Document:

10.4 - $5,000,000 Revolving Term Loan Supp

Loan No. R10910TO2B

REVOLVING TERM LOAN SUPPLEMENT

THIS SUPPLEMENT to the Master Loan Agreement dated July 21, 2010 (the "MLA"), is entered into as of  December 28, 2012 between FARM CREDIT SERVICES OF AMERICA, FLCA ("Lead Lender") and GOLDEN GRAIN ENERGY, LLC, Mason City, Iowa (the "Company"), and amends and restates the Supplement dated June 23, 2011 and numbered R10910T02A.

SECTION 1. The Revolving Term Loan Commitment. On the terms and conditions set forth in the MLA and this Supplement, Agent agrees to make loans to the Company during the period set forth below in an aggregate principal amount not to exceed $5,000,000.00 at any one time outstanding (the "Commitment"). Within the limits of the Commitment, the Company may borrow, repay and reborrow.

SECTION 2. Purpose. The purpose of the Commitment is to establish a settlement line for the Company to settle daily activity including cash management services.

SECTION 3. Term. The term of the Commitment shall be from the date hereof, up to and including February 1, 2020, or such later date as Agent (as that term is defined in the MLA) may, in its sole discretion, authorize in writing.

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

(A)One-Month LIBOR Index Rate. At a rate (rounded upward to the nearest 1/100th and adjusted for reserves required on "Eurocurrency Liabilities" [as hereinafter defined] for banks subject to "FRB Regulation D" [as hereinafter defined] or required by any other federal law or regulation) per annum equal at all times to 3.15% above the rate quoted by the British Bankers Association (the "BBA") at 11:00 a.m. London time for the offering of one (1)-month U.S. dollars deposits, as published by Bloomberg or another major information vendor listed on BBA's official website on the first "U.S. Banking Day" (as hereinafter defined) in each week, with such rate to change weekly on such day. The rate shall be reset automatically, without the necessity of notice being provided to the Company or any other party, on the first "U.S. Banking Day" of each succeeding week, and each change in the rate shall be applicable to all balances subject to this option. Information about the then-current rate shall be made available upon telephonic request. For purposes hereof: (1) "U.S. Banking Day" shall mean a day on which Agent is open for business and banks are open for business in New York, New York; (2) "Eurocurrency Liabilities" shall have the meaning as set forth in "FRB Regulation D"; and (3) "FRB Regulation D" shall mean Regulation D as promulgated by the Board of Governors of the Federal Reserve System, 12 CFR Part 204, as amended.

(B)Quoted Rate. At a fixed rate per annum to be quoted by Agent 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 Agent in its sole discretion in each instance, provided that: (1) the minimum fixed period shall be 30 days; (2) amounts may be fixed in increments of $100,000.00 or multiples thereof; and (3) the maximum number of fixes in place at any one time shall be five.

(C)LIBOR. At a fixed rate per annum equal to "LIBOR" (as hereinafter defined) plus 3.15%. Under this option: (1) rates may be fixed for "Interest Periods" (as hereinafter defined) of 1, 2, 3, 6, 9, or 12 months, as selected by the Company; (2) amounts may be fixed in increments of $100,000.00 or multiples thereof; (3) the maximum number of fixes in place at any one time shall be five; and (4) rates may only be fixed on a "Banking Day" (as hereinafter defined) on three Banking Days' prior written notice. For purposes hereof: (a) "LIBOR" shall mean the rate (rounded upward to the nearest sixteenth and adjusted for reserves required on "Eurocurrency Liabilities" [as hereinafter defined] for banks subject to "FRB Regulation D" [as herein defined] or required by any other federal law or regulation) quoted by the British Bankers Association (the "BBA") at 11:00 a.m. London time two Banking Days before the commencement of the Interest Period for the offering of U.S. dollar deposits in the London interbank market for the Interest Period designated by the Company, as published by Bloomberg or another major information vendor listed on BBA's official website; (b) "Banking Day" shall mean a day on which Agent is open for business, dealings in U.S. dollar deposits are 

Revolving Term Loan Supplement RI0910T02B                                        -2-
GOLDEN GRAIN ENERGY, LLC
Mason City, Iowa

being carried out in the London interbank market, and banks are open for business in New York City and London, England; (c) "Interest Period" shall mean a period commencing on the date this option is to take effect and ending on the numerically corresponding day in the next calendar month or the month that is 2, 3, 6, 9, or 12 months thereafter, as the case may be; provided, however, that: (i) in the event such ending day is not a Banking Day, such period shall be extended to the next Banking Day unless such next Banking Day falls in the next calendar month, in which case it shall end on the preceding Banking Day; and (ii) if there is no numerically corresponding day in the month, then such period shall end on the last Banking Day in the relevant month; (d) "Eurocurrency Liabilities" shall have meaning as set forth in "FRB Regulation D"; and (e) "FRB Regulation D" shall mean Regulation D as promulgated by the Board of Governors of the Federal Reserve System, 12 CFR Part 204, as amended.

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 for periods expiring after the maturity date of the loans and 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 electronically (if applicable), telephonically or in writing and must be received by Agent not later than 12:00 Noon Company's local time in order to be considered to have been received on that day; provided, however, that in the case of LIBOR rate loans, all such elections must be confirmed in writing upon Agent's request. 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 quarterly in arrears by the 20th day of the following month or on such other day in such month as Agent shall require in a written notice to the Company; provided, however, in the event the Company elects to fix all or a portion of the indebtedness outstanding under the LIBOR interest rate option above, at Agent's option upon written notice to the Company, interest shall be payable at the maturity of the Interest Period and if the LIBOR interest rate fix is for a period longer than three months, interest on that portion of the indebtedness outstanding shall be payable quarterly in arrears on each three-month anniversary of the commencement date of such Interest Period, and at maturity.

SECTION 5. Promissory Note. The Company promises to repay the loans that are outstanding at the time the Commitment expires on February 1, 2020. If any installment due date is not a day on which Agent is open for business, then such payment shall be made on the next day on which Agent 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. Security. The Company's obligations hereunder and, to the extent related hereto, under the MLA, including without limitation any future advances under any existing mortgage or deed of trust, shall be secured as provided in the Security Section of the MLA.

SECTION 7. Commitment Fee. In consideration of the Commitment, the Company agrees to pay to Agent a commitment fee on the average daily unused portion of the Commitment at the rate of 0.60% per annum (calculated on a 360-day basis), payable monthly in arrears by the 20th day following each month. Such fee shall be payable for each month (or portion thereof) occurring during the original or any extended term of the Commitment.

SECTION 8. Settlement Line.

(A)Lead Lender, at any time and from time to time in its sole discretion, may by written notice to the Company require that all of or a portion of the loans outstanding under this Supplement (as amended, supplemented or modified from time to time) be repaid using the proceeds of Revolving Term Loan Supplement No. RI0910T01 dated July 21, 2010 (as amended, supplemented or modified from time to time). If the Company receives such written 

Revolving Term Loan Supplement RI0910T02B                                        -3-
GOLDEN GRAIN ENERGY, LLC
Mason City, Iowa

notice from Agent at or before 10:00 a.m. Company's local time on a business day, the Company shall, at or before 12:00 noon Company's local time on such business day, make the required prepayment of all or a portion of the loans as requested in Agent's written notice.

(B)The Company, at any time and from time to time in its sole discretion, may, by delivery of the appropriate notices pursuant to the MLA, repay all or a portion of the loans outstanding under this Supplement using the proceeds of the Supplements referenced in (A) above.

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

	
			
	FARM CREDIT SERVICES OF AMERICA, FLCA
	 
	GOLDEN GRAIN ENERGY, LLC

	 
	 
	 

	By: /s/ Katheryn Frahm
	 
	By: /s/ Walter Wendland

	 
	 
	 

	Title: VP Commercial Lender
	 
	Title: President and CEOex10_2.htm

Exhibit 10.2

 

 

 

 

February 2nd, 2012

 

 

Dr Jo Webber

8111 St Martins Lane

Philadelphia PA 19118

 

Dear Jo

 

It is my pleasure to extend to you, effective March 1st, 2012 ("Effective Date"), an offer for employment as Chief Executive Officer with Virtual Piggy, Inc. As discussed and agreed, you will also remain as the Chairman of the Board of Directors. I will move into the role of Company Secretary and remain on the Board of Directors.

 

In consideration for your employment, Virtual Piggy agrees to pay you an annual salary of $350,000 paid in bi-weekly installments. You will also be entitled to earn up to 60% of your base salary in annual incentive compensation based upon your achievement of mutually agreeable goals. In addition, the Company offers you the following benefits:

 

	
•

	
Four weeks of paid vacation time. The employee may also be granted by management additional unpaid leave not to exceed five days in a calendar year.

	
•

	
Reimbursement of relocations costs as reasonable and necessary to complete a move to Los Angeles

	
•

	Company Health Care plan

	
•

	
Reimbursement for approved reasonable business expenses incurred on behalf of the Company. Detailed receipts are required for all reimbursable expenses

	
•

	Options as approved by the Board of Directors

 

Virtual Piggy Inc. is an at-will employer, and neither you nor Virtual Piggy is bound to continue the employment relationship if either chooses, at its will, to end the relationship at any time. However, in the event that your employment is terminated involuntarily, other than for Cause, you will entitled to nine (9) months of base wages, at your then current rate, plus nine (9) months of company provided benefits. The base wages will be paid over the course of the nine (9) months in accordance with the Company’s payroll cycle. Benefits will be provided to you, net of your then existing contributions. For purposes of this Agreement the term "Cause" shall mean the Employee's (a) misconduct involving fraud, material dishonesty or illegality; (b) commission of a felony or other crime involving fraud, dishonesty or moral turpitude; (c) failure to perform any of his material obligations under this Agreement or any of his material duties as reasonably directed by the Company's Chief Executive Officer or the Board of Directors, and, in each case, failure to cure such breach (other than by reason of death or disability, court decree or agreement) within twenty (20) business days after written notice thereof from the Company to employee to the extent the breach is capable of being cured; (d) violation of any written policies of the Company, the failure of which was or could be materially adverse to the Company's operations or financial condition.

 

This offer is contingent upon your ability to provide all acceptable documentation under the Immigration Reform and Control Act of 1986, which requires Virtual Piggy to verify that each employee hired is legally entitled to work in the United States, Virtual Piggy's receipt of satisfactory results of your background check, as well as your execution of a non-disclosure and confidentiality agreements in the standard form utilized by Virtual Piggy, Inc. for its employees.

 

  

  

  

 

Please indicate your acceptance by signing and faxing a copy of this letter to (215) 247-1032 and forwarding the original to Human Resources at our Corporate office by US Mail. The mailing address is 15 West Highland Avenue, Philadelphia, PA 19118.

 

I am excited to introduce you into the Virtual Piggy organization, and believe that you will make a strong contribution. If you have any questions regarding the details of this offer, please do not hesitate to contact me.

 

 

Best Regards,

 

 

 

	
/s/ Ernest Cimadamore

	 
	
Ernest Cimadamore 

	 
	Board Director, Company Secretary	 

 

 

 

In Acceptance,

 

 

	/s/ Jo Webber	Feb. 3rd 2012	 
	 	 	 
	Jo Webber	Date

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