Document:

Exhibit
10.1

 

 

CREDIT AGREEMENT

 

dated as of

 

March 23, 2007

 

among

 

AVENTINE RENEWABLE
ENERGY, INC.,

AVENTINE RENEWABLE ENERGY – MT VERNON, LLC,

and

AVENTINE RENEWABLE ENERGY – AURORA WEST, LLC,

as Borrowers,

The Other Loan
Parties Party Hereto,

The Lenders Party
Hereto

JPMORGAN CHASE BANK,
N.A.,

as Administrative Agent,

BANK OF AMERICA,
N.A.,

as Syndication Agent

and

UBS SECURITIES LLC and WELLS FARGO FOOTHILL, LLC,

as Co-Documentation Agents

J.P. MORGAN SECURITIES
INC.,

as Sole Bookrunner and Sole Lead Arranger

 

 

CHASE BUSINESS
CREDIT

TABLE OF CONTENTS

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
   

  	
  Article I

  	
   

  
	
   

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.01

  	
  Defined Terms

  	
  1

  
	
  Section 1.02

  	
  Classification of Loans and Borrowings

  	
  36

  
	
  Section 1.03

  	
  Terms Generally

  	
  36

  
	
  Section 1.04

  	
  Accounting Terms; GAAP

  	
  37

  
	
   

  	
   

  	
   

  
	
   

  	
  Article II

  	
   

  
	
   

  	
  The Credits

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.01

  	
  Commitments

  	
  37

  
	
  Section 2.02

  	
  Loans and Borrowings

  	
  37

  
	
  Section 2.03

  	
  Requests for Borrowings

  	
  38

  
	
  Section 2.04

  	
  Protective Advances

  	
  38

  
	
  Section 2.05

  	
  Swingline Loans and Overadvances

  	
  39

  
	
  Section 2.06

  	
  Letters of Credit

  	
  42

  
	
  Section 2.07

  	
  Funding of Borrowings

  	
  46

  
	
  Section 2.08

  	
  Interest Elections

  	
  46

  
	
  Section 2.09

  	
  Termination and Reduction of Commitments

  	
  47

  
	
  Section 2.10

  	
  Repayment and Amortization of Loans; Evidence
  of Debt

  	
  48

  
	
  Section 2.11

  	
  Prepayment of Loans

  	
  49

  
	
  Section 2.12

  	
  Fees

  	
  51

  
	
  Section 2.13

  	
  Interest

  	
  52

  
	
  Section 2.14

  	
  Alternate Rate of Interest

  	
  53

  
	
  Section 2.15

  	
  Increased Costs

  	
  53

  
	
  Section 2.16

  	
  Break Funding Payments

  	
  54

  
	
  Section 2.17

  	
  Taxes

  	
  55

  
	
  Section 2.18

  	
  Payments Generally; Allocation of Proceeds; Sharing
  of Set-offs

  	
  56

  
	
  Section 2.19

  	
  Mitigation Obligations; Replacement of Lenders

  	
  59

  
	
  Section 2.20

  	
  Returned Payments

  	
  59

  
	
  Section 2.21

  	
  Increase of Commitments

  	
  60

  
	
   

  	
   

  	
   

  
	
   

  	
  Article III

  	
   

  
	
   

  	
  Representations
  and Warranties

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.01

  	
  Organization; Powers

  	
  61

  
	
  Section 3.02

  	
  Authorization; Enforceability

  	
  61

  
	
  Section 3.03

  	
  Governmental Approvals; No Conflicts

  	
  61

  
	
  Section 3.04

  	
  Financial Condition; No Material Adverse Change

  	
  61

  
	
  Section 3.05

  	
  Properties

  	
  62

  
	
  Section 3.06

  	
  Litigation and Environmental Matters

  	
  62

  
	
  Section 3.07

  	
  Compliance with Laws and Agreements

  	
  62

  
	
  Section 3.08

  	
  Investment Company Status

  	
  63

  
	
  Section 3.09

  	
  Taxes

  	
  63

  
	
  Section 3.10

  	
  ERISA

  	
  63

  

 

 i
 

 

	
  Section 3.11

  	
  Disclosure

  	
  63

  
	
  Section 3.12

  	
  Material Agreements

  	
  63

  
	
  Section 3.13

  	
  Solvency

  	
  63

  
	
  Section 3.14

  	
  Insurance

  	
  64

  
	
  Section 3.15

  	
  Capitalization and Subsidiaries

  	
  64

  
	
  Section 3.16

  	
  Security Interest in Collateral

  	
  64

  
	
  Section 3.17

  	
  Employment Matters

  	
  64

  
	
  Section 3.18

  	
  Common Enterprise

  	
  65

  
	
  Section 3.19

  	
  Terminals/Terminal Contracts

  	
  65

  
	
  Section 3.20

  	
  Perfection Certificate; Schedules to other Loan
  Documents

  	
  65

  
	
  Section 3.21

  	
  Motor Fuels, Liquor or Other Sales or Excise Taxes

  	
  65

  
	
   

  	
   

  	
   

  
	
   

  	
  Article IV

  	
   

  
	
   

  	
  Conditions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.01

  	
  Effective Date

  	
  66

  
	
  Section 4.02

  	
  Each Credit Event

  	
  69

  
	
   

  	
   

  	
   

  
	
   

  	
  Article V

  	
   

  
	
   

  	
  Affirmative
  Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.01

  	
  Financial Statements; Borrowing Base and Other
  Information

  	
  70

  
	
  Section 5.02

  	
  Notices of Material Events

  	
  74

  
	
  Section 5.03

  	
  Existence; Conduct of Business

  	
  75

  
	
  Section 5.04

  	
  Payment of Obligations

  	
  75

  
	
  Section 5.05

  	
  Maintenance of Properties

  	
  75

  
	
  Section 5.06

  	
  Books and Records; Inspection Rights

  	
  75

  
	
  Section 5.07

  	
  Compliance with Laws

  	
  76

  
	
  Section 5.08

  	
  Use of Proceeds

  	
  76

  
	
  Section 5.09

  	
  Insurance

  	
  76

  
	
  Section 5.10

  	
  Casualty and Condemnation

  	
  76

  
	
  Section 5.11

  	
  Appraisals

  	
  76

  
	
  Section 5.12

  	
  Depository Banks

  	
  77

  
	
  Section 5.13

  	
  Additional Collateral; Further Assurances

  	
  77

  
	
  Section 5.14

  	
  Field Examinations

  	
  78

  
	
  Section 5.15

  	
  Pledge of Equity of Nebraska Sub

  	
  78

  
	
  Section 5.16

  	
  Risk Management Policy

  	
  78

  
	
  Section 5.17

  	
  End of Fiscal Year and Fiscal Quarters

  	
  79

  
	
   

  	
   

  	
   

  
	
   

  	
  Article VI

  	
   

  
	
   

  	
  Negative
  Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.01

  	
  Indebtedness

  	
  79

  
	
  Section 6.02

  	
  Liens

  	
  80

  
	
  Section 6.03

  	
  Fundamental Changes

  	
  82

  
	
  Section 6.04

  	
  Investments, Loans, Advances, Guarantees and
  Acquisitions

  	
  82

  
	
  Section 6.05

  	
  Asset Sales

  	
  83

  
	
  Section 6.06

  	
  Sale and Leaseback Transactions

  	
  84

  
	
  Section 6.07

  	
  Swap Agreements

  	
  84

  
	
  Section 6.08

  	
  Restricted Payments; Certain Payments of
  Indebtedness

  	
  84

  

 

 ii
 

 

	
  Section 6.09

  	
  Transactions with Affiliates

  	
  85

  
	
  Section 6.10

  	
  Restrictive Agreements

  	
  86

  
	
  Section 6.11

  	
  Amendment of Material Documents

  	
  86

  
	
  Section 6.12

  	
  Acquisition of Equity in Nebraska Sub

  	
  86

  
	
  Section 6.13

  	
  Fixed Charge Coverage Ratio

  	
  87

  
	
   

  	
   

  	
   

  
	
   

  	
  Article VII

  	
   

  
	
   

  	
  Events of
  Default

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Article VIII

  	
   

  
	
   

  	
  The
  Administrative Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Article IX

  	
   

  
	
   

  	
  Miscellaneous

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.01

  	
  Notices

  	
  92

  
	
  Section 9.02

  	
  Waivers; Amendments

  	
  93

  
	
  Section 9.03

  	
  Expenses; Indemnity; Damage Waiver

  	
  96

  
	
  Section 9.04

  	
  Successors and Assigns

  	
  98

  
	
  Section 9.05

  	
  Survival

  	
  101

  
	
  Section 9.06

  	
  Counterparts; Integration; Effectiveness

  	
  101

  
	
  Section 9.07

  	
  Severability

  	
  101

  
	
  Section 9.08

  	
  Right of Setoff

  	
  101

  
	
  Section 9.09

  	
  Governing Law; Jurisdiction; Consent to Service of
  Process

  	
  102

  
	
  Section 9.10

  	
  WAIVER OF JURY TRIAL

  	
  102

  
	
  Section 9.11

  	
  Headings

  	
  103

  
	
  Section 9.12

  	
  Confidentiality

  	
  103

  
	
  Section 9.13

  	
  Several Obligations; Nonreliance; Violation of Law

  	
  104

  
	
  Section 9.14

  	
  USA PATRIOT Act

  	
  104

  
	
  Section 9.15

  	
  Disclosure

  	
  104

  
	
  Section 9.16

  	
  Appointment for Perfection

  	
  104

  
	
  Section 9.17

  	
  Interest Rate Limitation

  	
  105

  
	
   

  	
   

  	
   

  
	
   

  	
  Article X

  	
   

  
	
   

  	
  Loan Guaranty

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.01

  	
  Guaranty

  	
  105

  
	
  Section 10.02

  	
  Guaranty of Payment

  	
  105

  
	
  Section 10.03

  	
  No Discharge or Diminishment of Loan Guaranty

  	
  105

  
	
  Section 10.04

  	
  Defenses Waived

  	
  106

  
	
  Section 10.05

  	
  Rights of Subrogation

  	
  107

  
	
  Section 10.06

  	
  Reinstatement; Stay of Acceleration

  	
  107

  
	
  Section 10.07

  	
  Information

  	
  107

  
	
  Section 10.08

  	
  Termination

  	
  107

  
	
  Section 10.09

  	
  Taxes

  	
  107

  
	
  Section 10.10

  	
  Maximum Liability

  	
  108

  
	
  Section 10.11

  	
  Contribution

  	
  108

  
	
  Section 10.12

  	
  Liability Cumulative

  	
  109

  

 

 iii
 

 

	
  

  	
  Article XI

  	
   

  
	
   

  	
  The Borrower
  Representative

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.01

  	
  Appointment; Nature of Relationship

  	
  109

  
	
  Section 11.02

  	
  Powers

  	
  109

  
	
  Section 11.03

  	
  Employment of Agents

  	
  109

  
	
  Section 11.04

  	
  Notices

  	
  109

  
	
  Section 11.05

  	
  Successor Borrower Representative

  	
  110

  
	
  Section 11.06

  	
  Execution of Loan Documents; Borrowing Base
  Certificate

  	
  110

  
	
  Section 11.07

  	
  Reporting

  	
  110

  

 

 iv
 

DEFINITIONS

	
  ABR

  	
  1

  
	
  Account

  	
  1

  
	
  Account Debtor

  	
  1

  
	
  Acquisition

  	
  1

  
	
  Act

  	
  106

  
	
  Activation Period

  	
  1

  
	
  Adjusted LIBO Rate

  	
  1

  
	
  Administrative Agent

  	
  2

  
	
  Administrative Questionnaire

  	
  2

  
	
  Affiliate

  	
  2

  
	
  Aggregate Credit Exposure

  	
  2

  
	
  Agreement

  	
  1

  
	
  Alternate Base Rate

  	
  2

  
	
  Applicable Percentage

  	
  2

  
	
  Applicable Rate

  	
  2

  
	
  Approved Fund

  	
  3

  
	
  Assignment and Assumption

  	
  3

  
	
  Aurora West

  	
  1, 3

  
	
  Availability

  	
  3

  
	
  Availability Period

  	
  3

  
	
  Available Revolving Commitment

  	
  3

  
	
  Aventine

  	
  1, 3

  
	
  Average Availability

  	
  3

  
	
  Bank Product Amount

  	
  3

  
	
  Banking Services

  	
  4

  
	
  Banking Services Obligations

  	
  4

  
	
  Banking Services Reserves

  	
  4

  
	
  Base Value

  	
  4

  
	
  Board

  	
  4

  
	
  Borrower

  	
  1

  
	
  Borrower Representative

  	
  4

  
	
  Borrowers

  	
  1

  
	
  Borrowing

  	
  4

  
	
  Borrowing Base

  	
  4

  
	
  Borrowing Base Certificate

  	
  5

  
	
  Borrowing Request

  	
  5

  
	
  Business Day

  	
  5

  
	
  Capital Expenditures

  	
  5

  
	
  Capital Lease Obligations

  	
  5

  
	
  Change in Law

  	
  7

  
	
  Charges

  	
  106

  
	
  Chase

  	
  7

  
	
  Class

  	
  7

  
	
  Code

  	
  7

  
	
  Co-Documentation Agents

  	
  7

  

 

 v
 

 

	
  Collateral

  	
  7

  
	
  Collateral Access Agreement

  	
  7

  
	
  Collateral Documents

  	
  7

  
	
  Collection Account

  	
  7

  
	
  Commitment

  	
  7

  
	
  Commitment Increase Notice

  	
  61

  
	
  Commitment Schedule

  	
  8

  
	
  Control

  	
  8

  
	
  Controlled Disbursement Account

  	
  8

  
	
  Credit Exposure

  	
  8

  
	
  Default

  	
  8

  
	
  Departing Lender

  	
  60

  
	
  Deposit Account Control Agreement

  	
  8

  
	
  Dilution Factors

  	
  8

  
	
  Dilution Ratio

  	
  8

  
	
  Dilution Reserve

  	
  9

  
	
  Disposition

  	
  9

  
	
  dollars

  	
  9

  
	
  EBITDA

  	
  9

  
	
  Effective Date

  	
  10

  
	
  Eligible Accounts

  	
  10

  
	
  Eligible Equipment

  	
  12

  
	
  Eligible In-Transit Inventory

  	
  13

  
	
  Eligible Inventory

  	
  13

  
	
  Eligible Real Property

  	
  15

  
	
  Environmental Laws

  	
  16

  
	
  Environmental Liability

  	
  16

  
	
  Equity Interests

  	
  16

  
	
  ERISA

  	
  16

  
	
  ERISA Affiliate

  	
  16

  
	
  ERISA Event

  	
  17

  
	
  Eurodollar

  	
  17

  
	
  Event of Default

  	
  17

  
	
  Exchange Reserve

  	
  17

  
	
  Excluded Taxes

  	
  17

  
	
  Existing Letter of Credit

  	
  18

  
	
  Federal Funds Effective Rate

  	
  18

  
	
  Financial Advisory Agreement

  	
  18

  
	
  Financial Officer

  	
  18

  
	
  Fixed Asset Collateral

  	
  18

  
	
  Fixed Asset Component

  	
  18

  
	
  Fixed Charge Calculation Period

  	
  18

  
	
  Fixed Charge Coverage Ratio

  	
  18

  
	
  Foreign Lender

  	
  19

  
	
  Fuels Tax Reserve

  	
  19

  
	
  Funding Accounts

  	
  20

  

 

 vi
 

 

	
  GAAP

  	
  20

  
	
  Governmental Authority

  	
  20

  
	
  Guarantee

  	
  20

  
	
  Guaranteed Obligations

  	
  20

  
	
  guarantor

  	
  20

  
	
  Hazardous Materials

  	
  20

  
	
  Holdings

  	
  20

  
	
  Indebtedness

  	
  20

  
	
  Indemnified Taxes

  	
  21

  
	
  Indemnitee

  	
  98

  
	
  Information

  	
  105

  
	
  Information Memorandum

  	
  21

  
	
  Interest Election Request

  	
  21

  
	
  Interest Expense

  	
  21

  
	
  Interest Payment Date

  	
  21

  
	
  Interest Period

  	
  22

  
	
  Inventory

  	
  22

  
	
  Inventory Advance Percentage

  	
  22

  
	
  investment company

  	
  64

  
	
  Issuing Bank

  	
  22

  
	
  Joinder Agreement

  	
  22

  
	
  LC Collateral Account

  	
  22

  
	
  LC Disbursement

  	
  22

  
	
  LC Exposure

  	
  22

  
	
  Leased Premises

  	
  22

  
	
  Lenders

  	
  23

  
	
  Letter of Credit

  	
  23

  
	
  Letters of Credit

  	
  43

  
	
  LIBO Rate

  	
  23

  
	
  Lien

  	
  23

  
	
  Loan Documents

  	
  23

  
	
  Loan Guarantor

  	
  24

  
	
  Loan Guaranty

  	
  24

  
	
  Loan Parties

  	
  24

  
	
  Loans

  	
  24

  
	
  Long-Term Debt

  	
  24

  
	
  Marketing Alliance Partner

  	
  24

  
	
  Material Adverse Effect

  	
  24

  
	
  Material Agreement

  	
  24

  
	
  Material Indebtedness

  	
  24

  
	
  Maturity Date

  	
  25

  
	
  Maximum Liability

  	
  25

  
	
  Maximum Rate

  	
  106

  
	
  Moody’s

  	
  25

  
	
  Mortgages

  	
  25

  
	
  MSCP Funds

  	
  25

  

 

 vii
 

 

	
  Mt Vernon

  	
  1

  
	
  Mt Vernon Eligibility Date

  	
  25

  
	
  Mt Vernon Lease

  	
  25

  
	
  Multiemployer Plan

  	
  25

  
	
  Nebraska Credit Agreement

  	
  25

  
	
  Nebraska Note

  	
  25

  
	
  Nebraska Sub

  	
  25

  
	
  Nebraska Sub Operating Agreement

  	
  25

  
	
  Net Income

  	
  25

  
	
  Net Orderly Liquidation Value

  	
  26

  
	
  Net Proceeds

  	
  26

  
	
  New Lender

  	
  62

  
	
  New Lender Agreement

  	
  26

  
	
  Non-Consenting Lender

  	
  26

  
	
  Non-Paying Guarantor

  	
  27

  
	
  Non-Reporting Lender

  	
  27

  
	
  Obligated Party

  	
  27

  
	
  Obligations

  	
  27

  
	
  Off-Balance Sheet Liability

  	
  27

  
	
  Other Taxes

  	
  27

  
	
  Overadvance

  	
  27

  
	
  PACA

  	
  27

  
	
  PACA Reserve

  	
  27

  
	
  PACA Reserve Report

  	
  28

  
	
  parent

  	
  36

  
	
  Parent

  	
  28

  
	
  Participant

  	
  28

  
	
  Paying Guarantor

  	
  28

  
	
  PBGC

  	
  28

  
	
  Perfection Certificate

  	
  28

  
	
  Perfection Certificate Update

  	
  28

  
	
  Permitted Acquisitions

  	
  28

  
	
  Permitted Discretion

  	
  30

  
	
  Permitted Encumbrances

  	
  30

  
	
  Permitted Holder

  	
  30

  
	
  Permitted Investments

  	
  30

  
	
  Person

  	
  31

  
	
  Plan

  	
  31

  
	
  Pledge and Security Agreement

  	
  31

  
	
  Port Commission

  	
  31

  
	
  Power

  	
  31

  
	
  Prepayment Event

  	
  32

  
	
  primary obligor

  	
  20

  
	
  Prime Rate

  	
  32

  
	
  Pro Forma Availability Test

  	
  32

  
	
  Pro Forma Fixed Charge Test

  	
  32

  

 

 viii
 

 

	
  Projections

  	
  33

  
	
  Property

  	
  33

  
	
  Protective Advance

  	
  33

  
	
  Quarterly Fixed Asset Amortization Amount

  	
  33

  
	
  Rate Adjustment Date

  	
  33

  
	
  Real Property

  	
  33

  
	
  Register

  	
  33

  
	
  Regulation D

  	
  33

  
	
  Regulation U

  	
  33

  
	
  Related Parties

  	
  33

  
	
  Rent Reserve

  	
  33

  
	
  Report

  	
  33

  
	
  Required Lenders

  	
  33

  
	
  Requirement of Law

  	
  33

  
	
  Reserves

  	
  34

  
	
  Restricted Payment

  	
  34

  
	
  Revolving Commitment

  	
  34

  
	
  Revolving Exposure

  	
  34

  
	
  Risk Management Policy

  	
  80

  
	
  S&P

  	
  34

  
	
  Secured Obligations

  	
  35

  
	
  Security Agreement

  	
  35

  
	
  Senior Indenture

  	
  35

  
	
  Senior Note Documents

  	
  35

  
	
  Senior Notes

  	
  35

  
	
  Senior Notes Description

  	
  35

  
	
  Settlement

  	
  35

  
	
  Settlement Date

  	
  35

  
	
  Statutory Reserve Rate

  	
  35

  
	
  Storage/Handling Reserves

  	
  36

  
	
  Subordinated Indebtedness

  	
  36

  
	
  subsidiary

  	
  36

  
	
  Subsidiary

  	
  36

  
	
  Supermajority Lenders

  	
  36

  
	
  Swap Agreement

  	
  36

  
	
  Swap Obligations

  	
  37

  
	
  Swingline Lender

  	
  37

  
	
  Swingline Loan

  	
  37

  
	
  Syndication Agent

  	
  37

  
	
  Taxes

  	
  37

  
	
  Transactions

  	
  37

  
	
  Type

  	
  37

  
	
  UCC

  	
  37

  
	
  Unliquidated Obligations

  	
  37

  
	
  Voting Equity

  	
  37

  
	
  Withdrawal Liability

  	
  37

  

 

 ix
 

SCHEDULES:

Commitment Schedule

Schedule 3.05 – Properties/Intellectual Property

Schedule 3.06 – Disclosed Matters

Schedule 3.12 – Material Agreements

Schedule 3.14 – Insurance

Schedule 3.15 – Capitalization and Subsidiaries

Schedule 3.19 – Terminals/Terminal Contracts

Schedule 4.03 - Post Closing Conditions

Schedule 6.01 – Existing Indebtedness

Schedule 6.02 – Existing Liens

Schedule 6.04 – Existing Investments

Schedule 6.10 – Existing
Restrictions

 

EXHIBITS:

Exhibit A – Form of Assignment and Assumption

Exhibit B-1 – Form of Opinion of Davis Polk & Wardwell

Exhibit B-2 – Form of Opinion of Morris, Nichols, Arsht & Tunnell

Exhibit C – Form of Borrowing Base Certificate

Exhibit D – Form of Compliance Certificate

Exhibit E – Joinder Agreement

Exhibit F – Form of New Lender Agreement

Exhibit G – Form of Commitment Increase Agreement

Exhibit H – Form of Perfection Certificate Update

Exhibit I – Form of PACA Reserve Report

 x

CREDIT AGREEMENT dated as of March 23, 2007 (as it may
be amended or modified from time to time, this “Agreement”),
among AVENTINE RENEWABLE ENERGY, INC., a
Delaware corporation (“Aventine”),
AVENTINE RENEWABLE ENERGY – MT VERNON, LLC,
a Delaware limited liability company (“Mt Vernon”),
AVENTINE RENEWABLE ENERGY – AURORA WEST, LLC,
a Delaware limited liability company (“Aurora West”
and collectively with Aventine and Mt Vernon, the “Borrowers”
and each individually a “Borrower”),
the other Loan Parties party hereto, the Lenders party hereto, and JPMORGAN CHASE BANK, N.A., as Administrative Agent.

The parties hereto agree as follows:

ARTICLE I

Definitions

Section 1.01           Defined Terms.  As used in this Agreement, the following
terms have the meanings specified below:

“ABR”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate
determined by reference to the Alternate Base Rate.

“Account”
has the meaning assigned to such term in the Security Agreement.

“Account
Debtor” means any Person obligated on an Account.

“Acquisition”
means any transaction, or any series of related transactions, consummated on or
after the date of this Agreement, by which any Loan Party (a) acquires any
going concern business or all or substantially all of the assets of any Person,
whether through purchase of assets, merger or otherwise or (b) directly or
indirectly acquires (in one transaction or as the most recent transaction in a
series of transactions) at least a majority (in number of votes) of the Equity
Interests in a Person which has ordinary voting power for the election of
directors or other similar management personnel of a Person (other than Equity
Interests having such power only by reason of the happening of a contingency)
or a majority of the outstanding Equity Interests in a Person.

“Activation
Period” means any period commencing on the first date on which
Availability is less than $50,000,000, and continuing until the date that both (a) Availability
exceeds $55,000,000 for ninety (90) consecutive calendar days and (b) no
Default or Event of Default then exists or has existed during such ninety (90) consecutive
calendar day period.

“Adjusted
LIBO Rate” means, with respect to any Eurodollar Borrowing for
any Interest Period, an interest rate per annum (rounded upwards, if necessary,
to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest
Period multiplied by (b) the Statutory Reserve Rate.

 1
 

“Administrative
Agent” means JPMorgan Chase Bank, N.A., in its capacity as
administrative agent for the Lenders hereunder.

“Administrative
Questionnaire” means an Administrative Questionnaire in a form
supplied by the Administrative Agent.

“Affiliate”
means, with respect to a specified Person, another Person that directly, or
indirectly through one or more intermediaries, Controls or is Controlled by or
is under common Control with the Person specified; provided, that,
no Marketing Alliance Partner shall be considered an Affiliate of any of the
Loan Parties solely as a result of a Loan Party’s ownership of voting
securities of such Marketing Alliance Partner unless such ownership constitutes
30% or more of the outstanding Voting Equity of such Marketing Alliance Partner.

“Aggregate
Credit Exposure” means, at any time, the aggregate Credit
Exposure of all the Lenders.

“Alternate
Base Rate” means, for any day, a rate per annum equal to the
greater of (a) the Prime Rate in effect on such day and (b) the
Federal Funds Effective Rate in effect on such day plus 1⁄2
of 1%.  Any change in the Alternate Base
Rate due to a change in the Prime Rate or the Federal Funds Effective Rate
shall be effective from and including the effective date of such change in the
Prime Rate or the Federal Funds Effective Rate, respectively.

“Applicable
Percentage” means, with respect to any Lender, (a) with
respect to Loans, LC Exposure, Swingline Loans or Overadvances, a percentage
equal to a fraction the numerator of which is such Lender’s Revolving
Commitment and the denominator of which is the aggregate Revolving Commitment
of all Lenders (if the Revolving Commitments have terminated or expired, the
Applicable Percentages shall be determined based upon such Lender’s share of
the aggregate Revolving Exposures at that time), and (b)  with
respect to Protective Advances or with respect to the Aggregate Credit
Exposure, a percentage based upon its share of the Aggregate Credit Exposure
and the unused Commitments.

“Applicable
Rate” means, for any day, with respect to any ABR Loan or
Eurodollar Loan, or with respect to the commitment fees payable hereunder, as
the case may be, the applicable rate per annum set forth below under the
caption “ABR Spread”, “Eurodollar Spread” or “Commitment Fee Rate”, as the case
may be, based upon the Borrower’s Average Availability for the three (3) month
period ending on the most recent Rate Adjustment Date, provided that
until the first Rate Adjustment Date, the “Applicable Rate” shall be the
applicable rate per annum set forth below in Category 2: 

	
  Average Availability

  	
   

  	
  ABR Spread

  	
   

  	
  Eurodollar Spread

  	
   

  	
  Commitment Fee Rate

  	
   

  
	
  Category 1 >

  $125,000,000

  	
   

  	
  0.00

  	
  %

  	
  1.25

  	
  %

  	
  .25

  	
  %

  
	
  Category 2

  < $125,000,000 but

  > $75,000,000

  	
   

  	
  0.25

  	
  %

  	
  1.50

  	
  %

  	
  .25

  	
  %

  
	
  Category 3

  < $75,000,000

  	
   

  	
  0.50

  	
  %

  	
  1.75

  	
  %

  	
  .375

  	
  %

  

 

 2
 

Without limitation of any other provision of this
Agreement or any other remedy available to the Administrative Agent or the
Lenders under any of the Loan Documents, to the extent that any Borrowing Base
Certificate delivered by the Borrowers pursuant to Section 5.01(g) is incorrect
in any respect and as a result thereof, Average Availability is overstated for
any period the Administrative Agent may recalculate Average Availability for
such period and, if such recalculation results in a higher Applicable Rate,
then upon written notice thereof to the Borrower Representative, the higher
Applicable Rate shall be applied retroactively from the date of delivery of the
erroneous Borrowing Base Certificate.

“Approved
Fund” has the meaning assigned to such term in Section 9.04.

“Assignment
and Assumption” means an assignment and assumption entered into
by a Lender and an assignee (with the consent of any party whose consent is
required by Section 9.04), and accepted by the Administrative Agent, in
the form of Exhibit A or any other form approved by the Administrative
Agent.

“Aurora
West” has the meaning set forth in the initial paragraph hereof.

“Availability”
means, at any time, an amount equal to (a) the lesser of the aggregate Revolving
Commitment and the Borrowing Base minus (b) Reserves
minus (c) the aggregate Revolving
Exposure of all Lenders.

“Availability
Period” means the period from and including the Effective Date
to but excluding the earlier of the Maturity Date and the date of termination
of the Commitments.

“Available
Revolving Commitment” means, at any time, the aggregate Revolving
Commitment then in effect minus the
Revolving Exposure of all Lenders at such time.

“Aventine”
has the meaning set forth in the initial paragraph hereof.

“Average
Availability” means, for any period the average Availability
determined for such period based on the Availability during such period as
determined by the Administrative Agent.

“Bank
Product Amount” means, with respect to any Banking Service or
Swap Agreement at any time, the applicable Loan Party’s or Subsidiary’s net
payment obligation with respect to such Banking Service or Swap Agreement as of
the end of the preceding calendar month (or other period as provided herein),
as determined utilizing the methodology agreed to with respect to such Banking
Service or Swap Agreement between the applicable Lender and Loan Party and
reported to the Administrative Agent pursuant to the terms hereof.  In the event that no Bank Product Amount is
reported as provided herein for any Banking Service or Swap Agreement for any
period, the Administrative Agent may use the most recently reported Bank
Product Amount for such Banking Service or Swap Agreement, as adjusted in the
Administrative Agent’s reasonable credit judgment.

 3
 

“Banking
Services” means each and any of the following bank services
provided to any Loan Party by any Lender or any of its Affiliates: (a) commercial
credit cards, (b) stored value cards and (c) treasury management
services (including, without limitation, controlled disbursement, automated
clearinghouse transactions, return items, overdrafts and interstate depository
network services).

“Banking
Services Obligations” of the Loan Parties means any and all
obligations of the Loan Parties, whether absolute or contingent and howsoever
and whensoever created, arising, evidenced or acquired (including all renewals,
extensions and modifications thereof and substitutions therefor) in connection
with Banking Services.

“Banking
Services Reserves” means all Reserves which the Administrative
Agent from time to time establishes in its Permitted Discretion for Banking
Services then provided or outstanding.

“Base
Value” means, with respect to certain categories of Eligible
Inventory, the lower of (a) cost (determined on a first in first out basis in
accordance with GAAP), or (b) market value.

“Board”
means the Board of Governors of the Federal Reserve System of the United States
of America.

“Borrower”
or “Borrowers” have the meanings set
forth in the initial paragraph hereof.

“Borrower
Representative” means Holdings, in its capacity as contractual
representative of the Borrowers pursuant to Article XI.

“Borrowing”
means a borrowing pursuant to this Agreement consisting of (a) Loans of the
same Type, made, converted or continued on the same date and, in the case of
Eurodollar Loans, as to which a single Interest Period is in effect, (b)
Swingline Loans, (c) Protective Advances or (d) Overadvances.

“Borrowing
Base” means, at any time, the sum of

(a)           85% of the Borrowers’
Eligible Accounts at such time, plus

(b)           the sum of the
following:

(i)            the lesser of (1) 70% of
the Base Value of the Borrowers’ Eligible Inventory consisting of primary
finished goods and (2) the Inventory Advance Percentage of Borrowers’ Eligible
Inventory consisting of primary finished goods, plus

(ii)           the lesser of (1) 70% of
the Base Value of the Borrowers’ Eligible Inventory consisting of raw materials
and (2) the Inventory Advance Percentage of Borrowers’ Eligible Inventory
consisting of raw materials, plus

 4
 

(iii)          the lesser of (1) 70% of
the Base Value of the Borrowers’ Eligible In-Transit Inventory and (2) the
Inventory Advance Percentage of Borrowers’ Eligible In-Transit Inventory, plus

(c)           the Fixed Asset
Component, provided, that until the Loan Parties have satisfied all the conditions
set forth in Section 4.04 of the Agreement, the Borrowing Base shall not
include the Fixed Asset Component.

The Administrative Agent
may, in its Permitted Discretion, reduce the advance rates set forth above,
adjust Reserves or reduce one or more of the other elements used in computing
the Borrowing Base with any such
changes to be effective three (3) days after delivery of notice thereof to the
Borrower Representative.  The Borrowing Base at any time shall be
determined by reference to the most recent Borrowing Base Certificate delivered
to the Administrative Agent pursuant to Section 5.01(f) of the
Agreement.

“Borrowing
Base Certificate” means a certificate, signed and certified as
accurate and complete by a Financial Officer of the Borrower Representative, in
substantially the form of Exhibit C or another form which is acceptable
to the Administrative Agent in its sole discretion.

“Borrowing
Request” means a request by the Borrower Representative for a Borrowing
in accordance with Section 2.02.

“Business
Day” means any day that is not a Saturday, Sunday or other day
on which commercial banks in New York City are authorized or required by law to
remain closed; provided that, when used in connection with a Eurodollar
Loan, the term “Business Day”
shall also exclude any day on which banks are not open for dealings in dollar
deposits in the London interbank market.

“Capital
Expenditures” means, without duplication, any expenditure or
commitment to expend money for any purchase or other acquisition of any asset
which would be classified as a fixed or capital asset on a consolidated balance
sheet of Holdings and its Subsidiaries prepared in accordance with GAAP.

“Capital
Lease Obligations” of any Person means the obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination
thereof, which obligations are required to be classified and accounted for as
capital leases on a balance sheet of such Person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in
accordance with GAAP.

“Change in Control” means:

(a)           the direct or indirect
sale, transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or a series of related transactions, of all or
substantially all of the properties or assets of Holdings and its Subsidiaries,
taken as a whole, to any “person” (within the meaning of Section 13(d) of
the Securities Exchange Act of 1934);

 5
 

(b)           the adoption of a plan
relating to the liquidation or dissolution of Holdings;

(c)           a “person” or “group”
(within the same meaning of Section 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934), other than Permitted Holders, becomes the ultimate “beneficial
owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934)
of more than 50% of the total voting power of the Voting Equity of Holdings on
a fully diluted basis;

(d)           individuals who on the
Effective Date constituted the board of directors of Holdings (together with
any new directors whose election by the board of directors or whose nomination
by the board of directors for election by Holdings’ stockholders was approved
by a vote of at least two-thirds of the members of the board of directors then
in office who either were members of the board of directors on the Effective
Date or whose election to nomination for election was previously so approved)
cease for any reason to constitute a majority of the members of the board of
directors then in office;

(e)           Holdings consolidates
with, or merges with or into, any Person, or any Person consolidates with, or
merges with or into, Holdings, in any such event pursuant to a transaction in
which any of the outstanding Voting Equity of Holdings or such other Person is
converted into or exchanged for cash, securities or other property, other than
any such transaction where the Voting Equity of Holdings outstanding
immediately prior to such transaction is converted into or exchanged for (or
continues as) Voting Equity of the surviving or transferee Person constituting
a majority of the outstanding shares of Voting Equity of such surviving or
transferee Person (immediately after giving effect to such issuance);

(f)            Holdings ceases to
own, free and clear of all Liens or other encumbrances, at least 100% of the
outstanding Voting Equity of Parent on a fully diluted basis;

(g)           Parent ceases to own,
free and clear of all Liens or other encumbrances, at least 100% of the
outstanding Voting Equity of each Borrower on a fully diluted basis; or

(h)           Parent ceases to own,
free and clear of all Liens or other encumbrances, at least 78.42% of the
outstanding Voting Equity of Nebraska Sub on a fully diluted basis (subject to
dilution that may result in a reduction to Parent’s interest in the Equity
Interests of Nebraska Sub to not less than 75% as a result of the issuance of
Equity Interests to management of Nebraska Sub pursuant to a properly
authorized management equity plan).

“Change in
Law” means (a) the adoption of any law, rule or regulation after
the date of this Agreement, (b) any change in any law, rule or regulation or in
the interpretation or application thereof by any Governmental Authority after
the date of this Agreement or (c) compliance by any Lender or the Issuing Bank
(or, for purposes of Section 2.15(b), by any lending office of such
Lender or by such Lender’s or the Issuing Bank’s holding company, if any) with
any request, guideline or directive (whether or not having the force of law) of
any Governmental Authority made or issued after the date of this Agreement.

“Chase”
means JPMorgan Chase Bank, N.A., a national banking association, in its
individual capacity, and its successors.

 6
 

“Class”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Loans, Swingline Loans or
Protective Advances or Overadvances.

“Code”
means the Internal Revenue Code of 1986, as amended from time to time.

“Co-Documentation
Agents” means UBS Securities LLC and Wells Fargo Foothill, LLC
in their capacity as co-documentation agents for the Lenders hereunder and
their successors and assigns in such capacity.

“Collateral”
means any and all property owned, leased or operated by a Person covered by the
Collateral Documents and any and all other property of any Loan Party, now
existing or hereafter acquired, that may at any time be or become subject to a
security interest or Lien in favor of the Administrative Agent, on behalf of
itself and the Lenders, to secure the Secured Obligations.

“Collateral
Access Agreement” has the meaning assigned to such term in the
Security Agreement.

“Collateral
Documents” means, collectively, the Security Agreement, the
Mortgages and any other documents granting a Lien upon the Collateral as
security for payment of the Secured Obligations.

“Collection
Account” has the meaning assigned to such term in the Security
Agreement.

“Commitment”
means, with respect to each Lender, the sum of such Lender’s Revolving Commitment,
together with the commitment of such Lender to acquire participations in
Protective Advances hereunder as such Commitment may be (a) reduced from
time to time pursuant to Section 2.09, increased from time to time pursuant to Section
2.21, or (b) reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to Section 9.04.  The initial amount of each Lender’s
Commitment is set forth on the Commitment Schedule, in the New Lender
Agreement, in the Assignment and Assumption or in any joinder agreement related
to any Commitment pursuant to which such Lender shall have assumed its
Commitment, as applicable.

“Commitment
Increase Agreement” means a Commitment Increase Agreement
entered into by a Lender in accordance with Section 2.21 and accepted by the
Administrative Agent in the form of Exhibit G, or any other form
approved by both the Administrative Agent and the Borrowers.

“Commitment
Increase Notice” has the meaning assigned to such term in Section
2.21 hereof.

“Commitment
Schedule” means the Schedule attached hereto identified as such.

“Control”
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through the
ability to exercise

 7
 

voting power, by contract or otherwise.  “Controlling” and “Controlled”
have meanings correlative thereto.

“Controlled
Disbursement Account” means the following account: Aventine
account #XXXXXXXXX, and any replacement or additional accounts of the Borrowers
maintained with the Administrative Agent as a zero balance, cash management
account pursuant to and under any agreement between a Borrower and the
Administrative Agent, as modified and amended from time to time, and through
which all disbursements of a Borrower, any Loan Party and any designated
Subsidiary of a Borrower are made and settled on a daily basis with no
uninvested balance remaining overnight.

“Credit
Exposure” means, as to any Lender at any time, the sum of (a) such
Lender’s Revolving Exposure at such time, plus (b) an
amount equal to its Applicable Percentage, if any, of the aggregate principal
amount of Protective Advances outstanding at such time.

“Default”
means any event or condition which constitutes an Event of Default or which
upon notice, lapse of time or both would, unless cured or waived, become an
Event of Default.

“Deposit
Account Control Agreement” has the meaning assigned to such term
in the Security Agreement.

“Dilution
Factors” shall mean, without duplication, with respect to any period,
the aggregate amount of all deductions, credit memos, returns, adjustments,
allowances, bad debt write-offs and other non-cash credits which are recorded
to reduce accounts receivable in a manner consistent with current and
historical accounting practices of the Borrowers.

“Dilution
Ratio” shall mean, at any date, the amount (expressed as a
percentage) equal to (a) the aggregate amount of the applicable Dilution
Factors for the twelve (12) most recently ended fiscal months divided by (b) total
gross sales for the twelve (12) most recently ended fiscal months.

“Dilution
Reserve” shall mean, at any date, the applicable Dilution Ratio
multiplied by the Eligible Accounts on such date.

“Disclosed
Matters” means the actions, suits and proceedings and the environmental
matters disclosed in Schedule 3.06.

“Disposition”
shall mean the sale, transfer, lease or other disposition (including pursuant
to a merger resulting in the subject Property no longer being owned by a Loan
Party) of any Property.

“dollars”
or “$” refers to lawful money of the
United States of America.

“EBITDA”
shall mean, as to Holdings and its consolidated Subsidiaries on a consolidated
basis and for any period, the amount equal to:

(a)           net income determined
in accordance with GAAP, plus

 8
 

(b)           to the extent deducted
from revenues in the calculation of net income (without duplication),

(i)            Interest Expense,

(ii)           depreciation,
amortization, other non-cash expenses (including (A) reserves for restructuring
charges, until such time as such restructuring charges are incurred and become
payable in cash (at which time they will be deducted in the calculation of
EBITDA), (B) non-cash asset impairment charges pursuant to FASB No. 144, (C) unrealized
losses on derivative instruments as defined in FASB No. 133, but excluding
minority interest expense, and (D) non-cash stock compensation expense),

(iii)          income and franchise tax
expense,

(iv)          extraordinary losses for
such period,

(v)           all losses on the
disposition of assets (other than the sale of inventory in the ordinary course
of business),

(vi)          payments in respect of
Off-Balance Sheet Liabilities, minus

(c)           to the extent included
in revenues in the calculation of consolidated net income (without
duplication),

(i)            extraordinary gains
for such period,

(ii)           all gains on the
disposition of assets (other than the sale of Inventory in the ordinary course
of business), and

(iii)          unrealized gains on
derivative instruments as defined in FASB No. 133.

“Effective
Date” means the date on which the conditions specified in Section
4.01 are satisfied (or waived in accordance with Section 9.02).

“Eligible
Accounts” means, at any time, the Accounts of a Borrower which
the Administrative Agent determines in its Permitted Discretion are eligible as
the basis for the extension of Loans, Swingline Loans and the issuance of
Letters of Credit hereunder.  Without
limiting the Administrative Agent’s discretion provided herein, Eligible
Accounts shall not include any Account:

(a)           which is not subject to
a first priority perfected security interest in favor of the Administrative
Agent;

(b)           which is subject to any
Lien other than (i) a Lien in favor of the Administrative Agent, (ii) a
Permitted Encumbrance which does not have priority over the Lien in favor of
the Administrative Agent and (iii) rights of vendors arising under PACA
but only to the extent no past due amounts are owed to such vendors;

 9
 

(c)           with respect to which (i)
the scheduled due date is more than 45 days after the original invoice date, (ii)
is unpaid more than 90 days after the date of the original invoice therefor or
more than 60 days after the original due date, or (iii) which has been written
off the books of the Borrower or otherwise designated as uncollectible;

(d)           which is owing by an
Account Debtor for which more than 50% of the Accounts owing from such Account
Debtor and its Affiliates are ineligible hereunder;

(e)           which is owing by an
Account Debtor whose securities are rated BBB or better by S&P or Baa3 or
better by Moody’s to the extent the aggregate amount of Accounts owing from
such Account Debtor and its Affiliates to all Borrowers exceeds 35% of the
aggregate amount of Eligible Accounts of all Borrowers, or which are owing by
any other Account Debtor to the extent the aggregate amount of Accounts owing
from such Account Debtor and its Affiliates to all Borrowers exceeds 20% of the
aggregate amount of Eligible Accounts of all Borrowers;

(f)            with respect to which
any covenant, representation, or warranty contained in this Agreement or in the
Security Agreement has been breached or is not true;

(g)           which (i) does not
arise from the sale of goods or performance of services in the ordinary course
of business, (ii) is not evidenced by an invoice or other documentation
satisfactory to the Administrative Agent which has been sent to the Account
Debtor, (iii) represents a progress billing, (iv) is contingent upon the
Borrower’s completion of any further performance, (v) represents a sale on a
bill-and-hold, guaranteed sale, sale-and-return, sale on approval, consignment,
cash-on-delivery or any other repurchase or return basis or (vi) relates to
payments of interest;

(h)           for which the goods
giving rise to such Account have not been shipped to the Account Debtor or for
which the services giving rise to such Account have not been performed by such
Borrower or if such Account was invoiced more than once;

(i)            with respect to which
any check or other instrument of payment has been returned uncollected for any
reason;

(j)            which is owed by an
Account Debtor which has (i) applied for, suffered, or consented to the
appointment of any receiver, custodian, trustee, or liquidator of its assets, (ii)
has had possession of all or a material part of its property taken by any
receiver, custodian, trustee or liquidator, (iii) filed, or had filed against
it, any request or petition for liquidation, reorganization, arrangement,
adjustment of debts, adjudication as bankrupt, winding-up, or voluntary or
involuntary case under any state or federal bankruptcy laws (other than
post-petition accounts payable of an Account Debtor that is a
debtor-in-possession under the Bankruptcy Code and reasonably acceptable to the
Administrative Agent), (iv) has admitted in writing its inability, or is
generally unable to, pay its debts as they become due, (v) become insolvent, or
(vi) ceased operation of its business;

(k)           which is owed by any
Account Debtor which has sold all or a substantially all of its assets;

 10
 

(l)            which is owed by an
Account Debtor which (i) does not maintain its chief executive office in the U.S.
or Canada or (ii) is not organized under applicable law of the U.S., any state
of the U.S., Canada, or any province of Canada unless, in either case, such
Account is backed by a Letter of Credit acceptable to the Administrative Agent
which is in the possession of, has been assigned to and is directly drawable by
the Administrative Agent;

(m)          which is owed in any
currency other than U.S. dollars;

(n)           which is owed by (i) the
government (or any department, agency, public corporation, or instrumentality
thereof) of any country other than the U.S. unless such Account is backed by a
Letter of Credit acceptable to the Administrative Agent which is in the
possession of the Administrative Agent, or (ii) the government of the U.S., or
any department, agency, public corporation, or instrumentality thereof, unless
the Federal Assignment of Claims Act of 1940, as amended (31 U.S.C. § 3727 et
seq. and 41 U.S.C. § 15 et  seq.), and any other steps
necessary to perfect the Lien of the Administrative Agent in such Account have
been complied with to the Administrative Agent’s satisfaction;

(o)           which is owed by any
Affiliate, employee, officer, director, agent or stockholder of any Loan Party;

(p)           which is owed by an
Account Debtor or any Affiliate of such Account Debtor to which any Loan Party
is indebted, but only to the extent of such indebtedness;

(q)           which is subject to any
counterclaim, deduction, defense, setoff or dispute but only to the extent of
any such counterclaim, deduction, defense, setoff or dispute;

(r)            which is evidenced by
any promissory note, chattel paper, or instrument;

(s)           which is owed by an
Account Debtor located in any jurisdiction which requires filing of a “Notice
of Business Activities Report” or other similar report in order to permit such
Borrower to seek judicial enforcement in such jurisdiction of payment of such
Account, unless such Borrower has filed such report or qualified to do business
in such jurisdiction;

(t)            with respect to which
such Borrower has made any agreement with the Account Debtor for any reduction
thereof, other than discounts and adjustments given in the ordinary course of
business, or any Account which was partially paid and such Borrower created a
new receivable for the unpaid portion of such Account;

(u)           which does not comply
in all material respects with the requirements of all applicable laws and
regulations, whether Federal, state or local, including without limitation the
Federal Consumer Credit Protection Act, the Federal Truth in Lending Act and
Regulation Z of the Board;

(v)           which is for goods that
have been sold under a purchase order or pursuant to the terms of a contract or
other agreement or understanding (written or oral) that indicates or purports
that any Person other than such Borrower has or has had an ownership interest
in such goods, or which indicates any party other than such Borrower as payee
or remittance party;

 11
 

(w)          which was created on
cash on delivery terms;

(x)            which the
Administrative Agent determines may not be paid by reason of the Account Debtor’s
inability to pay or which the Administrative Agent otherwise determines in its
Permitted Discretion is unacceptable for any reason whatsoever;

(y)           which was acquired as
part of a Permitted Acquisition unless all requirements of clause (e) of the
definition of Permitted Acquisition have been satisfied; or

(z)            of Mt Vernon until
such time as the Mt Vernon Eligibility Date shall have occurred.

In the event that an Account which was previously an
Eligible Account ceases to be an Eligible Account hereunder, such Borrower or
the Borrower Representative shall notify the Administrative Agent thereof on
and at the time of submission to the Administrative Agent of the next Borrowing
Base Certificate.  In determining the
amount of an Eligible Account, the face amount of an Account may, in the
Administrative Agent’s Permitted Discretion, be reduced by, without
duplication, to the extent not reflected in such face amount, (i) the amount of
all accrued and actual discounts, claims, credits or credits pending,
promotional program allowances, price adjustments, finance charges or other
allowances (including any amount that such Borrower may be obligated to rebate
to an Account Debtor pursuant to the terms of any agreement or understanding
(written or oral)) and (ii) the aggregate amount of all cash received in
respect of such Account but not yet applied by such Borrower to reduce the
amount of such Account.

“Eligible
Equipment” means the equipment owned by a Borrower on the
Effective Date and meeting each of the following requirements:

(a)           such Borrower has good
title to such equipment;

(b)           such Borrower has the
right to subject such equipment to a Lien in favor of the Administrative Agent;
such equipment is subject to a first priority perfected Lien in favor of the
Administrative Agent and is free and clear of all other Liens of any nature
whatsoever (except for Permitted Encumbrances which do not have priority over
the Lien in favor of the Administrative Agent);

(c)           the full purchase price
for such equipment has been paid by such Borrower;

(d)           such equipment is
located on premises (i) owned by such Borrower, which premises are subject
to a first priority perfected Lien in favor of the Administrative Agent, or (ii) leased
by such Borrower where (x) the lessor has delivered to the Administrative Agent
a Collateral Access Agreement or (y) a Rent Reserve has been established by the
Administrative Agent in its Permitted Discretion;

(e)           such equipment is in
good working order and condition (ordinary wear and tear excepted) and is used
or held for use by such Borrower in the ordinary course of business of the
Borrower;

 12
 

(f)            such equipment is not
subject to any agreement which restricts the ability of such Borrower to use,
sell, transport or dispose of such equipment or which restricts the
Administrative Agent’s ability to take possession of, sell or otherwise dispose
of such equipment; and

(g)           such equipment does not
constitute “fixtures” under the applicable laws of the jurisdiction in which
such equipment is located.

“Eligible
In-Transit Inventory” means, at any time, Inventory of a
Borrower consisting of finished goods (a) which would be “Eligible Inventory”
but for clause (g) of the definition of Eligible Inventory, (b) which is
in the possession of a common carrier pending delivery to (i) a customer of a
Borrower, (ii) a warehouse or terminal to be stored for the account of a
Borrower, or (iii) a Borrower at Real Property owned or leased by a Borrower
and described in Schedule 3.05 hereto, (c) which is insured against risk
of loss pursuant to an insurance policy in form and substance and issued by an
insurance company acceptable to the Administrative Agent, with respect to which
the Administrative Agent has been named loss payee and which otherwise
satisfies the requirements of Section 5.09 hereof, (d) the common carrier
of which is not an Affiliate of the applicable vendor or supplier, and (e) which
is not evidenced by a negotiable document (as defined in the UCC).

“Eligible
Inventory” means, at any time, the Inventory of a Borrower consisting
of finished goods or raw materials which the Administrative Agent determines in
its Permitted Discretion is eligible as the basis for the extension of Loans,
Swingline Loans and the issuance of Letters of Credit hereunder.  Without limiting the Administrative Agent’s
discretion provided herein, Eligible Inventory shall not include any Inventory:

(a)           which is not subject to
a first priority perfected Lien in favor of the Administrative Agent;

(b)           which is subject to any
Lien other than (i) a Lien in favor of the Administrative Agent and (ii) a
Permitted Encumbrance which does not have priority over the Lien in favor of
the Administrative Agent;

(c)           which is, in the
Administrative Agent’s opinion, slow moving, obsolete, unmerchantable,
defective, used, unfit for use or sale, not salable at prices approximating at
least the cost of such Inventory in the ordinary course of business or
unacceptable due to age, type, category and/or quantity;

(d)           with respect to which
any covenant, representation, or warranty contained in this Agreement or the
Security Agreement has been breached or is not true and which does not conform
to all standards imposed by any Governmental Authority;

(e)           in which any Person
other than such Borrower shall (i) have any direct or indirect ownership,
interest or title to such Inventory or (ii) be indicated on any purchase
order or invoice with respect to such Inventory as having or purporting to have
an interest therein;

 13
 

(f)            which constitutes
work-in-process, spare or replacement parts, subassemblies, packaging and
shipping material, manufacturing supplies, samples, prototypes, displays or
display items, bill-and-hold goods, goods that are returned or marked for
return, repossessed goods, defective or damaged goods, goods held on consignment,
or goods which are not of a type held for sale in the ordinary course of
business (ethanol held for resale and denaturant are not excluded pursuant to
this clause (f));

(g)           which is not located in
the U.S. or is in transit with a common carrier from vendors and suppliers;

(h)           which is located in any
location leased by such Borrower unless (i) the lessor has delivered to the
Administrative Agent a Collateral Access Agreement or (ii) a Rent Reserve has
been established by the Administrative Agent in its Permitted Discretion;

(i)            which is located in
any third party warehouse or is in the possession of a bailee (other than a
third party processor) and is not evidenced by a Document, unless (i) such
warehouseman or bailee has delivered to the Administrative Agent a Collateral
Access Agreement and such other documentation as the Administrative Agent may
require or (ii) an appropriate Rent Reserve has been established by the
Administrative Agent in its Permitted Discretion;

(j)            which is being
processed offsite at a third party location or outside processor, or is
in-transit to or from said third party location or outside processor;

(k)           which is a discontinued
product or component thereof;

(l)            which is the subject
of a consignment by such Borrower as consignor;

(m)          which contains or bears
any intellectual property rights licensed to such Borrower unless the
Administrative Agent is satisfied that it may sell or otherwise dispose of such
Inventory without (i) infringing the rights of such licensor, (ii) violating
any contract with such licensor, or (iii) incurring any liability with
respect to payment of royalties other than royalties incurred pursuant to sale
of such Inventory under the current licensing agreement;

(n)           which is not reflected
in a current perpetual inventory report of such Borrower;

(o)           for which reclamation
rights have been asserted by the seller;

(p)           which the
Administrative Agent otherwise determines is unacceptable in its Permitted
Discretion for any reason whatsoever;

(q)           which was acquired as
part of a Permitted Acquisition unless all requirements of clause (e) of the
definition of Permitted Acquisition have been satisfied; or

(r)            of Mt Vernon until
such time as the Mt Vernon Eligibility Date shall have occurred; provided that if
the Port Commission retains a Lien on any Inventory of any Loan Party which is
located on the Leased Premises after the Mt Vernon Eligibility Date, Eligible
Inventory will not include any Inventory of the Loan Parties located on the
Leased Premises.

 14
 

In the event that Inventory which was previously
Eligible Inventory ceases to be Eligible Inventory hereunder, such Borrower or
the Borrower Representative shall notify the Administrative Agent thereof on
and at the time of submission to the Administrative Agent of the next Borrowing
Base Certificate.

“Eligible Real Property” means
the real property listed on Schedule 3.05 owned by a Borrower on the
Effective Date and:

(a)           that
is acceptable in the sole discretion of the Administrative Agent for inclusion
in the Borrowing Base;

(b)           in
respect of which an appraisal report has been delivered to the Administrative
Agent in form, scope and substance reasonably satisfactory to the
Administrative Agent;

(c)           in
respect of which the Administrative Agent is satisfied that all actions necessary
or desirable in order to create perfected first priority Lien on such real
property have been taken, including, the filing and recording of Mortgages;

(d)           in
respect of which an environmental assessment report has been completed and
delivered to the Administrative Agent in form and substance satisfactory to the
Lenders;

(e)           which
is adequately protected by fully-paid valid title insurance with endorsements
and in amounts acceptable to the Administrative Agent, insuring that the
Administrative Agent, for the benefit of the Lenders, shall have a perfected
first priority Lien on such real property, evidence of which shall have been
provided in form and substance satisfactory to the Administrative Agent; and

(f)   if required by the Administrative
Agent: (i) an ALTA survey has been delivered for which all necessary fees have
been paid and which is dated no more than 30 days prior to the date on which
the applicable Mortgage is recorded, certified to Administrative Agent and the
issuer of the title insurance policy in a manner satisfactory to the
Administrative Agent by a land surveyor duly registered and licensed in the
state in which such Eligible Real Property is located and acceptable to the
Administrative Agent, and shows all buildings and other improvements, any
offsite improvements, the location of any easements, parking spaces, rights of
way, building setback lines and other dimensional regulations and the absence
of encroachments, either by such improvements or on to such property, and other
defects, other than encroachments and other defects acceptable to the
Administrative Agent; (ii) in respect of which local counsel for the Agreement
in states in which the Eligible Real Property is located have delivered a
letter of opinion with respect to the enforceability and perfection of the
Mortgages and any related fixture filings in form and substance satisfactory to
the Administrative Agent; and (iii) in respect of which such Borrower shall
have used its  reasonable best efforts to
obtain estoppel certificates executed by all tenants of such Eligible Real
Property and such other consents, agreements and confirmations of lessors and
third parties have been delivered as the Administrative Agent may deem
necessary or desirable, together with evidence that all other actions that the
Administrative Agent may deem necessary or desirable in order to create
perfected first priority Liens on the property described in the Mortgages have
been taken.

 15
 

“Environmental
Laws” means all laws, rules, regulations, codes, ordinances,
orders, decrees, judgments, injunctions, notices or binding agreements issued,
promulgated or entered into by any Governmental Authority, relating in any way
to the environment, preservation or reclamation of natural resources, the
management, release or threatened release of any pollutant, contaminant or any
toxic or otherwise hazardous material or to the effect of the environment or
human health and safety.

“Environmental
Liability” means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation,
fines, penalties or indemnities), of any Borrower or any Subsidiary directly or
indirectly resulting from or based upon (a) violation of any Environmental
Law, (b) the generation, use, handling, transportation, storage, treatment
or disposal of any Hazardous Materials, (c) exposure to any Hazardous
Materials, (d) the release or threatened release of any Hazardous
Materials into the environment or (e) any contract, agreement or other
consensual arrangement pursuant to which environmental liability is assumed or
imposed with respect to any of the foregoing.

“Equity
Interests” means shares of capital stock, partnership interests,
membership interests in a limited liability company, beneficial interests in a
trust or other equity ownership interests in a Person, and any warrants,
options or other rights entitling the holder thereof to purchase or acquire any
such equity interest.

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time
to time.

“ERISA
Affiliate” means any trade or business (whether or not
incorporated) that, together with a Borrower, is treated as a single employer
under Section 414(b) or (c) of the Code or, solely for purposes of Section
302 of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.

“ERISA
Event” means (a) any “reportable event”, as defined in
Section 4043 of ERISA or the regulations issued thereunder with respect to
a Plan (other than an event for which the 30-day notice period is waived); (b) the
existence with respect to any Plan of an “accumulated funding deficiency” (as
defined in Section 412 of the Code or Section 302 of ERISA), whether
or not waived; (c) the filing pursuant to Section 412(d) of the Code
or Section 303(d) of ERISA of an application for a waiver of the minimum
funding standard with respect to any Plan; (d) the incurrence by any
Borrower or any of its ERISA Affiliates of any liability under Title IV of
ERISA with respect to the termination of any Plan; (e) the receipt by any
Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any
notice relating to an intention to terminate any Plan or Plans or to appoint a
trustee to administer any Plan; (f) the incurrence by any Borrower or any
of its ERISA Affiliates of any liability with respect to the withdrawal or
partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt
by any Borrower or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from any Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.

 16
 

“Eurodollar”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate
determined by reference to the Adjusted LIBO Rate.

“Event of
Default” has the meaning assigned to such term in Article VII.

“Exchange Reserve” shall mean a
Reserve which, on any date, shall be the value (determined at the lower of
weighted average cost or market value as determined in accordance with GAAP
consistently applied) of inventory any Borrower is obligated to deliver on such
date to or on account of any Person in exchange for inventory which has been
delivered to or for the account of such Borrower by such Person on or prior to
such date.

“Excluded
Taxes” means, with respect to the Administrative Agent, any
Lender, the Issuing Bank or any other recipient of any payment to be made by or
on account of any obligation of any Borrower hereunder, (a) income or
franchise taxes imposed on (or measured by) its net income by the United States
of America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located, (b) any branch
profits taxes imposed by the United States of America or any similar tax
imposed by any other jurisdiction in which any Borrower is located and (c) in
the case of a Foreign Lender (other than an assignee pursuant to a request by a
Borrower under Section 2.19(b)), any withholding tax that is imposed on
amounts payable to such Foreign Lender at the time such Foreign Lender becomes
a party to this Agreement (or designates a new lending office) or is
attributable to such Foreign Lender’s failure to comply with Section 2.17(e),
except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, at the time of designation of a new lending office (or assignment),
to receive additional amounts from the Borrowers with respect to such
withholding tax pursuant to Section 2.17(a).

“Existing
Letter of Credit” means the letter of credit #T-238483 issued
for the account of Aventine on July 19, 2003 in the amount of $1,225,000 for
the benefit of Zurich American Insurance Co., Schaumburg, IL.

 “Federal Funds Effective
Rate” means, for any day, the weighted average (rounded upwards,
if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers, 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 (rounded upwards, if necessary, to the next
1/100 of 1%) of the quotations for such day for such transactions received by
the Administrative Agent from three Federal funds brokers of recognized
standing selected by it.

“Financial
Advisory Agreement” means any financial advisory agreement with
Metalmark Capital LLC, MSCP Funds or any Affiliate of any of the foregoing.

 “Financial Officer”
means the chief financial officer, principal accounting officer, treasurer,
chief accounting and compliance officer, director of finance or controller of a
Borrower.

 17
 

“Fixed
Asset Collateral” means Collateral constituting Eligible Real
Property, together with any fixtures thereon, and Eligible Equipment.

“Fixed
Asset Component” means $50,000,000; provided that the Fixed
Asset Component shall reduce by (a) the Quarterly Fixed Asset Amortization
Amount on the last day of each fiscal quarter commencing with December 31, 2007
and continuing on the last day of each quarter thereafter throughout the term
of this Agreement and (b) an amount determined by the Administrative Agent in
its Permitted Discretion with respect to any Fixed Asset Collateral which is
the subject of a casualty event (including, without limitation, damage,
destruction or condemnation) or a Disposition or otherwise no longer satisfies
the criteria applicable to Eligible Equipment or Eligible Real Property.

“Fixed
Charge Coverage Period” means (a) the period of one (1) fiscal
quarter ending June 30, 2007, (b) the period of two (2) fiscal quarters
ending September 30, 2007, (c) the period of three (3) fiscal quarters
ending December 31, 2007, and (d) thereafter, the period of four (4) fiscal
quarters.

“Fixed Charge Coverage Ratio” shall mean
for Holdings and its consolidated Subsidiaries on a consolidated basis, for any
Fixed Charge Calculation Period, the ratio of:

(a)           EBITDA for such period,
minus

(i)            Non-Financed Capital
Expenditures made during such period, minus

(ii)           cash Taxes paid or due
for such period; to

(b)           the sum of:

(i)            scheduled principal
payments on Indebtedness during such period including scheduled reductions in
the Fixed Asset Component (whether or not resulting in a mandatory prepayment
hereunder), plus

(ii)           cash Interest Expense
for such period, plus

(iii)          to the extent not
already deducted in the calculation of EBITDA and without duplication, the
amount of Restricted Payments for such period pursuant to Section 6.08(a)(iii)
and (iv) and management, advisory, monitoring, servicing and other fees and
payments described in Section 6.09(i) for such period, plus

(iv)          to the extent not
included in (i) or (ii) above, payments in respect of Off-Balance Sheet
Liabilities, plus

(v)           solely for purposes of
calculating the Pro Forma Fixed Charge Test with respect to any particular
investment, loan or advance, the investments, loans and advances in connection
therewith by any Loan Party or any Subsidiary in or to any Person which is not a
Loan Party and which does not become a Loan Party simultaneously with such
investment, loan or advance.

 18
 

Notwithstanding the above, for the purpose of
calculating the Fixed Charge Coverage Ratio,  until Parent and the Borrowers either (A)
obtain the consent of the requisite holders of Equity in Nebraska Sub pursuant
to Section 5.15 and comply with all other requirements of Section
5.15 with respect thereto, or (B) hold 80% of the Equity Interests of
Nebraska Sub and comply with all requirements of Section 5.13 with
respect thereto, the results of operations of, and other elements of the
definition of Fixed Charge Coverage Ratio with respect to, Nebraska Sub shall
be excluded from the calculation of the Fixed Charge Coverage Ratio except that
cash dividends actually paid by Nebraska Sub to Parent shall be included in the
calculation of consolidated EBITDA.

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

“Fuels Tax Reserve” shall mean a
Reserve which shall be established in respect of the Borrowers’ obligations to
collect, remit and/or pay motor fuels, liquor or other sales or excise taxes in
respect of ethanol or other inventory sold by the Borrowers.  Such Reserve shall be determined and reported
in the Borrowing Base Certificate and shall equal the highest actual liability
at any point during the preceding month in respect of motor fuels, liquor or
other sales or excise taxes to the extent such liability is (or if remains
unpaid will become) secured by a Lien or is otherwise subject to a trust
(statutory, constructive or otherwise) for the benefit of the relevant taxing
authority which the Administrative Agent determines will have priority equal to
or senior to the Liens granted to the Administrative Agent pursuant to the
Security Agreement.

“Funding
Accounts” has the meaning assigned to such term in Section
4.01(h).

“GAAP”
means generally accepted accounting principles in the United States of America.

“Governmental
Authority” means the government of the United States of America,
any other nation or any political subdivision thereof, whether state or local,
and any agency, authority, instrumentality, regulatory body, court, central
bank or other entity exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining to
government.

“Guarantee”
of or by any Person (the “guarantor”)
means any obligation, contingent or otherwise, of the guarantor guaranteeing or
having the economic effect of guaranteeing any Indebtedness or other obligation
of any other Person (the “primary obligor”)
in any manner, whether directly or indirectly, and including any obligation of
the guarantor, direct or indirect, (a) to purchase or pay (or advance or
supply funds for the purchase or payment of) such Indebtedness or other
obligation or to purchase (or to advance or supply funds for the purchase of)
any security for the payment thereof, (b) to purchase or lease property,
securities or services for the purpose of assuring the owner of such
Indebtedness or other obligation of the payment thereof, (c) to maintain
working capital, equity capital or any other financial statement condition or
liquidity of the primary obligor so as to enable the primary obligor to pay
such Indebtedness or other obligation or (d) as an account party in
respect of any letter of credit or letter of guaranty

 19
 

issued to support such Indebtedness or obligation; provided,
that the term Guarantee shall not include endorsements for collection or
deposit in the ordinary course of business.

“Guaranteed
Obligations” has the meaning assigned to such term in Section
10.01.

“Hazardous
Materials” means all explosive or radioactive substances or
wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos containing
materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.

“Holdings”
means Aventine Renewable Energy Holdings, Inc., a Delaware corporation.

“Indebtedness”
of any Person means, without duplication, (a) all obligations of such
Person for borrowed money or with respect to deposits or advances of any kind, (b) all
obligations of such Person evidenced by bonds, debentures, notes or similar
instruments, (c) all obligations of such Person upon which interest
charges are customarily paid, (d) all obligations of such Person under
conditional sale or other title retention agreements relating to property
acquired by such Person, (e) all obligations of such Person in respect of
the deferred purchase price of property or services (excluding current accounts
payable incurred in the ordinary course of business), (f) all Indebtedness
of others secured by (or for which the holder of such Indebtedness has an
existing right, contingent or otherwise, to be secured by) any Lien on property
owned or acquired by such Person, whether or not the Indebtedness secured
thereby has been assumed, (g) all Guarantees by such Person of
Indebtedness of others (excluding, in the case of the Loan Parties, commitments
of any Loan Party to invest in Marketing Alliance Partners but only to the
extent that the fulfillment of such commitments will not result in a violation
of Section 6.04(c)), (h) all Capital Lease Obligations of such
Person, (i) all obligations, contingent or otherwise, of such Person as an
account party in respect of letters of credit and letters of guaranty, (j) all
obligations, contingent or otherwise, of such Person in respect of bankers’
acceptances, (k)  obligations under any liquidated earn-out, and (l) any
other Off-Balance Sheet Liability.  The
Indebtedness of any Person shall include the Indebtedness of any other entity
(including any partnership in which such Person is a general partner) to the extent
such Person is liable therefor as a result of such Person’s ownership interest
in or other relationship with such entity, except to the extent the terms of
such Indebtedness provide that such Person is not liable therefor.

“Indemnified
Taxes” means Taxes other than Excluded Taxes.

“Information
Memorandum” means the Confidential Information Memorandum dated
February 26, 2007 relating to the Borrowers and the Transactions.

“Interest
Election Request” means a request by the Borrower Representative
to convert or continue a Borrowing in accordance with Section 2.07.

“Interest
Expense” means, with reference to any period, total interest
expense (including that attributable to Capital Lease Obligations) of Holdings
and its Subsidiaries for such period with respect to all outstanding
Indebtedness of Holdings and its Subsidiaries (including all

 20
 

commissions, discounts and other fees and charges owed
with respect to letters of credit and bankers’ acceptance financing and net
costs (net of gains not to exceed $0) under Swap Agreements in respect of
interest rates to the extent such net costs are allocable to such period in
accordance with GAAP), calculated on a consolidated basis for Holdings and its
Subsidiaries for such period in accordance with GAAP.

“Interest
Payment Date” means (a) with respect to any ABR Loan (other
than a Swingline Loan), the first day of each calendar month  and the
Maturity Date, and (b) with respect to any Eurodollar Loan, the last day
of the Interest Period applicable to the Borrowing of which such Loan is a part
and, in the case of a Eurodollar Borrowing with an Interest Period of more than
three months’ duration, each day prior to the last day of such Interest Period
that occurs at intervals of three months’ duration after the first day of such
Interest Period and the Maturity Date, and (c) with respect to any
Swingline Loan, the day that such Loan is required to be repaid and the
Maturity Date.

“Interest
Period” means with respect to any Eurodollar Borrowing, the
period commencing on the date of such Borrowing and ending on the numerically
corresponding day in the calendar month that is one, two, three or
six months thereafter, as the Borrower Representative may elect; provided,
that (a) if any Interest Period would end on a day other than a Business
Day, such Interest Period shall be extended to the next succeeding Business Day
unless, in the case of a Eurodollar Borrowing only, such next succeeding
Business Day would fall in the next calendar month, in which case such Interest
Period shall end on the next preceding Business Day and (b) any Interest
Period pertaining to a Eurodollar Borrowing that commences on the last Business
Day of a calendar month (or on a day for which there is no numerically
corresponding day in the last calendar month of such Interest Period) shall end
on the last Business Day of the last calendar month of such Interest
Period.  For purposes hereof, the date of
a Borrowing initially shall be the date on which such Borrowing is made and, in
the case of a Borrowing, thereafter shall be the effective date of the most
recent conversion or continuation of such Borrowing.

“Inventory”
has the meaning assigned to such term in the Security Agreement.

“Inventory
Advance Percentage” means, with respect to a particular category
of the Borrowers’ Eligible Inventory, the percentage calculated by dividing (a)
85% of the Net Orderly Liquidation Value of such Inventory as determined
pursuant to the most recent Inventory appraisal conducted by the Administrative
Agent pursuant to Section 5.11 hereof by (b) the book value of such
Inventory as of such appraisal date.

“Issuing
Bank” means Chase, in its capacity as the issuer of Letters of
Credit hereunder, and its successors in such capacity as provided in Section
2.06(i).  The Issuing Bank may, in
its discretion, arrange for one or more Letters of Credit to be issued by
Affiliates of the Issuing Bank, in which case the term “Issuing Bank” shall
include any such Affiliate with respect to Letters of Credit issued by such
Affiliate.

“Joinder
Agreement” has the meaning assigned to such term in Section 5.11.

“LC
Collateral Account” has the meaning assigned to such term in Section
2.06(j).

 21
 

“LC
Disbursement” means a payment made by the Issuing Bank pursuant
to a Letter of Credit.

“LC
Exposure” means, at any time, the sum of (a) the aggregate
undrawn amount of all outstanding Letters of Credit at such time plus (b) the aggregate amount
of all LC Disbursements that have not yet been reimbursed by or on behalf of
the Borrowers at such time.  The LC Exposure
of any Lender at any time shall be its Applicable Percentage of the total LC
Exposure at such time.

“Leased
Premises” has the meaning assigned such term in the Mt Vernon
Lease.

“Lenders”
means the Persons listed on the Commitment Schedule and any other Person
that shall have become a party hereto pursuant to an Assignment and Assumption,
other than any such Person that ceases to be a party hereto pursuant to an
Assignment and Assumption.  Unless the
context otherwise requires, the term “Lenders” includes the Swingline Lender.

“Letter of
Credit” means any letter of credit issued pursuant to this
Agreement.

“LIBO Rate”
means, with respect to any Eurodollar Borrowing for any Interest Period, the
rate appearing on Page 3750 of the Dow Jones Market Service (or on any
successor or substitute page of such Service, or any successor to or substitute
for such Service, providing rate quotations comparable to those currently
provided on such page of such Service, as determined by the Administrative
Agent from time to time for purposes of providing quotations of interest rates
applicable to dollar deposits in the London interbank market) at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such
Interest Period, as the rate for dollar deposits with a maturity comparable to
such Interest Period.  In the event that
such rate is not available at such time for any reason, then the “LIBO Rate”
with respect to such Eurodollar Borrowing for such Interest Period shall be the
rate (rounded upwards, if necessary, to the next 1/16 of 1%) at which dollar
deposits of $5,000,000 and for a maturity comparable to such Interest Period
are offered by the principal London office of the Administrative Agent in
immediately available funds in the London interbank market at approximately
11:00 a.m., London time, two Business Days prior to the commencement of
such Interest Period.

“Lien”
means, with respect to any asset, (a) any mortgage, deed of trust, lien,
pledge, hypothecation, encumbrance, charge or security interest in, on or of
such asset, (b) the interest of a vendor or a lessor under any conditional
sale agreement, capital lease or title retention agreement (or any financing
lease having substantially the same economic effect as any of the foregoing) relating
to such asset and (c) in the case of securities, any purchase option, call
or similar right of a third party with respect to such securities.

“Loan
Documents” means this Agreement, any promissory notes issued
pursuant to the Agreement, any Letter of Credit applications, the Collateral
Documents, the Loan Guaranty, and all other agreements, instruments, documents
and certificates identified in Section 4.01 executed and delivered to,
or in favor of, the Administrative Agent or any Lenders and including all other
pledges, powers of attorney, consents, assignments, contracts, notices, letter
of credit agreements and all other written matter whether heretofore, now or
hereafter executed by or on behalf of any Loan Party, or any employee of any
Loan Party, and delivered to the Administrative Agent or

 22
 

any Lender in connection with the Agreement or the
transactions contemplated thereby.  Any
reference in the Agreement or any other Loan Document to a Loan Document shall
include all appendices, exhibits or schedules thereto, and all amendments,
restatements, supplements or other modifications thereto, and shall refer to
the Agreement or such Loan Document as the same may be in effect at any and all
times such reference becomes operative.

“Loan
Guarantor” means each Loan Party (other than the Borrowers’
foreign Subsidiaries).

“Loan
Guaranty” means Article X of this Agreement.

“Loan
Parties” means Holdings, Parent, Power, the Borrowers, the
Borrowers’ domestic Subsidiaries (other than Nebraska Sub) and any other Person
who becomes a party to this Agreement pursuant to a Joinder Agreement and their
successors and assigns.

“Loans”
means the loans and advances made by the Lenders pursuant to this Agreement,
including Loans made pursuant to Section 2.01, Swingline Loans,
Overadvances and Protective Advances.

“Long-Term
Debt” means any Indebtedness that, in accordance with GAAP,
constitutes (or, when incurred, constituted) a long-term liability.

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

“Material
Adverse Effect” means a material adverse effect on (a) the
business, assets, operations or condition, financial or otherwise, of Holdings
and its Subsidiaries taken as a whole, (b) the ability of any Loan Party
to perform any of its obligations under the Loan Documents to which it is a
party, (c) the Collateral, or the Administrative Agent’s Liens (on behalf
of itself and the Lenders) on the Collateral or the priority of such Liens, or (d) the
rights of or benefits available to the Administrative Agent, the Issuing Bank
or the Lenders thereunder.

“Material
Agreement” means all contracts, commitments, offers and
agreements to which any Loan Party is a party or by which any Loan Party or any
of its assets are bound which is material to its assets, liabilities, financial
condition, revenues, expenses, operations or properties, which are limited to any
contract, commitment, offer or agreement (a)  pursuant to which a Loan
Party purchases any product or service which cannot be readily replaced from
other qualified vendors on comparable terms, (b) which is entered into
outside of the ordinary course of business, or (c) with a Marketing
Alliance Partner.

“Material
Indebtedness” means Indebtedness (other than the Loans and
Letters of Credit), or obligations in respect of one or more Swap Agreements,
of any one or more of Holdings and its Subsidiaries in an aggregate principal
amount exceeding $5,000,000.  For
purposes of determining Material Indebtedness, the “obligations” of any
Borrower or any Subsidiary in respect of any Swap Agreement at any time shall
be the maximum aggregate

 

 23

amount (giving effect to any netting agreements) that
such Borrower or such Subsidiary would be required to pay if such Swap
Agreement were terminated at such time.

“Maturity
Date” means March 22, 2012 or any earlier date on which the
Commitments are reduced to zero or otherwise terminated pursuant to the terms
hereof.

“Maximum
Liability” has the meaning assigned to such term in Section
10.10.

“Moody’s”
means Moody’s Investors Service, Inc.

“Mortgages”
means any mortgage, deed of trust or other agreement which conveys or evidences
a Lien in favor of the Administrative Agent, for the benefit of the
Administrative Agent and the Lenders, on real property of a Loan Party,
including any amendment, modification or supplement thereto.

“MSCP
Funds” means Morgan Stanley Dean Witter Capital Partners IV,
L.P., MSDW IV 892 Investors, L.P., Morgan Stanley Dean Witter Capital Investors
IV, L.P., MSDW Capital Partners IV, LLC and MSDW Capital Partners IV, Inc. and
their Affiliates, and any successors of the foregoing.

“Mt Vernon”
has the meaning set forth in the initial paragraph hereof.

“Mt Vernon
Eligibility Date” means the date on which all of the conditions
set forth in item (a) of Schedule 4.03 have been satisfied.

“Mt Vernon
Lease” means that certain Lease Agreement dated as of October
2006 between the Port Commission and Mt Vernon, in effect on the date hereof.

“Multiemployer
Plan” means a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.

“Nebraska
Credit Agreement” shall mean the credit agreement dated as of
August 19, 2005 between Aventine and Nebraska Sub.

“Nebraska Note” shall mean the promissory note issued by
Nebraska Sub in connection with the Nebraska Credit Agreement.

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

“Nebraska Sub Operating Agreement” shall
mean the Amended and Restated Operating Agreement of Nebraska Energy, L.L.C.
dated September 1, 1994, as amended by Amendment I to the Amended and Restated
Operating Agreement dated October 27, 1997, and by Amendment to the Amended and
Restated Operating Agreement dated February 9, 2001.

“Net
Income” means, for any period, the consolidated net income (or
loss) of Holdings and its Subsidiaries, determined on a consolidated basis in
accordance with GAAP; provided that there shall be excluded (a) the
income (or deficit) of any Person accrued prior to the date it becomes a
Subsidiary or is merged into or consolidated with Holdings or any of its
Subsidiaries,

 24
 

(b) the income (or deficit) of any Person (other
than a Subsidiary) in which Holdings or any of its Subsidiaries has an
ownership interest, except to the extent that any such income is actually
received by Holdings or such Subsidiary in the form of dividends or similar
distributions and (c) the undistributed earnings of any Subsidiary to the
extent that the declaration or payment of dividends or similar distributions by
such Subsidiary is not at the time permitted by the terms of any contractual
obligation (other than under any Loan Document) or Requirement of Law applicable
to such Subsidiary.

“Net
Orderly Liquidation Value” means, with respect to Inventory of
any Person, the orderly liquidation value thereof as determined in a manner
acceptable to the Administrative Agent by an appraiser acceptable to the
Administrative Agent, net of all usual and customary costs of liquidation
thereof (other than fees, expenses and other costs for which Reserves are in
effect as of the date of calculation of Net Orderly Liquidation Value).

“Net
Proceeds” means, with respect to any event, (a) the cash
proceeds received in respect of such event including (i) any cash received
in respect of any non-cash proceeds (including any cash payments received by
way of deferred payment of principal pursuant to a note or installment
receivable or purchase price adjustment receivable or otherwise, but excluding
any interest payments), but only as and when received, (ii) in the case of
a casualty, insurance proceeds and (iii) in the case of a condemnation or
similar event, condemnation awards and similar payments, net of (b) the
sum of (i) all reasonable fees and out-of-pocket expenses paid to third
parties (other than Affiliates) in connection with such event, (ii) in the
case of a sale, transfer or other disposition of an asset (including pursuant
to a sale and leaseback transaction or a casualty or a condemnation or similar
proceeding), the amount of all payments required to be made as a result of such
event to repay Indebtedness (other than Loans) secured by such asset or
otherwise subject to mandatory prepayment as a result of such event and (iii) the
amount of all taxes paid (or reasonably estimated to be payable) and the amount
of any reserves established to fund contingent liabilities reasonably estimated
to be payable, in each case during the year that such event occurred or the
next succeeding year and that are directly attributable to such event (as
determined reasonably and in good faith by a Financial Officer).

“New
Lender” has the meaning assigned to such term in Section 2.21.

“New
Lender Agreement” means a New Lender Agreement entered into by a
New Lender in accordance with Section 2.21 and accepted by the Administrative
Agent in the form of Exhibit F, or any other form approved by the
Administrative Agent.

“Non-Consenting Lender” has the
meaning assigned to such term in Section 9.02(d).

“Non-Financed Capital Expenditures”
shall mean Capital Expenditures made by any Loan Party which are not financed
pursuant to (a) the incurrence of Indebtedness (other than Indebtedness
incurred pursuant to this Agreement or the Senior Notes), (b) an equity
contribution made after the Effective Date or (c) any casualty insurance
proceeds or condemnation proceeds.

“Non-Paying Guarantor” has the
meaning assigned to such term in Section 10.11.

 25
 

“Non-Reporting Lender” means each Lender other than Chase
who does not notify the Administrative Agent in writing, as soon as available
and in any event within fifteen (15) days after the end of each calendar
month (or at more frequent intervals, and with such reporting dates, as the
Administrative Agent may require in its discretion), of the Bank Product Amount
in respect of its Banking Services and Swap Agreements as of the end of such
calendar month (or other interval), and any Lender that fails to make such
notification by the last day of the month in which due (or, with respect to any
interval more frequent than monthly, within 10 Business Days of the date
when due) and any Affiliate thereof.

“Obligated Party” has the meaning assigned to such term
in Section 10.02.

“Obligations”
means all unpaid principal of and accrued and unpaid interest on the Loans, all
LC Exposure, all accrued and unpaid fees and all expenses, reimbursements,
indemnities and other obligations of the Loan Parties to the Lenders or to any
Lender, the Administrative Agent, the 
Issuing Bank or any indemnified party arising under the Loan Documents.

“Off-Balance
Sheet Liability” of a Person means (a) any repurchase
obligation or liability of such Person with respect to accounts or notes
receivable sold by such Person, (b) any indebtedness, liability or
obligation under any so-called “synthetic lease” transaction entered into by
such Person, or (c) any indebtedness, liability or obligation arising with
respect to any other transaction which is the functional equivalent of or takes
the place of borrowing but which does not constitute a liability on the balance
sheets of such Person (other than operating leases).

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

“Overadvance”
has the meaning assigned to such term in Section 2.05(d).

“PACA” shall mean the Perishable
Agricultural Commodities Act, 7 U.S.C §§499a-499t, as it may be amended from
time to time.

“PACA Reserve” shall mean a Reserve
which shall be determined and reported in the PACA Reserve Report and which
shall equal the highest actual liability of the Borrowers at any point during
the applicable period to vendors of agricultural commodities to the Borrowers
to the extent the claims of such vendors are subject to PACA.

“PACA Reserve Report” shall mean the
PACA Reserve Report to be delivered pursuant to Section 5.01(f), a form
of which is attached hereto as Exhibit I.

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

“Participant”
has the meaning set forth in Section 9.04.

“Paying Guarantor” has the
meaning assigned to such term in Section 10.11.

 26
 

“PBGC”
means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
and any successor entity performing similar functions.

“Perfection
Certificate” means that certain Perfection Certificate dated March
23, 2007, executed by each Loan Party and addressed to the Administrative
Agent.

“Perfection
Certificate Update” means a certificate from a Financial Officer
of the Borrower Representative in the form of Exhibit H hereto to be delivered
to the Administrative Agent monthly pursuant to Section 5.01(f) hereof
and setting forth all changes that would be required to be made to the
Perfection Certificates (as updated pursuant to any prior Perfection
Certificate Updates) to cause the Perfection Certificates to be accurate and
complete if reissued as of the last day of the month immediately preceding the
month in which the Perfection Certificate is required to be delivered pursuant
to Section 5.01(f) hereof.

“Permitted
Acquisitions” mean any Acquisition by a Borrower in a
transaction that satisfies each of the following requirements:

(a)           such Acquisition is not
a hostile or contested Acquisition;

(b)           the business acquired
in connection with such Acquisition is not engaged, directly or indirectly, in
any line of business other than the businesses in which the Borrowers are
engaged on the Effective Date and any business activities that are
substantially similar, related, or incidental thereto;

(c)           both before and after
giving effect to such Acquisition and the Loans (if any) requested to be made
in connection therewith, each of the representations and warranties in the Loan
Documents is true and correct in all material respects (except (i) any such
representation or warranty which relates to a specified prior date and (ii) to
the extent the Administrative Agent and the Lenders have been notified in
writing by the Borrowers that any representation or warranty is not correct and
the Required Lenders have explicitly waived in writing compliance with such
representation or warranty);

(d)           as soon as available,
but in any event adequately prior to such Acquisition in order to allow the
Administrative Agent time to review the information provided to the Lenders
under clause (ii) below, for Acquisitions with a purchase price greater than $5,000,000,
the Borrowers shall provide, the Lenders (i) notice of such Acquisition and (ii)
a copy of all business and financial information reasonably requested by the
Administrative Agent including pro forma financial statements, statements of
cash flow, and Availability projections;

(e)           prior to inclusion of the
accounts receivable and Inventory acquired in connection with such Acquisition
in the determination of the Borrowing Base, the Administrative Agent shall have
conducted an appraisal and an audit and field examination of such accounts
receivable and Inventory to its satisfaction, any applicable Reserves have been
established, and all appropriate lien filings and collateral documentation,
including Collateral Access Agreements, have been duly completed, executed and
delivered to the Administrative Agent;

 27
 

(f)            if such Acquisition is
an Acquisition of the Equity Interests of a Person, such Acquisition (i) is structured
so that the acquired Person shall become a wholly-owned subsidiary of a Loan
Party pursuant to the terms of this Agreement, and (ii) will not result in any
violation of Regulation U;

(g)           if such Acquisition is
an Acquisition of assets located primarily in the United States, the Acquisition
is structured so that a Borrower shall acquire such assets;

(h)           no Borrower or Loan
Guarantor shall, as a result of or in connection with any such Acquisition,
assume or incur any direct or contingent liabilities (whether relating to
environmental, tax, litigation, or other matters) that could reasonably be
expected to have a Material Adverse Effect;

(i)            in connection with an Acquisition
of the Equity Interests in any Person, all Liens on property of such Person
shall be terminated unless permitted pursuant to the Loan Documents, or the
Administrative Agent in its sole discretion consents otherwise, and in
connection with an Acquisition of the assets of any Person, all liens on such
assets shall be terminated;

(j)            the Fixed Charge
Coverage for the Borrowers (after giving effect to such Acquisition) shall be
greater than 1.1 to 1.00 for the most recently completed Fixed Charge
Calculation Period (calculated on a pro forma basis in a manner acceptable to
the Administrative Agent (including synergies and other costs savings which are
demonstrated and verifiable to the satisfaction of the Administrative Agent))
and assuming that for purposes of calculating such Fixed Charge Coverage Ratio
for such period such Acquisition and any Indebtedness and related interest
expense incurred in connection therewith occurred on the first day of such
applicable period;

(k)           each Borrower shall
certify (and provide the Administrative Agent with pro forma and projected
calculations in form and substance reasonably satisfactory to the
Administrative Agent), on its behalf and on behalf of the other Borrowers, to
the Administrative Agent and the Lenders that, immediately after giving effect
to the completion of such Acquisition and based on good faith projections for
next succeeding twelve month period, Availability will not be less than (A)
$50,000,000, in the case of each Acquisition having a purchase price of less
than $50,000,000, and (B) $100,000,000, in the case of each Acquisition having
a purchase price of greater than or equal to $50,000,000 (the calculation of
such purchase price in each case shall include all consideration paid in
connection with such Acquisition, other than Equity Interests in Holdings
delivered to the seller(s) in such Acquisition, as having been paid in cash at
the time of making such Acquisition), such Availability in each case to be
determined on a pro forma basis (assuming all past due accounts payable of the
Borrowers have been paid in full in cash and no accounts payable of the
Borrowers are allowed to become past due during such twelve month period
thereafter); and

(l)            no Default or Event of
Default exists or would result therefrom.

“Permitted
Discretion” means a determination made in good faith and in the
exercise of reasonable (from the perspective of a secured asset-based lender)
business judgment.

 28
 

“Permitted
Encumbrances” means:

(a)           Liens imposed by law
for taxes that are not yet due or are being contested in compliance with Section
5.04;

(b)           carriers’, warehousemen’s,
mechanics’, materialmen’s, repairmen’s and other like Liens imposed by law,
arising in the ordinary course of business and securing obligations that are
not overdue by more than 30 days or are being contested in compliance with Section
5.04;

(c)           pledges and deposits
made in the ordinary course of business in compliance with workers’
compensation, unemployment insurance and other social security laws or
regulations;

(d)           deposits to secure the
performance of bids, trade contracts, leases, statutory obligations, surety and
appeal bonds, performance bonds and other obligations of a like nature, in each
case in the ordinary course of business;

(e)           judgment liens in
respect of judgments that do not constitute an Event of Default under clause (k)
of Article VII; and

(f)            easements, zoning
restrictions, rights-of-way and similar encumbrances on real property imposed
by law or arising in the ordinary course of business that do not secure any
monetary obligations and do not materially detract from the value of the
affected property or interfere with the ordinary conduct of business of any
Borrower or any Subsidiary;

provided that the term “Permitted Encumbrances” shall
not include any Lien securing Indebtedness.

“Permitted
Holder” means, at any time, (i) Parent and any other direct or
indirect parent company of Aventine so long as Metalmark Capital LLC and its
Affiliates or the MSCP Funds and its Affiliates control at least 50% of the
total voting power of the Voting Equity of such parent company on a fully
diluted basis, (ii) Metalmark Capital LLC and its Affiliates and (iii) the MSCP
Funds and its Affiliates.

“Permitted
Investments” means:

(a)           direct obligations of,
or obligations the principal of and interest on which are unconditionally
guaranteed by, the United States of America (or by any agency thereof to the
extent such obligations are backed by the full faith and credit of the United
States of America), in each case maturing within one year from the date of
acquisition thereof;

(b)           investments in
commercial paper maturing within 270 days from the date of acquisition thereof
and having, at such date of acquisition, the highest credit rating obtainable
from S&P or from Moody’s;

(c)           investments in
certificates of deposit, banker’s acceptances and time deposits maturing within
180 days from the date of acquisition thereof issued or guaranteed by or placed
with, and money market deposit accounts issued or offered by, any domestic
office of any

 29
 

commercial bank organized under the laws of the United
States of America or any State thereof which has a combined capital and surplus
and undivided profits of not less than $500,000,000;

(d)           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 described in clause (c) above;

(e)           money market funds that
(i) comply with the criteria set forth in Securities and Exchange
Commission Rule 2a-7 under the Investment Company Act of 1940, (ii) are
rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets of
at least $5,000,000,000;

(f)            investments in auction
rate securities rated AAA by S&P and Aaa by Moody’s; and

(g)           investments in variable
rate demand notes rated AAA by S&P and Aaa by Moody’s.

“Person”
means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other
entity.

“Plan”
means any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the
Code or Section 302 of ERISA, and in respect of which any Borrower or any
ERISA Affiliate is (or, if such plan were terminated, would under
Section 4069 of ERISA be deemed to be) an “employer” as defined in
Section 3(5) of ERISA.

“Pledge
and Security Agreement” means that certain Pledge and Security
Agreement, dated as of the date hereof, between the Loan Parties and the
Administrative Agent, for the benefit of the Administrative Agent and the
Lenders.

“Port
Commission” means the Indiana Port Commission, as lessor under
the Mt Vernon Lease.

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

“Prepayment
Event” means:

(a)           any sale, transfer or
other disposition (including pursuant to a sale and leaseback transaction) of
any property or asset of any Loan Party, other than dispositions described in Section
6.05(a), (b), (c), and (except as provided in clause (b)
below) (f)); provided that so long as no Default has occurred and is
continuing and Availability is in excess of $50,000,000, the Net Proceeds from
such sales, transfers or other dispositions do not exceed $500,000 individually
or $2,000,000 in the aggregate; or

(b)           any casualty or other
insured damage to, or any taking under power of eminent domain or by
condemnation or similar proceeding of, any property or asset of any Loan Party with
a fair value immediately prior to such event equal to or greater than
$5,000,000; or

 30
 

(c)           the incurrence by any
Loan Party of any Indebtedness, other than Indebtedness permitted under Section
6.01 or permitted by the Required Lenders pursuant to Section 9.02.

“Prime
Rate” means the rate of interest per annum publicly announced
from time to time by Chase as its prime rate at its offices at 270 Park Avenue
in New York City; each change in the Prime Rate shall be effective from and
including the date such change is publicly announced as being effective.

“Pro Forma
Availability Test” means with respect to (a) any
investment, loan or advance to be made by any Loan Party or any Subsidiary in
or to any Person which is not a Loan Party and will not become a Loan Party
simultaneous with such investment, loan or advance, and (b) any Restricted
Payment to be made by any Loan Party or any Subsidiary to any Person other than
a Loan Party, the requirement that Availability is not less than $50,000,000
after giving effect to such investment, loan, advance or Restricted Payment
with Availability calculated after giving effect to the making of all Loans
(i) required to fund such investment, loan, advance or Restricted Payment,
and (ii) necessary to bring all past due accounts of the Loan Parties and
each Subsidiary current.

“Pro Forma
Fixed Charge Test” means with respect to (a) any
investment, loan or advance to be made by any Loan Party or any Subsidiary in
or to any Person which is not a Loan Party and which will not become a Loan
Party simultaneous with such investment, loan or advance, and (b) any
Restricted Payment to be made by any Loan Party or any Subsidiary to any Person
which is not a Loan Party, the requirement that the Fixed Charge Coverage Ratio
is not less than 1.10 to 1.00 for the most recently ended Fixed Charge Coverage
Period for which financial statements have been provided to Administrative
Agent as required by Section 5.01 hereof with the Fixed Charge Coverage
Ratio being calculated for such Fixed Charge Coverage Period to give pro forma
effect to such investment, loan advance or Restricted Payment (and all other
such investments, loans, advances and Restricted Payments made subsequent to the
end of such Fixed Charge Coverage Period) as if such investment, loan, advance
or Restricted Payment (and all other such investments, loans, advances and
Restricted Payments made subsequent to the end of such Fixed Charge Coverage
Period) were made during such Fixed Charge Coverage Period and assuming that any
Indebtedness and related interest expense incurred in connection with such
investment, loan, advance or Restricted Payment was incurred on the first day
of such Fixed Charge Coverage Period.

“Projections”
has the meaning assigned to such term in Section 5.01(e).

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

“Protective
Advance” has the meaning assigned to such term in Section 2.04.

“Quarterly
Fixed Asset Amortization Amount” means $1,785,715.00.

“Rate
Adjustment Date” means July 1, 2007, and the first day of
each October, January, April and July thereafter.

 31
 

“Real Property” shall mean any right,
title or interest in and to real property, including any fee interest,
leasehold interest, easement, or license and any other right to use or occupy
real property, including any right arising by contract.

“Register”
has the meaning set forth in Section 9.04.

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

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

“Rent Reserve”
with respect to any leased location where any Inventory subject to Liens
arising by operation of law is located, a reserve equal to three (3) months’
rent at such leased location.

“Report”
means reports prepared by the Administrative Agent or another Person showing
the results of appraisals, field examinations or audits pertaining to the
Borrowers’ assets from information furnished by or on behalf of the Borrowers,
after the Administrative Agent has exercised its rights of inspection pursuant
to this Agreement, which Reports may be distributed to the Lenders by the
Administrative Agent.

“Required
Lenders” means, at any time, Lenders having Credit Exposure and
unused Commitments representing at least 50% of the sum of the total Credit
Exposure and unused Commitments at such time; provided that, as long as there are only two
Lenders, Required Lenders shall mean both Lenders.

“Requirement
of Law” means, as to any Person, the Certificate of
Incorporation and By-Laws or other organizational or governing documents of
such Person, and any law, treaty, rule or regulation or determination of an
arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Person or any of its property or to which such Person
or any of its property is subject.

“Reserves”
means any and all reserves which the Administrative Agent deems necessary, in
its Permitted Discretion, to maintain (including, without limitation and
without duplication, reserves for accrued and unpaid interest on the Secured
Obligations, Banking Services Reserves, Rent Reserves, PACA Reserves,
Storage/Handling Reserves, Exchange Reserves, Fuels Tax Reserves, Dilution
Reserves at any time that the Dilution Ratio is greater than 5%
(and then only to the extent in excess of 5%), reserves for Inventory
shrinkage, reserves for customs charges and shipping charges related to any
Inventory in transit, reserves for Swap Obligations, reserves for contingent
liabilities of any Loan Party, reserves for uninsured losses of any Loan Party,
reserves for uninsured, underinsured, un-indemnified or under-indemnified
liabilities or potential liabilities with respect to any litigation and
reserves for taxes, fees, assessments, and other governmental charges) with
respect to the Collateral or any Loan Party.

 32
 

“Restricted
Payment” means any dividend or other distribution (whether in
cash, securities or other property) with respect to any Equity Interests in Holdings
or any Subsidiary, or any payment (whether in cash, securities or other
property), including any sinking fund or similar deposit, on account of the
purchase, redemption, retirement, acquisition, cancellation or termination of
any such Equity Interests in Holdings or any option, warrant or other right to
acquire any such Equity Interests in Holdings or any Subsidiary.

“Revolving
Commitment” means, with respect to each Lender, the commitment,
if any, of such Lender to make Loans and to acquire participations in Letters
of Credit, Overadvances and Swingline Loans hereunder, expressed as an amount
representing the maximum possible aggregate amount of such Lender’s Revolving
Exposure hereunder, as such commitment may be (a) reduced from time to
time pursuant to Section 2.09, (b) reduced or increased from time
to time pursuant to assignments by or to such Lender pursuant to Section
9.04, and (c) increased from time to time pursuant to Section 2.21.  The initial amount of each  Lender’s Revolving Commitment is set forth on
the Commitment Schedule, or in the Assignment and Assumption pursuant to
which such Lender shall have assumed its Revolving Commitment, as
applicable.  The initial aggregate amount
of the Lenders’ total Revolving Commitments is $200,000,000.

“Revolving
Exposure” means, with respect to any Lender at any time, an
amount equal to such Lender’s Applicable Percentage of (a) the outstanding
principal amount of Loans at such time, (b) LC Exposure at such time, (c) the
aggregate principal amount of Swingline Loans outstanding at such time and (d)
the aggregate principal amount of Overadvances outstanding at such time.

“Risk Management Policy” shall have the
meaning set forth in Section 5.15.

“S&P”
means Standard & Poor’s Ratings Services, a division of The McGraw Hill
Companies, Inc.

“Secured
Obligations” means all Obligations, together with all (a) Banking
Services Obligations and (b) Swap Obligations owing to one or more Lenders
or their respective Affiliates; provided that at or prior to the time that
any transaction relating to such Swap Obligation is executed, the Lender party
thereto (other than Chase) shall have delivered written notice to the
Administrative Agent that such a transaction has been entered into and that it
constitutes a Secured Obligation entitled to the benefits of the Collateral
Documents.

“Security
Agreement” means the Pledge and Security Agreement and any other
pledge or security agreement entered into, after the date of this Agreement by
any other Loan Party (as required by this Agreement or any other Loan
Document), or any other Person, as the same may be amended, restated or
otherwise modified from time to time.

“Senior Indenture”
means a trust indenture between Holdings and a financial institution serving as
trustee thereunder, having covenants (but not necessarily economic terms)
substantially consistent with the Senior Notes Description and which otherwise satisfy each of the
following criteria:   an interest rate per annum at or below 11%,  a maturity date no earlier than 10 years after
date of issuance, and no scheduled
amortization of principal.

 33
 

“Senior Note Documents”
means the Senior Indenture, the Senior Notes, and any and all agreements,
instruments and other documents pursuant to which the Senior Notes will be
issued.

“Senior
Notes” means the notes to be issued by Holdings on or after the
Effective Date as described in the Senior Notes Description in an aggregate
principal amount not to exceed $400,000,000.

“Senior
Notes Description” means the draft “Description of the Notes”
setting forth the proposed terms of the Senior Notes provided to the initial Lenders
hereunder prior to the Effective Date.

“Settlement”
has the meaning assigned to such term in Section 2.05(f).

“Settlement
Date” has the meaning assigned to such term in Section 2.05(f).

“Statutory
Reserve Rate” means a fraction (expressed as a decimal), the
numerator of which is the number one and the denominator of which is the number
one minus the aggregate of the maximum
reserve percentages (including any marginal, special, emergency or supplemental
reserves) expressed as a decimal established by the Board to which the
Administrative Agent is subject with respect to the Adjusted LIBO Rate,
for eurocurrency funding (currently referred to as “Eurocurrency Liabilities”
in Regulation D of the Board).  Such
reserve percentages shall include those imposed pursuant to such
Regulation D.  Eurodollar Loans shall
be deemed to constitute eurocurrency funding and to be subject to such reserve
requirements without benefit of or credit for proration, exemptions or offsets
that may be available from time to time to any Lender under such
Regulation D or any comparable regulation. 
The Statutory Reserve Rate shall be adjusted automatically on and as of
the effective date of any change in any reserve percentage.

“Storage/Handling
Reserves” shall mean an amount, calculated as of the last day of
each month, equal to the aggregate of all amounts for storage, handling and other
services charged by each bailee or warehouseman to Borrower for the two month
period then ended; provided, however, such amounts charged by bailees
or warehousemen who are no longer bailees or warehousemen at the end of the
period for which Storage/Handling Reserves are being calculated shall be
excluded in calculating Storage/Handling Reserves for such period; provided,
further, if a bailee or warehouseman at the end of any period for which
Storage/Handling Reserves are being calculated has not been a bailee or
warehouseman for all of such period, all such amounts paid to such bailee or
warehouseman shall be included in the Storage/Handling Reserves on a pro forma
basis as if such bailee or warehouseman had been a bailee or warehouseman since
the beginning of such period.

“Subordinated
Indebtedness” of a Person means any Indebtedness of such Person
the payment of which is subordinated to payment of the Secured Obligations to
the written satisfaction of the Administrative Agent.

“subsidiary”
means, with respect to any Person (the “parent”) at
any date, any corporation, limited liability company, partnership, association
or other entity the accounts of which would be consolidated with those of the
parent in the parent’s consolidated financial

 34
 

statements if such financial statements were prepared
in accordance with GAAP as of such date, as well as any other corporation,
limited liability company, partnership, association or other entity (a) of
which securities or other ownership interests representing more than 50% of the
equity or more than 50% of the ordinary voting power or, in the case of a
partnership, more than 50% of the general partnership interests are, as of such
date, owned, controlled or held, or (b) that is, as of such date,
otherwise Controlled, by the parent or one or more subsidiaries of the parent
or by the parent and one or more subsidiaries of the parent.

“Subsidiary”
means any direct or indirect subsidiary of Holdings (including Nebraska Sub) or
a Loan Party, as applicable.

“Supermajority
Lenders” means, at any time, Lenders having Revolving  Exposure and unused Revolving Commitments
representing at least 80% of the sum of the total Revolving Exposure and unused
Revolving Commitments at such time.

“Swap
Agreement” means any
agreement with respect to any swap, forward, future or derivative transaction
or option or similar agreement involving, or settled by reference to, one or
more rates, currencies, commodities, equity or debt instruments or securities,
or economic, financial or pricing indices or measures of economic, financial or
pricing risk or value or any similar transaction or any combination of these
transactions; provided that no phantom stock or similar plan
providing for payments only on account of services provided by current or
former directors, officers, employees or consultants of the Borrowers or the
Subsidiaries shall be a Swap Agreement.

“Swap
Obligations” of a Person means any and all obligations of such
Person, whether absolute or contingent and howsoever and whensoever created,
arising, evidenced or acquired (including all renewals, extensions and
modifications thereof and substitutions therefor), under (a) any and all
Swap Agreements, and (b) any and all cancellations, buy backs, reversals,
terminations or assignments of any Swap Agreement transaction.

“Swingline
Lender” means JPMorgan Chase Bank, N.A., in its capacity as
lender of Swingline Loans hereunder.

“Swingline
Loan” means a Loan made pursuant to Section 2.05.

“Syndication
Agent” means Bank of America, N.A., in its capacity as
syndication agent for the Lenders hereunder, and its successors and assigns in
such capacity.

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

“Transactions”
means the execution, delivery and performance by the Borrowers of this
Agreement, the borrowing of Loans and other credit extensions, the use of the
proceeds thereof and the issuance of Letters of Credit hereunder.

 35
 

“Type”,
when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined
by reference to the Adjusted LIBO Rate, the Alternate Base Rate.

“UCC”
means the Uniform Commercial Code as in effect from time to time in the State
of New York or any other state the laws of which are required to be applied in
connection with the issue of perfection of security interests.

“Unliquidated
Obligations” means, at any time, any Secured Obligations (or
portion thereof) that are contingent in nature or unliquidated at such time,
including any Secured Obligation that is: (a) an obligation to reimburse a
bank for drawings not yet made under a letter of credit issued by it; (b) any
other obligation (including any guarantee) that is contingent in nature at such
time; or (c) an obligation to provide collateral to secure any of the
foregoing types of obligations.

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

“Withdrawal
Liability” means liability to a Multiemployer Plan as a result
of a complete or partial withdrawal from such Multiemployer Plan, as such terms
are defined in Part I of Subtitle E of Title IV of ERISA.

Section 1.02           Classification of Loans and Borrowings.  For purposes of this Agreement, Loans may be
classified and referred to by Class (e.g., a “Loan”) or by Type (e.g.,
a “Eurodollar Loan”) or by Class and Type (e.g., a “Eurodollar Loan”).  Borrowings also may be classified and
referred to by Class (e.g., a “Borrowing”) or by Type (e.g., a “Eurodollar
Borrowing”) or by Class and Type (e.g., a “Eurodollar Borrowing”).

Section 1.03           Terms Generally.  The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have
the same meaning and effect as the word “shall”.  Unless the context requires otherwise (a) any
definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other
document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications
set forth herein), (b) any reference herein to any Person shall be
construed to include such Person’s successors and assigns, (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to
refer to this Agreement in its entirety and not to any particular provision
hereof, (d) all references herein to Articles, Sections, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and Exhibits
and Schedules to, this Agreement and (e) the words “asset” and “property”
shall be construed to have the same meaning and effect and to refer to any and
all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

 36
 

Section 1.04           Accounting Terms; GAAP.  Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in
accordance with GAAP, as in effect from time to time; provided that, if
the Borrower Representative notifies the Administrative Agent that the
Borrowers request an amendment to any provision hereof to eliminate the effect
of any change occurring after the date hereof in GAAP or in the application
thereof on the operation of such provision (or if the Administrative Agent
notifies the Borrower Representative that the Required Lenders request an
amendment to any provision hereof for such purpose), regardless of whether any
such notice is given before or after such change in GAAP or in the application
thereof, then such provision shall be interpreted on the basis of GAAP as in
effect and applied immediately before such change shall have become effective
until  such notice shall have been
withdrawn or such provision amended in accordance herewith.

ARTICLE II

The Credits

Section 2.01           Commitments.  Subject to the terms and conditions set forth
herein, each Lender agrees to make Loans to the Borrowers from time to time
during the Availability Period in an aggregate principal amount that will not
result in (a) such Lender’s Revolving Exposure exceeding such Lender’s
Revolving Commitment or (b) the total Revolving Exposures exceeding (i) the
lesser of (x) the total Revolving Commitments and (y) the Borrowing Base, minus (ii) the Reserves, subject to the Administrative Agent’s
authority, in its sole discretion, to make Protective Advances and Overadvances
pursuant to the terms of Section 2.04 and Section 2.05.  Within the foregoing
limits and subject to the terms and conditions set forth herein, the Borrowers
may borrow, prepay and reborrow Loans.

Section 2.02           Loans and Borrowings.  (a) Each Loan (other than a Swingline
Loan) shall be made as part of a Borrowing consisting of Loans of the same
Class and Type made by the Lenders ratably in accordance with their respective
Commitments of the applicable Class.  Any
Protective Advance, any Overadvance and any Swingline Loan shall be made in
accordance with the procedures set forth in Section 2.04 and Section 2.05.

(b)           Subject
to Section 2.14, each Borrowing shall be comprised entirely of ABR Loans
or Eurodollar Loans as the Borrower Representative may request in accordance
herewith, provided that all Borrowings made on the Effective Date must
be made as ABR Borrowings but may be converted into Eurodollar Borrowings in
accordance with Section 2.08. 
Each Swingline Loan shall be an ABR Loan.  Each Lender at its option may make any
Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such
Lender to make such Loan; provided that any exercise of such option
shall not affect the obligation of the Borrowers to repay such Loan in
accordance with the terms of this Agreement.

(c)           At
the commencement of each Interest Period for any Eurodollar Borrowing, such
Borrowing shall be in an aggregate amount that is an integral multiple of $500,000
and not less than $5,000,000.  ABR Borrowings
may be in any amount.  Borrowings of more
than one Type and Class may be outstanding at the same time; provided
that there shall not at any time be more than a total of six Eurodollar
Borrowings outstanding.

 37
 

(d)           Notwithstanding
any other provision of this Agreement, the Borrower Representative shall not be
entitled to request, or to elect to convert or continue, any Borrowing if the
Interest Period requested with respect thereto would end after the Maturity
Date.

Section 2.03           Requests for Borrowings.  To request a Borrowing, the Borrower
Representative shall notify the Administrative Agent of such request either in
writing (delivered by hand or facsimile) in a form approved by the
Administrative Agent and signed by the Borrower Representative or by telephone (a) in
the case of a Eurodollar Borrowing, not later than 10:00 a.m., Chicago time,
three Business Days before the date of the proposed Borrowing or (b) in
the case of an ABR Borrowing, not later than noon, Chicago time, on the date of
the proposed Borrowing; provided that any such notice of an ABR Borrowing
to finance the reimbursement of an LC Disbursement as contemplated by Section
2.06(e) may be given not later than 9:00 a.m., Chicago time, on the date of
the proposed Borrowing.  Each such
telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly
by hand delivery or facsimile to the Administrative Agent of a written
Borrowing Request in a form approved by the Administrative Agent and signed by
the Borrower Representative.  Each such
telephonic and written Borrowing Request shall specify the following
information in compliance with Section 2.01:

(i)            the
name of the applicable Borrower;

(ii)           the
aggregate amount of the requested Borrowing and a breakdown of the separate
wires comprising such Borrowing;

(iii)          the date of such Borrowing, which shall be a
Business Day;

(iv)          whether
such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and

(v)           in
the case of a Eurodollar Borrowing, the initial Interest Period to be
applicable thereto, which shall be a period contemplated by the definition of
the term “Interest Period.”

If no election as to the Type of Borrowing is
specified, then the requested Borrowing shall be an ABR Borrowing.  If no Interest Period is specified with
respect to any requested Eurodollar Borrowing, then the applicable Borrower(s)
shall be deemed to have selected an Interest Period of one month’s
duration.  Promptly following receipt of
a Borrowing Request in accordance with this Section, the Administrative Agent
shall advise each Lender of the details thereof and of the amount of such
Lender’s Loan to be made as part of the requested Borrowing.

Section 2.04           Protective Advances.  (a) Subject to the limitations set forth
below, the Administrative Agent is authorized by the Borrowers and the Lenders,
from time to time in the Administrative Agent’s sole discretion (but shall have
absolutely no obligation to), to make Loans to the Borrowers, on behalf of all
Lenders, which the Administrative Agent, in its Permitted Discretion, deems
necessary or desirable (i) to preserve or protect the Collateral, or any
portion thereof, (ii) to enhance the likelihood of, or maximize the amount
of, repayment of the Loans and other Obligations, or (iii) to pay any
other amount chargeable to or required to be paid by the Borrowers pursuant to
the terms of this Agreement, including payments of

 38
 

reimbursable expenses (including costs, fees, and expenses as described
in Section 9.03) and other sums payable under the Loan Documents (any of
such Loans are herein referred to as “Protective Advances”);
provided that, the aggregate amount of
Protective Advances outstanding at any time shall not at any time exceed $10,000,000;
provided further that, the aggregate amount of outstanding Protective
Advances plus the aggregate Revolving Exposure
shall not exceed the aggregate unused Commitments.  Protective Advances may be made even if the
conditions precedent set forth in Section 4.02 have not been
satisfied.  The Protective Advances shall
be secured by the Liens in favor of the Administrative Agent in and to the
Collateral and shall constitute Obligations hereunder.  All Protective Advances shall be ABR
Borrowings.  The Administrative Agent’s
authorization to make Protective Advances may be revoked at any time by the
Supermajority Lenders.  Any such
revocation must be in writing and shall become effective prospectively upon the
Administrative Agent’s receipt thereof. 
At any time that there is sufficient Availability and the conditions
precedent set forth in Section 4.02 have been satisfied, the
Administrative Agent may request the Lenders to make a Loan to repay a
Protective Advance.  At any other time
the Administrative Agent may require the Lenders to fund their risk
participations described in Section 2.04(b).

(b)           Upon
the making of a Protective Advance by
the Administrative Agent  (whether
before or after the occurrence of a Default), each Lender shall be deemed,
without further action by any party hereto, to have unconditionally and
irrevocably purchased from the Administrative Agent without recourse or warranty,
an undivided interest and participation in such Protective Advance in
proportion to its Applicable Percentage. 
From and after the date, if any, on which any Lender is required to fund
its participation in any Protective Advance purchased hereunder, the
Administrative Agent shall promptly distribute to such Lender, such Lender’s
Applicable Percentage of all payments of principal and interest and all
proceeds of Collateral received by the Administrative Agent in respect of such
Protective Advance.

Section 2.05           Swingline Loans and Overadvances.  (a) Subject to the terms and conditions
set forth herein, the Swingline Lender agrees to make Swingline Loans to the
Borrowers, from time to time during the Availability Period, in an aggregate
principal amount at any time outstanding that will not result in (i) the
aggregate principal amount of outstanding Swingline Loans exceeding $25,000,000
or (ii) the sum of the total Revolving Exposures exceeding the lesser of
the total Revolving Commitments and Availability; provided that the
Swingline Lender shall not be required to make a Swingline Loan to refinance an
outstanding Swingline Loan.  Within the
foregoing limits and subject to the terms and conditions set forth herein, the
Borrowers may borrow, prepay and reborrow Swingline Loans.  To request a Swingline Loan, the Borrower
Representative shall notify the Administrative Agent of such request by
telephone (confirmed by facsimile), not later than noon, Chicago time, on the
day of a proposed Swingline Loan.  Each
such notice shall be irrevocable and shall specify the requested date (which
shall be a Business Day) and amount of the requested Swingline Loan.  The Administrative Agent will promptly advise
the Swingline Lender of any such notice received from the Borrower Representative.  The Swingline Lender shall make each
Swingline Loan available to the Borrowers by means of a credit to the Funding
Account(s) (or, in the case of a Swingline Loan made to finance the
reimbursement of an LC Disbursement as provided in Section 2.06(e), by
remittance to the Issuing Bank, and in the case of repayment of another Loan or
fees or expenses as provided by Section 2.18(c), by remittance to the
Administrative Agent to

 39
 

be distributed to the Lenders) by 2:00 p.m., Chicago time, on the requested
date of such Swingline Loan.

(b)           The
Swingline Lender may by written notice given to the Administrative Agent not
later than 11:00 a.m., Chicago time, on any Business Day require the Revolving
Lenders to acquire participations on such Business Day in all or a portion of
the Swingline Loans outstanding.  Such
notice shall specify the aggregate amount of Swingline Loans in which Revolving
Lenders will participate.  Promptly upon
receipt of such notice, the Administrative Agent will give notice thereof to
each  Revolving Lender, specifying in
such notice such Lender’s Applicable Percentage of such Swingline Loan or
Loans.  Each Revolving Lender hereby
absolutely and unconditionally agrees, upon receipt of notice as provided
above, to pay to the Administrative Agent, for the account of the Swingline
Lender, such Lender’s Applicable Percentage of such Swingline Loan or
Loans.  Each Revolving Lender
acknowledges and agrees that its obligation to acquire participations in
Swingline Loans pursuant to this paragraph is absolute and unconditional and
shall not be affected by any circumstance whatsoever, including the occurrence
and continuance of a Default or reduction or termination of the Commitments,
and that each such payment shall be made without any offset, abatement,
withholding or reduction whatsoever. 
Each Revolving Lender shall comply with its obligation under this
paragraph by wire transfer of immediately available funds, in the same manner
as provided in Section 2.07 with respect to Loans made by such Lender
(and Section 2.07 shall apply, mutatis  mutandis, to the
payment obligations of the Lenders), and the Administrative Agent shall
promptly pay to the Swingline Lender the amounts so received by it from the
Revolving Lenders.  The Administrative Agent
shall notify the Borrower Representative of any participations in any Swingline
Loan acquired pursuant to this paragraph, and thereafter payments in respect of
such Swingline Loan shall be made to the Administrative Agent and not to the
Swingline Lender.  Any amounts received
by the Swingline Lender from the Borrowers (or other party on behalf of the
Borrowers) in respect of a Swingline Loan after receipt by the Swingline Lender
of the proceeds of a sale of participations therein shall be promptly remitted
to the Administrative Agent; any such amounts received by the Administrative
Agent shall be promptly remitted by the Administrative Agent to the Revolving
Lenders that shall have made their payments pursuant to this paragraph and to
the Swingline Lender, as their interests may appear; provided that any such
payment so remitted shall be repaid to the Swingline Lender or to the
Administrative Agent, as applicable, if and to the extent such payment is
required to be refunded to the Borrowers for any reason.  The purchase of participations in a Swingline
Loan pursuant to this paragraph shall not relieve the Borrowers of any default
in the payment thereof.

(c)           Any
provision of this Agreement to the contrary notwithstanding, at the request of
the Borrower Representative, the Administrative Agent may in its sole
discretion (but with absolutely no obligation), make Loans to the Borrowers, on
behalf of the Lenders, in amounts that exceed Availability (any such excess
Loans are herein referred to collectively as “Overadvances”);
provided that, no Overadvance shall result in
a Default due to the Borrowers’ failure to comply with Section 2.01 for
so long as such Overadvance remains outstanding in accordance with the terms of
this paragraph, but solely with respect to the amount of such Overadvance.  In addition, Overadvances may be made even if
the condition precedent set forth in Section 4.02(c) has not been
satisfied.  All Overadvances shall
constitute ABR Borrowings.  The authority
of the Administrative Agent to make Overadvances is limited to an aggregate

 40
 

amount not to exceed $10,000,000 at any time, each Overadvance shall
mature and be due on the earlier of the Maturity Date, demand by the
Administrative Agent and thirty days after such Overadvance is made, and no
Overadvance shall cause any Lender’s Revolving Exposure to exceed its Revolving
Commitment; provided that, the Supermajority Lenders may
at any time revoke the Administrative Agent’s authorization to make
Overadvances.  Any such revocation must
be in writing and shall become effective prospectively upon the Administrative
Agent’s receipt thereof.

(d)           Upon
the making of an Overadvance by the
Administrative Agent, each Lender shall be deemed, without further
action by any party hereto, to have unconditionally and irrevocably purchased
from the Administrative Agent without recourse or warranty, an undivided
interest and participation in such Overadvance in proportion to its Applicable
Percentage of the Revolving Commitment. 
The Administrative Agent may, at any time, require the Lenders to fund
their participations. From and after the date, if any, on which any Lender is
required to fund its participation in any Overadvance purchased hereunder, the
Administrative Agent shall promptly distribute to such Lender, such Lender’s
Applicable Percentage of all payments of principal and interest and all
proceeds of Collateral received by the Administrative Agent in respect of such
Loan.

(e)           Upon
the making of a Swingline Loan or an
Overadvance  (whether
before or after the occurrence of a Default and regardless of whether a
Settlement has been requested with respect to such Swingline Loan or
Overadvance), each Lender shall be deemed, without further action by any party
hereto, to have unconditionally and irrevocably purchased from the Swingline
Lender or the Administrative Agent, as the case may be, without recourse or
warranty, an undivided interest and participation in such Swingline Loan or
Overadvance in proportion to its Applicable Percentage of the Revolving Commitment.  The Swingline Lender or the Administrative
Agent may, at any time, require the Lenders to fund their participations.  From and after the date, if any, on which any
Lender is required to fund its participation in any Swingline Loan or
Overadvance purchased hereunder, the Administrative Agent shall promptly
distribute to such Lender, such Lender’s Applicable Percentage of all payments
of principal and interest and all proceeds of Collateral received by the
Administrative Agent in respect of such Loan.

(f)            The
Administrative Agent, on behalf of the Swingline Lender, shall request
settlement (a “Settlement”)
with the Lenders on at least a weekly basis or on any date that the
Administrative Agent elects, by notifying the Lenders of such requested
Settlement by facsimile, telephone, or e-mail no later than 12:00 noon Chicago
time on the date of such requested Settlement (the “Settlement
Date”).  Each Lender
(other than the Swingline Lender, in the case of the Swingline Loans) shall
transfer the amount of such Lender’s Applicable Percentage of the outstanding
principal amount of the applicable Loan with respect to which Settlement is
requested to the Administrative Agent, to such account of the Administrative
Agent as the Administrative Agent may designate, not later than 2:00 p.m.,
Chicago time, on such Settlement Date. 
Settlements may occur during the existence of a Default and whether or
not the applicable conditions precedent set forth in Section 4.02 have
then been satisfied.  Such amounts
transferred to the Administrative Agent shall be applied against the amounts of
the Swingline Lender’s Swingline Loans and, together with Swingline Lender’s
Applicable Percentage of such

 41
 

Swingline Loan, shall constitute Loans of such Lenders,
respectively.  If any such amount is not
transferred to the Administrative Agent by any Lender on such Settlement Date,
the Swingline Lender shall be entitled to recover such amount on demand from
such Lender together with interest thereon as specified in Section 2.07.

Section 2.06                                Letters
of Credit.

(a)           General.  Subject to the terms and conditions set forth
herein, the Borrower Representative may request the issuance of Letters of
Credit for its own account or for the account of another Loan Party, in a form
reasonably acceptable to the Administrative Agent and the Issuing Bank, at any
time and from time to time during the Availability Period (such letters of
credit, together with the Existing Letter of Credit, being collectively
referred to as the “Letters of Credit”).  In the event of any inconsistency between the
terms and conditions of this Agreement and the terms and conditions of any form
of letter of credit application or other agreement submitted by the Borrowers
to, or entered into by the Borrowers with, the Issuing Bank relating to any
Letter of Credit, the terms and conditions of this Agreement shall control.  The Existing Letter of Credit shall be deemed
to have been issued hereunder as of the Effective Date.

(b)           Notice
of Issuance, Amendment, Renewal, Extension; Certain Conditions.  To request the issuance of a Letter of Credit
(or the amendment, renewal or extension of an outstanding Letter of Credit),
the Borrower Representative shall hand deliver or facsimile (or transmit by
electronic communication, if arrangements for doing so have been approved by
the Issuing Bank) to the Issuing Bank and the Administrative Agent (prior to
9:00 am, Chicago time, at least three Business Days prior to the requested date
of issuance, amendment, renewal or extension) a notice requesting the issuance
of a Letter of Credit, or identifying the Letter of Credit to be amended,
renewed or extended, and specifying the date of issuance, amendment, renewal or
extension (which shall be a Business Day), the date on which such Letter of
Credit is to expire (which shall comply with paragraph (c) of this
Section), the amount of such Letter of Credit, the name and address of the
beneficiary thereof and such other information as shall be necessary to
prepare, amend, renew or extend such Letter of Credit.  If requested by the Issuing Bank, the
applicable Borrower also shall submit a letter of credit application on the
Issuing Bank’s standard form in connection with any request for a Letter of
Credit.  A Letter of Credit shall be
issued, amended, renewed or extended only if (and upon issuance, amendment,
renewal or extension of each Letter of Credit the Borrowers shall be deemed to
represent and warrant that), after giving effect to such issuance, amendment,
renewal or extension (i) the LC Exposure shall not exceed $25,000,000 and (ii) the
total Revolving Exposures shall not exceed (A) the lesser of the total
Revolving Commitments and the Borrowing Base, minus
(B)  the Reserves.

(c)           Expiration
Date.  Each Letter of Credit shall
expire at or prior to the close of business on the earlier of (i) the date
one year after the date of the issuance of such Letter of Credit (or, in the
case of any renewal or extension thereof, one year after such renewal or
extension) and (ii) the date that is five Business Days prior to the
Maturity Date.

(d)           Participations.  By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) and without any
further action on the part of the Issuing Bank or the Lenders, the Issuing Bank
hereby grants to each Lender, and each Lender

 42
 

hereby acquires from the Issuing Bank, a participation in such Letter
of Credit equal to such Lender’s Applicable Percentage of the aggregate amount
available to be drawn under such Letter of Credit.  In consideration and in furtherance of the
foregoing, each Lender hereby absolutely and unconditionally agrees to pay to
the Administrative Agent, for the account of the Issuing Bank, such Lender’s
Applicable Percentage of each LC Disbursement made by the Issuing Bank and not
reimbursed by the Borrowers on the date due as provided in paragraph (e) of
this Section, or of any reimbursement payment required to be refunded to the
Borrowers for any reason.  Each Lender
acknowledges and agrees that its obligation to acquire participations pursuant
to this paragraph in respect of Letters of Credit is absolute and unconditional
and shall not be affected by any circumstance whatsoever, including any
amendment, renewal or extension of any Letter of Credit or the occurrence and
continuance of a Default or reduction or termination of the Commitments, and
that each such payment shall be made without any offset, abatement, withholding
or reduction whatsoever.

(e)           Reimbursement.  If the Issuing Bank shall make any LC
Disbursement in respect of a Letter of Credit, the Borrowers shall reimburse
such LC Disbursement by paying to the Administrative Agent an amount equal to
such LC Disbursement not later than 11:00 a.m., Chicago time, on the date that
such LC Disbursement is made, if the Borrowers Representative shall have
received notice of such LC Disbursement prior to 9:00 a.m., Chicago time, on
such date, or, if such notice has not been received by the Borrower
Representative prior to such time on such date, then not later than 11:00 a.m.,
Chicago time, on (i) the Business Day that the Borrower Representative
receives such notice, if such notice is received prior to 9:00 a.m., Chicago
time, on the day of receipt, or (ii) the Business Day immediately
following the day that the Borrower Representative receives such notice, if
such notice is not received prior to such time on the day of receipt; provided
that, the Borrowers may, subject to the conditions to borrowing set forth
herein, request in accordance with Section 2.03 or Section 2.05 that such payment be
financed with an ABR Borrowing or Swingline Loan in an equivalent amount and,
to the extent so financed, the Borrowers’ obligation to make such payment shall
be discharged and replaced by the resulting ABR Borrowing or Swingline
Loan.  If the Borrowers fail to make such
payment when due, the Administrative Agent shall notify each Lender of the
applicable LC Disbursement, the payment then due from the Borrowers in respect
thereof and such Lender’s Applicable Percentage thereof.  Promptly following receipt of such notice,
each Lender shall pay to the Administrative Agent its Applicable Percentage of
the payment then due from the Borrowers, in the same manner as provided in Section
2.07 with respect to Loans made by such Lender (and Section 2.07
shall apply, mutatis  mutandis, to the payment obligations of the
Lenders), and the Administrative Agent shall promptly pay to the Issuing Bank
the amounts so received by it from the Lenders. 
Promptly following receipt by the Administrative Agent of any payment from
the Borrowers pursuant to this paragraph, the Administrative Agent shall
distribute such payment to the Issuing Bank or, to the extent that Lenders have
made payments pursuant to this paragraph to reimburse the Issuing Bank, then to
such Lenders and the Issuing Bank as their interests may appear.  Any payment made by a Lender pursuant to this
paragraph to reimburse the Issuing Bank for any LC Disbursement (other than the
funding of ABR Loans or a Swingline Loan as contemplated above) shall not
constitute a Loan and shall not relieve the Borrowers of their obligation to
reimburse such LC Disbursement.

 43
 

(f)            Obligations
Absolute.  The Borrowers’ joint and
several obligation to reimburse LC Disbursements as provided in paragraph (e)
of this Section shall be absolute, unconditional and irrevocable, and shall be
performed strictly in accordance with the terms of this Agreement under any and
all circumstances whatsoever and irrespective of (i) any lack of validity
or enforceability of any Letter of Credit or this Agreement, or any term or
provision therein, (ii) any draft or other document presented under a
Letter of Credit proving to be forged, fraudulent or invalid in any respect or
any statement therein being untrue or inaccurate in any respect, (iii) payment
by the Issuing Bank under a Letter of Credit against presentation of a draft or
other document that does not comply with the terms of such Letter of Credit, or
(iv) any other event or circumstance whatsoever, whether or not similar to
any of the foregoing, that might, but for the provisions of this Section,
constitute a legal or equitable discharge of, or provide a right of setoff
against, the Borrowers’ obligations hereunder. 
Neither the Administrative Agent, the Lenders nor the Issuing Bank, nor
any of their Related Parties, shall have any liability or responsibility by
reason of or in connection with the issuance or transfer of any Letter of
Credit or any payment or failure to make any payment thereunder (irrespective
of any of the circumstances referred to in the preceding sentence), or any
error, omission, interruption, loss or delay in transmission or delivery of any
draft, notice or other communication under or relating to any Letter of Credit
(including any document required to make a drawing thereunder), any error in
interpretation of technical terms or any consequence arising from causes beyond
the control of the Issuing Bank; provided that the foregoing shall not
be construed to excuse the Issuing Bank from liability to the Borrowers to the
extent of any direct damages (as opposed to consequential damages, claims in
respect of which are hereby waived by the Borrowers to the extent permitted by
applicable law) suffered by any Borrower that are caused by the Issuing Bank’s
failure to exercise care when determining whether drafts and other documents
presented under a Letter of Credit comply with the terms thereof.  The parties hereto expressly agree that, in
the absence of gross negligence or willful misconduct on the part of the
Issuing Bank (as finally determined by a court of competent jurisdiction), the
Issuing Bank shall be deemed to have exercised care in each such
determination.  In furtherance of the
foregoing and without limiting the generality thereof, the parties agree that,
with respect to documents presented which appear on their face to be in
substantial compliance with the terms of a Letter of Credit, the Issuing Bank
may, in its sole discretion, either accept and make payment upon such documents
without responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such
documents if such documents are not in strict compliance with the terms of such
Letter of Credit.

(g)           Disbursement
Procedures.  The Issuing Bank shall,
promptly following its receipt thereof, examine all documents purporting to
represent a demand for payment under a Letter of Credit.  The Issuing Bank shall promptly notify the
Administrative Agent and the applicable Borrower by telephone (confirmed by
facsimile) of such demand for payment and whether the Issuing Bank has made or
will make an LC Disbursement thereunder; provided that any failure to
give or delay in giving such notice shall not relieve the Borrowers of their
obligation to reimburse the Issuing Bank and the Lenders with respect to any
such LC Disbursement.

(h)           Interim
Interest.  If the Issuing Bank shall
make any LC Disbursement, then, unless the Borrowers shall reimburse such LC
Disbursement in full on the date such LC

 44
 

Disbursement is made, the unpaid amount thereof shall bear interest,
for each day from and including the date such LC Disbursement is made to but
excluding the date that the Borrowers reimburse such LC Disbursement, at the
rate per annum then applicable to ABR Loans; provided that, if the
Borrowers fail to reimburse such LC Disbursement when due pursuant to
paragraph (e) of this Section, then Section 2.13(d) shall
apply.  Interest accrued pursuant to this
paragraph shall be for the account of the Issuing Bank, except that interest
accrued on and after the date of payment by any Lender pursuant to
paragraph (e) of this Section to reimburse the Issuing Bank shall be for
the account of such Lender to the extent of such payment.

(i)            Replacement
of the Issuing Bank.  The Issuing
Bank may be replaced at any time by written agreement among the Borrower
Representative, the Administrative Agent, the replaced Issuing Bank and the
successor Issuing Bank.  The
Administrative Agent shall notify the Lenders of any such replacement of the Issuing
Bank.  At the time any such replacement
shall become effective, the Borrowers shall pay all unpaid fees accrued for the
account of the replaced Issuing Bank pursuant to Section 2.12(b).  From and after the effective date of any such
replacement, (i) the successor Issuing Bank shall have all the rights and
obligations of the Issuing Bank under this Agreement with respect to Letters of
Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank” shall be deemed to
refer to such successor or to any previous Issuing Bank, or to such successor
and all previous Issuing Banks, as the context shall require.  After the replacement of an Issuing Bank
hereunder, the replaced Issuing Bank shall remain a party hereto and shall
continue to have all the rights and obligations of an Issuing Bank under this
Agreement with respect to Letters of Credit issued by it prior to such
replacement, but shall not be required to issue additional Letters of Credit.

(j)            Cash
Collateralization.  If any Default
shall occur and be continuing, on the Business Day that the Borrower
Representative receives notice from the Administrative Agent or the
Required  Lenders (or, if the maturity of
the Loans has been accelerated, Lenders with LC Exposure representing greater
than 50% of the total LC Exposure) demanding the deposit of cash collateral
pursuant to this paragraph, the Borrowers shall deposit in an account with the
Administrative Agent, in the name of the Administrative Agent and for the
benefit of the Lenders (the “LC Collateral Account”),
an amount in cash equal to 105% of the LC Exposure as of such date plus accrued and unpaid interest thereon; provided
that the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable, without
demand or other notice of any kind, upon the occurrence of any Event of Default
with respect to any Borrower described in clause (h) or (i) of Article
VII.  Such deposit shall be held by
the Administrative Agent as collateral for the payment and performance of the
Secured Obligations.  The Administrative
Agent shall have exclusive dominion and control, including the exclusive right
of withdrawal, over such account and the Borrowers hereby grant the Administrative
Agent a security interest in the LC Collateral Account.  Other than any interest earned on the
investment of such deposits, which investments shall be made at the option and
sole discretion of the Administrative Agent and at the Borrowers’ risk and expense,
such deposits shall not bear interest. 
Interest or profits, if any, on such investments shall accumulate in
such account.  Moneys in such account
shall be applied by the Administrative Agent to reimburse the Issuing Bank for
LC Disbursements for which it has not been reimbursed and, to the extent not so
applied, shall be held for the satisfaction of the reimbursement obligations of
the Borrowers for the LC Exposure at such time or, if the maturity

 45
 

of the Loans has been accelerated (but subject to the consent of
Lenders with LC Exposure representing greater than 50% of the total LC
Exposure), be applied to satisfy other Secured Obligations.  If the Borrowers are required to provide an
amount of cash collateral hereunder as a result of the occurrence of a Default,
such amount (to the extent not applied as aforesaid) shall be returned to the
Borrowers within three Business Days after all such Defaults have been cured or
waived.

Section 2.07           Funding of Borrowings.  (a) Each Lender shall make each Loan to be
made by it hereunder on the proposed date thereof by wire transfer of immediately
available funds by 2:00 p.m., Chicago time, to the account of the
Administrative Agent most recently designated by it for such purpose by notice
to the Lenders in an amount equal to such Lender’s Applicable Percentage; provided
that, Swingline Loans shall be made as provided in Section 2.05.  The
Administrative Agent will make such Loans available to the Borrower
Representative by promptly crediting the amounts so received, in like funds, to
the Funding Account(s); provided that ABR Loans made to finance the
reimbursement of (i) an LC Disbursement as provided in Section 2.06(e)
shall be remitted by the Administrative Agent to the Issuing Bank and (ii) a
Protective Advance or an Overadvance shall be retained by the Administrative
Agent.

(b)           Unless
the Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing that such Lender will not make available to the
Administrative Agent such Lender’s share of such Borrowing, the Administrative
Agent may assume that such Lender has made such share available on such date in
accordance with paragraph (a) of this Section and may, in reliance upon such
assumption, make available to the applicable Borrower a corresponding
amount.  In such event, if a Lender has
not in fact made its share of the applicable Borrowing available to the
Administrative Agent, then the applicable Lender and the Borrowers severally agree
to pay to the Administrative Agent forthwith on demand such corresponding
amount with interest thereon, for each day from and including the date such
amount is made available to the applicable Borrower to but excluding the date
of payment to the Administrative Agent, at (i) in the case of such Lender,
the greater of the Federal Funds Effective Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation or (ii) in the case of the Borrowers, the interest rate
applicable to ABR Loans.  If such Lender
pays such amount to the Administrative Agent, then such amount shall constitute
such Lender’s Loan included in such Borrowing.

Section 2.08           Interest Elections.  (a) Each Borrowing initially shall be of
the Type specified in the applicable Borrowing Request and, in the case of a
Eurodollar Borrowing, shall have an initial Interest Period as specified in
such Borrowing Request.  Thereafter, the
Borrower Representative may elect to convert such Borrowing to a different Type
or to continue such Borrowing and, in the case of a Eurodollar Borrowing, may
elect Interest Periods therefor, all as provided in this Section.  The Borrower Representative may elect
different options with respect to different portions of the affected Borrowing,
in which case each such portion shall be allocated ratably among the Lenders
holding the Loans comprising such Borrowing, and the Loans comprising each such
portion shall be considered a separate Borrowing.  This Section shall not apply to Swingline
Borrowings, Overadvances or Protective Advances, which may not be converted or
continued.

 46
 

(b)           To
make an election pursuant to this Section, the Borrower Representative shall
notify the Administrative Agent of such election by telephone by the time that
a Borrowing Request would be required under Section 2.03 if the
Borrowers were requesting a Borrowing of the Type resulting from such election
to be made on the effective date of such election.  Each such telephonic Interest Election
Request shall be irrevocable and shall be confirmed promptly by hand delivery
or facsimile to the Administrative Agent of a written Interest Election Request
in a form approved by the Administrative Agent and signed by the Borrower
Representative.

(c)           Each
telephonic and written Interest Election Request shall specify the following
information in compliance with Section 2.02:

(i)            the
Borrower and the Borrowing to which such Interest Election Request applies and,
if different options are being elected with respect to different portions
thereof, the portions thereof to be allocated to each resulting Borrowing (in
which case the information to be specified pursuant to clauses (iii) and (iv)
below shall be specified for each resulting Borrowing);

(ii)           the
effective date of the election made pursuant to such Interest Election Request,
which shall be a Business Day;

(iii)          whether the resulting Borrowing is to be an
ABR Borrowing or a Eurodollar Borrowing; and

(iv)          if
the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a
period contemplated by the definition of the term “Interest
Period”.

If any such Interest Election Request requests a
Eurodollar Borrowing but does not specify an Interest Period, then the Borrowers
shall be deemed to have selected an Interest Period of one month’s duration.

(d)           Promptly
following receipt of an Interest Election Request, the Administrative Agent
shall advise each Lender of the details thereof and of such Lender’s portion of
each resulting Borrowing.

(e)           If
the Borrower Representative fails to deliver a timely Interest Election Request
with respect to a Eurodollar Borrowing prior to the end of the Interest Period
applicable thereto, then, unless such Borrowing is repaid as provided herein,
at the end of such Interest Period such Borrowing shall be converted to an ABR
Borrowing.  Notwithstanding any contrary
provision hereof, if a Default has occurred and is continuing and the
Administrative Agent, at the request of the Required Lenders, so notifies the
Borrower Representative, then, so long as a Default is continuing (i) no
outstanding Borrowing may be converted to or continued as a Eurodollar
Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be
converted to an ABR Borrowing at the end of the Interest Period applicable
thereto.

Section 2.09           Termination and Reduction of Commitments.  (a) Unless previously
terminated the Commitments shall terminate on the Maturity Date.

 47
 

(b)           The
Borrowers may at any time terminate the Commitments upon (i) the payment
in full of all outstanding Loans, together with accrued and unpaid interest
thereon and on any Letters of Credit, (ii) the cancellation and return of
all outstanding Letters of Credit (or alternatively, with respect to each such
Letter of Credit, the furnishing to the Administrative Agent of a cash deposit
(or at the discretion of the Administrative Agent a back up standby letter of
credit satisfactory to the Administrative Agent) equal to 105% of the LC
Exposure as of such date), (iii) payment in full of the accrued and unpaid
fees, and (iv) the payment in full of all reimbursable expenses and other
Obligations together with accrued and unpaid interest thereon.

(c)           The
Borrowers may from time to time reduce the Revolving Commitments; provided
that (i) each reduction of the Revolving Commitments shall be in an amount
that is an integral multiple of $10,000,000 and (ii) the Borrowers shall
not reduce the Revolving Commitments if, after giving effect to any concurrent
prepayment of the Loans in accordance with Section 2.10, the sum of the
Revolving Exposures would exceed (A) the lesser of the total Revolving
Commitments and the Borrowing Base, minus (B) the
Reserves.  In the event the sum of the
total unfunded Commitments plus the
aggregate principal amount (without duplication) of the Revolving Exposures and
other Loans outstanding at any time is reduced to $100,000,000 or less, the
Commitments shall terminate and all Obligations shall become immediately due
and payable in full.

(d)           The
Borrower Representative shall notify the Administrative Agent of any election
to terminate or reduce the Commitments under paragraph (b) or (c) of this
Section at least three Business Days prior to the effective date of such
termination or reduction, specifying such election and the effective date
thereof.  Promptly following receipt of
any notice, the Administrative Agent shall advise the Lenders of the contents
thereof.  Each notice delivered by the
Borrower Representative pursuant to this Section shall be irrevocable; provided
that a notice of termination of the Commitments delivered by the Borrower
Representative may state that such notice is conditioned upon the effectiveness
of other credit facilities, in which case such notice may be revoked by the
Borrower Representative (by notice to the Administrative Agent on or prior to
the specified effective date) if such condition is not satisfied.  Any termination or reduction of the
Commitments shall be permanent.  Each
reduction of the Commitments shall be made ratably among the Lenders in
accordance with their respective Commitments.

Section 2.10           Repayment and Amortization of Loans;
Evidence of Debt.  (a) The
Borrowers hereby unconditionally promise to pay (i) to the Administrative
Agent for the account of each Lender the then unpaid principal amount of each
Loan on the Maturity Date, (ii) to the Administrative Agent the then
unpaid amount of each Protective Advance on the earlier of the Maturity Date
and demand by the Administrative Agent, and (iii) to the Swingline Lender
the then unpaid principal amount of each Swingline Loan on the earlier of the
Maturity Date and the first date after such Swingline Loan is made that is the
15th or last day of a calendar month and is at least two Business Days after
such Swingline Loan is made; provided that on each date that a Loan is
made, the Borrowers shall repay all Swingline Loans then outstanding, and (iv)
to the Administrative Agent the then unpaid principal amount of each
Overadvance on the earlier of the Maturity Date, demand by the Administrative
Agent and the 30th day after such Overadvance is made.

 48
 

(b)           At
all times that full cash dominion is in effect pursuant to Section 7.3 of the
Security Agreement, on each Business Day, the Administrative Agent shall apply
all funds credited to the Collection Account the previous Business Day (whether
or not immediately available) first to prepay any Protective Advances
and Overadvances that may be outstanding, pro rata, and second to prepay
the Loans (including Swing Line Loans) and to cash collateralize outstanding LC
Exposure.

(c)           Each
Lender shall maintain in accordance with its usual practice an account or
accounts evidencing the indebtedness of the Borrowers to such Lender resulting
from each Loan made by such Lender, including the amounts of principal and
interest payable and paid to such Lender from time to time hereunder.

(d)           The
Administrative Agent shall maintain accounts in which it shall record (i) the
amount of each Loan made hereunder, the Class and Type thereof and the Interest
Period applicable thereto, (ii) the amount of any principal or interest
due and payable or to become due and payable from the Borrowers to each Lender
hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender’s share thereof.

(e)           The
entries made in the accounts maintained pursuant to paragraph (c) or (d) of
this Section shall be prima  facie evidence of the existence and
amounts of the obligations recorded therein; provided that the failure
of any Lender or the Administrative Agent to maintain such accounts or any
error therein shall not in any manner affect the obligation of the Borrowers to
repay the Loans in accordance with the terms of this Agreement.

(f)            Any
Lender may request that Loans made by it be evidenced by a promissory
note.  In such event, the Borrowers shall
prepare, execute and deliver to such Lender a promissory note payable to the
order of such Lender (or, if requested by such Lender, to such Lender and its
registered assigns) and in a form approved by the Administrative Agent.  Thereafter, the Loans evidenced by such
promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 9.04) be represented by one or more
promissory notes in such form payable to the order of the payee named therein
(or, if such promissory note is a registered note, to such payee and its
registered assigns).

Section 2.11           Prepayment of Loans.  (a) The Borrowers shall have the right
at any time and from time to time to prepay any Borrowing in whole or in part,
subject to prior notice in accordance with paragraph (e) of this Section.

(b)           Except
for Overadvances permitted under Section
2.05, in the event and on such occasion that the total Revolving
Exposure exceeds (x) the lesser of (i) the aggregate Revolving
Commitments or (ii) the Borrowing Base, minus
(y) the Reserves, the Borrowers shall prepay the Loans, LC Exposure and/or
Swingline Loans in an aggregate amount equal to such excess.

(c)           In the event and on
each occasion that any Net Proceeds are received by or on behalf of any Loan
Party in respect of any Prepayment Event, the Borrowers shall, immediately
after such Net Proceeds are received by any Loan Party, prepay the Obligations
as

 49
 

set forth in Section 2.11(d) below in an aggregate amount equal
to 100% of such Net Proceeds, provided that, in the case of any event
described in clause (a) or (b) of the definition of the term “Prepayment Event”, if the Borrower
Representative shall deliver to the Administrative Agent a certificate of a
Financial Officer to the effect that the Loan Parties intend to apply the Net
Proceeds from such event (or a portion thereof specified in such certificate),
within 180 days after receipt of such Net Proceeds, to acquire (or replace
or rebuild) real property, equipment or other tangible assets (excluding
inventory) to be used in the business of the Loan Parties, and certifying that
no Default has occurred and is continuing, then either (i) so long as full
cash dominion is not in effect, no prepayment shall be required pursuant to
this paragraph in respect of the Net Proceeds specified in such certificate or (ii) if
full cash dominion is in effect, if the Net Proceeds specified in such
certificate are to be applied by (A) the Borrowers,
then such Net Proceeds shall be applied by the Administrative Agent to reduce
the outstanding principal balance of the Loans (without a permanent reduction
of the Revolving Commitment) and upon such application, the Administrative
Agent shall establish a Reserve against the Borrowing Base in an amount equal
to the amount of such proceeds so applied and (B) any Loan Party that is not a Borrower, then
such Net Proceeds shall be deposited in a cash collateral account and in either
case, thereafter, such funds shall be made available to the applicable Loan
Party as follows:

(1)           the
Borrower Representative shall request a Loan (specifying that the request is to
use Net Proceeds pursuant to this Section) or the applicable Loan Party shall
request a release from the cash collateral account be made in the amount
needed;

(2)           so
long as the conditions set forth in Section 4.02 have been met, the
Lenders shall make such Loan or the Administrative Agent shall release funds
from the cash collateral account; and

(3)           in the case of Net
Proceeds applied against the Loan, the Reserve established with respect to such
insurance proceeds shall be reduced by the amount of such Loan;

provided that to the extent of any such Net
Proceeds therefrom that have not been so applied by the end of such 180 day
period, at which time a prepayment shall be required in an amount equal to such
Net Proceeds that have not been so applied; provided, further
that the Borrowers shall not be permitted to make elections to use Net Proceeds
to acquire (or replace or rebuild) real property, equipment or other tangible
assets (excluding inventory) with respect to Net Proceeds in any fiscal year in
an aggregate amount in excess of $25,000,000.

(d)           All
such amounts pursuant to Section 2.11(c) (as to any insurance or
condemnation proceeds, to the extent they arise from casualties or losses to
Equipment, Fixtures and real property) shall be applied, first to prepay
any Protective Advances and Overadvances that may be outstanding, pro rata and second
to prepay the Loans (including Swing Line Loans) without a corresponding
reduction in the Revolving Commitment and to cash collateralize outstanding LC
Exposure.  All such amounts pursuant to Section
2.11(c) (as to any insurance or condemnation proceeds, to the extent they
arise from casualties or losses to cash or Inventory) shall be applied, first
to prepay any Protective Advances and Overadvances that may be outstanding, pro
rata, and second to prepay the Loans (including Swing Line Loans)
without a

 50
 

corresponding reduction in the Revolving Commitment and to cash
collateralize outstanding LC Exposure. 
If the precise amount of insurance or condemnation proceeds allocable to
Inventory as compared to Equipment, Fixtures and real property is not otherwise
determined, the allocation and application of those proceeds shall be
determined by the Administrative Agent, in its Permitted Discretion.

(e)           The
Borrower Representative shall notify the Administrative Agent (and, in the case
of prepayment of a Swingline Loan, the Swingline Lender) by telephone
(confirmed by facsimile) of any prepayment hereunder (i) in the case of
prepayment of a Eurodollar Borrowing, not later than 10:00 a.m., Chicago time,
three Business Days before the date of prepayment, or (ii) in the case of
prepayment of an ABR Borrowing, not later than 10:00 a.m., Chicago time, one
Business Day before the date of prepayment or (iii) in the case of
prepayment of a Swingline Loan, not later than 11:00 a.m., Chicago time, on the
date of prepayment.  Each such notice
shall be irrevocable and shall specify the prepayment date and the principal
amount of each Borrowing or portion thereof to be prepaid; provided
that, if a notice of prepayment is given in connection with a conditional
notice of termination of the Commitments as contemplated by Section 2.09,
then such notice of prepayment may be revoked if such notice of termination is
revoked in accordance with Section 2.09. 
Promptly following receipt of any such notice relating to a Borrowing,
the Administrative Agent shall advise the Lenders of the contents thereof.  Each partial prepayment of any Borrowing
shall be in an amount that would be permitted in the case of an advance of a Borrowing
of the same Type as provided in Section 2.02.  Each prepayment of a Borrowing shall be
applied ratably to the Loans included in the prepaid Borrowing.  Prepayments shall be accompanied by accrued
interest to the extent required by Section 2.13.

Section 2.12           Fees. 
(a) The Borrowers agree to pay to the Administrative Agent for the
account of each Lender a commitment fee, which shall accrue at the Applicable
Rate on the average daily amount of the Available Revolving Commitment of such
Lender during the period from and including the Effective Date to but excluding
the date on which the Lenders’ Revolving Commitments terminate.  Accrued commitment fees shall be payable in
arrears on the first day of each fiscal quarter and on the date on which the
Revolving Commitments terminate, commencing on the first such date to occur
after the date hereof.  All commitment
fees shall be computed on the basis of a year of 360 days and shall be payable
for the actual number of days elapsed.

(b)           The
Borrowers agree to pay (i) to the Administrative Agent for the account of
each Lender a participation fee with respect to its participations in Letters
of Credit, which shall accrue at the same Applicable Rate used to determine the
interest rate applicable to Eurodollar Loans on the average daily amount of
such Lender’s LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the
Effective Date to but excluding the later of the date on which such Lender’s
Revolving Commitment terminates and the date on which such Lender ceases to
have any LC Exposure, and (ii) to the Issuing Bank a fronting fee, which
shall accrue at the rate of 0.125% per annum on the average daily amount of the
LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements)
during the period from and including the Effective Date to but excluding the
later of the date of termination of the Revolving

 51
 

Commitments and the date on which there ceases to be any LC Exposure,
as well as the Issuing Bank’s standard fees with respect to the issuance,
amendment, renewal or extension of any Letter of Credit or processing of
drawings thereunder.  Participation fees
and fronting fees accrued through and including the last day of each calendar
month shall be payable on the first day of each calendar month following such
last day, commencing on the first such date to occur after the Effective Date; provided
that all such fees shall be payable on the date on which the Revolving
Commitments terminate and any such fees accruing after the date on which the
Commitments terminate shall be payable on demand.  Any other fees payable to the Issuing Bank
pursuant to this paragraph shall be payable within 10 days after demand.  All participation fees and fronting fees
shall be computed on the basis of a year of 360 days and shall be payable for
the actual number of days elapsed.

(c)           The
Borrowers agree to pay to the Administrative Agent, for its own account, fees
payable in the amounts and at the times separately agreed upon between the
Borrowers and the Administrative Agent.

(d)           All
fees payable hereunder shall be paid on the dates due, in immediately available
funds, to the Administrative Agent (or to the Issuing Bank, in the case of fees
payable to it) for distribution, in the case of commitment fees and
participation fees, to the Lenders.  Fees
paid shall not be refundable under any circumstances.

Section 2.13           Interest.  (a) The Loans comprising each
ABR Borrowing (including each Swingline Loan) shall bear interest at the
Alternate Base Rate plus the
Applicable Rate.

(b)           The
Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted
LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.

(c)           Each
Protective Advance and each Overadvance shall bear interest at the Alternate
Base Rate plus the Applicable Rate for Loans plus 2%.

(d)           Notwithstanding
the foregoing, during the occurrence and continuance of an Event of Default,
the Administrative Agent or the Required Lenders may, at their option, by
notice to the Borrower Representative (which notice may be revoked at the
option of the Required Lenders notwithstanding any provision of Section 9.02
requiring the consent of “each Lender affected thereby” for reductions in
interest rates), declare that (i) all Loans shall bear interest at 2% plus the rate otherwise applicable to such Loans as provided
in the preceding paragraphs of this Section or (ii) in the case of any
other amount outstanding hereunder, such amount shall accrue at 2% plus the rate applicable to such fee or other obligation as
provided hereunder.

(e)           Accrued
interest on each Loan (for ABR Loans, accrued through the last day of the prior
calendar month) shall be payable in arrears on each Interest Payment Date for
such Loan and upon termination of the Commitments; provided that (i) interest
accrued pursuant to paragraph (d) of this Section shall be payable on demand, (ii) in
the event of any repayment or prepayment of any Loan (other than a prepayment
of an ABR Loan prior to the end of the Availability Period), accrued interest
on the principal amount repaid or prepaid shall be payable

 52
 

on the date of such repayment or prepayment and (iii) in the event
of any conversion of any Eurodollar Loan prior to the end of the current
Interest Period therefor, accrued interest on such Loan shall be payable on the
effective date of such conversion.

(f)            All
interest hereunder shall be computed on the basis of a year of 360 days, except
that interest computed by reference to the Alternate Base Rate at times when
the Alternate Base Rate is based on the Prime Rate shall be computed on the
basis of a year of 365 days (or 366 days in a leap year), and in each case
shall be payable for the actual number of days elapsed.  The applicable Alternate Base Rate, Adjusted
LIBO Rate or LIBO Rate shall be determined by the Administrative Agent, and
such determination shall be conclusive absent manifest error.

Section 2.14           Alternate Rate of Interest.  If prior to the commencement of any Interest
Period for a Eurodollar Borrowing:

(a)           the
Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for
ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such
Interest Period; or

(b)           the
Administrative Agent is advised by the Required Lenders that the Adjusted LIBO
Rate or the LIBO Rate, as applicable, for such Interest Period will not
adequately and fairly reflect the cost to such Lenders (or Lender) of making or
maintaining their Loans (or its Loan) included in such Borrowing for such
Interest Period;

then the Administrative Agent shall give notice
thereof to the Borrower Representative and the Lenders by telephone or
facsimile as promptly as practicable thereafter and, until the Administrative
Agent notifies the Borrower Representative and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective,
and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such
Borrowing shall be made as an ABR Borrowing.

Section 2.15           Increased Costs.  (a) If any Change in Law shall:

(i)            impose,
modify or deem applicable any reserve, special deposit or similar requirement
against assets of, deposits with or for the account of, or credit extended by,
any Lender (except any such reserve requirement reflected in the Adjusted LIBO
Rate) or the Issuing Bank; or

(ii)           impose
on any Lender or the Issuing Bank or the London interbank market any other
condition affecting this Agreement or Eurodollar Loans made by such Lender or
any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to
increase the cost to such Lender of making or maintaining any Eurodollar Loan
(or of maintaining its obligation to make any such Loan) or to increase the
cost to such Lender or the Issuing Bank of participating in, issuing or
maintaining any Letter of Credit or to reduce the amount of any sum received or
receivable by such Lender or

 53

the Issuing Bank hereunder (whether of principal,
interest or otherwise), then the Borrowers will pay to such Lender or the
Issuing Bank, as the case may be, such additional amount or amounts as will
compensate such Lender or the Issuing Bank, as the case may be, for such
additional costs incurred or reduction suffered.

(b)           If
any Lender or the Issuing Bank determines that any Change in Law regarding
capital requirements has or would have the effect of reducing the rate of
return on such Lender’s or the Issuing Bank’s capital or on the capital of such
Lender’s or the Issuing Bank’s holding company, if any, as a consequence of
this Agreement or the Loans made by, or participations in Letters of Credit
held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a
level below that which such Lender or the Issuing Bank or such Lender’s or the
Issuing Bank’s holding company could have achieved but for such Change in Law
(taking into consideration such Lender’s or the Issuing Bank’s policies and the
policies of such Lender’s or the Issuing Bank’s holding company with respect to
capital adequacy), then from time to time the Borrowers will pay to such Lender
or the Issuing Bank, as the case may be, such additional amount or amounts as
will compensate such Lender or the Issuing Bank or such Lender’s or the Issuing
Bank’s holding company for any such reduction suffered.

(c)           A
certificate of a Lender or the Issuing Bank setting forth the amount or amounts
necessary to compensate such Lender or the Issuing Bank or its holding company,
as the case may be, as specified in paragraph (a) or (b) of this Section
shall be delivered to the Borrower Representative and shall be conclusive
absent manifest error.  The Borrowers
shall pay such Lender or the Issuing Bank, as the case may be, the amount shown
as due on any such certificate within 10 days after receipt thereof.

(d)           Failure
or delay on the part of any Lender or the Issuing Bank to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s or the
Issuing Bank’s right to demand such compensation; provided that the
Borrowers shall not be required to compensate a Lender or the Issuing Bank
pursuant to this Section for any increased costs or reductions incurred more
than 180 days prior to the date that such Lender or the Issuing Bank, as the
case may be, notifies the Borrower Representative of the Change in Law giving
rise to such increased costs or reductions and of such Lender’s or the Issuing
Bank’s intention to claim compensation therefor; provided  further
that, if the Change in Law giving rise to such increased costs or reductions is
retroactive, then the 180-day period referred to above shall be extended to
include the period of retroactive effect thereof.

Section 2.16           Break Funding Payments.  In the event of (a) the payment of any
principal of any Eurodollar Loan other than on the last day of an Interest
Period applicable thereto (including as a result of an Event of Default), (b) the
conversion of any Eurodollar Loan other than on the last day of the Interest
Period applicable thereto, (c) the failure to borrow, convert, continue or
prepay any Eurodollar Loan on the date specified in any notice delivered
pursuant hereto (regardless of whether such notice may be revoked under Section
2.09(d) and is revoked in accordance therewith), or (d) the assignment
of any Eurodollar Loan other than on the last day of the Interest Period
applicable thereto as a result of a request by the Borrower Representative
pursuant to Section 2.19, then, in any such event, the Borrowers shall
compensate each Lender for the loss, cost and expense attributable to such
event.  In the case of a Eurodollar Loan,
such loss, cost or expense to any Lender shall be deemed to include an amount
determined by such

 54
 

Lender to be the excess, if any, of (i) the amount of interest
which would have accrued on the principal amount of such Loan had such event
not occurred, at the Adjusted LIBO Rate that would have been applicable to such
Loan, for the period from the date of such event to the last day of the then
current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period
for such Loan), over (ii) the
amount of interest which would accrue on such principal amount for such period
at the interest rate which such Lender would bid were it to bid, at the
commencement of such period, for dollar deposits of a comparable amount and
period from other banks in the eurodollar market.  A certificate of any Lender setting forth any
amount or amounts that such Lender is entitled to receive pursuant to this
Section shall be delivered to the Borrower Representative and shall be
conclusive absent manifest error.  The
Borrowers shall pay such Lender the amount shown as due on any such certificate
within 10 days after receipt thereof.

Section 2.17           Taxes.  (a) Any and all payments by or on
account of any obligation of the Borrowers hereunder shall be made free and
clear of and without deduction for any Indemnified Taxes or Other Taxes; provided
that if the Borrowers shall be required to deduct any Indemnified Taxes or
Other Taxes from such payments, then (i) the sum payable shall be
increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section) the
Administrative Agent, Lender or Issuing Bank (as the case may be) receives an
amount equal to the sum it would have received had no such deductions been
made, (ii) the Borrowers shall make such deductions and (iii) the
Borrowers shall pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

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

(c)           The
Borrowers shall jointly and severally indemnify the Administrative Agent, each
Lender and the Issuing Bank, within 10 days after written demand therefor, for
the full amount of any Indemnified Taxes or Other Taxes paid by the
Administrative Agent, such Lender or the Issuing Bank, as the case may be, on
or with respect to any payment by or on account of any obligation of the
Borrowers hereunder (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section) and any
penalties, interest and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such
payment or liability delivered to the Borrower Representative by a Lender or
the Issuing Bank, or by the Administrative Agent on its own behalf or on behalf
of a Lender or the Issuing Bank, shall be conclusive absent manifest error.

(d)           As
soon as practicable after any payment of Indemnified Taxes or Other Taxes by
the Borrowers to a Governmental Authority, the Borrower Representative 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.

 55
 

(e)           Any
Foreign Lender that is entitled to an exemption from or reduction of
withholding tax under the law of the jurisdiction in which any Borrower is
located, or any treaty to which such jurisdiction is a party, with respect to
payments under this Agreement shall deliver to the Borrower Representative
(with a copy to the Administrative Agent), at the time or times prescribed by
applicable law, such properly completed and executed documentation prescribed
by applicable law or reasonably requested by the Borrower Representative as
will permit such payments to be made without withholding or at a reduced rate.

(f)            If the Administrative Agent or a Lender
determines, in its sole discretion, that it has received a refund of any Taxes
or Other Taxes as to which it has been indemnified by the Borrowers or with
respect to which the Borrowers have paid additional amounts pursuant to this Section
2.17, it shall pay over such refund to the Borrowers (but only to the
extent of indemnity payments made, or additional amounts paid, by the Borrowers
under this Section 2.17 with respect to the Taxes or Other Taxes giving
rise to such refund), net of all out-of-pocket expenses of the Administrative
Agent or such Lender and without interest (other than any interest paid by the
relevant Governmental Authority with respect to such refund); provided, that
the Borrowers, upon the request of the Administrative Agent or such Lender,
agree to repay the amount paid over to the Borrowers (plus
any penalties, interest or other charges imposed by the relevant Governmental
Authority) to the Administrative Agent or such Lender in the event the
Administrative Agent or such Lender is required to repay such refund to such
Governmental Authority. This Section shall not be construed to require the
Administrative Agent or any Lender to make available its tax returns (or any
other information relating to its taxes which it deems confidential) to the
Borrowers or any other Person.

Section 2.18           Payments Generally; Allocation of
Proceeds; Sharing of Set-offs.  (a) The
Borrowers shall make each payment required to be made by them hereunder
(whether of principal, interest, fees or reimbursement of LC Disbursements, or
of amounts payable under Section 2.15, Section 2.16 or Section 2.17, or otherwise) prior to
2:00 p.m., Chicago time, on the date when due, in immediately available funds,
without set-off or counterclaim.  Any
amounts received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon.  All such payments shall be made to the
Administrative Agent at its offices at 120 South LaSalle Street, 8th Floor, Mail Code IL1-1190, Chicago,
Illinois  60603, except payments to be
made directly to the Issuing Bank or Swingline Lender as expressly provided
herein and except that payments pursuant to Section 2.15, Section
2.16, Section 2.17 and Section
9.03 shall be made directly to the Persons entitled thereto.  The Administrative Agent shall distribute any
such payments received by it for the account of any other Person to the
appropriate recipient promptly following receipt thereof.  If any payment hereunder shall be due on a
day that is not a Business Day, the date for payment shall be extended to the
next succeeding Business Day, and, in the case of any payment accruing
interest, interest thereon shall be payable for the period of such
extension.  All payments hereunder shall
be made in dollars.  At all times that
full cash dominion is in effect pursuant to Section 7.3 of the Security
Agreement, solely for purposes of determining the amount of Loans available for
borrowing purposes, checks (in addition to immediately available funds applied
pursuant to Section 2.10(b)) from collections of items of payment and proceeds
of any Collateral shall be applied in whole or in part against the Obligations,
on the Business Day after receipt, subject to actual collection.

 56
 

(b)           Any
proceeds of Collateral received by the Administrative Agent (i) not
constituting either (A) a specific payment of principal, interest, fees or
other sum payable under the Loan Documents (which shall be applied as specified
by the terms of the Loan Documents), (B) a mandatory prepayment (which
shall be applied in accordance with Section 2.11) or (C) amounts to
be applied from the Collection Account when full cash dominion is in effect
(which shall be applied in accordance with Section 2.10(b)) or (ii) after
an Event of Default has occurred and is continuing and the Administrative Agent
so elects or the Required Lenders so direct, such funds shall be applied
ratably first, to pay any fees,
indemnities, or expense reimbursements including amounts then due to the
Administrative Agent and the Issuing Bank from the Borrowers (other than in
connection with Banking Services or Swap Obligations), second, to pay
any fees or expense reimbursements then due to the Lenders from the Borrowers
(other than in connection with Banking Services or Swap Obligations), third,
to pay interest due in respect of the Overadvances and Protective Advances, fourth,
to pay the principal of the Overadvances and Protective Advances, fifth,
to pay interest then due and payable on the Loans (other than the Overadvances
and Protective Advances) ratably, sixth, to prepay principal on the Loans
(other than the Overadvances and Protective Advances) and unreimbursed LC
Disbursements ratably, seventh, to pay an amount to the Administrative
Agent equal to one hundred five percent (105%) of the aggregate undrawn face
amount of all outstanding Letters of Credit and the aggregate amount of any
unpaid LC Disbursements, to be held as cash collateral for such Obligations, eighth,
to payment of any amounts owing with respect to Banking Services and Swap
Obligations (excluding any amounts relating to Secured Obligations under
any Banking Services or Swap Agreements owed to any Non-Reporting Lender), ninth,
to the payment of any Secured Obligations under any Banking Services or Swap
Agreements owed to any Non-Reporting Lender, and tenth, to the payment of any other Secured
Obligation due to the Administrative Agent or any Lender by the Borrowers.
 Notwithstanding
anything to the contrary contained in this Agreement, unless so directed by the
Borrower Representative, or unless a Default is in existence, neither the
Administrative Agent nor any Lender shall apply any payment which it receives
to any Eurodollar Loan of a Class, except (A) on the expiration date of the Interest Period
applicable to any such Eurodollar Loan or (B) in the event, and
only to the extent, that there are no outstanding ABR Loans of the same Class
and, in any such event, the Borrowers shall pay the break funding payment
required in accordance with Section 2.16. The Administrative Agent and the Lenders
shall have the continuing and exclusive right to apply and reverse and reapply
any and all such proceeds and payments to any portion of the Secured
Obligations.

(c)           At
the election of the Administrative Agent, all payments of principal, interest,
LC Disbursements, fees, premiums, reimbursable expenses (including, without
limitation, all reimbursement for fees and expenses pursuant to Section 9.03),
and other sums payable under the Loan Documents, may be paid from the proceeds
of Borrowings made hereunder whether made following a request by the Borrower
Representative pursuant to Section 2.03 or a deemed request as provided
in this Section or may be deducted from any deposit account of any Borrower
maintained with the Administrative Agent. 
Each Borrower hereby irrevocably authorizes (i) the Administrative
Agent to make a Borrowing for the purpose of paying each payment of principal,
interest and fees as it becomes due hereunder or any other amount due under the
Loan Documents and agrees that all such amounts charged shall constitute Loans
(including Swingline Loans and Overadvances, but such a Borrowing may only
constitute

 57
 

a Protective Advance if it is to reimburse costs, fees and expenses as
described in Section 9.03) and that all such Borrowings shall be deemed
to have been requested pursuant to Section 2.03, Section 2.04, Section
2.05, as applicable and (ii) the Administrative Agent to charge any
deposit account of any Borrower maintained with the Administrative Agent for
each payment of principal, interest and fees as it becomes due hereunder or any
other amount due under the Loan Documents.

(d)           If
any Lender shall, by exercising any right of set-off or counterclaim or
otherwise, obtain payment in respect of any principal of or interest on any of
its Loans or participations in LC Disbursements resulting in such Lender
receiving payment of a greater proportion of the aggregate amount of its Loans
and participations in LC Disbursements and accrued interest thereon than the
proportion received by any other Lender, then the Lender receiving such greater
proportion shall purchase (for cash at face value) participations in the Loans
and participations in LC Disbursements of other Lenders to the extent necessary
so that the benefit of all such payments shall be shared by the Lenders ratably
in accordance with the aggregate amount of principal of and accrued interest on
their respective Loans and participations in LC Disbursements; provided
that (i) if any such participations are purchased and all or any portion
of the payment giving rise thereto is recovered, such participations shall be
rescinded and the purchase price restored to the extent of such recovery,
without interest, and (ii) the provisions of this paragraph shall not be
construed to apply to any payment made by the Borrowers pursuant to and in
accordance with the express terms of this Agreement or any payment obtained by
a Lender as consideration for the assignment of or sale of a participation in
any of its Loans or participations in LC Disbursements to any assignee or
participant, other than to the Borrowers or any Subsidiary or Affiliate thereof
(as to which the provisions of this paragraph shall apply).  Each Borrower consents to the foregoing and
agrees, to the extent it may effectively do so under applicable law, that any
Lender acquiring a participation pursuant to the foregoing arrangements may
exercise against such Borrower rights of set-off and counterclaim with respect
to such participation as fully as if such Lender were a direct creditor of such
Borrower in the amount of such participation.

(e)           Unless
the Administrative Agent shall have received notice from the Borrower
Representative prior to the date on which any payment is due to the
Administrative Agent for the account of the Lenders or the Issuing Bank
hereunder that the Borrowers will not make such payment, the Administrative
Agent may assume that the Borrowers have made such payment on such date in
accordance herewith and may, in reliance upon such assumption, distribute to
the Lenders or the Issuing Bank, as the case may be, the amount due.  In such event, if the Borrowers have not in
fact made such payment, then each of the Lenders or the Issuing Bank, as the
case may be, severally agrees to repay to the Administrative Agent forthwith on
demand the amount so distributed to such Lender or Issuing Bank 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 the Federal Funds Effective Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation.

(f)            If
any Lender shall fail to make any payment required to be made by it hereunder, then the Administrative
Agent may, in its discretion (notwithstanding any contrary

 58
 

provision hereof), apply any amounts thereafter received by the
Administrative Agent for the account of such Lender to satisfy such Lender’s
obligations hereunder until all such unsatisfied obligations are fully paid.

Section 2.19           Mitigation Obligations; Replacement of
Lenders.  If any Lender requests
compensation under Section 2.15, or if the Borrowers are required
to pay any additional amount to any Lender or any Governmental Authority for
the account of any Lender pursuant to Section
2.17, then:

(a)           such
Lender shall use reasonable efforts to designate a different lending office for
funding or booking its Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the judgment
of such Lender, such designation or assignment (i) would eliminate or
reduce amounts payable pursuant to Section 2.15 or Section 2.17, as the case may be, in
the future and (ii) would not subject such Lender to any unreimbursed cost
or expense and would not otherwise be disadvantageous to such Lender  (and the Borrowers hereby agree to pay all
reasonable costs and expenses incurred by any Lender in connection with any
such designation or assignment);

(b)           the
Borrowers may, at their sole expense and effort, require such Lender or any
Lender that defaults in its obligation to fund Loans hereunder (herein, a “Departing Lender”), upon notice to
the Departing Lender and the Administrative Agent, to assign and delegate,
without recourse (in accordance with and subject to the restrictions contained
in Section 9.04), all its interests, rights and obligations under this
Agreement to an assignee that shall assume such obligations (which assignee may
be another Lender, if a Lender accepts such assignment); provided that (i) the
Borrowers shall have received the prior written consent of the Administrative
Agent (and if a Revolving Commitment is being assigned, the Issuing Bank),
which consent shall not unreasonably be withheld, (ii) the Departing
Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and participations in LC Disbursements and Swingline
Loans, accrued interest thereon, accrued fees and all other amounts payable to
it hereunder, from the assignee (to the extent of such outstanding principal
and accrued interest and fees) or the Borrowers (in the case of all other
amounts) and (iii) in the case of any such assignment resulting from a
claim for compensation under Section 2.15 or payments required to be
made pursuant to Section 2.17,
such assignment will result in a reduction in such compensation or
payments.  A Departing Lender shall not
be required to make any such assignment and delegation if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the
Borrowers to require such assignment and delegation cease to apply.

Section 2.20           Returned Payments.  If after receipt of any payment which is
applied to the payment of all or any part of the Obligations, the
Administrative Agent or any Lender is for any reason compelled to surrender
such payment or proceeds to any Person because such payment or application of
proceeds is invalidated, declared fraudulent, set aside, determined to be void
or voidable as a preference, impermissible setoff, or a diversion of trust
funds, or for any other reason, then the Obligations or part thereof intended
to be satisfied shall be revived and continued and this Agreement shall
continue in full force as if such payment or proceeds had not been received by
the Administrative Agent or such Lender. 
The provisions of this Section 2.20 shall be and remain effective
notwithstanding any contrary action which may have been taken by

 59
 

the Administrative Agent or any Lender in reliance upon such payment or
application of proceeds.  The provisions
of this Section 2.20 shall survive the termination of this Agreement.

Section 2.21           Increase of Commitments.

(a)           If
no Default or Event of Default shall have occurred and be continuing and no
event, change or condition has occurred that has had, or could reasonably be
expected to have, a Material Adverse Effect, since the Effective Date, the
Borrowers may at any time from time to time prior to the Maturity Date request
one or more increases of the Revolving Commitments by notice to the
Administrative Agent in writing of the amount of such proposed increase (each
such notice, a “Commitment Increase Notice”);
provided, however, that, the Revolving Commitment of any Lender may not be
increased without such Lender’s consent, the aggregate amount the Revolving
Commitments as so increased shall not exceed $300,000,000, and the Revolving
Commitments may not be increased without the consent of the Administrative
Agent (which consent shall not be unreasonably withheld or delayed) and further
provided that the aggregate amount of such increases during the term of this
Agreement shall not exceed $100,000,000.

(b)           The
Borrowers may, in their sole discretion, but with the consent of the
Administrative Agent as to any Person that is not at such time a Lender (which
consent shall not be unreasonably withheld or delayed), offer to any existing
Lender or to one or more additional banks or financial institutions the
opportunity to participate in all or a portion of the increased Revolving Commitments,
by notifying the Administrative Agent; provided, that the Revolving Commitment
of any New Lender shall not be less than $15,000,000 and shall be in an
integral multiple of $5,000,000. 
Promptly and in any event within five (5) Business Days after receipt of
notice from the Borrowers of their desire to offer such commitments to certain
existing Lenders or to the additional banks or financial institutions
identified therein, the Administrative Agent shall notify such proposed lenders
of the opportunity to participate in all or a portion of the increased
Revolving Commitments. Any agreement by a Lender to increase its Revolving
Commitment shall be irrevocable.

(c)           Any
existing Lender that accepts the Borrowers’ offer to increase its Revolving
Commitment shall execute a Commitment Increase Agreement with the Borrowers and
the Administrative Agent, whereupon such Lender shall be bound by, and entitled
to the benefits of, this Agreement with respect the full amount of its
Revolving Commitment as so increased.

(d)           Any
additional bank or financial institution which is not an existing Lender and
which accepts the Borrowers’ offer to participate in the increased Revolving
Commitments shall execute and deliver to the Administrative Agent and the
Borrowers a New Lender Agreement setting forth its Revolving Commitment
(subject to the limitations on the amounts thereof set forth herein), and upon
the effectiveness of such New Lender Agreement such bank or financial
institution (a “New Lender”)
shall become a Lender for all purposes and to the same extent as if originally
a party hereto and shall be bound by and entitled to the benefits of this
Agreement, and the signature pages hereof shall be deemed to be amended to add
the name of such New Lender.

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(e)           Upon
any increase in the Revolving Commitments pursuant to this Section 2.21, the
Commitment Schedule shall be deemed amended to reflect the Revolving Commitment
of each Lender (including any New Lender) as thereby increased.

ARTICLE III

Representations and Warranties

Each Loan Party represents and warrants to the Lenders
that:

Section 3.01           Organization; Powers.  Each of the Loan Parties and each of its
Subsidiaries is duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization, has all requisite power and
authority to carry on its business as now conducted and, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business
in, and is in good standing in, every jurisdiction where such qualification is
required.

Section 3.02           Authorization; Enforceability.  The Transactions are within each Loan Party’s
organizational powers and have been duly authorized by all necessary organizational
actions and, if required, actions by equity holders.  The Loan Documents to which each Loan Party
is a party have been duly executed and delivered by such Loan Party and
constitute a legal, valid and binding obligation of such Loan Party, enforceable
in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors’ rights generally
and subject to general principles of equity, regardless of whether considered
in a proceeding in equity or at law.

Section 3.03           Governmental Approvals; No Conflicts.
 The Transactions (a) do not require
any consent or approval of, registration or filing with, or any other action
by, any Governmental Authority, except such as have been obtained or made and
are in full force and effect and except for filings necessary to perfect Liens
created pursuant to the Loan Documents, (b) will not violate any
Requirement of Law applicable to any Loan Party or any of its Subsidiaries, (c) will
not violate or result in a default under any indenture, agreement or other
instrument binding upon any Loan Party or any of its Subsidiaries or its
assets, or give rise to a right thereunder to require any payment to be made by
any Loan Party or any of its Subsidiaries, and (d) will not result in the
creation or imposition of any Lien on any asset of any Loan Party or any of its
Subsidiaries, except Liens created pursuant to the Loan Documents.

Section 3.04           Financial Condition; No Material Adverse
Change.  (a) Holdings has heretofore
furnished to the Lenders its consolidated balance sheet and statements of
income, stockholders equity and cash flows (i) as of and for the fiscal
year ended December 31, 2006, reported on by Ernst & Young LLP, independent
public accountants, and (ii) as of and for the fiscal month and the
portion of the fiscal year ended February 28, 2007, certified by its chief accounting
and compliance officer.  Such financial
statements present fairly, in all material respects, the financial position and
results of operations and cash flows of Holdings and its consolidated
Subsidiaries as of such dates and for such periods in accordance with GAAP,
subject to year-end audit adjustments and the absence of footnotes in the case
of the statements referred to in clause (ii) above.

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(b)           No
event, change or condition has occurred that has had, or could reasonably be
expected to have, a Material Adverse Effect, since December 31, 2006.

Section 3.05           Properties.  (a) As of the date of this Agreement, Schedule
3.05 sets forth the address of each parcel of real property that is owned
or leased by each Loan Party and its Subsidiaries.  Each of such leases and subleases is valid
and enforceable in accordance with its terms and is in full force and effect,
and no default by any party to any material lease or sublease exists.  Each of the Loan Parties and its Subsidiaries
has good and indefeasible title to, or valid leasehold interests in, all its
real and personal property, free of all Liens other than those permitted by Section
6.02.

(b)           Each
Loan Party and its Subsidiaries owns, or is licensed to use, all trademarks,
tradenames, copyrights, patents and other intellectual property necessary to its
business as currently conducted, a correct and complete list of which, as of
the date of this Agreement, is set forth on Schedule 3.05, and the use
thereof by the Loan Parties and its Subsidiaries does not infringe in any
material respect upon the rights of any other Person, and the Loan Parties’
rights thereto are not subject to any licensing agreement or similar arrangement.

Section 3.06           Litigation and Environmental Matters.
 (a) There are no actions, suits or
proceedings by or before any arbitrator or Governmental Authority pending
against or, to the knowledge of any Loan Party, threatened against or affecting,
the Loan Parties or any of their Subsidiaries (i) as to which there is a
reasonable possibility of an adverse determination and that, if adversely
determined, could reasonably be expected, individually or in the aggregate, to
result in a Material Adverse Effect (other than the Disclosed Matters) or (ii) that
involve this Agreement or the Transactions.

(b)           Except
for the Disclosed Matters (i) as of the Effective Date, no Loan Party nor
any of its Subsidiaries has received notice of any claim with respect to any
Environmental Liability or knows of any basis for any material Environmental
Liability and (ii) and except with respect to any other matters that,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect, no Loan Party nor any of its Subsidiaries (A) has
failed to comply with any Environmental Law or to obtain, maintain or comply
with any permit, license or other approval required under any Environmental Law
or (B) has become subject to any Environmental Liability.

(c)           Since
the date of this Agreement, there has been no change in the status of the
Disclosed Matters that, individually or in the aggregate, has resulted in, or
materially increased the likelihood of, a Material Adverse Effect.

Section 3.07           Compliance with Laws and Agreements.  Each Loan Party and its Subsidiaries is in
compliance with all Requirements of Law applicable to it or its property and
all indentures, agreements and other instruments binding upon it or its property,
except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.  No Default has occurred and is continuing.

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Section 3.08           Investment Company Status.  No Loan Party nor any of its Subsidiaries is
an “investment company” as defined in,
or subject to regulation under, the Investment Company Act of 1940.

Section 3.09           Taxes.  Each Loan Party and its Subsidiaries has
timely filed or caused to be filed all Tax returns and reports required to have
been filed and has paid or caused to be paid all Taxes required to have been
paid by it, except Taxes that are being contested in good faith by appropriate
proceedings and for which such Loan Party or such Subsidiary, as applicable,
has set aside on its books adequate reserves. 
No tax liens have been filed and no claims are being asserted with
respect to any such taxes.

Section 3.10           ERISA.  No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events
for which liability is reasonably expected to occur, could reasonably be
expected to result in a Material Adverse Effect.  The present value of all accumulated benefit
obligations under each Plan (based on the assumptions used for purposes of
Statement of Financial Accounting Standards No. 87) did not, as of the
date of the most recent financial statements reflecting such amounts, exceed
the fair market value of the assets of such Plan.

Section 3.11           Disclosure.  The Loan Parties have disclosed to the
Lenders all agreements, instruments and corporate or other restrictions to
which it or any Subsidiary is subject, and all other matters known to it, that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect.  Neither the
Information Memorandum nor any of the other reports, financial statements,
certificates or other information furnished by or on behalf of any Loan Party
to the Administrative Agent or any Lender in connection with the negotiation of
this Agreement or any other Loan Document (as modified or supplemented by other
information so furnished) contains any material misstatement of fact or omits
to state any material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided
that, with respect to projected financial information, the Loan Parties
represent only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time delivered and, if such
projected financial information was delivered prior to the Effective Date, as
of the Effective Date.

Section 3.12           Material Agreements.  All material agreements and contracts to
which any Loan Party or any Subsidiary is a party or is bound as of the date of
this Agreement are listed on Schedule 3.12. 
No Loan Party nor any Subsidiary is in default in the performance,
observance or fulfillment of any of the obligations, covenants or conditions
contained in (i) any material agreement to which it is a party or (ii) any
agreement or instrument evidencing or governing Indebtedness.

Section 3.13           Solvency.  (a) Immediately after the consummation of the
Transactions to occur on the Effective Date, (i) the fair value of the
assets of each Loan Party, at a fair valuation, will exceed its debts and
liabilities, subordinated, contingent or otherwise; (ii) the present fair
saleable value of the property of each Loan Party will be greater than the
amount that will be required to pay the probable liability of its debts and
other liabilities, subordinated, contingent or otherwise, as such debts and
other liabilities become absolute and matured; (iii) each Loan Party will
be able to pay its debts and liabilities, subordinated, contingent or otherwise,
as such debts

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and liabilities become absolute and matured; and (iv) each Loan
Party will not have unreasonably small capital with which to conduct the
business in which it is engaged as such business is now conducted and is
proposed to be conducted after the Effective Date.

(b)           No
Loan Party intends to, or will permit any of its Subsidiaries to, and no Loan
Party believes that it or any of its Subsidiaries will, incur debts beyond its
ability to pay such debts as they mature, taking into account the timing of and
amounts of cash to be received by it or any such Subsidiary and the timing of
the amounts of cash to be payable on or in respect of its Indebtedness or the
Indebtedness of any such Subsidiary.

Section 3.14           Insurance.  Schedule 3.14 sets forth a description
of all insurance maintained by or on behalf of the Loan Parties and the
Subsidiaries as of the Effective Date. 
As of the Effective Date, all premiums in respect of such insurance have
been paid.  The Loan Parties believe that
the insurance maintained by or on behalf of the Loan Parties and the
Subsidiaries is adequate.

Section 3.15           Capitalization and Subsidiaries.  Schedule 3.15 sets forth (a) a
correct and complete list of the name and relationship to Holdings of each and
all of Holdings’ Subsidiaries, (b) a true and complete listing of each
class of each of Holdings’ Subsidiaries’ authorized Equity Interests, of which
all of such issued shares are validly issued, outstanding, fully paid and
non-assessable, and owned beneficially and of record by the Persons identified
on Schedule 3.15, and (c) the type of entity of Holdings and each
of its Subsidiaries.  All of the issued
and outstanding Equity Interests owned by any Loan Party has been (to the
extent such concepts are relevant with respect to such ownership interests)
duly authorized and issued and is fully paid and non-assessable.

Section 3.16           Security Interest in Collateral.  The provisions of this Agreement and the
other Loan Documents create legal and valid Liens on all the Collateral in
favor of the Administrative Agent, for the benefit of the Administrative Agent
and the Lenders, and such Liens constitute perfected and continuing Liens on
the Collateral, securing the Secured Obligations, enforceable against the
applicable Loan Party and all third parties, and having priority over all other
Liens on the Collateral except in the case of (a) Permitted Encumbrances,
to the extent any such Permitted Encumbrances would have priority over the
Liens in favor of the Administrative Agent pursuant to any applicable law or
agreement and (b) Liens perfected only by possession (including possession
of any certificate of title) to the extent the Administrative Agent has not
obtained or does not maintain possession of such Collateral.

Section 3.17           Employment Matters.  As of the Effective Date, there are no
strikes, lockouts or slowdowns against any Loan Party or any Subsidiary pending
or, to the knowledge of the Borrowers, threatened.  The hours worked by and payments made to
employees of the Loan Parties and the Subsidiaries have not been in violation
of the Fair Labor Standards Act or any other applicable Federal, state, local
or foreign law dealing with such matters. 
All payments due from any Loan Party or any Subsidiary, or for which any
claim may be made against any Loan Party or any Subsidiary, on account of wages
and employee health and welfare insurance and other benefits, have been paid or
accrued as a liability on the books of the Loan Party or such Subsidiary.

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Section 3.18           Common Enterprise.  The successful operation and condition of
each of the Loan Parties is dependent on the continued successful performance
of the functions of the group of the Loan Parties as a whole and the successful
operation of each of the Loan Parties is dependent on the successful
performance and operation of each other Loan Party.  Each Loan Party expects to derive benefit
(and its board of directors or other governing body has determined that it may
reasonably be expected to derive benefit), directly and indirectly, from (a) successful
operations of each of the other Loan Parties and (b) the credit extended
by the Lenders to the Borrowers hereunder, both in their separate capacities
and as members of the group of companies. 
Each Loan Party has determined that execution, delivery, and performance
of this Agreement and any other Loan Documents to be executed by such Loan
Party is within its purpose, will be of direct and indirect benefit to such
Loan Party, and is in its best interest.

Section 3.19           Terminals/Terminal Contracts.  Schedule 3.19 contains an accurate
list of all Terminals at which the Borrowers store or have an existing right to
store inventory as of the Effective Date. 
Schedule 3.19 contains an accurate list of the contracts
governing the Borrowers’ right to store Inventory at such Terminals as of the
Effective Date.  Except as disclosed on Schedule
3.19, no material rights or obligations of any party to any such contract
or agreement has been waived by any Loan Party as of the Effective Date.  No Loan Party is, and to each Loan Party’s
knowledge, no other party to any such contract or agreement is, in default of
its obligations or in breach of any representations or warranties made under
any Terminal contract or agreement to the extent that such default or breach
could reasonably be expected to have a Material Adverse Effect.  Each of the Terminal contracts and agreements
is a valid, binding and enforceable obligation of each party thereto in
accordance with its terms and is in full force and effect, except to the extent
any such contract and agreement  
terminates on its scheduled termination or expiration date in accordance
with its terms and   the termination or
non-validity of such contracts and agreements could not reasonably be expected
to have a Material Adverse Effect.

Section 3.20           Perfection Certificate; Schedules to
other Loan Documents.  All
information in the Perfection Certificate and each Perfection Certificate
Update and all information set forth in all disclosure schedules to each of the
Loan Documents is true, correct and complete. 
No Loan Party has filed a US federal income tax return or any other tax
return with a Governmental Authority under a name different in any respect from
the name of that Loan Party listed on the signature pages hereto or the prior
names of that Loan Party set forth in the Perfection Certificate.

Section 3.21           Motor Fuels, Liquor or Other Sales or
Excise Taxes.  As of the Effective
Date, the Borrowers have no liability to collect, remit or pay motor fuels,
liquor or other sales or excise taxes in respect of ethanol or other inventory
sold by the Borrowers to any Governmental Authority other than (a) motor fuels
taxes which must be collected and remitted by the Borrowers to the department
of revenue of various states in respect of ethanol inventory sold by the
Borrowers in or destined for such states and (b) feed excise taxes which must
be collected and remitted in respect of feed byproducts sold by the Borrowers,
under which liabilities in (a) and (b) above, in the aggregate, the monthly
payable is less than $2,5000,000 (none of which are past due).

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ARTICLE IV

Conditions

Section 4.01           Effective Date.  The obligations of the Lenders to make Loans
and of the Issuing Bank to issue Letters of Credit (exclusive of the Existing
Letter of Credit) hereunder shall not become effective until the date on which
each of the following conditions is satisfied (or waived in accordance with Section
9.02):

(a)           Credit
Agreement and Loan Documents.  The
Administrative Agent (or its counsel) shall have received (i) from each party
hereto either (A) a counterpart of this Agreement signed on behalf of such
party or (B) written evidence satisfactory to the Administrative Agent (which
may include facsimile or e-mail transmission of a signed signature page of this
Agreement) that such party has signed a counterpart of this Agreement and (ii)
duly executed copies of the Loan Documents and such other certificates,
documents, instruments and agreements as the Administrative Agent shall
reasonably request in connection with the transactions contemplated by this
Agreement and the other Loan Documents, including any promissory notes
requested by a Lender pursuant to Section 2.10 payable to the order of
each such requesting Lender and written opinions of each of Davis Polk &
Wardwell and Morris, Nichols, Arsht & Tunnell, each as counsel to the Loan
Parties, in each case addressed to the Administrative Agent, the Issuing Bank
and the Lenders in substantially the forms of Exhibit B-1 and Exhibit
B-2, respectively.

(b)           Financial
Statements and Projections.  The
Lenders shall have received (i) audited consolidated financial statements of
Holdings for the 2005 and 2006 fiscal years, (ii) unaudited interim
consolidated financial statements of Holdings and its consolidated Subsidiaries
for each fiscal quarter ended after the date of the latest applicable financial
statements delivered pursuant to clause (i) of this paragraph as to which such
financial statements are available, and such financial statements shall not, in
the reasonable judgment of the Administrative Agent, reflect any material
adverse change in the consolidated financial condition of Holdings and its
consolidated Subsidiaries, as reflected in the financial statements or
projections contained in the Confidential Information Memorandum and (iii) the
Borrowers’ most recent projected income statement, balance sheet and cash flows
for the fiscal years beginning with 2007 and ending with 2015 which shall be satisfactory
to Lenders

(c)           Closing
Certificates; Certified Certificate of Incorporation; Good Standing
Certificates.  The Administrative
Agent shall have received (i) a certificate of each Loan Party, dated the
Effective Date and executed by its secretary or assistant secretary, which
shall (A) certify the resolutions of its Board of Directors, members or other
body authorizing the execution, delivery and performance of the Loan Documents
to which it is a party, (B) identify by name and title and bear the signatures
of the Financial Officers and any other officers of such Loan Party authorized
to sign the Loan Documents to which it is a party, and (C) contain appropriate
attachments, including the certificate or articles of incorporation or
organization of each Loan Party certified by the relevant authority of the
jurisdiction of organization of such Loan Party and a true and correct copy of
its by-laws or operating, management or partnership

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agreement, and (ii) a short form good standing certificate for each
Loan Party from its jurisdiction of organization.

(d)           No
Default Certificate.  The
Administrative Agent shall have
received a certificate, signed by a Financial Officer of each Borrower and each
other Loan Party, on the Effective Date stating that (i) no Default has
occurred and is continuing, (ii) the representations and warranties contained
in Article III are true and correct in all material respects as of such
date, and (iii) the conditions set forth in this Section 4.01 have been
satisfied.

(e)           Fees.  The Lenders and the Administrative Agent
shall have received all fees required to be paid, and all expenses for which
invoices have been presented (including the reasonable fees and expenses of
legal counsel), on or before the Effective Date.  All such amounts will be paid with proceeds
of Loans made on the Effective Date and will be reflected in the funding
instructions given by the Borrower Representative to the Administrative Agent
on or before the Effective Date.

(f)            Lien
Searches.  The Administrative Agent
shall have received the results of a recent lien search in each of the
jurisdictions where assets of the Loan Parties are located, and such search
shall reveal no liens on any of the assets of the Loan Parties except for liens
permitted by Section 6.02 or discharged on or prior to the Effective
Date pursuant to a pay-off letter or other documentation satisfactory to the
Administrative Agent.

(g)           Pay-Off
Letter.  The Administrative Agent
shall have received satisfactory pay-off letters for all existing Indebtedness
to be repaid from the proceeds the initial Borrowing, confirming that all Liens
upon any of the property of the Loan Parties constituting Collateral will be
terminated concurrently with such payment and all letters of credit issued or
guaranteed as part of such Indebtedness shall have been cash collateralized or
supported by a Letter of Credit.

(h)           Funding
Accounts.  The Administrative Agent
shall have received a notice setting forth the deposit account(s) of the
Borrowers (the “Funding Accounts”)
to which the Lender is authorized by the Borrowers to transfer the proceeds of
any Borrowings requested or authorized pursuant to this Agreement.

(i)            Customer
List.  The Administrative Agent shall
have received a true and complete customer list.

(j)            Collateral
Access and Control Agreements.  The
Administrative Agent shall have received each (i) Collateral Access Agreement
required to be provided pursuant to Section 4.13 of the Security Agreement and (ii)
Deposit Account Control Agreement required to be provided pursuant to Section
4.14 of the Security Agreement.

(k)           Solvency.  The Administrative Agent shall have received
a solvency certificate from a Financial Officer of the Borrower Representative.

(l)            Borrowing
Base Certificate.  The Administrative
Agent shall have received a Borrowing Base Certificate which calculates the
Borrowing Base as of the end of the
week immediately preceding the Effective Date.

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(m)          Closing
Availability.  After giving effect to
all Borrowings to be made on the Effective Date and the issuance of any Letters
of Credit on the Effective Date and payment of all fees and expenses due
hereunder, and with all of the Loan Parties’ indebtedness, liabilities, and
obligations current, the Borrowers’ Availability shall not be less than
$50,000,000.

(n)           Pledged
Stock; Stock Powers; Pledged Notes. 
The Administrative Agent shall have received (i) the certificates
representing the Equity Interests pledged pursuant to the Security Agreement,
together with an undated stock power for each such certificate executed in
blank by a duly authorized officer of the pledgor thereof and (ii) each
promissory note (if any) pledged to the Administrative Agent pursuant to the
Security Agreement endorsed (without recourse) in blank (or accompanied by an
executed transfer form in blank) by the pledgor thereof.

(o)           Filings,
Registrations and Recordings.  Each
document (including any Uniform Commercial Code financing
statement) required by the Collateral Documents or under law or reasonably
requested by the Administrative Agent to be filed, registered or recorded in order
to create in favor of the Administrative Agent, for the benefit of the Lenders,
a perfected Lien on the Collateral described therein, prior and superior in
right to any other Person (other than with respect to Liens expressly permitted
by Section 6.02), shall be in proper form for filing, registration or
recordation.

(p)           Environmental
Reports.  The Administrative Agent
shall have received an environmental review report with respect to the real
properties of the Borrowers and their Subsidiaries specified by the
Administrative Agent from firm(s) satisfactory to the Administrative Agent,
which review reports shall be acceptable to the Administrative Agent. Any
environmental hazards or liabilities identified in any such environmental
review reports shall indicate the Loan Parties’ plans with respect thereto.

(q)           Insurance.  The Administrative Agent shall have received
evidence of insurance coverage in form, scope, and substance reasonably
satisfactory to Administrative Agent and otherwise in compliance with the terms
of Section 5.09 hereof and Section 4.12 of the Security Agreement.

(r)            Letter
of Credit Application.  The
Administrative Agent shall have received a properly completed letter of credit
application if the issuance of a Letter of Credit will be required on the
Effective Date.

(s)           Third
Party Consents and Approvals.  The
Administrative Agent shall have received fully executed copies of all consents
and approvals, if any, required to be obtained from any Governmental Authority
or other Person in connection with the Transactions and the continuing
operations of Holdings and its Subsidiaries (including member and shareholder
approvals, if any), each of which shall have been obtained on satisfactory
terms and shall be in full force and effect, and all applicable waiting periods
shall have expired without any action being taken or threatened by any
competent authority that would restrain, prevent or otherwise impose adverse
conditions on the Transactions.

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(t)            Appraisals.  The Administrative Agent shall have received
updated appraisals requested by it in connection with the Transactions,
including, without limitation, appraisals of Inventory and the Fixed Asset
Collateral, which appraisals shall be in form and substance satisfactory to the
Administrative Agent.

(u)           Field
Examinations.  The Administrative
Agent shall have received updated field examinations and audits requested by it
in connection with the Transactions, with respect to the components included in
the Borrowing Base and such other information or materials as the
Administrative Agent shall include within the scope of such field examination
and audit, all of which shall be in form and substance satisfactory to the
Administrative Agent.

(v)           Corporate
Structure.  The Administrative Agent
shall be satisfied in its sole judgment with the corporate (or other
organizational), capital (including preferred Equity Interests, if any), legal
and management structure of the Loan Parties.

(w)          Other
Documents.  The Administrative Agent
shall have received such other documents as the Administrative Agent, the
Issuing Bank, any Lender or their respective counsel may have reasonably
requested.

The Administrative Agent shall notify the Borrowers
and the Lenders of the Effective Date, and such notice shall be conclusive and
binding.  Notwithstanding the foregoing,
the obligations of the Lenders to make Loans and of the Issuing Bank to issue
Letters of Credit hereunder shall not become effective unless each of the
foregoing conditions is satisfied (or waived pursuant to Section 9.02)
at or prior to 2:00 p.m., Chicago time, on May 1, 2007 (and, in the event
such conditions are not so satisfied or waived, the Commitments shall terminate
at such time).

Section 4.02           Each Credit Event.  The obligation of each Lender to make a Loan
on the occasion of any Borrowing, and of the Issuing Bank to issue, amend,
renew or extend any Letter of Credit, is subject to the satisfaction of the
following conditions:

(a)           The
representations and warranties of the Borrowers set forth in this Agreement
shall be true and correct in all material respects on and as of the date of
such Borrowing or the date of issuance, amendment, renewal or extension of such
Letter of Credit, as applicable.

(b)           At
the time of and immediately after giving effect to such Borrowing or the
issuance, amendment, renewal or extension of such Letter of Credit, as
applicable, no Default shall have occurred and be continuing.

(c)           After
giving effect to any Borrowing or the issuance of any Letter of Credit,
Availability is not less than zero.

Each Borrowing and each issuance, amendment, renewal
or extension of a Letter of Credit shall be deemed to constitute a
representation and warranty by the Borrowers on the date thereof as to the
matters specified in paragraphs (a), (b) and (c) of this Section.

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Section 4.03           Post Closing Conditions.  The Loan Parties shall deliver, or cause to
be delivered, to the Administrative Agent, each document, instrument or
agreement set forth on Schedule 4.03
hereto, in each case on or prior to the date specified in such Schedule.  No Default or Event of Default shall result
from a failure to deliver a document, instrument or agreement set forth on Schedule 4.03 hereto, unless such failure
continues past the applicable deadline specified in such Schedule, at which
time such failure shall constitute an Event of Default without further notice
to any Loan Party.

Section 4.04           Conditions to Inclusion of Fixed Asset
Component in the Borrowing Base.  As
a condition to the inclusion of the Fixed Asset Component in the Borrowing Base,
the Administrative Agent shall have received, with respect to each parcel of
Real Property which is owned by a Loan Party, including without limitation, the
Real Property and plant facility located in Pekin, Illinois and the Real Property
located in Aurora, Nebraska, each of the following, in form and substance
reasonably satisfactory to the Administrative Agent; provided that such
conditions must be satisfied on or before December 31, 2007:

(a)           an
executed Mortgage covering such Real Property;

(b)           evidence
that a counterpart of the Mortgage has been recorded in the place necessary, in
the Administrative Agent’s judgment, to create a valid and enforceable first
priority Lien in favor of the Administrative Agent for the benefit of itself and
the Lenders;

(c)           an
ALTA or other mortgagee’s title policy with respect to such Real Property;

(d)           an
ALTA survey with respect to such Real Property prepared and certified to the
Administrative Agent by a surveyor acceptable to the Administrative Agent;

(e)           opinions
of corporate and local counsel in form and substance and from counsel
reasonably satisfactory to the Administrative Agent; and

(f)            such
other information, documentation, and certifications as may be reasonably
required by the Administrative Agent.

ARTICLE V

Affirmative Covenants

Until the Commitments have expired or been terminated
and the principal of and interest on each Loan and all fees payable hereunder
shall have been paid in full and all Letters of Credit shall have expired or
terminated and all LC Disbursements shall have been reimbursed, each Loan Party
executing this Agreement covenants and agrees, jointly and severally with all
of the Loan Parties, with the Lenders that:

Section 5.01           Financial Statements; Borrowing Base and
Other Information.  The Borrowers
will furnish to the Administrative Agent and each Lender:

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(a)           within
90 days after the end of each fiscal year of Holdings, its audited
consolidated  balance sheet
and related statements of operations, stockholders’ equity and cash flows as of
the end of and for such year, setting forth in each case in comparative form
the figures for the previous fiscal year, all reported on by Ernst & Young
LLP or another firm of independent public accountants acceptable to the
Required Lenders (without a “going concern” or like qualification or exception
and without any qualification or exception as to the scope of such audit) to
the effect that such consolidated financial statements present fairly in all
material respects the financial condition and results of operations of Holdings
and its consolidated Subsidiaries on a consolidated basis in accordance with
GAAP consistently applied, accompanied by any management letter prepared by
said accountants;

(b)           within
45 days after the end of each fiscal quarter of Holdings, its consolidated
and consolidating balance sheet and related statements of operations,
stockholders’ equity and cash flows as of the end of and for such fiscal
quarter and the then elapsed portion of the fiscal year, setting forth in each
case in comparative form the figures for the corresponding period or periods of
(or, in the case of the balance sheet, as of the end of) the previous fiscal
year, all certified by one of the Financial Officers of the Borrower
Representative as presenting fairly in all material respects the financial
condition and results of operations of Holdings and its consolidated
Subsidiaries on a consolidated basis in accordance with GAAP consistently
applied, subject to year-end audit adjustments and the absence of footnotes;

(c)           within
30 days after the end of each fiscal month of Holdings, its consolidated and
consolidating balance sheet and related statements of operations, stockholders’
equity and cash flows as of the end of and for such fiscal month and the then
elapsed portion of the fiscal year, setting forth in each case in comparative
form the figures for the corresponding period or periods of (or, in the case of
the balance sheet, as of the end of) the previous fiscal year, all certified by
one of its Financial Officers as presenting fairly in all material respects the
financial condition and results of operations of Holdings and its consolidated
Subsidiaries on a consolidated and consolidating basis in accordance with GAAP
consistently applied, subject to year-end audit adjustments and the absence of
footnotes; provided, however, that such financial statements will only be
required from and after the occurrence of an Event of Default or during an
Activation Period;

(d)           concurrently
with any delivery of financial statements under clauses (a), (b) and (c) above,
a certificate of a Financial Officer of the Borrower Representative in
substantially the form of Exhibit D (i) certifying, in the case of
the financial statements delivered under clause (b), as presenting fairly in
all material respects the financial condition and results of operations of
Holdings and its consolidated Subsidiaries on a consolidated and consolidating
basis in accordance with GAAP consistently applied, subject to year-end audit
adjustments (which individually or in the aggregate will not be material) and
the absence of footnotes, (ii) certifying as to whether a Default has
occurred and, if a Default has occurred, specifying the details thereof and any
action taken or proposed to be taken with respect thereto, (iii) setting
forth reasonably detailed calculations demonstrating compliance with Sections 6.01,
6.04, 6.05, 6.07, 6.08 and 6.13, in the case
of the financial statements delivered under clauses (a) and (b), and (iv) stating
whether any change in GAAP or in the application thereof has occurred since the
date of the audited financial statements referred to in Section 3.04
and, if any such change has

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occurred, specifying the effect of such change on the financial
statements accompanying such certificate;

(e)           as
soon as available, but in any event not more than 30 days after the end of each
fiscal year of Holdings, a copy of the plan and forecast (including a projected
consolidated and consolidating balance sheet, income statement and funds flow
statement) of Holdings and its consolidated Subsidiaries for each month of the
upcoming fiscal year (the “Projections”)
in form reasonably satisfactory to the Administrative Agent;

(f)            as
soon as available but in any event within 20 days of the end of each calendar
month as of the period then ended, (i) a Borrowing Base Certificate (including
a “terminal reconciliation report”) and supporting information in connection
therewith, together with any additional reports with respect to the Borrowing
Base as the Administrative Agent may reasonably request; and the Fixed Asset
Component of the Borrowing Base shall be updated concurrent with the sale or
commitment to sell any assets constituting Eligible Equipment or Eligible Real
Estate, (ii) to the extent there has been a change in the information
represented in a previously delivered Perfection Certificate or Perfection
Certificate Update or any previously delivered Perfection Certificate or
Perfection Certificate Update is no longer accurate and complete, a Perfection
Certificate Update, (iii) the PACA Reserve Report in the form of Exhibit I
hereto; provided  that at any time when an Event of Default has
occurred and is continuing or an Activation Period exists, the Administrative
Agent, in its sole discretion, may require the delivery of a Borrowing Base
Certificate, Perfection Certificate, PACA Reserve Report and supporting
information more often than monthly, including weekly or daily, in which event
the Borrowing Base would be adjusted immediately upon receipt of such reports;

(g)           as
soon as available but in any event within 20 days of the end of each calendar
month as of the period then ended, all delivered electronically in a text
formatted file acceptable to the Administrative Agent:

(i)            a
detailed aging of the Borrowers’ Accounts (A) including all invoices aged
by invoice date and due date (with an explanation of the terms offered) and (B) reconciled
to the Borrowing Base Certificate delivered as of such date prepared in a
manner reasonably acceptable to the Administrative Agent, together with a
summary specifying the name, address, and balance due for each Account Debtor;

(ii)           a
schedule detailing the Borrowers’ Inventory, in form satisfactory to the
Administrative Agent, (A) by location (showing Inventory in transit, any
Inventory located with a third party under any consignment, bailee arrangement,
or warehouse agreement), by class (raw material, work-in-process and finished
goods), by product type, and by volume on hand, which Inventory shall be valued
at the lower of cost (determined on a first-in, first-out basis) or market and
adjusted for Reserves as the Administrative Agent has previously indicated to
the Borrower Representative are deemed by the Administrative Agent to be
appropriate, (B) including a report of any variances or other results of
Inventory counts performed by the Borrowers since the last Inventory schedule
(including information regarding sales or other reductions, additions, returns,
credits issued by Borrowers and complaints and claims made against the
Borrowers), and (C) reconciled to the Borrowing Base Certificate delivered
as of such date;

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(iii)          a worksheet of calculations prepared by the
Borrowers to determine Eligible Accounts and Eligible Inventory, such
worksheets detailing the Accounts and Inventory excluded from Eligible Accounts
and Eligible Inventory and the reason for such exclusion;

(iv)          a
reconciliation of the Borrowers’ Accounts and Inventory between the amounts
shown in the Borrowers’ general ledger and financial statements and the reports
delivered pursuant to clauses (i) and (ii) above; and

(v)           a
reconciliation of the loan balance per the Borrowers’ general ledger to the
loan balance under this Agreement;

provided, that at any time
when an Event of Default has occurred and is continuing or an Activation Period
exists, the Administrative Agent, in its sole discretion, may require delivery
of the information required by this clause (g) more often than monthly,
including weekly or daily.

(h)           as
soon as available but in any event within 20 days of the end of each calendar
month and at such other times as may be requested by the Administrative Agent,
as of the month then ended, a schedule and aging of the Borrowers’ accounts
payable, delivered electronically in a
text formatted file acceptable to the Administrative Agent;

(i)            promptly
upon the Administrative Agent’s request:

(i)            copies
of invoices in connection with the invoices issued by the Borrowers in
connection with any Accounts, credit memos, shipping and delivery documents,
and other information related thereto;

(ii)           copies
of purchase orders, invoices, and shipping and delivery documents in connection
with any Inventory or Equipment purchased by any Loan Party;

(iii)          a schedule detailing the balance of all
intercompany accounts of the Loan Parties; and

(iv)          a
detailed listing of all advances of proceeds of Loans requested by the Borrower
Representative for each Borrower during the immediately preceding calendar
month;

(j)            within
45 days of each March 31 and September 30, an updated customer list for each
Borrower and its Subsidiaries, which list shall state the customer’s name,
mailing address and phone number and shall be certified as true and correct by
a Financial Officer of the Borrower Representative;

(k)           promptly
after the same become publicly available, copies of all periodic and other
reports, proxy statements and other materials filed by any Loan Party or any
Subsidiary with the Securities and Exchange Commission, or any Governmental
Authority succeeding to any or all of the functions of said Commission, or with
any national securities exchange, or distributed by any Loan Party to its
shareholders generally, as the case may be;

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(l)            promptly
following any request therefor, such other information regarding the operations,
business affairs and financial condition of any Borrower or any Subsidiary, or
compliance with the terms of this Agreement, as the Administrative Agent or any
Lender may reasonably request; and

(m)          promptly
notify Administrative Agent upon the adoption of or change in (including, but
not limited to, a change in the interpretation or application by any
Governmental Authority of) any Requirement of Law in any jurisdiction, any
change in the manner or method in which the Borrowers sell inventory, or any
change in the types or mixture of types of inventory sold by the Borrowers
which imposes upon the Borrowers any requirement (or increases or makes more
burdensome any existing requirement) to collect, remit and/or pay motor fuels,
liquor or other sales or excise taxes with respect to the sale by the Borrowers
of ethanol or other inventory.

Section 5.02           Notices of Material Events.  The Loan Parties will furnish to the
Administrative Agent and each Lender prompt written notice of the following:

(a)           the
occurrence of any Default;

(b)           receipt
of any notice of any governmental investigation or any litigation or proceeding
commenced or threatened against any Loan Party that (i) seeks damages in excess
of $5,000,000, (ii) seeks injunctive relief, (iii) is asserted or instituted
against any Plan, its fiduciaries or its assets, (iv) alleges criminal
misconduct by any Loan Party, (v) alleges the violation of any law regarding,
or seeks remedies in connection with, any Environmental Laws and which could
reasonably be expected to result in expenditures by any Loan Party of
$5,000,000 or more, (vi) contests any tax, fee, assessment, or other
governmental charge in excess of $5,000,000, or (vii) involves any product
recall;

(c)           any
Lien (other than Liens permitted hereby) or claim made or asserted against any
of the Collateral;

(d)           any
loss, damage, or destruction to the Collateral in the amount of $5,000,000 or
more, whether or not covered by insurance;

(e)           any
and all default notices received under or with respect to any leased location
or public warehouse where Collateral is located (which shall be delivered
within two Business Days after receipt thereof);

(f)            all
material amendments to and terminations of all Material Agreements, together with a copy of each such amendment;

(g)           the
fact that a Loan Party has entered into a Swap Agreement or an amendment to a
Swap Agreement, together with copies of all agreements evidencing such Swap
Agreement or amendments thereto (which shall be delivered within two Business
Days);

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(h)           the
occurrence of any ERISA Event that, alone or together with any other ERISA
Events that have occurred, could reasonably be expected to result in liability
of the Borrowers and their Subsidiaries in an aggregate amount exceeding $5,000,000;
and

(i)            any
other development that results in, or could reasonably be expected to result
in, a Material Adverse Effect.

Each notice delivered under this Section shall be
accompanied by a statement of a Financial Officer or other executive officer of
the Borrower Representative setting forth the details of the event or
development requiring such notice and any action taken or proposed to be taken
with respect thereto.

Section 5.03           Existence; Conduct of Business.  Each Loan Party will, and will cause each
Subsidiary to, (a) do or cause to be done all things necessary to preserve,
renew and keep in full force and effect its legal existence and the rights,
qualifications, licenses, permits, franchises, governmental authorizations,
intellectual property rights, licenses and permits material to the conduct of
its business, and maintain all requisite authority to conduct its business in
each jurisdiction in which its business is conducted; provided that the
foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 6.03 and (b) carry on and conduct
its business in substantially the same manner and in substantially the same
fields of enterprise as it is presently conducted.

Section 5.04           Payment of Obligations.  Each Loan Party will, and will cause
each  Subsidiary to, pay or discharge all
Material Indebtedness and all other material liabilities and obligations,
including Taxes, before the same shall become delinquent or in default, except
where (a) the validity or amount thereof is being contested in good faith by
appropriate proceedings, (b) such Loan Party or such Subsidiary has set aside
on its books adequate reserves with respect thereto in accordance with GAAP and
(c) such liabilities would not result in aggregate liabilities in excess of $5,000,000
and none of the Collateral becomes subject to forfeiture or loss as a result of
the contest.

Section 5.05           Maintenance of Properties.  Each Loan Party will, and will cause each
Subsidiary to, keep and maintain all property material to the conduct of its
business in good working order and condition, ordinary wear and tear excepted.

Section 5.06           Books and Records; Inspection Rights.  Each Loan Party will, and will cause each
Subsidiary to, (a) keep proper books of record and account in which full, true
and correct entries are made of all dealings and transactions in relation to
its business and activities and (b) permit any representatives designated by
the Administrative Agent or any Lender (including employees of the
Administrative Agent, any Lender or any consultants, accountants, lawyers and
appraisers retained by the Administrative Agent), upon reasonable prior notice,
to visit and inspect its properties, to examine and make extracts from its
books and records, including environmental assessment reports and Phase I or
Phase II studies, and to discuss its affairs, finances and condition with its
officers and independent accountants, all at such reasonable times and as often
as reasonably requested.  The Loan
Parties acknowledge that the Administrative Agent, after exercising its rights
of inspection, may prepare and distribute to the

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Lenders certain Reports pertaining to the Loan Parties’ assets for
internal use by the Administrative Agent and the Lenders.

Section 5.07           Compliance with Laws.  Each Loan Party will, and will cause each
Subsidiary to, comply with all Requirements of Law applicable to it or its
property, except where the failure to do so, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect.

Section 5.08           Use of Proceeds.  The proceeds of the Loans will be used only
to finance the working capital needs of the Borrowers and for general corporate
purposes of the Borrowers in the ordinary course of business, including without
limitation, the construction and development of additional ethanol facilities,
to finance acquisitions and to pay expenses incurred in connection
therewith.  No part of the proceeds of
any Loan and no Letter of Credit will be used, whether directly or indirectly,
for any purpose that entails a violation of any of the Regulations of the
Board, including Regulations T, U and X.

Section 5.09           Insurance.  Each Loan Party will, and will cause each
Subsidiary to, maintain with financially sound and reputable carriers having a
financial strength rating of at least A+ by A.M. Best Company (a) insurance in
such amounts (with no greater risk retention) and against such risks (including
loss or damage by fire and loss in transit; theft, burglary, pilferage,
larceny, embezzlement, and other criminal activities; business interruption;
and general liability) and such other hazards, as is customarily maintained by
companies of established repute engaged in the same or similar businesses
operating in the same or similar locations and (b) all insurance required
pursuant to the Collateral Documents. 
The Borrowers will furnish to the Lenders, upon request of the
Administrative Agent, information in reasonable detail as to the insurance so
maintained.

Section 5.10           Casualty and Condemnation.  The Borrowers (a) will furnish to the
Administrative Agent and the Lenders prompt written notice of any casualty or
other insured damage to any material portion of the Collateral or the
commencement of any action or proceeding for the taking of any material portion
of the Collateral or interest therein under power of eminent domain or by
condemnation or similar proceeding and (b) will ensure that the Net Proceeds of
any such event (whether in the form of insurance proceeds, condemnation awards or
otherwise) are collected and applied in accordance with the applicable
provisions of this Agreement and the Collateral Documents

Section 5.11           Appraisals.  At any time that the Administrative Agent
requests, the Borrowers and the Subsidiaries will provide the Administrative
Agent with appraisals or updates thereof of their Inventory, Equipment and Real
Property from an appraiser selected and engaged by the Administrative Agent,
and prepared on a basis satisfactory to the Administrative Agent, such appraisals
and updates to include, without limitation, information required by applicable
law and regulations; provided, however, that if no Event of Default has
occurred and is continuing, the Loan Parties shall only be required to
reimburse the Administrative Agent for the cost of one such appraisal in any
fiscal year, and if any Event of Default exists, then each appraisal commenced
during the existence of such Event of Default shall be at the expense of the
Loan Parties.

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Section 5.12           Depository Banks.  The Borrowers and their Subsidiaries will
maintain the Administrative Agent as its principal depository bank, including
for the maintenance of operating, administrative, cash management, collection
activity, and other deposit accounts for the conduct of its business.

Section 5.13           Additional Collateral; Further Assurances.  (a) Subject to applicable law, the Loan
Parties shall cause each of their domestic Subsidiaries formed or acquired
after the date of this Agreement in accordance with the terms of this Agreement
to become a Loan Party by executing the Joinder Agreement set forth as Exhibit
E hereto (the “Joinder Agreement”).
Upon execution and delivery thereof, each such Person (i) shall automatically
become a Loan Guarantor hereunder and thereupon shall have all of the rights,
benefits, duties, and obligations in such capacity under the Loan Documents and
(ii) will grant Liens to the Administrative Agent, for the benefit of the
Administrative Agent and the Lenders, in any property of such Loan Party which
constitutes Collateral, including any parcel of real property located in the
U.S. owned by any Loan Party.

(b)           (i)
If at any time after the Effective Date, Holdings becomes the direct or
indirect beneficial owner of 80% of the Equity Interests of Nebraska Sub (other
than Equity Interest held by management of Nebraska Sub issued pursuant to a
properly authorized management equity plan), the Loan Parties shall comply with
all requirements of Section 5.15 hereto, and (ii) if at any time after
the Effective Date, Holdings becomes the direct or indirect beneficial owner of
100% of the Equity of Nebraska Sub (other than Equity Interests held by
management of Nebraska Sub issued pursuant to a properly authorized management
equity plan), the Loan Parties shall cause Nebraska Sub to execute and deliver
to the Administrative Agent for the benefit of the Lenders and the Issuing Bank
a Joinder Agreement and other appropriate Security Agreements covering Nebraska
Sub’s property as security for the Secured Obligations, in form and substance
acceptable to the Administrative Agent.

(c)           Each
Borrower and each Subsidiary that is a Loan Party will cause (i) 100% of the
issued and outstanding Equity Interests of each of its domestic Subsidiaries
and (ii) 65% of the issued and outstanding Equity Interests entitled to vote
(within the meaning of Treas. Reg. Section 1.956-2(c)(2)) and 100% of the
issued and outstanding Equity Interests not entitled to vote (within the
meaning of Treas. Reg. Section 1.956-2(c)(2) in each foreign Subsidiary directly
owned by the Borrower or any domestic Subsidiary to be subject at all times to
a first priority, perfected Lien in favor of the Administrative Agent pursuant
to the terms and conditions of the Loan Documents or other security documents
as the Administrative Agent shall reasonably request.

(d)           Without
limiting the foregoing, each Loan Party will, and will cause each Subsidiary
to, execute and deliver, or cause to be executed and delivered, to the
Administrative Agent such documents, agreements and instruments, and will take
or cause to be taken such further actions (including the filing and recording
of financing statements, fixture filings, mortgages, deeds of trust and other
documents and such other actions or deliveries of the type required by Section
4.01, as applicable), which may be required by law or which the
Administrative Agent may, from time to time, reasonably request to carry out
the terms and conditions of this Agreement and the other Loan Documents and to
ensure perfection and

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priority of the Liens created or intended to be created by the
Collateral Documents, all at the expense of the Loan Parties.

(e)           If
any material assets (including any real property or improvements thereto or any
interest therein) are acquired by any Loan Party after the Effective Date
(other than assets constituting Collateral under the Security Agreement that
become subject to the Lien in favor of the Security Agreement upon acquisition
thereof), the Borrower Representative will notify the Administrative Agent and
the Lenders thereof, and, if requested by the Administrative Agent or the
Required Lenders, the Borrowers will cause such assets to be subjected to a
Lien securing the Secured Obligations and will take, and cause the other Loan
Parties to take, such actions as shall be necessary or reasonably requested by
the Administrative Agent to grant and perfect such Liens, including actions
described in paragraph (d) of this Section, all at the expense of the Loan
Parties.

Section 5.14           Field Examinations.  At any time that the Administrative Agent
requests, the Borrowers will provide the Administrative Agent, at the sole
expense of the Borrowers, reports of a collateral field examiner approved by
the Administrative Agent (which may be the Administrative Agent or an affiliate
thereof) with respect to all of the components of the Borrowing Base and such
other matters regarding the Loan Parties or the Collateral as the
Administrative Agent shall reasonably require; provided, however, the Borrowers
shall only be required to reimburse the Administrative Agent for the cost
of one field examination in any fiscal year, unless an Event of Default or
an Activation Period exists, at which time each field examination commenced
during the existence of an Event of Default or during an Activation Period
shall be at the expense of the Borrowers.

Section 5.15           Pledge of Equity of Nebraska Sub.  The Loan Parties shall use their commercially
reasonable efforts (which shall not require the Loan Parties to incur or pay
any material obligation or payment or forego any material right) to obtain the
consent of the requisite holders of Equity Interests in Nebraska Sub in order
to allow the Loan Parties to pledge their 78.42% Equity Interest in Nebraska
Sub.  Upon the earlier of (a) obtaining
the consent of the requisite holders of Equity Interests of Nebraska Sub or (b) on
such date as Holdings holds directly or indirectly not less than 80% of the
Equity Interest in Nebraska Sub, the Loan Parties shall execute and deliver to
the Administrative Agent such Joinder Agreement, Security Agreements and other
supporting documentation (including legal opinions) as Administrative Agent
shall reasonably require to grant and fully evidence and perfect in favor of
the Administrative Agent for the ratable benefit of the Lenders, first and
prior Liens in and to all Equity Interest of Nebraska Sub.  Without limiting the foregoing sentence, to
the extent necessary to perfect such Liens, Parent shall deliver or cause to be
delivered to the Administrative Agent original certificates evidencing such
Equity Interests.

Section 5.16           Risk Management Policy.  The Borrowers have provided a copy of the
existing Risk Management Policy (including each amendment thereto permitted
hereunder, the “Risk Management Policy”)
to the Administrative Agent which policy contains policies and procedures: (i)
with respect to the hedging of commodity price risk actually incurred or
reasonably anticipated to be incurred in the operation of the Loan Parties’
businesses, including price risks associated with contracts for the future
delivery by the Loan Parties of ethanol and other products at fixed prices (it
being acknowledged that the Risk Management Policy will not

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require the hedging of all commodity price risk incurred or reasonably
anticipated to be incurred in the operation of the Loan Parties’ business), and
(ii) which prevent speculative hedging. 
Such Risk Management Policy may be amended from time to time as long as
such amendment shall take into account and reflect the requirements provided
for in clauses (i) and (ii) of this Section.  The Loan Parties shall maintain and comply
with the Risk Management Policy including such requirements at all times.

Section 5.17           End of Fiscal Year and Fiscal Quarters.  The Loan Parties shall cause each of their
fiscal years and the fiscal years of each of their Subsidiaries to end on
December 31st of the applicable year and shall cause each of their fiscal
quarters and the fiscal quarters of their Subsidiaries to end on March 31st,
June 30th, September 30th and December 31st of the applicable year.

ARTICLE VI

Negative Covenants

Until the Commitments have expired or terminated and
the principal of and interest on each Loan and all fees, expenses and other
amounts payable under any Loan Document have been paid in full and all Letters
of Credit have expired or terminated and all LC Disbursements shall have been
reimbursed, the Loan Parties covenant and agree, jointly and severally, with
the Lenders that:

Section 6.01           Indebtedness.  No Loan Party will, nor will it permit any
Subsidiary to, create, incur or suffer to exist any Indebtedness, except:

(a)           the
Secured Obligations;

(b)           Indebtedness
existing on the date hereof and set forth in Schedule 6.01 and
extensions, renewals and replacements of any such Indebtedness in accordance
with clause (f) of this Section 6.01;

(c)           Indebtedness
of (i) any Loan Party to any other Loan Party and (ii) Indebtedness
of any Subsidiary which is not a Loan Party to any Loan Party or any other Subsidiary,
provided that Indebtedness of any Subsidiary that is not a Loan Party to
any Loan Party shall be subject to Section 6.04;

(d)           Guarantees
by any Loan Party of Indebtedness of any other Loan Party and Guarantees by any
Subsidiary which is not a Loan Party of Indebtedness of any Loan Party or any
other Subsidiary, provided that the Indebtedness so Guaranteed is
permitted by this Section 6.01;

(e)           Indebtedness
of any Loan Party or any Subsidiary incurred to finance the acquisition,
construction or improvement of any fixed or capital assets (whether or not
constituting purchase money Indebtedness), including Capital Lease Obligations
and any Indebtedness assumed in connection with the acquisition of any such
assets or secured by a Lien on any such assets prior to the acquisition thereof,
and extensions, renewals and replacements of

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any such Indebtedness in accordance with clause (f) of this
Section 6.01; provided that (i) such Indebtedness is incurred
prior to or within 120 days after such acquisition or the completion of such
construction or improvement and (ii) the aggregate principal amount of
Indebtedness permitted by this clause (e) shall not exceed $50,000,000 at any
time outstanding;

(f)            Indebtedness
which represents an extension, refinancing, or renewal of any of the
Indebtedness described in clauses (b) and (e) and (i) hereof; provided that, (i)
the principal amount or interest rate of such Indebtedness is not increased, (ii)
any Liens securing such Indebtedness are not extended to any additional
property of any Loan Party or any Subsidiary, (iii) no Loan Party or Subsidiary
that is not originally obligated with respect to repayment of such Indebtedness
is required to become obligated with respect thereto, (iv) such extension,
refinancing or renewal does not result in a shortening of the average weighted
maturity of the Indebtedness so extended, refinanced or renewed, (v) the terms
of any such extension, refinancing, or renewal are not less favorable to the
obligor thereunder than the original terms of such Indebtedness and (vi) if the
Indebtedness that is refinanced, renewed, or extended was subordinated in right
of payment to the Secured Obligations, then the terms and conditions of the
refinancing, renewal, or extension Indebtedness must include subordination
terms and conditions that are at least as favorable to the Administrative Agent
and the Lenders as those that were applicable to the refinanced, renewed, or
extended Indebtedness;

(g)           Indebtedness
owed to any person providing workers’ compensation, health, disability or other
employee benefits or property, casualty or liability insurance, pursuant to
reimbursement or indemnification obligations to such person, in each case
incurred in the ordinary course of business;

(h)           Indebtedness
of any Loan Party or any Subsidiary in respect of performance bonds, bid bonds,
appeal bonds, surety bonds and similar obligations, in each case provided in
the ordinary course of business;

(i)            Indebtedness
evidenced by the Senior Notes and extensions, renewals and replacements of any
such Indebtedness in accordance with clause (f) of this Section
6.01; and

(j)            other
unsecured Indebtedness in an aggregate principal amount not exceeding $50,000,000
at any time outstanding; provided that the aggregate principal amount of
Indebtedness of the Subsidiaries which are not Loan Parties permitted by this
clause (j) shall not exceed $15,000,000 at any time outstanding.

Section 6.02           Liens.  No Loan Party will, nor will it permit any
Subsidiary to, create, incur, assume or permit to exist any Lien on any property
or asset now owned or hereafter acquired by it, or assign or sell any income or
revenues (including accounts receivable) or rights in respect of any thereof,
except:

(a)           Liens
created pursuant to any Loan Document;

(b)           Permitted
Encumbrances;

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(c)           any
Lien on any property or asset of any Loan Party or any Subsidiary existing on
the date hereof and set forth in Schedule 6.02; provided that (i)
such Lien shall not apply to any other property or asset of such Loan Party or
Subsidiary and (ii) such Lien shall secure only those obligations which it
secures on the date hereof and extensions, renewals and replacements thereof
that do not increase the outstanding principal amount thereof;

(d)           Liens
on fixed or capital assets acquired, constructed or improved by any Loan Party or
any Subsidiary; provided that (i) such Liens secure Indebtedness
permitted by clause (e) of Section 6.01, (ii) such Liens and the
Indebtedness secured thereby are incurred prior to or within 120 days
after such acquisition or the completion of such construction or improvement, (iii)
the Indebtedness secured thereby does not exceed 100% of the cost of acquiring,
constructing or improving such fixed or capital assets and (iv) such Liens shall
not apply to any other property or assets of such Loan Party or Subsidiary or
any other Loan Party or Subsidiary;

(e)           any
Lien existing on any property or asset (other than Accounts and Inventory)
prior to the acquisition thereof by any Loan Party or any Subsidiary or
existing on any property or asset (other than Accounts and Inventory) of any
Person that becomes a Loan Party after the date hereof prior to the time such
Person becomes a Loan Party or Subsidiary; provided that (i) such Lien
is not created in contemplation of or in connection with such acquisition or
such Person becoming a Loan Party, as the case may be, (ii) such Lien shall not
apply to any other property or assets of the Loan Party and (iii) such Lien
shall secure only those obligations which it secures on the date of such
acquisition or the date such Person becomes a Loan Party, as the case may be
and extensions, renewals and replacements thereof that do not increase the
outstanding principal amount thereof;

(f)            Liens
of a collecting bank arising in the ordinary course of business under Section 4-208
of the Uniform Commercial Code in effect in the relevant jurisdiction covering
only the items being collected upon;

(g)           Liens
arising out of sale and leaseback transactions permitted by Section 6.06;

(h)           Liens
granted by a Subsidiary that is not a Loan Party in favor of any Loan Party in
respect of Indebtedness owed by such Subsidiary;

(i)            any
statutory trust arising pursuant to PACA, to the extent no seller of
agricultural commodities has an enforceable claim with respect to such trust
but only to the extent the amounts owed to all such sellers are less than the
PACA Reserves at such time and are not past due.

Notwithstanding the foregoing, none of the Liens
permitted pursuant to this Section 6.02 may at any time attach to any
Loan Party’s (i) Accounts, other than those permitted under clause (a) of the
definition of Permitted Encumbrance and clause (a) above and (ii) Inventory,
other than those permitted under clauses (a) and (b) of the definition of
Permitted Encumbrance and clauses (a) and (i) above.

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Section 6.03           Fundamental Changes.  (a) No Loan Party will, nor will it permit
any Subsidiary to, merge into or consolidate with any other Person, or permit
any other Person to merge into or consolidate with it, or liquidate or
dissolve, except that, if at the time thereof and immediately after giving
effect thereto no Event of Default shall have occurred and be continuing (i) any
Subsidiary may merge into a Loan Party in a transaction in which a Loan Party is
the surviving corporation, (ii) any Loan Party may merge into any other Loan
Party in a transaction in which the surviving entity is a Loan Party and (iii) any
Subsidiary that is not a Loan Party may liquidate or dissolve if the Loan Party
which owns such Subsidiary determines in good faith that such liquidation or
dissolution is in the best interests of such Loan Party and is not materially
disadvantageous to the Lenders; provided that any such merger involving
a Person that is not a wholly owned Subsidiary immediately prior to such merger
shall not be permitted unless also permitted by Section 6.04.

(b)           No
Loan Party will, nor will it permit any of its Subsidiaries to, engage in any
business other than businesses of the type conducted by the Loan Parties and
their Subsidiaries on the date of execution of this Agreement and businesses
reasonably related thereto.

Section 6.04           Investments, Loans, Advances, Guarantees
and Acquisitions.  No Loan Party
will, nor will it permit any Subsidiary to, purchase, hold or acquire
(including pursuant to any merger with any Person that was not a Loan Party and
a wholly owned Subsidiary prior to such merger) any capital stock, evidences of
indebtedness or other securities (including any option, warrant or other right
to acquire any of the foregoing) of, make or permit to exist any loans or
advances to, Guarantee any obligations of, or make or permit to exist any
investment or any other interest in, any other Person, or purchase or otherwise
acquire (in one transaction or a series of transactions) any assets of any other
Person constituting a business unit (whether through purchase of assets, merger
or otherwise), except:

(a)           Permitted
Investments, subject to control agreements (to the extent required by the
Security Agreement) in favor of the Administrative Agent for the benefit of the
Lenders or otherwise subject to a perfected security interest in favor of the
Administrative Agent for the benefit of the Lenders;

(b)           investments
in existence on the date of this Agreement and described in Schedule 6.04;

(c)           investments
by any Loan Party or any Subsidiary in Equity Interests in any other Person, provided
that (i) any such Equity Interests held by a Loan Party shall be pledged
pursuant to the Security Agreement (subject to the limitations applicable to
common stock of a Foreign Subsidiary referred to in Section 5.13), (ii) in
the case of investments by Loan Parties or any Subsidiary in Persons that are
not Loan Parties, the Pro Forma Availability Test and the Pro Forma Fixed
Charge Test shall be satisfied after giving effect thereto and (iii) such
Person does not become a Subsidiary of Holdings as a result thereof;

(d)           loans
or advances made by any Loan Party or any Subsidiary to any other Person, provided
that (i) any such loans and advances made by a Loan Party shall be evidenced by
a promissory note pledged pursuant to the Security Agreement and (ii) in the
case of loans

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and advances made by Loan Parties or any Subsidiary to Persons that are
not Loan Parties, the Pro Forma Availability Test and the Pro Forma Fixed
Charge Test shall be satisfied after giving effect thereto;

(e)           Guarantees
constituting Indebtedness permitted by Section 6.01 including Guarantees
of obligations of other Loan Parties not otherwise prohibited by the terms of
this Agreement;

(f)            loans
or advances made by a Loan Party or any Subsidiary to its employees on an
arms-length basis in the ordinary course of business consistent with past
practices for travel and entertainment expenses, relocation costs and similar
purposes up to a maximum of $250,000 to any employee and up to a maximum of $1,000,000
in the aggregate at any one time outstanding;

(g)           subject
to Sections 4.2(a) and 4.4 of the Security Agreement, notes payable, or stock
or other securities issued by Account Debtors to a Loan Party pursuant to
negotiated agreements with respect to settlement of such Account Debtor’s
Accounts in the ordinary course of business, consistent with past practices;

(h)           investments
in the form of Swap Agreements permitted by Section 6.07;

(i)            investments
of any Person existing at the time such Person becomes a Loan Party or a Subsidiary
or consolidates or merges with a Loan Party or a Subsidiary (including in
connection with a Permitted Acquisition) so long as such investments were not
made in contemplation of such Person becoming a Subsidiary or of such merger;

(j)            investments
received in connection with the dispositions of assets permitted by Section
6.05;

(k)           investments
constituting deposits described in clauses (c) and (d) of the definition
of the term “Permitted Encumbrances”; and

(l)            Permitted
Acquisitions.

Section 6.05           Asset Sales.  No Loan Party will, nor will it permit any
Subsidiary to, sell, transfer, lease or otherwise dispose of any asset,
including any Equity Interest owned by it, nor will any Loan Party permit any
Subsidiary to issue any additional Equity Interest in such Subsidiary (other
than to another Loan Party in compliance with Section 6.04), except:

(a)           sales,
transfers and dispositions of (i) inventory in the ordinary course of business
and (ii) used, obsolete, worn out or surplus equipment or property in the
ordinary course of business;

(b)           sales,
transfers and dispositions to any Loan Party, provided that any such
sales, transfers or dispositions from a Subsidiary that is not a Loan Party
shall be made in compliance with Section 6.09;

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(c)           sales,
transfers and dispositions of accounts receivable in connection with the
compromise, settlement or collection thereof;

(d)           sales,
transfers and dispositions of investments permitted by clauses (i) and (k)
of Section 6.04;

(e)           sale
and leaseback transactions permitted by Section 6.06;

(f)            dispositions
resulting from any casualty or other insured damage to, or any taking under
power of eminent domain or by condemnation or similar proceeding of, any
property or asset of any Borrower or any Subsidiary;

(g)           sales
of Equity Interests in Marketing Alliance Partners; and

(h)           sales,
transfers and other dispositions of assets (other than Equity Interests in a
Subsidiary unless all Equity Interests in such Subsidiary are sold) that are
not permitted by any other paragraph of this Section, provided that the
aggregate fair market value of all assets sold, transferred or otherwise
disposed of in reliance upon this paragraph (h) shall not exceed $10,000,000
during any fiscal year of the Borrowers;

provided that all sales, transfers,
leases and other dispositions permitted hereby (other than those permitted by
paragraphs (b) and (f) above) shall be made for fair value and for at
least 75% cash consideration.

Section 6.06           Sale and Leaseback Transactions.  No Loan Party will, nor will it permit any
Subsidiary to, enter into any arrangement, directly or indirectly, whereby it
shall sell or transfer any property, real or personal, used or useful in its
business, whether now owned or hereafter acquired, and thereafter rent or lease
such property or other property that it intends to use for substantially the
same purpose or purposes as the property sold or transferred, except for such
arrangements involving property having an aggregate fair market value not
exceeding $5,000,000 during the term of this Agreement.

Section 6.07           Swap Agreements.  No Loan Party will, nor will it permit
any  Subsidiary to, enter into any Swap
Agreement, except (a) Swap Agreements entered into to hedge or mitigate risks
to which any Loan Party or any Subsidiary has actual exposure (other than those
in respect of Equity Interests of any Loan Party or any of its Subsidiaries),
and (b) Swap Agreements entered into in order to effectively cap, collar or
exchange interest rates (from fixed to floating rates, from one floating rate
to another floating rate or otherwise) with respect to any interest-bearing
liability or investment of any Loan Party or any Subsidiary.

Section 6.08           Restricted Payments; Certain Payments of
Indebtedness.  (a) No Loan Party will,
nor will it permit any Subsidiary to, declare or make, or agree to pay or make,
directly or indirectly, any Restricted Payment, or incur any obligation
(contingent or otherwise) to do so, except (i) Holdings may declare and pay
dividends with respect to its common stock payable solely in additional shares
of its common stock, and, with respect to its preferred stock, payable solely
in additional shares of such preferred stock or in shares of its common stock, (ii)
any Loan Party other than Holdings may declare and pay dividends ratably with
respect to its Equity

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Interests, (iii) Holdings may make Restricted Payments, pursuant to and
in accordance with stock option plans or other benefit plans for management or
employees of the Loan Parties and their Subsidiaries, (iv) the Loan Parties may
make Restricted Payments to enable the payment by Holdings of amounts then due
and payable under the Senior Notes and to be used by Parent or Holdings to pay
taxes, franchise fees, licensing expenses, and other fees and expenses of the
Loan Parties to maintain their existence and other similar amounts in the
ordinary course of business, and  (v) the
Loan Parties may make other Restricted Payments so long as (A) no Default or Event
of Default has occurred and is continuing or would result after giving effect
to such payment and (B) the Pro Forma Fixed Charge Coverage Test and the Pro
Forma Availability Test are satisfied after giving effect thereto.

(b)           No
Loan Party will, nor will it permit any Subsidiary to, make or agree to pay or
make, directly or indirectly, any payment or other distribution (whether in
cash, securities or other property) of or in respect of principal of or
interest on any Indebtedness, or any payment or other distribution (whether in
cash, securities or other property), including any sinking fund or similar
deposit, on account of the purchase, redemption, retirement, acquisition,
cancellation or termination of any Indebtedness, except:

(i)            payment
of Indebtedness created under the Loan Documents;

(ii)           payment
of regularly scheduled interest and principal payments as and when due in
respect of any Indebtedness, other than payments in respect of the Subordinated
Indebtedness prohibited by the subordination provisions thereof;

(iii)          refinancings of Indebtedness to the extent
permitted by Section 6.01;

(iv)          payment
of secured Indebtedness that becomes due as a result of the voluntary sale or
transfer of the property or assets securing such Indebtedness; and

(v)           other
payments or distributions so long as (A) no Default or Event of Default has
occurred and is continuing or would result after giving effect to such payment
and (B) the Pro Forma Fixed Charge Coverage Test and the Pro Forma Availability
Test are satisfied after giving effect thereto.

Section 6.09           Transactions with Affiliates.  No Loan Party will, nor will it permit any
Subsidiary to, sell, lease or otherwise transfer any property or assets to, or
purchase, lease or otherwise acquire any property or assets from, or otherwise
engage in any other transactions with, any of its Affiliates, except (a) transactions
that (i) are in the ordinary course of business and (ii) are at
prices and on terms and conditions not less favorable to such Loan Party or
such Subsidiary than could be obtained on an arm’s-length basis from unrelated
third parties, (b) transactions between or among Loan Parties and not involving
any other Affiliate, (c) any investment permitted by Section 6.04(c) or Section
6.04(d), (d) any Indebtedness permitted under Section 6.01(c) and Section
6.01(d), (e) any Restricted Payment permitted by Section 6.08, (f) loans
or advances to employees permitted under Section 6.04, (g) the payment
of reasonable fees to directors of any Loan Party or any Subsidiary who are not
employees of a Loan Party or Subsidiary, and compensation and employee benefit
arrangements paid to, and indemnities

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provided for the benefit of, directors, officers or employees of the Loan
Parties or a Subsidiary in the ordinary course of business and (h) any
issuances of securities or other payments, awards or grants in cash, securities
or otherwise pursuant to, or the funding of, employment agreements, stock
options and stock ownership plans approved by a Loan Party’s or a Subsidiary’s
board of directors, (i) so long as no Default has occurred and is continuing,
the payment of management, consulting and advisory fees under a Financial
Advisory Agreement in an amount not to exceed $1,000,000 in any fiscal year, and
(j) the transactions contemplated by the Nebraska Credit Agreement.

Section 6.10           Restrictive Agreements.  No Loan Party will, nor will it permit any
Subsidiary to, directly or indirectly, enter into, incur or permit to exist any
agreement or other arrangement that prohibits, restricts or imposes any
condition upon (a) the ability of such Loan Party or any of its Subsidiaries to
create, incur or permit to exist any Lien upon any of its property or assets,
or (b) the ability of any Subsidiary to pay dividends or other distributions
with respect to any shares of its capital stock or to make or repay loans or
advances to any Loan Party or to Guarantee Indebtedness of any Loan Party or
any other Subsidiary; provided that (i) the foregoing shall not apply to
restrictions and conditions imposed by law or by any Loan Document, (ii) the
foregoing shall not apply to restrictions and conditions existing on the date
hereof identified on Schedule 6.10 (but shall apply to any extension or
renewal of, or any amendment or modification expanding the scope of, any such
restriction or condition), (iii) the foregoing shall not apply to customary
restrictions and conditions contained in agreements relating to the sale of a
Subsidiary pending such sale, provided such restrictions and conditions apply
only to the Subsidiary that is to be sold and such sale is permitted hereunder,
(iv) the foregoing shall not apply to restrictions contained in the Nebraska
Sub Operating Agreement as in effect on the Effective Date or set forth in
resolutions of the membership committee of Nebraska Sub adopted on June 21,
2001, and March 10, 2003, copies of which were provided to Administrative
Agent prior to the Effective Date, (v) clause (a) of the foregoing shall not
apply to restrictions or conditions imposed by any agreement relating to
secured Indebtedness permitted by this Agreement if such restrictions or
conditions apply only to the property or assets securing such Indebtedness and (vi)
clause (a) of the foregoing shall not apply to customary provisions in leases
and other contracts restricting the assignment thereof.

Section 6.11           Amendment of Material Documents.  No Loan Party will, nor will it permit any
Subsidiary to, amend, modify or waive any of its rights under (a) agreement
relating to any Subordinated Indebtedness, (b) its certificate of
incorporation, by-laws, operating, management or partnership agreement or other
organizational documents (c) the Nebraska Credit Agreement, the Nebraska Note
or any instrument, document or agreement related thereto if (i) the effect of
such amendment, modification or waiver would reduce or cancel the principal
amounts owing by Nebraska Sub to Aventine thereunder or (ii) an Event of
Default has occurred and is continuing, (d) the Nebraska Sub Operating
Agreement, or (e) the Senior Notes Indenture, (i) in the case of (a) and (b)
above to the extent any such amendment, modification or waiver would be adverse
to the Lenders, and (ii) in the case of (d) above without the prior approval of
the Administrative Agent (such approval not to be unreasonably withheld).

Section 6.12           Acquisition of Equity in Nebraska Sub.  Permit any Affiliate of any Loan Party other
than a Loan Party to acquire Equity Interests of Nebraska Sub.

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Section 6.13           Fixed Charge Coverage Ratio.  The Borrowers will not permit the Fixed
Charge Coverage Ratio, to be less than 1.10 to 1.00 for any Fixed Charge
Coverage Period ending during any Activation Period and for such Fixed Charge
Coverage Period ending on the last day of the fiscal quarter ending immediately
prior to any Activation Period.

ARTICLE VII

Events of Default

If any of the following events (“Events of
Default”) shall occur:

(a)           the
Borrowers shall fail to pay any principal of any Loan or any reimbursement
obligation in respect of any LC Disbursement when and as the same shall become
due and payable, whether at the due date thereof or at a date fixed for
prepayment thereof or otherwise;

(b)           the
Borrowers shall fail to pay any interest on any Loan or any fee or any other
amount (other than an amount referred to in clause (a) of this Article)
payable under this Agreement, when and as the same shall become due and
payable, and such failure shall continue unremedied for a period of five days;

(c)           any
representation or warranty made or deemed made by or on behalf of any Loan
Party or any Subsidiary in or in connection with this Agreement or any Loan
Document or any amendment or modification thereof or waiver thereunder, or in
any report, certificate, financial statement or other document furnished
pursuant to or in connection with this Agreement or any Loan Document or any
amendment or modification thereof or waiver thereunder, shall prove to have
been materially incorrect when made or deemed made;

(d)           any
Loan Party shall fail to observe or perform any covenant, condition or
agreement contained in Section 5.02(a), Section 5.03 (with
respect to a Loan Party’s existence) or Section 5.08 or in Article VI;

(e)           any
Loan Party shall fail to observe or perform any covenant, condition or
agreement contained in this Agreement (other than those which constitute a
default under another Section of this Article), and such failure shall continue
unremedied for a period of (i) 5 days after the earlier of any Loan Party’s
knowledge of such breach or notice thereof from the Administrative Agent (which
notice will be given at the request of any Lender) if such breach relates to
terms or provisions of Section 5.01, Section 5.02 (other than Section
5.02(a)), Section 5.03 through Section 5.07, Section 5.09,
Section 5.10 or Section 5.12 of this Agreement or (ii) 15 days
after the earlier of any Loan Party’s knowledge of such breach or notice
thereof from the Administrative Agent (which notice will be given at the
request of any Lender) if such breach relates to terms or provisions of any
other Section of this Agreement;

(f)            any
Loan Party or any Subsidiary shall fail to make any payment (whether of
principal or interest and regardless of amount) in respect of any Material
Indebtedness (including any of the Senior Notes), when and as the same shall
become due and payable;

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(g)           any
event or condition occurs that results in any Material Indebtedness becoming
due prior to its scheduled maturity or that enables or permits (with or without
the giving of notice, the lapse of time or both) the holder or holders of any
Material Indebtedness or any trustee or agent on its or their behalf to cause
any Material Indebtedness to become due, or to require the prepayment,
repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided
that this clause (g) shall not apply to secured Indebtedness that becomes
due as a result of the voluntary sale or transfer of the property or assets
securing such Indebtedness;

(h)           an
involuntary proceeding shall be commenced or an involuntary petition shall be
filed seeking (i) liquidation, reorganization or other relief in respect of a
Loan Party or any Subsidiary of any Loan Party or its debts, or of a
substantial part of its assets, under any Federal, state or foreign bankruptcy,
insolvency, receivership or similar law now or hereafter in effect or (ii) the
appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for any Loan Party or any Subsidiary of any Loan Party or for
a substantial part of its assets, and, in any such case, such proceeding or
petition shall continue undismissed for 60 days or an order or decree
approving or ordering any of the foregoing shall be entered;

(i)            any
Loan Party or any Subsidiary of any Loan Party shall (i) voluntarily commence
any proceeding or file any petition seeking liquidation, reorganization or
other relief under any Federal, state or foreign bankruptcy, insolvency,
receivership or similar law now or hereafter in effect, (ii) consent to the
institution of, or fail to contest in a timely and appropriate manner, any
proceeding or petition described in clause (h) of this Article, (iii) apply for
or consent to the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for such Loan Party or Subsidiary of any Loan
Party or for a substantial part of its assets, (iv) file an answer admitting
the material allegations of a petition filed against it in any such proceeding,
(v) make a general assignment for the benefit of creditors or (vi) take any
action for the purpose of effecting any of the foregoing;

(j)            any
Loan Party or any Subsidiary of any Loan Party shall become unable, admit in
writing its inability or fail generally to pay its debts as they become due;

(k)           one
or more judgments for the payment of money in an aggregate amount in excess of
$5,000,000 shall be rendered against any Loan Party, any Subsidiary of any Loan
Party or any combination thereof and the same shall remain undischarged for a
period of 30 consecutive days during which execution shall not be
effectively stayed, or any action shall be legally taken by a judgment creditor
to attach or levy upon any assets of any Loan Party or any Subsidiary of any
Loan Party to enforce any such judgment or any Loan Party or any Subsidiary of
any Loan Party shall fail within 30 days to discharge one or more non-monetary
judgments or orders which, individually or in the aggregate, could reasonably
be expected to have a Material Adverse Effect, which judgments or orders, in
any such case, are not stayed on appeal or otherwise being appropriately contested
in good faith by proper proceedings diligently pursued;

(l)            an
ERISA Event shall have occurred that, in the opinion of the Required Lenders,
when taken together with all other ERISA Events that have occurred, could
reasonably be expected to result in liability of the Loan Parties and their
Subsidiaries in an aggregate amount exceeding $5,000,000 for all periods;

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(m)          a
Change in Control shall occur;

(n)           the
occurrence of any “default”, as defined in any Loan Document (other than this
Agreement) or the breach of any of the terms or provisions of any Loan Document
(other than this Agreement), which default or breach continues beyond any
period of grace therein provided;

(o)           the
Loan Guaranty shall fail to remain in full force or effect or any action shall be
taken to discontinue or to assert the invalidity or unenforceability of the
Loan Guaranty, or any Loan Guarantor shall fail to comply with any of the terms
or provisions of the Loan Guaranty to which it is a party, or any Loan
Guarantor shall deny that it has any further liability under the Loan Guaranty
to which it is a party, or shall give notice to such effect;

(p)           any
Collateral Document shall for any reason fail to create a valid and perfected
first priority security interest in any Collateral purported to be covered
thereby, except as permitted by the terms of any Collateral Document, or any
Collateral Document shall fail to remain in full force or effect or any action
shall be taken to discontinue or to assert the invalidity or unenforceability of
any Collateral Document, or any Loan Party shall fail to comply with any of the
terms or provisions of any Collateral Document;

(q)           any
material provision of any Loan Document for any reason ceases to be valid,
binding and enforceable in accordance with its terms (or any Loan Party shall
challenge the enforceability of any Loan Document or shall assert in writing,
or engage in any action or inaction based on any such assertion, that any
provision of any of the Loan Documents has ceased to be or otherwise is not
valid, binding and enforceable in accordance with its terms);

(r)            any
Loan Party is criminally indicted or convicted under any law that could
reasonably be expected to lead to a forfeiture of any property of such Loan
Party having a fair market value in excess of $1,000,000;

then, and in every such event (other than an event
with respect to the Borrowers described in clause (h) or (i) of this Article),
and at any time thereafter during the continuance of such event, the
Administrative Agent may, and at the request of the Required Lenders shall, by
notice to the Borrower Representative, take either or both of the following
actions, at the same or different times:  (i) terminate the
Commitments, and thereupon the Commitments shall terminate immediately, and
(ii) declare the Loans then outstanding to be due and payable in whole (or
in part, in which case any principal not so declared to be due and payable may
thereafter be declared to be due and payable), and thereupon the principal of
the Loans so declared to be due and payable, together with accrued interest
thereon and all fees and other obligations of the Borrowers accrued hereunder,
shall become due and payable immediately, without presentment, demand, protest
or other notice of any kind, all of which are hereby waived by the Borrowers;
and in case of any event with respect to the Borrowers described in clause (h)
or (i) of this Article, the Commitments shall automatically terminate and the
principal of the Loans then outstanding, together with accrued interest thereon
and all fees and other obligations of the Borrowers accrued hereunder, shall
automatically become due and payable, without presentment, demand, protest or
other notice of any kind, all of which are hereby waived by the Borrowers.  Upon the occurrence and the continuance of an
Event of Default, the Administrative Agent may,

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and at the request of the Required Lenders shall,
exercise any rights and remedies provided to the Administrative Agent under the
Loan Documents or at law or equity, including all remedies provided under the
UCC.

ARTICLE VIII

The Administrative Agent

Each of the Lenders and
the Issuing Bank hereby irrevocably appoints the Administrative Agent as its
agent and authorizes the Administrative Agent to take such actions on its behalf,
including execution of the other Loan Documents, and to exercise such powers as
are delegated to the Administrative Agent by the terms of the Loan Documents,
together with such actions and powers as are reasonably incidental thereto.

The bank serving as the
Administrative Agent hereunder 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 the Administrative Agent, and such bank and its Affiliates may accept
deposits from, lend money to and generally engage in any kind of business with
the Loan Parties or any Subsidiary of a Loan Party or other Affiliate thereof
as if it were not the Administrative Agent hereunder.

The Administrative Agent
shall not have any duties or obligations except those expressly set forth in
the Loan Documents.  Without limiting the
generality of the foregoing, (a) the Administrative Agent shall not be subject
to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any
duty to take any discretionary action or exercise any discretionary powers,
except discretionary rights and powers expressly contemplated by the Loan
Documents that the Administrative Agent is required to exercise in writing as
directed by the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary under the circumstances as provided in Section
9.02), and (c) except as expressly set forth in the Loan Documents, the
Administrative Agent shall not have any duty to disclose, and shall not be
liable for the failure to disclose, any information relating to any Loan Party
or any of its Subsidiaries that is communicated to or obtained by the bank
serving as Administrative Agent or any of its Affiliates in any capacity.  The Administrative Agent shall not be liable
for any action taken or not taken by it with the consent or at the request of
the Required Lenders (or such other number or percentage of the Lenders as shall
be necessary under the circumstances as provided in Section 9.02) or in
the absence of its own gross negligence or willful misconduct.  The Administrative Agent shall be deemed not
to have knowledge of any Default unless and until written notice thereof is
given to the Administrative Agent by the Borrower Representative or a Lender,
and the Administrative Agent shall not be responsible for or have any duty to
ascertain or inquire into (i) any statement, warranty or representation made in
or in connection with any Loan Document, (ii) the contents of any certificate,
report or other document delivered hereunder or in connection with any Loan
Document, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth in any Loan Document, (iv) the
validity, enforceability, effectiveness or genuineness of any Loan Document or
any other agreement, instrument or document, (v) the creation, perfection or
priority of Liens on the Collateral or the existence of the Collateral, or (vi)
the satisfaction of any condition set forth in Article IV or

 90
 

elsewhere in any Loan Document, other than to confirm
receipt of items expressly required to be delivered to the Administrative
Agent.

The Administrative Agent
shall be entitled to rely upon, and shall not incur any liability for relying
upon, any notice, request, certificate, consent, statement, instrument,
document or other writing believed by it to be genuine and to have been signed
or sent by the proper Person.  The
Administrative Agent also may rely upon any statement made to it orally or by
telephone and believed by it to be made by the proper Person, and shall not
incur any liability for relying thereon. 
The Administrative Agent may consult with legal counsel (who may be counsel
for the Borrowers), independent accountants and other experts 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, accountants or experts.

The Administrative Agent
may perform any and all its duties and exercise its rights and powers by or
through any one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such
sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. 
The exculpatory provisions of the preceding paragraphs shall apply to
any such sub-agent and to the Related Parties of the Administrative Agent and
any such sub-agent, and shall apply to their respective activities in
connection with the syndication of the credit facilities provided for herein as
well as activities as Administrative Agent.

Subject to the
appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying
the Lenders, the Issuing Bank and the Borrower Representative.  Upon any such resignation, the Required
Lenders shall have the right, in consultation with the Borrowers, to appoint a
successor.  If no successor shall have
been so appointed by the Required Lenders and shall have accepted such
appointment within 30 days after the retiring Administrative Agent gives
notice of its resignation, then the retiring Administrative Agent may, on
behalf of the Lenders and the Issuing Bank, appoint a successor Administrative
Agent which shall be a commercial bank or an Affiliate of any such commercial
bank.  Upon the acceptance of its
appointment as Administrative Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and
duties of the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations hereunder.  The fees payable by the Borrowers to a successor
Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Borrowers and such successor.  After the Administrative Agent’s resignation
hereunder, the provisions of this Article and Section 9.03 shall
continue in effect for the benefit of such retiring Administrative 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 it was acting as Administrative
Agent.

Each Lender acknowledges
that it has, independently and without reliance upon the Administrative Agent
or any other Lender and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into
this Agreement.  Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender 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

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taking action under or based upon this Agreement, any
other Loan Document or related agreement or any document furnished hereunder or
thereunder.

Each Lender hereby agrees
that (a) it has requested a copy of each Report prepared by or on behalf
of the Administrative Agent; (b) the Administrative Agent (i) makes no
representation or warranty, express or implied, as to the completeness or
accuracy of any Report or any of the information contained therein or any
inaccuracy or omission contained in or relating to a Report and (ii) shall not
be liable for any information contained in any Report; (c) the Reports are
not comprehensive audits or examinations, and that any Person performing any
field examination will inspect only specific information regarding the Loan
Parties and will rely significantly upon the Loan Parties’ books and records,
as well as on representations of the Loan Parties’ personnel and that the
Administrative Agent undertakes no obligation to update, correct or supplement
the Reports; (d) it will keep all Reports confidential and strictly for
its internal use, not share the Report with any other Person except as
otherwise permitted pursuant to this Agreement; and (e) without limiting
the generality of any other indemnification provision contained in this
Agreement, it will pay and protect, and indemnify, defend, and hold the
Administrative Agent and any such other Person preparing a Report harmless from
and against, the claims, actions, proceedings, damages, costs, expenses, and
other amounts (including reasonable attorney fees) incurred by as the direct or
indirect result of any third parties who might obtain all or part of any Report
through the indemnifying Lender.

The
banks (or Affiliates thereof) identified in this Agreement, or hereafter
appointed by the Administrative Agent, as a “Co-Documentation Agent”, “Syndication
Agent” or other similar titles, shall not have any additional right, power,
liability, responsibility or duty under this Agreement other than those
applicable to all banks herein.

ARTICLE IX

Miscellaneous

Section 9.01           Notices.  (a) Except in the case of notices and
other communications expressly permitted to be given by telephone (and subject
to paragraph (b) below), 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 facsimile, as
follows:

(i)            if
to any Loan Party, to the Borrower Representative at:

Aventine Renewable
Energy, Inc.

1300 South Second Street

Pekin, Illinois  61554

Attention: Ajay Sabherwal

Facsimile No: 309-347-0742

(ii)           if
to the Administrative Agent, the Issuing Bank or the Swingline Lender, to
JPMorgan Chase Bank, N.A. at:

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JPMorgan Chase Bank, N.A.

2200 Ross Avenue, 6th Floor

Dallas, Texas 75201

Mail Code # TX1-2921

Attention: Timothy J. Whitefoot, Vice President

Facsimile No: (214) 965-2594

(iii)          if to any other Lender, to it at its address
or facsimile number set forth in its Administrative Questionnaire.

All such notices and other communications (i) sent by
hand or overnight courier service, or mailed by certified or registered mail,
shall be deemed to have been given when received or (ii) sent by facsimile
shall be deemed to have been given when sent, provided that if not given
during normal business hours for the recipient, shall be deemed to have been
given at the opening of business on the next Business Day for the recipient.

(b)           Notices
and other communications to the Lenders hereunder may be delivered or furnished
by electronic communications (including e-mail and internet or intranet
websites) pursuant to procedures approved by the Administrative Agent; provided
that the foregoing shall not apply to notices pursuant to Article II or
to compliance and no Event of Default certificates delivered pursuant to Section
5.01(d) unless otherwise agreed by the Administrative Agent and the
applicable Lender.  The Administrative
Agent or the Borrower Representative (on behalf of the Loan Parties) 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. All such notices and other communications (i) 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 not given during the normal
business hours of the recipient, such notice or communication shall be deemed
to have been given at the opening of business on the next Business Day for the
recipient, and (ii) 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 the foregoing clause (b)(i) of notification that such
notice or communication is available and identifying the website address
therefor.

(c)           Any
party hereto may change its address or facsimile number for notices and other
communications hereunder by notice to the other parties hereto.

Section 9.02                                Waivers;
Amendments.  (a) No failure or
delay by the Administrative Agent, the Issuing Bank or any Lender in exercising
any right or power hereunder or under any other Loan Document shall operate as
a waiver thereof, nor shall any single or partial exercise of any such right or
power, or any abandonment or discontinuance of steps to enforce such a right or
power, preclude any other or further exercise thereof or the exercise of any
other right or power.  The rights and
remedies of the Administrative Agent, the Issuing Bank and the Lenders hereunder
and under any other Loan Document are cumulative and are not exclusive of any
rights or remedies that they would otherwise have.  No waiver of any provision of any Loan
Document or consent to any departure by any Loan Party therefrom shall in any
event be

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effective unless the same shall be permitted by paragraph (b) of
this Section, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given.  Without limiting the generality of the
foregoing, the making of a Loan or issuance of a Letter of Credit shall not be
construed as a waiver of any Default, regardless of whether the Administrative
Agent, any Lender or the Issuing Bank may have had notice or knowledge of such
Default at the time.

(b)           Neither
this Agreement nor any other Loan Document nor any provision hereof or thereof
may be waived, amended or modified except (i) in the case of this
Agreement, pursuant to an agreement or agreements in writing entered into by
the Borrowers and the Required Lenders or, (ii) in the case of any other
Loan Document, pursuant to an agreement or agreements in writing entered into
by the Administrative Agent and the Loan Party or Loan Parties that are parties
thereto, with the consent of the Required Lenders; provided that no such
agreement shall (iii) increase the Commitment of any Lender without the
written consent of such Lender (provided that the Administrative Agent may make
Protective Advances as set forth in Section 2.04), (iv) reduce or
forgive the principal amount of any Loan or LC Disbursement or reduce the rate
of interest thereon, or reduce or forgive any interest or fees payable
hereunder, without the written consent of each Lender directly affected
thereby, (v) postpone any scheduled date of payment of the principal
amount of any Loan or LC Disbursement, or any date for the payment of any
interest, fees or other Obligations payable hereunder, or reduce the amount of,
waive or excuse any such payment, or postpone the scheduled date of expiration
of any Commitment, without the written consent of each Lender directly affected
thereby, (vi) change Section 2.18(b) or (d) in a manner that would
alter the manner in which payments are shared, without the written consent of
each Lender, (vii) increase the advance rates set forth in the definition
of Borrowing Base or add new categories of eligible assets or modify the
definitions of Eligible Accounts, Eligible Equipment, Eligible Inventory, or Eligible
Real Property (or any defined terms used in such definitions) in a manner that
would have the effect of increasing Availability, without the written consent
of the Supermajority Lenders, (viii) change any of the provisions of this
Section or the definition of “Required Lenders”
or any other provision of any Loan Document specifying the number or percentage
of Lenders (or Lenders of any Class) required to waive, amend or modify any
rights thereunder or make any determination or grant any consent thereunder,
without the written consent of each Lender, (ix) release any Loan
Guarantor from its obligation under its Loan Guaranty (except as otherwise
permitted herein or in the other Loan Documents), without the written consent
of each Lender, or (x) except as provided in clause (d) of this Section or
in any Collateral Document, release all or substantially all of the Collateral,
without the written consent of each Lender; provided further that no
such agreement shall amend, modify or otherwise affect the rights or duties of
the Administrative Agent, the Issuing Bank or the Swingline Lender hereunder
without the prior written consent of the Administrative Agent, the Issuing Bank
or the Swingline Lender, as the case may be. 
The Administrative Agent may also amend the Commitment Schedule
to reflect assignments entered into pursuant to Section 9.04

(c)           The
Lenders hereby irrevocably authorize the Administrative Agent, at its option
and in its sole discretion, to release any Liens granted to the Administrative
Agent by the Loan Parties on any Collateral (i) upon the termination of
the all Commitments, payment and satisfaction in full in cash of all Secured
Obligations (other than Unliquidated Obligations), and

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the cash collateralization of all Unliquidated Obligations in a manner
satisfactory to each affected Lender, (ii) constituting property being
sold or disposed of if the Loan Party disposing of such property certifies to
the Administrative Agent that the sale or disposition is made in compliance
with the terms of this Agreement (and the Administrative Agent may rely
conclusively on any such certificate, without further inquiry), (iii) constituting
property leased to a Loan Party under a lease which has expired or been
terminated in a transaction permitted under this Agreement, or (iv) as
required to effect any sale or other disposition of such Collateral in
connection with any exercise of remedies of the Administrative Agent and the
Lenders pursuant to Article VII. 
Except as provided in the preceding sentence, the Administrative Agent
will not release any Liens on Collateral without the prior written
authorization of the Required Lenders; provided that, (A)
the Administrative Agent may in its discretion, release its Liens on Collateral
valued in the aggregate not in excess of $15,000,000 during any calendar year
without the prior written authorization of the Required Lenders and (B) the
Borrowers Representative may request a release of the Fixed Asset Collateral and
any other Real Property owned by the Borrowers from the Liens under the Collateral
Documents and the Administrative Agent may in its discretion, release such Liens
on the Fixed Asset Collateral, but only so long as each of the following
conditions are satisfied: (1) the Fixed Asset Component shall be reduced to
zero ($0.00), (2) immediately after giving effect to the removal of the Fixed
Asset Component from the Borrowing Base, Availability will not be less than
$75,000,000, such excess Availability to be determined on a pro forma basis
(assuming all past due accounts payable of the Borrowers have been paid in full
in cash), (3) prior to and after giving effect to the removal of the Fixed
Asset Component from the Borrowing Base, no Default or Event of Default shall
exist, and (4) the Borrower Representative shall certify (and in the case of
clause (2) above, provide the Administrative Agent with pro forma calculations
in form and substance reasonably satisfactory to the Administrative Agent) to
the Administrative Agent and the Lenders of the satisfaction of each of the
foregoing requirements.  Any such
release shall not in any manner discharge, affect, or impair the Obligations or
any Liens (other than those expressly being released) upon (or obligations of
the Loan Parties in respect of) all interests retained by the Loan Parties,
including the proceeds of any sale, all of which shall continue to constitute
part of the Collateral.

(d)           If,
in connection with any proposed amendment, waiver or consent  requiring the consent of “each Lender” or “each Lender affected
thereby,” the consent of the Required Lenders is obtained, but the
consent of other necessary Lenders is not obtained (any such Lender whose
consent is necessary but not obtained being referred to herein as a “Non-Consenting Lender”), then the
Borrowers may elect to replace a Non-Consenting Lender as a Lender party to
this Agreement, provided that, concurrently with such
replacement, (i) another bank or other entity which is reasonably
satisfactory to the Borrowers and the Administrative Agent shall agree, as of
such date, to purchase for cash the Loans and other Obligations due to the
Non-Consenting Lender pursuant to an Assignment and Assumption and to become a
Lender for all purposes under this Agreement and to assume all obligations of
the Non-Consenting Lender to be terminated as of such date and to comply with
the requirements of clause (b) of Section 9.04, and (ii) the
Borrowers shall pay to such Non-Consenting Lender in same day funds on the day
of such replacement (A) all interest, fees and other amounts then accrued
but unpaid to such Non-Consenting Lender by the Borrowers hereunder to and
including the date of termination, including without limitation payments due to
such Non-Consenting Lender under Section 2.15 and Section 2.17,
and (B) an amount, if any, equal to the payment which would

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have been due to such Lender on the day of such replacement under Section
2.16 had the Loans of such Non-Consenting Lender been prepaid on such date
rather than sold to the replacement Lender.

Section 9.03                                Expenses;
Indemnity; Damage Waiver.  (a) The
Borrowers shall pay (i) all reasonable out-of-pocket expenses incurred by
the Administrative Agent and its Affiliates, including the reasonable fees,
charges and disbursements of Vinson & Elkins L.L.P. and local counsel in
applicable jurisdictions for the Administrative Agent, in connection with the
syndication and distribution (including, without limitation, via the internet
or through a service such as Intralinks) of the credit facilities provided for
herein, the preparation and administration of the Loan Documents or any
amendments, modifications or waivers of the provisions of the Loan Documents
(whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all reasonable out-of-pocket expenses incurred by the
Issuing Bank in connection with the issuance, amendment, renewal or extension
of any Letter of Credit or any demand for payment thereunder and (iii) all
out-of-pocket expenses incurred by the Administrative Agent, the Issuing Bank
or any Lender, including the fees, charges and disbursements of any counsel for
the Administrative Agent, the Issuing Bank or any Lender, in connection with
the enforcement, collection or protection of its rights in connection with the
Loan Documents, including its rights under this Section, or in connection with
the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket
expenses incurred during  any workout,
restructuring or negotiations in respect of such Loans or Letters of Credit.
Expenses being reimbursed by the Borrowers under this Section include, without
limiting the generality of the foregoing, costs and expenses incurred in
connection with:

(A)          appraisals
and insurance reviews;

(B)           field
examinations and the preparation of Reports based on the fees charged by a
third party retained by the Administrative Agent or the internally allocated
fees for each Person employed by the Administrative Agent with respect to each
field examination;

(C)           background
checks regarding senior management and/or key investors, as deemed necessary or
appropriate in the sole discretion of the Administrative Agent;

(D)          taxes,
fees and other charges for (1) lien and title searches and title insurance
and (2) recording the Mortgages, filing financing statements and
continuations, and other actions to perfect, protect, and continue the
Administrative Agent’s Liens;

(E)           sums
paid or incurred to take any action required of any Loan Party under the Loan
Documents that such Loan Party fails to pay or take; and

(F)           forwarding
loan proceeds, collecting checks and other items of payment, and establishing
and maintaining the accounts and lock boxes, and costs and expenses of
preserving and protecting the Collateral.

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All of the foregoing costs and expenses may be charged
to the Borrowers as Loans or to another deposit account, all as described in Section
2.18(c).

(b)           The
Borrowers shall, jointly and severally, indemnify the Administrative Agent, the
Issuing Bank and 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, penalties, liabilities and related expenses, including the fees,
charges and disbursements of any counsel for any Indemnitee, incurred by or
asserted against any Indemnitee arising out of, in connection with, or as a
result of (i) the execution or delivery of the Loan Documents or any
agreement or instrument contemplated thereby, the performance by the parties
hereto of their respective obligations thereunder or the consummation of the
Transactions or any other transactions contemplated hereby, (ii) any Loan
or Letter of Credit or the use of the proceeds therefrom (including any refusal
by the Issuing Bank to honor a demand for payment under a Letter of Credit if
the documents presented in connection with such demand do not strictly comply
with the terms of such Letter of Credit), (iii) any actual or alleged presence
or release of Hazardous Materials on or from any property owned or operated by
any Borrower or any of their Subsidiaries, or any Environmental Liability
related in any way to any Borrower or any of their Subsidiaries, except for the
presence or release of Hazardous Materials or Environmental Liabilities (which
presence, release or liability is not actually caused by any Loan Party) and
which first occurs or first arises after title to the relevant property is
vested in any Indemnitee or other party after the completion of foreclosure
proceedings or the granting of a deed-in-lieu of foreclosure or similar
transfer of title, or (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 and regardless of whether any Indemnitee is
a party thereto; provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages,
penalties, liabilities or related expenses are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted
from the gross negligence or willful misconduct of such Indemnitee.

(c)           To
the extent that the Borrowers fail to pay any amount required to be paid by it
to the Administrative Agent, the Issuing Bank or the Swingline Lender under
paragraph (a) or (b) of this Section, each Lender severally agrees to pay
to the Administrative Agent, the Issuing Bank or the Swingline Lender, as the
case may be, such Lender’s Applicable Percentage (determined as of the time
that the applicable unreimbursed expense or indemnity payment is sought) of
such unpaid amount; provided that the unreimbursed expense or
indemnified loss, claim, damage, penalty, liability or related expense, as the
case may be, was incurred by or asserted against the Administrative Agent, the
Issuing Bank or the Swingline Lender in its capacity as such.

(d)           To
the extent permitted by applicable law, no Loan Party shall assert, and each
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 or any agreement or instrument contemplated hereby, the Transactions,
any Loan or Letter of Credit or the use of the proceeds thereof.

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(e)           All
amounts due under this Section shall be payable not later than ten (10) days
after written demand therefor.

Section 9.04                                Successors
and Assigns.   (a) The provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby (including any Affiliate of
the Issuing Bank that issues any Letter of Credit), except that (i) the
Borrowers may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by the Borrowers without such consent shall be null and
void) and (ii) no Lender may assign or otherwise transfer its rights or
obligations hereunder except in accordance with this Section.  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby (including any
Affiliate of the Issuing Bank that issues any Letter of Credit), Participants
(to the extent provided in paragraph (c) of this Section) and, to the
extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent, the Issuing Bank and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

(b)           (i) Subject
to the conditions set forth in paragraph (b)(ii) below, any Lender may assign
to one or more assignees all or a portion of its rights and obligations under
this Agreement (including all or a portion of its Commitment and the Loans at
the time owing to it) with the prior written consent (such consent not to be
unreasonably withheld) of:

(A)          the
Borrower Representative, provided that no consent of the Borrower
Representative shall be required for an assignment to a Lender, an Affiliate of
a Lender, an Approved Fund or, if an Event of Default has occurred and is
continuing, any other assignee;

(B)           the
Administrative Agent, provided that any assignment to a Lender, an
Affiliate of a Lender or an Approved Fund shall not be unreasonably withheld;
and

(C)           the
Issuing Bank, provided that any assignment to a Lender, an Affiliate of
a Lender or an Approved Fund shall not be unreasonably withheld.

(ii)           Assignments
shall be subject to the following additional conditions:

(A)          except
in the case of an assignment to a Lender or an Affiliate of a Lender or an
assignment of the entire remaining amount of the assigning Lender’s Commitment
or Loans of any Class, the amount of the Commitment or Loans of the assigning
Lender subject to each such assignment (determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent) shall not be less than $5,000,000 unless each of the
Borrower Representative and the Administrative Agent otherwise consent, provided
that no such consent of the Borrower Representative shall be required if an
Event of Default has occurred and is continuing;

(B)           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;

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(C)           the
parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation
fee of $3,500; and

(D)          the
assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire in which the assignee designates one or
more Credit Contacts to whom all syndicate-level information (which may contain
material non-public information about the Loan Parties and their Related
Parties or their respective securities) will be made available and who may
receive such information in accordance with the assignee’s compliance
procedures and applicable laws, including Federal and state securities laws.

For the purposes of this Section 9.04(b), the term “Approved Fund” has the following meaning:

“Approved
Fund” means any Person (other than a natural person) that is
engaged in making, purchasing, holding or investing in bank loans and similar
extensions of credit in the ordinary course of its business and that is
administered or managed by (a) a Lender, (b) an Affiliate of a Lender
or (c) an entity or an Affiliate of an entity that administers or manages
a Lender.

(iii)          Subject to acceptance and recording thereof
pursuant to paragraph (b)(iv) of this Section, from and after the
effective date specified in each Assignment and Assumption the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender
under this Agreement, and the assigning Lender thereunder shall, to the extent
of the interest assigned by such Assignment and Assumption, be released from
its obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Section 2.15, Section 2.16, Section
2.17 and Section 9.03).  Any
assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this Section 9.04 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 paragraph (c) of this
Section.

(iv)          The
Administrative Agent, acting for this purpose as an agent of the Borrowers,
shall maintain at one of its offices a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses
of the Lenders, and the Commitment of, and principal amount of the Loans and LC
Disbursements 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 Borrowers, the Administrative Agent, the Issuing Bank and
the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary.  The Register shall be available for
inspection by the Borrowers, the Issuing Bank and any Lender, at any reasonable
time and from time to time upon reasonable prior notice.

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

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Questionnaire (unless the assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in paragraph (b)
of this Section and any written consent to such assignment required by
paragraph (b) of this Section, the Administrative Agent shall accept such
Assignment and Assumption and record the information contained therein in the
Register; provided
that if either the assigning Lender or the assignee shall have failed to make
any payment required to be made by it pursuant to Section 2.05, Section
2.06(d) or Section 2.06(e), Section 2.07(b), Section
2.18(d) or Section 9.03(c), the Administrative Agent shall have no
obligation to accept such Assignment and Assumption and record the information
therein in the Register unless and until such payment shall have been made in
full, together with all accrued interest thereon.  No assignment shall be effective for purposes
of this Agreement unless it has been recorded in the Register as provided in
this paragraph.

(c)           (i)
Any Lender may, without the consent of the Borrowers, the Administrative Agent,
the Issuing Bank or the Swingline Lender, sell participations to one or more
banks or other entities (a “Participant”)
in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans owing to
it); provided that (A) such Lender’s obligations under this Agreement
shall remain unchanged, (B) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations and (C) the
Borrowers, the Administrative Agent, the Issuing Bank and the other Lenders
shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement.  Any agreement or instrument pursuant to which
a Lender sells such a participation shall provide that such Lender shall retain
the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided that
such agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver
described in the first proviso to Section 9.02(b) that affects such
Participant.  Subject to paragraph (c)(ii)
of this Section, the Borrowers agree that each Participant shall be entitled to
the benefits of Section 2.15, Section 2.16 and Section 2.17
to the same extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b) of this Section. 
To the extent permitted by law, each Participant also shall be entitled
to the benefits of Section 9.08 as though it were a Lender, provided
such Participant agrees to be subject to Section 2.18(c) as though it
were a Lender.

(ii)           A
Participant shall not be entitled to receive any greater payment under Section
2.15 or Section 2.17 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
Borrower Representative’s prior written consent.  A Participant that would be a Foreign Lender
if it were a Lender shall not be entitled to the benefits of Section 2.17 unless the Borrower
Representative is notified of the participation sold to such Participant and
such Participant agrees, for the benefit of the Borrowers, to comply with Section
2.17(e) as though it were a Lender.

(d)           Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such
Lender, including without limitation any pledge or assignment to secure
obligations to a Federal Reserve Bank, and this Section shall not apply to any
such pledge or assignment of a security interest; provided that

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no such pledge or assignment of a security interest shall release a
Lender from any of its obligations hereunder or substitute any such pledgee or
assignee for such Lender as a party hereto.

Section 9.05           Survival.  All covenants, agreements, representations
and warranties made by the Loan Parties in the Loan Documents and in the
certificates or other instruments 
delivered in connection with or pursuant to this Agreement or any other
Loan Document shall be considered to have been relied upon by the other parties
hereto and shall survive the execution and delivery of the Loan Documents and
the making of any Loans and issuance of any Letters of Credit, regardless of
any investigation made by any such other party or on its behalf and
notwithstanding that the Administrative Agent, the Issuing Bank or any Lender
may have had notice or knowledge of any Default or incorrect representation or
warranty at the time any credit is extended hereunder, and shall continue in
full force and effect as long as the principal of or any accrued interest on
any Loan or any fee or any other amount payable under this Agreement is
outstanding and unpaid or any Letter of Credit is outstanding and so long as
the Commitments have not expired or terminated. 
The provisions of Section 2.15, Section 2.16, Section
2.17 and Section 9.03 and Article VIII shall survive and
remain in full force and effect regardless of the consummation of the
transactions contemplated hereby, the repayment of the Loans, the expiration or
termination of the Letters of Credit and the Commitments or the termination of
this Agreement or any provision hereof.

Section 9.06           Counterparts; Integration; Effectiveness.  This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original, but all of which when taken together
shall constitute a single contract.  This
Agreement, the other Loan Documents and any separate letter agreements with
respect to fees payable to the Administrative Agent constitute the entire
contract among the parties relating to the subject matter hereof and supersede
any and all previous agreements and understandings, oral or written, relating
to the subject matter hereof.  Except as
provided in Section 4.01, this Agreement shall become effective when it
shall have been executed by the Administrative Agent and when the
Administrative Agent shall have received counterparts hereof which, when taken
together, bear the signatures of each of the other parties hereto, and
thereafter shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. 
Delivery of an executed counterpart of a signature page of this
Agreement by facsimile shall be effective as delivery of a manually executed
counterpart of this Agreement.

Section 9.07           Severability.  Any provision of any Loan Document held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions thereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

Section 9.08           Right of Setoff.  If an Event of Default shall have occurred
and be continuing, each Lender and each of its Affiliates is hereby authorized
at any time and from time to time, to the fullest extent permitted by law, to
set off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other obligations at any time owing
by such Lender or Affiliate to or for the credit or the account of the
Borrowers or

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such Loan Guarantor against any of and all the Secured Obligations held
by such Lender, irrespective of whether or not such Lender shall have made any
demand under the Loan Documents and although such obligations may be
unmatured.  The applicable Lender shall
notify the Borrower Representative and the Administrative Agent of such set-off
or application, provided that any failure to give or any delay in giving
such notice shall not affect the validity of any such set-off or application
under this Section.  The rights of each
Lender under this Section are in addition to other rights and remedies
(including other rights of setoff) which such Lender may have.

Section 9.09                                Governing
Law; Jurisdiction; Consent to Service of Process.  (a) The Loan Documents (other than those
containing a contrary express choice of law provision) shall be governed by and
construed in accordance with the laws of the State of New York, but giving
effect to federal laws applicable to national banks.

(b)           Each Loan Party
hereby irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of any U.S. Federal or New York State court sitting
in New York, New York in any action or proceeding arising out of or relating to
any Loan Documents, or for recognition or enforcement of any judgment, and each
of the parties hereto hereby 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 or, to the extent permitted by law, in such Federal
court.  Each of the parties hereto 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 any other Loan Document shall affect any right that the
Administrative Agent, the Issuing Bank or any Lender may otherwise have to
bring any action or proceeding relating to this Agreement or any other Loan
Document against any Loan Party or its properties in the courts of any
jurisdiction.

(c)           Each
Loan Party hereby irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection which it may now or
hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Agreement or any other Loan Document in any court
referred to in paragraph (b) of this Section.  Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

(d)           Each
party to this Agreement irrevocably consents to service of process in the
manner provided for notices in Section 9.01.  Nothing in this Agreement or any other Loan
Document will affect the right of any party to this Agreement to serve process
in any other manner permitted by law.

Section 9.10                                WAIVER
OF JURY TRIAL.  EACH PARTY HERETO
HEREBY 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, ANY OTHER LOAN DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY).  EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF

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ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) 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.

Section 9.11           Headings.  Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of
this Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

Section 9.12           Confidentiality.  Each of the Administrative Agent, the Issuing
Bank and the Lenders agrees to maintain the confidentiality of the Information
(as defined below), except that Information may be disclosed (a) to its and its
Affiliates’ directors, officers, employees and agents, including accountants,
legal counsel and other advisors (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 requested by any regulatory authority, (c) to the extent required by
Requirement of Laws 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 any other Loan Document or the enforcement of rights hereunder or
thereunder, (f) subject to an agreement containing provisions substantially the
same as those of this Section, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations
under this Agreement or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to the Loan Parties
and their obligations, (g) with the consent of the Borrower Representative or (h)
to the extent such Information (i) becomes publicly available other than as a
result of a breach of this Section or (ii) becomes available to the
Administrative Agent, the Issuing Bank or any Lender on a non-confidential
basis from a source other than the Borrowers. 
For the purposes of this Section, “Information”
means all information received from the Borrowers relating to the Borrowers or
their business, other than any such information that is available to the
Administrative Agent, the Issuing Bank or any Lender on a non-confidential
basis prior to disclosure by the Borrowers; provided that, in the case
of information received from the Borrowers after the date hereof, such
information is clearly identified at the time of delivery as confidential.  Any Person required to maintain the
confidentiality of Information as provided in this Section 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.

EACH LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED
IN Section 9.12 FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE
MATERIAL NON-PUBLIC INFORMATION CONCERNING HOLDINGS AND ITS AFFILIATES AND  THEIR RELATED PARTIES OR THEIR RESPECTIVE
SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING
THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH
MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE

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WITH THOSE PROCEDURES AND
APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.

ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND
AMENDMENTS, FURNISHED BY THE BORROWERS OR THE ADMINISTRATIVE AGENT PURSUANT TO,
OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL
INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT HOLDINGS,
THE LOAN PARTIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES.  ACCORDINGLY, EACH LENDER REPRESENTS TO THE
BORROWERS AND THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS
ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT
MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE
PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.

Section 9.13           Several Obligations; Nonreliance;
Violation of Law.  The respective obligations
of the Lenders hereunder are several and not joint and the failure of any
Lender to make any Loan or perform any of its obligations hereunder shall not
relieve any other Lender from any of its obligations hereunder. Each Lender
hereby represents that it is not relying on or looking to any margin stock for
the repayment of the Borrowings provided for herein.  Anything contained in this Agreement to the
contrary notwithstanding, neither the Issuing Bank nor any Lender shall be
obligated to extend credit to the Borrowers in violation of any Requirement of
Law.

Section 9.14           USA PATRIOT Act.  Each Lender that is subject to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the “Act”)
hereby notifies the Borrowers that pursuant to the requirements of the Act, it
is required to obtain, verify and record information that identifies the
Borrowers, which information includes the names and addresses of the Borrowers
and other information that will allow such Lender to identify the Borrowers in
accordance with the Act.

Section 9.15           Disclosure.  Each Loan Party and each Lender hereby
acknowledges and agrees that the Administrative Agent and/or its Affiliates
from time to time may hold investments in, make other loans to or have other
relationships with any of the Loan Parties and their respective Affiliates.

Section 9.16           Appointment for Perfection.  Each Lender hereby appoints each other
Lender as its agent for the purpose of perfecting Liens, for the benefit of the
Administrative Agent and the Lenders, in assets which, in accordance with
Article 9 of the UCC or any other applicable law can be perfected only by
possession.  Should any Lender (other
than the Administrative Agent) obtain possession of any such Collateral, such
Lender shall notify the Administrative Agent thereof, and, promptly upon the
Administrative Agent’s request therefor shall deliver such Collateral to the
Administrative Agent or otherwise deal with such Collateral in accordance with
the Administrative Agent’s instructions.

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Section 9.17           Interest Rate Limitation.  Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together
with all fees, charges and other amounts which are treated as interest on such
Loan under applicable law (collectively the “Charges”),
shall exceed the maximum lawful rate (the “Maximum Rate”)
which may be contracted for, charged, taken, received or reserved by the Lender
holding such Loan in accordance with applicable law, the rate of interest
payable in respect of such Loan hereunder, together with all Charges payable in
respect thereof, shall be limited to the Maximum Rate and, to the extent
lawful, the interest and Charges that would have been payable in respect of such
Loan but were not payable as a result of the operation of this Section shall be
cumulated and the interest and Charges payable to such Lender in respect of
other Loans or periods shall be increased (but not above the Maximum Rate
therefor) until such cumulated amount, together with interest thereon at the
Federal Funds Effective Rate to the date of repayment, shall have been received
by such Lender.

ARTICLE X

Loan Guaranty

Section 10.01         Guaranty.  Each Loan Guarantor (other than those that
have delivered a separate Guaranty) hereby agrees that it is jointly and
severally liable for, and, as primary obligor and not merely as surety,
absolutely and unconditionally guarantees to the Lenders the prompt payment
when due, whether at stated maturity, upon acceleration or otherwise, and at
all times thereafter, of the Secured Obligations and all costs and expenses
including, without limitation, all court costs and attorneys’ and paralegals’
fees (including allocated costs of in-house counsel and paralegals) and expenses
paid or incurred by the Administrative Agent, the Issuing Bank and the Lenders
in endeavoring to collect all or any part of the Secured Obligations from, or
in prosecuting any action against, any Borrower, any Loan Guarantor or any
other guarantor of all or any part of the Secured Obligations (such costs and
expenses, together with the Secured Obligations, collectively the “Guaranteed Obligations”). Each Loan
Guarantor further agrees that the Guaranteed Obligations may be extended or
renewed in whole or in part without notice to or further assent from it, and
that it remains bound upon its guarantee notwithstanding any such extension or
renewal. All
terms of this Loan Guaranty apply to and may be enforced by or on behalf of any
domestic or foreign branch or Affiliate of any Lender that extended any portion
of the Guaranteed Obligations.

Section 10.02         Guaranty of Payment.  This Loan Guaranty is a guaranty of payment
and not of collection. Each Loan Guarantor waives any right to require the
Administrative Agent, the Issuing Bank or any Lender to sue any Borrower, any
Loan Guarantor, any other guarantor, or any other person obligated for all or
any part of the Guaranteed Obligations (each, an “Obligated
Party”), or otherwise to enforce its payment against any
collateral securing all or any part of the Guaranteed Obligations.

Section 10.03         No Discharge or Diminishment of Loan
Guaranty.  (a) Except as otherwise
provided for herein, the obligations of each Loan Guarantor hereunder are
unconditional and absolute and not subject to any reduction, limitation,
impairment or termination for any reason (other than the indefeasible payment
in full in cash of the Guaranteed Obligations), including:  (i) any claim of waiver, release, extension,
renewal, settlement,

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surrender, alteration, or compromise of any of the Guaranteed
Obligations, by operation of law or otherwise; (ii) any change in the corporate
existence, structure or ownership of any Borrower or any other guarantor of or
other person liable for any of the Guaranteed Obligations; (iii) any
insolvency, bankruptcy, reorganization or other similar proceeding affecting
any Obligated Party, or their assets or any resulting release or discharge of
any obligation of any Obligated Party; or (iv) the existence of any claim,
setoff or other rights which any Loan Guarantor may have at any time against
any Obligated Party, the Administrative Agent, the Issuing Bank, any Lender, or
any other person, whether in connection herewith or in any unrelated
transactions.

(b)           The
obligations of each Loan Guarantor hereunder are not subject to any defense or
setoff, counterclaim, recoupment, or termination whatsoever by reason of the
invalidity, illegality, or unenforceability of any of the Guaranteed
Obligations or otherwise, or any provision of applicable law or regulation
purporting to prohibit payment by any Obligated Party, of the Guaranteed
Obligations or any part thereof.

(c)           Further,
the obligations of any Loan Guarantor hereunder are not discharged or impaired
or otherwise affected by: (i) the failure of the Administrative Agent, the
Issuing Bank or any Lender to assert any claim or demand or to enforce any
remedy with respect to all or any part of the Guaranteed Obligations; (ii) any
waiver or modification of or supplement to any provision of any agreement
relating to the Guaranteed Obligations; (iii) any release, non-perfection, or
invalidity of any indirect or direct security for the obligations of any
Borrower for all or any part of the Guaranteed Obligations or any obligations
of any other guarantor of or other person liable for any of the Guaranteed
Obligations; (iv) any action or failure to act by the Administrative Agent, the
Issuing Bank or any Lender with respect to any collateral securing any part of
the Guaranteed Obligations; or (v) any default, failure or delay, willful or
otherwise, in the payment or performance of any of the Guaranteed Obligations,
or any other circumstance, act, omission or delay that might in any manner or
to any extent vary the risk of such Loan Guarantor or that would otherwise
operate as a discharge of any Loan Guarantor as a matter of law or equity
(other than the indefeasible payment in full in cash of the Guaranteed
Obligations).

Section 10.04                          Defenses
Waived.  To the fullest extent
permitted by applicable law, each Loan Guarantor hereby waives any defense
based on or arising out of any defense of any Borrower or any Loan Guarantor or
the unenforceability of all or any part of the Guaranteed Obligations from any
cause, or the cessation from any cause of the liability of any Borrower or any
Loan Guarantor, other than the indefeasible payment in full in cash of the
Guaranteed Obligations. Without limiting the generality of the foregoing, each Loan Guarantor irrevocably waives acceptance
hereof, presentment, demand, protest and, to the fullest extent permitted by
law, any notice not provided for herein, as well as any requirement that at any
time any action be taken by any person against any Obligated Party, or any other person.  The Administrative Agent may, at its
election, foreclose on any Collateral held by it by one or more judicial or
nonjudicial sales, accept an assignment of any such Collateral in lieu of
foreclosure or otherwise act or fail to act with respect to any collateral
securing all or a part of the Guaranteed Obligations, compromise or adjust any
part of the Guaranteed Obligations, make any other accommodation with any
Obligated Party or exercise any other right or remedy available to it against
any Obligated Party, without affecting or impairing in any way the liability of
such Loan Guarantor under this Loan Guaranty except to the extent the
Guaranteed Obligations have been fully and indefeasibly paid

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in cash.  To the fullest extent
permitted by applicable law, each Loan Guarantor waives any defense arising out
of any such election even though that election may operate, pursuant to
applicable law, to impair or extinguish any right of reimbursement or
subrogation or other right or remedy of any Loan Guarantor against any
Obligated Party or any security.

Section 10.05         Rights of Subrogation.  No Loan Guarantor will assert any right,
claim or cause of action, including, without limitation, a claim of
subrogation, contribution or indemnification that it has against any Obligated
Party, or any collateral, until the Loan Parties and the Loan Guarantors have
fully performed all their obligations to the Administrative Agent, the Issuing
Bank and the Lenders.

Section 10.06         Reinstatement; Stay of Acceleration.  If at any time any payment of any portion of
the Guaranteed Obligations is rescinded or must otherwise be restored or
returned upon the insolvency, bankruptcy, or reorganization of any Borrower or
otherwise, each Loan Guarantor’s obligations under this Loan Guaranty with
respect to that payment shall be reinstated at such time as though the payment
had not been made and whether or not the Administrative Agent, the Issuing Bank
and the Lenders are in possession of this Loan Guaranty. If acceleration of the time for payment of any of
the Guaranteed Obligations is stayed upon the insolvency, bankruptcy or
reorganization of any Borrower, all such amounts otherwise subject to
acceleration under the terms of any agreement relating to the Guaranteed
Obligations shall nonetheless be payable by the Loan Guarantors forthwith on
demand by the Lender.

Section 10.07         Information.  Each Loan Guarantor assumes all
responsibility for being and keeping itself informed of the Borrowers’
financial condition and assets, and of all other circumstances bearing upon the
risk of nonpayment of the Guaranteed Obligations and the nature, scope and
extent of the risks that each Loan Guarantor assumes and incurs under this Loan
Guaranty, and agrees that neither the Administrative Agent, the Issuing Bank
nor any Lender shall have any duty to advise any Loan Guarantor of information
known to it regarding those circumstances or risks.

Section 10.08         Termination.  Each Loan Guarantor acknowledges and agrees
that this Loan Guaranty is irrevocable until the Guaranteed Obligations have
been paid in full and the Commitments have been terminated.  The Lenders may continue to make loans or
extend credit to the Borrowers based on this Loan Guaranty.  Each Loan Guarantor will continue to be
liable to the Lenders for any Guaranteed Obligations created, assumed or
committed to from time to time, and all subsequent renewals, extensions,
modifications and amendments with respect to, or substitutions for, all or any
part of that Guaranteed Obligations.

Section 10.09         Taxes. 
All payments of the Guaranteed Obligations will be made by each Loan
Guarantor free and clear of and without deduction for any Indemnified Taxes or
Other Taxes; provided that if any Loan Guarantor shall be required to
deduct any Indemnified Taxes or Other Taxes from such payments, then (a) 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) the Administrative Agent, Lender or Issuing Bank (as the case may
be) receives an amount equal to the sum it would have received had no such
deductions been made, (b) such Loan Guarantor shall make such deductions and (c)
such Loan Guarantor shall

 107
 

pay the full amount deducted to the relevant Governmental Authority in
accordance with applicable law.

Section 10.10         Maximum Liability.  The provisions of this Loan Guaranty are
severable, and in any action or proceeding involving any state corporate law,
or any state, federal or foreign bankruptcy, insolvency, reorganization or other
law affecting the rights of creditors generally, if the obligations of any Loan
Guarantor under this Loan Guaranty would otherwise be held or determined to be
avoidable, invalid or unenforceable on account of the amount of such Loan
Guarantor’s liability under this Loan Guaranty, then, notwithstanding any other
provision of this Loan Guaranty to the contrary, the amount of such liability
shall, without any further action by the Loan Guarantors or the Lenders, be
automatically limited and reduced to the highest amount that is valid and
enforceable as determined in such action or proceeding (such highest amount
determined hereunder being the relevant Loan Guarantor’s “Maximum
Liability”.  This Section
with respect to the Maximum Liability of each Loan Guarantor is intended solely
to preserve the rights of the Lenders to the maximum extent not subject to
avoidance under applicable law, and no Loan Guarantor nor any other person or
entity shall have any right or claim under this Section with respect to such
Maximum Liability, except to the extent necessary so that the obligations of
any Loan Guarantor hereunder shall not be rendered voidable under applicable
law. Each Loan Guarantor agrees that the
Guaranteed Obligations may at any time and from time to time exceed the Maximum
Liability of each Loan Guarantor without impairing this Loan Guaranty or
affecting the rights and remedies of the Lenders hereunder, provided that, nothing in this sentence shall be construed to increase
any Loan Guarantor’s obligations hereunder beyond its Maximum Liability.

Section 10.11         Contribution.  In the event any Loan Guarantor (a “Paying Guarantor”) shall make any
payment or payments under this Loan Guaranty or shall suffer any loss as a
result of any realization upon any collateral granted by it to secure its
obligations under this Loan Guaranty, each other Loan Guarantor (each a “Non-Paying Guarantor”) shall
contribute to such Paying Guarantor an amount equal to such Non-Paying
Guarantor’s “Applicable Percentage” of such payment or payments made, or losses
suffered, by such Paying Guarantor.  For
purposes of this Article X, each Non-Paying Guarantor’s “Applicable Percentage” with respect
to any such payment or loss by a Paying Guarantor shall be determined as of the
date on which such payment or loss was made by reference to the ratio of (a) such
Non-Paying Guarantor’s Maximum Liability as of such date (without giving effect
to any right to receive, or obligation to make, any contribution hereunder) or,
if such Non-Paying Guarantor’s Maximum Liability has not been determined, the
aggregate amount of all monies received by such Non-Paying Guarantor from the
Borrowers after the date hereof (whether by loan, capital infusion or by other
means) to (b) the aggregate Maximum Liability of all Loan Guarantors hereunder
(including such Paying Guarantor) as of such date (without giving effect to any
right to receive, or obligation to make, any contribution hereunder), or to the
extent that a Maximum Liability has not been determined for any Loan Guarantor,
the aggregate amount of all monies received by such Loan Guarantors from the
Borrowers after the date hereof (whether by loan, capital infusion or by other
means).  Nothing in this provision shall
affect any Loan Guarantor’s several liability for the entire amount of the
Guaranteed Obligations (up to such Loan Guarantor’s Maximum Liability).  Each of the Loan Guarantors covenants and
agrees that its right to receive any contribution under this Loan Guaranty from
a Non-Paying Guarantor shall be subordinate and junior in right of payment to
the payment in full in cash of the Guaranteed Obligations.  This

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provision is for the benefit of both the Administrative Agent, the
Issuing Bank, the Lenders and the Loan Guarantors and may be enforced by any
one, or more, or all of them in accordance with the terms hereof.

Section 10.12         Liability Cumulative.  The liability of each Loan Party as a Loan
Guarantor under this Article X is in addition to and shall be cumulative
with all liabilities of each Loan Party to the Administrative Agent, the
Issuing Bank and the Lenders under this Agreement and the other Loan Documents
to which such Loan Party is a party or in respect of any obligations or
liabilities of the other Loan Parties, without any limitation as to amount,
unless the instrument or agreement evidencing or creating such other liability
specifically provides to the contrary.

ARTICLE XI

The Borrower Representative

Section
11.01         Appointment;
Nature of Relationship.  Holdings is
hereby appointed by each of the Borrowers as its contractual representative
(herein referred to as the “Borrower Representative”)
hereunder and under each other Loan Document, and each of the Borrowers
irrevocably authorizes the Borrower Representative to act as the contractual representative
of such Borrower with the rights and duties expressly set forth herein and in
the other Loan Documents.  The Borrower
Representative agrees to act as such contractual representative upon the
express conditions contained in this Article XI.  Additionally, the Borrowers hereby appoint
the Borrower Representative as their agent to receive all of the proceeds of
the Loans in the Funding Account(s), at which time the Borrower Representative
shall promptly disburse such Loans to the appropriate Borrower.  The Administrative Agent and the Lenders, and
their respective officers, directors, agents or employees, shall not be liable
to the Borrower Representative or any Borrower for any action taken or omitted
to be taken by the Borrower Representative or the Borrowers pursuant to this Section
11.01.

Section
11.02         Powers.  The Borrower Representative shall have and
may exercise such powers under the Loan Documents as are specifically delegated
to the Borrower Representative by the terms of each thereof, together with such
powers as are reasonably incidental thereto. 
The Borrower Representative shall have no implied duties to the
Borrowers, or any obligation to the Lenders to take any action thereunder
except any action specifically provided by the Loan Documents to be taken by
the Borrower Representative.

Section
11.03         Employment
of Agents.  The Borrower
Representative may execute any of its duties as the Borrower Representative
hereunder and under any other Loan Document by or through authorized officers
or agents.

Section
11.04         Notices.  Each Borrower shall immediately notify the
Borrower Representative of the occurrence of any Default or Event of Default
hereunder referring to this Agreement describing such Default or Event of Default
and stating that such notice is a “notice of default.”  In the event that the Borrower Representative
receives such a notice, the Borrower Representative shall give prompt notice
thereof to the Administrative Agent and the Lenders.

 109
 

Any notice
provided to the Borrower Representative hereunder shall constitute notice to
each Borrower on the date received by the Borrower Representative.

Section
11.05         Successor
Borrower Representative.  Upon the prior
written consent of the Administrative Agent, the Borrower Representative may
resign at any time, such resignation to be effective upon the appointment of a
successor Borrower Representative; provided that such successor shall be a Loan
Party.  The Administrative Agent shall
give prompt written notice of such resignation to the Lenders.

Section
11.06         Execution
of Loan Documents; Borrowing Base Certificate. 
The Borrowers hereby empower and authorize the Borrower Representative,
on behalf of the Borrowers, to execute and deliver to the Administrative Agent
and the Lenders the Loan Documents and all related agreements, certificates,
documents, or instruments as shall be necessary or appropriate to effect the
purposes of the Loan Documents, including without limitation, the Borrowing
Base Certificates and the Compliance Certificates.  Each Borrower agrees that any action taken by
the Borrower Representative or the Borrowers in accordance with the terms of
this Agreement or the other Loan Documents, and the exercise by the Borrower
Representative of its powers set forth therein or herein, together with such
other powers that are reasonably incidental thereto, shall be binding upon all
of the Borrowers.

Section
11.07         Reporting.  Each Borrower hereby agrees that such Borrower
shall furnish promptly after each fiscal month to the Borrower Representative a
copy of its Borrowing Base Certificate and any other certificate or report
required hereunder or requested by the Borrower Representative on which the
Borrower Representative shall rely to prepare the Borrowing Base Certificates
and Compliance Certificates required pursuant to the provisions of this
Agreement.

 

 110

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

	
  

  	
  BORROWERS:

  
	
   

  	
   

  
	
   

  	
  AVENTINE RENEWABLE ENERGY,

  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William J. Brennan

  
	
   

  	
  Name:

  	
  William J. Brennan

  
	
   

  	
  Title:

  	
  Chief Accounting and Compliance Officer

  
	
   

  	
   

  
	
   

  	
  AVENTINE RENEWABLE ENERGY –

  MT VERNON, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William J. Brennan

  
	
   

  	
  Name:

  	
  William J. Brennan

  
	
   

  	
  Title:

  	
  Chief Accounting and Compliance Officer

  
	
   

  	
   

  
	
   

  	
  AVENTINE RENEWABLE ENERGY –

  AURORA WEST, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William J. Brennan

  
	
   

  	
  Name:

  	
  William J. Brennan

  
	
   

  	
  Title:

  	
  Chief Accounting and Compliance Officer

  
	
   

  	
   

  
	
   

  	
  OTHER LOAN PARTIES:

  
	
   

  	
   

  
	
   

  	
  AVENTINE RENEWABLE ENERGY

  HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William J. Brennan

  
	
   

  	
  Name:

  	
  William J. Brennan

  
	
   

  	
  Title:

  	
  Chief Accounting and Compliance Officer

  
	
   

  	
   

  
	
   

  	
  AVENTINE RENEWABLE ENERGY,

  LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William J. Brennan

  
	
   

  	
  Name:

  	
  William J. Brennan

  
	
   

  	
  Title:

  	
  Chief Accounting and Compliance Officer

  
	
   

  	
   

  
	
  

  	
  AVENTINE POWER, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William J. Brennan

  
	
   

  	
  Name:

  	
  William J. Brennan

  
	
   

  	
  Title:

  	
  Chief Accounting and Compliance Officer

  

 

Signature Page to Credit
Agreement

 

	
  

  	
  LENDERS:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  individually, as Administrative Agent,

  Issuing Bank and Swingline Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Timothy J. Whitefoot

  
	
   

  	
  Name:

  	
  Timothy J. Whitefoot

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A., as
  Syndication Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel R. Petrik

  
	
   

  	
  Name:

  	
  Daniel R. Petrik

  
	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UBS LOAN FINANCE LLC, as a
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mary E. Evans

  
	
   

  	
  Name:

  	
  Mary E. Evans

  
	
   

  	
  Title:

  	
  Associate Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Cerniglia

  
	
   

  	
  Name:

  	
  Michael Cerniglia

  
	
   

  	
  Title:

  	
  Director

  

 

Signature Page to Credit
Agreement

 

	
  

  	
  WELLS FARGO FOOTHILL, LLC, as Co-Documentation
  Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Rina Shinoda

  
	
   

  	
  Name:

  	
  Rina Shinoda

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BMO CAPITAL MARKETS FINANCING, INC.,
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William P. Robin

  
	
   

  	
  Name:

  	
  William P. Robin

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SIEMENS FINANCIAL SERVICES, INC.,
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark Picillo

  
	
   

  	
  Name:

  	
  Mark Picillo

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION,
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jayne M. Weingart

  
	
   

  	
  Name:

  	
  Jayne M. Weingart

  
	
   

  	
  Title:

  	
  Vice President

  

 

Signature Page to Credit
Agreement

COMMITMENT SCHEDULE

	
  Lender

  	
   

  	
  Revolving Commitment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  JPMorgan Chase
  Bank, N.A.

  	
   

  	
  $

  	
  38,000,000

  	
   

  
	
  Bank of America,
  N.A.

  	
   

  	
  $

  	
  32,000,000

  	
   

  
	
  UBS Loan Finance
  LLC

  	
   

  	
  $

  	
  32,000,000

  	
   

  
	
  Wells Fargo
  Foothill, LLC

  	
   

  	
  $

  	
  32,000,000

  	
   

  
	
  BMO Capital
  Markets Financing, Inc.

  	
   

  	
  $

  	
  22,000,000

  	
   

  
	
  Siemens
  Financial Services, Inc.

  	
   

  	
  $

  	
  22,000,000

  	
   

  
	
  Wachovia Bank,
  National Association

  	
   

  	
  $

  	
  22,000,000

  	
   

  
	
  Total

  	
   

  	
  $

  	
  200,000,000

  	
   

  

 

EXHIBIT A

ASSIGNMENT AND ASSUMPTION

This Assignment and Assumption (the “Assignment and Assumption”) is
dated as of the Effective Date set forth below and is entered into by and
between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein
shall have the meanings given to them in the Credit Agreement identified below
(as amended, the “Credit Agreement”),
receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth
in Annex 1 attached hereto are hereby agreed to and incorporated herein by
reference and made a part of this Assignment and Assumption as if set forth
herein in full.

For an agreed consideration, the Assignor hereby
irrevocably sells and assigns to the Assignee, and the Assignee hereby
irrevocably purchases and assumes from the Assignor, subject to and in
accordance with the Standard Terms and Conditions and the Credit Agreement, as
of the Effective Date inserted by the Administrative Agent as contemplated
below (i) all of the Assignor’s rights and obligations in its capacity as a
Lender under the Credit Agreement and any other documents or instruments
delivered pursuant thereto to the extent related to the amount and percentage
interest identified below of all of such outstanding rights and obligations of
the Assignor under the respective facilities identified below (including any
letters of credit, guarantees, and swingline loans included in such facilities)
and (ii) to the extent permitted to be assigned under applicable law, all
claims, suits, causes of action and any other right of the Assignor (in its
capacity as a Lender) against any Person, whether known or unknown, arising
under or in connection with the Credit Agreement, any other documents or
instruments delivered pursuant thereto or the loan transactions governed
thereby or in any way based on or related to any of the foregoing, including
contract claims, tort claims, malpractice claims, statutory claims and all
other claims at law or in equity related to the rights and obligations sold and
assigned pursuant to clause (i) above (the rights and obligations sold and
assigned pursuant to clauses (i) and (ii) above being referred to herein
collectively as the “Assigned Interest”).  Such sale and assignment is without recourse
to the Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by the Assignor.

1.             Assignor:

2.             Assignee:                                                                           
[and is an Affiliate/Approved Fund of [identify
Lender](1)]

3.             Borrowers:             Aventine Renewable Energy, Inc., a
Delaware corporation, Aventine Renewable Energy – Mt Vernon, LLC, a Delaware
limited liability company, and Aventine Renewable Energy – Aurora West, LLC, a
Delaware limited liability company

4.             Administrative Agent:        JPMorgan Chase Bank, N.A., as the
administrative agent under the Credit Agreement

(1) Select as applicable.

 A-1
 

5.             Credit Agreement:  The $200,000,000 Credit Agreement dated as of
March 23, 2007 among Aventine Renewable Energy, Inc., Aventine Renewable Energy
– Mt Vernon, LLC, Aventine Renewable Energy – Aurora West, LLC, the other Loan
Parties thereto, the Lenders parties thereto, JPMorgan Chase Bank, N.A., as
Administrative Agent, and the other agents parties thereto.

6.             Assigned Interest:

	
  Facility Assigned(2)

  	
   

  	
  Aggregate Amount of

  Commitment/Loans

  for all Lenders

  	
   

  	
  Amount of

  Commitment/Loans

  Assigned

  	
   

  	
  Percentage Assigned

  of

  Commitment/Loans(3)

  	
   

  
	
    

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  %

  	
   

  
	
    

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  %

  	
   

  
	
    

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  %

  	
   

  

 

Effective Date: 
                                  ,
20    [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE
THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The Assignee agrees to deliver to the Administrative
Agent a completed Administrative Questionnaire in which the Assignee designates
on or more Credit Contacts to whom all syndicate-level information (which may
contain material non-public information about the Loan Parties and their
Related Parties or their respective securities) will be made available and who
may receive such information in accordance with the Assignee’s compliance
procedures and applicable laws, including Federal and state securities laws.

The terms set forth in this Assignment and Assumption
are hereby agreed to:

	
  

  	
  ASSIGNOR

  
	
   

  	
  [NAME OF
  ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

(2) Fill in the appropriate terminology for the types of facilities
under the Credit Agreement that are being assigned under this Assignment (e.g.
“Revolving Commitment,” etc.)

(3) Set forth, to at least 9 decimals, as a percentage of the
Commitment/Loans of all Lenders thereunder.

 A-2
 

 

	
  

  	
  ASSIGNEE

  
	
   

  	
  [NAME OF
  ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  
	
   

  
	
  [Consented to
  and](4) Accepted:

  
	
   

  
	
  [NAME OF
  ADMINISTRATIVE AGENT], as

  
	
  Administrative Agent

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  
	
   

  
	
  [Consented to:](5)

  
	
   

  
	
  [NAME OF RELEVANT
  PARTY]

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
						

 

(4) To be added only if the consent of the Administrative Agent is
required by the terms of the Credit Agreement.

(5) To be added only if the consent of the Borrower
and/or other parties (e.g. Swingline Lender, Issuing Bank) is required by the
terms of the Credit Agreement.

 A-3
 

ANNEX
1

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1.             Representations and
Warranties.

1.1.          Assignor.  The Assignor (a) represents and warrants that
(i) it is the legal and beneficial owner of the Assigned Interest, (ii) the
Assigned Interest is free and clear of any lien, encumbrance or other adverse
claim and (iii) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and Assumption and to
consummate the transactions contemplated hereby; and (b) assumes no
responsibility with respect to (i) any statements, warranties or
representations made in or in connection with the Credit Agreement or any other
Loan Document, (ii) the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Loan Documents or any collateral
thereunder, (iii) the financial condition of any Borrower, any of their
Subsidiaries or Affiliates or any other Person obligated in respect of any Loan
Document or (iv) the performance or observance by any Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document.

1.2.          Assignee.  The Assignee (a) represents and warrants that
(i) it has full power and authority, and has taken all action necessary, to
execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) it satisfies the requirements, if any, specified in the Credit
Agreement that are required to be satisfied by it in order to acquire the
Assigned Interest and become a Lender, (iii) from and after the Effective Date,
it shall be bound by the provisions of the Credit Agreement as a Lender
thereunder and, to the extent of the Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it has received a copy of the Credit
Agreement, together with copies of the most recent financial statements
delivered pursuant to Section 5.01 thereof, as applicable, and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Assignment and Assumption and to
purchase the Assigned Interest on the basis of which it has made such analysis
and decision independently and without reliance on the Administrative Agent or
any other Lender, and (v) if it is a Foreign Lender, attached to the Assignment and Assumption is
any documentation required to be delivered by it pursuant to the terms of the
Credit Agreement, duly completed and executed by the Assignee; and (b) agrees
that (i) it will, independently and without reliance on the Administrative
Agent, the Assignor or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Loan Documents, and (ii)
it will perform in accordance with their terms all of the obligations which by
the terms of the Loan Documents are required to be performed by it as a Lender.

2.             Payments.  From and after the Effective Date, the
Administrative Agent shall make all payments in respect of the Assigned
Interest (including payments of principal, interest, fees and other amounts) to
the Assignor for amounts which have accrued to but excluding the Effective Date
and to the Assignee for amounts which have accrued from and after the Effective
Date.

 A-4
 

3.             General Provisions.
This Assignment and Assumption shall be binding upon, and inure to the benefit
of, the parties hereto and their respective successors and assigns.  This Assignment and Assumption may be
executed in any number of counterparts, which together shall constitute one
instrument.

Delivery of an executed counterpart of a signature
page of this Assignment and Assumption by facsimile shall be effective as
delivery of a manually executed counterpart of this Assignment and
Assumption.  This Assignment and
Assumption shall be governed by, and construed in accordance with, the law of
the State of New York.

 

 A-5

EXHIBIT B-1

OPINION OF COUNSEL FOR THE LOAN PARTIES

[To follow this page]

 B-1
 

Exhibit B-2

FORM OF
OPINION OF MORRIS, NICHOLS, ARSHT & TUNNELL

[To follow this page]

 B-2

EXHIBIT C

BORROWING BASE CERTIFICATE

[To follow this
page]

 C-1

EXHIBIT D

COMPLIANCE CERTIFICATE

To:          The Lenders
parties to the

Credit Agreement
Described Below

This Compliance Certificate is furnished pursuant to
that certain Credit Agreement dated as of March 23, 2007 (as amended, modified,
renewed or extended from time to time, the “Agreement”)
among Aventine Renewable Energy, Inc., Aventine Renewable Energy – Mt Vernon,
LLC, Aventine Renewable Energy – Aurora West, LLC (the “Borrowers”),
the other Loan Parties, the Lenders party thereto and JPMorgan Chase Bank, N.A.,
as Administrative Agent for the Lenders and as the Issuing Bank.  Unless otherwise defined herein, capitalized
terms used in this Compliance Certificate have the meanings ascribed thereto in
the Agreement.

THE UNDERSIGNED HEREBY CERTIFIES, ON ITS BEHALF AND ON
BEHALF OF THE BORROWERS, THAT:

1.             I am the duly elected                                  
of the Borrower Representative;

2.             I have reviewed the terms of the Agreement
and I have made, or have caused to be made under my supervision, a detailed
review of the transactions and conditions of Holdings and its Subsidiaries
during the accounting period covered by the attached financial statements [for quarterly or monthly financial statements add:
and such financial statements present fairly in all material respects the
financial condition and results of operations of the Borrowers and their
consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied, subject to normal year-end audit adjustments and the
absence of footnotes];

3.             The examinations described in paragraph 2 did
not disclose, except as set forth below, and I have no knowledge of (a) the
existence of any condition or event which constitutes a Default during or at
the end of the accounting period covered by the attached financial statements
or as of the date of this Certificate or (b) any change in GAAP or in the
application thereof that has occurred since the date of the audited financial
statements referred to in Section 3.04 of the Agreement;

4.             I hereby certify that no Loan Party has
changed (a) its name, (b) its chief executive office, (c) principal place of
business, (d) the type of entity it is or (e) its state of incorporation or
organization without having given the Agent the notice required by Section 4.15
of the Security Agreement;

5.             Schedule I attached hereto sets
forth financial data and computations evidencing the Borrowers’ compliance with
certain covenants of the Agreement, all of which data and computations are
true, complete and correct;  and

 D-1
 

6.             Schedule II hereto sets forth the
computations necessary to determine the Applicable Rate commencing on the
Business Day this certificate is delivered.

7.             Described below are the exceptions, if
any, to paragraph 3 by listing, in detail, the (i) nature of the condition or
event, the period during which it has existed and the action which the
Borrowers have taken, are taking, or propose to take with respect to each such
condition or event or (i) the change in GAAP or the application thereof and the
effect of such change on the attached financial statements:

 

The foregoing certifications, together with the
computations set forth in Schedule I and Schedule II hereto and the financial
statements delivered with this Certificate in support hereof, are made and
delivered this                   
day of                   ,
                    .

 

	
  

  	
   

  	
   , as

  
	
  

  	
  Borrower
  Representative

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

 D-2
 

SCHEDULE I

Compliance as of                ,
            with

Provisions of Sections 6.01, 6.04, 6.05, 6.07,
6.08 and 6.13 of

the Agreement

 D-3
 

SCHEDULE II

Borrowers’ Applicable Rate Calculation

 D-4

EXHIBIT E

JOINDER AGREEMENT

THIS JOINDER AGREEMENT (this “Agreement”),
dated as of                       ,
        , 200  , is entered
into between                                                     ,
a                               
(the “New Subsidiary”) and JPMORGAN CHASE
BANK, N.A., in its capacity as administrative agent (the “Administrative
Agent”) under that certain Credit Agreement, dated as of March 23,
2007 among Aventine Renewable Energy, Inc., Aventine Renewable Energy – Mt
Vernon, LLC and Aventine Renewable Energy – Aurora West, LLC (the “Borrowers”), the Loan Parties party
thereto, the Lenders party thereto and the Administrative Agent (as the same
may be amended, modified, extended or restated from time to time, the “Credit Agreement”).  All capitalized terms used herein and not
otherwise defined shall have the meanings set forth in the Credit Agreement.

The New Subsidiary and the Administrative Agent, for
the benefit of the Lenders, hereby agree as follows:

1.             The New Subsidiary hereby acknowledges,
agrees and confirms that, by its execution of this Agreement, the New
Subsidiary will be deemed to be a Loan Party under the Credit Agreement and a “Loan
Guarantor” for all purposes of the Credit Agreement and shall have all of the
obligations of a Loan Party and a Loan Guarantor thereunder as if it had
executed the Credit Agreement.  The New
Subsidiary hereby ratifies, as of the date hereof, and agrees to be bound by,
all of the terms, provisions and conditions contained in the Credit Agreement,
including without limitation (a) all of the representations and warranties
of the Loan Parties set forth in Article III of the Credit Agreement, (b) all
of the covenants set forth in Article V and Article VI of the
Credit Agreement and (c) all of the guaranty obligations set forth in Article
X of the Credit Agreement.  Without
limiting the generality of the foregoing terms of this paragraph 1, the
New Subsidiary, subject to the limitations set forth in Section 10.10 of the
Credit Agreement, hereby guarantees, jointly and severally with the other Loan
Guarantors, to the Administrative Agent and the Lenders, as provided in Article
X of the Credit Agreement, the prompt payment and performance of the
Guaranteed Obligations in full when due (whether at stated maturity, as a
mandatory prepayment, by acceleration or otherwise) strictly in accordance with
the terms thereof and agrees that if any of the Guaranteed Obligations are not
paid or performed in full when due (whether at stated maturity, as a mandatory
prepayment, by acceleration or otherwise), the New Subsidiary will, jointly and
severally together with the other Loan Guarantors, promptly pay and perform the
same, without any demand or notice whatsoever, and that in the case of any
extension of time of payment or renewal of any of the Guaranteed Obligations,
the same will be promptly paid in full when due (whether at extended maturity,
as a mandatory prepayment, by acceleration or otherwise) in accordance with the
terms of such extension or renewal.  The
New Subsidiary has delivered to the Administrative Agent an executed Loan
Guaranty.

 E-1
 

2.             If required, the New Subsidiary is,
simultaneously with the execution of this Agreement, executing and delivering
such Collateral Documents (and such other documents and instruments) as
requested by the Administrative Agent in accordance with the Credit Agreement.

3.             The address of the New Subsidiary for
purposes of Section 9.01 of the Credit Agreement is as follows:

4.             The New Subsidiary hereby waives
acceptance by the Administrative Agent and the Lenders of the guaranty by the
New Subsidiary upon the execution of this Agreement by the New Subsidiary.

5.             This Agreement may be executed in any
number of counterparts, each of which when so executed and delivered shall be
an original, but all of which shall constitute one and the same instrument.

6.             THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS.

IN WITNESS WHEREOF, the New Subsidiary has caused this
Agreement to be duly executed by its authorized officer, and the Administrative
Agent, for the benefit of the Lenders, has caused the same to be accepted by
its authorized officer, as of the day and year first above written.

 

	
  

  	
  [NEW SUBSIDIARY]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Acknowledged and
  accepted:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE
  BANK, N.A., as

  Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 E-2

EXHIBIT F

FORM OF NEW LENDER AGREEMENT

THIS NEW LENDER AGREEMENT is made and entered into as
of                        ,
         (this “Agreement”)
to be effective as of the Effective Date (as defined herein), by and among AVENTINE RENEWABLE ENERGY, INC., a Delaware corporation (“Aventine”), AVENTINE
RENEWABLE ENERGY — MT VERNON, LLC, a Delaware limited liability
company (“Mt Vernon”), and AVENTINE RENEWABLE ENERGY — AURORA WEST, LLC, a Delaware
limited liability company (“Aurora West”
and collectively with Aventine and Mt Vernon, the “Borrowers”
and each individually, a “Borrower”),
JPMORGAN CHASE BANK, N.A., as
Administrative Agent under the Credit Agreement (as hereinafter defined), and                                                  
(“New Lender”).

RECITALS:

WHEREAS, the Borrowers, JPMorgan Chase Bank, N.A.,
individually as a Lender, as Issuing Bank and as the Administrative Agent, and
the other financial institutions parties thereto as Lenders entered into that
certain Credit Agreement dated as of March 23, 2007 (as amended through the
date hereof, the “Credit Agreement”).  Unless otherwise defined herein, terms
defined in the Credit Agreement and used herein shall have the meanings given
to them in the Credit Agreement.

WHEREAS, the Borrowers have requested that New Lender
become a party to the Credit Agreement as a Lender and provide a Revolving
Commitment thereunder pursuant to, and as contemplated by, Section 2.21 of the
Credit Agreement.

AGREEMENTS:

1.             Joinder/Commitment.  New Lender and the Borrowers agree that,
subject to the satisfaction of each condition precedent set forth in Section 5
hereof, from and after the Effective Date inserted by the Administrative Agent
as contemplated below New Lender (a) shall be a party to the Credit Agreement
as a Lender and is subject to all rights and obligations of a Lender under the
Credit Agreement and any other documents or instruments delivered pursuant
thereto to the extent of its Applicable Percentage, (b) New Lender’s Revolving
Commitment is in the amount of $                             ,
(c) the Commitment Schedule to the Credit Agreement shall be deemed to be
amended to reflect such Revolving Commitment, and (d) to the extent permitted
under applicable law, New Lender shall be entitled to the benefits of, and
shall be deemed to have assumed, to the extent of its Applicable Percentage,
all claims, suits, causes of action and any other right of a Lender against any
Person, whether known or unknown, arising under or in connection with the
Credit Agreement, any other documents or instruments delivered pursuant thereto
or the loan transactions governed thereby or in any way based on or related to
any of the foregoing.

2.             Disbursement.  Subject to the satisfaction of each condition
precedent set forth in Section 5 hereof, on the Effective Date, New Lender
shall fund its Applicable Percentage of the

 F-1
 

Loans outstanding as of
such date by making such amount available to the Administrative Agent at its
payment office set forth in Section 2.18 of the Credit Agreement or at such
other office as agreed to by the Administrative Agent, in immediately available
funds, and the Administrative Agent shall disburse such amounts to each Lender
in such amounts as are necessary to cause each Lender to hold its Applicable
Percentage of all outstanding Loans after giving effect thereto.  All such amounts funded by New Lender shall
be ABR Loans.  The Borrowers shall be
required to pay to the existing Lenders any amounts required by Section 2.16 of
the Credit Agreement as a result of the pre-payment made pursuant to this
Section 2 of any existing Eurodollar Loans prior to the last day of the
Interest Period applicable thereto.

3.             Promissory Note.  On the Effective Date, to the extent
requested by New Lender, the Borrowers shall issue to New Lender a promissory
note to evidence the Loans made by New Lender in accordance with Section
2.10(f) of the Credit Agreement (the “New Lender Note”).

4.             Certain Agreements of New Lender.  New Lender (a) represents and warrants that
(i) it has full power and authority, and has taken all action necessary, to
execute and deliver this Agreement and to consummate the transactions
contemplated hereby and to become a Lender under the Credit Agreement, (ii) it
satisfies the requirements, if any, specified in the Credit Agreement that are
required to be satisfied by it in order to become a Lender, (iii) from and
after the Effective Date, it shall be bound by the provisions of the Credit
Agreement as a Lender thereunder and, to the extent of its Applicable Percentage,
shall have the obligations of a Lender thereunder, (iv) it has received a copy
of the Credit Agreement, together with copies of the most recent financial
statements delivered pursuant to Section 5.01 thereof and such other documents
and information as it has deemed appropriate to make its own credit analysis
and decision to enter into this Agreement on the basis of which it has made
such analysis and decision independently and without reliance on the
Administrative Agent or any other Lender, and (v) if it is a Foreign Lender,
attached to the Agreement is any documentation required to be delivered by it
pursuant to the terms of the Credit Agreement, duly completed and executed by
New Lender; and (b) agrees that (i) it will, independently and without reliance
on any Agent or any other Lender, and based on such documents and information
as it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action under the Loan Documents, and (ii) it
will perform in accordance with their terms all of the obligations which by the
terms of the Loan Documents are required to be performed by it as a Lender.

5.             Conditions Precedent.  The obligation of New Lender to become a
party to the Credit Agreement as a Lender thereunder, to issue its
Commitment[s] pursuant thereto and hereto and to provide extensions of credit
to Borrowers thereunder is subject to the satisfaction of each of the following
conditions precedent on or before the Effective Date:

(a)           To
the extent requested by New Lender, the Borrowers shall have executed and
delivered to New Lender a New Lender Note;

(b)           The
Borrowers shall have delivered to New Lender and the Administrative Agent
certified copies of the resolutions of the board of directors, the sole member
or other appropriate authority of each Borrower dated on or prior to the
Effective Date and approving this Agreement, and all other documents, if any,
to which each Borrower is required to enter pursuant to this Agreement and
evidencing corporate authorization with respect to such documents;

 F-2
 

(c)           The
Borrowers shall have delivered to New Lender and the Administrative Agent a
certificate of the secretary or an assistant secretary of each Borrower dated
as of the Effective Date and certifying (i) the name, title and true signature
of each officer of such Person authorized to execute this Agreement, (ii) the
name, title and true signature of each officer of such Person authorized to
provide the certifications required pursuant to this Agreement, and (iii) that
attached thereto is a true and complete copy of the certificate of
incorporation, formation or organization, as applicable, certified by the
appropriate Governmental Authority of the jurisdiction of incorporation,
formation or organization of each Borrower and the bylaws or other applicable
organizational documents of each Borrower, each as amended to date, recent good
standing certificates and/or certificates of existence for each Borrower and
certificates of foreign qualification for each Borrower in such jurisdictions
as New Lender or the Administrative Agent shall require;

(d)           The
Borrowers shall have delivered to New Lender and the Administrative Agent an
opinion of                                           ,
counsel to each Borrower dated as of the Effective Date addressed to New Lender
and the Administrative Agent and covering such matters as New Lender or the
Administrative Agent may reasonably request;

(e)           The
Borrowers shall have delivered to New Lender and the Administrative Agent a
certificate of a Financial Officer of each of the Borrowers dated as of the
Effective Date and certifying, before and after giving effect to the making of
the Loans being requested hereunder, that (i) each Borrower is solvent, (ii) no
Default then or thereafter would, exist, (iii) each of the conditions required
by this Section 5 have been satisfied, and (iv) each representation and
warranty of the Borrowers contained herein and in the Credit Agreement is true
and correct in all material respects;

(f)            The
applicable Borrowers shall have paid or reimbursed (i) the Agent’s counsels’
fees and expenses incurred in connection with this Agreement through the
Effective Date, to the extent invoiced, (ii) the Administrative Agent’s other
expenses incurred through the Effective Date in connection with this Agreement,
and (iii) any fees or expenses required to be paid to (A) JPMorgan Chase Bank,
N.A. (or its Affiliates) pursuant to the fee letter between the Borrowers and
the Administrative Agent, and (B) New Lender pursuant to any fee letter between
the Borrowers, the Administrative Agent and New Lender;

(g)           All
representations and warranties contained herein, in the Credit Agreement and
the other Loan Documents shall be true and correct in all material respects
with the same effect as though such representations and warranties had been
made on and as of the Effective Date (unless such representation and warranty
is expressly limited to an earlier date); and

(h)           There
shall not exist a Default or Event of Default.

6.             Certain Representations and Warranties.  In order to induce the Administrative Agent
and New Lender to enter into this Agreement, each Borrower hereby represents
and warrants to the Administrative Agent and New Lender that each statement set
forth in this Section 6 is true and correct on the date hereof and will be true
and correct on the Effective Date.  Each
such representation and warranty shall survive the execution and delivery

 F-3
 

of this Agreement and
shall not be qualified or limited by any investigation undertaken by the
Administrative Agent or New Lender or any actual or constructive knowledge the
Administrative Agent or New Lender may have or be charged with indicating that
any such representation or warranty is inaccurate or incomplete in any respect.

(a)           Each
Borrower is duly authorized and empowered to execute, deliver and perform this
Agreement; and all corporate, partnership or other action on any Borrower’s
part requisite for the due execution, delivery and performance of this
Agreement has been duly and effectively taken;

(b)           This
Agreement constitutes the legal, valid and binding obligations of each Borrower
and is enforceable in accordance with its terms (except that enforcement may be
subject to any applicable bankruptcy, insolvency or similar laws generally affecting
the enforcement of creditors’ rights and subject to the availability of
equitable remedies);

(c)           The
execution, delivery and performance of this Agreement do not and will not
violate or create a default under any provisions of the articles or certificate
of incorporation, formation or organization, as applicable, bylaws, partnership
agreement or other organizational documents of any Borrower, or any contract,
agreement, instrument or requirements of any Governmental Authority to which
any Borrower is subject which violation or default could have a Material
Adverse Effect, or result in the creation or imposition of any Lien upon any
Properties of any Borrower;

(d)           Each
Borrower’s execution, delivery and performance of this Agreement do not require
notice to or filing or registration with, or the authorization, consent or
approval of or other action by any other Person, including, but not limited to,
any Governmental Authority, except those obtained or made;

(e)           Each
representation and warranty of each Borrower contained in the Credit Agreement
and the other Loan Documents is true and correct in all material respects on
the date hereof and will be true and correct as of the Effective Date and after
giving effect to the Borrowing of the Loans being made hereunder (unless such
representation and warranty is expressly limited to an earlier date); and

(f)            No
Default or Event of Default has occurred which is continuing.

7.             Notice.  All notices, requests and other
communications to any party hereunder shall be given in the manner set forth in
Section 9.01 of the Credit Agreement. 
The initial notice address for New Lender shall be                                            .

8.             Benefit of Agreement.  This Agreement and the other documents that
may be required pursuant hereto shall be binding upon and inure to the benefit
of and be enforceable by the respective permitted successors and assigns of the
parties hereto, provided that no Borrower may assign or transfer any of its
interest hereunder or thereunder without the prior written consent of the
Administrative Agent and New Lender.

 F-4
 

9.             Amendment and Waiver.  Neither this Agreement nor any terms hereof
or thereof, may be amended, supplemented or modified except in accordance with
the provisions of Section 9.02 of the Credit Agreement.

10.           Loan Document.  This Agreement and the New Lender Note (if
delivered pursuant hereto) are Loan Documents for all purposes of the Credit
Agreement and the other Loan Documents.

11.           Entire Agreement.  The New Lender Note, this Agreement, the
Credit Agreement and the other Loan Documents embody the entire agreement and
understanding between the Administrative Agent and New Lender and supersede all
prior agreements and understandings between such parties relating to the
subject matter hereof and thereof and may not be contradicted by evidence of
prior or contemporaneous agreements of the parties.  There are no unwritten oral agreements
between the parties.

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

13.           Further Assurances.  Borrowers and New Lender agree to execute,
acknowledge, deliver, file and record such further certificated, instruments
and documents, and to do all other acts and things as may be requested by the
Administrative Agent as necessary or advisable to carry out the intents and
purposes of this Agreement.

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

15.           Effective Date.  This Agreement shall be effective upon the
date (the “Effective Date”) specified by
the Administrative Agent below its signature below.

 F-5
 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed as of the Effective Date.

	
  

  	
  AVENTINE
  RENEWABLE ENERGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AVENTINE
  RENEWABLE ENERGY – MT

  VERNON, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AVENTINE
  RENEWABLE ENERGY –

  AURORA WEST, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NEW
  LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A., as the

  Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Effective Date:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
                                 ,
  20  .

  
									

 

 F-6

EXHIBIT G

FORM OF COMMITMENT INCREASE AGREEMENT

THIS COMMITMENT INCREASE AGREEMENT is made and entered
into as of                     ,
          (this “Agreement”) to be effective as of
the Effective Date (as defined herein), by and among AVENTINE
RENEWABLE ENERGY, INC., a Delaware corporation (“Aventine”), AVENTINE
RENEWABLE ENERGY — MT VERNON, LLC, a Delaware limited liability
company (“Mt Vernon”), and AVENTINE RENEWABLE ENERGY — AURORA WEST, LLC, a Delaware
limited liability company (“Aurora West”
and collectively with Aventine and Mt Vernon, the “Borrowers”
and each individually, a “Borrower”),
JPMORGAN CHASE BANK, N.A., as
Administrative Agent under the Credit Agreement (as hereinafter defined) and                            
(“Increasing Lender”).

RECITALS:

WHEREAS, the Borrowers, JPMorgan Chase Bank, N.A.,
individually as a Lender, as Issuing Bank and as the Administrative Agent, the
other Loan Parties thereto, and the other financial institutions parties
thereto as Lenders entered into that certain Credit Agreement dated as of March
23, 2007 (as amended through the date hereof, the “Credit
Agreement”).  Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

WHEREAS, the Borrowers have requested that Increasing
Lender agree to increase its Revolving Commitment pursuant to, and as
contemplated by, Section 2.21 of the Credit Agreement.

AGREEMENTS:

1.             Increase in Commitment.  Increasing Lender and the Borrowers agree
that, subject to the satisfaction of each condition precedent set forth in
Section 5 hereof, from and after the Effective Date inserted by the
Administrative Agent as contemplated below, (a) Increasing Lender’s Revolving
Commitment shall be increased from $                    
to $               ,
(b) the Commitment Schedule shall be deemed to be amended to reflect such
Revolving Commitment, and (c) to the extent permitted under applicable law,
Increasing Lender shall be entitled to the benefits of, and shall be deemed to
have assumed, to the extent of its Applicable Percentage (as increased pursuant
to such increase in its Revolving Commitment), all claims, suits, causes of
action and any other right of a Lender against any Person, whether known or unknown,
arising under or in connection with the Credit Agreement, any other documents
or instruments delivered pursuant thereto or the loan transactions governed
thereby or in any way based on or related to any of the foregoing.

2.             Disbursement.  Subject to the satisfaction of each condition
precedent set forth in Section 5 hereof, on the Effective Date, Increasing
Lender shall fund additional Loans in an amount equal to the difference between
its Applicable Percentage (as increased pursuant to the increase in its
Revolving Commitment pursuant hereto) of the principal amount outstanding of

 G-1
 

all outstanding Loans and
the principal amount of all outstanding Loans held by Increasing Lender prior
to giving effect to such funding. 
Increasing Lender shall make such amount available to the Administrative
Agent at its payment office set forth in Section 2.18 of the Credit Agreement
or at such other office as agreed to by the Administrative Agent, in
immediately available funds, and the Administrative Agent shall disburse such
amounts to each Lender in such amounts as are necessary to cause each Lender to
hold its Applicable Percentage of all outstanding Loans after giving effect
thereto.  All such amounts funded by
Increasing Lender shall be ABR Loans. 
The Borrowers shall be required to pay to the existing Lenders any
amounts required by Section 2.16 of the Credit Agreement as a result of the
pre-payment made pursuant to this Section 2 of any existing Eurodollar Loans
prior to the last day of the Interest Period applicable thereto.

3.             Promissory Note.  On the Effective Date, to the extent
requested by Increasing Lender, the Borrowers shall issue to Increasing Lender
a promissory note to evidence the Loans made by Increasing Lender in accordance
with Section 2.10(f) of the Credit Agreement (the “Increasing
Lender Note”).

4.             Certain Agreements of Increasing Lender.  Increasing Lender represents and warrants
that (a) it has full power and authority, and has taken all action necessary,
to execute and deliver this Agreement and to consummate the transactions
contemplated hereby and to become a Lender under the Credit Agreement, and (b)
it has received a copy of the most recent financial statements delivered
pursuant to Section 5.01 thereof, as applicable, and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Agreement, on the basis of which it has made such
analysis and decision independently and without reliance on the Administrative
Agent or any other Lender.

5.             Conditions Precedent.  The obligation of Increasing Lender to
increase its Revolving Commitment pursuant hereto and to provide extensions of
credit to the Borrowers thereunder is subject to the satisfaction of each of
the following conditions precedent on or before the Effective Date:

(a)           To
the extent requested by Increasing Lender, the Borrowers shall have executed
and delivered to Increasing Lender an Increasing Lender Note;

(b)           The
Borrowers shall have delivered to Increasing Lender and the Administrative
Agent certified copies of the resolutions of the board of directors, sole
member or other appropriate authority of each Borrower dated on or prior to the
Effective Date and approving this Agreement, and all other documents, if any,
to which each Borrower is required to enter pursuant to this Agreement and
evidencing corporate authorization with respect to such documents;

(c)           The
Borrowers shall have delivered to Increasing Lender and the Administrative
Agent a certificate of the secretary or an assistant secretary of each Borrower
dated as of the Effective Date and certifying (i) the name, title and true
signature of each officer of such Person authorized to execute this Agreement,
(ii) the name, title and true signature of each officer of such Person
authorized to provide the certifications required pursuant to this Agreement,
and (iii) that attached thereto is a true and complete copy of the certificate
of

 G-2
 

incorporation, formation
or organization, as applicable, certified by the appropriate Governmental
Authority of the jurisdiction of incorporation, formation or organization of
each Borrower and the bylaws or other applicable organizational documents of
each Borrower, each as amended to date, recent good standing certificates
and/or certificates of existence for each Borrower and certificates of foreign
qualification for each Borrower in such jurisdictions as Increasing Lender or
the Administrative Agent shall require;

(d)           The
Borrowers shall have delivered to Increasing Lender and the Administrative
Agent an opinion of                         ,
counsel to each Borrower dated as of the Effective Date addressed to Increasing
Lender and the Administrative Agent and covering such matters as Increasing
Lender or the Administrative Agent may reasonably request;

(e)           The
Borrowers shall have delivered to Increasing Lender and the Administrative
Agent a certificate of a Financial Officer of each of the Borrowers dated as of
the Effective Date and certifying, before and after giving effect to the making
of the Loans being requested hereunder, that (i) each Borrower is solvent, (ii)
no Default then or thereafter would, exist, (iii) each of the conditions
required by this Section 5 have been satisfied, and (iv) each representation
and warranty of the Borrowers contained herein and in the Credit Agreement is
true and correct in all material respects;

(f)            The
applicable Borrowers shall have paid or reimbursed (i) the Administrative Agent’s
counsels’ fees and expenses incurred in connection with this Agreement through
the Effective Date, to the extent invoiced, (ii) the Administrative Agent’s
other expenses incurred through the Effective Date in connection with this
Agreement, and (iii) any fees or expenses required to be paid to (A) JPMorgan
Chase Bank, N.A. (or its Affiliates) pursuant to the fee letter between the
Borrowers and the Administrative Agent, and (B) Increasing Lender pursuant to
any fee letter between the Borrowers, the Administrative Agent and Increasing
Lender;

(g)           All
representations and warranties contained herein, in the Credit Agreement and
the other Loan Documents shall be true and correct in all material respects
with the same effect as though such representations and warranties had been
made on and as of the Effective Date (unless such representation and warranty
is expressly limited to an earlier date); and

(h)           There
shall not exist a Default or Event of Default.

6.             Certain Representations and Warranties.  In order to induce the Administrative Agent
and Increasing Lender to enter into this Agreement, each Borrower hereby
represents and warrants to the Administrative Agent and Increasing Lender that
each statement set forth in this Section 6 is true and correct on the date
hereof and will be true and correct on the Effective Date.  Each such representation and warranty shall
survive the execution and delivery of this Agreement and shall not be qualified
or limited by any investigation undertaken by the Administrative Agent or
Increasing Lender or any actual or constructive knowledge the Administrative
Agent or Increasing Lender may have or be charged with indicating that any such
representation or warranty is inaccurate or incomplete in any respect.

 G-3
 

(a)           Each
Borrower is duly authorized and empowered to execute, deliver and perform this
Agreement; and all corporate, partnership or other action on any Borrower’s
part requisite for the due execution, delivery and performance of this
Agreement has been duly and effectively taken;

(b)           This
Agreement constitutes the legal, valid and binding obligations of each Borrower
and is enforceable in accordance with its terms (except that enforcement may be
subject to any applicable bankruptcy, insolvency or similar laws generally
affecting the enforcement of creditors’ rights and subject to the availability
of equitable remedies);

(c)           The
execution, delivery and performance of this Agreement do not and will not
violate or create a default under any provisions of the articles or certificate
of incorporation, formation or organization, as applicable, bylaws, partnership
agreement or other organizational documents of any Borrower, or any contract,
agreement, instrument or requirements of any Governmental Authority to which
any Borrower is subject which violation or default could have a Material
Adverse Effect, or result in the creation or imposition of any Lien upon any
Properties of any Borrower;

(d)           Each
Borrower’s execution, delivery and performance of this Agreement do not require
notice to or filing or registration with, or the authorization, consent or approval
of or other action by any other Person, including, but not limited to, any
Governmental Authority, except those obtained or made;

(e)           Each
representation and warranty of each Borrower contained in the Credit Agreement
and the other Loan Documents is true and correct in all material respects on
the date hereof and will be true and correct as of the Effective Date and after
giving effect to the Borrowing of the Loans being made hereunder (unless such
representation and warranty is expressly limited to an earlier date); and

(f)            No
Default or Event of Default has occurred which is continuing.

7.             Notice.  All notices, requests and other
communications to any party hereunder shall be given in the manner set forth in
Section 9.01 of the Credit Agreement.

8.             Benefit of Agreement.  This Agreement and the other documents that
may be required pursuant hereto shall be binding upon and inure to the benefit
of and be enforceable by the respective permitted successors and assigns of the
parties hereto, provided that no Borrower may assign or transfer any of its
interest hereunder or thereunder without the prior written consent of the
Administrative Agent and Increasing Lender.

9.             Amendment and Waiver.  Neither this Agreement nor any terms hereof
or thereof, may be amended, supplemented or modified except in accordance with
the provisions of Section 9.02 of the Credit Agreement.

10.           Loan Document.  This Agreement and the Increasing Lender Note
(if delivered pursuant hereto) are Loan Documents for all purposes of the Credit
Agreement and the other Loan Documents.

 G-4
 

11.           Entire Agreement.  The Increasing Lender Note, this Agreement,
the Credit Agreement and the other Loan Documents embody the entire agreement
and understanding between the Administrative Agent and Increasing Lender and
supersede all prior agreements and understandings between such parties relating
to the subject matter hereof and thereof and may not be contradicted by
evidence of prior or contemporaneous agreements of the parties.  There are no unwritten oral agreements
between the parties.

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

13.           Further Assurances.  The Borrowers and Increasing Lender agree to
execute, acknowledge, deliver, file and record such further certificated,
instruments and documents, and to do all other acts and things as may be
requested by the Administrative Agent as necessary or advisable to carry out
the intents and purposes of this Agreement.

14.           Governing Law.  This Agreement and the rights and obligations
of the parties hereunder and under the Increasing Lender Note shall be
construed in accordance with and be governed by the laws of the State of New
York and, to the extent controlling, laws of the United States of America.

15.           Effective Date.  This Agreement shall be effective upon the
date (the “Effective Date”) specified by
the Administrative Agent below its signature below.

[Signature Page Follows]

 G-5
 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed as of the Effective Date.

	
  

  	
  AVENTINE
  RENEWABLE ENERGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AVENTINE
  RENEWABLE ENERGY – MT

  VERNON, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AVENTINE
  RENEWABLE ENERGY –

  AURORA WEST, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [INCREASING
  LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A., as the

  Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Effective Date:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
                                 ,
  20  .

  
								

 

 G-6

EXHIBIT H

FORM OF PERFECTION CERTIFICATE UPDATE

This Perfection Certificate Update is being delivered
pursuant to that certain Credit Agreement dated as of March 23, 2007 (as
amended, supplemented, restated or otherwise modified prior to the date hereof,
the “Credit Agreement”; capitalized
terms used herein but not defined herein shall have the meaning given to such
terms in the Credit Agreement), by and among AVENTINE
RENEWABLE ENERGY, INC., a Delaware corporation (“Aventine”), AVENTINE
RENEWABLE ENERGY — MT VERNON, LLC, a Delaware limited liability
company (“Mt Vernon”), and AVENTINE RENEWABLE ENERGY — AURORA WEST, LLC, a Delaware
limited liability company (“Aurora West”
and collectively with Aventine and Mt Vernon, the “Borrowers”
and each individually, a “Borrower”),
JPMORGAN CHASE BANK, N.A., individually
as a Lender, as the Issuing Bank and as the Administrative Agent, the other
Loan Parties thereto, and each of the other financial institutions that are now
or hereafter parties thereto as a Lender. 
The undersigned hereby certifies on behalf of each Borrower that he/she
is a Financial Officer of each Borrower and as such is authorized to execute
this Perfection Certificate Update on behalf of the Borrowers.  The undersigned hereby certifies, represents
and warrants on behalf of each Borrower, that all of the information provided
in that certain Perfection Certificate (as updated pursuant to any prior
Perfection Certificate Updates delivered to the Administrative Agent) executed
and delivered by a Financial Officer of each Borrower as of                ,
2007, for the benefit of the Lenders, is true and correct in all material
respects, except as set forth on Schedule A attached hereto.

Date:                      ,
20   

	
  

  	
  AVENTINE RENEWABLE ENERGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AVENTINE RENEWABLE ENERGY – MT

  VERNON, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

 H-1
 

 

	
  

  	
  AVENTINE RENEWABLE ENERGY –

  AURORA WEST, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 H-2
 

SCHEDULE A

 H-3

EXHIBIT I

FORM OF PACA RESERVE REPORT

JPMORGAN CHASE BANK,
N.A., ADMINISTRATIVE AGENT

ASSET BASED OPERATIONS

2200 Ross Avenue, 6th Floor

Dallas, Texas 75201

Mail Code #TX1-2921

ATTN:  Timothy J. Whitefoot, Vice
President

RE:          Credit
Agreement dated as of March 23, 2007, among AVENTINE
RENEWABLE ENERGY, INC., a Delaware corporation (“Aventine”), AVENTINE
RENEWABLE ENERGY — MT VERNON, LLC, a Delaware limited liability
company (“Mt Vernon”), and AVENTINE RENEWABLE ENERGY — AURORA WEST, LLC, a Delaware
limited liability company (“Aurora West”
and collectively with Aventine and Mt Vernon, the “Borrowers”
and each individually, a “Borrower”),
the financial institutions or other parties thereto from time to time
(collectively, the “Lenders”),
the other Loan Parties thereto and JPMorgan Chase Bank, in its capacity as
Administrative Agent thereunder (the “Administrative Agent”)
(said Credit Agreement, as amended, supplemented, waived or otherwise modified
from time to time, the “Credit Agreement”)

Ladies and Gentlemen:

Reference is hereby made to the Credit Agreement for
all purposes.  Any capitalized terms
which are used herein and are not otherwise defined in this certificate and
agreement shall have the meaning ascribed to such terms in the Credit
Agreement.

Each Person who executes this PACA Reserve Report on
behalf of the Borrowers hereby certifies that (a) he/she is an officer of the
Borrowers and in that capacity, such Person is authorized to execute this PACA
Reserve Report on behalf of the Borrowers, and (b) the following information is
accurate, complete and correct as of                            ,
200    (the “Calculation Date”).  Each Person who executes this report does so
in his/her capacity as a Financial Officer of the Borrowers and not in his/her
individual capacity.

1.             PACA Reserves as of the Calculation
Date and as set forth in further detail on Schedule I hereto:  $              

2.             Information.  Such figures are taken from the Borrowers’
records, kept in accordance with GAAP and used in the Borrowers’ business.  This certificate and agreement is delivered
to the Administrative Agent upon the understanding that the Administrative
Agent and the Lenders will rely upon it in making or continuing Loans to the
Borrowers under the Credit Agreement.

 I-1
 

3.             Representations and Warranties.  The undersigned on behalf of the Borrowers
hereby confirms that the agreements, warranties and representations contained
in the Credit Agreement apply to the PACA Reserve.  The Borrowers ratify and confirm the
continuing general and first priority Lien against all inventories of the
Borrowers that are subject to the PACA Reserve and confirm any Security
Agreement in favor of the Administrative Agent and the Lenders.

	
   

  	
   

  
	
   

  	
   

  
	
  

  	
  [Name of
  Financial Officer of the Borrowers], as

  
	
   

  	
  [Title]

  

 

 I-2
 

Schedule I

Detail of PACA Reserves

 

(to be attached)

 I-3

Schedule 3.05

Properties/Intellectual
Property

Pekin Property

[Description
to come]

Aurora West

[Description to come]

 1

Schedule 3.06

Disclosed Matters

 1

Schedule 3.12

Material
Agreements

 1

Schedule 3.14

Insurance

 1

Schedule 3.15

Capitalization and
Subsidiaries

 1

Schedule 3.19

Terminals/Terminal
Contracts

 1

Schedule 4.03

Post Closing
Conditions

1.                                       Mt
Vernon Lien.  The Loan Parties shall
deliver to, or cause to be delivered to, the Administrative Agent, on or before
December 31, 2007, an agreement executed by the Port Commission, in form and
substance satisfactory to the Administrative Agent in its sole discretion,
pursuant to which the Port Commission acknowledges and confirms that the
security interest granted to the Port Commission in Inventory of Mt Vernon
pursuant to the Mt Vernon Lease (i) is limited to the Inventory of Mt Vernon
then located on the Leased Premises, and (ii) does not attach to the proceeds
of any Inventory.

2.                                       Commodity
Account Control Agreements.  The Loan
Parties shall deliver to, or cause to be delivered to, the Administrative
Agent, on or before June 30, 2007, a fully executed Commodity Account Control
Agreement (as defined in the Pledge and Security Agreement) with each of
Citigroup Global Markets Inc. and UBS PaineWebber, Inc. in form and substance
satisfactory to the Administrative Agent.

3.                                       Securities
Account Control Agreement.  The Loan
Parties shall deliver to, or cause to be delivered to, the Administrative
Agent, on or before June 30, 2007, a fully executed Securities Account Control
Agreement (as defined in the Pledge and Security Agreement) with Goldman Sachs in
form and substance satisfactory to the Administrative Agent.

4.                                       Insurance.  Borrowers shall deliver, or cause to be
delivered to, the Administrative Agent, on or before April 30, 2007, one or
more endorsements naming the Administrative Agent as loss payee, mortgagee and
additional insured, as applicable with respect to the insurance policies
required pursuant to Section 5.09 of the Agreement in form and substance
satisfactory to the Administrative Agent.

 1

Schedule 6.01

Existing
Indebtedness

 1

Schedule 6.02

Existing Liens

 1

Schedule 6.04

Existing
Investments

 1

Schedule 6.10

Existing
Restrictions

 1EXHIBIT
10.29

BENEFITS
CONTINUATION AGREEMENT

This Benefits
Continuation Agreement (“Agreement”), dated as of January 1, 2004, between
Glenmoor, Ltd., a Delaware corporation formerly known as BMC Acquisition
Company (“Glenmoor”), and William H. Shea, Jr. (“Shea”).

WHEREAS, Shea is
an executive of Glenmoor and serves in executive capacities for Buckeye Pipe
Line Company, a Delaware corporation (“BPL”), Buckeye Management Company, a
Delaware corporation (“BMC”), and Buckeye Pipe Line Services Company, a Pennsylvania
corporation (“BPLSC”), all of which are affiliates of Glenmoor (all of such
entities are collectively referred to as the “Company”);

WHEREAS, BPL is
the general partner of Buckeye Partners, L.P., a Delaware limited partnership (“BPLP”);

WHEREAS, the Board
of Directors of Glenmoor recognizes that the departure or distraction of key
management personnel would be detrimental to the business of Glenmoor, BPL, BMC
and BPLSC and has determined that appropriate steps should be taken to further
reinforce and encourage the continued attention and dedication of Shea to his
executive duties to Glenmoor, BPL, BMC and BPLSC.

NOW, THEREFORE, in
consideration of the foregoing, the mutual covenants and agreements hereinafter
set forth, and intending to be legally bound hereby, the parties hereto agree
as follows:

1.             Benefits Continuation.

(a)           If Shea’s employment by Glenmoor,
BPL, BMC and/or BPLSC shall be terminated at any time within two years
following a Change in Control (as hereinafter defined), regardless of whether
such termination is characterized as voluntary or involuntary, Shea shall be
entitled to continued coverage for a period of 36 months after his employment
termination date (“Termination Date”) under the medical and dental benefits and
disability insurance plans and policies at the same level of coverage (and
required employee contributions, if any) that Shea was receiving at the time of
his termination, subject to the Company’s right to make changes in such plans
and policies for all of its executive level employees generally, and further
subject to the Company’s right to provide Shea with cash, on a tax equivalent
basis, such that Shea is able to purchase comparable coverage on his own;
provided, however, that this obligation of the Company shall cease upon Shea’s
obtaining new employment that provides Shea with eligibility for medical and
dental benefits and disability insurance without a preexisting condition
limitation; and provided, further, that such extended coverage shall be in
addition to and not a substitute for Shea’s COBRA rights which shall apply at
the end of such extended coverage.

 

(b)           As used herein, the term “Change of
Control” shall be deemed to have taken place upon the occurrence of any of the
following events:

(i)            any Person, except the Company or
any employee benefit plan of the Company (or of any Affiliate or Associate, or
any Person or entity organized, appointed or established by the Company for or
pursuant to the terms of any such employee benefit plan), together with all Affiliates
and Associates of such Person, shall become the Beneficial Owner, or the holder
of proxies, in the aggregate of 80% or more of the limited partnership units
(the “Units”) of BPLP then outstanding; provided, however, that no “Change of
Control” shall be deemed to occur for purposes of clause (i) hereof during any
period in which any such Person, and its Affiliates and Associates, are bound
by the terms of a standstill agreement under which such parties have agreed not
to acquire more than 79% of the Units then outstanding or to solicit proxies;
or

(ii)           any Person, except one or more of the
stockholders of Glenmoor as of the date hereof or any employee benefit plan of
the Company (or of any Affiliate or Associate or any Person or entity
organized, appointed or established by the Company for or pursuant to the terms
of any such employee benefit plan), together with all Affiliates and Associates
of such Person, shall become the Beneficial Owner, or the holder of proxies, in
the aggregate of 51% or more of the general partnership interests of BPLP; or

(iii)          if BPLP and the General Partner are
combined into a single entity (the “Successor”), any Person, except one or more
of the stockholders of Glenmoor as of the date hereof or any employee benefit
plan of the Company (or of any Affiliate or Associate or any Person or entity
organized, appointed or established by the Company for or pursuant to the terms
of any such employee benefit plan), together with all Affiliates and Associates
of such Person, shall become the Beneficial Owner, or the holder of proxies, in
the aggregate of 50% or more of the voting equity interests of the Successor
then outstanding; provided, however, that no “Change of Control” shall be
deemed to occur for purposes of clause (iii) hereof during any period in which
any such Person, and its Affiliates and Associates, are bound by the terms of a
standstill agreement under which such parties have agreed not to acquire more
than 49% of the voting equity interests of the Successor then outstanding or to
solicit proxies.

For purposes of
this Agreement, the term “Person” shall have the same meaning as in Sections
13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”); the terms “Affiliate” and “Associate” are used as defined in Rule 12b-2
of the Exchange Act.

2.             Other Payments.  The payment due under Section 1 hereof shall
be in addition to and not in lieu of any payments or benefits accrued for Shea
through his Termination Date under any other plan, policy or program of the
Company except that no payments shall be due to Shea under the Company’s then
severance pay plan for employees.

3.             Enforcement.

(a)           In the event that Glenmoor shall fail
or refuse to make payment of any amounts due to Shea under Section 1 hereof within
the respective time periods provided 

 2
 

therein, Glenmoor shall
pay to an escrow agent, who shall invest such sum with interest to be paid to
the prevailing party, any amount remaining unpaid under Section 1.  In such event, the parties shall then engage
in arbitration in the City of Philadelphia, Pennsylvania in accordance with the
National Rules for the Resolution of Employment Disputes then in effect of the
American Arbitration Association, before a panel of three arbitrators, one of
whom shall be selected by Glenmoor and one by Shea, and the third of whom shall
be selected by the other two arbitrators. 
Any award entered by the arbitrators shall be final, binding and
nonappealable and judgment may be entered thereon by either party in accordance
with applicable law in any court of competent jurisdiction.  This arbitration provision shall be
specifically enforceable.  The
arbitrators shall have no authority to modify any provision of this Agreement
or to award a remedy for a dispute involving this Agreement other than a
benefit specifically provided under or by virtue of the Agreement.  If Shea prevails on at least one material
issue which is the subject of such arbitration, Glenmoor shall be responsible
for all of the fees of the American Arbitration Association and the arbitrators
and any expenses relating to the conduct of the arbitration (including
reasonable attorneys’ fees and expenses). 
Otherwise, each party shall be responsible for his or its own expenses
relating to the conduct of the arbitration (including reasonable attorneys’
fees and expenses) and shall equally share the fees of the American Arbitration
Association.

(b)           In the event that an arbitration
under paragraph (a) takes place following a Change of Control, Glenmoor shall
pay Shea on demand the amount necessary to reimburse Shea in full for all
reasonable expenses (including all attorneys’ fees and legal expenses) incurred
by Shea in enforcing any of the obligations of Glenmoor under this Agreement
subject to Shea’s duty to repay such sums to Glenmoor in the event that he does
not prevail on any material issue which is the subject of such arbitration.

4.             No Mitigation.  Shea shall not be required to mitigate the
amount of any payment or benefit provided for in this Agreement by seeking other
employment or otherwise, nor shall the amount of any payment or benefit
provided for herein be reduced by any compensation earned by other employment
or otherwise.

5.             Non-exclusivity of Rights.  Nothing in this Agreement shall prevent or
limit Shea’s continuing or future participation in or rights under any benefit,
bonus, incentive or other plan or program provided by the Company and for which
Shea may qualify, from the date hereof through the Termination Date; provided,
however, that Shea hereby waives Shea’s right to receive any payments under any
severance pay plan or similar program applicable to other employees of the
Company.

6.             No Set-Off.  Glenmoor’s obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any circumstances, including, without
limitation, any set-off, counterclaim, recoupment, defense or other right
which Glenmoor may have against Shea or others.

7.             Taxes.  Any payment required under this Agreement
shall be subject to all requirements of the law with regard to the withholding
of taxes, filing, making of reports and the like, and Glenmoor shall use its
best efforts to satisfy promptly all such requirements.

 3
 

 

8.             Successor Company.  Glenmoor shall require any successor or
successors (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of
Glenmoor, by agreement in form and substance satisfactory to Shea, to
acknowledge expressly that this Agreement is binding upon and enforceable
against Glenmoor in accordance with the terms hereof, and to become jointly and
severally obligated with Glenmoor to perform this Agreement in the same manner
and to the same extent that Glenmoor would be required to perform if no such
succession or successions had taken place. 
Failure of Glenmoor to obtain such agreement prior to the effectiveness
of any such succession shall be a breach of this Agreement.  As used in this Agreement, Glenmoor shall
mean Glenmoor as hereinbefore defined and any such successor or successors to
its business and/or assets, jointly and severally.

9.             Notice.  All notices and other communications required
or permitted hereunder or necessary or convenient in connection herewith shall
be in writing and shall be delivered personally or mailed by registered or
certified mail, return receipt requested, or by overnight express courier
service, as follows:

	
  If to Glenmoor, to:

  
	
   

  
	
   

  
	
  Glenmoor, Ltd.

  
	
  5 Radnor Corporate Center, Suite 500

  
	
  Radnor, PA 19087

  
	
  Attention: Chairman

  
	
   

  
	
  If to Shea, to:

  
	
   

  
	
  [                    ]

  
	
  [                    ]

  

 

or to such other names or
addresses as Glenmoor or Shea, as the case may be, shall designate by notice to
the other party hereto in the manner specified in this Section.  Any such notice shall be deemed delivered and
effective when received in the case of personal delivery, five days after
deposit, postage prepaid, with the U.S. Postal Service in the case of
registered or certified mail, or on the next business day in the case of
overnight express courier service.

10.           Governing Law.  This Agreement shall be governed by and
interpreted under the laws of the State of Delaware, without giving effect to
any conflict of laws provisions.

11.           Contents of Agreement, Amendment
and Assignment.

(a)           This Agreement supersedes all prior
agreements, sets forth the entire understanding between the parties hereto with
respect to the subject matter hereof and cannot be changed, modified, extended
or terminated except upon written amendment executed by Shea and Glenmoor.  The provisions of this Agreement may provide
for payments to Shea under certain compensation or bonus plans under
circumstances where such plans would not provide for payment thereof.  It is the specific intention of the parties
that the provisions of this Agreement shall supersede any provisions to the
contrary in such plans, and such plans shall be 

 4
 

deemed to have been
amended to correspond with this Agreement without further action by Glenmoor.

(b)           Nothing in this Agreement shall be
construed as giving Shea any right to be retained in the employ of the Company.

(c)           All of the terms and provisions of
this Agreement shall be binding upon and inure to the benefit of and be enforceable
by the respective heirs, representatives, successors and assigns of the parties
hereto.

12.           Severability.  If any provision of this Agreement or
application thereof to anyone or under any circumstances shall be determined to
be invalid or unenforceable, such invalidity or unenforceability shall not
affect any other provisions or applications of this Agreement which can be
given effect without the invalid or unenforceable provision or application.

13.           Remedies Cumulative; No Waiver.  No right conferred upon Shea by this
Agreement is intended to be exclusive of any other right or remedy, and each
and every such right or remedy shall be cumulative and shall be in addition to
any other right or remedy given hereunder or now or hereafter existing at law
or in equity.  No delay or omission by
Shea in exercising any right, remedy or power hereunder or existing at law or
in equity shall be construed as a waiver thereof.

14.           Miscellaneous.  All section headings are for convenience
only.  This Agreement may be executed in
several counterparts, each of which is an original.  It shall not be necessary in making proof of
this Agreement or any counterpart hereof to produce or account for any of the
other counterparts.

IN
WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed
this Agreement as of the date first above written.

	
  ATTEST:

  	
   

  	
  GLENMOOR, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ David Martinelli

  	
   

  	
  By 

  	
  /s/ Stephen
  C. Muther

  
	
  Witness

  	
   

  	
  Name: Stephen C. Muther

  
	
   

  	
   

  	
  Title: SVP and General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ David Martinelli

  	
   

  	
  /s/ William
  H. Shea, Jr.

  
	
  Witness

  	
   

  	
  William H. Shea, Jr.

  

 

 5

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