Document:

exhibit10.htm

                                                                            Exhibit 10

TENTH AMENDMENT TO AMENDED AND

 

RESTATED LOAN AND SECURITY AGREEMENT

 

THIS TENTH AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (“Tenth Amendment”) is made as of this 11th day of May, 2010, by and among BANK OF AMERICA, N.A., a national banking association (“Bank of America”) with an office at 135 South LaSalle Street, 4th Floor, Chicago, Illinois 60603, individually as a Lender and as Agent (“Agent”) for itself and any other financial institution which is or becomes a party hereto (each such financial institution, including Bank of America, is referred to hereinafter individually as a “Lender” and collectively as the “Lenders”), the LENDERS and MFRI, INC., a Delaware corporation (“MFRI”), MIDWESCO FILTER RESOURCES, INC., a Delaware corporation (“Midwesco”), PERMA-PIPE, INC., a Delaware corporation (“Perma-Pipe”), THERMAL CARE, INC., a Delaware corporation (“Thermal Care”), TDC FILTER MANUFACTURING, INC., a Delaware corporation (“TDC”), MIDWESCO MECHANICAL AND ENERGY, INC., a Delaware corporation (“Mechanical”) and FREEZONE HOLDINGS LIMITED LIABILITY COMPANY, a Delaware limited liability company (“Freezone”) and PERMA-PIPE CANADA, INC., a Delaware corporation (“Perma-Pipe Canada”).  Capitalized terms used in this Agreement have the meanings assigned to them in Appendix A, General Definitions.  Accounting terms not otherwise specifically defined herein shall be construed in accordance with GAAP consistently applied.  MFRI, Midwesco, Perma-Pipe, Thermal Care, TDC, Mechanical, Freezone and Perma-Pipe Canada are sometimes hereinafter referred to individually as a “Borrower” and collectively as “Borrowers”.

 

WHEREAS, Borrowers (other than Mechanical, Freezone and Perma-Pipe Canada), Agent, and the Lender signatories thereto hereto entered into that certain Amended and Restated Loan and Security Agreement dated December 15, 2006, as amended by that First Amendment to Amended and Restated Loan and Security Agreement dated February 28, 2007 by and among Borrowers (other than Freezone and Perma-Pipe Canada), Agent and Lenders, by that certain Second Amendment to Amended and Restated Loan and Security Agreement dated August 28, 2007 by and among Borrowers (other than Freezone and Perma-Pipe Canada), Agent and Lenders, by that certain Third Amendment to Amended and Restated Loan and Security Agreement dated December 13, 2007 by and among Borrowers (other than Freezone and Perma-Pipe Canada), Agent and Lenders, by that certain Fourth Amendment to Amended and Restated Loan and Security Agreement dated April 17, 2008 by and among Borrowers (other than Freezone and Perma-Pipe Canada), Agent and Lenders, by that certain Fifth Amendment to Amended and Restated Loan and Security Agreement dated September 7, 2008 by and among Borrowers (other than Freezone and Perma-Pipe Canada), Agent and Lenders, by that certain Sixth Amendment to Amended and Restated Loan and Security Agreement dated January 12, 2009 by and among Borrowers (other than Freezone and Perma-Pipe Canada), Agent and Lenders, by that certain Seventh Amendment to Amended and Restated Loan and Security Agreement dated August 5, 2009 by and among Borrowers (other than Freezone and Perma-Pipe Canada), Agent and Lender, by that certain Eighth Amendment to Amended and Restated Loan and Security Agreement dated December 9, 2009 by and among Borrowers, Agent and Lenders and by that certain Ninth Amendment to Amended and Restated Loan and Security Agreement dated April 13, 2010 by and among Borrowers, Agent and Lender (said Amended and Restated Loan and Security Agreement, as amended from time to time, the “Loan Agreement”); and

 

  

  

  

WHEREAS, Borrowers, Agent and Lenders desire to amend the Loan Agreement as provided herein, including, without limitation, to add Freezone and Perma-Pipe Canada as an additional Borrower;

 

NOW, THEREFORE, in consideration of the following terms and conditions, the parties agreed as follows:

 

1. Definitions.  Except as otherwise specifically provided for herein, all capitalized terms used herein without definition shall have the meanings contained in the Loan Agreement.

 

2. Amended and Additional Definitions.  The definition of “Permitted Purchase Money Indebtedness” is hereby deleted from the Loan Agreement and the following is inserted in its stead.  The following definition of “2010 Equipment Loan and Lease Agreement” is hereby inserted into Appendix A to the Loan Agreement.

 

“Permitted Purchase Money Indebtedness – (x) Purchase Money Indebtedness of Borrowers incurred after the date hereof which is secured by a Purchase Money Lien and the principal amount of which, when aggregated with the principal amount of all other such Indebtedness and Capitalized Lease Obligations of Borrowers and their Subsidiaries at the time outstanding, does not exceed $1,500,000, (y) Purchase Money Indebtedness of Borrowers in an aggregate amount not to exceed $6,000,000 incurred after December 1, 2007 in connection with the acquisition and immediate improvements by TDC of a new facility in suburban Chicago which Purchase Money Indebtedness shall be secured by a Purchase Money Lien on such facility and the fixed assets located thereon so long as the other terms and conditions of such Purchase Money Indebtedness are acceptable to Agent in its reasonable discretion and (z) Purchase Money Indebtedness or other Indebtedness incurred pursuant to that certain master lease agreement and/or loan agreement (“2010 Equipment Loan and Lease Agreement”) dated on or about May 11, 2011, a copy of which, in substantial final form, has been delivered to Agent, by and between all or any Borrower and Banc of America Leasing & Capital, LLC (or its successor-in-interest); provided that the aggregate amount of Borrowers’ Indebtedness under such 2010 Equipment Loan and Lease Agreement does not exceed $3,000,000 (plus actual or imputed interest), that the term of such 2010 Equipment Loan and Lease Agreement is forty-eight (48) months or more and that such 2010 Equipment Loan and Lease Agreement is otherwise in form and substance reasonably acceptable to Agent.

 

*      *      *

 

2010 Equipment Loan and Lease Agreement – as defined in clause (z) of the definition of Permitted Purchase Money Indebtedness.”

 

3. Release of Equipment.  Immediately prior to or simultaneous with the effectiveness of the 2010 Equipment Loan and Lease Agreement and the first $1,000,000 advance to be made thereunder, Agent agrees to release its Lien on the Equipment more particularly described in Schedule 1 attached to this Tenth Amendment and to file such UCC-3 termination statements as are necessary or appropriate to reflect such release.  In order to induce Agent and Lenders to agree to such Lien release, Borrowers acknowledge that Agent, at Borrowers’ expense, will obtain a new appraisal of Borrowers’ Equipment that remains subject to Agent’s Lien, which appraisal shall be in form and substance reasonably acceptable to Agent.  In the event that such new appraisal evidences that the net orderly liquidation value of such Equipment has deteriorated from that stated in the most recent prior appraisal, then Borrowers acknowledge that Agent may implement reserves pursuant to such Section 1.1.1 of the Loan Agreement to reflect such reduced value.

  

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4. Term of Agreement.  Section 4.1 of the Loan Agreement is hereby deleted and the following is inserted in its stead:

 

“SECTION 4.  TERM AND TERMINATION

 

“4.1           Term of Agreement.  Subject to the right of Lenders to cease making Loans to Borrowers during the continuance of any Default or Event of Default, this Agreement shall be in effect for a period through and including November 30, 2013 (the “Term”), unless terminated as provided in Section 4.2 hereof.”

 

5. Total Indebtedness.  Subsection 8.2.3 of the Loan Agreement is hereby deleted and the following is inserted in its stead:

 

“8.2.3           Total Indebtedness.  Create, incur, assume, or suffer to exist, or permit any Subsidiary of Borrower to create, incur or suffer to exist, any Indebtedness, except:

 

(i)           Obligations owing to Agent and Lenders;

 

(ii)           Indebtedness of any Subsidiary of Borrower to Borrower;

 

(iii)           accounts payable to trade creditors and current operating expenses (other than for Money Borrowed) which are not aged more than 120 days from billing date or more than 60 days from the due date, in each case incurred in the ordinary course of business and paid within such time period, unless the same are being actively contested in good faith and by appropriate and lawful proceedings; and Borrower or such Subsidiary shall have set aside such reserves, if any, with respect thereto as are required by GAAP and deemed adequate by Borrower or such Subsidiary and its independent accountants;

 

(iv)           Obligations to pay Rentals permitted by Section 8.2.13;

 

(v)           Permitted Purchase Money Indebtedness;

 

(vi)           contingent liabilities arising out of endorsements of checks and other negotiable instruments for deposit or collection in the ordinary course of business;

 

(vii)           Capital Lease Obligations to the extent permitted by Section 8.2.8 in an aggregate principal amount of not more than $750,000;

 

(viii)           Indebtedness in respect to deferred taxes;

 

  

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(ix)           Indebtedness relating to compensation owed to Borrower’s employees for services rendered in the ordinary course of business;

 

(x)           all unfunded pension and other employee benefit plan obligations and liabilities but only to the extent they are permitted to remain unfunded under applicable law;

 

(xi)           insurance reserves created in the ordinary course of business;

 

(xii)           Indebtedness incurred in connection with loans on the cash surrender value of key-man life insurance policies so long as the principal amount of such Indebtedness does not exceed $2,000,000, the per annum interest rate payable with respect to such Indebtedness does not exceed 4.25% and such Indebtedness does not require any principal amortization on or prior to December 31, 2013; and

 

(xiii)           Indebtedness not included in paragraphs (i) through (xiii) above which does not exceed at any time, in the aggregate, the sum of $500,000.”

 

6. Liens.  Subsection 8.2.5 of the Loan Agreement is hereby deleted and the following is inserted in its stead:

 

“8.2.5           Limitation on Liens.  Create or suffer to exist, or permit any Subsidiary of Borrower to create or suffer to exist, any Lien upon any of its Property, income or profits, whether now owned or hereafter acquired, except:

 

(i)           Liens at any time granted in favor of Agent for its benefit and the ratable benefit of Lenders;

 

(ii)           Liens for taxes (excluding any Lien imposed pursuant to any of the provisions of ERISA) not yet due, or being contested in the manner described in Section 7.1.14 hereto, but only if in Agent’s judgment such Lien does not adversely affect Agent’s rights or the priority of Agent’s Lien in the Collateral;

 

(iii)           Liens arising in the ordinary course of Borrower’s business by operation of law or regulation, but only if payment in respect of any such Lien is not at the time required and such Liens do not, in the aggregate, materially detract from the value of the Property of Borrower or materially impair the use thereof in the operation of Borrower’s business;

 

(iv)           Purchase Money Liens securing Permitted Purchase Money Indebtedness;

 

(v)           Liens securing Indebtedness of one of Borrower’s Subsidiaries to Borrower or another such Subsidiary;

 

(vi)           Liens securing Capital Lease Obligations to the extent the underlying Capital Lease Obligation is permitted by the terms of this Agreement;

 

  

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(vii)           such other Liens as appear on Exhibit 8.2.5 hereto;

 

(viii)           Liens on certain Inventory granted to Prairie State Generating Company LLC and/or Bechtel Power Corporation subject to and to the extent provided in that certain consent letter dated December 8, 2008 from Agent to Borrower, a copy of which is attached to Exhibit 8.2.5;

 

(xi)           Liens on the cash surrender value of life insurance policies securing Indebtedness permitted under Subsection 8.2.8(xii); and

 

(x)           such other Liens as Required Lenders may hereafter approve in writing.”

 

7. Conditions Precedent.  This Tenth Amendment shall become effective upon receipt by Agent of a fully executed copy of this Tenth Amendment.

 

8. Governing Law.  This Tenth Amendment shall be governed by, and construed in accordance with, the laws of the State of Illinois, without regard to the principles thereof relating to conflict of laws.

 

9. Execution in Counterparts.  This Tenth Amendment may be executed in any number of counterparts, which shall, collectively and separately, constitute one Agreement.

 

10. Continuing Effect.  Except as otherwise provided herein, the Loan Agreement remains in full force and effect.

 

(Signature Page Follows)

 

CHICAGO/#2067104.4

  

5

  

(Signature Page to Tenth Amendment to

 

Amended and Restated Loan and Security Agreement)

 

	  	
MFRI, INC.

	  	  	  
	  	
By:

	
/s/ Michael D. Bennett

	  
	  	
Name:

	
Michael D. Bennett

	  	
Title:

	
VP CFO

	  	  	  
	  	
MIDWESCO FILTER RESOURCES, INC.

	  	  
	  	
By:

	
/s/ Michael D. Bennett

	  
	  	
Name:

	
Michael D. Bennett

	  	
Title:

	
Vice President

	  	  	  
	  	  	  
	  	
PERMA-PIPE, INC.

	  	  
	  	
By:

	
/s/ Michael D. Bennett

	  
	  	
Name:

	
Michael D. Bennett

	  	
Title:

	
Vice President

	  	  	  
	  	
THERMAL CARE, INC.

	  	  
	  	
By:

	
/s/ Michael D. Bennett

	  
	  	
Name:

	
Michael D. Bennett

	  	
Title:

	
Vice President

	  	  	  
	  	
TDC FILTER MANUFACTURING, INC.

	  	  
	  	
By:

	
/s/ Michael D. Bennett

	  
	  	
Name:

	
Michael D. Bennett

	  	
Title:

	
Vice President

	  	  	  
	  	
MIDWESCO MECHANICAL AND ENERGY, INC.

	  	  
	  	
By:

	
/s/ Michael D. Bennett

	  
	  	
Name:

	
Michael D. Bennett

	  	
Title:

	
Vice President

	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  

  

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FREEZONE HOLDINGS LIMITED

LIABILITY COMPANY

	  	  
	  	
By:

	
/s/ Michael D. Bennett

	  
	  	
Name:

	
Michael D. Bennett

	  	
Title:

	
Manager

	  	  	  
	  	
PERMA-PIPE CANADA, INC.

	  	  
	  	
By:

	
/s/ Michael D. Bennett

	  
	  	
Name:

	
Michael D. Bennett

	  	
Title:

	
Vice President

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

	  	  
	  	
By:

	
/s/ Brian Conole

	  
	  	
Name:

	
Brian Conole

	  	
Title:

	
Senior Vice President

	  	  	  
	  	  	  

	  	  	  

CHICAGO/#2067104.4

  

7

  

SCHEDULE I

 

Description of Equipment to be Released

 

 

 

 

 

 

 

 

8Exhibit
4(a)

EXECUTION
COPY

EIGHTH AMENDMENT TO CONSTRUCTION AND TERM

LOAN AGREEMENT

          THIS EIGHTH
AMENDMENT TO CONSTRUCTION AND TERM LOAN AGREEMENT (this “Amendment”),
dated as of September 1, 2010, is executed by and among LEVELLAND/HOCKLEY
COUNTY ETHANOL, LLC, a Texas limited liability company (the “Borrower”),
each of the Lenders or other lending institutions which is a signatory hereto
or any successor or assignee thereof, and GE BUSINESS FINANCIAL SERVICES INC.
(in its capacity as administrative agent for the Lenders, together with its
successors in such capacity, the “Administrative Agent”).

R E C I T A L S:

          A. The
Borrower, the Lenders, and the Administrative Agent are parties to that certain
Construction and Term Loan Agreement, dated as of September 27, 2006, as
amended by (a) that certain First Amendment to Construction and Term Loan
Agreement and other Loan Documents dated as of August 10, 2007,
(b) that certain Second Amendment to Construction and Term Loan Agreement
dated as of February 15, 2008, (c) that certain Third Amendment to
Construction and Term Loan Agreement dated as of February 19, 2008,
(d) that certain Fourth Amendment to Construction and Term Loan Agreement
dated as of May 31, 2008, (e) that certain Fifth Amendment to
Construction and Term Loan Agreement dated as of May 31, 2008,
(f) that certain Sixth Amendment to Construction and Term Loan Agreement
dated as of January 29, 2009, and (g) that certain Seventh Amendment
to Construction and Term Loan Agreement dated as of September 4, 2009 (as
has been and may be amended, modified, supplemented or restated from time to
time, the “Loan Agreement”).

          B. The
Borrower, the Administrative Agent and the Required Lenders desire to amend the
Loan Agreement and agree to the other matters as described herein, subject to
the terms and conditions contained herein.

          NOW,
THEREFORE, in consideration of the premises herein contained and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows intending to be legally
bound:

ARTICLE I

Definitions

          Section 1.1
Definitions. Capitalized terms used in this Amendment, to the extent not
otherwise defined herein, shall have the same meanings as in the Loan
Agreement, as amended hereby.

ARTICLE II

Amendments and Agreements

          Section 2.1
New Definition. Section 1.1 of the Loan Agreement is amended by adding
thereto, in alphabetical order, a new definition reading as follows:

1

	
  

 	
  

 
	
  

 	
           “Trigger
 Date” means the later of (i) January 31, 2011, and
 (ii) the earlier of (x) the date on which the New FEL Subordinated
 Debt terminates or matures (whether at stated maturity, by acceleration or
 otherwise) and (y) December 31, 2011. FEL shall have the right, but
 not the obligation, upon 15 days’ prior written notice to the Administrative
 Agent, to extend the maturity date of the New FEL Subordinated Debt through
 and including December 31, 2011, without the requirement to obtain any
 further consents or approvals from the Administrative Agent or the Lenders.

 

          Section 2.2
Amendment to Definition of New FEL Subordinated Debt. The definition of
“New FEL Subordinated Debt” is amended and restated to read as follows:

	
  

 	
  

 
	
  

 	
           “New
 FEL Subordinated Debt” means the $4,000,000 of revolving line of credit,
 inclusive within such amount the amounts of any letters of credit drawn upon
 or obtained by or through FEL for the benefit of Borrower all pursuant to the
 New FEL Loan Agreement.

 

          Section 2.3
Amendment to “Calculation Start Date” Definition. The definition of
“Calculation Start Date” found in Section 1.1 of the Loan Agreement is
amended and restated in its entirety to read as follows:

	
  

 	
  

 
	
  

 	
           “Calculation
 Start Date” means October 1, 2010.

 

          Section
2.4 EBITDAR Coverage Ratio. The first sentence of Section 6.10(a) of the
Loan Agreement is amended and restated in its entirety to read as follows:

	
  

 	
  

 
	
  

 	
           Borrower’s
 EBITDAR Coverage Ratio shall at all times between the Calculation Start Date
 and the Trigger Date be equal or exceed 1.20 to 1.0 and shall at all times
 after the Trigger Date equal or exceed 1.40 to 1.0. For clarity and avoidance
 of doubt, prior to the end of Borrower’s third quarter in fiscal year 2011,
 the foregoing ratio will be “annualized,” which means for the fourth quarter
 of fiscal year 2010, the applicable financial information for such quarter
 times four; for the first quarter of fiscal year 2011, the applicable
 financial information for such quarter and for the prior quarter times two;
 and for the second quarter of fiscal year 2011, the applicable financial
 information for such quarter and the two prior quarters times 1.33.

 

          Section
2.5 Leverage Ratio. Section 6.10(b) of the Loan Agreement is hereby
amended and restated in its entirety to read as follows:

	
  

 	
  

 
	
  

 	
           “(b) Leverage
 Ratio. Beginning October 1, 2010, and at all times thereafter,
 Borrower’s Leverage Ratio shall be equal to or less than the ratio set forth
 below that corresponds to the applicable period of the calculation:

 

2

	
  

 	
  

 	
  

 
	
 Period of Calculation:

 	
  

 	
 Ratio:

 
	

 

 	
  

 	

 

 
	
 October 1,
 2010 through and including the Trigger Date

 	
  

 	
 4.0 to 1.00

 
	
 January 1,
 2012 through and including December 31, 2012

 	
  

 	
 2.17 to 1.00

 
	
 January 1,
 2013 and thereafter

 	
  

 	
 1.82 to 1.00

 

	
  

 	
  

 
	
  

 	
 Notwithstanding
 the foregoing, if the Trigger Date occurs before December 31, 2011,
 Borrower’s Leverage Ratio reverts automatically to 2.54 to 1.00 for the
 period from January 1, 2011 through December 31, 2011. 

 
	
  

 	
  

 
	
  

 	
 For clarity
 and avoidance of doubt, prior to the end of Borrower’s third quarter in
 fiscal year 2011, the foregoing ratio will be “annualized,” which means for
 the fourth quarter of fiscal year 2010, the applicable financial information
 for such quarter times four; for the first quarter of fiscal year 2011, the
 applicable financial information for such quarter and for the prior quarter
 times two; and for the second quarter of fiscal year 2011, the applicable
 financial information for such quarter and the two prior quarters times 1.33.

 

          Section
2.6 Additional Event of Default. Section 9.1(f) of the Loan Agreement is
hereby amended and restated in its entirety to read as follows:

	
  

 	
  

 
	
  

 	
           (f) New
 FEL Subordinated Debt. New FEL Subordinated Debt shall have terminated,
 matured (whether at stated maturity, by acceleration or otherwise) or
 otherwise not be available for Borrower to obtain advances thereunder before
 January 31, 2011.

 

          Section 2.7
Waiver of Certain Financial Covenant Defaults. Administrative Agent and
Lenders hereby waive any Default by Borrower occasioned by Borrower’s failure
to meet the EBITDAR Coverage Ratio and the Leverage Ratio prior to the
Calculation Start Date.

          Section 2.8
Amendment Fee. In consideration of the execution of this Amendment and
the waiver provided for in Section 2.7 hereof, Borrower irrevocably and
unconditionally agrees to pay to Administrative Agent, for the benefit of the
Lenders, a fee in the amount of $20,000.00, such fee being due and payable as
follows:

	
  

 	
  

 
	
  

 	
           (a)
 $1,600 per month on the first day of each month, beginning October 1,
 2010, for 10 consecutive months; and

 
	
  

 	
  

 
	
  

 	
           (b)
 $4,000 being payable on August 1, 2011,

 
	
  

 	
  

 
	
  

 	
 plus
 in each case if payment is late, interest on the unpaid amount of such fee
 shall accrue and be payable on demand at the Interest Rate from the date of
 this Amendment until paid.

 

          Section 2.9
Expenses. Without limiting anything contained in the Loan Documents,
Borrower acknowledges and agrees that Borrower shall pay, as a condition to
this Amendment, all reasonable third-party costs and expenses of Administrative
Agent and the Lenders, including

3

without limitation reasonable attorneys’ fees, in connection with
preparing, negotiating, and executing this Amendment.

ARTICLE III

Conditions Precedent

          Section 3.1
Condition. The effectiveness of this Amendment is subject to the
satisfaction of the following conditions precedent:

	
  

 	
  

 
	
  

 	
           (a) Amendment;
 Amendment Fee; Expenses. The Administrative Agent shall have received
 this Amendment executed by the Borrower, the Administrative Agent and the
 Required Lenders, and Administrative Agent shall have received payment of the
 fees and expenses provided for in Sections 2.8 and 2.9 above.

 
	
  

 	
  

 
	
  

 	
           (b) Default.
 Upon giving effect to this Amendment, no Default shall have occurred and be
 continuing.

 
	
  

 	
  

 
	
  

 	
           (c) Representations
 and Warranties. All of the representations and warranties contained in
 Article IV of the Loan Agreement and in the other Loan Documents shall
 be true and correct on and as of the date of this Amendment with the same
 force and effect as if such representations and warranties had been made on
 and as of such date, except to the extent such representations and warranties
 speak to a specific date.

 

ARTICLE IV

No Waiver

          Nothing
contained herein shall be construed as a consent by the Administrative Agent
and the Lenders to any breach of any covenant or provision of the Loan
Agreement, the other Loan Documents, this Amendment, or of any other contract
or instrument among Borrower, the Administrative Agent and the Lenders, and the
failure of the Administrative Agent or any Lender at any time or times
hereafter to require strict compliance by Borrower of any provision thereof
shall not waive, affect or diminish any right of the Administrative Agent and
the Lenders to thereafter demand strict compliance therewith. Nothing contained
in this Amendment shall be deemed or construed to waive any condition,
obligation, Default, or Event of Default except to the extent expressly waived
herein. The Administrative Agent and the Lenders hereby reserve all rights
granted under the Loan Agreement and the other Loan Documents (in each case as
amended by this Amendment), and this Amendment and any other contract or
instrument among Borrower, the Administrative Agent and any of the Lenders.

ARTICLE V

Ratifications, Representations and Warranties

          Section 5.1
Ratifications. The terms and provisions set forth in this Amendment
shall modify and supersede all inconsistent terms and provisions set forth in
the Loan Agreement and the other Loan Documents and except as expressly
modified and superseded by this Amendment,

4

the terms and provisions of the Loan Agreement and the other Loan
Documents are ratified and confirmed and shall continue in full force and
effect. The Borrower, the Administrative Agent and the Lenders agree that the
Loan Agreement as amended hereby shall continue to be legal, valid, binding and
enforceable in accordance with its terms, except as enforceability may be
limited by bankruptcy and other similar laws affecting the rights of creditors
generally.

          Section 5.2
Representations and Warranties. The Borrower hereby represents and
warrants to the Administrative Agent and the Lenders that (i) the
execution, delivery and performance of this Amendment and any and all other
Loan Documents executed or delivered in connection herewith have been authorized
by all requisite action on the part of the Borrower and will not violate the
articles of organization, operating agreement or regulations or other
organizational documents of the Borrower, (ii) the representations and
warranties contained in the Loan Agreement, as such Loan Agreement is amended
hereby, and any other Loan Document are true and correct on and as of the date
hereof as though made on and as of the date hereof except for those that relate
solely to a specific date or have changed as a result of transactions permitted
by the Loan Agreement, (iii) after giving effect to this Amendment, no
Default has occurred and is continuing, and (iv) after giving effect to
this Amendment, the Borrower is in full compliance with all material covenants
and agreements contained in the Loan Agreement as amended hereby.

ARTICLE VI

Miscellaneous

          Section 6.1
Survival of Representations and Warranties. All representations and
warranties made in this Amendment or any other Loan Document (as amended by this
Amendment), including any Loan Document furnished in connection with this
Amendment, shall survive the execution and delivery of this Amendment and such
other Loan Documents, and no investigation by the Administrative Agent or any
Lender shall affect the representations and warranties or the right of the
Administrative Agent or any Lender to rely upon them.

          Section 6.2
Severability. Any provision of this Amendment held by a court of
competent jurisdiction to be invalid or unenforceable shall not impair or
invalidate the remainder of this Amendment and the effect thereof shall be
confined to the provision so held to be invalid or unenforceable.

          Section 6.3
GOVERNING LAW. THIS LOAN AGREEMENT, THE NOTE AND, UNLESS OTHERWISE EXPRESSLY
PROVIDED THEREIN, EACH OF THE OTHER LOAN DOCUMENTS, SHALL BE GOVERNED IN ALL
RESPECTS BY THE LAWS OF THE STATE OF ILLINOIS, NOT INCLUDING ITS CONFLICT OF
LAW PROVISIONS; PROVIDED THAT THE LAWS OF THE STATE WHERE REAL PROPERTY
COLLATERAL IS LOCATED SHALL GOVERN WITH RESPECT TO THE CREATION, PERFECTION AND
ENFORCEMENT OF RIGHTS, SECURITY INTERESTS, REMEDIES AND LIENS AGAINST THE REAL
PROPERTY COLLATERAL.

5

          Section 6.4
Successors and Assigns. This Amendment is binding upon and shall inure
to the benefit of the Administrative Agent, the Lenders and the Borrower and
their respective successors and assigns, except the Borrower may not assign or
transfer its rights or obligations hereunder without the prior written consent
of the Administrative Agent and the Lenders.

          Section 6.5
Counterparts. This Amendment may be executed in one or more
counterparts, each of which when so executed shall be deemed to be an original,
but all of which when taken together shall constitute one and the same
instrument. Facsimiles of signatures shall be binding and effective as
originals.

          Section 6.6
Effect of Waiver. No consent or waiver, express or implied, by the
Administrative Agent or any Lender to or for any breach of or deviation from
any covenant, condition or duty by the Borrower shall be deemed a consent or
waiver to or of any other breach of the same or any other covenant, condition
or duty.

          Section 6.7
Headings. The headings, captions, and arrangements used in this
Amendment are for convenience only and shall not affect the interpretation of
this Amendment.

          Section 6.8
ENTIRE AGREEMENT. THIS AMENDMENT, THE LOAN AGREEMENT AND THE OTHER LOAN
DOCUMENTS EMBODY THE FINAL, ENTIRE AGREEMENT BETWEEN THE PARTIES HERETO
RELATING TO THIS AMENDMENT AND SUPERSEDE ANY AND ALL PRIOR AND CONTEMPORANEOUS
COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER WRITTEN OR
ORAL, RELATING TO THIS AMENDMENT, AND MAY NOT BE CONTRADICTED OR VARIED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS
OF THE PARTIES HERETO. THERE ARE NO ORAL AGREEMENTS BETWEEN THE PARTIES HERETO.

[Remainder of Page Left Blank Intentionally]

[Signature Pages Follow]

6

          IN WITNESS
WHEREOF, this Amendment is executed as of the date first set forth above.

	
  

 	
  

 	
  

 
	
  

 	
 BORROWER:

 
	
  

 	
  

 	
  

 
	
  

 	
 LEVELLAND/HOCKLEY
 COUNTY ETHANOL, LLC

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

	
  

 	
  

 	
  

 
	
  

 	
 ADMINISTRATIVE AGENT AND LENDER:

 
	
  

 	
  

 	
  

 
	
  

 	
 GE BUSINESS
 FINANCIAL SERVICES, INC.,

 as Administrative Agent and as a Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

	
  

 	
  

 	
  

 
	
  

 	
 OTHER LENDERS:

 
	
  

 	
  

 	
  

 
	
  

 	
 STATE BANK
 OF TEXAS,

 
	
  

 	
 as a Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

	
  

 	
  

 	
  

 
	
  

 	
 PALM DESERT
 NATIONAL BANK,

 
	
  

 	
 as a Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

	
  

 	
  

 	
  

 
	
  

 	
 COMMUNITY
 FIRST BANK,

 
	
  

 	
 as a Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

	
  

 	
  

 	
  

 
	
  

 	
 MIDWEST BANK
 OF WESTERN ILLINOIS,

 
	
  

 	
 as a Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

	
  

 	
  

 	
  

 
	
  

 	
 TEXAS
 CITIZENS BANK N.A.,

 
	
  

 	
 as a Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

	
  

 	
  

 	
  

 
	
  

 	
 INTERSTATE
 BANK, SSB,
as a Lender

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00178-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00178-of-00352.parquet"}]]