Document:

exv10w33

 

Exhibit 10.33

Loan No. RI0178T01B

MULTIPLE ADVANCE TERM LOAN SUPPLEMENT

     THIS SUPPLEMENT to the Master Loan Agreement dated October 13, 2004 (the “MLA”), is entered
into as of June 11, 2007, between CoBANK, ACB (“CoBank”) and AMAIZING ENERGY DENISON, LLC (formerly
known as Amaizing Energy, L.L.C.), Denison, Iowa (the “Company”), and amends and restates the
Supplement dated October 13, 2004, and numbered RI0178T01.

     SECTION 1. The Term Loan Commitment. On the temis and conditions set forth in the MLA and this
Supplement, CoBank agrees to make loans to the Company from time to time during the period set
forth below in an aggregate principal amount not to exceed $24,750,000.00 (the “Commitment”). Under
the Commitment, amounts borrowed and later repaid may not be reborrowed.

     SECTION 2. Purpose. The purpose of the Commitment is to partially finance the construction of
Amaizing Energy Atlantic, LLC, Atlantic, Iowa.

     SECTION 3. Term. The term of the Commitment shall be from the date hereof, up to and including
February 1, 2009, or such later date as CoBank may, in its sole discretion, authorize in writing.

     SECTION 4. Interest. The Company agrees to pay interest on the unpaid balance of the loans in
accordance with one or more of the following interest rate options, as selected by the Company:

     (A) CoBank Base Rate. At a rate per annum equal at all times to plus 45/100 of 1% above the
rate of interest established by CoBank from time to time as its CoBank Base Rate, which rate is
intended by CoBank to be a reference rate and not its lowest rate. The CoBank Base Rate will change
on the date established by CoBank as the effective date of any change therein and CoBank agrees to
notify the Company of any such change.

     (B) Quoted Rate. At a fixed rate per annum to be quoted by CoBank in its sole discretion in
each instance. Under this option, rates may be fixed on such balances and for such periods, as may
be agreeable to CoBank in its sole discretion in each instance, provided that: (1) the minimum
fixed period shall be 180 days; (2) amounts may be fixed in increments of $500,000.00 or multiples
thereof; and (3) the maximum number of fixes in place at any one time shall be 10.

The Company shall select the applicable rate option at the time it requests a loan hereunder and
may, subject to the limitations set forth above, elect to convert balances bearing interest at the
variable rate option to one of the fixed rate options. Upon the expiration of any fixed rate
period, interest shall automatically accrue at the variable rate option unless the amount fixed is
repaid or fixed for an additional period in accordance with the terms hereof. Notwithstanding the
foregoing, rates may not be fixed in such a manner as to cause the Company to have to break any
fixed rate balance in order to pay any installment of principal. All elections provided for herein
shall be made telephonically or in writing and must be received by 12:00 Noon Company’s local time
Interest shall be calculated on the actual number of days each loan is outstanding on the basis of
a year consisting of 360 days and shall be payable monthly in arrears by the 20th day of the
following month or on such other day in such month as CoBank shall require in a written notice to
the Company.

 

 

Multiple Advance Term Loan Supplement RI0178T01B

Amaizing Energy Denison, LLC

Denison, LLC

     SECTION 5. Promissory Note. The Company promises to repay the loans on February 1,
2009. If any installment due date is not a day on which CoBank is open for business, then
such installment shall be due and payable on the next day on which CoBank is open for
business. In addition to the above, the Company promises to pay interest on the unpaid
principal balance hereof at the times and in accordance with the provisions set forth in
Section 4 hereof. This note replaces and supersedes, but does not constitute payment of the
indebtedness evidenced by, the promissory note set forth in the Supplement being amended
and restated hereby.

     SECTION 6. Prepayment. Subject to the broken funding surcharge provision of the MLA,
the Company may on one Business Day’s prior written notice prepay all or any portion of the
loan(s). Unless otherwise agreed by CoBank, all prepayments will be applied to principal
installments in the inverse order of their maturity and to such balances, fixed or
variable, as CoBank shall specify.

     SECTION 7. Amendment Fee. In consideration of the amendment, the Company agrees to pay
to CoBank on the execution hereof a fee in the amount of $35,000.00.

     IN WITNESS WHEREOF, the parties have caused this Supplement to be executed by their
duly authorized officers as of the date shown above.

	 	 	 	 	 	 	 	 	 	 	 
	CoBANK, ACB	 	 	 	AMAIZING ENERGY DENISON, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Penny Probasco
	 	 	 	By:
	 	/s/ Sam J. Cogdill	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	Title:

	 	Assistant Corporate Secretary
	 	 	 	Title:
	 	Chairman, CEOexv10w34

 

Exhibit 10.34

Loan No. R10178T03

SINGLE ADVANCE TERM LOAN SUPPLEMENT

     THIS SUPPLEMENT to the Master Loan Agreement dated October 13, 2004 (the “MLA”), is entered
into as of June 11, 2007, between CoBANK, ACB (“CoBank”) and AMAIZING ENERGY DENISON, LLC,
Denison, Iowa (the “Company”).

     Any amendments, adjustments, or waivers of the covenants and terms of this loan agreement (i.e.,
this Supplement, and, while this Supplement is in effect, the MLA) will require the approval and
concurrence of the USDA Rural Development and CoBank.

     SECTION 1. The Term Loan Commitment. On the terms and conditions set forth in the MLA, CoBank
agrees to make a single advance loan to the Company in an amount not to exceed $250,000 (the
“Commitment”). The Commitment shall expire at 12:00 Noon (Company’s local time) on February 1,
2009, or on such later date as CoBank may, in its sole discretion, authorize in writing.

     SECTION 2. Purpose. The purpose of the Commitment is to partially finance the construction of
Amaizing Energy Atlantic, LLC, Atlantic, Iowa.

     SECTION 4. Interest. The Company agrees to pay interest on the unpaid balance of the loan(s)
in accordance with the following interest rate:

     CoBank Base Rate. At a rate per annum equal at all times to plus 45/100 of 1% above
the rate of interest established by CoBank from time to time as its CoBank Base Rate, which rate is
intended by CoBank to be a reference rate and not its lowest rate. The CoBank Base Rate will change
on the date established by CoBank as the effective date of any change therein and CoBank agrees to
notify the Company of any such change.

     Interest shall be calculated on the actual number of days each loan is outstanding on the basis of
a year consisting of 360 days and shall be payable monthly in arrears by the 20th day of the
following month or on such other day in such month as CoBank shall require in a written notice to
the Company.

     SECTION 4. Promissory Note. The Company promises to repay the loan on February 1, 2009. If any
installment due date is not a day on which CoBank is open for business, then such installment shall
be due and payable on the next day on which CoBank is open for business. In addition to the above,
the Company promises to pay interest on the unpaid principal balance of the loan at the rate and at
the times set forth above.

     SECTION 5. Prepayment. Subject to the broken funding surcharge provision of the MLA, the
Company may on one Business Day’s prior written notice prepay all or any portion of the loan(s).
Unless otherwise agreed by CoBank, all prepayments will be applied to principal installments in the
inverse order of their maturity and to such balances, fixed or variable, as CoBank shall specify.

     SECTION 6. Loan Origination Fee. In consideration of the Commitment, the Company agrees to pay
to CoBank on the execution hereof a loan origination fee in the amount of $2,500.00.

 

 

     IN WITNESS WHEREOF, the parties have caused this Supplement to be executed by their duly
authorized officers as of the date shown above.

	 	 	 	 	 	 	 	 	 	 	 
	CoBANK, ACB	 	 	 	AMAIZING ENERGY DENISON, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Penny Probasco
	 	 	 	By:
	 	/s/ Sam J. Cogdill	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	Title:

	 	Assistant Corporate Secretary
	 	 	 	Title:
	 	Chairman, CEOexv10w35

 

Exhibit 10.35

	 	 	 
	

 

AMAIZING ENERGY

	 	2404 w Hwy 30

Denison, IA 51442

Ph: (712) 263-CORN

     (800) 590-2827

Fax: (712) 263-4134

www.amzenergy.com

June 26, 2007

Board of Trustees, Atlantic Municipal Utilities

Frank W. Greiner, Chairman

15 West Third Street

Atlantic, Iowa 50022

To the Board of Trustees:

Amaizing Energy Holding Company, LLC (AEHC), through its subsidiary, Amaizing Energy Atlantic, LLC
(AEA), has been working with your utility on planning and construction of electric facilities to
serve our proposed ethanol production facility in your electric service area. Our companies are
aware that Atlantic Municipal Utilities (AMU) has made, and will continue to make, expenditures for
which the project is ultimately responsible, and that AMU cannot accept any significant financial
risk.

As you may know, we have only recently made filings with the Securities and Exchange Commission,
related to our intent to solicit investors for the AEHC, LLC, to include the Atlantic project and
Denison expansion.

AEHC, as the parent holding company of AEA, is willing to provide certain assurances and financial
guarantees to AMU, as follows:

Amaizing Energy Holding Company, LLC assures and guarantees that, in the event that (for any
reason) the planned ethanol production facility in Atlantic is cancelled or otherwise is not
completed, that it will reimburse Atlantic Municipal Utilities for any and all unrecoverable
expenses incurred for materials, supplies, equipment, engineering services, labor and overheads,
contract work, or any other out-of-pocket expense related to provision of electric service to the
plant. It is understood that said expenses also includes the cost of removal of facilities
constructed prior to the date of this letter. Any materials, supplies or equipment that had been
purchased for the project but not usable by AMU in the normal course of its operations would be
sold, and if a loss results from said sale, AEHC agrees to reimburse AMU in full for any such
losses. Materials and supplies used in construction of facilities that AMU not to remove would be
reimbursed at 25% of their original cost.

AEHC understands and agrees that, during the next several months, major equipment will be ordered
that, if such orders are cancelled, will result in cancellation charges. AEHC agrees to be
financially responsible for any and all such charges, and shall promptly issue payment for any such
charge upon invoice by AMU.

 

 

AEHC understands and agrees that, if the Atlantic project should be delayed by more than six months
from its currently planned November 1, 2008 completion date, that it will reimburse AMU for any and
all expenditures incurred on behalf of the project prior to the decision to delay.

And AEHC will notify AMU in writing when its fundraising efforts are completed.

This letter of assurance and guarantee was approved by the Board of Directors of Amaizing Energy
Holding Company, LLC on the 26 day of June, 2007.

	 	 	 	 	 	 	 	 	 
	 /s/ Sam J. Cogdill      6/26/07
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Signature

	 	 	 	Signature	 	 	 	 
	[Printed name:] Sam Cogdill

	 	 	 	[Printed name:]	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	CEO

	 	 	 	Secretary
	 	 	 	 

Amaizing Energy Holding Company, LLC

2404 W. Hwy 30

Denison, Iowa 51442

 

 

AMU

Atlantic Municipal Utilities

June 19, 2007

Chairman & Board of Directors

Amaizing Energy Holding Company, LLC

2404 W Hwy 30

Denison, IA 51442

Gentlemen:

This letter is to provide information related to an e-mail I sent to Bill Chapman on May
23rd, and some followup conversation with representatives from the local committee. The
purpose of both was to alert you to the fact that, while we understand that the Atlantic project is
limited in what can be done prior to raising funds, some deadlines exist for important decisions.
Some of those decisions will need to be made sooner than outside funding efforts are completed.

The information that follows may tend to be a bit confusing, but space does not allow for full
explanation or background information.

1.) Electrical Substation Issues

     A. Remanufactured transformer

     For reliability purposes, the plan is to install two 10 MVA substation transformers, in an
effort to save money, we located a used transformer which can be remanufactured for $325,000 (plus
any applicable adders related to metals markets). In order to make sure that the unit didn’t get
sold prior to fundraising, you paid a $35,000 deposit, $10,000 of which will be forfeited should
you opt not to place a formal order. 100% of the deposit will apply toward purchase if you proceed.
In order to accomplish delivery by the time the unit is needed (your planned completion date of
11/01/03), the order needs to he confirmed by September 1st. (Advise decision by early August)

     B. New transformer

     AMU took bids on a new substation transformer, but did not formally place an order due to the
shortage of available cash prior to completion of fundraising. We made arrangements with the low
bidder to conditionally accept their bid, with the caveat that a formal order must he placed by no
later than August 1e, The base bid for this unit was about $571,000. Once this order is
formalized, any cancellation would result in a cancellation charge, the magnitude of which would
increase, the closer it was to the delivery date. The initial level of the cancellation fee is 26%
(about $143,000). The maximum could theoretically he as much as 100% of the bid cost, but more
likely would be about 60-70% of that (about $400,000). (Advise decision by mid-July)

     C. Substation engineering design

     In order to stay on schedule and have power available by your planned completion date,
engineering and design work needs to be started by no later than September 1st. In
reality, it would be much wiser to start by August 151. The cost related to
our engineering consultants’ work is about $90,000. (Advise decision as soon as
possible., but absolutely no later than mid-August)

     D. Switchgear

     (These are devices similar to circuit breakers in your home’s electrical panel, but much
larger) Due to lead times required,

Atlantic
Municipal Utilities — 15 Vest 3 d Street — Atlantic, IA 50022
— Tel. (712) 243-1395 — Fax (712) 243-2028

 

 

switchgear should be ordered by mid-November. In order to do so, specifications should be
completed and bids let by October 1. This is another reason to get the engineers started on their
work.

2.) Transmission facilities

     Work continues on the transmission line that will feed the new substation on your site. We are
still waiting for a deed for the property where the substation will he located.

     AMU has spent about $115,000 thus far on design fees, easements, and materials and supplies.
This does not include labor or equipment costs.

3.) Distribution system

     A. Cable purchase

     AMU has verbally agreed to install the medium voltage (13 KV) underground distribution system
for you, on a time and materials basis, plus the cost for any third party contractors. In an effort
to save you some money, AMU purchased a significant portion of the high voltage cable at a reduced
price, saving you at least $25,000. Our investment in that cable is approximately $100,000.

B. Transformers

     AMU took bids for the transformers you will need, and awarded the hid to the low bidder, for
just over $412,000. After placing the order, and successfully getting delivery dates that matched
your needs, we were asked to cancel or postpone the order. Cancellation of the order would have
resulted in a cancellation charge of 25%, well over $100,000. The vendor did agree to postpone the
deliveries until 2003, but the tradeoff is that there may be some added cost, should their
production costs increase, If the order should have to be cancelled, the 25% cancellation charge
will he applied.

I think you can see that not only do some decisions need to be made, and soon, but that there is
significant financial risk involved. Normally, when the investment is significant, we require
customers to pay any required contributions-in-aid-of-construction in advance, based on estimated
costs. We recognize how difficult it must be for you to manage a project of this magnitude, and are
trying to cooperate to the best of our ability. However, AMU is a publicly-owned entity, and all
funds we handle are public funds, so we have a fiduciary responsibility to minimize risk. We have
already made significant expenditures on behalf of the project, but at this point we cannot accept
a lot of additional risk as the project advances.

As we go forward, making financial commitments which carry risk, AMU will need to have Arnaizing
Energy (AE) do several things. First of all, as each of the decisions related to placing or
confirming/formalizing orders occurs, we would like AE to advance cash, equal to at least one-half
of the identified risk. Before ordering the new substation transformer, we would like AE to advance
$72,000 to AMU (prior to the deadline dates). Before initiating the engineering work, we
would want an advance of $45,000. Formally ordering the remanufactured transformer, or the
switchgear, or executing any construction contracts will all have consequences if cancelled. Absent
your decision and the accompanying cash advances, we would necessarily delay moving forward with
any particular major order or activity. Missing the timelines would likely result in permanent
electric service not being completed by your internal deadlines, given the long lead times involved
in our industry.

Secondly, we’ve been working with a group that consists of both local parties, and people who serve
on the Board of Directors of one of the Denison corporations. We understand, and are concerned,
that the Amaizing Energy Atlantic corporation has few assets, and a myriad of demands on those
assets. We have, and will continue to have, significant risk related to your project, and we need
assurances from the holding company that it will guarantee payment to AMU for any expense incurred
as a result of preparing to serve the new facilities should for any reason the project not go
forward. That guarantee would provide for payment for cancellation charges, as well as any losses
we might incur for labor, materials, supplies and other costs.

Thirdly, we will he issuing statements for materials, supplies, labor and contract labor for the
temporary electric service just now being installed, as well as for any additional expenses we
incur from this time forward. We need assurances that ongoing costs will be reimbursed within 15 or
20 days of invoice.

Atlantic
Municipal Utilities — 15 Vest 3 d Street — Atlantic, IA 50022
— Tel. (712) 243-1395 — Fax (712) 243-2028

 

 

Finally, we want an understanding that we can bill and be paid for any unpaid costs, as soon as
your fundraising is completed. If
some portion of our $215,000 plus investment could be repaid sooner, we would greatly appreciate
it.

We understand that your SEC filing makes it difficult for you to obtain an Irrevocable Letter of
Credit, which would have been a logical method for you to provide us guarantees. Given that, we
will consider a letter (subject to our review and acceptance), on your letterhead, approved by your
board and executed by your corporate officers, in which you state that the Denison corporation will
provide the guarantees we need. if that is not acceptable, we would want to reconsider use of an
Irrevocable Letter of Credit, or some other financial or contractual instrument you might propose.

I am enclosing a draft of what we believe would be an appropriate response to us, regarding the
financial arrangements, assuming you do to provide a guarantee by letter. Edit the text as you see
fit, but please make sure that the elements within the letter are all included in whatever you send
to us. Also, please enclose a recent balance sheet for the corporation sending the letter. If that
document needs to be kept confidential, clearly mark it as “Confidential”.

Thank you for your time and attention to this matter. While we have business concerns regarding
minimizing our risk, we want you to know that we are looking forward to your project moving forward
successfully, and having Atlantic be equally as successful as your Denison operations. If you have
any questions, please feel free to contact me at any time.

Respectfully,

Allen Bonderman

General Manager

Atlantic Municipal Utilities

encl.

Atlantic
Municipal Utilities — 15 Vest 3 d Street — Atlantic, IA 50022
— Tel. (712) 243-1395 — Fax (712) 243-2028

 

 

SUMMARY OF AMU & AE ELECTRICAL COSTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Cash	 
	 	 	Decision	 	 	 	 	 	 	Spent to date	 	 	 	 	 	 	Advance/D	 
	Substation	 	date	 	 	Place order	 	 	AE	 	 	AMU	 	 	Total cost	 	 	own	 
	1A Remanufactured transformer
	 	 	8/6/2007	 	 	 	8/27/2007	 	 	$	35,000	 	 	 	 	 	 	$	325,000	 	 	$	81,250	 
	1B New Transformer
	 	 	7/16/2007	 	 	 	7/30/2007	 	 	 	 	 	 	 	 	 	 	$	571,000	 	 	$	72,000	 
	1C Substation engineering
	 	 	7/30/2007	 	 	 	8/1/2007	 	 	 	 	 	 	 	 	 	 	$	90,000	 	 	$	45,000	 
	1D Switchgear
	 	 	10/1/2007	 	 	 	11/12/2007	 	 	 	 	 	 	 	 	 	 	$	160,000	 	 	$	40,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Transmission Line
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2 Design, easements, materials, supplies
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	115,000	 	 	$	165,000	 	 	 	 	 
	Distribution system
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3A Cable
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	100,000	 	 	 	 	 	 	 	 	 
	3B Transformers
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	412,000	 	 	 	 	 
	Temporary Power
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4 Cable, plowing, supplies, labor to
install
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	20,000	 	 	$	20,000	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Totals
	 	 	 	 	 	 	 	 	 	$	35,000	 	 	$	235,000	 	 	$	1,743,000	 	 	$	235,250	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	Footnotes
	 
	1A	 	Holding payment made, balance of down payment due ($81,250) upon placing order September ’07,
balance due ($208,750) upon receipt of invoice approximately June ’08, metals markets may
effect total cost
	 
	1B	 	Cash advance covers 1/2 of initial cancellation charge, balance due ($499,000) upon receipt of
invoice approximately September ’08, metals markets may effect cost
	 
	1C	 	Cash advance covers 1/2 of design engineering cost, estimate approximately $18,000 November
’07, approximately $13,500 December ’07, balance (*$13,500) spread through first half
’08
	 
	1D	 	Best estimate today is total cost of $160,000 to connect to one of the two transformers (AMU
provides cost of remaining switchgear with transformer purchase), down payment ($40,000)
due upon October ’07 decision date
	 
	2	 	AMU has incurred these expenses on AE behalf, cost of $115,000 due after completion of equity
drive or sooner if cash flow allows
	 
	3A	 	AMU has incurred these expenses on AE behalf, cost of $100,000due after completion of equity
drive or sooner if cash flow allows
	 
	3B 	 	 Order has been placed, deliveries postponed until spring 2008, invoices begin upon
delivery
	 
	4 	 	 Cable has been purchased and installed, working on setting transformers, estimate invoice
due July ’07

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