Document:

ex_318325.htm

Exhibit 4(vi)

 

 

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE 

SECURITIES EXCHANGE ACT OF 1934

 

As of September 30, 2021, Southwest Iowa Renewable Energy, LLC (“Company,” “we,” “us,” or “our”) has the following securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): Series A Membership Units (the “Units”).

 

Description of Units

 

The following description of our Units is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to our Fifth Amended and Restated Operating Agreement dated June 19, 2020 (the “Operating Agreement”) and our Articles of Organization filed with the Iowa Secretary of State on March 28, 2005 (the “Articles”) incorporated by reference as exhibits to the Annual Report on Form 10-K for the year ended September 30, 2021 of which this Exhibit 4(vi) is a part. We encourage you to read our Operating Agreement, Articles, and the applicable provisions of the Revised Uniform Limited Liability Company Act, Chapter 489 of the Code of Iowa (the “Act”), for additional information. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Annual Report on Form 10-K of which this Exhibit 4(vi) is a part.

 

Authorized Units

 

The Units are our only series of equity securities currently authorized under our Operating Agreement and have no par value. As of September 30, 2021, we have 8,975 Units issued and outstanding.

 

The Company’s Board of Directors may cause the Company to issue additional Units, from time to time, for such consideration as may be agreed to between the Board of Directors and the person(s) acquiring such Units. Additionally, the Board of Directors may from time to time create such additional and different classes of equity securities, represented by different classes of units, and issue such units to new or existing Members on such terms and conditions as the Board of Directors may determine. Such additional and different classes of units may have different rights, powers and preferences, which may be superior to those of existing Units.

 

Voting Rights

 

The Articles and the Operating Agreement provide that we are a manager-managed limited liability company within the meaning of the Act, meaning that we are managed by our elected Board of Directors, and not by our Members.  Our Board of Directors is comprised of between five and seven directors (the “Directors”) as established by the Board of Directors from time to time, and the Board is empowered to do all things required to manage our affairs, subject to any specific voting rights vested in the Members.  At present, our Board of Directors is composed of five Directors.

 

Members holding our Units have the right to elect the Directors; provided, however, that the terms of the directorships are staggered into four classes based on their term of office, with the number of Directors in each such class to be determined by the Directors, but with each class to be as nearly equal in number as possible. Each Director is elected to serve a term of four years. Staggering the terms of the Directors means that Members can only change control of us by replacing a majority of the Directors then in office, which would take two to three years depending on the size of the Board of Directors then established and the number of Directors in the classes soonest up for reelection.

 

 

 

 

Exhibit 4(vi)

 

Members holding our Units elect the Directors by majority vote. Additionally, (i) all Members holding Units must approve, by unanimous vote, any Board decision to (A) cause or permit us to engage in an activity which is inconsistent with our purposes, (B) engage in an activity which would act in contravention of the Operating Agreement or make it impossible to carry on our business, or (C) possess our property or assign our property for other than our purposes; and (ii) 66 2/3% of all Members holding Units must approve: (W) the merger, consolidation, sale or disposal of all or substantially all of our property, (X) our election to be treated as a corporation for tax purposes, (Y) our acquisition of securities from, or lending money to, a Director, Member, or any of their Affiliates, or (Z) our dissolution. Each Unit entitles the Member holding it to one vote on any matter.

 

Modifications or Alterations to the Rights of Members

 

The Company’s Operating Agreement may only be amended by amendments proposed by the Directors. Following any such proposal, the Directors shall submit to the Members a verbatim statement of any proposed amendment, and the Directors shall include therewith a recommendation as to the proposed amendment. A proposed amendment shall be adopted only if approved by the affirmative vote of a majority of the “Membership Voting Interests” (as defined in the Operating Agreement) represented at a meeting of the Members at which a quorum of the Members is present. At present the Units are the only Membership Voting Interests in the Company. If the Company were to issue additional classes of membership interest, however, and such interest had the characteristics of Membership Voting Interests under the Company’s Operating Agreement, then the rights of the Members holding out Units could be modified otherwise than by a vote of a majority or more of such Units, voting as a class, unless an amendment requiring such authorization were added to the Operating Agreement in connection with the creation of such additional class of membership interest.

 

Dividend Rights 

 

Under the terms of our Operating Agreement, Members holding Units may receive distributions when and as determined by our Board, and allocations of our profits and losses are made based upon each Member’s proportionate ownership of our Units.  

 

Liquidation Rights 

 

Members holding Units will share, upon liquidation and to the extent available for distribution, in distributions of cash and other assets to the holders of Units in accordance with the positive balance in their capital accounts, after giving effect to all distributions and allocations for all periods.

 

Other Rights, Preferences, and Restrictions

 

Our Units have no redemption provisions, conversion or exchange rights. There is no active trading market for our Units. To maintain our partnership tax status, our units may not be publicly traded and our Board of Directors will not approve transfer requests which would cause the Company to be characterized as a publicly traded partnership under the regulations adopted under the Internal Revenue Code of 1986, as amended. Within applicable tax regulations, we use a qualified matching service (“QMS”) to provide a limited market for out Units to our Members, but we have not and will not apply for listing of the Units on any stock exchange. As a result, while a limited market for our Units may develop through the QMS, Members may not sell Units readily, and use of the QMS is subject to a variety of conditions and limitations. The transfer of our Units is also restricted by our Operating Agreement unless the Board of Directors approves such a transfer. Finally, Exhibit 4(v) to this Annual Report on Form 10-K for the year ended September 30, 2021 of which this Exhibit 4(vi) is a part contains the Company’s Unit Transfer Policy which contains key requirements for any transfer of Units to be approved by the Board of Directors.

 

 

 

 

Exhibit 4(vi)

 

Fully Paid and Nonassessable

 

All of the outstanding Units are fully paid and nonassessable.

 

Listing

 

Out Units are not listed on any national securities exchange. See the caption “Other Rights, Preferences, and Restrictions” above for more information regarding restrictions on the alienability and liquidity of our Units.

 

Anti-Takeover Effects of Provisions in our Articles and Operating Agreement

 

Certain provisions contained in our Articles and Operating Agreement may be deemed to have an anti-takeover effect or may delay, defer or prevent a tender offer or takeover attempt that a Member holding Units might consider in such Member's best interests, including those attempts that might result in a premium being paid over the market price for the Units held by such Member.

 

	 	
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			Size of Board: The size of the Board of Directors is determined by the Board of Directors, provided that the number of directors must be at least five persons and no more than seven persons. Our Board of Directors is also staggered in term. For more information on these staggered terms, see the caption “Voting Rights” above.

			

 

	 	
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			Director Vacancies: Vacancies on the Board of Directors, including vacancies resulting from an enlargement of the Board of Directors, are filled only by vote of a majority of our directors then in office, even if less than a quorum remains on the Board. A Director elected to fill a vacancy is elected for the unexpired term of such Director’s predecessor in office.

			

 

	 	
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			Meetings: Meetings of Members can only be called by the Board of Directors.

			

 

	 	
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			Advance Notice Requirements: Our Operating Agreement contains provisions requiring advance notice be delivered to the Company of any business to be brought by a Member before an annual meeting and providing for procedures to be followed by Members in nominating persons for election to the Board of Directors. Members at an annual meeting can only consider proposals or nominations specified in the notice of meeting or brought before the meeting by or at the direction of the Board of Directors or by a Member of record on the record date for the meeting, entitled to vote at the meeting and who has delivered timely written notice in proper form to the Company of the Member’s intention to bring such business before the meeting. These provisions may have the effect of delaying until the next Member meeting certain actions that are otherwise favored by the holders of a majority of our Units.

			

 

	 	
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			Issuance of New or Additional Class of Equity: The Board of Directors may by resolution establish one or more new or additional series of equity securities, represented by units, having such number of units, designation, relative voting rights, distribution rates, liquidation or other rights, preferences and limitations as may be fixed by the Board of Directors without any further Member approval. Such rights, preferences, privileges and limitations may have the effect of impeding or discouraging the acquisition or control of the Company.EX-10.1

 Exhibit 10.1 

EXEUCTION VERSION 

EIGHTH AMENDMENT TO UNCOMMITTED MASTER REPURCHASE AND SECURITIES 

CONTRACT AGREEMENT 

THIS EIGHTH AMENDMENT TO UNCOMMITTED MASTER REPURCHASE AND SECURITIES CONTRACT AGREEMENT (this “Amendment”),
dated as of December 17, 2021, is by and between GOLDMAN SACHS BANK USA, a New York state-chartered bank, as buyer (“Buyer”) and FS CREIT FINANCE GS-1 LLC, a Delaware
limited liability company, as seller (“Seller”). Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Master Repurchase Agreement (as defined below). 

W I T N E S S E T H: 

WHEREAS, Seller and Buyer have entered into that certain Uncommitted Master Repurchase and Securities Contract Agreement, dated as of
January 26, 2018, as amended by that certain First Amendment to Uncommitted Master Repurchase and Securities Contract Agreement, dated as of June 6, 2018, as amended by that certain Second Amendment to Uncommitted Master Repurchase and
Securities Contract Agreement, dated as of February 20, 2019, as amended by that certain Third Amendment to Uncommitted Master Repurchase and Securities Contract Agreement and First Amendment to Guarantee Agreement, dated as of
December 19, 2019, as amended by that certain Fourth Amendment to Uncommitted Master Repurchase and Securities Contract Agreement and First Amendment to Fee Letter, dated as of February 18, 2020, as amended by that certain Fifth Amendment
to Uncommitted Master Repurchase and Securities Contract Agreement, dated as of December 11, 2020, as amended by that certain Sixth Amendment to Uncommitted Master Repurchase and Securities Contract Agreement, dated as of January 21, 2021,
as amended by that certain Seventh Amendment to Uncommitted Master Repurchase and Securities Contract Agreement, dated as of April 23, 2021 (as the same may be further amended, restated, supplemented or otherwise modified from time to time, the
“Master Repurchase Agreement”); 
 WHEREAS, Seller has requested that Buyer increase the Maximum Facility Amount,
and Buyer has agreed to increase the Maximum Facility Amount in accordance with the terms and conditions set forth herein; and 

WHEREAS, Seller and Buyer wish to modify certain terms and provisions of the Master Repurchase Agreement. 

NOW, THEREFORE, for good and valuable consideration, the parties hereto agree as follows: 

1. Amendments to Master Repurchase Agreement. The Master Repurchase Agreement is hereby amended as follows: 

(a) The definition of “Maximum Facility Amount” in Article 2 of the Master Repurchase Agreement is hereby deleted in
its entirety and replaced with the following: 
 ““Maximum Facility Amount” shall mean Two
Hundred Fifty Million and No/100 Dollars ($250,000,000.00).” 
 (b) The following definition of is hereby added in Article 2 of
the Master Repurchase Agreement in correct alphabetical order: 
 ““Electronic Signature” shall
have the meaning set forth in Article 30(b) of this Agreement.” 

 (c) Article 30(b) of the Master Repurchase Agreement is hereby deleted in its
entirety and replaced with the following: 
 “(b) The Transaction Documents may be executed in counterparts, each of which so executed
shall be deemed to be an original, but all of such counterparts shall together constitute but one and the same instrument. This Agreement and the Transaction Documents may be delivered by facsimile transmission, by electronic mail, or by other
electronic transmission, in portable document format (.pdf) or otherwise, and each such executed facsimile, .pdf, or other electronic record shall be considered an original executed counterpart for purposes of this Agreement and any Transaction
Document. Each party to this Agreement (a) agrees that it will be bound by its own Electronic Signature (as such term is defined immediately below), (b) accepts the Electronic Signature of each other party to this Agreement and any Transaction
Document, and (c) agrees that such Electronic Signatures shall be the legal equivalent of manual signatures. The term “Electronic Signature” means (i) the signing party’s manual signature on a signature page,
converted by the signing party (or its agent) to facsimile or digital form (such as a .pdf file) and received from the customary email address or customary facsimile number of the signing party (or its counsel or representative), or other mutually
agreed-upon authenticated source; or (ii) the signing party’s digital signature executed using a mutually agreed-upon digital signature service provider and digital signature process. The words “execution,” “executed”,
“signed,” “signature,” and words of like import in this paragraph shall, for the avoidance of doubt, be deemed to include Electronic Signatures and the use and keeping of records in electronic form, each of which shall have the
same legal effect, validity and enforceability as manually executed signatures and the use of paper records and paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including the Federal
Electronic Signatures in Global and National Commerce Act, state laws based on the Uniform Electronic Transactions Act, or any other state law.” 

2. Exercise of Facility Increase. Buyer and Seller acknowledge and agree that pursuant to the terms of this Amendment, Seller has
exercised its option to increase the Maximum Facility Amount in accordance with Article 3(n) of the Master Repurchase Agreement and Seller has no further option to increase the Maximum Facility Amount pursuant to the terms of the Master Repurchase
Agreement. 
 3. Effectiveness. The effectiveness of this Amendment is subject to receipt by Buyer of the following: 

(a) Amendment. This Amendment, duly executed and delivered by Seller and Buyer. 

(b) Responsible Officer Certificate. A signed certificate from a Responsible Officer of Seller certifying: (i) that no amendments
have been made to the organizational documents of Seller since January 26, 2018, unless otherwise stated therein; and (ii) the authority of Seller to execute and deliver this Amendment and the other Transaction Documents to be executed and
delivered in connection with this Amendment. 
 (c) Good Standing. Certificates of existence and good standing and/or qualification
to engage in business for the Seller. 
 (d) Legal Opinion. Opinions of outside counsel to Seller reasonably acceptable to Buyer as
to such matters as Buyer may reasonably request, provided, that the execution of this Amendment by Buyer shall evidence satisfaction of this condition. 

  
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 (e) Fees. Payment by Seller of the actual costs and expenses, including, without
limitation, the reasonable fees and expenses of counsel to Buyer, incurred by Buyer in connection with this Amendment and the transactions contemplated hereby. 

4. Seller Representations. Seller hereby represents and warrants that: 

(a) no Potential Event of Default, Event of Default or Margin Deficit has occurred and is continuing, and no Potential Event of Default, Event
of Default or Margin Deficit will occur as a result of the execution, delivery and performance by Seller of this Amendment; and 
 (b) the
representations and warranties contained in Article 9 of the Master Repurchase Agreement are true and correct in all material respects (except to the extent that such representations and warranties specifically refer to any earlier date, in which
case Seller represents and warrants that such representations and warranties are true and correct as of such earlier date and except that the representations and warranties regarding Seller or Guarantor’s financial statements are deemed to
refer to the most recent financial statements furnished to Buyer). 
 5. Defined Terms. Capitalized terms used but not otherwise
defined herein shall have the meanings given to them in the Master Repurchase Agreement. 
 6. Continuing Effect; Reaffirmation of
Guarantee Agreement. As amended by this Amendment, all terms, covenants and provisions of the Master Repurchase Agreement are ratified and confirmed and shall remain in full force and effect. In addition, any and all guaranties and indemnities
for the benefit of Buyer (including, without limitation, the Guarantee Agreement) and agreements subordinating rights and liens to the rights and liens of Buyer, are hereby ratified and confirmed and shall not be released, diminished, impaired,
reduced or adversely affected by this Amendment, and each party indemnifying Buyer, and each party subordinating any right or lien to the rights and liens of Buyer, hereby consents, acknowledges and agrees to the modifications set forth in this
Amendment and waives any common law, equitable, statutory or other rights which such party might otherwise have as a result of or in connection with this Amendment. 

7. Binding Effect; No Partnership; Counterparts. The provisions of the Master Repurchase Agreement, as amended hereby, shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Nothing herein contained shall be deemed or construed to create a partnership or joint venture between any of the parties hereto. For the
purpose of facilitating the execution of this Amendment as herein provided, this Amendment may be executed simultaneously in any number of counterparts, each of which shall be deemed to be an original, and such counterparts when taken together shall
constitute but one and the same instrument. This Amendment may be delivered by facsimile transmission, by electronic mail, or by other electronic transmission, in portable document format (.pdf) or otherwise, and each such executed facsimile, .pdf,
or other electronic record shall be considered an original executed counterpart for purposes of this Amendment. Each party to this Amendment (a) agrees that it will be bound by its own Electronic Signature, (b) accepts the Electronic
Signature of each other party to this Amendment and any Transaction Document, and (c) agrees that such Electronic Signatures shall be the legal equivalent of manual signatures. The words “execution,” “executed”,
“signed,” “signature,” and words of like import in this paragraph shall, for the avoidance of doubt, be deemed to include Electronic Signatures and the use and keeping of records in electronic form, each of which shall have the
same legal effect, validity and enforceability as manually executed signatures and the use of paper records and paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including the Federal
Electronic Signatures in Global and National Commerce Act, state laws based on the Uniform Electronic Transactions Act, or any other state law. 

  
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 8. Further Agreements. Seller agrees to execute and deliver such additional
documents, instruments or agreements as may be reasonably requested by Buyer and as may be necessary or appropriate from time to time to effectuate the purposes of this Amendment. 

9. Governing Law. The provisions of Article 20 of the Master Repurchase Agreement are incorporated herein by reference. 

10. Headings. The headings of the sections and subsections of this Amendment are for convenience of reference only and shall not be
considered a part hereof nor shall they be deemed to limit or otherwise affect any of the terms or provisions hereof. 
 11. References
to Transaction Documents. All references to the Master Repurchase Agreement in any Transaction Document, or in any other document executed or delivered in connection therewith shall, from and after the execution and delivery of this Amendment,
be deemed a reference to the Master Repurchase Agreement, as amended hereby, unless the context expressly requires otherwise. 
 12. No
Waiver. The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of Buyer under the Master Repurchase Agreement or any other Transaction Document, nor constitute a waiver of any
provision of the Master Repurchase Agreement or any other Transaction Document by any of the parties hereto. 
 [NO FURTHER TEXT ON THIS
PAGE] 

  
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 IN WITNESS WHEREOF, the parties have executed this Amendment as of the day first written
above. 
  

			
	BUYER:
	
	GOLDMAN SACHS BANK USA, a New York state-chartered bank
		
	 By:
	 	 /s/ James Muliawan

		 	 Name: James Muliawan

		 	 Title: Authorized Person

 [SIGNATURES CONTINUE ON THE FOLLOWING PAGE] 

  
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	SELLER:
	
	FS CREIT FINANCE GS-1 LLC, a Delaware limited liability company
		
	By:	 	/s/ Edward T. Gallivan, Jr.
		 	Name: Edward T. Gallivan, Jr.
		 	Title: Chief Financial Officer

  
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 The undersigned hereby acknowledges the execution of the Amendment and agrees that the
Guarantee Agreement and agreements therein subordinating rights and liens to the rights and liens of Buyer, are hereby ratified and confirmed and shall not be released, diminished, impaired, reduced or adversely affected by this Amendment, and each
party indemnifying Buyer therein, and each party subordinating any right or lien to the rights and liens of Buyer, therein, hereby acknowledges the modifications set forth in this Amendment and waives any common law, equitable, statutory or other
rights which such party might otherwise have as a result of or in connection with this Amendment. In addition, the undersigned reaffirms its obligations under the Guarantee Agreement and agrees that its obligations under the Guarantee Agreement
shall remain in full force and effect and apply to the additional components referenced in this Amendment. 
  

			
	GUARANTOR:
	
	FS CREDIT REAL ESTATE INCOME TRUST,
INC., a Maryland corporation
		
	By:	 	/s/ Edward T. Gallivan, Jr.
		 	Name: Edward T. Gallivan, Jr.
		 	Title: Chief Financial Officer

  
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