and

(iii)                               To
the satisfaction of the obligations of Lessee secured hereby.  Lessee releases and holds harmless the
Commission from any and all claims arising out of the repossession of said
property.

Any successor of Lessee, assignee of Lessee or any party at any time
having the rights of Lessee hereunder, for all purposes of this Section shall
be deemed (i) to have granted and transferred to the Commission, and by its
acceptance, succession or exercise, grants and transfers to the Commission, a
security interest in its respective inventory, equipment and fixtures now or 

 34
 

 

hereafter owned by it and located on the Leased Premises or at any time
used in connection with its business carried on in the Leased Premises, (ii) to
have authorized the Commission to execute and file financing statements, and (iii)
to have given the Commission the same rights as to it and its property as the
Commission has as to Lessee and Lessee’s property.

Section 11.04.        SUBORDINATION.  The Commission will subordinate its interest
hereunder to a Mortgagee provided such Mortgagee, as part of a subordination
agreement, agrees to restore (in accordance with Section 14.03) the Leased
Premises if said Mortgagee exercises its rights in and to such Collateral.  If Mortgagee elects not to exercise its
rights in and to such Collateral, it shall agree to waive its security
interest.

Section 11.05.        ADVANCES.  The Commission may, at its option, after
thirty (30) days prior notice by the Commission to Lessee (subject to Lessee’s
right to cure pursuant to Section 11.01(i)), cure any breach or default of the
Lessee and without any notice cure any Event of Default of Lessee.  Any cost or expense incurred by the
Commission in curing such a breach or default for the account of Lessee,
together with interest at an annual rate of ten percent (10%) per annum, shall
be deemed additional rental due from Lessee to the Commission within twenty
(20) days after demand by the Commission.

Section 11.06.        ATTORNEYS’ FEES.  In the event the Commission employs attorneys
to enforce all or any part of this Lease, modify this lease at the request of
Lessee, collect any rent due or to become due or recover possession of the
Leased Premises, the Lessee agrees to reimburse the Commission for its
reasonable attorney’s fees incurred thereby, provided that, in the case of any
such enforcement, collection or recovery of possession, the Commission is
the  successful party.

ARTICLE
XII

ACCESS TO PREMISES

Section 12.01.        INSPECTION.  The Commission shall have the right to enter
upon the Leased Premises at any reasonable time after reasonable notice to
Lessee for the purpose of inspecting the same to determine that Lessee is fully
performing all of its obligations under this Lease.  The Commission shall use reasonable efforts
to coordinate such inspections so as not to interfere with Lessee’s operations.

Section 12.02.        EXHIBITION OF LEASED PREMISES.  During the last six (6) months of the Demised
Term, the Commission may, upon reasonable notice and during normal business
hours, enter upon the Leased Premises for the purpose of exhibiting the same to
prospective lessees, operators or purchasers. 
At any time during the Demised Term, upon reasonable notice to Lessee,
the Commission shall have the right to enter upon the Leased Premises for the
purpose of exhibiting the same to prospective purchasers or mortgagees.

Section 12.03.        EXERCISE OF RIGHTS.  The parties stipulate and agree the entry by
the Commission upon the Leased Premises permitted by this section shall never
be deemed a trespass upon the Leased Premises or a constructive eviction of
Lessee therefrom.

 

 35
 

 

ARTICLE
XIII

THE COMMISSION’S COVENANTS AND WARRANTIES

Section 13.01.        COMMISSION’S COVENANT OF QUIET
ENJOYMENT.  The Commission covenants
and agrees that Lessee, upon paying the Basic Rent, Minimum Guaranteed
Wharfage, Impositions, Port Tariff charges and all other charges herein
provided for and observing and keeping the covenants, agreements and conditions
of this Lease on its part to be kept and performed, may lawfully and quietly
hold, occupy and enjoy the Leased Premises during the Demised Term in
accordance with the provisions hereof.

Section 13.02.        USE OF PUBLIC FACILITIES.  Lessee shall have the non-exclusive right to
use all public wharves, docks and related facilities existing at the Port or
which may hereafter be added, subject to (i) any preferential or exclusive
rights given by the Commission to others set forth in Exhibit G hereto (provided that the
Commission shall not amend or otherwise modify any such preferential or
exclusive rights in any way, or grant any additional preferential or exclusive
rights that would, have a material adverse effect on Lessee’s use or operation
of the Project), (ii) the rights of any operator thereof (provided that any
such operator shall take and operate subject to the provisions of this Lease),
and (iii) the provisions of Section 3.03, 3.04, 4.04  and 8.07 hereof.  In connection with its use of such public
facilities, Lessee shall cooperate with the tenants and users of such public
facilities and not impair their ability to use such public facilities in a
timely and efficient manner.

Section 13.03.        PUBLIC FACILITIES.  The Commission shall use reasonable efforts,
utilizing existing infrastructure, to provide rail and road access to the
Leased Premises. Notwithstanding the foregoing, Lessee agrees to indemnify and
hold the Commission harmless from any and all damage or injury resulting from
Lessee’s loading, unloading and any other use of the docks, wharves, berths,
channels, waterways, roads and rail tracks. 
The Commission does not guaranty rail service to the Port and/or the
Leased Premises.

Section 13.04.        DEFAULT BY THE COMMISSION.  In the event the Commission shall fail to
comply with and perform its obligations under this Lease, or commence to comply
with and perform and diligently proceed, within sixty (60) days after written
notice thereof has been given to the Commission by the Lessee, Lessee may  or (i) terminate this Lease, or (ii) exercise
any other remedy available to Lessee at law or in equity.

Section 13.05.        OTHER ETHANOL PLANTS.  The Commission agrees, subject to the
provisions below, during the Demised Term, not to enter into a new lease of
property at the Port for the construction of another ethanol production
facility.  Such agreement is subject to
all rights of existing tenants at the Port under existing agreements.  Such agreement shall terminate and be of no
further force and effect immediately upon the occurrence of any one of the
following events:

(i)                                     Termination
of this Lease;

(ii)                                  Failure
to meet the construction/operation time frames set forth in Section 4.01(b)
hereof;

 

 36
 

 

(iii)                               Failure
to produce sufficient ethanol to meet the minimum requirements set forth in
Section 3.04 hereof;

(iv)                              Failure
to meet the job creation requirements of Section 11.01(h) hereof; or

(v)                                 Any
Event of Default other than (ii) thru (iv) above occurs under the Lease and is
not cured after thirty (30) days prior written notice from the Commission.

The Commission represents and warrants that it has not granted any
other person a lease or right to construct or operate another ethanol
production facility at the Port.  The
Commission agrees that, in the event of a breach of the provisions of this
Section, the damages to Lessee may be difficult or impossible to determine and,
accordingly, the provisions of this Section may be enforced by an action or
proceeding for injunction and/or specific performance or any remedy available
to Lessee at law or in equity.

Section 13.06.        REPRESENTATIONS, WARRANTIES AND
AGREEMENTS.  The Commission makes the
following representations, warranties and agreements:

(a)           The
Commission is a body politic and corporate duly created, validly existing and
in good standing under the laws of the State of Indiana.  The Commission has full right, power and
authority to execute and deliver this Lease.

(b)           Neither
the execution and delivery of this Lease, nor the consummation of the
transactions contemplated hereby, nor compliance with the terms, conditions and
provisions hereof will conflict with or result in a breach of any law or any
regulation, order, writ, injunction or decree of any court or governmental
instrumentality or agency or any agreement or instrument to which the
Commission is a party or by which it or its property are subject or bound, or
constitute a default thereunder or result in the creation or imposition of any
lien, charge, security interest or encumbrance of any nature whatsoever upon
any of the property of the Commission pursuant to the terms of any such
agreement or instrument.

(c)           The
execution and delivery of this Lease has been duly authorized by all necessary
action on the part of the Commission, and no authorization, approval or consent
by, or from, any other governmental or public regulatory authority is necessary
for the Commission to enter into the same, except for the Attorney General of
the State of Indiana and the Governor as provided in Article II.  This Lease has been duly and validly executed
and delivered by the Commission and constitutes a legal, valid and binding
obligation of the Commission, enforceable in accordance with its terms, subject
to execution hereof by the Attorney General of the State of Indiana and the
Governor as provided in Article II.

ARTICLE
XIV

RIGHTS
ON TERMINATION OR EXPIRATION

Section 14.01.        SURRENDERING OF LEASED PREMISES.

(a)           At
the expiration or earlier termination of the Demised Term, whether by lapse of
time or otherwise, Lessee shall surrender the Leased Premises to the Commission
in such 

 

 37
 

 

condition at the time of surrender as this Lease
otherwise requires.  If Lessee elects to
surrender the Project to the Commission pursuant to Section 14.01(b) and the
Commission elects to accept such surrender pursuant to Section 14.01(c), such
surrender shall also include the surrender to the Commission of the Project
(other than Lessee’s fixtures, manufacturing equipment and movable equipment (“Equipment”) and other personal property) in an “AS-IS”
condition at the time of surrender, with both the Leased Premises and the
Project free and clear of all liens and encumbrances created by or arising out
of the acts of Lessee.

(b)           At the expiration or
earlier termination of the Demised Term, Lessee shall have the right to
surrender the Project to the Commission, provided that no Event of Default is
continuing at such time.  In order to
exercise such right at the expiration of the Demised Term, Lessee shall give
the Commission written notice of its election to surrender the Project to the
Commission not later than ninety (90) days prior to the scheduled expiration of
the Demised Term.  In order to exercise
such right upon the earlier termination of the Demised Term, Lessee shall give
to the Commission written notice of such election to surrender the Project to
the Commission not later than thirty (30) days after receipt by Lessee of the
notice of termination from the Commission. 
If Lessee does not give notice within the applicable period stated
above, of Lessee’s election to surrender the Project to the Commission, Lessee
shall be deemed to have elected not to surrender the Project, and Lessee shall
remove the Improvements (including Equipment and other personal property) from
the Leased Premises pursuant to Section 14.03.

(c)           If Lessee gives
notice within the applicable period stated above of its election to surrender
the Project to the Commission, the Commission shall have the right to accept or
reject Lessee’s surrender the Project by written notice to Lessee given within
sixty (60) days after the Commission’s receipt of Lessee’s notice electing to
surrender the Project.  If the Commission
does not give notice within said sixty (60) day period of the Commission’s
election to accept Lessee’s surrender the Project, the Commission shall be
deemed to have elected to reject such surrender.  If an Event of Default is continuing and the
Commission elects to terminate this Lease by reason thereof, the Commission
shall have the right to elect that Lessee so surrender the Project to the
Commission pursuant to Section 14.01(a), which right shall be exercisable by
the Commission by notice to Lessee contained in the Commission’s notice
terminating this Lease.  If the
Commission gives notice within said sixty (60) day period of the Commission’s
election to accept Lessee’s surrender of the Project or in the Commission’s
notice of termination, as applicable, Lessee shall surrender the Project
pursuant to Section 14.02.

Section 14.02.        DELIVERY
OF DOCUMENTS TO THE COMMISSION.  In
the event Lessee elects to surrender the Project to the Commission pursuant to
Section 14.01 and the Commission accepts such surrender pursuant to said
Section, upon the surrendering by Lessee of the Leased Premises, Lessee shall
within thirty (30) days after the 
expiration or earlier termination (as applicable) of the Demised Term
deliver to the Commission the following:

(a)           Such documents,
instruments and conveyances as the Commission may reasonably request to enable
the Commission’s ownership of the Improvements constructed by Lessee to be
reflected of record, including without limitation a deed or a termination of
lease, in recordable form, to the Improvements or a bill of sale.

 

 38

(b)           A recordable
assignment of Lessee’s interest as lessor in all subleases (if any),
theretofore approved by the Commission. 
Such assignment shall state the Commission shall not be obligated for
any prior default of Lessee under said subleases.

(c)           All deposits,
prepaid rents and other amounts held by Lessee under any subleases and
assignments of Lessee’s interest in all such items held by others for the
Commission or Lessee.

(d)           All construction
plans, elevations, specifications, surveys, permits and other Documents
(excluding proprietary information and trade secrets) relating to and necessary
or convenient for the operation of the Improvements constructed by Lessee.

(e)           All warranties on
the Improvements constructed by Lessee to the full extent such warranties are
assignable and all plans, elevations, specifications, engineering drawings and
prints relating to said Improvements together with bills of sale or assignments
to the Commission as the Commission may reasonably request with respect to any
of the above.

(f)            An amount equal to
the accrued but unpaid Impositions with respect to the Leased Premises,
prorated to the date of expiration or termination.  Impositions which are a lien and are payable
for prior years will be paid in full and Impositions which are a lien and are
payable or will become so for the year of termination shall be prorated to the
date of termination based on the best available information as to the amount of
Imposition due.  All documents required
to be delivered by Lessee to the Commission in this Section shall be in form
reasonably satisfactory to the Commission and Lessee.

Section 14.03.        REMOVAL
OF ALL IMPROVEMENTS.  In the event
Lessee elects not to surrender the Project to the Commission pursuant to
Section 14.01 or the Commission does not accept such surrender pursuant to said
Section, Lessee shall be required to demolish and remove from the Real Estate
all of the Improvements (including Equipment and other personal property), and
Lessee shall commence and complete, subject to Force Majeure, such demolition
and removal at Lessee’s sole cost and expense within a reasonable time and
shall restore the Real Estate substantially to their condition as of the date
of execution of this Lease.  Before
commencing any demolition or removal, Lessee shall furnish to the Commission
its plan for restoring the Leased Premises (the “Premises Restoration Plan”) and reasonable security assuring
completion of the demolition and removal and restoration as required by this
Section.  In the event that Lessee shall
fail to complete such demolition and removal within a reasonable time and such
failure shall continue for thirty (30) days after written notice by the
Commission to Lessee (or such longer period as may be required if Lessee is
prosecuting such demolition and removal with reasonable diligence), the
Commission shall be entitled to complete the same, and the out-of-pocket costs
thereof to the Commission shall be payable by Lessee within twenty (20) days
after demand therefor, and the Commission may recover such costs from the
security provided by Lessee.

Section 14.04.        PROPERTY
NOT REMOVED.  Upon the expiration or
earlier termination of this Lease, provided an Event of Default does not exist
and provided Lessee has provided the security required by Section 14.03, Lessee
shall have the right to remove all of its fixtures, Equipment and other
personal property.  Any such property of
Lessee which shall remain in or upon the 

 

 39
 

 

Leased Premises for more than thirty (30) days after the expiration or
earlier termination of this Lease shall be deemed to have been abandoned by
Lessee and, at the option of the Commission, such property: (a) shall be
retained by the Commission as its property; (b) shall be disposed of by the
Commission in such manner as the Commission shall determine, without
accountability to Lessee or any other person; or (c) shall be promptly removed
by Lessee at Lessee’s expense upon written request thereof from the
Commission.  The Commission shall not be
responsible for any loss or damage occurring to any property owned by
Lessee.  In addition, if the property is
left at the Leased Premises, the Commission may deem Lessee to be holding over
in accordance with Section 14.05.

Section 14.05.        HOLDING
OVER.  In the event Lessee remains in
possession of the Leased Premises with the consent of the Commission after the
expiration of the Demised Term, and without the execution of a new Lease or an
extension of this Lease, it shall be deemed to be occupying the Leased Premises
as a lessee from month to month at one hundred fifty percent (150%) of the
Basic Rent payable during the last month of the Demised Term, and subject to
all the other conditions, provisions and obligations of this Lease insofar as
the same are applicable to a month-to-month tenancy, including the payment of
additional rent and all other charges required hereunder.  Such month-to-month tenancy may be terminated
by either party as of the end of any calendar month upon the giving of notice
of such termination prior to the beginning of such calendar month.

Section 14.06.        SURVIVAL.  Notwithstanding the expiration or earlier
termination of this Lease, Lessee and the Commission shall be obligated to pay
and/or perform all amounts and indemnities set forth in this Lease accrued or
arising out of events occurring on or prior to the date of such expiration or
termination, which obligations shall survive the expiration or termination of
this Lease.

ARTICLE XV

HAZARDOUS MATERIAL

Section 15.01.        HAZARDOUS
MATERIAL.

(a)           Subject to the
Permitted Uses as provided for in Section 5.01, Lessee shall not use, store,
generate, treat, transport, dispose of, handle, stevedore or warehouse any
Hazardous Materials, in, from, under or about the Leased Premises or otherwise
in the Port.  Provided however, (A) petroleum
and petroleum derivatives in limited quantities and as necessary for the
Permitted Uses, may be used and located at the Leased Premises if such
substances are kept in compliance with all Environmental Laws except that
Underground Storage Tanks may not be used, unless approved pursuant to Section
15.01(f) below, and (B) other materials or substances may be used in quantities
necessary for the Permitted Uses, provided such materials are kept in
accordance with all provisions of this Article XV.  All Hazardous Materials besides those listed
in this subsection as permitted are prohibited, and use or other handling of
same by Lessee shall be considered an Event of Default under this Lease.

The term “Hazardous Material”
as used herein means any hazardous or toxic substance, material or waste which
is or becomes regulated by any local governmental authority, the State 

 

 40
 

 

of Indiana or the United States Government.  The term “Hazardous
Material” includes, without limitation, any material or substance
which is (i) designated as a “hazardous substance” pursuant to Section 311 of
the Federal Water Pollution Control Act, as amended from time to time (33
U.S.C. Section 1321), (ii) defined as a “hazardous waste” pursuant to Section
3004 of the Federal Resource Conservation and Recovery Act, as amended from
time to time (42 U.S.C. Section 6904), (iii) defined as a “hazardous substance”
pursuant to Section 101 of the Comprehensive Environmental Response,
Compensation and Liability Act, as amended from time to time (42 U.S.C. Section
9601), (iv) petroleum or petroleum derivatives, or (v) fertilizer (liquid or
solid).

(b)           Lessee, at its sole
cost and expense, shall comply with all laws, statutes, ordinances, rules,
regulations and orders of any governmental authority having jurisdiction
concerning environmental, health or safety matters (“Environmental Laws”), including, but not limited to, any
discharge into the air, surface water, sewers, soil or groundwater; any use,
generation, treatment, storage, disposal or transportation of any Hazardous
Material (as hereinafter defined) by Lessee, its agents, employees, contractors
or invitees, whether within or outside the Leased Premises or otherwise in the
Port; permitting; and reporting upon releases or spills of materials.

(c)           Lessee shall provide
the Commission, on the lease anniversary date, written certification that it is
in compliance with all Environmental Laws or shall explicitly describe Lessee’s
noncompliance, including Lessee’s intended course of action and time frame for
coming into compliance.  Additionally,
Lessee shall provide the Commission with a duplicate copy of any emergency
preparedness and response plans or any environmental compliance audits of
self-analyses which it has prepared or has had prepared pursuant to any legal
requirement or for any other reason.  The
Commission assumes no responsibility for reporting or implementation of the
plan by virtue of possession of said duplicate copy.

(d)           Lessee shall provide
the Commission with copies of any notice of alleged violations by Lessee, or of
claims against Lessee, relating to Environmental Laws, or any changes to its
emergency preparedness and response plans. 
Lessee shall provide such copies within five (5) days of receiving any
such notice or making any such change. 
Lessee shall give written notice to the Commission within one (1)
business day after the date on which Lessee learns or first has reason to
believe that any release, discharge or emission of any Hazardous Material has
occurred on, in, or about the Leased Premises.

(e)           Lessee, on its own
behalf and on behalf of its successors and assigns, hereby releases and forever
discharges the Commission, its officers, directors, employees and agents, both
in their capacities as corporate representatives and as individuals, from any
and all claims, actions or liabilities of any manner whatsoever, whether in law
or equity, whether now or hereafter claimed or known, which Lessee now has or
may have in the future against the Commission arising from or relating in any
way to releases or threatened releases of Hazardous Material brought upon,
generated or discharged from, or stored or used in or about the Leased Premises
or otherwise in the Port by Lessee, its successors, assigns, agents, employees,
contractors or invitees, or which arise from Lessee’s failure or alleged
failure to comply with all Environmental Laws.

 

 41
 

 

(f)            Lessee shall not
install any tank (as such term is defined in 40 C.F.R. §260.10, as amended from
time to time) on the Leased Premises without the prior written approval of the
Commission.

(g)           If the presence of
any Hazardous Material in the Leased Premises or otherwise in the Port caused
or permitted by Lessee (even if consented to or allowed by the Commission) or
Lessee’s use, storage, treatment, transportation, generation or disposal of
Hazardous Material results in contamination (in any amount or degree) of the
Leased Premises, the Port, other property not a part of the Port, or injury to
any person, then Lessee shall indemnify, defend and hold the Commission
harmless from any and all claims, judgments, damages, penalties, fines, costs,
liabilities or losses (including without limitation, diminution in value of the
Leased Premises or the Port, damages for the loss or restriction on use of
rentable or usable space or of any amenity of the Leased Premises or the Port,
damages arising from any adverse impact on marketing of space in the Port, and
sums paid in settlement of claims, actual attorneys’ fees, consultant fees and
expert fees) which arise during or after the Demised Term as a result of such
contamination or injury.  This
indemnification of the Commission by Lessee includes, without limitation, costs
incurred in connection with any investigation of site conditions or any
cleanup, remediation, removal, response or restoration work required by any
federal, state or local governmental agency or political subdivision because of
Hazardous Material present in the soil or ground water on or under the Leased
Premises or other property not a part of the Port.  The indemnification and hold harmless
obligations of Lessee under this Section shall survive any termination of the
Lease.  Without limiting the foregoing,
if the presence of any Hazardous Material in the Leased Premises or otherwise
in the Port caused or permitted by Lessee results in any contamination of the
Leased Premises or the Port, Lessee shall promptly take all actions at its sole
expense as are necessary to return the Leased Premises or the Port to the
condition existing prior to the introduction of any such Hazardous Material to
the Leased Premises or the Port; provided that the Commission’s approval of
such actions shall first be obtained, which approval shall not be unreasonably
withheld so long as such actions, in the Commission’s sole and absolute
discretion, would not potentially have any materially adverse long-term or
short- term effect on the Leased Premises or the Port.  Lessee shall not enter into any settlement
agreement, consent, decree or other compromise with respect to any claims
relating to any Hazardous Material in any way connected with the Leased
Premises without first notifying the Commission of Lessee’s intention to do so
and offering the Commission the opportunity to participate in any such
proceedings.

(h)           The Commission shall
have the right, at any time, to cause at least four (4) permanent testing wells
to be installed in the Leased Premises in locations selected by the Commission
at the Commission’s sole discretion and may at its option cause the ground
water to be tested to detect the presence of Hazardous Material at least once
every twelve (12) months during the Demised Term by the use of such tests as
are then customarily used for such purposes. 
If Lessee so requests, the Commission shall supply Lessee with copies of
such test results.

The costs of such tests and of the maintenance, repair
and replacement of such wells shall be deemed an Imposition for which Lessee
shall be liable for the cost thereof. 
Lessee shall have the right at any time during the Demised Term to
conduct its own test of the ground water underlying the Port by using such
wells so long as each of the following conditions are satisfied: (i) such tests
are conducted by Lessee at its own expense; (ii) Lessee repairs any damage to
such 

 

 42
 

 

wells caused by such tests; and (iii) Lessee delivers
copies of the results of such tests to the Commission.

(i)            Any increase in the
premiums for necessary insurance on the Leased Premises or the Port which
arises from Lessee’s use, generation, transport and/or storage of Hazardous
Materials shall be solely at Lessee’s expense. 
Lessee shall procure and maintain at its sole expense such additional
environmental insurance as may be necessary to comply with any requirement of
any Federal, State or local government agency with jurisdiction.  Lessee shall provide to the Commission
evidence of insurance or other financial resources available to Lessee
sufficient to assure Lessee’s ability to comply with its obligations under this
Section and the Environmental Laws.

(j)            The Commission
shall have the right, from time to time, as deemed reasonably necessary by the
Commission and during the last year of the Demised Term, to perform
environmental inspections, audits or site assessments of the Leased Premises (“Environmental Audits”) to ascertain Lessee’s
compliance with the terms of this Section. 
In the event the Commission’s Environmental Audits reveal
non-compliance, the Commission shall so notify Lessee (“Commission’s Non-Compliance Notice”) and
Lessee shall have a period of sixty (60) days from receipt of Commission’s
Non-Compliance Notice to remedy such non-compliance, provided that if the
non-compliance extends beyond sixty (60) days through no fault of Lessee’s,
Lessee shall have additional time to remedy such compliance.  In the event Lessee fails to remedy the
non-compliance in the aforesaid period, the Commission shall have the right to
do so and Lessee shall, upon demand, reimburse the Commission for the costs
thereof plus interest thereon at ten percent (10%) per annum from the date such
costs are incurred to the date such costs are repaid to the Commission.  The Commission may also provide a copy of
such Environmental Audits to any federal, state or local governmental agency
having jurisdiction over the Leased Premises or Hazardous Materials.  The responsibility for paying for the
Environmental Audits shall be determined according to subsection “k” of this
Section.

(k)           Prior to Lessee
taking possession of the Leased Premises, Lessee or the Commission may arrange
for an Environmental Audit (the “Baseline
Environmental Audit”) of the Leased Premises to determine the
presence of any Hazardous Material in the soil, surface water or groundwater of
the Leased Premises.  An environmental
consultant who shall be approved by both Lessee and the Commission shall
conduct the Baseline Environmental Audit. 
The Party acquiring the study shall pay for the cost of the Baseline
Environmental Audit.  The reports
prepared in connection with the Baseline Environmental Audit shall be provided
to both the Commission and the Lessee. 
If a Baseline Environmental Audit is not obtained under this provision,
there shall be a rebutable presumption that the Leased Premises are free from
the presence of any Hazardous Material as defined herein.

If any subsequent Environmental Audit conducted
pursuant to subsection “j” of this Section indicates the presence of Hazardous
Materials in amounts greater than those found in the Baseline Environmental
Audit, Lessee shall pay the costs of such subsequent Environmental Audit;
otherwise, the Commission and Lessee shall jointly pay the costs of such
subsequent Environmental Audit.

 

 43
 

 

(l)            Prior to expiration
or earlier termination of the Demised Term, Lessee shall (i) cause all
Hazardous Materials previously owned, stored or used by Lessee to be removed
from the Leased Premises and disposed of in accordance with applicable
Environmental Laws; (ii) remove any above ground or underground storage tanks
or other containers installed or used by Lessee to store any Hazardous
Materials on the Leased Premises, and repair any damage to the Leased Premises
caused by such removal; (iii) cause any soil or other portion of the Leased
Premises which has become contaminated by any Hazardous Materials stored or
used by Lessee on the Leased Premises to be decontaminated, detoxified or
otherwise cleaned up in accordance with the requirements of Environmental Laws
or applicable governmental authorities; and (iv) surrender possession of the
Leased Premises to the Commission free of contamination attributable to
Hazardous Materials generated, used, stored, treated or disposed of by Lessee
or stored or disposed of by any other party other than the Commission in or on
the Leased Premises during the Demised Term.

Should any clean up for which Lessee is responsible
not be completed prior to the expiration, or sooner termination of this Lease,
including any extensions thereof then: (i) Lessee shall deposit into an escrow
account an amount of money equal to the balance of the estimated cost of the
clean up, which amount shall be estimated by the Commission or its consultant,
together with instructions for the disbursement of such amount in payment of
the costs of any remaining clean up as it is completed, and (ii) if the nature
of the contamination or the clean up required of Lessee is of such a nature as
to make the Leased Premises untenantable or unleaseable, then Lessee, at the
Commission’s sole option, shall be liable to the Commission as a holdover
tenant until the clean up has been sufficiently completed to make the Leased
Premises suitable for lease to third parties.

(m)          If any Environmental
Audits conducted by the Commission or the financial information required of
Lessee hereunder indicate that Lessee does not have insurance or other financial
resources sufficient to enable Lessee to fulfill its obligations under this
Lease whether or not accrued, liquidated, conditional or contingent, then
Lessee shall, at the request of the Commission, procure and thereafter maintain
in full force and effect such environmental impairment liability and/or
pollution liability insurance policies or endorsements in addition to those
required hereunder, or shall otherwise provide such collateral or security
reasonably acceptable to the Commission as is appropriate to assure that Lessee
will be able to perform its duties and obligations under this Lease.

ARTICLE XVI

NOTICES/ESTOPPEL

Section 16.01.        MANNER
OF GIVING.  Whenever under this Lease
a provision is made for notice of any kind, such notice shall be in writing and
either personally delivered, sent by registered or certified mail, return
receipt requested, postage prepaid, or by recognized overnight courier
service.  Notice to the Commission shall
be mailed to 150 West Market Street, Suite 100, Indianapolis, Indiana 46204,
Attn: General Counsel and to Port of Indiana-Mount Vernon, Mount 2751 Bluff
Road, Mount Vernon, Indiana, Attn: Port Director, and to Ice Miller LLP, One
American Square, Suite 3100, Indianapolis, IN 46282-0200, Attn: Mark D. Grant,
Esq., or to such other post office address as the Commission may furnish to
Lessee for such purpose.

 

 44
 

 

Notice to
Lessee shall be mailed to Aventine Renewable Energy — Mt Vernon, LLC, 1300 S.
Second Street, Pekin, IL 61544 Attn: Ajay Sabherwal, with copy to Aventine
Renewable Energy, Inc., 1300 S. Second Street, Pekin, IL 61544 Attn:
__________, and with copy to Davis Polk & Wardwell, 450 Lexington Avenue,
New York, NY 10017, Attn: John H. Butler, Esq., or to such other addresses as
Lessee may furnish to the Commission for such purpose, and with copy to any
Mortgagee who has given notice of its Mortgage pursuant to Section 7.02 at its
address and with copy to its copy address furnished pursuant to Section 7.02,
or to such other addresses as such Mortgagee may furnish to the Commission for
such purpose.

Notice by (a) personal delivery, (b) recognized overnight national
courier service, or (c) registered or certified mail, is deemed to be received
at the time notice is delivered to a party’s designated address.  Confirmation by the courier delivering any
notice given pursuant to this section shall be conclusive evidence of receipt
of such notice.  Each party hereto agrees
that it will not refuse or reject delivery of any notice given hereunder, that
it will acknowledge, in writing, receipt of the same upon request and that any
notice rejected or refused by it shall be deemed for all purposes of this Lease
to have been received by the rejecting party on the date so refused or
rejected, as, conclusively established by the records of the U.S. Postal
Service or the courier service.  Any
notice required to be given within a stated period of time which is sent by
certified or registered mail, return receipt requested, shall be considered timely
if postmarked before midnight of the last day of such period.

Section 16.02.        ESTOPPEL
CERTIFICATES.  Lessee and the
Commission agree promptly following request by the other party to execute and
deliver an Estoppel Certificate.  The
term “Estoppel Certificate”
shall  mean an estoppel certificate,
certifying (a) that this Lease is unmodified and in full force and effect, or,
if modified, stating the nature of such modification and certifying that this
Lease, as so modified, is in full force and effect and the date to which the
Basic Rent and other charges are paid in advance, if any; (b) that there are no
uncured defaults or Events of Default hereunder on the part of the certifying
party, and that to the knowledge of the certifying party there are no uncured
defaults or Events of Default hereunder on the part of the other party, or if
there exist any such uncured defaults and Events of Default stating the nature
of such uncured defaults and Events of Default; and (c) the correctness of such
other information respecting the status of this Lease as may be reasonably
required by the party requesting the Estoppel Certificate.  A party’s failure to so execute and deliver
an Estoppel Certificate within ten (10) business days following written request
as required above shall be conclusive upon such failing party that as of the
date of said request for the same (i) that this Lease is in full force and
effect, without modification except as may be represented by the requesting
party, (ii) that there are no uncured defaults or Events of Default hereunder on
the part of the failing party, and that to the knowledge of the failing party
there are no uncured defaults or Events of Default hereunder on the part of the
other party, except as may be represented by the requesting party in such
request, and (iii) that no Basic Rent has been paid in advance except as may be
represented by the requesting party.

 

 45
 

 

ARTICLE XVII

public policy

Section 17.01.        POLICIES
AND OBJECTIVES.  As a public body,
the Commission is charged to maintain and operate the Port at all times in a
manner promoting and benefiting the public interest, including maximizing the
public’s use of the Port’s facilities by ensuring the provision of cost
effective and productive services to all potential users, and promoting
employment in the regions surrounding the Port, and the Commission has the
objectives to make the Port the leading Port in the southwestern Indiana
marketplace and to maximize revenue to the Commission from the use of the
facilities.

Section 17.02.        LESSEE
OBLIGATIONS.  Lessee understands and
supports the Commission’s foregoing public policies and objectives.  In furtherance thereof, Lessee hereby agrees
to:

(a)           Promote commerce at
the Port and foster the creation of employment within the region by operating
as efficiently as possible, and at a reasonable, competitive cost to shippers
and consignees;

(b)           Create a favorable
environment for the promotion of commerce at the Port through attention to
increased customer service levels and productivity;

(c)           Cooperate fully with
the Commission in its efforts to 
maximize commerce at the Port;

(d)           Foster harmonization
of employee-management relations throughout the Port;

(e)           Promote synergies
between Lessee’s operations and other maritime and industrial facilities at the
Port; and

(f)            Cooperate with
other operators at the Port and avoid unproductive forms of intra-port rivalry.

To the extent there are specific provisions of this
Lease concerning (a) — (f) above, (a) — (f) above shall be applied consistent
with such specific provisions of this Lease.

Section 17.03.        LESSEE’S
REVIEW.  The Commission shall have
the right to conduct periodic reviews of Lessee’s adherence to the foregoing
commitments and promotion of the Commission’s public policies and objectives
(the “Review”).  To assist the Commission in conducting this
Review, and within thirty (30) calendar days after receipt of written notice
from the Commission, Lessee shall provide the Commission a written report
summarizing Lessee’s performance and contributions to the accomplishment of the
foregoing public policies and objectives. 
Lessee also shall make available upon reasonable request, for inspection
by the Commission or its duly authorized representatives, all records,
statistics and financial data concerning Lessee’s operations at the Port,
provided, however, any information concerning charges to customers, which is
marked confidential by Lessee, shall be kept confidential by the Commission to
the extent allowed by law.  The
Commission will advise Lessee as to the results of the Commission’s Review, and
specifically as to any areas of concern requiring improvement.

 

 46
 

 

Section 17.04.        RESPONSE.  In the event the Commission determines that
Lessee’s performance with respect to the matters covered by the Review is
unsatisfactory, the Commission shall give Lessee written notice thereof.  Lessee shall have the right to respond
thereto in writing within twenty (20) calendar days, setting forth any
explanation or  mitigating factors or
considerations, as well as Lessee’s proposed corrective action, if any.  Lessee also shall have the opportunity, along
with any other interested parties, to address such issues with the Commission
at the Commission’s next monthly meeting, after which the Commission shall
determine what, if any, action it will take.

Section 17.05.        DEFAULT.  If the Commission determined that Lessee’s
explanation and proposed corrective action are inadequate and that continuance
of this Lease would not be in the public interest, the Commission may declare
Lessee to be in default hereunder (referred to herein as a “Public Policy Default”).  In such case, the Commission shall so notify
Lessee in writing, stating the Commission’s determination and the grounds
therefor.  Upon the occurrence of a
Public Policy Default, the Commission shall have those remedies set forth in
Section 11.02 hereof, provided, however, the Commission may only terminate this
Lease due to a default under this Article XVII in accordance with the following
provisions.  In the event the Commission
wants to terminate this Lease, the Commission shall provide written notice to
Lessee.  If Lessee disputes such
termination, it shall provide written notice of same to the Commission within
fifteen (15) days of the effective date of the Commission’s notice of
termination.  If Lessee provides timely
notice to the Commission, the Commission, in order to terminate the Lease for a
Public Policy Default, must seek and obtain a judicial decree that a Public
Policy Default has occurred.  Such decree
may also contain a judgment terminating this Lease.  Such decree shall be subject to appeal
pursuant to Indiana law and procedure, and such termination shall be suspended
pending the results of any such appeal.

ARTICLE XVIII

GENERAL PROVISIONS

Section 18.01.        FUTURE
EXPENSES AND INTERST RATE.

(a)           Lessee shall
reimburse the Commission for the Commission’s reasonable costs and expenses,
including reasonable attorneys’ fees of general and/or special counsel,
incurred in connection with the preparation of any future amendment,
modification or revision of this Lease, or for the preparation of any agreement
related hereto that is requested by Lessee. 
Such costs and expenses shall constitute additional rent under the
Lease, and the failure of Lessee to pay the same within ten  (10) days after demand by Lessee.

(b)           The interest rate
charged herein is stated as a fixed rate of ten (10) percent per annum.  However, the Parties stipulate and agree that
the actual interest rate charged at the appropriate time provided herein, shall
be the stated rate of ten (10) percent per annum or the then current prime rate
(defined as the United States Federal Reserve Bank’s Primary Credit Rate) plus
four (4) percent, whichever is higher (the higher rate being the “Stated Rate”).

Section 18.02.        REMEDIES
CUMULATIVE -NON-WAIVER.  Unless
stated as such party’s sole and exclusive remedy, the various rights and
remedies herein contained and reserved to each of 

 47
 

 

the parties shall not be considered as exclusive of any other right or
remedy of such party, but shall be construed as cumulative and shall be in
addition to every other remedy now or hereafter existing at law, in equity or
by statute, and said rights and remedies may be exercised and enforced
concurrently and whenever and as often as occasion therefore arises.  No delay or omission to exercise any right or
power by either party shall impair any such right or power, or be construed as
a waiver of any default or as acquiescence therein.  One or more waivers of any covenant, term or
condition of this Lease by either party shall not be construed by the other
party as a waiver of a subsequent or continuing breach of the same covenant,
term or condition.  The consent or
approval by either party to or of any act by the other party of a nature requiring
consent or approval shall not be deemed to waive or render unnecessary consent
to or approval of any subsequent similar act.

Section 18.03.        INTERPRETATION/COMPLETE
AGREEMENT/COUNTERPARTS.  The headings
of the several articles and sections contained herein are for convenience only
and do not define, limit or construe the contents of such articles and
sections.  Any references herein to
costs, expenses or similar amounts shall be references to out-of-pocket costs,
expenses and similar amounts.  Any
statements herein that an action or consent is not to be unreasonably withheld
shall mean that such action or consent is not to be unreasonably withheld,
conditioned or delayed.  All
negotiations, considerations, representations and understandings between the
parties are incorporated herein and may be modified or altered only by
agreement in writing signed by the party to be bound.  This Lease may be executed in multiple
counterparts, all of which, together, shall constitute one and the same
instrument.

Section 18.04.        GOVERNING
LAW.  This Lease and any questions of
interpretation thereof shall be governed by the laws of the State of Indiana.

Section 18.05.        SEVERABILITY
OF INVALID PROVISIONS.  If any
provision of this Lease shall be held to be invalid, void or unenforceable, the
remaining provisions hereof shall not be affected or impaired, and such
remaining provisions shall remain in full force and effect.

Section 18.06.        AGREEMENT
BINDING UPON SUCCESSORS.  The
covenants, agreements and obligations herein contained shall extend to, bind
and inure to the benefit not only of the parties hereto, but their respective
successors and assigns (subject to any restrictions on assignments, subletting
and transfers as provided herein).  The
covenants, agreements and obligations herein contained shall not inure to the
benefit of any persons other than the parties hereto, any Mortgagee under any
Mortgage granted pursuant to Section 7.02 and their respective successors and
assigns.

Section 18.07.        FORCE
MAJEURE.  Except as set forth in
Section 4.01(c), whenever this Lease requires any act (other than the payment
of a liquidated sum of money) to be performed by a certain time or within a
certain period of time, the time for the performance of such act shall be
extended by the period of any delays in such performance caused by war,
strikes, lockouts, civil commotion, unpreventable material shortages,
casualties, acts of God or other conditions or events beyond the control of the
party required to perform such act (“Force Majeure”), not to exceed an
extension of one hundred eighty (180) days.

 

 48
 

 

Section 18.08.        MEMORANDUM
OF LEASE.  The Commission and Lessee
shall execute duplicate originals of a short form or memorandum of this Lease
(the “Memorandum”), in recordable
form, setting forth a description of the Real Estate, the Term, a description
of the Port, the easements granted hereunder, the provisions of Section 13.05
and any other portion of this Lease that the Commission or Lessee may request,
which instrument either party may have recorded in lieu of the recording of this
Lease.

[ The
balance of this page is intentionally left blank ]

 49
 

 

IN WITNESS WHEREOF, the
parties hereto have executed this Lease as of the day, and month and year first
above-written.

	
  

  	
   

  	
  INDIANA PORT COMMISSION (“Commission”)

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Jay K. Potesta 

  	
   

  	
  By:

  	
  /s/ Steven R. Stemler 

  
	
   

  	
  Secretary — Treasurer

  	
   

  	
   

  	
  Steven R. Stemler, Designated Commissioner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AVENTINE RENEWABLE ENERGY-MT 

  
	
   

  	
   

  	
  VERNON, LLC (“Lessee”)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ John R. Gray 

  	
   

  	
  /s/ Ronald H. Miller 

  
	
  (Signature)

  	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  
	
   John R. Gray,
  VP Logistics and Development 

  	
   

  	
  Ronald H. Miller President & CEO 

  
	
  (Printed name
  and title)

  	
   

  	
  (Printed name
  and title)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Approved as to form and legality 

  	
   

  	
  APPROVED 

  
	
  This 19 day of January, 2007

  	
   

  	
  DATE: 1-24-07

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Susan W. Gard

  	
   

  	
  /s/ Mitchell E. Daniels, Jr. 

  
	
  For Steve Carter

  	
   

  	
   

  	
  For The Honorable Mitchell Daniels 

  	
   

  
	
   Attorney
  General of Indiana

  	
   

  	
   

  	
  Governor of Indiana

  	
   

  
							

 

This instrument was prepared jointly by David W. Haniford, General
Counsel Indiana Port Commission (Atty#7438-79) 150 W. Market St., Ste,
100, Indianapolis, IN  46204 (317)
232-9204; Mark D. Grant, Esq., ICE MILLER LLP, One American Square, Suite 3100,
Indianapolis, IN  46282-0200 (317)
236-2100; and Jeffrey I. Wool, Davis Polk & Wardell, 450 Lexington
Avenue, New York, NY  10017 (212)
450-4419.

 

 50

LIST OF EXHIBITS:

Exhibit A — Description
of Leased Premises

Exhibit A-1 — Description of the Port Property

Exhibit B — Port Tariff

Exhibit C — Project Specifications

Exhibit D — Declaration of Restrictions

Exhibit E — Addendum

Exhibit F — Description of Ethanol Process

Exhibit G — Description of Existing Preferential and Exclusive Rights

 

EXHIBIT A

The Real Estate

 

 A-1

EXHIBIT A-1

Description of the Port Property

 

 A1-1

EXHIBIT B

Port Tariff, Rates, Charges,
Rules and Regulations

 

 B-1

EXHIBIT C

The Leased Premises

 

 C-1

EXHIBIT D

Declaration of Restrictions

 

 D-1

EXHIBIT E

(IPC3.21.06)

ADDENDUM

This Addendum is entered into by and between the Indiana Port
Commission (the “State”) and Aventine Renewable
Energy-Mt Vernon, LLC (the “Contractor”),
and collectively known as the “Parties”.  The purpose of this Addendum is to modify,
delete, or amend certain terms and conditions set forth in the attached Lease
Agreement (“Agreement”).  This Addendum and the Agreement are
incorporated into each other and, when read together, shall constitute one
integrated document.  Any inconsistency,
conflict, or ambiguity between this Addendum and the Agreement shall be
resolved by giving precedence and effect to this Addendum.

1.             Authority
to Bind Contractor

The signatory for the Contractor represents that he/she has been duly
authorized to execute this Contract on behalf of the Contractor and has
obtained all necessary or applicable approvals to make this Contract fully
binding upon the Contractor when his/her signature is affixed, and certifies
that this Contract is not subject to further acceptance by Contractor when
accepted by the State of Indiana.

2.             Compliance
with Laws.

A.                                   The
Contractor shall comply with all applicable federal, state and local laws,
rules, regulations and ordinances, and all provisions required thereby to be
included herein are hereby incorporated by reference.  The enactment of any state or federal statute
or the promulgation of rules or regulations thereunder after execution of this
Contract shall be reviewed by the State and the Contractor to determine whether
the provisions of this Contract require formal modification.

B.                                     The
Contractor and its agents shall abide by all ethical requirements that apply to
persons who have a business relationship with the State, as set forth in
Indiana Code § 4-2-6 et seq., the regulations promulgated thereunder, and
Executive Order 04-08, dated April 27, 2004. 
If the contractor is not familiar with these ethical requirements, the
contractor should refer any questions to the Indiana State Ethics Commission,
or visit the Indiana State Ethics Commission website at
http://www.in.gov/ethics/.  If the
Contractor or its agents violate any applicable ethical standards, the State
may, in its sole discretion, terminate this Contract, subject to the notice and
cure provisions of Section 11.01(i) of the Agreement.  In addition, the Contractor may be subject to
penalties under Indiana Code § 4-2-6-12.

C.                                     The
Contractor certifies by entering into this Contract, that neither it nor its
principal(s) is presently in arrears in payment of its taxes, permit fees or
other statutory, regulatory or judicially required payments to the State of
Indiana.  Further, the Contractor agrees
that any payments in arrears and currently due to the State of Indiana may be
withheld from payments due to the Contractor.

 E-1
 

Additionally,
further work or payments may be withheld, delayed, or denied and/or this
Contract suspended until the Contractor is current in its payments and has
submitted proof of such payment to the State.

D.                                    The
Contractor warrants that it has no current or pending or outstanding criminal,
civil, or enforcement actions initiated by the State of Indiana pending, and
agrees that it will immediately notify the State of any such actions.  During the term of such actions, Contractor
agrees that the State may delay, withhold, or deny work under any Supplement or
contractual device issued pursuant to this Contract and any supplements or
amendments.

E.                                      If
a valid dispute exists as to the Contractor’s liability or guilt in any action
initiated by the State of Indiana or its agencies, and the State decides to
delay, withhold, or deny work to the Contractor, the Contractor may request
that it be allowed to continue, or receive work, without delay.  The Contractor must submit, in writing, a
request for review to the Indiana Department of Administration (IDOA) following
the procedures for disputes outlined herein. 
A determination by IDOA shall be binding on the parties.

F.                                      Any
payments that the State may delay, withhold, deny, or apply under this section
shall not be subject to penalty or interest under IC 5-17-5.

G.                                     The
Contractor warrants that the Contractor and its subcontractors, if any, shall
obtain and maintain all required permits, licenses, and approvals, as well as
comply with all health, safety, and environmental statutes, rules, or
regulations in the performance of work activities for the State.  Failure to do so may be deemed is a material
breach of this Contract and grounds for termination of the Agreement and denial
of further work with the State, subject to the notice and cure provisions of
Section 11.01(i) of the Agreement.

H.                                    The
Contractor hereby affirms that it is properly registered and owes no
outstanding reports with the Indiana Secretary of State.

I.                                         As
required by IC 5-22-3-7:

(1)                                  the
Contractor and any principals of the Contractor certify that (A) the
Contractor, except for de minimis and nonsystematic violations, has not
violated the terms of (i) IC 24-4.7 [Telephone Solicitation Of Consumers], (ii)
IC 24-5-12 [Telephone Solicitations], or (iii) IC 24-5-14 [Regulation of
Automatic Dialing Machines] in the previous three hundred sixty-five (365)
days, even if IC 24-4.7 is preempted by federal law; and (B) the Contractor
will not violate the terms of IC 24-4.7 for the duration of the Contract, even
if IC 24-4.7 is preempted by federal law.

(2)                                  The
Contractor and any principals of the Contractor certify that an affiliate or
principal of the Contractor and any agent acting on behalf of the Contractor or
on behalf of an affiliate or principal of the Contractor:  (A) except for de minimis and nonsystematic
violations, has not violated the 

 E-2
 

terms of IC 24-4.7 in the previous three hundred
sixty-five (365) days, even if IC 24-4.7 is preempted by federal law; and (B)
will not violate the terms of IC 24-4.7 for the duration of the Contract, even
if IC 24-4.7 is preempted by federal law.

3.             Conflict
of Interest.

A.                                   As
used in this section:

“Immediate family”
means the spouse and the unemancipated children of an individual.

“Interested party”
means:

1.                                       The
individual executing this Contract;

2.                                       An
individual who has an interest of three percent (3%) or more of Contractor, if
Contractor is not an individual; or

3.                                       Any
member of the immediate family of an individual specified under subdivision 1
or 2.

“Department”
means the Indiana Department of Administration.

“Commission”
means the State Ethics Commission.

B.                                     The
Department may cancel this Contract without recourse by Contractor if any
interested party is an employee of the State of Indiana.

C.                                     The
Department will not exercise its right of cancellation under section B, above,
if the Contractor gives the Department an opinion by the Commission indicating
that the existence of this Contract and the employment by the State of Indiana
of the interested party does not violate any statute or rule relating to
ethical conduct of State employees.  The
Department may take action, including cancellation of this Contract, consistent
with an opinion of the Commission obtained under this section.

D.                                    Contractor
has an affirmative obligation under this Contract to disclose to the Department
when an interested party is or becomes an employee of the State of
Indiana.  The obligation under this
section extends only to those facts that Contractor knows or reasonably could
know.

4.             Drug-Free
Workplace Certification.

The Contractor hereby covenants and agrees to make a good faith effort
to provide and maintain a drug-free workplace. 
The Contractor will give written notice to the State within ten (10)
days after receiving actual notice that the Contractor or an employee of the
Contractor in the State of Indiana has been convicted of a criminal drug
violation occurring in the Contractor’s workplace.

 E-3
 

False certification or violation of this certification may result in
sanctions including suspension of contract payments, termination of this
Contract and/or debarment of contracting opportunities with the State for up to
three (3) years, subject to the notice and cure provisions of Section 11.01(i)
of the Agreement.

In addition to the provisions of the above paragraphs, if the total
contract amount set forth in this Contract is in excess of $25,000.00,
Contractor hereby further agrees that this contract is expressly subject to the
terms, conditions, and representations of the following certification:

This certification is required by Executive Order No. 90-5, April 12,
1990, issued by the Governor of Indiana. 
Pursuant to its delegated authority, the Indiana Department of
Administration is requiring the inclusion of this certification in all contracts
and grants from the State of Indiana in excess of $25,000.00.  No award of a contract shall be made, and no
contract, purchase order or agreement, the total amount of which exceeds
$25,000.00, shall be valid, unless and until this certification has been fully
executed by the Contractor and made a part of the contract or agreement as part
of the contract documents.

The Contractor certifies and agrees that it will provide a drug-free
workplace by:

A.                                   Publishing
and providing to all of its employees a statement notifying them that the
unlawful manufacture, distribution, dispensing, possession or use of a
controlled substance is prohibited in the Contractor’s workplace, and
specifying the actions that will be taken against employees for violations of
such prohibition;

B.                                     Establishing
a drug-free awareness program to inform it’s employees of (1) the dangers of
drug abuse in the workplace; (2) the Contractor’s policy of maintaining a  drug-free workplace; (3) any available drug
counseling, rehabilitation, and employee assistance programs; and (4) the
penalties that may be imposed upon an employee for drug abuse violations
occurring in the workplace;

C.                                     Notifying
all employees in the statement required by subparagraph (A) above that as a
condition of continued employment, the employee will (1) abide by the terms of
the statement; and (2) notify the Contractor of any criminal drug statute
conviction for a violation occurring in the workplace no later than five (5)
days after such conviction;

D.                                    Notifying
in writing the State within ten (10) days after receiving notice from an
employee under subdivision (C)(2) above, or otherwise receiving actual notice
of such conviction;

E.                                      Within
thirty (30) days after receiving notice under subdivision (C)(2) above of a
conviction, imposing the following sanctions or remedial measures on any
employee who is convicted of drug abuse violations occurring in the workplace:
(1) taking appropriate personnel action against the employee, up to and
including termination; or (2) requiring such employee to satisfactorily
participate in a drug abuse assistance or rehabilitation program approved for
such purposes by a federal, state or local health, law enforcement, or other
appropriate agency; and

 E-4
 

F.                                      Making
a good faith effort to maintain a drug-free workplace through the
implementation of subparagraphs (A) through (E) above.

5.             Nondiscrimination.

Pursuant to IC 22-9-1-10 and the Civil Rights Act of 1964, the
Contractor and its subcontractors shall not discriminate against any employee
or applicant for employment in the performance of this Contract.  The Contractor shall not discriminate with
respect to the hire, tenure, terms, conditions or privileges of employment or
any matter directly or indirectly related to employment, because of race,
color, religion, sex, disability, national origin or ancestry.  Breach of this covenant may be regarded as a
material breach of this Contract.  The
Contractor’s execution of this Contract also signifies compliance with
applicable federal laws, regulations, and executive orders prohibiting
discrimination in the provision of services based on race, color, national
origin, age, sex, disability or status as a veteran.  The provisions of this Section 5 are subject
to the notice and cure provisions of Section 11.01(i) of the Agreement.

NON-COLLUSION AND ACCEPTANCE

The undersigned attests, subject to the penalties for perjury, that
he/she is the Contractor, or that he/she is the properly authorized
representative, agent, member or officer of the Contractor, that he/she has
not, nor has any other member, employee, representative, agent or officer of
the Contractor, directly or indirectly, to the best of  his/her knowledge, entered into or offered to
enter into any combination, collusion or agreement to receive or pay, and that
he/she has not received or paid, any sum of money or other consideration for
the execution of this Contract other than that which appears upon the face of
this Contract.

[ The
balance of this page is intentionally left blank ]

 E-5
 

In Witness Whereof, the Parties
have, through duly authorized representatives, entered into this Lease.  The Parties having read and understand the
foregoing terms of the contract do by their respective signatures dated below
hereby agree to the terms thereof.

	
  Indiana Port Commission:

  By:                                                                                          

  Steven R. Stemler,

  Designated Commissioner

  Date:                                                                                       

  	
  Aventine Renewable Energy-Mt Vernon, LLC

  Signature:                                                                              

  Printed Name:                                                                       

  Title:                                                                                       

  Date:                                                                                       

  
	
   

  Attest:                                                                                    

  Printed Name:                                                                       

  Title:                                                                                       

   

  	
   

  
	
   

  	
   

  
	
  Office of the Attorney General

  	
  Office of the Governor

  
	
   

  	
   

  
	
                                                                                                  

  Steve Carter, Attorney General

  Date:                                                                                       

  	
                                                                                                  

  Mitchell E. Daniels, Jr., Governor

                                                                                  

  

 

 

 E-6

EXHIBIT F

Description of Ethanol Process

 

 F-1

EXHIBIT G

Description
of Existing Preferential and Exclusive Rights

 

 G-1Exhibit 10.2

AMENDED AND RESTATED CREDIT
AGREEMENT

 

dated as of

September 15, 2006

among

AVENTINE RENEWABLE ENERGY, INC.

as Borrower,

AVENTINE RENEWABLE ENERGY, LLC

as Parent,

JPMORGAN CHASE BANK, N.A.

as Administrative Agent

and

FINANCIAL INSTITUTIONS

NOW OR HEREAFTER PARTIES HERETO,

as Lenders

$30,000,000 Revolving Credit Facility

 

TABLE OF
CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page No.

  
	
   

  	
   

  	
  ARTICLE 1

  	
   

  	
   

  
	
   

  	
   

  	
  DEFINITIONS;
  CONSTRUCTION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.1

  	
   

  	
  Definitions

  	
   

  	
  2

  
	
  Section 1.2

  	
   

  	
  Accounting Terms and Determinations

  	
   

  	
  14

  
	
  Section 1.3

  	
   

  	
  Other Definitional Terms

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 2

  	
   

  	
   

  
	
   

  	
   

  	
  AMOUNT AND TERMS
  OF LOANS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.1

  	
   

  	
  Loans and Commitments

  	
   

  	
  15

  
	
  Section 2.2

  	
   

  	
  Borrowing Requests

  	
   

  	
  16

  
	
  Section 2.3

  	
   

  	
  Letters of Credit

  	
   

  	
  16

  
	
  Section 2.4

  	
   

  	
  Disbursement of Funds

  	
   

  	
  21

  
	
  Section 2.5

  	
   

  	
  Evidence of Debt

  	
   

  	
  22

  
	
  Section 2.6

  	
   

  	
  Interest

  	
   

  	
  23

  
	
  Section 2.7

  	
   

  	
  Interest Periods

  	
   

  	
  24

  
	
  Section 2.8

  	
   

  	
  Records

  	
   

  	
  24

  
	
  Section 2.9

  	
   

  	
  Voluntary Termination or Reduction of Revolving
  Credit Commitments

  	
   

  	
  25

  
	
  Section 2.10

  	
   

  	
  Repayment at Maturity; Prepayments

  	
   

  	
  25

  
	
  Section 2.11

  	
   

  	
  Continuation and Conversion Options

  	
   

  	
  26

  
	
  Section 2.12

  	
   

  	
  Fees

  	
   

  	
  27

  
	
  Section 2.13

  	
   

  	
  Payments, Credit Availability, etc

  	
   

  	
  28

  
	
  Section 2.14

  	
   

  	
  Interest Rate Not Ascertainable, etc

  	
   

  	
  28

  
	
  Section 2.15

  	
   

  	
  Illegality

  	
   

  	
  29

  
	
  Section 2.16

  	
   

  	
  Increased Costs

  	
   

  	
  29

  
	
  Section 2.17

  	
   

  	
  Change of Lending Office

  	
   

  	
  31

  
	
  Section 2.18

  	
   

  	
  Funding Losses

  	
   

  	
  31

  
	
  Section 2.19

  	
   

  	
  Sharing of Payments, etc

  	
   

  	
  32

  
	
  Section 2.20

  	
   

  	
  Taxes

  	
   

  	
  32

  
	
  Section 2.21

  	
   

  	
  Pro-rata Treatment; Order of Application During
  Default; Order of Application of Payments

  	
   

  	
  35

  
	
  Section 2.22

  	
   

  	
  Replacement of Lenders

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 3

  	
   

  	
   

  
	
   

  	
   

  	
  CONDITIONS TO
  BORROWINGS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.1

  	
   

  	
  Closing

  	
   

  	
  36

  
	
  Section 3.2

  	
   

  	
  Conditions Precedent to All Loans and Letters of
  Credit

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 4

  	
   

  	
   

  
	
   

  	
   

  	
  SECURITY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.1

  	
   

  	
  Security

  	
   

  	
  38

  
	
  Section 4.2

  	
   

  	
  Exceptions to Security

  	
   

  	
  39

  

 

 i
 

 

	
  

  	
   

  	
  ARTICLE 5

  	
   

  	
   

  
	
   

  	
   

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.1

  	
   

  	
  Corporate Existence

  	
   

  	
  39

  
	
  Section 5.2

  	
   

  	
  Corporate Power and Authorization

  	
   

  	
  39

  
	
  Section 5.3

  	
   

  	
  Binding Obligations

  	
   

  	
  40

  
	
  Section 5.4

  	
   

  	
  No Legal Bar or Resultant Lien

  	
   

  	
  40

  
	
  Section 5.5

  	
   

  	
  No Consent

  	
   

  	
  40

  
	
  Section 5.6

  	
   

  	
  Financial Information

  	
   

  	
  40

  
	
  Section 5.7

  	
   

  	
  Investments and Guaranties

  	
   

  	
  41

  
	
  Section 5.8

  	
   

  	
  Litigation

  	
   

  	
  41

  
	
  Section 5.9

  	
   

  	
  Use of Proceeds

  	
   

  	
  41

  
	
  Section 5.10

  	
   

  	
  Employee Benefits.

  	
   

  	
  41

  
	
  Section 5.11

  	
   

  	
  Taxes; Governmental Charges

  	
   

  	
  42

  
	
  Section 5.12

  	
   

  	
  Titles, etc

  	
   

  	
  42

  
	
  Section 5.13

  	
   

  	
  Defaults

  	
   

  	
  42

  
	
  Section 5.14

  	
   

  	
  Casualties; Taking of Properties

  	
   

  	
  42

  
	
  Section 5.15

  	
   

  	
  Compliance with the Law

  	
   

  	
  42

  
	
  Section 5.16

  	
   

  	
  No Material Misstatements

  	
   

  	
  43

  
	
  Section 5.17

  	
   

  	
  Investment Company Act

  	
   

  	
  43

  
	
  Section 5.18

  	
   

  	
  Capital Structure

  	
   

  	
  43

  
	
  Section 5.19

  	
   

  	
  Insurance

  	
   

  	
  43

  
	
  Section 5.20

  	
   

  	
  Environmental Matters

  	
   

  	
  44

  
	
  Section 5.21

  	
   

  	
  Solvency

  	
   

  	
  45

  
	
  Section 5.22

  	
   

  	
  Employee Matters

  	
   

  	
  45

  
	
  Section 5.23

  	
   

  	
  Loan Amount

  	
   

  	
  45

  
	
  Section 5.24

  	
   

  	
  Excluded Subsidiaries

  	
   

  	
  45

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 6

  	
   

  	
   

  
	
   

  	
   

  	
  AFFIRMATIVE
  COVENANTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.1

  	
   

  	
  Maintenance and Compliance, etc

  	
   

  	
  46

  
	
  Section 6.2

  	
   

  	
  Payment of Taxes and Claims, etc

  	
   

  	
  46

  
	
  Section 6.3

  	
   

  	
  Further Assurances

  	
   

  	
  46

  
	
  Section 6.4

  	
   

  	
  Performance of Obligations

  	
   

  	
  46

  
	
  Section 6.5

  	
   

  	
  Maintenance of Insurance

  	
   

  	
  46

  
	
  Section 6.6

  	
   

  	
  Accounts and Records

  	
   

  	
  46

  
	
  Section 6.7

  	
   

  	
  Right of Inspection

  	
   

  	
  47

  
	
  Section 6.8

  	
   

  	
  Operation and Maintenance of Property

  	
   

  	
  47

  
	
  Section 6.9

  	
   

  	
  New Subsidiaries; Additional Liens

  	
   

  	
  47

  
	
  Section 6.10

  	
   

  	
  Reporting Covenants

  	
   

  	
  48

  
	
  Section 6.11

  	
   

  	
  Pledge of Equity of Nebraska Sub

  	
   

  	
  50

  
	
  Section 6.12

  	
   

  	
  Excluded Subsidiaries

  	
   

  	
  50

  

 

 ii
 

 

	
  

  	
   

  	
  ARTICLE 7

  	
   

  	
   

  
	
   

  	
   

  	
  NEGATIVE
  COVENANTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.1

  	
   

  	
  Financial Covenants

  	
   

  	
  50

  
	
  Section 7.2

  	
   

  	
  Indebtedness

  	
   

  	
  50

  
	
  Section 7.3

  	
   

  	
  Liens

  	
   

  	
  51

  
	
  Section 7.4

  	
   

  	
  Mergers, Sales, etc

  	
   

  	
  52

  
	
  Section 7.5

  	
   

  	
  Investments, Loans, etc

  	
   

  	
  52

  
	
  Section 7.6

  	
   

  	
  Sales and Leasebacks

  	
   

  	
  52

  
	
  Section 7.7

  	
   

  	
  Nature of Business

  	
   

  	
  52

  
	
  Section 7.8

  	
   

  	
  ERISA Compliance

  	
   

  	
  53

  
	
  Section 7.9

  	
   

  	
  Negative Pledge Agreements

  	
   

  	
  53

  
	
  Section 7.10

  	
   

  	
  Transactions With Affiliates

  	
   

  	
  53

  
	
  Section 7.11

  	
   

  	
  Equity

  	
   

  	
  54

  
	
  Section 7.12

  	
   

  	
  Intercompany Transactions

  	
   

  	
  54

  
	
  Section 7.13

  	
   

  	
  Acquisition of Equity in Nebraska Sub

  	
   

  	
  54

  
	
  Section 7.14

  	
   

  	
  Excluded Subsidiaries

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 8

  	
   

  	
   

  
	
   

  	
   

  	
  EVENTS OF
  DEFAULT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 8.1

  	
   

  	
  Payments

  	
   

  	
  54

  
	
  Section 8.2

  	
   

  	
  Covenants Without Notice

  	
   

  	
  54

  
	
  Section 8.3

  	
   

  	
  Other Covenants

  	
   

  	
  54

  
	
  Section 8.4

  	
   

  	
  Other Financing Document Obligations

  	
   

  	
  55

  
	
  Section 8.5

  	
   

  	
  Representations

  	
   

  	
  55

  
	
  Section 8.6

  	
   

  	
  Non-Payments of Other Indebtedness and Under Hedging
  Agreements

  	
   

  	
  55

  
	
  Section 8.7

  	
   

  	
  Defaults Under Hedging and Other Agreements

  	
   

  	
  55

  
	
  Section 8.8

  	
   

  	
  Bankruptcy

  	
   

  	
  55

  
	
  Section 8.9

  	
   

  	
  Money Judgment

  	
   

  	
  56

  
	
  Section 8.10

  	
   

  	
  Discontinuance of Business

  	
   

  	
  56

  
	
  Section 8.11

  	
   

  	
  Financing Documents

  	
   

  	
  56

  
	
  Section 8.12

  	
   

  	
  Material Adverse Change

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE 9

  	
   

  	
   

  
	
   

  	
   

  	
  THE
  ADMINISTRATIVE AGENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 9.1

  	
   

  	
  Appointment of Administrative Agent

  	
   

  	
  56

  
	
  Section 9.2

  	
   

  	
  Limitation of Duties of Administrative Agent

  	
   

  	
  57

  
	
  Section 9.3

  	
   

  	
  Lack of Reliance on the Administrative Agent

  	
   

  	
  57

  
	
  Section 9.4

  	
   

  	
  Certain Rights of the Administrative Agent

  	
   

  	
  57

  
	
  Section 9.5

  	
   

  	
  Reliance by Administrative Agent

  	
   

  	
  58

  
	
  Section 9.6

  	
   

  	
  Indemnification of Administrative Agent

  	
   

  	
  58

  
	
  Section 9.7

  	
   

  	
  Administrative Agent in its Individual Capacity

  	
   

  	
  58

  
	
  Section 9.8

  	
   

  	
  Successor Administrative Agent

  	
   

  	
  58

  

 

 iii
 

 

	
  

  	
   

  	
  ARTICLE 10

  	
   

  	
   

  
	
   

  	
   

  	
  MISCELLANEOUS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.1

  	
   

  	
  Notices

  	
   

  	
  59

  
	
  Section 10.2

  	
   

  	
  Amendments and Waivers

  	
   

  	
  59

  
	
  Section 10.3

  	
   

  	
  No Waiver; Remedies Cumulative

  	
   

  	
  60

  
	
  Section 10.4

  	
   

  	
  Payment of Expenses, Indemnities, etc

  	
   

  	
  61

  
	
  Section 10.5

  	
   

  	
  Right of Setoff

  	
   

  	
  64

  
	
  Section 10.6

  	
   

  	
  Benefit of Agreement

  	
   

  	
  64

  
	
  Section 10.7

  	
   

  	
  Successors and Assigns; Participations and
  Assignments

  	
   

  	
  64

  
	
  Section 10.8

  	
   

  	
  Governing Law; Submission to Jurisdiction; etc

  	
   

  	
  67

  
	
  Section 10.9

  	
   

  	
  Independent Nature of Lenders’ Rights

  	
   

  	
  68

  
	
  Section 10.10

  	
   

  	
  Invalidity

  	
   

  	
  68

  
	
  Section 10.11

  	
   

  	
  Renewal, Extension or Rearrangement

  	
   

  	
  68

  
	
  Section 10.12

  	
   

  	
  Interest

  	
   

  	
  68

  
	
  Section 10.13

  	
   

  	
  Entire Agreement

  	
   

  	
  69

  
	
  Section 10.14

  	
   

  	
  Attachments

  	
   

  	
  69

  
	
  Section 10.15

  	
   

  	
  Counterparts

  	
   

  	
  69

  
	
  Section 10.16

  	
   

  	
  Survival of Indemnities

  	
   

  	
  69

  
	
  Section 10.17

  	
   

  	
  Headings Descriptive

  	
   

  	
  69

  
	
  Section 10.18

  	
   

  	
  Satisfaction Requirement

  	
   

  	
  69

  
	
  Section 10.19

  	
   

  	
  Exculpation Provisions

  	
   

  	
  69

  
	
  Section 10.20

  	
   

  	
  Secured Affiliate

  	
   

  	
  70

  

 

 iv
 

ANNEXES

Annex I  Revolving
Credit Commitments

EXHIBITS

	
  Exhibit
  A

  	
   

  	
  —

  	
   

  	
  Form of Borrowing Request

  	
   

  
	
  Exhibit B

  	
   

  	
  —

  	
   

  	
  Form of Request for Letters of Credit

  	
   

  
	
  Exhibit C

  	
   

  	
  —

  	
   

  	
  Form of Assignment and Acceptance

  	
   

  
	
  Exhibit D

  	
   

  	
  —

  	
   

  	
  Form of Guaranty and Security Agreement

  	
   

  

 

SCHEDULES

	
  Schedule 5.7

  	
   

  	
  —

  	
   

  	
  Investments and Guaranties

  	
   

  	
   

  
	
  Schedule 5.22

  	
   

  	
  —

  	
   

  	
  Employee Matters

  	
   

  	
   

  
	
  Schedule 7.2

  	
   

  	
  —

  	
   

  	
  Existing Indebtedness

  	
   

  	
   

  
	
  Schedule 7.3

  	
   

  	
  —

  	
   

  	
  Liens

  	
   

  	
   

  
	
  Schedule 7.10

  	
   

  	
  —

  	
   

  	
  Affiliate Documents

  	
   

  	
   

  

 

 v

LIST
OF DEFINED TERMS

	
  

  	
   

  	
  Page No.

  
	
  $.

  	
   

  	
  5

  
	
  Accounts Receivable

  	
   

  	
  2

  
	
  Administrative Agent

  	
   

  	
  2

  
	
  Advance Notice

  	
   

  	
  2

  
	
  Affiliate

  	
   

  	
  2

  
	
  Aggregate Revolving Credit Exposure

  	
   

  	
  3

  
	
  Agreement

  	
   

  	
  3

  
	
  Applicable Margin

  	
   

  	
  3

  
	
  Application

  	
   

  	
  3

  
	
  Assignment and Acceptance

  	
   

  	
  3

  
	
  Aurora West

  	
   

  	
  3

  
	
  Availability

  	
   

  	
  3

  
	
  Bankruptcy Code

  	
   

  	
  56

  
	
  Base Rate

  	
   

  	
  24

  
	
  Base Rate Loan

  	
   

  	
  3

  
	
  Borrower

  	
   

  	
  1

  
	
  Borrowing

  	
   

  	
  3

  
	
  Borrowing Request

  	
   

  	
  3

  
	
  Bring-Down Representations and Warranties

  	
   

  	
  4

  
	
  Business Day

  	
   

  	
  4

  
	
  Capital Lease Obligations

  	
   

  	
  4

  
	
  Cash Management Agreement

  	
   

  	
  4

  
	
  CERCLA

  	
   

  	
  5

  
	
  Closing Date

  	
   

  	
  4

  
	
  Code

  	
   

  	
  4

  
	
  Collateral

  	
   

  	
  4

  
	
  control

  	
   

  	
  2

  
	
  controlled by

  	
   

  	
  2

  
	
  Cover

  	
   

  	
  4

  
	
  Credit Parties

  	
   

  	
  4

  
	
  Credit Party

  	
   

  	
  4

  
	
  Current Financials

  	
   

  	
  4

  
	
  Default

  	
   

  	
  5

  
	
  Disbursement Account

  	
   

  	
  22

  
	
  disposal

  	
   

  	
  5

  
	
  disposed

  	
   

  	
  5

  
	
  Dollar

  	
   

  	
  5

  
	
  Environmental Laws

  	
   

  	
  5

  
	
  Equity

  	
   

  	
  5

  
	
  ERISA

  	
   

  	
  5

  
	
  ERISA Affiliate

  	
   

  	
  5

  
	
  ERISA Termination Event

  	
   

  	
  6

  
	
  Event of Default

  	
   

  	
  55

  

 

 vi
 

 

	
  Excluded Taxes

  	
   

  	
  6

  
	
  Existing Credit Agreement

  	
   

  	
  1

  
	
  Existing Loan Documents

  	
   

  	
  1

  
	
  Federal Funds Effective Rate

  	
   

  	
  6

  
	
  Financing Documents

  	
   

  	
  7

  
	
  Financing Parties

  	
   

  	
  69

  
	
  Fiscal Quarter

  	
   

  	
  7

  
	
  Fiscal Year

  	
   

  	
  7

  
	
  Foreign Lender

  	
   

  	
  7

  
	
  Funded Indebtedness

  	
   

  	
  7

  
	
  GAAP

  	
   

  	
  7

  
	
  Governmental Authority

  	
   

  	
  7

  
	
  Governmental Requirement

  	
   

  	
  7

  
	
  Guarantor

  	
   

  	
  7

  
	
  Guarantors

  	
   

  	
  7

  
	
  Guaranty and Security Agreement

  	
   

  	
  8

  
	
  hazardous substance

  	
   

  	
  5

  
	
  Hedging Agreement

  	
   

  	
  8

  
	
  herein

  	
   

  	
  16

  
	
  hereof

  	
   

  	
  16

  
	
  hereunder

  	
   

  	
  16

  
	
  Highest Lawful Rate

  	
   

  	
  8

  
	
  Historical Financials

  	
   

  	
  8

  
	
  Indebtedness

  	
   

  	
  8

  
	
  Indemnified Taxes

  	
   

  	
  9

  
	
  Interest Period

  	
   

  	
  9

  
	
  ISP98

  	
   

  	
  18

  
	
  Issuing Bank

  	
   

  	
  1, 9

  
	
  JPMorgan Chase

  	
   

  	
  1, 9

  
	
  Lender

  	
   

  	
  1

  
	
  Lender Affiliate

  	
   

  	
  9

  
	
  Lender Indebtedness

  	
   

  	
  10

  
	
  Lenders

  	
   

  	
  1

  
	
  Lending Office

  	
   

  	
  10

  
	
  Letter of Credit Liabilities

  	
   

  	
  10

  
	
  Letters of Credit

  	
   

  	
  17

  
	
  LIBOR Loan

  	
   

  	
  10

  
	
  LIBOR Rate

  	
   

  	
  10

  
	
  Lien

  	
   

  	
  10

  
	
  Make-Whole Amount

  	
   

  	
  11

  
	
  Margin Stock

  	
   

  	
  11

  
	
  Marketing Alliance Partner

  	
   

  	
  11

  
	
  Material Adverse Change

  	
   

  	
  11

  
	
  Material Adverse Effect

  	
   

  	
  11

  
	
  Material Provision

  	
   

  	
  57

  
	
  Maximum Available Amount

  	
   

  	
  11

  

 

 vii
 

 

	
  Mortgage

  	
   

  	
  11

  
	
  Nebraska Sub

  	
   

  	
  11

  
	
  New Subsidiary

  	
   

  	
  48

  
	
  Non-Repeating Representations and Warranties

  	
   

  	
  12

  
	
  Obligated Party

  	
   

  	
  12

  
	
  oil

  	
   

  	
  5

  
	
  OPA

  	
   

  	
  5

  
	
  Other Taxes

  	
   

  	
  12

  
	
  Parent

  	
   

  	
  1

  
	
  Participant

  	
   

  	
  67

  
	
  Payment Office

  	
   

  	
  12

  
	
  PBGC

  	
   

  	
  12

  
	
  Permitted Liens

  	
   

  	
  52

  
	
  Person

  	
   

  	
  12

  
	
  Plan

  	
   

  	
  12

  
	
  Power

  	
   

  	
  12

  
	
  Prime Rate

  	
   

  	
  12

  
	
  Property

  	
   

  	
  13

  
	
  RCRA

  	
   

  	
  5

  
	
  Real Property

  	
   

  	
  13

  
	
  Recovery Event

  	
   

  	
  13

  
	
  Register

  	
   

  	
  67

  
	
  Regulation D

  	
   

  	
  13

  
	
  Regulation U

  	
   

  	
  13

  
	
  Regulation X

  	
   

  	
  13

  
	
  Reimbursement Obligations

  	
   

  	
  13

  
	
  release

  	
   

  	
  5

  
	
  Reported Inventory

  	
   

  	
  13

  
	
  Request for Letters of Credit

  	
   

  	
  13

  
	
  Required Lenders

  	
   

  	
  13

  
	
  Responsible Officer

  	
   

  	
  13

  
	
  Revolving Credit Commitment

  	
   

  	
  16

  
	
  Revolving Credit Commitments

  	
   

  	
  16

  
	
  Revolving Credit Exposure

  	
   

  	
  14

  
	
  Revolving Credit Loan

  	
   

  	
  16

  
	
  Revolving Credit Maturity Date

  	
   

  	
  14

  
	
  Revolving Credit Percentage

  	
   

  	
  14

  
	
  Schedules

  	
   

  	
  14

  
	
  Secured Affiliate

  	
   

  	
  14

  
	
  Security Instruments

  	
   

  	
  14

  
	
  solid waste

  	
   

  	
  5

  
	
  Solvent

  	
   

  	
  14

  
	
  Standby Letter of Credit

  	
   

  	
  14

  
	
  Statutory Reserves

  	
   

  	
  15

  
	
  Subsidiary

  	
   

  	
  15

  
	
  Taxes

  	
   

  	
  15

  

 

 viii
 

 

	
  threatened release

  	
   

  	
  5

  
	
  Transferee

  	
   

  	
  68

  
	
  Type

  	
   

  	
  15

  
	
  UCC

  	
   

  	
  15

  
	
  under common control with

  	
   

  	
  2

  
	
  Voting Equity

  	
   

  	
  15

  

 

 ix

AMENDED AND
RESTATED CREDIT AGREEMENT

THIS AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”) is made and entered into as
of September 15, 2006, among AVENTINE RENEWABLE ENERGY,
INC., a Delaware corporation (“Borrower”),
AVENTINE RENEWABLE ENERGY, LLC, a
Delaware limited liability company (“Parent”),
JPMORGAN CHASE BANK, N.A.,
individually as a Lender (in such individual capacity, “JPMorgan Chase”), as the Issuing Bank
(in such capacity the “Issuing Bank”)
and as the Administrative Agent (in such capacity, the “Administrative Agent”), and each of the
lenders that is a signatory hereto or which hereafter becomes a party hereto as
provided in Section 10.7 (individually, a “Lender” and, collectively, the “Lenders”).

RECITALS:

WHEREAS, Borrower, Parent, the Administrative Agent,
the Issuing Bank and the Lenders are parties to that certain Credit Agreement
dated as of May 30, 2003 (as heretofore amended, the “Existing
Credit Agreement”), pursuant to which Lenders extended certain
financing to Borrower in accordance with the terms and conditions set forth
therein; and

WHEREAS, Borrower has requested that the Existing
Credit Agreement be amended and restated in its entirety.

AGREEMENT:

In consideration of the mutual covenants and
agreements herein contained, Parent, Borrower, the Administrative Agent, the
Issuing Bank and the Lenders agree that, subject to the satisfaction of each
condition precedent contained in Section 3.2 hereof, the Existing Credit
Agreement shall be amended and restated as of the Closing Date (as herein
defined) in its entirety in the form of this Agreement.  It is the intention of Borrower, Parent, the
Lenders, the Issuing Bank and the Administrative Agent that this Agreement
supersede and replace the Existing Credit Agreement in its entirety; provided,
that, (a) such amendment and restatement shall operate to renew, amend
and modify the rights and obligations of the parties under the Existing Credit
Agreement, as provided herein, but shall not effect a novation thereof, (b)
unless otherwise provided for herein and evidenced by a separate written
agreement, amendment or release, no other Loan Document, as defined in, and
executed and/or delivered pursuant to the terms of, the Existing Credit
Agreement (collectively, the “Existing Loan Documents”)
shall be amended, terminated or released in any respect and all of such other
Existing Loan Documents shall remain in full force and effect except that
Borrower and the Lenders agree that by executing this Agreement the definition
of “Credit Agreement” contained in such Existing Loan Documents shall be
amended to refer to this Agreement as it may hereafter be amended, modified,
renewed or extended in accordance with the terms hereof in place of the
Existing Credit Agreement, and (c) the Liens securing the Secured Obligations
under and as defined in the Existing Credit Agreement and granted pursuant to
the Existing Loan Documents and the liabilities and obligations of Borrower
shall not be extinguished, but shall be carried forward, and such Liens shall secure
such Secured Obligations, in each case, as renewed, amended, restated and
modified hereby

 1
 

The parties hereto
further agree as follows:

ARTICLE 1

DEFINITIONS; CONSTRUCTION

Section 1.1                     Definitions.  As used herein, the following terms shall
have the meanings herein specified (to be equally applicable to both the
singular and plural forms of the terms defined).  Reference to any party to a Financing
Document shall mean that party and its successors and assigns.

“Accounts
Receivable” shall mean the invoice amount owing on each account
of Borrower that, in conformity with GAAP, is included in “accounts receivable”
in the financial statements of Borrower.

“Administrative Agent” shall mean
JPMorgan Chase acting in the manner and to the extent described in Article 9,
and any successor Administrative Agent appointed pursuant to Article 9.

“Advance Notice” shall mean written or
telecopy notice (with telephonic confirmation in the case of telecopy notice),
which in each case shall be irrevocable, from Borrower to be received by the
Administrative Agent before 11:00 a.m. (Chicago, Illinois time), by the number
of Business Days in advance of any Borrowing, conversion, continuation or
prepayment of any Revolving Credit Loan or Revolving Credit Loans pursuant to
this Agreement as respectively indicated below:

(a)           LIBOR Loans - 3 Business Days; and

(b)           Base Rate Loans - same Business Day.

For the purpose of determining the respectively
applicable Revolving Credit Loans in the case of the conversion from one Type
of Revolving Credit Loan into another, the Revolving Credit Loans into which
there is to be a conversion shall control. 
The Administrative Agent, the Issuing Bank and each Lender are entitled
to rely upon and act upon telecopy notice made or purportedly made by Borrower.

“Affiliate” shall mean, with respect to
any Person, (a) any Person controlling, controlled by or under common control
with such Person, (b) any director, officer, manager, shareholder, partner or
member of such Person or of any Person described in clause (a) preceding, and
(c) any member of the immediate family of any Person described in clauses (a)
or (b) preceding.  For purposes of this
definition, “control”
(including “controlled by”
and “under common control with”)
shall mean the possession, directly or indirectly, of the power to either (i)
vote 10% or more of the securities having ordinary voting power for election of
directors of such Person, or (ii) direct or cause the direction of the
management and policies of such Person, whether through the ownership of voting
securities, by contract or otherwise; provided, that, no
Marketing Alliance Partner shall be considered an Affiliate of any of the
Credit Parties solely as a result of a Credit Party’s ownership of voting
securities of such Marketing Alliance Partner unless such ownership constitutes
30% or more of the outstanding Voting Equity of such Marketing Alliance
Partner.

 2
 

“Aggregate Revolving Credit
Exposure” shall mean the sum of all of the Lenders’ 

Revolving Credit Exposures.

“Agreement” shall
mean this Credit Agreement, as further amended, modified or 

supplemented from time to time.

“Applicable Margin”
shall mean (a) 0.750% for LIBOR Loans, and (b) 0.000% for Base 

Rate Loans.

“Application” shall
mean an “Application and Agreement for Letter of Credit,” or 

similar instrument
or agreement, entered into between Borrower and the Issuing Bank in 

connection with any Letter of Credit.

“Assignment and Acceptance”
shall mean an Assignment and Acceptance entered into 

by a Lender and an
assignee (with the consent of any party whose consent is required by Section

10.7),
and accepted by the Administrative Agent, in substantially the form of Exhibit
C hereto or 

any other form approved by the Administrative Agent.

“Aurora West” means Aventine
Renewable Energy — Aurora West, LLC, a Delaware 

limited liability company.

“Availability”
shall mean, as of any date, the remainder of (a) the Maximum Available 

Amount on such date, minus (b) the Aggregate
Revolving Credit Exposure on such date.

“Bankruptcy Code” shall have the meaning
provided in Section 8.8.

“Base Rate” shall have the meaning
provided in Section 2.6(a).

“Base Rate Loan”
shall mean a Revolving Credit Loan bearing interest at the rate 

provided in Section 2.6(a).

“Borrower” shall mean Aventine Renewable
Energy, Inc., a Delaware corporation.

“Borrowing” shall mean a borrowing
pursuant to a Borrowing Request or a continuation or a conversion pursuant to Section
2.11 consisting, in each case, of the same Type of Revolving Credit Loans
having, in the case of LIBOR Loans, the same Interest Period (except as
otherwise provided in Section 2.14 and Section 2.15) and made
previously or being made concurrently by all of the Lenders.

“Borrowing Request” shall mean a request
for a Borrowing pursuant to Section 2.2, substantially in the form
attached as Exhibit A.

“Bring-Down Representations and Warranties “
shall mean all representations and warranties set forth in the Agreement and
the other Financing Documents, other than the Non-Repeating Representations and
Warranties.

“Business Day” shall mean any day
excluding Saturday, Sunday and any other day on which banks are required or
authorized to close in Chicago, Illinois and, if the applicable Business Day
relates to LIBOR Loans, on which trading is carried on by and between banks in
Dollar deposits in the London interbank market.

 3
 

“Capital Lease Obligations” shall mean,
as to any Person, the obligations of such Person to pay rent or other amounts
under a lease of (or other agreement conveying the right to use) real and/or
personal property which obligations are required to be classified and accounted
for as a liability on a balance sheet of such Person in conformity with GAAP
and, for purposes of this Agreement, the amount of such obligations shall be
the capitalized amount thereof.

“Cash Management Agreement” shall mean
any document, instrument, agreement, arrangement or transaction with respect to
cash management services and includes, without limitation, any of the foregoing
related to deposit accounts, overdraft protection or automated clearing house
transactions.

“Closing Date” shall mean September 15,
2006.

“Code” shall mean
the Internal Revenue Code of 1986, as amended, and any successor 

statute.

“Collateral” shall mean each Obligated
Party’s Properties described in and subject to the Liens, privileges,
priorities and security interests purported to be created by any Security
Instrument.

“Cover” when required by this Agreement
for Letter of Credit Liabilities, shall be effected by paying to the Administrative
Agent in immediately available funds, to be held by the Administrative Agent in
a collateral account maintained by the Administrative Agent at its Payment
Office, an amount equal to 105% of the maximum amount of each applicable Letter
of Credit available for drawing at any time. 
Such amount shall be retained by the Administrative Agent in such
collateral account until such time as the same is no longer required under this
Agreement or the applicable Letter of Credit shall have expired and the Reimbursement
Obligations, if any, with respect thereto shall have been fully satisfied,
whichever occurs first.

“Credit Parties” shall mean Parent and
each of its Subsidiaries (other than Excluded Subsidiaries), including, without
limitation, Borrower and Nebraska Sub, collectively, and “Credit Party” shall mean any such
Person individually.

“Current Financials”
shall mean, as of any day, the financial statements and other 

related
information for any applicable period most recently required to be delivered to
the 

Lenders pursuant to Section 6.10(a) and Section
6.10(b).

“Default” shall
mean an Event of Default or any condition or event which, with notice or 

lapse of time or both, would constitute an Event of
Default.

“Disbursement Account” shall have the
meaning provided in Section 2.4(a).

“Dollar” and the sign “$” shall mean lawful money of the
United States of America.

 4
 

“Environmental Laws” shall mean any and
all laws, statutes, ordinances, rules, regulations, orders, or determinations
of any Governmental Authority pertaining to health or the environment in effect
in any and all jurisdictions in which any Credit Party is conducting or at any
time has conducted business, or where any Property of any Credit Party is
located, or where any hazardous substances generated by or disposed of by any
of the Credit Parties are located, including, but not limited to, the Oil
Pollution Act of 1990 (“OPA”),
as amended, the Clean Air Act, as amended, the Comprehensive Environmental,
Response, Compensation, and Liability Act of 1980 (“CERCLA”), as amended, the Federal Water
Pollution Control Act, as amended, the Occupational Safety and Health Act of
1970, as amended, the Resource Conservation and Recovery Act of 1976 (“RCRA”), as amended, the Safe Drinking
Water Act, as amended, the Toxic Substances Control Act, as amended, the
Superfund Amendments and Reauthorization Act of 1986, as amended, and other
environmental conservation or protection laws. 
The term “oil” shall
have the meaning specified in OPA; the terms “hazardous substance” and “release” shall have the meanings specified in CERCLA and “threatened release” shall be used
herein as it is used in CERCLA ; and the terms “solid waste” and “disposal”
(or “disposed”) shall have
the meanings specified in RCRA; provided, however, in the event
either CERCLA or RCRA is amended so as to change the meaning of any term
defined thereby, such changed meaning shall apply on and subsequent to the
effective date of such amendment, and provided, further, that,
to the extent the laws of the relevant state in which any Property of any
Credit Party is located establish a meaning for “oil,” “hazardous substance,” “release,”
“solid waste” or “disposal” which is broader than that specified in either OPA,
CERCLA or RCRA, such broader meaning shall apply.

“Equity” shall mean shares of capital
stock, all partnership, profits, capital or member interest, all stock
appreciation rights, all phantom stock or similar rights, and all options,
warrants or any other right to substitute for or otherwise acquire the capital
stock, partnership, profits, capital or member interest, stock appreciation
rights, phantom stock or similar rights of any Person.

“ERISA” shall mean
the Employee Retirement Income Security Act of 1974, as 

amended, and any successor statute.

“ERISA Affiliate”
shall mean each trade or business (whether or not incorporated) 

which together
with any Credit Party would be deemed to be a “single employer” within the 

meaning of Section 4001(b)(1) of ERISA or Subsections
414(b), (c), (m) or (o) of the Code.

“ERISA Termination Event” shall mean (a)
a “Reportable Event” described in Section 4043 of ERISA and the regulations
issued thereunder with respect to a Plan (other than an event for which the
30-day notice period is waived), (b) the withdrawal of any Credit Party or any
ERISA Affiliate from a Plan during a plan year in which it was a “substantial
employer” as defined in Section 4001(a)(2) of ERISA, (c) the filing of a notice
of intent to terminate a Plan or the treatment of a Plan amendment as a termination,
each, under Section 4041(c) of ERISA, (d) the receipt by a Credit Party or any
ERISA Affiliate of any notice relating to the institution of proceedings to
terminate a Plan by the PBGC, or (e) any other event or condition which could
reasonably be expected to constitute grounds under Section 4042(a) of ERISA for
the termination of, or the appointment of a trustee to administer, any Plan.

 5
 

“Event of Default” shall have the
meaning provided in Article 8.

“Excluded
Subsidiary” shall mean, at any time, any Subsidiary of Parent
whose Property has a value (valued at the higher of cost (determined on a
weighted average cost basis) or market value as determined in accordance with
GAAP consistently applied at such time) in an aggregate amount less than $5,000,000
and who has not become a Guarantor pursuant to Section 6.9 hereof.  As of the Closing Date, Aurora West, Mt.
Vernon and Power are Excluded Subsidiaries.

“Excluded Taxes” shall mean, with
respect to the Administrative Agent, any Lender and the Issuing Bank (each, a “Payee”), (a) income or franchise
Taxes imposed on (or measured by) such Payee’s net income by the United States
of America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any
Lender, in which its applicable Lending Office is located, (b) any branch
profits Taxes imposed by the United States of America or any similar Tax
imposed by any other jurisdiction in which any Credit Party is located, (c) any
Taxes imposed by reason of any present or former connection between such Payee
and the jurisdiction imposing such Tax, other than Taxes that would not have
been imposed but for this Agreement or any Financing Document, and (d) in the
case of a Foreign Lender, any withholding Tax that is imposed on amounts
payable to such Foreign Lender at the time such Foreign Lender becomes a party
to this Agreement (or designates a new Lending Office) or is attributable to
such Foreign Lender’s failure to comply with Section 2.20(f), except to
the extent that such Foreign Lender (or its assignor, if any) was entitled, at
the time of designation of a new Lending Office (or assignment), to receive
additional amounts from Borrower with respect to such withholding Tax pursuant
to Section 2.20(a).

“Federal Funds Effective Rate” shall
mean, for any day, the per annum rate equal to the weighted average of the
rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers, as published for such day
(or, if such day is not a Business Day, for the next preceding Business Day) by
the Federal Reserve Bank of New York, or, if such rate is not so published for
any day which is a Business Day, the average of the quotations for such day on
such transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it.

“Financing Documents” shall mean this
Agreement, the Security Instruments, the Applications, and the Borrowing
Requests, together with any other written document, instrument or agreement
(other than participation, agency or similar agreements among the Lenders or
between any Lender and any other bank or creditor with respect to any
indebtedness or obligations of any Obligated Party hereunder or thereunder) now
or hereafter entered into in connection with the Revolving Credit Loans, the
Lender Indebtedness or the Collateral, as such written documents, instruments
or agreements may be amended, modified or supplemented from time to time.

“Fiscal Quarter” shall mean the fiscal
quarter of Parent, ending on the last day of each March, June, September and
December of each Fiscal Year.

“Fiscal Year” shall
mean the fiscal year of Parent and Borrower ending on December 31 

of each year.

 6
 

“Foreign Lender” shall mean any Lender
that is organized under the laws of a jurisdiction other than that in which
Borrower is located.  For purposes of
this definition, the United States of America, each State thereof and the District
of Columbia shall be deemed to constitute a single jurisdiction.

“Funded
Indebtedness” shall mean, as to any Person, without duplication,
indebtedness of the type described in clause (a) of the definition of “Indebtedness”.

“GAAP” shall mean
generally accepted accounting principles as applied in accordance 

with Section 1.2.

“Governmental Authority” shall mean any
(domestic or foreign) federal, state, province, county, city, municipal or
other political subdivision or government, department, commission, board,
bureau, court, agency or any other instrumentality of any of them, which
exercises jurisdiction over any Obligated Party or any Property (including, but
not limited to, the use and/or sale thereof) of any Obligated Party or any
Plan.

“Governmental Requirement” shall mean
any law, statute, code, ordinance, order, rule, regulation, judgment, decree,
injunction, franchise, permit, certificate, license, authorization or other
direction or requirement (including, but not limited to, any of the foregoing
which relate to Environmental Laws, energy regulations and occupational, safety
and health standards or controls) of any Governmental Authority.

“Guarantors” shall mean Parent and each
current or future Subsidiary of Parent, other than Borrower, collectively, and “Guarantor” shall mean each such Person
individually; provided, that, Nebraska Sub shall not be a
Guarantor hereunder unless and until Parent becomes the direct or indirect
beneficial owner of 100% of the Equity of Nebraska Sub; provided, further,
that, no Excluded Subsidiary shall be a Guarantor unless and until it satisfies
the requirements of Section 6.9 hereof (at which time it shall no longer
be an Excluded Subsidiary).

“Guaranty and Security Agreement” shall
mean the Amended and Restated Guaranty and Security Agreement executed by
Borrower and each Guarantor dated as of September 15, 2006, as amended,
modified, renewed, supplemented or restated from time to time.

“Hedging Agreement” shall mean any swap,
cap, floor, collar, forward agreement, futures or other protection agreement or
option with respect to any such transaction, designed to hedge against
fluctuations in interest rates, commodity prices, currency exchange rates or
financial market conditions, other than any agreement or other arrangement
requiring physical delivery.

“Highest Lawful Rate” shall mean, with
respect to each Lender, the maximum non-usurious interest rate, if any, that at
any time or from time to time may be contracted for, taken, reserved, charged
or received on the Lender Indebtedness, owed to it under the law of any
jurisdiction whose laws may be mandatorily applicable to such Lender
notwithstanding other provisions of this Agreement, or under the law of the
United States of America applicable to such Lender and the transactions
contemplated hereunder, which would permit such Lender to contract for, charge,
take, reserve or receive a greater amount of interest than under such
jurisdiction’s law.

 7
 

“Historical Financials” shall mean (a)
the audited consolidated balance sheet and statement of income (loss) of Holdco
prepared as of December 31, 2005 and (b) the unaudited consolidated balance
sheet and consolidating statement of income (loss) for Holdco and its
consolidated Subsidiaries prepared as of June 30, 2006.

“Holdco” shall mean
Aventine Renewable Energy Holdings, Inc., a Delaware 

corporation.

“Indebtedness” of any Person shall mean:

(a)           all obligations of such Person for
borrowed money and obligations evidenced by bonds, debentures, notes, bankers’
acceptances or other similar instruments;

(b)           all obligations of such Person
(whether contingent or otherwise) in respect of letters of credit, surety or
other bonds and similar instruments;

(c)           all obligations of such Person to pay
the deferred purchase price of Property or services, other than trade payables
from time to time incurred in the ordinary course of business which do not
remain unpaid more than 60 days past the due date specified in the invoice or
specified in any contract pursuant to which such payable arises (other than
such trade payables as are being disputed in good faith by the applicable
Credit Party and with respect to which reserves have been established
satisfactory to Administrative Agent in its sole but reasonable discretion) ;

(d)           all Capital Lease Obligations in
respect of which such Person is liable, contingently or otherwise, as obligor,
guarantor or otherwise, or in respect of which obligations such Person
otherwise assures a creditor against loss;

(e)           all guaranties (direct or indirect),
and other contingent obligations of such Person in respect of, or obligations
to purchase or otherwise acquire or to assure payment of, Indebtedness of other
Persons;

(f)            all obligations and indebtedness of
other Persons secured by any Lien upon Property owned by such Person, whether
or not assumed;

(g)           all obligations or undertakings of
such Person to maintain or cause to be maintained the financial position or
financial covenants of other Persons (excluding, in the case of the Credit
Parties, commitments of any Credit Party to invest in Marketing Alliance
Partners);

(h)           all obligations of such Person to
deliver goods or services in consideration of advance payments but excluding
payments for the purchase of inventory made not more than seven (7) days in
advance of the physical delivery of such inventory to the applicable purchaser,
but only to the extent such advance payments are required by Borrower in the
ordinary course of business to address credit concerns pertaining to such
purchaser; and

(i)            any “synthetic lease,” “tax retained
operating lease” or similar lease financing arrangements under which the tenant
is treated as the owner of property for tax purposes but such lease is treated
as an operating lease in accordance with GAAP.

 8
 

“Indemnified Taxes” shall mean Taxes
arising from any payment made or action taken hereunder or from the execution,
delivery or enforcement of, or otherwise with respect to, this Agreement or any
Financing Document other than Excluded Taxes.

“Interest Period” shall mean, with
respect to each Borrowing of LIBOR Loans, an interest period complying with the
terms and provisions of Section 2.7.

“ISP98”
shall have the meaning provided in Section 2.3(b)(i).

“Issuing Bank”
shall mean, for each Letter of Credit, JPMorgan Chase as the issuing 

bank for such Letter of Credit.

“JPMorgan Chase” shall mean JPMorgan
Chase Bank, N.A. in its individual capacity as a Lender or as the Issuing Bank,
as the case may be, and not as the Administrative Agent.

“Lender” shall have the meaning set
forth in the initial paragraph hereof.

“Lender Affiliate” shall mean (a) with
respect to any Lender (i) an Affiliate of such Lender, or (ii) any entity
(whether a corporation, partnership, limited liability company, trust or
otherwise) that is engaged in making, purchasing, holding or otherwise
investing in bank loans and similar extensions of credit in the ordinary course
of its business and is administered or managed by a Lender or an Affiliate of
such Lender, and (b) with respect to any Lender that is a fund which invests in
bank loans and similar extensions of credit, any other fund that invests in
bank loans and similar extensions of credit and is managed by the same
investment advisor as such Lender or by an Affiliate of such investment
advisor.

“Lender Indebtedness” shall mean any and
all amounts owing or to be owing by any Obligated Party to the Administrative
Agent, the Issuing Bank, the Lenders or any Secured Affiliate with respect to
or in connection with the Revolving Credit Loans, any Letter of Credit
Liabilities, any Hedging Agreement, any Cash Management Agreement, this
Agreement, or any other Financing Document.

“Lending Office” shall mean, for each
Lender, the office specified opposite such Lender’s name on the signature pages
hereof, or in the Assignment and Acceptance pursuant to which it became a
Lender, with respect to each Type of Revolving Credit Loan, or such other
office as such Lender may designate in writing from time to time to Borrower
and the Administrative Agent with respect to such Type of Revolving Credit
Loan.

“Letter of Credit Liabilities” shall
mean, at any time and in respect of any Letter of Credit, the sum of (a) the
amount available for drawings under such Letter of Credit as of the date of
determination plus (b) the aggregate unpaid amount of all Reimbursement
Obligations due and payable as of the date of determination in respect of
previous drawings made under such Letter of Credit less (c) the amount
of Cover as of the date of determination.

“Letters of Credit” shall have the
meaning provided in Section 2.3(a).

“LIBOR Loan” shall
mean a Revolving Credit Loan bearing interest at the rate provided in Section
2.6(b).

 9
 

“LIBOR Rate” shall mean, with respect to
any Borrowing of LIBOR Loans for any Interest Period, the product of (a) (i)
the interest rate per annum shown on page 3750 of the Dow Jones & Company
Telerate screen or any successor page as the composite offered rate for London
interbank deposits with a period comparable to the Interest Period for such
LIBOR Loan, as shown under the heading “USD” at 11:00 A.M. (London time) two
Business Days prior to the first day of such Interest Period or (ii) if the
rate in clause (a) of this definition is not shown for any particular day, the
average  interest rate per annum (rounded
upwards, if necessary, to the next 1/16th of 1%) offered to the Administrative
Agent in the London interbank market for Dollar deposits of amounts in funds
comparable to the principal amount of the LIBOR Loan to which such LIBOR Rate
is to be applicable with maturities comparable to the Interest Period for which
such LIBOR Rate will apply as of approximately 9:00 a.m. (Chicago, Illinois
time) two Business Days prior to the commencement of such Interest Period, times
(b) Statutory Reserves.

“Lien” shall mean any interest in
Property securing an obligation owed to, or a claim by, a Person other than the
owner of the Property, whether such interest is based on contract,
constitutional, common, or statutory law, and including, but not limited to,
the lien or security interest arising from a mortgage, encumbrance, pledge,
security agreement, conditional sale or trust receipt or a lease, consignment
or bailment for security purposes.  The
term “Lien” shall include
reservations, exceptions, encroachments, easements, rights of way, liens and
other statutory, constitutional, or common law rights of landlords, leases and
other title exceptions and encumbrances affecting Property.  For the purposes of this Agreement, any
Credit Party shall be deemed to be the owner of any Property which it has
acquired or holds subject to a conditional sale agreement, financing lease or
other arrangement pursuant to which title to the Property has been retained by
or vested in some other Person for security purposes.

“Make-Whole Amount” shall have the
meaning set forth in Section 2.20(c).

“Margin Stock” shall have the meaning
provided in Regulations U and X.

“Marketing Alliance Partner” shall mean
a Person with whom Borrower has entered into a contract pursuant to which
Borrower purchases and resells all or a material portion of such Person’s
ethanol production for the stated term of such contract (including any of the
foregoing entered into after the Closing Date).

“Material Adverse Change” shall mean the
occurrence or existence of any event, condition or circumstance that has had,
or could reasonably be expected to have, a Material Adverse Effect.

“Material Adverse Effect” shall mean any
material and adverse effect on (a) the ability of Borrower or any Guarantor to
pay and perform its obligations under and comply with the terms and conditions
of this Agreement and the other Financing Documents in accordance with their
respective terms, (b) the rights and remedies of the Administrative Agent, the
Lenders and the Secured Affiliates under any of the Financing Documents, (c) the
validity or enforceability of any of the Financing Documents, or (d) the
perfection or priority of any of the Liens purported to be granted to the
Administrative Agent pursuant to any of the Security Instruments.

 10
 

“Material Provision” shall have the
meaning provided in Section 8.11.

“Maximum Available Amount” shall mean,
at any date, an amount equal to the lesser of (a) the aggregate Revolving
Credit Commitments as of such date, and (b) the sum of (i) 75% of Accounts
Receivable and (ii) 50% of Reported Inventory, in the case of both (i) and (ii)
as reflected on the Current Financials.

“Mortgage” shall mean the Mortgage,
Assignment, Security Agreement and Financing Statement dated May 30, 2003,
executed by Borrower in favor of the Administrative Agent.

“Mt. Vernon”
shall mean Aventine Renewable Energy — Mt. Vernon, LLC, a Delaware limited
liability company.

“Nebraska Sub” shall mean Nebraska
Energy, L.L.C., a Kansas limited liability company.

“New Subsidiary” shall have the meaning
provided in Section 6.9.

“Non-Repeating Representations and Warranties”
shall mean the representations and warranties set forth in Section 5.7,
the first sentence of Section 5.18, and the last sentence of Section
5.22.

“Obligated Party” shall mean each Credit
Party, Holdco and each other Person which is now, or hereafter becomes, a party
to any Financing Document pursuant to which such Person (a) becomes obligated
to repay all or any part of the Lender Indebtedness (whether as primary
obligor, guarantor, endorser, surety or otherwise), (b) subjects any Property
of such Person to a Lien securing all or any Lender Indebtedness, or (c)
otherwise provides credit support for all or any part of the Lender
Indebtedness or assures any Lender, the Administrative Agent or any Secured
Affiliate against loss in respect of the Lender Indebtedness.

“Other Taxes” shall mean any and all
present or future stamp or documentary Taxes or any other excise or property
Taxes, charges or similar levies arising from any payment made or action taken
hereunder or from the execution, delivery or enforcement of, or otherwise with
respect to, this Agreement or any Financing Document.

“Parent” shall mean Aventine Renewable
Energy, LLC, a Delaware limited liability company.

“Payment Office” shall mean the
Administrative Agent’s office located at 10 South Dearborn, Chicago, Illinois
60670 (or such other office or individual as the Administrative Agent may
hereafter designate in writing to the other parties hereto).

“PBGC” shall mean the Pension Benefit
Guaranty Corporation, or any successor thereto.

“Permitted Liens” shall have the meaning
provided in Section 7.3.

 11
 

“Person” shall mean any individual,
partnership, firm, corporation, association, joint venture, trust or other
entity (including, but not limited to, the Obligated Parties), or any
government or political subdivision or agency, department or instrumentality
thereof.

“Plan” shall mean any employee pension
benefit plan subject to the provisions of Title IV of ERISA, which (a) is
currently or hereafter sponsored, maintained or contributed to by any Credit
Party or an ERISA Affiliate, or (b) was at any time during the five preceding
Fiscal Years sponsored, maintained or contributed to by any Credit Party or an
ERISA Affiliate.

“Power”
means Aventine Power, LLC, a Delaware limited liability company.

“Prime Rate” shall mean the rate which
the Administrative Agent announces from time to time as its prime rate,
effective as of the date announced as the effective date of any change in such
prime rate.  Without notice to Borrower
or any other Person, the Prime Rate shall change automatically from time to
time as and in the amount by which such prime rate shall fluctuate.  The Prime Rate is a reference rate and does
not necessarily represent the lowest or best rate actually charged to any
customer.  The Administrative Agent may
make commercial loans or other loans at rates of interest at, above or below
the Prime Rate.

“Property” shall mean any interest in
any kind of property or asset, whether real, personal or mixed, or tangible or
intangible.

“Real Property”
shall mean any right, title or interest in and to real property, including 

any fee interest, leasehold interest, easement, or
license and any other right to use or occupy real property, including any right
arising by contract.

“Recovery Event”
shall mean  any settlement of or payment
in respect of

any Property or
casualty insurance claim or any condemnation proceeding relating to any asset
of any Credit 

Party.

“Register” shall have the meaning
provided in Section 10.7(c).

“Regulation D,” “Regulation U” and “Regulation X” shall mean, respectively,
Regulation D under the Securities Act of 1933, as amended or modified from time
to time, and Regulation U and Regulation X of the Board of Governors of the
Federal Reserve System,  as such
regulations are from time to time in effect and any successor regulations
thereto.

“Reimbursement Obligations” shall mean,
at any date, the obligations of Borrower then outstanding in respect of the
Letters of Credit, to reimburse the Administrative Agent for the account of the
Issuing Bank for the amount paid by the Issuing Bank in respect of any drawings
under the Letters of Credit.

“Reported Inventory” shall mean
all “inventory” of Borrower that, in conformity with 

GAAP, is included in “inventory” in the financial
statements of Borrower.

“Request for Letters of Credit”
shall mean a request for Letters of Credit pursuant to 

Section 2.3(b)(i), substantially in
the form attached as Exhibit B.

 

 12

“Required Lenders” shall mean Lenders
with an aggregate Revolving Credit Percentage of 66.67% or more.

“Responsible Officer” shall mean, with
respect to any corporation, the chairman of the board, the president, any vice
president, the chief executive officer, the chief operating officer, chief
accounting and compliance officer, or the chief financial officer, or any
equivalent officer (regardless of his or her title), and, in respect of
financial or accounting matters, the chief financial officer, the vice
president of finance, chief accounting and compliance officer, the treasurer,
the controller, director of finance, or any equivalent officer (regardless of
his or her title).

“Revolving Credit Commitment” shall have
the meaning provided in Section 2.1(c).

“Revolving Credit Exposure” shall mean,
at any date and as to each Lender, the sum of (a) the aggregate principal
amount of the Revolving Credit Loans made by such Lender outstanding as of such
date plus (b) such Lender’s Revolving Credit Percentage of the aggregate
amount of all Letter of Credit Liabilities as of such date.

“Revolving Credit Loan” shall have the
meaning provided in Section 2.1(a). 
The Revolving Credit Loans shall not include any Letter of Credit
Liabilities.

“Revolving Credit Maturity Date” shall
mean September 14, 2007.

“Revolving Credit Percentage” shall
mean, as to any Lender, the percentage of the aggregate Revolving Credit
Commitments constituted by its Revolving Credit Commitment (or, if the
Revolving Credit Commitments have terminated or expired, the percentage which
such Lender’s Revolving Credit Exposure at such time constitutes of the
Aggregate Revolving Credit Exposure at such time).

“Schedules” shall mean the Schedules to
this Agreement.

“Secured Affiliate” shall mean any Affiliate
of any Lender at the time that such Affiliate has entered into a Hedging
Agreement or Cash Management Agreement with any of the Credit Parties with the
obligations of such Credit Parties thereunder being secured by one or more
Security Instruments

“Security Instruments” shall mean the
Guaranty and Security Agreement, the Mortgage and any and all other agreements
or instruments now or hereafter executed and delivered by any Obligated Party
or any other Person as security for the payment or performance of the Lender
Indebtedness, as any of the foregoing may be amended, modified, renewed,
supplemented or restated from time to time.

“Solvent” shall mean with respect to any
Person on a particular date, the condition that, on such date, (a) the fair
value of the property of such Person is greater than the total amount of
liabilities, including, without limitation, contingent liabilities, of such
Person, (b) the present fair salable value of the assets of such Person is not
less than the amount that will be required to pay the probable liabilities of
such Person on its debts as they become absolute and matured, (c) such Person
does not intend to, and does not believe that it will, incur debts or
liabilities beyond such

 13
 

Person’s ability to pay as such debts and liabilities
mature, and (d) such Person is not engaged in business or a transaction, and is
not about to engage in business or a transaction, for which such Person’s
property would constitute an unreasonably small amount of capital.

“Standby Letter of Credit” shall mean a
letter of credit that (a) is used in lieu or in support of performance
guarantees or performance, surety or other similar bonds (but expressly
excluding stay and appeal bonds) arising in the ordinary course of business,
(b) is used in lieu or in support of stay or appeal bonds, (c) supports the
payment of insurance premiums for casualty insurance carried by Borrower, or
(d) supports payment or performance for identified purchases or exchanges of
products or services in the ordinary course of business.

“Statutory Reserves” shall mean a
fraction (expressed as a decimal), the numerator of which is the number one and
the denominator of which is the number one minus the aggregate of the
maximum applicable reserve percentages, including any marginal, special,
emergency or supplemental reserves (expressed as a decimal) established by the
Board of Governors of the Federal Reserve System and any other banking
authority to which the Lenders are subject for Eurocurrency Liabilities (as
defined in Regulation D) or any other category of deposits or liabilities by
reference to which the LIBOR Rate is determined.  Such reserve percentages shall include those
imposed pursuant to Regulation D.  LIBOR
Loans shall be deemed to constitute Eurocurrency Liabilities and to be subject
to such reserve requirements without benefit of or credit for proration,
exemptions or offsets that may be available from time to time to any Lender
under such Regulation D.  Statutory  Reserves shall be adjusted automatically on
and as of the effective date of any change in any reserve percentage.

“Subsidiary” of any Person shall mean a
corporation, limited liability company, partnership or other entity of which a
majority of the outstanding Voting Equity is owned by such Person, by one or
more Subsidiaries of such Person, or by such Person and one or more of its
Subsidiaries.

“Taxes” shall mean any and all present
or future taxes, levies, imposts, duties, deductions, charges or withholdings
imposed by any Governmental Authority.

“Type” of Revolving Credit Loan shall
mean a Base Rate Loan or a LIBOR Loan.

“UCC” shall mean the Uniform Commercial
Code as from time to time in effect in the State of New York or, where
applicable as to specific Collateral, any other relevant state.

“Voting Equity” of any Person shall mean
Equity of such Person which ordinarily has voting power for the election of
directors (or persons performing similar functions) of such Person, whether at
all times or only so long as no senior class of securities has such voting
power by reason of any contingency.

Section 1.2                     Accounting Terms and Determinations.  Unless otherwise defined or specified herein,
all accounting terms shall be construed herein, all accounting determinations
hereunder shall be made, and all financial statements required to be delivered
hereunder shall be prepared, in accordance with GAAP as in effect from time to
time; provided, that, if the Borrower notifies the Administrative
Agent that the Borrower requests an amendment of Section 7.1 hereof or
the definitions related thereto to eliminate the effect of any change occurring
after

 14
 

the date hereof in GAAP or in the application thereof (or if the
Administrative Agent notifies the Borrower that the Required Lenders request an
amendment of Section 7.1 hereof or the definitions related thereto for
such purpose), regardless of whether such notice is given before or after such
change in GAAP or in the application thereof, then such provision shall be
applied on the basis of GAAP as in effect and applied immediately before such
change shall have become effective until such notice shall have been withdrawn
or such provision amended in accordance herewith.

Section 1.3                     Other Definitional Terms.  The words “hereof,” “herein”
and “hereunder” and words
of similar import when used in this Agreement shall refer to this Agreement as
a whole and not to any particular provision of this Agreement, and article,
section, schedule, exhibit and like references are to this Agreement unless
otherwise specified.

ARTICLE 2

AMOUNT AND TERMS OF LOANS

Section 2.1                     Loans and
Commitments.

(a)           Revolving
Credit Loans.  Subject to
the terms and conditions and relying on the representations and warranties
contained herein, each Lender severally agrees to make, on the Closing Date and
on any Business Day from and after the Closing Date, but prior to the Revolving
Credit Maturity Date, revolving credit loans (each a “Revolving Credit Loan”) to Borrower.

(b)           Types
of Loans.  The Revolving
Credit Loans made pursuant hereto by each Lender shall, at the option of
Borrower, be either Base Rate Loans or LIBOR Loans and may be continued or
converted pursuant to Section 2.11; provided  that, except
as otherwise specifically provided herein, all Revolving Credit Loans made
pursuant to the same Borrowing shall be of the same Type.

(c)           Revolving
Credit Commitments.  Each
Lender’s Revolving Credit Exposure shall not exceed at any one time the amount
set forth opposite such Lender’s name on Annex I under the caption “Revolving
Credit Commitment” (as the same may be reduced pursuant to Section 2.9
or Section 2.10 or otherwise from time to time modified pursuant to Section
10.7, its “Revolving Credit Commitment,”
and collectively for all Lenders, the “Revolving
Credit Commitments”); provided, however, that,
subject to the last sentence of Section 2.10(b), the Aggregate Revolving
Credit Exposure at any one time outstanding shall not exceed the Maximum
Available Amount in effect at such time; and provided, further, that,
subject to the last sentence of Section 2.10(b), Borrower shall not be
permitted to obtain Borrowings of Revolving Credit Loans hereunder at anytime
in excess of the Availability at such time (calculated immediately prior to
giving effect to such Borrowings).  There
may be more than one Borrowing with respect to Revolving Credit Loans on any
day.  Within the foregoing limits and
subject to the conditions set out in Article 3, Borrower may obtain
Borrowings of Revolving Credit Loans, repay or prepay such Revolving Credit
Loans, and reborrow such Revolving Credit Loans.

 15
 

(d)           Amounts
of Borrowings, etc.  The
aggregate principal amount of each Borrowing (i) of LIBOR Loans shall be (A) in
an amount not less than $500,000 and (B) in an integral multiple of $100,000
and (ii) of Base Rate Loans shall be (A) in an amount not less than $100,000
and (B) in an integral multiple of $10,000. 
Borrowings of more than one Type may be outstanding at the same time; provided,
however, that Borrower shall not be entitled to request any Borrowing
that, if made, would result in an aggregate of more than five separate
Borrowings of LIBOR Loans being outstanding at any one time.  For purposes of the foregoing, Borrowings
having different Interest Periods, regardless of whether they commence on the
same date, shall be considered separate Borrowings.

Section 2.2                     Borrowing
Requests.

(a)           Borrowing
Requests.  Whenever
Borrower desires to make a Borrowing hereunder, it shall give Advance Notice in
the form of a Borrowing Request, specifying, subject to the provisions hereof,
(i) the aggregate principal amount of the Revolving Credit Loans to be made
pursuant to such Borrowing, (ii) the date of such Borrowing (which shall be a
Business Day), (iii) whether the Revolving Credit Loans being made pursuant to
such Borrowing are to be Base Rate Loans or LIBOR Loans, and (iv) in the case
of LIBOR Loans, the Interest Period to be applicable thereto.

(b)           Notice
by Administrative Agent. 
The Administrative Agent shall promptly (and, if any Borrowing Request
is received prior to 11:00 a.m., Chicago, Illinois time, on the same Business
Day received) give each Lender telecopy or telephonic notice (and, in the case
of telephonic notices, confirmed by telecopy or otherwise in writing) of the
proposed Borrowing, of such Lender’s Revolving Credit Percentage thereof and of
the other matters covered by the Advance Notice.  Borrower hereby waives the right to dispute
the Administrative Agent’s record of the terms of such telephonic notice,
absent manifest error.

Section 2.3                     Letters
of Credit.

(a)           Issuance
of Letters of Credit. 
Subject to the terms and conditions hereof, Borrower shall have the
right, in addition to Revolving Credit Loans provided for in Section 2.1,
to utilize the Revolving Credit Commitments from time to time prior to the date
which is thirty (30) days prior to the Revolving Credit Maturity Date by
obtaining the issuance of Standby Letters of Credit for the account of Borrower
by the Issuing Bank if Borrower shall so request in the notice referred to in Section
2.3(b)(i) (such letters of credit and any outstanding letters of credit
issued under and pursuant to the Existing Credit Agreement being collectively
referred to as the “Letters of Credit”);
provided, however, that Borrower shall not be permitted to obtain
the issuance of Letters of Credit hereunder at anytime in excess of the
Availability at such time (calculated immediately prior to giving effect to the
issuance of such Letters of Credit) and the aggregate of all Letter of Credit
Liabilities at any one time outstanding shall not exceed $30,000,000.  The Letters of Credit shall be denominated in
Dollars and may be issued to support obligations of Borrower permitted pursuant
to this Agreement.  Upon the date of the
issuance of a Letter of Credit, the Issuing Bank shall be deemed, without further

 16
 

action by any party
hereto, to have sold to each Lender, and each Lender shall be deemed, without
further action by any party hereto, to have purchased from such Issuing Bank, a
participation, to the extent of such Lender’s Revolving Credit Percentage, in
the Letter of Credit and the related Letter of Credit Liabilities.  No Letter of Credit issued pursuant to this
Agreement shall have an expiry date of one year after the date of issuance.

(b)           Additional
Letter of Credit Provisions. 
The following additional provisions shall apply to each Letter of
Credit:

(i)            Borrower shall give the
Administrative Agent and the Issuing Bank at least three Business Days’ prior
notice (effective upon receipt) in the form of a Request for Letters of Credit,
or in each case, such shorter period as may be agreed to by the Administrative
Agent and the Issuing Bank, specifying the date such Letter of Credit is to be
issued (which shall be a Business Day) and describing: (A) the face amount of
the Letter of Credit, (B) the expiration date of the Letter of Credit, (C) the
name and address of the beneficiary, (D) such information concerning the
transaction proposed to be supported by such Letter of Credit as the
Administrative Agent or the Issuing Bank may reasonably request, (E) such other
information and documents relating to the Letter of Credit as the
Administrative Agent or the Issuing Bank may reasonably request, and (F) a
precise description of documents and the verbatim text of any certificate to be
presented by the beneficiary, which, if presented prior to the expiry date of
the Letter of Credit, would require the Issuing Bank to make payment under the
Letter of Credit; provided, that, the Issuing Bank, in its
reasonable judgment, may require changes in such documents and
certificates.  Each such notice shall be
accompanied by the Issuing Bank’s Application and by a certificate executed by
a Responsible Officer setting forth calculations evidencing availability for
such Letter of Credit pursuant to Section 2.3(b)(ii) and stating that
all conditions precedent to such issuance have been satisfied.  Each Letter of Credit shall, to the extent
not inconsistent with the express terms hereof or the applicable Application,
be subject to the International Standby Practices, 1998, International Chamber
of Commerce Publication No. 590 (the “ISP98”) and
shall, as to matters not governed by the ISP98, be governed by, and construed
and interpreted in accordance with, the laws of the State of New York.

(ii)           Subject to the last sentence of Section
2.10(b), no Letter of Credit may be issued if, after giving effect thereto,
the Aggregate Revolving Credit Exposure would exceed the Maximum Available
Amount.  On each day during the period
commencing with the issuance of any Letter of Credit and until such Letter of
Credit shall have expired or shall have been terminated, the Revolving Credit
Commitment of each Lender shall be deemed to be utilized for all purposes
hereof in an amount equal to such Lender’s Revolving Credit Percentage of the
amount of the Letter of Credit Liabilities related to such Letter of Credit.

(iii)          Upon receipt from the beneficiary of
any Letter of Credit of any demand for payment thereunder, the Issuing Bank
shall promptly notify Borrower 

 17
 

and the Administrative Agent of such demand (provided,
that, the failure of the Issuing Bank to give such notice shall not
affect the Reimbursement Obligations of Borrower hereunder) and Borrower shall
immediately, and in any event no later than 9:00 a.m. (Chicago, Illinois time)
on the date of such drawing, reimburse the Administrative Agent for the account
of the Issuing Bank for any amount paid by the Issuing Bank upon any drawing
under any Letter of Credit, without presentment, demand, protest or other
formalities of any kind in an amount, in same day funds, equal to the amount of
such drawing.  Unless prior to 9:00 a.m.
(Chicago, Illinois time) on the date of such drawing, Borrower shall have
either notified the Issuing Bank and the Administrative Agent that Borrower
intends to reimburse the Administrative Agent for the account of the Issuing
Bank for the amount of such drawing with funds other than the proceeds of
Revolving Credit Loans or delivered to the Administrative Agent a Borrowing
Request for Revolving Credit Loans in an amount equal to such drawing, Borrower
will be deemed to have given a Borrowing Request to the Administrative Agent
requesting that the Lenders make Revolving Credit Loans which shall be Base
Rate Loans on the date on which such drawing is honored in an amount equal to
the amount of such drawing; provided, that, such Revolving Credit
Loans shall be subject to (A) the satisfaction of the conditions in Article
3 and (B) the existence of Revolving Credit Loan availability pursuant to Section
2.1(c) hereof (after giving effect to repayment of the applicable
Reimbursement Obligations with the proceeds of the proposed Revolving Credit
Loans).  Subject to the preceding
sentence, if so requested by the Administrative Agent, each of the Lenders
shall, on the date of such drawing, make such Revolving Credit Loans in an
amount equal to such Lender’s Revolving Credit Percentage of such drawing or
the full amount of the unused Revolving Credit Loan available pursuant to Section
2.1(c), as applicable, the proceeds of which shall be applied directly by
the Administrative Agent to reimburse the Issuing Bank to the extent of such
proceeds.

(iv)          Thirty (30) days prior to the
Revolving Credit Maturity Date (the “Cover Date”), Borrower shall
immediately, and in any event no later than 9:00 a.m. (Chicago, Illinois time)
on the Cover Date, deliver Cover for any Letters of Credit then
outstanding.  Unless prior to 9:00 a.m.
(Chicago, Illinois time) on the Cover Date, Borrower shall have delivered such
Cover, Borrower will be deemed to have given a Borrowing Request to the
Administrative Agent requesting that the Lenders make Revolving Credit Loans
which shall be Base Rate Loans on the Cover Date in an amount equal to the
Cover for all Letters of Credit then outstanding (or the full amount of the
unused Revolving Credit Loans then available, if such amount is less than the
aggregate Cover required).

(v)           If Borrower fails to reimburse the
Issuing Bank as provided in clause (iii) or (iv) above for any reason,
including, but not limited to, failure to satisfy the conditions in Article
3 or insufficient unused Revolving Credit Loan availability pursuant to Section
2.1(c), the Issuing Bank shall promptly notify the Administrative Agent and
the Administrative Agent shall notify each Lender of the unreimbursed amount of
such drawing and of such Lender’s respective

 18
 

participation therein based on such Lender’s Revolving
Credit Percentage.  Each Lender will pay
to the Administrative Agent for the account of the Issuing Bank on the date of
such notice an amount equal to such Lender’s Revolving Credit Percentage of
such unreimbursed drawing (or, if such notice is made after 12:00 noon
(Chicago, Illinois time) on such date, on the next succeeding Business
Day).  If any Lender fails to make available
to the Issuing Bank the amount of such Lender’s participation in such Letter of
Credit as provided in this clause (v), the Issuing Bank shall be entitled to
recover such amount on demand from such Lender together with interest at the
Federal Funds Effective Rate for one Business Day and thereafter at the Base
Rate.  Nothing in this clause (v) shall
be deemed to prejudice the right of any Lender to recover from the Issuing Bank
any amounts made available by such Lender to the Issuing Bank pursuant to this
clause (v) if it is determined by a court of competent jurisdiction that the
payment with respect to a Letter of Credit by the Issuing Bank was wrongful and
such wrongful payment was the result of gross negligence or willful misconduct
on the part of the Issuing Bank.  The
Issuing Bank shall pay to the Administrative Agent, and the Administrative
Agent to each Lender, such Lender’s Revolving Credit Percentage of all amounts
received from Borrower for payment, in whole or in part, of the Reimbursement
Obligations in respect of any Letter of Credit, but only to the extent such
Lender has made payment to the Issuing Bank in respect of such Letter of Credit
pursuant to this clause (v).

(vi)          The issuance by the Issuing Bank of
each Letter of Credit shall, in addition to the conditions precedent set forth
in Article 3, be subject to the conditions precedent that such Letter of
Credit shall be in the form and contain such terms as shall be reasonably
satisfactory to the Issuing Bank, and that Borrower shall have executed and
delivered such other instruments and agreements relating to the Letter of
Credit as the Issuing Bank shall have reasonably requested and that are not
inconsistent with the terms of this Agreement, including the Issuing Bank’s
Application therefor.  In the event of a
conflict between the terms of this Agreement and the terms of any Application,
the terms of this Agreement shall control.

(vii)         AS BETWEEN BORROWER AND
THE ISSUING BANK, BORROWER ASSUMES ALL RISKS OF THE ACTS AND OMISSIONS OF OR
MISUSE OF THE LETTERS OF CREDIT ISSUED BY THE ISSUING BANK BY THE RESPECTIVE
BENEFICIARIES OF SUCH LETTERS OF CREDIT. 
IN FURTHERANCE AND NOT IN LIMITATION OF THE FOREGOING, THE ISSUING BANK
SHALL NOT BE RESPONSIBLE: (A) FOR THE FORM, VALIDITY, SUFFICIENCY, ACCURACY, GENUINENESS
OR LEGAL EFFECT OF ANY DOCUMENT SUBMITTED BY ANY PERSON IN CONNECTION WITH THE
APPLICATION FOR OR ISSUANCE OF SUCH LETTERS OF CREDIT, EVEN IF IT SHOULD IN
FACT PROVE TO BE IN ANY OR ALL RESPECTS INVALID, INSUFFICIENT, INACCURATE,
FRAUDULENT OR FORGED; (B) FOR THE VALIDITY OR SUFFICIENCY OF ANY INSTRUMENT
TRANSFERRING OR 

 19
 

ASSIGNING OR PURPORTING TO
TRANSFER OR ASSIGN ANY SUCH LETTER OF CREDIT OR THE RIGHTS OR BENEFITS
THEREUNDER OR PROCEEDS THEREOF, IN WHOLE OR IN PART, WHICH MAY PROVE TO BE INVALID
OR INEFFECTIVE FOR ANY REASON; (C) FOR ERRORS, OMISSIONS, INTERRUPTIONS OR
DELAYS IN TRANSMISSION OR DELIVERY OF ANY MESSAGES, BY MAIL, CABLE, TELEGRAPH,
TELEX OR OTHERWISE, WHETHER OR NOT THEY ARE IN CIPHER; (D) FOR ERRORS IN
INTERPRETATION OF TECHNICAL TERMS; (E) FOR ANY LOSS OR DELAY IN THE
TRANSMISSION OR OTHERWISE OF ANY DOCUMENT REQUIRED IN ORDER TO MAKE A DRAWING
UNDER ANY SUCH LETTER OF CREDIT OR OF THE PROCEEDS THEREOF; (F) FOR THE
MISAPPLICATION BY THE BENEFICIARY OF ANY SUCH LETTER OF CREDIT OF THE PROCEEDS
OF ANY DRAWING UNDER SUCH LETTER OF CREDIT; AND (G) FOR ANY CONSEQUENCES
ARISING FROM CAUSES BEYOND THE CONTROL OF THE ISSUING BANK, INCLUDING, WITHOUT
LIMITATION, THE ACTIONS OF ANY GOVERNMENTAL AUTHORITY.  NONE OF THE ABOVE SHALL AFFECT, IMPAIR, OR
PREVENT THE VESTING OF ANY OF THE ISSUING BANK’S RIGHTS OR POWERS
HEREUNDER.  NOTWITHSTANDING ANYTHING TO
THE CONTRARY CONTAINED IN CLAUSE (G) ABOVE, BORROWER SHALL NOT ASSUME ANY RISK
AND SHALL HAVE NO OBLIGATION TO INDEMNIFY THE ISSUING BANK IN RESPECT OF, AND
THE ISSUING BANK WILL NOT BE EXCULPATED FROM (BUT SUBJECT TO SECTION 10.8),
ANY LIABILITY INCURRED BY THE ISSUING BANK ARISING PRIMARILY OUT OF THE GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT OF THE ISSUING BANK, AS DETERMINED BY A COURT
OF COMPETENT JURISDICTION.

(viii)        The Issuing Bank will send to Borrower
and the Administrative Agent immediately upon issuance of any Letter of Credit,
or an amendment thereto, a true and complete copy of such Letter of Credit, or
such amendment thereto.  Upon issuance of
any Letter of Credit or an amendment thereto, the Administrative Agent shall
promptly notify each Lender of the terms of such Letter of Credit or amendment
thereto, and of such Lender’s Revolving Credit Percentage of the amount of such
Letter of Credit or amendment thereto, and the Administrative Agent shall
provide to each Lender a copy of such Letter of Credit or such amendment
thereto.  Upon cancellation or
termination of any Letter of Credit, the Issuing Bank shall promptly notify the
Administrative Agent and Borrower, and the Administrative Agent will then
promptly notify each Lender, of such cancellation or termination.

The obligation of Borrower to reimburse the Issuing
Bank for Reimbursement Obligations with regard to the Letters of Credit issued
by it, and the obligations of the Lenders under clause (v), shall be
unconditional and irrevocable and shall be paid strictly in accordance

 20
 

with the terms of this
Agreement and under all circumstances including, without limitation, the
following circumstances:

(A)          any lack of validity or enforceability
of any Letter of Credit;

(B)          the existence of any claim, set-off,
defense or other right that any Credit Party may have at any time against a
beneficiary or any transferee of any Letter of Credit (or any Persons for whom
any such transferee may be acting), any Lender or any other Person, whether in
connection with this Agreement, the transactions contemplated herein or any
unrelated transaction (including any underlying transaction between any Credit
Party and the beneficiary for which the Letter of Credit was procured) other
than a defense based on the gross negligence (as opposed to ordinary
negligence) or willful misconduct of the Issuing Bank, as determined by a court
of competent jurisdiction;

(C)           any draft, demand, certificate or any
other document presented under any Letter of Credit is proved to be forged,
fraudulent, invalid or insufficient in any respect or any statement therein is
untrue or inaccurate in any respect;

(D)          any adverse change in the condition
(financial or otherwise) of any of the Credit Parties;

(E)           any breach of this Agreement or any
other Financing 

Document by any Credit Party, the Administrative Agent
or any Lender 

(other than the Issuing Bank);

(F)           any other circumstance or happening
whatsoever which is similar to any of the foregoing; provided, that,
such other occurrence or happening is not the result of the gross negligence
(as opposed to ordinary negligence) or willful misconduct of the Issuing Bank,
as determined by a court of competent jurisdiction; or

(G)           the fact that a Default shall have
occurred and be continuing.

Section 2.4                     Disbursement
of Funds.

(a)                                   Availability.  No later than 11:00 a.m. (or, in the case of
Base Rate Loans, 12:00 noon) (Chicago, Illinois time) on the date of each
Borrowing, each Lender will make available to the Administrative Agent such
Lender’s Revolving Credit Percentage of the principal amount of the Borrowing
requested to be made on such date reduced by the principal amount of Revolving
Credit Loans (if any) of such Lender maturing on such date, in Dollars and in
immediately available funds at the Payment Office.  The Administrative Agent will make available
to Borrower at the Payment Office the aggregate of the amounts (if any) so made
available by the Lenders by depositing such

 21
 

amounts, in immediately available funds, to the
accounts of Borrower, maintained with the Administrative Agent, designated by
Borrower for such purpose (collectively, the “Disbursement Account”) (on the date hereof, such accounts
being account numbers 601 867 419 (styled “Accounts Payable Controlled
Disbursement Account”) and 323 366 619 (styled “Operating Account”)), not later
than 2:00 p.m. (Chicago, Illinois time) on the date of each Borrowing.  To the extent that any Lender Indebtedness is
due and owing on the date of a requested Borrowing of Revolving Credit Loans,
the Lenders shall apply the proceeds of the Revolving Credit Loans then being
made, to the extent thereof, to the repayment of such Lender Indebtedness, such
Revolving Credit Loans or Reimbursement Obligations and repayments intended to
be a contemporaneous exchange.

(b)           Funds
to the Administrative Agent. 
Unless the Administrative Agent shall have been notified by any Lender
prior to the date of a Borrowing that such Lender does not intend to make
available to the Administrative Agent such Lender’s Revolving Credit Percentage
of the Borrowing to be made on such date, the Administrative Agent may assume
that such Lender has made such amount available to the Administrative Agent on
such date, and the Administrative Agent may make available to or for the
account of Borrower a corresponding amount. 
If such corresponding amount is not in fact made available to the Administrative
Agent by such Lender on the date of a Borrowing, the Administrative Agent shall
be entitled to recover such corresponding amount on demand from such Lender
together with interest at the Federal Funds Effective Rate for a period of
three (3) Business Days after the date due and at the rate applicable to Base
Rate Loans pursuant to Section 2.6(a) thereafter.  If such Lender does not pay such
corresponding amount forthwith upon the Administrative Agent’s demand therefor,
the Administrative Agent shall promptly notify Borrower and Borrower shall
immediately pay such corresponding amount to the Administrative Agent together
with interest at the rate specified for the Borrowing which includes such
amount paid.  Nothing in this Section
2.4(b) shall be deemed to relieve any Lender from its obligation to fulfill
its Revolving Credit Commitments hereunder or to prejudice any rights which
Borrower may have against any Lender as a result of any default by such Lender
hereunder.

(c)           Lenders’
Responsibilities.  No
Lender shall be responsible for any default by any other Lender in its
obligation to make Revolving Credit Loans hereunder, and each Lender shall be
obligated to make only such Revolving Credit Loans provided to be made by it
hereunder, regardless of the failure of any other Lender to fulfill its
Revolving Credit Commitment hereunder.

Section 2.5                     Evidence of Debt.  Any Lender may request that the Revolving
Credit Loans made by it be evidenced by a promissory note.  In such event, Borrower shall prepare,
execute and deliver to such Lender a promissory note payable to the order of
such Lender (or, if requested by such Lender, to such Lender and its registered
assigns) and in a form approved by the Administrative Agent.  Thereafter, the Revolving Credit Loans
evidenced by such promissory note and interest thereon shall at all times
(including after assignment pursuant to Section 10.7) be represented by
one or more promissory notes in such form payable to the order of the payee
named therein (or, if such promissory note is a registered note, to such payee
and its registered assigns).

 22
 

Section 2.6                     Interest.  In all cases subject to Section 10.12:

(a)           Base
Rate Loans.  Subject to Section
2.6(c), Borrower agrees to pay interest in respect of the unpaid principal
amount of each Base Rate Loan from the date thereof until payment in full
thereof at a rate per annum which shall be, for any day, equal to the sum of
the relevant Applicable Margin plus the Base Rate in effect on such day,
but in no event to exceed the Highest Lawful Rate.  The term “Base Rate” shall mean, for any day, the highest of (i) the
Prime Rate in effect on such day, and (ii) one-half of one percent (1⁄2%) plus
the Federal Funds Effective Rate in effect for such day (rounded upwards, if
necessary, to the nearest 1/16th of 1%), but in no event to exceed the Highest
Lawful Rate.  For purposes of this
Agreement, any change in the Base Rate due to a change in the Federal Funds
Effective Rate or the Prime Rate shall be effective as of the opening of business
on the effective date of such change in the Federal Funds Effective Rate or the
Prime Rate, as the case may be.  If for
any reason the Administrative Agent shall have determined (which determination
shall be conclusive and binding, absent manifest error) that it is unable to
ascertain the Federal Funds Effective Rate for any reason, including, but not
limited to, the inability of the Administrative Agent to obtain sufficient bids
or publications in accordance with the terms hereof, the Base Rate shall be the
Prime Rate until the circumstances giving rise to such inability no longer
exist.

(b)           LIBOR
Loans.  Subject to Section
2.6(c), Borrower agrees to pay interest in respect of the unpaid principal
amount of each LIBOR Loan from the date thereof until payment in full thereof
at a rate per annum which shall be equal to the sum of the relevant Applicable
Margin plus the LIBOR Rate, but in no event to exceed the Highest Lawful
Rate.

(c)           Default
Interest.  During the
continuance of any Event of Default, interest shall accrue on the outstanding
Lender Indebtedness, to the maximum extent permitted by law, at a rate per
annum equal to (i) in the case of any LIBOR Loan, the rate that would be
applicable under Section 2.6(b) to such LIBOR Loan, plus 2% per
annum, and (ii) in the case of any other amount comprising a part of the Lender
Indebtedness, the rate that would be applicable under Section 2.6(a) to
a Base Rate Loan, plus 2% per annum, but in no event to exceed the
Highest Lawful Rate; provided, that, the Administrative Agent
shall give written notice of the accrual of default interest but the failure
of  the Administrative Agent to give such
notice shall not affect the validity or timing of the accrual of such default
interest.

(d)           Interest
Payment Dates.  Interest
on each Revolving Credit Loan shall accrue from and including the date of such
Revolving Credit Loan to but excluding the date of payment in full
thereof.  Interest on each LIBOR Loan
shall be payable on the last day of each Interest Period applicable thereto
and, in the case of an Interest Period in excess of three months, on each day
which occurs at three month intervals of the initial date of such Interest
Period, and on any prepayment (on the amount prepaid), at maturity (whether by
acceleration or otherwise) and, after maturity, on demand.  Interest on each Base Rate Loan shall be
payable on the first Business Day of each calendar month, commencing on the
first of such days to occur after such Base Rate Loan is made and at 

 23
 

maturity (whether by acceleration or otherwise).  Interest which accrues pursuant to Section
2.6(c) shall be payable on demand.

(e)           Notice
by the Administrative Agent. 
The Administrative Agent, upon determining the LIBOR Rate for any
Interest Period, shall promptly notify, by telecopy, telephone (in the case of
telephonic notices, confirmed by telecopy or otherwise in writing) or in
writing, Borrower and the Lenders of such LIBOR Rate.

Section 2.7                     Interest Periods.  In connection with each Borrowing of LIBOR
Loans, Borrower shall elect an Interest Period to be applicable to such
Borrowing, which Interest Period shall begin on and include, as the case may
be, the date selected by Borrower pursuant to Section 2.2(a), the
conversion date or the date of expiration of the then current Interest Period
applicable thereto, and end on but exclude the date which is either one, two,
three or six months thereafter, as selected by Borrower; provided, that:

(a)           Business
Days.  If any Interest
Period would otherwise expire on a day which is not a Business Day, such
Interest Period shall expire on the next succeeding Business Day; provided,
further, that, if any Interest Period (other than in respect of a
Borrowing of LIBOR Loans the Interest Period of which is expiring pursuant to Section
2.15(b) hereof) would otherwise expire on a day which is not a Business Day
but is a day of the month after which no further Business Day occurs in such
month, such Interest Period shall expire on the next preceding Business Day;

(b)           Month
End.  Any Interest Period
which begins on the last Business Day of a calendar month (or on a day for
which there is no numerically corresponding day in the calendar month at the
end of such Interest Period) shall, subject to Section 2.7(c) below, end
on the last Business Day of a calendar month; and

(c)           Maturity
Dates.  No Interest Period
shall extend beyond the Revolving Credit Maturity Date.

Section 2.8                     Records.

(a)           Each Lender shall maintain in
accordance with its usual practice an account or accounts evidencing
indebtedness of Borrower to such Lender resulting from each Revolving Credit
Loan of such Lender from time to time, including, without limitation, the
amounts of principal and interest payable and paid to such Lender from time to
time under this Agreement.

(b)           The Administrative Agent shall
maintain the Register pursuant to Section 10.7(c), and a subaccount
therein for each Lender, in which shall be recorded (i) the amount of each
Revolving Credit Loan made hereunder, the Type thereof and each Interest
Period, if any, applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from Borrower to each
Lender hereunder and (iii) both the amount of any sum received by the
Administrative Agent hereunder from Borrower and each Lender’s Revolving Credit
Percentage thereof.

 

 24

(c)           The entries made in the Register and
the accounts of each Lender maintained pursuant to Section 2.8(b) shall,
to the extent permitted by applicable law, be prima facie evidence of the
existence and amounts of the obligations of Borrower therein recorded; provided,
however, that the failure of any Lender or the Administrative Agent to
maintain the Register or any such account, or any error therein, shall not in
any manner affect the obligation of Borrower to repay (with applicable
interest) the Revolving Credit Loans made to Borrower by such Lender in
accordance with the terms of this Agreement.

Section 2.9                     Voluntary Termination or Reduction of Revolving
Credit Commitments. 
Borrower may, upon at least five Business Days’ written notice to the
Administrative Agent, terminate entirely at any time, or partially reduce from
time to time by an aggregate amount of $1,000,000 or any larger multiple of
$100,000, the unused portions of the Revolving Credit Commitments; provided,
that any such reduction shall apply proportionately to the Revolving
Credit Commitment of each Lender. 
Borrower shall not be permitted to reduce the Revolving Credit
Commitments to an aggregate amount less than $10,000,000 unless Borrower
terminates the Revolving Credit Commitments in their entirety.

Section 2.10                   Repayment
at Maturity; Prepayments.

(a)           Repayment
and Maturity.  Borrower
hereby unconditionally promises to pay to the Administrative Agent for the
account of each Lender, the then unpaid principal amount of each Revolving
Credit Loan of such Lender on the Revolving Credit Maturity Date (or such
earlier date on which the Revolving Credit Loans become due and payable
pursuant to Article 8).

(b)           Mandatory Prepayments.

(i)            If at any time the Aggregate
Revolving Credit Exposure is in excess of the Maximum Available Amount,
Borrower shall immediately pay to the Administrative Agent, for the account of
the Lenders, the amount of such excess to be applied (A) as a prepayment of the
Revolving Credit Loans and Reimbursement Obligations outstanding and (B) after
payment in full of the Revolving Credit Loans 
and Reimbursement Obligations outstanding, as Cover for the Letter of
Credit Liabilities in an amount of such remaining excess.  Any prepayment or Cover required as a result
of any reduction or termination of the Revolving Credit Commitments pursuant to
Section 2.9 shall be payable or provided in full on the date on which
the reduction or termination of the Revolving Credit Commitments pursuant to Section
2.9 becomes effective.

(c)           Voluntary
Prepayments.  Borrower
may, at its option, at any time and from time to time, prepay the Revolving
Credit Loans and the Reimbursement Obligations, in whole or in part, upon
giving, in the case of any LIBOR Loan, three Business Days’ prior written
notice to the Administrative Agent, and, in the case of any Base Rate Loan,
prior written notice on the same Business Day to the Administrative Agent.  Such notice shall specify (i) in the case of
any prepayment of Revolving Credit Loans, the date and amount of prepayment and
whether the prepayment is of LIBOR Loans, Base Rate Loans or a combination
thereof, and, in each case if a combination 

 25
 

thereof, the principal amount allocable to each; and
(ii) in the case of any prepayment of Reimbursement Obligations, the date and
amount of prepayment, the identity of the applicable Letter of Credit or
Letters of Credit and the amount allocable to each of such Reimbursement
Obligations.  Upon receipt of such
notice, the Administrative Agent shall promptly notify each Lender of the
contents thereof and of such Lender’s Revolving Credit Percentage of such
prepayment.  If any such notice is given,
the amount specified in such notice shall be due and payable on the date
specified therein, together with (if a LIBOR Loan is prepaid other than at the
end of the Interest Period applicable thereto) any amounts payable pursuant to Section
2.18.  Prepayments of the Revolving
Credit Loans and the Reimbursement Obligations pursuant to this Section
2.10(c) shall be applied, first, to payment of the Revolving Credit
Loans then outstanding, second, to payment of any Reimbursement
Obligations then outstanding, and third, to Cover any outstanding Letter
of Credit Liability. Each prepayment of Base Rate Loans shall be in the minimum
principal amount of $100,000 and in integral multiples of $10,000 and each
prepayment of LIBOR Loans shall be in the minimum principal amount of $500,000
and in integral multiples of $100,000 or, in the case of either Base Rate Loans
or LIBOR Loans, the aggregate principal balance outstanding on the Revolving
Credit Loans and the Reimbursement Obligations, as applicable.  No prepayment of a LIBOR Loan shall be made
which would result in the remaining outstanding balance of such LIBOR Loan
being an amount less than $500,000, and any payment of LIBOR Loans made on any
day other than the last day of the applicable Interest Period shall be subject
to the payment of the amounts specified in Section 2.18.

(d)           Notice
by Administrative Agent. 
Upon receipt of a notice of prepayment pursuant to this Section 2.10,
the Administrative Agent shall promptly notify each Lender of the contents
thereof and of such Lender’s ratable share of such prepayment.

Section 2.11                   Continuation
and Conversion Options.

(a)           Continuation.  Borrower may elect to continue all or any
part of any Borrowing of LIBOR Loans beyond the expiration of the then current
Interest Period relating thereto by giving Advance Notice (which shall be
irrevocable) to the Administrative Agent of such election, specifying the LIBOR
Loans or portion thereof to be continued and the Interest Period therefor.  In the absence of such a timely and proper
election with regard to LIBOR Loans, Borrower shall be deemed to have elected
to convert such LIBOR Loans to Base Rate Loans pursuant to Section 2.11(d).

(b)           Amount
of Continuations.  All or
part of any LIBOR Loans may be continued as provided herein, provided, that,
any continuation of such LIBOR Loans shall not be (as to each Borrowing of such
LIBOR Loans as continued for an applicable Interest Period) less than $500,000
and shall be in an integral multiple of $100,000.

(c)           Continuation
or Conversion Upon Default. 
If no Default shall have occurred and be continuing, each LIBOR Loan may
be continued or converted as provided in this Section 2.11.  If a Default shall have occurred and be
continuing, Borrower shall not have the option to elect to continue any such
LIBOR Loan pursuant to

 26
 

Section 2.11(a)
or to convert Base Rate Loans to LIBOR Loans pursuant to Section 2.11(e).

(d)           Conversion
to Base Rate.  Borrower
may elect to convert any LIBOR Loan on the last day of the then current
Interest Period relating thereto to a Base Rate Loan by giving Advance Notice
to the Administrative Agent of such election.

(e)           Conversion
to LIBOR Rate.  Borrower
may elect to convert any Base Rate Loan at any time or from time to time to a
LIBOR Loan by giving Advance Notice (which shall be irrevocable) to the
Administrative Agent of such election, specifying each Interest Period
therefor.

(f)            Amounts
of Conversions.  All or
any part of the outstanding Revolving Credit Loans may be converted as provided
herein, provided  that any conversion of such Revolving Credit
Loans shall not result in a Borrowing of LIBOR Loans in an amount less than
$500,000 and in integral multiples of $100,000.

Section 2.12                   Fees.

(a)           Revolving
Credit Commitments. 
Borrower shall pay to the Administrative Agent, for the account of and
distribution to each Lender in accordance with its Revolving Credit Percentage,
a commitment fee for the period commencing on the Closing Date, to and
including the Revolving Credit Maturity Date (or such earlier date as the
Revolving Credit Commitments shall have been terminated entirely), computed at
a rate per annum equal to 0.15% on the amount by which the Revolving Credit
Commitments exceeds the daily Aggregate Revolving Credit Exposure.  The commitment fees payable pursuant to this Section
2.12(a) shall be payable quarterly in arrears on the first Business Day of
each calendar quarter, commencing on December 1, 2006.

(b)           Letters of Credit.

(i)            As consideration for acting as the
Issuing Bank with respect to any Letter of Credit issued at any time that
JPMorgan Chase is not the sole Lender under this Agreement, Borrower will pay
to the Issuing Bank, at the time of issuance, renewal or material amendment of
any Letter of Credit, a non-refundable fee equal to 0.25% of the face amount of
such Letter of Credit.  Borrower shall
also pay to the Issuing Bank, with respect to any issuance, amendment,
transfer, or cancellation prior to expiration of any Letter of Credit and for
each drawing made thereunder, documentary and processing charges in accordance
with the Issuing Bank’s standard schedule for such charges in effect at the
time of, and payable at the time of, such issuance, amendment, transfer,
cancellation or drawing, as the case may be. 
All fees payable pursuant to this clause shall be retained by the
Issuing Bank for its own account.

(ii)           Borrower will pay to the
Administrative Agent, for the account of and pro-rata distribution to each
Lender, a fee on the daily average amount available for drawings under each
Letter of Credit, in each case for the period

 27
 

from and including the date of issuance of such Letter
of Credit to and excluding the date of expiration or termination thereof,
computed at a per annum rate for each day equal to the Applicable Margin for
Revolving Credit Loans that are LIBOR Loans in effect on such day.  Such fees shall be payable monthly in arrears
on the first Business Day of each calendar month.

Section 2.13                   Payments, Credit Availability, etc.

(a)           Without
Setoff, etc.  Except as
otherwise specifically provided herein, all payments under this Agreement shall
be made to the Administrative Agent for the account of the Lenders without defense,
set-off or counterclaim to the Administrative Agent not later than 11:00 a.m.
(Chicago, Illinois time) on the date when due and shall be made in Dollars in
immediately available funds at the Payment Office.  The Administrative Agent will promptly thereafter
distribute funds in the form received relating to the payment of principal or
interest or commitment fees ratably to the Lenders for the account of their
respective Lending Offices, and funds in the form received relating to the
payment of any other amount payable to any Lender to such Lender for the
account of its applicable Lending Office.

(b)           Non-Business
Days.  Whenever any
payment to be made hereunder shall be stated to be due on a day which is not a
Business Day, the due date thereof shall be extended to the next succeeding
Business Day (except as otherwise provided in Section 2.7 hereof) and,
with respect to payments of principal, interest thereon shall be payable at the
applicable rate during such extension.

(c)           Computations.  All computations of interest shall be made on
the basis of a year of 360 days (unless such calculation would result in a
usurious rate, in which case interest shall be calculated on the basis of a
year of 365 or 366 days, as the case may be) for the actual number of days
(including the first day but excluding the last day) occurring in the period
for which such interest or fees are payable. 
Each determination by the Administrative Agent of an interest rate or
fee hereunder shall, except for manifest error, be final, conclusive and
binding for all purposes, provided, that, such determination
shall be made in good faith in a manner generally consistent with the
Administrative Agent’s standard practice. 
If the Administrative Agent and Borrower determine that manifest error
exists, said parties shall correct such error by way of an adjustment to the
next payment due hereunder.

Section 2.14                   Interest Rate Not Ascertainable, etc.  In the event that the Administrative Agent
shall have determined (which determination shall be reasonably exercised and
shall, absent manifest error, be final, conclusive and binding upon all
parties) that on any date for determining the LIBOR Rate for any Interest
Period, by reason of any changes arising after the date of this Agreement
affecting the London interbank market, or any Lender’s position in such market,
adequate and fair means do not exist for ascertaining the applicable interest
rate on the basis provided for in the definition of LIBOR Rate, then, and in
any such event, the Administrative Agent shall forthwith give notice (by
telephone confirmed in writing) to Borrower and to the Lenders of such
determination.  Until the Administrative
Agent notifies Borrower that the circumstances giving rise to the suspension
described herein no longer exist,

 28
 

(a) the obligations of the Lenders to make LIBOR Loans shall be
immediately suspended, (b) any Borrowing of LIBOR Loans that is requested (by
continuation, conversion or otherwise) shall instead be made as a Borrowing of
Base Rate Loans, and (c) any outstanding LIBOR Loan shall be converted, on the
last day of the then current Interest Period applicable thereto, to a Base Rate
Loan.

Section 2.15                   Illegality.

(a)           Determinations
of Illegality.  In the
event that any Lender shall have determined (which determination shall be
reasonably exercised and shall, absent manifest error, be final, conclusive and
binding upon all parties) at any time that the making or continuance of any
LIBOR Loan has become unlawful as a result of compliance by such Lender in good
faith with any applicable law, governmental rule, regulation, guideline or
order (whether or not having the force of law and whether or not failure to
comply therewith would be unlawful), then, in any such event, such Lender shall
give prompt notice (by telephone confirmed in writing) to Borrower and to the
Administrative Agent of such determination (which notice the Administrative
Agent shall promptly transmit to the other Lenders).

(b)           LIBOR
Loans Suspended.  Upon the
giving of the notice to Borrower referred to in Section 2.15(a) above,
(i) Borrower’s right to request (by continuation, conversion or otherwise), and
such Lender’s obligation to make, LIBOR Loans shall be immediately suspended,
and, thereafter, any requested Borrowing of LIBOR Loans shall, as to such
Lender only, be deemed to be a request for a Base Rate Loan, and (ii) if the
affected LIBOR Loan or LIBOR Loans are then outstanding, Borrower shall
immediately, or if permitted by applicable law, no later than the date
permitted thereby, upon at least one Business Day’s written notice to the
Administrative Agent and the affected Lender, convert each such LIBOR Loan into
a Base Rate Loan, provided  that if more than one Lender is
affected at any time, then all affected Lenders must be treated the same
pursuant to this Section 2.15(b).

Section 2.16                   Increased
Costs.

(a)           LIBOR
Regulations, etc.  If, by
reason of (x) the introduction of or any change after the date hereof
(including, but not limited to, any change by way of imposition or increase of
reserve requirements) in or in the interpretation of any law or regulation, or
(y) the compliance with any guideline or request issued after the date hereof
by any central bank or other governmental authority or quasi-governmental
authority exercising control over banks or financial institutions generally
(whether or not having the force of law):

(i)            any Lender (or its applicable
Lending Office) shall be subject to any Tax, duty or other charge with respect
to its LIBOR Loans or its obligation to make LIBOR Loans, or shall change the
basis of taxation of payments to any Lender of the principal of or interest on
its LIBOR Loans or its obligation to make LIBOR Loans (except for changes in
the rate of Tax on the overall net income or gross receipts of such Lender or
its applicable Lending Office imposed by the

 29
 

jurisdiction in which such Lender’s principal
executive office or applicable Lending Office is located); or

(ii)           any reserve (including, but not
limited to, any imposed by the Board of Governors of the Federal Reserve
System, but excluding any such reserve requirement that is reflected in the
LIBOR Rate), special deposit or similar requirement against assets of, deposits
with or for the account of, or credit extended by, any Lender or its applicable
Lending Office shall be imposed or deemed applicable or any other condition
affecting its LIBOR Loans or its obligations to make LIBOR Loans shall be
imposed on any Lender or its applicable Lending Office or the London interbank
market or the secondary certificate of deposit market;

and as a result thereof there shall be any increase in
the cost to such Lender of agreeing to make or making, funding or maintaining
LIBOR Loans (except to the extent already included in the determination of the
applicable LIBOR Rate or taken into account under Section 2.20) or there
shall be a reduction in the amount received or receivable by such Lender or its
applicable Lending Office (except to the extent taken into account under Section
2.20), then Borrower shall from time to time, upon written notice from and
demand by such Lender (with a copy of such notice and demand to the
Administrative Agent), pay to such Lender on demand additional amounts
determined by such Lender in a reasonable manner to be sufficient to indemnify
such Lender against such increased cost; provided, that, Borrower
shall not be required to compensate a Lender pursuant to this Section
2.16(a) for any amounts incurred more than six months prior to the date
that such Lender notifies Borrower of such Lender’s intention to claim
compensation therefor; and provided, further  that, (A) if
the circumstances giving rise to such claim have a retroactive effect, then
such six-month period shall be extended to include the period of such
retroactive effect, and (B) the limitation set forth in this proviso shall not
apply to amounts already included in the determination of the applicable LIBOR
Rate.  A certificate as to the amount of
such increased cost and the calculation thereof, submitted to Borrower and the
Administrative Agent by such Lender, shall, except for manifest error, be
final, conclusive and binding for all purposes.

(b)           Costs.  If any Lender shall advise the Administrative
Agent that at any time, because of the circumstances described in clauses (x)
or (y) in Section 2.16(a) or any other circumstances affecting such
Lender or the London interbank market or such Lender’s position in such market,
the LIBOR Rate, as determined in good faith by the Administrative Agent, will
not adequately and fairly reflect the cost to such Lender of funding its LIBOR
Loans, then, and in any such event:

(i)            the Administrative Agent shall
forthwith give notice (by telephone confirmed in writing) to Borrower and to
the other Lenders of such advice; and

(ii)           Borrower’s right to request a
Borrowing of LIBOR Loans from such Lender and such Lender’s obligation to make
LIBOR Loans shall be immediately suspended, any such Borrowing of LIBOR Loans
that is requested (by continuation, conversion or otherwise) shall, as to such
Lender only, be deemed to be a request for a Base Rate Loan, and any such
outstanding LIBOR

 30
 

Loan from such Lender shall be converted, on the last
day of the then current Interest Period applicable thereto, to a Base Rate
Loan.

(c)           Capital
Adequacy.  If, by reason
of (i) the introduction of or any change after the date hereof (including, but
not limited to, any change by way of imposition or increase of reserve
requirements) in or in the interpretation of any law or regulation, or (ii) the
compliance with any guideline or request issued after the date hereof by any
central bank or other governmental authority or quasi-governmental authority
exercising control over banks or financial institutions generally (whether or
not having the force of law), affects or would affect the amount of capital
required to be maintained by any Lender or any corporation controlling such
Lender, and the amount of such capital is increased by or based upon the
existence of such Lender’s Revolving Credit Loans or such Lender’s commitment
to lend hereunder and other commitments of this type or of the Letters of
Credit (or similar contingent obligations), then, upon written request therefor
by such Lender (with a copy of such request to the Administrative Agent),
Borrower shall pay to such Lender, from time to time as specified by such
Lender, additional amounts sufficient to compensate such Lender for the
increased cost of such additional capital in light of such circumstances, to
the extent that such Lender reasonably determines such increase in capital to
be allocable to the existence of such Lender’s Revolving Credit Loans or such
Lender’s commitment to lend hereunder or to the issuance or maintenance of the
Letters of Credit and such Lender is generally charging such costs to other
similarly situated borrowers under similar credit facilities; provided, that,
Borrower shall not be required to compensate a Lender pursuant to this Section
2.16(c) for any amounts incurred more than six months prior to the date
that such Lender notifies Borrower of such Lender’s intention to claim
compensation therefor; and provided, further  that, if the
circumstances giving rise to such claim have a retroactive effect, then such
six-month period shall be extended to include the period of such retroactive
effect.  A certificate as to such amounts
and the calculation thereof, submitted to Borrower and the Administrative Agent
by such Lender, shall be conclusive and binding for all purposes, absent
manifest error.

(d)           Issuing
Bank.  The rights and
benefits of the Lenders under this Section 2.16 shall also apply to the
Issuing Bank in its capacity as such.

Section 2.17                   Change of Lending Office.  Each Lender agrees that it will use
reasonable efforts to designate an alternate Lending Office with respect to any
of its LIBOR Loans affected by the matters or circumstances described in Section
2.14, Section 2.15 or Section 2.16 to reduce the liability of
Borrower or avoid the results provided thereunder, so long as such designation
is not disadvantageous to such Lender as determined by such Lender in its sole
discretion; provided, that, the mere existence of fees, charges,
costs or expenses that such Borrower has offered and agreed to pay on behalf of
such Lender shall not be deemed to be materially disadvantageous to the Lender;
and provided, further, that, such Lender shall have no
obligation to so designate an alternate Lending Office located in the United
States.

Section 2.18                   Funding Losses.  Borrower shall compensate each Lender, upon
its written request (which request shall set forth the basis for requesting
such amounts and shall, absent manifest error, be final, conclusive and binding
upon all of the parties hereto), for all

 31
 

losses, expenses and liabilities (including, but not limited to, any
interest paid by such Lender to lenders of funds borrowed by it to make or
carry its LIBOR Loans to the extent not recovered by such Lender in connection
with the re-employment of such funds), which such Lender may sustain:  (a) if for any reason (other than a default
by such Lender) a Borrowing of LIBOR Loans does not occur on the date specified
therefor in a Borrowing Request (whether or not withdrawn), including, but not
limited to, a failure by the Credit Parties to fulfill on the date of any
Borrowing of LIBOR Loans the conditions set forth in Article 3, or to
convert or continue any LIBOR Loan hereunder after irrevocable notice of such
conversion or continuation has been given pursuant to Section 2.11; (b)
if any payment, prepayment or conversion of any of its LIBOR Loans required or
permitted by any other provision of this Agreement or otherwise, or any
assignment of a LIBOR Loan pursuant to Section 2.22, in each case is
made or deemed made on a date which is not the last day of the Interest Period
applicable thereto; or (c) if, for any reason, Borrower defaults in its
obligation to repay its LIBOR Loans or interest accrued thereon as and when due
and payable (at the due date thereof, whether at scheduled maturity, by
acceleration, irrevocable notice of prepayment or otherwise).

Section 2.19                   Sharing of Payments, etc.  If any Lender shall obtain any payment or
reduction (including, but not limited to, any amounts received as adequate
protection of a deposit treated as cash collateral under the Bankruptcy Code)
of any obligation of any Obligated Party hereunder or under any of the other
Financing Documents (whether voluntary, involuntary, through the exercise of
any right of set-off, or otherwise) in excess of its ratable share of payments
or reductions on account of such obligations obtained by all the Lenders, such
Lender shall forthwith (i) notify each of the other Lenders and the
Administrative Agent of such receipt, and (ii) purchase from the other Lenders
such participations in the affected obligations as shall be necessary to cause
such purchasing Lender to share the excess payment or reduction, net of costs
incurred in connection therewith, ratably with each of them, provided, that,
if all or any portion of such excess payment or reduction is thereafter
recovered from such purchasing Lender or additional costs are incurred, the
purchase shall be rescinded and the purchase price restored to the extent of
such recovery or such additional costs, but without interest.  Each Obligated Party, by entering into a
Financing Document, further agrees that any Lender so purchasing a
participation from another Lender pursuant to this Section 2.19 may, to
the fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off) with respect to such participation as fully as
if such Lender were the direct creditor of the Credit Parties in the amount of
such participation.

Section 2.20                   Taxes.

(a)           Payments
Free and Clear.  Any and
all payments by or on account of any obligation of a Credit Party hereunder or
any other Financing Document shall be made free and clear of, and without
deduction for, any Indemnified Taxes or Other Taxes; provided, that,
if any Credit Party shall be required to deduct any Indemnified Taxes or Other
Taxes from such payments, then (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section 2.20) each
Payee receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Credit Parties shall make such deductions, and
(iii) the Credit Parties shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.

 32
 

(b)           Other
Taxes.  In addition, the
Credit Parties shall pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.

(c)           Indemnification.  Borrower shall indemnify each Payee, upon
written demand therefor, on an after-tax basis for the full amount of any
Indemnified Taxes or Other Taxes paid by such Payee on or with respect to any
payment by or on account of any obligation of the Credit Parties hereunder and
under the other Financing Documents and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto, whether or not such
Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted
by the relevant Governmental Authority, such that, after making all such
payments, such Payee receives and retains such amounts (hereinafter, the “Make-Whole Amount”) as it would have
received and retained had no such Indemnified Taxes, Other Taxes or liabilities
arising therefrom, been imposed on, and actually paid by, such Payee.  A certificate as to the amount of such
payment or liability delivered to Borrower by any Payee shall be accompanied by
evidence of actual payments made by such Payee on account of any liabilities
arising from Indemnified Taxes or Other Taxes, and it shall be conclusive
absent manifest error; provided, that, Borrower shall not be
obligated to make payment to any Payee pursuant to this Section 2.20(c)
in respect of penalties, interest or other additions attributable to any
Indemnified Taxes or Other Taxes if (i) written demand therefore has not been
made by such Payee within thirty (30) days from the date on which such Payee
knew of the imposition of Indemnified Taxes or Other Taxes by the relevant
Governmental Authority (but only to the extent that such penalties, interest or
other additions arise from such Payee having made its demand more than thirty
(30) days after the date on which such Payee knew of the imposition of
Indemnified Taxes or Other Taxes by the relevant Governmental Authority), or
(ii) such penalties, interest or other additions have accrued more than ten (10)
days after Borrower has indemnified or paid the full amount of the Indemnified
Taxes or Other Taxes to which such penalties, interest or other additions
relate.  After a Payee learns of the
imposition of Indemnified Taxes or Other Taxes, such Payee will act in good
faith to promptly notify Borrower of its obligations hereunder.

(d)           Receipts.  As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by any Credit Party to a Governmental
Authority, Borrower shall cause such Credit Party to deliver to the
Administrative Agent the original or a certified copy of a receipt issued by
such Governmental Authority evidencing such payment, a copy of the return
reporting such payment, or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

(e)           Survival.  Without prejudice to the survival of any
other agreement contained herein, the agreements and obligations contained in
this Section 2.20 shall survive the payment in full of principal and
interest hereunder.

(f)            Lender
Representations and Agreements. 
Any Foreign Lender that is entitled to an exemption from or reduction of
withholding tax under the law of the jurisdiction in which Borrower is located,
or any treaty to which such jurisdiction is a party, with respect to payments
under this Agreement shall deliver to Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law, such

 33
 

properly completed and executed documentation
prescribed by applicable law or reasonably requested by Borrower as will permit
such payments to be made without withholding or at a reduced rate.

(g)           Change
of Lending Office.  If the
Borrower is required to pay additional amounts to or for the account of any
Lender pursuant to this Section 2.20 as a result of a change of law
occurring after the date hereof, then such Lender, at the request of the
Borrower, will change the jurisdiction of its Lending Office if such change (i)
will eliminate or reduce any such additional payment which may thereafter
accrue and (ii) is not otherwise materially disadvantageous to such Lender, provided,
that, the mere existence of fees, charges, costs or expenses that such
Borrower has offered and agreed to pay on behalf of such Lender shall not be
deemed to be materially disadvantageous to the Lender.

(h)           Refunds.

(i)            If Payee shall become aware that it
is entitled to receive a refund or credit from a 

Governmental Authority in respect of Indemnified
Taxes, Other Taxes or any additional amounts for which such Payee has been
indemnified by Borrower pursuant to this Section, or with respect to which any
Credit Party has paid additional amounts pursuant to this Section, it shall
promptly notify Borrower of the availability of such refund or credit; provided,
that, no Payee shall be under any duty to inquire into or investigate
the availability of any such refund or credit. 
Borrower may request that such Payee seek a refund of, or credit in
respect of, such amounts, provided  that Payee shall not be
obligated to seek any such refund or credit until Borrower shall have (A)
advanced to Payee such amounts as Payee shall reasonably determine to be
sufficient to cover its costs and expenses in seeking such refund or claiming
the benefit of such credit, and (B) undertaken, in such form as Payee shall
reasonably determine to be appropriate to protect its interests, to fund any
costs and expenses of Payee in excess of those covered by the advance described
in clause (A).  Within 30 days after
receipt of a request by the Borrower and satisfaction of the foregoing
conditions precedent, Payee shall make a claim to the appropriate Governmental
Authority for such refund or credit.

(ii)           If as a result of the claim for
refund or credit described in clause (i) above or otherwise, Payee receives a
refund or secures the application of a credit in respect of any Indemnified
Taxes, Other Taxes or any other amounts as to which it has been indemnified by
Borrower pursuant to this Section, or with respect to which any Credit Party
has paid additional amounts pursuant to this Section, such Payee shall promptly
notify Borrower of such refund or credit and shall, within thirty (30) days
from the date of receipt of such refund or the application of such credit, pay
over to Borrower (but only to the extent of indemnity payments made, or
additional amounts paid, by Borrower or any Credit Party under this Section
with respect to the Indemnified Taxes, Other Taxes or any other amounts giving
rise to such refund or credit) the excess, if any, of (A) the amount of such
refund or credit (including any interest paid by the 

 34
 

Governmental Authority with respect to such refund or
credit), over (B) the sum of (1) all out-of-pocket expenses of such
Payee in excess of any advances theretofore made by Borrower, plus (2)
any Taxes levied on or attributable to the receipt by Payee of such refund or
credit, such that, after making any payment to Borrower required by this Section
2.20(h), Payee shall have received and retained an amount equal to the
Make-Whole Amount;  provided, that,
Borrower, upon the request of such Payee agrees to repay any amount paid over
to Borrower (plus penalties, interest or other charges due to the
Governmental Authority in connection therewith) to such Payee in the event such
Payee is required to repay such refund to such Governmental Authority or is
disallowed the benefit of the claimed credit.

Section 2.21                   Pro-rata
Treatment; Order of Application During Default; Order of Application of
Payments.

(a)           Subject to Section 2.4(b),
each Borrowing of Revolving Credit Loans shall be made, and any reduction of
the Revolving Credit Commitments of the Lenders shall be allocated by the
Administrative Agent, pro-rata according to the relevant Revolving Credit
Percentages of the Lenders.  Subject to Section
2.4(b), each payment (including each prepayment) on account of principal of
and interest on any Revolving Credit Loans shall be allocated by the
Administrative Agent pro-rata according to the respective outstanding principal
amounts of such Revolving Credit Loans then held by the Lenders.

(b)           During the existence of any Event of
Default, any payments in respect of the Lender Indebtedness or in respect of
any of the proceeds of Collateral shall be applied to the Lender Indebtedness
(i) first, to the payment in full of all costs, expenses and other charges (but
not fees) of Administrative Agent incurred in connection with the collection
and enforcement of the Lender Indebtedness and for the protection, preservation
or sale, disposition or other realization upon the Collateral or the Lenders’
interests under the Loan Documents, including all expenses, liabilities and
advances incurred or made by or on behalf of Administrative Agent, including
attorneys’ fees and legal expenses, and (ii) then to payment in full of the
remaining Lender Indebtedness (including to establish L/C Cover for all
outstanding Letters of Credit), in such order as Administrative Agent shall
determine in its sole discretion; provided, that, any Lender
Indebtedness consisting of amounts owed by any Obligated Party in respect of
any Hedging Agreements or Cash Management Agreements, shall only be paid after
payment in full of all other Lender Indebtedness to be paid pursuant to clause
(ii) above (subordinated amounts owing under any Cash Management Agreements shall
not include amounts owing in respect of any checks or other items deposited in
the relevant cash management accounts which are returned unpaid for any
reason).  For purposes of this Section
2.21(b), “payment in full” with respect to fees, expenses, costs and interest
shall include any fees, costs and expenses incurred during any bankruptcy or
insolvency proceeding, and any interest which accrued or would have accrued
after the commencement of any bankruptcy or insolvency proceeding, irrespective
of whether a claim for such fees, expenses, costs and interest is allowable in
such bankruptcy or insolvency proceeding.

 35
 

Section 2.22                   Replacement of Lenders.  If any Lender (a) does not make a LIBOR Loan
pursuant to Section 2.15, (b) is subject to increased costs pursuant to Section
2.16, (c) fails to designate an alternate Lending Office pursuant to Section
2.17 or Section 2.20, or (d) is owed or reasonably anticipates being
owed additional amounts pursuant to Section 2.20, Borrower shall have
the right, if no Default then exists, to replace such Lender with another bank
or financial institution with the consent of the Administrative Agent, which
consent shall not be unreasonably withheld; provided, that, (i)
the obligations of the Credit Parties owing to the Lender being replaced
(including such increased costs) that are not being assigned to the replacement
lender shall be paid in full to the Lender being replaced concurrently with
such replacement lender, (ii) the replacement lender shall execute an
Assignment and Acceptance pursuant to which it shall become a party hereto as
provided in Section 10.7, and (iii) upon compliance with the provisions
for assignment provided in Section 10.7 and the payment of amounts
referred to in clause (i), the replacement lender shall constitute a “Lender”
hereunder and the Lender being so replaced shall no longer constitute a “Lender”
hereunder.

ARTICLE 3

CONDITIONS TO BORROWINGS

Section 3.1                     Closing.  The obligation of each Lender to make its
initial Revolving Credit Loan and the Issuing Bank to issue its initial Letter
of Credit hereunder, is subject to (x) receipt by the Administrative Agent of
the following items which are to be delivered, in form and substance
satisfactory to the Administrative Agent and (y) the satisfaction of the
following conditions:

(a)           Resolutions and Incumbency
Certificates.

(i)            certified copies of the resolutions
of the Board of Directors (or comparable authority) of each Obligated Party
dated as of the Closing Date and 
approving, as appropriate, the Revolving Credit Loans, this Agreement,
the other Financing Documents, and all other documents, if any, in each case
being executed and delivered as of the Closing Date, in connection with this
Agreement to which such Obligated Party is a party and evidencing corporate (or
other organizational) authorization with respect to such documents; and

(ii)           a certificate of the Secretary or an
Assistant Secretary of each Obligated Party dated as of the Closing Date and
certifying (A) the name, title and true signature of each officer of such
Person authorized to execute this Agreement, Applications and the other
Financing Documents to which such Obligated Party is a party, (B) the name,
title and true signature of each officer of such Person authorized to provide
the certifications required pursuant to this Agreement including, but not
limited to, certifications required pursuant to Section 6.10, and
Borrowing Requests, and (C) that attached thereto is a true and complete copy
of (1) the certificate or articles of incorporation, certificate or articles of
organization, certificate of limited partnership, or comparable charter
documents, certified by the appropriate Governmental Authority of the
jurisdiction of incorporation or organization of such Obligated Party, (2) the bylaws,
regulations, partnership agreement, or comparable charter documents of

 36
 

such Obligated Party, each as amended to date, (3)
recent good standing certificates and certificates of existence for such
Obligated Party, and (4) certificates of foreign qualification for such
Obligated Party in such jurisdictions as the Administrative Agent shall
require.

(b)           Opinions of Counsel.

(i)            opinion of Davis, Polk &
Wardwell, counsel to each Obligated Party, dated as of the Closing Date and
substantially in the form delivered to the Administrative Agent and the Lenders
in connection with the closing of the Existing Credit Agreement, addressed to
the Administrative Agent, the Issuing Bank and the Lenders and covering such
matters as the Administrative Agent, the Issuing Bank or the Lenders may
reasonably request.

(ii)           opinion of Morris, Nichols, Arsht
& Tunnell, counsel to each Credit Party, dated as of the Closing Date and
substantially in the form delivered to the Administrative Agent and the Lenders
in connection with the closing of the Existing Credit Agreement, addressed to
the Administrative Agent, the Issuing Bank and the Lenders and covering such
matters as the Administrative Agent, the Issuing Bank or the Lenders may
reasonably request, including, but not limited to, perfection of the security
interests granted herein pursuant to Delaware law.

(c)           Guaranty and Security
Agreement.  Borrower and
each Guarantor shall have entered into the Guaranty and Security Agreement in
the form of Exhibit D to this Agreement.

(d)           Security Documentation.  Such other documents, instruments and
agreements and other actions as the Administrative Agent shall require in its
sole discretion to fully create, evidence, register and perfect the
Administrative Agent’s Liens in the Collateral securing the Lender
Indebtedness.

(e)           Insurance.  Copies of all insurance binders, together
with a certificate of insurance coverage, dated as of the Closing Date,
evidencing that the Credit Parties are carrying insurance in accordance with Section
6.5 hereof.

(f)            Certificate
of Responsible Officer. 
Certificate of a Responsible Officer of Borrower acceptable to the
Lenders dated as of the Closing Date certifying that (i) each Credit Party is
Solvent, (ii) no Default or Event of Default exists, (iii) each representation
and warranty contained herein and in the other Financing Documents is true and
correct, and (iv) each condition precedent contained in this Section 3.1
and Section 3.2 has been satisfied (subject only to the funding and
application of the initial Borrowing to be made hereunder).

(g)           Fees
and Expenses.  Payment
and/or reimbursement of the Administrative Agent’s counsel’s fees and expenses
rendered through the Closing Date, to the extent invoiced.

 37

(h)           Representations
and Warranties.  Each
representation and warranty of each Obligated Party contained herein and in
each of the other Financing Documents shall be true and correct.

(i)            Other
Documentation.  The
Administrative Agent shall have received such other documents as the
Administrative Agent (or any Lender acting through the Administrative Agent)
may reasonably request, all in form and substance reasonably satisfactory to
the Administrative Agent.

Section 3.2                     Conditions Precedent to All Loans and Letters of
Credit.  The obligation of
each Lender to make each Revolving Credit Loan hereunder (including the initial
Revolving Credit Loan) and the obligation of the Issuing Bank to issue each
Letter of Credit (including the initial Letter of Credit) is subject to
fulfillment of the following conditions immediately prior to or
contemporaneously with the making of each such Revolving Credit Loan or the
issuance of each such Letter of Credit:

(a)           Representations
and Warranties.  All
Bring-Down Representations and Warranties contained herein and in the other
Financing Documents executed and delivered on or after the Closing Date shall
be true and correct in all material respects with the same effect as though
such Bring-Down Representations and Warranties had been made on and as of the
date of such Revolving Credit Loan (unless such representation and warranty is
expressly limited to an earlier date). 
The fact that any representation and warranty is a Non-Repeating Representation
and Warranty and is therefore not remade other than on the date hereof, the
Closing Date and at the time of the initial Borrowing hereunder (and thus not
made for purposes of this Section 3.2(a)) will not prevent the existence
of any Event of Default or the exercise by the Administrative Agent or any
Lender of any right or remedy resulting from any breach of such representation
and warrant when made on the date hereof, the Closing Date and at the time of
the initial Borrowing hereunder.

(b)           No
Default.  There shall not
exist a Default or Event of Default hereunder.

(c)           No
Material Adverse Change. 
No Material Adverse Change shall have occurred.

(d)           Availability.  Availability shall exist in the amount of
such requested Revolving Credit Loan or the amount of such Letter of Credit.

ARTICLE 4

SECURITY

Section 4.1                     Security.  The Lender Indebtedness shall be secured by
perfected, first priority Liens on all Collateral of Borrower and each
Guarantor, whether now owned or hereafter acquired and wherever located (but
subject to Section 4.2).  In furtherance
of the foregoing, Borrower and Parent hereby agree to execute and deliver (and
to (i) cause any other appropriate Obligated Party to execute and deliver, and
(ii) cause any other appropriate Person to execute and deliver) to the
Administrative Agent for the benefit of the Lenders, promptly upon request by
the Administrative Agent, such Security Instruments and other documents,
instruments,

 38
 

agreements and certificates, as the Administrative Agent shall deem
necessary or appropriate in its sole discretion to create, evidence and perfect
the Liens contemplated by this Section 4.1.  Borrower and Parent hereby consent and
authorize (and shall cause any other appropriate Obligated Parties to consent
and authorize) the Administrative Agent and its agents, successors and assigns
to file any and all necessary financing statements under the UCC, amendments, “in
lieu” filings or assignments or continuation statements as necessary from time
to time (in the Administrative Agent’s discretion) to perfect or continue
perfection of the Liens granted (or purported to be granted) pursuant to the
Financing Documents.

Section 4.2                     Exceptions to Security.  Notwithstanding anything contained in this Article
4, (a) no Lien shall be required hereunder or under any Financing Document
with respect to (i) the Equity held by any Credit Party of any Marketing
Alliance Partner which is a Marketing Alliance Partner on the Closing Date to
the extent that the granting of such Lien is prohibited pursuant to the terms
of the organizational documents of such Marketing Alliance Partner on the date
hereof, (ii) the Equity in Nebraska Sub unless and until Parent and Borrower
either (A) obtain the consent of the requisite holders of Equity in Nebraska
Sub pursuant to Section 6.11 and comply with all other requirements of Section
6.11 with respect thereto, or (B) acquire 80% of the Equity of Nebraska
Sub, and (iii) the Equity held by any Credit Party in Fluid Technologies PLC
and (b) Administrative Agent shall not be entitled to require the delivery of
certificates of title, (or original applications for new certificates of title
and other related documents), with respect to vehicles and other Property owned
by Borrower or any Guarantor and subject to a certificate of title statute of
any applicable jurisdiction unless and until (i) the aggregate net book value
of such vehicles and other Property (as described in this clause (b)) exceeds
$500,000, or (ii) an Event of Default has occurred and is continuing.

ARTICLE 5

REPRESENTATIONS AND WARRANTIES

In order to induce the Lenders to enter into this
Agreement, each of Borrower and Parent jointly and severally represents and
warrants to the Administrative Agent and each Lenders as follows (such
representations and warranties (a) are made by Borrower and Parent as of the
date hereof, as of the Closing Date and as of the date of each Borrowing and
the issuance of each Letter of Credit and (b) when made as of the date hereof
and as of the Closing Date, shall be deemed made (unless specifically provided
otherwise herein):

Section 5.1                     Corporate Existence.  Each Obligated Party is a corporation,
partnership or limited liability company duly organized, legally existing and
in good standing under the laws of the jurisdictions in which it is
incorporated or organized and is duly qualified as foreign corporation,
partnership or limited liability company in all jurisdictions wherein the
Property owned or the business transacted by it makes such qualification
necessary, except where the failure to be so qualified would not have a
Material Adverse Effect.

Section 5.2                     Corporate Power and Authorization.  Each Obligated Party is duly authorized and
empowered to execute, deliver and perform the Financing Documents, including
this Agreement, to which it is a party; and all corporate, partnership, limited
liability company or other action on any Obligated Party’s part requisite for
the due execution, delivery and

 39
 

performance of the Financing Documents, including this Agreement, to
which such Obligated Party is a party 
has been duly and effectively taken.

Section 5.3                     Binding Obligations.  This Agreement does, and the other Financing
Documents to which any Obligated Party is a party upon their creation,
issuance, execution and delivery will, when issued and delivered under this
Agreement, constitute legal, valid and binding obligations of each Obligated
Party that is a party thereto, and will be enforceable in accordance with their
respective terms (except that enforcement may be subject to any applicable
bankruptcy, insolvency or similar laws generally affecting the enforcement of
creditors’ rights and subject to the availability of equitable remedies).

Section 5.4                     No Legal Bar or Resultant Lien.  The execution, delivery and performance of
the Financing Documents, including this Agreement, to which an  Obligated Party is a party do not and will
not violate or create a default under any provisions of the articles or
certificate of incorporation, certificate of limited partnership, articles or
certificate of organization, bylaws, partnership agreement, regulations or
other organizational documents of such Obligated Party, or any contract,
agreement, instrument or Governmental Requirement to which such Obligated Party
is subject, or result in the creation or imposition of any Lien upon any
Properties of such Obligated Party.

Section 5.5                     No Consent.  Each Obligated Party’s execution, delivery
and performance of the Financing Documents, including this Agreement, to which
such Obligated Party is a party, do not require notice to or filing or
registration with, or the authorization, consent or approval of or other action
by any other Person, including, but not limited to, any Governmental Authority,
except those obtained or made.

Section 5.6                     Financial
Information.

(a)           Current
Financials.  The Current
Financials were prepared in accordance with GAAP as in effect on the date such
Current Financials are delivered (subject, in the case of interim financial
statements, to the absence of footnotes and year-end audit adjustments which
will not, individually or in the aggregate, be material) and fairly present the
consolidated financial condition and results of operations of Parent and its
consolidated Subsidiaries as of the dates and for the periods reflected
therein.

(b)           Audited and Unaudited Historical
Financials.  The
Historical Financials were prepared in accordance with GAAP and fairly present
the consolidated financial condition of Holdco and its consolidated
Subsidiaries as of the dates reflected thereon.

(c)           Absence of Contingent
Liabilities.  No Credit
Party has any outstanding Indebtedness or other liability (including, without
limitation, contingent liabilities) or unusual, forward or long term
commitments other than (i) those disclosed in the most recent financial
statements referred to in Section 5.6(a) or (b) above, as
applicable, or the notes thereto, (ii) those expressly described in this
Agreement (including in the Schedules hereto), and (iii) those entered into or
incurred in compliance with the terms of this Agreement.

 40
 

(d)           No
Material Adverse Change. 
No Material Adverse Change has occurred subsequent to December 31, 2005.

Section 5.7                     Investments and Guaranties.  As of the Closing Date, no Credit Party has
made investments in or advances to any Person or guaranties of the obligations
of any Person except (a) those permitted in Section 7.2, and (b) those
reflected in Schedule 5.7 and Schedule 7.2.

Section 5.8                     Litigation.  There is no action, suit or proceeding, or
any governmental investigation or any arbitration, in each case pending or, to
the knowledge of Borrower or Parent, threatened against any Credit Party or any
Property of any Credit Party before any court or arbitrator or any Governmental
Authority (a) which challenges the validity of this Agreement, any Security
Instrument or any of the other Financing Documents, or (b) as to which there is
a reasonable possibility of an adverse determination that could reasonably be
expected to have a Material Adverse Effect.

Section 5.9                     Use of Proceeds.  Borrower will use the proceeds of the
Revolving Credit Loans only (a) to finance ongoing working capital requirements
of Borrower and (b) for general corporate purposes.  The Letters of Credit will be used only for
the purposes specified in the definition of “Standby Letter of Credit”.  No Credit Party is engaged principally, or as
one of its important activities, in the business of extending credit for the
purpose, whether immediate, incidental or ultimate, of buying or carrying
Margin Stock (within the meaning of Regulations U or X) and no part of the
proceeds of any Revolving Credit Loan hereunder will be used to buy or carry
any Margin Stock in violation of Regulation U or X.  No Credit Party nor any Person acting on
behalf of any Credit Party has taken or will take any action which could
reasonably be expected to cause the Financing Documents, including this
Agreement, to violate Regulations U or X or any other regulation of the Board
of Governors of the Federal Reserve System, in each case as now in effect or as
the same may hereinafter be in effect.

Section 5.10                   Employee
Benefits.

(a)           Each Credit Party and each ERISA
Affiliate have complied in all material respects with all applicable laws
regarding each Plan.  Each Plan is, and
has been, maintained and administered in substantial compliance with its terms,
applicable collective bargaining agreements, and all applicable laws.

(b)           There exists no outstanding material
liability of any Credit Party or any ERISA Affiliate with respect to any Plan
that has been terminated.  No material
liability to the PBGC (other than for the payment of current premiums which are
not past due) by any Credit Party or any ERISA Affiliate has been or is
expected by any Credit Party or any ERISA Affiliate to be incurred with respect
to any Plan.  No ERISA Termination Event
with respect to any Plan has occurred or is reasonably expected to occur which
could reasonably be expected to have a Material Adverse Effect.

(c)           The actuarial present value of the
benefit liabilities (computed on an accumulated benefit obligation basis based
on the assumptions used for purposes of Statement of Financial Accounting
Standards No. 87) under all Plans in the aggregate

 41
 

that are subject to Title IV of ERISA does not, as of
the end of the most recently ended fiscal year of such Plans, exceed the
current value of the assets of all Plans in the aggregate that are allocable to
such benefit liabilities. The term “actuarial present value of the benefit
liabilities” shall have the meaning specified in Section 4041 of ERISA.

(d)           Neither any Credit Party nor any
ERISA Affiliate sponsors, maintains or contributes to, or has at any time in
the preceding five-year period sponsored, maintained or contributed to, any “multiemployer
plan” (as defined in Section 3(37) or 4001(a)(3) of ERISA).

Section 5.11                   Taxes; Governmental Charges.  Each Credit Party has filed all material tax
returns and reports required to be filed and has paid all material Taxes,
assessments, fees and other governmental charges levied upon any of them or
upon any of their respective Properties or income which are due and payable,
including interest and penalties, except to the extent such Taxes, assessments,
fees, other governmental charges, interest and penalties as are being contested
in good faith by appropriate actions or proceedings disclosed to the Lenders
and for which reserves acceptable to the Administrative Agent have been
established.

Section 5.12                   Titles, etc.  Each Credit Party has good and valid title to
its respective material Properties included in the Current Financials, and with
respect to material leased Properties, good and valid title to the leasehold
estate with respect thereto, pursuant to valid and enforceable leases, free and
clear of all Liens other than Permitted Liens.

Section 5.13                   Defaults.  No Credit Party is in default nor has any
event or circumstance occurred which, but for the passage of time or the giving
of notice, or both, would constitute a default under (a) any loan or credit
agreement, indenture, mortgage, deed of trust, security agreement or other
instrument or agreement evidencing or pertaining to any Indebtedness of any
Credit Party in an amount exceeding $1,000,000 (individually or in the
aggregate), or (b) any other agreement or instrument to which any of the Credit
Parties is a party or by which any Credit Party is bound to the extent any such
default under any such other agreement or instrument could reasonably be
expected to have a Material Adverse Effect. 
No Default  has occurred which is
continuing.

Section 5.14                   Casualties; Taking of Properties.  Neither the business nor the Properties of
any Credit Party has been affected in a manner that has had or could have a
Material Adverse Effect as a result of any fire, explosion, earthquake, flood,
drought, windstorm, accident, strike or other labor disturbance, embargo,
requisition or taking of Property or cancellation of contracts, permits or
concessions by any domestic or foreign government or any agency thereof, riot,
activities of armed forces or acts of God or of any public enemy.

Section 5.15                   Compliance
with the Law.  No Credit
Party:

(a)           is in violation of any Governmental
Requirement; or

(b)           has failed to obtain any license,
permit, right-of-way, franchise or other right or governmental authorization
necessary to the ownership of any of their respective Properties or the conduct
of their respective businesses;

 42
 

which violation or failure could reasonably be
expected to, individually or in the aggregate, have (in the event that such a
violation or failure were asserted by any Person through appropriate action) a
Material Adverse Effect.

Section 5.16                   No Material Misstatements.  No material written information, exhibit,
schedule or report (for this purpose, all schedules and exhibits to the
Financing Documents shall be construed to be material) prepared by or on behalf
of any Credit Party and furnished to the Administrative Agent or the Lenders by
or at the direction of any Credit Party in connection with this Agreement or
any of the transactions contemplated hereby (other than the Projections,
budgets, analysis or other forward looking statements which were prepared or
made in good faith in accordance with sound financial planning practices on the
basis of reasonable assumptions at the time made) contained any material
misstatement of fact or, omitted to state a material fact or any fact necessary
to make the statement contained therein not misleading on the date as of which
such information is dated; provided, that, to the extent
information provided to the Administrative Agent or the Lenders or at the
direction of any Credit Party prior to the Closing Date was superceded by other
information provided to the Administrative Agent or the Lenders or at the
direction of any Credit Party prior to the Closing Date, this Section 5.16
shall apply to the most recent (and not superceded) information; provided,
further, that, any limitations or qualifications of the
representations and warranties contained in this Section 5.16 shall not
otherwise limit or qualify any other representation or warranty contained
elsewhere in this Agreement or in any other Financing Document.

Section 5.17                   Investment Company Act.  No Credit Party is an “investment company” or
a company “controlled” by an “investment company” that is incorporated in or
organized under the laws of the United States or any “State,” as those terms
are defined in the Investment Company Act of 1940, as amended.  The execution and delivery by the Obligated
Parties of this Agreement and the other Financing Documents to which they
respectively are parties and their respective performance of the obligations
provided for therein, will not result in a violation of the Investment Company
Act of 1940, as amended.

Section 5.18                   Capital Structure.  Holdco is a direct or indirect holder of 100%
of the Equity of Parent and Parent is a direct or indirect holder of 100% of
the Equity of each of Borrower, Aurora West, and Power.

Section 5.19                   Insurance.  All policies of fire, liability, workmen’s
compensation, casualty, flood, business interruption and other forms of insurance
owned or held by each Credit Party (a) satisfy all requirements of Section
6.5, (b) are valid, outstanding and enforceable policies, and (c) will not
in any way be affected by, or terminate or lapse by reason of, the transactions
contemplated by this Agreement. All such policies are in full force and effect,
all premiums with respect thereto have been paid in accordance with their
respective terms, and no notice of cancellation or termination has been
received with respect to any such policy. 
No Credit Party maintains any formalized self-insurance program with
respect to its assets or operations or risks with respect thereto.  The certificate of insurance delivered to the
Administrative Agent pursuant to Section 3.1(e) contains an accurate and
complete description of all policies of insurance owned or held by each Credit
Party on the Closing Date.

 43
 

Section 5.20                   Environmental
Matters.

(a)           Environmental
Laws, etc.  Neither any
real Property of any Credit Party nor the operations conducted thereon by any
Credit Party violate any applicable order of any court or Governmental
Authority or Environmental Laws, which violation could reasonably be expected
to have a Material Adverse Effect or which could reasonably be expected to
result in remedial obligations having a Material Adverse Effect assuming
disclosure to the applicable Governmental Authority of all relevant facts,
conditions and circumstances, if any, pertaining to the relevant Property.

(b)           No
Litigation.  No Property
of any Credit Party nor the operations currently conducted thereon or by any
prior owner or operator of such real Property or operation, are in violation of
or subject to any pending or threatened action, suit, investigation, inquiry or
proceeding by or before any court or Governmental Authority or to any remedial
obligations under Environmental Laws, which violation, action, suit,
investigation, inquiry or proceeding could reasonably be expected to have a
Material Adverse Effect or which could reasonably be expected to result in
remedial obligations having a Material Adverse Effect assuming disclosure to
the applicable Governmental Authority of all relevant facts, conditions and
circumstances, if any, pertaining to the relevant Property.

(c)           Notices,
Permits, etc.  All
notices, permits, licenses or similar authorizations, if any, required to be
obtained or filed by any Credit Party in connection with their operation or use
of any and all real Property of the Credit Parties, including, but not limited
to, past or present treatment, storage, disposal or release of a hazardous
substance or solid waste into the environment, have been duly obtained or filed
except to the extent the failure to obtain or file such notices, permits,
licenses or similar authorizations could not reasonably be expected to have a
Material Adverse Effect or which could not reasonably be expected to result in
remedial obligations having a Material Adverse Effect assuming disclosure to
the applicable Governmental Authority of all relevant facts, conditions and
circumstances, if any, pertaining to the relevant Property.

(d)           Hazardous
Substances Carriers.  All
hazardous waste or solid waste generated at any and all real Property of any
Credit Party have in the past been transported, treated and disposed of while
under the ownership, direction or control of any Credit Party only by carriers
maintaining valid permits under RCRA and any other Environmental Law, except to
the extent the failure to have such substances or waste transported, treated or
disposed by such carriers could not reasonably be expected to have a Material
Adverse Effect, and only at treatment, storage and disposal facilities
maintaining valid permits under RCRA and any other Environmental Law, which
carriers and facilities have been and are operating in compliance with such
permits, except to the extent the failure to have such substances or waste
treated, stored or disposed at such facilities, or the failure of such carriers
or facilities to so operate, could not reasonably be expected to have a
Material Adverse Effect or which could not reasonably be expected to result in
remedial obligations having a Material Adverse Effect assuming disclosure to

 44
 

the applicable Governmental Authority of all relevant
facts, conditions and circumstances, if any, pertaining to the relevant
Property.

(e)           Hazardous
Substances Disposal.  Each
Credit Party has taken all reasonable steps necessary to determine and has
determined that no hazardous substances or solid waste has been disposed of or
otherwise released and there has been no release of any hazardous substances on
or to any real Property of any Credit Party except in compliance with
Environmental Laws, except to the extent the failure to do so could not
reasonably be expected to have a Material Adverse Effect or which could not
reasonably be expected to result in remedial obligations having a Material
Adverse Effect assuming disclosure to the applicable Governmental Authority of
all relevant facts, conditions and circumstances, if any, pertaining to the
relevant real Property.

(f)            No
Contingent Liability.  The
Credit Parties have no contingent liability in connection with any release or
threatened release of any hazardous substance or solid waste into the
environment other than such contingent liabilities at any one time and from
time to time which could not reasonably be expected to exceed $200,000 in
excess of applicable insurance coverage and for which adequate reserves for the
payment thereof as required by GAAP have been provided, or which could not
reasonably be expected to result in remedial obligations having a Material
Adverse Effect assuming disclosure to the applicable Governmental Authority of
all relevant facts, conditions and circumstances, if any, pertaining to such
release or threatened release.

Section 5.21                   Solvency.  The Credit Parties taken as a whole are, and
each Credit Party individually is, Solvent.

Section 5.22                   Employee Matters.  Except as specified on Schedule 5.22
hereto, no Credit Party, nor any of their respective employees, is subject to
any collective bargaining agreement. 
There are no strikes, slowdowns, work stoppages or controversies pending
or threatened against any Credit Party, or their respective employees, which
could reasonably be expected to have, either individually or in the aggregate,
a Material Adverse Effect.  .

Section 5.23                   Loan Amount.  The Aggregate Revolving Credit Exposure will
not, at any time, exceed the Maximum Available Amount.

Section 5.24                   Excluded Subsidiaries.  The value of the Property (valued at the
higher of cost (determined on a weighted average cost basis) or market value as
determined in accordance with GAAP consistently applied at such time) of all
Excluded Subsidiaries will not, at any time, exceed $15,000,000 in the
aggregate.

ARTICLE 6

AFFIRMATIVE COVENANTS

So long as any Lender has any Revolving Credit
Commitment hereunder or any Revolving Credit Loan remains unpaid or any
Revolving Credit Exposure remains outstanding, Borrower and Parent shall, and
to the extent applicable shall cause each other Credit Party to, comply with
the following covenants:

 45
 

Section 6.1                     Maintenance and Compliance, etc.  Borrower and Parent will, and will cause each
other Credit Party to, (a) preserve and maintain its corporate, partnership or
limited liability company existence, and (b) except where failure to do so
could not reasonably be expected to have a Material Adverse Effect, observe and
comply with all Governmental Requirements.

Section 6.2                     Payment of Taxes and Claims, etc.  Borrower and Parent will pay, and will cause
each other Credit Party to pay, (a) all material Taxes, assessments and
governmental charges imposed upon it or upon its Property, and (b) all material
claims (including, but not limited to, claims for labor, materials, supplies or
services) which could reasonably be expected, if unpaid, to become a Lien upon
its Property, unless, in each case, the validity or amount thereof is being
contested in good faith by appropriate action or proceedings disclosed to the
Lenders, and Borrower and Parent have established reserves required by the
Administrative Agent in its sole but reasonable discretion with respect
thereto.

Section 6.3                     Further Assurances.  Borrower and Parent will cure, and will cause
each other Obligated Party to cure, promptly any defects in the execution and
delivery of the Financing Documents, including this Agreement.  Borrower and Parent at their expense will,
and will cause each other Obligated Party that is a party to any Financing
Document to, as promptly as practical, execute and deliver to the Administrative
Agent or the Issuing Bank upon request all such other and further documents,
agreements and instruments in compliance with or performance of the covenants
and agreements of the Obligated Parties in the Financing Documents, including
this Agreement, or to further evidence and more fully describe the Collateral,
or to correct any omissions in the Financing Documents, or more fully to state
the security obligations set out herein or in any of the Financing Documents,
or to perfect, protect or preserve any Liens created pursuant to any of the
Financing Documents, or to make any recordings, to file any notices, or obtain
any consents, all as may be necessary or appropriate in connection herewith or
therewith.

Section 6.4                     Performance of Obligations.  Borrower and Parent will do and perform, and
cause each other Obligated Party to do and perform, every act and discharge all
of the obligations provided to be performed and discharged by such parties
under the Financing Documents, including this Agreement, at the time or times
and in the manner specified, and cause each other Obligated Party to take such
action with respect to their obligations to be performed and discharged under
the Financing Documents to which they respectively are parties.

Section 6.5                     Maintenance of Insurance.  Borrower and Parent will, and will cause each
of the other Credit Parties to, maintain insurance with financially sound and
reputable insurance companies or associations in such amounts covering such
risks as in effect on the Closing Date with such changes as Administrative
Agent shall reasonably require to reflect changes after the Closing Date in the
business, operations or assets of, or risks faced by, the Credit Parties.  Administrative Agent shall be named “Loss
Payee” and/or “Additional Insured,” as appropriate, on all property, general
liability and business interruption policies.

Section 6.6                     Accounts and Records.  Borrower and Parent will keep, and will cause
each of the other Credit Parties to keep, proper books of record and account in
accordance with GAAP.

 46
 

Section 6.7                     Right of Inspection.  Borrower and Parent will permit, and will
cause each of the other Credit Parties to permit, any officer, employee or
agent of the Administrative Agent or any Lender to visit and inspect any of the
Properties of the Credit Parties, examine any Credit Party’s books of record
and accounts, take copies and extracts therefrom, and discuss the affairs,
finances and accounts of the Credit Parties with any Credit Party’s officers,
accountants and auditors, as often and all at such reasonable times during
normal business hours as may be reasonably requested by the Administrative
Agent or the Required Lenders.

Section 6.8                     Operation and Maintenance of Property.  Each of Borrower and Parent will, and will
cause each other Credit Party to, operate its Properties or cause its
Properties to be operated and maintained (a) in accordance with prudent
industry practice in all material respects and in compliance (except where the
non-compliance therewith could not reasonably be expected to have a Material
Adverse Effect) with the terms and provisions of all applicable leases,
contracts and agreements, and (b) except where the non-compliance therewith
could not reasonably be expected to cause or result in a Material Adverse
Effect, in compliance with all Governmental Requirements of the jurisdiction in
which such Properties may be situated, and all other Governmental Requirements
relating to the ownership and operation of such Properties.

Section 6.9                     New
Subsidiaries; Additional Liens.

(a)           If at any time after the Closing
Date, (x) Borrower is required to cause an Excluded Subsidiary to become a
Guarantor hereunder or (y) Borrower or any Guarantor creates or acquires any
one or more Subsidiaries (other than an Excluded Subsidiary) (each such
Subsidiary referred to in clauses (x) and (y) above being referred to herein
as, a “New Subsidiary”),
Borrower and Parent shall cause such New Subsidiary to execute and deliver to
the Administrative Agent for the benefit of the Lenders and the Issuing Bank,
at the time of such New Subsidiary’s creation or acquisition, (i) a Guaranty
and Security Agreement, and (ii) other appropriate Security Instruments
covering such New Subsidiary’s Property as security for the Lender
Indebtedness, in form and substance acceptable to the Administrative Agent.

(b)           If at any time after the Closing
Date, (i) Parent becomes the direct or indirect beneficial owner of 80% of the
Equity of Nebraska Sub (other than Equity held by management of Nebraska Sub
issued pursuant to a properly authorized management equity plan), Borrower and
Parent shall comply with all requirements of Section 6.11 hereto, and
(ii) Parent becomes the direct or indirect beneficial owner of 100% of the
Equity of Nebraska Sub (other than Equity held by management of Nebraska Sub
issued pursuant to a properly authorized management equity plan), Borrower and
Parent shall cause Nebraska Sub to execute and deliver to the Administrative
Agent for the benefit of the Lenders and the Issuing Bank (A) a Guaranty and
Security Agreement, and (B) other appropriate Security Instruments covering
Nebraska Sub’s Property as security for the Lender Indebtedness, in form and
substance acceptable to the Administrative Agent.

(c)           In connection with the execution and
delivery of any Security Instrument pursuant to this Section 6.9,
Borrower and Parent shall, or shall cause the relevant New Subsidiary or
Nebraska Sub (as applicable) to, deliver to the Administrative Agent for the

 47
 

benefit of the Lenders, resolutions, member or partner
consents, certificates, legal opinions and such other related documents as
shall be reasonably requested by the Required Lenders and consistent with the
relevant forms and types thereof delivered on the Closing Date or as shall be
otherwise reasonably acceptable to the Required Lenders.  Each Guaranty and Security Agreement and the
like delivered pursuant to this Section 6.9 shall be deemed to be a
Security Instrument from and after the date of execution thereof.

Section 6.10                   Reporting Covenants.  Borrower and Parent will furnish, and will
cause all other Credit Parties to furnish (as applicable to comply with this Section
6.10), the following to each of the Lenders:

(a)           Annual
Financial Statements.  As
soon as available and in any event within 90 days after the end of each Fiscal
Year commencing with the Fiscal Year ending on December 31, 2006, a
consolidated balance sheet of Holdco and its consolidated Subsidiaries as at
the end of such year and the related consolidated statements of income,
retained earnings and cash flows of Holdco and its consolidated Subsidiaries
for such Fiscal Year, setting forth in each case, in comparative form the
figures for the previous Fiscal Year, all in reasonable detail and, in the case
of such consolidated statements, accompanied by a report thereon (without
qualification) of independent public accountants of recognized national
standing, which report shall state that such consolidated financial statements
present fairly the consolidated financial condition as at the end of such
Fiscal Year, and the consolidated results of operations and cash flows for such
Fiscal Year, of Holdco and its consolidated Subsidiaries in accordance with
GAAP, applied on a consistent basis.

(b)           Quarterly
Financial Statements.  As soon
as available and in any event within 45 days after the end of each of the first
three fiscal quarters of each Fiscal Year, a consolidated balance sheet of each
of Holdco and its consolidated Subsidiaries as at the end of such month and the
related consolidated statements of income (loss), retained earnings and cash
flows of Holdco and its consolidated Subsidiaries for such calendar month and
for the portion of Holdco’s Fiscal Year ended at the end of such month, setting
forth in each case, in comparative form the figures for the corresponding month
and the corresponding portion of the previous Fiscal Year, all in reasonable
detail and certified by a Responsible Officer that such financial statements
are complete and correct and fairly present the consolidated financial
condition as at the end of such calendar month, and the consolidated results of
operations and cash flows for such calendar month and such portion of the
Fiscal Year of Holdco and its consolidated Subsidiaries in accordance with GAAP
(subject to year-end adjustments which shall not, individually or in the
aggregate, be material and adverse).

(c)           Title
Information.  Promptly
upon request by the Administrative Agent, additional title information in form
and substance reasonably acceptable to the Administrative Agent to allow the
Administrative Agent to verify the Obligated Parties’ title to, and the
perfection and priority of the Administrative Agent’s Liens in and to, the
Collateral.

 48
 

(d)           Events
or Circumstances with respect to Collateral.  Promptly after the occurrence of any event or
circumstance concerning or changing any of the Collateral that could reasonably
be expected to have a Material Adverse Effect, written notice of such event or
circumstance in reasonable detail.

(e)           Notice
of Certain Events. 
Promptly after either Borrower or Parent learns of the receipt or
occurrence of any of the following, a certificate of the Credit Party learning
of such event, signed by a Responsible Officer, specifying (i) any official
notice of any violation, possible violation, non-compliance or possible
non-compliance, or claim made by any Governmental Authority pertaining to all
or any part of the Properties of any Credit Party which could reasonably be
expected to have a Material Adverse Effect; (ii) any event which constitutes a
Default or Event of Default, together with a detailed statement specifying the
nature thereof and the steps being taken to cure such Default or Event of
Default; (iii) the receipt of any notice from, or the taking of any other action
by, the holder of any Indebtedness in excess of $5,000,000 of any Credit Party
with respect to a claimed default, together with a detailed statement
specifying the notice given or other action taken by such holder and the nature
of the claimed default and what action the Credit Parties are taking or propose
to take with respect thereto; (iv) any notice of proceedings or actions which
could reasonably be expected to adversely affect any of the Financing
Documents; (v) the creation, dissolution, merger or acquisition of any Credit
Party; (vi) any event or condition not previously disclosed to the
Administrative Agent which violates any Environmental Law and which could
reasonably be expected to have a Material Adverse Effect; or (vii)  any other event or condition which could
reasonably be expected to have a Material Adverse Effect.

(f)            Shareholder
Communications, Filings. 
Promptly upon the mailing, filing, or making thereof, copies of all
registration statements, periodic reports and other documents (excluding the
related exhibits except to the extent expressly requested by the Administrative
Agent) filed by any Credit Party with the Securities and Exchange Commission
(or any successor thereto) or any national securities exchange.

(g)           Litigation.  Promptly after the occurrence thereof, notice
of the institution of, or any material adverse development in, any action, suit
or proceeding or any governmental investigation or any arbitration, before any
court or arbitrator or any governmental or administrative body, agency or
official, against any Credit Party or any material Property of any Credit
Party, in which the amount involved is material and is not covered by insurance
or which there is a reasonable probability of an adverse determination that
could reasonably be expected to have a Material Adverse Effect.

(h)           ERISA.  Promptly after (i) any Credit Party obtaining
knowledge of the occurrence thereof, notice that an ERISA Termination Event
with respect to any Plan has occurred, which such notice shall specify the
nature thereof, the Credit Parties’ proposed response thereto (and, if
applicable, the proposed response thereto of any Subsidiary of the Credit
Parties and of any ERISA Affiliate) and, where known, any action taken or
proposed by the Internal Revenue Service, the Department of Labor or the PBGC
with respect thereto, and (ii) any Credit Party’s obtaining knowledge thereof,
copies of any

 49
 

notice of the PBGC’s
intention to terminate or to have a trustee appointed to administer any Plan.

(i)            Other
Information.  With
reasonable promptness, such other information about the business and affairs
and financial condition of any Credit Party as the Administrative Agent may
reasonably request from time to time, including, without limitation, weekly
accounts receivable aging and reconciliation reports, accounts payable aging
and reconciliation, sales reports and inventory designations.

Section 6.11                   Pledge of Equity of Nebraska Sub.  On such date as Parent holds directly or
indirectly not less than 80% of the Equity interest in Nebraska Sub, Parent
shall execute and deliver (or cause any other appropriate Credit Party to
execute and deliver) to the Administrative Agent such Security Instruments and
other supporting documentation (including legal opinions) as Administrative
Agent shall reasonably require to grant and fully evidence and perfect in favor
of the Administrative Agent for the ratable benefit of the Lenders, first and
prior Liens in and to all Equity of Nebraska. 
Without limiting the foregoing sentence, to the extent necessary to
perfect such Liens, Parent shall deliver or cause to be delivered to the
Administrative Agent original certificates evidencing such Equity.

Section 6.12                   Excluded Subsidiaries.  If, at any time, the value of the Property
(valued at the higher of cost (determined on a weighted average cost basis) or
market value as determined in accordance with GAAP consistently applied at such
time) of all Excluded Subsidiaries exceeds $15,000,000 in the aggregate,
Borrower and Parent shall cause one or more Excluded Subsidiaries to become
Guarantors pursuant to Section 6.9 hereof such that the value of the
Property (valued at the higher of cost (determined on a weighted average cost
basis) or market value as determined in accordance with GAAP consistently
applied at such time) of all Excluded Subsidiaries shall no longer exceed
$15,000,000.

ARTICLE 7

NEGATIVE COVENANTS

So long as any Lender has any Revolving Credit
Commitment hereunder or any Revolving Credit Loan remains unpaid or any
Revolving Credit Exposure remains outstanding, Parent and Borrower will not,
and Parent and Borrower will not permit any other Credit Party to:

Section 7.1                     Financial Covenants.  Permit the aggregate principal amount of the
Revolving Credit Loans to exceed the Maximum Available Amount at any time.

Section 7.2                     Indebtedness.  Create, incur, assume or suffer to exist, any
Indebtedness, other than:

(a)           the Lender Indebtedness;

(b)           Indebtedness outstanding on the date
hereof which is set forth on Schedule 7.2 and any refinancings,
refundings, renewals or extensions thereof (without any (i) increase in the
principal amount thereof (other than to finance accrued interest, fees and
other amounts outstanding in respect thereof and fees and expenses incurred in

 50
 

connection with such refinancing, refunding, renewal
or extension), or (ii) acceleration of the date of, or increase in the amount
of, any payment of principal thereon);

(c)           Indebtedness in respect of Capital
Lease Obligations and purchase money Indebtedness in an aggregate amount not in
excess of $10,000,000 outstanding at any time;

(d)           Indebtedness owed by the Credit
Parties or any of them to any party under any Cash Management Agreement;

(e)           Indebtedness loaned from (i) Parent
to Borrower, so long as any instruments evidencing such Indebtedness are
delivered to Administrative Agent to the extent required in accordance with the
Guaranty and Security Agreement, (ii) any Affiliate of any Credit Party to
Borrower or Parent, so long as such Indebtedness is subordinate to the Lender
Indebtedness as evidenced by a subordination agreement in form and substance
satisfactory to the Administrative Agent in its sole discretion, and (iii)
Parent or Borrower to Nebraska Sub; and

(f)            other unsecured Indebtedness; provided,
that, the aggregate amount of such other unsecured Indebtedness shall
not exceed $10,000,000 outstanding at any time.

Section 7.3                     Liens.  Create, incur, assume or suffer to exist, any
Lien on any of its Property now owned or hereafter acquired to secure any
Indebtedness of any Credit Party or any other Person, other than the following
(collectively, the “Permitted Liens”):

(a)           Liens existing on the date hereof and
set forth on Schedule 7.3;

(b)           Liens securing the Lender
Indebtedness;

(c)           Liens for taxes, assessments or other
governmental charges or levies not yet due or which are being contested in good
faith by appropriate action or proceedings which have been disclosed to the
Lenders and with respect to which reserves acceptable to the Administrative
Agent have been established, but only so long as any execution on or
foreclosure of such Liens is stayed;

(d)           statutory Liens of landlords and
Liens of carriers, warehousemen, mechanics, materialmen, repairmen, workmen,
and other Liens imposed by law created in the ordinary course of business for
amounts which are not past due for more than thirty (30) days or which are
being contested in good faith by appropriate action or proceedings and with
respect to which adequate reserves in accordance with GAAP are being
maintained;

(e)           Liens incurred or deposits or pledges
made in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other types of social security, old
age or other similar obligations, or to secure the performance of tenders,
statutory obligations, surety and appeal bonds, bids, leases, government
contracts, performance and return-of-money bonds and other similar obligations
(exclusive of obligations for the payment of borrowed money);

 

 51

(f)            irregularities in title, easements,
rights-of-way, restrictions, servitudes, permits, reservations, exceptions,
conditions, covenants, encroachments, protrusions and other similar charges or
encumbrances not materially interfering with the occupation, use and enjoyment
by any Credit Party of any of their respective Properties in the normal course
of business or materially impairing the value thereof;

(g)           any obligations or duties affecting
any of the Property of any Credit Party to any municipality or public authority
with respect to any franchise, grant, license or permit which do not materially
impair the use of such Property for the purposes for which it is held;

(h)           Liens securing Indebtedness permitted
by Section 7.2(c); provided, that, (i) such Liens attach
only to the Property being leased or acquired, (ii) the creation of or
incurrence of such Liens does not violate this Agreement or any other Financing
Documents, and (iii) the principal amount of the Indebtedness secured does not
exceed 100% of the total purchase price of the Property being leased or
acquired;

(i)            judgment liens in respect of
judgments that do not constitute an Event of Default under Section 8.9;

(j)            extensions, renewals or replacements
of any Lien referred to in Section 7.3(a) and Section 7.3(h), provided,
that the principal amount of the Indebtedness or obligation secured
thereby is not increased and that any such extension, renewal or replacement is
limited to the Property originally encumbered thereby; and

(k)           Liens encumbering cash or cash
equivalents (or letters of credit or surety bonds posted in lieu thereof) to
satisfy margin calls under Hedging Agreements.

Section 7.4                     Mergers, Sales, etc.  Merge into or with or consolidate with, or
permit any other Credit Party to merge into or with or consolidate with, any
other Person, or sell, lease or otherwise dispose of, or permit any other
Credit Party to sell, lease or otherwise dispose of (whether in one transaction
or in a series of transactions) all or any substantial portion of its Property
to any other Person.

Section 7.5                     Investments, Loans, etc.  Make any loans to or investments in an
Excluded Subsidiary unless after giving effect thereto Section 6.12 is
complied with.

Section 7.6                     Sales and Leasebacks.  Enter into any arrangement, directly or
indirectly, with any Person whereby any Credit Party shall sell or transfer any
Property, whether now owned or hereafter acquired, and whereby any Credit Party
shall then or thereafter rent or lease as lessee such Property or any part thereof
or other Property which a Credit Party intends to use for substantially the
same purpose or purposes as the Property sold or transferred.

Section 7.7                     Nature of Business.  Engage in, or permit any other Credit Party
to engage in, any business materially or substantially different than the
businesses in which the Credit Parties are engaged in as of the Closing Date,
which is the production, marketing, purchasing, selling, reselling and
distributing of ethanol and ethanol co-products and related bio-products.

 52
 

Section 7.8                     ERISA
Compliance.

(a)           Engage in, or permit any ERISA
Affiliate to engage in, any transaction in connection with which any Credit
Party or any ERISA Affiliate could be subjected to either a civil penalty
assessed pursuant to Sections 502(c), (i) or (l) of ERISA or a tax imposed by
Chapter 43 of Subtitle D of the Code which could reasonably be expected to have
a Material Adverse Effect;

(b)           Terminate, or permit any other Credit
Party or any ERISA Affiliate to terminate any Plan under Section 4041(c) of
ERISA or otherwise have the termination of any Plan initiated by the PBGC;

(c)           Permit to exist, or allow any other
Credit Party or any ERISA Affiliate to permit to exist, any accumulated funding
deficiency within the meaning of Section 302 of ERISA or Section 412 of the
Code, whether or not waived, with respect to any Plan that could reasonably be
expected to have a Material Adverse Effect;

(d)           Amend, or permit any other Credit
Party or any ERISA Affiliate to amend, a Plan resulting in an increase in
current liability such that any Credit Party or any ERISA Affiliate is required
to provide security to such Plan under Section 401(a)(29) of the Code; or

(e)           Incur, or permit any other Credit
Party or any ERISA Affiliate to incur, a liability to or on account of a Plan
under Sections 515, 4062, 4063, 4064, 4201 or 4204 of ERISA that could
reasonably be expected, in the aggregate, to result in a Material Adverse
Effect.

Section 7.9                     Negative Pledge Agreements.  Create, incur, assume or suffer to exist, or
permit any other Credit Party to create, incur, assume or suffer to exist, any
contract, agreement or understanding, other than (a) this Agreement and the
other Financing Documents and (b) any agreements governing any purchase money
Liens or Capital Lease Obligations or dispositions of assets otherwise
permitted hereby provided  that any such prohibition or limitation
is only effective against the Property financed thereby, which in any way
prohibits or restricts the granting, conveying, creation or imposition of any
Lien on any Property of any Credit Party, or which requires the consent of or
notice to other Persons in connection therewith.

Section 7.10                   Transactions With Affiliates.  Except as set forth on Schedule 7.10,
enter into, or permit any other Credit Party to enter into, any transaction or
series of transactions with Affiliates of any Credit Party which involve an
outflow of money or other Property from any Credit Party to an Affiliate of any
Credit Party other than Borrower, including, but not limited to, repayment of
Indebtedness, management fees, compensation, salaries, asset purchase payments
or any other type of fees or payments similar in nature except for those which
are in the ordinary course of business of the Credit Parties and are on fair and
reasonable terms no less favorable than would be obtained in a comparable arm’s
length transaction with a Person not an Affiliate.

 53
 

Section 7.11                   Equity.  Authorize or issue, or permit any other
Credit Party to authorize or issue any preferred stock or other Equity having a
mandatory redemption right existing with regard thereto.

Section 7.12                   Intercompany Transactions.  Create or otherwise cause or permit to exist
or become effective, except as may be expressly permitted or required by the
Financing Documents, any consensual encumbrance or restriction of any kind on
the ability of any Credit Party to (a) pay any indebtedness owed to any Credit
Party, (b) make any loan or advance to any Credit Party or any investment in
any Credit Party, or (c) sell, lease or transfer any of its Property to any
Credit Party except, in each case, for restrictions (i) contained in the
Operating Agreement of Nebraska Sub as in effect on the Closing Date or set
forth in resolutions of the membership committee of Nebraska Sub adopted on June 21,
2001, and March 10, 2003, copies of which were provided to Administrative Agent
prior to the Closing Date, (ii) arising under any Governmental Requirement,
(iii) set forth in a lease or license permitted pursuant to the terms of the
Financing Documents and entered into in the ordinary course of business that
restrict in a customary manner the subletting, assignment or transfer of any
property or asset that is subject to such lease or license, or (iv) set forth
in the terms of any document or instrument evidencing any Permitted Liens (or
the Indebtedness secured thereby) that restrict in a customary manner the
subletting, assignment or transfer of any property or asset that is subject to
such Permitted Lien.

Section 7.13                   Acquisition of Equity in Nebraska Sub.  Permit any Affiliate of any Credit Party
other than Parent,  Borrower or any
Guarantor to acquire Equity of Nebraska Sub.

Section 7.14                   Excluded Subsidiaries.  Permit, at any time, the value of the
Property (valued at the higher of cost (determined on a weighted average cost
basis) or market value as determined in accordance with GAAP consistently
applied at such time) of all Excluded Subsidiaries to exceed $15,000,000 in the
aggregate.

ARTICLE 8

EVENTS OF DEFAULT

Upon the occurrence and during the continuance of any
of the following specified events (each an “Event of Default”):

Section 8.1                     Payments.  Borrower shall fail to pay when due
(including, but not limited to, any mandatory prepayment required pursuant to Section
2.10) any principal of or interest on any Revolving Credit Loan, any
Reimbursement Obligation or any fee or any other amount payable hereunder or
under any other Financing Document;

Section 8.2                     Covenants Without Notice.  Any Credit Party shall fail to observe or
perform any covenant or agreement contained in Article 4, Section 6.1,
Section 6.5, Section 6.7, Section 6.10 or Article 7;

Section 8.3                     Other Covenants.  Any Credit Party shall fail to observe or
perform any covenant or agreement contained in this Agreement, other than those
referred to in Section 8.1 or Section 8.2 and, if capable of
being remedied, such failure shall remain unremedied for ten (10) days after
the earlier of (a) any Credit Party’s obtaining knowledge thereof, or (b)
written 

 54
 

notice thereof shall have been given to Borrower or any Guarantor by
any Lender, the Issuing Bank or the Administrative Agent;

Section 8.4                     Other Financing Document Obligations.  Default is made in the due observance or
performance by any Obligated Party of any of the covenants or agreements
contained in any Financing Document other than this Agreement, and such default
continues unremedied beyond the expiration of any applicable grace period which
may be expressly allowed under such Financing Document;

Section 8.5                     Representations.  Any representation, warranty or statement
made or deemed to be made by any Obligated Party or any of any other Obligated
Party’s officers herein or in any other Financing Document, or in any
certificate, request or other document furnished pursuant to or under this
Agreement or any other Financing Document, shall have been incorrect in any
material respect as of the date when made or deemed to be made;

Section 8.6                     Non-Payments of Other Indebtedness and Under
Hedging Agreements.  Any
Credit Party shall fail to make any payment or payments of principal of or
interest on any Indebtedness of such Credit Party (other than the Lender
Indebtedness) or under any Hedging Agreement in excess of $1,000,000 in the
aggregate when due (whether at stated maturity, by acceleration, on demand or
otherwise) after giving effect to any applicable grace period;

Section 8.7                     Defaults Under Hedging and Other Agreements.  Any Credit Party shall fail to observe or
perform any covenant or agreement contained in any Hedging Agreement or in
agreement(s) or instrument(s) relating to Indebtedness (other than Lender
Indebtedness) of any Credit Party of $1,000,000 or more in the aggregate within
any applicable grace, notice or cure period, or any other event shall occur, if
the effect of such failure or other event is to accelerate, or, with respect to
any Credit Party, to permit the holder of such Indebtedness or any other Person
to accelerate, the maturity of $1,000,000 or more in the aggregate of such
Indebtedness; or $1,000,000 or more in the aggregate of any such Indebtedness
shall be, or if as a result of such failure or other event may be, required to
be prepaid (other than prepayments resulting from excess cash flow) in whole or
in part prior to its stated maturity;

Section 8.8                     Bankruptcy.  Any Obligated Party shall commence a
voluntary case concerning itself under Title 11 of the United States Code
entitled “Bankruptcy” as now or hereafter in effect, or any successor thereto
(the “Bankruptcy Code”); or
an involuntary case is commenced against any Obligated Party and the petition
is not controverted within ten (10) days, or is not stayed or dismissed within
sixty (60) days, after commencement of the case; or a custodian (as defined in
the Bankruptcy Code) is appointed for, or takes charge of, all or any
substantial part of the property of any Obligated Party; or any Obligated Party
commences any other proceeding under any reorganization, arrangement,
adjustment of debt, relief of debtors, dissolution, insolvency or liquidation
or similar law of any jurisdiction whether now or hereafter in effect relating
to any Obligated Party or there is commenced against any Obligated Party any
such proceeding which remains unstayed or undismissed for a period of sixty
(60) days; or any Obligated Party is adjudicated insolvent or bankrupt; or any
order of relief or other order approving any such case or proceeding is
entered; or any Obligated Party makes a general assignment for the benefit of
creditors; or any Obligated Party shall fail to pay, or shall state in 

 55
 

writing that it is unable to pay, or shall be unable to pay, its debts
generally as they become due; or any Obligated Party shall by any act or
failure to act indicate its consent to, approval of or acquiescence in any of
the foregoing; or any corporate or other organizational action is taken by any
Obligated Party for the purpose of effecting any of the foregoing;

Section 8.9                     Money Judgment.  Final orders for the payment of money
involving in the aggregate at any time a liability (net of any insurance
proceeds or indemnity payments actually received in respect thereof prior to or
within sixty (60) days from the entry thereof, or to be received in respect
thereof in the event any appeal thereof shall be unsuccessful) of more than
$1,000,000 or that would otherwise have a Material Adverse Effect, shall be
rendered against any Credit Party and such judgment or order shall continue
unsatisfied in accordance with the terms of such judgment or order (in the case
of a money judgment) and in effect for a period of thirty (30) days during
which execution shall not be effectively stayed or deferred (whether by action
of a court, by agreement or otherwise);

Section 8.10                   Discontinuance of Business.  Any Credit Party shall cease to be
principally engaged in the businesses and operations in which such Credit Party
was principally engaged on the Closing Date;

Section 8.11                   Financing Documents.  Any Material Provision of any of the
Financing Documents after delivery thereof shall for any reason, except to the
extent permitted by the terms thereof, cease to be in full force and effect and
valid, binding and enforceable (except as enforceability may be limited as
stated in Section 5.3) in accordance with its terms, or, in the case of
any of the Security Instruments, cease to create a valid and perfected Lien of
the priority contemplated thereby on any of the collateral purported to be
covered thereby, or any Obligated Party shall so state in writing.  As used in this Section 8.11, “Material Provision” shall mean (a) with
respect to this Agreement, any material term, covenant, or agreement set forth
therein, and (b) with respect to any other Financing Document, any provision if
the validity and enforceability thereof is necessary for such Financing
Document to accomplish its stated, or clearly intended, purpose or otherwise
necessary in order for Administrative Agent or any Lender to enforce any
material right or remedy under any Financing Document; or

Section 8.12                   Material Adverse Change.  A Material Adverse Change shall occur.

ARTICLE 9

THE ADMINISTRATIVE AGENT

Section 9.1                     Appointment of Administrative Agent.  Each Lender (and each Secured Affiliate by
and through their affiliated Lenders) and the Issuing Bank hereby designates
JPMorgan Chase Bank as Administrative Agent to act as herein specified and as
specified in the other Financing Documents. 
Each Lender (and each Secured Affiliate by and through their affiliated
Lenders) and the Issuing Bank hereby irrevocably authorizes the Administrative
Agent to take such action on its behalf under the provisions of this Agreement
and the other Financing Documents and to exercise such powers and to perform
such duties hereunder and thereunder as are specifically delegated to or
required of the Administrative Agent by the terms hereof and thereof and such
other powers as are reasonably incidental thereto.  The Administrative  Agent may perform any of its duties hereunder
by or through its agents or employees.

 56
 

Section 9.2                     Limitation of Duties of Administrative Agent.  The Administrative Agent shall have no duties
or responsibilities except those expressly set forth with respect to the
Administrative Agent in this Agreement and as specified in the other Financing
Documents.  Neither the Administrative
Agent nor any of the officers, directors, employees or agents of the
Administrative Agent shall be liable for any action taken or omitted by it as
such hereunder or in connection herewith, unless caused by its or their gross
negligence or willful misconduct.  The
duties of the Administrative Agent shall be mechanical and administrative in
nature; the Administrative Agent shall not have by reason of this Agreement a
fiduciary relationship in respect of any Lender; and nothing in this Agreement,
expressed or implied, is intended to or shall be so construed as to impose upon
the Administrative Agent any obligations in respect of this Agreement except as
expressly set forth herein.

Section 9.3                     Lack of
Reliance on the Administrative Agent.

(a)           Independent
Investigation. 
Independently and without reliance upon the Administrative  Agent, each Lender, to the extent it deems
appropriate, has made and shall continue to make (i) its own independent
investigation of the financial condition and affairs of the Credit Parties in
connection with the taking or not taking of any action in connection herewith,
and (ii) its own appraisal of the creditworthiness of the Credit Parties, and,
except as expressly provided in this Agreement, and the other Financing
Documents, the Administrative Agent shall have no  responsibility, either initially or on a
continuing basis, to provide any Lender with any credit or other information
with respect thereto, whether coming into its possession before the
consummation of the transactions contemplated herein or at any time or times
thereafter.

(b)           Administrative
Agent Not Responsible. 
The Administrative Agent shall not be responsible to any Lender or the
Issuing Bank for any recitals, statements, information, representations or
warranties herein or in any document, certificate or other writing delivered in
connection herewith or for the execution, effectiveness, genuineness, validity,
enforceability, collectibility, priority or sufficiency of this Agreement, the
Letters of Credit or the other Financing Documents or the financial condition
of any Credit Party or be required to make any inquiry concerning either the
performance or observance of any of the terms, provisions or conditions of this
Agreement or the other Financing Documents, or the financial condition of any
Credit Party, or the existence or possible existence of any Default or Event of
Default.

Section 9.4                     Certain Rights of the Administrative Agent.  If the Administrative Agent shall request
instructions from the Required Lenders with respect to any act or action (including
the failure to act) in connection with this Agreement and the other Financing
Documents, the Administrative Agent shall be entitled to refrain from such act
or taking such action unless and until the Administrative Agent shall have
received instructions from the Required Lenders; and the Administrative Agent
shall not incur liability to any Person by reason of so refraining.  Without limiting the foregoing, no Lender
shall have any right of action whatsoever against the Administrative Agent as a
result of the Administrative Agent acting or refraining from acting under this
Agreement and the other Financing Documents in accordance with the instructions
of the Required Lenders, or, to the extent required by Section 10.2, all
of the Lenders.

 57
 

Section 9.5                     Reliance by Administrative Agent.  The Administrative Agent shall be entitled to
rely, and shall be fully protected in relying, upon any note, writing,
resolution, notice, statement, certificate, telex, teletype or telecopier
message, cablegram, radiogram, order or other documentary teletransmission or
telephone message believed by it to be genuine and correct and to have been
signed, sent or made by the proper Person. 
The Administrative Agent may consult with legal counsel (including
counsel for any Credit Party), independent public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be
taken by it in good faith in accordance with the advice of such counsel,
accountants or experts.

Section 9.6                     Indemnification of Administrative Agent.  To the extent the Administrative Agent is not
reimbursed and indemnified by the Credit Parties, each Lender will reimburse
and indemnify the Administrative Agent on a pro-rata basis, for and against any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses (including reasonable counsel fees and
disbursements) or disbursements of any kind or nature whatsoever which may be
imposed on, incurred by or asserted against the Administrative Agent in
performing its duties hereunder, in any way relating to or arising out of this
Agreement and by reason of the ordinary negligence of the Administrative Agent;
provided, that, no Lender shall be liable to the Administrative
Agent  for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from, as to the
Administrative Agent, the Administrative Agent’s gross negligence or willful
misconduct.

Section 9.7                     Administrative Agent in its Individual Capacity.  With respect to its obligations under this
Agreement and the Revolving Credit Loans made by it, the Administrative Agent
shall have the same rights and powers hereunder as any other Lender and may
exercise the same as though it were not performing the duties, if any,
specified herein; and the terms “Lenders,” “Required Lenders,” or any similar
terms shall, unless the context clearly otherwise indicates, include the
Administrative Agent in its individual capacity.  The Administrative Agent may accept deposits
from, lend money to, and generally engage in any kind of banking, trust,
financial advisory or other business with any Credit Party or any Affiliate of
any Credit Party as if it were not performing the duties, if any, specified
herein, and may accept fees and other consideration from any Credit Party for
services in connection with this Agreement and otherwise without having to
account for the same to the Lenders.

Section 9.8                     Successor
Administrative Agent.

(a)           Administrative
Agent Resignation.  The
Administrative Agent may resign at any time by giving written notice thereof to
the Lenders, the Issuing Bank and Borrower and may be removed at any time with
or without cause by the Required Lenders. 
Upon any such resignation or removal, the Required Lenders shall have
the right, upon five days’ notice to Borrower, to appoint a successor
Administrative Agent (to act in the same capacity as the resigning or removed
Administrative Agent), subject to the approval of Borrower, such approval not
to be unreasonably withheld.  If no
successor Administrative Agent shall have been so appointed by the Required
Lenders, and shall have accepted such appointment, within thirty (30) days
after the retiring Administrative Agent’s giving of notice of resignation or
the Required Lenders’ removal of the retiring Administrative Agent, then, upon
five days’ notice to Borrower, the

 58
 

retiring Administrative Agent may, on behalf of the
Lenders, appoint a successor Administrative Agent (subject to approval of
Borrower, such approval not to be unreasonably withheld), which shall be a bank
which maintains an office in the United States, or a commercial bank organized
under the laws of the United States of America or of any State thereof, or any
Affiliate of such bank, having a combined capital and surplus of at least
$250,000,000.

(b)           Rights,
Powers, etc.  Upon the
acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Administrative Agent, and the retiring Administrative Agent
shall be discharged from its duties and obligations under this Agreement.  After any retiring Administrative Agent’s
resignation or removal hereunder as Administrative Agent, the provisions of
this Article 9 shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was an Administrative Agent under this
Agreement.

ARTICLE 10

MISCELLANEOUS

Section 10.1                   Notices.  All notices, requests and other
communications to any party hereunder shall be in writing (including, telecopy
or similar teletransmission or writing) and shall be given to such party at its
address or telecopy number set forth on the signature pages hereof or such
other address or telecopy number as such party may hereafter specify by notice
to the Administrative Agent and Borrower. 
Each such notice, request or other communication shall be effective (a)
if given by mail, 72 hours after such communication is deposited in the mails
with first class postage prepaid, addressed as aforesaid, or (b) if given by
any other means (including, but not limited to, by air courier), when delivered
at the address specified in this Section 10.1; provided, that,
notices to the Administrative Agent shall not be effective until actually
received.  Any notice to be given to
Borrower or to all Credit Parties pursuant to this Agreement or any of the
other Financing Documents may be given to Borrower or to any other Credit
Party, and if given to Borrower or to any Credit Party in the manner set forth
in this Section 10.1, such notice shall be deemed to be effective notice
to all Credit Parties for purposes of this Agreement.

Section 10.2                   Amendments and Waivers.  Neither this Agreement nor any other
Financing Document, nor any terms hereof or thereof, may be amended,
supplemented or modified except in accordance with the provisions of this Section
10.2.  The Required Lenders may, or,
with the written consent of the Required Lenders, the Administrative Agent
shall, from time to time, (x) enter into with the Credit Parties, written
amendments, supplements or modifications hereto and to the other Financing
Documents to which they are a party for the purpose of adding any provisions to
this Agreement or to the other Financing Documents or changing in any manner
the rights or obligations of the Lenders or the Credit Parties hereunder or
thereunder or (y) waive at a Credit Party’s request, on such terms and
conditions as the Required Lenders or the Administrative Agent, as the case may
be, may specify in such instrument, any of the requirements of this Agreement
or the other Financing Documents to which such Credit Party is a party or any
Default and its consequences; provided, however, that no
such waiver and no such amendment, supplement or modification shall:

 59
 

(a)           reduce the amount or extend the
scheduled date of maturity of any Revolving Credit Loan or any Reimbursement
Obligation or of any scheduled installment thereof or reduce the stated rate of
any interest or fee payable hereunder or extend the scheduled date of any
payment thereof  or modify any provision
that provides for the ratable sharing by the Lenders of any payment or
prepayment of  Lender Indebtedness to
provide for a non-ratable sharing thereof or extend the expiration date of any
Lender’s Revolving Credit Commitment or amend, modify or waive any provision of
Section 2.19, in each case without the prior written consent of each
Lender directly affected thereby;

(b)           change the currency in which any
Revolving Credit Loan or Reimbursement Obligation is payable or amend, modify
or waive any provision of this Section 10.2 or reduce the percentage
specified in the definition of Required Lenders, or increase the amount of any
Lender’s Revolving Credit Commitment, in each case without the written consent
of all of the Lenders;

(c)           release any substantial part of the
Collateral, without the written consent of all of the Lenders, except as
expressly permitted hereby;

(d)           amend, modify or waive (i) any Letter
of Credit Liability without the written consent of the Issuing Bank or (ii) any
Letter of Credit without the consent of each Lender if such Letter of Credit,
after giving effect to such amendment, modification or waiver, would no longer
satisfy the requirements hereof if such Letter of Credit was being issued ab initio at such time, provided, that,
in all cases other than clauses (i) or (ii), only the consent of the Issuing
Bank shall be required to amend, modify or waive any Letter of Credit;

(e)           waive any default in the payment of
principal or interest hereunder without the written consent of all of the
Lenders; or

(f)            amend, modify or waive any provision
of Article 9 without the written consent of the Administrative Agent.

Any waiver and any amendment, supplement or
modification pursuant to this Section 10.2 shall apply to each of the
Lenders and shall be binding upon each Credit Party, the Lenders, and the
Administrative Agent.  In the case of any
waiver, the Credit Parties, the Lenders and the Administrative Agent shall be
restored to their former position and rights hereunder and under the other
Financing Documents, and any Default waived shall be deemed to be cured and not
continuing; but no such waiver shall extend to any subsequent or other Default,
or impair any right consequent thereon.

Section 10.3                   No Waiver; Remedies Cumulative.  No failure or delay on the part of any Credit
Party or the Administrative Agent or any Lender in exercising any right or
remedy under this Agreement or any other Financing Document to which it is a
party and no course of dealing between any Credit Party and the Administrative
Agent or any Lender shall operate as a waiver thereof, nor shall any single or
partial exercise of any right or remedy under this Agreement or any other
Financing 

 60
 

Document preclude any other or further exercise thereof or the exercise
of any other right or remedy under this Agreement or any other Financing
Document.  The rights and remedies herein
expressly provided are cumulative and not exclusive of any rights or remedies
which any Credit Party, the Administrative Agent or any Lender would otherwise
have.  No notice to or demand on any
Credit Party not required under this Agreement or any other Financing Document
in any case shall entitle any Credit Party to any other or further notice or
demand in similar or other circumstances or constitute a waiver of the rights
of the Administrative Agent or the Lenders to any other or further action in
any circumstances without notice or demand.

Section 10.4                   Payment of Expenses, Indemnities, etc.  Borrower and Parent agree to (and shall be
jointly and severally liable for):

(a)           Expenses.  Whether or not the transactions hereby contemplated
are consummated, pay all reasonable out-of-pocket costs and expenses of the
Administrative Agent and the Issuing Bank in the administration (both before
and after the execution hereof and including advice of counsel for the
Administrative Agent as to the rights and duties of the Administrative Agent
and the Lenders with respect thereto) of, and in connection with the
preparation, execution, syndication and delivery of, recording or filing of,
any amendment, waiver or consent under, preservation of rights under,
enforcement of, and, during the continuance of a Default, renegotiation or
restructuring of this Agreement and the other Financing Documents (including,
but not limited to, the reasonable fees and disbursements of counsel for the
Administrative Agent and, after Default, for any of the Lenders, in the case of
Lenders, incurred with respect to any such preservation of rights under,
enforcement of, renegotiation or restructuring of this Agreement and the other
Financing Documents) and promptly reimburse the Administrative Agent for all
amounts expended, advanced, or incurred by the Administrative Agent or the
Lenders to satisfy any obligation of any Credit Party under this Agreement or
any other Financing Document;

(b)           INDEMNIFICATION.  INDEMNIFY THE ADMINISTRATIVE AGENT, THE
ISSUING BANK AND EACH LENDER, AND EACH OF THEIR RESPECTIVE OFFICERS, DIRECTORS,
EMPLOYEES, REPRESENTATIVES, AGENTS AND AFFILIATES FROM, HOLD EACH OF THEM
HARMLESS AGAINST, AND PROMPTLY UPON DEMAND PAY OR REIMBURSE EACH OF THEM FOR,
ANY AND ALL ACTIONS, SUITS, PROCEEDINGS (INCLUDING ANY INVESTIGATIONS,
LITIGATION OR INQUIRIES), CLAIMS, COSTS, LOSSES, LIABILITIES, DAMAGES OR
EXPENSES OF ANY KIND OR NATURE WHATSOEVER WHICH MAY BE INCURRED BY OR ASSERTED
AGAINST OR INVOLVE ANY OF THEM (WHETHER OR NOT ANY OF THEM IS DESIGNATED A
PARTY THERETO) AS A RESULT OF, ARISING OUT OF OR IN ANY WAY RELATED TO (i) ANY
ACTUAL OR PROPOSED USE BY BORROWER OF THE PROCEEDS OF ANY OF THE REVOLVING
CREDIT LOANS; OR (ii) ANY OTHER ASPECT OF THIS AGREEMENT AND THE FINANCING
DOCUMENTS, INCLUDING, BUT NOT LIMITED TO, THE REASONABLE FEES AND DISBURSEMENTS
OF COUNSEL (INCLUDING ALLOCATED COSTS OF INTERNAL COUNSEL) AND ALL OTHER
EXPENSES INCURRED IN CONNECTION WITH INVESTIGATING, DEFENDING OR PREPARING TO DEFEND
ANY SUCH 

 61
 

ACTION, SUIT, PROCEEDING
(INCLUDING ANY INVESTIGATIONS, LITIGATION OR INQUIRIES) OR CLAIM, AND INCLUDING
ALL ACTIONS, SUITS, PROCEEDINGS (INCLUDING ANY INVESTIGATIONS, LITIGATION OR
INQUIRIES), CLAIMS, COSTS, LOSSES, LIABILITIES, DAMAGES OR EXPENSES ARISING BY
REASON OF ORDINARY NEGLIGENCE OF THE ADMINISTRATIVE AGENT, THE ISSUING BANK AND
EACH LENDER, AND EACH OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES,
REPRESENTATIVES, AGENTS AND AFFILIATES; PROVIDED, HOWEVER, THE
PROVISIONS OF THIS Section 10.4(b) SHALL NOT APPLY TO ANY ACTION, SUITS,
PROCEEDINGS (INCLUDING ANY INVESTIGATIONS, LITIGATION OR INQUIRIES), CLAIMS,
COSTS, LOSSES, LIABILITIES, DAMAGES, OR EXPENSES TO THE EXTENT, BUT ONLY TO THE
EXTENT, CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE PARTY
SEEKING INDEMNIFICATION; AND

(c)           ENVIRONMENTAL
INDEMNIFICATION.  INDEMNIFY
AND HOLD HARMLESS FROM TIME TO TIME THE ADMINISTRATIVE AGENT, THE ISSUING BANK,
EACH LENDER, AND THE RESPECTIVE DIRECTORS, OFFICERS, COUNSEL, EMPLOYEES,
AGENTS, AFFILIATES,  SUCCESSORS AND
ASSIGNS OF EACH OF THE FOREGOING FROM AND AGAINST ANY AND ALL LOSSES, CLAIMS,
COST RECOVERY ACTIONS, ADMINISTRATIVE ORDERS OR PROCEEDINGS, DAMAGES AND
LIABILITIES (WHICH RELATE TO OR ARISE AS A RESULT OF THE REVOLVING CREDIT
LOANS, THE LETTERS OF CREDIT OR ANY FINANCING DOCUMENT) TO WHICH ANY SUCH
PERSON MAY BECOME SUBJECT AND INCLUDING ANY AND ALL LOSSES, CLAIMS, COST
RECOVERY ACTIONS, ADMINISTRATIVE ORDERS OR PROCEEDINGS, DAMAGES AND LIABILITIES
(WHICH IN EACH CASE ARISE AS A RESULT OF OR IN CONNECTION WITH THE REVOLVING
CREDIT LOANS, THE LETTERS OF CREDIT OR ANY FINANCING DOCUMENT) ARISING BY
REASON OF THE ORDINARY NEGLIGENCE OF THE ADMINISTRATIVE AGENT, THE ISSUING BANK
AND THE LENDERS, AND THE RESPECTIVE DIRECTORS, OFFICERS, COUNSEL, EMPLOYEES,
AGENTS, AFFILIATES, SUCCESSORS AND ASSIGNS OF EACH OF THE FOREGOING (i) UNDER
ANY ENVIRONMENTAL LAW APPLICABLE TO ANY CREDIT PARTY OR ANY OF THEIR RESPECTIVE
PROPERTIES, INCLUDING, WITHOUT LIMITATION, THE TREATMENT OR DISPOSAL OF
HAZARDOUS SUBSTANCES ON ANY OF THEIR RESPECTIVE PROPERTIES, (ii) AS A RESULT OF
THE BREACH OR NON-COMPLIANCE BY ANY CREDIT PARTY OR ANY OF ITS SUBSIDIARIES
WITH ANY ENVIRONMENTAL LAW APPLICABLE TO SUCH CREDIT PARTY, (iii) DUE TO PAST
OWNERSHIP BY ANY CREDIT PARTY OR ANY OF ITS SUBSIDIARIES OF ANY OF THEIR
RESPECTIVE PROPERTIES OR PAST ACTIVITY ON ANY OF THEIR RESPECTIVE PROPERTIES
WHICH, THOUGH LAWFUL AND FULLY PERMISSIBLE AT THE TIME, COULD RESULT IN PRESENT
LIABILITY, (iv) ARISING FROM, DUE TO, OR AS A RESULT OF, THE PRESENCE, USE,
RELEASE, STORAGE, TREATMENT OR DISPOSAL OF HAZARDOUS

 62
 

SUBSTANCES ON OR AT ANY OF THE
PROPERTIES OWNED OR OPERATED BY ANY CREDIT PARTY, OR (v) ARISING FROM, DUE TO,
OR AS A RESULT OF, ANY OTHER ENVIRONMENTAL CONDITION OR ANY ENVIRONMENTAL LAW
IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER FINANCING DOCUMENT; PROVIDED,
HOWEVER, NO INDEMNITY OR HOLD HARMLESS SHALL BE AFFORDED UNDER THIS Section
10.4(c) (A) IN RESPECT OF ANY PROPERTY FOR ANY LOSSES, CLAIMS, COST
RECOVERY ACTIONS, ADMINISTRATIVE ORDERS OR PROCEEDINGS, DAMAGES AND LIABILITIES
ARISING PRIMARILY FROM THE ACTS OR OMISSIONS OF THE ADMINISTRATIVE AGENT OR ANY
LENDER OR THEIR SUCCESSORS OR ASSIGNS DURING THE PERIOD AFTER WHICH SUCH
PERSON, ITS SUCCESSORS OR ASSIGNS SHALL HAVE OBTAINED ACTUAL PHYSICAL
POSSESSION OF SUCH PROPERTY (WHETHER BY FORECLOSURE OR DEED IN LIEU OF
FORECLOSURE, AS MORTGAGEE-IN-POSSESSION OR OTHERWISE) AND (B) FOR ANY LOSSES,
CLAIMS, COST RECOVERY ACTIONS, ADMINISTRATIVE ORDERS OR PROCEEDINGS, DAMAGES
AND LIABILITIES RESULTING FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF
THE PARTY SEEKING INDEMNIFICATION; AND

(d)           ENVIRONMENTAL WAIVER.  WITHOUT LIMITING THE FOREGOING PROVISIONS,
EACH OF BORROWER AND PARENT HEREBY DOES WAIVE, RELEASE AND COVENANT NOT TO
BRING AGAINST ANY OF THE PERSONS INDEMNIFIED IN THIS SECTION 10.4 ANY
DEMAND, CLAIM, COST RECOVERY ACTION OR LAWSUIT THEY MAY NOW OR HEREAFTER HAVE
OR ACCRUE (WHICH ARISE AS A RESULT OF THE REVOLVING CREDIT LOANS, THE LETTERS
OF CREDIT OR ANY FINANCING DOCUMENT) ARISING FROM (i) ANY ENVIRONMENTAL LAW NOW
OR HEREAFTER ENACTED (INCLUDING THOSE APPLICABLE TO ANY CREDIT PARTY) UNLESS
THE ACTS OR OMISSIONS OF ANY SUCH INDEMNIFIED PERSON OR THEIR RESPECTIVE
SUCCESSORS AND ASSIGNS ARE THE PRIMARY CAUSE OF THE CIRCUMSTANCES GIVING RISE
TO SUCH DEMAND, CLAIM, COST RECOVERY ACTION OR LAWSUIT, (ii) THE PRESENCE, USE,
RELEASE, STORAGE, TREATMENT OR DISPOSAL OF HAZARDOUS SUBSTANCES ON OR AT ANY OF
THE PROPERTIES OWNED OR OPERATED BY ANY CREDIT PARTY UNLESS THE ACTS OR
OMISSIONS OF ANY SUCH INDEMNIFIED PERSON OR THEIR RESPECTIVE SUCCESSORS AND
ASSIGNS ARE THE PRIMARY CAUSE OF THE CIRCUMSTANCES GIVING RISE TO SUCH DEMAND,
CLAIM, COST RECOVERY ACTION OR LAWSUIT, OR (iii) THE BREACH OR NON-COMPLIANCE
BY ANY CREDIT PARTY WITH ANY ENVIRONMENTAL LAW OR ENVIRONMENTAL COVENANT
APPLICABLE TO ANY CREDIT PARTY, UNLESS THE ACTS OR OMISSIONS OF SUCH
INDEMNIFIED PERSON OR THEIR RESPECTIVE SUCCESSORS AND ASSIGNS ARE THE PRIMARY
CAUSE OF THE CIRCUMSTANCES GIVING RISE TO SUCH DEMAND, CLAIM, COST RECOVERY
ACTION OR LAWSUIT.

 63
 

If and to the extent that the obligations of Borrower
and Parent under this Section 10.4 are unenforceable for any reason,
Borrower and Parent hereby agree to make the maximum contribution to the
payment and satisfaction of such obligations which is permissible under
applicable law.  Borrower’s  and Parent’s obligations under this Section
10.4 shall survive any termination of this Agreement and the payment of the
Revolving Credit Loans.

Section 10.5                   Right of Setoff.  In addition to, and not in limitation of, all
rights of offset that any Lender or the Issuing Bank may have under applicable
law, each Lender or other holder of any other Lender Indebtedness, shall, upon
the occurrence of any Event of Default and at any time during the continuance
thereof and whether or not such Lender, the Issuing Bank or such holder has
made any demand or Borrower’s obligations are matured, have the right at any
time and from time to time, without notice to any Credit Party (any such notice
being expressly waived by each Credit Party a party hereto) to set-off and
apply any and all deposits (general or special, time or demand, provisional or
final) at any time held and other indebtedness at any time owing by any Lender
or the Issuing Bank to or for the credit or the account of any Credit Party
against any and all of the Lender Indebtedness owing to such Lender or the
Issuing Bank then outstanding, subject to the provisions of Section 2.19.

Section 10.6                   Benefit of Agreement.  This Agreement and the other Financing
Documents shall be binding upon and inure to the benefit of and be enforceable
by the respective successors and assigns of the parties hereto, provided,
that, neither Borrower nor Parent may assign or transfer any of its
interest hereunder or thereunder without the prior written consent of each
Lender.

Section 10.7                   Successors
and Assigns; Participations and Assignments.

(a)           The provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby (including any Affiliate of
the Issuing Bank that issues any Letter of Credit), except that no Credit Party
a party hereto may assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each Lender (and any
attempted assignment or transfer by any such Credit Party without such consent
shall be null and void).  Except as
otherwise expressly provided herein, nothing in this Agreement shall be
construed to confer upon any Person (other than the parties hereto, and their
respective successors and assigns permitted hereby) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

(b)           Any Lender may assign to one or more
assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Revolving Credit Commitments and the
Revolving Credit Loans at the time owing to it); provided, that,
(i) except in the case of an assignment to a Lender or a Lender Affiliate or an
assignment by a Lender in connection with the sale of all or substantially all
of the assets of such Lender, Borrower and the Administrative Agent (and, in
the case of an assignment of all or a portion of a Revolving Credit Commitment
or any Lender’s obligations in respect of its Revolving Credit Exposure, the
Issuing Bank which has outstanding a Letter of Credit) must give their prior
written consent to such assignment (which consent shall not be unreasonably
withheld), (ii) except in the case of an 

 64
 

assignment to a Lender or a Lender Affiliate or an
assignment of the entire remaining amount of the assigning Lender’s Revolving
Credit Commitment, the amount of the Revolving Credit Commitment of the
assigning Lender subject to each such assignment (determined as of the date the
Assignment and Acceptance with respect to such assignment is delivered to the
Administrative Agent) shall not be less than $5,000,000 unless each of Borrower
and the Administrative Agent otherwise consent, (iii) each partial assignment
shall be made as an assignment of a proportionate part of all the assigning
Lender’s rights and obligations under this Agreement, (iv) the parties to each
assignment shall execute and deliver to the Administrative Agent an Assignment
and Acceptance, together with a processing and recordation fee of $3,500,
except in the case of an assignment to a Lender Affiliate, in which case no
processing and recordation fee shall be payable, and (v) the assignee, if it
shall not be a Lender, shall deliver to the Administrative Agent an
Administrative Questionnaire in a form supplied by the Administrative Agent;
and provided  further  that any consent of Borrower
otherwise required under this Section 10.7(b) shall not be required if
an Event of Default has occurred and is continuing.  Notwithstanding the foregoing, at no time
shall the aggregate amount of the Administrative Agent’s share, as a Lender, of
the Revolving Credit Commitments be less than any other Lender’s share of the
Revolving Credit Commitments.  Subject to
acceptance and recording thereof pursuant to Section 10.7(d), from and
after the effective date specified in each Assignment and Acceptance, the
assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Acceptance, have the rights and obligations of
a Lender under this Agreement, and the assigning Lender thereunder shall, to
the extent of the interest assigned by such Assignment and Acceptance, be
released from its obligations under this Agreement (and, in the case of an
Assignment and Acceptance covering all of the assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a party hereto
but shall continue to be entitled to the benefits of Section 2.17, Section
2.19, Section 2.21 and Section 10.4).  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this Section
10.7(b) shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with Section
10.7(e).

(c)           The Administrative Agent, acting for
this purpose as an agent of Borrower, shall maintain at one of its offices in
Chicago, Illinois a copy of each Assignment and Acceptance delivered to it and
a register for the recordation of the names and addresses of the Lenders, and
the Revolving Credit Commitment of, and principal amount of the Revolving
Credit Loans and Reimbursement Obligations owing to, each Lender pursuant to
the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, and Borrower, the Administrative Agent, the Issuing Bank and the
Lenders may treat each Person whose name is recorded in the Register pursuant
to the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. 
The Register shall be available for inspection by Borrower, the Issuing
Bank and any Lender, at any reasonable time and from time to time upon reasonable
prior notice.

(d)           Upon its receipt of a duly completed
Assignment and Acceptance executed by an assigning Lender and an assignee, the
assignee’s completed 

 65
 

Administrative Questionnaire in a form supplied by the
Administrative Agent (unless the assignee shall already be a Lender hereunder),
the processing and recordation fee referred to in Section 10.7(b) and
any written consent to such assignment required by Section 10.7(b), the
Administrative Agent shall accept such Assignment and Acceptance and record the
information contained therein in the Register. 
No assignment shall be effective for purposes of this Agreement unless
it has been recorded in the Register as provided in this Section 10.7(d).

(e)           Any Lender may, without the consent
of any Credit Party, the Administrative Agent or the Issuing Bank, sell
participations to one or more banks or other entities (a “Participant”) in all or a portion of
such Lender’s rights and obligations under this Agreement (including all or a
portion of its Revolving Credit Commitment and the Revolving Credit Loans and
Reimbursement Obligations owing to it); provided  that (i) such
Lender’s obligations under this Agreement shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) each Credit Party, the Administrative
Agent, the Issuing Bank and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement.  Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision
of this Agreement; provided, that, such agreement or instrument
may provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver described in Section 10.2(a)
or Section 10.2(b) that affects such Participant.  Subject to this Section 10.7(e), each
Credit Party a party hereto agrees that each Participant shall be entitled to
the benefits of Section 2.16, Section 2.18 and Section 2.20
to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to Section 10.7(b). 
To the extent permitted by law, each Participant also shall be entitled
to the benefits of Section 10.5 as though it were a Lender, provided
such Participant agrees to be subject to Section 2.19 as though it were
a Lender.

(f)            A Participant shall not be entitled
to receive any greater payment under Section 2.18 or Section 2.20
than the applicable Lender would have been entitled to receive with respect to
the participation sold to such Participant, unless the sale of the
participation to such Participant is made with Borrower’s prior written
consent.  A Participant that would be a
Foreign Lender if it were a Lender shall not be entitled to the benefits of Section
2.20 unless Borrower is notified of the participation sold to such
Participant and such Participant agrees, for the benefit of Borrower, to comply
with Section 2.20(f) as though it were a Lender.

(g)           Any Lender may at any time pledge or
assign a security interest in all or any portion of its rights under this
Agreement to secure obligations of such Lender, including any pledge or
assignment to secure obligations to a Federal Reserve Bank, and this Section
10.7 shall not apply to any such pledge or assignment of a security
interest; provided, that, no such pledge or assignment of a
security interest shall release a Lender from any of its obligations hereunder
or substitute any such pledgee or assignee for such Lender as a party hereto.

 66

(h)           Each Credit Party a party hereto
authorizes each Lender to disclose to any participant or assignee (each, a “Transferee”) and any prospective
Transferee any and all information in such Lender’s possession concerning such
Credit Party and their Affiliates which has been delivered to such Lender by or
on behalf of such Credit Party pursuant to this Agreement or which has been
delivered to such Lender by or on behalf of such Credit Party in connection
with such Lender’s credit evaluation of the Credit Parties and their Affiliates
prior to becoming a party to this Agreement. 
No assignment or participation made or purported to be made to any
Transferee shall be effective without the prior written consent of Borrower if
it would require it to make any filing with any Governmental Authority or
qualify any Revolving Credit Loan under the laws of any jurisdiction, and
Borrower shall be entitled to request and receive such information and
assurances as it may reasonably request from any Lender or any Transferee to
determine whether any such filing or qualification is required or whether any
assignment or participation is otherwise in accordance with applicable law.

Section 10.8                   Governing
Law; Submission to Jurisdiction; etc.

(a)           Governing
Law.  This Agreement and the
rights and obligations of the parties hereunder shall be construed in
accordance with and be governed by the laws of the State of New York and, to
the extent controlling, laws of the United States of America.

(b)           Submission
to Jurisdiction.  Any
legal action or proceeding with respect to this Agreement or the other
Financing Documents may be brought in the courts of the State of New York or of
the United States of America for the Southern District of New York, and, by
execution and delivery of this Agreement, each Credit Party a party hereto
hereby accepts for itself and in respect of its Property, generally and
unconditionally, the non-exclusive jurisdiction of the aforesaid courts.  Each Credit Party a party hereto hereby
irrevocably waives any objection, including, but not limited to, any objection
to the laying of venue or based on the grounds of Forum Non Conveniens, which
it may now or hereafter have to the bringing of any such action or proceeding
in such respective jurisdictions.

(c)           Waiver
of Jury Trial.  To the
maximum extent allowed by applicable law, each Credit Party a party hereto, the
Administrative Agent, the Issuing Bank and the Lenders (i) irrevocably and
unconditionally waive trial by jury in any legal action or proceeding relating
to any Financing Document and for any counterclaim therein; (ii) irrevocably
waive any right it may have to claim or recover in any such litigation any
special, exemplary, punitive or consequential damages, or damages other than,
or in addition to, actual damages; (iii) certify that no party hereto nor any
representative or counsel for any party hereto has represented, expressly or
otherwise, or implied that such party would not, in the event of litigation,
seek to enforce the foregoing waivers; and (iv) acknowledge that it has been
induced to enter into this Agreement, the other Financing Documents and the
transactions contemplated hereby and thereby based upon, among other things,
the mutual waivers and certifications contained in this Section 10.8.

 67
 

(d)           Service
of Process.  Nothing
herein shall affect the right of the Administrative Agent or any Lender to
serve process in any other manner permitted by law or to commence legal
proceedings or otherwise proceed against any Credit Party in any other
jurisdiction.

Section 10.9                   Independent Nature of Lenders’ Rights.  The amounts payable at any time hereunder to
each Lender shall be a separate and independent debt, and each Lender shall be
entitled to protect and enforce its rights arising out of this Agreement, and
it shall not be necessary for any other Lender to be joined as an additional
party in any proceeding for such purpose.

Section 10.10                 Invalidity.  In the event that any one or more of the
provisions contained in this Agreement or in any other Financing Document
shall, for any reason, be held invalid, illegal or unenforceable in any
respect, (a) each Credit Party a party hereto agrees that such invalidity,
illegality or unenforceability shall not affect any other provision of this
Agreement or any other Financing Document and (b) each Credit Party a party
hereto and the Administrative Agent (acting on behalf and at the direction of
the Lenders) will negotiate in good faith to amend such provision so as to be
legal, valid, and enforceable.

Section 10.11                 Renewal, Extension or Rearrangement.  All provisions of this Agreement and of any
other Financing Documents relating to Lender Indebtedness shall apply with
equal force and effect to each and all promissory notes hereafter executed
which in whole or in part represent a renewal, extension for any period,
increase or rearrangement of any part of the Lender Indebtedness.

Section 10.12                 Interest.  It is the intention of the parties hereto to
conform strictly to usury laws applicable to the Administrative Agent, the
Issuing Bank and the Lenders (collectively, the “Financing Parties”). 
Accordingly, if the transactions contemplated hereby would be usurious
as to any Financing Party under laws applicable to it, then, notwithstanding
anything to the contrary in this Agreement or in any other Financing Document
or agreement entered into in connection with the transactions contemplated
hereunder or as security for any Revolving Credit Loan, it is agreed as
follows:  (a) the aggregate of all
consideration which constitutes interest under law applicable to any Financing
Party that is contracted for, taken, reserved, charged or received by such
Financing Party under this Agreement or under any of such other Financing
Documents or agreements or otherwise in connection with the transactions
contemplated hereunder shall under no circumstances exceed the maximum amount
allowed by such applicable law, (b) in the event that the maturity of any
Revolving Credit Loans is accelerated for any reason, or in the event of any
required or permitted prepayment, then such consideration that constitutes
interest under law applicable to any Financing Party may never include more
than the maximum amount allowed by such applicable law, and (c) excess
interest, if any, provided for in this Agreement or otherwise in connection
with the transactions contemplated hereunder shall be canceled automatically by
such Financing Party and, if theretofore paid, shall be credited by such
Financing Party on the principal amount of Borrower’s Indebtedness to such
Financing Party (or, to the extent that the principal amount of Borrower’s
Indebtedness to such Financing Party shall have been or would thereby be paid
in full, refunded by such Financing Party to Borrower).  The right to accelerate the maturity of any
Revolving Credit Loans does not include the right to accelerate any interest
which has not

 68
 

otherwise accrued on the date of such acceleration, and the Financing
Parties do not intend to collect any unearned interest in the event of
acceleration.  All sums paid or agreed to
be paid to the Financing Parties for the use, forbearance or detention of sums
included in the Lender Indebtedness shall, to the extent permitted by law
applicable to such Financing Party, be amortized, prorated, allocated and
spread throughout the full term of any Revolving Credit Loans until payment in
full so that the rate or amount of interest on account of the Lender
Indebtedness does not exceed the applicable usury ceiling, if any.  As used in this Section 10.12, the
terms “applicable law” or “laws applicable to any Financing Party” shall mean
the law of any jurisdiction whose laws may be mandatorily applicable
notwithstanding other provisions of this Agreement, or law of the United States
of America applicable to any Financing Party and the transactions contemplated
hereunder which would permit such Financing Party to contract for, charge,
take, reserve or receive a greater amount of interest than under such
jurisdiction’s law.

Section 10.13                 Entire Agreement.  This Agreement and the other Financing
Documents embody the entire agreement and understanding between or among the
Administrative Agent, the Issuing Bank or the Lenders and the other respective
parties hereto and thereto and supersede all prior agreements and
understandings between or among such parties relating to the subject matter
hereof and thereof and may not be contradicted by evidence of prior,
contemporaneous agreements of the parties. 
There are no unwritten oral agreements between or among the parties.

Section 10.14                 Attachments.  The exhibits, schedules and annexes attached
to this Agreement are incorporated herein and shall be considered a part of
this Agreement for the purposes stated herein, except that in the event of any
conflict between any of the provisions of such exhibits and the provisions of
this Agreement, the provisions of this Agreement shall prevail.

Section 10.15                 Counterparts.  This Agreement may be executed in any number
of counterparts and by the different parties hereto on separate counterparts,
each of which when so executed and delivered shall be an original but all of
which shall together constitute one and the same instrument.

Section 10.16                 Survival of Indemnities.  The obligations of each Credit Party a party
hereto under Section 2.16 , Section 2.18, Section 2.20 and
Section 10.4 shall survive the payment in full of the Revolving Credit
Loans and the Letter of Credit Liabilities.

Section 10.17                 Headings Descriptive.  The headings of the several sections and
subsections of this Agreement, and the table of contents, are inserted for
convenience only and shall not in any way affect the meaning or construction of
any provision of this Agreement.

Section 10.18                 Satisfaction Requirement.  If any agreement, certificate, instrument or
other writing, or any action taken or to be taken, is by the terms of this
Agreement required to be satisfactory to any party, the determination of such
satisfaction shall be made by such party in its sole and exclusive judgment
exercised reasonably and in good faith.

Section 10.19                 Exculpation Provisions.  Each of the parties hereto specifically
agrees that it has a duty to read this Agreement and the other Financing
Documents and agrees that it is

 69
 

charged with notice and knowledge of the terms of this Agreement and
the other Financing Documents; that it has in fact read this Agreement and is
fully informed and has full notice and knowledge of the terms, conditions and
effects of this Agreement; that it has been represented by legal counsel of its
choice throughout the negotiations preceding its execution of this Agreement
and the other Financing Documents; and has received the advice of its attorneys
in entering into this Agreement and the other Financing Documents; and that it
recognizes that certain of the terms of this Agreement and the other Financing
Documents result in one party assuming the liability inherent in some aspects
of the transactions contemplated hereunder and relieving the other party of its
responsibility for such liability.  Each
party hereto agrees and covenants that it will not contest the validity or
enforceability of any exculpatory provision of this Agreement and the other
Financing Documents on the basis that the party had no notice or knowledge of
such provision or that the provision is not “conspicuous.”

Section 10.20                 Secured Affiliate.  For purposes of this Agreement and all other
Financing Documents (other than applicable Hedging Agreements or Cash
Management Agreements), if a Secured Affiliate of a Lender has entered into one
or more Hedging Agreements or Cash Management Agreements with any Credit Party,
then to the extent that such Secured Affiliate has rights against or is owed
obligations by (or if the affiliated Lender, rather than the Secured Affiliate,
were the counter-party to the applicable Hedging Agreement or Cash Management
Agreement, such rights or obligations that such Lender has) the Credit Parties
hereunder or under any other Financing Document (other than applicable Hedging
Agreements or Cash Management Agreements), such affiliated Lender shall be the
agent and attorney-in-fact for such Secured Affiliate with regard to any such
rights and obligations, or deemed rights and obligations, as if such Lender
were the counter-party to the applicable Hedging Agreement or Cash Management
Agreement including, but not limited to, the following:  (a) all distributions or payments in respect
of Collateral owing to such Secured Affiliate shall be distributed or paid to
such Lender, (b) all representations, statements or disclaimers made herein or
in any Financing Document by or to such Lender shall be deemed to have been
made by or to such Secured Affiliate, and (c) all obligations incurred by such
Lender that would have been incurred by the Secured Affiliate if it were a
party hereto (including, but not limited to, obligations under Section 9.6)
shall be the obligations of such Lender, and such Lender, as the agent and
attorney-in-fact of its Secured Affiliate, will make any and all payments owing
to the Administrative Agent with respect to such obligations or deemed
obligations of its Secured Affiliate. 
Each such Lender represents, 
warrants and covenants to and with the Administrative Agent that such
Lender has, or at all applicable times will have, full power and authority to
act as agent and attorney-in-fact for its Secured Affiliate.  Under no circumstance shall any Secured
Affiliate have any voting rights hereunder and the voting rights of any
affiliated Lender shall not be increased by virtue of the obligations owing to
any such Secured Affiliate.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

 70

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

	
  BORROWER:

  	
   

  	
  AVENTINE RENEWABLE ENERGY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: /s/ David A. Riber

  
	
   

  	
   

  	
  Name: David A. Riber

  
	
   

  	
   

  	
  Title: Director of Finance

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  	
  1300 South Second Street

  
	
   

  	
   

  	
   

  	
   

  	
  Pekin, Illinois 61554

  
	
   

  	
   

  	
   

  	
   

  	
  Attention: _______________________________

  
	
   

  	
   

  	
   

  	
   

  	
  Telephone: 309-347-9385

  
	
   

  	
   

  	
   

  	
   

  	
  Telecopy: _______________________________

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PARENT:

  	
   

  	
  AVENTINE RENEWABLE ENERGY, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: /s/ David A. Riber

  
	
   

  	
   

  	
  Name: David A. Riber

  
	
   

  	
   

  	
  Title: Director of Finance

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  	
  1300 South Second Street

  
	
   

  	
   

  	
   

  	
   

  	
  Pekin, Illinois 61554

  
	
   

  	
   

  	
   

  	
   

  	
  Attention: _______________________________

  
	
   

  	
   

  	
   

  	
   

  	
  Telephone: 309-347-9385

  
	
   

  	
   

  	
   

  	
   

  	
  Telecopy: _______________________________

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADMINISTRATIVE
  AGENT, ISSUING

  	
   

  	
   

  	
   

  	
   

  
	
  BANK
  AND THE LENDERS:

  	
   

  	
  JPMORGAN
  CHASE BANK, N.A., individually as a Lender, as the Issuing
  Bank and as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: /s/ Nathan L. Bloch

  
	
   

  	
   

  	
  Name: Nathan L. Bloch

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  	
  10 South Dearborn, Suite IL1-0173

  
	
   

  	
   

  	
   

  	
   

  	
  Chicago, Illinois 60670

  
	
   

  	
   

  	
   

  	
   

  	
  Attention: Nathan Bloch

  
	
   

  	
   

  	
   

  	
   

  	
  Telephone: (312) 325-3094

  
	
   

  	
   

  	
   

  	
   

  	
  Telecopy: (312) 325-3077

  

 

 

 67

ANNEX
I

 

	
  Lender

  	
   

  	
  Revolving
  Credit

  Commitment

  	
   

  	
  Revolving
  Credit Percentage

  
	
  JPMorgan Chase Bank, N.A.

  	
   

  	
  $30,000,000

  	
   

  	
  100%

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $30,000,000

  	
   

  	
  100%

  

 

 

 Annex I-1

EXHIBIT A

FORM OF BORROWING REQUEST

 

 A-1

EXHIBIT B

FORM OF REQUEST FOR LETTERS OF CREDIT

 

 B-1

EXHIBIT C

FORM OF ASSIGNMENT AND ACCEPTANCE

 

 C-1

EXHIBIT D

FORM OF
GUARANTY AND SECURITY AGREEMENT

 

 D-1

SCHEDULE
5.7

INVESTMENTS
AND GUARANTIES

	
  Investments as of the Closing
  Date

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Money Market Funds

  	
   

  	
   

  	
   

  
	
  JP Morgan Chase
  Prime Money Market Fund

  	
   

  	
  $

  	
  61,016,589

  	
   

  
	
  JP Morgan Chase
  Tax Free Money Market Fund

  	
   

  	
  $

  	
  4,547,056

  	
   

  
	
  Total Book Value
  of Money Market Investments

  	
   

  	
  $

  	
  65,563,645

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Municipal Bonds

  	
   

  	
   

  	
   

  
	
  Jefferson
  County, Alabama

  	
   

  	
  $

  	
  8,825,000

  	
   

  
	
  Arizona Student
  Loan Assn

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
  Ohio Air Quality
  Development Assn

  	
   

  	
  $

  	
  1,775,000

  	
   

  
	
  Jefferson
  County, Alabama Sewer Bonds

  	
   

  	
  $

  	
  4,650,000

  	
   

  
	
  All Student Loan
  Corp

  	
   

  	
  $

  	
  14,200,000

  	
   

  
	
  Arizona Student
  Loan Assn

  	
   

  	
  $

  	
  6,700,000

  	
   

  
	
  Pennsylvania
  Higher Education

  	
   

  	
  $

  	
  12,100,000

  	
   

  
	
  Louisville Gas
  & Electric Bonds

  	
   

  	
  $

  	
  6,800,000

  	
   

  
	
  Educational
  Funding of the South

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  Educational
  Funding of the South

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  New York
  Consolidated Edison

  	
   

  	
  $

  	
  7,000,000

  	
   

  
	
  Florida Power
  Corp.

  	
   

  	
  $

  	
  7,000,000

  	
   

  
	
  Methodist
  Healthcare Bonds

  	
   

  	
  $

  	
  7,000,000

  	
   

  
	
  Total Book Value
  of Municipal Bond Investments

  	
   

  	
  $

  	
  97,050,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Investments in Ethanol
  Marketing Alliance Partners

  	
   

  	
   

  	
   

  
	
  Heartland Grain
  Fuels

  	
   

  	
  $

  	
  0

  	
   

  
	
  Ace Ethanol, LLC

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  Granite Falls
  Ethanol

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  Total Book Value of
  Investments in Alliance Partners

  	
   

  	
  $

  	
  1,000,000

  	
   

  

 

Other Investments

Fluid Technologies                                                                                 This
investment has been written down to $0.

Guaranties of Indebtedness of
other Persons

Both Aventine Renewable Energy, Inc. and Aventine
Renewable Energy, LLC are guarantors of the outstanding Senior Secured Floating
Rate Notes due 2011 issued by Aventine Renewable Energy Holdings, Inc.  The outstanding balance of these notes totaled
$5,000,000 as of the Closing Date.

 

 Schedule 5.7-1

SCHEDULE
5.22

EMPLOYEE
MATTERS

Aventine Renewable Energy, Inc. is party to a
collective bargaining agreement with its ethanol plant employees in Pekin,
Illinois who are represented by the Paper Allied/Industrial Chemical and Energy
Workers International Union Local 6-662. 
The current bargaining agreement expires in June 2009.

 

 Schedule 5.22-1

SCHEDULE
7.2

EXISTING
INDEBTEDNESS

Guaranties

Both Aventine Renewable Energy, Inc. and Aventine
Renewable Energy, LLC are guarantors of the outstanding Senior Secured Floating
Rate Notes due 2011 issued by Aventine Renewable Energy Holdings, Inc.  The outstanding balance of these notes
totaled $5,000,000 as of the Closing Date.

 

 Schedule 7.2-1

SCHEDULE
7.3

LIENS

None.

 

 Schedule 7.31

SCHEDULE
7.10

AFFILIATE
DOCUMENTS

None.

 

 Schedule 7.10-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}]]