Document:

Exhibit 10.1

  

  

  

  
    AMENDMENT NO. 7

     

    TO

     

    CREDIT AGREEMENT

     

    THIS AMENDMENT NO. 7 TO CREDIT AGREEMENT, dated as of October 29, 2021 (this “Agreement”), is entered into by and between SOUTHWEST IOWA RENEWABLE ENERGY, LLC, a limited liability company organized and existing under the laws of Iowa (the “Company”), FARM CREDIT SERVICES OF AMERICA, FLCA, a federally-chartered instrumentality of the United States (“FLCA”), FARM
      CREDIT SERVICES OF AMERICA, PCA, a federally-chartered instrumentality of the United States (“PCA”, and together with FLCA, individually and collectively, the “Lender”), and COBANK, ACB, a federally-chartered instrumentality of the United States (“CoBank”), in its capacity as Cash Management Provider and Agent. Capitalized terms not defined herein shall have the meanings set forth in the Existing Credit Agreement.

     

    BACKGROUND:

     

    WHEREAS, the Company, Lender and CoBank are parties to a
      Credit Agreement dated as of June 24, 2014, Amendment No. 1 to Credit Agreement dated as of February 11, 2015, Amendment No. 2 to Credit Agreement dated as of February 11, 2015, Amendment No. 3 to Credit Agreement dated as of January 25, 2016,
      Amendment No. 4 to Credit Agreement dated as of November 8, 2019, Amendment No. 5 to Credit Agreement dated as of February 26, 2021 and Amendment No. 6 to Credit Agreement dated as of July 30, 2021 (as the same may from time to time be amended,
      restated, modified or otherwise supplemented, collectively the “Existing Credit Agreement”), and the other Loan Documents;

     

    WHEREAS, the Company has requested that, as of the Effective
      Date, the Existing Credit Agreement be amended as herein provided; and

     

    WHEREAS, Lender and CoBank are willing, subject to the terms
      and conditions hereinafter set forth, to make such amendments;

     

    NOW, THEREFORE, in consideration of the agreements herein
      contained, the parties hereby agree as follows:

     

    	ARTICLE 1	
            Definitions.

          

     

    1.1          Certain Definitions. The following terms when used in the Agreement shall have the following meanings:

     

    “Agreement” is defined in the preamble to this Agreement.

     

    “CoBank” is defined in the preamble to this Agreement.

     

    “Company” is defined in the preamble to this Agreement.

     

    “Effective Date” is defined in Article 4.

     

    “Existing Credit Agreement” is defined in the first recital to this Agreement.

     

    “FLCA” is defined in the preamble to this Agreement.

     

    
      1

      
        

    

    “Lender” is defined in the preamble to this Agreement.

     

    “PCA” is defined in the preamble to this Agreement.

     

    “Second Amended and Restated Revolving Credit Note” is defined in Section 2.1 of
      this Agreement.

     

    1.2        Other Definitions. Unless otherwise defined or the context otherwise requires, terms used herein (including in the preamble and recitals hereto) have the meanings provided for in the Existing Credit Agreement.

     

    	ARTICLE 2	
            Amendments.

          

     

    Effective on (and subject to the occurrence of) the Effective Date, the Existing Credit Agreement is amended as follows:

     

    2.1       Revolving Credit Note.  The Revolving Credit Note referenced in Section 2.3(b) of the Existing Credit Agreement, and attached to the Existing Credit Agreement as Exhibit D, has been amended and restated in its
        entirety and is in the form attached hereto as Exhibit A, the terms and provisions of which are incorporated into the Existing Credit Agreement by reference and made a
        part thereof (the “Second Amended and Restated Revolving Credit Note”).

     

    	ARTICLE 3	
            Representations

                and Warranties.

          

     

    In order to induce Lender and CoBank to make the amendments provided for in Article 2, the Company hereby (a) represents and warrants that (i) each of
      the representations and warranties of the Company contained in the Existing Credit Agreement and in the other Loan Documents are true and correct in all material respects on and as of the date hereof, except that such representations and warranties
      (A) that relate solely to an earlier date shall be true and correct in all material respects as of such earlier date and (B) shall be true and correct in all respects to the extent they are qualified by a materiality standard and (ii) no Default or
      Event of Default has occurred and is continuing; and (b) agrees that the incorrectness in any respect of any representation and warranty contained in the preceding clause (a) shall constitute an immediate Event of Default. Without limiting the
      foregoing, the Company hereby (x) ratifies and confirms all of the terms, covenants and conditions set forth in the Loan Documents and hereby agrees that it remains unconditionally liable to Lender and CoBank in accordance with the respective terms,
      covenants and conditions set forth in the Loan Documents, and all Collateral in favor of Lender and CoBank continues unimpaired and in full force and effect, and (y) waives all defense, claims, counterclaims, rights of recoupment or set-off against
      any of its obligations.

     

    	ARTICLE 4	
            Conditions to Effectiveness.

          

     

    This Agreement shall become effective on such date (the “Effective Date”) when
      the following conditions have been satisfied:

     

    4.1         Representations and Warranties. The representations and warranties made by the Company pursuant to Article 3 as of the Effective Date shall be true and correct.

     

    4.2          Note.  CoBank shall have received a duly executed Second Amended and Restated Revolving Credit Note.

     

    
      2

      
        

    

    4.3         Other Requests. CoBank shall have received such other certificates, instruments, documents, agreements, information and reports as may be requested by CoBank, in form and substance satisfactory to CoBank.

     

    4.4         Payment of Fees and Expenses.  The Company shall have paid all fees and expenses of CoBank and the Lending Parties, if any, payable on or before the Effective Date as required by this Agreement or any other Loan
        Document.

     

    	ARTICLE 5	
            Miscellaneous.

          

     

    5.1          Loan Document Pursuant to Existing Credit Agreement. This Agreement is a Loan Document executed pursuant to the Existing Credit Agreement. Except as expressly amended hereby, all of the representations,
        warranties, terms, covenants and conditions contained in the Existing Credit Agreement and each other Loan Document shall remain unamended and otherwise unmodified and in full force and effect.

     

    5.2         Limitation of Amendments.  The amendments set forth in Article 2 shall be limited precisely as provided for herein and shall not be deemed to
        be a waiver of, amendment of, consent to or modification of any other term or provision of the Existing Credit Agreement or any term or provision of any other Loan Document or of any transaction or further or future action on the part of the
        Company which would require the consent of CoBank under the Existing Credit Agreement or any other Loan Document.

     

    5.3          Counterparts; Effectiveness.  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 shall have been executed by CoBank and when CoBank shall have 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 email shall be as effective as delivery of a manually executed counterpart of this Agreement.

     

    5.4         Incorporation of Existing Credit Agreement Provisions. The provisions of Article 11 of the Existing Credit Agreement shall apply to this Agreement, mutatis mutandis.

     

    [Signature Pages Follow]

     

    
      3

      
        

    

    [SIGNATURE PAGE TO CREDIT AGREEMENT AMENDMENT]

     

    IN WITNESS WHEREOF, the parties hereto, by their Authorized Officers, have executed this Agreement as of the date first set forth above.

     

    	 	
            COMPANY:

          
	 	 
	 	
            SOUTHWEST IOWA RENEWABLE ENERGY, LLC

          
	 	 	 
	 	
            By:

          	 /s/ Michael D. Jerke	 

    	 	
            Name:

            

          	Michael D. Jerke
	 	
            Title:

            

          	Chief Executive Officer

    

    

    
      	 	
              Notice Address for the Company:

            
	 	 
	 	
              Southwest Iowa Renewable Energy, LLC

            
	 	
              10868 189th Street

            
	 	
              Council Bluffs, Iowa 51503

            
	 	
              Attention:   Michael D. Jerke

            
	 	
              Fax  No.:   (712) 366-0394

            
	 	
              Email Address: mike.jerke@sireethanol.com

            

    

    

    

    
      4

      
        

    

    [SIGNATURE PAGE TO CREDIT AGREEMENT AMENDMENT]

     

    IN WITNESS WHEREOF, the parties hereto, by their Authorized Officers, have executed this Agreement as of the date first set forth above.

     

    	 	
            LENDER:

          
	 	 
	 	
            FARM CREDIT SERVICES OF AMERICA, FLCA

          
	 	 
	 	
            By:

          	/s/ Curt A. Brown

          	 

    	 	
            Name:

          	Curt A. Brown 

          
	 	
            Title:

          	Vice President

          

    

    

    
      	 	
              Notice Address for the Company:

            
	 	 
	 	
              Farm Credit Services of America, FLCA

            
	 	
              5015 S. 118th Street

            
	 	
              Omaha, Nebraska 68137

            
	 	
              Attention:   Agribusiness Finance

            
	 	
              Fax  No.:   (402) 661-3669

            
	 	
              Email Address: frahmk@fcsamerica.com

            

    

     

    
      5

      
        

    

    [SIGNATURE PAGE TO CREDIT AGREEMENT AMENDMENT]

     

    IN WITNESS WHEREOF, the parties hereto, by their Authorized Officers, have executed this Agreement as of the date first set forth above.

     

    	 	
            LENDER:

          
	 	 
	 	
            FARM CREDIT SERVICES OF AMERICA, PCA

          
	 	 
	 	
            By:

          	/s/ Curt A. Brown	 

    	 	
            Name:

          	Curt A. Brown
	 	
            Title:

          	Vice President

    

    

    
      	 	
              Notice Address for the Company:

            
	 	 
	 	
              Farm Credit Services of America, PCA

            
	 	
              5015 S. 118th Street

            
	 	
              Omaha, Nebraska 68137

            
	 	
              Attention:   Agribusiness Finance

            
	 	
              Fax  No.:   (402) 661-3669

            
	 	
              Email Address: frahmk@fcsamerica.com

            

    

    

    

    
      6

      
        

    

    [SIGNATURE PAGE TO CREDIT AGREEMENT AMENDMENT]

     

    IN WITNESS WHEREOF, the parties hereto, by their Authorized Officers, have executed this Agreement as of the date first set forth above.

     

    	 	
            CASH MANAGEMENT PROVIDER AND AGENT:

          
	 	 
	 	
            COBANK, ACB

          
	 	 
	 	
            By:

          	/s/ Brook Stromer	 

    	 	
            Name:

            

          	Brook Stromer
	 	
            Title:

            

          	Vice President

    

    

    
      	 	
              Notice Address for CoBank:

            
	 	 
	 	
              6340 S. Fiddlers Green Circle

            
	 	
              Greenwood Village, Colorado 80111

            
	 	
              Attention: Credit Information Services

            
	 	
              Fax No.: (303) 224-6101

            
	 	
              Email Address: CIServices@CoBank.com

            

    

    

    

    
      7

      
        

    

    [GUARANTOR’S CONSENT PAGE TO CREDIT AGREEMENT AMENDMENT]

     

    GUARANTOR’S CONSENT

     

    The undersigned SIRE DISC, INC., an Iowa corporation (the “Guarantor”),

      hereby (a) consents to this Agreement and the transactions contemplated hereby, (b) reaffirms its obligations under that certain Continuing Guarantee dated February 11, 2015 by Guarantor in favor of CoBank, for the benefit of the Lending Parties (the
      “Continuing Guarantee”), including, without limitation, the unconditional guarantee to CoBank, for the benefit of the Lending Parties, of the full and prompt
      payment of the Indebtedness (as defined in the Continuing Guarantee), whether now existing or hereafter arising, and (c) represents and warrants that (i) the Continuing Guarantee continues to constitute the legal, valid and binding obligation of
      Guarantor enforceable against Guarantor in accordance with its terms, (ii) there exists no Event of Default or Default and (iii) there are no, and shall not be any, defenses to or counterclaims or rights of set-off against any of CoBank’s or the
      Lending Parties’ rights under the Continuing Guarantee.

     

    	 	
            SIRE DISC, INC.

          
	 	 
	 	
            By:

          	
            /s/ Michael D. Jerke

          	 

    	 	
            Name:

          	
            Michael D. Jerke

          
	 	
            Title:

          	
            Chairman

          

    

    

    
      8

      
        

    

    EXHIBIT A

     

    Form of Second Amended and Restated Revolving Credit Note

     

    [see attached]Exhibit 10.2

  

  

  

  
    SECOND AMENDED AND RESTATED REVOLVING CREDIT NOTE

    

    

    	
            $10,000,000

          	
            Greenwood Village, Colorado

          
	 	
            October 29, 2021

          

    

    

    FOR VALUE RECEIVED, SOUTHWEST IOWA RENEWABLE ENERGY, LLC, a
      limited liability company organized and existing under the laws of Iowa (the “Company”), hereby promises to pay to the order of FARM CREDIT SERVICES OF AMERICA, PCA (which, together with its endorsees, successors, and assigns, is referred to herein as the “Bank”), at the office of CoBank, ACB (the “Agent”) located at 6340 S. Fiddlers Green Circle,
      Greenwood Village, Colorado 80111 (or at such other place of payment designated by the holder hereof to the Company), the lesser of (i) the principal sum of TEN MILLION DOLLARS ($10,000,000) (the “Revolving Credit Commitment”) or (ii) the aggregate unpaid principal balance of all loans made under the Revolving Credit Commitment by the Bank to or for the benefit of the Company (each loan
      and any one or more portions of any loan being referred to herein as a “Loan”) pursuant to that Credit Agreement dated as of June 24, 2014, Amendment
      No. 1 to Credit Agreement dated as of February 11, 2015, Amendment No. 2 to Credit Agreement dated as of February 11, 2015, Amendment No. 3 to Credit Agreement dated as of January 25, 2016, Amendment No. 4 to Credit Agreement dated as of November 8,
      2019, Amendment No. 5 to Credit Agreement dated as of February 26, 2021, Amendment No. 6 to Credit Agreement dated as of July 30, 2021 and Amendment No. 7 to Credit Agreement dated as of even date herewith, in each case, between the Company, Farm
      Credit Services of America, FLCA, the Bank and the Agent (as amended, restated, modified or supplemented from time to time, collectively the “Agreement”),
      in lawful money of the United States of America in immediately available funds, payable together with interest thereon, as set forth below, without presentment, demand, protest or notice of any kind, all of which are hereby expressly waived by the
      Company, and without set-off, counterclaim or other deduction of any nature at the earlier of February 1, 2022 (the “Revolving Credit Facility Expiration Date”),
      or as otherwise set forth below or in the Agreement.  Capitalized terms not otherwise defined in this Second Amended and Restated Revolving Credit Note (as amended, restated, modified, supplemented, replaced, refinanced or renewed from time to time,
      this “Note”) shall have the respective meanings ascribed to them by the Agreement, including Annex A thereto, and the Rules of Construction set forth
      in such Annex A shall apply to this Note.  This Note amends and restates, but does not constitute payment of the indebtedness evidenced by, the First Amended and Restated Revolving Credit Note, dated as of July 30, 2021, by the Company to the order
      of the Bank.

     

    1.          Principal Payments and Prepayments.  Payments and prepayments of principal shall be due and payable as set forth in the Agreement and this Note.  The entire remaining
        indebtedness evidenced by this Note, if not sooner paid in accordance with the terms of the Agreement or this Note, shall be due and payable on the Revolving Credit Facility Expiration Date.  If at any time, the aggregate principal amount of Loans
        outstanding exceeds the Revolving Credit Commitment at such time, the Company shall immediately notify the Agent and shall immediately prepay the principal amount of the outstanding Loans in an amount sufficient to eliminate such excess.

     

    2.           Purpose of Revolving Credit Facility.  The proceeds of the Revolving Credit Facility shall be used to provide Working Capital for the Company and for any other lawful purpose.

     

    3.          Unused Commitment Fee.  Accruing from the date hereof until the Revolving Credit Facility Expiration Date, the Company agrees to pay to the Agent a nonrefundable commitment fee
        (the “Unused Commitment Fee”) equal to 0.35% per
        annum (computed on the basis of a year of 360 days for the actual number of days elapsed) multiplied by the average daily positive difference between the amount of (i) the Revolving Credit Commitment minus (ii) the aggregate principal amount of all Loans then outstanding.  All Unused Commitment Fees shall accrue to the first day of each month and be payable monthly in arrears on the 20th day of each
        month hereafter and on the Revolving Credit Facility Expiration Date.

     

    
      
        

    

    4.          Interest Payments; Interest Rate.  The Company hereby further promises to pay to the order of the Agent, at the times and on the dates provided in the Agreement, interest on
        the unpaid principal amount of the Loans from the date hereof until the Payment in Full of all of the Loans at the LIBOR Index Rate with a LIBOR Index Spread of 3.40% per annum (the “LIBOR Index Spread”).  All Loans shall be deemed to be LIBOR Index Rate Loans.

     

    5.           Loan Requests.  Subject to the terms and conditions of this Note and the Agreement, the Company may prior to the Revolving Credit Facility Expiration Date request the Bank to
        make Loans by delivering, in accordance with the notice provisions of the Agreement, to the Agent not later than 12:00 noon (Denver time), the same Business Day as the proposed Business Day of borrowing, a duly completed request therefor
        substantially in the form of Exhibit A hereto (or a request made by CoLink or by telephone, but subject to the same deadline and containing substantially the
        same information, and in the case of a telephone request, immediately confirmed in writing substantially in the form of Exhibit A and delivered in accordance
        with the terms hereof) by physical delivery, facsimile, or electronic mail (each such request, whether telephonic or written and regardless how delivered, a “Loan Request”), it being understood that the Agent may rely on the authority of any individual making such a telephonic request without the necessity of receipt of such written confirmation.  Each Loan Request shall be irrevocable
        and shall specify the amount of the proposed Loan.  All notices and requests hereunder shall be given, and all borrowings shall occur, only on Business Days.

     

    6.          Usury.  In no event shall the interest rate(s) applicable to principal outstanding hereunder exceed the maximum rate of interest allowed by applicable Law, as amended from time
        to time; any payment of interest or in the nature of interest in excess of such limitation shall be credited as a payment of principal unless the Company requests the return of such amount.

     

    7.            Miscellaneous.

     

    (a)          This Note is the Revolving Credit
        Note referred to in, and is entitled to the benefits of, the Agreement and the other Loan Documents referred to therein.  Reference is made to the Agreement for a description of the relative rights and obligations of the Company, the Bank and the
        Agent, including rights and obligations of prepayment, collateral securing payment hereof, Events of Default, and rights of acceleration of maturity upon the occurrence of an Event of Default.

     

    (b)          No delay on the part of the
        holder hereof in exercising any of its options, powers, or rights, or partial or single exercise thereof, shall constitute a waiver thereof.  The options, powers, and rights specified herein of the holder hereof are in addition to those otherwise
        created or permitted by Law, the Agreement, and the other Loan Documents.  There are no claims, set-offs, or deductions of any nature as of the date hereof that could be made or asserted by the Company against the Bank and / or the Agent or against
        any amount due or to become due under this Note; all such claims, set-offs, or deductions are hereby waived by the Company.

     

    (c)          Delivery of an executed signature
        page of this Note by telecopy or email (as a .pdf attachment thereto or otherwise) shall be as effective as delivery of a manually executed
        counterpart of this Note, but shall in any event be promptly followed by delivery of the original manually executed signature page (provided, however, that the failure to do so shall in no event adversely affect the rights of the Bank and / or the
        Agent hereunder whatsoever).  THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF COLORADO, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES.

     

    [SIGNATURE PAGE FOLLOWS]

     

    
      
        

    

    IN WITNESS WHEREOF and intending to be legally bound hereby, the Company has executed this Note as of the date hereof by its duly Authorized
      Officer.

     

    	 	
            SOUTHWEST IOWA RENEWABLE ENERGY, LLC

          
	 	 
	 	
            By:

          	
            /s/ Michael D. Jerke

          
	 	
            Name:

          	
            Michael D. Jerke

          
	 	
            Title:

          	
            Chief Executive Officer

          

    

    

    	
            AGREED AND ACCEPTED:

          	 
	 	 
	
            COBANK, ACB

          	 
	 	 
	
            By:

          	
            /s/ Brook Stromer

          	 
	 	
            Name:

          	
            Brook Stromer

          	 
	 	
            Title:

          	
            Vice President

          	 

    

    

    
      [Revolving Credit Note Signature Page]

    

    

    

    
      
        

    

    EXHIBIT A

    

    

    FORM OF REVOLVING CREDIT LOAN REQUEST

    

    

    [_____________], 20[__]

    

    

    To: CoBank, ACB (the “Agent”)

    

    

    From:  Southwest Iowa Renewable Energy, LLC (the “Company”)

    

    

    
      	
              Re:

            	
              Credit Agreement (as amended, restated, modified or supplemented from time to time, the “Credit Agreement”), dated as of June 24, 2014, by and between the Company, Farm Credit Services of America, FLCA and Farm Credit Services of America, PCA, as Lender, and the Agent

            

    

    

    

    Pursuant to Section 2.3(a) of the Credit Agreement, the Company hereby gives notice of its desire to receive a Revolving Credit Loan in accordance with the
      terms set forth below (all capitalized terms used herein and not defined herein shall have the meaning given them in the Credit Agreement):

    

    

    (a) The Revolving Credit Loan requested pursuant to this Revolving Credit Loan Request shall be made on [________],
      20[__].

    

    

    (b) The aggregate principal amount of the Revolving Credit Loan requested hereunder is [_____________] Dollars
      ($[_________]).

    

    

    (c) The Revolving Credit Loan requested hereunder shall bear interest at the LIBOR Index Option.

    

    

    	 	
            SOUTHWEST IOWA RENEWABLE ENERGY, LLC

          
	 	 
	 	
            By:

          	 
	 	
            Name:

          	 
	 	
            Title:

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