Document:

Exhibit
10.4

AMENDED AND RESTATED

CONSTRUCTION LOAN AGREEMENT

THIS AMENDED AND RESTATED CONSTRUCTION LOAN
AGREEMENT (this “Agreement”) is dated this 5th day of April, 2007, and is made by and between
LSCP, LLLP, an Iowa limited liability
limited partnership (“LSCP, LLLP”), successor in interest to LSCP, L.P., an
Iowa limited partnership (“LSCP, L.P.”), with its principal offices in Marcus,
Iowa (LSCP, LLLP and LSCP, L.P. are referred to collectively herein as the “Borrower”),
and FIRST NATIONAL BANK OF OMAHA, a
national banking association with its principal offices in Omaha, Nebraska (the
“Bank”).

WHEREAS, the Bank and the Borrower, through its
predecessor in interest LSCP, L.P., are currently parties to a Construction
Loan Agreement, dated as of July 25, 2002, as amended by (i) that certain First
Amendment to Construction Loan Agreement, dated as of April 29, 2003, by and
between the Bank and LSCP, L.P., (ii) that certain Second Amendment to
Construction Loan Agreement, dated as of June 1, 2003, by and between the Bank
and LSCP, L.P., (iii) that certain Third Amendment to Construction Loan
Agreement, dated as of June 23, 2003, by and between the Bank and LSCP, L.P.,
(iv) that certain Fourth Amendment to Construction Loan Agreement, dated as of
July 24, 2003, by and between the Bank and LSCP., L.P., (v) that certain Fifth Amendment to Construction Loan
Agreement, dated as of July 20, 2004, by and between the Bank and LSCP,
LLLP, (vi) that certain Sixth Amendment to Construction Loan Agreement dated as
of December 1, 2004, by and between the Bank and LSCP, LLLP, (vii) that
certain Seventh Amendment to Construction Loan Agreement, dated as of
June 13, 2005, by and between the Bank and LSCP, LLLP, (viii) that certain
Eighth Amendment to Construction Loan Agreement, dated as of July 22,
2005, by and between the Bank and LSCP, LLLP, (ix) that certain Ninth Amendment
to Construction Loan Agreement, dated as of September 1, 2005, by and
between the Bank and LSCP, LLLP, (x) that certain Tenth Amendment to Construction
Loan Agreement, dated as of December 19, 2005, by and between the Bank and
LSCP, LLLP, and (xi) that certain Eleventh Amendment to Construction Loan
Agreement, dated as of March 30, 2006, by and between the Bank and LSCP,
LLLP (collectively, the “Existing Loan Agreement”);

WHEREAS, the Borrower has requested that the Bank
amend and restate the Existing Loan Agreement to, among other things, (i) lend
to the Borrower, subject to the terms and provisions of this Agreement, a sum
not exceeding Seventy Three Million and No/100ths Dollars ($73,000,000.00) (the
“Construction Loan”) for the purpose of partially funding the construction of
the Expansion Facility (as defined below) on the real estate described in
Exhibit “A” attached hereto and incorporated herein by this reference (the “Property”)
and the subsequent replacement of the Construction Loan with the Term Loan (as
defined below) for the Project (as defined below) and the Property, together
with a Five Million and No/100ths Dollars ($5,000,000.00) operating line of
credit and letter of credit facility (the “Operating Loan”) and the Swap
Contracts  and (ii) amend and restate the
terms and provisions of the Existing Operating Note, the Existing Term Loans
and the Business Credit Card Loan (as defined below); and

WHEREAS, the Bank is willing to amend and restate the
Existing Loan Agreement and provide such credit facilities to the Borrower
upon, and subject to, the terms, provisions and conditions herein set forth.

NOW, THEREFORE, in
consideration of the foregoing recitals and the promises herein made, and in
reliance upon the representations, warranties and covenants herein contained,
and intending to be legally bound hereby, the Borrower and the Bank agree as
follows:

ARTICLE
I

DEFINITIONS
AND INTERPRETATION

Section 1.01.  Defined Terms.  Terms used in this Agreement, including its
preamble and recitals, shall have the following meanings:

“Adjusted EBITDA”
means EBITDA less Capital Expenditures, taxes and allowable distributions.

“Adjustment Period”
shall have the meaning given such term in Section 2.11 of this Agreement.

“Affiliate”
means any Person (1) which directly or indirectly controls, or is controlled
by, or is under common control with such Person; (2) which directly or
indirectly beneficially owns or holds ten percent (10%) or more of any
membership or other equity interest of such Person; (3) ten percent (10%) or
more of the voting stock of which is directly or indirectly beneficially owned
or held by such Person; or (4) ten percent (10%) or more of any membership or
other equity interest of which is directly or indirectly beneficially owned or
held by such Person.  The term “control”
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of a Person, whether through the
ownership of voting securities, through the ownership of interests in a limited
liability company, by contract, or otherwise.

“Akron” means
Akron Riverview Corn Processors, LLC, an Iowa limited liability company.

“Agreement”
shall have the meaning given such term in the preamble hereto and shall include
all schedules and exhibits to this Agreement, in each case as amended,
supplemented or modified from time to time in accordance with the terms of this
Agreement.

“Assignment of Design/Build
Construction Contract” means the Assignment of Design/Build
Construction Contract, dated the Closing Date, by which the Borrower assigns,
as additional security for repayment of the Obligations, the Borrower’s
interest in the Design/Build Construction Contract in a form acceptable to the
Bank.

“Assignment of Rents and
Leases” means the Amended and Restated Assignment of Rents and
Leases relating to the Property, dated the Closing Date, between the Borrower,
as

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assignor, and the Bank, as assignee, as additional
security for repayment of the Obligations in a form acceptable to the Bank in
the exercise of its reasonable discretion.

“ASTM” means the
American Society for Testing and Materials.

“Authorized Person”
means, to the extent duly authorized by, or in accordance with the LP
Agreement, the General Partner or such other authorized Person of the Borrower.

“Bank” shall
have the meaning given such term in the preamble hereto.

“Banking Day”
means a day (other than a day that is a Saturday, Sunday or legal holiday in
Nebraska) on which the Bank is open for business.

“Bankruptcy
Code” means Title 11 of the United States Code, as now constituted
or hereafter amended.

 “Borrower” shall
have the meaning given such term in the preamble hereto.

“Borrowing
Base” means the lesser of:

(a)           Five Million and
No/100ths Dollars ($5,000,000.00) less the aggregate amount of any outstanding
Letters of Credit; or

(b)           The aggregate of
(i) seventy-five percent (75%) of the Borrower’s inventory of corn, at
current value on the date reported, plus (ii) seventy-five percent (75%)
of the Borrower’s Finished Goods-Distiller’s Grains Inventory, at current
value on the date reported, plus (iii) seventy-five percent (75%) of the
Borrower’s Finished Goods-Ethanol Inventory, valued at the lower of cost
or market, plus (iv) seventy-five percent (75%) of the amount of the
Borrower’s current sales accounts receivable aged thirty (30) days or less,
excluding, however, any accounts receivable reasonably deemed ineligible by the
Bank, and plus (v) seventy-five percent (75%) of the amount of the
Borrower’s current state or federal incentives accounts receivable, including,
but not limited to, USDA CCC Bio-Energy Accounts Receivable, aged less than one
hundred twenty (120) days.

“Budget Variance Report”
means the report prepared by the Borrower, from time to time, to be approved by
the Bank allocating the Total Expansion Facility Costs among its various parts
and components in a form acceptable to the Bank and providing a line item
comparison of such allocated costs in relation to the original budget, as
amended from time to time by the Borrower with the prior consent of the Bank.

“Business Credit Card Loan”
shall have the meaning given such term in Section 2.01 of this Agreement.

“Capital Expenditures”
means expenditures by the Borrower which, in accordance with GAAP, are treated
as capital expenditures and not deductible by the Borrower, other than through
depreciation or amortization, including capital expenditures in excess of the
amount

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provided in Section 6.04(l) of this Agreement, to the
extent such expenditures are approved in advance by the Bank.

“Capital Leases”
shall have the same meaning in this Agreement as those terms are defined by
GAAP.

“Change Orders”
means, collectively, (i) that certain Change Order No. 1, dated October 24,
2006, between the Borrower and the Design Builder, (ii) that certain Change
Order No. 2, dated November 21, 2006, between the Borrower and the Design
Builder, (iii) that certain Change Order No. 3, dated December 1, 2006, between
the Borrower and the Design Builder, (iv) that certain Change Order No. 4,
dated December 7, 2006, between the Borrower and the Design Builder, (v) that
certain Change Order No. 5, dated January 25, 2007, between Borrower and the
Design Builder and (vi) other change orders approved by the Bank.

“Closing Date”
means the date on which this Agreement is executed by the Borrower and the
Bank.

“Collateral Assignment”
means each collateral assignment of a Material Contract as described in Section
4.01(a)(xi) of this Agreement.

“Completion Date”
means the earlier of (i) April 20, 2008 or (ii) the date the construction of
the Project is completed.

“Construction Loan”
shall have the meaning given such term in the recitals hereto.

“Construction Loan
Commitment” shall have the meaning provided in Section 2.02 of this
Agreement.

“Construction Loan
Termination Date” means the earlier of (a) July 20, 2008 or
(b) such earlier date upon which the Bank’s commitment to make a
disbursement under the Construction Loan is otherwise terminated in accordance
with the terms of the Construction Note or this Agreement.

“Construction Note”
means the Construction Note, dated the Closing Date, by the Borrower in favor
of the Bank in the form of Exhibit ”B” attached hereto and incorporated
herein by this reference evidencing borrowings under the Construction Loan of
up to a maximum amount, subject to the terms and provisions of this Agreement,
of Seventy Three Million and No/100ths Dollars ($73,000,000.00).

 “Debt-to-Net
Worth Ratio” means, for any applicable period, the ratio derived
when comparing (i) Borrower’s Indebtedness for such period to (ii) Borrower’s
Net Worth for such period.

 “Default” means any event or condition that
upon notice, lapse of time or both would constitute an Event of Default.

“Deposit Account Control
Agreements” means (i) the Control Agreement, dated on or about the
Closing Date, among the Borrower, the Bank, and Farmers State Bank of Marcus,

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Iowa, and (ii) the Control Agreement, dated on or
about the Closing Date, among the Borrower, the Bank and Cherokee State Bank of
Cherokee, Iowa, each substantially in the form of Exhibit “C” attached hereto
and incorporated herein by this reference, pursuant to which a security
interest is perfected in favor of the Bank in the funds of the Borrower on
deposit with Farmers State Bank of Marcus, Iowa and Cherokee State Bank of
Cherokee, Iowa, respectively.

“Design/Build Construction
Contract” means the Lump Sum Design-Build Expansion Agreement, dated
September 20, 2006, between the Borrower and the Design Builder, as amended by
the Change Orders, setting forth the terms and conditions for the preparation
of plans and construction of the Expansion Facility in accordance with the
Expansion Facility Plans therein described.

“Design Builder”
means Fagen, Inc., a Minnesota corporation.

“Disbursement Agreement”
means the Disbursement Agreement, dated on or about the Closing Date, among the
Bank, the Borrower, the Title Company, and the Disbursing Agent, containing
terms and provisions mutually acceptable to each, pursuant to which funds from
the Construction Loan, as well as capital of the Borrower, are to be disbursed
in accordance with the terms and provisions thereof.

“Disbursing Agent”
means Homestead Escrow & Exchange Company, a South Dakota corporation.

“Distiller’s Grain
Marketing Contract” means that Distiller’s Grain Marketing
Agreement, dated as of June 19, 2002, by and between the Borrower and Commodity
Specialist Company, a Delaware corporation, by which the latter agrees to
provide marketing services to the Borrower for the Borrower’s distiller’s grain
products.

“Draw Request”
means the form or forms acceptable to the Bank to be submitted to the Bank by
the Borrower when a disbursement is requested under the Construction Note.

“EBITDA” means
earnings before interest, taxes, depreciation and amortization, all experienced
during the applicable reporting period.

“Environmental Requirements”
means all federal, state and local statutes, regulations, rules, requirements,
decrees, and ordinances concerning pollution or protection of the environment,
health and safety, including all those relating to the presence, use,
production, generation, handling, transportation, treatment, storage, disposal,
distribution, labeling, testing, processing, discharge, release, threatened
release, control, or cleanup of any hazardous materials, substances, or wastes,
as such requirements are enacted and in effect on or prior to the date of each
disbursement to the Borrower hereunder and at all times thereafter until the
satisfaction of Borrower’s Obligations.

“ERISA” means
the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the regulations and published interpretations thereof.

“Ethanol Marketing Contract”
means the Amended and Restated Ethanol Marketing Agreement, dated March 29,
2007, by and between the Borrower and Archer Daniels Midland

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Company, by which the latter agrees to provide
marketing services to the Borrower for the Borrower’s ethanol products.

“Eurodollar Business Day”
means a Banking Day on which commercial banks are open for international
business (including dealings in United States dollar deposits) in London,
England.

“Event of Default”
has the meaning provided for in Article VII of this Agreement.

“Excess Cash Flow”
means Adjusted EBITDA less Scheduled Payments and scheduled payments on any
Subordinated Debt.

“Existing Assignment of
Rents and Leases” means the Assignment of Rents, dated July 25,
2002, by the Borrower in favor of the Bank.

“Existing Loan Agreement”
shall have the meaning given such term in the preamble hereto and shall include
all schedules and exhibits thereto.

“Existing Loan Documents” means
the Existing Loan Agreement, the Existing Security Agreement, the Existing
Assignment of Rents and Leases, the Existing Mortgage, the Existing Long Term
Revolving Note, the Existing Operating Note, the Existing Swap Note, the
Existing Term Loan, the Existing Term Notes and the Existing Variable Rate
Note, to the extent such agreements or any portion thereof is in effect on and
after the Closing Date after giving effect to the terms and conditions of this
Agreement.

“Existing Long Term
Revolving Note” shall mean the term as it is defined and modified
under the provisions of Section 2.01 of this Agreement.

“Existing Mortgage”
means the Mortgage, dated July 25, 2002, by the Borrower in favor of the Bank,
filed with the Cherokee County Recorder on July 26, 2002, as Instrument Number
02-1598, and as amended by that certain Amendment to Mortgage by and between
the Bank and the Borrower, dated December 2, 2004, filed with the Cherokee
County Recorder on March 4, 2005 at Book 2005, Page 0448.

“Existing Operating Note”
shall mean the term as it is defined and modified under the provisions of
Section 2.01 of this Agreement.

“Existing Security
Agreement” means the Security Agreement, dated July 25, 2002, by the
Borrower in favor of the Bank.

“Existing Swap Note”
shall have the meaning given such term in Section 2.01 of this Agreement.

“Existing Swap Loan
Termination Date” means the earlier to occur of (a) June 1, 2008, or
(b) the date the Obligations are accelerated pursuant to this Agreement or the
Notes and (c) the date the Bank has received (i) notice in writing from the
Borrower of the Borrower’s election to terminate this Agreement or (ii)
indefeasible payment in full of the Obligations.

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“Existing Term Loan”
shall mean an amount of up to Nineteen Million Eight Hundred Fifty Thousand
Four Hundred Sixty Dollars and Eighty Six Cents ($19,850,460.86) loaned,
subject to the terms and conditions of the Existing Loan Agreement and the
Existing Term Notes.

“Existing Term Notes”
means the Existing Swap Note, the Existing Variable Rate Note and the Existing
Long Term Revolving Note.

“Existing Variable Rate
Note” shall mean the term as it is defined and modified under the
provisions of Section 2.01 of this Agreement.

“Expansion Facility”
means the design and construction of an additional facility on the Project,
together with all necessary appropriate fixtures, equipment, attachments and
accessories, as described in the Expansion Facility Plans, such that following
completion thereof the ethanol plant operates at the maximum operational
capacity of 92 million gallons per year, as provided in the Expansion Facility
Plans.

“Expansion Facility Plans”
means the plans and specifications for construction of the Expansion Facility.

“Extension of Credit”
means (i) disbursements under the Construction Loan, the Operating Loan, the
Term Loans, or the Existing Term Loan, or (ii) the issuance of a Letter of
Credit.

“FCStone” shall
have the meaning given such term in Section 6.03(h) of this Agreement.

“Fee Letter”
means the Fee Letter, dated April  5,
2007, by the Bank and accepted and agreed to by the Borrower.

“FEMA” means the
Federal Emergency Management Agency.

“Final Survey”
means the survey provided for in Section 4.03(d) hereof.

“Finished Goods-Distiller’s
Grains Inventory” means distiller’s grain, either wet or dry, that
conforms to minimum quality standards as developed by current industry
standards.

“Finished Goods-Ethanol
Inventory” means ethanol that conforms to minimum quality standards
as developed by current industry standards, including, but not limited to,
ASTM D 4806a specifications for E-Grade denatured ethanol.

“Fixed Charge Coverage
Ratio” means the ratio derived when comparing (i) Adjusted
EBITDA to (ii) the Borrower’s Scheduled Payments made during the
applicable reporting period.

“GAAP” means
generally accepted accounting principles in the United States, applied on a
basis consistent with the accounting principles applied in the preparation of
the annual financial statements of the Borrower referred to in
Section 6.01 of this Agreement and the financial statements and
Projections described in Section 5.09 of this Agreement.

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“General Partner”
means Little Sioux Corn Processors, L.L.C., an Iowa limited liability company.

“Governmental Authority” shall
mean any federal, state, county, or local governmental department, commission,
board, bureau, agency, authority, instrumentality or judicial or regulatory
body or entity having or asserting jurisdiction as to the Property, the Project
or the Borrower, either during the construction of the Project or the operation
of the Project following completion thereof, including courts of appropriate
jurisdiction.

“Guarantor”
means the General Partner.

“Guaranty” means
the unlimited and unconditional guaranty of the General Partner in the form of
Exhibit “D” attached hereto and incorporated herein by this reference.

“Indebtedness”
means, as to the Borrower, all items of indebtedness, obligation or liability,
whether matured or unmatured, liquidated or unliquidated, direct or contingent,
joint or several including, but without limitation:

(a)           The
Obligations;

(b)           All
indebtedness or liability for borrowed money or indebtedness and all
indebtedness guaranteed, directly or indirectly, in any manner, or endorsed
(other than for collection or deposit in the ordinary course of business) or
discounted with recourse;

(c)           All
indebtedness in effect guaranteed, directly or indirectly, through agreements,
contingent or otherwise (i) to purchase such indebtedness; or (ii) to
purchase, sell or lease (as lessee or lessor) property, products, materials or
supplies or to purchase or sell services, primarily for the purpose of enabling
the debtor to make payment of such indebtedness or to insure the owner of the
indebtedness against loss;

(d)           All
indebtedness or obligations (i) for the payment of deferred purchase price of
property or services (including trade obligations), (ii) as lessee under
Capital Leases, (iii) obligations under letters of credit, including the
Letters of Credit, (iv) current liabilities in respect of unfunded vested
benefits under plans covered by ERISA, (v) obligations under acceptance
facilities, and (vi) other contingent obligations of Borrower to purchase, to
provide funds for payment, to supply funds to invest in any Person or entity,
or otherwise to assure a creditor against loss;

(e)           All
indebtedness secured by (or for which the holder of such indebtedness has a
right, contingent or otherwise, to be secured by) any mortgage, deed of trust,
pledge, lien, security interest or other charge or encumbrance upon property
owned or acquired subject thereto, whether or not the liabilities secured
thereby have been assumed, or other indebtedness or obligations otherwise
evidenced by bonds, debentures, notes, or other similar instruments;

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(f)            All
indebtedness incurred as the lessee of goods or services under leases, including
Capital Leases, that, in accordance with GAAP, are not reflected on the lessee’s
balance sheet; and

(g)           The
Borrower’s obligations for payment of the negative termination value of any
interest rate swap agreement.

“Independent Inspector”
means Luminate, LLC, a Colorado limited liability company, or such other firm
which will be retained by the Bank, at the Borrower’s sole cost and expense, to
conduct on-site inspections of the work in progress on the Project, and
to issue periodic reports to the Bank as to the progress of construction and
the Borrower’s adherence to the Plans, the Projections, the Schedule of Values
and the Budget Variance Report.  The Bank’s
selection of the Independent Inspector shall be subject to the Borrower’s
approval, which approval will not be unreasonably withheld.

“Interest Period”
means, initially, the period commencing on the date of the Construction Note,
the Operating Note, the Swap Note, the Variable Rate Note, the Long Term
Revolving Note, the Existing Swap Note, the Existing Variable Rate Note, or the
Existing Long Term Revolving Note, as applicable, and ending (i) on the
first (1st) day of the month in which
the one-month anniversary of the Construction Note falls, (ii) on the
first (1st) day of the month in which the one-month
anniversary of the Operating Note falls, (iii) on the first (1st) day of the month in which
the three-month anniversary of the Swap Note falls, (iv) on the
first (1st) day of the
month in which the three-month anniversary of the Variable Rate Note
falls, (v) on the first (1st)
day of the month in which the one-month anniversary of the Long Term
Revolving Note falls, (vi) on the first (1st) day of the month in which the three-month anniversary
of the Existing Swap Note falls, (vii) on the first (1st) day of the month in which the
three-month anniversary of the Existing Variable Rate Note falls, (viii) on the
first (1st) day of the
month in which the one-month anniversary of the Existing Long Term Revolving
Note falls, and thereafter for each respective three-month or one-month period
as the case may be commencing on the first day immediately following the last
day of the immediately preceding Interest Period and ending after the
applicable one-month or three-month period set forth above thereafter, provided
that:

(a)           subject
to clauses (b) and (c) below, for any calendar month, any Interest Period
which would otherwise end on a day which is not a Eurodollar Business Day shall
be extended to the next succeeding Eurodollar Business Day;

(b)           subject to
clause (c) below, any Interest Period which begins on the last Eurodollar
Business Day of a calendar month (or a day for which there is no numerically
corresponding Eurodollar Business Day in the calendar month at the end of such
Interest Period) shall be deemed to have its anniversary date on the last
Eurodollar Business Day of the last calendar month occurring during such
Interest Period; and

(c)           notwithstanding
anything contained herein to the contrary, no Interest Period shall extend
beyond the respective Termination Date for the applicable Note.

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“Internal Revenue Code”
means the Internal Revenue Code of 1986, as amended, modified, supplemented,
restated or replaced from time to time, and the rules, regulations and
published interpretations thereof.

“Letter of Credit”
means one or more letters of credit issued under and pursuant to the Operating
Loan or under the Existing Operating Note by execution and delivery by the
Borrower of the Bank’s standard form promissory note and continuing letter of
credit agreement relating to each such letter of credit, pursuant to the Bank’s
customary policies and in accordance with the terms and provisions of the Bank’s
standardized documents, to be executed and delivered to the Bank at the time of
issuance of each such Letter of Credit.

“LIBOR” shall
mean the London Interbank Offered Rate.

“LIBOR Base Rate”
shall mean, with respect to the applicable Interest Period, (a) the LIBOR
Index Rate for such Interest Period, if such rate is available, or (b) if
the LIBOR Index Rate cannot be determined, the average (rounded upward, if
necessary, to the next higher one one hundredth (1/100) of one percent (1%)) of
the respective rates per annum of interest at which deposits in dollars are
offered to the Bank in the London interbank market by two (2) Eurodollar
dealers of recognized standing, selected by the Bank in its sole discretion, at
such time on the date two (2) Eurodollar Business Days before the first day of
such Interest Period as the Bank in its sole discretion elects, for delivery on
the first day of the applicable Interest Period for a number of days comparable
to the number of days in such Interest Period and in an amount approximately
equal to the principal amount of the Obligations.

“LIBOR Index Rate”
shall mean, with respect to the applicable Interest Period, the rate per annum
(rounded upwards, if necessary, to the next higher one one hundredth (1/100) of
one percent (1%)) for deposits in U.S. Dollars for a period equal to such
Interest Period, which appears on the Bank’s information vendor as of
9:00 a.m. (Omaha, Nebraska time) on the day two (2) Eurodollar Business
Days before the first day of such Interest Period.  The term “the Bank’s information vendor”
means the Bloomberg service or such other vendor chosen by the Bank, in its
sole discretion, for the purpose of displaying the British Bankers’ Association
Interest Settlement Rates for U.S. Dollar Deposits.

“LIBOR Rate”
shall mean, with respect to any Interest Period, the quotient (rounded upwards,
if necessary, to the next higher one one hundredth (1/100) of one percent (1%))
of the (i) LIBOR Base Rate divided by (ii) one (1.00) minus the
applicable LIBOR Reserve Percentage.  The
LIBOR Rate shall be adjusted automatically on and as of the effective date of
any change in the LIBOR Reserve Percentage.

“LIBOR Reserve Percentage”
shall mean for any day that percentage (expressed as a decimal) which is in
effect on such day, as prescribed by the Board of Governors of the Federal
Reserve System (or any successor), for determining the maximum reserve
requirement for a member bank of the Federal Reserve System with respect to “Eurocurrency
Liabilities” (or in respect of any other category of liabilities which includes
deposits by reference to which the interest rate on LIBOR loans is determined
or any category of extensions of credit or other assets which include loans by
a non-United States office of any bank to United States
residents).  The

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LIBOR Rate shall be adjusted automatically on and as
of the effective date of any change in the LIBOR Reserve Percentage.

“LP Agreement”
means that certain Limited Partnership Agreement of the Borrower, dated March
6, 2002, as the same may be amended, supplemented or modified from time to
time.

“Loan Documents”
means this Agreement, each of the Notes, the Mortgage, the Security Agreement,
the Guaranty, each Letter of Credit, each Swap Contract, each of the Existing
Loan Documents, and each other document referred to in Article IV of this
Agreement.

“Long Term Revolving Loan”
has the meaning provided in Section 2.12(c) of this Agreement.

“Long Term Revolving Note”
has the meaning provided in Section 2.12(c) of this Agreement.

“Manager”
means Steve Roe, an Iowa resident.

“Material Contracts” mean the contracts or
agreements entered into by the Borrower or any agent on behalf of the Borrower
relating to the Property, the construction of the Project or the operation of
the ethanol plant following the Completion Date which the Borrower and the Bank
mutually agree are material thereto and are described on Exhibit “E” attached
hereto and incorporated herein by this reference.

“Maximum Rate”
has the meaning provided in Section 8.16 of this Agreement.

“Mortgage” means the Amended, Restated and Expanded Mortgage,
dated the Closing Date, between the Borrower and the Bank in the form of
Exhibit “F” attached hereto and incorporated herein by this reference creating
a first lien on the Property and a security interest in all of the personal
property incorporated therein as a fixture as security for payment of the
Obligations.

“Net Worth”
means total assets less total liabilities of the Borrower and less the
following types of assets: (a) leasehold improvements;
(b) receivables (other than those created by sale of goods) (i) to a
partner and other investments in or amounts due from any partner, employee or
other Affiliate of the Borrower, other than Archer Daniels Midland Company, or
(ii) which, in accordance with GAAP, are considered to be doubtful or
uncollectible in the ordinary course of business; (c) goodwill, patents,
copyrights, mailing lists, trade names, trademarks, servicing rights,
organizational and franchise costs, bond underwriting costs and other like
assets properly classified as intangible; and (d) treasury stock or
treasury partnership units or interests in the Borrower.  Net Worth shall not include any debt due to
the Borrower not acceptable to the Bank in the exercise of the Bank’s
reasonable discretion, but shall include Subordinated Debt.

“Note” or “Notes” means any, or all, as the case may be, promissory
note delivered by the Borrower to the Bank, which shall include, but not be
limited to, the Construction Note, the Operating Note, the Term Notes, the
Existing Term Notes and the Existing Operating Note.

 11
 

“Obligations” means the obligation of the Borrower:

(a)           to pay
the principal of and interest on any of the Notes in accordance with the terms
thereof and to satisfy all of its other liabilities to the Bank, whether
hereunder or otherwise, whether now existing or hereafter incurred, matured or
unmatured, direct or contingent, joint or several, including any extensions,
modifications, renewals thereof and substitutions therefor and including, but
not limited to, any obligations under Letter of Credit agreements;

(b)           to repay
to the Bank all amounts advanced by the Bank hereunder or otherwise incurred
hereunder on behalf of the Borrower, including, but without limitation,
advances for principal or interest payments to prior secured parties,
mortgagees or licensers, or taxes, levies, insurance, rent or repairs to, or
maintenance or storage of, any of the real or personal property securing the
Borrower’s payment and performance of this Agreement; and

(c)           to
reimburse the Bank, on demand, for the Bank’s reasonable and necessary out-of-pocket
expenses and costs, including the reasonable fees and expenses of the Bank’s
legal counsel, in connection with the preparation, administration, amendment,
modification, or enforcement of this Agreement or any of the other Loan
Documents required hereunder, including, without limitation, any proceeding
brought or threatened to enforce payment of any of the Obligations referred to
in the foregoing subparagraphs (a) and (b).

“Operating Loan”
shall have the meaning given such term in the recitals hereto.

“Operating Loan Commitment”
shall have the meaning provided in Section 2.06 of this Agreement.

“Operating Loan Termination
Date” means the earliest to occur of the following: (a) March
31, 2008, or such later date to which the Operating Loan Termination Date has
been extended by written agreement by the Bank, (b) the date the
Obligations are accelerated pursuant to the terms and provisions of this
Agreement or the Operating Note, (c) the date the Bank receives notice in
writing from the Borrower of the Borrower’s election to terminate the Operating
Note as described in Section 2.06 of this Agreement and (d) the date the
Bank receives (i) notice in writing from the Borrower of the Borrower’s
election to terminate this Agreement or (ii) indefeasible payment in full
of the Obligations.

“Operating Note”
means the Operating Note, dated the Closing Date, by the Borrower in favor of
the Bank evidencing the three hundred sixty four (364) day operating credit
facility described in Section 2.06 of this Agreement and in the form as set
forth in Exhibit ”G” attached hereto and incorporated herein by this
reference and as renewed, modified or extended from time to time in accordance
with the terms thereof and hereof.

“Original Facility”
means the design and construction of (i) the Borrower’s ethanol plant completed
on or about June 1, 2003 and (ii) the addition to Borrower’s ethanol plant
completed

 12
 

on or about October 1, 2005, together with all
necessary and appropriate fixtures, equipment, attachments and accessories, as
described in the Original Plans.

“Original Plans”
means the plans and specifications prepared by ICM, Inc. on behalf of the
Design Builder for the Original Facility and identified to this Agreement by
the Design Builder, the Borrower and the Bank.

“Other Project Construction”
means all construction or materials to be provided to the Borrower or performed
on behalf of the Borrower relating to the Expansion Facility or the Property
which are not included in the scope of the work provided for under the
Design/Build Construction Contract.

“Permit” and “Permits” mean, respectively, any license or permit, and all
licenses or permits, in either case, as required under any law, ordinance or
regulation, including the Environmental Requirements, or by any Governmental
Authority and that are a requirement to constructing or operating the facility
on the Property after completion of construction of the Project at its maximum
operational capacity, including without limitation the licenses or permits set
forth in Exhibit “H” attached hereto and incorporated herein by this reference.

“Permitted Liens”
means (i) liens, assignments, or subordinations in favor of the Bank; (ii)
liens, assignments, or subordinations outstanding on the date of this Agreement
and disclosed in advance to the Bank in writing and approved by the Bank,
including those easements and other encumbrances described in the title
insurance commitment provided to the Bank on the Closing Date; (iii) liens for
taxes or assessments or other governmental charges not delinquent or which the
Borrower is contesting in good faith and for which the Borrower has made
adequate reserves; (iv) liens which secure purchase money Indebtedness allowed
under this Agreement or the Loan Documents; (v) liens that are imposed by law
for obligations for labor or materials not overdue for more than 120 days to
the extent and only to the extent Borrower has obtained and posted adequate
bonding to secure the payment thereof and release of such lien within the
period provided under applicable law, such as mechanics’, materialmen’s,
carriers’, landlords’, and warehousemen’s liens, or liens, pledges, or deposits
under workers’ compensation, unemployment insurance, Social Security, or
similar legislation; (vi) liens securing Subordinated Debt; and (vii) liens
created in favor of a hedging account entity.

“Person” means
an individual, partnership, limited liability company, corporation, business
trust, joint stock company, trust, unincorporated association, joint venture,
Governmental Authority, or other entity of whatever nature.

“Phase I Environmental
Report of the Property” means (i) the Phase I Environmental Site
Assessment, dated May 31, 2006, prepared for Little Sioux Corn Processors for
Project No. 27067606 by Terracon Consultants, Inc., and (ii) Phase I
Environmental Site Assessment, dated April 26, 2002, prepared for Little Sioux
Corn Processors, L.P. for Project No. 08027714 by Terracon Consultants, Inc.

“Plans” means
the plans and specifications for construction of the Project, which shall specifically
include the Original Plans and the Expansion Facility Plans.

 13
 

“Post Closing Letter”
shall have the meaning give to such term in Section 8.02 of this Agreement.

“Preliminary Survey”
means the survey provided for in Section 4.01(a)(xiii) hereof.

“Prepayment Fee”
shall have the meaning given such term in Section 2.15 of this Agreement.

“Project” means
the ethanol plant owned and operated by the Borrower (including, but not
limited to, the Original Facility and the Expansion Facility), together with
all necessary and appropriate fixtures, equipment, attachments and accessories,
as described in the Plans, constructed or to be constructed on the Property,
together with the Other Project Construction, such that following completion
thereof the ethanol plant operates at the maximum operational capacity provided
in the Plans.

“Projections”
shall have the meaning given such term in Section 5.09 of this Agreement,
including but not limited to the Sources and Uses of Funds.

“Property” shall
have the meaning given such term in the recitals hereto.

“Schedule of Values”
means the schedule of values and related cash flow projections prepared by the
Design Builder allocating the values under the Design/Build Construction
Contract to the various portions or segments thereof.

“Scheduled Payments”
means payments to be made by, or on behalf of, the Borrower to the Bank
pursuant to the terms and provisions of this Agreement or any of the other Loan
Documents, except for payments made pursuant to the provisions of Section 6.02(c)
of this Agreement.

“Security Agreement”
means the Amended and Restated Security Agreement, dated the Closing Date,
between the Borrower, as debtor, and the Bank, as secured party, creating a
first security interest in all the Borrower’s assets, including general
intangibles, other than the real estate which is the subject of the Mortgage,
securing the Obligations, as the same may be extended, renewed, continued or
otherwise modified with the written consent of the Borrower and the Bank.

“Sources and Uses of Funds”
means the sources and uses of funds included in the updated financial
projections, dated October 3, 2006, as prepared by Gary Grotjohn of the
Borrower, and as amended from time to time by the Borrower with the approval of
the Bank, reflecting the Borrower’s capital and projected sources of income and
periodic expenditure thereof for completion of construction of the Expansion
Facility and operation of the Project, including expenditures which are not
anticipated to be funded from the loans provided for in this Agreement.

“Special Flood Hazard Area”
means the designation of an area by FEMA requiring that the Bank obligate the
Borrower to obtain and maintain flood insurance relating to any property
located therein.

 14
 

“Subcontractor”
means any Person who contracts with the Design Builder or the Borrower or
another contractor of the Borrower to perform any work or supply any of the
materials or equipment necessary to complete the construction of the Project or
the operation thereof following completion of construction.  Subcontractor shall also include any Person
who performs any work or supplies any of the materials or equipment necessary
to complete construction of the Project.

“Subordinated Debt”
means Indebtedness of the Borrower to entities other than the Bank that has
been approved by the Bank in writing and has been subordinated, in form
acceptable to the Bank, to the Obligations, and which specifically includes
that certain promissory note in the amount of Five Hundred Thousand and
No/100ths Dollars ($500,000.00), dated January 29, 2003, executed by the
Borrower in favor of Farmers State Bank of Marcus, Iowa, with a current
outstanding balance of One Hundred Sixty Two Thousand Four Hundred Thirty Nine
and 26/100ths Dollars ($162,439.26).

“Subordination Agreement”
means that certain Subordination Agreement, dated on or about the Closing Date,
among the Borrower, the Bank and Farmers State Bank of Marcus, Iowa, in the
form attached hereto as Exhibit “I” and incorporated herein by this reference,
pursuant to which the Indebtedness of the Borrower to Farmers State Bank of
Marcus, Iowa is subordinated to the Borrower’s Obligations owed to the Bank.

“Subsidiary”
means, as to the Borrower, a corporation or other entity, including a limited
liability company, of which shares of stock or membership or other equity
interests, having ordinary voting power (other than stock or membership or
other equity interests, having such power only by reason of the happening of a
contingency) to elect a majority of the board of directors or managers or
governors of such corporation or other entity are at the time owned, or the
management of which is otherwise controlled, directly or indirectly, through
one or more intermediaries, or both, by the Borrower.

“Substantial Completion”
shall have the meaning provided in the Design/Build Construction Contract.

“Swap Contract”
or “Swap Contracts” means (a) any and
all rate swap transactions, basis swaps, credit derivative transactions,
forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond
price or bond index swaps or options or forward bond or forward bond price or
forward bond index transactions, interest rate options, forward foreign exchange
transactions, cap transactions, floor transactions, collar transactions,
currency swap transactions, cross-currency rate swap transactions,
currency options, spot contracts or any other similar transactions or any
combination of any of the foregoing (including any options to enter into any of
the foregoing), whether or not any such transaction is governed by or subject
to any master agreement and (b) any and all transactions of any kind, and
the related confirmations, which are subject to the terms and conditions of, or
governed by, any form of master agreement published by the International Swaps
and Derivatives Association, Inc.; provided, however, the term “Swap Contract”
shall not, for the purposes of this Agreement, include commodity hedging or
commodity risk management contracts.  “Commodity”
includes ethanol, grain, natural gas and other traded commodities.

 15

“Swap Loan” has
the meaning provided in Section 2.12(a) of this Agreement.

“Swap Note” has
the meaning provided in Section 2.12(a) of this Agreement.

“Term Loan”
shall mean an amount of up to Eighty Two Million Two Hundred Seventy Eight
Thousand Two Hundred Twenty Six Dollars and Ninety Four Cents ($82,278,226.94)
loaned, or to be loaned, subject to the terms and provisions of this Agreement
and the Term Notes, to the Borrower under the terms and conditions of this
Agreement to provide the Borrower funds to pay the Construction Loan in full
and which shall include the Swap Loan, the Variable Rate Loan, and the Long
Term Revolving Loan, as further defined and described in Section 2.12 of this
Agreement.

“Term Loan Termination Date”
means the earliest to occur of the following: (a) the fifth anniversary of
the Construction Loan Termination Date, (b) the date the Obligations are
accelerated pursuant to this Agreement or the Term Notes and (c) the date
the Bank has received (i) notice in writing from the Borrower of the
Borrower’s election to terminate this Agreement or (ii) indefeasible
payment in full of the Obligations.

“Term Notes”
means those promissory notes of the Borrower to the Bank which evidences
permanent financing to pay the Construction Note as described and further
defined in Article II of this Agreement, and all renewals, modifications
or extensions thereof and which shall include the Swap Note, the Variable Rate
Note and the Long Term Revolving Note.

“Title Company”
means Dakota Homestead Title Insurance Company, a South Dakota corporation.

“Total Expansion Facility
Costs” means an amount equal to Seventy Three Million and No/100ths
Dollars ($73,000,000.00).

“USDA” means the
United States Department of Agriculture.

“USDA CCC Bio-Energy
Accounts Receivable” shall mean cash incentives offered by the USDA
to the Borrower after the Borrower has commenced operations and provided that
the Borrower has complied with other applicable requirements, terms and
conditions of the USDA.

“Variable Rate Loan”
has the meaning provided in Section 2.12(b) of this Agreement.

“Variable Rate Note”
has the meaning provided in Section 2.12(b) of this Agreement.

“Working Capital”
means current assets (including any amount available under the Long Term
Revolving Loan at the time of determination) of the Borrower, less (i)
investments by the Borrower in or other amounts due to the Borrower from any
partner, employee or other Affiliate of the Borrower, other than Archer Daniels
Midland Company, (ii) prepayments made by the Borrower under this Agreement and
(iii) current liabilities of the Borrower.

Section 1.02.  Interpretation.  The definitions in Section 1.01 of this
Agreement shall apply equally to both the singular and plural forms of the
terms defined.  Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and
neuter forms.

 16
 

The words “include”, “includes” and “including” shall be deemed to be
followed by the phrase “without limitation.” 
All references herein to Articles, Sections, Exhibits and Schedules
shall be deemed references to Articles and Sections of, and Exhibits and
Schedules to, this Agreement unless the context shall otherwise require.  All terms of an accounting or financial
nature not specifically defined herein shall be construed in accordance with
GAAP consistent with those applied in the preparation of the financial
statements referred to in Sections 5.07 and 6.01 of this Agreement, and all
financial data submitted pursuant to this Agreement shall be prepared in accordance
with such principles.

ARTICLE II

AMOUNT AND TERMS OF THE LOANS

Section 2.01.  Existing Financing.

(a)           Borrower and Bank acknowledge and
agree that, under the Existing Loan Agreement, Borrower’s Obligations currently
include (i) a fixed rate term loan evidenced by that certain Term Note 2, dated
June 23, 2003, executed by Borrower payable to the order of the Bank, which has
a current principal balance of Ten Million Five Hundred Seventy Two Thousand
Two Hundred Thirty Three Dollars and Ninety Two Cents ($10,572,233.92) and is
attached hereto as Exhibit “J” and incorporated herein by this reference (the “Existing
Swap Note”), (ii) a variable rate term loan evidenced by that certain Term Note
3, dated June 23, 2003, executed by Borrower payable to the order of the Bank,
which has a current principal balance of Four Million Two Hundred Seventy Eight
Thousand Two Hundred Twenty Six  Dollars
and Ninety Four Cents ($4,278,226.94) and is attached hereto as Exhibit “K” and
incorporated herein by this reference (the “Existing Variable Rate Note”),
(iii) a long term revolving loan evidenced by that certain Term Note 4, dated
June 23, 2003, executed by Borrower payable to the order of the Bank, which has
an available commitment of Five Million and No/100ths Dollars ($5,000,000.00)
and is attached hereto as Exhibit “L” and incorporated herein by this reference
(the “Existing Long Term Revolving Note”), (iv) an operating line and letter of
credit facility evidenced by that certain Revolving Promissory Note, dated as
of March 31, 2006, executed by Borrower payable to the order of the Bank, which
has an available commitment of Three Million Five Hundred Thousand and
No/100ths Dollars ($3,500,000.00) and is attached hereto as Exhibit “M” and
incorporated herein by this reference (the “Existing Operating Note”), and (v)
a business credit card loan which has an available commitment of One Hundred
Thousand Dollars ($100,000.00) (the “Business Credit Card Loan”).

(b)           During the period beginning on the
date of execution of this Agreement and ending on the Existing Swap Loan
Termination Date, the terms and provisions of the Existing Swap Note shall
remain in full force and effect and the interest rate, interest period,
repayment and other terms and provisions thereof shall likewise remain in full
force and effect.

(c)           During the period beginning on the
date of execution of this Agreement and continuing thereafter until terminated
according to its terms, the terms and provisions

 17
 

of the Business Credit
Card Loan shall remain in full force and effect and the interest rate, interest
period, repayment and other terms and provisions thereof shall likewise remain
in full force and effect.

(d)           During the period beginning on the
date of execution of this Agreement and ending on the Construction Loan
Termination Date, the terms and provisions of the Existing Variable Rate Note
and the Existing Long Term Revolving Note shall remain in full force and effect
and the interest period, repayment and other terms and provisions thereof shall
likewise remain in full force and effect until replaced in accordance with the
terms and provisions of this Agreement; provided, however, that during such
time, interest shall accrue on the Existing Variable Rate Note and the Existing
Long Term Revolving Note at a variable rate equal to the applicable LIBOR Rate
set forth in such Notes, plus (a) two hundred eighty (280) basis points prior
to acceleration or maturity, and (b) an additional six hundred (600) basis
points after maturity, whether by acceleration or otherwise.

(e)           On the date of execution of this
Agreement, the entire principal amount and all accrued and unpaid interest
under the Existing Operating Note shall be refinanced and replaced in its
entirety by the Operating Note described in Section 2.08 of this Agreement.

(f)            On the Construction Loan Termination
Date and subject to the conditions set forth in Section 2.12 of this Agreement,
the entire principal amount and all accrued and unpaid interest under the
Existing Variable Rate Note, if any, shall be added to the principal balance of
the Construction Note and converted to and replaced by the Term Loans described
in Section 2.12 of this Agreement.

(g)           On the Construction Loan Termination
Date and subject to the conditions set forth in Section 2.12 of this Agreement,
the Existing Long Term Revolving Note shall be combined with, and replaced in
its entirety by, the Long Term Revolving Note described in Section 2.12 of this
Agreement.

Section 2.02.  Construction Loan.  The Bank agrees, on the terms and subject to
the conditions set forth in this Agreement, to make, from time to time during
the period beginning on the date of execution of this Agreement and ending on
the Construction Loan Termination Date, disbursements to the Borrower in an
aggregate principal amount not to exceed Seventy Three Million and No/100ths
Dollars ($73,000,000.00) (the “Construction Loan Commitment”).  The Borrower may borrow, repay without
penalty or premium and reborrow hereunder, from the Closing Date until the
Construction Loan Termination Date, either the full amount of the Construction
Loan Commitment or any lesser sum thereof. 
If, prior to the Completion Date, there is paid to the Bank a third-party
payment (a grant payment, for example) that is applied to the Construction Loan,
the Bank may, in its sole discretion, reduce the amount to be advanced to a
lesser sum, which the Bank reasonably determines is necessary to complete the
Expansion Facility.  Approved
construction costs, for purposes hereof, are costs actually incurred in
connection with the construction of the Expansion Facility.  Such approved construction costs shall
include, but shall not be limited to, the costs of permits, licenses, labor,
supplies, materials, services, equipment, insurance premiums, real estate taxes
and interest on disbursements and

 18
 

operating costs of the ethanol plant. 
Approved construction costs shall not include (i) the demobilization or
other costs of the Design Builder in connection with a termination of the
Design/Build Construction Contract, and any similar provision of any Other
Project Construction agreement, other than upon completion of the Project, or
(ii) costs associated with the payment of consequential damages and other costs
resulting from any breach of the License Agreement, dated as of September 20,
2006, by and between the Borrower and ICM, Inc. a Kansas corporation.

Section 2.03.  Construction Note.  The obligation of the Borrower to repay the
Construction Loan shall be evidenced by the Construction Note.

Section 2.04.  Interest on Construction Note.  Interest on the Construction Note shall be
payable at the rate provided herein only on such portions of the Construction
Loan proceeds as actually have been disbursed by the Bank pursuant to this
Agreement.  Interest on the Construction
Note shall accrue at the one (1) month LIBOR Rate plus (a) three hundred
ten (310) basis points prior to acceleration or maturity, and (b) an
additional six hundred (600) basis points after maturity, whether by
acceleration or otherwise.

Section 2.05.  Repayment of Construction Note.  Interest only shall be due and payable
quarterly on the Construction Note.  All
outstanding principal and accrued but unpaid interest on the Construction Note
shall be due and payable on the Construction Loan Termination Date pursuant to,
subject to the terms and provisions thereof, Section 2.12 of this Agreement.

Section 2.06.  Operating Loan.  The Bank agrees, on the terms and subject to
the conditions set forth in this Agreement, to lend up to Five Million and
No/100ths Dollars ($5,000,000.00) to the Borrower relating to the Operating
Loan, which shall provide both operating line of credit financing and Letter of
Credit financing under the same financing facility and will refinance and
replace the Existing Operating Note.  The
Bank will credit proceeds of the
Operating Loan to the Borrower’s deposit account with the Bank, bearing account
number 22674210.  Subject to the terms of
this Agreement and the Operating Note, the Bank will lend the Borrower, from
time to time until the Operating Loan Termination Date such sums as the
Borrower may request by reasonable same-day notice to the Bank, received
by the Bank not later than 11:00 a.m. (Omaha, Nebraska time) of such day,
but which shall not exceed in the aggregate principal amount at any one time
outstanding of Five Million and No/100ths Dollars ($5,000,000.00) less (i) the
aggregate amounts of any sums previously disbursed to the Borrower under the
Operating Loan by the Bank at the request of, and for the account of, the Borrower
and (ii) the aggregate amount of any outstanding Letters of Credit (the “Operating
Loan Commitment”).  The Borrower may
borrow, repay, and reborrow under the Operating Loan, without penalty or
premium, from the Closing Date until the Operating Loan Termination Date,
either the full amount of the Operating Loan Commitment or any lesser sum.  It is the intention of the parties that the
outstanding balance of the Operating Loan shall not exceed the Borrowing Base,
and if at any time said balance exceeds the Borrowing Base, the Borrower shall
forthwith pay the Bank sufficient funds to reduce the balance of the Operating
Loan until it is in compliance with this requirement.  The Borrower may elect to terminate the Operating
Note at any time upon written notice to the Bank.  In the event the Borrower elects to terminate
the Operating Note, the aggregate principal
amount of the Operating Note outstanding, together with

 19
 

any accrued and
unpaid interest thereon, shall be due and payable to the Bank on the date of
such election, if not sooner paid.

Section 2.07.  Letters of Credit.  As part of, and not distinct from, the
Operating Loan, Bank will issue, or has
issued prior to the date hereof under the Existing Operating Note, Letters of
Credit at Borrower’s request, on Borrower’s account, pursuant to the Bank’s
customary policies and in accordance with the terms and provisions of the Bank’s
standardized documents, to be executed and delivered to the Bank at the time of
issuance of each such Letter of Credit, in an aggregate amount outstanding not
to exceed One Million Dollars ($1,000,000.00) and provided that unless
otherwise agreed upon by the Bank, no Letter of Credit shall have an expiration
date more than one (1) year from the date of issuance.  The Bank may elect to not renew any Letter of
Credit in its sole discretion.  The Bank
and Borrower acknowledge and agree that the amount available to Borrower under
the Letter of Credit Facility shall be permanently reduced by the amount of any
and all Letters of Credit issued by the Bank to Borrower, whether issued prior
or subsequent to, the date of this Agreement, unless the Bank expressly agrees
in writing to the subsequent issuance of a Letter of Credit exceeding such
reduced amount.

Section 2.08.  Operating Note.  The Operating Loan shall be evidenced by the
Operating Note which shall have as its stated maturity date the Operating Loan
Termination Date.

Section 2.09.  Interest on Operating Note.  Subject to the adjustments set forth in
Section 2.11 of this Agreement, interest on the Operating Note shall accrue at
the one (1) month LIBOR Rate plus (a) two hundred eighty (280) basis
points, prior to acceleration or maturity, and (b) an additional six hundred
(600) basis points after maturity, whether by acceleration or otherwise.

Section 2.10.  Repayment of Operating Note.  Interest only shall be due and payable
quarterly on the Operating Note.  All
outstanding principal and accrued but unpaid interest on the Operating Note
shall be due and payable on the Operating Loan Termination Date, if not sooner
paid.

Section 2.11.  Incentive Pricing.  Commencing with the three (3) month period
that begins on the first (1st)
day of the third (3rd)
calendar month following the Construction Loan Termination Date, and as of the
first (1st) day of
each three (3) month period thereafter (each such three month period, an “Adjustment
Period”), the interest rate applicable to the Variable Rate Loan, the Long Term
Revolving Loan and the Operating Loan shall be subject to adjustment as follows:

	
  If, as of the last
  Eurodollar Business Day of any Adjustment Period, Borrower’s Debt-to-Net
  Worth Ratio is:

  	
   

  	
   

  	
  then the interest rate applicable to the Variable
  Rate Loan, the Long Term Revolving Loan and the Operating Loan for the
  subsequent Interest Period shall be:

  
	
   

  	
   

  	
   

  	
   

  
	
  (i)  greater
  than or equal to 1.15:1.00

  	
   

  	
   

  	
  equal to the LIBOR Rate plus three hundred (300)
  basis points

  

 

 20
 

 

	
  (ii) less than
  1.15:1.00 but greater than or equal to 1.00 to 1.00

  	
   

  	
   

  	
  equal to the LIBOR Rate plus two hundred eighty five
  (285) basis points

  
	
   

  	
   

  	
   

  	
   

  
	
  (iii) less
  than 1.00 to 1.00 but greater than or equal to .75 to 1.00

  	
   

  	
   

  	
  equal to the LIBOR Rate plus two hundred seventy
  (270) basis points

  
	
   

  	
   

  	
   

  	
   

  
	
   (iv) less than .75 to 1.00 but greater
  than or equal to 0.50:1.00

  	
   

  	
   

  	
  equal to the LIBOR Rate plus two hundred fifty five
  (255) basis points

  
	
   

  	
   

  	
   

  	
   

  
	
  and/or

  (v) less than 0.50:1.00

  	
   

  	
   

  	
  equal to the LIBOR Rate plus two hundred forty (240)
  basis points

  

 

(b)  Notwithstanding
the foregoing, in the event any of the Notes relating thereto mature, whether
by acceleration or otherwise, such incentive pricing shall not be applicable
thereto and the interest rates provided for therein at maturity shall be
applicable.

For any calendar month,
any Adjustment Period which would otherwise commence or end on a day which is
not a Eurodollar Business Day shall be extended to the next succeeding
Eurodollar Business Day. Any such adjustment under this Section shall be
applied and take effect for the immediately succeeding Interest Period.

Section
2.12.  Term Loans and Term Notes.  On the Construction Loan Termination Date and
so long as (i) Bank is lender, (ii) all of the terms, conditions and covenants
of this Agreement have been complied with and (iii) there has not been at any
time an Event of Default, the entire principal amount and all accrued and
unpaid interest under the Construction
Note shall be converted to and replaced by the following Term Loans and
execution and delivery by the Borrower of the following Term Notes to the Bank:

(a)           Swap Loan.  A loan in the amount of Thirty Six Million
Five Hundred and No/100ths Dollars ($36,500,000.00) (the “Swap Loan”) evidenced
by the execution by the Borrower and delivery to the Bank of a promissory note
dated as of the Construction Loan Termination Date and subject to the terms and
conditions of this Agreement, in the principal amount of Thirty Six Million
Five Hundred and No/100ths Dollars ($36,500,000.00), having a maturity date
that is the date of the fifth anniversary of the Construction Loan Termination
Date, and in the form of Exhibit ”N” attached hereto and incorporated
herein by this reference (the “Swap Note”);

(b)           Variable Rate Loan.  A loan in the maximum amount of Thirty Five
Million Seven Hundred Seventy Eight Thousand Two Hundred Twenty Six Dollars and
Ninety Four Cents ($35,778,226.94), representing the funded Construction Note,
plus the amount outstanding on the Existing Variable Rate Note, less the Swap
Note, and less Five Million and No/100ths Dollars ($5,000,000.00) of the Long
Term Revolving Loan

 21
 

(the “Variable Rate Loan”)
evidenced by the execution by the Borrower and delivery to the Bank of a
promissory note dated as of the Construction Loan Termination Date and subject
to the terms and conditions of this Agreement, in the principal amount of
Thirty Five Million Seven Hundred Seventy Eight Thousand Two Hundred Twenty Six
Dollars and Ninety Four Cents ($35,778,226.94), having a maturity date that is
the date of the fifth anniversary of the Construction Loan Termination Date,
and in the form of Exhibit ”O” attached hereto and incorporated herein by
this reference (the “Variable Rate Note”); and

(c)           Long Term Revolving Loan.  A loan in the amount of Ten Million and
No/100ths Dollars ($10,000,000.00) (the “Long Term Revolving Loan”) evidenced
by the execution and delivery of a promissory note dated as of the Construction
Loan Termination Date and subject to the terms and conditions of this
Agreement, in the principal amount of Ten Million and No/100ths Dollars
($10,000,000.00), having a maturity date that is the date of the fifth
anniversary of the Construction Loan Termination Date, and in the form of
Exhibit ”P” attached hereto and incorporated herein by this reference (the
“Long Term Revolving Note”).  The amounts
outstanding under the Long Term Revolving Loan shall consist of (i) Five
Million and No/100ths Dollars ($5,000,000.00) converted from the Construction
Loan on the Construction Loan Termination Date, and (ii) amounts outstanding
under the Existing Long Term Revolving Note on the Construction Loan
Termination Date.  The Borrower may
borrow, repay and reborrow under the Long Term Revolving Loan, without penalty
or premium, from the Construction Loan Termination Date until the Term Loan
Termination Date, either the full amount of the Long Term Revolving Loan or any
lesser sum.  Following repayment in full
of the Variable Rate Note, when regularly quarterly principal payments are
applied to the Long Term Revolving Note pursuant to Section 2.14(c) of this
Agreement, the principal amount available to be borrowed under the Long Term
Revolving Note will be correspondingly reduced, so that the maximum amount outstanding
under the Long Term Revolving Note will decrease accordingly.

Section 2.13.  Interest on Term Notes.  Interest on the Term Notes shall accrue at
the following rates:

(a)           Swap Note.  At all times for the Swap Note, interest
shall accrue at a variable rate equal to the three (3) month LIBOR Rate, in
effect from time to time, plus (a) two hundred sixty (260) basis points prior
to acceleration or maturity, and (b) an additional six hundred (600) basis
points after maturity, whether by acceleration or otherwise.

(b)           Variable Rate Note.  Subject to the adjustments set forth in
Section 2.11 of this Agreement, interest on the Variable Rate Note shall accrue
at a variable rate equal to the three (3) month LIBOR Rate, plus (a) three
hundred (300) basis points prior to acceleration or maturity, and (b) an
additional six hundred (600) basis points after maturity, whether by
acceleration or otherwise.

(c)           Long Term Revolving Note.  Subject to the adjustments set forth in
Section 2.11 of this Agreement, interest on the Long Term Revolving Note shall
accrue at a

 22
 

variable rate equal to
the one (1) month LIBOR Rate, in effect from time to time, plus (a) three
hundred (300) basis points prior to acceleration or maturity, and (b) an
additional six hundred (600) basis points after maturity, whether by
acceleration or otherwise.

Section
2.14.  Repayment of Term Notes.  The Term Notes shall be repaid as follows:

(a)           On the first (1st) day of every third (3rd) month,
commencing on the date that is the first to occur of (i) March 1, (ii) June 1,
(iii) September 1 or (iv) December 1, immediately following the Construction
Loan Termination Date, the Borrower shall pay to the Bank the scheduled
principal payment shown in Schedule I to this Agreement, attached hereto
and incorporated herein by this reference, plus accrued interest on the Swap
Note.

(b)           On the first (1st) day of every third (3rd) month,
commencing on the date that is the first to occur of (i) March 1, (ii) June 1,
(iii) September 1 or (iv) December 1, immediately following the Construction
Loan Termination Date, the Borrower shall pay the sum of One Million Three
Hundred Sixty Two Thousand Four Hundred Twenty Eight Dollars and Sixty Six
Cents ($1,362,428.66) to the Bank, which shall be allocated as follows: (i) first
to accrued and unpaid interest on the Long Term Revolving Note, (ii) next
to accrued and unpaid interest on the Variable Rate Note, and (iii) next
to principal on the Variable Rate Note.

(c)           After the
Variable Rate Note has been fully paid, such quarterly payments shall be
allocated first to accrued and
unpaid interest on the Long Term Revolving Note, and thence to principal on
such Note, with reductions in the availability thereof as provided in Section
2.12 (c) above.

(d)           Notwithstanding
the foregoing, all unpaid principal and accrued and unpaid interest for all
Term Notes shall be due and payable on the Term Loan Termination Date, if not
sooner paid.

Section 2.15.  Payments and Prepayments for All Obligations.  All
principal, interest and fees due under this Agreement, the Notes and any of the
Loan Documents shall be paid in immediately available funds as contracted in
this Agreement and no later than the payment due dates set forth in the Notes
or this Agreement (and, with regards to fees, the due dates set forth in the
periodic statements mailed to the Borrower by the Bank).  Should a payment come due on a day other than
a Banking Day, the payment shall be made no later than the immediately
succeeding Banking Day and interest shall continue to accrue during the
extended period until paid.

On the occasion of any prepayment of all or
substantially all of the outstanding Obligations by the Borrower as a result of
refinancing with a lender other than the Bank, the Borrower will pay to the
Bank a prepayment fee calculated as follows: If the prepayment occurs prior to
the Construction Loan Termination Date 
or within the first three years of the term of the Term Loan, the
Borrower shall pay a fee of one percent (1%) of the amount of such prepayment,
including principal, interest and other amounts due and payable to the Bank
pursuant to the terms

 23
 

and provisions of this Agreement, any of the Notes and
any of the Loan Documents (the “Prepayment Fee”).

The Borrower also agrees to pay, at the time of any
such prepayment of the Construction Note or any Term Note other than the Long
Term Revolving Note, as part of, and included in the determination of the total
amount of the Prepayment Fee, any additional amounts as may be provided in the
Notes evidencing the Obligations so prepaid as compensation to the Bank for
prepayment of such Notes evidencing fixed interest rates, including, but not
limited to, any fees or costs incurred by the Bank as a result of the
termination or breakage of any Swap Contracts to which the Borrower is a party
in relation to the Swap Loan.

Section
2.16.  Fees.

(a)           At the times set forth therein, the
Borrower shall pay to the Bank the fees described in the Fee Letter.

(b)           The Borrower agrees to pay the Bank
an unused commitment fee equal to twenty five (25) basis points of the unused
portion of the Long Term Revolving Note and the Operating Note, calculated
daily and payable on a quarterly basis in arrears; provided, however, the
unused commitment fee on the Long Term Revolving Note shall not apply prior to
the Construction Loan Termination Date and shall be payable by the Borrower
only for the period of time after the Construction Loan Termination Date.

(c)           The Borrower agrees to pay the Bank
an unused commitment fee equal to twenty five (25) basis points of the unused
portion of the Existing Long Term Revolving Note, calculated daily and payable
on a quarterly basis in arrears.

(d)           Upon issuance of any Letter of
Credit, the Borrower shall pay the Bank (i) a commitment fee equal to a rate of
one and three quarters percent (1.75%) per annum on the stated amount of such
Letter of Credit, and (ii) the Bank fees for issuance of such Letter of Credit
according to the Bank’s International Trade Services Fee Schedule in effect (a
copy of which shall be provided to the Borrower) at the time of the issuance of
the Letter of Credit.  Unless otherwise
provided in the Bank’s standard form promissory note or continuing letter of
credit agreement relating to such Letter of Credit, all fees relating to each
Letter of Credit shall be due and payable quarterly to the Bank.

Section 2.17.  Reimbursement of Bank or Payment by Borrower.  The Borrower shall pay all costs associated
with the negotiation and documentation of the transactions provided for herein
and the closing of the Loan and related in any manner to the time period prior
to the indefeasible payment in full by the Borrower of all of the Obligations
and termination of all commitments of the Bank under this Agreement and the
Loan Documents, including, but not limited to, title, survey, environmental and
appraisal reports, costs of the Title Company, Disbursing Agent, Independent
Inspector, mortgage and/or deed of trust fees and taxes, the Bank’s legal fees,
costs, fees and any expenses or charges relating to a payment of all or a
portion of the amounts due from Borrower prior to the time the same become due
under or pursuant to the terms of any Loan Documents, and other reasonable
expenses incurred by the Bank relating to the transactions described in this
Agreement.

 24
 

Section 2.18.  Appraisal.  If the Bank is required by any government
entity with regulatory authority over the Bank to obtain a real estate
appraisal, the Bank will obtain, at the Borrower’s sole expense, an appraisal
of the Expansion Facility and that portion of the Property on which such
Expansion Facility is to be constructed, providing values obtained by use of
the cost approach, the income approach and the replacement cost approach.  If such appraisal shows that the outstanding
Construction Loan amount at that time exceeds the value of the Project as
determined by the appraisal, using the replacement cost approach, then the
Borrower shall, within thirty (30) days of receipt of written notice by
the Bank and without penalty or premium, pay the difference between the
outstanding Construction Loan amount and the appraised value amount of the
Project as determined by such appraisal, and no further advances shall be made
on the Construction Loan thereafter until such time as the appraised value of
the Project exceeds the Construction Loan amount.

ARTICLE
III

DISBURSEMENT
PROCEDURES

Section 3.01.  Submission of Draw Requests.  Whenever the Borrower desires a disbursement
under the Construction Loan, which at all times shall be pursuant to the
Disbursement Agreement and shall be no more often than three (3) times a month,
unless the Bank agrees otherwise, the Borrower shall submit to the Bank a Draw
Request, duly executed on behalf of the Borrower, setting forth the information
requested therein.  Each Draw Request
shall be delivered to the Bank at least seven (7) days before the date the
disbursement is desired.

Section 3.02.  Amount of Draw Request.  Each Draw Request shall be limited to amounts
equal to (a) the total of approved construction costs actually incurred
and paid or owing by the Borrower to the date of such Draw Request for work
performed, materials, or equipment incorporated in the Expansion Facility as
described in the Expansion Facility Plans, plus (b) the cost of materials
or equipment not incorporated in the Expansion Facility but delivered to and
suitably stored at the Expansion Facility site, plus (c) prepayments for
materials or equipment for the Expansion Facility when prepayment is required
by the manufacturer or supplier or when such prepayment results in a material
financial benefit to Borrower; less (d) prior disbursements under this
Agreement for such approved construction costs from the Construction Loan or
the Borrower’s equity for such approved construction costs and less (e) any retainage
permitted to be withheld by the Borrower in connection with such Draw Request
pursuant to the Design/Build Construction Contract and all other contracts for
Other Project Construction. 
Notwithstanding anything herein to the contrary, no disbursements for
materials stored at the Expansion Facility site will be made by the Bank unless
the Borrower shall advise the Bank of its intention to store materials prior to
their delivery, and provide suitable security for such storage.

Section
3.03.  Other Documents.  At the time of submission of each Draw
Request, the Borrower shall submit or cause to be submitted to the Bank the
following:

(a)           A written conditional general lien
waiver, effective to waive any lien arising under the laws of the State of
Iowa, from the Design Builder, to be effective as of the date payment is made
to the Design Builder for the amount of approved costs which will be paid for
by such Draw Request; and

 25
 

(b)           A written final general lien waiver,
effective to waive any lien arising under the laws of the State of Iowa, from
each of Design Builder’s Subcontractors relating to the Design/Build
Construction Contract for work done and materials supplied for each contract
value in excess of Five Thousand and No/100ths Dollars ($5,000.00), effective
the date of the last payment made by the Design Builder to such Subcontractors;
and

(c)           A written conditional general lien
waiver, effective to waive any lien arising under the laws of the State of
Iowa, from each Person providing services or materials to Borrower relating to
the Other Project Construction for work done and materials supplied, in each
case, of a contract value in excess of Five Thousand and No/100ths Dollars
($5,000.00), by them, to be effective as of the date payment is received by such
Person for the amount of approved costs which will be paid for by such Draw
Request; and

(d)           A written final general lien waiver,
effective to waive any lien arising under the laws of the State of Iowa,  from each Person providing services or
materials to Borrower relating to the Other Project Construction for work done
and materials supplied, in each case, of a contract value in excess of Five
Thousand and No/100ths Dollars ($5,000.00), effective as of the date final
payment is made to such Person; and

(e)           A document from the Borrower and, if
applicable, the Independent Inspector, requesting
and/or approving the amount of the approved construction costs,
conformance thereof with the Schedule of Values and the Budget Variance Report,
and the payment of the relevant Draw Request; and

(f)            Invoices from the Borrower, Design
Builder, and from each Person providing services or materials to Borrower
relating to the Other Project Construction, as applicable, and such other
supporting evidence as may be reasonably requested by the Bank to substantiate
all payments which are to be made out of the relevant Draw Request and/or to
substantiate all payments then made with respect to the Expansion Facility and
conformance of the Draw Request with the Schedule of Values and the Budget
Variance Report.

Section 3.04.  Project Cost Overruns.  The Borrower agrees that all costs incurred
by the Borrower relating to the Expansion Facility in excess of the Total
Expansion Facility Costs shall be paid solely by the Borrower and the Borrower
shall immediately deliver additional funds to the Bank to fund any and all
costs of the Expansion Facility in excess of the Total Expansion Facility Costs
upon receipt of written request from the Bank relating thereto.  Notwithstanding the foregoing, Borrower shall
be entitled to apply any previously achieved savings in any completed category
of the Expansion Facility budget to pay for any such cost overruns.  In addition, Borrower may from time to time request
that the contingency fund line item in the Expansion Facility budget be
reallocated to pay needed costs of the Expansion Facility.  Such requests shall be subject to Bank’s
approval in its reasonable discretion, which shall not be unreasonably
withheld.

 26
 

Section 3.05.  Making Disbursements.  Provided that on the date a Draw Request is
received by the Bank (a) the Borrower has performed all of its agreements
and complied with all requirements of this Agreement, and each of the Loan
Documents, to be performed or complied with by the Borrower, including, but not
limited to, satisfaction of all applicable conditions precedent contained in
Article IV of this Agreement, and (b) if required by the Bank, the
Bank has received a current report from the Independent Inspector (i) documenting
material compliance with the Expansion Facility Plans for those portions of the
Expansion Facility indicated as completed in the Draw Request, (ii) confirming
conformance of the Draw Request to the Schedule of Values and the Budget
Variance Report, and (iii) otherwise confirming the acceptability of the
Expansion Facility work represented by the Draw Request, (c) the Bank has
received the approval of the Draw Request by the Disbursing Agent and
confirmation of compliance thereof with the terms and provisions of the Disbursement
Agreement, and (d) the Bank has approved the Draw Request, the Bank shall pay
to the Borrower the amount of the requested disbursement (less any required
retainage and less amounts payable and advanced by Bank to itself).  Each disbursement disbursed to the Disbursing
Agent under the Construction Loan shall bear interest at the rate provided in
the Construction Note evidencing the disbursement from the date such
disbursement is so disbursed to the Borrower or deposited into the Borrower’s
account.

Section 3.06.  Disbursements Without Receipt of Draw Request.  Notwithstanding anything herein to the
contrary, the Bank shall have the irrevocable right at any time and from time
to time to apply funds which it agrees to disburse hereunder to pay interest on
the Construction Note as and when such interest becomes due, and to pay any and
all of the expenses of the Bank related to the Expansion Facility, the
Construction Loan or as otherwise provided in this Agreement, all without
receipt of a Draw Request.

Section 3.07.  Miscellaneous Procedures.  The Bank may establish reasonable additional
procedures regarding disbursements and Draw Requests as are reasonable to
assure the proceeds of the Construction Loan are paid only to those Persons
entitled to the same, and that the liens securing the Obligations are in all
cases first and paramount liens on the Property and all other assets of the
Borrower, except to the extent, and solely to the extent, provided for herein
to the contrary.  Additionally, the Bank
may establish reasonable additional procedures regarding disbursements under
and pursuant to the Term Notes, the Operating Note, or the Existing Term Notes
to assure compliance by the Borrower with the terms and provisions of this
Agreement, the Loan Documents and the respective Term Notes, Operating Note or
Existing Term Notes, as the case may be.

Section 3.08.  Appointment of Independent Inspector.  No Draw Request shall be honored after
commencement of construction unless and until the Borrower has consented to the
Bank’s appointment of an Independent Inspector.

ARTICLE
IV

CONDITIONS
OF LENDING

Section 4.01.        Conditions Precedent to Initial
Disbursement under the Construction Loan.  The obligation of the Bank to make its
initial disbursement under the Construction Loan,

 27
 

excluding any Letter of Credit issued prior to the date hereof or
disbursements made prior to the date hereof under the Existing Loan Agreement,
is subject to the satisfaction of the following conditions, unless waived or
extended in writing by the Bank:

(a)           The Bank shall have received all of
the following, each dated (unless otherwise indicated) the date hereof, in form
and substance satisfactory to the Bank:

(i)            This Agreement, duly executed on
behalf of the Borrower.

(ii)           The Construction Note, duly executed
on behalf of the Borrower.

(iii)          The Mortgage, duly executed on behalf
of the Borrower and delivered to the Title Company for filing of record.

(iv)          The Security Agreement, duly executed
by the Borrower, together with (i) acknowledgment copies of the Financing
Statements (UCC-1) duly filed under the Uniform Commercial Code of all
jurisdictions necessary or, in the opinion of the Bank, desirable to perfect
the security interest created by the Security Agreement; and
(ii) certified copies of Requests for Copies or Information (Form UCC-11)
identifying all of the financing statements on file with respect to the
Borrower in all jurisdictions referred to under (i), including the Financing
Statement filed by the Bank against the Borrower, indicating that no person or
entity claims an interest in any of the collateral “Property” (as such term is
defined in the Security Agreement) except for the Bank.

(v)           The filing of a financing statement
or statements sufficient when filed to perfect the security interests granted
under the Mortgage, the Assignment of Rents and Leases, the Security Agreement,
and the Assignment of Design/Build Construction Contract, to the extent such
security interests are capable of being perfected by filing.

(vi)          Certified (as of the date of this
Agreement) copies of all company actions taken by the Borrower, including
resolutions of the Board of Directors of the General Partner, authorizing the
execution, delivery and performance of the Loan Documents to which the Borrower
is a party and each other document to be delivered by the Borrower pursuant to
this Agreement.

(vii)         A certificate (dated as of the date of
this Agreement) of an officer of the General Partner of the Borrower certifying
the names and true signatures of the Authorized Persons of the Borrower
authorized to (i) sign the Loan Documents to which it is a party and the other
documents to be delivered by the Borrower under this Agreement and (ii) perform
all of Borrower’s obligations under such documents in accordance with their
terms.

(viii)        A favorable written legal opinion of
counsel for the Borrower, in substantially the form of Exhibit ”Q”
attached hereto and incorporated herein by reference, addressed to the Bank.

 28
 

(ix)           The Assignment of Rents and Leases,
duly executed on behalf of the Borrower.

(x)            Copies of the Plans, each certified
by the Design Builder and the Borrower.

(xi)           The Collateral Assignment for the
benefit of the Bank of each of the Material Contracts, duly executed by the
Borrower and consented to by the other party or parties to each such Material
Contract, with a copy of such Material Contract attached thereto.

(xii)          The Budget Variance Report or other
Total Expansion Facility Costs statement on the Expansion Facility duly
executed by the Borrower, setting forth the anticipated total cost of the
Expansion Facility’s completion, and the Schedule of Values or other
construction cost statement duly executed by the Design Builder, setting forth
its anticipated construction costs of the Expansion Facility, each in effect or
effective as of the Draw Request.

(xiii)         An ALTA (American Land Title
Association) Survey of the Property, prepared at the Borrower’s expense,
currently certified by a licensed, registered surveyor and incorporating the
legal description of the Property, showing the location of all points and lines
referred to in the legal description, the location of any existing
improvements, the location of the Project (including parking) and the proposed
location of the Expansion Facility as being within the exterior boundaries of
the Property and in compliance with all applicable building set-back
requirements, the location of all utilities and the location of all easements
and encroachments onto or from the Property that are visible on the Property,
known to the surveyor preparing the survey or of record, identifying easements
of record by recording data and currently certified by the surveyor that there
are no such easements or encroachments upon the Property except as shown on the
survey, and such other matters as the Title Company may require in order to
issue the title binder referred to in Section 4.01(a)(xv) below (the “Preliminary
Survey”).

(xiv)        An as built appraisal based upon the
Plans to be performed by Natwick Associates Appraisal Services which shows the
as completed value of the Property and Project addressed to and otherwise
acceptable to the Bank.

(xv)         A title binder, issued by the Title
Company, at the Borrower’s expense, constituting a commitment by the Title
Company to issue a mortgagee’s title policy in favor of the Bank as mortgagee
under the Mortgage, that will be free from all standard exceptions, including
mechanics’ liens and all other exceptions not previously approved by the Bank
and that will insure the Mortgage to be a valid first lien on the Property, and
with the endorsements as set forth in Exhibit “R” attached hereto and
incorporated herein by this reference, each in form and content reasonably
acceptable to the Bank.

 29
 

(xvi)        A soil report on the Property certified
by a registered engineer including structural design recommendations in form
and substance satisfactory to the Bank. 
Such report shall include soil borings and geo-technical analyses.

(xvii)       The Phase I Environmental Report of
the Property.

(xviii)      Copies of all construction Permits from
the applicable Governmental Authorities from whom such permit or license is
required.

(xix)         Copies of documents from the
Governmental Authorities that provide to the reasonable satisfaction of the
Bank that the Project when constructed in accordance with the Plans will comply
in all material respects with all applicable laws, ordinances, zoning,
subdivision, platting, environmental and land use requirements, without special
variance or exception, and such other evidence as the Bank shall reasonably
request to establish that the Project and the contemplated use thereof are
permitted by and comply in all material respects with all applicable use or
other restrictions and requirements in prior conveyances, zoning ordinances, Environmental
Requirements, watershed district regulations and all other applicable laws or
regulations of any other Governmental Authorities.

(xx)          Copies of certificates of insurance
demonstrating the types, levels, deductibles, endorsements, and other coverage
parameter issues to the satisfaction of the Bank for builders’ risk insurance,
casualty/commercial general liability insurance, business automobile liability
insurance, environmental liability insurance and workers’ compensation
insurance required (i) of Borrower under Article VI of this Agreement,
(ii) of the Design Builder under the Design/Build Construction Contract, and
(iii) of each Person providing Other Project Construction services under any
Other Project Construction agreement, with all such insurance in full force and
effect and approved by the Bank, in the exercise of its reasonable discretion,
and naming the Bank as a mortgagee and additional insured or loss payee, as the
case may be.

(xxi)         A FEMA designation indicating that the
Project is not in a Special Flood Hazard Area.

(xxii)        A certificate (dated as of the date of
this Agreement) of an Authorized Person of the General Partner of Borrower
certifying a copy of the Borrower’s LP Agreement, and any amendments, if
applicable.

(xxiii)       A certificate (dated as of the date of
this Agreement) of an Authorized Person of the General Partner of Borrower
certifying a copy of the Borrower’s Certificate of Limited Partnership and
Statement of Qualification and any amendments thereto, if applicable.

(xxiv)       A certificate of good standing or
existence for the Borrower and the General Partner from the Secretary of State
of the State of Iowa.

 30
 

(xxv)        A fully executed Disbursement Agreement.

(xxvi)       The Guaranty, duly executed by the
General Partner.

(xxvii)      The Swap Contract, duly executed on behalf
of the Borrower.

(xxviii)       The
Subordination Agreement, duly executed on behalf of the Borrower, the Bank, and
Farmers State Bank of Marcus, Iowa.

(xxix)       The Deposit Account Control Agreements,
duly executed on behalf of the Borrower, the Bank, Farmers State Bank of
Marcus, Iowa, and Cherokee State Bank of Cherokee, Iowa, respectively.

(b)           The representations and warranties
contained in Article V of this Agreement are correct in all material
respects on and as of the date of such disbursement as though made on and as of
such date, except to the extent that such representations and warranties relate
solely to an earlier date and except to the extent of changes permitted under
the terms of this Agreement or approved by the Bank in writing.

(c)           No event has occurred and is
continuing, or would result from such disbursement, which constitutes or may
constitute a Default or an Event of Default.

(d)           The disbursement requirements of
Article III of this Agreement and the Disbursement Agreement have been
satisfied.

(e)           If required by the Bank, the Bank
shall be furnished with a statement from the Borrower and the Design Builder,
in form and substance satisfactory to the Bank, in the exercise of its
reasonable discretion, setting forth the names, addresses and amounts due or to
become due, as well as the amounts previously paid, to the Design Builder and
every Subcontractor.

(f)            All Permits issued for construction
and operation of the Project have been, or will be, timely received so as to
not delay the construction or impact the operation of the Project, and no
Permit necessary for the construction or operation of the Project shall have
been revoked or the issuance thereof subjected to challenge before any
Governmental Authority.

(g)           The Bank and the Borrower intend that
the Construction Loan is available, subject to the terms and provisions of this
Agreement, to fund an amount not to exceed Seventy Three Million and No/100ths
Dollars ($73,000,000.00).  No advances or
disbursements under the Construction Loan shall exceed such levels, unless the
Bank consents in writing to the same.

(h)           The Borrower shall have amended all
security agreements or other agreements granting a security interest in
equipment and inventory of the Borrower to the Iowa Department of Economic
Development to provide for the termination and release of all such security
agreements, security interests and financing statements related thereto upon
the condition that the Borrower deliver a Letter of Credit to the Iowa
Department of

 31
 

Economic Development in
form and substance mutually acceptable to the Borrower, the Bank and the Iowa
Department of Economic Development.

(i)            The Borrower shall have delivered a
Letter of Credit to the Iowa Department of Economic Development in form and
substance mutually acceptable to the Borrower, the Bank and the Iowa Department
of Economic Development in connection with the termination and release of all
security interests and financing statements relating to the equipment and
inventory of the Borrower.

(j)            The Bank shall have received
acknowledgement copies of all termination statements (UCC-3) duly filed under
the Uniform Commercial Code and any other releases, termination statements or
other agreements, in form and substance satisfactory to the Bank, necessary to
terminate and release all security interests and financing statements relating
to the equipment and inventory of the Borrower granted under any security
agreements or other agreements with the Iowa Department of Economic Development.

Section
4.02.        Conditions Precedent to
Subsequent Disbursements under the Construction Loan and any other Extensions
of Credit.  The
obligation of the Bank to make any additional Extensions of Credit, other than
Extensions of Credit under the Operating Note, shall be subject to the
condition precedent, unless waived or extended in writing by the Bank, that the
Borrower shall be in compliance with the conditions set forth in Section 4.01
of this Agreement and to the further condition precedent that on the date of
such Extension of Credit no determination shall have been made by the Bank, in
the exercise of its reasonable judgment, that the undisbursed amount of the
Construction Loan is less than the amount required to pay all costs and
expenses of any kind which reasonably may be anticipated in connection with the
completion of the Expansion Facility; or, if such a determination has been made
and notice thereof sent to the Borrower in accordance with this Agreement, the
Borrower shall have deposited the necessary funds with the Bank in accordance
with Section 3.04 of this Agreement.

Section 4.03.  Conditions Precedent to Final Disbursements
on Construction Loan. 
The obligation of the Bank to make the final disbursement on the
Construction Loan shall be subject to the condition precedent, unless waived or
extended in writing by the Bank, that the Borrower shall be in compliance with
all conditions set forth in Sections 4.01 and 4.02 of this Agreement and,
further, that the following conditions shall have been satisfied on or prior to
the Construction Loan Termination Date:

(a)           The Expansion Facility has been
completed in material compliance with the Expansion Facility Plans and the Bank
shall have received a certificate of completion from the Design Builder,
certifying that (i) work on the Expansion Facility has been completed in
material compliance with the Expansion Facility Plans and the Design/Build
Construction Contract, and all labor, services, materials and supplies used in
such work have been paid for and (ii) the completed Expansion Facility
conforms in all material respects with all applicable zoning, land use
planning, building and environmental laws and regulations of the Governmental
Authorities having jurisdiction over the Project.

 32
 

(b)           The Bank has received satisfactory
evidence that all work requiring inspection by municipal or other Governmental
Authorities having jurisdiction has been duly inspected and approved by such
authorities and by the rating or inspection organization, bureau, corporation
or office having jurisdiction, and to the extent applicable a certificate of
occupancy relating thereto has been issued.

(c)           The Bank or the Title Company, on the
Bank’s behalf, shall have received a lien waiver from each Subcontractor and
the Design Builder for all work done and for all materials furnished for or
related to the Expansion Facility, in each case, of a contract value in excess
of Five Thousand and No/100ths Dollars ($5,000.00).

(d)           The Borrower shall have delivered to
the Bank an updated Preliminary Survey prepared on an as-built basis at the
Borrower’s expense, currently certified by a licensed, registered surveyor and
incorporating the legal description of the Property, showing the matters
reflected in the Preliminary Survey (the “Final Survey”).

(e)           The Bank shall have received an
updated Zoning Endorsement (ALTA 3.1) to the title binder referenced in Section
4.01(a)(xv) based on the Final Survey and the improvements as-built.

(f)            The Bank shall have received copies
of certificates of insurance demonstrating the types, levels, deductibles,
endorsements, and other coverage parameter issues to the satisfaction of the
Bank for permanent all risk property insurance and Business Interruption and
Extra Expense (BIEE) insurance required under Article VI of this
Agreement, with all such insurance in full force and effect and approved by the
Bank, in the exercise of its reasonable discretion, and naming the Bank as a
mortgagee and additional insured or loss payee, as the case may be.

(g)           The Bank has received an itemized
list from the Borrower of all equipment and fixtures, which are at that time
subject to the Bank’s security interest.

Section 4.04.        Conditions Precedent to Operating Loan.  The obligation of the Bank to make, extend or
renew the Operating Loan shall be, in addition to the conditions set forth in
Sections 4.01, subject to the following further conditions precedent on
the date of such Operating Loan or the extension or renewal thereof:

(a)           If, at the time of a requested
disbursement, the most recent monthly Borrowing Base certificate provided by
the Borrower under Section 6.01(j) of this Agreement reflects that the
disbursement requested by the Borrower thereunder will cause the outstanding
balance of the Operating Note to exceed the Borrowing Base, the Bank shall not
make such disbursement to Borrower until such time as the Borrower can provide
an updated Borrowing Base certificate as of the date of the requested
disbursement that demonstrates that the requested disbursement will not cause
the outstanding balance of the Operating Note, after such disbursement, to
exceed the Borrowing Base.

 33
 

(b)           The Bank shall have received such
other approvals, opinions or documents as the Bank may reasonably request.

Section 4.05.        No Waiver.  The making of any Extension of Credit prior
to fulfillment of any condition thereto shall not be construed as a waiver of
such condition, and the Bank reserves the right to require fulfillment of any
and all such conditions prior to making any subsequent disbursements under or
relating to the Construction Note or any other Notes.

ARTICLE
V

REPRESENTATIONS
AND WARRANTIES

To induce the Bank to enter into this Agreement and to
make the disbursements from time to time provided for herein and in the related
Loan Documents, the Borrower makes the following representations and warranties
and agrees that each Draw Request constitutes a reaffirmation of each of these
representations and warranties as of the date of such Draw Request:

Section 5.01.  Existence and Power.  The Borrower is a limited liability limited
partnership duly formed, validly existing and in good standing under the laws
of the State of Iowa.  The Borrower has
accomplished all necessary actions required by a limited liability limited
partnership under applicable law and has all requisite limited liability
limited partnership power and authority to own the Property, to construct the
Expansion Facility, and upon completion thereof, to operate the Project, and to
execute and deliver, and to perform all of the Borrower’s Obligations under,
the Loan Documents to which the Borrower is a party.

Section 5.02.  Authorization of Borrowing; No Conflict as to
Law or Other Agreements. 
The execution, delivery and performance by the Borrower of the Loan
Documents and the borrowings from time to time hereunder have been duly
authorized by all requisite actions of the Borrower and do not and will not
(a) require any material action, consent or approval of, registration or
filing with or other authorization by any Governmental Authority, other than
those obtained and in full force and effect, (b) violate in any material
respect any provision of any law, statute, rule or regulation or of any order,
writ, injunction or decree presently in effect having applicability to the
Borrower, or violate any provision of the Certificate of Limited Partnership,
the Statement of Qualification or the LP Agreement of the Borrower, (c) be
in conflict with, result in a breach of or constitute (alone or with notice or
lapse of time or both) a default under any indenture or loan or credit
agreement or any other agreement, lease or instrument to which the Borrower is
a party or by which it or its properties may be bound or affected, or
(d) other than Permitted Liens, result in, or require, the creation or
imposition of any mortgage, deed of trust, pledge, lien, security interest or
other charge or encumbrance of any nature to or with any other creditor of the
Borrower, in the aggregate exceeding One Hundred Thousand and No/100ths Dollars
($100,000.00) annually and cumulatively, upon or with respect to any of the
properties now owned or hereafter acquired by the Borrower.

Section 5.03.  Legal Agreements.  The Loan Documents to which the Borrower is a
party constitute the legal, valid, and binding liability and obligation of the
Borrower enforceable 

 34

against the Borrower in accordance with their respective terms except
(a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’
rights generally and (b) as limited by laws relating to the availability
of specific performance, injunctive relief or other equitable remedies.  As to the Loan Documents to which the
Borrower is not a party, to the best of Borrower’s knowledge, such documents
constitute the legal, valid and binding obligations of the parties thereto,
enforceable against such parties in accordance with their respective terms,
except (a) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally and (b) as limited by laws
relating to the availability of specific performance, injunctive relief or
other equitable remedies.

Section 5.04.  General Partner Existence and Power.  The General Partner is a limited liability
company duly formed, validly existing and in good standing under the laws of
the State of Iowa.  The General Partner
has accomplished all necessary actions required by a limited liability company
under applicable law and has all requisite limited liability company power and
authority to own its assets, and to execute and deliver, and to perform all of
the General Partner’s obligations under, the Loan Documents to which the
General Partner is a party.

Section 5.05.  Guaranty.  The Guaranty constitutes the legal, valid,
and binding liability and obligation of the General Partner enforceable against
the General Partner in accordance with its terms, except (a) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of
general application affecting enforcement of creditors’ rights generally and
(b) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies.

Section 5.06.  License and Permits.  The Borrower has all necessary Permits
required for construction and operation of the Project, except those which are
not required for the current stage of construction of the Expansion Facility,
or which cannot be obtained until completion of the Expansion Facility.

Section 5.07.  Construction of Project.  The Expansion Facility will be constructed in
material compliance with the Plans and the Design/Build Construction Contract,
and will not encroach upon or overhang any easement or right-of-way
on land not constituting part of the Property. 
The Property and the Project, both during construction and on the
Completion Date, and the contemplated use thereof following the Completion Date
will not violate in any material respect any applicable zoning or use statute,
ordinance, building code, rule or regulation, or any covenant or agreement to
which the Borrower is a party or by which the Property or the Project is
subject.  The Borrower agrees that it
will furnish from time to time such satisfactory evidence with respect thereto
as may be required by the Bank.

Section 5.08.  Ownership and Liens.  The Borrower has good and marketable fee
simple title to, or valid leasehold interests in, all of the Borrower’s
properties and assets, real and personal, including the properties and assets
and leasehold interest reflected in the financial statements referred to in
Section 5.09 (other than any properties or assets disposed of in the
ordinary course of business), and, except for Permitted Liens, none of the
properties and assets owned by the Borrower and none of the Borrower’s
leasehold interests are subject to any lien,

 35
 

mortgage, deed of trust, pledge, security interest or other charge or
encumbrance of any nature, except such as may be permitted, and only to the
extent permitted, under this Agreement.

Section 5.09.  Financial Condition.  The Borrower has furnished to the Bank
compiled cash flow projections, including the Sources and Uses of Funds, of the
Borrower prepared in accordance with GAAP which projections were updated as of
October 3, 2006, together with the supplementary material included in
Exhibit ”S” attached hereto and incorporated herein by this reference (the
“Projections”).  To the knowledge of
Borrower, the Projections fairly present the projected financial condition of
the Borrower on the dates thereof, and were prepared in GAAP format and on the
basis of assumptions deemed reasonable by the Borrower.  There has been no material adverse change in
the operations, properties or condition (financial or otherwise) of the
Borrower since the date of the Projections and no additional borrowings have
been made by the Borrower other than the borrowings contemplated hereby or
approved by the Bank or indebtedness secured by Permitted Liens.

Section 5.10.  Litigation.  There are no actions, suits or proceedings
pending against or, to the knowledge of the Borrower, threatened against or
affecting the Borrower or the properties of the Borrower before any court,
arbitrator or any governmental body, department, commission, board, bureau,
agency, official or instrumentality, domestic or foreign, which, if determined
adversely to the Borrower, would have a material adverse effect on the
financial condition, properties, or operations of the Borrower or that in any
manner questions the validity of any Loan Document.

Section 5.11.  Taxes.  The Borrower has filed all federal, state and
local tax returns which to the best of the knowledge of the Borrower are
required to be filed by it, and the Borrower has paid or caused to be paid to
the respective taxing authorities all taxes as shown on said returns or on any
assessment received by it to the extent such taxes have become due except those
which the Borrower is contesting in good faith and with respect to which
adequate accounting reserves have to the extent required by GAAP been set
aside.

Section 5.12.  No Default.  There exists no Default or Event of Default
under this Agreement or any of the Loan Documents.

Section 5.13.  ERISA.  The Borrower is in compliance in all material
respects with ERISA and has received no notice to the contrary from the
Internal Revenue Service, the United States Department of Labor, the Pension
Benefit Guaranty Corporation or any other governmental entity or notice of any
claims or pending claims under ERISA.

Section 5.14.  Environmental Matters.  Except as set forth in the Phase I
Environmental Report of the Property, (a) the Borrower is in compliance in
all material respects with all Environmental Requirements applicable to
Borrower and knows of no conditions or circumstances that could materially
interfere with such compliance in the future; (b) except for Permits that
cannot be obtained until completion of the Expansion Facility, the Borrower has
obtained all Permits, and approvals required by law for the operation of its
business; and (c) the Borrower has not identified any “recognized
environmental conditions,” as that term is defined by the ASTM in its standards
for environmental due diligence which could subject the Borrower to enforcement
action if brought to the attention of appropriate Governmental Authorities.

 36
 

Section 5.15.  Necessary Utilities, Etc.  The Borrower has all necessary electrical,
gas, water and sewer facilities in place for the proper construction and
operation of its ethanol plant, including the ability to utilize water and
water rights owned by, or available to, Borrower in the construction and
operation of the ethanol plant.  The
Borrower’s water and water rights described above are, and will be, sufficient
for the operation of the Project.  The
Borrower has made adequate provision for all storage facilities, equipment and
product supplies, including corn, as specified by the Design Builder or
Borrower’s engineers for the maximum output and operation of the plant.

Section 5.16.  No Subsidiary. 
Except for Borrower’s investment in Akron, the Borrower does not have a
Subsidiary.

Section 5.17.  Provided Information.  No certificate or statement furnished to the
Bank by, or on behalf of, the Borrower in connection with the transactions
contemplated hereby contains any untrue statement of a material fact or omits
to state a material fact necessary in order to make the statements contained
therein or herein not misleading.  To the
best of the knowledge of the Borrower, there are no facts which materially
adversely affect or in the future (so far as the Borrower now foresees), and
excluding facts that are not unique to Borrower but rather impact the economy
of the United States of America, the economy of the State of Iowa, or the
ethanol industry as a whole), are likely to have a materially adverse effect on
the operation or prospects or condition (financial or other) of the Borrower or
its properties or assets which has not been set forth herein or in a written
certificate or statement furnished to the Bank by the Borrower.

ARTICLE
VI

ADDITIONAL
COVENANTS OF BORROWER

Section 6.01.  Financial Information and Reporting.  Except as otherwise provided in this
Agreement, all financial information provided to the Bank shall be compiled
using GAAP consistently applied.  During
the time period that any amounts are outstanding under the Notes, this
Agreement or any of the other Loan Documents to which the Borrower is a party,
unless the Bank shall otherwise agree in writing:

(a)           The Borrower shall
provide the Bank within one hundred twenty (120) days of the Borrower’s
fiscal year end the Borrower’s consolidated, annual financial statements.  The fiscal year end statements must be
audited and reflect an unqualified opinion by an independent certified public
accountant reasonably acceptable to the Bank and must be accompanied by a
certificate of such accountants stating whether, in conducting their audit,
they have become aware of any Default or Event of Default under this Agreement,
specifying the nature and duration of the Default or Event of Default.  Such audited year end financial statements
shall be accompanied by the accountants’ calculations of the Borrower’s
compliance with the covenants contained in Section 6.02 of this Agreement
as of the said fiscal year end.

(b)           The Borrower will
furnish to the Bank within thirty (30) days after the end of each calendar
month consolidated financial statements of the Borrower for such period

 37
 

and year to date all in
reasonable detail, and which shall include, but not be limited to, (i) Borrower’s
monthly balance sheet, income statement and cash flow statement, and (ii)
monthly calculations of the Borrower’s compliance with the covenants contained
in Section 6.02 of this Agreement.

(c)           The Borrower will
deliver to the Bank, within thirty (30) days of each calendar quarter end
(with respect to the financial statements required under Section 6.01(b)) and
within one hundred twenty (120) days of each fiscal year end (with respect to
financial statements required under Section 6.01(a)), a certificate in a form
reasonably acceptable to the Bank that has been signed by the General Partner
or other Authorized Person of the Borrower, which (i) certifies that the
statements required by Section 6.01(a) and (b) have been accurately prepared
in accordance with GAAP applied consistently (except for the absence of
financial footnotes to the statements furnished under Section 6.01(b) and
normal or customary year end adjustments to the statements under Section
6.01(a)); and (ii) certifies that the General Partner or other Authorized
Person of the Borrower has no knowledge of any Event of Default under this
Agreement or the Loan Documents, or of any event which would, after the lapse
of time or the giving of notice, or both, constitute an Event of Default under
this Agreement or the Loan Documents and that the Borrower is in full
compliance with all covenants contained in this Agreement and the Loan
Documents.

(d)           The General Partner or
other Authorized Person of the Borrower will deliver to the Bank each month,
within thirty (30) days of each month end, a certified monthly production
report, in form acceptable to the Bank, which shall, at a minimum, report for
each such month the Borrower’s input and output amounts of corn or other grain
usage, natural gas usage, electrical usage, dry distillers grains and wet
distillers grains output, ethanol output and, if applicable, CO2 output,
and the applicable costs of each such usage.

(e)           At least thirty (30)
days prior to the end of each fiscal year, the Borrower shall provide the Bank
projected financial statements for the following fiscal year which shall
include, but not be limited to, proposed capital projects and expenditures.

(f)            The Borrower shall
notify the Bank of the existence of any Default or Event of Default promptly
after such Default or Event of Default becomes known to the General Partner,
the Manager or any officer, agent, partner, or member of the Borrower.

(g)           The Borrower shall
authorize all Governmental Authorities to furnish reports of examinations,
records and other information relating to the condition and affairs of the
Borrower and the Project, and any information from reports, returns, files and
records by such authorities regarding the Borrower upon request by the Bank.

(h)           The Borrower will give
the Bank prompt written notice of any material violation as to any
environmental matter by the Borrower of which Borrower obtains knowledge and of
the commencement of any judicial or administrative proceeding adverse to
Borrower relating to Environmental Requirements (i) in which an adverse
determination or result could result in the revocation of or have a material
adverse effect

 38
 

on any Permits held by
the Borrower which are material to the operations of the Borrower or
(ii) which will or threatens to impose a material liability on the
Borrower to any Person or which will require a material expenditure by the
Borrower to cure any alleged problem or violation.

(i)            The Borrower will give
prompt written notice to the Bank of (i) any litigation, arbitration or
proceeding in which the Borrower is a party if an adverse decision therein
could require the Borrower to pay more than One Hundred Thousand and No/100ths
Dollars ($100,000.00) or deliver assets the value of which exceeds such sum
(whether or not the claim is considered to be covered by insurance); and
(ii) the institution of any other suit, arbitration or proceeding
involving the Borrower that is reasonably likely to have a material and adverse
effect on the Borrower’s operations, financial condition, property or business
prospects or that might in any manner question the validity of any Loan
Document.

(j)            The Borrower shall
provide monthly Borrowing Base certificates in a form reasonably acceptable to
the Bank that have been signed by the General Partner or other Authorized
Person of the Borrower, calculating advance rates under the Operating Loan
pursuant to the Borrowing Base.

(k)           The Borrower shall
provide a quarterly hedging report in a form reasonably acceptable to the Bank,
completed and certified by the grain manager, that sets forth the Borrower’s
current and projected future hedge positions in regards to ethanol contracts,
grain contracts and natural gas contracts.

(l)            The Borrower will
provide the Bank with such other information and reports as the Bank may
reasonably request.

Section 6.02.  Financial Covenants.  At all times that any amounts are outstanding
under the Notes, this Agreement or any of the other Loan Documents to which the
Borrower is a party, unless the Bank shall otherwise agree in writing, the
Borrower agrees to comply with the financial covenants described below, which
shall be calculated using GAAP consistently applied, except as they otherwise
may be modified by the capitalized definitions:

(a)           The Borrower shall maintain
a Fixed Charge Coverage Ratio, measured on a rolling four quarters trailing
basis at the end of each full fiscal quarter, of no less than 1.25:1.00.

(b)           The Borrower shall
maintain Net Worth of not less than Sixty Three Million One Hundred Seven Thousand
Seven Hundred Sixty Six and No/100ths Dollars ($63,107,766.00).  The required minimum Net Worth of Borrower,
which is to be measured annually at the end of each fiscal year of Borrower,
shall increase each fiscal year by an amount equal to the greater of (a) Two
Hundred Fifty Thousand and No/100ths Dollars ($250,000.00) or (b) the amount of
undistributed earnings accumulated during the fiscal year just ended, but not
including allowable distributions attributable to the just ended fiscal year’s
earnings.

 39
 

(c)           The Borrower shall
determine, at the end of each fiscal year, the amount of its Excess Cash Flow
for said year, and within thirty (30) days following the end of such
fiscal year, pay twenty percent (25%) of such sum to the Bank, to be
applied to the outstanding principal amount of the Existing Variable Rate Note
or Variable Rate Note, as applicable, and after the Variable Rate Note is
repaid, to the outstanding principal amount of the Existing Long Term Revolving
Note or the Long Term Revolving Note, as applicable.  Such annual payment shall not release the
Borrower from making any payment of principal or interest otherwise required by
this Agreement or the terms and provisions of any of the Notes.  Upon payment of the Long Term Revolving Note
and the Variable Rate Note, the prepayment required under this Section 6.02(c)
shall no longer be required.  No payment
of Excess Cash Flow shall be the cause of a payment to the Bank for interest
rate breakage fees or otherwise result in any Prepayment Fee.  The percentage of Excess Cash Flow required to
be paid by Borrower under this Section 6.02(c) may be revised at the end of
each fiscal year upon the mutual agreement of the Borrower and the Bank, but
such percentage of Excess Cash Flow shall at no time exceed twenty five percent
(25%).

(d)           The aggregate amount of
any state and federal incentive payments and the Excess Cash Flow required to
be applied to the outstanding principal amounts of the Notes under Section
6.02(c) of this Agreement shall not exceed Five Million and No/100ths Dollars
($5,000,000.00) per fiscal year.

(e)           The
Borrower shall maintain the following minimum Working Capital during the
periods stated below, measured continuously:

	
  Period

  	
   

  	
  Minimum Working Capital

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  From the Closing
  Date through April 30, 2007

  	
   

  	
  $

  	
  6,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  From May 1, 2007
  through October 31, 2007

  	
   

  	
  $ 

  	
  7,500,000 

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  From November 1, 2007
  until payment in full of the Term Loans

  	
   

  	
  $

  	
  9,000,000

  	
   

  

For the purpose of this covenant, the amount of any
availability to draw under the terms of the Existing Long Term Revolving Note
or the Long Term Revolving Note, in effect at the applicable time, shall
constitute an addition to Working Capital in such amount available.

Section 6.03.  Affirmative Covenants.  During the time period that any amounts are
outstanding under the Notes, this Agreement or any of the other Loan Documents
to which the Borrower is a party, unless the Bank shall otherwise agree in
writing, the Borrower shall:

(a)           diligently proceed with
construction of the Expansion Facility in material compliance with the
Expansion Facility Plans and the Design/Build Construction Contract, and in
accordance in all material respects with all applicable laws and

 40
 

ordinances, and complete
the Expansion Facility by the Construction Loan Termination Date;

(b)           use the proceeds of
each of the disbursements under the Construction Loan solely for the purposes
set forth in this Agreement;

(c)           retain Fagen, Inc., a
Minnesota corporation, as the Design Builder. 
In the event that Fagen, Inc. is no longer the Design Builder for the
Project, the Borrower shall replace Fagen, Inc. with another Design Builder,
subject to the reasonable approval of the Bank and shall obtain, at the
Borrower’s sole expense, and provide the Bank with proof of a performance
completion bond in such form and in such amount as the Bank deems reasonably
satisfactory;

(d)           retain a plant
operations manager or general manager of the Project with experience working in
such capacity or at a similar level of responsibility in another ethanol
plant.  If Borrower desires to pay such
plant operations manager or general manager any bonus or incentive payment
beyond its required monthly management fee, prior to making such payment,
Borrower shall (i) make all Scheduled Payments on the Obligations to the Bank,
(ii) deliver to the Bank a certificate in a form reasonably acceptable to the
Bank that has been signed by the General Partner or other Authorized Person of
the Borrower which certifies that the Borrower is in full compliance with all
covenants contained in this Agreement and the Loan Documents, and (iii) obtain
written approval from the Bank, which approval the Bank may withhold in its
reasonable discretion.  Any bonus or
incentive payment obligations of the Borrower to the plant operations manager
or general manager shall be specifically subordinated to the Borrower’s
Obligations owed to the Bank.  In the
event that Borrower desires to retain a different general manager or Chief
Financial Officer of the Borrower prior to the satisfaction of Borrower’s
Obligations, Borrower shall obtain written approval from the Bank, which
approval shall not be unreasonably withheld. 
The foregoing restrictions and requirements under this Section 6.03(d)
shall not apply to payments to employees under the Borrower’s deferred
compensation plan nor the payments to employees under the Borrower’s Cash Bonus
Plan;

(e)           use its reasonable
efforts to require the Design Builder, each Subcontractor, and each Person
providing Other Project Construction services or materials to comply in all
material respects with all rules, regulations, ordinances and laws bearing on
its conduct of work on the Project;

(f)            provide and maintain
the following insurance, at all times until the satisfaction of Borrower’s
Obligations and, from time to time at the request of the Bank, furnish the Bank
with such additional insurance, which the Bank, in its reasonable discretion,
deems necessary and with proof of payment of premiums on:

(i)            Builders’ Risk completed
value form insurance, in form and content reasonably satisfactory to the Bank,
and placed with financially sound and reputable insurers insuring the Project
(and a permanent all risk property policy of insurance with coverage equal to
the replacement cost of the Project, as well as

 41
 

casualty (Commercial
General Liability) and umbrella insurance) against all risks, including flood,
earthquake and mechanical and electrical breakdown including testing to the
full value of the Project (subject to reasonable loss deductible
provisions).  The Bank’s interest shall
be protected by naming the Bank as an “additional insured” on the liability
policies and a “loss payee” on the property policies and shall contain an
agreement of the insurer to give not less than thirty (30) days’ advance
written notice to the Bank in the event of cancellation of such policy or
change affecting the coverage thereunder;

(ii)           Insurance against loss,
damage or destruction by fire and other casualty, including theft, vandalism
and malicious mischief, flood (if the Property is in a location designated by
FEMA as a Special Flood Hazard Area), earthquake (if the Property is in an area
subject to destructive earthquakes within recorded history), boiler explosion
(if there is any boiler upon the Property), plate glass breakage, sprinkler
damage (if the Property has a sprinkler system), all matters covered by a
standard extended coverage endorsement, special coverage endorsement commonly
known as an “all risk” endorsement and such other risks as the Bank may
reasonably require, insuring the Project for not less than one hundred percent
(100%) of its full insurable replacement cost;

(iii)          Casualty (Commercial
General Liability) & Umbrella insurance (including products and completed
operations, operations of subcontractors and contractual liability insurance),
in form and content reasonably satisfactory to the Bank, and placed with
financially sound and reputable insurers with limits reasonably acceptable to
the Bank, but in no event for less than Two Million and No/100ths Dollars
($2,000,000.00) per occurrence, in the form of either a Two Million and
No/100ths Dollars ($2,000,000.00) primary policy, or a One Million and
No/100ths Dollars ($1,000,000.00) primary policy and a One Million and No/100ths
Dollars ($1,000,000.00) Umbrella policy;

(iv)          State Worker’s
compensation insurance in the statutorily mandated limits, employer’s liability
insurance with limits not less than Five Hundred Thousand and No/100ths Dollars
($500,000.00) or such greater amount if required by applicable law;

(v)           Business Interruption
and Extra Expense (BI/EE) insurance with limits not less than the greater of
(a) Twenty Million and No/100ths Dollars ($20,000,000.00) or (b) one hundred
percent (100%) of the principal and interest payable under the Notes for a
period of not less than twelve (12) months;

(vi)          Business automobile
liability insurance insuring any and all vehicles on the site, including hired
and non-owned liability coverage with limits reasonably acceptable to the
Bank, but in no event for less than One Million and No/100ths Dollars
($1,000,000) per occurrence;

(vii)         Environmental coverage
for clean up and removal of environmental contamination(unless the Phase I
Environmental Report of the

 42
 

Property and subsequent
surveys establish that the contamination preceded Borrower’s
ownership/occupancy necessitating the purchase of environmental clean up prior
to operation), but only insofar as it is reasonably required by the Bank;

(viii)        All insurance policies
required of and provided by the Borrower shall be primary and non-contributory
and in no case shall insurance provided by the Bank, if any, contribute to loss
or damage to the Borrower or Borrower’s activities associated with this
Agreement;

(ix)           All insurance policies
shall contain a standard without contribution mortgage clause endorsement in
favor of the Bank and its successors and assigns as their interests may appear
and any other lender designated by the Bank;

(x)            All insurance policies
shall provide that the policy of insurance shall not be terminated, cancelled
or substantially modified without at least thirty (30) days’ prior written
notice to the Bank and to any lender covered by any standard mortgage clause
endorsement;

(xi)           All insurance policies
shall be issued by insurance companies licensed to do business in the state in
which the Property is located and which are rated A:VI or better by Best’s
Insurance Guide or otherwise approved by the Bank;

(xii)          It is expressly
understood and agreed that the foregoing minimum limits of insurance coverage
shall not limit the liability of Borrower for its acts or omissions as provided
in the Mortgage or otherwise in any of the Loan Documents.  All insurance policies (with the exception of
worker’s compensation insurance to the extent not available under statutory
law) shall designate the Bank and its successors and assigns as “additional
insureds” for liability insurance and “loss payee” for property insurance.  All such policies shall be written as primary
policies, with deductibles not to exceed ten percent (10%) of the amount of
coverage.  Any other policies, including
any policy now or hereafter carried by the Bank, shall serve as excess
coverage.  Borrower shall procure
policies for all insurance for periods of not less than one (1) year and shall
provide to the Bank certificates of insurance or, upon the Bank’s request,
duplicate originals of insurance policies evidencing that insurance satisfying
the requirements of this Agreement or any of the other Loan Documents is in
effect at all times.

(g)           assign to the Bank, in
form acceptable to the Bank, all equipment and systems warranties relating to
the Project, together with all contracts for natural gas, electricity, water
and other utilities, as the same are obtained by the Borrower following the
Closing Date;

(h)           assign to the Bank, in
form acceptable to the Bank, Borrower’s account corresponding to non-exchange
traded, over-the-counter swap and option transactions on agricultural and
energy commodities between the Borrower and FCStone, L.L.C., an

 43
 

Iowa limited liability
company (“FCStone”) or any other Person providing such services, and provide,
in form acceptable to the Bank, a quarterly summary of all of Borrower’s
transactions relating to such account(s);

(i)            maintain accurate and
complete books, accounts and records pertaining to the Property and the Project
and its ongoing and continuing operations in form and substance reasonably
satisfactory to the Bank.  The Borrower
will permit the Bank, at the Bank’s expense if the Bank employees make the
inspection, but at the Borrower’s expense if the Bank contracts with third
parties at reasonable expense to make the inspection (but only if such
inspections are made during the construction of the Expansion Facility), to examine
upon reasonable notice all books, records, contracts, plans, drawings, Permits,
bills and statements of account pertaining to the Project and to inspect upon
reasonable notice all books and records pertaining to its operations and to
make extracts therefrom and copies thereof;

(j)            cause to be paid to
the proper authorities when due all federal, state and local taxes, including
taxes on the Property, required to be paid or withheld by it except those which
the Borrower is contesting in good faith and with respect to which appropriate
accounting reserves have, to the extent required by GAAP, been set aside;

(k)           allow the Bank and its
participants, upon reasonable notice, and at the Borrower’s sole expense, to
conduct such inspections of the Project and the Borrower’s personal property
subject to the Bank’s security interest as the Bank may deem necessary for the
protection of the Bank’s interest; provided, however, such inspections shall
occur during regular business hours, or such other time as the Borrower and the
Bank may agree, and shall not unreasonably interfere with the Borrower’s
business operations.  Any such
inspections shall be made and any certificates issued are solely for the
benefit and protection of the Bank, and the Borrower shall not be entitled to
rely thereon;

(l)            make all repairs,
renewals or replacements reasonably required to keep the Borrower’s ethanol
plant, properties and equipment in good working condition;

(m)          comply in all material
respects with all laws applicable to the Borrower’s form of organization and
business and the ownership of the Borrower’s property and operation of its
business;

(n)           maintain and preserve
all Permits, licenses, rights, privileges, charters and franchises that the
Borrower is required to hold to construct and operate the Project;

(o)           observe and comply with
all laws, statutes, ordinances, rules, regulations and orders of any
Governmental Authority relating to health, safety, pollution, hazardous
materials or other Environmental Requirements to the extent noncompliance could
result in a material liability or otherwise have a material adverse effect on
the Borrower;

(p)           maintain primary
operating accounts (including those accounts containing the Borrower’s equity
capital) at the Bank, other than the depository accounts subject to the Deposit
Account Control Agreements and described on Exhibit “T” attached hereto

 44
 

and incorporated herein
by this reference and such other local operating accounts as may be approved by
the Bank, which approval shall not be unreasonably withheld by the Bank,
provided, that such other local operating accounts shall be subject to deposit
account control agreements in form and substance similar to the Deposit Account
Control Agreements;

(q)           preserve and maintain
its limited liability limited partnership existence and good standing in the
jurisdiction of its formation, and qualify and remain qualified as a foreign
limited liability limited partnership in each jurisdiction in which such
qualification is required;

(r)            immediately provide
the Bank with a copy of each notification, including requests for change orders
or written amendments, received from the Design Builder pursuant to the
Design/Build Construction Contract;

(s)           within thirty (30) days
following the Closing Date, duly execute a swap rate lock for the Swap Note in
form and substance satisfactory to the Bank; and

(t)            in the event there is
an appeal or challenge to the Decision & Order of the Cherokee County, Iowa
Zoning Board of Adjustment, dated as of March 21, 2007, that occurs within
thirty (30) days from the filing of such decision, the Borrower shall defend
such appeal or challenge and make all arrangements necessary to secure the
variances granted therein on terms acceptable to the Bank, the Borrower and the
Cherokee County, Iowa Zoning Board of Adjustment.

Section 6.04.  Negative Covenants.  During the time period that any amounts are
outstanding under the Notes or this Agreement or any of the other Loan
Documents to which the Borrower is a party, unless the Bank shall otherwise
agree in writing, the Borrower shall not:

(a)           permit any security
interest in or mortgage or lien on the Property or Project or other real or
personal property the Borrower owns now or in the future, or assign any
interest that it may have in any assets or subordinate any rights that it may
have in any assets now or in the future, except Permitted Liens;

(b)           form or own any
Subsidiary except for investments and contributions to Akron;

(c)           agree or consent to any
material changes in the Plans or any material changes in the terms and
provisions of the Design/Build Construction Contract, excluding the Change
Orders, which when combined with all changes (including all Change Orders)
exceed One Million and No/100ths Dollars ($1,000,000.00) in the aggregate or
any material change to any other contract identified in Article IV of this
Agreement;

(d)           incorporate in the
Project any materials, fixtures or property that are subject to the claims of
any other Person, whether pursuant to a conditional sales contract, security
agreement, lease or mortgage, except as permitted under Article VI;

 45
 

(e)           lease, sell, transfer,
convey, assign or otherwise transfer all or any material part of the interest
of the Borrower in the Project or the Property;

(f)            cause or suffer any
material change to any Material Contracts without the Bank’s approval, which
will not be withheld unreasonably;

(g)           engage in any line of
business materially different from that presently engaged in by the Borrower;

(h)           change the Borrower’s
legal form of organization or state of formation;

(i)            make any material
changes in the Borrower’s accounting procedures for tax or other purposes
unless such change is, or becomes, required under the Internal Revenue Code;

(j)            incur any Indebtedness
except (i) debt arising under this or another agreement with the Bank;
(ii) reasonable trade credit incurred in the ordinary course of business;
(iii) Subordinated Debt; and (iv) Indebtedness in existence on the date of
this Agreement and approved in advance by the Bank in writing.  The Borrower shall not become obligated for
borrowed funds, other than pursuant to this Agreement, without permission of
the Bank; provided, however, the Bank consents to the Borrower, in the ordinary
course of its business, borrowing up to an aggregate amount of One Hundred
Thousand and No/100ths Dollars ($100,000.00) each year, without further
permission from the Bank, provided that the aggregate amount of such permitted
borrowings shall not exceed One Hundred Thousand and No/100ths Dollars ($100,000.00)
at any one time without the Bank’s prior written consent, which shall not be
unreasonably withheld;

(k)           consolidate, merge,
pool, syndicate or otherwise combine with any other entity, give any
preferential treatment or make any advance, directly or indirectly, by way of
loan, gift, bonus or otherwise to any Affiliate or any other Person;
notwithstanding the foregoing and provided the same does not otherwise violate
any other covenant hereunder or violate any provision of the Operating
Agreement of Akron, the Bank consents to the Borrower making equity
contributions/investments in an aggregate amount of Twenty Million and
No/100ths Dollars ($20,000,000.00) to Akron provided that, in connection with
such equity contributions/investments, the Borrower shall (i) collaterally
assign to the Bank all of its right, title and interest in and to any and all
membership or other equity interests of Akron, (ii) deliver to the Bank a
written consent to such collateral assignment, duly executed by all of the Directors
of Akron, in form and substance satisfactory to the Bank, (iii) deliver to the
Bank a certified copy of resolutions of the Board of Directors of the General
Partner, in form and substance satisfactory to the Bank, authorizing the equity
contribution/investment in Akron and the execution, delivery and performance of
the collateral assignment of membership or other equity interests in Akron and
any other documents to be delivered by the Borrower in connection therewith,
and (iv) deliver any certificates evidencing the membership or other equity
interests of Akron and any and all financing statements or other documents
sufficient to create a valid and perfected first priority security interest in
and to the membership or other equity interests, together with all increases,
replacements, additions, substitutions, and cash and noncash proceeds

 46
 

thereof, in favor of the
Bank as additional collateral to secure repayment of Borrower’s Obligations
under this Agreement;

(l)            make, or commit to
make, Capital Expenditures (including the total amount of any Capital Leases,
but excluding the construction of the Expansion Facility) in an aggregate
amount exceeding One Million and No/100ths Dollars ($1,000,000.00) in any
single fiscal year without Bank’s prior written consent;

(m)          make
or pay, without the prior written consent of the Bank, which written consent
will not be unreasonably withheld, in any fiscal year distributions to partners
of the Borrower which would result in the Borrower at the time of such
distribution not being in compliance with any of the covenants set forth in
this Agreement after payment of such distribution or in excess of the following
amounts:

	
  If Borrower’s leverage ratio
  (combined total liabilities to Net Worth) is:

  	
   

  	
  The allowable distribution (as a percentage of Net
  Income) shall be:

  
	
   

  	
   

  	
   

  
	
  ·     Greater than or equal to
  1.0:1.0

  	
   

  	
  ·     40%

  
	
   

  	
   

  	
   

  
	
  ·     Less than 1.0:1.0

  	
   

  	
  ·     65%

  

Any such distributions to the partners of the Borrower
allowed hereunder shall be declared by the Borrower only once per fiscal year,
and only after receipt by the Bank of the Borrower’s annual audited financial
statements and compliance statements as required herein, and if no Event of
Default has occurred or is continuing or if such distribution would cause a
Default, both before and after distributions are paid.  Notwithstanding any other provision contained
in this Agreement, distributions for any fiscal year hereunder prior to the
Construction Loan Termination Date shall be limited to forty percent (40%) of
the audited net income of the Borrower, with the exception of fiscal year 2007,
which shall be limited to no more than sixty five percent (65%) of the audited
net income of the Borrower for fiscal year 2006.

(n)           assume, guarantee, endorse
or otherwise become liable, contingent or otherwise, for any obligations of any
other Person, except for those guaranties outstanding at the time of execution
of this Agreement and disclosed to, and approved by, the Bank in writing;

(o)           make sales to, or
purchases from, any Affiliate of the Borrower other than Archer Daniels Midland
Company or extend credit to, or make payments for services rendered by, any
Affiliate of the Borrower unless such sales or purchases are made or such
services are rendered in the ordinary course of the Borrower’s business and on
terms and conditions at least as favorable to the Borrower as the terms and
conditions which would apply in a similar transaction with a Person not an
Affiliate of the Borrower;

(p)           sell or dispose of all
or substantially all its assets;

 47
 

(q)           (i) redeem, purchase or
retire any of its partnership units or capital interests or grant or issue, or
purchase or retire for any consideration, any warrant, right or option
pertaining thereto, (ii) permit any redemption, retirement or other acquisition
by the Borrower of the ownership of the outstanding partnership units or
capital interests of the Borrower, or (iii) permit the dilution, transfer,
pledge, hypothecation or encumbrance any ownership interest in the Borrower;

(r)            amend, or approve or
cause any amendments, relating to the Schedule of Values or the Budget Variance
Report without the prior written approval of the Bank; or

(s)           confirm Substantial
Completion by the Design Builder and release to the Design Builder of any
retainage under the Design/Build Construction Contract without the prior
written approval thereof by the Bank.

ARTICLE
VII

EVENTS
OF DEFAULT, RIGHTS AND REMEDIES

Section 7.01.  Events of Default.  Each of the following shall be an Event of
Default and give the Bank the right to exercise its remedies under this
Agreement:

(a)           the Borrower shall fail
to pay when due any Obligations or any other installment of principal or
interest or fee or expense reimbursement payable to the Bank;

(b)           the Borrower shall fail
to timely provide reports to the Bank as provided in Article VI;

(c)           the Borrower shall fail
to observe or perform any other obligation to be observed or performed by the
Borrower hereunder or under any of the other Loan Documents or any event shall
occur which the Borrower has covenanted and agreed would not occur pursuant to
the terms of this Agreement or any other Loan Document;

(d)           the Borrower shall fail
to pay any Indebtedness in an aggregate principal amount in excess of One Hundred
Thousand and No/100ths Dollars ($100,000.00) due any third Person and such
failure shall continue beyond any applicable grace or cure period, or the
Borrower shall default under any material agreement binding the Borrower and
such default shall continue beyond any applicable grace or cure period;

(e)           the Mortgage shall at
any time after its execution and delivery for any reason fail or cease (i) to
create a valid and perfected first priority security interest in and to the
property purported to be subject to such Mortgage; or (ii) to be in full force
and effect or shall be declared null and void, or the validity or
enforceability thereof shall be contested by the Borrower, or the Borrower
shall deny it has any further liability or obligation under the Mortgage, or
the Borrower shall fail to perform any of its obligations under the Mortgage;

 48
 

(f)            the Security Agreement
shall at any time after its execution and delivery and for any reason fail or
cease (i) to create a valid and perfected first priority security interest
in and to the property purported to be subject to such Security Agreement; or
(ii) to be in full force and effect or shall be declared null and void, or
the validity or enforceability thereof shall be contested by the Borrower, or
the Borrower shall deny it has any further liability or obligation under the
Security Agreement, or the Borrower shall fail to perform any of its
obligations under the Security Agreement;

(g)           the Guaranty shall at
any time after its execution and delivery for any reason fail or cease to be in
full force and effect or shall be declared null and void, or the validity or
enforceability thereof shall be contested by the General Partner, or the
General Partner shall deny it has any further liability or obligation under the
Guaranty, or the General Partner shall fail to perform any of its obligations
under the Guaranty;

(h)           the Subordination
Agreement shall at any time after its execution and delivery and for any reason
(i) cease to be in full force and effect, (ii) shall be declared null and void,
(iii) the validity or enforceability thereof shall be contested by the Borrower
or Farmers State Bank of Marcus, Iowa, or (iv) the Borrower or Farmers State
Bank of Marcus, Iowa shall deny it has any further liability or obligation under,
or shall fail to perform its obligations under, the Subordination Agreement.

(i)            the Deposit Account
Control Agreements shall at any time after their execution and delivery and for
any reason (i) cease to be in full force and effect, (ii) shall be declared
null and void, (iii) the validity or enforceability thereof shall be contested
by the Borrower, Farmers State Bank of Marcus, Iowa or Cherokee State Bank of
Cherokee, Iowa, or (iv) the Borrower, Farmers State Bank of Marcus, Iowa or
Cherokee State Bank of Cherokee, Iowa, shall deny it has any further liability
or obligation under, or shall fail to perform its obligations under, such
Deposit Account Control Agreements.

(j)            the occurrence of any
material breach of a representation or warranty by the Borrower or
non-fulfillment of any material term, covenant or agreement of the Borrower
under the terms and provisions of any Loan Document, including this Agreement;

(k)           any financial
statement, representation, warranty or certificate made or furnished by or with
respect to the Borrower to the Bank in connection with this Agreement or any
other Loan Documents, or as an inducement to the Bank to enter into this
Agreement or any other Loan Documents, or make a disbursement pursuant to the
terms and provisions of this Agreement or the respective Notes, or in any
separate statement or document to be delivered to the Bank hereunder, shall be
materially false, incorrect or incomplete when made;

(l)            the Borrower shall
admit its inability to pay its debts as they mature or shall make an assignment
for the benefit of itself or any of its creditors;

(m)          proceedings in
bankruptcy, or for reorganization of the Borrower, or for the readjustment of
debt under the Bankruptcy Code, or any part thereof, or under any

 49
 

other laws, whether state
or federal, for the relief of debtors, now or hereafter existing, shall be
commenced against or by the Borrower and, except with respect to any such
proceedings instituted by the Borrower, shall not be discharged or stayed
within thirty (30) days of their commencement;

(n)           a receiver or trustee
shall be appointed for the Borrower or for any substantial part of its
respective assets, or any proceedings shall be instituted for the dissolution
or the full or partial liquidation of the Borrower, and except with respect to
any such appointments requested or instituted by the Borrower such receiver or
trustee shall not be discharged within thirty (30) days of his
appointment, and except with respect to any such proceedings instituted by the
Borrower such proceedings shall not be discharged within thirty (30) days
of their commencement, or the Borrower shall discontinue business or materially
change the nature of its business;

(o)           the Borrower shall
discontinue its business or materially change the nature of its business;

(p)           the Borrower shall
suffer final judgments for payment of money aggregating in excess of One
Hundred Thousand and No/100ths Dollars ($100,000.00) which are not covered,
without reservation, by insurance and shall not discharge the same within a
period of thirty (30) days unless, pending further proceedings, execution
has not been commenced or, if commenced, has been effectively stayed;

(q)           a judgment creditor of
the Borrower shall obtain possession of any of the Bank’s collateral described
in any of the Loan Documents by any means, including (without implied
limitation) levy, distraint, replevin or self-help which is reasonably
likely to have a material adverse effect on the Borrower;

(r)            the construction of
the Expansion Facility is abandoned or shall be unreasonably delayed or be
discontinued for a period of fifteen (15) consecutive calendar days, in
each instance for reasons other than acts of God, fire, storm, adverse weather,
strikes, blackouts, labor difficulties, riots, terrorism, inability to obtain
materials, equipment or labor, governmental restrictions or any similar cause
not subject to the Borrower’s control and other than a change in the Design
Builder as provided in Section 7.01(u);

(s)           the Borrower at any
time prior to the completion of the construction of the Expansion Facility
shall delay construction or suffer construction to be delayed for any period of
time, for any reason whatsoever, so that the completion of the Expansion
Facility cannot be accomplished, in the reasonable judgment of the Bank, by the
Completion Date;

(t)            the Project is
materially damaged or destroyed by fire or other casualty;

(u)           Fagen, Inc. shall cease
to be the Design Builder and the Borrower has not replaced the Design Builder
within thirty (30) days following the termination or cessation of services
by the Design Builder to the satisfaction of the Bank, which Bank approval

 50
 

shall not be unreasonably
withheld, but which approval may require the replacement general contractor to
provide a completion bond in form reasonably satisfactory to the Bank;

(v)           the entities
contracting with the Borrower under any of the Material Contracts, or their
permitted assignees, shall cease to provide the services provided for therein,
and the Borrower has not within thirty (30) days following termination of
the foregoing hired a replacement contractor satisfactory to the Bank pursuant
to a written contract reasonably acceptable to the Bank, which Bank approval
will not be unreasonably withheld and caused such replacement Material Contract
to be collaterally assigned to the Bank on terms acceptable to the Bank;

(w)          the Borrower shall
establish a Subsidiary without the prior written consent of the Bank, except
for Akron; or

(x)            the Borrower fails to
timely provide to the Bank any document or certification, in a form acceptable
to the Bank, listed on the Post Closing Letter.

Section 7.02.  Rights and Remedies.  If an Event of Default shall have occurred
and be continuing, the Bank may refrain from making any further disbursements
hereunder (but the Bank may make disbursements after the occurrence of such an
Event of Default without thereby waiving its rights and remedies hereunder),
and the Bank may exercise any or all of the following rights and remedies:

(a)           the Bank may declare
its obligation to disburse funds relating to any or all Notes or issue Letters
of Credit to be terminated, whereupon the same shall forthwith terminate;

(b)           the Bank may declare
the entire unpaid principal amount of any or all Notes then outstanding, all
interest accrued and unpaid thereon and all other amounts payable under this
Agreement to be forthwith due and payable, whereupon such Notes, all such
accrued interest and all such amounts shall become and be forthwith due and
payable, without presentment, demand, protest or further notice of any kind,
all of which are hereby expressly waived by the Borrower;

(c)           the Bank may exercise
and enforce its rights and remedies under any or all of the Loan Documents;

(d)           the Bank may enter upon
the Property, if allowed under applicable law, and take possession thereof,
together with the Project and the Expansion Facility then in the course of
construction, and proceed either in its own name or in the name of the
Borrower, as the attorney-in-fact of the Borrower (which authority
is hereby granted by the Borrower and shall be deemed coupled with an interest
and is irrevocable by the Borrower) to complete or cause to be completed the
Expansion Facility, at the cost and expense of the Borrower.  If the Bank elects to complete or cause to be
completed the Expansion Facility, it may do so according to the Expansion
Facility Plans and the Design/Build Construction Contract, or according to such
changes, alterations or

 51
 

modifications in and to
the Expansion Facility Plans and the Design/Build Construction Contract, as the
Bank may deem reasonable and appropriate; and the Bank may enforce or cancel
all contracts let by the Borrower relating to construction of the Project,
and/or let other contracts which in the Bank’s sole judgment may seem
advisable; and the Borrower shall forthwith turn over and duly assign to the
Bank, as the Bank may from time to time require, contracts not already assigned
to the Bank relating to construction or operation of the Project, blueprints,
shop drawings, bonds, Permits, bills and statements of accounts pertaining to
the Project, whether paid or not, and any other instruments or records in the
possession of the Borrower pertaining to the Project.  The Borrower shall be liable under this Agreement
to pay to the Bank, on demand, any amount or amounts reasonably expended by the
Bank in so completing the Expansion Facility, together with any reasonable
costs, charges or expenses incident thereto or resulting therefrom, all of
which shall be secured by the Loan Documents. 
In the event that a proceeding is instituted against the Borrower for
recovery and reimbursement of any moneys expended by the Bank in connection
with the completion of the Expansion Facility, a statement of such expenditures,
verified by the affidavit of an officer of the Bank, shall be prima facie
evidence of the amounts so expended and of the propriety of, and the necessity
for, such expenditures, and the burden of proving to the contrary shall be upon
the Borrower.  The Bank shall have the
right to apply any funds which the Bank agrees to disburse hereunder to bring
about the completion of the Expansion Facility and to pay the costs thereof
and, if such money so agreed to be disbursed is insufficient, in the sole
judgment of the Bank, to complete the Expansion Facility, the Borrower agrees
to promptly deliver and pay to the Bank such sum or sums of money as the Bank
may from time to time demand for the purpose of completing the Expansion
Facility or of paying any liability, charge or expense which may have been
incurred or assumed by the Bank under or in performance of this Agreement or
for the purpose of completing the Expansion Facility.  It is expressly understood and agreed that in
no event shall the Bank be obligated, or liable in any way, to complete the
Expansion Facility or to pay for the costs of construction thereof beyond the
amount of the Construction Loan;

(e)           The Bank may exercise
any other rights and remedies available to the Bank by law or equity or in
accordance with any of the Loan Documents.

Section 7.03.  Cumulative Remedies.  All rights and remedies of the Bank provided
for in this Agreement or any of the Loan Documents are cumulative and may be
exercised singly or concurrently or in any combination thereof without waiving
or releasing any other rights the Bank has or may have. Any one or more
successive and/or concurrent actions may be brought hereon by the Bank against
the Borrower or the Guarantor, either as part of an action brought against the
Borrower or the Guarantor, or in one or more separate actions, as often as the
Bank deems advisable in the exercise of its sole and absolute discretion.

Section 7.04.  Right of Setoff.  Upon the occurrence and
during the continuance of any Event of Default, the Bank is hereby authorized
at any time, and from time to time, without written notice to the Borrower or
the General Partner (any such notice being expressly waived by the Borrower and
the General Partner), to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and other
indebtedness at any time owing by the Bank to or for the credit or the account
of the Borrower or the General Partner against any and

 52
 

all of the obligations of the Borrower or the General Partner now or
hereafter existing under this Agreement or the Notes or any other Loan
Document, irrespective of whether or not the Bank shall have made any demand
under this Agreement or the Notes or such other Loan Document and although such
obligations may be unmatured.  The Bank
agrees promptly to notify the Borrower after any such setoff and the
application thereof, however, the parties hereto agree that the failure to give
such notice shall in no way affect the validity of such setoff and the application.  The rights of the Bank under this Section
7.04 are in addition to other rights and remedies the Bank may have.

ARTICLE
VIII

MISCELLANEOUS

Section 8.01.  Inspections.  The Borrower and the Design Builder shall be
responsible for making inspections of the Expansion Facility during the course
of construction and shall determine to their own satisfaction that the work
done or materials supplied by the Design Builder or any Subcontractor to whom
payment is to be made out of each disbursement has been properly done or
supplied in accordance with the Design/Build Construction Contract with all
potential liens relating thereto released. 
If any work done or materials supplied by the Design Builder or any
Subcontractor are not satisfactory to the Borrower and/or the Design Builder
and the same is not remedied within the applicable period of time set forth in
the Design/Build Construction Contract or, as relevant, the contracts relating
to the Other Project Construction, the Borrower will immediately notify the
Bank in writing or by telephone of such fact. 
It is expressly understood and agreed that the Bank, the Disbursing
Agent, the Title Company, the Independent Inspector and any party designated by
the Bank may, but shall not be required to, conduct such inspections of the
Project as the Bank may deem necessary for the protection of the Bank’s
interest, and that any inspections which may be made of the Project by the Bank
will be made, solely for the benefit and protection of the Bank and that the
Borrower will not rely thereon.  Borrower
hereby agrees that it shall notify Design Builder in advance of any such
inspections of the Project of which the Borrower receives notice from the Bank,
the Disbursing Agent, the Title Company or any party designated by the Bank.

Section 8.02.  Post Closing Letter.  The Borrower and the Bank acknowledge that
the closing of the loans provided for herein may occur prior to the time the
Borrower has delivered to the Bank all of the documents and certifications
required by Bank pursuant to the terms and provisions of this Agreement.  In the event thereof, the Borrower agrees to
execute and deliver to the Bank on the Closing Date a post-closing letter in
the form attached hereto as Exhibit “U” attached hereto and incorporated herein
by this reference (the “Post Closing Letter”). 
The Borrower acknowledges and agrees that, notwithstanding any terms or
provisions of this Agreement to the contrary, the Bank is not, and shall not
be, required to fund any portion of the credit facilities provided for in this
Agreement until each of the documents and certifications described in the Post
Closing Letter have been delivered to Bank in form and content reasonably
acceptable to Bank.

Section 8.03.  Indemnification by Borrower.  The Borrower shall bear all loss, expense
(including reasonable attorneys’ fees) and damage in connection with, and
agrees to defend, indemnify and hold harmless the Bank, its directors,
officers, agents and employees from, all

 53

claims, demands and judgments made or recovered against the Bank, its
agents, servants and employees because of bodily injuries, including death, at
any time resulting therefrom, and/or because of damages to property (including
loss of use) from any cause whatsoever, arising out of, incidental to or in
connection with the Project or the construction of the Expansion Facility,
whether or not due to any act of omission or commission, including negligence
of the Borrower or the Design Builder or of their employees, directors,
officers, managers, members or agents, other than gross negligence or willful
misconduct of the Bank or its agents. 
The Borrower’s liability hereunder shall not be limited to the extent of
insurance carried by or provided by the Borrower or subject to any exclusion
from coverage in any insurance policy. 
The obligations of the Borrower under this Section shall survive the
payment of the Notes.

Section 8.04.  No Waiver; Cumulative Remedies.  No failure or delay on the part of the Bank
in exercising any right, power or remedy under the Loan Documents (unless a
particular limitation on the time for the Bank’s exercise or performance is
specified therein) shall operate as a waiver thereof nor shall any single or
partial exercise of any such right, power or remedy preclude any other or
further exercise thereof or the exercise of any other right, power or remedy
under the Loan Documents.  The remedies
provided in the Loan Documents are cumulative and not exclusive of any remedies
provided by law.

Section 8.05.  Amendments, Etc.  No amendment, modification, termination or
waiver of any provision of any of the Loan Documents or consent to any
departure by the Borrower therefrom shall be effective unless the same shall be
in writing and signed by the Bank and the Borrower, and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given.  No notice to or
demand on the Borrower in any case shall entitle the Borrower to any other or
further notice or demand in similar or other circumstances.

Section 8.06.  Addresses for Notices, Etc.  Except as otherwise expressly provided
herein, all notices, requests, demands and other communications provided for
under the Loan Documents shall be in writing and sent by mail, recognized
overnight courier or facsimile (if by facsimile with a confirmation mailed
within two (2) Banking Days thereafter), to the applicable party at its address
indicated below:

	
  

  	
  If to the Borrower:

  	
  LSCP, LLLP

  
	
   

  	
   

  	
  4808 F Avenue

  
	
   

  	
   

  	
  Marcus, Iowa 51035

  
	
   

  	
   

  	
  Attention: Steve Roe

  
	
   

  	
   

  	
  Facsimile: (712) 376-2815

  
	
   

  	
   

  	
   

  
	
   

  	
  If to the Bank:

  	
  First National Bank of Omaha

  
	
   

  	
   

  	
  1620 Dodge Street STOP 1050

  
	
   

  	
   

  	
  Omaha, NE 68197-1050

  
	
   

  	
   

  	
  Attention: Bradley J. Brummund

  
	
   

  	
   

  	
  Facsimile: (402) 633-3519

  

or, as to each party, at
such other address as shall be designated by such party in a written notice to
the other party complying as to delivery with the terms of this Section.  All such notices, requests, demands and other
communications, when mailed or sent by recognized overnight

 54
 

courier, shall be
effective when deposited in the mails, addressed as aforesaid, or, when sent by
facsimile, shall be effective when confirmation of receipt is received, except
that notices or requests to the Bank pursuant to any of the provisions
hereunder shall not be effective until actually received by the Bank.

Section 8.07.  Time of Essence.  Time is of the essence in the performance of
this Agreement.

Section 8.08.  Execution in Counterparts.  The Loan Documents may be executed in any
number of counterparts, each of which when so executed and delivered shall be
deemed to be an original and all of which counterparts of each instrument or
agreement, taken together, shall constitute but one and the same instrument.

Section 8.09.  Binding Effect, Assignment.  The Loan Documents to which they are parties
shall be binding upon and inure to the benefit of the Borrower and the Bank and
their respective successors and assigns, except that the Borrower shall not
have the right to assign any of its rights or obligations thereunder or any
interest therein without the prior written consent of the Bank, which consent
may be withheld by the Bank in its sole and absolute discretion.

Section 8.10.  Governing Law.  The Loan Documents, to the extent they do not
otherwise provide, shall be governed by, and construed in accordance with, the
laws of the State of Nebraska, other than conflict of law provisions thereof.

Section 8.11.  Submission to Jurisdiction; Venue.  Except to the extent the Loan Documents
otherwise provide, the Borrower hereby submits to the jurisdiction of any
federal court sitting in Omaha, Nebraska, in any action or proceeding arising
out of or relating to this Agreement or any of the other Loan Documents and
agrees that all claims in respect of the action or proceeding may be heard and
determined in any such court.  Except to
the extent the Loan Documents otherwise provide, the Borrower also agrees not
to bring any action or proceeding arising out of or relating to this Agreement
in any other court.  The Borrower waives
any defense of inconvenient forum to the maintenance of any action or
proceeding so brought and waives any bond, surety, or other security that might
be required of the Bank.  The Borrower
agrees that a final judgment in any action or proceeding so brought shall be
conclusive and may be enforced by suit on the judgment or in any other manner
provided by law or at equity.  Except to
the extent the Loan Documents otherwise provide, the Borrower hereby waives any
rights it may have to transfer or change the venue of any suit, action or other
proceeding brought against the Borrower by the Bank in accordance with this
Section 8.11 or in connection with this Agreement or any other Loan Documents.

Section 8.12.  Severability of Provisions.  In the event any one or more of the
provisions contained in this Agreement shall for any reason be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality
or unenforceability shall not in any way affect any other provision of this
Agreement, but this Agreement shall be construed as if such invalid, illegal or
unenforceable provision had never been contained herein.

 55
 

Section 8.13.  Headings.  Section headings in this Agreement are
included herein for convenience of reference only and shall not constitute a
part of this Agreement for any other purpose.

Section 8.14.  Integration.  This Agreement supersedes, replaces and
terminates any prior oral offers, negotiations, understandings or agreements
and any commitment letters or similar writings relating to any of the matters
contemplated herein, except to the extent specifically provided herein.

Section 8.15.  Participations.  Notwithstanding any other provision of this
Agreement, the Borrower understands that the Bank will enter into participation
agreements with other lenders whereby the Bank will allocate a certain
percentage of the Loans to them.  The
Borrower specifically permits and authorizes the Bank to exchange financial
information about the Borrower with actual or potential participants.  The Borrower acknowledges that, for the
convenience of all parties, this Agreement is being entered into with the Bank
only and that its obligations under this Agreement are undertaken for the
benefit of, and as an inducement to, each of the participating lenders as well
as the Bank, and the Borrower hereby grants to each of the participating
lenders to the extent of its participation in any Loan the right to set off
deposit accounts maintained by the Borrower with such participating
lender.  The Borrower understands that
the terms of such participation agreements with any of the participants will
limit the Bank’s rights to amend, waive or modify the terms and conditions of
this Agreement without the express written consent of all or a designated
percentage of such participants.

Section 8.16.  Prohibition Against Usury.  In no event, either before or after the
occurrence of an Event of Default, shall the amount of interest due under any
Note or other Loan Document exceed the maximum, lawful, non usurious interest
rate of the State of Nebraska or any other applicable law (the “Maximum Rate”).  The Notes and the other Loan Documents are
hereby expressly limited so that in no event whatsoever, whether by reason of
acceleration or otherwise, shall the amount paid, or agreed to be paid to the
Bank for the use, forbearance or detention of the sums advanced to the Borrower
exceed the Maximum Rate.  If fulfillment
of any provisions hereof, at the time performance of such provision shall be
due, shall involve the potential for transcending the Maximum Rate, the
obligation to be fulfilled shall be reduced to the Maximum Rate, and if from
any such circumstance the Bank shall ever receive as interest an amount which
would exceed the Maximum Rate, such excess shall be applied to the reduction of
the principal amount of the Obligations and not the payment of interest, or if
such excessive interest exceeds the unpaid balance of the principal amount of
the Obligations, such excess shall be refunded to the Borrower.  All sums paid and agreed to be paid to the
Bank for use, forbearance or detention of the indebtedness of the Borrower
shall, to the extent permitted by the laws of the State of Nebraska, be
amortized, prorated, allocated, and spread through the whole term of such
indebtedness so that the actual rate of interest on account of such
indebtedness is uniform throughout the term thereof.

Section 8.17.  Incorporation by Reference.  The recitals reflected above, and each
Exhibit, Schedule, Loan Document or other document referred to in this
Agreement, are incorporated herein by this reference.

 56
 

Section 8.18.  Jury Trial Waiver. THE BANK
AND THE BORROWER HEREBY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM,
OR COUNTERCLAIM, WHETHER IN CONTRACT OR TORT, AT LAW OR IN EQUITY, ARISING OUT
OF OR IN ANY WAY RELATED TO THIS AGREEMENT OR ANY OF THE LOAN DOCUMENTS.  NO EMPLOYEE OF THE BANK HAS AUTHORITY TO
WAIVE, CONDITION, OR MODIFY THE TERMS AND PROVISIONS OF THIS SECTION OF THIS
AGREEMENT.

Section
8.19.  CREDIT AGREEMENT.   A CREDIT AGREEMENT MUST BE IN WRITING TO BE
ENFORCEABLE UNDER NEBRASKA LAW.  TO
PROTECT THE PARTIES HERETO FROM ANY MISUNDERSTANDING OR DISAPPOINTMENTS, ANY
CONTRACT, PROMISE, UNDERTAKING, OR OFFER TO FORBEAR REPAYMENT OF MONEY OR TO
MAKE ANY OTHER FINANCIAL ACCOMMODATION IN CONNECTION WITH THIS LOAN OF MONEY OR
GRANT OR EXTENSION OF CREDIT, OR ANY AMENDMENT OF, CANCELLATION OF, WAIVER OF,
OR SUBSTITUTION FOR ANY OR ALL OF THE TERMS OR PROVISIONS OF ANY INSTRUMENT OR DOCUMENT
EXECUTED IN CONNECTION WITH THIS LOAN OF MONEY OR GRANT OR EXTENSION OF CREDIT,
MUST BE IN WRITING TO BE EFFECTIVE.

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

	
   

  	
  LSCP, LLLP,

  
	
   

  	
  an Iowa limited
  liability limited partnership

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Little Sioux Corn Processors, L.L.C.,

  
	
   

  	
   

  	
  its General Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
     Stephen G. Roe

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
     President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  FIRST NATIONAL BANK OF OMAHA,

  
	
   

  	
  a national banking association

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bradley J.
  Brummund

  
	
   

  	
   

  	
    Bradley J. Brummund, Vice President

  
	
   

  	
   

  	
   

  
	
  STATE OF

  	
     Nebraska

  	
   

  	
  )

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ) ss.

  	
   

  	
   

  	
   

  	
   

  
	
  COUNTY OF

  	
     Douglas

  	
   

  	
  )

  	
   

  	
   

  	
   

  	
   

  
											

 

 57
 

On this 5 day of April, 2007, before me, the
undersigned, a Notary Public, personally appeared Steve Roe, President
of Little Sioux Corn
Processors, L.L.C., General Partner of LSCP, LLLP, an Iowa limited liability
limited partnership, on behalf of said limited liability limited partnership,
who executed the foregoing instrument, and acknowledged that he executed the
same as his voluntary act and deed, as well as that of the limited liability
limited partnership.

	
   

  	
   

  	
  /s/ Celest M. Gorans

  
	
   

  	
  Notary Public

  	
   

  	
   

  
	
   

  	
  [

  	
  SEAL:   GENERAL NOTARY – State of
  Nebraska

  	
  ]

  
	
   

  	
  [

  	
   

  	
  CELEST M. GORANS

  	
  ]

  
	
   

  	
  [

  	
   

  	
  My Comm. Exp. Dec. 25, 2007

  	
  ]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STATE OF

  	
     Nebraska

  	
   

  	
  )

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ) ss.

  	
   

  	
   

  	
   

  	
   

  
	
  COUNTY OF

  	
     Douglas

  	
   

  	
  )

  	
   

  	
   

  	
   

  	
   

  
														

On this 5 day of
April, 2007, before me, the undersigned, a Notary Public, personally appeared
Bradley J. Brummund, on behalf of said entity as Vice President of First
National Bank of Omaha, a national banking association, who executed the
foregoing instrument, and acknowledged that he executed the same as his voluntary
act and deed, as well as that of the bank.

	
  

  	
   

  	
  /s/ Celest M. Gorans

  	 

	
   

  	
  Notary Public

  	
   

  
	
   

  	
  [

  	
  SEAL:   GENERAL NOTARY – State of
  Nebraska

  	
  ]

  	 

	
   

  	
  [

  	
   

  	
  CELEST M. GORANS

  	
  ]

  	 

	
   

  	
  [

  	
   

  	
  My Comm. Exp. Dec. 25, 2007

  	
  ]

  	 

 

 58

LIST OF EXHIBITS AND SCHEDULES

	
  Exhibit“A”

  	
  -

  	
  Property

  
	
   

  	
   

  	
   

  
	
  Exhibit “B”

  	
  -

  	
  Form of Construction Note

  
	
   

  	
   

  	
   

  
	
  Exhibit “C”

  	
  -

  	
  Form of Deposit Account Control Agreements

  
	
   

  	
   

  	
   

  
	
  Exhibit “D”

  	
  -

  	
  Form of Guaranty

  
	
   

  	
   

  	
   

  
	
  Exhibit “E”

  	
  -

  	
  Material Contracts

  
	
   

  	
   

  	
   

  
	
  Exhibit “F”

  	
  -

  	
  Form of Mortgage

  
	
   

  	
   

  	
   

  
	
  Exhibit “G”

  	
  -

  	
  Form of Operating Note

  
	
   

  	
   

  	
   

  
	
  Exhibit “H”

  	
  -

  	
  Permits

  
	
   

  	
   

  	
   

  
	
  Exhibit “I”

  	
  -

  	
  Subordination Agreement

  
	
   

  	
   

  	
   

  
	
  Exhibit “J”

  	
  -

  	
  Existing Swap Note

  
	
   

  	
   

  	
   

  
	
  Exhibit “K”

  	
  -

  	
  Existing Variable Rate Note

  
	
   

  	
   

  	
   

  
	
  Exhibit “L”

  	
  -

  	
  Existing Long Term Revolving Note

  
	
   

  	
   

  	
   

  
	
  Exhibit “M”

  	
  -

  	
  Existing Operating Note

  
	
   

  	
   

  	
   

  
	
  Exhibit “N”

  	
  -

  	
  Form of Swap Note

  
	
   

  	
   

  	
   

  
	
  Schedule I

  	
  -

  	
  Principal Payments on the Swap Note

  
	
   

  	
   

  	
   

  
	
  Exhibit “O”

  	
  -

  	
  Form of Variable Rate Note

  
	
   

  	
   

  	
   

  
	
  Exhibit “P”

  	
  -

  	
  Form of Long Term Revolving Note

  
	
   

  	
   

  	
   

  
	
  Exhibit “Q”

  	
  -

  	
  Form of Legal Opinion of Counsel

  
	
   

  	
   

  	
   

  
	
  Exhibit “R”

  	
  -

  	
  Title Insurance Endorsements

  
	
   

  	
   

  	
   

  
	
  Exhibit “S”

  	
  -

  	
  Borrower’s Projections

  
	
   

  	
   

  	
   

  
	
  Exhibit “T”

  	
  -

  	
  Depository Accounts

  
	
   

  	
   

  	
   

  
	
  Exhibit “U”

  	
  -

  	
  Post Closing Letter

  

 

EXHIBIT “A”

PROPERTY

Legal Description of Tract 1

A tract of land in the
fractional North Half of the Northeast One Quarter of Section 2, Township 92
North, Range 42 West of the 5th P.M., Cherokee County, Iowa, more particularly
described as follows:

Beginning at the North
Quarter Corner of Section 2, thence S 00°28’10” W (bearing assumed with all
subsequent bearings referenced there from) along the West line of Northeast
Quarter of Section 2 for a distance of 408.78 feet measured (409.15 feet
record) to the Northerly right of way line of the Chicago, Central &
Pacific Railroad Company; thence S 77°32’41” E along the Northerly right of way
line of said Chicago, Central and Pacific Railroad Company for a distance of
2,640.86 feet to the West right of way line of F Avenue; thence N 00°24’06” E
along said West right of way line for a distance of 702.05 feet; thence N 89°35’54”
W for a distance of 230.00 feet; thence N 00°24’06” E for a distance of 245.00
feet to the South right of way line of 480th Street; thence S 89°23’02” W along
said South right of way line for a distance of 248.92 feet; thence N 00°40’34”
W for a distance 55.00 feet to the North line of the fractional Northeast
Quarter of Section 2; thence S 89°23’02” W along the said North line of the
Northeast Quarter of Section 2 for a distance of 2,102.57 feet to the point of
beginning.

Said tract contains 40.03
acres more or less, with 1.59 acres for roadway easements.

Legal Description of
Tract 2

A tract of land in the
fractional North half of the Northeast One Quarter of Section 2, Township 92
North, Range 42 West of the 5th P.M. Cherokee County, Iowa, more particularly
described as follows:

Commencing at the
Southeast corner of the fractional Northeast Quarter of the Northeast Quarter
of Section 2; thence S 89°48’24” W (bearing assumed with all subsequent
bearings referenced there from) along the South line of North Half of the
Northeast Quarter of Section 2 for a distance of 55.00 feet to the point of
beginning; thence continuing S 89°48’24” W along the South line of the North
half of the Northeast Quarter for a distance of 2,598.96 feet to the Southwest
corner of fractional Northwest Quarter of the Northeast Quarter of Section 2;
thence N 00°28’10” E along the West line of the fractional Northwest Quarter of
the Northeast Quarter of Section 2 for a distance of 899.57 feet to the
Southerly right of way line of the Chicago, Central and Pacific Railroad
Company; thence S 77°32’41” E along the said right of way line of the Chicago,
Central and Pacific Railroad Company for a distance of 2,656.32 feet to the
West right of way line of F Avenue; thence S 00°24’06” W along said West right
of way line of F Avenue for a distance of 317.87 feet to the point of
beginning.

Said tract contains 36.31
acres more or less.

Legal Description of Tract 3

A tract of land in the
Northeast Quarter of the Northwest Quarter (NE 1⁄4 NW 1⁄4) and the Northwest
Quarter of the Northwest Quarter (NW 1⁄4 NW 1⁄4) of Section 2, Township 92 North,
Range 42 West of the 5th P.M., Cherokee County, Iowa, more particularly described
as follows:  Beginning at the Northeast
Corner of the NW 1⁄4 of said Section 2; thence South 89°19’10” West (bearing
assumed with all subsequent bearings referenced therefrom) along the North line
of said NW1⁄4 of Section 2 for a distance of 1,759.48 feet; thence South 77°32’41”
East along the Northerly right of way line of the Chicago, Central &
Pacific Railroad for a distance of 1,798.33 feet; thence North 00°28’10” East,
along the East line of said NW1⁄4  of
Section 2 for a distance of 408.78 feet to the Point of Beginning.

Said tract contains 8.25
acres more or less, with 1.47 acres for easements.

EXHIBIT “B”

FORM OF CONSTRUCTION NOTE

[To be inserted or
attached.]

EXHIBIT “C”

FORM OF DEPOSIT ACCOUNT CONTROL AGREEMENTS

[To be inserted or
attached.]

EXHIBIT “D”

FORM OF GUARANTY

[To be inserted or
attached.]

EXHIBIT “E”

MATERIAL CONTRACTS

(1)           the Design/Build
Construction Contract;

(2)           the License Agreement,
dated as of September 20, 2006, by and between the Borrower and ICM, Inc. a
Kansas corporation;

(3)           the Ethanol Marketing
Contract;

(4)           the Distiller’s Grain
Marketing Contract;

(5)           the Full Service
Integrated Risk Management Contract, dated as of July 16, 2002, by and between
the Borrower and FCStone;

(6)           the Letter of
Understanding relating to the increased electrical supply requirements of the
Project as a result of the Expansion Facility, dated November 7, 2005, from
MidAmerican Energy Company to the Borrower; and

(7)           the Precedent
Agreement, dated August 8, 2006, by and between the Borrower and Northern
Natural Gas Company.

EXHIBIT “F”

FORM OF MORTGAGE

[To be inserted or attached.]

EXHIBIT “G”

FORM OF OPERATING NOTE

[To be inserted or
attached.]

EXHIBIT “H”

PERMITS

(1)           An air emissions
permit, which allows, or will allow, the Borrower after the Completion Date to
operate the Project on the Property at maximum operational capacity.

(2)           All permits required in
connection with the construction and operation of all aboveground storage tanks
included in the Plans for the Facility, including, but not limited to, all
permits from the State Fire Marshal required for the installation of such
aboveground storage tanks.

(3)           A National Pollution
Discharge Elimination System Construction Permit for any storm water that is
discharged during construction and after construction of the Project and any
applicable state storm water discharge.

(4)           All construction,
building, excavation and flood plain development permits required to construct
the facility on the Property.

(5)           All permits required in
connection with the discharge of waste water from the Project, including, but
not limited to, well and septic system permits.

(6)           All permits required
relating to the treatment and augmentation of the water supply to the Project.

(7)           All permits required in
connection with highway and railway access to the Project.

(8)           The Alcohol Fuel
Producer’s Permit issued by the Alcohol and Tobacco Tax and Trade Bureau for
the production of fuel grade alcohol.

(9)           All mechanical,
electrical, and natural gas permits relating to constructing and operating the
facility on the Property.

(10)         All fire protection
permits.

(11)         The Section 10/404
Nationwide General Permit from the Army Corps of Engineers relating to the
determination/delineation of wetlands on the Property.

(12)         All permits relating to
the Fish and Wildlife Coordination Act and the Endangered Species Act from the
U.S. Department of the Interior, Fish and Wildlife Services.

(13)         All permits relating to
the Section 112(r) Risk Management Plan from the U.S. Environmental Protection
Agency and the Iowa Department of Public Health and Bureau of Environmental
Health Services.

(14)         All permits relating to
the Process Safety Management Plan from the U.S. Occupational Safety and Health
Administration.

(15)         All permits relating to
the Spill Prevention Control and Countermeasure Plan from the U.S.
Environmental Protection Agency and the Iowa Department of Public Health and
Bureau of Environmental Health Services.

(16)         All permits relating to
the Emergency Planning and Community Right-to-Know Notification from the U.S.
Environmental Protection Agency and the Iowa Department of Public Health and
Bureau of Environmental Health Services.

(17)         All permits relating to
the Storm Water Pollution Prevention Plan from the Iowa Department of Public Health
and Bureau of Environmental Health Services

(18)         All
historical/archeological permits required by the Code of Iowa and the State
Historical Society of Iowa.

(19)         All
permits required by the local zoning ordinances of the City of Marcus and the
County of Cherokee, Iowa.

EXHIBIT “I”

SUBORDINATION AGREEMENT

[To be inserted or
attached.]

EXHIBIT “J”

EXISTING SWAP NOTE

[To be inserted or
attached.]

EXHIBIT “K”

EXISTING VARIABLE RATE NOTE

[To be inserted or attached.]

EXHIBIT “L”

EXISTING LONG TERM REVOLVING NOTE

[To be inserted or
attached.]

EXHIBIT “M”

EXISTING OPERATING NOTE

[To be inserted or
attached.]

EXHIBIT “N”

FORM OF SWAP NOTE

[To be inserted or
attached.]

SCHEDULE I

PRINCIPAL PAYMENTS ON THE SWAP NOTE

	
  

  	
   

  	
  Principal

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  612,194.15

  	
   

  
	
  2

  	
   

  	
  616,441.62

  	
   

  
	
  3

  	
   

  	
  621,046.22

  	
   

  
	
  4

  	
   

  	
  633,679.68

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  654,091.59

  	
   

  
	
  6

  	
   

  	
  667,252.64

  	
   

  
	
  7

  	
   

  	
  673,449.21

  	
   

  
	
  8

  	
   

  	
  687,148.67

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  714,983.70

  	
   

  
	
  10

  	
   

  	
  722,441.51

  	
   

  
	
  11

  	
   

  	
  730,367.22

  	
   

  
	
  12

  	
   

  	
  745,224.51

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  772,952.73

  	
   

  
	
  14

  	
   

  	
  782,221.05

  	
   

  
	
  15

  	
   

  	
  792,019.72

  	
   

  
	
  16

  	
   

  	
  808,131.17

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  835,743.69

  	
   

  
	
  18

  	
   

  	
  846,973.11

  	
   

  
	
  19

  	
   

  	
  858,800.55

  	
   

  
	
  20

  	
   

  	
  22,724,837.26

  	
   

  

 

EXHIBIT “O”

FORM OF VARIABLE RATE NOTE

[To be inserted or
attached.]

EXHIBIT “P”

FORM OF LONG TERM REVOLVING NOTE

[To be inserted or
attached.]

EXHIBIT “Q”

FORM OF LEGAL OPINION OF COUNSEL

[To be inserted or
attached.]

EXHIBIT “R”

TITLE INSURANCE ENDORSEMENTS

(1)                                  Extended
Coverage Endorsement (Deletion of all standard exceptions, including deletion
of the mechanic’s lien exception)

(2)                                  Access
Endorsement

(3)                                  Arbitration
Endorsement

(4)                                  Comprehensive
Endorsement  (ALTA Form 9:   Restrictions, Encroachments, Minerals)

(5)                                  Creditor’s
Rights Endorsement

(6)                                  Doing
Business Endorsement

(7)                                  Survey
Endorsement

(8)                                  Zoning
Endorsement (ALTA Form 3.1 Revised)

(9)                                  Tax
Parcel Endorsement

(10)                            Usury
Endorsement

(11)                            Line
of Credit Endorsement (Revised)

(12)                            Variable
Rate Endorsement

(13)                            Gap
Endorsement

(14)                            Contiguity
Endorsement

EXHIBIT “S”

BORROWER’S PROJECTIONS

[To be inserted or
attached.]

EXHIBIT “T”

DEPOSITORY ACCOUNTS

Farmers State Bank, Marcus, Iowa
(All operating company accounts)

Account 3297659 - AFLAC Flex Plan
Distribution Account

Account 651435 - Savings Account

Account
3297535 - Regular Checking Account

Cherokee State Bank, Cherokee,
Iowa

Account
132810 - Little Sioux Corn Processors, LLC Checking Account

EXHIBIT “U”

POST CLOSING LETTER

[To be inserted or
attached.]Exhibit 10.1

EXECUTION COPY

FIRST AMENDMENT

TO AMENDED AND RESTATED CREDIT AGREEMENT

THIS FIRST
AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT, dated as of May 11, 2007
(this “Amendment”), to the Existing Credit Agreement is among EQUIFAX
INC., a Georgia corporation (the “Company”), EQUIFAX PLC, a public
company limited by shares organized under the laws of England and Wales
(together with the Company, the “Borrowers”), the Lenders party hereto
and SUNTRUST BANK, as Administrative Agent (all capitalized terms used herein
and defined in Section 1.1 are used herein as therein defined).

W
I  T  N  E  S  S  E  T  H:

WHEREAS, the Borrowers, the
Lenders and the Administrative Agent are all parties to the Amended and
Restated Credit Agreement, dated as of July 24, 2006 (as amended or otherwise
modified prior to the date hereof, the “Existing Credit Agreement”, and
as amended by this Amendment and as the same may be further amended,
supplemented, amended and restated or otherwise modified from time to time, the
“Credit Agreement”); and

WHEREAS, the Borrowers have
requested that the Lenders agree to amend the Existing Credit Agreement, and
the Lenders are willing, on the terms and subject to the conditions hereinafter
set forth, to agree to the amendment set forth below;

NOW, THEREFORE, the parties
hereto hereby covenant and agree as follows:

ARTICLE I

DEFINITIONS

SECTION 1.1.  Certain
Definitions.  The following terms
when used in this Amendment shall have the following meanings (such meanings to
be equally applicable to the singular and plural forms thereof):

“Amendment” is
defined in the preamble.

“Amendment Effective Date”
is defined in Article III.

“Borrowers” is
defined in the preamble.

“Company” is defined
in the preamble.

“Credit Agreement” is
defined in the first recital.

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

SECTION 1.2.  Other
Definitions.  Capitalized terms for
which meanings are provided in the Existing Credit Agreement are, unless
otherwise defined herein or the context otherwise requires, used in this
Amendment with such meanings.

ARTICLE II

AMENDMENT TO EXISTING CREDIT AGREEMENT

Subject to the occurrence of
the Amendment Effective Date, the Existing Credit Agreement is hereby amended
in accordance with this Article II.

SECTION 2.1.  Amendment to Section 9.8.  Section 9.8 of the
Existing Credit Agreement is hereby amended in its entirety to read as follows:

SECTION 9.8  Limitation on
Restricted Payments.

No Borrower will, nor will it permit any of its
Subsidiaries to, directly or indirectly, declare, order, make or set apart any
sum for or pay any Restricted Payment at any time that a Default or Event of
Default has occurred and is continuing or would result from such Restricted
Payment.

ARTICLE III

CONDITIONS TO EFFECTIVENESS

This Amendment shall become effective on the date (the
“Amendment Effective Date”) when each of the conditions set forth in
this Article have been satisfied.

SECTION 3.1.  Execution of Counterparts.  The Administrative Agent shall have received
counterparts of this Amendment duly executed and delivered on behalf of the
Borrowers and the Required Lenders.

SECTION 3.2.  Expenses.  The Administrative Agent and the Arrangers
shall have received all expenses due and payable pursuant to Section 13.2 of
the Credit Agreement, including without limitation all reasonable and actual
fees and disbursements of counsel for the Administrative Agent and the
Arrangers.

SECTION 3.3.  Increase of Commitments.  All conditions precedent to the increase of
the Aggregate Revolving Credit Commitments to $850,000,000, effective as of May 15, 2007, shall have been satisfied.

 2
 

ARTICLE IV

MISCELLANEOUS

SECTION 4.1.  Cross-References.  References in this Amendment to any Article
or Section are, unless otherwise specified, to such Article or Section of this
Amendment.

SECTION 4.2.  Loan Document
Pursuant to Existing Credit Agreement. 
This Amendment is a Loan Document executed pursuant to the Existing
Credit Agreement and shall (unless otherwise expressly indicated therein) be
construed, administered and applied in accordance with all of the terms and
provisions of the Existing Credit Agreement, as amended hereby, including
Article XIII thereof.

SECTION 4.3.  Successors and
Assigns.  The provisions of
this Amendment shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns.

SECTION 4.4.  Counterparts.  This Amendment may be executed in any
number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and shall be binding upon all parties, their successors and assigns, and all of
which taken together shall constitute one and the same agreement.  Delivery of any executed counterpart of a
signature page of this Amendment by telecopy shall be effective as delivery of
a manually executed counterpart of this Amendment.

SECTION 4.5.  Governing Law.  THIS
AMENDMENT SHALL BE GOVERNED BY, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF GEORGIA, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW
PRINCIPLES THEREOF.

SECTION 4.6.  Full Force and
Effect; Limited Amendment. 
Except as expressly amended hereby, all of the representations,
warranties, terms, covenants, conditions and other provisions of the Existing
Credit Agreement and the Loan Documents shall remain unchanged and shall
continue to be, and shall remain, in full force and effect in accordance with
their respective terms.  The amendment
set forth herein shall be limited precisely as provided for herein to the provision
expressly amended herein and shall not be deemed to be an amendment to, waiver
of, consent to or modification of any other term or provision of the Existing
Credit Agreement or any other Loan Document or of any transaction or further or
future action on the part of any Borrower which would require the consent of
the Lenders under the Existing Credit Agreement or any of the Loan Documents.

SECTION 4.7.  Representations
and Warranties.  To induce the
Lenders to execute and deliver this Amendment, the Borrowers hereby represent
and warrant to the Lenders on the Amendment Effective Date that no Default or
Event of Default exists and all statements set forth in clause (a) of Section
5.2 of the Credit Agreement are true and correct as of such date, except to the
extent that any such statement expressly relates to an earlier date (in which
case such statement was true and correct on and as of such earlier date).

 3

IN WITNESS WHEREOF, the
parties hereto have executed and delivered this Amendment as of the date first
above written.

	
  BORROWERS:

  	
   

  	
  EQUIFAX INC.

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EQUIFAX PLC

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
									

 

[SIGNATURE PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  LENDERS:

  	
   

  	
  SUNTRUST BANK

  as Administrative Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANK OF AMERICA, N.A.

  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
									

 

[SIGNATURE PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  

  	
   

  	
  WACHOVIA BANK, NATIONAL

  ASSOCIATION

  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

[SIGNATURE PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  

  	
   

  	
  [JP MORGAN/CITIGROUP]

  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

[SIGNATURE PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  

  	
   

  	
  THE BANK OF NEW YORK 

  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

[SIGNATURE PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  

  	
   

  	
  THE ROYAL BANK OF SCOTLAND PLC

  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

[SIGNATURE PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  

  	
   

  	
  MIZUHO CORPORATE BANK, LTD. 

  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

[SIGNATURE PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  

  	
   

  	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION

  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

[SIGNATURE PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

	
  

  	
  [LASALLE]

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

[SIGNATURE
PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  

  	
  REGIONS BANK 

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

[SIGNATURE
PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  

  	
  BEAR STEARNS CORPORATE

  
	
   

  	
  LENDING INC.

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

[SIGNATURE
PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  

  	
  BNP PARIBAS

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

[SIGNATURE
PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  

  	
  THE NORTHERN TRUST COMPANY

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

[SIGNATURE
PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

EXECUTION VERSION

SECOND AMENDMENT

TO AMENDED AND
RESTATED CREDIT AGREEMENT

THIS
SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT, dated as of May 15,
2007 (this “Amendment”), to the Existing Credit Agreement is among
EQUIFAX INC., a Georgia corporation (the “Company”), EQUIFAX PLC, a
public company limited by shares organized under the laws of England and Wales
(together with the Company, the “Borrowers”), the Lenders party hereto
and SUNTRUST BANK, as Administrative Agent (all capitalized terms used herein
and defined in Section 1.1 are used herein as therein defined).

W
I  T  N  E  S  S  E  T  H:

WHEREAS,
the Borrowers, the Lenders and the Administrative Agent are all parties to the
Amended and Restated Credit Agreement, dated as of July 24, 2006 (as amended or
otherwise modified prior to the date hereof, the “Existing Credit Agreement”,
and as amended by this Amendment and as the same may be further amended,
supplemented, amended and restated or otherwise modified from time to time, the
“Credit Agreement”); and

WHEREAS,
the Borrowers have requested that the Lenders agree to amend the Existing
Credit Agreement, and the Lenders are willing, on the terms and subject to the
conditions hereinafter set forth, to agree to the amendment set forth below;

NOW,
THEREFORE, the parties hereto hereby covenant and agree as follows:

ARTICLE I

DEFINITIONS

SECTION 1.1.  Certain Definitions.  The following terms when used in this
Amendment shall have the following meanings (such meanings to be equally
applicable to the singular and plural forms thereof):

“Amendment”
is defined in the preamble.

“Amendment
Effective Date” is defined in Article III.

“Borrowers”
is defined in the preamble.

“Company”
is defined in the preamble.

“Credit
Agreement” is defined in the first recital.

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

SECTION 1.2.  Other Definitions.  Capitalized terms for which meanings are
provided in the Existing Credit Agreement are, unless otherwise defined herein
or the context otherwise requires, used in this Amendment with such meanings.

ARTICLE II

AMENDMENTS TO EXISTING CREDIT AGREEMENT

Subject
to the occurrence of the Amendment Effective Date, the Existing Credit
Agreement is hereby amended in accordance with this Article II.

SECTION 2.1.  Amendment
to Section 5.2(a).  Section 5.2(a) of
the Existing Credit Agreement is hereby amended by inserting the following
parenthetical “(excluding Section 6.1(n))” immediately following the reference
to “Article VI” appearing therein.

SECTION 2.2.  Amendment to Section 9.3.  Section
9.3 of the Existing Credit Agreement is hereby amended by (a) deleting the word
“and” appearing at the end of clause (h) thereof; (b) inserting the text “(i)
Debt set forth on Schedule 9.3(i); and” immediately after clause (h)
thereof; and (c) relettering clause (i) thereof accordingly.

SECTION 2.3.  Schedule
9.3(i).  The Schedules to the
Existing Credit Agreement are hereby amended by inserting Schedule 9.3(i), in
the form attached hereto as Exhibit A, in the appropriate sequence and
by amending the Table of Contents to the Existing Credit Agreement to reflect
such insertion.

ARTICLE III

CONDITIONS TO EFFECTIVENESS

SECTION 3.1.  This
Amendment shall become effective on the date (the “Amendment Effective Date”)
when the Administrative Agent shall have received counterparts of this
Amendment duly executed and delivered on behalf of the Borrowers and the
Required Lenders.

ARTICLE IV

MISCELLANEOUS

SECTION 4.1.  Cross-References.  References in this Amendment to any Article
or Section are, unless otherwise specified, to such Article or Section of this
Amendment.

SECTION 4.2.  Loan Document Pursuant to Existing Credit
Agreement.  This Amendment is a Loan
Document executed pursuant to the Existing Credit Agreement and shall (unless
otherwise expressly indicated therein) be construed, administered and applied
in

 2
 

accordance with all of the terms and provisions of the Existing Credit
Agreement, as amended hereby, including Article XIII thereof.

SECTION 4.3.  Successors and Assigns.  The provisions of this Amendment shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.

SECTION 4.4.  Counterparts.  This Amendment may be executed in any
number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and shall be binding upon all parties, their successors and assigns, and all of
which taken together shall constitute one and the same agreement.  Delivery of any executed counterpart of a
signature page of this Amendment by telecopy shall be effective as delivery of
a manually executed counterpart of this Amendment.

SECTION 4.5.  Governing Law.  THIS
AMENDMENT SHALL BE GOVERNED BY, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF GEORGIA, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW
PRINCIPLES THEREOF.

SECTION 4.6.  Full Force and Effect; Limited Amendment.  Except as expressly amended hereby, all
of the representations, warranties, terms, covenants, conditions and other
provisions of the Existing Credit Agreement and the Loan Documents shall remain
unchanged and shall continue to be, and shall remain, in full force and effect
in accordance with their respective terms. 
The amendment set forth herein shall be limited precisely as provided
for herein to the provision expressly amended herein and shall not be deemed to
be an amendment to, waiver of, consent to or modification of any other term or
provision of the Existing Credit Agreement or any other Loan Document or of any
transaction or further or future action on the part of any Borrower which would
require the consent of the Lenders under the Existing Credit Agreement or any
of the Loan Documents.

SECTION 4.7.  Representations and Warranties.  To induce the Lenders to execute and deliver
this Amendment, the Borrowers hereby represent and warrant to the Lenders on
the Amendment Effective Date that no Default or Event of Default exists and all
statements set forth in clause (a) of Section 5.2 of the Credit Agreement are
true and correct as of such date, except to the extent that any such statement
expressly relates to an earlier date (in which case such statement was true and
correct on and as of such earlier date).

 3

   IN WITNESS WHEREOF, the parties hereto have
executed and delivered this Amendment as of the date first above written.

	
  BORROWERS:

  	
  EQUIFAX INC.

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EQUIFAX PLC

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

[SIGNATURE
PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  LENDERS:

  	
  SUNTRUST BANK

  	
   

  
	
   

  	
  as Administrative Agent and as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  	
   

  
	
   

  	
  as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

[SIGNATURE
PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  

  	
  WACHOVIA BANK, NATIONAL

  ASSOCIATION

  	
   

  
	
   

  	
  as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

[SIGNATURE
PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  

  	
  [JP MORGAN/CITIGROUP]

  	
   

  
	
   

  	
  as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

[SIGNATURE
PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  

  	
  THE BANK OF NEW YORK

  	
   

  
	
   

  	
  as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

[SIGNATURE
PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  

  	
  THE ROYAL BANK OF SCOTLAND PLC

  	
   

  
	
   

  	
  as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

[SIGNATURE
PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  

  	
  MIZUHO CORPORATE BANK (USA)

  	
   

  
	
   

  	
  as a Lender

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

[SIGNATURE
PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

	
  

  	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

[SIGNATURE
PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  

  	
  [LASALLE]

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

[SIGNATURE
PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  

  	
  REGIONS BANK 

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

[SIGNATURE
PAGE TO FIRST AMENDMENT – EQUIFAX INC.]

 

	
  

  	
  BEAR STEARNS CORPORATE

  
	
   

  	
  LENDING INC.

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

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  BNP PARIBAS

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

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  THE NORTHERN TRUST COMPANY

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

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EXHIBIT A

Schedule 9.3(i)

Subsidiary Debt

$75.0
million of 7.34% notes maturing May 2014 between TALX Corp. and a group of
investors.  Such notes are to be assumed
by the Borrower’s Subsidiary, Chipper Corporation (to be renamed TALX
Corporation), upon the closing of the Borrower’s merger with TALX Corp.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]