Document:

exv10w1

Exhibit 10.1

Execution Version

 

 

RESTRUCTURING AGREEMENT

dated as of June 16, 2010

among

ABE SOUTH DAKOTA, LLC,

as Borrower,

ADVANCED BIOENERGY, LLC,

ABE HEARTLAND, LLC,

DAKOTA FUELS, INC.,

THE LENDERS REFERRED TO HEREIN,

WESTLB AG, NEW YORK BRANCH,

as Administrative Agent for the Lenders,

WESTLB AG, NEW YORK BRANCH,

as Collateral Agent for the Senior Secured Parties,

THE SUBORDINATED BONDHOLDER REFERRED TO HEREIN,

WELLS FARGO BANK, NATIONAL ASSOCIATION, AS TRUSTEE OF THE

BROWN COUNTY, SOUTH DAKOTA SUBORDINATE SOLID WASTE

FACILITIES REVENUE BONDS (HEARTLAND GRAIN FUELS, L.P.,

ETHANOL PLANT PROJECT) SERIES 2007A,

as Bond Trustee,

and

BROWN COUNTY, SOUTH DAKOTA,

as Issuer

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page	 
	ARTICLE I DEFINITIONS AND INTERPRETATION
	 	 	3	 
	Section 1.01 Defined Terms
	 	 	3	 
	Section 1.02 Principles of Interpretation
	 	 	10	 
	Section 1.03 Accounting and Financial Determinations
	 	 	11	 
	 
	 	 	 	 
	ARTICLE II DEBT CANCELLATION AND RESTRUCTURING
	 	 	11	 
	Section 2.01 Payments by ABE
	 	 	11	 
	Section 2.02 Payments by the Borrower
	 	 	11	 
	Section 2.03 Restructuring of Senior Debt
	 	 	12	 
	Section 2.04 Cancellation of Subordinated Debt
	 	 	12	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES
	 	 	15	 
	Section 3.01 Representations and Warranties of the Debtor Parties
	 	 	15	 
	 
	 	 	 	 
	ARTICLE IV CONDITIONS PRECEDENT AND CONDITIONS IMMEDIATELY SUBSEQUENT
	 	 	16	 
	Section 4.01 Conditions Precedent to the Effective Date
	 	 	16	 
	Section 4.02 Conditions Immediately Subsequent to the Effective Date
	 	 	19	 
	 
	 	 	 	 
	ARTICLE V MISCELLANEOUS PROVISIONS
	 	 	20	 
	Section 5.01 Termination of Agreements; Revival of Intercreditor Agreement
	 	 	20	 
	Section 5.02 Remedies; Election of Remedies
	 	 	20	 
	Section 5.03 Counterparts; Effectiveness
	 	 	20	 
	Section 5.04 GOVERNING LAW; JURISDICTION
	 	 	21	 
	Section 5.05 No Waiver; Cumulative Remedies
	 	 	21	 
	Section 5.06 Notices
	 	 	22	 
	Section 5.07 Successors and Assigns
	 	 	22	 
	Section 5.08 Amendments and Waivers
	 	 	22	 
	Section 5.09 Severability
	 	 	22	 
	Section 5.10 Survival
	 	 	22	 
	Section 5.11 Waiver of Consequential Damages, Etc
	 	 	22	 
	Section 5.12 Agreement for the Parties’ Benefit Only
	 	 	23	 
	Section 5.13 Time of Essence
	 	 	23	 
	Section 5.14 Further Assurances
	 	 	23	 

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	SCHEDULES
	 	 
	 
	 	 
	Schedule 5.06

	 	Notice Information
	 
	 	 
	EXHIBITS
	 	 
	 
	 	 
	Exhibit A

	 	Fees and Expenses of Subordinated Claimholders

ii

 

     This RESTRUCTURING AGREEMENT (this “Agreement”), dated as of June 16, 2010, is by and
among ABE SOUTH DAKOTA, LLC (f/k/a Heartland Grain Fuels, L.P.), a Delaware limited liability
company (the “Borrower”), DAKOTA FUELS, INC., a Delaware corporation (“Dakota
Fuels”), ABE HEARTLAND, LLC, a Delaware limited liability company (“ABE Heartland”),
ADVANCED BIOENERGY, LLC, a Delaware limited liability company (“ABE”), each of the lenders
party to the Original Senior Credit Agreement referred to below (the “Lenders”), WESTLB AG,
NEW YORK BRANCH, as administrative agent for such lenders (the “Administrative Agent”),
WESTLB AG, NEW YORK BRANCH, as collateral agent for the Senior Secured Parties referred to below
(the “Collateral Agent”), BROWN COUNTY, SOUTH DAKOTA (the “Issuer”), as issuer of
the Subordinate Solid Waste Facilities Revenue Bonds (Heartland Grain Fuels, L.P. Ethanol Plant
Project) Series 2007A (the “Subordinated Bonds”), WELLS FARGO BANK, NATIONAL ASSOCIATION,
in its capacity as trustee of the Subordinated Bonds (the “Bond Trustee”) and Oppenheimer
Rochester National Municipals, as sole holder of the Subordinated Bonds (the “Subordinated
Bondholder” and, together with the Bond Trustee and the Issuer, the “Subordinated
Claimholders”).

RECITALS

     WHEREAS, pursuant to the Senior Credit Agreement, dated as of October 1, 2007 (as amended
prior to the Effective Date (as defined below), the “Original Senior Credit Agreement”),
among the Borrower, the Lenders, the Administrative Agent, the Collateral Agent for the senior
secured parties referred to therein (the “Senior Secured Parties”) and WestLB AG, New York
Branch, as issuing bank with respect to the letters of credit referred to therein, the Lenders made
certain construction, term and working capital loans (the “Senior Loans”) to the Borrower
to, among other things, (a) refinance existing indebtedness of the Borrower with respect to the
operating ethanol plant of the Borrower located in Huron, South Dakota, producing approximately
thirty (30) million gallons-per-year of denatured ethanol, together with distillers grains, and the
operating ethanol plant of the Borrower located in Aberdeen, South Dakota, producing approximately
nine (9) million gallons-per-year of denatured ethanol, together with distillers grains, (b)
finance the ownership, development, engineering, construction, testing and operation of an
expansion ethanol plant located at the same site in Aberdeen, South Dakota, which plant has been
constructed and is producing approximately forty (40) million gallons-per-year of denatured
ethanol, together with distillers grains (the plants described in items (a) and (b) above,
collectively, the “Plants”) and (c) provide for the Borrower’s working capital needs, and
pursuant to the Security Documents (as defined in the Original Senior Credit Agreement) the
Collateral Agent was granted certain first priority security interests in the assets, real property
and equity interests of the Borrower;

 

 

     WHEREAS, certain Lenders or Affiliates thereof, as Interest Rate Protection Providers (as
defined in the Original Senior Credit Agreement), entered into Interest Rate Protection Agreements
(as defined in the Original Senior Credit Agreement) with the Borrower;

     WHEREAS, (a) pursuant to the Bond Trust Indenture, dated as of October 1, 2007 (the “Bond
Indenture”) between the Issuer and the Bond Trustee, the Issuer issued and delivered the
Subordinated Bonds for the purpose of financing certain improvements to the Plants, (b) pursuant to
the Loan Agreement, dated as of October 1, 2007, between the Borrower and the Issuer (the
“Subordinated Loan Agreement”), the Issuer loaned proceeds of the Subordinated Bonds to the
Borrower for that purpose, and pursuant to the Bond Indenture, collaterally assigned all of its
rights under the Subordinated Loan Agreement to the Bond Trustee, (c) pursuant to certain mortgages
and other security documents, the Bond Trustee was granted a second priority security interest in
the assets, real property and equity interests of the Borrower and a first priority security
interest in the equity of ABE Heartland and (d) pursuant to the Intercreditor Agreement, dated as
of October 1, 2007 (the “Intercreditor Agreement”), among the Borrower, ABE, Dakota Fuels,
ABE Heartland, the Collateral Agent and the Bond Trustee, the claims of the Bond Trustee and the
other Second Lien Claimholders (as defined therein) were subordinated to the claims of the Lenders
and the other Senior Secured Parties;

     WHEREAS, ABE owns all of the economic and (except for the voting rights of the Independent
Member) voting interests of ABE Heartland and, prior to the conversion of the Borrower from a
limited partnership to a limited liability company, ABE Heartland was the sole limited partner of
the Borrower and Dakota Fuels was the sole general partner of the Borrower;

     WHEREAS, in October and November of 2008, certain Events of Default (as defined in the
Original Senior Credit Agreement) occurred under the Original Senior Credit Agreement as a result
of the failure of the Borrower to make certain interest and principal payments on the Senior Loans,
and certain payments of Swap Termination Value under the Interest Rate Protection Agreements (as
each such term is defined in the Original Senior Credit Agreement), and the Borrower has also
defaulted on certain of its obligations under the Subordinated Loan Agreement;

     WHEREAS, following such Events of Default, the Interest Rate Protection Agreements were
terminated;

     WHEREAS, pursuant to a Forbearance Agreement, dated on or about January 9, 2009 (the
“Forbearance Agreement”), among the Borrower, Dakota Fuels and ABE Heartland, as the loan
parties, and the Lenders (as Lenders and, in certain instances, as Interest Rate Protection
Providers, as each such term is defined in the Original Senior Credit Agreement) party thereto, the
Administrative Agent and the Collateral Agent, as

2

 

the forbearing parties, such forbearing parties agreed to forbear from exercising certain
rights and remedies under the Original Senior Credit Agreement and the other Financing Documents
(as defined in the Original Senior Credit Agreement) for a period ending no later than March 31,
2009 (the “Forbearance Period”);

     WHEREAS, as of the Effective Date, the Borrower has converted from a Delaware limited
partnership to a Delaware limited liability company, and ABE Heartland owns all of the economic and
(except for the voting interests of the Independent Member of the Borrower) voting interests of the
Borrower;

     WHEREAS, immediately prior to the Effective Date, (a) Term Loans in an aggregate principal
amount of eighty-seven million nine hundred seventy-nine thousand Dollars ($87,979,000) and Working
Capital Loans in an aggregate principal amount of seven million one hundred thousand Dollars
($7,100,000) are outstanding under the Original Senior Credit Agreement and (b) Swap Termination
Value (as defined in the Original Senior Credit Agreement) in an aggregate amount of four million
two hundred twelve thousand five hundred fifty Dollars ($4,212,550) is outstanding under the
Interest Rate Protection Agreements (such obligations collectively, the “Outstanding Senior
Principal Obligations”);

     WHEREAS, in lieu of foreclosure, the Lenders and the Borrower desire to restructure the
obligations under the Original Senior Credit Agreement in the manner described herein;

     WHEREAS, the Subordinated Claimholders are willing to cancel all of the obligations of the
Debtor Parties under the Subordinated Loan Agreement and the other financing documents related
thereto subject to the terms and conditions hereof;

     NOW, THEREFORE, in consideration of the promises contained herein, and for other good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, and intending to
be legally bound, the parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION

     Section 1.01 Defined Terms. The following terms when used in this Agreement,
including its preamble and recitals, shall, except where the context otherwise requires, have the
following meanings:

     “ABE” has the meaning given in the preamble.

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     “ABE Equity Contribution” has the meaning given in Section 2.01.

     “ABE Equity Pledge Agreement” means the Pledge and Security Agreement, dated as of
October 1, 2007, among ABE as pledgor, ABE Heartland and the Bond Trustee.

     “ABE Heartland” has the meaning given in the preamble.

     “Accounts Agreement” means the Amended and Restated Accounts Agreement, dated as of
the Effective Date, among the Borrower, the Accounts Bank, as accounts bank and securities
intermediary, the Collateral Agent, the Administrative Agent, and the Bond Trustee on behalf of the
Second Lien Claimholders (as defined in the Intercreditor Agreement).

     “Accounts Bank” means Amarillo National Bank, not in its individual capacity, but
solely as accounts bank and securities intermediary under the Original Accounts Agreement or the
Accounts Agreement (as the case may be).

     “Administrative Agent” has the meaning given in the preamble.

     “Affiliate” of any Person means any other Person that, directly or indirectly,
controls, is controlled by or is under common control with such Person. A Person shall be deemed
to be “controlled by” any other Person if such other Person (a) possesses, directly or indirectly,
power to direct or cause the direction of the management and policies of such Person whether by
contract or otherwise or (b) owns at least ten percent (10%) of the Equity Interests in such
Person.

     “Agreement” has the meaning given in the preamble.

     “Agreement as to Payment of Expenses” means the Agreement as to Payment of Expenses,
dated October 1, 2007 by and among ABE, the Issuer and the Bond Trustee, as amended or
supplemented.

     “Authorized Officer” means (i) with respect to any Person that is a corporation, the
chief executive officer, the chief operating officer, the president, any vice president, the
treasurer or the chief financial officer of such Person, (ii) with respect to any Person that is a
partnership, an Authorized Officer of a general partner of such Person, (iii) with respect to any
Person that is a limited liability company, any manager, the president, any vice president, the
treasurer or the chief financial officer of such Person, or an Authorized Officer of the managing
member of such Person, or (iv) with respect to any Person, such other representative of such Person
that is approved by the Administrative Agent in writing who, in each such case, has been named as
an

4

 

Authorized Officer on a certificate of incumbency of such Person delivered to the
Administrative Agent on or after the date hereof.

     “Bond Indenture” has the meaning given in the recitals.

     “Bond Purchase Agreement” means the Bond Purchase Agreement, dated October 2, 2007,
among the Issuer, the Underwriter and the Borrower.

     “Bond Satisfaction Payment” has the meaning given in Section 2.02(b).

     “Bond Trustee” has the meaning given in the preamble.

     “Borrower” has the meaning given in the preamble.

     “Borrower LLC Agreement” means that certain Limited Liability Company Agreement of ABE
South Dakota, LLC, dated as of the date hereof.

     “Business Day” means any day that is neither a Saturday or Sunday nor a day on which
commercial banks are authorized or required to be closed in New York, New York.

     “Cancelled Subordinated Debt” has the meaning given in Section 2.04.

     “Certificate of Real Estate Value” has the meaning given in Section 4.01(j).

     “Closing Fee” has the meaning given in Section 2.02(a).

     “Closing Payments” has the meaning given in Section 2.02(a).

     “Code” means the Internal Revenue Code of 1986, as amended, including the regulations,
technical advice, published rulings and private letter rulings adopted, proposed, published or
otherwise promulgated in connection therewith.

     “Collateral Agent” has the meaning given in the preamble.

     “Continuing Disclosure Agreement” means the Continuing Disclosure Agreement, dated as
of October 1, 2007, between the Bond Trustee, as dissemination agent, and the Borrower.

     “Contractual Obligation” means, as to any Person, any provision of any security issued
by such Person or of any agreement, instrument or other undertaking to which such Person is a party
or by which it or any of its property is bound.

     “Dakota Fuels” has the meaning given in the preamble.

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     “Debtor Parties” means ABE, ABE Heartland, Dakota Fuels and the Borrower.

     “Disputed Subordinated Interest Payment” has the meaning given in Section
2.03(b).

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

     “DTC” means The Depository Trust Company, a New York corporation, and its successors
and assigns.

     “Effective Date” means the date on which all of the conditions set forth in
Section 4.01 have been satisfied or waived.

     “Equity Interests” means, with respect to any Person, all of the shares of capital
stock of (or other ownership, voting or profit interests in) such Person, all of the warrants,
options or other rights for the purchase or acquisition from such Person of shares of capital stock
of (or other ownership, voting or profit interests in) such Person, all of the securities
convertible into or exchangeable for shares of capital stock of (or other ownership, voting or
profit interests in) such Person or warrants, rights or options for the purchase or acquisition
from such Person of such shares (or such other interests), and all of the other ownership or profit
interests in such Person (including partnership, member or trust interests therein), whether voting
or nonvoting, and whether or not such shares, warrants, options, rights or other interests are
outstanding on any date of determination, in each such case including all voting rights and
economic rights related thereto.

     “Forbearance Agreement” has the meaning given in the recitals.

     “Forbearance Period” has the meaning given in the recitals.

     “Governmental Authority” means any nation, state, sovereign, or government, any
federal, regional, state, local or political subdivision and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining to government.

     “Independent Director” means Jennifer Schwartz, an employee of C T Corporation
Staffing, Inc., in her capacity as Independent Director (as defined in the Organic Documents of
Dakota Fuels) or such other Person appointed in such capacity in accordance with the Organic
Documents of Dakota Fuels.

     “Independent Member” means (a) in the case of ABE Heartland, C T Corporation Staffing,
Inc., in its capacity as Independent Member (as defined in the

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Organic Documents of ABE Heartland) and (b) in the case of the Borrower, C T Corporation
Staffing, Inc., in its capacity as Independent Member (as defined in the Borrower LLC Agreement).

     “Intercreditor Agreement” has the meaning given in the recitals.

     “Interest Rate Protection Agreements” has the meaning given in the Original Senior
Credit Agreement.

     “Interest Rate Protection Provider” has the meaning given in the Original Senior
Credit Agreement.

     “Issuer” has the meaning given in the preamble.

     “Lenders” has the meaning given in the preamble.

     “Lien” means any security interest, mortgage, pledge, hypothecation, assignment,
deposit arrangement, encumbrance, bailment, conditional sales or title retention agreement, lien
(statutory or otherwise), charge against or interest in property, in each case of any kind, to
secure payment of a debt or performance of an obligation.

     “Organic Documents” means, with respect to any Person that is a corporation, its
certificate of incorporation, its by-laws and all shareholder agreements, voting trusts and similar
arrangements applicable to any of its authorized shares of capital stock; with respect to any
Person that is a limited liability company, its certificate of formation or articles of
organization and its limited liability agreement and, with respect to a limited partnership, its
certificate of limited partnership and its agreement of limited partnership.

     “Original Accounts Agreement” means the Accounts Agreement, dated as of October 1,
2007, among the Borrower, the Accounts Bank, as accounts bank and securities intermediary, the
Collateral Agent, the Administrative Agent, and the Bond Trustee on behalf of the Second Lien
Claimholders (as defined in the Intercreditor Agreement).

     “Original Senior Credit Agreement” has the meaning given in the recitals.

     “Outstanding Senior Principal Obligations” has the meaning given in the recitals.

     “Person” means any natural person, corporation, partnership, limited liability
company, firm, association, trust, government, governmental agency or any other entity, whether
acting in an individual, fiduciary or other capacity.

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     “Plants” has the meaning given in the recitals.

     “Project” means, at all times, each Plant and all auxiliary and other facilities
constructed or to be constructed by or on behalf of the Borrower pursuant to the Project Documents
(as defined in the Original Senior Credit Agreement) relating to each such Plant or otherwise,
together with all fixtures and improvements thereto and each Site (as defined in the Original
Senior Credit Agreement) and other real property, easements and rights-of-way held by or on behalf
of the Borrower and all rights to use easements and rights-of-way of others.

     “Quitclaim Deed” has the meaning given in Section 4.01(j).

     “Related Persons” means, with respect to any Person, such Person’s Affiliates and the
partners, directors, officers, employees, agents and advisors of such Person and of such Person’s
Affiliates.

     “Senior Claimholders” means the Administrative Agent, the Collateral Agent, the
Lenders and the Interest Rate Protection Providers.

     “Senior Credit Agreement” means the Amended and Restated Senior Credit Agreement,
dated as of the Effective Date, among the Borrower, the Lenders, the Administrative Agent and the
Collateral Agent.

     “Senior Loans” has the meaning given in the recitals.

     “Senior Principal Prepayments” has the meaning given in Section 2.02(a).

     “Senior Secured Parties” has the meaning given in the recitals.

     “Subordinated Bondholder” has the meaning given in the preamble.

     “Subordinated Claimholders” has the meaning given in the preamble.

     “Subordinated Debt Documents” means (i) the Bond Indenture, (ii) the Subordinated Loan
Agreement, (iii) the bond resolution adopted by the Issuer on August 8, 2007 that became effective
on September 3, 2007, relating to the Subordinated Bonds, (iv) each of the Subordinated
Bonds, (v) each of the Subordinated Security Documents, (vi) the Tax Exemption Agreement and
Certificate, (vii) the Bond Purchase Agreement, (viii) the Continuing Disclosure Agreement,
(ix) the Environmental and ADA Indemnification Agreement, dated as of October 1, 2007, by the
Borrower in favor of the Bond Trustee, (x) each other document (other than the Agreement as to
Payment of Expenses) executed on or prior to the date hereof in connection with the Bond Indenture,

8

 

the Subordinated Bonds or the obligations of the Borrower under the Subordinated Loan
Agreement.

     “Subordinated Loan Agreement” has the meaning given in the recitals.

     “Subordinated Mortgages” means, collectively, (a) the Subordinate Mortgage—Collateral
Real Estate Mortgage, Security Agreement, Financing Statement, Fixture Filing and Assignment of
Leases, Rents and Security Deposits, dated as of October 1, 2007 by the Borrower as mortgagor to
the Bond Trustee as mortgagee, as recorded on October 15, 2007 as instrument no. 394, in book 628,
page 985 et seq., in the office of the Register of Deeds of Brown County, South Dakota and (b) the
Subordinate Mortgage—One Hundred Eighty Day Redemption, Collateral Real Estate Mortgage, Security
Agreement, Financing Statement, Fixture Filing and Assignment of Leases, Rents and Security
Deposits, dated as of October 1, 2007 by the Borrower as mortgagor to the Bond Trustee as
mortgagee, as recorded on October 15, 2007 as instrument number 70825, in Disk M1g # 736d in the
office of the Register of Deeds of Beadle County, South Dakota.

     “Subordinated Pledge Agreement” means the Subordinate Pledge and Security Agreement,
dated as of October 1, 2007, among the Borrower as company, Dakota Fuels and ABE Heartland as
pledgors and the Bond Trustee.

     “Subordinated Security Documents” means (i) the Bond Indenture, (ii) the Subordinated
Mortgages, (iii) the Subordinated Security Agreement, (iv) the Subordinated Pledge Agreement,
(v) the ABE Equity Pledge Agreement, and any documents granting, or relating to the grant, of
security for the payment of amounts due under the Subordinated Loan Agreement and the Subordinated
Bonds.

     “Subordinated Security Agreement” means the Subordinate Assignment and Security
Agreement, dated as of October 1, 2007, by the Borrower in favor of the Bond Trustee.

     “Swap Termination Value” has the meaning given in the Original Senior Credit
Agreement.

     “Tax Exemption Agreement and Certificate” means the Tax Exemption Agreement and
Certificate relating to the Subordinated Bonds, dated as of October 1, 2007, among the Borrower,
the Bond Trustee, the Issuer and the Accounts Bank.

     “Terminated Subordinated Debt Documents” means (i) the Bond Indenture,
(ii) the Subordinated Loan Agreement, (iii) each of the Subordinated Bonds, (iv) each of the
Subordinated Security Documents, (v) the Bond Purchase Agreement, (vi) the Environmental and ADA
Indemnification Agreement, dated as of October 1, 2007, by the

9

 

Borrower in favor of the Bond Trustee, (vii) the Continuing Disclosure Agreement, and (viii)
each other document (other than the Agreement as to Payment of Expenses, the Tax Exemption
Agreement and Certificate, and the bond resolution adopted by the Issuer on August 8, 2007 that
became effective on September 3, 2007, relating to the Subordinated Bonds) executed on or prior to
the date hereof in connection with the Bond Indenture, the Subordinated Bonds or the obligations of
the Borrower under the Subordinated Loan Agreement.

     “Term Loans” has the meaning given in the Original Senior Credit Agreement.

     “Underwriter” means Dougherty & Company LLC.

     “Working Capital Loans” has the meaning given in the Original Senior Credit Agreement.

     Section 1.02 Principles of Interpretation. (a) Unless the context requires
otherwise, any reference in this Agreement to any document shall mean such document and all
schedules, exhibits and attachments thereto.

     (a) All agreements, contracts or documents defined or referred to herein shall mean such
agreements, contracts or documents as the same may from time to time be supplemented, amended or
replaced or the terms thereof waived or modified to the extent permitted by, and in accordance
with, the terms thereof and this Agreement, and shall disregard any supplement, amendment,
replacement, waiver or modification made in violation of this Agreement.

     (b) The term “knowledge” in relation to any Person, and any other similar expression, shall
mean knowledge of such Person after due inquiry.

     (c) Defined terms in this Agreement shall include in the singular number the plural and in the
plural number the singular.

     (d) The words “herein,” “hereof” and “hereunder” and words of similar import when used in this
Agreement shall, unless otherwise expressly specified, refer to this Agreement as a whole and not
to any particular provision of this Agreement and all references to Articles, Sections, Exhibits
and Schedules shall be references to Articles, Sections, Exhibits and Schedules of this Agreement,
unless otherwise specified.

     (e) The words “include,” “includes” and “including” are not limiting.

     (f) The word “or” is not exclusive.

10

 

     (g) Any reference to any Person shall include its permitted successors and permitted assigns
in the capacity indicated, and in the case of any Governmental Authority, any Person succeeding to
its functions and capacities.

     (h) The headings and titles herein are for convenience only and shall have no significance in
the interpretation hereof.

     Section 1.03 Accounting and Financial Determinations. Unless otherwise specified, all
accounting terms used in any document shall be interpreted, all accounting determinations and
computations hereunder or thereunder shall be made, and all financial statements required to be
delivered hereunder or thereunder shall be prepared, in accordance with GAAP.

ARTICLE II

DEBT CANCELLATION AND RESTRUCTURING

     On the terms, subject to the conditions and relying upon the representations and warranties
herein set forth:

     Section 2.01 Payments by ABE. As condition of the Effective Date, ABE will transfer
to the Revenue Account (as defined in the Accounts Agreement) in cash an amount equal to the sum of
ten million Dollars ($10,000,000) plus two million two hundred fifty thousand Dollars ($2,250,000),
as an equity contribution to the Borrower (the “ABE Equity Contribution”) for application
in accordance with Section 2.02, all in consideration of the restructuring of senior debt
described in Section 2.03(a) and the cancellation of subordinated debt described in
Section 2.04.

     Section 2.02 Payments by the Borrower. As a condition of the Effective Date, the
Borrower will:

     (a) withdraw from the Revenue Account (as defined in the Accounts Agreement) (i) an amount
equal to the sum of the ten million Dollars ($10,000,000) contributed by ABE pursuant to
Section 2.01 plus five million Dollars ($5,000,000) (such sum, the “Senior Principal
Prepayments”), and transfer such sum to the Administrative Agent for the account of the Senior
Claimholders in prepayment of the Outstanding Senior Principal Obligations on a pro rata basis and
(ii) an amount equal to ten thousand Dollars ($10,000) times the number of days that have elapsed
from April 1, 2010 to and including the Effective Date (the “Closing Fee” and, together
with the Senior Principal Prepayments, the “Closing Payments”), and transfer such amount to
the Administrative Agent for the account of the Lenders, all in consideration of the restructuring
of the senior debt described in Section 2.03(a);

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     (b) withdraw from the Revenue Account (as defined in the Accounts Agreement) an amount equal
to (i) two million two hundred fifty thousand Dollars ($2,250,000) (the “Bond Satisfaction
Payment”) and transfer such amount to the Bond Trustee for the account of the Subordinated
Bondholder, and (ii) an amount equal to the fees and expenses of the Subordinated Claimholders set
forth on Exhibit A and transfer such amount to the Bond Trustee (or as otherwise directed
by the Bond Trustee in a written notice to the Administrative Agent), in each case in consideration
of the cancellation of subordinated debt described in Section 2.04.

     Section 2.03 Restructuring of Senior Debt. (a) As of the Effective Date, in
consideration of the Closing Payments, each Lender (for itself and, in the case of each Lender or
its Affiliate that is an Interest Rate Protection Provider, on behalf of such Interest Rate
Protection Provider) agrees that (a) except for the amount required to be remitted by the Bond
Trustee pursuant to Section 4.01(d), all interest accrued through the Effective Date on
outstanding Term Loans and Working Capital Loans, and any Net Swap Payments owing to any Interest
Rate Protection Provider, shall be reduced to zero, and (b) the Senior Principal Prepayments will
be applied to repay the Outstanding Senior Principal Obligations on a pro rata basis, and (c) the
amount of the remaining Outstanding Senior Principal Obligations following such repayment (being
eighty-four million two hundred ninety-one thousand five hundred fifty Dollars ($84,291,550)) will
be deemed term loans on the terms and subject to the conditions set forth in the Senior Credit
Agreement and (d) that the Intercreditor Agreement shall be terminated in accordance with
Section 5.01.

     (b) As of the Effective Date, upon the transfer by the Bond Trustee to the Revenue Account (as
defined in the Accounts Agreement) in accordance with Section 4.01(d) of an amount equal to
one hundred seventy-two thousand nine hundred forty-eight Dollars and fifty-six cents
($172,948.56), representing fifty percent (50%) of an amount paid from such account by the Borrower
to the Bond Trustee as interest in contravention of the Intercreditor Agreement (the “Disputed
Subordinated Interest Payment”), the Senior Claimholders agree to release the Borrower and the
Subordinated Claimholders from any obligation in respect of the Disputed Subordinated Interest
Payment.

     Section 2.04 Cancellation of Subordinated Debt. (a) As of the Effective Date, the
Subordinated Bondholder hereby (i) cancels (and hereby directs the Issuer and the Bond Trustee to
cancel) all obligations of the Debtor Parties under the Terminated Subordinated Debt Documents
(such obligations, the “Cancelled Subordinated Debt”) (ii) terminates (and hereby directs
the Issuer and the Bond Trustee to terminate) all of the Terminated Subordinated Debt Documents,
(iii) terminates, cancels and releases (and hereby directs the Issuer and the Bond Trustee to
terminate, cancel and release) the Liens of the Subordinated Security Documents, all in
consideration of the Bond Satisfaction

12

 

Payment and payment of the fees and expenses of the Subordinated Claimholders set forth on
Exhibit A pursuant to Section 2.02(b). Each of the Issuer and the Bond Trustee
hereby acknowledges the directions to it from the Subordinated Bondholder pursuant to subsections
(i), (ii) and (iii) of this Section 2.04(a) and agrees that, on the Effective Date, each of the
Terminated Subordinated Debt Documents to which it is a party has been satisfied and terminated.

     (b) Notwithstanding anything in the Subordinated Debt Documents to the contrary, and except as
required pursuant to Section 4.01(d), on the Effective Date, any moneys held by the Bond
Trustee under the Bond Indenture upon the termination thereof shall be distributed first to pay any
fees and expenses of the Bond Trustee and the Issuer, and then shall be distributed to the
Subordinated Bondholder.

     (c) To effect the termination of the Terminated Subordinated Debt Documents, the Subordinated
Bondholder shall issue such instructions and take such actions, including without limitation giving
written directions to DTC, any nominee, the Bond Trustee, the Issuer or any other party to execute
such instruments or documents as may be necessary to effectuate and acknowledge the cancellation of
the Subordinated Bonds and the satisfaction and discharge of the Bond Indenture, the lien thereof
and all other Subordinated Debt Documents.

     (d) The Bond Trustee hereby acknowledges to the Issuer that any sums payable under the
Subordinated Loan Agreement and the Bond Indenture or otherwise in connection with any of the
Terminated Subordinated Debt Documents have been paid or provided for, and that no other sums are
payable under the Bond Indenture or otherwise in connection with any of the Terminated Subordinated
Debt Documents.

     (e) Section 13.8 (Immunity of Officers, Employees and Members of Issuer) of the Bond Indenture
and Section 9.8 (Immunity of Officers, Employees and Members of the Issuer and the Borrower) of the
Subordinated Loan Agreement shall survive the termination of the Terminated Subordinated Debt
Documents.

     (f) [Intentionally omitted]

     (g) The Subordinated Bondholder acknowledges and agrees that the Issuer will not be liable for
any losses, costs or expenses of the Subordinated Bondholder in connection with any inquiry or
audit by the IRS.

     (h) The parties hereto acknowledge and agree that the Issuer is a party to this Agreement at
the request of the other parties hereto (i) to accommodate the implementation of the restructuring
plan solely by acknowledging the discharge of the Subordinated Loan Agreement and the Bond
Indenture as a result of the satisfaction of the whole amount due on the Series 2007A Bond pursuant
to the terms of this

13

 

Restructuring Agreement and (ii) for purposes of Section 2.04(a), (i),
(j) and (k), Section 5.01 and Section 5.14, and shall not be liable
to any party hereto for executing this agreement or taking any actions required hereby.

     (i) The parties hereto acknowledge and agree that, except for the fees and expenses of the
Subordinated Claimholders set forth on Exhibit A that will be paid by the Borrower as a
condition of the Effective Date, and (in the cases of subsections (ii) and (iii) of this
Section 2.04(i)) any fees and expenses of the Subordinated Claimholders paid by ABE
pursuant to the Agreement as to Payment of Expenses, (i) the Borrower will have no obligation to
pay any other fees or expenses of the Subordinated Claimholders, (ii) no payment shall be made in
respect of any such fees or expenses, directly or indirectly, by or on behalf of the Borrower, and
(iii) the Subordinated Claimholders shall not take or receive from the Borrower or any Person on
the Borrower’s behalf, directly or indirectly, in cash or other property or by set-off or in any
other manner, including from or by way of any collateral, any payment in respect of any such fees
or expenses.

     (j) Each Subordinated Claimholder hereby acknowledges that, as of the Effective Date, all
indebtedness of the Debtor Parties to the Subordinated Claimholders under the Subordinated Debt
Documents has been fully paid and discharged, and there are no unpaid amounts in respect of such
obligations as of the date hereof.

     (k) Each Subordinated Claimholder, for itself, its successors, assigns, affiliates, directors,
managers, officers, employees, agents, attorneys, consultants and advisors (collectively, the
“Releasors”) acquits, waives, releases and discharges the Debtor Parties and the
Underwriter and each of their respective successors, assigns, affiliates, directors, officers,
employees, agents, attorneys, consultants and advisors (collectively, the “Releasees”) of
and from any and all losses, costs, expenses, duties, liabilities, obligations, claims, demands,
accounts and actions whatsoever (including, without limitation, (x) any indemnities that were
intended to survive the termination of the Terminated Subordinated Debt Documents, but excluding
obligations of or claims against ABE under the Agreement as to Payment of Expenses, and (y) any
taxes, assessments, levies, interest, penalties or other amounts related to taxes resulting from
any inquiry or audit by the IRS) that it ever had, now has, or hereinafter may have against any
Releasee that arises under, or in connection with, or that otherwise relates, directly or
indirectly, to any Subordinated Debt Document or the Cancelled Subordinated Debt, or to any and all
acts or omissions in connection with any of the foregoing. As to each and every claim released
hereunder, each Subordinated Claimholder hereby represents that it has received the advice of legal
counsel with regard to the releases contained herein, and having been so advised, specifically
waives the benefit of any rule or law which provides as follows:

14

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OR SUSPECT TO
EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM, MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR”; and

waives, as to each and every claim released hereunder, the benefit of each other similar provision
of applicable federal or state law (including, without limitation, the laws of the State of New
York), if any, pertaining to general releases after having been advised by their legal counsel with
respect thereto.

     (l) ABE acknowledges that nothing in this Agreement is intended or shall be construed to alter
or affect ABE’s obligations under the Agreement as to Payment of Expenses.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     Section 3.01 Representations and Warranties of the Debtor Parties. In order to induce
the Senior Claimholders and the Subordinated Claimholders to enter into this Agreement, each Debtor
Party represents and warrants to each Senior Claimholder as follows and on the Effective Date
(except with respect to representations and warranties that expressly refer to an earlier date):

     (a) Organization and Good Standing. (i) It is (x) in the case of ABE, ABE Heartland
and the Borrower, a limited liability company, (y) in the case of Dakota Fuels, a corporation, duly
organized, validly existing, and in good standing under the laws of the State of Delaware and
(ii) it is duly qualified to do business as is now being conducted and is in good standing as a
foreign limited liability company or corporation, as the case may be, in each jurisdiction where
the nature of its business requires such qualification, it has all requisite limited liability
company (or, in the case of Dakota Fuels, corporate) power and authority to execute and deliver
this Agreement and to perform its obligations hereunder and to conduct its business as currently
conducted by it.

     (b) Due Authorization; Non-Contravention. The execution, delivery, and performance of
this Agreement by it, the consummation of the transactions contemplated hereby, the conversion of
the Borrower from a limited partnership to a limited liability company, and the Borrower LLC
Agreement have been duly and validly authorized by all requisite limited liability company or
corporate action on its part, and do not:

(i) contravene its Organic Documents;

15

 

	 	(ii)	 	contravene in any material respect any law binding on
or affecting it;
	 
	 	(iii)	 	contravene in any material respect any Contractual
Obligation binding on or affecting it;
	 
	 	(iv)	 	require any consent or approval under its Organic
Documents that has not been obtained;
	 
	 	(v)	 	require any consent or approval under any Contractual
Obligation binding on or affecting it other than any approvals or consents
which have been obtained; or
	 
	 	(vi)	 	result in, or require the creation or imposition of,
any Lien on any of its properties or the Equity Interests of the Borrower
other than Liens in favor of the Collateral Agent.

     (c) Enforceability. This Agreement has been duly authorized, validly executed and
delivered by it, and constitutes the legal, valid and binding obligations of it enforceable against
it, in each case in accordance with the provisions of this Agreement, except as the enforceability
hereof may be limited by (a) bankruptcy, insolvency, reorganization, or other similar laws
affecting the enforcement of creditors’ rights generally and (b) general equitable principles
(whether considered in a proceeding in equity or at law).

     (d) Consents. No consent, approval, authorization or permit of, or filing with or
notification to, any Person is required to be obtained, given or made by any Debtor Party for or in
connection with the execution and delivery of this Agreement by it or for or in connection with the
consummation of the transactions and performance of the terms and conditions contemplated hereby by
it.

ARTICLE IV

CONDITIONS PRECEDENT AND CONDITIONS IMMEDIATELY SUBSEQUENT

     Section 4.01 Conditions Precedent to the Effective Date. The obligations of the
parties to consummate the transactions contemplated by this Agreement (including Article II
hereof) are subject to the satisfaction or waiver of each of the following conditions:

     (a) Representations and Warranties by the Debtor Parties. The representations and
warranties of the Debtor Parties set forth in Section 3.01 are true and correct on and as
of the Effective Date.

16

 

     (b) Delivery of Restructuring Transaction Documents. (x) Each party shall have
received fully executed counterparts of each of the following agreements to which it is a party,
which shall be originals, portable document format (“pdf”) or facsimiles (followed promptly by
originals), duly executed and delivered by each party thereto, and (y) the Administrative Agent
shall have received a pdf copy of each such agreement to which it is not a party, each of which
shall be in form and substance satisfactory to the Administrative Agent:

	 	(i)	 	this Agreement;
	 
	 	(ii)	 	the Quitclaim Deed; and
	 
	 	(iii)	 	the Certificate of Real Estate Value.

     (c) Delivery of Restructuring Transaction Documents. The Administrative Agent shall
have received fully executed counterparts of the Senior Credit Agreement, which shall be originals,
or portable document format (“pdf”) or facsimiles (followed promptly by originals), duly executed
and delivered by each party thereto.

     (d) Remittance of Disputed Interest by Bond Trustee. The Bond Trustee shall have wire
transferred an amount equal to one hundred seventy-two thousand nine hundred forty-eight Dollars
and fifty-six cents ($172,948.56) in immediately available funds to WestLB AG, New York Branch, as
the Administrative Agent, at the following account: JPMorgan Chase Bank (Swift ID: CHASUS33XXX),
Account Number: 920-1-060663, for the Account of WestLB AG, NY Branch, ABA #021000021, Ref: ABE
SOUTH DAKOTA, LLC or at such other office or account as may be specified by the Administrative
Agent, and the Administrative Agent shall have received evidence satisfactory to it of the receipt
of such funds.

     (e) Conditions under Senior Credit Agreement. The conditions set forth in Section
6.01 (Conditions to Effectiveness) of the Senior Credit Agreement shall have been satisfied or
waived in accordance with that agreement.

     (f) Resolutions, Incumbency, Organic Documents. The Administrative Agent shall have
received from each Debtor Party a certificate of an Authorized Officer dated as of the Effective
Date, upon which each Senior Claimholder and Subordinated Claimholder may conclusively rely, as to:

	 	(i)	 	satisfactory resolutions of its board of directors
(including, in the case of Dakota Fuels, the Independent Director), board
of managers, member(s) (including, in the case of each of ABE Heartland
and the Borrower, its respective Independent Member) or manager(s), as the
case may be, then in full force

17

 

	 	 	 	and effect authorizing the execution, delivery and performance of this
Agreement, the conversion of the Borrower from a limited partnership
to a limited liability company, the Borrower LLC Agreement, and the
consummation of the transactions contemplated herein;
	 
	 	(ii)	 	the incumbency and signatures of those of its
officers and representatives duly authorized to execute and otherwise act
with respect to this Agreement;
	 
	 	(iii)	 	such Person’s Organic Documents (including, in the
case of the Borrower, (x) its certificate of conversion to a limited
liability company, (y) its certificate of formation and (z) the Borrower
LLC Agreement, each based on a form that the Administrative Agent has
approved in writing pursuant to Section 7.02(m)(i) of the Original Senior
Credit Agreement), certifying that (A) such documents are in full force
and effect and no term or condition thereof has been amended from the form
attached to such certificate and (B) no material breach, material default
or material violation thereunder has occurred and is continuing.

     (g) Termination of Bond Purchase Agreement by the Underwriter. The Administrative
Agent shall have received from the Underwriter a copy of a letter or other instrument executed and
delivered by it to the other parties to the Bond Purchase Agreement, or other evidence satisfactory
to the Administrative Agent, pursuant to which the Underwriter has agreed to the termination of the
Bond Purchase Agreement.

     (h) Release of Subordinated Claimholders’ Liens. (i) The Administrative Agent shall
have received satisfactory copies or evidence of mortgage releases and UCC termination statements,
in proper form for filing in all jurisdictions that the Administrative Agent may deem necessary or
desirable, terminating the existing mortgages by the Borrower in favor of the Bond Trustee, and all
existing UCC financing statements and fixture filings that list the Bond Trustee or the Issuer as
secured party, and the Borrower or any Debtor Party as debtor, and each such mortgage release and
UCC termination statement shall be duly filed on the Effective Date and (ii) ABE shall have
received from the Bond Trustee the original certificates representing all Equity Interests in ABE
Heartland together with the original executed irrevocable proxies and transfer powers relating to
such Equity Interests.

     (i) Opinions of Counsel. Each of the Senior Claimholders and the Subordinated
Claimholders shall have received legal opinions of counsel to the Debtor Parties, addressed to the
Senior Claimholders and the Subordinated Claimholders, in each

18

 

case in form and substance satisfactory to each such Senior Claimholder or Subordinated
Claimholder.

     (j) Huron Land Purchase. (i) The Borrower shall have received from ABE a quitclaim
deed, in form and substance satisfactory to the Administrative Agent, duly executed and delivered
by ABE to the Borrower (the “Quitclaim Deed”), a certificate of real estate value in form
and substance satisfactory to the Administrative Agent (the “Certificate of Real Estate
Value”), and such other documents necessary to effectuate the transfer of that certain real
property in Huron, South Dakota, as more particularly described in that certain Option Agreement
dated as of July 30, 2008, between Borrower and ABE, and (ii) ABE shall have received from Borrower
the sum of one hundred fifteen thousand two hundred seventy-seven Dollars and twenty-seven cents
($115,277.27).

     (k) ABE Equity Contribution. ABE Shall have made the ABE Equity Contribution in
accordance with Section 2.01.

     (l) Prepayment of Outstanding Senior Principal Obligations. The Borrower shall have
prepaid the Outstanding Senior Principal Obligations in an amount equal to the Senior Principal
Prepayments in accordance with Section 2.02(a).

     (m) Bond Satisfaction Payment. The Borrower shall have paid to the Bond Trustee by
wire transfer in immediately available funds the Bond Satisfaction Payment in accordance with
Section 2.02(b).

     (n) Rebate Analysis. The Borrower shall have delivered to the Bond Trustee (with a
copy to the Issuer) an analysis prepared by McGladrey & Pullen, LLP confirming that no amounts
(including any “Rebate Amount” or “Yield Reduction Amount” (as each such term is defined in the Tax
Exemption Agreement and Certificate)) are required to be rebated under Section 148(f) of the Code
in respect of the Subordinated Bonds.

     (o) Fees and Expenses of Subordinated Claimholders. The Borrower shall have paid the
fees and expenses of the Subordinated Claimholders set forth on Exhibit A.

     Section 4.02 Conditions Immediately Subsequent to the Effective Date. As soon as
practicable (in accordance with DTC’s procedures) following the occurrence of the Effective Date,
the Bond Trustee and the Subordinated Bondholder shall have delivered to the Borrower such
instruments or other documents evidencing the cancellation of the Subordinated Bonds.

19

 

ARTICLE V

MISCELLANEOUS PROVISIONS

     Section 5.01 Termination of Agreements; Revival of Intercreditor Agreement. By its
execution and delivery of this Agreement, each party to the Intercreditor Agreement and each
Terminated Subordinated Debt Document hereby agrees that each such agreement to which it is a party
shall terminate effective the Effective Date; provided that if any claims are made under
the Subordinated Debt Documents after such termination (including without limitation any claims for
fees and expenses) against the Borrower or ABE Heartland, then the Intercreditor Agreement shall be
reinstated in full force and effect with respect to all such claims, and such termination shall not
diminish, release, discharge, impair or otherwise affect the obligations of the parties to the
Intercreditor Agreement from such date of reinstatement.

     Section 5.02 Remedies; Election of Remedies. (a) Notwithstanding anything herein
provided to the contrary, upon failure of any Debtor Party to fulfill any undertaking or commitment
provided for herein that is required to be fulfilled on or prior to the Effective Date, the Senior
Claimholders may, at their sole option, (i) enforce specific performance of this Agreement or (ii)
pursue any rights or remedies available under the Financing Documents (as defined in the Original
Senior Credit Agreement) or the Financing Documents (as defined in the Senior Credit Agreement) or
(iii) pursue any rights or remedies available at law or in equity.

     (b) If the Senior Claimholders elect to pursue singularly any remedy available to the Senior
Claimholders under this Section 5.02, then the Senior Claimholders may at any time
thereafter cease pursuing that remedy and elect to pursue any other remedy available to them under
this Section 5.02. All remedies hereunder shall be cumulative. Except as otherwise
provided by applicable law, no delay or forbearance by the Senior Claimholders in the exercise or
enforcement of any remedy hereunder shall be deemed a waiver by the Senior Claimholders of their
rights hereunder to exercise or enforce such remedy.

     Section 5.03 Counterparts; Effectiveness. This Agreement may be executed in one or
more counterparts (and by different parties hereto in different counterparts), all of which, taken
together, shall be considered one and the same agreement, and shall become effective when one or
more counterparts have been signed by each of the parties and delivered to the other parties.
Delivery of an executed counterpart of a signature page of this Agreement by telecopy or other
electronic delivery shall be effective as delivery of a manually executed counterpart of this
Agreement. BY ITS EXECUTION AND DELIVERY (AND, IN THE CASE OF DELIVERY IN ESCROW, RELEASE FROM
ESCROW) OF AN EXECUTED COUNTERPART OF A SIGNATURE PAGE

20

 

OF THIS AGREEMENT (INCLUDING BY TELECOPY OR OTHER ELECTRONIC DELIVERY) TO THE OTHER PARTIES,
EACH PARTY SHALL BE DEEMED TO HAVE CONFIRMED ITS SATISFACTION THAT ALL OF THE CONDITIONS SET FORTH
IN SECTION 4.01 HAVE BEEN SATISFIED OR WAIVED.

     Section 5.04 GOVERNING LAW; JURISDICTION. (a) THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY,
ENFORCED, AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, UNITED STATES OF
AMERICA, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS (OTHER THAN SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). EACH OF THE PARTIES HEREBY IRREVOCABLY AND
UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF ANY COURT OF THE STATE OF NEW YORK AND ANY FEDERAL
COURT LOCATED IN NEW YORK COUNTY, NEW YORK WITH RESPECT TO ANY PROCEEDING RELATING TO THIS
AGREEMENT. FURTHER, EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY
OBJECTION OR DEFENSE THAT IT MAY HAVE BASED ON IMPROPER VENUE OR FORUM NON CONVENIENS TO THE
CONDUCT OF ANY SUCH PROCEEDING IN ANY SUCH COURTS.

     (b) WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (i)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (ii) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 5.04.

     Section 5.05 No Waiver; Cumulative Remedies. No failure by any Senior Claimholder or
Subordinated Claimholder to exercise, and no delay by any such Person in exercising, any right,
remedy, power or privilege hereunder or under any agreement or instrument contemplated hereby shall
operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power
or privilege hereunder preclude any other or

21

 

further exercise thereof or the exercise of any other right, remedy, power or privilege.
The rights, remedies, powers and privileges herein provided, and provided under each other
agreement or instrument contemplated hereby, are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by law.

     Section 5.06 Notices. All notices and other communications hereunder shall be in
writing, shall be deemed given upon receipt thereof by the party or parties to whom such notice is
addressed, shall be sent by first class mail, by personal delivery, by a nationally recognized
courier service or by facsimile (subject to electronic confirmation), and shall be directed as set
forth on Schedule 5.06. The parties may, by notice given hereunder, designate any further
or different addresses to which subsequent notices or other communications shall be sent.

     Section 5.07 Successors and Assigns. The rights and obligations of the parties
hereunder shall not be assigned or delegated without the written consent of the other parties.
Subject to the preceding sentence, this Agreement shall be binding upon and inure to the benefit of
the parties and their permitted successors and assigns.

     Section 5.08 Amendments and Waivers. This Agreement may not be modified or amended
except by an instrument or instruments in writing signed by all of the parties hereto. Except as
provided in Section 5.03, a party may, only by an instrument in writing, waive compliance
by another party with any term or provision of this Agreement on the part of such other party to be
performed or complied with. The waiver by a party of a breach of any term or provision of this
Agreement shall not be construed as a waiver of any subsequent breach.

     Section 5.09 Severability. If any provision of this Agreement is held to be illegal,
invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions
of this Agreement shall not be affected or impaired thereby and (b) the parties shall endeavor in
good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of the illegal, invalid
or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.

     Section 5.10 Survival. Each representation and warranty made hereunder and in any
other document delivered pursuant hereto or in connection herewith shall survive the execution and
delivery hereof.

     Section 5.11 Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, none of the Debtor Parties shall assert, and each Debtor Party hereby waives, any
claim against any Senior Claimholder or Subordinated Claimholder or Related Person thereof, on any
theory of liability, for special, indirect,

22

 

consequential or punitive damages (as opposed to direct or actual damages) arising out
of, in connection with, or as a result of, this Agreement or any agreement or instrument
contemplated hereby or the transactions contemplated hereby or thereby.

     Section 5.12 Agreement for the Parties’ Benefit Only. This Agreement is not intended
to confer upon any Person not a party hereto any rights or remedies hereunder, and no Person, other
than (a) the parties and the Related Persons of the Senior Claimholders and the Subordinated
Claimholders, is entitled to rely on any representation, warranty, covenant, or agreement contained
herein, and (b) each of the Releasees is entitled to the benefit of the provisions of Section
2.04(k).

     Section 5.13 Time of Essence. Time is of the essence in this Agreement. If the date
specified in this Agreement for giving any notice or taking any action is not a Business Day (or if
the period during which any notice is required to be given or any action taken expires on a date
that is not a Business Day), then the date for giving such notice or taking such action (and the
expiration date of such period during which notice is required to be given or action taken) shall
be the next day which is a Business Day.

     Section 5.14 Further Assurances. Each of the parties agrees that from time to time
after the Effective Date, it will execute and deliver or cause its respective Affiliates to execute
and deliver such further instruments, and take (or cause its respective Affiliates to take) such
other action, as may be reasonably necessary to carry out the purposes and intents of this
Agreement (including, in the case of the Subordinated Claimholders, without limitation, the release
of the Debtor Parties from, or cancellation of, all obligations of the Borrower and ABE Heartland
under the Subordinated Debt Documents, the termination of all of the Terminated Subordinated Debt
Documents, and the termination, cancellation and release of the liens of the Subordinated Security
Documents).

[Remainder of page intentionally blank. Next page is signature page.]

23

 

     IN WITNESS WHEREOF, the parties hereto have caused this Restructuring Agreement to be executed
by their respective officers as of the day and year first above written.

	 	 	 	 	 
	 	ABE SOUTH DAKOTA, LLC,

as Borrower

 	 
	 	By:  	/s/ Richard R. Peterson
 	 
	 	 	Name:  	Richard R. Peterson 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	ADVANCED BIOENERGY, LLC

 	 
	 	By:  	/s/ Richard R. Peterson
 	 
	 	 	Name:  	Richard R. Peterson 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	ABE HEARTLAND, LLC

 	 
	 	By:  	/s/ Richard R. Peterson
 	 
	 	 	Name:  	Richard R. Peterson 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	DAKOTA FUELS, INC.

 	 
	 	By:  	/s/ Richard R. Peterson
 	 
	 	 	Name:  	Richard R. Peterson 	 
	 	 	Title:  	President 	 
	 

 

 

	 	 	 	 	 
	 	WESTLB AG, NEW YORK BRANCH,

as Administrative Agent

 	 
	 	By:  	/s/ E. Keith Min
 	 
	 	 	Name:  	E. Keith Min 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	/s/ Dominick D’Ascoli
 	 
	 	 	Name:  	Dominick D’Ascoli 	 
	 	 	Title:  	Director 	 
	 
	 	WESTLB AG, NEW YORK BRANCH,

as Collateral Agent

 	 
	 	By:  	/s/ E. Keith Min
 	 
	 	 	Name:  	E. Keith Min 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	/s/ Dominick D’Ascoli
 	 
	 	 	Name:  	Dominick D’Ascoli 	 
	 	 	Title:  	Director 	 
	 
	 	WESTLB AG, NEW YORK BRANCH,

as Lender

 	 
	 	By:  	/s/ E. Keith Min
 	 
	 	 	Name:  	E. Keith Min 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	/s/ Dominick D’Ascoli
 	 
	 	 	Name:  	Dominick D’Ascoli 	 
	 	 	Title:  	Director 	 
	 

Signature Page to Restructuring Agreement

 

 

	 	 	 	 	 
	 	MARSHALL FINANCIAL GROUP, LLC, 

a Delaware limited liability company,

as Lender under the Original Senior Credit 

Agreement

	 	

By: 	

OUTSOURCE SERVICES

MANAGEMENT, LLC, a Nevada

limited liability company, as Attorney

In-Fact for Marshall Financial Group,

LLC

 	 
	 	By:  	/s/ Paul R. Ekholm
 	 
	 	 	Name:  	Paul R. Ekholm 	 
	 	 	Title:  	Vice President 	 
	 
	 	OSM HEARTLAND, LLC,

as Lender under the Senior Credit 

Agreement

 	 
	 	By:  	/s/ Paul R. Ekholm
 	 
	 	 	Name:  	Paul R. Ekholm 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Restructuring Agreement

 

 

	 	 	 	 	 
	 	BANCO SANTANDER S.A., NEW YORK BRANCH,

as Lender

 	 
	 	By:  	/s/ Harry Moreno
 	 
	 	 	Name:  	Harry Moreno 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	 	 
	 	By:  	/s/ Jesus Lopez
 	 
	 	 	Name:  	Jesus Lopez 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Restructuring Agreement

 

 

	 	 	 	 	 
	 	FARM CREDIT BANK OF TEXAS,

as Lender

 	 
	 	By:  	/s/ Alan Robinson
 	 
	 	 	Name:  	Alan Robinson 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Restructuring Agreement

 

 

	 	 	 	 	 
	 	COÖPERATIEVE CENTRALE

RAIFFEISEN-BOERENLEENBANK 

B.A., “RABOBANK NEDERLAND”, 

NEW YORK BRANCH,

as Lender

 	 
	 	By:  	/s/ Andrew Sherman
 	 
	 	 	Name:  	Andrew Sherman 	 
	 	 	Title:  	Executive Director 	 
	 
	 	 	 
	 	By:  	/s/ John McMahon
 	 
	 	 	Name:  	John McMahon 	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page to Restructuring Agreement

 

 

	 	 	 	 	 
	 	NORDKAP BANK AG,

as Lender

 	 
	 	By:  	/s/ Stefan Gerig
 	 
	 	 	Name:  	Stefan Gerig 	 
	 	 	Title:  	Chief Investment Officer 	 
	 
	 	 	 
	 	By:  	/s/ Simona Kugler
 	 
	 	 	Name:  	Simona Kugler 	 
	 	 	Title:  	Portfolio Manager 	 
	 

Signature Page to Restructuring Agreement

 

 

	 	 	 	 	 
	 	KEB NY FINANCIAL CORP.,

as Lender

 	 
	 	By:  	/s/ Yeon Hak Jeong
 	 
	 	 	Name:  	Yeon Hak Jeong 	 
	 	 	Title:  	President 	 
	 
	 	 	 
	 	By:  	/s/ Seung Bum Woo
 	 
	 	 	Name:  	Seung Bum Woo 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Restructuring Agreement

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL 

ASSOCIATION, AS TRUSTEE OF THE 

BROWN COUNTY, SOUTH DAKOTA 

SUBORDINATE SOLID WASTE

FACILITIES REVENUE BONDS 

(HEARTLAND GRAIN FUELS, L.P. 

ETHANOL PLANT PROJECT)

SERIES 2007A,

as Bond Trustee

 	 
	 	By:  	/s/ Michael G. Slade
 	 
	 	 	Name:  	Michael G. Slade 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Restructuring Agreement

 

 

	 	 	 	 	 
	 	OPPENHEIMER ROCHESTER 

NATIONAL MUNICIPALS,

as Subordinated Bondholder

 	 
	 	By:  	/s/ Richard Stein
 	 
	 	 	Name:  	Richard Stein 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Restructuring Agreement

 

 

	 	 	 	 	 
	 	BROWN COUNTY, SOUTH DAKOTA,

as Issuer

 	 
	 	By:  	/s/ Tom Fischbach
 	 
	 	 	Name:  	Tom Fischbach 	 
	 	 	Title:  	Chairman 	 
	 
	 	 	 
	 	Attest: 	 /s/ Maxine Taylor
 	 
	 	  	Name:	Maxine Taylor 	 
	 	  	Title:	Auditor 	 
	 

Signature Page to Restructuring Agreement

 

 

SCHEDULE 5.06

to Restructuring Agreement

NOTICE INFORMATION

I. BORROWER:

ABE SOUTH DAKOTA, LLC

10201 Wayzata Blvd, Suite 250

Minneapolis, MN 55305

Attention:        Richard R. Peterson

Telephone:      (763) 226-2707

Facsimile:       (763) 226-2719

E-mail :           rpeterson@advancedbioenergy.com

II. DEBTOR PARTIES:

ADVANCED BIOENERGY, LLC

10201 Wayzata Blvd, Suite 250

Minneapolis, MN 55305

Attention:        Richard R. Peterson

Telephone:      (763) 226-2707

Facsimile:       (763) 226-2719

E-mail :           rpeterson@advancedbioenergy.com

ABE HEARTLAND, LLC

10201 Wayzata Blvd, Suite 250

Minneapolis, MN 55305

Attention:        Richard R. Peterson

Telephone:      (763) 226-2707

Facsimile:       (763) 226-2719

E-mail :           rpeterson@advancedbioenergy.com

DAKOTA FUELS, INC.

10201 Wayzata Blvd, Suite 250

Minneapolis, MN 55305

Attention:        Richard R. Peterson

Telephone:      (763) 226-2707

Facsimile:       (763) 226-2719

E-mail:            rpeterson@advancedbioenergy.com

5.06 - 1

 

III. LENDERS:

WESTLB AG, NEW YORK BRANCH

7 World Trade Center

250 Greenwich Street

New York, NY 10007

Attention:        Andrea Bailey

Telephone:      (212) 597-1158

Facsimile:       (212) 302-7946

E-mail:            NYC_Agency_Services@WestLB.com

MARSHALL FINANCIAL GROUP, LLC

225 S. Sixth Street

Minneapolis, MN 55402

Attention:        Michael J. Karber

Telephone:      612-376-1479

Fax:                 612-642-8122

Email:            Mike.Karber @osm-mail.com

OSM HEARTLAND, LLC

650 South Third Avenue, Suite 1450

Minneapolis, MN 55414

Attention:        Stephanie Lunde

Telephone:      612-376-1486

Fax:                 612-692-5176

Email:            Stephanie.Lunde@osm-mail.com

BANCO SANTANDER S.A., NEW YORK BRANCH

45 East 53rd Street

New York, NY 10022

Attention:        Nuno Andrade

                        Structured Finance

Telephone:      212-350-3684

Facsimile:       212-407-4580

E-mail :          nandrade@santander.us

5.06 - 2

 

FARM CREDIT BANK OF TEXAS

4801 Plaza on the Lake Dr.

Austin, TX 78746

Attention:        Alan Robinson

Telephone:      512-465-0627

Facsimile:       512-465-0632

E-mail :          alan.robinson@farmcreditbank.com

COÖPERATIEVE CENTRALE RAIFFEISEN-

BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW

YORK BRANCH

245 Park Avenue

New York, NY 10167-0062

Attention:        Andrew Sherman

                        Legal Dept.

Telephone:      212-808-2513

Facsimile:       212-916-7880

E-mail :          Andrew.Sherman@rabobank.com

With a copy to:

COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK

 B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH

245 Park Avenue

New York, NY 10167 — 0062

Attention:        John McMahon

                        Senior Credit Officer/Special Asset Management

Telephone:      212-916-3718

Fax:                 212-916-7821

E-mail:            John.McMahon@rabobank.com

NORDKAP BANK AG

Thurgauerstrasse 54

CH-8050 Zurich

Switzerland

Attention:        Head of Business Administration

Telephone:      +41 44 306 49 10

Facsimile:       +41 44 306 49 11

E-mail :           isabelle.scherer@nordkapbank.com

5.06 - 3

 

KEB NY FINANCIAL CORP.

460 Park Avenue, 14th Fl.

New York, NY 10022

Attention:       Seoung Wook Hwang, VP

Telephone:      212-350-7415

Facsimile:       212-371-5290

E-mail:           swhwang@kebus.com

VI. ADMINISTRATIVE AGENT:

WESTLB AG, NEW YORK BRANCH

7 World Trade Center

250 Greenwich Street

New York, NY 10007

Attention:        Andrea Bailey

Telephone:      (212) 597-1158

Facsimile:       (212) 302-7946

E-mail:            NYC_Agency_Services@WestLB.com

V. COLLATERAL AGENT:

WESTLB AG, NEW YORK BRANCH

7 World Trade Center

250 Greenwich Street

New York, NY 10007

Attention:       Thomas Brensic

Telephone:      212 597-1153

Facsimile:       212 597-1490

Email:           Thomas_Brensic@westlb.com

Group e-mail: NYC_Documents_Groups@WestLB.com

VI. SUBORDINATED BONDHOLDER:

OPPENHEIMER ROCHESTER NATIONAL MUNICIPALS

350 Linden Oaks

Rochester, NY 14625

Attention:       Matthew Torpey, Senior Credit Analyst

Telephone:     585-383-1300 x103

Facsimile:      585-383-1629

E-mail:           mtorpey@oppenheimerfunds.com

5.06 - 4

 

VII. BOND TRUSTEE:

WELLS FARGO BANK, NATIONAL ASSOCIATION, AS
 TRUSTEE OF THE BROWN COUNTY, SOUTH
DAKOTA
 SUBORDINATE SOLID WASTE FACILITIES REVENUE BONDS
 (HEARTLAND GRAIN FUELS,
L.P. ETHANOL PLANT
 PROJECT) SERIES 2007A

MAC N9311-115

625 Marquette Avenue, 11th Floor

Minneapolis, MN 55479

Attn:
              Michael Slade

Telephone:      612-667-1984

Facsimile:       612-667-5047

VIII. ISSUER:

BROWN COUNTY, SOUTH DAKOTA

Brown County Courthouse

25 Market Street, Suite 1

Brown County Auditor Office

Aberdeen, SD 57401

Attention:        Tom Fischbach

Telephone:      (605) 626-7110

Facsimile:       (605) 626-4010

E-mail :           auditor@brown.sd.us

5.06 - 5

 

EXHIBIT A

to Restructuring Agreement

FEES AND EXPENSES OF SUBORDINATED CLAIMHOLDERS

Fees of Issuer’s counsel in the amount of sixteen thousand four hundred ninety five Dollars and
sixteen cents ($16,495.16) shall be transferred to the following bank account:

US Bank, Minneapolis, MN

(St. Paul Office — ABA routing number 091000022)

for benefit of Briggs and Morgan P.A.

Account Number 1 801 1108 3713

Swift code: US BK US 44IMT

A - 1exv10w2

Exhibit 10.2

EXECUTION VERSION

 

AMENDED AND RESTATED SENIOR CREDIT AGREEMENT

dated as of June 16, 2010

among

ABE SOUTH DAKOTA, LLC,

as Borrower,

THE LENDERS REFERRED TO HEREIN,

WESTLB AG, NEW YORK BRANCH,

as Administrative Agent for the Lenders,

and

WESTLB AG, NEW YORK BRANCH,

as Collateral Agent for the Senior Secured Parties

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE I DEFINITIONS AND INTERPRETATION
	 	 	2	 
	 
	 	 	 	 	 	 
	Section 1.01
	 	Defined Terms	 	 	2	 
	Section 1.02
	 	Principles of Interpretation	 	 	2	 
	Section 1.03
	 	UCC Terms	 	 	3	 
	Section 1.04
	 	Accounting and Financial Determinations	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE II THE LOANS	 	 	4	 
	 
	 	 	 	 	 	 
	Section 2.01
	 	Loans	 	 	4	 
	Section 2.02
	 	Evidence of Indebtedness	 	 	4	 
	 
	 	 	 	 	 	 
	ARTICLE III REPAYMENTS, PREPAYMENTS, INTEREST AND FEES	 	 	5	 
	 
	 	 	 	 	 	 
	Section 3.01
	 	Repayment of Loans	 	 	5	 
	Section 3.02
	 	Interest Payment Dates	 	 	6	 
	Section 3.03
	 	Interest Rates	 	 	7	 
	Section 3.04
	 	Default Interest Rate	 	 	8	 
	Section 3.05
	 	Interest Rate Determination	 	 	8	 
	Section 3.06
	 	Computation of Interest and Fees	 	 	8	 
	Section 3.07
	 	Optional Prepayment	 	 	9	 
	Section 3.08
	 	Mandatory Prepayment	 	 	9	 
	Section 3.09
	 	Provisions Applicable to All Prepayments	 	 	10	 
	Section 3.10
	 	Time and Place of Payments	 	 	10	 
	Section 3.11
	 	Fundings and Payments Generally	 	 	10	 
	Section 3.12
	 	Fees	 	 	11	 
	Section 3.13
	 	Pro Rata Treatment	 	 	11	 
	Section 3.14
	 	Sharing of Payments	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE IV EURODOLLAR RATE AND TAX PROVISIONS	 	 	12	 
	 
	 	 	 	 	 	 
	Section 4.01
	 	Eurodollar Rate Lending Unlawful	 	 	12	 
	Section 4.02
	 	Inability to Determine Eurodollar Rates	 	 	13	 
	Section 4.03
	 	Increased Eurodollar Loan Costs	 	 	14	 
	Section 4.04
	 	Obligation to Mitigate	 	 	14	 
	Section 4.05
	 	Funding Losses	 	 	15	 
	Section 4.06
	 	Increased Capital Costs	 	 	15	 
	Section 4.07
	 	Taxes	 	 	15	 
	Section 4.08
	 	Replacement of Lender	 	 	17	 
	Section 4.09
	 	Defaulting Lenders	 	 	18	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES	 	 	18	 
	 
	 	 	 	 	 	 
	Section 5.01
	 	Organization; Power; Compliance with Law and Contractual Obligations	 	 	18	 
	Section 5.02
	 	Due Authorization; Non-Contravention	 	 	19	 
	Section 5.03
	 	Governmental Approvals	 	 	19	 
	Section 5.04
	 	Investment Company Act	 	 	20	 
	Section 5.05
	 	Validity	 	 	20	 
	Section 5.06
	 	Financial Information	 	 	21	 
	Section 5.07
	 	No Material Adverse Effect	 	 	21	 
	Section 5.08
	 	Project Compliance	 	 	21	 
	Section 5.09
	 	Litigation	 	 	21	 
	Section 5.10
	 	Sole Purpose Nature; Business	 	 	21	 
	Section 5.11
	 	Contracts	 	 	22	 
	Section 5.12
	 	Collateral	 	 	22	 
	Section 5.13
	 	Ownership of Properties	 	 	23	 
	Section 5.14
	 	Taxes	 	 	24	 
	Section 5.15
	 	Patents, Trademarks, Etc	 	 	24	 
	Section 5.16
	 	ERISA Plans	 	 	25	 
	Section 5.17
	 	Property Rights, Utilities, Supplies Etc	 	 	25	 
	Section 5.18
	 	No Defaults	 	 	25	 
	Section 5.19
	 	Environmental Warranties	 	 	25	 
	Section 5.20
	 	Regulations T, U and X	 	 	26	 
	Section 5.21
	 	Accuracy of Information	 	 	27	 
	Section 5.22
	 	Indebtedness	 	 	27	 
	Section 5.23
	 	Separateness	 	 	27	 
	Section 5.24
	 	Required LLC Provisions	 	 	27	 
	Section 5.25
	 	Subsidiaries	 	 	27	 
	Section 5.26
	 	Foreign Assets Control Regulations, Etc	 	 	27	 
	Section 5.27
	 	Solvency	 	 	28	 
	Section 5.28
	 	Legal Name and Place of Business	 	 	28	 
	Section 5.29
	 	No Brokers	 	 	28	 
	Section 5.30
	 	Insurance	 	 	28	 
	Section 5.31
	 	Accounts	 	 	29	 
	 
	 	 	 	 	 	 
	ARTICLE VI CONDITIONS PRECEDENT	 	 	29	 
	 
	 	 	 	 	 	 
	Section 6.01
	 	Conditions to Effectiveness	 	 	29	 
	 
	 	 	 	 	 	 
	ARTICLE VII COVENANTS	 	 	35	 
	 
	 	 	 	 	 	 
	Section 7.01
	 	Affirmative Covenants	 	 	35	 
	Section 7.02
	 	Negative Covenants	 	 	45	 
	Section 7.03
	 	Reporting Requirements	 	 	50	 
	 
	 	 	 	 	 	 
	ARTICLE VIII DEFAULT AND ENFORCEMENT	 	 	56	 
	 
	 	 	 	 	 	 
	Section 8.01
	 	Events of Default	 	 	56	 
	Section 8.02
	 	Action Upon Bankruptcy	 	 	64	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Section 8.03
	 	Action Upon Other Event of Default	 	 	64	 
	Section 8.04
	 	Application of Proceeds	 	 	64	 
	 
	 	 	 	 	 	 
	ARTICLE IX THE AGENTS	 	 	65	 
	 
	 	 	 	 	 	 
	Section 9.01
	 	Appointment and Authority	 	 	65	 
	Section 9.02
	 	Rights as a Lender	 	 	67	 
	Section 9.03
	 	Exculpatory Provisions	 	 	67	 
	Section 9.04
	 	Reliance by Agents	 	 	69	 
	Section 9.05
	 	Delegation of Duties	 	 	70	 
	Section 9.06
	 	Resignation or Removal of Agent	 	 	70	 
	Section 9.07
	 	No Amendment to Duties of Agent Without Consent	 	 	71	 
	Section 9.08
	 	Non-Reliance on Agent and Other Lenders	 	 	71	 
	Section 9.09
	 	[Intentionally Omitted]	 	 	71	 
	Section 9.10
	 	Collateral Agent May File Proofs of Claim	 	 	71	 
	Section 9.11
	 	Collateral Matters	 	 	72	 
	Section 9.12
	 	Copies	 	 	73	 
	Section 9.13
	 	Amendment to Financing Documents	 	 	73	 
	Section 9.14
	 	Indemnification	 	 	74	 
	Section 9.15
	 	No Liability for Clean-up of Hazardous Materials	 	 	74	 
	 
	 	 	 	 	 	 
	ARTICLE X MISCELLANEOUS PROVISIONS	 	 	75	 
	 
	 	 	 	 	 	 
	Section 10.01
	 	Amendments, Etc	 	 	75	 
	Section 10.02
	 	Applicable Law; Jurisdiction; Etc	 	 	77	 
	Section 10.03
	 	Assignments	 	 	79	 
	Section 10.04
	 	Benefits of Agreement	 	 	83	 
	Section 10.05
	 	Consultants	 	 	83	 
	Section 10.06
	 	Costs and Expenses	 	 	83	 
	Section 10.07
	 	Counterparts; Effectiveness	 	 	84	 
	Section 10.08
	 	Indemnification by the Borrower	 	 	84	 
	Section 10.09
	 	Interest Rate Limitation	 	 	86	 
	Section 10.10
	 	No Waiver; Cumulative Remedies	 	 	87	 
	Section 10.11
	 	Notices and Other Communications	 	 	87	 
	Section 10.12
	 	Patriot Act Notice	 	 	90	 
	Section 10.13
	 	Payments Set Aside	 	 	90	 
	Section 10.14
	 	Right of Setoff	 	 	90	 
	Section 10.15
	 	Severability	 	 	91	 
	Section 10.16
	 	Survival	 	 	91	 
	Section 10.17
	 	Treatment of Certain Information; Confidentiality	 	 	91	 
	Section 10.18
	 	Waiver of Consequential Damages, Etc	 	 	93	 
	Section 10.19
	 	Waiver of Litigation Payments	 	 	93	 
	Section 10.20
	 	CONDITIONS DEEMED SATISFIED BY DELIVERY OF SIGNATURE	 	 	93	 
	Section 10.21
	 	Consent to Modifications to Borrower Organic Documents	 	 	93	 

iv

 

	 	 	 	 	 	 	 
	SCHEDULES
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Schedule 2.01
	 	Lenders, Loans and Offices	 	 	 	 
	Schedule 5.03
	 	Necessary Project Approvals	 	 	 	 
	Part A
	 	Existing Project Approvals	 	 	 	 
	Part B
	 	Deferred Approvals	 	 	 	 
	Schedule 5.11
	 	Existing Contracts	 	 	 	 
	Schedule 5.12(c)
	 	Security Filings	 	 	 	 
	Schedule 5.16
	 	Prior Plans or Multiemployer Plans of Borrower and its ERISA Affiliates	 	 	 	 
	Schedule 5.24(a)
	 	Required Borrower LLC Provisions	 	 	 	 
	Schedule 5.24(b)
	 	Required Pledgor LLC Provisions	 	 	 	 
	Schedule 5.28
	 	Prior Legal Names of Borrower	 	 	 	 
	Schedule 7.01(h)
	 	Insurance	 	 	 	 
	Schedule 10.11(a)
	 	Notice Information	 	 	 	 
	 
	 	 	 	 	 	 
	EXHIBITS
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Exhibit A
	 	Defined Terms	 	 	 	 
	Exhibit B
	 	Form of Notes	 	 	 	 
	Exhibit C
	 	Lender Statement—Section 881(c)(3)(A) of the Code	 	 	 	 
	Exhibit D
	 	Form of Insurance Consultant's Certificate	 	 	 	 
	Exhibit E
	 	Form of Operating Statement	 	 	 	 
	Exhibit F
	 	Form of Interest Period Notice	 	 	 	 
	Exhibit G
	 	Form of Debt Service LC Waiver Letter	 	 	 	 
	Exhibit H
	 	Form of Lender Assignment Agreement	 	 	 	 
	Exhibit I
	 	Form of Cash Flow Forecast	 	 	 	 

v

 

     This AMENDED AND RESTATED SENIOR CREDIT AGREEMENT (this “Agreement”), dated as of June
16, 2010, is by and among ABE SOUTH DAKOTA, LLC (f/k/a Heartland Grain Fuels, L.P.), a Delaware
limited liability company (“Borrower”), each of the Lenders from time to time party hereto,
WESTLB AG, NEW YORK BRANCH, as administrative agent for the Lenders and WESTLB AG, NEW YORK BRANCH,
as collateral agent for the Senior Secured Parties.

RECITALS

     WHEREAS, pursuant to a Senior Credit Agreement, dated as of October 1, 2007 (the “Original
Credit Agreement”), among the Borrower, each of the lenders party thereto (the “Original
Lenders”), the Administrative Agent, the Collateral Agent, WestLB AG, New York Branch, as
issuing bank with respect to the letters of credit, and WestLB AG, New York Branch, as lead
arranger, sole bookrunner and syndication agent, the Original Lenders made certain construction,
term and working capital loans (the “Original Loans”) to the Borrower to, among other
things, (a) refinance existing indebtedness of the Borrower with respect to the operating ethanol
plant of the Borrower located in Huron, South Dakota, producing approximately thirty (30) million
gallons-per-year of denatured ethanol, together with distillers grains, and the operating ethanol
plant of the Borrower located in Aberdeen, South Dakota, producing approximately nine (9) million
gallons-per-year of denatured ethanol, together with distillers grains, (b) to finance the
ownership, development, engineering, construction, testing and operation of an expansion ethanol
plant located at the same Site in Aberdeen, South Dakota, which plant has been constructed and is
producing approximately forty (40) million gallons-per-year of denatured ethanol, together with
distillers grains and (c) to provide for the Borrower’s working capital needs;

     WHEREAS, certain Events of Default have occurred under the Original Credit Agreement as a
result of the failure of the Borrower to make certain interest and principal payments on the
Original Loans;

     WHEREAS, pursuant to a Forbearance Agreement, dated on or about January 9, 2009 (the
“Forbearance Agreement”), between the Borrower, Dakota Fuels, Inc. and ABE Heartland, LLC,
as the loan parties, and the Original Lenders (as Lenders and, in certain instances, as Interest
Rate Protection Providers (as each such term is defined in the Original Credit Agreement) party
thereto, the Administrative Agent and the Collateral Agent, as the forbearing parties, such
forbearing parties agreed to forbear from exercising certain rights and remedies under the Original
Credit Agreement and the other Financing Documents (as defined in the Original Credit Agreement)
for a period to end no later than March 31, 2009;

 

 

     WHEREAS, the Forbearance Agreement has terminated pursuant to its terms, and the Borrower
remains in default under the Original Credit Agreement;

     WHEREAS, the Borrower has converted from a Delaware limited partnership into a Delaware
limited liability company;

     WHEREAS, pursuant to a Restructuring Agreement, dated as of the date hereof (the
“Restructuring Agreement”), among the Borrower, Dakota Fuels, Inc., ABE Heartland, LLC,
Advanced BioEnergy, LLC, Wells Fargo Bank, National Association, in its capacity as trustee of the
Brown County, South Dakota Subordinate Solid Waste Facilities Revenue Bonds (Heartland Grain Fuels,
L.P. Ethanol Plant Project) Series 2007A (such trustee, the “Bond Trustee” and such bonds,
the “Subordinated Bonds”), the holders of the Subordinated Bonds, Brown County, South
Dakota, as issuer of the Subordinated Bonds (the “Issuer”), the Administrative Agent, the
Collateral Agent and the Original Lenders, as of the Effective Date the parties thereto have agreed
to restructure the Original Loans and to fully cancel all outstanding obligations under the
Subordinated Loan Agreement and the other financing documents related thereto in accordance with
the terms of the Restructuring Agreement;

     WHEREAS, in accordance with the terms of the Restructuring Agreement, and in order to
facilitate the restructuring of the Original Loans contemplated thereby, the parties hereto have
agreed to enter into this Agreement to amend and restate the Original Credit Agreement in its
entirety.

     NOW, THEREFORE, the parties hereto agree to amend and restate the Original Credit Agreement as
follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION

     Section 1.01 Defined Terms. Capitalized terms used in this Agreement, including its
preamble and recitals, shall, except as otherwise defined herein or where the context otherwise
requires, have the meanings provided in Exhibit A.

     Section 1.02 Principles of Interpretation. (a) Unless otherwise defined or the
context otherwise requires, terms for which meanings are provided in this Agreement shall have the
same meanings when used in each other Financing Document and each other notice or other
communication delivered from time to time in connection with any Financing Document.

2

 

     (b) Unless the context requires otherwise, any reference in this Agreement to any Transaction
Document shall mean such Transaction Document and all schedules, exhibits and attachments thereto.

     (c) All agreements, contracts or documents defined or referred to herein shall mean such
agreements, contracts or documents as the same may from time to time be supplemented, amended or
replaced or the terms thereof waived or modified to the extent permitted by, and in accordance
with, the terms thereof and this Agreement, and shall disregard any supplement, amendment,
replacement, waiver or modification made in violation of this Agreement.

     (d) Any reference in any Financing Document relating to a Default or an Event of Default that
has occurred and is continuing (or words of similar effect) shall be understood to mean that such
Default or Event of Default, as the case may be, has not been cured or remedied to the satisfaction
of, or has not been waived by, the Required Lenders.

     (e) The term “knowledge” in relation to the Borrower, and any other similar expression, shall
mean knowledge of the Borrower after due inquiry.

     (f) Defined terms in this Agreement shall include in the singular number the plural and in the
plural number the singular.

     (g) The words “herein,” “hereof” and “hereunder” and words of similar import when used in this
Agreement shall, unless otherwise expressly specified, refer to this Agreement as a whole and not
to any particular provision of this Agreement and all references to Articles, Sections,
Exhibits and Schedules shall be references to Articles, Sections, Exhibits and Schedules of this
Agreement, unless otherwise specified.

     (h) The words “include,” “includes” and “including” are not limiting.

     (i) The word “or” is not exclusive.

     (j) Any reference to any Person shall include its permitted successors and permitted assigns
in the capacity indicated, and in the case of any Governmental Authority, any Person succeeding to
its functions and capacities.

     Section 1.03 UCC Terms. Unless otherwise defined herein, terms used herein that are
defined in the UCC shall have the respective meanings given to those terms in the UCC.

     Section 1.04 Accounting and Financial Determinations. Unless otherwise specified, all
accounting terms used in any Financing Document shall be

3

 

interpreted, all accounting determinations and computations hereunder or thereunder shall be
made, and all financial statements required to be delivered hereunder or thereunder shall be
prepared, in accordance with GAAP.

ARTICLE II

THE LOANS

     On the terms, subject to the conditions and relying upon the representations and warranties
herein set forth:

     Section 2.01 Loans. (a) As of the Effective Date, the sum of (A) the outstanding
principal amount of the Loans (as defined under the Original Credit Agreement) plus (B) the
amount of all outstanding Swap Termination Value under the Interest Rate Protection Agreements (as
each such term is defined in the Original Credit Agreement), will be deemed senior term loans
disbursed hereunder by the Lenders in an aggregate principal amount equal to eighty-four million
two hundred ninety-one thousand five hundred fifty Dollars ($84,291,550) (such loans, the
“Loans”). Each Lender’s share of the aggregate outstanding principal amount of the Loans
as of the Effective Date is set forth on Schedule 2.01.

     (b) Loans repaid or prepaid may not be reborrowed.

     Section 2.02 Evidence of Indebtedness. (a) The Loans made by each Lender shall be
evidenced by one or more accounts or records maintained by such Lender and by the Administrative
Agent in the ordinary course of business, including the Register for the recordation of the Loans
maintained by the Administrative Agent in accordance with the provisions of Section 10.03(c)
(Assignments). The accounts or records maintained by the Administrative Agent and each Lender
shall be conclusive evidence, absent manifest error, of the amount of the Loans made by the Lenders
to the Borrower and the interest and payments thereon. Any failure to so record or any error in
doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to
pay any amount owing with respect to the Obligations. In the event of any conflict between the
accounts and records maintained by any Lender and the accounts and records of the Administrative
Agent in respect of such matters, the accounts and records of the Administrative Agent shall
control, absent manifest error.

     (b) The Borrower agrees that in addition to the Register and any other accounts and records
maintained pursuant to Section 2.02(a) (Evidence of Indebtedness), the Loans made by each
Lender shall be evidenced by a Note or Notes duly executed on behalf of the Borrower. Notes shall
be dated the Effective Date (or, if later, the date of any request therefor by a Lender). Each
such Note shall be payable to such Lender or its

4

 

registered assigns in a principal amount equal to the principal amount of Loans allocated to
such Lender as set forth on Schedule 2.01. Each Lender may attach schedules to its Note
and endorse thereon the date, amount and maturity of its Loan and payments with respect thereto.

     (c) The Borrower acknowledges and agrees that the Lenders have no commitment or obligation
hereunder to provide Loans or other extensions of credit except as provided in Section
2.01(a).

ARTICLE III

REPAYMENTS, PREPAYMENTS, INTEREST AND FEES

     Section 3.01 Repayment of Loans. (a) The Borrower unconditionally and irrevocably
promises to pay to the Administrative Agent for the ratable account of each Lender the aggregate
outstanding principal amount of the Loans, on each date set forth below, in the respective amounts
set forth below opposite each such date (which amounts shall be reduced in inverse order of
maturity as a result of any prepayments of the Loans made in accordance with Section 3.07
(Optional Prepayment) or Section 3.08 (Mandatory Prepayment) in accordance with the
terms set forth therein).

Loans

	 	 	 	 	 
	Date	 	Principal Amount	 
	June 30, 2010	 	$	750,000	 
	September 30, 2010	 	$	750,000	 
	December 31, 2010	 	$	750,000	 
	March 31, 2011	 	$	750,000	 
	June 30, 2011	 	$	750,000	 
	September 30, 2011	 	$	750,000	 
	December 31, 2011	 	$	750,000	 
	March 31, 2012	 	$	750,000	 
	June 30, 2012	 	$	750,000	 
	September 30, 2012	 	$	750,000	 
	December 31, 2012	 	$	750,000	 
	March 31, 2013	 	$	750,000	 

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	Date	 	Principal Amount	 
	June 30, 2013	 	$	750,000	 
	September 30, 2013	 	$	750,000	 
	December 31, 2013	 	$	750,000	 
	March 31, 2014	 	$	750,000	 
	June 30, 2014	 	$	750,000	 
	September 30, 2014	 	$	750,000	 
	December 31, 2014	 	$	750,000	 
	March 31, 2015	 	$	750,000	 
	June 30, 2015	 	$	750,000	 
	September 30, 2015	 	$	750,000	 
	December 31, 2015	 	$	750,000	 
	Final Maturity Date	 	$	67,041,550	 

     (b) Notwithstanding anything to the contrary set forth in Section 3.01(a), the final
principal repayment installment on the Final Maturity Date shall in any event be in an amount equal
to the aggregate principal amount of all Loans outstanding on such date.

     Section 3.02 Interest Payment Dates. (a) Interest accrued on each Loan shall be
payable, without duplication:

	 	(i)	 	on the Final Maturity Date for such Loan;
	 
	 	(ii)	 	on each Interest Payment Date for such Loan;
and
	 
	 	(iii)	 	with respect to any Loan, on any date when
such Loan is prepaid hereunder on the portion so prepaid.

     (b) Interest accrued on the Loans or other monetary Obligations after the date such amount is
due and payable (whether on the Final Maturity Date for such Loan, any Quarterly Payment Date, any
Interest Payment Date, upon acceleration or otherwise) shall be payable upon demand.

     (c) Interest hereunder shall be due and payable in accordance with the terms hereof, before
and after judgment, regardless of whether an Insolvency or Liquidation Proceeding exists in respect
of the Borrower, and, to the fullest extent

6

 

permitted by law, the Lenders shall be entitled to receive post-petition interest during the
pendency of an Insolvency or Liquidation Proceeding.

     Section 3.03 Interest Rates. (a) Each Eurodollar Loan shall accrue interest at a
rate per annum during each Interest Period applicable thereto equal to the sum of the Eurodollar
Rate for such Interest Period (provided that, if such Interest Period is one (1) or two (2)
months, such Eurodollar Rate shall at a minimum be the Eurodollar Rate for three (3) months) plus
the Applicable Margin and (ii) each Base Rate Loan shall accrue interest at a rate per annum equal
to the sum of the Base Rate plus the Applicable Margin.

     (b) On or before 11:00 a.m., New York City time, at least three (3) Business Days prior to the
Effective Date or the end of each Interest Period for each Eurodollar Loan, and from time to time
upon not fewer than one (1) Business Day prior notice for any Base Rate Loans, the Borrower may
deliver to the Administrative Agent an Interest Period Notice setting forth the Borrower’s election
(i) to continue any such Eurodollar Loan as (or convert any such Base Rate Loan to) a Eurodollar
Loan and setting forth the Borrower’s election with respect to the duration of the next Interest
Period applicable to such continued or converted Eurodollar Loan, which Interest Period shall be
one (1), two (2), three (3) or six (6) months in length, or (ii) to convert any such Eurodollar
Loan to a Base Rate Loan at the end of the then-current Interest Period; provided, that if an Event
of Default has occurred and is continuing, all Eurodollar Loans shall automatically convert into
Base Rate Loans at the end of the then-current Interest Periods. Upon the waiver or cure of such
Event of Default, the Borrower shall have the option to continue such Loans as Base Rate Loans
and/or to convert such Loans to Eurodollar Loans (by delivery of an Interest Period Notice),
subject to the notice periods set forth above. Notwithstanding anything to the contrary, any
portion of the Loans maturing in less than one month may not be continued as, or converted to,
Eurodollar Loans and will automatically convert to Base Rate Loans at the end of the then-current
Interest Period.

     (c) If the Borrower fails to deliver an Interest Period Notice in accordance with Section
3.03(b), (i) with respect to any Eurodollar Loan, such Eurodollar Loan shall automatically
continue as a Eurodollar Loan with an Interest Period of one (1) month or (ii) with respect to any
Base Rate Loan, such Base Rate Loan shall automatically continue as a Base Rate Loan.

     (d) All Eurodollar Loans shall bear interest from and including the first day of the
applicable Interest Period to (and excluding) the last day of such Interest Period at the interest
rate determined as applicable to such Eurodollar Loan.

7

 

     (e) Notwithstanding anything to the contrary, the Borrower shall have, in the aggregate, no
more than five (5) separate Eurodollar Loans outstanding at any one time. For purposes of the
foregoing, (i) Eurodollar Loans having different Interest Periods, regardless of whether they
commence on the same date, shall be considered separate Eurodollar Loans and (ii) all Eurodollar
Loans having the same Interest Period and commencing on the same date shall be considered to be a
single Eurodollar Loan.

     (f) All Base Rate Loans shall bear interest from and including the Effective Date (or the day
on which Eurodollar Loans are converted to Base Rate Loans as required under Section
3.03(b) or under ARTICLE IV (Eurodollar Rate and Tax Provisions)) to (and excluding)
the date when repaid (or the day on which Base Rate Loans are converted to Eurodollar Loans
pursuant to the terms hereof) at the interest rate determined as applicable to such Base Rate Loan.

     Section 3.04 Default Interest Rate. (a) If (i) all or a portion of the principal
amount of any Loan is not paid when due (whether on the Final Maturity Date for such Loan, by
acceleration or otherwise), such overdue amount shall bear interest at a rate per annum equal to
the rate that would otherwise be applicable thereto plus two percent (2%), or (ii) any Obligation
(other than principal on the Loans) is not paid when due (whether on the due date thereof, by
acceleration or otherwise), such overdue amount shall bear interest at a rate per annum equal to
the rate then applicable to Base Rate Loans plus two percent (2%), in each case, with respect to
clauses (i) and (ii) above, from the date of such non-payment until such amount is paid in full
(before as well as after judgment).

     (b) Upon the occurrence and during the continuance of any Event of Default (other than an
Event of Default under Section 8.01(a) (Events of Default — Nonpayment), for which
provision is made in Section 3.04(a)), the Borrower shall pay, in addition to the interest
then payable on any Loan, additional interest (before as well as after judgment) on the Loans at
two percent (2%) per annum (the rate in effect plus such two percent (2%) per annum, the
“Default Rate”) until such Event of Default is cured or waived.

     Section 3.05 Interest Rate Determination. The Administrative Agent shall determine
the interest rate applicable to the Loans in accordance with the terms of this Agreement, and shall
give prompt notice to the Borrower and the Lenders of such determination, and its determination
thereof shall be conclusive, absent manifest error.

     Section 3.06 Computation of Interest and Fees. (a) All computations of interest for
Base Rate Loans when the Base Rate is determined by the Administrative Agent’s “prime rate” shall
be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed.
All computations of interest for Eurodollar Loans and

8

 

for Base Rate Loans when the Base Rate is determined by the Federal Funds Effective Rate shall
be made on the basis of a 360-day year and actual days elapsed.

     (b) Interest shall accrue on each Loan for the day on which the Loan is made or deemed made,
and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such
portion is paid; provided, that any Loan that is repaid on the same day on which it is made
or deemed made shall bear interest for one (1) day.

     (c) Each determination by the Administrative Agent of an interest rate or fee hereunder shall
be conclusive and binding for all purposes, absent manifest error.

     Section 3.07 Optional Prepayment. (a) The Borrower shall have the right at any time,
and from time to time, to prepay the Loans, in whole or in part, upon not fewer than five
(5) Business Days’ prior written notice to the Administrative Agent.

     (b) Any partial prepayment of the Loans shall be in a minimum amount of five hundred thousand
Dollars ($500,000) and in integral multiples of one hundred thousand Dollars ($100,000) in excess
thereof.

     (c) Each notice of prepayment given by the Borrower under this Section 3.07 shall
specify the prepayment date and the portion of the principal amount of Loans to be prepaid.

     Section 3.08 Mandatory Prepayment. The Borrower shall be required to prepay the
Loans:

     (a) upon receipt by the Borrower of Insurance Proceeds as required pursuant to Section 9.01(d)
of the Accounts Agreement;

     (b) upon receipt by the Borrower of Condemnation Proceeds, as required pursuant to
Section 9.01(d) of the Accounts Agreement;

     (c) upon receipt of any Project Document Termination Payments, as required pursuant to
Section 10.01(c)(ii) of the Accounts Agreement;

     (d) upon receipt of proceeds of any asset disposal (other than proceeds received from the sale
of Products) that are not used for replacement in accordance with Section 10.01(b)(ii) of the
Accounts Agreement; and

     (e) on each Quarterly Payment Date as required pursuant to Section 4.01(c)(ix) of the Accounts
Agreement.

9

 

     Section 3.09 Provisions Applicable to All Prepayments. (a) All prepayments under
Section 3.07 (Optional Prepayment) or Section 3.08 (Mandatory Prepayment) shall be made by the
Borrower to the Administrative Agent for the account of the Lenders, and shall be accompanied by
accrued interest on the principal amount being prepaid to but excluding the date of payment and any
additional amounts required to be paid under Section 4.05 (Funding Losses).

     (b) Amounts of principal prepaid under Section 3.07 (Optional Prepayment) or
Section 3.08 (Mandatory Prepayment) shall be applied by the Administrative Agent to the
remaining outstanding installments of principal of the Loans under Section 3.01(a) in
inverse order of maturity.

     (c) Loans prepaid pursuant to Section 3.07 (Optional Prepayment) or Section 3.08
(Mandatory Prepayment) may not be reborrowed.

     Section 3.10 Time and Place of Payments. (a) The Borrower shall make each payment
(including any payment of principal or interest on any Loan or any Fees or other Obligations)
hereunder and under any other Financing Document without setoff, deduction or counterclaim not
later than 11:00 a.m., New York City time on the date when due in Dollars in immediately available
funds to the Administrative Agent at the following account: JPMorgan Chase Bank (Swift ID:
CHASUS33XXX), Account Number: 920-1-060663, for the Account of WESTLB AG, NY Branch, ABA
#021000021, Ref: ABE SOUTH DAKOTA, LLC or at such other office or account as may from time to time
be specified by the Administrative Agent to the Borrower. Funds received after 11:00 a.m. New York
City time shall be deemed to have been received by the Administrative Agent on the next succeeding
Business Day.

     (b) The Administrative Agent shall promptly remit in immediately available funds to each
Senior Secured Party its share, if any, of any payments received by the Administrative Agent for
the account of such Senior Secured Party.

     (c) Whenever any payment (including any payment of principal of or interest on any Loan or any
Fees or other Obligations) hereunder or under any other Financing Document shall become due, or
otherwise would occur, on a day that is not a Business Day, such payment shall (except as otherwise
required by the proviso to the definition of “Interest Period” with respect to Eurodollar Loans) be
made on the immediately succeeding Business Day, and such increase of time shall in such case be
included in the computation of interest or Fees, if applicable.

     Section 3.11 Fundings and Payments Generally. (a) Unless the Administrative Agent
has received notice from the Borrower prior to the date on which any payment is due to the
Administrative Agent for the account of the Lenders hereunder

10

 

that the Borrower will not make such payment, the Administrative Agent may assume that the
Borrower has made such payment on such date in accordance with this Agreement and may, in reliance
upon such assumption, distribute to the Lenders the amount due. If the Borrower has not in fact
made such payment, then each of the Lenders severally agrees to repay to the Administrative Agent
forthwith on demand the amount so distributed to such Lender in immediately available funds with
interest thereon, for each day from and including the date such amount is distributed to it to but
excluding the date of payment to the Administrative Agent, at the greater of (i) the Federal Funds
Effective Rate and (ii) a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation. A notice by the Administrative Agent to any Lender with
respect to any amount owing under this Section 3.11(a) shall be conclusive, absent manifest
error.

     (b) Nothing herein shall be deemed to obligate any Lender to obtain funds for any Loan in any
particular place or manner or to constitute a representation by any Lender that it has obtained or
will obtain funds for any Loan in any particular place or manner.

     (c) The Borrower hereby authorizes each Lender, if and to the extent payment owed to such
Lender is not made when due under this Agreement or under the Notes held by such Lender, to charge
from time to time against any or all of the Borrower’s accounts with such Lender (other than, in
the event that the Accounts Bank is also a Lender, any Project Account) any amount so due.

     Section 3.12 Fees. (a) On the earlier of the Final Maturity Date and the date the
outstanding Loans are repaid or prepaid in full, the Borrower agrees to pay to the Administrative
Agent for the account of the Lenders a restructuring fee equal to three million Dollars
($3,000,000).

     (b) The Borrower agrees to pay to the Administrative Agent for the account of the Lenders and
the Agents additional fees in the amounts and at the times from time to time agreed in writing by
the Borrower and the Agents, including pursuant to the Fee Letters.

     (c) All Fees shall be paid on the dates due, in immediately available funds. Once paid, none
of the Fees shall be refundable under any circumstances.

     Section 3.13 Pro Rata Treatment. Except as required under ARTICLE IV (Eurodollar
Rate and Tax Provisions), (a) each payment or prepayment of principal of the Loans shall be
allocated by the Administrative Agent pro rata among the Lenders in accordance with
their Loan Percentages, (b) each payment of interest on the Loans shall be allocated by the
Administrative Agent pro rata among the Lenders in accordance with

11

 

the respective interest amounts outstanding on their outstanding Loans and (c) each payment of
Fees pursuant to Section 3.12(a) (Fees) shall be allocated by the Administrative Agent
pro rata among the Lenders in accordance with their Loan Percentages.

     Section 3.14 Sharing of Payments. (a) If any Lender obtains any payment or other
recovery (whether voluntary, involuntary, by application of setoff or otherwise) on account of any
Loan (other than pursuant to the terms of ARTICLE IV (Eurodollar Rate and Tax Provisions))
in excess of its pro rata share of payments then or therewith obtained by all Lenders, such Lender
shall purchase from the other Lenders such participations in Loans made by them as shall be
necessary to cause such purchasing Lender to share the excess payment or other recovery ratably
with each of them; provided, however, that if all or any portion of the excess payment or other
recovery is thereafter recovered from such purchasing Lender, the purchase shall be rescinded and
each Lender that has sold a participation to the purchasing Lender shall repay to the purchasing
Lender the purchase price to the ratable extent of such recovery together with an amount equal to
such selling Lender’s ratable share (according to the proportion of (x) the amount of such selling
Lender’s required repayment to the purchasing Lender to (y) the total amount so recovered from the
purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in
respect of the total amount so recovered. The Borrower agrees that any Lender so purchasing a
participation from another Lender pursuant to this Section 3.14 may, to the fullest extent
permitted by law, exercise all of its rights of payment (including pursuant to Section 10.14
(Right of Setoff)) with respect to such participation as fully as if such Lender were
the direct creditor of the Borrower in the amount of such participation.

     (b) If under any applicable bankruptcy, insolvency or other similar Law, any Lender receives a
secured claim in lieu of a setoff to which this Section 3.14 applies, such Lender shall, to
the extent practicable, exercise its rights in respect of such secured claim in a manner consistent
with the rights of the Lenders entitled under this Section 3.14 to share in the benefits of
any recovery on such secured claim.

ARTICLE IV

EURODOLLAR RATE AND TAX PROVISIONS

     Section 4.01 Eurodollar Rate Lending Unlawful. (a) If any Lender reasonably
determines (which determination shall, upon notice thereof to the Borrower and the Administrative
Agent, be conclusive and binding on the Borrower absent manifest error) that the introduction of or
any change in or in the interpretation of any Law makes it unlawful, or any central bank or other
Governmental Authority asserts that it is unlawful, for such Lender to make, maintain or fund any
Loan as a Eurodollar Loan,

12

 

the obligations of such Lender to make, maintain or fund any Loan as a Eurodollar Loan shall,
upon such determination, forthwith be suspended until such Lender notifies the Administrative Agent
that the circumstances causing such suspension no longer exist, and all Eurodollar Loans of such
Lender shall automatically convert into Base Rate Loans at the end of the then-current Interest
Periods with respect thereto or sooner, if required by such Law or assertion. Upon any such
conversion the Borrower shall pay any accrued interest on the amount so converted and, if such
conversion occurs on a day other than the last day of the then-current Interest Period for such
affected Eurodollar Loans, such Lender shall be entitled to make a request for, and the Borrower
shall pay, compensation for breakage costs under Section 4.05 (Funding Losses).

     (b) If such Lender notifies the Borrower that the circumstances giving rise to the suspension
described in Section 4.01(a) no longer apply, the Borrower may elect (by delivering an
Interest Period Notice) to convert the principal amount of any such Base Rate Loan to a Eurodollar
Loan in accordance with this Agreement.

     (c) Each Lender shall be entitled to fund and maintain all or any part of a Loan in any manner
it deems fit, it being understood, however, that for the purposes of this Agreement all
determinations hereunder shall be made as if such Lender had actually funded and maintained amounts
bearing interest at a Eurodollar Rate through the purchase of deposits having a maturity
corresponding to the applicable Interest Periods and bearing an interest rate equal to the
appropriate Eurodollar Rate for such Interest Periods.

     Section 4.02 Inability to Determine Eurodollar Rates. (a) In the event, and on each
occasion, the Administrative Agent shall have determined in good faith that for any Eurodollar Loan
(i) Dollar deposits in the amount of such Loan and with an Interest Period similar to such Interest
Period are not generally available in the London interbank market, or (ii) the rate at which such
Dollar deposits are being offered will not adequately and fairly reflect the cost to any Lender of
making, maintaining or funding the principal amount of such Loan during such Interest Period, or
(iii) adequate and reasonable means do not exist for ascertaining LIBOR, the Administrative Agent
shall forthwith notify the Borrower and the Lenders of such determination, whereupon each such
Eurodollar Loan will automatically, on the last day of the then-existing Interest Period for such
Eurodollar Loan, convert into a Base Rate Loan. Each determination by the Administrative Agent
hereunder shall be conclusive, absent manifest error.

     (b) Upon the Administrative Agent’s determination that the condition that was the subject of a
notice under Section 4.02(a) has ceased, the Administrative Agent shall forthwith notify
the Borrower and the Lenders of such determination, whereupon the Borrower may elect (by delivering
an Interest Period Notice) to convert any such Base Rate Loan to a Eurodollar Loan in accordance
with this Agreement.

13

 

     Section 4.03 Increased Eurodollar Loan Costs. If, after the date hereof, the adoption
of any applicable Law or any change therein, or any change in the interpretation or administration
thereof by any Governmental Authority charged with the interpretation or administration thereof, or
compliance by any Lender (or its Eurodollar Office) with any request or directive (whether or not
having the force of law) of any Governmental Authority would increase the cost (other than with
respect to Taxes, which are addressed in Section 4.07 (Taxes)) to such Lender of, or result
in any reduction in the amount of any sum receivable by such Lender (whether of principal, interest
or any other amount) in respect of, making, maintaining or funding (or of its obligation to make,
maintain or fund) the Loans as Eurodollar Loans, then the Borrower agrees to pay to the
Administrative Agent for the account of such Lender the amount of any such increase or reduction.
Such Lender shall promptly notify the Administrative Agent and the Borrower in writing of the
occurrence of any such event, such notice to state the additional amount required to compensate
fully such Lender for such increased cost or reduced amount. Such additional amounts shall be
payable by the Borrower directly to such Lender within five (5) Business Days of delivery of such
notice, and such notice and determination shall be binding on the Borrower, absent manifest error.

     Section 4.04 Obligation to Mitigate. (a) Each Lender agrees that, after it becomes
aware of the occurrence of an event that would entitle it to give notice pursuant to Section
4.01 (Eurodollar Rate Lending Unlawful), Section 4.03 (Increased Eurodollar Loan Costs)
or Section 4.06 (Increased Capital Costs) or to receive additional amounts pursuant to
Section 4.07 (Taxes), such Lender shall use reasonable efforts to make, fund or maintain
its affected Loan through another lending office (i) if as a result thereof the increased costs
would be avoided or materially reduced or the illegality would thereby cease to exist and (ii) if,
in the opinion of such Lender, the making, funding or maintaining of such Loan through such other
lending office would not be disadvantageous to such Lender, contrary to such Lender’s normal
banking practices or violate any applicable Law.

     (b) No change by a Lender in its Domestic Office or Eurodollar Office made for such Lender’s
convenience shall result in any increased cost to the Borrower.

     (c) If any Lender demands compensation pursuant to Section 4.03 (Increased Eurodollar Loan
Costs) or Section 4.06 (Increased Capital Costs) with respect to any Eurodollar Loan,
the Borrower may, at any time upon at least three (3) Business Days’ prior notice to such Lender
through the Administrative Agent, elect to convert such Loan to a Base Rate Loan. Thereafter,
unless and until such Lender notifies the Borrower that the circumstances giving rise to such
notice no longer apply, all such Eurodollar Loans by such Lender shall bear interest as Base Rate
Loans. If such Lender notifies the Borrower that the circumstances giving rise to such notice no
longer apply, the Borrower may elect (by delivering an Interest Period Notice) to convert the
principal

14

 

amount of each such Base Rate Loan to a Eurodollar Loan in accordance with this Agreement.

     (d) Notwithstanding anything to the contrary in this ARTICLE IV, no Lender shall be
entitled to compensation under Section 4.03 (Increased Eurodollar Loan Costs), Section
4.06 (Increased Capital Costs) or Section 4.07(a)(Taxes — Payments Free of Taxes) for
any amounts incurred or accruing more than 180 days prior to the giving of notice by such Lender to
the Borrower of additional costs of the type described in such Sections, provided, if the
event giving rise to such compensation has retroactive effect, such 180-day period shall be
extended to include the period of retroactive effect.

     Section 4.05 Funding Losses. In the event that any Lender incurs any loss or expense
(including any loss or expense incurred by reason of the liquidation or redeployment of deposits or
other funds acquired by such Lender to make, continue or maintain any portion of the principal
amount of any Loan as a Eurodollar Loan, and any customary administrative fees charged by such
Lender in connection with the foregoing) as a result of any conversion or repayment or prepayment
of the principal amount of any Loans on a date other than the scheduled last day of the Interest
Period applicable thereto, whether pursuant to Section 3.07 (Optional Prepayment),
Section 3.08 (Mandatory Prepayment), Section 4.01(a) (Eurodollar Rate Lending
Unlawful) or otherwise, then, upon the written notice of such Lender to the Borrower (with a
copy to the Administrative Agent), the Borrower shall, within five (5) Business Days of receipt
thereof, pay to the Administrative Agent for the account of such Lender such amount as will (in the
reasonable determination of such Lender) reimburse such Lender for such loss or expense. Such
written notice and determination shall be binding on the Borrower, absent manifest error.

     Section 4.06 Increased Capital Costs. If after the date hereof any change in, or the
introduction, adoption, effectiveness, interpretation, reinterpretation or phase-in of, any
applicable Law, guideline or request (whether or not having the force of law) of any Governmental
Authority, affects the amount of capital required to be maintained by any Lender, and such Lender
reasonably determines that the rate of return on its capital as a consequence of its Loan is
reduced to a level below that which such Lender could have achieved but for the occurrence of any
such circumstance, then, in any such case upon notice from time to time by such Lender to the
Borrower, the Borrower shall pay, within five (5) Business Days after such demand, directly to such
Lender additional amounts sufficient to compensate such Lender for such reduction in rate of
return. A statement of such Lender as to any such additional amount or amounts shall be binding on
the Borrower, absent manifest error.

     Section 4.07 Taxes. (a) Payments Free of Taxes. Any and all payments by or
on account of any Obligations shall be made free and clear of, and without

15

 

deduction for, any Taxes, unless required by Law; provided that if the Borrower shall
be required to deduct any Indemnified Taxes from any such payment, 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 4.07) the Agent or Lender (as the
case may be) receives an amount equal to the sum it would have received had no such deductions been
made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable Law.

     (b) Payment of Other Taxes by the Borrower. In addition, the Borrower shall timely
pay any Indemnified Taxes arising from any payment made under any Financing Document or from the
execution, delivery or enforcement of, or otherwise with respect to, any Financing Document and not
collected by withholding at the source as contemplated by Section 4.07(a) to the relevant
Governmental Authority in accordance with applicable Law.

     (c) Indemnification by the Borrower. The Borrower shall indemnify each Agent and each
Lender, within five (5) Business Days after written demand therefor, for the full amount of any
Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts
payable under this Section 4.07) paid by such Agent or Lender, as the case may be, and any
penalties, interest, additions to tax and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority. A certificate as to the amount of such payment or liability
delivered to the Borrower by a Lender or Agent, as the case may be, shall be conclusive, absent
manifest error.

     (d) Evidence of Payments. As soon as practicable after any payment of Indemnified
Taxes by the Borrower to a Governmental Authority, the Borrower shall 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) Foreign Lenders. Each Lender (including any Participant and any other Person to
which any Lender transfers its interests in this Agreement as provided under Section 10.03
(Assignments)) that is not a United States Person (a “Non-U.S. Lender”) shall deliver
to the Borrower and the Administrative Agent two (2) copies of U.S. Internal Revenue Service Form
W-8ECI, Form W-8BEN or Form W-8IMY (with supporting documentation), or any subsequent versions
thereof or successors thereto, properly completed and duly executed by such Non-U.S. Lender
claiming complete exemption from, or a reduced rate of, U.S. federal withholding tax on all
payments of

16

 

interest by the Borrower under the Financing Documents if such Lender is legally entitled to
so claim, together with, in the case of a Non-U.S. Lender that is relying on an exemption pursuant
to Section 871(h) or 881(c) of the Code, a statement substantially in the form of Exhibit C
certifying that such Lender is not a bank described in Section 881(c)(3)(A) of the Code. Such
forms shall be delivered by each Non-U.S. Lender on or before the date it becomes a party to this
Agreement. In addition, to the extent that it is in a position to legally do so, each Non-U.S.
Lender shall deliver such forms promptly upon the obsolescence or invalidity of any form previously
delivered by such Non-U.S. Lender. Each Non-U.S. Lender shall promptly notify the Borrower and the
Administrative Agent at any time it determines that it is no longer in a position to provide any
previously delivered certificate to the Borrower (or any other form of certification adopted by
U.S. taxing authorities for such purpose). The Borrower shall not be obligated to pay any
additional amounts in respect of U.S. federal income taxes pursuant to this Section 4.07
(or make an indemnification payment pursuant to this Section 4.07) to any Lender (or any
Participant or other Person to which any Lender transfers its interests in this Agreement as
provided under Section 10.03 (Assignments)) if the obligation to pay such additional
amounts (or such indemnification) would not have arisen but for a failure by such Lender to comply
with this Section 4.07(e).

     Section 4.08 Replacement of Lender. (a) The Borrower shall be permitted to replace
(with one or more replacement Lenders) any Lender that requests reimbursement for amounts owing
pursuant to Section 4.03 (Increased Eurodollar Loan Costs), Section 4.06 (Increased
Capital Costs) or Section 4.07(a) (Taxes — Payments Free of Taxes) or any Defaulting
Lender; provided, that (i) such replacement does not conflict with any Law or any
determination of an arbitrator or a court or other Governmental Authority, in each case applicable
to the Borrower or such Lender or to which the Borrower or such Lender or any of their respective
property is subject, (ii) no Default or Event of Default shall have occurred and be continuing at
the time of such replacement, (iii) prior to any such replacement, the Lender to be replaced shall
not have withdrawn such request for reimbursement, or shall not have taken any action under
Section 4.04 (Obligation To Mitigate) so as to eliminate the need for payment of amounts
owing pursuant to Section 4.03 (Increased Eurodollar Loan Costs), Section 4.06
(Increased Capital Costs) or Section 4.07(a) (Taxes — Payments Free of Taxes), (iv) the
replacement Lender shall purchase, at par, the Loans and all other amounts owing to such replaced
Lender prior to the date of replacement, (v) the Borrower shall be liable to such replaced Lender
under Section 4.05 (Funding Losses) if any Eurodollar Loan owing to such replaced Lender is
be prepaid (or purchased) other than on the last day of the Interest Period relating thereto, (vi)
the replacement Lender is an Eligible Assignee, (vii) such replacement is made in accordance with
the provisions of Section 10.03(b) (Assignments) (provided, that the Borrower shall be
obligated to pay the registration and processing fee), (viii) until such time as such replacement
is consummated, the Borrower shall pay

17

 

all additional amounts (if any) required pursuant to Section 4.03 (Increased Eurodollar
Loan Costs), Section 4.06 (Increased Capital Costs) or Section 4.07(a) (Taxes -
Payments Free of Taxes), as the case may be, and (ix) any such replacement shall not be deemed
to be a waiver of any rights that the Borrower, any Agent or any other Lender may have against the
replaced Lender.

     Section 4.09 Defaulting Lenders. Notwithstanding any provision of this Agreement to
the contrary, if at any time during the term of this Agreement any Lender becomes the subject of a
bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian
appointed for it, or has provided its consent to or approval of any such proceeding or appointment
(such Lender, a “Defaulting Lender”), then the outstanding principal amount of Loans held
by such Defaulting Lender shall not be included in determining whether the Required Lenders have
taken or may take any action hereunder; provided, however, that if the Loans held
by such Defaulting Lender are assigned to a replacement Lender pursuant to Section 4.08
(Replacement of Lender), then, subject to Section 4.08 (Replacement of Lender), the
Loans assigned to such replacement Lender shall be included in determining whether the Required
Lenders shall have taken or may take any action hereunder with respect to actions to be taken by
the Lenders from and after the effective date of the assignment of such Loans to such replacement
Lender; provided, that if a consent, waiver or vote of all Lenders is required for any
action under the Financing Documents, then an affirmative consent, waiver or vote of the Defaulting
Lender shall be deemed given if such Defaulting Lender does not provide a written response within
fifteen (15) days after the date of a written notice to the Defaulting Lender requesting such vote
or consent.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

     In order to induce each Agent, each Lender and each other party hereto (other than the
Borrower) to enter into this Agreement, the Borrower represents and warrants to each Agent and each
Lender as set forth in this ARTICLE V on the date hereof and on the Effective Date (except
with respect to representations and warranties that expressly refer to an earlier date).

     Section 5.01 Organization; Power; Compliance with Law and Contractual Obligations.
The Borrower (a) is a limited liability company duly formed, validly existing and in good standing
under the laws of the State of Delaware, (b) is duly qualified to do business as is now being
conducted and as is proposed to be conducted and is in good standing as a foreign limited liability
company in each jurisdiction where the nature of its business requires such qualification (other
than any such failure to be so qualified or in good standing that could not reasonably be expected
to have a Material

18

 

Adverse Effect), (c) has all requisite limited liability company power and authority required
as of the date this representation is made or deemed repeated to enter into and perform its
obligations under each of the SNDAs and each Transaction Document to which it is a party and to
conduct its business as currently conducted by it and (d) is in compliance with all Laws and
Contractual Obligations applicable to it except for any noncompliance that could not reasonably be
expected to have a Material Adverse Effect.

     Section 5.02 Due Authorization; Non-Contravention. The execution, delivery and
performance by the Borrower of each of the SNDAs, Interest Rate Cap Agreements and Transaction
Document to which it is a party are within the Borrower’s limited liability company powers, have
been duly authorized by all necessary limited liability company action, and do not:

     (a) contravene the Borrower’s Organic Documents (including the Borrower LLC Agreement);

     (b) contravene in any material respect any Law binding on or affecting the Borrower;

     (c) contravene any Contractual Obligation binding on or affecting the Borrower;

     (d) require any consent or approval under the Borrower’s Organic Documents that has not been
obtained;

     (e) require any consent or approval under any Contractual Obligation binding on or affecting
the Borrower other than any approvals or consents which have been obtained; or

     (f) result in, or require the creation or imposition of, any Lien on any of the Borrower’s
properties or Equity Interests other than Permitted Liens.

     Section 5.03 Governmental Approvals. (a) All Governmental Approvals that are
required to be obtained by the Borrower in connection with (i) the due execution, delivery and
performance by it of the Transaction Documents to which it is a party (including, without
limitation, the consummation of the transactions contemplated in the Restructuring Agreement), (ii)
the ownership, use and operation of the Project as contemplated by the Transaction Documents, and
(iii) the grant by the Borrower and the Pledgor of the Liens granted under the Security Documents
and the validity, perfection and enforceability thereof (the “Necessary Project Approvals”)
are listed in Schedule 5.03.

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     (b) The
Necessary Project Approvals listed in Part A of Schedule 5.03 have
been obtained, are in full force and effect, have been validly issued and are final and
Non-Appealable.

     (c) the Necessary Project Approvals listed in Part B of Schedule 5.03
(collectively, the “Deferred Approvals”) shall be obtained as set forth in Part B
of Schedule 5.03.

     (d) The Borrower may update and correct, with approval of the Administrative Agent, any
reference to a Necessary Project Approval on Schedule 5.03 that has been replaced in
accordance with applicable Law.

     (e) The information set forth in each application (including any updates or supplements
thereto) submitted by or on behalf of the Borrower in connection with each Necessary Project
Approval that has been submitted as of the date this representation is made or deemed repeated, was
accurate and complete at the time of submission and continues to be accurate and complete, in each
case to the extent required for the issuance or continued effectiveness of such Necessary Project
Approval (except, with respect to continued effectiveness, for Necessary Project Approvals that are
subject to a supplemental filing shown on Part B of Schedule 5.03 that has not yet
been filed), and the Borrower does not have any knowledge of any event, act, condition or state of
facts inconsistent with such information.

     (f) The Borrower reasonably believes that each Necessary Project Approval that remains to be
obtained will be obtained in a final and Non-Appealable form in the ordinary course without undue
delay or material expense and without unanticipated expensive or burdensome conditions prior to the
time it is required to be obtained under applicable Law. There is no action, suit, investigation
or proceeding pending or, to the knowledge of the Borrower, threatened in writing that would
reasonably be expected to result in the material modification, rescission, termination, or
suspension of any Governmental Approval referred to in Schedule 5.03 obtained prior to the
date this representation is made or deemed made.

     Section 5.04 Investment Company Act. The Borrower is not, and after giving effect to
the Loans and the application of the proceeds of the Loans as described herein will not be, an
“investment company” or a company “controlled” by an “investment company,” within the meaning of
the Investment Company Act of 1940, as amended.

     Section 5.05 Validity. Each of the SNDAs, Interest Rate Cap Agreements and
Transaction Documents to which the Borrower is a party has been duly authorized, validly executed
and delivered, and constitutes the legal, valid and binding

20

 

obligations of the Borrower enforceable against the Borrower and, to the Borrower’s actual
knowledge, enforceable against each other party thereto (other than the Senior Secured Parties), in
each case in accordance with its respective terms, except as the enforceability hereof or thereof
may be limited by (i) bankruptcy, insolvency, reorganization, or other similar laws affecting the
enforcement of creditors’ rights generally and (ii) general equitable principles (whether
considered in a proceeding in equity or at law).

     Section 5.06 Financial Information. Each of the financial statements of the Borrower
delivered pursuant hereto has been prepared in accordance with GAAP, and fairly presents in all
material respects the financial condition of the Borrower as at the dates thereof and the results
of their operations for the period then ended (subject, in the case of unaudited financial
statements, to changes resulting from audit and normal year-end adjustments and the absence of
footnotes).

     Section 5.07 No Material Adverse Effect. Since September 30, 2009, no Material
Adverse Effect has occurred and is continuing.

     Section 5.08 Project Compliance. (a) The Project is and will continue to be owned,
operated and maintained in compliance in all material respects with all applicable Laws and the
requirements of all Necessary Project Approvals (including all Deferred Approvals).

     (b) The Project is and will continue to be owned, operated and maintained in compliance in all
material respects with all of the Borrower’s Contractual Obligations (including the Project
Documents).

     Section 5.09 Litigation. (a) No material action, suit, proceeding or investigation
has been instituted or threatened in writing against any of the Borrower, the Pledgor or the
Project (including in connection with any Necessary Project Approval); and

     (b) to the knowledge of the Borrower, no action, suit, proceeding or investigation has been
instituted or threatened against any Project Party that, individually or in the aggregate, has had
or could reasonably be expected to have a Material Adverse Effect.

     Section 5.10 Sole Purpose Nature; Business. The Borrower has not conducted and is not
conducting any business or activities other than businesses and activities relating to the
ownership, development, testing, financing, construction, operation and maintenance of the Project
as contemplated by the Transaction Documents.

21

 

     Section 5.11 Contracts. (a) All contracts, agreements, instruments, letter
agreements, or other documents to which the Borrower is a party or by which it or any of its
properties is bound as of the date hereof (other than the Financing Documents), including the
Project Documents, and all documents amending, supplementing, interpreting or otherwise modifying
or clarifying such contracts, agreements, instruments, letter agreements, understandings and other
documents are listed in Schedule 5.11.

     (b) To the knowledge of the Borrower, all representations, warranties and other factual
statements made by each Project Party in each of the Transaction Documents to which such Project
Party is a party are true and correct as of the date(s) made or deemed repeated (except with
respect to representations and warranties that expressly refer to an earlier date) other than any
such inaccuracies that could not reasonably be expected to have a Material Adverse Effect.

     (c) All conditions precedent to the obligations of the respective parties under the Project
Documents and the Restructuring Agreement that have been executed as of the date this
representation is made or deemed repeated have been satisfied or waived by the parties thereto.

     Section 5.12 Collateral. (a) The Collateral includes all of the Equity Interests in,
and all of the tangible and intangible assets of, the Borrower.

     (b) The Liens and security interests granted to the Collateral Agent (for the benefit of the
Senior Secured Parties) pursuant to the Security Documents (i) constitute, as to personal property
included in the Collateral, a valid first-priority security interest in such personal property and
(ii) constitute, as to the Mortgaged Property included in the Collateral, a valid first-priority
Lien of record in the Mortgaged Property, in each case subject only to Permitted Liens.

     (c) The security interest granted to the Collateral Agent (for the benefit of the Senior
Secured Parties) pursuant to the Security Documents in the Collateral consisting of personal
property will be perfected (i) with respect to any property that can be perfected by filing, upon
the filing of UCC financing statements in the filing offices identified in Schedule
5.12(c), (ii) with respect to any Account Collateral that can be perfected solely by control,
upon execution of the Accounts Agreement and (iii) with respect to any property (if any) that can
be perfected solely by possession, upon the Collateral Agent receiving possession thereof, and in
each case such security interest will be, as to Collateral perfected under the UCC or otherwise as
aforesaid, superior and prior to the rights of all third Persons, and in each case subject only to
Permitted Liens. After giving effect to the filings, registrations and giving of notice referred
to in this sentence, all such action as is necessary has been taken to establish and perfect the
Collateral Agent’s rights in and to the Collateral covered by the

22

 

Security Documents to the extent the Collateral Agent’s security interest can be perfected by
filing, including any recordation, filing, registration, giving of notice or other similar action.
No filing, recordation, re-filing or re-recording other than those listed on Schedule
5.12(c) (as the same may be updated at the written request of the Borrower, with the written
agreement of the Administrative Agent, following any change in applicable Law) is necessary to
perfect (or maintain the perfection of) the interest, title or Liens of the Security Documents (to
the extent the Collateral Agent’s security interest can be perfected by filing or recording), and
on and as of each relevant date on which this representation and warranty is made or deemed
repeated, all such filings or recordings have been made. The Borrower and the Pledgor have
properly delivered or caused to be delivered to the Collateral Agent, or provided the Collateral
Agent control of, all Collateral relating to assets of or equity in the Borrower that requires
perfection of the Liens and security interests described above by possession or control. All or
substantially all of the Collateral relating to assets of or equity in the Borrower (other than the
Account Collateral, certificates, securities, investments, chattel paper, books and records and
general intangibles), including the Mortgaged Property, is or will (when acquired) be located on
the Sites.

     Section 5.13 Ownership of Properties. (a) The Borrower (i) has a good and valid fee
ownership interest in the Sites (except for the Leased Premises), (ii) has a good and valid
leasehold interest in the Leased Premises and (iii) has good and valid easements necessary for the
natural gas transmission pipeline that was constructed pursuant to the Pipeline Construction
Agreement.

     (b) The Borrower has a good and valid ownership interest, leasehold interest, license interest
or other right of use in all other property and assets (tangible and intangible) included in the
Collateral relating to assets of or equity in the Borrower under each Security Document. Such
ownership interests, leasehold interest, license interest or other rights of use are and will be
sufficient to permit operation of the Plants, substantially in accordance with the Project
Documents. To the knowledge of Borrower, none of said properties or assets of or equity in the
Borrower are subject to any other claims of any Person, including any easements, rights of way or
similar agreements affecting the use or occupancy of the Project or the Sites, except for Permitted
Liens.

     (c) All Equity Interests in the Borrower are owned by the Pledgor (except for the Equity
Interests in the Borrower held by its Independent Member).

     (d) The properties and assets of the Borrower are separately identifiable and are not
commingled with the properties and assets of any other Person and are readily distinguishable from
the property and assets of other Persons.

23

 

     (e) The Borrower does not have any leasehold interest in, and is not lessee of, any real
property other than the Leased Premises or other leasehold interests acquired by the Borrower with
the prior written approval of the Administrative Agent.

     (f) There are no easements, rights of way or similar agreements affecting the use or occupancy
of the Project, the Plants or any Site other than Permitted Liens.

     (g) The Borrower has not provided any consent pursuant to Section 3 of the Huron Ground Lease
to the creation of any Lien on the Leased Premises covered by such lease. To the Borrower’s
knowledge, the lessor under the Huron Ground Lease has not created any Liens on the Leased Premises
covered by such lease.

     Section 5.14 Taxes. (a) Except as disclosed on Schedule 5.14, the Borrower
has (i) filed all Tax Returns required by law to have been filed by it and (ii) has paid all Taxes
thereby shown to be owing, as and when the same are due and payable, other than, in the case of
this Section 5.14(a)(ii), (A) Taxes that are subject to a Contest or (B) the nonpayment of
immaterial Taxes in an aggregate amount not in excess of twenty-five thousand Dollars ($25,000) at
any one time outstanding (taking into account any interest and penalties that could accrue or be
applicable to such past-due Taxes), and provided that such Taxes are no more than forty-five (45)
days past due.

     (b) The Borrower is not and will not be taxable as a corporation for federal, state or local
tax purposes.

     (c) The Borrower is not a party to any tax sharing agreement with any Person (including any
Pledgor or any other Affiliate of the Borrower).

     (d) The Borrower has not agreed to extend the statute of limitations period applicable to the
assessment or collection of any Tax.

     (e) The Borrower is not currently under any governmental audit with respect to any Tax for any
period, there are no claims for additional Tax being pursued by any Governmental Authority with
respect to the business, income or activities of the Borrower, and the Borrower is not aware of any
such claims that have not yet been asserted but are likely to be asserted by a Governmental
Authority.

     Section 5.15 Patents, Trademarks, Etc. The Borrower has obtained and holds in full
force and effect all patents, trademarks, copyrights and other such rights or adequate licenses
therein, free from unduly burdensome restrictions, that are necessary for the ownership,
construction, operation and maintenance of the Project.

24

 

     Section 5.16 ERISA Plans. (a) Neither the Borrower nor any of its ERISA Affiliates
has (or, except as set forth on Schedule 5.16, within the five year period immediately
preceding the date hereof had) sponsored, maintained, participated in or incurred any liability in
respect of any Plan or Multiemployer Plan. The Borrower does not have any contingent liability
with respect to any post-retirement benefit under any “welfare plan” (as defined in Section 3(1) of
ERISA), other than liability for continuation coverage under Part 6 of Title I of ERISA or similar
state laws.

     (b) Neither the Borrower nor any ERISA Affiliate has any liability with respect to the
terminated Co-op Retirement Plan (as further described on Schedule 5.16) and all liability
of the Borrower and any ERISA Affiliate with respect to the Co-op Retirement Plan has been fully
satisfied. After due inquiry, neither the Co-op Retirement Plan, the PBGC, any Plan participant or
beneficiary nor any other Person has initiated any claim or other action against the Borrower or
any ERISA Affiliate with respect to the Plan and, to the knowledge of the Borrower, no such claim
or action is threatened or anticipated. Neither the Borrower nor any ERISA Affiliate has any
intention to establish a Plan or Multiemployer Plan to replace the Co-op Retirement Plan.

     Section 5.17 Property Rights, Utilities, Supplies Etc. (a) All material property
interests, utility services, means of transportation, facilities and other materials necessary for
the development, engineering, construction, testing, start-up, use and operation of the Project
(including, as necessary, gas, roads, rail transport, electrical, water and sewage services and
facilities) are available to the Project, and arrangements in respect thereof have been made on
commercially reasonable terms.

     (b) There are no material supplies, materials or equipment necessary for operation or
maintenance of the Project that are not at the Sites on commercially reasonable terms consistent
with the Operating Budget.

     Section 5.18 No Defaults. (a) On the Effective Date, no Default or Event of Default
has occurred and is continuing.

     Section 5.19 Environmental Warranties. (a) (i) The Borrower and its Environmental Affiliates
are in compliance in all material respects with all applicable Environmental Laws, (ii) the
Borrower and its Environmental Affiliates have all Environmental Approvals required to operate
their businesses as presently conducted or as reasonably anticipated to be conducted and are in
compliance in all material respects with the terms and conditions thereof, (iii) neither the
Borrower nor any of its Environmental Affiliates has received any written communication (other than
any such communication that the Administrative Agent has agreed in writing is not materially
adverse) from a Governmental Authority that alleges that the Borrower or any Environmental
Affiliate is not in compliance in all material respects with all

25

 

Environmental Laws and Environmental Approvals, and (iv) there are no circumstances that to
the knowledge of the Borrower may prevent or interfere in the future with the Borrower’s compliance
in all material respects with all applicable Environmental Laws and Environmental Approvals.

     (b) There is no Environmental Claim pending or, to the knowledge of the Borrower, threatened
against the Borrower or the Project. To the knowledge of the Borrower, there is no Environmental
Claim pending or threatened against any Environmental Affiliate.

     (c) There are no present or past actions, activities, circumstances, conditions, events or
incidents, including the release, emission, discharge, presence or disposal of any Material of
Environmental Concern, that could reasonably be expected to form the basis of any Environmental
Claim against the Borrower or any Environmental Affiliate or could otherwise reasonably be expected
to interfere with the operation of the Plants.

     (d) Without in any way limiting the generality of the foregoing, (i) there are no on-site or
off-site locations in which the Borrower or, to the knowledge of Borrower, any Environmental
Affiliate has stored, disposed or arranged for the disposal of Materials of Environmental Concern
that could reasonably be expected to form the basis of an Environmental Claim, (ii) there are no
underground storage tanks located or to be located on property owned or leased by the Borrower,
(iii) there is no asbestos or lead paint contained in or forming part of any building, building
component, structure or office space owned or leased by the Borrower, and (iv) no polychlorinated
biphenyls (PCBs) are or will be used or stored at any property owned or leased by the Borrower,
except in such form, condition and quantity as could not reasonably be expected to result in an
Environmental Claim.

     (e) The Borrower has not received any letter or request for information under Section 104 of
the CERCLA, or comparable state laws, and to the knowledge of the Borrower, none of the operations
of the Borrower is the subject of any investigation by a Governmental Authority evaluating whether
any remedial action is needed to respond to a release or threatened release of any Material of
Environmental Concern at the Project or at any other location, including any location to which the
Borrower has transported, or arranged for the transportation of, any Material of Environmental
Concern with respect to the Project.

     Section 5.20 Regulations T, U and X. The Borrower is not engaged in the business of
extending credit for the purpose of purchasing or carrying margin stock, and no proceeds of any
Loan will be used for any purpose that violates, or would be inconsistent with, F.R.S. Board
Regulation T, U or X. Terms for which meanings are

26

 

provided in F.R.S. Board Regulation T, U or X or any regulations substituted therefor, as from
time to time in effect, are used in this Section 5.20 with such meanings.

     Section 5.21 Accuracy of Information. All factual information heretofore or
contemporaneously furnished by or on behalf of any of the Borrower or the Pledgor in this
Agreement, in any other Transaction Document or otherwise in writing to any Senior Secured Party,
any Consultant, or counsel for purposes of or in connection with this Agreement and the other
Financing Documents or any transaction contemplated hereby or thereby (other than projections,
budgets and other “forward-looking” information that have been prepared on a reasonable basis and
in good faith by the Borrower) is, when taken as a whole, true and accurate in every material
respect and such information is not, when taken as a whole, incomplete by omitting to state any
material fact necessary to make such information not misleading in any material respect.

     Section 5.22 Indebtedness. The Obligations are, after giving effect to the Financing
Documents and the transactions contemplated thereby, the only outstanding Indebtedness of the
Borrower other than Permitted Indebtedness. The Obligations rank at least pari
passu with all other Indebtedness of the Borrower.

     Section 5.23 Separateness. (a) The Borrower maintains separate bank accounts and
separate books of account from the Pledgor. The separate liabilities of the Borrower are readily
distinguishable from the liabilities of each Affiliate of the Borrower, including each of the
Pledgor.

     (b) The Borrower conducts its business solely in its own name in a manner not misleading to
other Persons as to its identity.

     (c) The Borrower is in compliance with the separateness provisions set forth on Schedule
5.24(a).

     Section 5.24 Required LLC Provisions. (a) The Borrower LLC Agreement includes each of
the terms (collectively, the “Required Borrower LLC Provisions”) set forth in Schedule
5.24(a) and (b) the Pledgor LLC Agreement includes each of the terms (collectively, the
“Required Pledgor LLC Provisions”) set forth in Schedule 5.24(b).

     Section 5.25 Subsidiaries. The Borrower has no Subsidiaries.

     Section 5.26 Foreign Assets Control Regulations, Etc. (a) The use of the proceeds of
the Loans by the Borrower will not violate the Trading with the Enemy Act, as amended, or any of
the foreign assets control regulations of the United States

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Treasury Department (31 C.F.R., Subtitle B, Chapter V, as amended) or any enabling legislation
or executive order relating thereto.

     (b) The Borrower:

	 	(i)	 	is not and will not become a Person or entity
described by Section 1 of Executive Order 13224 of September 24, 2001
Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism (12 C.F.R. 595), and the
Borrower does not engage in dealings or transactions with any such
Persons or entities; and
	 
	 	(ii)	 	is not in violation of the Patriot Act.

     Section 5.27 Solvency. On the Effective Date, after giving effect to the transactions
contemplated hereby, the Borrower will be Solvent.

     Section 5.28 Legal Name and Place of Business. (a) The exact legal name and
jurisdiction of formation of the Borrower is: ABE South Dakota, LLC, a limited liability company
organized and existing under the laws of the State of Delaware, and, except as set forth on
Schedule 5.28, the Borrower has not had any other legal names in the previous five (5)
years.

     (b) The sole places of business of the Borrower are Aberdeen, South Dakota, Huron, South
Dakota and Minneapolis, Minnesota, and the chief executive office of the Borrower is Minneapolis,
Minnesota.

     Section 5.29 No Brokers. (a) The Borrower has no obligation to pay any finder’s,
advisory, broker’s or investment banking fee, except for the fees payable pursuant to Section
3.12 (Fees).

     Section 5.30 Insurance. (a) All insurance required to be obtained and maintained
pursuant to the Transaction Documents by the Borrower is in full force and effect and complies with
the insurance requirements set forth on Schedule 7.01(h). All premiums then due and
payable on all such insurance have been paid. To the knowledge of the Borrower, all insurance
required to be obtained and maintained by any Project Party with respect to the Project to protect,
directly or indirectly, against loss or liability to the Borrower, the Project or any Senior
Secured Party pursuant to any Project Document has been obtained, is in full force and effect and
complies with the insurance requirements set forth on Schedule 7.01(h) and is otherwise in
all material respects in accordance with such Project Document.

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     Section 5.31 Accounts. The Borrower does not have, and is not the beneficiary of, any
bank account other than the Project Accounts.

ARTICLE VI

CONDITIONS PRECEDENT

     Section 6.01 Conditions to Effectiveness. The occurrence of the Effective Date is
subject to the satisfaction of each of the following conditions precedent:

     (a) Delivery of Financing Documents. The Administrative Agent shall have received
each of the following fully executed documents, each of which shall be originals, portable document
format (“pdf”) or facsimiles (followed promptly by originals), duly executed and delivered by each
party thereto and in form and substance reasonably satisfactory to each Lender:

	 	(i)	 	this Agreement;
	 
	 	(ii)	 	the original Notes, duly executed and delivered
by an Authorized Officer of the Borrower in favor of each Lender that
has requested a Note;
	 
	 	(iii)	 	the Accounts Agreement;
	 
	 	(iv)	 	the Security Agreement;
	 
	 	(v)	 	the Pledge Agreement;
	 
	 	(vi)	 	the Mortgages;
	 
	 	(vii)	 	the Fee Letters; and
	 
	 	(viii)	 	the Restructuring Agreement.

     (b) Project Documents; Contracts; Consents. (i) The Administrative Agent shall have
received true, correct and complete copies of (A) unless previously delivered to the Administrative
Agent pursuant to the Original Credit Agreement, each of the SNDAs, Interest Rate Cap Agreements
and Project Documents, which shall be in form and substance reasonably satisfactory to the
Administrative Agent and the Independent Engineer and, in the case of the Ethanol Marketing
Agreements and the Distiller’s Grains Marketing Agreement, the Required Lenders, and (B) each other
agreement reasonably requested by the Administrative Agent which, if requested, shall be in form
and substance reasonably satisfactory to the Administrative Agent.

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	 	(ii)	 	Unless previously delivered to the
Administrative Agent pursuant to the Original Credit Agreement or the
Administrative Agent agrees otherwise in writing, the Administrative
Agent shall have received a Consent, in form and substance reasonably
satisfactory to the Administrative Agent (and, in the case of the
Ethanol Marketing Agreements and the Distiller’s Grains Marketing
Agreement, the Required Lenders), with respect to each Project Document
other than the Industry Track Agreement, the Track Area Lease Agreement
and the Trinity Railcar Lease, excluding any such Consent that was
previously delivered to the Administrative Agent pursuant to the
Original Credit Agreement.

     (c) Resolutions, Incumbency, Organic Documents. The Administrative Agent shall have
received from each of the Borrower and the Pledgor a certificate of an Authorized Officer dated as
of the Effective Date, upon which the Administrative Agent and each Lender may conclusively rely,
as to:

	 	(i)	 	satisfactory resolutions of its board of
managers, member(s) or manager(s) (or authorization provided in the
Organic Documents of such Loan Party), as the case may be, then in full
force and effect authorizing the execution, delivery and performance of
(A) each Transaction Document to which it is party (other than any
Transaction Document in respect of which such resolutions were
previously delivered to the Administrative Agent pursuant to the
Original Credit Agreement) and (B) in the case of the Pledgor, the
Borrower LLC Agreement, and, in each case, the consummation of the
transactions contemplated therein;
	 
	 	(ii)	 	the incumbency and signatures of those of its
officers and representatives duly authorized to execute and otherwise
act with respect to each Financing Document to which it is party; and
	 
	 	(iii)	 	such Person’s Organic Documents, which shall
be in form and substance reasonably satisfactory to the Administrative
Agent and shall include (x) in the case of the Borrower, the Required
Borrower LLC Provisions, (y) in the case of the Pledgor, the Required
Pledgor LLC Provisions, and in each case certifying that (A) such
documents are in full force and

30

 

	 	 	 	effect and no term or condition thereof has been amended from the
form attached to such certificate, (B) no material breach,
material default or material violation thereunder has occurred and
is continuing, and (C) the conversion of the Borrower from a
Delaware limited partnership to a Delaware limited liability
company has been completed.

     (d) Authority to Conduct Business. The Administrative Agent shall have received
satisfactory evidence, including certificates of good standing from the Secretaries of State of
each of the following jurisdictions, attesting (where available) that each of the Borrower and the
Pledgor is (i) duly authorized as a limited liability company to carry on its business in the
State of South Dakota and (ii) duly organized, validly existing and in good standing in the State
of Delaware.

     (e) Opinions of Counsel. The Administrative Agent shall have received the following
legal opinions, addressed to the Senior Secured Parties, and each in form and substance reasonably
satisfactory to the Lenders:

	 	(i)	 	the opinion of counsel to Advanced BioEnergy,
LLC, Dakota Fuels., Inc., ABE Heartland, LLC and the Borrower regarding
the effectiveness of the conversion of the Borrower from a Delaware
limited partnership to a Delaware limited liability company;
	 
	 	(ii)	 	the opinion of Delaware and New York counsel to
the Loan Parties; and
	 
	 	(iii)	 	the opinion of South Dakota counsel
satisfactory to the Administrative Agent.

     (f) Lien Search; Perfection of Security. The Collateral Agent shall have been granted
a first priority perfected security interest in all Collateral relating to the Borrower and the
Project, and the Administrative Agent shall have received satisfactory copies or evidence, as the
case may be, of the following actions in connection with the perfection of the Security:

	 	(i)	 	completed requests for information or lien
search reports, dated no more than five (5) days (or such other time
period reasonably acceptable to the Administrative Agent) before the
Effective Date, listing all effective UCC financing statements, fixture
filings or other filings evidencing a security interest filed in
Delaware, South Dakota and any

31

 

	 	 	 	other jurisdictions reasonably requested by the Administrative
Agent that name the Borrower or the Pledgor as a debtor, together
with copies of each such UCC financing statement, fixture filing
or other filings, which shall show no Liens other than Permitted
Liens;
	 	(ii)	 	acknowledgment copies or stamped receipt copies
(or satisfactory confirmation of submission for filing) of proper UCC
financing statements, fixture filings and other filings and
recordations, duly filed in all jurisdictions that the Administrative
Agent may deem necessary or desirable in order to perfect and protect
the first priority Liens and security interests created under the
Security Documents covering the Collateral described therein;
	 
	 	(iii)	 	mortgage release and UCC termination
statements, in proper form for filing in all jurisdictions that the
Administrative Agent may deem necessary or desirable, terminating the
existing mortgages and all existing UCC financing statements and
fixture filings covering the Collateral relating to the Subordinated
Debt (as defined in the Original Credit Agreement), and such mortgage
release and each such UCC termination statement shall be duly filed on
or prior to the Effective Date;
	 
	 	(iv)	 	the original certificates representing all
Equity Interests in the Borrower shall have been delivered to the
Collateral Agent, in each case together with a duly executed
irrevocable proxy and a duly executed transfer power in the forms
attached to the Pledge Agreement relating to such Equity Interests; and
	 
	 	(v)	 	evidence of the completion of all other
actions, recordings and filings of or with respect to the Security
Documents delivered pursuant to Section 6.01(a)(Conditions to
Effectiveness — Delivery of Financing Documents) that the
Administrative Agent may deem necessary or desirable in order to
perfect and protect the first-priority Liens created thereunder.

     (g) Governmental Approvals. Except as provided in Schedule 5.03, the Borrower
shall have obtained all Necessary Project Approvals listed on Part A of

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Schedule 5.03, and the Administrative Agent shall have received a duly executed
certificate of an Authorized Officer of the Borrower certifying that (i) attached to such
certificate are true, correct and complete copies of each such Necessary Project Approval (other
than the Necessary Project Approvals previously delivered to the Administrative Agent pursuant to
the Original Credit Agreement), each of which was duly obtained, is validly issued, is in full
force and effect and is final and Non-Appealable, (ii) all Necessary Project Approvals required for
the Project at a later date will be obtained in due course prior to the time when needed and
without conditions that would impose material expense on the Project, (iii) Schedule 5.03
accurately identifies all Necessary Project Approvals necessary for the Project, and (iv) the
actions identified in Schedule 5.03 comprise all actions necessary or desirable for the
continued effectiveness or replacement of such Necessary Project Approvals, each such action to be
completed prior to the Effective Date has been completed, and each other such action will be timely
completed.

     (h) Third Party Approvals. The Administrative Agent shall have received reasonably
satisfactory documentation of any approval by any Person required in connection with any
transaction contemplated by this Agreement or any other Financing Document that the Administrative
Agent has reasonably requested in connection herewith.

     (i) Expenses. The Administrative Agent shall have received for its own account, or
for the account of each Senior Secured Party entitled thereto, all costs and expenses (including
costs, fees and expenses of legal counsel to each Lender and Consultants) for which invoices have
been presented.

     (j) Insurance. The Administrative Agent shall have received satisfactory evidence
that the insurance requirements set forth on Schedule 7.01(h) with respect to the Borrower
and the Project have been satisfied, including binders or certificates evidencing the commitment of
insurers to provide each insurance policy required by Schedule 7.01(h), evidence of the
payment of all premiums then due and owing in respect of such insurance policies and a duly
executed certificate of (x) the Insurance Consultant substantially in the form of Exhibit D
and (y) the Borrower’s insurance broker (or insurance carrier) substantially in the form of
Attachment 1 to Exhibit D, in each case appropriately completed to the satisfaction of the
Administrative Agent and certifying, inter alia, that all such insurance policies
are in full force and effect.

     (k) Title Insurance. The Administrative Agent shall have received a date-down
endorsement to each Title Insurance Policy, which endorsement shall have the effect of (i) updating
the date of the Title Insurance Policy to the Effective Date, (ii) providing full mechanics’ lien
coverage, and (iii) in the case of the Huron Plant, adding the land transferred to the Borrower
pursuant to the Huron Additional Parcel 

33

 

Quitclaim Deed to the Mortgaged Property insured under the Title Insurance Policy, and which endorsement
shall otherwise constitute a Title Continuation for each Title Insurance Policy, except with
respect to survey exceptions, which such survey exceptions shall be subject to the post-closing
covenant hereinafter set forth in Section 7.01(l)(iv).

     (l) Bank Regulatory Requirements. The Administrative Agent shall have received all
documentation and other information required by bank regulatory authorities under applicable “know
your customer” and anti-money-laundering rules and regulations, including the Patriot Act.

     (m) Administrative Services Agreement. The Borrower shall have entered into the
Administrative Services Agreement with Advanced BioEnergy, LLC, in form and substance satisfactory
to the Lenders.

     (n) Process Agent. The Administrative Agent shall have received, in form and
substance reasonably satisfactory to the Administrative Agent, acceptances from the Process Agent
for each of the Borrower and the Pledgor appointed under Section 10.02(d) (Applicable Law;
Jurisdiction; Etc.- Appointment of Process Agent and Service of Process) and as required under
each other Financing Document in effect on the Effective Date.

     (o) Restructuring Agreement Conditions. All of the conditions to the consummation of
restructuring contemplated by the Restructuring Agreement shall have been satisfied.

     (p) Funding of Project Accounts. The Debt Service Reserve Account has been, or on the
Closing Date, will be funded in an amount equal to the Debt Service Reserve Required Amount, and
the Working Capital Reserve Account has been, or on the Closing Date, will be funded in an amount
equal to the Working Capital Reserve Required Amount.

     (q) CoBank Mortgage Subordinations. In connection with the delivery of the Title
Continuation to each Title Insurance Policy, as described in Section 6.01(k), the
Administrative Agent shall have received the CoBank Mortgage Subordinations, in form and substance
satisfactory to the Administrative Agent and the Title Insurance Company.

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ARTICLE VII

COVENANTS

     Section 7.01 Affirmative Covenants. The Borrower agrees with each Senior Secured
Party that, until the Security Discharge Date, the Borrower will perform the obligations set forth
in this Section 7.01.

     (a) Compliance with Laws. The Borrower shall comply in all material respects with all
Laws (other than Environmental Laws which are addressed in Section 7.01(b) (Affirmative
Covenants — Environmental Matters)) applicable to it or to its business or property.

     (b) Environmental Matters.

	 	(i)	 	The Borrower shall (A) comply in all material
respects with all Environmental Laws, (B) keep the Project free of any
Lien imposed pursuant to any Environmental Law, (C) pay or cause to be
paid when due and payable by the Borrower any and all costs required in
connection with any Environmental Laws, including the cost of
identifying the nature and extent of the presence of any Materials of
Environmental Concern in, on or about the Project or on any real
property owned or leased by the Borrower or on the Mortgaged Property,
and the cost of delineation, management, remediation, removal,
treatment and disposal of any such Materials of Environmental Concern,
and (D) use its best efforts to ensure that no Environmental Affiliate
takes any action or violates any Environmental Law that could
reasonably be expected to result in an Environmental Claim.
	 
	 	(ii)	 	The Borrower shall not use or allow the Project
to generate, manufacture, refine, produce, treat, store, handle,
dispose of, transfer, process or transport Materials of Environmental
Concern other than in compliance in all material respects with
Environmental Laws.

     (c) Operations and Maintenance. The Borrower shall own, operate and maintain (or
cause to be operated and maintained) the Plants in all material respects in accordance with (i) the
terms and provisions of the Transaction Documents, (ii) all

35

 

applicable Governmental Approvals and Laws and (iii) Prudent Ethanol Operating Practice.

     (d) Maintenance of Properties.

	 	(i)	 	The Borrower shall keep, or cause to be kept,
in good working order and condition, ordinary wear and tear excepted,
all of its properties and equipment related to the Project that are
necessary or useful in the proper conduct of its business.
	 
	 	(ii)	 	The Borrower shall not permit the Project or
any material portion thereof to be removed, demolished or materially
altered, unless such material portion that has been removed, demolished
or materially altered has been replaced or repaired as permitted under
this Agreement.
	 
	 	(iii)	 	The Borrower shall continue to engage in
business of the same type as now conducted by it and do or cause to be
done all things necessary to preserve and keep in full force and effect
(A) its limited liability company existence and good standing in the
State of Delaware and (B) its material patents, trademarks, trade
names, copyrights, franchises and similar rights.

     (e) Payment of Obligations. The Borrower shall pay and discharge as the same shall
become due and payable all of its obligations and liabilities, including (i) all tax liabilities,
assessments and governmental charges or levies upon it or its properties or assets, unless the same
(A) are subject to a Contest or (B) are immaterial Taxes in an aggregate amount not in excess of
twenty-five thousand Dollars ($25,000) at any one time outstanding (taking into account any
interest and penalties that could accrue or be applicable to such past-due Taxes), and provided
that such Taxes are no more than forty-five (45) days past due, (ii) all of its obligations and
liabilities under its Contractual Obligations, except as are subject to a Contest and (iii) all
lawful claims that, if unpaid, would by law become a Lien upon its properties (other than Permitted
Liens), unless the same are subject to a Contest.

     (f) Governmental Approvals. The Borrower shall maintain in full force and effect, in
the name of the Borrower, each Necessary Project Approval and obtain each Deferred Approval (each
of which shall be reasonably satisfactory to the Administrative Agent) prior to the time it is
required to be obtained hereunder, including as set forth on Part B of Schedule
5.03, but in any event no later than the date it is

36

 

required to be obtained under applicable Law (other than any such failure to maintain or
obtain that could not reasonably be expected to have a Material Adverse Effect on the Borrower).

     (g) Use of Proceeds and Cash Flow. The Borrower shall cause all Cash Flow, Insurance
Proceeds and Condemnation Proceeds to be applied in accordance with the Accounts Agreement.

     (h) Insurance. Without cost to any Senior Secured Party, the Borrower shall at all
times obtain and maintain, or cause to be obtained and maintained, the types and amounts of
insurance listed and described on Schedule 7.01(h), in accordance with the terms and
provisions set forth therein for the Project and the Borrower, and shall obtain and maintain such
other insurance as may be required pursuant to the terms of any Transaction Document. The Borrower
shall cause each such insurance to be in place no less than ten (10) days prior to the date
required, and each required insurance policy shall be renewed or replaced prior to the expiration
thereof. In the event the Borrower fails to take out or maintain the full insurance coverage
required by this Section 7.01(h), the Administrative Agent may (but shall not be obligated
to) take out the required policies of insurance and pay the premiums on the same. All amounts so
advanced by the Administrative Agent shall become an Obligation, and the Borrower shall forthwith
pay such amounts to the Administrative Agent, together with interest from the date of payment by
the Administrative Agent at the Default Rate.

     (i) Books and Records; Inspections. The Borrower shall keep proper books of record
and account in which complete, true and accurate entries in conformity with GAAP and all
requirements of Law shall be made of all financial transactions and matters involving the assets
and business of the Borrower, and shall maintain such books of record and account in material
conformity with applicable requirements of any Governmental Authority having regulatory
jurisdiction over the Borrower. The Borrower shall keep books and records separate from the books
and records of any other Person (including any Affiliates of the Borrower) that accurately reflect
all of its business affairs, transactions and the documents and other instruments that underlie or
authorize all of its limited liability company actions. The Borrower shall permit officers and
designated representatives of the Agents, Lenders and Consultants to visit and inspect any of the
properties of the Borrower (including the Project), to examine its limited liability company,
financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its
affairs, finances and accounts with its partners, directors, officers and independent public
accountants, and with the Pledgor and its directors, officers and independent public accountants,
in each case at the expense of the Borrower (provided that so long as no Default or Event of
Default has occurred and is continuing, such visits or inspections shall be at the expense of the
Borrower only once per fiscal quarter) and at such reasonable times during normal business hours
and as often as may

37

 

be reasonably desired, upon reasonable advance notice to the Borrower; provided that
if a Default or Event of Default has occurred and is continuing, any Agent, Lender or Consultant
(or any of their respective officers or designated representatives) may do any of the foregoing at
the expense of the Borrower at any time during normal business hours and without advance notice.

     (j) Operating Budget.

	 	(i)	 	No less than forty-five (45) days in advance of
the beginning of each Fiscal Year, the Borrower shall adopt an
operating plan and a budget for the Project setting forth in reasonable
detail the projected requirements for Operation and Maintenance
Expenses and Maintenance Capital Expenses for the ensuing Fiscal Year
and provide a copy of such operating plan and budget at such time to
the Administrative Agent. (Each such operating plan and budget is
herein called an “Operating Budget”.) Each Operating Budget
shall be prepared in accordance with a form approved by the Financial
Advisor and shall become effective upon approval, which shall not be
unreasonably withheld, conditioned or delayed, of the Administrative
Agent (acting in consultation with the Consultants). If the Borrower
shall not have adopted an annual Operating Budget before the beginning
of any Fiscal Year or any Operating Budget adopted by the Borrower
shall not have been accepted by the Administrative Agent before the
beginning of any upcoming Fiscal Year, the Operating Budget for the
preceding Fiscal Year shall, until the adoption of an annual Operating
Budget, by the Borrower and acceptance of such Operating Budget, by the
Administrative Agent, be deemed to be in force and effective as the
annual Operating Budget for such upcoming Fiscal Year.
	 
	 	(ii)	 	Each Operating Budget delivered to the
Administrative Agent pursuant to this Section 7.01(j) shall be
accompanied by a memorandum detailing all material assumptions used in
the preparation of such Operating Budget, shall contain a line item for
each Operating Budget Category, shall specify for each month and for
each such Operating Budget Category the amount budgeted for such
category for such

38

 

	 	 	 	month, and shall clearly distinguish Operation and Maintenance
Expenses and Maintenance Capital Expenses.

     (k) Project Documents.

	 	(i)	 	The Borrower shall maintain in full force and
effect, preserve, protect and defend its material rights under, and
take all actions necessary to prevent termination or cancellation
(except by expiration in accordance with its terms) of, each of the
SNDAs, Interest Rate Cap Agreements and Project Documents. The
Borrower shall exercise all material rights, discretion and remedies
under each of the SNDAs, Interest Rate Cap Agreements and Project
Documents, if any, in accordance with its terms and in a manner
consistent with (and subject to) the Borrower’s obligations under the
Financing Documents.
	 
	 	(ii)	 	Promptly upon execution of any Project Document
by the Borrower, the Borrower shall deliver to the Administrative Agent
certified copies of such Project Document and, if reasonably requested
by the Administrative Agent, any Ancillary Documents related thereto.
	 
	 	(iii)	 	Within sixty (60) days after the Effective
Date, the Borrower shall deliver to the Administrative Agent Consents
with respect to the Industry Track Agreement, the Track Area Lease
Agreement and the Trinity Railcar Lease.
	 
	 	(iv)	 	If any of the SNDAs and the Project Documents
provides that such document will expire prior to the Final Maturity
Date, then, on or prior to the date that is forty-five (45) days (or
such shorter period as shall be satisfactory to the Administrative
Agent) prior to the expiration date of such document, the Borrower
shall enter into an agreement replacing such document, in form and
substance, and with a counterparty, reasonably satisfactory to the
Required Lenders.

     (l) Preservation of Title; Acquisition of Additional Property.

	 	(i)	 	The Borrower shall preserve and maintain (A)
good, marketable and insurable fee interest in the Sites (except for

39

 

	 	 	 	the Leased Premises) and valid easement interest to its easement
interest in the Sites, (B) good and valid leasehold interest in
the Leased Premises and (C) good, legal and valid title to all of
its other respective material properties and assets, in each case
free and clear of all Liens other than Permitted Liens. If the
Borrower at any time acquires any real property or leasehold or
other interest in real property (including, to the extent
reasonably requested by the Administrative Agent, with respect to
any material easement or right-of-way not covered by the
Mortgages), the Borrower shall, promptly upon such acquisition,
execute, deliver and record a supplement to the Mortgage relating
to the Plant(s) with respect to which such real property or
leasehold or other interest in real property relates, reasonably
satisfactory in form and substance to the Administrative Agent,
subjecting such real property or leasehold or other interest to
the Lien and security interest created by such Mortgage. If
reasonably requested by the Administrative Agent, the Borrower
shall obtain an appropriate endorsement or supplement to any Title
Insurance Policy insuring the Lien of the Security Documents in
such additional property, subject only to Permitted Liens.
	 
	 	(ii)	 	Prior to the acquisition or lease of any such
additional real property interests (other than easements that do not
involve soil disturbance), the Borrower shall deliver to the
Administrative Agent an Environmental Site Assessment Report(s) with
respect to such real property (if, in the reasonable determination of
the Administrative Agent, acting in consultation with the Independent
Engineer, such Environmental Site Assessment Report(s) with respect to
such real property interests is warranted), in each case along with a
corresponding reliance letter from the consultant issuing such
report(s) (to the extent such report(s) does not permit reliance
thereon by the Senior Secured Parties). Each such Environmental Site
Assessment Report(s) shall be in form and substance reasonably
satisfactory to the Administrative Agent and shall not identify any
material liability associated with the condition of such real property.

40

 

	 	(iii)	 	If the Borrower owns or acquires any land
(leasehold, fee or easement) not shown on any then-current Survey, the
Borrower shall provide the Administrative Agent a Survey, in form and
substance satisfactory to the Administrative Agent, covering such land.
	 
	 	(iv)	 	Within forty-five (45) days after the Effective
Date, the Administrative Agent shall have received a Title Continuation
to each Title Insurance Policy, which endorsement shall have the effect
of removing all survey exceptions that have arisen since the previous
Title Continuations were issued to the Administrative Agent on March
31, 2008, other than any such specific survey exceptions which do not
materially and adversely affect the operation of the Project, as may be
reasonably determined by the Administrative Agent.

     (m) Maintenance of Liens; Creation of Liens on Newly Acquired Property.

	 	(i)	 	The Borrower shall take or cause to be taken
all action necessary or desirable to maintain and preserve the Lien of
the Security Documents and the first-ranking priority thereof.
	 
	 	(ii)	 	The Borrower shall take all actions required to
cause each Additional Project Document to be or become subject to the
Lien of the Security Documents (whether by amendment to any Security
Agreement or otherwise) and shall deliver or cause to be delivered to
the Administrative Agent all Ancillary Documents related thereto.
	 
	 	(iii)	 	Simultaneously with the making of any
investment in Cash Equivalents, the Borrower shall take or cause to be
taken all actions to require such Cash Equivalent in the Project
Accounts to be or become subject to a first priority perfected Lien in
favor of the Senior Secured Parties.

     (n) Certificate of Formation. The Borrower shall observe all of the separateness and
other provisions and procedures of its certificate of formation and the Borrower LLC Agreement.

41

 

     (o) Separateness. The Borrower shall comply at all times with the separateness
provisions set forth on Schedule 5.24(a).

     (p) Further Assurances. Upon written request of the Administrative Agent or the
Required Lenders, the Borrower shall promptly perform or cause to be performed any and all acts and
execute or cause to be executed any and all documents (including UCC financing statements and UCC
continuation statements):

	 	(i)	 	that are necessary or advisable for compliance
with Section 7.01(m)(i) (Affirmative Covenants — Maintenance of
Liens; Creation of Liens on Newly Acquired Property);
	 
	 	(ii)	 	for the purposes of ensuring the validity and
legality of this Agreement or any other Financing Document and the
rights of the Senior Secured Parties hereunder or thereunder; and
	 
	 	(iii)	 	for the purposes of facilitating the proper
exercise of rights and powers granted to the Senior Secured Parties
under this Agreement or any other Financing Document.

     (q) First Priority Ranking. The Borrower shall cause its payment obligations with
respect to the Loans to constitute direct senior secured obligations of the Borrower and to rank no
less than pari passu in priority of payment, in right of security and in all other respects to all
other Indebtedness of the Borrower.

     (r) Quarterly Calculations.

	 	(i)	 	Not more than three (3) Business Days prior to
each Quarterly Payment Date, the Borrower shall provide to the
Administrative Agent a calculation of the Debt Service Reserve Required
Amount, certified by a Financial Officer of the Borrower.
	 
	 	(ii)	 	Not more than three (3) Business Days prior to
each Quarterly Payment Date, the Borrower shall calculate the
Historical Debt Service Coverage Ratio and the Prospective Debt Service
Coverage Ratio, and shall provide written evidence to the Accounts Bank
of such calculations certified by a Financial Officer of the Borrower.
Each such calculation shall be subject to review by the Administrative
Agent.

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     (s) Financial Model.

	 	(i)	 	Within sixty (60) days after the Effective Date
(which period may be extended by an additional thirty (30) days with
the prior written approval of the Administrative Agent), and thereafter
no less than forty-five (45) days prior to the end of each Fiscal Year,
the Borrower shall deliver to the Lenders, the Administrative Agent and
the Consultants a proposed updated Financial Model, together with the
underlying assumptions, containing projections of Cash Flow, Operation
and Maintenance Expenses (including each Operating Budget Category),
Maintenance Capital Expenses and Cash Flow Available for Debt Service,
in each case on a quarterly basis, with respect to the Project for the
immediately succeeding Fiscal Year. If the Administrative Agent does
not approve the updated Financial Model proposed by the Borrower within
thirty (30) days following receipt thereof (and, so long as no Default
or Event of Default has occurred and is continuing, after consultation
and no less than ten (10) days of good faith negotiations with the
Borrower), the Administrative Agent may instruct the Consultants to
prepare an updated Financial Model based on the reasonable professional
judgment of the Consultants (and such updated Financial Model prepared
by the Consultants shall be binding on the Lenders and the Borrower).
	 
	 	(ii)	 	If in any Fiscal Year (A) the actual Cash Flow
for the completed Fiscal Quarters in such Fiscal Year (or, in the case
of the Fiscal Year in which the Effective Date occurs, the period from
the Effective Date to the end of the most recent completed Fiscal
Quarter) (such period, the “Specified Period”) is ninety
percent (90%) or less of the projections for such period set forth in
the then-current Financial Model, or (B) Operation and Maintenance
Expenses and Maintenance Capital Expenses for the Specified Period are,
in the aggregate, ten percent (10%) or more above the projections for
such period set forth in the then-current Financial Model, the Borrower
shall, no less than thirty (30) days prior to the end of the
immediately following Fiscal Quarter, deliver to the Administrative
Agent, the Lenders and the Consultants a proposed updated

43

 

	 	 	 	Financial Model, together with the underlying assumptions,
containing projections of Cash Flow, Operation and Maintenance
Expenses (including each Operating Budget Category), Maintenance
Capital Expenses and Cash Flow Available for Debt Service, in each
case on a quarterly basis, with respect to the Project through the
end of the immediately following Fiscal Year; provided
that if (x) the Historical Debt Service Coverage Ratio calculated
as of the most recent Quarterly Payment Date exceeds 4.0x and (y)
the Borrower delivers to the Administrative Agent a certificate
certifying that the Prospective Debt Service Coverage Ratio
calculated as of such most recent Quarterly Payment Date exceeds
4.0x notwithstanding the deviation from the Financial Model
described in item (A) or (B) above, as applicable, the Borrower
shall not be required to deliver an updated Financial Model
pursuant to this Section 7.01(s).

	 	(iii)	 	If the Administrative Agent does not approve
the updated Financial Model proposed by the Borrower pursuant to
Section 7.01(s)(ii) above within fifteen (15) days following
receipt thereof (and, so long as no Default or Event of Default has
occurred and is continuing, after consultation with the Borrower), the
Administrative Agent may instruct the Consultants to prepare an updated
Financial Model based on the reasonable professional judgment of the
Consultants (and such updated Financial Model prepared by the
Consultants shall be binding on the Lenders and the Borrower).
	 
	 	(iv)	 	All costs incurred in connection with the
preparation and review of updated Financial Models under this
Section 7.01(s) shall be for the account of the Borrower.

     (t) Interest Rate Cap Agreements. The Borrower may enter into Interest Rate Cap
Agreements on or prior to the Effective Date for notional amounts, in the aggregate at the time of
the execution thereof, not in excess of seventy-five percent (75%) of the aggregate principal
amount of Loans outstanding on the Effective Date.

     (u) Commodity Hedging Programs. The Borrower may, from time to time, amend the
Commodity Risk Management Plan; provided that any material changes thereto shall require
the prior written approval of the Administrative Agent, which

44

 

approval shall not be unreasonably withheld, conditioned or delayed. The Borrower at all
times shall comply with, and shall ensure that all Commodity Hedging Arrangements comply with, the
Commodity Risk Management Plan.

     (v) Debt Service Reserve. The Borrower shall ensure that the Debt Service Reserve
Account is at all times fully funded to the Debt Service Reserve Required Amount, provided,
that if, on any date, any amounts are withdrawn from the Debt Service Reserve Account, then the
Borrower will have until the second Quarterly Payment Date following such date to ensure that the
Debt Service Reserve Account is fully funded to the Debt Service Reserve Required Amount.

     Section 7.02 Negative Covenants. The Borrower agrees with each Senior Secured Party
that, until the Security Discharge Date, the Borrower will perform the obligations set forth in
this Section 7.02.

     (a) Restrictions on Indebtedness of the Borrower. The Borrower will not create,
incur, assume or suffer to exist any Indebtedness except:

	 	(i)	 	the Obligations;
	 
	 	(ii)	 	Indebtedness under the Permitted Commodity
Hedging Arrangements;
	 
	 	(iii)	 	accounts payable to trade creditors incurred
in the ordinary course of business and not more than forty-five (45)
days past due; and
	 
	 	(iv)	 	obligations as lessee under operating leases or
leases for the rental of any real or personal property which are
required by GAAP to be capitalized where all such leases (other than
railcar leases) under this Section 7.02(a)(iv) do not, in the
aggregate, require the Borrower to make scheduled payments to the
lessors in any Fiscal Year in excess of two hundred thousand Dollars
($200,000) in the aggregate.

     (b) Liens. The Borrower shall not create, incur, assume or suffer to exist any Lien
upon any of its property, revenues or assets (including its Equity Interests), whether now owned or
hereafter acquired, except:

	 	(i)	 	Liens in favor, or for the benefit, of the
Collateral Agent pursuant to the Security Documents;

45

 

	 	(ii)	 	Liens for taxes, assessments and other
governmental charges that are not yet due or the payment of which is
the subject of a Contest;
	 
	 	(iii)	 	Liens of carriers, warehousemen, mechanics and
materialmen incurred in the ordinary course of business for sums not
yet due or the payment of which is the subject of a Contest;
	 
	 	(iv)	 	any Liens reflected on the Title Insurance
Policy or any Title Continuation; and
	 
	 	(v)	 	Liens arising by reason of judgments that are
subject to a Contest.

     (c) Permitted Investments. The Borrower shall not make any investments, loans or
advances (whether by purchase of stocks, bonds, notes or other securities, loans, extensions of
credit, advances or otherwise) except for investments in Cash Equivalents.

     (d) Change in Business. The Borrower shall not (i) enter into or engage in any
business other than the ownership, operation, maintenance, use and financing of the Plants and all
activities reasonably related thereto or (ii) change in any material respect the scope of the
Project from that which is contemplated as of the date hereof.

     (e) Equity Issuances. The Borrower shall not issue any Equity Interests unless such
Equity Interests are immediately pledged to the Collateral Agent (for the benefit of the Senior
Secured Parties) on a first-priority perfected basis pursuant to the Pledge Agreement or, if
necessary, a supplement thereto or a pledge and security agreement in substantially the form of the
Pledge Agreement.

     (f) Asset Dispositions. The Borrower shall not sell, lease, assign, transfer or
otherwise dispose of assets of the Project or the Borrower (other than Products), whether now owned
or hereafter acquired, except:

	 	(i)	 	disposal of assets that are promptly replaced
in accordance with the then current Operating Budget;
	 
	 	(ii)	 	to the extent that such assets are obsolete or
no longer useful or no longer usable in connection with the operation
or maintenance of the Project; and

46

 

	 	(iii)	 	disposal of assets with a fair market value,
or at a disposal price, of less than one million Dollars ($1,000,000)
in the aggregate during any Fiscal Year; provided, that such
disposal does not, and would not reasonably be expected to, adversely
affect the operation or maintenance of the Project.

     (g) Consolidation, Merger. The Borrower will not (i) directly or indirectly
liquidate, wind up, terminate, reorganize or dissolve itself (or suffer any liquidation, winding
up, termination, reorganization or dissolution) or otherwise wind up; or (ii) acquire (in one
transaction or a series of related transactions) all or any substantial part of the assets,
property or business of, or any assets that constitute a division or operating unit of, the
business of any Person or otherwise merge or consolidate with or into any other Person.

     (h) Transactions with Affiliates. The Borrower shall not enter into or cause, suffer
or permit to exist any arrangement or contract with any of its Affiliates or any other Person that
owns, directly or indirectly, any Equity Interest in the Borrower unless such arrangement or
contract (i) is fair and reasonable to the Borrower and (ii) is an arrangement or contract that is
on an arm’s-length basis and contains terms no less favorable than those that would be entered into
by a prudent Person in the position of the Borrower with a Person that is not one of its
Affiliates.

     (i) Accounts.

	 	(i)	 	The Borrower shall not maintain, establish or
use any deposit account, securities account (as each such term is
defined in the UCC) or other banking account other than the Project
Accounts.
	 
	 	(ii)	 	The Borrower shall not change the name or
account number of any of the Project Accounts without the prior written
consent of the Administrative Agent.

     (j) Subsidiaries. The Borrower shall not create or acquire any Subsidiary or enter
into any partnership or joint venture.

     (k) ERISA. The Borrower will not engage in any prohibited transactions under Section
406 of ERISA or under Section 4975 of the Code with respect to any Plan or any other employee
benefit plan subject to ERISA that could reasonably result in a material liability to the Borrower.
The Borrower will not incur any obligation or liability in respect of any Plan, Multiemployer Plan
or employee welfare benefit plan

47

 

providing post-retirement welfare benefits (other than a plan providing continue coverage
under Part 6 of Title I of ERISA or similar state law).

     (l) Taxes. The Borrower shall not make any election to be treated as an association
taxable as a corporation for federal, state or local tax purposes.

     (m) Project Documents.

	 	(i)	 	The Borrower shall not direct or consent or
agree to any amendment, modification, supplement, waiver or consent in
respect of any provision of any of the SNDAs, Interest Rate Cap
Agreements, Organic Documents of the Borrower, and Project Documents
(other than any immaterial amendment or modification, in which case a
true, correct and complete copy shall be delivered to the
Administrative Agent) without the prior written consent of the
Administrative Agent, and in the case of any amendment to a Project
Document due to the removal or replacement of a Project Party, the
prior written consent of the Required Lenders.
	 
	 	(ii)	 	Except for collateral assignments under the
Security Documents, the Borrower shall not assign any of its rights
under any of the SNDAs, Interest Rate Cap Agreements and Project
Documents to which it is a party to any Person, or consent to the
assignment of any obligations under any such document by any other
party thereto, without the prior written approval of the Administrative
Agent, and in the case of any assignment of any obligations under any
Project Document by a Project Party, without the prior written approval
of the Required Lenders.

     (n) Additional Project Documents. The Borrower shall not enter into any Additional
Project Document except with the prior written approval of the Administrative Agent (not to be
unreasonably withheld, conditioned or delayed).

     (o) Suspension or Abandonment. The Borrower shall not (i) permit or suffer to exist
an Event of Abandonment or (ii) order or consent to any suspension of work under any Project
Document, in each case without the prior written approval of the Required Lenders.

     (p) Use of Proceeds; Margin Regulations. The Borrower shall not use any part of the
proceeds of any Loan to purchase or carry any Margin Stock (as defined

48

 

in Regulation U) or to extend credit to others for the purpose of purchasing or carrying any
Margin Stock. The Borrower shall not use the proceeds of any Loan in a manner that could violate
or be inconsistent with the provisions of Regulations T, U or X.

     (q) Environmental Matters. The Borrower shall not permit (i) any underground storage
tanks to be located on any property owned or leased by the Borrower, (ii) any asbestos to be
contained in or form part of any building, building component, structure or office space owned or
leased by the Borrower, (iii) any polychlorinated biphenyls (PCBs) to be used or stored at any
property owned or leased by the Borrower or (iv) any other Materials of Environmental Concern to be
used, stored or otherwise be present at any property owned or leased by the Borrower, other than
Materials of Environmental Concern necessary for the operation of the Project and used in
accordance with all Laws and Prudent Ethanol Operating Practice.

     (r) Restricted Payments. The Borrower shall not make any Restricted Payments unless
each of the conditions set forth below has been satisfied:

	 	(i)	 	the aggregate amount of principal outstanding
on the Loans as of the date of such Restricted Payment shall not exceed
twenty-five million Dollars ($25,000,000);
	 
	 	(ii)	 	such Restricted Payment is made on, or within
thirty (30) days following, a Quarterly Payment Date (provided that
such Restricted Payment is made only from funds on deposit in or
standing to the credit of the Revenue Account on such Quarterly Payment
Date);
	 
	 	(iii)	 	no Default or Event of Default has occurred
and is continuing or would occur as a result of such Restricted
Payment;
	 
	 	(iv)	 	each of the Debt Service Reserve Account and
the Working Capital Reserve Account is fully funded to any applicable
required level;
	 
	 	(v)	 	each of the Historical Debt Service Coverage
Ratio and the Prospective Debt Service Coverage Ratio, calculated as of
such Quarterly Payment Date, is greater than or equal to 1.5:1.0; and
	 
	 	(vi)	 	the Administrative Agent has received a
Restricted Payment Certificate, duly executed by an Authorized

49

 

	 	 	 	Officer of the Borrower, confirming that each of the conditions
set forth in clauses (i) through (vi) of this Section
7.02(r) have been satisfied on and as of the date such
Restricted Payment is requested to be made, and setting forth a
detailed calculation of each of the Historical Debt Service
Coverage Ratio and Prospective Debt Service Coverage Ratio.

     (s) Commodity Hedging Arrangements; Interest Rate Protection Arrangements. The
Borrower shall not enter into any Commodity Hedging Arrangements that (i) are not in accordance
with the Commodity Risk Management Plan, or (ii) are for speculative purposes. The Borrower shall
not enter into any interest rate swap, collar, put, or cap, or other interest rate protection
arrangement, except for Interest Rate Cap Agreements that are permitted pursuant to Section
7.01(t) (Interest Rate Cap Agreements).

     (t) Accounting Changes. The Borrower shall not make any change in (i) its accounting
policies or reporting practices or (ii) its Fiscal Year without the prior written consent of the
Administrative Agent.

     Section 7.03 Reporting Requirements. The Borrower will furnish to the Administrative
Agent, who shall distribute copies of the following to each Lender:

     (a) Quarterly Financial Statements. As soon as available and in any event within
forty-five (45) days after the end of the first three Fiscal Quarters of each Fiscal Year, balance
sheets and statements of income and cash flows of the Borrower for such Fiscal Quarter and for the
period commencing at the end of the previous Fiscal Year and ending with the end of such Fiscal
Quarter, prepared in accordance with GAAP.

     (b) Annual Financial Statements. As soon as available and in any event within ninety
(90) days after the end of each Fiscal Year, a copy of the annual audit report for such Fiscal Year
for the Borrower including therein balance sheets as of the end of such Fiscal Year and statements
of income and cash flows of the Borrower for such Fiscal Year, and accompanied by an unqualified
opinion of the Auditors stating that such financial statements present fairly in all material
respects the financial position of the Borrower for the periods indicated in conformity with GAAP
applied on a basis consistent with prior periods, which report and opinion shall not be subject to
any “going concern” or like qualification or exception or any qualification or exception as to the
scope of such audit.

50

 

     (c) Certificate of Financial Officer. Concurrently with the delivery of the financial
statements referred to in Section 7.03(a) and (b), a certificate executed by a
Financial Officer of the Borrower stating that:

	 	(i)	 	such financial statements fairly present in all
material respects the financial condition and results of operations of
the Borrower on the dates and for the periods indicated in accordance
with GAAP subject, in the case of interim financial statements, to the
absence of notes and normally recurring year-end adjustments;
	 
	 	(ii)	 	such Financial Officer has reviewed the terms
of the Financing Documents and has made, or caused to be made under his
or her supervision, a review in reasonable detail of the business and
financial condition of the Borrower during the accounting period
covered by such financial statements; and
	 
	 	(iii)	 	as a result of such review such Financial
Officer has concluded that no Default or Event of Default has occurred
during the period covered by such financial statements through and
including the date of such certificate or, if any Default or Event of
Default has occurred, specifying the nature and extent thereof and, if
continuing, the action that the Borrower has taken and proposes to take
in respect thereof.

     (d) Auditor’s Letters. Promptly upon receipt, copies of any detailed audit reports,
management letters or recommendations submitted to the Borrower (or the audit or finance committee
of the Borrower) by the Auditors in connection with the accounts or books of the Borrower, or any
audit of the Borrower.

     (e) Notice of Default or Event of Default. As soon as possible and in any event
within five (5) days after the Borrower obtains or should have obtained knowledge of any Default or
Event of Default, a statement of an Authorized Officer of the Borrower setting forth details of
such Default or Event of Default and the action that the Borrower has taken and proposes to take
with respect thereto.

     (f) Notice of Other Events. Within five (5) days after the Borrower obtains knowledge
thereof, a statement of an Authorized Officer of the Borrower setting forth details of:

51

 

	 	(i)	 	any litigation or governmental proceeding
pending or threatened in writing against any of the Borrower, the
Project or the Pledgor;
	 
	 	(ii)	 	any litigation or governmental proceeding
pending or threatened in writing against any Project Party that has or
could reasonably be expected to have a Material Adverse Effect;
	 
	 	(iii)	 	any other event, act or condition that has or
could reasonably be expected to have a Material Adverse Effect; or
	 
	 	(iv)	 	notification of any event of force majeure or
similar event under a Project Document.

     (g) Project Document or Additional Project Document Notice. Promptly after delivery
or receipt thereof, copies of all material notices or documents given or received by the Borrower,
pursuant to any of the SNDAs, the Borrower LLC Agreement, the Project Documents or any Additional
Project Document including:

	 	(i)	 	any written notice alleging any breach or
default thereunder; and
	 
	 	(ii)	 	any written notice regarding, or request for
consent to, any assignment, termination, modification, waiver or
variation thereof.

     (h) ERISA Event. As soon as possible and in any event within five (5) days after the
Borrower knows, or has reason to know, that any of the events described below has occurred, a duly
executed certificate of an Authorized Officer of the Borrower setting forth the details of each
such event and the action that the Borrower proposes to take with respect thereto, together with a
copy of any notice or filing from the PBGC, Internal Revenue Service or Department of Labor or that
may be required by the PBGC or other U.S. Governmental Authority with respect to each such event:

	 	(i)	 	any Termination Event with respect to any Plan
or a Multiemployer Plan has occurred or will occur that could
reasonably be expected to result in any liability to the Borrower;

52

 

	 	(ii)	 	any condition exists with respect to a Plan that presents a
material risk of termination of a Plan (other than a standard
termination under Section 4041(b) of ERISA) or imposition of an excise
tax or other material liability on the Borrower;
	 
	 	(iii)	 	an application has been filed for a waiver of
the minimum funding standard under Section 412 of the Code or
Section 302 of ERISA under any Plan;
	 
	 	(iv)	 	with respect to any Plan or any other employee
benefit plan subject to ERISA, the Borrower or any Plan fiduciary has
engaged in a “prohibited transaction,” as defined in Section 4975 of
the Code or as described in Section 406 of ERISA, that is not exempt
under Section 4975 of the Code and Section 408 of ERISA that could
reasonably be expected to result in a material liability to the
Borrower;
	 
	 	(v)	 	there exists any Unfunded Benefit Liabilities
under any Plan;
	 
	 	(vi)	 	any condition exists with respect to a
Multiemployer Plan that presents a risk of a partial or complete
withdrawal (as described in Section 4203 or 4205 of ERISA) from a
Multiemployer Plan that could reasonably be expected to result in any
liability to the Borrower;
	 
	 	(vii)	 	a “default” (as defined in Section 4219(c)(5)
of ERISA) occurs with respect to payments to a Multiemployer Plan and
such default could reasonably be expected to result in any liability to
the Borrower;
	 
	 	(viii)	 	a Multiemployer Plan is in “reorganization” (as defined in
Section 418 of the Code or Section 4241 of ERISA) or is “insolvent” (as
defined in Section 4245 of ERISA);
	 
	 	(ix)	 	the Borrower and/or any ERISA Affiliate has
incurred any potential withdrawal liability (as defined in accordance
with Title IV of ERISA); or
	 
	 	(x)	 	there is an action brought against the Borrower
or any ERISA Affiliate under Section 502 of ERISA with respect to its
failure to comply with Section 515 of ERISA with

53

 

	 	 	 	respect to any Plan or any other employee benefit plan subject to
ERISA.

     (i) Notice of PBGC Demand Letter. As soon as possible and in any event within five
(5) days after the receipt by the Borrower of a demand letter from the PBGC notifying the Borrower
of its final decision finding liability and the date by which such liability must be paid, a copy
of such letter, together with a duly executed certificate of the president or chief financial
officer of the Borrower setting forth the action the Borrower proposes to take with respect
thereto.

     (j) Notice of Environmental Event. Promptly and in any event within five (5) days
after the existence of any of the following conditions, a duly executed certificate of an
Authorized Officer of the Borrower specifying in detail the nature of such condition and, if
applicable, the Borrower’s proposed response thereto:

	 	(i)	 	receipt by the Borrower of any written
communication from a Governmental Authority or any written
communication from any other Person (other than a privileged
communication from legal counsel to the Borrower) or other source of
written information, including reports prepared by the Borrower, that
alleges or indicates that the Borrower or an Environmental Affiliate is
not in compliance in all material respects with applicable
Environmental Laws or Environmental Approvals and such alleged
noncompliance could reasonably be expected to form the basis of an
Environmental Claim against the Borrower;
	 
	 	(ii)	 	the Borrower obtains knowledge that there
exists any Environmental Claim pending or threatened in writing against
the Borrower or an Environmental Affiliate;
	 
	 	(iii)	 	the Borrower obtains knowledge of any release,
threatened release, emission, discharge or disposal of any Material of
Environmental Concern or obtains knowledge of any material
non-compliance with any Environmental Law that, in either case, could
reasonably be expected to form the basis of an Environmental Claim
against the Borrower or any Environmental Affiliate; or
	 
	 	(iv)	 	any Removal, Remedial or Response action taken,
or required to be taken, by the Borrower or any other person in

54

 

	 	 	 	response to any Material of Environmental Concern in, at, on or
under, a part of or about the Borrower’s properties or any other
property or any notice, claim or other information that the
Borrower might be subject to an Environmental Claim.

     (k) Materials of Environmental Concern. The Borrower will maintain and make available
for inspection by the Administrative Agent, the Consultants and, if an Event of Default has
occurred and is continuing, the Lenders, and each of their respective agents and employees, on
reasonable notice during regular business hours, accurate and complete records of all
non-privileged correspondence, investigations, studies, sampling and testing conducted, and any and
all remedial actions taken, by the Borrower or, to the best of the Borrower’s knowledge and to the
extent obtained by the Borrower, by any Governmental Authority or other Person in respect of
Materials of Environmental Concern that could reasonably be expected to form the basis of an
Environmental Claim on or affecting the Project.

     (l) Deferred Approvals. Promptly after receipt thereof, copies of each Deferred
Approval obtained by the Borrower, together with such documents relating thereto as any Lender may
request through the Administrative Agent, certified as true, complete and correct by an Authorized
Officer of the Borrower.

     (m) Operating Statements. Within thirty (30) days after the end of each month and
concurrently with the delivery of the annual financial statements referred to in Section
7.03(b) (Reporting Requirements – Annual Financial Statements), the Borrower shall furnish to
the Administrative Agent an Operating Statement regarding the operation and performance of the
Project for each monthly, quarterly and year-to-date period substantially in the form of
Exhibit E. Such Operating Statements shall contain (i) line items corresponding to each
Operating Budget Category of the then current Operating Budget showing in reasonable detail by
Operating Budget Category all actual expenses related to the operation and maintenance of the
Project compared to the budgeted expenses for each such Operating Budget Category for such period
and (ii) for each period, information showing (A) the amount of ethanol sold by the Borrower from
the Project pursuant to the Ethanol Marketing Agreements and otherwise during such period, (B) the
amount of Distillers Grains (broken down by WDG, DDG and other distillers grain products) sold by
the Borrower from the Project pursuant to the Co-Product Marketing Agreement, the Distiller’s
Grains Marketing Agreement and otherwise during such period, (C) the amount of corn purchased by
the Borrower for the Project during such period, (D) the operating efficiency (% of capacity) of
each Plant and for the Project as a whole during such period and (E) the yield (gallons/bushel) for
the Project during such period. The Operating Statements shall be certified as complete and
correct by an Authorized Officer of the Borrower, who also shall certify that, the expenses
reflected

55

 

therein for the year-to-date and for each month or quarter therein did not exceed the
provision for such period contained in the Operating Budget then in effect by more than ten percent
(10%) or, if any of such certifications cannot be given, stating in reasonable detail the necessary
qualifications to such certifications.

     (n) Monthly Commodity Hedging Reports. Within seven (7) days after the end of each
calendar month, the Borrower shall furnish to the Administrative Agent a report, in form
satisfactory to the Administrative Agent, providing details of the Borrower’s positions with
respect to the Commodity Hedging Arrangements as of the last day of such month.

     (o) Cash Flow Forecasts. Within seven (7) days after the end of each calendar month,
the Borrower shall furnish to the Administrative Agent a cash flow forecast with respect to the
Project in substantially the form of Exhibit I or in another form satisfactory to the
Administrative Agent (each such cash flow forecast, a “Cash Flow Forecast”). Each Cash
Flow Forecast shall include a cash flow forecast for the period from the first day of the
then-current calendar month to the date falling thirteen weeks thereafter, including line items
corresponding to each Operating Budget Category of the then current Operating Budget, showing in
reasonable detail by Operating Budget Category all projected expenses related to the operation and
maintenance of the Project compared to the budgeted expenses for each such Operating Budget
Category for such period.

     (p) Other Information. Other information reasonably requested by the Administrative
Agent or any Lender (through the Administrative Agent).

ARTICLE VIII

DEFAULT AND ENFORCEMENT

     Section 8.01 Events of Default. Each of the following events or occurrences described
in this Section 8.01 shall constitute an Event of Default.

     (a) Nonpayment. (i) The Borrower fails to pay any amount of principal of any Loan
when the same becomes due and payable or (ii) the Borrower fails to pay any interest on any Loan or
any fee or other Obligation or amount payable hereunder or under any other Financing Document
within three (3) Business Days after the same becomes due and payable.

     (b) Breach of Warranty. Any representation or warranty of any Loan Party, any Project
Party or any party (other than a Senior Secured Party) to the Restructuring Agreement or Accounts
Agreement made or deemed to be repeated in any

56

 

Financing Document is incorrect or misleading in any material respect when made or deemed
made.

     (c) Non-Performance of Certain Covenants and Obligations. (i) The Borrower defaults
in the due performance and observance of any of its obligations under Section 7.01(d)(iii)(A)
(Affirmative Covenants — Maintenance of Properties),Section 7.01(g) (Affirmative Covenants
- Use of Proceeds and Cash Flow), Section 7.01(h) (Affirmative Covenants — Insurance),
Section 7.01(q) (Affirmative Covenants — First Priority Ranking), Section 7.01(v)
(Affirmative Covenants – Debt Service Reserve), Section 7.02 (Negative Covenants),
Section 7.03(e) (Reporting Requirements — Notice of Default or Event of Default) and
Section 7.03(f) (Reporting Requirements — Notice of Other Events) of this Agreement, or
Section 5.02 (Limitation of Liens) or Section 5.07 (Name; Jurisdiction of Organization) of
the Security Agreement; (ii) the Borrower or any Pledgor defaults in the due performance and
observance of any of its obligations under Section 5.02 (Limitation of Liens), Section
5.04 (No Sale of Collateral), Section 5.05 (No Impairment of Security), Section
5.06 (Filing of Bankruptcy Proceedings) or Section 5.10 (Name; Jurisdiction of Organization) of
the Pledge Agreement; or (iii) any party (other than a Senior Secured Party) to the Accounts
Agreement defaults in the due performance and observance of any of its obligations under the
Accounts Agreement.

     (d) Non-Performance of Other Covenants and Obligations. Any Loan Party, any Project
Party or any party (other than a Senior Secured Party) to the Accounts Agreement defaults in the
due performance and observance of any covenant or agreement (other than covenants and agreements
referred to in Section 8.01(a) (Events of Default – Nonpayment) or Section 8.01(c)
(Events of Default — Non-Performance of Certain Covenants and Obligations)) contained in any
Financing Document, and such default continues unremedied for a period of thirty (30) days after
the Borrower obtains, or should have obtained, knowledge thereof.

     (e) Cross Defaults. Any one of the following occurs with respect to the Borrower, any
Pledgor, or any Project Party with respect to Indebtedness (other than the Obligations and any
Indebtedness of any Pledgor arising solely as a result of a Lien on its assets to secure the debt
of any of its Subsidiaries other than the Borrower):

	 	(i)	 	a default occurs in the payment when due
(subject to any applicable grace period and notice requirements),
whether by acceleration or otherwise, of such Indebtedness; or
	 
	 	(ii)	 	such Person fails to observe or
perform (subject to any applicable grace periods and notice
requirements) any other agreement or condition relating to any such
Indebtedness or contained in any instrument or agreement evidencing,

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	 	 	 	securing or relating thereto, or any other event occurs, the
effect of which default or other event is to cause, or to permit
the holder or holders of such Indebtedness or the beneficiary or
beneficiaries of any Guarantee (or a trustee or agent on behalf of
such holder or holders or beneficiary or beneficiaries) to cause,
with the giving of notice if required, such Indebtedness to be
demanded or to become due or to be repurchased, prepaid, defeased
or redeemed (automatically or otherwise), or an offer to
repurchase, prepay, defease or redeem such Indebtedness to be
made, prior to its stated maturity, or such Guarantee to become
payable or cash collateral in respect thereof to be demanded; and

	 	(A)	 	in the case of Section 8.01(e)(i)
or Section 8.01(e)(ii) with respect the Borrower or any
Pledgor, with respect to Indebtedness in an amount greater than or
equal to one million Dollars ($1,000,000) in the aggregate; or
	 
	 	(B)	 	in the case of Section 8.01(e)(i)
or Section 8.01(e)(ii) with respect to any other Project
Party, has resulted in or could reasonably be expected to result in a
Material Adverse Effect; provided, that such occurrence shall
not constitute an Event of Default with respect to any such other
Project Party (other than a Project Party to any License Agreement,
the Interconnect Agreement, the Huron Ground Lease, the Huron Grain
Elevator Lease or the Aberdeen Grain Elevator Lease) if an agreement
replacing each Project Document to which such Project Party is a
party, in form and substance, and with a counterparty, reasonably
satisfactory to the Required Lenders, is entered into (together with
all applicable Ancillary Documents) within sixty (60) days thereof.

     (f) Judgments. (i) Any judgment or order that has or could reasonably be expected to
have a Material Adverse Effect is rendered against any Loan Party or any Project Party;
provided, that such occurrence shall not constitute an Event of Default with respect to any
Project Party (other than a Project Party to any License Agreement, the Interconnect Agreement, the
Huron Ground Lease, the Huron Grain Elevator Lease or the Aberdeen Grain Elevator Lease) if an
agreement replacing each Project Document to which such Project Party is a party, in form and
substance, and with a counterparty, reasonably satisfactory to the Required Lenders, is entered
into (together with all

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applicable Ancillary Documents) within sixty (60) days thereof; or (ii) any judgment or order
is rendered against the Borrower or any Pledgor in an amount in excess of one million Dollars
($1,000,000) in the aggregate.

     (g) ERISA Events. (i) Any Termination Event occurs, (ii) any Plan incurs an
“accumulated funding deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA),
(iii) the Borrower engages in a transaction with respect to any Plan or any other employee benefit
plan subject to ERISA that is prohibited under Section 4975 of the Code or Section 406 of ERISA,
(iv) the Borrower or any of its ERISA Affiliates fails to pay when due any amount it has become
liable to pay to the PBGC, any Plan or a trust established under Title IV of ERISA, (v) a condition
exists by reason of which the PBGC would be entitled to obtain a decree adjudicating that a Plan
must be terminated or have a trustee appointed to administer it, (vi) the Borrower or any of its
ERISA Affiliates suffers a partial or complete withdrawal from a Multiemployer Plan or is in
“default” (as defined in Section 4219(c)(5) of ERISA) with respect to payments to a Multiemployer
Plan, (vii) a proceeding is instituted against the Borrower to enforce Section 515 of ERISA,
(viii) the aggregate amount of the then “current liability” (as defined in Section 412(l)(7) of the
Code, as amended) of all accrued benefits under such Plan or Plans exceeds the then current value
of the assets allocable to such benefits by more than five hundred thousand Dollars ($500,000) at
such time, or (ix) any other event or condition occurs or exists with respect to any Plan that
would subject the Borrower to any material tax, material penalty or other material liability.

     (h) Bankruptcy, Insolvency. The Borrower, any Pledgor or any Project Party:

	 	(i)	 	generally fails to pay, or admits in writing
its inability or unwillingness to pay, debts as they become due;
	 
	 	(ii)	 	applies for, consents to, or acquiesces in, the
appointment of a trustee, receiver, sequestrator or other custodian for
such Person or a substantial portion of its property, or makes a
general assignment for the benefit of creditors;
	 
	 	(iii)	 	in the absence of such application, consent or
acquiescence, permits or suffers to exist the appointment of a trustee,
receiver, sequestrator or other custodian for such Person or for a
substantial part of its property, and such trustee, receiver,
sequestrator or other custodian is not discharged within sixty
(60) days; provided that nothing in the Financing Documents
shall prohibit or restrict any right any Senior Secured Party may have
under applicable Law to

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	 	 	 	appear in any court conducting any relevant proceeding during such
sixty (60) day period to preserve, protect and defend its rights
under the Financing Documents (and such Person shall not object to
any such appearance);

	 	(iv)	 	permit or suffer to exist the commencement of
any bankruptcy, reorganization, debt arrangement or other case or
proceeding under any bankruptcy or insolvency law, or any dissolution,
winding up or liquidation proceeding, in respect of such Person and, if
any such case or proceeding is not commenced by such Person, such case
or proceeding is consented to or acquiesced in by such Person or
results in the entry of an order for relief or remains for sixty
(60) days undismissed; provided that nothing in the Financing
Documents shall prohibit or restrict any right any Senior Secured Party
may have under applicable Law to appear in any court conducting any
such case or proceeding during such sixty (60) day period to preserve,
protect and defend its rights under the Financing Documents (and such
Person shall not object to any such appearance);
	 
	 	(v)	 	takes any action authorizing, or in furtherance
of, any of the foregoing; or
	 
	 	(vi)	 	ceases to be Solvent;

and with respect to any Project Party, such occurrence has resulted in or could reasonably be
expected to result in a Material Adverse Effect; provided, that such occurrence shall not
constitute an Event of Default with respect to any Project Party (other than a Project Party to any
License Agreement, the Interconnect Agreement, the Huron Ground Lease, the Huron Grain Elevator
Lease or the Aberdeen Grain Elevator Lease) if an agreement replacing each Project Document to
which such Project Party is a party, in form and substance, and with a counterparty, reasonably
satisfactory to the Required Lenders, is entered into (together with all applicable Ancillary
Documents) within sixty (60) days thereof.

	 	(i)	 	Project Document Defaults; Termination.

	 	(i)	 	The Borrower or any Project Party shall be in
material breach of or otherwise in material default under any Project
Document, or the Borrower or any counterparty thereof to any SNDA shall
be in material breach of or otherwise in

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	 	 	 	material default under such SNDA, and such breach or default has
continued (x) in the case of the Huron Ground Lease, for more than
thirty (30) days, or (y) in the case of any other Project Document
or any SNDA, beyond any applicable grace period expressly provided
for in such Project Document (or, if no such cure period is
provided, thirty (30) days); provided, that any such
breach or default by any Project Party under any Project Document
(other than the License Agreements, the Interconnect Agreement,
the Huron Ground Lease, the Huron Grain Elevator Lease and the
Aberdeen Grain Elevator Lease) shall not constitute an Event of
Default if an agreement replacing such Project Document, in form
and substance, and with a counterparty, reasonably satisfactory to
the Required Lenders, is entered into (together with all
applicable Ancillary Documents) within sixty (60) days thereof.
	 
	 	(ii)	 	Any Project Document ceases to be in full force
and effect prior to its scheduled expiration, is repudiated, or its
enforceability is challenged or disaffirmed by or on behalf of the
Borrower or any Project Party thereto, or any SNDA ceases to be in full
force and effect prior to its scheduled expiration, is repudiated, or
its enforceability is challenged or disaffirmed by or on behalf of the
Borrower or any counterparty thereof to such SNDA provided,
that such occurrence shall not constitute an Event of Default with
respect to any Project Document (other than the License Agreements, the
Interconnect Agreement, the Huron Ground Lease, the Huron Grain
Elevator Lease and the Aberdeen Grain Elevator Lease) if an agreement
replacing such Project Document, in form and substance, and with a
counterparty, reasonably satisfactory to the Required Lenders, is
entered into (together with all applicable Ancillary Documents) within
sixty (60) days thereof.

     (j) Governmental Approvals. The Borrower fails to obtain, renew, maintain or comply
in all material respects with any Necessary Project Approval or any Necessary Project Approval is
revoked, canceled, terminated, withdrawn or otherwise ceases to be in full force and effect, or any
Necessary Project Approval is adversely modified without the consent of the Required Lenders, or a
proceeding is commenced which could reasonably produce any such result.

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     (k) Unenforceability of Documentation. At any time after the execution and delivery
thereof:

	 	(i)	 	any material provision of any Financing
Document shall cease to be in full force and effect;
	 
	 	(ii)	 	any Financing Document is revoked or
terminated, becomes unlawful or is declared null and void by a
Governmental Authority of competent jurisdiction;
	 
	 	(iii)	 	any Financing Document becomes unenforceable,
is repudiated or the enforceability thereof is contested or disaffirmed
by or on behalf of any party thereto other than the Senior Secured
Parties; and
	 
	 	(iv)	 	any Liens against any of the Collateral cease
to be a first-priority, perfected security interest in favor of the
Collateral Agent, or the enforceability thereof is contested by any
Loan Party, or any of the Security Documents ceases to provide the
security intended to be created thereby with the priority purported to
be created thereby.

     (l) Environmental Matters. (i) (A) Any Environmental Claim has occurred with respect
to the Borrower, the Project or any Environmental Affiliate, (B) any release, Threat of Release,
emission, discharge or disposal of any Material of Environmental Concern occurs, and such event
could reasonably be expected to form the basis of an Environmental Claim against the Borrower, the
Project or any Environmental Affiliate, or (C) any violation or alleged violation of any
Environmental Law or Environmental Approval occurs that would reasonably result in an Environmental
Claim against the Borrower or the Project or, to the extent the Borrower may have liability, any
Environmental Affiliate that, in the case of any of Section 8.01(l)(i)(A), (B) or
(C), could reasonably be expected to result in liability for the Borrower in an amount
greater than two hundred fifty thousand Dollars ($250,000) for any single claim or five hundred
fifty thousand Dollars ($500,000) for all such claims during any twelve (12) month period or could
otherwise reasonably be expected to result in a Material Adverse Effect; provided that such
an occurrence shall not constitute an Event of Default if (x) the estimated liability associated
therewith is reasonably expected to be less than one million Dollars ($1,000,000) net of any
Insurance Proceeds that have actually been paid to, and received by, the Borrower or the Collateral
Agent as loss payee in connection therewith, or as reduced by taking into account any amounts that
the Borrower demonstrates, to the reasonable satisfaction of the Administrative Agent, within ten
(10) Business Days following such occurrence, will be available as and when needed, without
conditions,

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from sources (including Insurance Proceeds and documented voluntary equity contributions made
to the Borrower for the purpose of covering such costs) other than Cash Flow or Loan proceeds, to
cover such costs (and such occurrence could not otherwise reasonably be expected to result in a
Material Adverse Effect) and, within ninety (90) days of such occurrence, such liability is reduced
below the threshold set forth above in this proviso from sources other than Cash Flow or Loan
proceeds, (y) there have been no more than two (2) occurrences of the nature described in this
Section 8.01(l)(i) during the immediately preceding twelve (12) month period and (z) during
such cure period, the Borrower undertakes any remedial or responsive actions then required to be
undertaken under applicable Law;

	 	(ii)	 	the Borrower fails to obtain any Environmental
Approvals necessary for the management, use, control, ownership, or
operation of its business, property or assets, and (A) the absence of
such Environmental Approval could reasonably be expected to have a
Material Adverse Effect or (B) any such Environmental Approval is the
subject of an Environmental Claim, revoked, terminated, or otherwise
ceases to be in full force and effect.

     (m) Loss of Collateral. Any portion of the Collateral (other than a portion that is
immaterial) is damaged, seized or appropriated; provided that such an occurrence shall not
constitute an Event of Default if the Borrower repairs, replaces, rebuilds or refurbishes such
damaged, seized or appropriated Collateral (i) in accordance with Section 9.01(d) of the Accounts
Agreement, or (ii) otherwise with the approval of the Required Lenders, in consultation with the
Independent Engineer (provided that such approval is obtained within sixty (60) days
thereof).

     (n) Event of Abandonment. An Event of Abandonment occurs.

     (o) Taking or Total Loss. An Event of Taking with respect to all or a material
portion of the Project or any Equity Interests in the Borrower occurs, or an Event of Total Loss
occurs.

     (p) Change of Control. A Change of Control occurs.

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     Section 8.02 Action Upon Bankruptcy. If any Event of Default described in Section
8.01(h) (Events of Default – Bankruptcy, Insolvency) occurs with respect to the Borrower, the
outstanding principal amount of the outstanding Loans and all other Obligations shall automatically
be and become immediately due and payable, without notice, demand or further act of the
Administrative Agent, the Collateral Agent or any other Senior Secured Party.

     Section 8.03 Action Upon Other Event of Default. (a) If any Event of Default (other than any
Event of Default described in Section 8.01(h) (Events of Default — Bankruptcy, Insolvency))
occurs and is continuing for any reason, whether voluntary or involuntary, and is continuing, the
Administrative Agent may, or upon the direction of the Required Lenders shall, by written notice to
the Borrower, declare all or any portion of the outstanding principal amount of the Loans and other
Obligations to be due and payable, whereupon the full unpaid amount of the Loans and other
Obligations that has been declared due and payable shall be and become immediately due and payable,
without further notice, demand or presentment. During the continuance of an Event of Default, the
Administrative Agent may, or upon the direction of the Required Lenders shall, instruct the
Collateral Agent to exercise any or all remedies provided for under this Agreement or the other
Financing Documents.

     (b) Any declaration made pursuant to Section 8.03(a) may, should the Required Lenders
in their sole and absolute discretion so elect, be rescinded by written notice to the Borrower at
any time after the principal of the Loans has become due and payable, but before any judgment or
decree for the payment of the monies so due, or any part thereof, has been entered;
provided that no such rescission or annulment shall extend to or affect any subsequent
Event of Default or impair any right consequent thereon.

     Section 8.04 Application of Proceeds. Any moneys received by the Collateral Agent
after the occurrence and during the continuance of an Event of Default may be held by the
Collateral Agent as Collateral and/or, at the direction of the Administrative Agent, may be applied
in full or in part by the Collateral Agent against the Obligations in the following order or
priority (but without prejudice to the right of the Collateral Agent to recover any shortfall from
the Borrower):

     (a) first, to payment of that portion of the Obligations constituting fees, costs,
expenses (and interest owing thereon (if any) and any other amounts (including fees, costs and
expenses of counsel and amounts payable under ARTICLE IV (Eurodollar Rate and Tax
Provisions)) payable to the Agents in their capacities as such ratably among them in proportion
to the amounts described in this clause first;

     (b) second, to payment of that portion of the Obligations constituting fees, costs,
expenses (and interest owing thereon (if any)) and any other amounts

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(including fees, costs and expenses of counsel and amounts payable under ARTICLE IV
(Eurodollar Rate and Tax Provisions) but excluding principal of and accrued interest on the
Loans payable to the Lenders, ratably among the Lenders in proportion to the amounts described in
this clause second payable to them, as certified by the Administrative Agent;

     (c) third, to payment of that portion of the Obligations constituting accrued and
unpaid interest (including default interest) with respect to the Loans, ratably among the Lenders
in proportion to the respective amounts described in this clause third payable to them, as
certified by the Administrative Agent;

     (d) fourth, to the principal amount of the Loans payable by the Borrower to the
Lenders, ratably among the Lenders in proportion to the respective amounts described in this clause
fourth held by them, as certified by Administrative Agent; and

     (e) last, the balance, if any, after all of the Obligations have been indefeasibly
paid in full in cash, to the Borrower or as otherwise required by Applicable Law.

ARTICLE IX

THE AGENTS

     Section 9.01 Appointment and Authority. (a) Each Lender hereby irrevocably appoints,
designates and authorizes each Agent to take such action on its behalf under the provisions of this
Agreement and each other Financing Document and to exercise such powers and perform such duties as
are expressly delegated to such Agent by the terms of this Agreement or any other Financing
Document, together with such actions as are reasonably incidental thereto. The provisions of this
ARTICLE IX are solely for the benefit of the Agents and the Lenders, and neither the
Borrower nor any other Person shall have rights as a third party beneficiary of any of such
provisions.

     (b) Each Lender hereby appoints WestLB as its Administrative Agent under and for purposes of
each Financing Document to which it is a party. WestLB hereby accepts this appointment and agrees
to act as the Administrative Agent for the Lenders in accordance with the terms of this Agreement.
Each Lender appoints and authorizes the Administrative Agent to act on behalf of such Lender under
each Financing Document to which it is a party and, in the absence of other written instructions
from the Required Lenders received from time to time by the Administrative Agent (with respect to
which the Administrative Agent agrees that it will comply, except as otherwise provided in this
Section 9.01 or as otherwise advised by counsel), to

65

 

exercise such powers hereunder and thereunder as are specifically delegated to or required of
the Administrative Agent by the terms hereof and thereof, together with such powers as may be
reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere
in any Financing Document, the Administrative Agent shall not have any duties or responsibilities
except those expressly set forth herein, nor shall the Administrative Agent have or be deemed to
have any fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into any Financing Document or
otherwise exist against the Administrative Agent. Without limiting the generality of the foregoing
sentence, the use of the term “agent” in this Agreement with reference to the Administrative Agent
is not intended to connote any fiduciary or other implied (or express) obligations arising under
agency doctrine of any applicable Law. Instead, such term is used merely as a matter of market
custom, and is intended to create or reflect only an administrative relationship between
independent contracting parties.

     (c) Each Lender and the Administrative Agent hereby appoint WestLB as their Collateral Agent
under and for purposes of each Financing Document to which it is a party. WestLB hereby accepts
this appointment and agrees to act as the Collateral Agent for the Senior Secured Parties in
accordance with the terms of this Agreement. Each of the Lenders hereby irrevocably appoints and
authorizes the Collateral Agent to act as the agent of such Lender for purposes of acquiring,
holding and enforcing any and all Liens on Collateral granted by any of the Borrower or the Pledgor
to the Collateral Agent in order to secure any of the Obligations, together with such powers and
discretion as are reasonably incidental thereto. In this connection any co-agents, sub-agents and
attorneys-in-fact appointed by the Collateral Agent pursuant to Section 9.05 (Delegation of
Duties) for purposes of holding or enforcing any Lien on the Collateral (or any portion
thereof) granted under the Security Documents, or for exercising any rights and remedies thereunder
at the direction of the Collateral Agent, as the case may be, shall be entitled to the benefits of
all provisions of this ARTICLE IX and ARTICLE X (Miscellaneous Provisions)
(including Section 10.08 (Indemnification by the Borrower), as though such co-agents,
sub-agents and attorneys-in-fact were the Collateral Agent under the Financing Documents.
Notwithstanding any provision to the contrary contained elsewhere in any Financing Document, the
Collateral Agent shall not have any duties or responsibilities except those expressly set forth
herein or in the other Financing Documents to which the Collateral Agent is party, nor shall the
Collateral Agent have or be deemed to have any fiduciary relationship with the Borrower or any
Senior Secured Party, and no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into any Financing Document or otherwise exist against the Collateral
Agent. Each of the Collateral Agent and the Administrative Agent shall have the right at any time
to seek instructions from the Required Lenders or, in the case of the Collateral Agent, the
Administrative Agent as to any discretionary actions contemplated hereby or in any other

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Financing Document or if this Agreement or any other Financing Document is silent as to any
matter requiring action by the Collateral Agent and shall be fully protected in accordance with
Section 9.03 (Exculpatory Provisions) and Section 9.04 (Reliance by Agents) when
acting upon such instructions. Any action taken by the Collateral Agent or the Administrative
Agent under or in relation to this Agreement and any other Financing Document to which it is party
with requisite authority or on the basis of appropriate instructions received from the Lenders (or
otherwise as duly authorized) shall be binding on each Lender. Without limiting the generality of
the foregoing sentence, the use of the term “agent” in this Agreement with reference to the
Collateral Agent is not intended to connote any fiduciary or other implied (or express) obligations
arising under agency doctrine of any applicable Law. Instead, such term is used merely as a matter
of market custom, and is intended to create or reflect only an administrative relationship between
independent contracting parties.

     Section 9.02 Rights as a Lender. Each Person serving as Agent hereunder or under any
other Financing Document shall have the same rights and powers in its capacity as a Lender as any
other Lender and may exercise the same as though it were not an Agent. Each such Person and its
Affiliates may accept deposits from, lend money to, act as the financial advisor for or in any
other advisory capacity for and generally engage in any kind of business with the Borrower or
Affiliates of the Borrower as if such Person were not an Agent hereunder and without any duty to
account therefor to the Lenders or any other Agent.

     Section 9.03 Exculpatory Provisions. (a) No Agent nor any of its respective
directors, officers, employees or agents shall have any duties or obligations except those
expressly set forth herein and in the other Financing Documents to which it is a party. Without
limiting the generality of the foregoing, no Agent shall:

	 	(i)	 	be subject to any fiduciary or other implied
duties, regardless of whether a Default or Event of Default has
occurred and is continuing;
	 
	 	(ii)	 	have any duty to take any discretionary action
or exercise any discretionary powers except discretionary rights and
powers expressly contemplated hereby or by the other Financing
Documents to which it is party that such Agent is required to exercise
as directed in writing by the Required Lenders (or such other number or
percentage of the Lenders as shall be expressly provided for herein or
in such other Financing Documents); provided that such Agent
shall not be required to take any action that, in its opinion or the
opinion of its counsel, may expose the Agent to liability or

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	 	 	 	that is contrary to any Financing Document or applicable Law; and
provided further that no such direction given to such Agent
that in the sole judgment of such Agent imposes, or purports to impose,
or might reasonably be expected to impose upon such Agent any
obligation or liability not set forth in this Agreement or arising
under this Agreement or other Financing Documents to which it is party
shall be binding upon such Agent unless such Agent, in its sole
discretion, accepts such direction;
	 
	 	(iii)	 	except as expressly set forth herein and in
the other Financing Documents to which it is party, have any duty to
disclose, or be liable for any failure to disclose, any information
relating to the Borrower or any of its Affiliates that is communicated
to or obtained by the Person serving as an Agent or any of its
Affiliates in any capacity; or
	 
	 	(iv)	 	be required to institute any legal proceedings
arising out of or in connection with, or otherwise take steps to
enforce, this Agreement or any other Financing Document other than on
the instructions of the Required Lenders.

     (b) No Agent nor any of its respective directors, officers, employees or agents shall be
liable for any action taken or not taken by it (i) with the prior written consent or at the request
of the Required Lenders (or such other number or percentage of the Lenders as may be necessary, or
as such Agent may reasonably believe in good faith to be necessary, under the circumstances as
provided in Section 9.01 (Appointment and Authority)), (ii) in connection with any
amendment, consent, approval or waiver which it is permitted under the Financing Documents to enter
into, agree to or grant or (iii) in the absence of its own gross negligence or willful misconduct.
Each Agent shall be deemed not to have knowledge of any Default or Event of Default unless and
until notice describing such Default or Event of Default is given to such Agent in writing by the
Borrower or a Lender.

     (c) No Agent nor any of its respective directors, officers, employees or agents shall be
responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with this Agreement or any other Financing Document, (ii)
the contents of any certificate, report, opinion or other document delivered hereunder or
thereunder or in connection herewith or therewith, (iii) the performance or observance of any of
the covenants, agreements or other terms or conditions set forth herein or therein (including the
use of proceeds) or the occurrence or continuance of any Default or Event of Default, (iv) the
execution, validity,

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enforceability, effectiveness, genuineness or admissibility into evidence of this Agreement,
any other Financing Document or any other agreement, instrument or document, or the creation,
perfection or priority of any Lien or security interest created or purported to be created by any
Security Document (or title to or rights in any Collateral under any Security Document), or (v) the
satisfaction of any condition set forth in ARTICLE VI (Conditions Precedent) or elsewhere
herein, other than to confirm receipt of items expressly required to be delivered to any such
Agent.

     (d) Each Agent may (but shall not be obligated to do so), unless and until it shall have
received directions from the Required Lenders, take such action or refrain from taking such action
in respect of a Default or Event of Default of which such Agent has been advised in writing by the
Required Lenders as it shall reasonably deem advisable in the best interests of the Lenders.

     (e) Each Agent may refrain from acting in accordance with any instructions of the Lenders, or
(in the case of the Collateral Agent) the Administrative Agent, until it has been indemnified
and/or secured to its satisfaction against any and all costs, expenses or liabilities (including
legal fees and expenses) which it would or might reasonably be expected to incur as a result.

     (f) No Agent shall be required to advance or expend any funds or otherwise incur any financial
liability in the performance of its duties or the exercise of its powers or rights hereunder or
under any Financing Document to which it is party unless it has been provided with security or
indemnity reasonably satisfactory to it against any and all liability or expense which may be
incurred by it by reason of taking or continuing to take such action.

     Section 9.04 Reliance by Agents. Each Agent shall be entitled to rely upon, and shall
not (nor shall any of its directors, officers, employees or agents) incur any liability for relying
upon, any notice, request, certificate, consent, statement, instrument, document or other writing
(including any electronic message, internet or intranet website posting or other distribution)
reasonably believed by it to be genuine and to have been signed, sent or otherwise authenticated by
the proper Person. Each Agent also may rely upon any statement made to it orally or by telephone
and reasonably believed by it to have been made by the proper Person, and shall not incur any
liability for relying thereon. In determining compliance with any condition hereunder to the
Effective Date that by its terms must be fulfilled to the satisfaction of a Lender, each Agent may
presume that such condition is satisfactory to such Lender unless such Agent shall have received
written notice to the contrary from such Lender prior to the Effective Date. Each Agent may
consult with legal counsel (who may be counsel for the Borrower), independent accountants and other
experts reasonably selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel,

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accountants or experts. Each Agent may at any time and from time to time solicit written
instructions in the form of directions from the Required Lenders or an order of a court of
competent jurisdiction as to any action that it may be requested or required to take, or that it
may propose to take, in the performance of any of its obligations under this Agreement or any other
Financing Document to which it is party.

     Section 9.05 Delegation of Duties. Each Agent may perform any and all of its duties
and exercise any and all its rights and powers hereunder or under any other Financing Document by
or through any one or more sub-agents appointed by such Agent. Absent gross negligence or willful
misconduct in selecting a sub-agent, no Agent shall be responsible for any action of, or failure to
act by, any sub-agent that has been approved by the Required Lenders. Each Agent and any such
sub—agent may perform any and all of its duties and exercise its rights and powers by or through
their respective Related Parties. The exculpatory provisions of this ARTICLE IX shall
apply to any such sub-agent and to the Related Parties of such Agent and any such sub-agent, and
shall apply to their respective activities in connection with their acting as Agent.

     Section 9.06 Resignation or Removal of Agent. (a) Any Agent may resign from the
performance of all its functions and duties hereunder and/or under the other Financing Documents at
any time by giving thirty (30) days’ prior notice to the Borrower and the Lenders. Any Agent may
be removed at any time by the Required Lenders. Such resignation or removal shall take effect upon
the appointment of a successor Agent, in accordance with this Section 9.06.

     (b) Upon any notice of resignation by any Agent or upon the removal of any Agent by the
Required Lenders, the Required Lenders shall appoint a successor Agent hereunder and under each
other Financing Document who shall be a commercial bank having a combined capital and surplus of at
least two hundred fifty million Dollars ($250,000,000). So long as no Event of Default has
occurred and is continuing, such appointment shall be subject to the Borrower’s approval (such
approval not to be unreasonably withheld, conditioned or delayed).

     (c) If no successor Agent has been appointed by the Required Lenders within thirty (30) days)
after the date such notice of resignation was given by such Agent or the Required Lenders elected
to remove such Agent, any Senior Secured Party may petition any court of competent jurisdiction for
the appointment of a successor Agent. Such court may thereupon, after such notice, if any, as it
may deem proper, appoint a successor Agent, as applicable, who shall serve as Agent hereunder and
under each other Financing Document until such time, if any, as the Required Lenders appoint a
successor Agent, as provided above.

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     (d) Upon the acceptance of a successor’s appointment as Agent hereunder, such successor shall
succeed to and become vested with all of the rights, powers, privileges and duties of the retiring
(or removed) Agent, and the retiring (or removed) Agent shall be discharged from all of its duties
and obligations hereunder and under the other Financing Documents. After the retirement or removal
of any Agent hereunder and under the other Financing Documents, the provisions of this ARTICLE
IX shall continue in effect for the benefit of such retiring (or removed) Agent, its sub-agents
and their respective Related Parties in respect of any actions taken or omitted to be taken by any
of them while such Agent was acting as Agent.

     (e) If a retiring (or removed) Agent is the Collateral Agent, such Collateral Agent will
promptly transfer any Collateral in the possession or control of such Collateral Agent to the
successor Collateral Agent and will, subject to payment of its reasonable costs and expenses
(including counsel fees and expenses), execute and deliver such notices, instructions and
assignments as may be reasonably necessary or desirable to transfer the rights of the Collateral
Agent with respect to such Collateral property to the successor Collateral Agent.

     Section 9.07 No Amendment to Duties of Agent Without Consent. No Agent shall be bound
by any waiver, amendment, supplement or modification of this Agreement or any other Financing
Document that affects its rights or duties hereunder or thereunder unless such Agent shall have
given its prior written consent, in its capacity as Agent, thereto.

     Section 9.08 Non-Reliance on Agent and Other Lenders. Each Lender acknowledges that
it has, independently and without reliance upon any Agent or any other Lender or any of their
Related Parties and based on such documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement and make its Loans. Each Lender also
acknowledges that it will, independently and without reliance upon any Agent or any other Lender or
any of their Related Parties and based on such documents and information as it shall from time to
time deem appropriate, continue to make its own decisions in taking or not taking action under or
based upon this Agreement, any other Financing Document or any related agreement or any document
furnished hereunder or thereunder.

     Section 9.09 [Intentionally Omitted].

     Section 9.10 Collateral Agent May File Proofs of Claim. (a) In case of the pendency
of any Insolvency or Liquidation Proceeding relative to the Borrower or the Pledgor (including any
event described in Section 8.01(h) (Events of Default — Bankruptcy, Insolvency), the
Collateral Agent (irrespective of whether the principal of any Loan shall then be due and payable
as herein expressed or by declaration or

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otherwise and irrespective of whether the Collateral Agent or any other Senior Secured Party
shall have made any demand on the Borrower) shall be entitled and empowered, but shall not be
obligated, by intervention in such proceeding or otherwise:

	 	(i)	 	to file and prove a claim for the whole amount
of the principal and interest owing and unpaid in respect of the Loans
and all other Obligations that are owing and unpaid and to file such
other documents as may be necessary or advisable in order to have the
claims of the Senior Secured Parties (including any claim for the
reasonable compensation, expenses, disbursements and advances of the
Senior Secured Parties and their respective agents and counsel and all
other amounts due the Senior Secured Parties under Section 3.12
(Fees), Section 10.06 (Costs and Expenses) and Section
10.08 (Indemnification by the Borrower)) allowed in such judicial
proceeding; and
	 
	 	(ii)	 	to collect and receive any monies or other
property payable or deliverable on any such claims and to distribute
the same.

     (b) Any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar
official in any such judicial proceeding is hereby authorized by each Lender to make such payments
to the Collateral Agent and, in the event that the Collateral Agent consents to the making of such
payments directly to the Lenders, to pay to the Collateral Agent any amount due for the reasonable
compensation, expenses, disbursements and advances of the Agents and their respective agents and
counsel, and any other amounts due the Agents under Section 3.12 (Fees), Section 10.06
(Costs and Expenses) and Section 10.08 (Indemnification by the Borrower).

     (c) Nothing contained herein shall be deemed to authorize the Collateral Agent to authorize or
consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement,
adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the
Collateral Agent to vote in respect of the claim of any Lender in any such proceeding.

     Section 9.11 Collateral Matters. (a) The Senior Secured Parties irrevocably
authorize the Collateral Agent to release any Lien on any property granted to or held by the
Collateral Agent under any Financing Document for the benefit of the Senior Secured Parties (i)
upon the occurrence of the Security Discharge Date, (ii) if approved, authorized or ratified in
writing in accordance with Section 10.01 (Amendments, Etc.) or (iii) as permitted pursuant
to the terms of the Financing

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Documents (including as contemplated by Section 7.02(f) (Negative Covenants — Asset
Dispositions)).

     (b) Upon request by the Collateral Agent at any time and from time to time, the Lenders will
confirm in writing the Collateral Agent’s authority to release its interest in particular types or
items of property pursuant to this Section 9.11. In each case as specified in this
Section 9.11, the Collateral Agent will, at the Borrower’s expense, execute and deliver to
the Borrower or the Pledgor, as the case may be, such documents as such Person may reasonably
request to evidence the release of such item of Collateral from the assignment and security
interest granted under the Security Documents in accordance with the terms of the Financing
Documents and this Section 9.11.

     (c) Except for the safe custody of any Collateral in its possession and the accounting for
moneys actually received by it hereunder or under any of the other Financing Documents to which it
is party, the Collateral Agent shall have no duty as to any Collateral, as to ascertaining or
taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters
relative to any Collateral, whether or not the Collateral Agent is deemed to have knowledge of such
matters, or as to taking of any necessary steps to preserve rights against any parties or any other
rights pertaining to any Collateral (including the filing of UCC continuation statements). The
Collateral Agent shall be deemed to have exercised appropriate and due care in the custody and
preservation of any Collateral in its possession if such Collateral is accorded treatment
substantially equal to that which other collateral agents accord similar property.

     Section 9.12 Copies. Each Agent shall (a) give prompt notice to each Lender of each
material notice or request required or permitted to be given to such Agent by the Borrower pursuant
to the terms of this Agreement or any other Financing Document (other than instructions for the
transfer of funds from Project Accounts pursuant to the Accounts Agreement or if otherwise
concurrently delivered to the Lenders by the Borrower) and (b) promptly distribute to each Lender
each document or instrument (including each document or instrument delivered by the Borrower to
such Agent pursuant to ARTICLE V (Representations and Warranties), ARTICLE VI
(Conditions Precedent) and ARTICLE VII (Covenants)) received for its account and copies
of all other communications received by such Agent from the Borrower for distribution to the
Lenders by such Agent in accordance with the terms of this Agreement or any other Financing
Document.

     Section 9.13 Amendment to Financing Documents. Each Lender hereby consents to the
execution, delivery and performance by the Agents of each of the Financing Documents (described in
clauses (i) though (vii) of the definition thereof) dated on or about the date hereof and to which
an Agent is a party.

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     Section 9.14 Indemnification. Without limiting the Obligations of the Borrower, each
Lender agrees to indemnify each Agent (or any sub-agent thereof) and any Related Party of any of
the foregoing (the “Indemnified Party”), ratably in accordance with such Lender’s Loan
Percentage (or if indemnification is sought after the date upon which the Obligations have been
paid in full, ratably in accordance with such Lender’s Loan Percentage immediately prior to such
date) for any and all losses, claims, damages, liabilities and expenses (including all fees, costs
and expenses of counsel for any Indemnified Party) which may at any time (including after the
Obligations have been paid in full) be imposed on, incurred by or asserted against such Indemnified
Party in any way relating to or arising out of this Agreement, the Restructuring Agreement, the
Original Credit Agreement, any other Transaction Document (as defined herein or in the Original
Credit Agreement) or any documents contemplated by or referred to herein or therein or the
transactions contemplated hereby or thereby or the enforcement of any of the terms hereof or
thereof or of any such other documents or any action taken or omitted to be taken by such
Indemnified Party (to the extent the Borrower has not paid any such amounts pursuant to Section
10.08 (Indemnification by the Borrower) and without limiting its obligation to do so);
provided that no Lender shall be liable for any of the foregoing found in a final and
Non-Appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified
Party’s gross negligence or willful misconduct. The Administrative Agent or any such Indemnified
Party shall be fully justified in refusing to take or to continue to take any action under any
Financing Document unless it shall first be indemnified to its satisfaction by the Lenders against
any and all liability and expense which may be incurred by it by reason of taking or continuing to
take any such action. Without limitation of the foregoing, each Lender agrees to reimburse the
Indemnified Parties promptly upon demand for such Lender’s Loan Percentage of any out-of-pocket
expenses (including counsel fees and disbursements and allocated staff costs) incurred by the
Indemnified Party in connection with the preparation, execution, administration or enforcement of,
or legal advice in respect of rights or responsibilities under, this Agreement, the Restructuring
Agreement, the Original Credit Agreement, any other Transaction Document (as defined herein or in
the Original Credit Agreement), to the extent that the Indemnified Party is not reimbursed for
such expenses by the Borrower. The agreements in this Section 9.14 (Indemnification) shall
survive the satisfaction or discharge of the Obligations. The Lenders agree and acknowledge that
the Accounts Bank is an intended third party beneficiary of this Section 9.14
(Indemnification). The obligations of the Lenders to make payments pursuant to this Section
9.14 are several and not joint.

     Section 9.15 No Liability for Clean-up of Hazardous Materials. If the Collateral
Agent is required to acquire title to an asset for any reason, or take any managerial action of any
kind in regard thereto, in order to carry out any duty or obligation for the benefit of another,
which in the Collateral Agent’s sole discretion may

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cause the Collateral Agent to be considered an “owner or operator” under any Environmental
Laws or otherwise cause the Collateral Agent to incur, or be exposed to, any environmental
liabilities or any liability under any other federal, state or local law, the Collateral Agent
reserves the right, instead of taking such action, either to resign as Collateral Agent or to
arrange for the transfer of the title or control of the asset to a court-appointed receiver. The
Collateral Agent will not be liable to any Person for any environmental liabilities or any
environmental claims or contribution actions under any federal, state or local law, rule or
regulation by reason of the Collateral Agent’s action and conduct as authorized, empowered or
directed hereunder or relating to any kind of discharge or release or threatened discharge or
release of any Materials of Environmental Concern into the environment.

ARTICLE X

MISCELLANEOUS PROVISIONS

     Section 10.01 Amendments, Etc. No amendment or waiver of any provision of this
Agreement or any other Financing Document, and no consent to any departure by the Borrower, any
Pledgor or any party (other than a Senior Secured Party) to the Accounts Agreement therefrom, shall
be effective unless in writing signed by the Required Lenders (or, if expressly contemplated
hereby, the Administrative Agent) and, in the case of an amendment, the Borrower or such Pledgor,
as the case may be, and in each such case acknowledged by the Administrative Agent, and each such
waiver or consent shall be effective only in the specific instance and for the specific purpose for
which given; provided that no such amendment, waiver or consent shall:

     (a) reinstate or provide for a commitment by any Lender to provide Loans or other credit
without the prior written consent of such Lender (other than any Non-Voting Lender);

     (b) postpone any date scheduled for any payment of principal under Section 3.01 (Repayment
of Loans) or interest under Section 3.02 (Interest Payment Dates), or postpone any date
for the payment of fees or other amounts due to the Lenders (or any of them) hereunder or under any
other Financing Document, in each case without the prior written consent of each Lender affected
thereby (other than any Non-Voting Lender);

     (c) reduce the principal of, or the rate of interest specified herein on, any Loan, or any
Fees or other amounts (including any mandatory prepayments under Section 3.08 (Mandatory
Prepayment)) payable hereunder or under any other Financing Document to any Lender without the
prior written consent of each Lender affected thereby (other than any Non-Voting Lender);
provided that only the prior written consent

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of the Required Lenders shall be necessary to amend the definition of Default Rate or to waive
any obligation of the Borrower to pay interest at the Default Rate;

     (d) change the order of application of any prepayment of Loans from the application thereof
set forth in provisions of Section 3.10 (Provisions Applicable to All Prepayments) in any
manner without the prior written consent of each Lender affected thereby (other than any Non-Voting
Lender);

     (e) change any provision of this Section 10.01, the definition of Required Lenders or
any other provision of any Financing Document specifying the number or percentage of Lenders
required to amend, waive or otherwise modify any rights under any Financing Document (including any
such provision specifying the number or percentage of Lenders required to waive any Event of
Default or forbear from taking any action or pursuing any remedy with respect to any Event of
Default), or make any determination or grant any consent under any Financing Document, without the
prior written consent of each Lender (other than any Non-Voting Lender);

     (f) release (i) the Borrower from all or substantially all of its obligations (except for
obligations that are expressly covered in clauses (a) — (e) above or (g) — (i) below) under any
Financing Document, (ii) Collateral with a fair market value, or a disposal price, of more than
fifteen million Dollars ($15,000,000) in any transaction or series of related transactions, or
(iii) the Collateral (as defined in the Pledge Agreement), without the prior written consent of
each Lender (other than any Non-Voting Lender);

     (g) change any provision that requires ratable treatment of Lenders in accordance with
Section 3.13 (Pro Rata Treatment) without the prior written consent of each Lender (other
than any Non-Voting Lender) that would be denied ratable treatment by such change;

     (h) amend the order of payments set forth in Section 4.01(c) of the Accounts Agreement without
the prior written consent of each Lender (other than any Non-Voting Lender);

     (i) amend the order of payments set forth in Section 8.04 (Application of Proceeds)
without the prior written consent of each Lender;

and provided further that (i) no amendment, waiver or consent shall, unless in
writing and signed by an Agent in addition to the Lenders required above, affect the rights or
duties of, or any fees or other amounts payable to, such Agent under this Agreement or any other
Financing Document; and (ii) Section 10.03(h) (Assignments) may not be amended, waived or
otherwise modified without the prior written consent of each Granting Lender

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all or any part of whose Loan is being funded by an SPV at the time of such amendment, waiver or
other modification.

     Notwithstanding the other provisions of this Section 10.01, the Borrower, the
Collateral Agent and the Administrative Agent may (but shall have no obligation to) amend or
supplement the Financing Documents without the consent of any Lender solely: (i) to cure any
ambiguity, defect or inconsistency; (ii) to make any change that would provide any additional
rights or benefits to the Lenders or (iii) to make, complete or confirm any grant of Collateral
permitted or required by this Agreement or any of the Security Documents or any release of any
Collateral that is otherwise permitted under the terms of this Agreement and the Security
Documents.

     Section 10.02 Applicable Law; Jurisdiction; Etc. (a) GOVERNING LAW. THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, UNITED STATES OF AMERICA, WITHOUT REFERENCE TO CONFLICTS OF LAWS (OTHER THAN SECTION 5-1401
OF THE NEW YORK GENERAL OBLIGATIONS LAW).

     (b) SUBMISSION TO JURISDICTION. THE BORROWER IRREVOCABLY AND UNCONDITIONALLY SUBMITS,
FOR ITSELF AND ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW
YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT
OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR ANY OTHER FINANCING DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF
ANY JUDGMENT, AND THE BORROWER IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF
ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. THE BORROWER AGREES THAT A
FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS
AGREEMENT OR IN ANY OTHER FINANCING DOCUMENT SHALL AFFECT ANY RIGHT THAT ANY SENIOR SECURED PARTY
MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER
FINANCING DOCUMENT AGAINST THE BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

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     (c) WAIVER OF VENUE. THE BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
OTHER FINANCING DOCUMENT IN ANY COURT REFERRED TO IN SECTION 10.02(b). THE BORROWER HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

     (d) Appointment of Process Agent and Service of Process. The Borrower hereby
irrevocably appoints C T Corporation System, with an office on the date hereof at 111 Eighth
Avenue, New York, New York 10011, as its agent to receive on behalf of itself services of copies of
the summons and complaint and any other process that may be served in any such action or proceeding
in the State of New York. If for any reason the Process Agent shall cease to act as such for any
Person, such Person hereby agrees to designate a new agent in New York City on the terms and for
the purposes of this Section 10.02 reasonably satisfactory to the Administrative Agent.
Such service may be made by mailing or delivering a copy of such process to such Person in care of
the Process Agent at the Process Agent’s above address, and the Borrower hereby irrevocably
authorizes and directs the Process Agent to accept such service on its behalf. As an alternative
method of service, the Borrower also irrevocably consents to the service of any and all process in
any such action or proceeding by the air mailing of copies of such process to such Person at its
then effective notice addresses pursuant to Section 10.11 (Notices and Other
Communications). Nothing in this Agreement shall affect any right that any party may otherwise
have to bring any action or proceeding relating to this Agreement or any other Financing Document
in the courts of any jurisdiction.

     (e) Immunity. To the extent that the Borrower has or hereafter may acquire any
immunity from jurisdiction of any court or from any legal process (whether through service or
notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with
respect to itself or its property, the Borrower hereby irrevocably and unconditionally waives such
immunity in respect of its obligations under the Financing Documents and, without limiting the
generality of the foregoing, agrees that the waivers set forth in this Section 10.02(e)
shall have the fullest scope permitted under the Foreign Sovereign Immunities Act of 1976 of the
United States and are intended to be irrevocable for purposes of such Act.

     (f) WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY

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LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
OTHER FINANCING DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (i) CERTIFIES THAT NO REPRESENTATIVE, AGENT
OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (ii) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER
FINANCING DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 10.02.

     Section 10.03 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, except that the Borrower may not assign or otherwise transfer any of its rights
or obligations hereunder without the prior written consent of each Agent and Lender, and no Lender
may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an
Eligible Assignee in accordance with Section 10.03(b) (ii) by way of participation in
accordance with Section 10.03(d), (iii) by way of pledge or assignment of a security
interest subject to the restrictions of Section 10.03(f), or (iv) to an SPV in accordance
with the provisions of Section 10.03(h) (and any other attempted assignment or transfer by
any party hereto shall be null and void). Nothing in this Agreement, express or implied, shall be
construed to confer upon any Person (other than the parties hereto, their respective successors and
assigns permitted hereby, Participants to the extent provided in this Section 10.03 and, to
the extent expressly contemplated hereby, the Related Parties of each Agent and Lender) any legal
or equitable right, remedy or claim under or by reason of this Agreement.

     (b) Any Lender may at any time after the date hereof assign to one or more Eligible Assignees
all or a portion of its rights and obligations under this Agreement (including all or a portion of
the Loans at the time owing to it); provided that (i) except in the case of an assignment
of the entire remaining amount of the assigning Lender’s Loans at the time owing to the assigning
Lender or in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund
with respect to a Lender, the principal outstanding balance of the Loans of the assigning
Lender subject to each such assignment, determined as of the date the Lender Assignment
Agreement with respect to such assignment is delivered to the Administrative Agent or, if “Trade
Date” is specified in the Lender Assignment Agreement, as of the Trade Date, shall not be less than
one million Dollars ($1,000,000), unless the Administrative Agent otherwise consents in writing;
(ii) 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 with respect

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to the Loans assigned; (iii) the parties to each assignment shall execute and deliver to the
Administrative Agent a Lender Assignment Agreement, together with a processing and recordation fee
of two thousand five hundred Dollars ($2,500); provided that (A) no such fee shall be
payable in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund with
respect to a Lender and (B) in the case of contemporaneous assignments by a Lender to one or more
Approved Funds managed by the same investment advisor (which Approved Funds are not then Lenders
hereunder), only a single such two thousand five hundred Dollar ($2,500) fee shall be payable for
all such contemporaneous assignments and (iv) the Eligible Assignee, if it is not a Lender prior to
such assignment, shall deliver to the Administrative Agent an administrative questionnaire.
Subject to acceptance and recording thereof by the Administrative Agent pursuant to Section
10.03(c), on and after the effective date specified in each Lender Assignment Agreement, the
Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest
assigned by such Lender Assignment Agreement, 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 Lender Assignment Agreement, be released from its obligations under this Agreement (and, in
the case of a Lender Assignment Agreement 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 4.01 (Eurodollar Rate Lending Unlawful),
Section 4.03 (Increased Eurodollar Loan Costs), Section 4.05 (Funding Losses),
Section 10.06 (Costs and Expenses) and Section 10.08 (Indemnification by the
Borrower) with respect to facts and circumstances occurring prior to the effective date of such
assignment). Upon request, the Borrower (at its expense) shall execute and deliver a Note or Notes
to the assignee Lender. Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this Section 10.03(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 10.03(d).

     (c) The Administrative Agent, acting solely for this purpose as an agent of the Borrower,
shall maintain at the Administrative Agent’s office a copy of each Lender Assignment Agreement
delivered to it and a register for the recordation of the names and addresses of the Lenders, and
principal amount of the Loans owing to, each Lender pursuant to the terms hereof from time to time
(the “Register”). The entries in the Register shall be conclusive, and the Borrower, the
Agents 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 the Borrower at any reasonable
time and from time to time upon reasonable prior notice. In addition, at any time that a request
for a consent for a material or other substantive change to the

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Financing Documents is pending, any Lender may request and receive from the Administrative
Agent a copy of the Register.

     (d) Any Lender may at any time, without the consent of, or notice to, the Borrower or any
Agent, sell participations to any Person (each, a “Participant”) in all or a portion of
such Lender’s rights and/or obligations under this Agreement (including all or a portion of the
Loans 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) the Borrower, the Agents 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, waiver or other modification described in
the first proviso to Section 10.01 (Amendments, Etc.) that directly affects such
Participant. Subject to Section 10.03(e), the Borrower agrees that each Participant shall
be entitled to the benefits of Section 4.01 (Eurodollar Rate Lending Unlawful), Section
4.03 (Increased Eurodollar Loan Costs) and Section 4.05 (Funding Losses), to the same
extent as if it were a Lender and had acquired its interest by assignment pursuant to Section
10.03(b). To the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 10.14 (Right of Setoff) as though it were a Lender; provided
such Participant agrees to be subject to Section 3.14 (Sharing of Payments) as though it
were a Lender.

     (e) A Participant shall not be entitled to receive any greater payment under Section 4.01
(Eurodollar Rate Lending Unlawful) or Section 4.03 (Increased Eurodollar Loan Costs)
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 the
prior written consent of the Borrower.

     (f) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement (including under its Notes, if any) to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank;
provided that no such pledge or assignment shall release such Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

     (g) The words “execution,” “signed,” “signature,” and words of like import in any Lender
Assignment Agreement shall be deemed to include electronic signatures or the keeping of records in
electronic form, each of which shall be of the

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same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.

     (h) Notwithstanding anything to the contrary contained herein, any Lender (a “Granting
Lender”) may grant to a special purpose funding vehicle identified as such in writing from time
to time by the Granting Lender to the Administrative Agent and the Borrower (an “SPV”) the
option to provide all or any part of any Loan that such Granting Lender would otherwise be
obligated to make pursuant to this Agreement; provided that (i) nothing herein shall
constitute a commitment by any SPV to fund any Loan, and (ii) if an SPV elects not to exercise such
option or otherwise fails to make all or any part of such Loan, the Granting Lender shall be
obligated to make such Loan pursuant to the terms hereof or, if it fails to do so, to make such
payment to the Administrative Agent as is required under Section 3.15 (Sharing of
Payments). Each party hereto hereby agrees that (A) neither the grant to any SPV nor the
exercise by any SPV of such option shall increase the costs or expenses or otherwise increase or
change the obligations of the Borrower under this Agreement (including their obligations under
Section 4.03 (Increased Eurodollar Loan Costs), (B) no SPV shall be liable for any
indemnity or similar payment obligation under this Agreement for which a Lender would be liable,
and (C) the Granting Lender shall for all purposes, including the approval of any amendment, waiver
or other modification of any provision of any Financing Document, remain the lender of record
hereunder. The making of a Loan by an SPV hereunder shall utilize the commitment of the Granting
Lender to the same extent, and as if, such Loan were made by such Granting Lender. In furtherance
of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of
this Agreement) that, prior to the date that is one (1) year and one (1) day after the payment in
full of all outstanding commercial paper or other senior debt of any SPV, it will not institute
against, or join any other Person in instituting against, such SPV in any Insolvency or Liquidation
Proceeding under the laws of the United States or any State thereof. Notwithstanding anything to
the contrary contained herein, any SPV may (1) with notice to, but without prior consent of the
Administrative Agent and without paying any processing fee therefor, assign all or any portion of
its right to receive payment with respect to any Loan to the Granting Lender and (2) disclose on a
confidential basis any non-public information relating to its funding of any Loan to any rating
agency, commercial paper dealer or provider of any surety or Guarantee or credit or liquidity
enhancement to such SPV.

     (i) Marshall Financial Group, LLC, hereby represents and warrants that it has assigned all of
its rights or obligations under the Original Loan Agreement to

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OSM Heartland, LLC. The parties hereto acknowledge that OSM Heartland, LLC shall be a Lender
hereunder as an assignee of Marshall Financial Group, LLC.

     Section 10.04 Benefits of Agreement. Except as expressly provided in the last
sentence of Section 10.08(b) (Indemnification by Borrower) nothing in this Agreement or any
other Financing Document, express or implied, shall give to any Person, other than the parties
hereto and thereto, and each of their successors and permitted assigns under this Agreement or any
other Financing Document, any benefit or any legal or equitable right or remedy under this
Agreement.

     Section 10.05 Consultants. (a) The Required Lenders acting jointly or the
Administrative Agent may, in their sole discretion, appoint any Consultant for the purposes
specified herein. If any of the Consultants is removed or resigns and thereby ceases to act for
purposes of this Agreement and the other Financing Documents, the Required Lenders acting jointly
or the Administrative Agent, as the case may be, shall designate a Consultant in replacement.

     (b) The Borrower shall reimburse each Consultant appointed hereunder for the reasonable fees
and documented expenses of such Consultant retained on behalf of the Lenders pursuant to this
Section 10.05.

     (c) In all cases in which this Agreement provides for any Consultant to “agree,” “approve,”
“certify” or “confirm” any report or other document or any fact or circumstance, such Consultant
may make the determinations and evaluations required in connection therewith based upon information
provided by the Borrower or other sources reasonably believed by such Consultant to be
knowledgeable and responsible, without independently verifying such information; provided
that, notwithstanding the foregoing, such Consultant shall engage in such independent
investigations or findings as it may from time to time deem necessary in its reasonable discretion
to support the determinations and evaluations required of it.

     Section 10.06 Costs and Expenses. The Borrower shall pay (a) all reasonable and
documented out-of-pocket expenses incurred by the Lenders and the Agents (including all reasonable
fees, costs and expenses of counsel and financial advisors), in connection with the preparation,
negotiation, syndication, execution and delivery of this Agreement and the other Financing
Documents (whether or not the transactions contemplated hereby or thereby are consummated); (b) all
reasonable out-of-pocket expenses incurred by the Lenders and the Agents (including all reasonable
fees, costs and expenses of counsel and financial advisors), in connection with any amendments,
modifications or waivers of the provisions of this Agreement and the other Financing Documents
(whether or not the transactions contemplated hereby or thereby are consummated); (c) all
out-of-pocket expenses incurred by the Agents (including all

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reasonable fees, costs and expenses of counsel for any Agent and financial advisors for the
Administrative Agent), in connection with the administration of this Agreement and the other
Financing Documents (whether or not the transactions contemplated hereby or thereby are
consummated); and (d) all out-of-pocket expenses incurred by the Agents or any Lender (including
all fees, costs and expenses of counsel for any Senior Secured Party and financial advisors for the
Administrative Agent), in connection with the enforcement or protection of its rights in connection
with this Agreement and the other Financing Documents, including its rights under this Section
10.06, including in connection with any workout, restructuring or negotiations in respect of
the Obligations.

     Section 10.07 Counterparts; Effectiveness. (a) This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement shall become effective when it has been executed by the Administrative Agent and
when the Administrative Agent has received counterparts hereof that, when taken together, bear the
signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature
page of this Agreement by telecopy or portable document format (“pdf”) shall be effective
as delivery of a manually executed counterpart of this Agreement.

     (b) With effect on and from the Effective Date, the Original Credit Agreement shall be amended
and restated in its entirety by this Agreement and the rights and obligations of the parties under
the Original Credit Agreement shall be governed by and construed in accordance with this Agreement.
Except for purposes of Section 6.01 (Conditions to Effectiveness), the performance of the
parties’ obligations under this Agreement prior to the Effective Date shall be deemed to be
governed by and construed in accordance with the Original Credit Agreement.

     Section 10.08 Indemnification by the Borrower. (a) In addition to the indemnity by
the Borrower set forth in Section 10.11(f) (Notices and Other Communications), the Borrower
hereby agrees to indemnify each Agent (and any sub-agent thereof), each Lender and each Related
Party of any of the foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities
and expenses (including all reasonable fees, costs and expenses of counsel for any Indemnitee),
incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Borrower
arising out of, in connection with, or as a result of:

	 	(i)	 	the execution or delivery of this Agreement,
the Restructuring Agreement, the Original Credit Agreement, any other
Transaction Document (as defined herein or in the Original Credit
Agreement) or any agreement or

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	 	 	 	instrument contemplated hereby or thereby, the performance by the
parties hereto or thereto of their respective obligations
hereunder or thereunder or the consummation of the transactions
contemplated hereby or thereby;
	 
	 	(ii)	 	any Loan or the use or proposed use of the
proceeds therefrom;
	 
	 	(iii)	 	any actual or alleged presence, release or
threatened release of Materials of Environmental Concern on or from the
Project or any property owned, leased or operated by the Borrower, or
any liability or costs pursuant to an Environmental Law related in any
way to the Project, the Sites or the Borrower;
	 
	 	(iv)	 	any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether
based on contract, tort or any other theory, whether brought by a third
party, the Pledgor or any of its shareholders, directors, members,
managers or creditors, the Borrower or any of its partners or
creditors, and in each case regardless of whether any Indemnitee is a
party thereto and whether or not any of the transactions contemplated
hereunder or under any of the other Financing Documents is consummated,
in all cases, whether or not caused by or arising, in whole or in part,
out of the comparative, contributory or sole negligence of the
Indemnitee; and/or
	 
	 	(v)	 	any claim, demand or liability for broker’s or
finder’s or placement fees or similar commissions, whether or not
payable by the Borrower, alleged to have been incurred in connection
with such transactions, other than any broker’s or finder’s fees
payable to Persons engaged by the Lenders or the Agents without the
knowledge of the Borrower;

     provided that such indemnity shall not, as to any Indemnitee, be available to the
extent that such losses, claims, damages, liabilities or related expenses are determined by a court
of competent jurisdiction by final and Non-Appealable judgment to have resulted from the gross
negligence or willful misconduct of such Indemnitee, and in no event shall the Borrower be
responsible for or indemnify any Indemnitee for any losses comprised of (a) the fifty percent (50%)
of the Disputed Subordinated Interest

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Payment retained by the Bond Trustee (as each such term is defined in the Restructuring
Agreement) and (b) the reduction to zero, pursuant to the Restructuring Agreement, of interest
accrued on outstanding Loans and outstanding Net Swap Payments owing to any Interest Rate
Protection Provider (as each such term is defined in the Original Credit Agreement) through the
Effective Date.

     (b) The Borrower hereby agrees to indemnify each Agent (and any sub-agent thereof) and each
Related Party of any of the foregoing Persons (each such Person being called a “Restructuring
Indemnitee”) against, and hold each Restructuring Indemnitee harmless from, any and all losses,
damages, liabilities and expenses (including all reasonable fees, costs and expenses of counsel for
any Restructuring Indemnitee), incurred by any Restructuring Indemnitee in connection with or in
relation to any claim (whether before or after such claim is actually brought) asserted against any
Restructuring Indemnitee by any other Indemnitee arising out of, in connection with, or as a result
of the execution or delivery of the Restructuring Agreement, the performance by the parties thereto
of their respective obligations thereunder or the consummation of the transactions contemplated
thereby; provided that such indemnity shall not, as to any Restructuring Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or related expenses are
determined by a court of competent jurisdiction by final and Non-Appealable judgment to have
resulted from the gross negligence or willful misconduct of such Restructuring Indemnitee. The
Administrative Agent and the Collateral Agent each acknowledges to the Borrower that, as of the
date of this Agreement, it has no knowledge of any claims asserted against it by any other
Indemnitee that would result in any Restructuring Indemnitee seeking indemnification rights under
this Section 10.08(b).

     (c) Except as otherwise provided in ARTICLE VI (Conditions Precedent), all amounts due
under this Section 10.08 shall be payable not later than ten (10) Business Days after
demand therefor.

     Section 10.09 Interest Rate Limitation. Notwithstanding anything to the contrary
contained in any Financing Document, the interest paid or agreed to be paid under the Financing
Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law
(the “Maximum Rate”). If any Agent or any Lender shall receive interest in an amount that
exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if
it exceeds such unpaid principal, refunded to the Borrower. In determining whether the interest
contracted for, charged, or received by any Agent or any Lender exceeds the Maximum Rate, such
Person may, to the extent permitted by applicable Law, (a) characterize any payment that is not
principal as an expense, fee, or premium rather than interest, (b) exclude prepayments and the
effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts

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the total amount of interest throughout the contemplated term of the Obligations hereunder.

     Section 10.10 No Waiver; Cumulative Remedies. No failure by any Senior Secured Party
to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege
hereunder or under any other Financing Document shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or
further exercise thereof or the exercise of any other right, remedy, power or privilege. The
rights, remedies, powers and privileges herein provided, and provided under each other Financing
Document, are cumulative and not exclusive of any rights, remedies, powers and privileges provided
by law.

     Section 10.11 Notices and Other Communications. (a) Except in the case of notices
and other communications expressly permitted to be given by telephone (and except as provided in
Section 10.11(b)), all notices and other communications provided for herein shall be in
writing and shall be delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopier or electronic mail as follows, and all notices and other
communications expressly permitted hereunder to be given by telephone shall be made to the
applicable telephone number, as follows:

	 	(i)	 	if to the Borrower or any Agent, to the
address, telecopier number, electronic mail address or telephone number
specified for such Person on Schedule 10.11(a); and
	 
	 	(ii)	 	if to any Lender, to the address, telecopier
number, electronic mail address or telephone number specified in its
administrative questionnaire.

     (b) Notices sent by hand or overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices sent by telecopier shall be deemed
to have been given when sent (except that, if not given during normal business hours for the
recipient, such notices shall be deemed to have been given at the opening of business on the next
Business Day for the recipient). Notices delivered through electronic communications to the extent
provided in Section 10.11(d) shall be effective as provided in Section 10.11(d).

     (c) Notices and other communications to the Lenders or any Agent hereunder may be delivered or
furnished by electronic communication (including e-mail and internet or intranet websites) pursuant
to procedures approved by the Administrative Agent, and in the case of notices to the Collateral
Agent, by the Collateral Agent as well; provided that the foregoing shall not apply to notices to
any Lender pursuant to

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ARTICLE II (The Loans) if such Lender has so notified the Administrative Agent. Each
of the Administrative Agent or the Borrower may, in its discretion, agree to accept notices and
other communications to it hereunder by electronic communications pursuant to procedures approved
by it; provided that approval of such procedures may be limited to particular notices or
communications.

     (d) Unless the Administrative Agent otherwise prescribes, (i) notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement
from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement); provided that if such notice or other
communication is not received during the normal business hours of the recipient, such notice or
communication shall be deemed to have been received at the opening of business on the next Business
Day for the recipient, and (ii) notices or communications posted to an internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in Section 10.11(d)(i) of notification that such notice or communication is
available and identifying the website address therefor.

     (e) Each of the Borrower and the Agents may change its address, telecopier or telephone number
for notices and other communications hereunder by notice to the other parties hereto. Each Lender
may change its address, telecopier or telephone number for notices and other communications
hereunder by notice to the Borrower and each Agent.

     (f) The Agents and the Lenders shall be entitled to rely and act upon any written notices
purportedly given by or on behalf of the Borrower even if (i) such notices were not made in a
manner specified herein, were incomplete or were not preceded or followed by any other form of
notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any
confirmation thereof. The Borrower shall indemnify each Lender and the Related Parties of each of
them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on
each notice purportedly given by or on behalf of the Borrower. All telephonic notices to and other
telephonic communications with any Agent may be recorded by such Agent, and each of the parties
hereto hereby consents to such recording.

     (g) So long as WestLB is the Administrative Agent, the Borrower hereby agrees that it will
provide to the Administrative Agent all information, documents and other materials that it is
obligated to furnish to the Administrative Agent pursuant to the Financing Documents, including all
notices, requests, financial statements, financial and other reports, certificates and other
information materials, but excluding any such communication that (i) relates to the payment of any
principal or other amount due under this Agreement prior to the scheduled date therefor, (ii)
provides notice of any Default or

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Event of Default or (iii) is required to be delivered to satisfy any condition precedent to
the Effective Date (all such non-excluded communications being referred to herein collectively as
“Communications”), by transmitting the Communications in an electronic/soft medium in a
format acceptable to the Administrative Agent to nyc_agency_services@westlb.com. In addition, the
Borrower agrees to continue to provide the Communications to the Administrative Agent in the manner
specified in the Financing Documents but only to the extent requested by the Administrative Agent.

     (h) So long as WestLB is the Administrative Agent, the Borrower further agrees that the
Administrative Agent may make the Communications available to the Lenders by posting the
Communications on http://www.intralinks.com (or any replacement or successor thereto) or a
substantially similar electronic transmission systems (the “Platform”).

     (i) THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”. THE AGENTS DO NOT WARRANT THE
ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY
DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS. NO WARRANTY OF ANY KIND,
EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS
MADE BY THE AGENTS IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE
ADMINISTRATIVE AGENT OR ANY OF ITS AFFILIATES OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS,
EMPLOYEES, AGENTS, ADVISORS OR REPRESENTATIVES (COLLECTIVELY, “AGENT PARTIES”) HAVE ANY
LIABILITY TO THE BORROWER, ANY LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND,
INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES
(WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF THE BORROWER’S OR THE ADMINISTRATIVE
AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF
ANY AGENT PARTY IS FOUND IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO
HAVE RESULTED PRIMARILY FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

     (j) The Administrative Agent agrees that the receipt of the Communications by the
Administrative Agent at its e-mail address set forth in Schedule 10.11(a) shall constitute
effective delivery of the Communications to the Administrative Agent for purposes of the Financing
Documents. Each Lender agrees that

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notice to it (as provided in the next sentence) specifying that the Communications have been posted to the
Platform shall constitute effective delivery of the Communications to such Lender for purposes of
the Financing Documents. Each Lender agrees to notify the Administrative Agent in writing
(including by electronic communication) from time to time of such Lender’s e-mail address to which
the foregoing notice may be sent by electronic transmission and that the foregoing notice may be
sent to such e-mail address.

     (k) Notwithstanding clauses (g) to (j) above, nothing herein shall prejudice the right of any
Agent or Lender to give any notice or other communication pursuant to any Financing Document in any
other manner specified in such Financing Document.

     Section 10.12 Patriot Act Notice. Each Lender and Agent (for itself and not on behalf
of any Lender or other Agent) hereby notifies the Borrower that pursuant to the requirements of the
Patriot Act, it is required to obtain, verify and record information that identifies the Borrower,
which information includes the name and address of the Borrower and other information that will
allow such Lender or Agent, as applicable, to identify the Borrower in accordance with the Patriot
Act.

     Section 10.13 Payments Set Aside. To the extent that any payment by or on behalf of
the Borrower is made to any Agent or Lender, or any Agent or Lender exercises its right of setoff,
and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated,
declared to be fraudulent or preferential, set aside or required (including pursuant to any
settlement entered into by such Agent or Lender in its discretion) to be repaid to a trustee,
receiver or any other party, in connection with any Insolvency or Liquidation Proceeding or
otherwise, then (a) to the extent of such recovery, the Obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect as if such payment
had not been made or such setoff had not occurred, and (b) each Lender severally agrees to pay to
each Agent upon demand its applicable share (without duplication) of any amount so recovered from
or repaid by such Agent, plus interest thereon from the date of such demand to the date such
payment is made at a rate per annum equal to the Federal Funds Effective Rate from time to time in
effect. The obligations of the Lenders under Section 10.13(b) shall survive the payment in
full of the Obligations and the termination of this Agreement.

     Section 10.14 Right of Setoff. Each Lender and each of its respective Affiliates is
hereby authorized at any time and from time to time during the continuance of an Event of Default,
to the fullest extent permitted by applicable Law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final, in whatever currency) at any time held
and other obligations (in whatever currency) at any time owing by such Lender or any such Affiliate
to or for the credit or the account of the Borrower against any and all of the obligations of the
Borrower now or hereafter existing

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under this Agreement or any other Financing Document to such Lender, irrespective of whether
or not such Lender shall have made any demand under this Agreement or any other Financing Document
and although such obligations of the Borrower may be contingent or unmatured or are owed to a
branch or office of such Lender different from the branch or office holding such deposit or
obligated on such indebtedness. The rights of each Lender and their respective Affiliates under
this Section 10.14 are in addition to other rights and remedies (including other rights of
setoff) that such Lender or their respective Affiliates may have. Each Lender agrees to notify the
Borrower and the Administrative Agent promptly after any such setoff and application;
provided that the failure to give such notice shall not affect the validity of such setoff
and application.

     Section 10.15 Severability. If any provision of this Agreement or any other Financing
Document is held to be illegal, invalid or unenforceable, (a) the legality, validity and
enforceability of the remaining provisions of this Agreement and the other Financing Documents
shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith
negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the
economic effect of which comes as close as possible to that of the illegal, invalid or
unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.

     Section 10.16 Survival. Notwithstanding anything in this Agreement to the contrary,
Section 10.06 (Costs and Expenses) and Section 10.08 (Indemnification by the Borrower) shall
survive any termination of this Agreement. In addition, each representation and warranty made
hereunder and in any other Financing Document or other document delivered pursuant hereto or
thereto or in connection herewith or therewith shall survive the execution and delivery hereof and
thereof. Such representations and warranties have been or will be relied upon by each Agent and
each Lender, regardless of any investigation made by any Agent or any Lender or on their behalf and
notwithstanding that any Agent or any Lender may have had notice or knowledge of any Default or
Event of Default at the time such representation and warranty was made or deemed repeated, and
shall continue in full force and effect as long as any Loan or any other Obligation hereunder or
under any other Financing Document shall remain unpaid or unsatisfied.

     Section 10.17 Treatment of Certain Information; Confidentiality. Each of the Agents
and the Lenders agrees to maintain the confidentiality of the Information, except that Information
may be disclosed (a) to its Affiliates and to its Affiliates’ respective partners, directors,
officers, employees, agents, advisors (including legal counsel and financial advisors) and
representatives (it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep such Information
confidential); (b) to the extent

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requested or required by any regulatory authority purporting to have jurisdiction over it; (c)
to the extent required by applicable Law or regulations or by any subpoena or similar legal
process; (d) to any other party to this Agreement; (e) in connection with the exercise of any
remedies hereunder or any suit, action or proceeding relating to this Agreement or the enforcement
of rights hereunder (including any actual or prospective purchaser of Collateral); (f) subject to
an agreement containing provisions substantially the same as those of this Section 10.17,
to (i) any Eligible Assignee of or Participant in, or any prospective Eligible Assignee of or
Participant in, any of its rights or obligations under this Agreement, (ii) any direct or indirect
contractual counterparty or prospective counterparty (or such contractual counterparty’s or
prospective counterparty’s professional advisor) to any credit derivative transaction relating to
obligations of the Borrower or (iii) any Person (and any of its officers, directors, employees,
agents or advisors) that may enter into or support, directly or indirectly, or that may be
considering entering into or supporting, directly or indirectly, either (A) contractual
arrangements with such Agent or Lender, or any Affiliates thereof, pursuant to which all or any
portion of the risks, rights, benefits or obligations under or with respect to any Loan or
Financing Document is transferred to such Person or (B) an actual or proposed securitization or
collateralization of, or similar transaction relating to, all or a part of any amounts payable to
or for the benefit of any Lender under any Financing Document (including any rating agency); (g)
with the consent of the Borrower; (h) to the extent such Information (i) becomes publicly available
other than as a result of a breach of this Section 10.17 or (ii) becomes available to any
Agent, any Lender or any of their respective Affiliates on a non-confidential basis from a source
other than the Borrower; (i) to any state, federal or foreign authority or examiner (including the
National Association of Insurance Commissioners or any other similar organization) regulating any
Lender; or (j) to any rating agency when required by it (it being understood that, prior to any
such disclosure, such rating agency shall undertake to preserve the confidentiality of any
Information relating to the Borrower received by it from such Lender). In addition, each of the
Agents and the Lenders may disclose the existence of this Agreement and information about this
Agreement to market data collectors, similar service providers to the lending industry, and service
providers to the Agents and the Lenders in connection with the administration and management of
this Agreement and the other Financing Documents. For the purposes of this Section 10.17,
“Information” means written information that the Borrower furnishes to any Agent or Lender
after the date hereof (and designated at the time of delivery thereof in writing as confidential)
pursuant to or in connection with any Financing Document, relating to the assets and business of
the Borrower, but does not include any such information that (i) is or becomes generally available
to the public other than as a result of a breach by such Agent or Lender of its obligations
hereunder, (ii) is or becomes available to such Agent or Lender from a source other than the
Borrower that is not, to the knowledge of such Agent or Lender, acting in violation of a
confidentiality obligation with the Borrower or (iii) is independently compiled by any Agent or
Lender,

92

 

as evidenced by their records, without the use of the Information. Any Person required to
maintain the confidentiality of Information as provided in this Section 10.17 shall be
considered to have complied with its obligation to do so if such Person has exercised the same
degree of care to maintain the confidentiality of such Information as such Person would accord to
its own confidential information.

     Section 10.18 Waiver of Consequential Damages, Etc. Except as otherwise provided in
Section 10.08 (Indemnification by the Borrower) for the benefit of any Indemnitee, to the
fullest extent permitted by applicable Law, the Borrower shall not assert, and the Borrower hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement, any other Financing Document or any agreement
or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the
use of the proceeds thereof. No Indemnitee shall be liable for any damages arising from the use by
unintended recipients of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in connection with this
Agreement or the other Financing Documents or the transactions contemplated hereby or thereby.

     Section 10.19 Waiver of Litigation Payments. To the extent that the Borrower may, in
any action, suit or proceeding brought in any of the courts referred to in Section 10.02(b)
(Applicable Law; Jurisdiction; Etc. — Submission to Jurisdiction) or elsewhere arising out of
or in connection with this Agreement or any other Financing Document to which it is a party, be
entitled to the benefit of any provision of law requiring any Lender or any Agent in such action,
suit or proceeding to post security for the costs of such Person or to post a bond or to take
similar action, the Borrower hereby irrevocably waives such benefit, in each case to the fullest
extent now or in the future permitted under the laws of New York or, as the case may be, the
jurisdiction in which such court is located.

     Section 10.20 CONDITIONS DEEMED SATISFIED BY DELIVERY OF SIGNATURE. BY ITS EXECUTION
AND DELIVERY (AND, IN THE CASE OF DELIVERY IN ESCROW, RELEASE FROM ESCROW) OF AN EXECUTED
COUNTERPART OF A SIGNATURE PAGE OF THIS AGREEMENT (INCLUDING BY TELECOPY OR PDF) TO THE OTHER
PARTIES, EACH PARTY SHALL BE DEEMED TO HAVE CONFIRMED ITS SATISFACTION THAT ALL OF THE CONDITIONS
SET FORTH IN SECTION 6.01 (CONDITIONS TO EFFECTIVENESS) HAVE BEEN SATISFIED OR WAIVED.

     Section 10.21 Consent to Modifications to Borrower Organic Documents. The Lenders and
the Administrative Agent hereby consent to the modifications to the

93

 

Organic Documents of the Borrower being made on the Effective Date pursuant to the Borrower
LLC Agreement and the certificates of formation and conversion of the Borrower in connection with
the conversion of the Borrower from Heartland Grain Fuels, L.P. to ABE South Dakota, LLC.

[Remainder of page intentionally blank. Next page is signature page.]

94

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amended and Restated Senior Credit
Agreement to be executed by their respective officers as of the day and year first above written.

	 	 	 	 	 
	 	ABE SOUTH DAKOTA, LLC,

as Borrower

 	 
	 	By:  	/s/ Richard R. Peterson
 	 
	 	 	Name:  	Richard R. Peterson 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

Signature Page to Amended and Restated Senior Credit Agreement

 

 

	 	 	 	 	 
	 	WESTLB AG, NEW YORK BRANCH,

as Administrative Agent

 	 
	 	By:  	/s/ E. Keith Min
 	 
	 	 	Name:  	E. Keith Min 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                                         /s/ Dominick D’Ascoli
 	 
	 	 	Name:  	Dominick D’Ascoli 	 
	 	 	Title:  	Director 	 
	 
	 	WESTLB AG, NEW YORK BRANCH,

as Collateral Agent

 	 
	 	By:  	/s/ E. Keith Min
 	 
	 	 	Name:  	E. Keith Min 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                                         /s/ Dominick D’Ascoli
 	 
	 	 	Name:  	Dominick D’Ascoli 	 
	 	 	Title:  	Director 	 
	 

Signature Page to Amended and Restated Senior Credit Agreement

 

 

	 	 	 	 	 
	 	WESTLB AG, NEW YORK BRANCH,

as Lender

 	 
	 	By:  	/s/ E. Keith Min
 	 
	 	 	Name:  	E. Keith Min 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                                         /s/ Dominick D’Ascoli
 	 
	 	 	Name:  	Dominick D’Ascoli 	 
	 	 	Title:  	Director 	 
	 

Signature Page to Amended and Restated Senior Credit Agreement

 

 

	 	 	 	 	 
	 	OSM HEARTLAND, LLC,

as Lender

 	 
	 	By:  	/s/ Paul R. Ekholm
 	 
	 	 	Name:  	Paul R. Ekholm 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Amended and Restated Senior Credit Agreement

 

 

	 	 	 	 	 
	 	BANCO SANTANDER, S.A., NEW YORK BRANCH,

as Lender

 	 
	 	By:  	/s/ Harry Moreno
 	 
	 	 	Name:  	Harry Moreno 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	 	 
	 	By:  	                                         /s/ Jesus Lopez
 	 
	 	 	Name:  	Jesus Lopez 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Amended and Restated Senior Credit Agreement

 

 

	 	 	 	 	 
	 	FARM CREDIT BANK OF TEXAS,

as Lender

 	 
	 	By:  	/s/ Alan Robinson
 	 
	 	 	Name:  	Alan Robinson 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amended and Restated Senior Credit Agreement

 

 

	 	 	 	 	 
	 	COÖPERATIEVE CENTRALE

RAIFFEISEN-BOERENLEENBANK B.A., 

“RABOBANK NEDERLAND”,

NEW YORK BRANCH,

as Lender

 	 
	 	By:  	/s/ Andrew Sherman
 	 
	 	 	Name:  	Andrew Sherman 	 
	 	 	Title:  	Executive Director 	 
	 
	 	 	 
	 	By:  	                                         /s/ John McMahon
 	 
	 	 	Name:  	John McMahon 	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page to Amended and Restated Senior Credit Agreement

 

 

	 	 	 	 	 
	 	NORDKAP BANK AG,

as Lender

 	 
	 	By:  	/s/ Stefan Gerig
 	 
	 	 	Name:  	Stefan Gerig 	 
	 	 	Title:  	Chief Investment Officer 	 
	 
	 	 	 
	 	By:  	                                         /s/ Simona Kugler
 	 
	 	 	Name:  	Simona Kugler 	 
	 	 	Title:  	Portfolio Manager 	 
	 

Signature Page to Amended and Restated Senior Credit Agreement

 

 

	 	 	 	 	 
	 	KEB NY FINANCIAL CORP.,

as Lender

 	 
	 	By:  	/s/ Yeon Hak Jeong
 	 
	 	 	Name:  	Yeon Hak Jeong 	 
	 	 	Title:  	President 	 
	 
	 	 	 
	 	By:  	                                         /s/ Seung Bum Woo
 	 
	 	 	Name:  	Seung Bum Woo 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to Amended and Restated Senior Credit Agreement

 

 

	 	 	 	 	 
	 	THE PARTY BELOW IS EXECUTING THIS 

AGREEMENT SOLELY FOR PURPOSES OF 

SECTION 10.03(i):

MARSHALL FINANCIAL GROUP, LLC

a Delaware limited liability company,

as Lender under the Original Senior Credit Agreement

	 	
By: 	
OUTSOURCE SERVICES

MANAGEMENT, LLC, a Nevada

Limited Liability Company, as Attorney

In-Fact for Marshall Financial Group,
LLC

 	 
	 	By:  	/s/ Paul R. Ekholm
 	 
	 	 	Name:  	Paul R. Ekholm 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amended and Restated Senior Credit Agreement

 

 

	 	 	 	 	 
	 	THE PARTY BELOW IS EXECUTING THIS 

AGREEMENT SOLELY FOR PURPOSES OF

SECTION 10.07(b):

WESTLB AG, NEW YORK BRANCH,

as Issuing Bank under the Original Credit Agreement

 	 
	 	By:  	/s/ E. Keith Min
 	 
	 	 	Name:  	E. Keith Min 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                                         /s/ Dominick D’Ascoli
 	 
	 	 	Name:  	Dominick D’Ascoli 	 
	 	 	Title:  	Director 	 

Signature Page to Amended
and Restated Senior Credit Agreement

 

 

	 	 	 	 	 

EXHIBIT A

     “Aberdeen I Plant” means the ethanol production facility owned by the Borrower and
located in Aberdeen, South Dakota, with a nameplate capacity of approximately 9 million
gallons-per-year of denatured ethanol, including the respective Site and all buildings, structures,
improvements, easements and other property related thereto.

     “Aberdeen II License Agreement” means that certain License Agreement dated as of July
14, 2006, between the Borrower and the Technology License Provider, as amended by the Consent and
Agreement, dated as of October 1, 2007, between the Borrower, the Technology License Provider and
the Collateral Agent.

     “Aberdeen II Plant” means the ethanol production facility owned by the Borrower and
located in the same location as the Aberdeen I Plant in Aberdeen, South Dakota, with a nameplate
capacity of approximately 40 million gallons-per-year of denatured ethanol, including the
respective Site and all buildings, structures, improvements, easements and other property related
thereto.

     “Aberdeen CoBank Mortgage” means that certain Collateral Real Estate Mortgage, dated
November 6, 2008 and filed for record on December 2, 2008 at 11:15 am in Book 637, Page 27, in the
records of the Brown County Register of Deeds office, securing an indebtedness of $678,500,000,
given by South Dakota Wheat Growers Association to CoBank, ACB, a/k/a CoBank, and encumbering the
fee estate of South Dakota Wheat Growers Association in that portion of the Mortgaged Property in
Brown County in which the Borrower holds a leasehold interest pursuant to the Aberdeen Grain
Elevator Lease.

     “Aberdeen Ethanol Marketing Agreement” means that certain Exclusive Ethanol Marketing
Agreement, dated April 7, 2010, between the Borrower and Hawkeye Gold, LLC, as supplemented by the
letter agreement dated April 7, 2010 between the Borrower and Hawkeye Gold, LLC, relating to the
Aberdeen Plants.

     “Aberdeen Grain Elevator Lease” means that certain Lease Agreement, dated as of
October 1, 2007, between the Borrower as lessee and South Dakota Wheat Growers Association as
lessor, relating to the grain elevator for the Aberdeen Plants.

     “Aberdeen Mortgage” means that certain Mortgage—Collateral Real Estate Mortgage,
Security Agreement, Financing Statement, Fixture Filing and Assignment of Leases, Rents and
Security Deposits, dated as of October 1, 2007, by the Borrower to the Collateral Agent as recorded
on October 15, 2007 as instrument no. 393,

Exhibit A - 1

 

 

in book 628, page 984 et seq., in the office of the Register of Deeds of Brown County, South
Dakota, as amended and restated by the Amended and Restated Mortgage—Collateral Real Estate
Mortgage, Security Agreement, Financing Statement, Fixture Filing and Assignment of Leases, Rents
and Security Deposits, dated on or about the date hereof.

     “Aberdeen Plants” means, collectively, the Aberdeen I Plant and the Aberdeen II Plant.

     “Aberdeen Subordination, Non-Disturbance and Attornment Agreement” means that certain
Subordination, Non-Disturbance and Attornment Agreement, dated as of October 1, 2007, among COBANK,
ACB, a/k/a CoBank, as mortgagee, the Borrower as lessee and South Dakota Wheat Growers Association
as mortgagor, in relation to the Aberdeen Grain Elevator Lease, including all schedules, exhibits
and attachments thereto.

     “Acceptable Bank” means a bank whose long-term unsecured and unguaranteed debt is
rated at least “A-” (or the then-equivalent rating) by S&P or at least “A3” (or the then-equivalent
rating) by Moody’s.

     “Account Collateral” has the meaning provided in Section 2.06 (Grant of First-Priority
Security Interest) of the Accounts Agreement.

     “Account Debtor” means the Person that is obligated on or under any Account owing to
the Borrower.

     “Accounts” means all “accounts” as that term is defined in Section 9-102 of the UCC,
now or hereafter owned by the Borrower.

     “Accounts Agreement” means that certain Amended and Restated Accounts Agreement, dated
on or about the date hereof, among the Borrower, the Accounts Bank, as accounts bank and securities
intermediary, the Collateral Agent and the Administrative Agent.

     “Accounts Bank” means Amarillo National Bank, not in its individual capacity, but
solely as depositary bank and securities intermediary under the Accounts Agreement, and includes
each other Person that may, from time to time, be appointed as successor Accounts Bank pursuant to
and in accordance with the Accounts Agreement.

     “Accounts Bank Fee Letter” has the meaning provided in Section 1.01 of the Accounts
Agreement.

     “Additional Project Document” means each contract, agreement, letter agreement or
other instrument to which the Borrower becomes a party after the date

Exhibit A - 2

 

 

hereof, other than any document under which the Borrower (a) could not reasonably be expected
to have obligations or liabilities in the aggregate in excess of two million Dollars ($2,000,000),
or be entitled to receive revenues in the aggregate in excess of two million Dollars ($2,000,000),
in either case in value in any twelve (12) month period and (b) a termination of which could not
reasonably be expected to result in a Material Adverse Effect; provided, that for the
purposes of this definition, any series of related transactions (other than transactions, including
hedging transactions, relating to the sale of Products or the purchase of corn and natural gas)
shall be considered as one transaction, and all contracts, agreements, letter agreements or other
instruments in respect of such transactions shall be considered as one contract, agreement, letter
agreement or other instrument, as applicable.

     “Administrative Agent” means WestLB, not in its individual capacity but solely as
administrative agent for the Lenders hereunder and under the other Financing Documents, and
includes each other Person that may, from time to time, be appointed as successor Administrative
Agent pursuant to Section 9.06 (Resignation or Removal of Agent).

     “Administrative Services Agreement” means that certain Amended and Restated
Administrative Services Agreement, dated on or about the date hereof, between the Sponsor and the
Borrower.

     “Affiliate” of any Person means any other Person that, directly or indirectly,
controls, is controlled by or is under common control with such Person. A Person shall be deemed
to be “controlled by” any other Person if such other Person (a) possesses, directly or indirectly,
power to direct or cause the direction of the management and policies of such Person whether by
contract or otherwise or (b) owns at least ten percent (10%) of the Equity Interests in such
Person.

     “Agency Authorization Letter Agreement” means that certain Agency Agreement, dated
February 12, 2007, among the Borrower, as “Party Y”, Energy Management & Consulting Services, LLC,
as “Party X” and BP Canada Energy Marketing Corp., pursuant to which Energy Management & Consulting
Services, LLC is authorized to make purchases of natural gas from BP Canada on behalf of the
Borrower pursuant to the Gas Purchase and Sale Agreement.

     “Agent Parties” has the meaning provided in Section 10.11(i) (Notices and Other
Communications).

     “Agents” means, collectively, the Administrative Agent, the Collateral Agent and the
Accounts Bank.

Exhibit A
- 3

 

 

     “Agreement” has the meaning set forth in the Preamble.

     “Ancillary Documents” means, with respect to each Additional Project Document, the
following, each of which shall be in form and substance reasonably satisfactory to the
Administrative Agent and, in the case of items (i), (ii) and (iv), the Collateral Agent:

	 	(i)	 	each security instrument and agreement necessary or desirable
to grant to the Collateral Agent a first priority perfected Lien (subject only
to Permitted Liens) in such Additional Project Document and all property
interests received by the Borrower in connection therewith;
	 
	 	(ii)	 	all recorded UCC financing statements and other filings
required to perfect such Lien;
	 
	 	(iii)	 	if reasonably requested by the Administrative Agent,
opinions of counsel for the Borrower addressing such matters relating to such
document, each applicable Security Document and Lien as the Administrative
Agent may reasonably request;
	 
	 	(iv)	 	if reasonably requested by the Administrative Agent, the
Borrower shall use its best efforts to obtain a Consent with respect to such
Additional Project Document from each Project Party thereto, and shall use its
best efforts to obtain an opinion of counsel to such Project Party addressing
matters relating to such Additional Project Document and such Consent as the
Administrative Agent may reasonably request; and
	 
	 	(v)	 	certified evidence of the authorization of such Additional
Project Document by the Borrower.

     “Applicable Margin” means:

	 	(a)	 	with respect to Eurodollar Loans, (i) for the period from the
Effective Date through the second anniversary of the Effective Date, one and
one-half percent (1.50%), (ii) for the period from the second anniversary of
the Effective Date through the third anniversary of the Effective Date, three
percent (3.00%) and (iii) after the third anniversary of the Effective Date,
four percent (4.00%).

Exhibit A - 4

 

 

	 	(b)	 	with respect to Base Rate Loans, (i) for the period from the
Effective Date through the second anniversary of the Effective Date, one-half
percent (0.50%), (ii) for the period from the second anniversary of the
Effective Date through the third anniversary of the Effective Date, two
percent (2.00%) and (iii) after the third anniversary of the Effective Date,
three percent (3.00%).

     “Approved Fund” means, with respect to any Lender that is a fund that invests in
commercial loans, any other fund that invests in commercial loans and is managed or advised by the
same investment advisor as such Lender or by an Affiliate of such investment advisor.

     “Auditors” means those nationally recognized independent auditors selected by the
Borrower and approved by the Administrative Agent.

     “Authorized Officer” means (i) with respect to any Person that is a corporation, the
chief executive officer, the chief operating officer, the president, any vice president, the
treasurer or the chief financial officer of such Person, (ii) with respect to any Person that is a
partnership, an Authorized Officer of a general partner of such Person, (iii) with respect to any
Person that is a limited liability company, any manager, the president, any vice president, the
treasurer or the chief financial officer of such Person, or an Authorized Officer of the managing
member of such Person, or (iv) with respect to any Person, such other representative of such Person
that is approved by the Administrative Agent in writing who, in each such case, has been named as
an Authorized Officer on a certificate of incumbency of such Person delivered to the Administrative
Agent and the Accounts Bank on or after the date hereof.

     “Base Rate” means, for any day, a fluctuating rate per annum equal to the higher of
(i) the Federal Funds Effective Rate plus one-half of one percent (0.50%) and (ii) the rate of
interest in effect for such day as publicly announced from time to time by the Administrative Agent
as its “prime rate.” The “prime rate” is a rate set by the Administrative Agent based upon various
factors including the Administrative Agent’s costs and desired return, general economic conditions
and other factors, and is used as a reference point for pricing some loans, which may be priced at,
above, or below such announced rate. Any change in such rate announced by the Administrative Agent
shall take effect at the opening of business on the day specified in the public announcement of
such change.

     “Base Rate Loan” means any Loan bearing interest at a rate determined by reference to
the Base Rate and the provisions of ARTICLE II (The Loans).

     “Borrower” has the meaning set forth in the Preamble.

Exhibit A
- 5

 

 

     “Borrower LLC Agreement” means that certain Limited Liability Company Agreement of ABE
South Dakota, LLC, dated on or about the date hereof.

     “Business Day” means:

	 	(i)	 	any day that is neither a Saturday or Sunday nor a day on
which commercial banks are authorized or required to be closed in either
Minneapolis, Minnesota or New York, New York; and
	 
	 	(ii)	 	relative to the making, continuing, prepaying or repaying of
any Eurodollar Loans, any day on which dealings in Dollars are carried on in
the London interbank market.

     “Business Interruption Insurance Proceeds” means all proceeds of any insurance
policies required pursuant to this Agreement or otherwise obtained with respect to the Borrower or
the Project relating to business interruption or contingent business interruption.

     “Capitalized Lease Liabilities” of any Person means all monetary obligations of such
Person under any leasing or similar arrangement that, in accordance with GAAP, would be classified
as capitalized leases on a balance sheet of such Person or otherwise disclosed as such in a note to
such balance sheet and, for purposes of the Financing Documents, the amount of such obligations
shall be the capitalized amount thereof, determined in accordance with GAAP.

     “Cash Equivalents” means:

	 	(a)	 	readily marketable direct obligations of the government of
the United States or any agency or instrumentality thereof, or obligations
unconditionally guaranteed by the full faith and credit of the government of
the United States, in each case maturing within one (1) year from the date of
acquisition thereof;
	 
	 	(b)	 	securities issued by any state of the United States of
America or any political subdivision of any such state or any public
instrumentality thereof having maturities of not more than one (1) year from
the date of acquisition thereof and, at the time of acquisition, having a
rating of AA- or higher from S&P or Aa3 or higher from Moody’s (or, if at any
time neither S&P nor Moody’s shall be rating such obligations, an equivalent
rating from another nationally recognized rating service);

Exhibit A
- 6

 

 

	 	(c)	 	investments in commercial paper maturing within one hundred
eighty (180) days from the date of acquisition thereof and having, at such
date of acquisition, a rating of at least A-1 or P-1 from either S&P or
Moody’s (or, if at any time neither S&P nor Moody’s shall be rating such
obligations, an equivalent rating from another nationally recognized rating
service);
	 
	 	(d)	 	investments in certificates of deposit, banker’s acceptances
and time deposits maturing within two hundred and seventy (270) days from the
date of acquisition thereof issued or guaranteed by or placed with, and money
market deposit accounts issued or offered by, the Administrative Agent or any
domestic office of any commercial bank organized under the laws of the United
States of America, any State thereof, any country that is a member of the
Organization for Economic Co-Operation and Development or any political
subdivision thereof, that has a combined capital and surplus and undivided
profits of not less than five hundred million Dollars ($500,000,000);
	 
	 	(e)	 	fully collateralized repurchase agreements with a term of not
more than 30 days for securities described in clause (a) above and entered
into with a financial institution satisfying the criteria of clause (d) of
this definition; and
	 
	 	(f)	 	investments in “money market funds” within the meaning of
Rule 2a-7 of the Investment Company Act of 1940, as amended, substantially all
of whose assets are invested in investments of the type described in clauses
(a) through (e) of this definition.

     “Cash Flow” means, for any period, the sum (without duplication) of the following:
(i) all cash paid to the Borrower during such period in connection with the Ethanol Marketing
Agreements, Co-Product Marketing Agreement and any other sales of Products, (ii) all interest and
investment earnings paid to the Borrower or the Project Accounts during such period on amounts on
deposit in the Project Accounts, (iii) all cash paid to the Borrower during such period as Business
Interruption Insurance Proceeds, and (iv) all other cash paid to the Borrower during such period;
provided, however, that Cash Flow shall not include any proceeds of the Loans or
any other Indebtedness incurred by the Borrower; Insurance Proceeds; Condemnation Proceeds; any
equity contributions; proceeds from any disposition of assets of the Project or the Borrower (other
than Products); tax refunds; amounts received, whether by way of a capital contribution or
otherwise, from any holders of Equity Interests of the Borrower; and any other extraordinary or
non-cash income or receipt of the Borrower under GAAP.

Exhibit A - 7

 

 

     “Cash Flow Available for Debt Service” means, for any period, an amount equal to the
amount of Cash Flow deposited in the Revenue Account during such period minus all amounts
paid during such period pursuant to priorities first and second of Section 4.01(c) of the Accounts
Agreement.

     “Cash Flow Forecast” has the meaning provided in Section 7.03(o) (Reporting
Requirements — Cash Flow Forecasts).

     “Casualty Event” means an event that causes the Project, or any material portion
thereof, to be damaged, destroyed or rendered unfit for normal use for any reason whatsoever.

     “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability
Act (42 U.S.C. § 9604, et seq.), as amended, and rules, regulations, standards guidelines and
publications issued thereunder.

     “Change of Control” means any transaction or series of related transactions (including
any merger or consolidation) the result of which is that (i) the Sponsor fails to maintain,
directly, legally or beneficially, one hundred percent (100%) of the Equity Interests of the
Pledgor, or (ii) the Pledgor fails to maintain, directly, legally or beneficially, one hundred
percent (100%) of the Equity Interests of the Borrower (other than any such Equity Interests of the
Borrower held by its Independent Member).

     “CoBank Mortgages” means (a) the Aberdeen CoBank Mortgage and (b) the Huron CoBank
Mortgages.

     “CoBank Mortgage Subordinations” means (a) that certain Subordination Agreement, dated
as of the date hereof, by and among CoBank, ACB, a/k/a CoBank, South Dakota Wheat Growers
Association and the Borrower, concerning the senior priority of the liens of the Aberdeen Mortgage
over the lien of the Aberdeen CoBank Mortgage and (b) that certain Subordination Agreement, dated
as of the date hereof, by and among CoBank, ACB, a/k/a CoBank, South Dakota Wheat Growers
Association and the Borrower, concerning the senior priority of the liens of the Huron Mortgage
over the liens of the Huron CoBank Mortgages.

     “Code” means the Internal Revenue Code of 1986, as amended, including the regulations,
technical advice, published rulings and private letter rulings adopted, proposed, published or
otherwise promulgated in connection therewith.

     “Collateral” means all assets of and Equity Interests in the Borrower, whether now
owned or hereafter acquired, upon which a Lien is purported to be created by any Security Document
then in effect or contemplated to be in effect.

Exhibit A - 8

 

 

     “Collateral Agent” means WestLB, not in its individual capacity but solely in its
capacity as collateral agent for the Senior Secured Parties under the Financing Documents, and
includes each other Person that may, from time to time, be appointed as successor Collateral Agent
pursuant to Section 9.06 (Resignation or Removal of Agent).

     “Commodity Hedging Arrangements” means any arrangement to hedge the price of corn
purchases, ethanol sales, Distillers Grains sales or natural gas purchases.

     “Commodity Risk Management Plan” means the risk management plan prepared by the
Borrower and approved by the Administrative Agent pursuant to the Original Credit Agreement or
Section 7.01(t) (Affirmative Covenants — Commodity Hedging Programs) setting forth terms
and conditions relating to any Commodity Hedging Arrangements from time to time proposed to be
entered into by the Borrower, including any updates made to such risk management plan with the
approval of the Administrative Agent.

     “Communications” has the meaning provided in Section 10.11(g) (Notices and Other
Communications).

     “Condemnation Proceeds” means any amounts and proceeds of any kind (including
instruments) payable in respect of any Event of Taking.

     “Consents” means each Consent and Agreement entered into among a Project Party, the
Borrower, and the Collateral Agent, each in form and substance reasonably satisfactory to the
Administrative Agent and the Collateral Agent.

     “Consultants” means the Independent Engineer, the Insurance Consultant, the Ethanol
Market Consultant, the Environmental Consultant, the Agricultural Market Consultant, the Financial
Advisor and any other consultants appointed by or on behalf of the Lenders pursuant to Section
10.05 (Consultants).

     “Contest” means, with respect to any matter or claim involving any Person, that such
Person is contesting such matter or claim in good faith and by appropriate proceedings timely
instituted; provided that the following conditions are satisfied: (a) such Person has
posted a bond or cash collateral (or other security acceptable to the Administrative Agent) for the
full amount of such claim (or such lower amount as is acceptable to the Administrative Agent); (b)
during the period of such contest, the enforcement of any contested item is effectively stayed; (c)
none of such Person or any of its officers, directors or employees, or any Senior Secured Party or
its respective officers, directors or employees, is or would reasonably be expected to become
subject to any criminal liability or sanction in connection with such contested items; and (d) such
contest and any resultant failure to pay or discharge the claimed or assessed

Exhibit A - 9

 

 

amount during the pendency of such contest does not, and could not reasonably be expected to
(i) result in a Material Adverse Effect or (ii) involve a material risk of the sale, forfeiture or
loss of, or the creation, existence or imposition of any Lien on, any of the Collateral.

     “Contingent Liabilities” means any agreement, undertaking or arrangement by which any
Person guarantees, endorses or otherwise becomes or is contingently liable upon (by direct or
indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to, or
otherwise to invest in, a debtor, or otherwise to assure a creditor against loss) the indebtedness,
obligation or any other liability of any other Person (other than by endorsements of instruments in
the course of collection), or guarantees the payment of dividends or other distributions upon the
shares of any other Person. The amount of any Person’s obligation under any contingent liabilities
shall (subject to any limitation set forth therein) be deemed for purposes of this Agreement to be
the outstanding principal amount of the debt, obligation or other liability guaranteed thereby;
provided, however, that if the maximum amount of the debt, obligation or other
liability guaranteed thereby has not been established, the amount of such contingent liability
shall be the maximum reasonably anticipated amount of the debt, obligation or other liability;
provided, further, that any agreement to limit the maximum amount of such Person’s
obligation under such contingent liability shall not, of and by itself, be deemed to establish the
maximum reasonably anticipated amount of such debt, obligation or other liability.

     “Contractual Obligation” means, as to any Person, any provision of any security issued
by such Person or of any agreement, instrument or other undertaking to which such Person is a party
or by which it or any of its property is bound.

     “Co-Product Marketing Agreement” means that certain Co-Product Marketing Agreement,
dated as of May 9, 2007, between the Borrower and Dakotaland Feeds, LLC.

     “Dakotaland Administrative Services Agreement” means that certain Administrative
Services Agreement, dated as of May 1, 2007, as amended on October 4, 2007, between the Borrower
and Dakotaland Feeds, LLC.

     “DDG” means dried distillers grains produced by the Borrower at the Project.

     “Debt Service” means, for any period, the sum of (i) all fees (including Fees)
scheduled to become due and payable during such period to the Senior Secured Parties, (ii) interest
on the Loans (taking into account any Interest Rate Cap Agreements) scheduled to become due and
payable during such period to the Senior Secured Parties,

Exhibit A - 10

 

 

(iii) principal payments of the Loans (excluding any mandatory prepayments) scheduled to
become due and payable during such period to the Senior Secured Parties and (iv) all payments due
by the Borrower pursuant to Section 4.03 (Increased Eurodollar Loan Costs) and Section
4.07(a) (Taxes) with respect to such scheduled principal, interest and fees.

     “Debt Service LC Waiver Letter” means, with respect to any Debt Service Reserve Letter
of Credit, a waiver letter from the issuer thereof in substantially the form of Exhibit G.

     “Debt Service Reserve Account” has the meaning set forth in Section 3.01(a)(v) of the
Accounts Agreement.

     “Debt Service Reserve Letter of Credit” means an irrevocable, standby letter of credit
issued by an Acceptable Bank in favor of, and in form and substance reasonably satisfactory to, the
Collateral Agent and the Administrative Agent, and in respect of which a Debt Service LC Waiver
Letter in favor of, and satisfactory to, the Collateral Agent has been delivered.

     “Debt Service Reserve Required Amount” means, as of any date, the greater of (a)
scheduled Debt Service payable in respect of the succeeding six (6) months (excluding payments of
principal and interest due on the Final Maturity Date) and (b) three million Dollars ($3,000,000).

     “Default” means any condition, occurrence or event that, after notice or passage of
time or both, would be an Event of Default.

     “Default Rate” has the meaning set forth in Section 3.06 (Default Interest
Rate).

     “Distillers Grains” means DDG, WDG, and any other form of distillers grain products
(including syrup) marketed by the Borrower from time to time.

     “Distiller’s Grains Marketing Agreement” means that certain Distiller’s Grains
Marketing Agreement, dated April 7, 2010, between the Borrower and Hawkeye Gold, LLC.

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

     “Domestic Office” means, relative to any Lender, the office of such Lender designated
on Schedule 2.01 or designated in the Lender Assignment Agreement pursuant to which such
Lender became a Lender hereunder or such other office of a Lender (or any successor or assign of
such Lender) within the United States as may be

Exhibit A - 11

 

 

designated from time to time by written notice from such Lender, as the case may be, to the
Borrower and the Administrative Agent.

     “Effective Date” means the date on which all of the conditions set forth in
Section 6.01 (Conditions to Effectiveness) have been satisfied or waived.

     “Eligible Assignee” means (a) any Lender, (b) an Affiliate of any Lender, (c) any
Person that a Lender merges into, consolidates with or is consolidated into, (d) any Person that
acquires substantially all of the assets of a Lender, (e) an Approved Fund, and (f) any other
Person (other than a natural person) approved by the Administrative Agent (such approval not to be
unreasonably withheld or delayed).

     “Energy Management Agreement” means that certain Energy Management Agreement, dated as
of February 27, 2009, between Energy Management & Consulting Services, LLC and the Borrower.

     “Environmental Affiliate” means any Person, only to the extent of, and only with
respect to matters or actions of such Person for which, the Borrower could reasonably be expected
to have liability as a result of the Borrower retaining, assuming, accepting or otherwise being
subject to liability for Environmental Claims relating to such Person, whether the source of the
Borrower’s obligation is by contract or operation of Law.

     “Environmental Approvals” means any Governmental Approvals required under applicable
Environmental Laws.

     “Environmental Claim” means any written notice, claim, demand or similar written
communication by any Person alleging potential liability or requiring or demanding regulatory
compliance or remedial or responsive measures (including potential liability for investigatory
costs, cleanup, remediation and mitigation costs, governmental response costs, natural resources
damages, property damages, personal injuries, fines or penalties) in each such case (x) either (i)
with respect to environmental contamination-related liabilities or obligations with respect to
which the Borrower could reasonably be expected to be responsible that are, or could reasonably be
expected to be, in excess of two hundred thousand Dollars ($200,000) in the aggregate, or (ii) that
has or could reasonably be expected to result in a Material Adverse Effect and (y) arising out of,
based on or resulting from (i) the presence, release or threatened release into the environment, of
any Materials of Environmental Concern at any location, whether or not owned by such Person; (ii)
circumstances forming the basis of any violation, or alleged violation, of any Environmental Laws
or Environmental Approvals; or (iii) personal injury or damage to property as a result of exposure
to Materials of Environmental Concern.

Exhibit A - 12

 

 

     “Environmental Consultant” means R.W. Beck, Inc., or any replacement
environmental consultant appointed by the Administrative Agent with the approval of the Required
Lenders.

     “Environmental Laws” means all Laws applicable to the Project relating to pollution or
protection of human health, safety or the environment (including ambient air, surface water, ground
water, land surface or subsurface strata), including Laws relating to emissions, discharges,
releases or threatened releases of Materials of Environmental Concern, or otherwise applicable to
the Project relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport, management, remediation or handling of Materials of Environmental Concern.

     “Environmental Site Assessment Report” means, a Phase I environmental site assessment
report prepared by an environmental consulting firm reasonably acceptable to the Administrative
Agent, which report shall comply with ASTM standard 1527-05 (with such modifications thereto as may
reasonably be requested by the Borrower and are reasonably acceptable to the Administrative Agent),
and a Phase II environmental site assessment reasonably acceptable to the Administrative Agent,
addressing any recognized environmental conditions or other areas of concern identified in the
relevant Phase I report if in the reasonable determination of the Administrative Agent, acting in
consultation with the Independent Engineer, a Phase II assessment is warranted.

     “Equity Interests” means, with respect to any Person, all of the shares of capital
stock of (or other ownership, voting or profit interests in) such Person, all of the warrants,
options or other rights for the purchase or acquisition from such Person of shares of capital stock
of (or other ownership, voting or profit interests in) such Person, all of the securities
convertible into or exchangeable for shares of capital stock of (or other ownership or profit
interests in) such Person or warrants, rights or options for the purchase or acquisition from such
Person of such shares (or such other interests), and all of the other ownership, voting or profit
interests in such Person (including partnership, member or trust interests therein), whether voting
or nonvoting, and whether or not such shares, warrants, options, rights or other interests are
outstanding on any date of determination, in each such case including all voting rights and
economic rights related thereto.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any
successor statute of similar import, together with the regulations thereunder, in each case as in
effect from time to time. References to sections of ERISA also refer to any successor sections.

Exhibit A - 13

 

 

     “ERISA Affiliate” means any Person, trade or business that, together with the
Borrower, is or was treated as a single employer under Section 414 of the Code or Section 4001 of
ERISA.

     “Ethanol Market Consultant” means Muse, Stancil & Co., or any replacement ethanol
market consultant appointed by the Administrative Agent.

     “Ethanol Marketing Agreements” means the Aberdeen Ethanol Marketing Agreement and the
Huron Ethanol Marketing Agreement.

     “Eurodollar Loan” means any Loan bearing interest at a rate determined by reference to
the Eurodollar Rate and the provisions of ARTICLE II (The Loans) and ARTICLE III
(Repayments, Prepayments, Interest and Fees).

     “Eurodollar Office” means, relative to any Lender, the office of such Lender
designated as such on Schedule 2.01 or designated in the Lender Assignment Agreement
pursuant to which such Lender became a Lender hereunder or such other office of a Lender as
designated from time to time by notice from such Lender to the Borrower and the Administrative
Agent pursuant to Section 4.04 (Obligation to Mitigate) that shall be making or maintaining
Eurodollar Loans of such Lender hereunder.

     “Eurodollar Rate” means, for any Interest Period with respect to any Eurodollar Loan,
an interest rate per annum equal to the rate per annum obtained by dividing (x) LIBOR for such
Interest Period and such Eurodollar Loan, by (y) a percentage equal to (i) 100% minus (ii) the
Eurodollar Reserve Percentage for such Interest Period.

     “Eurodollar Reserve Percentage” means, for any day during any Interest Period, the
reserve percentage (expressed as a decimal, carried out to five decimal places) in effect on such
day, whether or not applicable to any Lender, under regulations issued from time to time by the
F.R.S. Board for determining the maximum reserve requirement (including any emergency, supplemental
or other marginal reserve requirement) with respect to eurocurrency funding (currently referred to
as “Eurocurrency Liabilities”). The Eurodollar Rate for each outstanding Eurodollar Loan shall be
adjusted automatically as of the effective date of any change in the Eurodollar Reserve Percentage.

     “Event of Abandonment” means any of the following shall have occurred: (i) the
abandonment by the Borrower of the operation or maintenance of the Project for a period of more
than sixty (60) consecutive days (other than as a result of force majeure, an Event of Taking or a
Casualty Event), (ii) the suspension of all or substantially all of the Borrower’s activities with respect to the Project, other than as the result of a force
majeure, Event of Taking or Casualty Event, for a period of more than sixty

Exhibit A - 14

 

 

(60) consecutive days, or (iii) any written acknowledgement by the Borrower of a final
decision to take any of the foregoing actions.

     “Event of Default” means any one of the events specified in Section 8.01 (Events
of Default).

     “Event of Taking” means any taking, exercise of rights of eminent domain, public
improvement, inverse condemnation, condemnation or similar action of or proceeding by any
Governmental Authority relating to any material part of the Project with, any Equity Interests of
the Borrower, or any other assets thereof.

     “Event of Total Loss” means the occurrence of a Casualty Event affecting all or
substantially all of the Project or the assets of the Borrower.

     “Excluded Taxes” means, with respect to any Agent or any Lender or any other recipient
of any payment to be made by or on account of any Obligation of the Borrower hereunder, (a) income
or franchise Taxes imposed on (or measured by) such Agent’s, Lender’s or other recipient’s net
income by the United States, 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 office is located, or (b) any branch profits Tax imposed by the United States, or any
similar Tax imposed by any other jurisdiction described in clause (a) above or (c) any United
States withholding Tax to the extent that it is imposed on amounts payable to such Agent or such
Lender at the time such Agent or such Lender becomes a party to this Agreement.

     “Extraordinary Proceeds Account” has the meaning provided in Section 3.01(a)(viii) of
the Accounts Agreement.

     “Forbearance Agreement” has the meaning provided in the recitals.

     “F.R.S. Board” means the Board of Governors of the Federal Reserve System or any
successor thereto.

     “Federal Funds Effective Rate” means, for any day, the rate per annum (rounded
upwards, if necessary, to the nearest 1/100 of 1%) 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 on such day, as published on the next succeeding Business Day by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day that is a Business Day, the
average of the quotations for such day for such transactions received by the Administrative Agent from three federal funds
brokers of recognized standing selected by the Administrative Agent.

Exhibit A - 15

 

 

     “Fee Letters” means (i) that certain Administrative Agent and Collateral Agent Fee
Letter, dated as of October 1, 2007, among the Administrative Agent, the Collateral Agent and the
Borrower, as amended and restated by that certain Amended and Restated Administrative Agent and
Collateral Agent Fee Letter, dated on or about the date hereof and (ii) the Accounts Bank Fee
Letter, each setting forth certain fees that have, or will, from time to time, become due and
payable with respect to the Loans and to the Agents.

     “Fees” means, collectively, each of the fees payable by the Borrower for the account
of any Lender or Agent pursuant to Section 3.12 (Fees).

     “Final Maturity Date” means March 31, 2016.

     “Financial Advisor” means Capstone Advisory Group, LLC, or a replacement appointed by
the Required Lenders.

     “Financing Documents” means:

	 	(i)	 	this Agreement;
	 
	 	(ii)	 	the Accounts Agreement;
	 
	 	(iii)	 	the Notes;
	 
	 	(iv)	 	the Security Documents;
	 
	 	(v)	 	the Fee Letters;
	 
	 	(vi)	 	the Restructuring Agreement;
	 
	 	(vii)	 	the other financing and security agreements, documents and
instruments delivered in connection with this Agreement; and
	 
	 	(viii)	 	each other document designated as a Financing Document by the Borrower and
the Administrative Agent.

     “Financial Model” means the pro forma financial statements and projections of revenue
and expenses and cash flows with respect to the Borrower for the period from the Effective Date
through the Final Maturity Date, to be delivered pursuant to Section 7.01(s), as the same
may be updated by the Borrower with the prior written approval of the Administrative Agent.

Exhibit A - 16

 

 

     “Financial Officer” means, with respect to any Person, the controller, treasurer or
chief financial officer of such Person.

     “Fiscal Quarter” means any quarter of a Fiscal Year.

     “Fiscal Year” means any period of twelve (12) consecutive calendar months ending on
September 30.

     “GAAP” means generally accepted accounting principles in effect from time to time in
the United States, applied on a consistent basis.

     “Gas Purchase and Sale Agreement” means that certain Base Contract for Sale and
Purchase of Natural Gas, dated October 1, 2006, between BP Canada Energy Marketing Corp. and the
Borrower, together with any transaction confirmations related thereto.

     “Governmental Approval” means any authorization, consent, approval, license, lease,
ruling, permit, certification, exemption, filing for registration by or with any Governmental
Authority.

     “Governmental Authority” means any nation, state, sovereign, or government, any
federal, regional, state, local or political subdivision and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining to government.

     “Grain Origination Agreement” means that certain Grain Origination Agreement dated
November 8, 2006, between the Borrower and South Dakota Wheat Growers Association, as amended by
the Amendment to Grain Origination Agreement dated as of October 1, 2007.

     “Guarantee” means, as to any Person, (a) any obligation, contingent or otherwise, of
such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other
obligation payable or performable by another Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation, (ii) to purchase or lease property, securities or services for the purpose of
assuring the obligee in respect of such Indebtedness or other obligation of the payment or
performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity
capital or any other financial statement condition or liquidity or level of income or cash flow of
the primary obligor so as to enable the primary obligor to pay such Indebtedness or other
obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee

Exhibit A
- 17

 

 

in respect of such Indebtedness or other obligation of the payment or performance thereof or to
protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any
assets of such Person securing any Indebtedness or other obligation of any other Person, whether or
not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or
otherwise, of any holder of such Indebtedness to obtain any such Lien).

     “Historical Debt Service Coverage Ratio” or “HDSCR” means, as of any Quarterly
Payment Date, for the four (4) Fiscal Quarters immediately preceding (and not including the
then-current Fiscal Quarter) such Quarterly Payment Date the ratio of (i) Cash Flow Available for
Debt Service during such period to (ii) Debt Service during such period.

     “Huron Additional Parcel Quitclaim Deed” means that certain Quitclaim deed, dated as
of the date hereof, transferring to the Borrower certain additional land used in connection with
the operation of the Huron Plant.

     “Huron CoBank Mortgages” means (a) that certain Collateral Real Estate Mortgage, dated
October 4, 2007, filed for record on October 15, 2007 at 2:45 pm, Disk M1g #737d, in the Records of
Beadle County Register of Deeds Office, securing an indebtedness of $172,000,000, given by South
Dakota Wheat Growers Association to CoBank, ACB, a/k/a CoBank and (b) that certain Collateral Real
Estate Mortgage, dated November 6, 2008, filed for record on December 2, 2008 at 11:00 am, Disk M1g
#915E, in the Records of Beadle County Register of Deeds Office, securing an indebtedness of
$678,500,000, given by South Dakota Wheat Growers Association to CoBank, ACB, a/k/a CoBank, in each
case encumbering the fee estate of South Dakota Wheat Growers Association in that portion of the
Mortgaged Property in Beadle County in which the Borrower holds a leasehold interest pursuant to
the Huron Grain Elevator Lease;

     “Huron Ethanol Marketing Agreement” means that certain Exclusive Ethanol Marketing
Agreement, dated April 7, 2010, between the Borrower and Hawkeye Gold, LLC, as supplemented by the
letter agreement dated April 7, 2010 between the Borrower and Hawkeye Gold, LLC, relating to the
Huron Plant.

     “Huron Grain Elevator Lease” means that certain Lease Agreement, dated as of October
1, 2007, between the Borrower as lessee and South Dakota Wheat Growers Association as lessor,
relating to the grain elevator for the Huron Plant.

     “Huron Grain Receiving Area Lease” means that certain Lease Agreement, dated as of
August 1, 2003, as amended on November 6, 2006, between the Borrower as lessor and South Dakota
Wheat Growers Association as lessee, for the

Exhibit A
- 18

 

 

construction, installation and operation of the Corn System as defined therein, as amended by the
Addendum to Lease Agreement, dated November 6, 2006.

     “Huron Ground Lease” means that certain Ground Lease, effective May 1, 1998, between
the Borrower as Lessee and Farmland Industries, Inc. as Lessor, as assigned to Land O’Lakes
Farmland Feed LLC (n/k/a Land O’Lakes Purina Feed LLC) pursuant to an Assignment and Assumption of
Ground Lease dated July 16, 2004, and as amended by the First Amendment to Lease dated as of
February 10, 2006, between Land O’Lakes Purina Feed, LLC and the Borrower.

     “Huron License Agreement” means that certain Agreement for Engineering Services, dated
September 20, 2005, between the Borrower as owner and Design-Build Contractor as engineer
(including without limitation Exhibit F (License of Proprietary Property of Engineer) thereof), as
amended by the Consent and Agreement, dated as of October 1, 2007, between the Borrower, the
Technology License Provider and the Collateral Agent.

     “Huron Mortgage” means that certain Mortgage—One Hundred Eighty Day Redemption,
Collateral Real Estate Mortgage, Security Agreement, Financing Statement, Fixture Filing and
Assignment of Leases, Rents and Security Deposits, dated as of October 1, 2007 by the Borrower to
the Collateral Agent, as recorded on October 15, 2007 as instrument number 70824, in Disk M1g #
735d in the office of the Register of Deeds of Beadle County, South Dakota, as amended and restated
by the Amended and Restated Mortgage—One Hundred Eighty Day Redemption, Collateral Real Estate
Mortgage, Security Agreement, Financing Statement, Fixture Filing and Assignment of Leases, Rents
and Security Deposits, dated on or about the date hereof.

     “Huron Plant” means the ethanol production facility owned by the Borrower and located
in Huron, South Dakota, with a nameplate capacity of approximately 30 million gallons-per-year of
denatured ethanol, including the Site and all buildings, structures, improvements, easements and
other property related thereto.

     “Huron Subordination, Non-Disturbance and Attornment Agreement” means that certain
Subordination, Non-Disturbance and Attornment Agreement, dated as of October 1, 2007, among COBANK,
ACB, a/k/a CoBank, as mortgagee, the Borrower as lessee and South Dakota Wheat Growers Association
as mortgagor, in relation to the Huron Grain Elevator Lease, including all schedules, exhibits and
attachments thereto.

Exhibit A
- 19

 

 

     “Indebtedness” means, as to any Person at a particular time, without duplication, all
of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

	 	(a)	 	all obligations of such Person for or in respect of moneys
borrowed or raised, whether or not for cash by whatever means (including
acceptances, deposits, discounting, letters of credit, factoring, and any
other form of financing which is recognized in accordance with GAAP in such
Person’s financial statements as being in the nature of a borrowing or is
treated as “off-balance sheet” financing);
	 
	 	(b)	 	all obligations of such Person evidenced by bonds,
debentures, notes, loan agreements or other similar instruments;
	 
	 	(c)	 	all obligations of such Person for the deferred purchase
price of property or services;
	 
	 	(d)	 	all obligations of such Person under conditional sale or
other title retention agreements relating to property or assets acquired by
such Person (even though the rights and remedies of the seller or lender under
such agreement in the event of default are limited to repossession or sale of
such property or are otherwise limited in recourse);
	 
	 	(e)	 	the maximum amount of all direct or contingent obligations of
such Person arising under letters of credit (including standby and
commercial), bankers’ acceptances, bank guaranties, surety bonds and similar
instruments;
	 
	 	(f)	 	all Capitalized Lease Liabilities;
	 
	 	(g)	 	net obligations of such Person under any Swap Contract;
	 
	 	(h)	 	all obligations of such Person to purchase, redeem, retire,
defease or otherwise make any payment in respect of any Equity Interests in
such Person or any other Person or any warrants, rights or options to acquire
such Equity Interests, valued, in the case of redeemable preferred interests,
at the greater of its voluntary or
involuntary liquidation preference plus accrued and unpaid dividends; and

Exhibit A
- 20

 

 

	 	(i)	 	all Guarantees of such Person in respect of any of the
foregoing.

For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any
partnership or joint venture (other than a joint venture that is itself a corporation or limited
liability company) in which such Person is a general partner or a joint venturer, unless such
Indebtedness is expressly made non-recourse to such Person. The amount of any net obligation under
any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such
date.

     “Indemnified Party” has the meaning provided in Section 9.15
(Indemnification).

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Indemnitee” has the meaning provided in Section 10.08 (Indemnification by the
Borrower).

     “Independent Member” means a Person, who is not at the time of initial appointment as
the Independent Member or at any time while serving as the Independent Member and has not been at
any time during the five (5) years preceding such initial appointment:

	 	(i)	 	a direct or indirect owner of any Equity Interest in,
director (with the exception of serving as the Independent Member), officer,
employee, member, partner, shareholder, manager or contractor, bankruptcy
trustee, attorney or counsel of the Borrower, any partner of the Borrower or
any Affiliate of any of them;
	 
	 	(ii)	 	a creditor, customer, supplier, or other person who derives
any of its purchases or revenues from its activities with the Borrower, any
partner of the Borrower, or any Affiliate of any of them (with the exception
of its activity of serving as the Independent Member);
	 
	 	(iii)	 	a Person controlling or under common control with the
Borrower, any partner of the Borrower or any Affiliate of any of them or any
Person excluded from serving as Independent Member under clause (i) or (ii) of
this definition;
	 
	 	(iv)	 	a member of the immediate family by blood or marriage of any
Person excluded from being an Independent Member under clause (i) or (ii) of
this definition; or

Exhibit A - 21

 

 

	 	(v)	 	a Person who received, or a member or employee of a firm or
business that received, fees or other income from the Borrower or any
Affiliate thereof in the aggregate in excess of five percent (5%) of the gross
income, for any applicable year, of such Person (with the exception of fees
received for its activity of serving as the Independent Member).

     “Independent Engineer” means R.W. Beck, Inc., or any replacement independent engineer
appointed by the Administrative Agent and, so long as no Default or Event of Default has occurred
and is continuing, reasonably acceptable to Borrower (which acceptance shall not be unreasonably
withheld or delayed).

     “Industry Track Agreement” means the Industry Track Agreement, dated as of November 1,
2007, between BNSF Railway Company and the Borrower.

     “Information” has the meaning provided in Section 10.17 (Treatment of Certain
Information; Confidentiality).

     “Insolvency or Liquidation Proceeding” means:

	 	(a)	 	any case commenced by or against the Borrower under the
Bankruptcy Code or any similar federal or state law for the relief of debtors,
any other proceeding for the reorganization, recapitalization or adjustment or
marshalling of the assets or liabilities of the Borrower, any receivership or
assignment for the benefit of creditors relating to the Borrower or any
similar case or proceeding relative to the Borrower or its creditors, as such,
in each case whether or not voluntary;
	 
	 	(b)	 	any liquidation, dissolution, marshalling of assets or
liabilities or other winding up of or relating to the Borrower, in each case
whether or not voluntary and whether or not involving bankruptcy or
insolvency; or
	 
	 	(c)	 	any other proceeding of any type or nature in which
substantially all claims of creditors of the Borrower are determined and any
payment or distribution is or may be made on account of such claims.

     “Insurance Consultant” means Moore-McNeil, LLC, or any replacement insurance
consultant appointed by the Administrative Agent.

Exhibit A - 22

 

 

     “Insurance Proceeds” means all proceeds of any insurance policies required
pursuant to this Agreement or otherwise obtained with respect to the Borrower or the Project that
are paid or payable to or for the account of the Borrower, or the Collateral Agent as loss payee,
or additional insured (other than Business Interruption Insurance Proceeds and proceeds of
insurance policies relating to third party liability).

     “Interconnect Agreement” means that certain Interconnect Agreement, dated March 7,
2007, between the Borrower and Northern Border Pipeline Company, as amended by that certain
Amendment to Interconnect Agreement dated August 16, 2007.

     “Interest Payment Date” means (i) with respect to Eurodollar Loans, the last day of
each applicable Interest Period (and, if such Interest Period exceeds three months, on the day
three months after such Eurodollar Loan is made or continued) or, if applicable, any date on which
such Eurodollar Loan is converted to a Base Rate Loan and (ii) with respect to Base Rate Loans, on
each Quarterly Payment Date or, if applicable, any date on which such Base Rate Loan is converted
to a Eurodollar Loan.

     “Interest Period” means, with respect to any Eurodollar Loan, the period beginning on
(and including) the Effective Date or the date on which such Eurodollar Loan is converted to a
Eurodollar Loan from a Base Rate Loan pursuant to Section 3.03 (Interest Rates) or the date
on which each successive interest period for each such Eurodollar Loan is determined pursuant to
Section 3.03 (Interest Rates) and ending on (and including) the day that numerically
corresponds to such date one (1), two (2), three (3) or six (6) months thereafter, in either case
as the Borrower may select in the relevant Interest Period Notice in accordance with
Section 3.04(b) (Interest Rates); provided, however, that (i) if such Interest
Period would otherwise end on a day that is not a Business Day, such Interest Period shall end on
the next following Business Day (unless such next following Business Day is in a different calendar
month, in which case such Interest Period shall end on the next preceding Business Day), (ii) any
Interest Period that begins on the last Business Day of a month (or on a day for which there is no
numerically corresponding day in the month at the end of such Interest Period) shall end on the
last Business Day of the month at the end of such Interest Period, (iii) the Borrower may not
select any Interest Period that ends after any Quarterly Payment Date unless, after giving effect
to such selection, the aggregate outstanding principal amount of Eurodollar Loans having Interest
Periods which end on or prior to such Quarterly Payment Date shall be at least equal to the
aggregate principal amount of Eurodollar Loans due and payable on or prior to such Quarterly
Payment Date, and (iv) no Interest Period may end later than the Final Maturity Date for the
relevant type of Loan.

     “Interest Period Notice” means a notice in substantially the form attached hereto as
Exhibit F, executed by an Authorized Officer of the Borrower.

Exhibit A - 23

 

     “Interest Rate Cap Agreement” means each prepaid interest rate cap agreement, with a
counterparty acceptable to the Required Lenders and in form and substance satisfactory to the
Required Lenders, entered into in accordance with Section 7.01(t) (Affirmative Covenants -
Interest Rate Cap Agreements); provided that the Borrower shall not be obligated to
make any payment under such agreement after the Effective Date and the counterparty under such
agreement shall not have any Lien on any part of the Collateral.

     “Law” means, with respect to any Governmental Authority, any constitutional provision,
law, statute, rule, regulation, ordinance, treaty, order, decree, judgment, decision, common law,
holding, injunction, Governmental Approval or requirement of such Governmental Authority. Unless
the context clearly requires otherwise, the term “Law” shall include each of the foregoing
(and each provision thereof) as in effect at the time in question, including any amendments,
supplements, replacements, or other modifications thereto or thereof, and whether or not in effect
as of the date of this Agreement.

     “Leased Premises” means those certain leased premises described in the Huron Ground
Lease, the Huron Grain Elevator Lease and the Aberdeen Grain Elevator Lease.

     “Lender Assignment Agreement” means a Lender Assignment Agreement, substantially in
the form of Exhibit H.

     “Lenders” means the persons identified as “Lenders” and listed on the signature pages
of this Agreement and each other Person that acquires the rights and obligations of a Lender
hereunder pursuant to Section 10.03 (Assignments).

     “LIBOR” means, for any Interest Period for any Eurodollar Loan:

	 	(a)	 	the rate per annum equal to the rate determined by the
Administrative Agent to be the offered rate that appears on the page of the
Telerate screen (or any successor thereto) that displays an average British
Bankers Association Interest Settlement Rate for deposits in Dollars (for
delivery on the first day of such Interest Period) with a term equivalent to
such Interest Period, determined as of approximately 11:00 a.m. (London time)
two (2) Business Days prior to the first day of such Interest Period; or
	 
	 	(b)	 	if the rate referenced in the preceding clause (a) does not
appear on such page or service or such page or service is not available, the
rate per annum equal to the rate determined by the Administrative

Exhibit A - 24

 

	 	 	 	Agent to be the offered rate on such other page or other service that
displays an average British Bankers Association Interest Settlement Rate
for deposits in Dollars (for delivery on the first day of such Interest
Period) with a term equivalent to such Interest Period, determined as of
approximately 11:00 a.m. (London time) two (2) Business Days prior to the
first day of such Interest Period; or

	 	(c)	 	if the rates referenced in the preceding clauses (a) and
(b) are not available, the rate per annum determined by the Administrative
Agent as the rate of interest at which deposits in Dollars for delivery on the
first day of such Interest Period in same day funds in the approximate amount
of the Eurodollar Loan being made, continued or converted and with a term
equivalent to such Interest Period would be offered by WestLB to major banks
in the London interbank eurodollar market at their request at
approximately 4:00 p.m. (London time) two (2) Business Days prior to the first
day of such Interest Period.

     “License Agreements” means, collectively, the Aberdeen II License Agreement and the
Huron License Agreement.

     “Lien” means any security interest, mortgage, pledge, hypothecation, assignment,
deposit arrangement, encumbrance, bailment, conditional sales or title retention agreement, lien
(statutory or otherwise), charge against or interest in property, in each case of any kind, to
secure payment of a debt or performance of an obligation.

     “Loan Parties” means, collectively, the Borrower and the Pledgor.

     “Loan Percentage” means, with respect to any Lender at any time, the percentage such
Lender’s outstanding Loan at such time then constitutes of the aggregate outstanding Loans of all
Lenders at such time.

     “Loans” has the meaning provided in Section 2.01(a) (Loans).

     “Maintenance Capital Expense Account” has the meaning set forth in
Section 3.01(a)(iii) of the Accounts Agreement.

     “Maintenance Capital Expenses” means all expenditures by the Borrower for regularly
scheduled (or reasonably anticipated) major maintenance of the Project, Prudent Ethanol Operating
Practice and vendor and supplier requirements constituting

Exhibit A - 25

 

major maintenance (including teardowns, overhauls, capital improvements, replacements and/or
refurbishments of major components of the Project).

     “Material Adverse Effect” means any event, development or circumstance that has had or
could reasonably be expected to have a material adverse effect on (i) the business, assets,
property, condition (financial or otherwise), prospects, or operations of the Borrower or the
Project, taken as a whole, (ii) the ability of the Borrower, any Pledgor, any Project Party or any
party (other than a Senior Secured Party) to the Accounts Agreement to perform its material
obligations under any Transaction Document to which it is a party, (iii) the creation, perfection
or priority of the Liens granted, or purported to be granted, in favor, or for the benefit, of the
Collateral Agent pursuant to the Security Documents or (iv) the rights or remedies of any Senior
Secured Party under any Financing Document.

     “Materials of Environmental Concern” means chemicals, pollutants, contaminants,
wastes, toxic substances and hazardous substances, any toxic mold, radon gas or other naturally
occurring toxic or hazardous substance or organism and any material that is regulated in any way,
or for which liability is imposed, pursuant to an Environmental Law.

     “Maximum Rate” has the meaning provided in Section 10.09 (Interest Rate
Limitation).

     “Moody’s” means Moody’s Investors Service Inc., and any successor thereto that is a
nationally recognized rating agency.

     “Mortgaged Property” means all real property right, title and interest of the Borrower
that is subject to the Mortgages in favor of the Collateral Agent.

     “Mortgages” means the Aberdeen Mortgage and the Huron Mortgage.

     “Multiemployer Plan” means a Plan that is a “multiemployer plan” as defined in
Section 4001(a)(3) of ERISA.

     “Necessary Project Approvals” has the meaning set forth in Section 5.03(a)(i)
(Representations and Warranties — Governmental Approvals).

     “Non-Appealable” means, with respect to any specified time period allowing an appeal
of any ruling under any constitutional provision, Law, statute, rule, regulation, ordinance,
treaty, order, decree, judgment, decision, certificate, holding or injunction that such specified
time period has elapsed without an appeal having been brought.

Exhibit A - 26

 

     “Non-U.S. Lender” has the meaning set forth in Section 4.07(e) (Taxes — Foreign
Lenders).

     “Non-Voting Lender” means any Lender who (a) is also a Loan Party, a Project Party, a
party (other than a Senior Secured Party) to the Accounts Agreement, or any Affiliate or Subsidiary
thereof, or (b) has sold a participation in the Loan held by it to any such Person.

     “Notes” means the promissory notes of the Borrower, substantially in the form of
Exhibit B, evidencing the Loans, including any promissory notes issued by the Borrower in
connection with assignments of any Loan of a Lender, in each case substantially in the form of
Exhibit B as may be amended, restated, supplemented or otherwise modified from time to
time.

     “Obligations” means and includes all loans, advances, debts, liabilities, Indebtedness
and obligations, howsoever arising, owed to the Agents, the Lenders or any other Senior Secured
Party of every kind and description (whether or not evidenced by any note or instrument and whether
or not for the payment of money), direct or indirect (including those acquired by assumption),
absolute or contingent, due or to become due, now existing or hereafter arising and including
interest and fees that accrue after the commencement by or against the Borrower of any Insolvency
or Liquidation Proceeding naming the Borrower as the debtor in such proceeding, regardless of
whether such interest and fees are allowed claims in such proceeding, pursuant to the terms of this
Agreement or any of the other Financing Documents, including all principal, interest, fees,
charges, expenses, attorneys’ fees, costs and expenses, accountants’ fees and Consultants’ fees
payable by the Borrower hereunder or thereunder.

     “Operating Budget” has the meaning set forth in Section 7.01(j) (Affirmative
Covenants — Operating Budget).

     “Operating Budget Category” means, at any time with respect to each Operating Budget,
each line item set forth in such Operating Budget in effect at such time.

     “Operating Statement” means an operating statement with respect to the Project, in
substantially the form of Exhibit E.

     “Operation and Maintenance Expenses” means, for any period, the sum without
duplication of all (i) reasonable and necessary expenses of administering, managing and operating,
and generating Products for sale from, the Project and maintaining it in good repair and operating
condition, (ii) costs associated with the supply and transportation of all corn, natural gas,
electricity and other supplies and raw

Exhibit A - 27

 

materials to the Project and distribution and sale of Products from the Project that the
Borrower is obligated to pay, (iii) all reasonable and necessary insurance costs, (iv) property,
sales and franchise taxes to the extent that the Borrower is liable to pay such taxes to the taxing
authority (other than taxes imposed on or measured by income or receipts) to which the Project, may
be subject (or payment in lieu of such taxes to which the Project may be subject), (v) reasonable
and necessary costs and fees incurred in connection with obtaining and maintaining in effect the
Necessary Project Approvals, (vi) reasonable and arm’s-length legal, accounting and other
professional fees attendant to any of the foregoing items during such period, (vii) the reasonable
costs of administration and enforcement of the Transaction Documents, (viii) costs incurred
pursuant to the Permitted Commodity Hedging Arrangements, and (ix) all other costs and expenses
included in the then-current Operating Budget. In no event shall Maintenance Capital Expenses be
considered Operation and Maintenance Expenses.

     “Organic Documents” means, with respect to any Person that is a corporation, its
certificate of incorporation, its by-laws and all shareholder agreements, voting trusts and similar
arrangements applicable to any of its authorized shares of capital stock; with respect to any
Person that is a limited liability company, its certificate of formation or articles of
organization and its limited liability agreement and, with respect to a limited partnership, its
certificate of limited partnership and its agreement of limited partnership.

     “Original Credit Agreement” has the meaning provided in the recitals.

     “Original Lenders” has the meaning provided in the recitals.

     “Original Loans” has the meaning provided in the recitals.

     “Participant” has the meaning provided in Section 10.03(d) (Assignments).

     “Patriot Act” means United States Public Law 107-56, Uniting and Strengthening America
by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT)
of 2001, and the rules and regulations promulgated thereunder from time to time in effect.

     “PBGC” means the Pension Benefit Guaranty Corporation and any entity succeeding to any
or all of its functions under ERISA.

     “Permitted Commodity Hedging Arrangements” means those Commodity Hedging Arrangements
entered into by the Borrower in accordance with Section 7.02(s) (Negative Covenants — Commodity
Hedging Arrangements; Interest Rate Protection Agreements).

Exhibit A - 28

 

     “Permitted Indebtedness” means Indebtedness identified in Section 7.02(a)
(Negative Covenants — Restrictions on Indebtedness of the Borrower).

     “Permitted Liens” means Liens identified in Section 7.02(b) (Negative Covenants —
Liens).

     “Permitted Tax Distribution” means, with respect to any distributee that is required
to pay tax as a result of its direct or indirect ownership of the Borrower, an amount equal to
(a) forty percent (40%) of such distributee’s estimated share of the taxable income of the Borrower
(after netting or otherwise taking account of a distributee’s shares of the income, loss and
deduction of the Borrower, but without taking into account any cancellation of indebtedness income
attributable to the distributee’s interest in the Borrower) that the distributee is reasonably
expected to have to report for income tax purposes for the Fiscal Quarter distributed, less
(b) such distributee’s share of credits attributable to the distributee’s interest in the Borrower,
but only to the extent necessary to fund a distributee’s timely payment to a Governmental Authority
of tax liability (including estimated payments thereof).

     “Person” means any natural person, corporation, partnership, limited liability
company, firm, association, trust, government, governmental agency or any other entity, whether
acting in an individual, fiduciary or other capacity.

     “Pipeline Construction Agreement” means that certain Agreement for Engineering and
Pipeline Construction Services, dated January 11, 2007, between the Borrower and Montana Dakota
Utilities Co., a division of MDU Resources Group, Inc.

     “Plan” means an employee pension benefit plan (as defined in Section 3(3) of ERISA)
subject to Title IV of ERISA or Section 412 of the Code that is sponsored or maintained by the
Borrower or any ERISA Affiliate, or in respect of which the Borrower or any ERISA Affiliate has any
obligation to contribution or Liability.

     “Plants” means, collectively, the Aberdeen Plants and the Huron Plant.

     “Platform” has the meaning provided in Section 10.11(h) (Notices and Other
Communications).

     “Pledge Agreement” the Pledge and Security Agreement, dated as of October 1, 2007,
among the Borrower, the Pledgor and the Collateral Agent, as amended and restated by the Amended
and Restated Pledge and Security Agreement, as of the date hereof.

Exhibit A - 29

 

     “Pledgor” means ABE Heartland, LLC, a Delaware limited liability company.

     “Pledgor LLC Agreement” means that certain Amended and Restated Limited Liability
Company Agreement of ABE Heartland LLC, dated as of October 1, 2007, entered into by Advanced
BioEnergy, LLC as founding member, and C T Corporation Staffing, Inc., a Delaware corporation, as
independent member.

     “Process Agent” means any Person appointed as agent by the Borrower or the Pledgor, to
the extent required under the Financing Documents, to receive on behalf of itself and its property
services of copies of summons and complaint or any other process which may be served in connection
with any action or proceeding before any court arising out of or relating to this Agreement or any
other Financing Document to which it is a party, including CT Corporation System.

     “Products” means ethanol, Distillers Grains, and any other co-product or by-product
produced in connection with the production of ethanol at the Project.

     “Project” means, at all times, the Plants and all auxiliary and other facilities
constructed or to be constructed by or on behalf of the Borrower pursuant to the Project Documents
relating to each such Plant or otherwise, together with all fixtures and improvements thereto and
each Site and all other real property, easements and rights-of-way held by or on behalf of the
Borrower and all rights to use easements and rights-of-way of others.

     “Project Accounts” has the meaning provided in Section 1.01 of the Accounts Agreement.

     “Project Documents” means:

	 	(i)	 	the Design-Build Agreement;
	 
	 	(ii)	 	the Aberdeen II License Agreement;
	 
	 	(iii)	 	the Huron License Agreement;
	 
	 	(iv)	 	the Grain Origination Agreement;
	 
	 	(v)	 	the Interconnect Agreement;
	 
	 	(vi)	 	the Energy Management Agreement;
	 
	 	(vii)	 	the Gas Purchase and Sale Agreement;

Exhibit A - 30

 

	 	(viii)	 	the Agency Authorization Letter Agreement;
	 
	 	(ix)	 	the Ethanol Marketing Agreements;
	 
	 	(x)	 	the Co-Product Marketing Agreement;
	 
	 	(xi)	 	the Distiller’s Grains Marketing Agreement;
	 
	 	(xii)	 	the Dakotaland Administrative Services Agreement;
	 
	 	(xiii)	 	the Water Supply Contract;
	 
	 	(xiv)	 	the Huron Ground Lease;
	 
	 	(xv)	 	the Huron Grain Receiving Area Lease;
	 
	 	(xvi)	 	the Huron Grain Elevator Lease;
	 
	 	(xvii)	 	the Aberdeen Grain Elevator Lease;
	 
	 	(xviii)	 	the Administrative Services Agreement;
	 
	 	(xix)	 	the Industry Track Agreement;
	 
	 	(xx)	 	the Track Area Lease Agreement;
	 
	 	(xxi)	 	the Trinity Railcar Lease;
	 
	 	(xxii)	 	each Additional Project Document; and
	 
	 	(xiii)	 	any replacement agreement for any such agreement.

     “Project Document Termination Payments” means all payments that are required to be
paid to or for the account of the Borrower as a result of the termination of any Project Document.

     “Project Party” means each Person (other than the Borrower or the Pledgor) who is a
party to a Project Document.

     “Prospective Debt Service Coverage Ratio” means, for any Quarterly Payment Date, for
the Fiscal Quarter including such Quarterly Payment Date and the three (3) Fiscal Quarters
immediately following such Quarterly Payment Date, the ratio of (i) Cash Flow Available for Debt
Service projected for such period to (ii) Debt Service projected for such period, in each case
based on the then-current Operating Budget

Exhibit A - 31

 

approved in accordance with Section 7.01(j) (Affirmative Covenants — Operating
Budget), as the same has been updated (if necessary) to reflect the then-current projections
for commodity prices, and approved by the Administrative Agent, acting reasonably. For the purpose
of this definition, the amount of principal and interest to be included in the amount of Debt
Service that is projected to be due and payable on the Final Maturity Date shall be deemed to be
the amount of principal and interest that is projected to become due and payable on December 31,
2015.

     “Prudent Ethanol Operating Practice” means those reasonable practices, methods and
acts that (i) are commonly used in the region where the Project is located to manage, operate and
maintain ethanol production, distribution, equipment and associated facilities of the size and type
that comprise the Project safely, reliably, and efficiently and in compliance with applicable Laws,
manufacturers’ warranties and manufacturers’ and licensor’s recommendations and guidelines, and
(ii) in the exercise of reasonable judgment, skill, diligence, foresight and care are expected of
an ethanol plant operator, in order to efficiently accomplish the desired result consistent with
safety standards, applicable Laws, manufacturers’ warranties, manufacturers’ recommendations and,
in the case of the Project, the Project Documents. Prudent Ethanol Operating Practice does not
necessarily mean one particular practice, method, equipment specifications or standard in all
cases, but is instead intended to encompass a broad range of acceptable practices, methods,
equipment specifications and standards.

     “Quarterly Payment Date” means each of March 31, June 30, September 30 and
December 31.

     “RCRA” means the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), as
amended, and all rules, regulations, standards, guidelines, and publications issued thereunder.

     “Register” has the meaning set forth in Section 10.03(c) (Assignments).

     “Related Parties” means, with respect to any Person, such Person’s Affiliates and the
partners, directors, officers, employees, agents and advisors of such Person and of such Person’s
Affiliates.

     “Removal,” “Remedial” and “Response” actions shall include the types
of activities covered by CERCLA, RCRA, and other comparable Environmental Laws, and whether the
activities are those which might be taken by a Governmental Authority or those which a Governmental
Authority or any other Person might seek to require of potentially responsible parties, liable
parties, waste generators, handlers, distributors, processors, users, disposers, storers, treaters,
owners, operators, transporters, recyclers,

Exhibit A - 32

 

reusers, disposers, or other Persons under “removal,” “remedial,” or other “response” actions.

     “Reportable Event” means a “reportable event” within the meaning of Section 4043(c) of
ERISA.

     “Required Lenders” means, at any time, Lenders (excluding all Non-Voting Lenders)
holding more than fifty percent (50.00%) of the aggregate outstanding principal amount of the Loans
at such time (excluding Loans held by Non-Voting Lenders).

     “Required Borrower LLC Provisions” has the meaning provided in Section 5.24(a)
(Representations and Warranties — Required LLC Provisions).

     “Required Pledgor LLC Provisions” has the meaning provided in Section 5.24(b)
(Representations and Warranties — Required LLC Provisions).

     “Restricted Payment Certificate” has the meaning provided in the Accounts Agreement.

     “Restricted Payments” means (a) any dividend or other distribution (whether in cash,
securities or other property), or any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase, redemption, retirement,
defeasance, acquisition, cancellation or termination of any Equity Interests of the Borrower, or on
account of any return of capital to any holder of any such Equity Interest in, or any other
Affiliate of, the Borrower, or any option, warrant or other right to acquire any such dividend or
other distribution or payment, (b) any payment of fees (other than corporate overhead, costs,
expenses or any other payments pursuant to the Administrative Services Agreement) for any
management, consultancy, administrative, services, or other fee to any Person who owns, directly or
indirectly, any Equity Interest in the Borrower, or any Affiliate of any such Person, or (c) any
payment of indemnification obligations pursuant to the Borrower LLC Agreement; provided
that any Permitted Tax Distributions shall not constitute Restricted Payments.

     “Restructuring Agreement” has the meaning set forth in the recitals.

     “Restructuring Indemnitee” has the meaning set forth in Section 10.08(b)
(Indemnification by the Borrower).

     “Revenue Account” has the meaning set forth in Section 3.01(a)(iii) of the Accounts
Agreement.

Exhibit A - 33

 

     “S&P” means Standard & Poor’s Rating Services, a Division of the McGraw-Hill Companies
Inc.

     “Securities Intermediary” means Amarillo National Bank, not in its individual
capacity, but solely as securities intermediary under the Accounts Agreement, and includes each
other Person that may, from time to time, be appointed as successor Securities Intermediary
pursuant to and in accordance with the Accounts Agreement.

     “Security” means the security created in favor of the Collateral Agent pursuant to the
Security Documents.

     “Security Agreement” means the Assignment and Security Agreement, dated as of
October 1, 2007, by the Borrower in favor of the Collateral Agent, as amended and restated by the
Amended and Restated Assignment and Security Agreement, dated as of the date hereof.

     “Security Discharge Date” means the date on which all amounts payable in respect of
the Obligations have been irrevocably and indefeasibly paid in full in cash (other than obligations
under the Financing Documents that by their terms survive and with respect to which no claim has
been made by the Senior Secured Parties).

     “Security Documents” means:

	 	(i)	 	the Mortgages;
	 
	 	(ii)	 	the Accounts Agreement;
	 
	 	(iii)	 	the Consents;
	 
	 	(iv)	 	the Pledge Agreement;
	 
	 	(v)	 	the Security Agreement;
	 
	 	(vi)	 	any other document designated as a Security Document by the
Borrower and the Administrative Agent; and
	 
	 	(vii)	 	any fixture filings, financing statements, notices,
authorization letters, or other certificates filed, recorded or delivered in
connection with the foregoing.

     “Senior Secured Parties” means the Lenders and the Agents.

Exhibit A - 34

 

     “Site” means, (a) with respect to the Aberdeen Plants, the “Land” and “Leased
Premises” (each as defined in the Aberdeen Mortgage) and (b) with respect to the Huron Plant, the
“Land” and “Leased Premises” (each as defined in the Huron Mortgage).

     “SNDAs” means each of the Aberdeen Subordination, Non-Disturbance and Attornment
Agreement and the Huron Subordination, Non-Disturbance and Attornment Agreement.

     “Solvent” means, with respect to any Person, that as of the date of determination both
(i) (A) the then fair saleable value of the property of such Person is (y) greater than the total
amount of liabilities (including Contingent Liabilities but excluding amounts payable under
intercompany loans or promissory notes) of such Person and (z) not less than the amount that will
be required to pay the probable liabilities on such Person’s then existing debts as they become
absolute and matured considering all financing alternatives and potential asset sales reasonably
available to such Person; (B) such Person’s capital is not unreasonably small in relation to its
business or any contemplated or undertaken transaction; and (C) such Person does not intend to
incur, or reasonably believe that it will incur, debts beyond its ability to pay such debts as they
become due; and (ii) such Person is “solvent” within the meaning given that term and similar terms
under applicable Laws relating to fraudulent transfers and conveyances. For purposes of this
definition, the amount of any Contingent Liability at any time shall be computed as the amount
that, in light of all of the facts and circumstances existing at such time, represents the amount
that can reasonably be expected to become an actual or matured liability.

     “Sponsor” means Advanced BioEnergy, LLC, a Delaware limited liability company.

     “SPV” has the meaning provided in Section 10.03(h) (Assignments).

     “Stated Amount” has the meaning specified for such term in any Debt Service Reserve
Letter of Credit.

     “Subsidiary” of any Person means a corporation, partnership, joint venture, limited
liability company or other business entity of which a majority of the shares of securities or other
Equity Interests having ordinary voting power for the election of directors or other governing body
(other than securities or interests having such power only by reason of the happening of a
contingency) are at the time beneficially owned, or the management of which is otherwise
controlled, directly, or indirectly through one or more intermediaries, or both, by such Person.

Exhibit A - 35

 

     “Survey” means a current survey conforming with ALTA/ACSM 2005 survey standards,
including Table A, items 6, 8, 10 and 11(a), and otherwise acceptable to the Lenders, of the Sites
for the Plants and for the Leased Premises, prepared by Helms & Associates, or other registered or
licensed surveyor acceptable to the Lenders and the Title Insurance Company, certified to the
Collateral Agent, the Administrative Agent, the Lenders and such Title Insurance Company.

     “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond index
swaps or options or forward bond or forward bond price or forward bond index transactions, interest
rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions, currency options,
spot contracts, or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, (b) any and all transactions of any kind, and the
related confirmations, which are subject to the terms and conditions of, or governed by, any form
of master agreement published by the International Swaps and Derivatives Association, Inc., any
International Foreign Exchange Master Agreement, or any other master agreement, including any such
obligations or liabilities under any such master agreement and (c) for the avoidance of doubt,
includes the Permitted Commodity Hedging Arrangements and excludes any contract for the physical
sale or purchase of any commodity.

     “Swap Termination Value” means, in respect of any one or more Swap Contracts
(including any Permitted Commodity Hedging Arrangements), after taking into account the effect of
any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or
after the date such Swap Contracts have been closed out and termination value(s) determined in
accordance therewith, such termination value(s), and (b) for any date prior to the date referenced
in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, in
accordance with the terms of the applicable Swap Contract, or, if no provision is made therein, as
determined based upon one or more mid-market or other readily available quotations provided by any
recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender).

     “Tax” or “Taxes” means any present or future taxes (including income, gross
receipts, license, payroll, employment, excise, severance, stamp, documentary, occupation, premium,
windfall profits, environmental, capital stock, franchise, profits, withholding, social security
(or similar), unemployment, disability, real property, personal property, sales, use, transfer,
registration, value-added, ad valorem, alternative or add-on minimum, estimated, or other tax of
any kind whatsoever), levies, imposts,

Exhibit A - 36

 

duties, fees or charges (including any interest, penalty, or addition thereof) imposed by any
government or any governmental agency or instrumentality or any international or multinational
agency or commission.

     “Tax Return” means all returns, declarations, reports, claims for refund and
information returns and statements of any Person required to be filed with respect to, or in
respect of, any Taxes, including any schedule or attachment thereto and any amendment thereof.

     “Technology License Provider” means ICM, Inc., a Kansas corporation.

     “Termination Event” means (i) a Reportable Event with respect to any Plan, (ii) the
initiation of any action by the Borrower, any ERISA Affiliate or any Plan fiduciary to terminate
any Plan (other than a standard termination under Section 4041(b) of ERISA) or the treatment of an
amendment to any Plan as a termination under Section 4041(e) of ERISA, (iii) the institution of
proceedings by the PBGC under Section 4042 of ERISA to terminate any Plan or to appoint a trustee
to administer any Plan, (iv) the withdrawal of the Borrower or any ERISA Affiliate from any
Multiemployer Plan during a plan year in which the Borrower or such ERISA Affiliate was a
“substantial employer” as defined in Section 4001(a)(2) of ERISA or the cessation of operations
which results in the termination of employment of twenty percent (20%) of any Multiemployer Plan
participants who are employees of the Borrower or any ERISA Affiliate, (v) the partial or complete
withdrawal of the Borrower or any ERISA Affiliate from any Multiemployer Plan, or (vi) the Borrower
or any ERISA Affiliate is in default (as defined in Section 4219(c)(5) of ERISA) with respect to
payments to any Multiemployer Plan.

     “Threat of Release” shall mean “threat of release” as used in CERCLA.

     “Title Continuation” means a date-down endorsement or title insurance policy issued by
the Title Insurance Company (including their local title insurance abstractors) that: (i) confirms
that since the later of the date that the Title Insurance Policy or last Title Continuation was
issued, there has been no change in title to the Mortgaged Property that affects the first priority
of the liens and security interests created under the Mortgages covering such Mortgaged Property,
and no Liens or survey exceptions (in the case of any updated or “as-built” survey that has been
issued) not theretofore approved by the Required Lenders, which endorsement or policy shall contain
no recorded mechanic’s liens except as approved by the Required Lenders or as otherwise subject to
a Contest, and shall be in all other respects in form and substance reasonably satisfactory to the
Administrative Agent; and (ii) adds to the Title Insurance Policy any newly acquired real property
that must be added to the Mortgaged Property pursuant to

Exhibit A - 37

 

the terms of this Agreement, including without limitation, the land transferred to the
Borrower pursuant to the Huron Additional Parcel Quitclaim Deed.

     “Title Insurance Company” means Old Republic National Title Insurance Company, or such
other title insurance company or companies reasonably satisfactory to the Administrative Agent.

     “Title Insurance Policy” means, with respect to the Aberdeen Plants, policy number
LX237730, and with respect to the Huron Plant, policy number LX138253, each dated October 15, 2007,
and issued by Old Republic National Title Insurance Company, together with any Title Continuations
that have been or may be issued by the Title Insurance Company from time to time.

     “Track Area Lease Agreement” means the Lease of Land for Construction/Rehabilitation
of Track, dated as of November 1, 2007, between BNSF Railway Company and the Borrower.

     “Transaction Documents” means, collectively, the Financing Documents and the Project
Documents.

     “Trinity Railcar Lease” means the Railroad Car Lease Agreement, dated October 25,
2007, between the Borrower and Trinity Industries Leasing Company, including Rider One (1) to
Railroad Car Lease Agreement dated October 25, 2007 as amended by Amendment No. 01 to Rider One
(01) effective November 2, 2007.

     “Unfunded Benefit Liabilities” means, with respect to any Plan at any time, the amount
(if any) by which (i) the present value of all accrued benefits calculated` on an accumulated
benefit obligation basis and based upon the actuarial assumptions used for accounting purposes
(i.e., those determined in accordance with FASB statement No. 35 and used in
preparing the Plan’s financial statements) exceeds (ii) the fair market value of all Plan assets
allocable to such benefits, determined as of the then most recent actuarial valuation report for
such Plan.

     “Uniform Commercial Code” or “UCC” means the Uniform Commercial Code as in
effect from time to time in the State of New York; provided, however, in the event
that, by reason of mandatory provisions of law, any or all of the perfection or priority of the
security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a
jurisdiction other than the State of New York, the term “UCC” shall mean the
Uniform Commercial Code as in effect in such other jurisdiction for purposes of provisions relating
to such perfection or priority and for purposes of definitions related to such provisions.

Exhibit A - 38

 

     “United States” or “U.S.” means the United States of America, its fifty States
and the District of Columbia.

     “United States Person” means a “United States person” as defined in
Section 7701(a)(30) of the Code.

     “Water Supply Contract” means that certain Construction and Water Supply Contract,
dated as of January 31, 2007, between the WEB Water Development Association, Inc., and the Borrower
and Advanced BioEnergy, LLC jointly, including the Water Supply Contract attached as Exhibit A
thereof and incorporated therein by reference.

     “WDG” means wet distillers grains produced by the Borrower at the Project.

     “WestLB” means WestLB AG, New York Branch.

     “Working Capital Reserve Account” has the meaning set forth in Section 3.01(a)(iv) of
the Accounts Agreement.

     “Working Capital Reserve Required Amount” has the meaning set forth in the Accounts
Agreement.

Exhibit A - 39

 

EXHIBIT B

to Amended and Restated Senior Credit Agreement

[FORM OF NOTE]

Note

	 	 	 

	$[     
               ]

	 	[          
                 
             ]
	 
	 	 
	 

	 	[___, 2010]1

     FOR VALUE RECEIVED, ABE South Dakota, LLC (f/k/a Heartland Grain Fuels, L.P.) (the
“Borrower”), HEREBY PROMISES TO PAY to the order of [                         
               ], a
[                
                  
      ] (the “Lender”), at its offices located at [     
                  
                 ], the
principal sum of [             
       ] Dollars ($[    
                ]) or, if less, the aggregate unpaid principal
amount of the Loans made by the Lender to the Borrower under the Amended and Restated Senior Credit
Agreement, dated as of                
     , 2010 (as amended, restated, supplemented or otherwise modified
from time to time, the “Senior Credit Agreement”) among the Borrower, each of the Lenders
from time to time party thereto, WESTLB AG, NEW YORK BRANCH, as Administrative Agent for the
Lenders, and WESTLB AG, NEW YORK BRANCH, as Collateral Agent for the Senior Secured Parties.
Capitalized terms used herein but not otherwise defined herein shall have the respective meanings
set forth in the Senior Credit Agreement.

     The Borrower also promises to pay (i) interest on the unpaid principal amount hereof from the
date hereof until paid in full at the rates and at the times provided in the Senior Credit
Agreement and (ii) fees at such times and at such rates and amounts as specified in the Senior
Credit Agreement.

     Principal, interest and fees are payable in lawful money of the United States of America and
in immediately available funds, at the times and in the amounts provided in the Senior Credit
Agreement.

     This Note is entitled to the benefits and is subject to the terms and conditions of the Senior
Credit Agreement, and is entitled to the benefits of the security provided under the Security
Documents. As provided in the Senior Credit Agreement,

 

			
	1	 	Note: Insert Effective Date, or date of
request by the Lender.

Exhibit B - 1

 

this Note is subject to mandatory prepayment and voluntary prepayment, in whole or in part.
The Borrower agrees to make prepayment of principal on the dates and in the amounts specified in
the Senior Credit Agreement.

     The Senior Credit Agreement, among other things, contains provisions for acceleration of the
maturity hereof upon the happening of certain stated events.

     The Lender is hereby authorized, at its option, either (i) to endorse on the schedule attached
hereto (or on a continuation of such schedule attached to this Note and made a part hereof) an
appropriate notation evidencing the date and amount of the Loans evidenced hereby and the date and
amount of each principal payment in respect thereof, or (ii) to record such Loans and such payments
in its books and records. Such schedule or such books and records, as the case may be, shall
constitute prima facie evidence of the accuracy of the information contained therein, but in no
event shall any failure by the Lender to endorse or record pursuant to clauses (i) and (ii) be
deemed to relieve any Borrower from any of its obligations.

     The Borrower hereby waives presentment, demand, protest or notice of any kind in connection
with this Note. All amounts payable under this Note are payable without relief from valuation and
appraisement Laws.

     The Borrower agrees to pay all costs and expenses, including without limitation attorneys’
fees, incurred in connection with the interpretation or enforcement of this Note, in accordance
with and to the extent provided by the Senior Credit Agreement.

     THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, UNITED STATES OF AMERICA, WITHOUT REFERENCE TO CONFLICTS OF LAWS (OTHER THAN SECTION 5-1401
OF THE NEW YORK GENERAL OBLIGATIONS LAW).

	 	 	 	 	 
	 	ABE SOUTH DAKOTA, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Exhibit B - 2

 

Schedule to Note

LOANS, MATURITIES AND PAYMENTS OF PRINCIPAL

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Amount of	 	Unpaid	 	 
	 	 	Amount of	 	Maturity	 	Principal Paid	 	Principal	 	Notation
	Date	 	Loan	 	of Loan	 	or Prepaid	 	Balance	 	Made By
	 	 	 	 	 	 	 	 	 	 	 

Exhibit B - 3

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