Document:

Exhibit 10.2

Loan Number: 137504

	
  W.B.A. GP 4487
  (4/04)      11200

  	
  Boxes not checked are
  inapplicable

  

©
2004 Wisconsin Bankers Association/Distributed by FIPCO®

TERM CREDIT AGREEMENT

(Business Loans)

United Wisconsin
Grain Producers, LLC

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

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

(a)  Single Note;
Multiple Advances. x  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 “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
“Credit Limit) in one or more advances before  n/a                                                                           .  Customer’s
obligation to repay the 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
payable to the order of Lender; provided that Customer shall only be obligated
to pay amounts which Lender has advanced. Amounts advanced to Customer
and repaid to Lender may not be reborrowed by Customer under this Agreement.

(b)  Multiple
Notes; Multiple Advances. o  If checked here, and in
consideration of extensions of credit from Lender to Customer from time to
time, Lender and Customer agree that sections 4 through 19 of this Agreement
shall apply to each such extension of credit unless evidenced by a document
which states it is not subject to this Agreement. The term “Loan” includes all
such extensions of credit. The term “Note” includes each promissory note evidencing Customers
obligation to repay an extension of Credit. This Agreement does not constitute
a commitment by Lender to make such extensions of credit to Customer.

2.
Loan Procedures. Customer may obtain advances of the Loan
under this Agreement by giving Lender at least ___ business days’ prior notice of any advance requested, specifying the
date and amount of the advance. Lender will make the funds available to
Customero by crediting the amount of the advance to
Customers account (Account No.______) with Lender o  by_______. Each advance which
is less than the remaining amount available to Customer under this Agreement shall
be in an amount of not less than $_____.  o Lenders obligation to make each advance is subject to the further
condition that Lender shall have received a certificate signed by
Customer, dated the date of the request for the advance 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.

3. Conditions to Loan. Lender’s
obligation to make the initial advance of the Loan is subject to the
satisfaction of the following conditions:

(a)     Lender shall have received
the Note duly executed by Customer.

(b) x Lender shall have received the following security
documents and the additional security documents described on Exhibit B, if any
(the “Security Documents”), duly
executed, all accompanied by the appropriate financing statements:  Real Estate Mortgage, General  Business Security Agreement and Revolving Credit Agreement.  

(c) Lender shall have received copies:

o       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, the Note and the Security Documents, if any;

o       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, the Note and the Security
Documents, if any;

x   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, the
Note and the Security Documents, if any;

o   certified by a trustee
regarding the existence, name and other matters pertaining to the 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; 

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

(d) o  Lender shall have received a statement of sole ownership
executed by the sole proprietor.

(e)    o  Lender shall have received
the following additional documentation executed by the trust and/or trustee: n/a.

(f)        o  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(e), 4(f) or 4(g), as
applicable, and 4(k) of this Agreement and such other matters as Lender may
reasonably request.

(g)  o  Lender shall have received a
guaranty of payment of the Loan duly executed by  n/a  on WBA form     .

(h) All proceedings taken by Customer in connection with the Loan, 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.

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

(a)               No part of the Loan
will be used for personal, family or, household purposes.

(b)              Customer will not
use  any part of the proceeds of
the Loan to purchase or carry any margin stock within the meaning of Regulation
U of the Board of Governors of the Federal Reserve System.

(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)               o
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
requires such qualification.

(e)                o
Customer is a n/a partnership legally organized, validly existing and in
good standing under the laws of the State of    
n/a.

(f)                  x
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 property requires such
qualification.

(g)               o
Customer is a o testamentary
trust n/a (Probate Caption and File Number)  o
revocable living trust o irrevocable
living trust n/a (Name and Address of Trust) 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 set forth following Section 19 below.

(i)                   If
the Customer is an individual, the address of Customer’s principal residence is
as set forth below Section t9. 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 19.

(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)     (i) 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”); (ii) Customer has no
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; (iii) 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; (iv) 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; (v) Customer is not subject to
any court or administrative proceeding, judgment, decree, order or citation
relating to any Hazardous Substance; and (vi) 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
(1) 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, (2) 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, (3) the
imposition of any governmental lien for the recovery of environmental clean-up
costs expended under any
Environmental Law, or (4) 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.

5.            Capital
Adequacy. If Lender shall
determine that any existing or future law, rule, regulation, directive,
interpretation, treaty or guideline regarding
capital adequacy (whether or not having the force of law) increases or would
increase, from that required on the date of this Agreement, the amount of capital required or expected to be maintained by
Lender, or any corporation controlling Lender, and if such increase is based upon the existence of Lender’s obligations
under this Agreement and other commitments of this type, then from time to
time, within ten days after demand
from Lender, Customer shall pay to Lender such amount or amounts as will
compensate Lender for expenses or costs required to meet such increased capital
requirement. For purposes of calculating the amount of compensation required,
Lender, or any corporation controlling
Lender, may conclusively be deemed to have maintained the minimum amount of
capital required on the date of this Agreement,
and may base such compensation on the assumption that Lender (or such
corporation) will need to increase its capital from such minimum amount to the
new required amount. The determination of any amount to be paid by Customer
under this section shall take into consideration the policies of Lender, or any
corporation controlling Lender, with respect to capital adequacy and shall be
based upon any reasonable method of
attribution. A certificate of Lender setting forth such amount or amounts as
shall be necessary to compensate Lender as specified in this section
shall be delivered to Customer and shall be conclusive absent manifest error.

6.            Interest  Rate. Customer
agrees to pay interest to Lender on the unpaid principal balance

outstanding from time to time on the Loan in accordance with the
Note.

7.            Payment Schedule. Customer
agrees to pay to Lender the unpaid principal balance and interest in accordance
with the Note.

8.            Covenants. Customer
shall, so long as any amounts remain unpaid:

(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:

(i)
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 to Lender, prepared in accordance with generally
accepted principles of accounting applied on a consistent basis, either o (1) o compiled o reviewed x audited by an independent certified
public accountant acceptable to Lender, or o (2) certified by the
chief financial representative of Customer, and

(ii)
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.

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.

(b)
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 or intangible properties as often as desired.

(c) Maintain insurance coverage in the form (together with any lender’s
loss payee clause requested by Lender), amounts and with companies which would be carried by prudent management in
connection with similar businesses engaged in similar activities in similar
geographic areas. Without limiting this section or the requirements of
any Security Document, Customer will [a] keep all its physical property insured
against fire and extended coverage risks in amounts and with deductibles at
least equal to those generally maintained by businesses engaged in similar
activities in similar geographic areas, [b] maintain all such workers’
compensation and similar insurance as may be required by law and [c] 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.

(d)         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.

(e)      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.

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

(i)     o
Maintain at all times an excess of current assets over current liabilities of
not less than $____.

(ii)    x Maintain at all times a tangible net worth of not less than $ 24,000,000.00         .

(iii)   o
Not make any expenditures for fixed or capital assets which would cause

the aggregate of all such expenditures to exceed _________
during any fiscal year.

(iv)  o  Maintain at all times a ratio of current assets to current
liabilities of not less than ______ to one.

(v)  o Maintain at all times
a ratio of total liabilities to tangible net worth of not greater than
______  to one.

(vi)
o____________________________.

(g)  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 see attached Exhibit
D (if left blank, no other permitted liens or encumbrances).

(h)
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 for Customer’s obligations under this Agreement or the Note ceases to
exist, dies, changes marital status or domicile or becomes insolvent or the
subject of bankruptcy or insolvency proceedings or that any guaranty of
Customers obligations under this Agreement is revoked or becomes unenforceable
for any reason.

(i) Not change its type of organization or state under
whose law it is organized as represented in Section 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.

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

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

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

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

(n)         x Unless otherwise consented to in writing
by Lender, timely perform and observe all additional covenants described on
Exhibit C.

9.                  Security
Interest. The Note is
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 Loan 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 account 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 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, (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 or the Note, (e) any guaranty of Customer’s obligations under 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 or verbal notice to Customer, Lender’s
obligation to make the Loan 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 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 Lenders 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.                 Venue. To the extent not prohibited by law, venue for any
legal proceeding relating to enforcement of this Agreement or the Note shall
be, at Lender’s option, the county in which Lender has its principal office in
this state, the county in which Customer resides, or the county in which this
Agreement was executed by Customer.

12.                  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 the Loan
and the discharge and release of any Security Documents.

13.                 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.

14.                 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 their agreement except as set
forth in this Agreement, the Note and the Security Documents.

15.               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
or the exercise of any other right. The remedies provided in this Agreement are
cumulative and not exclusive of any remedies provided by law.

16.               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.

17.               Persons Bound. Each of the undersigned Customers is jointly and
severally liable for all Loans and other obligations under this Agreement. 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.

18.            Interpretation. The validity, construction and enforcement of this
Agreement are governed by the internal laws 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.

19.               Other
Provisions. (If no other provisions are stated below, there are no
other provisions.)

The
representations and warranties contained in paragraph 4.(k) shall not apply to
Customer’s production of Ethanol, Distiller’s Grain, Carbon Dioxide and such other products as are standard
in Customer’s line of business; and, that Customer’s production of such
products shall not be considered an event of default.

Dated as of May 25, 2006.

	
  

  	
   

  	
   

  	
   

  	
  United Wisconsin Grain
  Producers, LLC     (SEAL)

  
	
   

  	
   

  	
   

  	
   

  	
  A Wisconsin Limited
  Liability Company                 

  
	
   

  	
   

  	
   

  	
   

  	
  (Type of
  Organization)

  	
   

  
	
  Farmers & Merchants Union
  Bank       (SEAL)

  	
   

  	
   

  	
   

  	
  By: /s/ Barb
  Bontrager                                  (SEAL)

  
	
  By:  /s/ Rebecca J. Schulz                                

  	
   

  	
   

  	
   

  	
    Barb Bontrager, Chief Financial Officer

  	
   

  	
   

  
	
  Rebecca J. Schulz

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Loan Officer (Title)

  	
   

  	
   

  	
   

  	
  PO Box 247

  	
   

  	
   

  
	
  159 W. James Street, PO Box 226

  	
   

  	
   

  	
   

  	
  Friesland, WI 53935

  	
   

  	
   

  
	
  Columbus, WI 53925

  	
   

  	
   

  	
   

  	
  (Customer’s Address)

  	
   

  	
   

  
	
  (Lender’s Address)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

EXHIBIT C

This Exhibit C is a part of the
Term Credit Agreement between United Wisconsin Grain Producers, LLC (“Customer”) and Farmers & Merchants Union
Bank, Columbus, Wisconsin (“Lender”) dated May 25, 2006.

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 tangible net worth of $24,000,000.00 measured monthly.

B)                                          Increase
minimum tangible net worth annually by an amount equal to retained earnings or
$500,000.00, whichever is smaller, measured annually, utilizing the audited
financial statement.

C)                                         Owner’s
equity is to be at least 45% continuously, measured monthly.

D)                                        Maintain
a minimum working capital position of $4,000,000.00, 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.

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

F)                                          Borrower
must obtain Lender consent prior to making dividends/distributions
exceeding 65% of the previous year’s net income, excluding state and federal
incentive payments accrued and/or received, measured annually.

EXHIBIT D

This Exhibit D is a part of the Term Credit Agreement
between United Wisconsin Grain Producers, LLC (“Customer”) and Farmers &
Merchants Union Bank, Columbus, Wisconsin (“Lender”) dated May 25, 2006.

Section 8 item (G): Customer shall
not create or permit to exist any line 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:

·                  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 SIN DDA01867 as well
as any substitutions, replacements,
additions or accessions thereto, now owned or hereafter acquired and proceeds thereof

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

·                  Subordinate Security Agreement in the amount of
$100,000.00 to Fagen, Inc. (Building
Contractor) for completion of work on UWGP. Payment to be made from UWGP
to Fagen, Inc.

·                  Financing
provided by Ag Star Financial Services for a rail shuttle wagon.Exhibit
10.3

Loan Number: 137506                                          United Wisconsin Grain
Producers, LLC                              Due Date: June 1, 2011

W.B.A.  GP 448R (4/04)  11286                                                                                                           Boxes not checked are
inapplicable

©2004 Wisconsin Bankers
Association/Distributed by FIPCO®

REVOLVING
CREDIT AGREEMENT

(Business Loans)

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.         Revolving
Loans. Customer requests that Lender lend to Customer from
time to time such amounts as Customer may request in accordance with this
Agreement (the “Loans”), and, subject to the terms of this Agreement, Lender
agrees to lend such amounts up to the aggregate
principal amount of $  5,000,000.00  at any time outstanding (the “Credit
Limit”). Within the Credit Limit, Customer may borrow, repay and
reborrow under this Agreement. Lender is not obligated to but may make Loans in
excess of the Credit Limit, and in any event Customer is liable for and agrees
to pay all Loans.

2.         q  Borrowing  Base. The
aggregate amount of all Loans at any time outstanding under this Agreement
shall never exceed the lesser of the Credit Limit or the Borrowing Base
described on Exhibit A.

3.         Conditions
for Loans. Lender’s
obligation to make the initial Loan is subject to satisfaction of the following
conditions:

(a) x Lender shall have received the following security documents and the
additional security documents described on Exhibit B, if any (the “Security Documents”), duly executed, all
accompanied by the appropriate financing statements: Real Estate Mortgage,                                                                                                  

Business Security Agreement and Term
Credit Agreement                                                        

(b) Lender shall have received copies:

o       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;

o       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;

x     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;

o       certified
by a trustee regarding the existence, name and other matters pertaining to the
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;

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 request Loans under this
Agreement, together with true signatures of such representatives, and of such
other matters as Lender may reasonably request.

(c) q
Lender shall have received an affidavit of sole ownership executed by the sole
proprietor.

(d) q Lender
shall have received the following additional documentation executed by the
trust and/or trustee:  Na                                                                                                                                                                                                                                                

(e)     q Lender
shall have received from counsel for Customer a favorable opinion satisfactory
to Lender covering the matters described in sections 5(c) and 5(d), 5(e), 5(f) or 5(g), as applicable, and 5(k) of
this Agreement and such other matters as Lender may reasonably request.

(f)       q
Lender shall have received a guaranty of payment of the Loans duly executed by Na                                                                                                                                                                                                                                                                                                                                
on WBA form                                      

(g)   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.

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

(a)   q Customer
shall give Lender q at least                                                                    business
days’ prior notice or q                                                                                                                                                                                          

Of any Loan requested under this Agreement,
specifying the date and amount of the Loan. 
Lender will make the Loan available to Customer q by
crediting the amount of the Loan to Customer’s account (acct. no.                                                                                 ) with
Lender or q                                                                                                                                                                                                                    

Each Loan which is less than the full amount
available to Customer under this Agreement shall be in an amount not less than
$                                                                  .

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

(c)  S  At Customer’s written request by
facsimile. Individuals authorized to make loan advances are listed on deposit
account resoultion  dated May 20, 2005
and require two signatures. Farmers & Merchants Union Bank shall advance
the loan no later than one business day after receipt of customer’s loan draw
request. 

q  Lender’s
obligation to make each Loan (including the initial Loan) is subject to the
further condition that Lender shall have received a certificate signed by Customer, dated the date of
the Loan request and stating that the representations and warranties in section
5 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 Loan.

5.         Representations
and Warranties. Customer
represents and warrants to Lender that on the date of each Loan:

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

(b)         Customer will not use any part of the proceeds of Loans to purchase any
margin stock within the meaning of Regulation U of the Board of Governors of
the Federal Reserve System.

(c)           The execution and delivery of this Agreement and the Security Documents,
and the performance by Customer of its obligations under this Agreement 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
and the Security Documents, when executed and delivered, will constitute
the valid and binding obligations of Customer enforceable in accordance with
their terms.

(d)         q 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
requires such qualification.

(e)  q
Customer is a n/a   partnership legally organized, validly
existing and in good standing under the laws of the State of n/a    .

(f)  S
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 property
requires such qualification.

(g)         q
Customer is a q testamentary
trust n/a                                                                                                          

(Probate Caption and File
Number)

q
revocable living trust q irrevocable
living trust n/a                                                                                     

(Name and Address of Trust)

                                                                                                                                                                                    

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 23

(i)             If
Customer is an individual, the address of Customer’s principal residence is as
set forth below Section 23.  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 12.

(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)          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 Customers 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”); (ii) Customer has no 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; (iii) 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; (iv) 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; (v) Customer is not subject to any court or administrative
proceeding, judgment, decree, order
or citation relating to any Hazardous Substance; and (vi) 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 (1) 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, (2) 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, (3) the
imposition of any governmental lien for the recovery of environmental clean-up
costs expended under any Environmental Law, or (4) 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.

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

(a)          q
Commitment fee in the amount of $ n/a                                           .

(b)         q
Commitment fee in the amount equal to n/a                   
% per year of the average daily unused portion of the Credit Limit from the
date of this Agreement until the Termination Date specified in section 15,
payable n/a                                                                                                                                                                                                                                                                                                                     

(c)          S
Customer to pay a servicing fee of $10,000.00, annually on the anniversary
date                                   

7.         Capital Adequacy.  If Lender shall determine that any existing or
future law, rule, regulation, directive, interpretation, treaty or guideline regarding capital adequacy (whether or not having
the force of law) increases or would increase, from that required on the date
of this Agreement, the amount of
capital required or expected to be maintained by Lender, or any corporation
controlling Lender, and if such increase is based upon the existence of Lender’s obligations under this
Agreement and other commitments of this type, then from time to time, within
ten days after demand from Lender,
the Customer shall pay to Lender such amount or amounts as will compensate
Lender for expenses or costs required
to meet such increased capital requirement. For purposes of calculating the
amount of compensation required, Lender, or any corporation controlling
Lender, may conclusively be deemed to have maintained the minimum amount of
capital required on the date of this Agreement,
and may base such compensation on the assumption that Lender (or such
corporation) will need to increase its capital from such minimum amount
to the new required amount. The determination of any amount to be paid by Customer
under this section shall take into consideration
policies of Lender, or any corporation controlling Lender, with respect to
capital adequacy and shall be based upon any reasonable method of attribution. A certificate of Lender setting forth
such amount or amounts as shall be necessary to compensate Lender as specified
in this section shall be delivered to Customer and shall be conclusive absent
manifest error.

8.         Interest Rate and Other Charges.  Customer agrees to pay interest to Lender on
the unpaid principal balance outstanding from time to time under this Agreement
[Check (a) or (b); only one shall apply.]:

(a)          S
At the rate of 7.400                             
% per year.

(b)         q
At a rate per year equal to n/a          
percentage points over the                                                                               n/a                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

(“Index Rate”). The Index
Rate may or may not be the lowest rate charged by Lender.  Any change in the interest rate resulting
from a change in the Index Rate shall become effective without notice to
Customer as of the day on which such change in the Index Rate becomes
effective.  A change in the interest rate
will apply both to the outstanding principal balance and to new Loans.  If the Index Rate ceases to be made available
to Lender during the term of this Agreement, Lender may substitute a comparable
index.  Notwithstanding the Index Rate,
the annual rate of interest shall not at any time be less than n/a         %.

Interest under (a) or (b) is computed on the basis of
the actual number of days the principal balance is unpaid based upon a year of S
360 days q 365 days. 
If 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 S                              5.00 % of the
unpaid amount q $ n/a               .  Unpaid principal and interest bear interest
after maturity (whether by acceleration or lapse of time) until paid at the
rate S which would
otherwise be applicable plus 2.00      
percentage points q of n/a                % per year, computed on the
same basis.

9.         Payment
Schedule.  Customer
agrees to pay to Lender the unpaid principal balance and interest as follows:
[Check (a), (b), (c) or (d)].

(a)          q
in one payment on q demand q
the Termination Date specified in section 15.

(b)         S
in payments of interest, beginning July 1, 2006             , 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 15.

(c)          q
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 15.

(d)         q
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

In addition, Customer
shall immediately pay any amount by which the Loans exceed the Credit Limit or
the Borrowing Base established under section 2, 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 the Lender at its address shown above and are not credited until
received in Lender’s office. Lender is authorized to make book entries
evidencing Loans and payments under
this Agreement and the aggregate unpaid amount of all Loans as evidenced by
those entries is presumptive evidence that those amounts are outstanding
and unpaid to Lender.

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

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

(i) 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 a reasonable detail and satisfactory in scope to
Lender, prepared in accordance with generally accepted principles of accounting applied on a consistent basis, either q (1) q compiled q
reviewed S audited by an
independent certified public accountant acceptable to Lender, or q
(2) certified by the chief financial representative of Customer, and

(ii) 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.

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.

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

(c)          Maintain insurance coverage in the forms (together with any lender’s
loss payee clause requested by Lender), 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 amounts and with deductibles at least equal to those
generally maintained by businesses
engaged in similar activities in similar geographic areas, [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.

(d)         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.

(e)          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.

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

(i)    q
Maintain at all times an excess of current assets over current liabilities of
not less than $                                                    .

(ii)   S
Maintain at all times a tangible net worth of not less than $ 24,000,000.00                       .

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

(iv)      q
Maintain at all times a ratio of current assets to current liabilities of not
less than                                                          to one.

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

(vi)      q
                                                                                                                                                       

(g)         Furnish to Lender the
Borrowing Base Certificates required under Exhibit A, if any.

(h)         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

See attached Exhibit D                                                                                                                                            

(if
left blank, no other permitted liens or encumbrances)

(i)             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 for Customer’s obligations under this Agreement ceases 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.

(j)             Not change its type of organization or state under
whose law it is organized as represented in Section 5(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.

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

(l)             Not change its
address without providing at least 30 days prior written notice to the change
to Lender.

(m)       Timely perform all duties
and responsibilities imposed on Customer under Section 5(k).

(n)         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.

(o)         S
Unless otherwise consented to in writing by Lender, timely perform and observe
all additional covenants described on Exhibit C.

11.      Security Interest.  This
Agreement is secured by all existing and future security agreements,
assignments and mortgages from Customer to Lender, from any guarantor of
this Agreement to Lender, and from any other person to Lender providing
collateral security for Customers
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 account 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 against
any deposit balances or other money now or hereafter owed to Customer by
Lender.

12.      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 under any other
instrument evidencing any indebtedness of Customer, (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 Customers financial condition,
(d) Customer fails to timely observe or perform any of the covenants or
duties contained in this Agreement, (e) any guaranty of Customers obligations
under this Agreement 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;

then, at Lender’s
option, and upon written or verbal notice to Customer, Lender’s obligation to
make 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 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).

13.      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.

14.      Venus. 
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 in which Customer resides, or the county in which this Agreement
was executed by Customer.

15.      Termination.  Unless sooner terminated under Section 12, Customers right to obtain
Loans and Lenders obligation to extend credit under this Agreement shall terminate on the date payment is due under
section 9(a), if applicable, or on  June 1,
2011   whichever
is earlier (the “Termination Date”). Customer may terminate Customers right to
obtain Loans under this Agreement at any time and for any reason by written
notice to the Lender. 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 Lenders rights, powers and privileges, nor Customer’s
duties and liabilities, with regard to the then existing balance under
this Agreement.

16.      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.

17.      Entire Agreement.  This
Agreement, including the Exhibits attached or referring to it, 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.

18.      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 or the exercise of any other right.
The remedies provided in this Agreement are cumulative and not exclusive
of any remedies provided by law.

19.      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 a Loan upon notice from any of the
undersigned. Any of the undersigned Customers may request Loans under this
Agreement. Each of the undersigned Customers is jointly and severally liable
for all Loans and other obligations under this Agreement.

20.      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 it 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
15 shall not be effective until received by Lender.

21.      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.

22.      Interpretation.  The validity, construction and enforcement of this Agreement are
governed by the internal laws 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.

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

The
representations and warranties contained in paragragh 5. (k) shall not apply to
Customer’s production of Ethanol, Distillees Grain, Carbon Dioxide and such other products as are standard in
Customer’s line of busines; and, that Customer’s production of such products
shall not be considered and event of default.

Dated as of May 25,
2006                                                           .

Farmers & Merchants
Union Bank           (SEAL)                        United Wisconsin Grain Producers,
L.L.C. (SEAL)

                (Name of Lender)

By/s/ Rebecca J.
Schulz                                                                   A Wisconsin Limited Liability Company                    

     Rebecca J. Schulz                                                                                                    (Type
of Organization)

(Loan Officer                                                 )

159 W. James Street, PO
Box 226

Columbus, WI 53925                                                                   By:/s/ Barb Bontrager                                         (SEAL)

Barb Bontrager, Chief
Financial Officer

                                                                                       (SEAL)

                                                                                       (SEAL)

                                                                                       (SEAL)

PO
Box 247

Friesland,
WI 53925                                                    

(Customer’s
Address)

 

 

 

 

 

 

 

 

 

 

Class: 07 Purpose:  171 
Phone 920-348-5016  SS/ID No.:
39-2032455 Coll: Mortgage dtd 5/25/06 and GBSA dtd 5/25/06  Title Refinance

EXHIBIT C

This Exhibit C is
a part of the Revolving Credit Agreement between United Wisconsin Grain
Producers, LLC (“Customer”) and Farmers & Merchants Union Bank, Columbus,
Wisconsin (“Lender”) dated May 25, 2006.

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
tangible net worth of $24,000,000.00 measured monthly.

B)                                    Increase
minimum tangible net worth annually by an amount equal to retained earnings or
$500,000.00,whichever is smaller, measured annually, utilizing the audited
financial statement.

C)                                    Owner’s
equity is to be at least 45% continuously, measured monthly.

D)                                   Maintain
a minimum working capital position of $4,000,000.00, 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.

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

F)                                     Borrower
must obtain Lender consent prior to making dividends/distributions exceeding
65% of the previous ear’s net income, excluding state and federal incentive
payments accrued and/or received, measured annually.

EXHIBIT D

This Exhibit D is
a part of the Revolving Credit Agreement between United Wisconsin Grain
Producers, LLC (“Customer”) and Farmers & Merchants Union Bank, Columbus,
Wisconsin (“Lender”) dated May 25, 2006.

Section 10 item
(H): Customer shall not create or permit to exist any line or encumbrance with
respect to Customer’s properties, except liens in favor of Lender, lines 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:

·                  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 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.

·                  Subordinate Security Agreement in the
amount of $100,000.00 to Fagen, Inc. (Building Contractor) for completion of
work on UWGP.  Payment to be made from
UWGP to Fagen, Inc.

·                  Financing provided by Ag Star
Financial Services for a rail shuttle wagon.

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