Document:

Exhibit 10.1

        

        

        

        

      

      

      

      Amendment No. 00031748SLA-E

      

      

      

      

      AMENDMENT TO CREDIT AGREEMENT

       

      THIS AMENDMENT is entered into as of May 29, 2020, between LINCOLNWAY ENERGY, LLC Nevada, Iowa, a limited liability
        company (the “Borrower”), and FARM CREDIT SERVICES OF AMERICA, FLCA AND FARM CREDIT SERVICES OF AMERICA, PCA (COLLECTIVELY, “LENDER”),

        a federally-chartered instrumentality of the United States (“Lender”). Capitalized terms used and not defined herein shall have the meanings assigned to such terms in the Agreement (as defined below).

       

      RECITALS

       

      The Borrower and Lender are parties to Credit Agreement Number 00031748SLA dated as of July 3, 2017 (such agreement, as may be amended, hereinafter referred to as the “Agreement”). The Borrower and
        Lender now desire to amend the Agreement. For that reason, and for valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the Borrower and Lender agree as follows:

       

      1.           Section 5.10 under Article 5 of the Agreement is amended and restated to read as follows:

       

      5.10        Capital. Maintain its status as an entity eligible to borrow from Lender. The Borrower has purchased voting (Class D) or non-voting (Class E)
        stock in Farm Credit Services of America, ACA as required under the policy of Lender (currently a minimum of $1,000.00 worth of stock consisting of at least 200 shares of $5.00 par value stock). Lender policy may change from time to time. Lender
        shall have a first lien on the stock for payment of any liability of the Borrower to Lender. Said stock is owned as follows:

       
        	Owner Name: Lincolnway Energy, LLC	 	SSN/TIN: 20-1118105

      

      

      

      The Borrower authorizes and appoints the following to act on behalf of all owners, to vote the Class D stock, and to accept, receive and receipt for any dividends declared on the stock, unless otherwise agreed to in
        writing by the parties:

       

      
        	
                 

              	Jeff Taylor	
                , Board President, voter

              

      

      

      2.           Section 6.6 under Article 6 of the Agreement is amended and restated to read as follows:

       

      6.6          Dividends and Distributions. Declare or pay any dividends, or make any distribution of assets to the stockholders, or purchase, redeem, retire
        or otherwise acquire for value any of its capital stock, or allocate or otherwise set apart any sum for any of the foregoing, except that beginning with fiscal year ending September 30, 2022 and each fiscal year thereafter, the Borrower may pay
        dividends in an amount up to 40.00% of its net income for the prior fiscal year, provided that no Event of Default or Potential Default will have occurred and be continuing or would result therefrom. Notwithstanding the foregoing, the Borrower may
        pay dividends of up to 75% of net income for the prior fiscal year, provided that the Borrower’s working capital (as calculated per Section 7.1 herein), pre and post distribution, remains above $15,000,000.00 million and provided that no Event of
        Default or Potential Default will have occurred and be continuing or would result therefrom.

       

      
        
          

      

      
        LINCOLN WAY ENERGY, LLC

        Nevada, Iowa

        Amendment No. 00031748SLA-E of Agreement No. 00031748SLA

      

      

      

      3.           Article 7 of the Agreement is amended and restated to read as follows:

       

      ARTICLE 7 Financial Covenants. Unless otherwise agreed to in writing by Agent, while this Agreement is in effect:

       

      7.1          Working Capital. The Borrower will have at the end of each period for which financial statements are
        required to be furnished pursuant to this Agreement an excess of current assets over current liabilities of not less than $10,000,000.00, except that in determining: (a) current assets, any amount available under any revolving term promissory note
        with Lender hereunder, may be included and (b) current liabilities, any amount of revolving term promissory note with Lender hereunder considered a non-current liability and any amount of previous operating lease(s) now reflected as a current
        liability may be excluded (all as determined in accordance with the Accounting Standards).

       

      7.2          Net Worth. The Borrower will have at the end of each period for which financial statements are required
        to be furnished pursuant to this Agreement an excess of total assets over total liabilities of not less than $24,000,000.00, (all as determined in accordance with the Accounting Standards).

       

      7.3          Debt Service Coverage Ratio. Beginning with fiscal year ending September 30, 2021 the Borrower will have
        at the end of each fiscal year of the Borrower a Debt Service Coverage Ratio (as defined below) for such year of not less than 1.50 to 1.00. For purposes hereof, “Debt Service Coverage Ratio” means: (a) net
        income (after taxes), plus depreciation and amortization, minus non-cash income from patronage/investments, minus extraordinary gains (plus losses), minus gains (plus losses) on asset sales; divided by (b) $5,000,000.00 (all as determined in
        accordance with the Accounting Standards).

       

      4.           Except as expressly amended hereby, all of the representations, warranties, terms, covenants and conditions contained in the Agreement and each other Loan Document shall remain unamended and otherwise
        unmodified and in full force and effect.

       

      5.          This Amendment may be executed in counterparts, each of which will constitute an original, but all of which when taken together will constitute a single contract. Delivery of an executed counterpart of a
        signature page of this Amendment by facsimile or other electronic means will be as effective as delivery of a manually executed counterpart of this Amendment.

       

      SIGNATURE PAGE FOLLOWS

       

      
        
          

      

      
        
          LINCOLN WAY ENERGY, LLC

          Nevada, Iowa

          Amendment No. 00031748SLA-E of Agreement No. 00031748SLA

        

      

      

      

      SIGNATURE PAGE TO AMENDMENT TO CREDIT AGREEMENT

       

      IN WITNESS WHEREOF, the parties hereto, by their duly authorized officers, have executed this Agreement.

       

      	 	
              LINCOLNWAY ENERGY, LLC

            
	 	 	 
	 	
              By:

            	
              /s/ Seth Harder

            
	 	 	 
	 	
              Name:

            	
              Seth Harder

            
	 	 	 
	 	
              Title:

            	
              CEO / President

            

       

      

      
        
          

      

      
        
          LINCOLN WAY ENERGY, LLC

          Nevada, Iowa

          Amendment No. 00031748SLA-E of Agreement No. 00031748SLA

        

      

      

      

      SIGNATURE PAGE TO AMENDMENT TO CREDIT AGREEMENT

       

      IN WITNESS WHEREOF, the parties hereto, by their duly authorized officers, have executed this Agreement.

       

      	 	
              FARM CREDIT SERVICES OF AMERICA, FLCA

            
	 	 	 
	 	
              By:

            	
              /s/ Marshall T. Hansen

            
	 	 	 
	 	
              Name:

            	
              Marshall T. Hansen

            
	 	 	 
	 	
              Title:

            	
              Senior Vice President

            

      

      

      	 	
              FARM CREDIT SERVICES OF AMERICA, PCA

            
	 	 	 
	 	
              By:

            	
              /s/ Marshall T. Hansen

            
	 	 	 
	 	
              Name:

            	
              Marshall T. Hansen

            
	 	 	 
	 	
              Title:

            	
              Senior Vice PresidentExhibit 10.2

    

    

    

    

    

    Loan No. 00031748T02-D

    

    

    AMENDED AND RESTATED REVOLVING TERM PROMISSORY NOTE

     

    THIS AMENDED AND RESTATED REVOLVING TERM PROMISSORY NOTE (this “Promissory Note”) to the Credit Agreement dated July
      3, 2017 (such agreement, as may be amended, hereinafter referred to as the “Credit Agreement”), is entered into as of May 29, 2020 between FARM CREDIT SERVICES OF AMERICA, FLCA,
      a federally-chartered instrumentality of the United States (“Lender”) and LINCOLNWAY ENERGY, LLC, Nevada, Iowa, a limited
      liability company (together with its permitted successors and assigns, the “Borrower”). Capitalized terms not otherwise defined in this Promissory Note will have the meanings set forth in the Credit Agreement.

     

    RECITALS

     

    (A)        This Promissory Note amends, restates, replaces and supersedes, but does not constitute payment of the indebtedness evidenced by, the promissory
      note set forth in the Amended and Restated Revolving Term Promissory Note numbered 00031748T02-C, dated as of December 28, 2018, between Lender and the Borrower (the “Existing Promissory Note”).

     

    SECTION 1.                    REVOLVING TERM COMMITMENT. On the terms and conditions set forth in the Credit Agreement and this
      Promissory Note, Lender agrees to make loans to the Borrower during the period set forth below in an aggregate principal amount not to exceed the Maximum Commitment Amount (as set forth below) at any one time outstanding (the “Commitment”). The “Maximum Commitment Amount” will be $25,000,000.00 initially and will reduce during the term of the Commitment in accordance with the table below. Within
      the limits of the Commitment, the Borrower may borrow, repay and re-borrow.

     

    	
            Maximum Commitment

             Amount

          	
            From

          	
            Up to and Including

          
	
            $20,000,000.00

          	
            October 20, 2021

          	
            October 19, 2022

          
	
            $15,000,000.00

          	
            October 20, 2022

          	
            October 19, 2023

          
	
            $10,000,000.00

          	
            October 20, 2023

          	
            October 1, 2024

          

    

    

    SECTION 2.                    PURPOSE. The purpose of the Commitment is to finance construction projects and provide working capital to
      the Borrower.

     

    SECTION 3.                    TERM. The term of the Commitment will be from the date hereof, up to and including October 1, 2024, or such
      later date as Agent may, in its sole discretion, authorize in writing (the “Term Expiration Date”).

     

    
      
        

    

    
      LINCOLNWAY ENERGY, LLC

      Nevada, Iowa

      Promissory Note No. 00031748T02-D

    

    

    

    SECTION 4.                    LIMITS ON ADVANCES, AVAILABILITY, ETC. The loans will be made available as provided in Article 2 of the
      Credit Agreement.

     

    SECTION 5.                    INTEREST. The Borrower agrees to pay interest on the unpaid balance of the loan(s) in accordance with the
      following interest rate option(s):

     

    (A)        One-Month LIBOR Index Rate. At a rate (rounded upward to the nearest 1/100th and adjusted for reserves
      required on Eurocurrency Liabilities (as hereinafter defined) for banks subject to FRB 1 Regulation D (as hereinafter defined) or required by any other federal law or regulation) per annum equal at all times to 3.750% above the higher of: (1) zero
      percent (0.00%); or (2) the rate reported at 11:00 a.m. London time for the offering of one (1)-month U.S. dollars deposits, by Bloomberg Information Services (or any successor or substitute service providing
      rate quotations comparable to those currently provided by such service, as determined by Agent from time to time, for the purpose of providing quotations of interest rates applicable to dollar deposits in the London interbank market) on the first
      U.S. Banking Day (as hereinafter defined) in each week, with such rate to change weekly on such day. The rate will be reset automatically, without the necessity of notice being provided to Agent, the Borrower, or any other party, on the first U.S.
      Banking Day of each succeeding week, and each change in the rate will be applicable to all balances subject to this option. Information about the then-current rate will be made available upon telephonic request. For purposes hereof: (a) “U.S. Banking Day” means a day on which Agent is open for business and banks are open for business in New York, New York; (b) “Eurocurrency Liabilities” will have the meaning
      as set forth in “FRB Regulation D”; and (c) “FRB Regulation D” means Regulation D as promulgated by the Board of Governors of the Federal Reserve System, 12 CFR Part 204, as amended.

     

    (B)        Quoted Rate. At a fixed rate per annum to be quoted by Agent in its sole discretion in each instance. Under
      this option, rates may be fixed on such balances and for such periods, as may be agreeable to Agent in its sole discretion in each instance, provided that: (1) the minimum fixed period will be 365 days; (2) amounts may be fixed in an amount not less
      than $500,000.00 or multiples thereof; and (3) the maximum number of fixes in place at any one time will be ten.

     

    
      
        

    

    
      LINCOLNWAY ENERGY, LLC

      Nevada, Iowa

      Promissory Note No. 00031748T02-D

    

    

    

    (C)        LIBOR. At a fixed rate per annum equal to LIBOR (as hereinafter defined), plus 3.750%. Under this option:
      (1) rates may be fixed for htterest Periods (as hereinafter defined) of 1, 2, 3, 6, or 12 months, as selected by the Borrower; (2) amounts may be fixed in an amount not less than $500,000.00 or multiples thereof; (3) the maximum number of fixes in
      place at any one time will be ten; (4) rates may only be fixed on a Banking Day (as hereinafter defined) on three Banking Days’ prior written notice, and (5) no Interest Period will end later than the maturity date of the Commitment as may be
      extended from time to time. For purposes hereof: (a) “LIBOR” means the higher of: (i) zero percent (0.00%); or (ii) the rate (rounded upward to the nearest 1/100th and adjusted for reserves required on
      Eurocurrency Liabilities (as hereinafter defined) for banks subject to FRB Regulation D (as hereinafter defined) or required by any other federal law or regulation) reported at 11:00 a.m. London time two Banking Days before the commencement of the
      Interest Period for the offering of U.S. dollar deposits in the London interbank market for the Interest Period designated by the Borrower, by Bloomberg Information Services (or any successor or substitute service providing rate quotations comparable
      to those currently provided by such service, as determined by Agent from time to time, for the purpose of providing quotations of interest rates applicable to dollar deposits in the London interbank market); (b) “Banking

        Day” means a day on which Agent is open for business, dealings in U.S. dollar deposits are being carried out in the London interbank market, and banks are open for business in New York City and London, England; (c) “Interest Period” means a period commencing on the date this option is to take effect and ending on the numerically corresponding day in the next calendar month or the month that is 1, 2, 3, 6, or 12 months thereafter, as the case may
      be; provided, however, that: (i) in the event such ending day is not a Banking Day, such period will be extended to the next Banking Day unless such next Banking Day falls in the next calendar month, in which case it will end on the preceding Banking
      Day; and (ii) if there is no numerically corresponding day in the month, then such period will end on the last Banking Day in the relevant month; (d) “Eurocurrency Liabilities” will have meaning as set forth in
      FRB Regulation D; and (e) “FRB Regulation D” means Regulation D as promulgated by the Board of Governors of the Federal Reserve System, 12 CFR Part 204, as amended.

     

    The Borrower will select the applicable rate option at the time it requests a loan hereunder and may, subject to the limitations set forth above, elect to convert balances bearing interest at the variable rate option
      to one of the fixed rate options. If the Borrower fails to elect an interest rate option, interest will accrue at the variable interest rate option. Upon the expiration of any fixed rate period, interest will automatically accrue at the variable rate
      option unless the amount fixed is repaid or fixed for an additional period in accordance with the terms hereof. Notwithstanding the foregoing, rates may not be fixed for periods expiring after the maturity date of the loans and rates may not be fixed
      in such a manner as to cause the Borrower to have to break any fixed rate balance in order to pay any installment of principal. All elections provided for herein will be made electronically (if applicable), telephonically or in writing and must be
      received by Agent not later than 12:00 p.m. Denver, Colorado time in order to be considered to have been received on that day; provided, however, that in the case of LIBOR rate loans, all such elections must be confirmed in writing upon Agent’s
      request. Interest will be calculated on the actual number of days each loan is outstanding on the basis of a year consisting of 360 days and will be payable monthly in arrears by the 20th day of the following month or on such other day as Agent will
      require in a written notice to the Borrower (“Interest Payment Date”) ; provided, however, in the event the Borrower elects to fix all or a portion of the indebtedness outstanding under the LIBOR interest rate option above, at Agent’s option upon
      written notice to the Borrower, interest will be payable at the maturity of the Interest Period and if the LIBOR interest rate fix is for a period longer than three months, interest on that portion of the indebtedness outstanding will be payable
      quarterly in arrears on each three-month anniversary of the commencement date of such Interest Period, and at maturity.

     

    
      
        

    

    
      LINCOLNWAY ENERGY, LLC

      Nevada, Iowa

      Promissory Note No. 00031748T02-D

    

    

    

    SECTION 6.                  INTEREST REPRICING. The Borrower acknowledges that interest rates available pursuant to Sections 5(A) and
      5(C) of the Existing Promissory Note (the “Available Rates”), may not represent the true cost of funds incurred by Lender in connection with making this Commitment (as “Commitment” is defined in the Existing
      Promissory note) available to Borrower. In recognition of the foregoing the Agent shall, on the third and sixth anniveraries of December 28, 2018 (“Reset Date”), increase or decrease the Available Rates applicable to this Commitment by the
      basis points difference between the Current Cost of Funds and the Closing Date Cost of Funds, which increase or decrease shall remain in effect until the Reset Date or Term Expiration Date. As used herein:

     

    (A)          “Closing Date Cost of Funds” means as of December 28, 2018, the difference between (a) the all-in one-month LIBOR Floating Note Rate cost
      of funds paid by Lender as indicated by the Farm Credit Funding Corporation and (b) the one-month LIBOR Rate, as of the date hereof.

     

    (B)          “Current Cost of Funds” means, as of any Reset Date, the difference, if any, between the all-in one-month LIBOR Floating Note Rate cost of
      funds paid by Lender as indicated by the Farm Credit Funding Corporation and the one-month LIBOR Rate as of such date.

     

    (C)          “LIBOR Floating Note Rate” means, as of any date, the estimated funding cost, including standard underwriting fees, for new 3-year floating
      farm credit debt securities issued into the primary market based on market observations on such date indicated at approximately 9:30 a.m. Eastern time; provided that such indications represent the Farm Credit Funding Corporation’s best estimate of
      the cost of new debt issues based on a combination of daily surveys of selected farm credit selling group members (participating bond dealers) and ongoing monitoring of the fixed income markets for actual, recent, primary market issuance by other
      government-sponsored enterprises of similar bonds and notes and pricing within related derivative markets, particularly the interest rate swap market. Historical information on such funding costs is available, for the prior week, on the Farm Credit
      Funding Corporation’s website (http://www.farmcreditfunding.com/ffcb live/fundingCostlndex.html) under the “Output” tab of the most recent spreadsheet.

     

    SECTION 7.                 PROMISSORY NOTE. The Borrower promises to repay on the date of each reduction in the Commitment set forth in
      the schedule in Section 1 above, the outstanding principal, if any, that is in excess of the reducing Commitment amount set forth in the aforementioned schedule, followed by a final installment in an amount equal to the remaining unpaid principal
      balance of the loans on the Term Expiration Date.

     

    In addition to the above, the Borrower promises to pay interest on the unpaid principal balance of the loans at the times and in accordance with the provisions set forth herein.

     

    SECTION 8.                    SECURITY. The Borrower’s obligations hereunder and, to the extent related hereto, under the Credit
      Agreement, will be secured as provided in Section 2.4 of the Credit Agreement.

     

    
      
        

    

    
      LINCOLNWAY ENERGY, LLC

      Nevada, Iowa

      Promissory Note No. 00031748T02-D

    

    

    

    SECTION 9.                    FEES.

     

    (A)        Deferral Fee. In consideration of the Commitment, the Borrower agrees to pay to Agent on the execution
      hereof, a fee in the amount of $12,500.00.

     

    (B)        Commitment Fee. In consideration of the Commitment, the Borrower agrees to pay to Agent a commitment fee on
      the average daily unused available portion of the Commitment at the rate of 0.500% per annum (calculated on a 360-day basis), payable monthly in arrears by the 20th day following each month. Such fee will be payable for each month (or portion
      thereof) occurring during the original or any extended term of the Commitment.

     

    SECTION 10.                  LETTERS OF CREDIT. INTENTIONALLY OMITTED.

     

    SECTION 11.                  LIBOR TERMINATION.

     

    (A)       If at any time the generally recognized administrator of interest rates offered for U.S. dollars on the London interbank market (a “LIBOR Rate”) ceases to provide quotations for LIBOR Rates, or if such administrator or any person having authority over such administrator or with respect to LIBOR Rates generally announces that LIBOR Rates will
      cease to be provided within a period not exceeding 90 days, or if Agent otherwise determines that LIBOR Rates have been, or are likely within a period not exceeding 90 days to be, discontinued, or that LIBOR Rates do not, or are likely within a
      period not exceeding 90 days not to, adequately and fairly reflect the cost to the Agent of making or maintaining loans hereunder, then the Agent may, after consultation with but without the consent of the Borrower, amend this promissory note and any
      other Loan Document to (1) replace any interest rate in this promissory note based upon the LIBOR Rate with a replacement benchmark rate deemed appropriate by the Agent in good faith and in its sole discretion, (2) adjust the margins applicable to
      the determination of interest rates under this promissory note (whether up or down) as deemed appropriate by Agent in good faith and in its sole discretion to compensate for differences between the LIBOR Rate and such replacement benchmark rate, and
      (3) after consultation with but without the consent of the Borrower, effect such other technical, administrative and operational changes to the Loan Documents as Agent in good faith and in its sole discretion deems appropriate to reflect the adoption
      and implementation of such replacement rate. Agent shall give the Borrower not less than five days’ notice of any such amendment prior to the effective date thereof.

     

    (B)         Notwithstanding the foregoing paragraph (A), if prior to the commencement of any interest period proposed to be subject to a LIBOR Rate, Agent
      determines (which determination shall be conclusive and binding absent manifest error) that:

     

    (1)         either dollar deposits are not being offered to banks in the London interbank market or that adequate and reasonable means do not exist for ascertaining a LIBOR Rate for such interest
      period; or

     

    
      
        

    

    
      LINCOLNWAY ENERGY, LLC

      Nevada, Iowa

      Promissory Note No. 00031748T02-D

    

    

    

    (2)         a LIBOR Rate for such interest period will not adequately and fairly reflect the cost to Agent of making or maintaining the loans for such interest period;

     

    then Agent shall give notice thereof to the Borrower as promptly as practicable thereafter and, until Agent notifies the Borrower that the circumstances giving rise to such notice no longer exist, (a) any request to
      convert any loan to, or continue any LIBOR Rate loan at, a LIBOR Rate shall be ineffective, and (b) the Agent shall, after consultation but without the consent of the Borrower, select an alternate rate of interest to apply to any and all balances
      upon the expiration of the interest period applicable thereto, which rate of interest shall be commercially reasonable and generally consistent with the then-prevailing market convention, if any, for replacement of a LIBOR Rate in bilateral loan
      transactions.

     

    SIGNATURE PAGE FOLLOWS

     

    
      
        

    

    
      LINCOLNWAY ENERGY, LLC

      Nevada, Iowa

      Promissory Note No. 00031748T02-D

    

    

    

    SIGNATURE PAGE TO PROMISSORY NOTE

     

    IN WITNESS WHEREOF, the parties have caused this Promissory Note to the Credit Agreement to be executed by their duly authorized officer(s).

     

    	 	
            LINCOLNWAY ENERGY, LLC

          
	 	 	 
	 	
            By:

          	
            /s/ Seth Harder

          
	 	 	 
	 	
            Name:

          	
            Seth Harder

          
	 	 	 
	 	
            Title:

          	
            CEO / President

          

     

    

    
      
        

    

    
      LINCOLNWAY ENERGY, LLC

      Nevada, Iowa

      Promissory Note No. 00031748T02-D

    

    

    

    SIGNATURE PAGE TO PROMISSORY NOTE

     

    IN WITNESS WHEREOF, the parties have caused this Promissory Note to the Credit Agreement to be executed by their duly authorized officer(s).

     

    	 	
            FARM CREDIT SERVICES OF AMERICA, PCA

          
	 	 	 
	 	
            By:

          	
            /s/ Mick Porter

          
	 	 	 
	 	
            Name:

          	
            Mick Porter

          
	 	 	 
	 	
            Title:

          	
            Vice President Large Producer Underwriting

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