Document:

ex_10-26.htm

     

    
      

      

    

    
 

    NOTE
PURCHASE AGREEMENT

     

    

    This
NOTE PURCHASE AGREEMENT
(this “Agreement”), dated as
of March 31, 2009, is entered into by and between York Pharma plc, a public
limited company incorporated under the laws of England and Wales with company
number 04422613 (the “Company”), and ULURU
Inc., a Nevada corporation (the “Lender”).

     

    WHEREAS,
the Lender has agreed to lend to the Company on the date hereof the aggregate
principal amount of $1,000,000 and may lend to the Company from time to time
after the date hereof additional aggregate principal amounts, all as hereinbelow
provided.

     

    NOW,
THEREFORE, in consideration of the mutual promises and covenants in this
Agreement, the parties hereto agree as follows:

     

    1. (a)           Initial Loan Amount.  On
the date hereof (the “Closing“), the Lender
shall pay, on behalf of the Company, the initial loan amount of $500,000 (the
“Loan”) by
check or wire transfer pursuant to wire transfer instructions furnished by the
Company.  At the Closing, the Company shall issue to the Lender a
promissory note in the form of Exhibit A hereto, initially
reflecting outstanding principal in the amount of the Loan (the “Note”).  In
addition, at the Closing, the Company shall execute, deliver and/or authorize,
as the case may be, (i) the Patent Collateral Assignment and Security
Agreement in the form of Exhibit B hereto (the
“Patent
Agreement”), (ii) the Trademark Collateral Assignment and Security
Agreement in the form of Exhibit C hereto
(the “Trademark
Agreement”), (iii) the Security Agreement in the form of Exhibit D hereto
(the “Security
Agreement”), (iv) the English law governed debenture dated on or about
the date hereof and made between, among others, the Lender and the Borrower (the
“Debenture”),
and (v) all other instruments and documents, including, without limitation,
Uniform Commercial Code financing statements, required to be delivered pursuant
to the Patent Agreement, the Trademark Agreement and the Security Agreement
(such other instruments and documents, together with the Patent Agreement, the
Trademark Agreement, the Security Agreement and the Debenture, the “Security Documents,”
which Security Documents, together with this Agreement, and the Note, are
collectively referred to herein as the “Loan
Documents”).

    

    (b)           Possible Additional Loan Amounts.  Upon a
request by the Company in the form of Exhibit E hereto (each a
“Request for Loan
Advance”), Lender may, in its sole and absolute discretion, advance
additional loan amounts (each a “Loan Advance”), up to
an aggregate amount of US$1,000,000.00 in all loan amounts advanced hereunder,
as requested by the Company (but subject to Lender’s right to reject any such
request for any reason), whereupon Lender shall annotate the Table of Advances
and Repayment of Principal attached to the Note to record such Loan Advance,
thereby increasing the Loan and the then outstanding principal balance owed
under the Note by the amount of such advance.  The Company hereby
authorizes Lender to make such annotations and such annotations shall be deemed
to be amendments to the Note duly authorized and agreed by the
Company.

     

    2. Representations, Warranties
and Certain Covenants of the Lender.  The Lender hereby
represents, warrants and covenants to the Company as to itself,  as
follows:

     

    (a) The
Lender understands that the offering and sale of the Note are intended to be
exempt from registration under the Securities Act of 1933, as amended (the
“Securities
Act”), by
virtue of Section 4(2) thereof and the provisions of Regulation D
promulgated thereunder and, in accordance therewith and in furtherance thereof,
the Lender further represents and warrants to and agrees with the Company that
the Lender is purchasing the Note for such Lender’s own account, for investment
only, and not with a view to, or for sale in connection with, any distribution
of the Note in violation of the Securities Act, any rule or regulation
thereunder, or any state securities laws.

     

    (b) The
Lender is an "accredited investor" within the meaning of Rule 501 of
Regulation D, as promulgated by the Securities and Exchange Commission, as
presently in effect.

     

    3. Representations and
Warranties of the Company.  The Company hereby represents and
warrants to the Lender as follows as of the date set forth above (and, in the
event of any advance under the Note, as of the date of any request for an
advance under the Note, as applicable):

     

    (a) Corporate Power; Binding
Effect; Non-Contravention.  The Company and each of its
subsidiaries that is a party to any Loan Document (each, a “Subsidiary” and
collectively, the “Subsidiaries”) has
all requisite power and full legal right to execute and deliver this Agreement
and each of the other Loan Documents to which it is a party, and to perform all
of its obligations hereunder and thereunder in accordance with the respective
terms hereof and thereof.  The Loan Documents and the transactions
contemplated thereby have been duly approved and authorized by all requisite
company action on the part of the Company and each of the Subsidiaries, and the
Loan Documents have been duly executed and delivered by the Company and by each
of the Subsidiaries specified as a party thereto and constitute the legal, valid
and binding obligations of the Company and each such Subsidiary, enforceable
against them in accordance with their respective terms.  The
execution, delivery and performance by the Company and the Subsidiaries, as
applicable, of the Loan Documents in accordance with their respective terms, and
the consummation by the Company and each of the Subsidiaries, as applicable, of
the transactions contemplated thereby, will not result (with or without the
giving of notice or the lapse of time or both) in any conflict, violation,
breach, or default, or the creation of any lien or encumbrance of any nature
(“Liens”) upon
any assets of the Company, (other than pursuant to the Security Documents), or
the termination, acceleration, vesting or modification of any right or
obligation, under or in respect of (i) the memorandum of association or
articles of association of the Company or any Subsidiary, as amended to date,
(ii) any judgment, decree, order, statute, rule, or regulation binding on
or applicable to the Company or any Subsidiary, or (iii) any agreement or
instrument to which the Company or any Subsidiary is a party or by which it or
any of its assets is or are bound.

     

    (b) Proposed
Acquisition.  The execution and delivery by the Company of any
definitive document governing the acquisition of the Company by the Lender
pursuant to the contemplated terms set forth in that certain non-binding Deed of
Understanding Relating to Proposed Offer for the Whole Issued Share Capital
executed by each of Company and Lender on or about the date hereof and attached
hereto as Exhibit F, and
the consummation of any such acquisition or of any other change of control of
the Company involving the Lender as the acquiror, will not result (with or
without the giving of notice or the lapse of time or both) in any conflict,
violation, breach, or default, or the creation of any Lien upon any assets of
the Company, or the termination, acceleration, vesting or modification of any
right or obligation, under or in respect of (i) the memorandum of
association or articles of association of the Company or any Subsidiary, as
amended to date, (ii) any judgment, decree, order, statute, rule, or
regulation binding on or applicable to the Company or any Subsidiary, or
(iii) any agreement or instrument to which the Company or any Subsidiary is
a party or by which it or any of its assets is or are bound.

     

    (c)           Properties, Leases,
Etc.  Except with respect to Liens in favor of the Lender
pursuant to the Security Documents and as otherwise previously notified by the
Company in a written communication to the Lender specifically identifying in
language prepared for the Lender by the Company an exception to the
representations and warranties of the Company set forth herein, the Company and
each Subsidiary has (A) good, valid and marketable title to all of the
assets and properties owned by it, free and clear of all Liens, (B) valid
title to the lessee interest in all assets and properties leased by the Company
or such Subsidiary as lessee, free and clear of all Liens, and (C) full
right to hold and use all of its assets and properties used in or necessary to
its businesses and operations, in each case all free and clear of all Liens, and
in each case subject to applicable laws and the terms of any lease under which
the Company or such Subsidiary leases such assets or properties as
lessee.  All such assets and properties are in good condition and
repair, reasonable wear and tear excepted, and are adequate and sufficient to
carry on the businesses of the Company and such Subsidiary as presently
conducted.  Neither the Company nor any Subsidiary owns any real
property or any interest (other than a leasehold interest) in any real
property.  The Company's and each Subsidiary’s leasehold interests are
subject to no Lien, and the Company and each Subsidiary is in quiet possession
of the properties covered by such leases.

     

    (d)           Tax
Matters.  The Company and each Subsidiary has timely filed all
tax returns required to be filed by it, each such tax return has been prepared
in compliance with all applicable laws and regulations, and all such tax returns
are true and accurate in all material respects.  All taxes due and
payable by the Company and each Subsidiary have been paid in respect of any
period ending on or before the date hereof, and neither the Company nor any
Subsidiary will be liable for any additional taxes in respect of any taxable
period ending on or before the date hereof in an amount that exceeds the
corresponding reserve therefor, if any, reflected in the accounting records of
the Company or any Subsidiary as of the date hereof.  No claim has
ever been made by a taxing authority in a jurisdiction where the Company or any
Subsidiary does not pay tax or file tax returns that the Company or any
Subsidiary is or may be subject to taxes assessed by such
jurisdiction.  There are no Liens for taxes (other than current taxes
not yet due and payable) on the assets of the Company or any
Subsidiary.  There is no action, suit, taxing authority proceeding, or
audit with respect to any tax now in progress, pending, or, to the Company's
knowledge, threatened, against or with respect to the Company or any
Subsidiary.  No deficiency or proposed adjustment in respect of taxes
that has not been settled or otherwise resolved has been asserted or assessed by
any taxing authority against the Company or any Subsidiary.  Neither
the Company nor any Subsidiary has consented to extend the time in which any tax
may be assessed or collected by any taxing authority.  Neither the
Company nor any Subsidiary has requested or been granted an extension of the
time for filing any tax return to a date on or after the Closing.  The
Company and each Subsidiary has withheld and paid all taxes required to have
been withheld and paid by it in connection with amounts paid or owing to any
employee, creditor, independent contractor or other third party.

     

    (e)           Governmental and Other
Third-Party Consents.  Except for filings or other notices
required by any applicable securities laws (which will be completed by the
Company or any applicable Subsidiary within the applicable periods) or as
otherwise required pursuant to the terms of the Loan Documents, no consent,
approval or authorization of, or registration, designation, declaration or
filing with, any governmental authority, federal or other, or any other person
or entity is required on the part of the Company or any Subsidiary in connection
with its execution, delivery or performance of the Loan Documents and its
consummation of the transactions contemplated hereby and thereby, or the
continued conduct of the present business of the Company or any Subsidiary after
the Closing.

     

    (f)           Compliance with Securities
Laws.  Assuming the accuracy of the representations of the
Lender contained in Section 2 hereof, the offer, issuance and delivery of
the Note as contemplated by this Agreement are exempt from the registration
requirements of the Securities Act, and are exempt from registration or
qualification under applicable states' securities laws.  Neither the
Company nor anyone authorized by the Company to act on its behalf will hereafter
offer to sell, solicit offers to buy, or sell, any securities of the Company so
as to subject the offer, issuance and sale of the Note to the registration
requirements of the Securities Act.

     

    (g)           Litigation.  No
litigation, arbitration or administrative proceeding is taking place, pending
or, to the knowledge of the Company, threatened against it or any of the
Subsidiaries, in which (i) the legality, validity, binding effect,
enforceability or admissibility in evidence of the Loan Documents, (or any of
them) is challenged, questioned or repudiated or (ii) there is a reasonable
likelihood of an adverse determination, and if adversely determined would or is
reasonably likely to have a material adverse effect.

     

    (h)           Insolvency.  Save
to the extent otherwise previously notified by the Company in a written
communication to the Lender specifically identifying in language prepared for
the Lender by the Company an exception to the representations and warranties of
the Company set forth herein, neither the Company nor any of the Subsidiaries (a
"relevant person") has taken any corporate action nor have any other steps been
taken or legal proceedings been started or (to the best of the knowledge and
belief of the Company) threatened against such relevant person for its
winding-up, dissolution, administration or re-organisation or for the
appointment of a receiver, administrator, administrative receiver, trustee or
similar officer of such relevant person or of any or all of its assets or
revenues.

     

    (i)           Brokers.  Save
to the extent otherwise previously notified by the Company in a written
communication to the Lender specifically identifying in language prepared for
the Lender by the Company an exception to the representations and warranties of
the Company set forth herein, no finder, broker, agent or other intermediary has
acted for or on behalf of the Company in connection with the negotiation or
consummation of the transactions contemplated hereby, and no fee will be payable
by the Company or any Subsidiary to any such person in connection with such
transactions.

     

    (j)           Disclosure.  No
representation or warranty by the Company in this Agreement or any other Loan
Document, in any schedule to this Agreement or any other Loan Document, or in
the Note, contains or will contain any untrue statement of a material fact or
omits or will omit to state a material fact required to be stated herein or
therein or necessary to make the statements contained herein or therein not
false or misleading.

     

    (k)           Repetition of
Representations and Warranties.  All of the representations and
warranties in this Section 3 are made by the Company on:

     

    (A)           the
date of this Agreement;

     

    (B)           each
date on which a Request for Loan Advance is submitted by theCompany;
and

     

    (C)           the
date on which each Loan Advance has been requested to be paid.

     

    4. Indemnification by the
Company.  The Company agrees to indemnify and hold harmless the
Lender and the officers, directors, and affiliates and each other person, if
any, who controls the Lender within the meaning of Section 15 of the Securities
Act, from and against any and all loss, liability, claim, damage and expense
whatsoever (including, but not limited to, any and all expenses reasonably
incurred in investigating, preparing or defending against any litigation,
commenced or threatened or any claim whatsoever) arising out of or based upon
any false representation or warranty or breach or failure by the Company to
comply with any covenant or agreement made by the Company herein or in any other
Loan Document furnished by the Company to any of the foregoing in connection
with this transaction.

     

    5.           Miscellaneous
Provisions.

     

    (a) Amendments, Consents and
Waivers.

     

    (i) This
Agreement or any provision hereof may be amended or terminated by the agreement
of the Company and the Lender, and the observance of any provision of this
Agreement that is for the benefit of the Lender may be waived (either generally
or in a particular instance, and either retroactively or prospectively), and any
consent, approval, or other action to be given or taken by the Lender pursuant
to this Agreement, may be given or taken by means of waiver, consent, approval
or other action of the Lender; provided, however, that the
Lender may, in writing, waive the benefits of any provision of this
Agreement.

     

    (ii) No course
of dealing between the Company and the Lender will operate as a waiver of any of
the Company's or the Lender's rights under this Agreement.  No waiver
of any breach or default hereunder will be valid unless in a writing signed by
the waiving party.  No failure or other delay by any person in
exercising any right, power, or privilege hereunder will be or operate as a
waiver thereof, nor will any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power, or
privilege.

     

    (b) Notices.  All
notices, requests, payments, instructions or other documents to be given
hereunder will be in writing or by written telecommunication, and will be deemed
to have been duly given if (i) delivered personally (effective upon
delivery), (ii) mailed by certified mail, return receipt requested, postage
prepaid (effective five business days after dispatch), (iii) sent by a
reputable, established courier service that guarantees overnight delivery
(effective the next business day) or (iv) dispatched by telecopier if the
telecopy is received in complete, readable form (effective upon dispatch),
addressed as follows (or to such other address as the recipient party may have
furnished to the sending party):

     

    (i) If to the
Company:

    

    York
Pharma plc

    York
House

    327 Upper
Fourth Street

    Milton
Keynes

    Buckinghamshire

    MK9
1EH

    United
Kingdom

    Attention:  Ian
Miscampbell

    Fax: +44
(0)  207 764021

     

    with
copies (which will not constitute notice) sent at the same time and by the same
means to:

    

    Morrison
& Foerster (U.K.) LLP

    CityPoint

    One
Ropemaker Street

    London

    EC2Y
9AW

    Attention:  James
Gubbins & Bradley Theobald

    Telecopier
No.:  + 44 (0) 207 496 8560 & + 44 (0) 207 496 8525

    

    (ii) If to
Lender, to

    

    ULURU
Inc.

    4452
Beltway Drive

    Addison,
Texas  75001

    Attention:  President

    Telecopier
No.: (214) 905 5130

     

    with a
copy (which
will not constitute notice) sent at the same time and by the same means
to:

     

    Bingham
McCutchen LLP

    One
Federal Street

    Boston,
Massachusetts  02110

    Attention:  John
J. Concannon III, Esq.

    Telecopier
No.  (617) 951-8736

     

    (c) Counterparts.  This
Agreement may be executed by the parties in separate counterparts, each of which
when so executed and delivered will be an original, but all of which together
will constitute one and the same instrument.  In pleading or proving
this Agreement, it will not be necessary to produce or account for more than one
such complete counterpart.

     

    (d) Captions.  The
captions of sections or subsections of this Agreement are for reference only and
will not affect the interpretation or construction of this
Agreement.

     

    (e) Binding Effect and
Benefits.  This Agreement will bind and inure to the benefit of
the parties hereto and their respective successors and permitted
assigns.  Except as otherwise provided in this Agreement, the
provisions of this Agreement that are for the Lender's benefit will inure to the
benefit of all permitted transferees of the Note, and the applicable provisions
of this Agreement that bind the Lender will bind all transferees of the
Note.  Nothing in this Agreement is intended to or will confer any
rights or remedies on any person other than the parties hereto and their
respective successors and permitted assigns.

     

    (f) Assignment.  This
Agreement and the rights and obligations hereunder may not be assigned by the
Company without the prior written consent of the Lender in their sole and
absolute discretion.  This Agreement and the rights and obligations
hereunder and under the Note may be transferred by the Lender in the Lender’s
sole discretion at any time, in whole or in part, including, without limitation,
to affiliates of the Lender, without the consent of any other party
hereto.

     

    (g) Further
Assurances.  From time to time on and after the Closing, the
Company will promptly execute and deliver all such further instruments and
assurances, and will promptly take all such further actions, as the Lender may
reasonably request in order more effectively to effect or confirm the
transactions contemplated by this Agreement and/or any of the Loan Documents and
to carry out the purposes hereof and thereof.

     

    (h) Severability.  No
invalidity or unenforceability of any section of this Agreement or any portion
thereof will affect the validity or enforceability of any other section or the
remainder of such section.

     

    (i) Entire
Agreement.  The Loan Documents, together with the exhibits and
schedules thereto, contains the entire understanding and agreement among the
parties, or between or among any of them, and supersedes any prior
understandings or agreements between or among any of them, with respect to the
subject matter hereof.

     

    (j) Governing Law; Consent to
Jurisdiction.  This Agreement will be governed by and
interpreted and construed in accordance with the internal laws of the State of
Texas, without regards to conflicts of laws principles.  The Company
agrees that any action or claim arising out of any dispute in connection with
this Agreement, any rights or obligations hereunder or the performance or
enforcement of such rights or obligations may be brought in the courts of the
State of Texas or any federal court sitting therein, and consents to the
non-exclusive jurisdiction of such court and to service of process in any such
suit being made upon the Company by mail at the address specified
herein.  The Company hereby waives any objection that it may now or
hereafter have to the venue of any such suit or any such court or that such suit
is brought in an inconvenient court.

     

    (k)           Waiver of Jury
Trial.  

     

    THE
COMPANY WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM
ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR
OBLIGATIONS HEREUNDER OR THE PERFORMANCE OR ENFORCEMENT OF ANY SUCH RIGHTS OR
OBLIGATIONS.  Except as prohibited by law, the Company waives any
right which it may have to claim or recover in any litigation referred to in the
preceding sentence any special, exemplary, punitive or consequential damages or
any damages other than, or in addition to, actual damages.  The
Company (a) certifies that neither the Lender nor any representative, agent
or attorney of the Lender has represented, expressly or otherwise, that the
Lender would not, in the event of litigation, seek to enforce the foregoing
waivers or other waivers contained in this Agreement, and (b) acknowledges that,
in entering into this Agreement and the other Loan Documents to which the Lender
is a party, the Lender is relying upon, among other things, the waivers and
certifications contained in this paragraph.

     

    (l)           Expenses.  The
Company agrees to pay on demand all costs and expenses, including reasonable
fees and disbursements of all counsel (in each jurisdiction in which, from time
to time, the Company or any Subsidiary is located or has assets) for the Lender,
incurred in connection with the negotiation, preparation, execution and delivery
of the Loan Documents and the consummation of the transactions contemplated
thereby, and all costs and expenses, including reasonable fees and disbursements
of all counsel (in each jurisdiction in which, from time to time, the Company or
any Subsidiary is located or has assets) for the Lender, incurred in connection
with any amendments to or waivers under or in respect of the Loan Documents from
time to time or in connection with enforcing any of Lender’s rights
hereunder.

     

    

    [Signatures
on Following Page.]

    
      
        
          

           

          --

        

         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the Company and the
Lender have duly executed and delivered this Agreement on and as of the date
first above written.

    

    

    COMPANY:                                                    YORK PHARMA PLC

    

    

     

    By:   /s/ Richard
Anderson                                                                        

    Name:  Richard
Anderson

    Title:    Chief
Executive Officer

    

    

    

    

    
      	
              LENDER:

            	
              ULURU
    INC.

            

    

    

    

     

    By: 
/s/ Terrance K.
Wallberg                                                                      

    Name:  Terrance K.
Wallberg

    Title:     Chief
Financial Officer

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    Exhibit
A

    

    

    Form of
Note

    

    

    

    THIS
NOTE WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED.  THIS NOTE MAY NOT
BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF REGISTRATION OR AN
APPLICABLE EXEMPTION THEREFROM.

    

    PROMISSORY
NOTE

     

     March
31, 2009

    Boston,
Massachusetts

     

    

     

    FOR VALUE RECEIVED, the
undersigned York Pharma plc, a public limited company incorporated under the
laws of England and Wales with company number 04422613 (“Borrower”), hereby
promises to pay to the order of ULURU Inc., a Nevada corporation (“Lender”), at Lender’s
office at 4452 Beltway Drive, TX 75001, upon the earliest of (i) September
___, 2009, (ii) the date that is thirty (30) days following the receipt by
either the Borrower or the Lender of any written communication from the other
party stating that such party has decided to no longer pursue the execution and
delivery of a definitive agreement (the “Acquisition Agreement”) by and
among Borrower, Lender and certain other parties, as appropriate, governing the
proposed transaction discussed in that certain non-binding Deed of Understanding
Relating to Proposed Offer for the Whole Issued Share Capital executed by each
of Borrower and Lender on or about the date hereof and attached hereto as Exhibit A, and (iii)
the date that is thirty (30) days following the termination for any reason of
the Acquisition Agreement, but subject to the provisions hereinafter set forth,
the outstanding principal balance set forth on the Table of Advances and
Repayment of Principal attached hereto and incorporated herein, and interest on
the outstanding principal balance owing hereunder from time to time, through and
including the repayment date, in full at a rate per annum equal to ten percent
(10%).  All capitalized terms used in this Note and not otherwise
defined herein shall have the same meanings herein as in that certain Note
Purchase Agreement, dated as of March 31, 2009 (as amended and in effect from
time to time, the “Note Purchase
Agreement”), by and between Borrower and Lender.

     

    Upon
request by Borrower in writing as provided in the Note Purchase Agreement,
Lender may, in its sole and absolute discretion, advance amounts requested by
Borrower, whereupon Lender shall annotate the Table of Advances and Repayment of
Principal attached hereto to record such advance by increasing the then
outstanding principal balance by the amount of such advance.  Borrower
hereby authorizes Lender to make such annotations and such annotations shall be
deemed to be amendments to this Note duly authorized and agreed by
Borrower.

     

    At such
time as all or any portion of the outstanding principal balance owing hereunder
is paid by Borrower, Borrower shall contemporaneously pay at such time all then
accrued but unpaid interest due hereunder.  Upon such payment by
Borrower, Lender shall annotate the Table of Advances and Repayment of Principal
attached hereto to record such payment.  Borrower hereby authorizes
Lender to make such annotations and such annotations shall be deemed to be
amendments to this Note duly authorized and agreed by Borrower.  Any
payments made hereunder shall be applied (i) first to any outstanding
expenses owed by Borrower as provided in the Note Purchase Agreement,
(ii) second to any accrued but unpaid interest hereunder and
(iii) third to repay outstanding principal.  In the event that
any rate of interest required to be paid pursuant to this Note exceeds the
maximum rate legally enforceable, the rate of interest so required to be paid
shall be automatically reduced to the maximum rate legally enforceable, and any
excess paid over such maximum enforceable rate shall be automatically credited
to the outstanding principal balance hereof.

     

    This Note
evidences borrowings under, and has been issued by Borrower in accordance with
the terms of, the Note Purchase Agreement.  Lender and any holder
hereof is entitled to the benefits of the Note Purchase Agreement and the other
Loan Documents, and may enforce the agreements of Borrower contained therein,
and any holder hereof may exercise the respective remedies provided for thereby
or otherwise available in respect thereof, all in accordance with the respective
terms thereof.

     

    If any
one or more of the following events (each an “Event of Default”) shall
occur, then, in any such event, (save to the extent otherwise previously
notified in writing and agreed to by the Lender in writing) all amounts payable
under this Note, including unpaid interest accrued hereon, shall accelerate and
become automatically and immediately due and payable without notice or
demand.  Any amount unpaid after the occurrence of an Event of Default
shall accrue interest thereon at a rate per annum equal to fourteen percent
(14%) per annum from the date thereof through and including the date on which
all such amounts are paid in full.

     

    (a)        Borrower
shall fail to make due and punctual payment of any interest or principal on this
Note or any other cost or expense provided for herein or in any of the Loan
Documents  when the same shall become due and payable;

     

    (b)        Borrower
shall (i) apply for or consent to the appointment of a receiver, trustee or
liquidator of any of its properties or assets, (ii) admit in writing its
inability to pay its debts as they mature, (iii) make a general assignment for
the benefit of its creditors, (iv) be adjudicated a bankrupt or insolvent, or
(v) file a voluntary petition in bankruptcy, or a petition or an answer seeking
reorganization or an arrangement with creditors to take advantage of any
bankruptcy, reorganization, insolvency, readjustment of debt, dissolution or
liquidation law or statute, or an answer admitting the material allegations of a
petition filed against it in any proceeding under any such law;

     

    (c)        an
order, judgment or decree shall be entered, with or without the application,
approval or consent of Borrower, by any court of competent jurisdiction,
approving a petition seeking the reorganization or liquidation of Borrower or
all or a substantial part of the properties or assets of Borrower, or appointing
a receiver, trustee or liquidator of Borrower;

     

    (d)        Borrower
shall breach any representation, warranty or covenant contained in any of the
Loan Documents  or in the Merger Agreement;

     

    (e)        Borrower
shall terminate any contract or agreement that is material (as determined by
Lender in its sole discretion) to Borrower’s business or operations without the
prior written consent of Lender; or

     

    (f)        Any
event shall occur that constitutes an MAE (as defined in that certain Security
Agreement, dated on or about the date hereof, by and between the Lender and the
Borrower).

     

    Upon the
occurrence of any Event of Default hereunder, Lender may, by notice in writing
to Borrower (a “Notice of Default”), declare
all amounts owing with respect to the Note Purchase Agreement, the Note and the
other Loan Documents to be accelerated and they shall thereupon forthwith become
immediately due and payable upon notice in writing to Borrower without
presentment, other demand, protest or other notice of any kind, all of which are
hereby expressly waived by Borrower.

     

    Upon
giving to Borrower any Notice of Default, Lender, if owed any amount with
respect to the Loans, may proceed to protect and enforce its rights by suit in
equity, action at law or any other appropriate proceeding, whether for the
specific performance of any covenant or agreement contained in the Note Purchase
Agreement and the other Loan Documents or any instrument pursuant to which the
obligations to Lender are evidenced, including as permitted by applicable law
the obtaining of the ex parte appointment
of a receiver, and, if such amount shall have become due, by declaration or
otherwise, proceed to enforce the payment thereof or any other legal or
equitable right of Lender.  No remedy herein conferred upon Lender or
the holder of any Note is intended to be exclusive of any other remedy and each
and every remedy shall be cumulative and shall be in addition to every other
remedy given hereunder or now or hereafter existing at law or in equity or by
statute or any other provision of law.

     

    No delay
or omission on the part of Lender or any holder hereof in exercising any right
hereunder shall operate as a waiver of such right or of any other rights of
Lender or such holder, nor shall any delay, omission or waiver on any one
occasion be deemed a bar or waiver of the same or any other right on any future
occasion.

     

    Borrower
and every endorser and guarantor of this Note or the obligation represented
hereby assents to any extension or postponement of the time of payment or any
other indulgence, to any substitution, exchange or release of collateral and to
the addition or release of any other party or person primarily or secondarily
liable.

     

    THIS
NOTE AND THE OBLIGATIONS OF BORROWER HEREUNDER SHALL FOR ALL PURPOSES BE
GOVERNED BY AND INTERPRETED AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS
OF THE STATE OF TEXAS, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. BORROWER
AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS NOTE MAY BE BROUGHT IN THE
COURTS OF THE STATE OF TEXAS OR ANY FEDERAL COURT SITTING THEREIN, AND CONSENTS
TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURT AND THE SERVICE OF PROCESS IN ANY
SUCH SUIT BEING MADE UPON BORROWER BY MAIL AT THE ADDRESS SPECIFIED IN THE NOTE
PURCHASE AGREEMENT. BORROWER HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR
HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH SUIT
IS BROUGHT IN AN INCONVENIENT COURT.

     

    BORROWER WAIVES ITS RIGHT TO A JURY
TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN
CONNECTION WITH THIS NOTE, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THE
PERFORMANCE OR ENFORCEMENT OF ANY SUCH RIGHTS OR
OBLIGATIONS.  Except as prohibited by law, Borrower waives any
right which it may have to claim or recover in any litigation referred to in the
preceding sentence any special, exemplary, punitive or consequential damages or
any damages other than, or in addition to, actual damages. Borrower (a)
certifies that neither Lender nor any representative, agent or attorney of
Lender has represented, expressly or otherwise, that Lender would not, in the
event of litigation, seek to enforce the foregoing waivers or other waivers
contained in this Note, and (b) acknowledges that, in entering into this Note,
Lender is relying upon, among other things, the waivers and certifications
contained in this paragraph.

     

    Borrower
agrees to pay all costs and expenses, including reasonable attorneys’ fees and
disbursements, incurred in connection with the enforcement by Lender of this
Note after any demand for repayment of all or any portion of the amounts due
under this Note.

     

    This Note
may not be assigned by Borrower without the prior written consent of Lender,
which consent may be withheld in the sole and absolute discretion of
Lender.

     

    This Note
shall be deemed to take effect as a sealed instrument under the laws of the
State of Texas.

     

    [Signature
on Following Page]

     

    
      
         

      

      
         

        
          

        

      

      
         

        
          --

        

      

    

    IN WITNESS WHEREOF, the
undersigned has caused this Note to be executed and delivered by its duly
authorized officer(s) as of the day and year first above written.

     

    YORK
PHARMA PLC

     

    By:                                                                

    Name:

    Title:

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
OF ADVANCES AND

    REPAYMENTS
OF PRINCIPAL

    

    

    Advances and payments of principal of
this Note were made on the dates and in the amounts specified
below:

    

    
      	
               

              Date

            	
              Amount
      of Loan

            	
              Amount
      of Principal Repaid

            	
              Principal
      Balance

            	
               

              Notation
      Made By

            
	
              3/31/2009

               

            	
              $500,000.00

            	 
      	
              $500,000.00Loan Number: 145716

Exhibit 10.1 

 

 

 

Loan Number:
145716                                   
United Wisconsin Grain Producers,
LLC                       
Due Date: April 1, 2012

 

REVOLVING
AND TERM CREDIT AGREEMENT

Boxes
checked are applicable

(Business
Loans Only)

Boxes
not checked are inapplicable

United
Wisconsin Grain Producers, LLC

(Name of
Customer)

The
above named customer (“Customer”, whether one or more) agrees with Farmers
& Merchants Union Bank, 159 W. James Street, PO Box 226, Columbus, WI 53925
(“Lender”) as follows:

1.
 Loans

(a)
 £  Term Loan.
 (Check (1) or (2); only one shall apply)

(1) Single Note; Multiple Advances.  £ If checked here, Customer requests
that Lender lend to Customer from time to time such amounts as Customer may
request, in accordance with this Agreement (the “Term Loan”), and,
subject to the terms of this Agreement, Lender agrees to lend such amounts up to
the aggregate amount advanced of $ n/a    (the “Term
Credit Loan”) in one or more advances before
     n/a  .  Customer’s obligations to
repay the Term Loan shall be evidenced by a promissory note (the “Note”)
in substantially the form of Exhibit A attached to this Agreement with blanks
appropriately filled in and made payable to the order of Lender; provided that
Customer shall only be obligated to pay amounts which Lender has advanced under
this Section 1(a)(1).  Amounts advanced to Customer and repaid to Lender
may not be reborrowed by Customer under this Section 1(a)(1).

(2) Multiple Notes; Multiple Advances.  £ If checked here, and in consideration
of extensions of credit from Lender to Customer from time to time, Lender and
Customer agree that sections 2 through 21 of this Agreement shall apply if
checked where appropriate, to each such extension of credit unless evidenced by
a document which states it is not subject to this Agreement.  The term
“Term Loan” includes all such extensions of credit.  The term
“Note” includes each promissory note evidencing Customer’s obligation to
repay an extension of Credit.  This Agreement does not constitute a
commitment by Lender to make such extensions of credit to Customer.

(b)  T
Revolving Loan.  If checked here, Customer requests that Lender lend
to Customer from time to time such amounts as Customer may request in accordance
with this Agreement (the “Revolving Loan”), and, subject to the terms of
this Agreement, Lender agrees to lend such amounts up to the aggregate principal
amount of $10,000,000.00  at any time outstanding (the “Revolving
Credit Limit”).  Within the Revolving Credit Limit and subject to the
terms of this Agreement, Customer may borrower, repay and reborrow under this
Agreement.  The aggregate amount of all advances on the Revolving Loan at
any time outstanding under this Agreement shall never exceed the lesser of the
Revolving Credit Limit or the Borrowing Base described on Exhibit B, if any.
 Lender is not obligated to but may make advances on the Revolving Loan in
excess of the Revolving Credit Limit or the Borrowing Base, and Customer is
liable for and agrees to pay all advances on the Revolving Loan.

(c)  Loans.  Collectively, the Revolving Loan and
the Term Loan, as applicable, under this Agreement shall be called the
“Loans” and each a “Loan”.

2.  Conditions for Loans.  Lender’s obligation to
make the initial advance of a Loan under this Agreement is subject to prior
satisfaction of the following conditions:

(a)  £

     Lender shall have received the Note duly
executed by Customer with respect to the Term Loan.

(b)  T

Lender shall have received the following security documents and
the additional security documents described on Exhibit C, if any (collectively
the “Security Documents”), duly executed, all accompanied by the
appropriate financing statements or control agreements: Real Estate Mortgage,
General Business Security Agreement.

(c)  £

    Lender shall have received copies:

£

certified by the Secretary of Customer of the articles of
incorporation and bylaws of Customer, and resolutions of the Board of Directors
of Customer authorizing the issuance, execution and delivery of this Agreement
and the Security Documents, if any;

£

certified by a general partner of Customer of the partnership
agreement of Customer, and an authorization signed by all of the general
partners of Customer authorizing the issuance, execution and delivery of this
Agreement and the Security Documents, if any;

T

certified by a member or manager of Customer, as appropriate, of
the articles of organization and operating agreement of Customer, and an
authorization signed by a member or manager of Customer, as appropriate,
authorizing the issuance, execution and delivery of this Agreement and the
Security Documents, if any;

£

certified by a trustee regarding the existence, name and other
matters pertaining to Customer if it is a trust, and an authorization signed by
all trustees of Customer authorizing the issuance, execution and delivery of
this Agreement and the Security Documents, if any;

Revolving and Term Credit Agreement Cont.

Page 2
of 7

and a certification of the names and addresses of the
representatives of Customer authorized to sign this Agreement and the Security
Documents, if any, and to request advances under the Loans under this Agreement,
together with true signatures of such representatives, and of such other matters
as Lender may reasonably request.

(d)  £

Lender shall have received a certificate of sole ownership
executed by the sole proprietor.

(e)  £

Lender shall have received the following additional documentation
executed by the trust and/or trustee:  n/a

(f)  £

Lender shall have received from counsel for Customer a favorable
opinion satisfactory to Lender covering the matters described in Sections 4(c)
and 4(d), 4(f) or 4(g), as applicable, and 4(f) of this Agreement and such other
matters as Lender may reasonably request.

(g)  £

Lender shall have received a separate guaranty of payment of the
Loans duly executed by   n/a   on WBA form
          .

(h)  £

All proceedings taken by Customer in connection with the Loans,
the Security Documents and other documents provided to Lender shall be
satisfactory to Lender and Lender shall have received copies of all documents
reasonably required by it.

3.  Loan Procedures.  Customer may obtain
advances under the Loans under this Agreement as provided in (a), (b), (c) or
(d) below.

(a)  £

Revolving Loan.  Customer shall give Lender £ at least ____ business days’
prior notice or £                         of
any advance under the Revolving Loan requested under this Agreement, specifying
the date and amount of the advance under the Revolving Loan.  Lender will
make the advance under the Revolving Loan available to Customer £ by crediting the amount of the advance
under the Revolving Loan to Customer’s account (acct. no.
        ) with Lender or £
                                    .
 Each advance under the Revolving Loan which is less than the full amount
available to Customer under this Agreement shall be in an amount not less than
$          .

(b)  T

Revolving Loan.  Lender will credit Customer’s account
(acct. no. 2021307) with Lender whenever the £ ledger T collected balance in the account is
less than $100,000.00 on any banking day (the “Target Amount”),
for whatever reason.  The advance under the Revolving Loan will be in an
amount within the Revolving Credit Limit and Borrowing Base sufficient to
increase the balance to the Target Amount.  Lender may decline to make any
advance under the Revolving Loan and may refuse to pay any check drawn on the
account if the amount available to Customer under the Revolving Credit Limit
would not be sufficient to increase the balance in the account to the Target
Amount.

(c)  £

Term Loan.  Customer may obtain advances under the
Term Loan under this Agreement by giving Lender at least 

            ___
business days’ prior notice of any advance requested, specifying the date and
the amount of the advance.  Lender will make the funds available to
Customer £ by crediting the amount
of the advance to Customer’s account (account no.
      ) with Lender £ by
                          .
 Each advance under the Term Loan which is less than the remaining amount
available to Customer under the Term Credit Limit shall be in an amount of not
less than $        .

(d)  T

Other.  At customer’s written request via email,
fax or written authorization provided by President or Chief Financial Officer.
 Farmers & Merchants Union Bank shall advance the loan no later than
one business day after receipt of customer’s loan draw request.

£

If checked here, Lender’s obligation to make each advance under a
Loan (including the initial advance of any Loan) is subject to the further
condition that Lender shall have received a certificate signed by Customer,
dated the date of the advance under a Loan request and stating that the
representations and warranties in Section 4 are true and correct as of the date
of the request and that no event of default has occurred and is continuing or
would result from such advance under a Loan.

4.
 Representations and Warranties.  Customer represents and
warrants to Lender that on the date of this Agreement and on the date of each
advance under any Loan:

(a)

No part of any advance under a Loan will be used for personal,
family or household purposes.

(b)

Customer will not use any part of the proceeds of an advance under
a Loan to purchase any margin stock within the meaning of Regulation U of the
Board of Governors of the Federal Reserve System.

Revolving and Term Credit Agreement Cont

Page 3
of 7

(c)

The execution and delivery of this Agreement, the Note, and the
Security Documents, and the performance by Customer of its obligations under
this Agreement, the Note, and the Security Documents, are within its power, have
been duly authorized by proper action on the part of Customer, are not in
violation of any existing law, rule or regulation, any order, authorization or
decision of any court, the articles of incorporation, bylaws, articles of
organization, operating agreement, partnership agreement, trust agreement or
other governing documents of Customer, as applicable, or the terms of any
agreement or restriction to which Customer is a party or by which it is bound,
and do not require the approval or consent of any person or entity.  This
Agreement, the Note and the Security Documents, when executed and delivered,
will constitute the valid and binding obligations of Customer enforceable in
accordance with their terms.

(d)

£ Customer is a
corporation legally organized, validly existing and in good standing under the
laws of the State of n/a and is duly qualified to do business and
is in good standing in every jurisdiction in which the nature of its business or
its ownership of properties request such qualification.

(e)

£ Customer is a
n/a partnership legally organized, validly
existing and in good standing under the laws of the State of
     n/a  and is duly qualified to do business
and is in good standing in every jurisdiction in which the nature of its
business or ownership of properties requires such qualification.

(f)

T Customer is a limited
liability company legally organized, validly existing and in good standing under
the laws of the State of Wisconsin and is duly qualified to do business and
is in good standing in every jurisdiction in which the nature of its business or
its ownership of properties requires such qualification.

(g)

£ Customer is a
£ testamentary trust
n/a

£ revocable living
trust £ irrevocable living
trust n/a

     validly existing under the laws of
the State of n/a and the trust has not been revoked or terminated.

(h)

Customer’s exact legal name is as set forth below Section 21.

(i)

If Customer is an individual, the address of Customer’s principal
residence is as set forth below Section 21.  If Customer is an organization
that has only one place of business, the address of Customer’s place of
business, or if Customer has more than one place of business, then the address
of Customer’s chief executive office, is as set forth below Section 21. 

(j)

All financial statements of Customer furnished to Lender were
prepared in accordance with generally accepted principles of accounting
consistently applied throughout the periods involved and are correct and
complete as of their dates.

(k)

(1) There is no substance which has been, is or will be present,
used, stored, deposited, treated, recycled or disposed of on, under, in or about
any real estate now or at any time owned or occupied by Customer
(“Property”) during the period of Customer’s ownership or use of the
Property in a form, quantity or manner which if known to be present on, under,
in or about the Property would require clean-up, removal or some other remedial
action (“Hazardous Substance”) under any federal, state or local laws,
regulations, ordinances, codes or rules (“Environmental Laws”); (2)
Customer has knowledge, after due inquiry, of any prior use or existence of any
Hazardous Substance on the Property by any prior owner of or person using the
Property; (3) without limiting the generality of the foregoing, Customer has no
knowledge, after due inquiry, that the Property contains asbestos,
polychlorinated biphenyl components (PCBs) or underground storage tanks; (4)
there are no conditions existing currently or likely to exist during the term of
this Agreement which would subject Customer to any damages, penalties,
injunctive relief or clean-up costs in any governmental or regulatory action or
third-party claim relating to any Hazardous Substance; (5) Customer is not
subject to any court or administrative proceeding, judgment, decree, order or
citation relating to any Hazardous Substance; and (6) Customer in the past has
been, at the present is, and in the future will remain in compliance with all
Environmental Laws.  Customer shall indemnify and hold harmless Lender, its
directors, officers, employees and agents from all loss, cost (including
reasonable attorneys’ fees and legal expenses), liability and damage whatsoever
directly or indirectly resulting from, arising out of, or based upon (i) the
presence, use, storage, deposit, treatment, recycling or disposal, at any time,
of any Hazardous Substance described above on, under, in or about the Property,
or the transportation of any Hazardous Substance to or from the Property, (ii)
the violation or alleged violation of any Environmental Law, permit, judgment or
license relating to the presence, use, storage, deposit, treatment, recycling or
disposal of any Hazardous Substance on, under, in or about the Property, or the
transportation of any Hazardous Substance to or from the Property, (iii) the
imposition of any governmental lien for the recovery of environmental clean-up
costs expended under Environmental Law, or (iv) breach of this representation or
warranty.  Customer shall immediately notify Lender in writing of any
governmental or regulatory action or third-party claim instituted or threatened
in connection with any Hazardous Substance on, in, under or about the
Property.

(l)

There is no litigation or administrative proceeding pending or, to
the knowledge of Customer, threatened against Customer which might result in any
material adverse change in the business or condition of Customer.

(m)

There are no unpaid wages due employees of Customer and there are
no outstanding liens against assets of Customer for unpaid wages due employees
of Customer.

Revolving and Term Credit Agreement Cont.

Page 4
of 7

5.  Fees.  Customer agrees to pay the following
nonrefundable fees as a condition of access to the Loans under this
Agreement:

(a) 

£  Commitment fee
in the amount of $ n/a.

(b)  

T
  Commitment fee in an amount equal to 0.50 % per year of the average daily unused
portion of the Revolving Credit Limit and the Term Credit Limited from the date
of this Agreement until the Termination Date specified in Section 13, payable
£ at the times interest is
payable under Section 7 T
 on the 15th day of each  third month.

(c)

£
___________________________________________

6.  Interest Rate and Other Charges.

(a)

Revolving Loan.  Customer agrees to pay interest to
Lender on the unpaid principal balance outstanding from time to time under the
Revolving Loan [Check (1), (2) or (3); only one shall apply.]:

(1) £ Fixed
Rate.  At the rate of n/a% per year.

(2) £ Stepped
Fixed Rate.  At the rate (“Note Rate”) of n/a% per year
until n/a and n/a% per year thereafter.

(3) T Variable
Rate.  At the annual rate (“Note Rate”) which shall equal the
Index Rate (as defined below) T
plus £ minus 2.000
percentage points.  However, the Note Rate shall not exceed
 n/a% per year and shall not be less than  n/a% per
year, and until the first change date described below the Note Rate shall be
 5.250% per year.  The Note Rate shall be adjusted as provided
below.

The Index Rate is:

    The highest U.S. Prime Rate as
published in the Wall Street Journal “Money Table”

The Index Rate may or may not be the lowest rate charged by
Lender.  The Note Rate shall be adjusted only on the following change
dates: 

   
as and when the index rate changes.
 If the Index Rate ceases to be made available to Lender during the term of
this Agreement, Lender may substitute a comparable index.

Interest is computed on the basis of the actual number of days the
principal balance is unpaid based upon a year of T 360 days (which means that the stated
interest rate will be divided by 360 days to arrive at a daily interest rate,
and the daily interest rate will be applied to the unpaid principal for the
actual number of days principal is unpaid up to 365 days a calendar year and 366
days in a leap year) £ 365 days.
 In any payment (other than the final payment) is not made on or before the
    10th   day after its due date,
Lender may collect a delinquency charge of T     5.00%
of the unpaid amount £ n/a.
 Unpaid principal and interest bear interest after maturity (whether by
acceleration or lapse of time) until paid at the rate(s) T  stated under (2) or (3) above,
as applicable plus    2.00 percentage points £ of n/a% per year, computed on
the same basis as the interest rate before maturity.

(b)

Term Loan.  Customer agrees to pay interest to Lender
on the unpaid principal balance outstanding from time to time on the Term Loan
in accordance with the Note.

7.

Payment Schedule.

(a)

Revolving Loan.  Customer agrees to pay to Lender the
unpaid principal balance and interest due on the Revolving Loan as follows:
[check (1), (2), (3) or (4).]

(1) £ In one payment
on £ demand £ the Termination Date specified in
Section 13.

(2) T  In
payments of interest, beginning  May 1, 2009, and on the same day of
each  succeeding month thereafter, plus a final payment of unpaid
principal and interest due on the Termination Date specified in Section 13.

(3) £ In
installments each equal to      n/a% of the
unpaid principal balance, plus interest, beginning
    n/a, and on the same day of each
        n/a  month
thereafter, plus a final payment of unpaid principal and interest due on the
Termination Date specified in Section 13.

(4) £                                               

In addition, Customer shall immediately pay any amount by which
the unpaid balance of the Revolving Loan exceeds the lesser of the Revolving
Credit Limit or the Borrowing Base established under Section 1(6), if any, and
any prior unpaid payments.  Lender is authorized to automatically charge
payments due under this Agreement to any account of Customer with Lender.
 If payments are not automatically charged to Customer’s account, payments
must be made to Lender at its address shown below, or at such other location as
any assignee of this Agreement may designated by written notice to Customer, and
are not credited until received in Lender’s office.  Lender is authorized
to make book entries evidencing advances made under the Revolving Loan and
payments under this Agreement and the aggregate unpaid amount of all advances
made under the Revolving Loan as evidenced by those entries is presumptive
evidence that those amounts are outstanding and unpaid to Lender.

(b)

Term Loan.  Customer agrees to pay Lender the unpaid
principal balance and interest due on the Term Loan in accordance with the
Note.

Revolving and Term Credit Agreement Cont

Page 5
of 7

8.

Covenants.  Customer shall, so long as any amounts
remain unpaid, or Lender has any commitment to make advances under the Loans
under this Agreement:

(a)

Furnish to Lender, as soon as available, such financial
information respecting Customer as Lender from time to time requests, and
without request furnish to Lender:

(1) Within   120    days
after the end of each fiscal year of Customer a balance sheet of Customer as of
the close of such fiscal year and related statements of income and retained
earnings and cash flow for such year all in reasonable detail and satisfactory
in scope of Lender, prepared in accordance with generally accepted principles of
accounting applied on a consistent basis, either T (i) £ compiled £ reviewed T audited by an independent certified
public accountant acceptable to Lender, or £ (ii) certified by the chief financial
representative of Customer, and

(2) Within 30   days after the end of each 
consecutive    month a balance sheet of Customer as of the
end of such month and related statements of income and retained earnings and
cash flow for the period from the beginning of the fiscal year to the end of
such month, prepared in accordance with generally accepted principles of
accounting applied on a consistent basis, certified, subject to normal year-end
adjustments, by an officer or partner of Customer.

(b)

Customer shall furnish to Lender such reports regarding the
payment of wages to employees of Customer and the number of employees of
Customer as Lender may from time to time request, and without request shall
furnish to Lender a written report immediately upon any 

material increase in the number of employees of Customer, the
failure of Customer to pay any wages when due to employees of Customer or the
imposition of any lien against the assets of Customer for unpaid wages due
employees of Customer

(c)

Keep complete and accurate books of records and accounts and
permit any representatives of Lender to examine and copy any of the books and to
visit and inspect any of Customer’s tangible properties as often as desired.

(d)

Maintain insurance coverage in the forms, amounts and with
companies which would be carried by prudent management in connection with
businesses engaged in similar activities in similar geographic areas.
 Without limiting this section or the requirements of any Security
Document, Customer will (i) keep all its physical property insured against fire
and extended coverage risks in the amounts and with deductibles at least equal
to those generally maintained by businesses engaged in similar activities in
similar geographic areas (together with any lender’s loss payee clause for the
benefit of and requested by Lender), (ii) maintain all such workers’
compensation and similar insurance as may be required by law, and (iii)
maintain, in amounts and with deductibles at least equal to those generally
maintained by businesses engaged in similar activities in similar geographic
areas, general public liability insurance against claims for bodily injury,
death or property damage occurring on, in or about the properties of Customer,
business interruption insurance and product liability insurance (together with
any additional insured clause for the benefit of and requested by Lender)

(e)

Pay and discharge all lawful taxes, assessments and governmental
charges upon Customer or against its properties prior to the date on which
penalties attach, unless and to the extent only that such taxes, assessments and
charges are contested in good faith and by appropriate process by Customer.

(f)

Do all things necessary to maintain its existence, to preserve and
keep in full force and effect its rights and franchises necessary to continue
its business and comply with all applicable laws, regulations and
ordinances.

(g)

Timely perform and observe the following financial covenants, all
calculated in accordance with generally accepted principles of accounting
applied on a consistent basis:

(1) £  Maintain
at all times an excess of current assets over current liabilities of not less
than $_____________________.

 

 

 

(2) £  Maintain
at all times a tangible net worth of not less than $____________________.

 

 

(3) £  Not make
any expenditures for fixed or capital assets which would cause the aggregate of
all such expenditures to exceed $     during any
fiscal year.

(4) £  Maintain
at all times a ratio of current assets to current liabilities of not less than
___ to one.

(5) £  Maintain at all times a ratio of
total liabilities to tangible net worth of not greater than ____to one.

(6) £  _____________.

(h)

Furnish to Lender the Borrowing Base Certificates required under
Exhibit B, if any.

(i)

Not create or permit to exist any lien or encumbrance with respect
to Customer’s properties, except liens in favor of Lender, liens for taxes if
they are being contested in good faith by appropriate proceedings and for which
appropriate reserves are 

Revolving and Term Credit Agreement Cont.

Page 6 of 7

maintained, liens or encumbrances permitted under any Security
Document and except for liens described on Exhibit E and attached
hereto .

 

 

(j)

Not take any action or permit any event to occur which materially
impairs Customer’s ability to make payments under this Agreement when due.
 Such events include, without limitation, the fact that Customer,
Customer’s spouse or any surety or guarantor for Customer’s obligations under
this Agreement cease to exist, dies, changes marital status or domicile or
becomes insolvent or the subject of bankruptcy or insolvency proceedings or that
any guaranty of Customer’s obligations under this Agreement is revoked or
becomes unenforceable for any reason.

(k)

Not change its type of organization or state under whose law it is
organized as represented in Sections 4(d), (e) or (f) and shall preserve its
organizational existence and shall not, in one transaction or in a series of
related transactions, merge into or consolidate with any other organization,
change its legal structure or sell all or substantially all of its assets.

(l)

Not change its legal name without providing at least 30 days’
prior written notice of the change to Lender.

(m)

Not change its address without providing at least 30 days’ prior
written notice of the change to Lender.

(n)

Timely perform all duties and responsibilities imposed on Customer
under Section 4(k).

(o)

Customer shall pay all wages when due to employees of Customer and
shall not permit any lien to exist against the assets of Customer for unpaid
wages due employees of Customer

(p)

T  Unless
otherwise consented to in writing by Lender, timely perform and observe all
additional covenants described on Exhibit D.

9.

Security Interest.  This Agreement and the Note are
secured by all existing and future security agreements, assignments and
mortgages from Customer to Lender, from any guarantor of this Agreement or the
Note to Lender, and from any other person to Lender providing collateral
security for Customer’s obligations, and payment of the Loans may be accelerated
according to any of them.  Unless a lien would be prohibited by law or
would render a nontaxable account taxable, Customer also grants to Lender a
security interest and lien in any deposit accounts Customer may at any time have
with Lender.  Lender may at any time after the occurrence of an event of
default set-off any amount unpaid under this Agreement or the Note against any
deposit balances or other money now or hereafter owed to Customer by Lender.

10.

Default and Acceleration.  Upon the occurrence of any
one or more of the following events of default: (a) Customer fails to pay any
amount when due under this Agreement or the Note or under any other instrument
evidencing any indebtedness of Customer to Lender, (b) any representation or
warranty made under this Agreement or information provided by Customer in
connection with this Agreement is or was false or fraudulent in any material
respect, (c) a material adverse change occurs in Customer’s financial condition,
(d) Customer fails to timely observe or perform any of the covenants or duties
contained in this Agreement, the Note or any Security Documents, (e) any
guaranty of Customer’s obligations under this Agreement or the Note is revoked
or becomes unenforceable for any reason or any such guarantor dies, ceases to
exist or becomes the subject of any bankruptcy or insolvency proceeding, or (f)
an event of default occurs under any Security Document or the Note; then, at
Lender’s option, and upon written verbal notice to Customer, Lender’s obligation
to make advances on the Loans under this Agreement shall terminate and the total
unpaid balance shall become immediately due and payable without presentment,
demand, protest, or further notice of any kind, all of which are hereby
expressly waived by Customer.  Lender’s obligation to make advances on the
Loans under this Agreement shall automatically terminate and the total unpaid
balance shall automatically become due and payable in the event Customer becomes
the subject of bankruptcy or other insolvency proceedings.  Lender may
waive any default without waiving any other subsequent or prior default.
 Customer agrees to pay Lender’s costs of administration of this Agreement.
 Customer also agrees to pay all costs of collection before and after
judgment, including reasonable attorneys’ fees (including those incurred in
successful defense or settlement of any counterclaim brought by Customer or
incident to any action or proceeding involving Customer brought pursuant to the
United States Bankruptcy Code).

11.

Indemnification.  Customer agrees to defend, indemnify
and hold harmless Lender, its directors, officers, employees and agents, from
and against any and all loss, cost, expense, damage or liability (including
reasonable attorneys’ fees) incurred in connection with any claim, counterclaim
or proceeding brought as a result of, arising out of or relating to any
transaction financed or to be financed, in whole or in part, directly or
indirectly, with the proceeds of any Loan or the entering into and performance
of this Agreement or any document or instrument relating to this Agreement by
Lender or the activities of Customer.  This indemnity will survive
termination of this Agreement, the repayment of all Loans and the discharge and
release of any Security Documents.

12.

Venue.  To the extent not prohibited by law, venue for
any legal proceeding relating to enforcement of this Agreement shall be, at
Lender’s option, the county in which lender has its principal office in this
state, the county and state in which Customer resides, or the county in this
state in which this Agreement was executed by Customer.

13.

Termination.  Unless sooner terminated under Section
10, Customer’s right to obtain advances on the Loans and Lender’s obligation to
extend credit under this Agreement shall terminate on the date final payment is
due under Section 7 or the Note, if applicable, or on
     April 1, 2012    , whichever
is earlier (the “Termination Date”).  Customer may terminate
Customer’s right to obtain advances on the Loans under this Agreement at any
time and for any reason by written notice to Lender.  

Revolving and Term Credit Agreement Cont.

Page 7 of 7

Such notice of termination signed by a Customer shall be binding
on each Customer who signs this Agreement.  Termination, for whatever
reason, does not affect Lender’s rights, powers and privileges, nor Customer’s
duties and liabilities, with regard to the then existing balance due on the
Loans under this Agreement.

14.

Amendment.

  No amendment, modification, termination or waiver of
any provision of this Agreement shall in any event be effective unless it is in
writing and signed by Lender, and then such waiver or consent shall be effective
only in the specific instance and for the specific purposes for which given.

15.

Entire Agreement.  This Agreement, including the
Exhibits attached or referring to it, the Note, and the Security Documents, are
intended by Customer and Lender as a final expression of their agreement and as
a complete and exclusive statement of its terms, there being no conditions to
the full effectiveness of this Agreement except as set forth in this Agreement
and the Security Documents.

16.

No Waiver; Remedies.  No failure on the part of Lender
to exercise, and no delay in exercising, any right, power or remedy under this
Agreement shall operate as a waiver of such right, power or remedy; nor shall
any single or partial exercise of any right under this Agreement preclude any
other or further exercise of the right of the exercise of any other right.
 The remedies provided in this Agreement are cumulative and not exclusive
of any remedies provided by law.

17.

More Than One Customer.  If more than one person signs
this Agreement as Customer, Lender may at its option and without notice refuse
any request for an advance on a Loan upon notice from any of the undersigned.
 Any of the undersigned Customers may request an advance on a Loan under
this Agreement.  Each of the undersigned Customers is jointly and severally
liable for all Loans and other obligations under this Agreement.

18.

Notice.  Except as otherwise provided in this
Agreement, all notices required or provided for under this Agreement shall be in
writing and mailed, sent or delivered, if to Customer, at any Customer’s last
known address as shown on the records of Lender, and if to Lender, at its
address shown below, or, as to each party, at such other address as shall be
designated by such party in a written notice to the other party.  All such
notices shall be deemed duly given when delivered by hand or courier, or three
business days after being deposited in the mail (including any private mail
service), postage prepaid, provided that notice to Lender pursuant to Section 13
shall not be effective until received by Lender.

19.

Successors and Assigns.  This Agreement shall be
binding upon and inure to the benefit of Lender and Customer and their
respective heirs, personal representatives, successors and assigns except that
Customer may not assign or transfer any of Customer’s rights under this
Agreement without the prior written consent of Lender.

20

Interpretation.  The validity, construction and
enforcement of this Agreement are governed by the internal laws of the State of
Wisconsin except to the extent such laws are preempted by federal law.
 Invalidity of any provision of this Agreement shall not affect the
validity of any other provisions of this Agreement.

21.

Other Provisions.  (if none are stated below, there
are no other provisions)

United Wisconsin Grain Producers, LLC

£ If checked here, this
Agreement renews and replaces in its entirety the £ Revolving Credit Agreement £ Term Credit Agreement T Revolving and Term Credit Agreement
between Lender and Customer dated            (the “Prior Agreement”).  Loans currently outstanding and
unpaid under the Prior Agreement shall constitute Loans outstanding and unpaid
under this Agreement, shall be payable as Loans as required under this Agreement
and shall be applied as Loans to the Credit Limit established under this
Agreement.

Dated:   April 2, 2009

LENDER:  Farmers & Merchants Union Bank

PO Box 247

Customer Address: Friesland, WI 53935

/s/ Douglas E. Lambert

(SEAL)

Douglas E. Lambert, Assistant Vice-President

CUSTOMER: United Wisconsin Grain Producers, LLC

CUSTOMER:

By:

/s/ Barb Bontrager

(SEAL)

_____________________________________________(SEAL)

      Barb Bontrager, Chief
Financial Officer

CUSTOMER:

CUSTOMER:

__________________________________________(SEAL)

_____________________________________________(SEAL)

CUSTOMER:

CUSTOMER:

___________________________________________(SEAL)

_____________________________________________(SEAL)

CUSTOMER:

CUSTOMER:

___________________________________________(SEAL)

_____________________________________________(SEAL)

EXHIBIT D

This
Exhibit D is a part of the Revolving And Term Credit Agreement between United
Wisconsin Grain Producers, LLC (“Customer”) and Farmers & Merchants Union
Bank, Columbus, Wisconsin (“Lender”) dated April 2, 2009.

Customer
shall timely perform and observe the following financial covenants, which if
applicable shall be calculated in accordance with generally accepted accounting
principles applied on a consistent basis:

A)

Maintain
a minimum book value net worth of $50,000,000.00 measured monthly.

B)

Maintain
a minimum working capital position of $7,500,000.00, measured monthly.
 Minimum working capital position shall be defined as (current assets +
available line of credit availability) minus (current liabilities + current
advanced portion of line of credit) measured monthly.

C)

Limit
annual capital expenditures to less than or equal to $1,000,000.00 without
Farmers & Merchants Union Bank’s written approval, measured monthly.

D)

Borrower
must obtain Lender consent prior to making dividends/distributions exceeding 50%
of the prior year’s net income, excluding state and federal incentive payments
accrued and/or received.  This measure will start with post 12/31/08
figures.

E)

Borrower
is prohibited from making investments not directly for the benefit of the United
Wisconsin Grain Producers facility at W1231 Tessmann Drive, Town of Randolph,
Columbia County, Wisconsin.

EXHIBIT E

This
Exhibit E is part of the Revolving And Term Credit Agreement between United
Wisconsin Grain Producers, LLC (“Customer”) and Farmers & Merchants Union
Bank, Columbus, Wisconsin (“Lender”) dated April 2, 2009.

Section
8 item (I): Customer shall not create or permit to exist any lien or encumbrance
with respect to Customer’s properties, except liens in favor of Lender, liens
for taxes if they are being contested in good faith by appropriate proceedings
and for which appropriate reserves are maintained, liens or encumbrances
permitted under any Security Document and the following liens:

		
	
·
	
UCC Filing
080006168526 to GFC Leasing for a MUP14426/S4830 Imagerunner 3035
MXD01600/S4794 IR 2022I

 

	
·
	
UCC Filing
050009431724 to Wisconsin Department of Transportation for rails, ties and
ballast connected to Union Pacific Railroad.

 

	
·
	
UCC Filing
050008688636 to Caterpillar Financial Services Corporation for a
Caterpillar 924G Wheel Loader S/N DDA01867 as well as any substitutions,
replacements, additions or accessions thereto, now owned or hereafter
acquired and proceeds thereof.

 

	
·
	
UCC Filing
050007950021 to Agstar Financial Services, ACA for a rebuilt TGS45001
track mobile and all attachments and accessories as well as 1 Accelerator
Group Air Cat 316 and all attachments and accessories.

 

	
·
	
UCC Filing
050006422317 to Caterpillar Financial Services Corporation for a
Caterpillar 924G Wheel Loader S/N DDA01866 as well as any substitutions,
replacements, additions or accessions thereto, now owned or hereafter
acquired and proceeds thereof.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}]]