Document:

exv10w1

 

Exhibit 10.1

CREDIT AGREEMENT

by and among

US BIO PLATTE VALLEY, LLC,

and

AGSTAR FINANCIAL SERVICES, PCA,

as Administrative Agent,

and

the Banks named herein,

dated

as of

February 7, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE I
	 	DEFINITIONS AND ACCOUNTING MATTERS	 	 	 	 
	Section 1.01
	 	Certain Defined Terms	 	 	1	 
	Section 1.02
	 	Accounting Matters	 	 	15	 
	Section 1.03
	 	Construction	 	 	15	 
	 
	 	 	 	 	 	 
	ARTICLE II AMOUNTS AND TERMS OF THE LOANS	 	 	 	 
	Section 2.01
	 	The Loans	 	 	15	 
	Section 2.02
	 	[Reserved]	 	 	 	 
	Section 2.03
	 	Term Loan	 	 	16	 
	Section 2.04
	 	Term Revolving Loan	 	 	17	 
	Section 2.05
	 	Revolving Line of Credit Loan	 	 	19	 
	Section 2.06
	 	Swingline Loan	 	 	22	 
	Section 2.07
	 	Evidence of Debt	 	 	24	 
	Section 2.08
	 	Letters of Credit	 	 	24	 
	Section 2.09
	 	Obligations Several	 	 	27	 
	Section 2.10
	 	Non-Receipt of Funds by the Agent	 	 	27	 
	Section 2.11
	 	Adjustments to Interest Rate	 	 	27	 
	Section 2.12
	 	Changes in Law Rendering Certain LIBOR Rate Loans Unlawful	 	 	28	 
	Section 2.13
	 	Payments and Computations	 	 	28	 
	Section 2.14
	 	Default Interest	 	 	30	 
	Section 2.15
	 	Late Charge	 	 	30	 
	Section 2.16
	 	Prepayment of Loans	 	 	30	 
	Section 2.17
	 	Withholding Taxes	 	 	31	 
	Section 2.18
	 	Withholding Tax Exemption	 	 	31	 
	Section 2.19
	 	Maximum Amount Limitation	 	 	32	 
	Section 2.20
	 	Banks Records	 	 	33	 
	Section 2.21
	 	Funding of Advances	 	 	33	 
	Section 2.22
	 	Participation Obligations Absolute; Failure to Fund Participation	 	 	33	 
	Section 2.23
	 	Farm Credit System Entity Equity Interests	 	 	33	 
	Section 2.24
	 	Compensation	 	 	34	 
	Section 2.25
	 	Excess Cash Flow	 	 	34	 
	Section 2.26
	 	Administrative Fee	 	 	35	 
	Section 2.27
	 	Commitment Fee	 	 	35	 
	Section 2.28
	 	Mitigation Obligations; Replacement of Banks	 	 	35	 
	Section 2.29
	 	Reserves on LIBOR Rate Loans	 	 	36	 
	Section 2.30
	 	Debt Service Reserve Account	 	 	36	 
	Section 2.31
	 	Commitment Termination	 	 	37	 
	 
	 	 	 	 	 	 
	ARTICLE III CONDITIONS PRECEDENT	 	 	 	 
	Section 3.01
	 	Conditions Precedent to Funding	 	 	38	 
	Section 3.02
	 	Conditions Precedent to All Advances	 	 	41	 
	 
	 	 	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES	 	 	 	 
	Section 4.01
	 	Representations and Warranties of the Borrower	 	 	41	 

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	 	 	 	 	Page	 
	ARTICLE V COVENANTS OF THE BORROWER	 	 	 	 
	Section 5.01
	 	Affirmative Covenants	 	 	44	 
	Section 5.02
	 	Negative Covenants	 	 	51	 
	 
	 	 	 	 	 	 
	ARTICLE VI EVENTS OF DEFAULT AND REMEDIES	 	 	 	 
	Section 6.01
	 	Events of Default	 	 	57	 
	Section 6.02
	 	Remedies	 	 	59	 
	Section 6.03
	 	Remedies Cumulative	 	 	60	 
	 
	 	 	 	 	 	 
	ARTICLE VII THE AGENT	 	 	 	 
	Section 7.01
	 	Authorization and Action	 	 	60	 
	Section 7.02
	 	Duties and Powers of Agent	 	 	61	 
	Section 7.03
	 	Obligations of Agent	 	 	61	 
	Section 7.04
	 	Agent and Affiliates	 	 	62	 
	Section 7.05
	 	Bank Credit Decision	 	 	62	 
	Section 7.06
	 	Indemnification	 	 	62	 
	Section 7.07
	 	Successor Agent	 	 	62	 
	Section 7.08
	 	Exchange of Information	 	 	63	 
	Section 7.09
	 	Benefit of the Banks Only	 	 	63	 
	Section 7.10
	 	Authorized Actions	 	 	63	 
	 
	 	 	 	 	 	 
	ARTICLE VIII MISCELLANEOUS	 	 	 	 
	Section 8.01
	 	Amendments, etc.	 	 	63	 
	Section 8.02
	 	Notices, etc.	 	 	64	 
	Section 8.03
	 	No Waiver; Remedies	 	 	65	 
	Section 8.04
	 	Costs, Expenses and Taxes	 	 	65	 
	Section 8.05
	 	Right of Set-off	 	 	65	 
	Section 8.06
	 	Severability of Provisions	 	 	65	 
	Section 8.07
	 	Binding Effect; Successors and Assigns; Participations	 	 	66	 
	Section 8.08
	 	Consent to Jurisdiction	 	 	67	 
	Section 8.09
	 	Governing Law	 	 	67	 
	Section 8.10
	 	Banks’ Obligations Several, Not Joint	 	 	67	 
	Section 8.11
	 	Execution in Counterparts	 	 	67	 
	Section 8.12
	 	Survival	 	 	67	 
	Section 8.13
	 	Entire Agreement	 	 	68	 
	Section 8.14
	 	Waiver of Borrower Rights	 	 	68	 
	Section 8.15
	 	Waiver of Jury Trial	 	 	68	 
	Section 8.16
	 	Confidentiality	 	 	68	 

iii

 

LIST OF SCHEDULES AND EXHIBITS

	 	 	 
	Schedule 2.01 Commitments
	Schedule 2.23 Farm Credit System Entities
	Schedule 3.01(c) Real Property
	Schedule 4.01(a) Description of Certain
Transactions Related to the Borrower’s Membership Interests (Units)
	Schedule 4.01(f) Description of Certain Threatened Actions, etc.
	Schedule 4.01(k) Location of Inventory and Farm Products; Third Parties in Possession; Crops
	Schedule 4.01(l) Office Locations; Fictitious Names, etc.
	Schedule 4.01(p) Intellectual Property
	Schedule 4.01(t) Environmental Compliance
	Schedule 5.02(a) Description of Certain Liens, Lease Obligations, etc.
	Schedule 5.02(k) Transactions with Affiliates
	   
	Exhibit A Borrowing Base Certificate
	Exhibit B Certificate of Substantial Completion
	Exhibit C [Reserved]
	Exhibit D Compliance Certificate
	Exhibit E Form of Term Note
	Exhibit F [Reserved]
	Exhibit G Form of Revolving Line of Credit Note
	Exhibit H Form of Term Revolving Note
	Exhibit I Form of Letter of Credit
	Exhibit J [Reserved]
	Exhibit K Form of Bank Supplement

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CREDIT AGREEMENT

     THIS CREDIT AGREEMENT (this “Agreement”), is entered into as of February 7, 2007, by and among
US BIO PLATTE VALLEY, LLC, a Nebraska limited liability company (“Borrower”), AGSTAR FINANCIAL
SERVICES, PCA (“AgStar”), the commercial, banking or financial institutions whose signatures appear
on the signature pages hereof or which hereafter become parties hereto pursuant to Section 8.07
(AgStar and such commercial, banking or financial institutions are sometimes hereinafter
collectively the “Banks” and individually a “Bank”), and AGSTAR FINANCIAL SERVICES, PCA as
Administrative Agent (the “Agent”) for itself and the other Banks.

RECITALS

     A. The Borrower has requested that the Banks extend to it various credit facilities for the
purposes of acquiring, constructing, equipping, furnishing and operating an ethanol production
facility to be located in Merrick County, Nebraska (the “Project”).

     B. The Banks have agreed to make such loans to the Borrower pursuant to the terms of this
Agreement.

AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing, intending to be legally bound hereby, and
in consideration of the Banks making one or more loans to the Borrower, the Agent, the Banks, and
the Borrower agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING MATTERS

     Section 1.01. Certain Defined Terms. All capitalized terms used in this Agreement
shall have the following meanings. Terms not otherwise defined in this Agreement shall have the
meanings attributed to such terms in the Uniform Commercial Code as in effect in the State of
Minnesota, as amended from time to time (the “UCC”). All references to dollar amounts shall mean
amounts in lawful money of the United States of America. The terms “include”, “including” and
similar terms are to be construed as if followed by the phrase “without limitation”.

“Accounts” means all of the Borrower’s accounts, as such term is defined in the UCC,
including, the aggregate unpaid obligations of customers and other account debtors to the
Borrower arising out of the sale or lease of goods or rendition of services by the Borrower
on an open account or deferred payment basis.

“Adjustment Date” has the meaning specified in Section 2.03(c).

“Advances” means the Loans or Letters of Credit provided to the Borrower pursuant to this
Agreement.

“Affiliate” means, as to any Person, any other Person: (a) that directly or indirectly,
through one or more intermediaries, controls or is controlled by, or is under common control
with, such Person, or (b) that directly or indirectly beneficially owns or holds ten percent
(10%) or more of any class of voting stock or membership interests (units) having ordinary
voting power for the election of directors (or persons performing similar functions) of such
Person. The term “control” means the

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possession, directly or indirectly, of the power to direct or cause direction of the
management and policies of a Person, whether through the ownership of voting securities, by
contract, or otherwise; provided, however, in no event shall the Banks or any Bank be deemed
an Affiliate of the Borrower or any of its Subsidiaries.

“Affiliated Borrower” means any of US Bio Janesville, LLC, US Bio Ord, LLC, US Bio
Hankinson, LLC, US Bio Dyersville, LLC, US Bio Albert City, LLC or US Bio Woodbury, LLC.

“Agent” means AgStar in its capacity as Agent under any of the Loan Documents, or any
successor Agent appointed pursuant to Section 7.07.

“Agreement” means this Agreement, as amended, restated, supplemented or otherwise modified
from time to time, together with all exhibits and schedules attached hereto or made a part
hereof.

“Allowed Distributions” has the meaning specified in Section 5.02(b).

“Amortization Date” has the meaning specified in Section 2.03(e).

“Availability Date” means the date on which all conditions precedent to the initial Advance
under the Term Revolving Loan or under the Revolving Line of Credit Loan, as the case may
be, are satisfied.

“Banks” has the meaning specified in the preamble and shall include the Swingline Bank and
the Issuer.

“Bank Supplement” has the meaning specified in Section 8.07(b).

“Borrower” has the meaning set forth in the preamble.

“Borrower’s Equity” means funds equal to forty percent (40%) of Project Costs.

“Borrowing Base” means, at any time, the lesser of: (i) Ten Million and No/100 Dollars
($10,000,000.00), or (ii) the sum of: (A) seventy-five percent (75%) of the Borrower’s
Eligible Accounts Receivable, plus (B) seventy-five percent (75%) of the Borrower’s Eligible
Inventory.

“Borrowing Base Certificate” means a certificate, substantially in the form of Exhibit A
attached hereto, properly completed and duly executed by an authorized Senior Officer of the
Borrower.

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial
banks are authorized to close under the Laws of the State of Minnesota, or are required to
be closed in the State of Minnesota, and, if such day relates to any LIBOR Rate Loan, means
any such day on which dealings in dollar deposits are conducted by and between banks in the
applicable offshore dollar interbank market.

“Capital Expenditures” means, for any period, the sum of all amounts that would, in
accordance with GAAP, be included as additions to property, plant and equipment on a
statement of cash flows for the Borrower during such period, with respect to: (a) the
acquisition, construction, improvement, replacement or betterment of land, buildings,
machinery, equipment or of any other fixed assets or

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leaseholds, or (b) other capital expenditures and other uses recorded as capital
expenditures having substantially the same effect.

“Certificate of Substantial Completion” means a Certificate of Substantial Completion,
substantially in the form of Exhibit B hereto or otherwise in form and substance reasonably
acceptable to the Agent, executed by the General Contractor and acknowledged by the Borrower
and the Inspecting Engineer, certifying the date of Substantial Completion of the Work (as
defined in the Design Agreement) under the Design Agreement.

“Closing Date” means February 7, 2007.

“Code” means the Internal Revenue Code, as amended, and the regulations and published
interpretations thereunder.

“Collateral” means and includes all property and assets granted as collateral security for
the Loans or other indebtedness under the Loan Documents, in favor of the Agent and/or the
Banks, whether real or personal property, whether granted directly or indirectly, whether
granted now or in the future.

“Commitments” means the respective amounts committed to the Borrower by the Banks under this
Agreement, including the Term Loan Commitment, the Term Revolving Loan Commitment, the
Revolving Line of Credit Commitment and the Swingline Commitment.

“Compliance Certificate” means a certificate, substantially in the form of Exhibit D hereto,
of the Treasurer or other Senior Officer of the Borrower, setting forth the calculations of
current financial covenants set forth in Section 5.01, and: (a) stating the Financial
Statements fairly present in all material respects the financial condition of the Borrower
in accordance with GAAP (subject to year end adjustments and the absence of footnotes with
respect to unaudited interim Financial Statements) and, other than the unaudited interim
Financial Statements, have been prepared in accordance with GAAP, and (b) stating whether
they have knowledge of the existence of any Event of Default as of the date of the
Compliance Certificate, and if so, stating in reasonable detail the facts with respect
thereto.

“Construction Contract” means any and all material written contracts between the Borrower
and any Contractor relating in any way to the construction of the Project, including the
performing of labor or the furnishing of standard or specially fabricated materials in
connection therewith.

“Construction Documents” has the meaning specified in the Design Agreement.

“Contractor” means and includes any Person, including the General Contractor, engaged to
work on or to furnish labor, materials or supplies for the Project.

“Current Portion of Long Term Debt” means that portion of Funded Debt payable within one
year from the date of such determination, determined in accordance with GAAP.

“Debt” means without duplication: (a) indebtedness for borrowed money or for the deferred
purchase price of property or services (other than trade payables or accrued liabilities
incurred in the ordinary course of business), (b) obligations as lessee under leases which
shall have been or should be, in accordance with GAAP, recorded as capital leases, (c)
obligations under guaranties in respect of, and obligations (contingent or otherwise) to
purchase or otherwise acquire, or otherwise to assure a

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creditor against loss in respect of, indebtedness or obligations of others of the kinds
referred to in clause (a) or (b) above or (d) below, and (d) the undrawn amount of letters
of credit issued for the Borrower and all unpaid reimbursement obligations hereunder.

“Debt Service Reserve Account” means that certain Account maintained by the Borrower for the
benefit of the Agent, for the purpose set forth in Section 2.30.

“Deed of Trust” means that certain Security Agreement/Deed of Trust, Security Agreement,
Assignment of Leases and Rents and Fixture Filing of even date herewith, executed by the
Borrower in favor of the Agent, for the benefit of the Banks, which creates a Lien on the
Real Property, as the same may be amended, restated, supplemented or otherwise modified from
time to time.

“Default” shall mean any event, fact, circumstance or condition that, after any requirement
for the giving of applicable notice or passage of time or both has been satisfied, would
constitute, be or result in an Event of Default.

“Defaulting Bank” means any Bank that (a) has failed to fund any portion of the Term Loan or
the Revolving Loans, including Letters of Credit, required to be funded by it hereunder
within two (2) Business Days of the date required to be funded by it hereunder, (b) has
otherwise failed to pay over to the Agent or any other Bank any other amount required to be
paid by it hereunder within two (2) Business Days of the date when due, unless such amount
is the subject of a good faith dispute or (c) has been deemed insolvent or become the
subject of a bankruptcy or insolvency proceeding.

“Default Rate” means the lesser of: (a) the Maximum Rate; or (b) the rate per annum which
shall from day-to-day be equal to two percent (2%) in excess of the then applicable rate of
interest under this Agreement or the applicable Note, if any.

“Design Agreement” means that certain Lump Sum Design-Build Contract, dated as of April 24,
2006, between the Borrower and the General Contractor, as the same may be amended, restated,
supplemented or otherwise modified from time to time.

“DGS” means distillers grains.

“Distribution” means any dividend, distribution or similar payment or transfer of property
by the Borrower to any member of the Borrower in its capacity as such.

“EBITDA” means for any period, the total of the following each calculated without
duplication for the Borrower for such period: (a) Net Income, plus (b) any provision for
(or less any benefit from) Income Taxes included in determining such Net Income, plus (c)
Interest Expense deducted in determining such Net Income, plus (d) amortization and
depreciation expense deducted in determining such net income all as determined in accordance
with GAAP.

“Eligible Accounts Receivable” means all unpaid Accounts, net of any credits, except that
the following shall not in any event be deemed Eligible Accounts Receivable:

(a) that portion of Accounts unpaid forty-five (45) days or more after the invoice
date;

(b) that portion of Accounts that is disputed or subject to a claim of offset or a
contra account;

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(c) that portion of Accounts for which goods giving rise to such Account have not
yet been shipped or for which rendition of services have not yet been performed, as
applicable, by the Borrower to the customer;

(d) Accounts owed by any unit of government, whether foreign or domestic (except
Incentive Payments) unless, with respect to Accounts owed by the government of the
United States, the Federal Assignment of Claims Act of 1940, as amended (31 U.S.C. §
3727 et seq. and 41 U.S.C. § 15 et seq.), has been complied with to the Agent’s
reasonable satisfaction;

(e) Accounts owed by an account debtor located outside the United States unless such
Account is backed by a letter of credit or foreign credit insurance reasonably
acceptable to the Agent which is in the possession of or has been assigned to the
Agent;

(f) Accounts owed by an account debtor that is insolvent, the subject of bankruptcy
proceedings or has gone out of business;

(g) Accounts owed by a member, Guarantor, Affiliate, director, officer or employee
of the Borrower, other than accounts owed by Provista Renewable Fuels Marketing,
LLC, United Bio Energy Ingredients, LLC, or any Affiliated Borrower;

(h) Accounts not subject to a duly perfected Lien in favor of the Agent or which are
subject to any Lien in favor of any Person other than the Agent, other than
Permitted Liens pursuant to Section 5.02(a)(iv) including any payment or performance
bond;

(i) that portion of Accounts that has been restructured, extended, or reduced other
than in the ordinary course of business;

(j) that portion of Accounts that constitutes advertising, finance charges, service
charges or sales or excise taxes; and

(k) Accounts, or portions thereof, otherwise deemed ineligible by the Agent, in its
good faith discretion, exercised in its reasonable business judgment with respect to
which the Agent has provided at least two (2) Business Days prior written notice to
the Borrower.

In the event that an Account which was previously an Eligible Account Receivable ceases to
be an Eligible Account Receivable hereunder, the Borrower shall exclude such Account from
Eligible Accounts Receivable on, and at the time of submission to the Agent of, the next
Borrowing Base Certificate.

“Eligible Inventory” means all Inventory held for ultimate sale or lease, or which has been
or will be supplied under contracts of service, or which are raw materials, work in process,
or materials used or consumed in the Borrower’s business, excluding all of the following
Inventory:

(a) covered by documents of title, instruments, or chattel paper when these
documents, instruments and paper are not owned and held by the Borrower or are
subject to competing Liens;

(b) intended to be sold outside of the ordinary course of business;

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(c) consigned, sold or leased to others or held on consignment or lease from others
or subject to a bailment;

(d) subject to a competing Lien, other than a Permitted Lien;

(e) paid for in advance with progress payments or any other sums to the Borrower in
anticipation of the sale and delivery of Inventory;

(f) that is obsolete or not salable in the ordinary course of business; and

(g) that the Agent, in its good faith discretion, disqualifies as Eligible
Inventory, exercised in its reasonable business judgment with respect to which the
Agent has provided at least two (2) Business Days prior written notice to the
Borrower.

In the event that Inventory which was previously Eligible Inventory ceases to be Eligible
Inventory hereunder, the Borrower shall exclude such Inventory from Eligible Inventory on,
and at the time of submission to the Agent of, the next Borrowing Base Certificate.

“Environment” means all indoor or outdoor air, surface water, groundwater, surface or
subsurface land, including all fish, wildlife, biota and all other natural resources.

“Environmental Laws” means all federal, state, local, and foreign laws and regulations
relating to pollution or protection of human health or the Environment, including without
limitation, laws relating to Releases or threatened Releases of Hazardous Materials or
otherwise relating to the manufacture, processing, distribution, use, treatment, storage,
transport or handling of Hazardous Materials.

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

“Event of Default” has the meaning specified in Section 6.01.

“Excess Cash Flow” means for any period EBITDA for such period, less, for such period, the
sum of: (a) voluntary or required payments in respect of Funded Debt, (b) Maintenance
Capital Expenditures, (c) Allowed Distributions, (d) Income Taxes paid in cash, (e) Interest
Expense paid in cash, and (f) non cash income.

“Excess Cash Flow Payment” has the meaning specified in Section 2.25.

“Excess Distributions” has the meaning specified in Section 5.02(b).

“Extraordinary Items” means items which are material and significantly different from the
Borrower’s typical business activities, determined in accordance with GAAP.

“Financial Statements” has the meaning specified in Section 5.01(c).

“Fixed Charge Coverage Ratio” means, as of the last day of any period of twelve consecutive
months, the ratio of (i) EBITDA, in each case for such period, divided by (ii) the sum of
(the Current

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Portion of Long Term Debt + Interest Expense + Dividends + Distributions + Tax Distributions
+ Maintenance Capital Expenditures), in each case for such period.

“Fixed Rate Loan” means that portion of the Term Loan which shall accrue interest at a fixed
rate pursuant to Section 2.03(e).

“Food Security Act” means the Food Security Act of 1985, 7 U.S.C. § 1631, as amended, and
the regulations promulgated thereunder.

“Funded Debt” means the principal amount of all Debt of the Borrower having a final maturity
of more than one year from the date of origin thereof (or which is renewable or extendible
at the option of the obligor for a period or periods more than one year from the date of
origin), all determined in accordance with GAAP for the period in question, excluding,
however, for purposes of calculating Excess Cash Flow, the principal amount paid under any
Term Revolving Note or any other revolving line of credit used by Borrower for working
capital purposes if such payment is not accompanied by a permanent reduction in the
commitment for such facility.

“GAAP” means generally accepted accounting principles in effect from time to time, and with
respect to the calculation of covenants set forth in Sections 5.01(d), (e), (f) and (g),
GAAP shall mean generally accepted accounting principles consistent with those applied in
the preparation of the Financial Statements referred to in Section 5.01(c) for the Borrower.

“General Contractor” means Fagen, Inc., a Minnesota corporation, and its successors and
permitted assigns or such other general contractor selected by the Borrower and reasonably
acceptable to the Agent.

“Governmental Authority” means and includes any and all courts, boards, agencies,
commissions, or authorities of any nature whatsoever for any governmental unit (federal,
state, county, district, municipality, city, or otherwise) in existence at the time of
determination.

“Guarantor” means US BioEnergy Corporation, a South Dakota corporation.

“Guaranty” means that certain Continuing Guaranty of even date herewith given by the
Guarantor for the benefit of the Banks.

“Hazardous Material” means all petroleum and petroleum products (including crude oil or any
fraction thereof), asbestos or asbestos containing materials, and all other materials,
chemicals or substances which are regulated by, form the basis of liability under or are
defined as hazardous, extremely hazardous, toxic or words of similar import, including
materials listed in 49 C.F.R. Section 172.101 and materials regulated under or defined as
hazardous pursuant to any of the following: the Comprehensive Environmental Response,
Compensation, and Liability Act, 42 U.S.C. Section 9601 et seq.; the Federal Water Pollution
Control Act, 33 U.S.C. Section 1251 et seq.; the Clean Air Act, 42 U.S.C. Section 7401 et
seq.; the Toxic Substances Control Act, 15 U.S.C. Section 2601 et seq.; the Emergency
Planning and Community Right-to-Know Act of 1986, 42 U.S.C. Section 11001 et seq.; the Safe
Drinking Water Act, 42 U.S.C. Section 300(f) et seq.; the Hazardous Materials Transportation
Act, 49 U.S.C. Section 1801 et seq.; the Federal Insecticide, Fungicide and Rodenticide Act
7 U.S.C. Section 136 et seq.; the Resource Conservation and Recovery Act of 1976, 42 U.S.C.
Section 6901 et seq.; the Toxic Substances Control Act, 15 U.S.C. Section 2601 et seq.; the
Oil Pollution Act of 1990, 33 U.S.C. Section 2701 et seq.

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“Incentive Payments” means any and all federal or state governmental subsidies, payments,
transfers or other benefits, whether now or hereafter established, received, or scheduled to
be received within thirty (30) days, by the Borrower.

“Income Taxes” means applicable federal, state, local or foreign income tax including any
interest, penalty, or addition thereto, whether disputed or not.

“Intellectual Property” has the meaning specified in Section 4.01(p).

“Interest Expense” means for any period, the total interest expense of the Borrower
calculated on a consolidated basis in accordance with GAAP.

“Interest Period” means the period commencing on the first day of each calendar month and
shall remain in effect until and including the last day of each calendar month.
Notwithstanding the foregoing: (a) each Interest Period which would otherwise end on a day
which is not a Business Day shall end on the next succeeding Business Day or if such
succeeding Business Day falls in the next succeeding calendar month, on the next preceding
Business Day, (b) any Interest Period which would otherwise extend beyond the Maturity Date
shall end on the Maturity Date, and (c) no Interest Period shall have a duration of less
than one (1) month except the first and last month.

“Inventory” means all of the Borrower’s inventory, as such term is defined in the UCC,
whether now owned or hereafter acquired, whether consisting of whole goods, spare parts or
components, supplies or materials, whether acquired, held or furnished for sale, for lease
or under service contracts or for manufacture or processing, and wherever located.

“Issuer” means (a) AgStar or (b) any successor Issuer pursuant to Section 2.08, in its
capacity as the issuer of Letters of Credit hereunder.

“Letter of Credit” means the Revolving Letters of Credit issued by the Issuer pursuant to
the terms and conditions of this Agreement.

“Letter of Credit Liabilities” means, at any time, the aggregate maximum amount available to
be drawn under all outstanding Letters of Credit (in each case, determined without regard to
whether any conditions to drawing could then be met) and all unreimbursed drawings under
Letters of Credit.

“LIBOR Rate” (London Interbank Offered Rate) means the rate (rounded upward to the nearest
sixteenth) quoted by the British Bankers Association (the “BBA”) at 11:00 A.M. London time
two (2) Banking Days (as hereinafter defined) before the commencement of the Interest Period
for the offering of U.S. Dollar deposits in the London interbank market for an Interest
Period of one month, as published by Bloomberg or another major information vendor listed on
BBA’s official website. “Banking Day” shall mean a day on which the Banks are 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.

“LIBOR Rate Loan” means any Loan bearing interest at a rate determined by reference to the
LIBOR Rate.

8

 

“Lien” means any mortgage, deed of trust, pledge, hypothecation, collateral assignment,
encumbrance, lien (statutory or other) or other security interest of any kind, or any
preference, priority or other security agreement (including any conditional sale or other
title retention agreement and any capital lease having substantially the same economic
effect as any of the foregoing).

“Loan and Carrying Charges” means all commitment fees to the Banks, brokerage fees, standby
fees, interest charges, service fees, attorneys’ fees, contractors’ fees, developers’ fees,
funding fees, title insurance fees and charges, recording fees, registration taxes, real
estate taxes, special assessments, insurance premiums, and utility charges incurred by the
Borrower in the construction of the Project and issuance of the Notes, all costs incurred in
acquisition of the Real Property and any other costs incurred in the development of the
Project.

“Loan Documents” means this Agreement, the Notes, the Guaranty, the Bank Supplements, the
Security Agreement, the Deed of Trust, the Issuer’s letter of credit requests and
reimbursement agreements, and all other agreements, documents, instruments, and certificates
executed by the Borrower delivered to, or in favor of, the Agent or the Banks under this
Agreement or in connection herewith or therewith, including all agreements, documents,
instruments, and certificates delivered in connection with the extension of Advances by the
Banks.

“Loan Obligations” means all obligations, indebtedness, and liabilities of the Borrower to
the Agent or the Banks, including the Reimbursement Obligations, arising pursuant to any of
the Loan Documents, whether now existing or hereafter arising, whether direct, indirect,
related, unrelated, fixed, contingent, liquidated, unliquidated, joint, several, or joint
and several, including the obligation of the Borrower to repay the Advances, interest on the
Advances, and all fees, costs, and expenses (including reasonable attorneys’ fees and
expenses) provided for in the Loan Documents.

“Loan/Loans” means and includes the Term Loan, the Term Revolving Loan, the Revolving Line
of Credit Loan, the Swingline Loan, and any other financial accommodations extended to the
Borrower by the Agent or the Banks pursuant to the terms of this Agreement.

“Long Term Debt” means indebtedness that matures more than one year after the date of
determination thereof.

“Long Term Marketing Agreement” means any contract, agreement or understanding of the
Borrower having a marketing term of one year or more relating to the sale of any raw
materials, Inventory, products or by-products of the Borrower, and involving gross sales by
the Borrower in excess of One Million and No/100 Dollars ($1,000,000.00) annually.

“Maintenance Capital Expenditures” means all Capital Expenditures made in the ordinary
course of business to maintain existing business operations of the Borrower in any fiscal
year, determined in accordance GAAP.

“Material Adverse Effect” means : (a) a material adverse effect upon the validity or
enforceability of any Loan Document or any material term or condition contained therein; (b)
a material and adverse effect on the condition (financial or otherwise), business assets,
operations, or property of the Borrower and its Subsidiaries taken as a whole; or (c)
material impairment on the ability of the Borrower to perform its obligations under the Loan
Documents.

9

 

“Material Contract” means (a) any written contract or written agreement of the Borrower or
any Subsidiary involving monetary liability of or to any Person in an amount in excess of
One Million and No/100 Dollars ($1,000,000.00) per annum, and (b) any other written contract
or written agreement of the Borrower or any Subsidiary, the failure to comply with which
could reasonably be expected to have a Material Adverse Effect; provided, however, that any
contract or agreement which is terminable by a party other than the Borrower or its
Subsidiaries without cause upon notice of ninety (90) days or less shall not be considered a
Material Contract.

“Maturity Date” means the fifth (5th) anniversary of the Closing Date.

“Maximum Excess Cash Flow Payment” has the meaning specified in Section 2.25.

“Maximum Rate” means the maximum nonusurious interest rate, if any, at any time, or from
time to time, that may be contracted for, taken, reserved, charged or received under
applicable state or federal laws.

“Monthly Payment Date” means the first day of each calendar month.

“Net Income” means net income of the Borrower and its Subsidiaries as determined in
accordance with GAAP.

“Net Worth” means, with respect to the Borrower and its Subsidiaries, the excess of total
assets over total liabilities except subordinated Debt, total assets and total liabilities
each to be determined in accordance with GAAP consistent with those applied in the
preparation of the Financial Statements referred to in Section 5.01(c) for the Borrower.

“Note/Notes” means and includes the Term Note, the Term Revolving Note, the Revolving Line
of Credit Note, the Swingline Note, and all other promissory notes executed and delivered to
the Agent or the Banks by the Borrower pursuant to the terms of this Agreement, as the same
may be amended, restated, supplemented, extended or otherwise modified from time to time.

“Obligations” means the Loan Obligations and/or the Reimbursement Obligations.

“Ordinary Trade Payable Dispute” means trade accounts payable in an aggregate amount not in
excess of One Hundred Thousand and No/100 Dollars ($100,000.00) with respect to the
Borrower, and with respect to which: (a) there exists a bona fide dispute between the
Borrower and the vendor, (b) the Borrower is contesting the same in good faith by
appropriate proceedings, and (c) the Borrower has established appropriate reserves on its
Financial Statements as required by GAAP.

“Outstanding Credit” means at any time of determination the sum of (a) the aggregate amount
of Advances then outstanding (or when calculated with respect to a Bank, the aggregate
amount of Advances made by such Bank), plus (b) the aggregate amount of Letter of Credit
Liabilities (or when calculated with respect to a Bank, including the Agent as a Bank, such
Bank’s participation interest in such Letter of Credit Liabilities), if any.

“Outstanding Revolving Advances” means the total Outstanding Credit under Section 2.05.

“Outstanding Term Revolving Advances” means the total Outstanding Credit under Section 2.04.

10

 

“Owner’s Equity” means the Net Worth divided by total assets of the Borrower and its
Subsidiaries, measured initially at the end of the first twelve (12) months after the
Substantial Completion Date, maintained thereafter, and expressed as a percentage.

“Permitted Liens” has the meaning specified in Section 5.02.

“Person” means any individual, corporation, business trust, association, limited liability
company, partnership, joint venture, governmental authority, or other entity.

“Personal Property” means all buildings, structures, equipment, fixtures, improvements,
building supplies and materials and other personal property now or hereafter attached to,
located in, placed in or necessary to the use of the improvements on the Real Property
including all machinery, fixtures, equipment, furnishings, and appliances, as well as all
renewals, replacements, additions, and substitutes thereof, and all products and proceeds
thereof, and including all accounts, instruments, chattel paper, other rights to payment,
money, deposit accounts, insurance proceeds, commodity accounts, investment property and
general intangibles of the Borrower, whether now owned or hereafter acquired.

“Project” means any and all buildings, structures, fixtures, and other improvements made to
the Real Property as part of the development and construction of the ethanol production
facility in Merrick County, Nebraska, for which the Loans to the Borrower are being made
hereunder.

“Project Costs” means the total of all costs of acquiring the Real Property and developing
and constructing the Project together with all Loan and Carrying Charges.

“Pro Rata Share” means (i) with respect to all payments, computations and other matters
relating to the Term Loan of any Bank, the percentage obtained by dividing (a) the Term Loan
Exposure of such Bank by (b) the aggregate Term Loan Exposure of all Banks, (ii) with
respect to all payments, computations and other matters relating to the Term Revolving Loan
Commitment or Term Revolving Loans of any Bank, the percentage obtained by dividing (a) the
Term Revolving Loan Exposure of such Bank by (b) the aggregate Term Revolving Loan Exposure
of all Banks and (iii) with respect to all payments, computations and other matters relating
to the Revolving Line of Credit Commitment or Revolving Line of Credit Loans of any Bank or
any Letters of Credit issued or participations purchased therein by any Bank or any
participations in any Swingline Loans purchased by any Bank, the percentage obtained by
dividing (a) the Revolving Line of Credit Exposure of such Bank by (b) the aggregate
Revolving Line of Credit Exposure of all Banks. For all other purposes with respect to each
Bank, “Pro Rata Share” means the percentage obtained by dividing (a) an amount equal to the
sum of the Term Loan Exposure, Term Revolving Loan Exposure and Revolving Line of Credit
Exposure of such Bank by (b) an amount equal to the sum of the aggregate Term Loan Exposure,
Term Revolving Loan Exposure and Revolving Line of Credit Exposure.

“Real Property” means that real property located in Merrick County, Nebraska, owned by the
Borrower, upon which the Project has been constructed, and which is described in Schedule
3.01(c) hereto.

“Refunding Advance” means an Advance made pursuant to Section 2.03(f).

“Reimbursement Obligation” means the obligation of the Borrower to reimburse the Issuer for
any drawing under a Letter of Credit.

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“Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, leaching, dumping, or disposing of Hazardous Material into the
Environment.

“Request for Advance” means any request for a Revolving Advance made pursuant to Section
2.04 or Section 2.05.

“Required Banks” means at any time, Banks having aggregate Total Percentages in excess of
fifty percent (50%); provided that the Commitments of, held, or deemed held, by any
Defaulting Bank shall be excluded for purposes of making a determination of the Required
Banks.

“Required Debt Service Reserve Deposit Amount” has the meaning specified in the Section
2.30.

“Revolving Advances” means the Term Revolving Loan Advances and the Revolving Line of Credit
Advances.

“Revolving Commitment” means, with respect to any Bank, the total of such Bank’s Term
Revolving Loan Commitment and Revolving Line of Credit Commitment, as amended from time to
time pursuant to the terms of this Agreement.

“Revolving Letters of Credit” has the meaning specified in Section 2.05(h).

“Revolving Letter of Credit Liabilities” means, at any time, the aggregate maximum amount
available to be drawn under all outstanding Revolving Letters of Credit (in each case,
determined without regard to whether any conditions to drawing could then be met) and all
unreimbursed drawings under all Revolving Letters of Credit.

“Revolving Letter of Credit Usage” means, as of any date of determination, the sum of (i)
the maximum aggregate amount which is available for drawing under all Revolving Letters of
Credit then outstanding, and (ii) the aggregate amount of all drawings under Revolving
Letters of Credit honored by the Issuer and not theretofore reimbursed by or on behalf of
the Borrower.

“Revolving Line of Credit Advance” means any Advance made under Section 2.05.

“Revolving Line of Credit Commitment” means, with respect to any Bank, the amount set forth
as the “Revolving Commitment” of such Bank opposite such Bank’s name on: (a) Schedule 2.01
hereto, or (b) after the execution of a Bank Supplement, the signature page of the then most
recent Bank Supplement to which such Bank is a party, as amended from time to time pursuant
to the terms of this Agreement.

“Revolving Line of Credit Exposure” means, with respect to any Bank as of any date of
determination, (i) prior to the termination of the Revolving Line of Credit Commitments,
such Bank’s Revolving Line of Credit Commitment and (ii) after the termination of the
Revolving Line of Credit Commitments, the sum of (a) the aggregate outstanding principal
amount of the Revolving Line of Credit Loans of such Bank, (b) in the case of the Issuer,
the aggregate Revolving Letter of Credit Usage in respect of all Revolving Letters of Credit
issued by such Bank (net of any participations by Banks in such Revolving Letters of
Credit), (c) the aggregate amount of all participations held by such Bank in any outstanding
Revolving Letters of Credit or any unreimbursed drawing under any Revolving Letter of
Credit, (d) in the case of the Swingline Bank, the aggregate outstanding principal

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amount of all Swingline Loans (net of any participations therein by other Banks) and (e) the
aggregate amount of all participations therein by such Bank in any outstanding Swingline
Loans.

“Revolving Line of Credit Loan” means the line of credit loan from the Banks to the Borrower
in the amount of Ten Million and No/100 Dollars ($10,000,000.00) pursuant Section 2.05.

“Revolving Line of Credit Loan Maturity Date” means the three hundred sixty-fourth
(364th) day after the Closing Date.

“Revolving Line of Credit Note” means a promissory note substantially in the form of Exhibit
G hereto, executed by the Borrower pursuant to the terms and conditions of this Agreement.

“Revolving Line of Credit Termination Date” has the meaning specified in Section 2.05(a).

“Revolving Loans” means the Revolving Line of Credit Loan and the Term Revolving Loan and
any other revolving loan provided by the Banks to the Borrower pursuant to this Agreement.

“SARA” means the Superfund Amendment and Reauthorizations Act of 1986, as amended, and all
regulations promulgated thereunder.

“Security Agreement” means that certain Security Agreement of even date herewith executed by
the Borrower in favor of the Agent for the benefit of the Banks, and includes any agreements
which create a Lien on the Collateral, as the same has been and may hereafter be amended,
restated, supplemented or otherwise modified from time to time.

“Senior Officer” means any of Borrower’s Chief Executive Officer, Chief Financial Officer,
President, Treasurer, or any Vice President.

“Subsidiary,” as to any Person, means any corporation or other entity in which more than 50%
of all equity interests is owned directly or indirectly by such Person. Unless otherwise
qualified herein, all references to a “Subsidiary” or “Subsidiaries” in this Agreement shall
refer to a Subsidiary or Subsidiaries of the Borrower.

“Substantial Completion” has the meaning set forth therefor in the Design Agreement.

“Substantial Completion Date” means the date certified by the General Contractor in the
Certificate of Substantial Completion as the date of Substantial Completion of the Work (as
defined in the Design Agreement) under the Design Agreement.

“Swingline Advances” means any Advance made under Section 2.06(b).

“Swingline Bank” means AgStar in its capacity under Section 2.06.

“Swingline Commitment” has the meaning specified in Section 2.06(a).

“Swingline Loans” means the loans made to the Borrower pursuant to Section 2.06, in the
amount of the Swingline Advances.

“Swingline Maturity” has the meaning specified in Section 2.06(d).

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“Tax Distributions” has the meaning specified in Section 5.02(b).

“Term Loan” means the loan from the Banks to the Borrower in an amount not to exceed
Sixty-seven Million Five Hundred Thousand and No/100 Dollars ($67,500,000.00), pursuant to
Section 2.03.

“Term Loan Commitment” means, with respect to any Bank, the amount set forth as the “Term
Loan Commitment” of such Bank opposite such Bank’s name on: (a) Schedule 2.01 hereto, or
(b) after the execution of a Bank Supplement, the signature page of the then most recent
Bank Supplement to which such Bank is a party, as amended from time to time.

“Term Loan Exposure” means, with respect to any Bank, as of the date of any determination,
the outstanding principal amount of the Term Loans of such Bank, provided that, at any time
prior to the making of the Term Loans, the Term Loan Exposure of any Bank shall be equal to
such Bank’s Term Loan Commitment.

“Term Note” means a promissory note, substantially in the form of Exhibit E hereto, executed
by the Borrower pursuant to the terms and conditions of this Agreement.

“Term Revolving Loan” means the loan from the Banks to the Borrower in the amount of Twenty
Two Million Five Hundred Thousand and No/100 Dollars ($22,500,000.00), pursuant Section
2.04.

“Term Revolving Loan Advance” means any Advance made under Section 2.04.

“Term Revolving Loan Commitment” means, with respect to any Bank, the amount set forth as
the “Term Revolving Loan Commitment” of such Bank opposite such Bank’s name on: (a)
Schedule 2.01 hereto, or (b) after the execution of a Bank Supplement, the signature page of
the then most recent Bank Supplement to which such Bank is a party, as amended from time to
time pursuant to this Agreement.

“Term Revolving Loan Exposure” means, with respect to any Bank as of any date of
determination, (i) prior to the termination of the Term Revolving Loan Commitments, such
Bank’s Term Revolving Loan Commitment and (ii) after the termination of the Term Revolving
Loan Commitments, the aggregate outstanding principal amount of the Term Revolving Loans of
such Bank.

“Term Revolving Loan Termination Date” has the meaning specified in Section 2.04(a).

“Term Revolving Note” means a promissory note substantially in the form of Exhibit H hereto,
executed by the Borrower pursuant to the terms and conditions of this Agreement.

“Total Percentage” means, as to any Bank, the percentage which (a) (i) the Term Loan
Exposure of such Bank plus (ii) the Term Revolving Loan Exposure of such Bank plus (iii) the
Revolving Line of Credit Exposure of such Bank is of (b) the sum of (i) the aggregate Term
Loan Exposure of all Banks plus (ii) the aggregate Term Loan Revolving Exposure of all banks
plus (iii) the aggregate Revolving Line of Credit Exposure of all Banks; provided that, if
and so long as any Bank is a Defaulting Bank, such Bank’s Total Percentage shall be deemed
for purposes of this definition to be reduced to the extent of the defaulted amount and the
Total Percentage of the Issuer or Swingline Bank, as applicable, shall be deemed for
purposes of this definition to be increased to such extent.

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“Treasury Regulations” means the temporary and final regulations promulgated pursuant to the
Code.

“US Bio Entity” means and includes US BioEnergy Corporation, a South Dakota corporation, and
each Affiliate thereof at any time from and after the date of execution and delivery of this
Agreement.

“Working Capital” means the current assets of the Borrower less the current liabilities of
the Borrower as determined in accordance with GAAP.

     Section 1.02. Accounting Matters. All accounting terms not specifically defined
herein shall be construed in accordance with GAAP, except as otherwise stated herein. To enable
the ready and consistent determination of compliance by the Borrower with its obligations under
this Agreement, the Borrower will not change the manner in which either the last day of its fiscal
year or the last days of the first three fiscal quarters of its fiscal years is calculated. If at
any time after the Closing Date any change in GAAP would have a material effect on the computation
of any financial ratio set forth in this Agreement, and either the Borrower (at the time of
delivery of such Financial Statements) or the Agent shall so request, and in any such case within
60 days of delivery of such Financial Statements, the Agent, the Banks and the Borrower shall
negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof
in light of such change in GAAP (subject to the approval of the Agent); provided that, until so
amended (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior
to such change, and (ii) in the event that such change in GAAP materially modifies any item in the
Financial Statements, the Borrower shall provide to the Agent Financial Statements setting forth a
reconciliation between calculations of such ratio or requirement made before and after giving
effect to such change in GAAP; provided further that such reconciliation shall be required to be
provided only for the four fiscal quarters following such change.

     Section 1.03. Construction. Wherever herein the singular number is used, the same
shall include the plural where appropriate, and words of any gender shall include each other gender
where appropriate. The headings, captions or arrangements used in any of the Loan Documents are,
unless specified otherwise, for convenience only and shall not be deemed to limit, amplify or
modify the terms of the Loan Documents, nor affect the meaning thereof. Unless otherwise expressly
provided herein, references to agreements (including this Agreement) and other contractual
instruments shall be deemed to include all subsequent amendments, restatements and other
modifications thereto, but only to the extent such amendments, restatements and other modifications
are not prohibited by the terms of any Loan Document.

ARTICLE II

AMOUNTS AND TERMS OF THE LOANS

     Section 2.01. The Loans. Subject to the terms and conditions of this Agreement and in
reliance upon the representations and warranties set forth in this Agreement, the Banks have agreed
to lend to Borrower and Borrower has agreed to borrow from the Banks the following amounts, for the
purposes set forth in Schedule 2.01, and as further described below:

          (a) Term Loan. The Banks have agreed to lend to the Borrower an amount not to exceed
Sixty-seven Million Five Hundred Thousand and No/100 Dollars ($67,500,000.00) for Project Costs,
pursuant to the terms and conditions set forth in Section 2.03, and the Term Note;

          (b) [Reserved]

15

 

          (c) Term Revolving Loan. The Banks agree to lend to the Borrower, as of the Closing
Date, and from time to time thereafter on a revolving basis, an amount not to exceed Twenty-two
Million Five Hundred Thousand and No/100 Dollars ($22,500,000.00), pursuant to the terms and
conditions set forth in Section 2.04, and the Term Revolving Note;

          (d) Revolving Line of Credit Loan. The Banks agree to lend to the Borrower, as of the
Closing Date, and from time to time thereafter on a revolving basis, an amount not to exceed Ten
Million and No/100 Dollars ($10,000,000.00), pursuant to the terms and conditions set forth in
Section 2.05, and the Revolving Line of Credit Note; and

          (e) Swingline Loan. The Swingline Bank agrees to lend to the Borrower, from the
Closing Date, and from time to time thereafter on a revolving basis, an amount not to exceed One
Million and No/100 Dollars ($1,000,000.00), pursuant to the terms and conditions set forth in
Section 2.06, and the Swingline Note.

     Section 2.02. [Reserved]

     Section 2.03. Term Loan.

          (a) Amount of Term Loan. On the terms and conditions set forth in this Agreement, the
Banks agree to make a Term Loan to the Borrower, by means of a single advance in an aggregate
amount not to exceed Sixty-seven Million Five Hundred Thousand and No/100 Dollars ($67,500,000.00).

          (b) Purpose. Proceeds of the Term Loan may be used (i) to repay existing indebtedness
of the Borrower, and all interest, fees, prepayment premiums and other amounts due thereunder and
(ii) to pay a Distribution to US BioEnergy Corporation, pursuant to Section 2.03(f), which
Distribution shall not be deemed to be a payment made under Section 5.02(b)(iv) for any purpose.
The Borrower agrees that the proceeds of the Term Loan are to be used only for the purposes set
forth in this Section 2.03(b)

          (c) Term Loan Interest Rate. Subject to the provisions of Sections 2.03 and 2.04, the
portion of the Term Loan that has not been converted to a Fixed Rate Loan pursuant to Section
2.03(e) shall bear interest at a rate per annum equal to the LIBOR Rate plus two hundred ninety
(290) basis points. The rate of interest due hereunder shall initially be determined as of the
date hereof and shall thereafter be adjusted as and when the LIBOR Rate changes. All such
adjustments to the rate of interest shall be made and become effective as of the first day of each
calendar month (each such day hereinafter being referred to as an “Adjustment Date”) and shall
remain in effect until and including the last day of each calendar month. All such adjustments to
said rate shall be made and become effective as of each subsequent Adjustment Date, and said rate
as adjusted shall remain in effect until and including the day immediately preceding the next
Adjustment Date. Interest hereunder shall be computed on the basis of a year of three hundred
sixty five (365) days, but charged for actual days principal is outstanding. In no event shall the
applicable rate exceed the Maximum Rate.

          (d) Term Loan Term. The Term Loan term shall run for a period beginning on the
Closing Date and ending on the Maturity Date.

          (e) Conversion to Fixed Rate Loan. On the Closing Date the Borrower may convert up to
but not more than fifty percent (50%) of the Term Loan amount to a Fixed Rate Loan, with the
consent of the Agent, which consent shall not be unreasonably withheld, bearing interest at a rate
equal to two hundred fifty (250) basis points in excess of the five year LIBOR swap rate in effect
on the Closing Date, or another

16

 

rate agreed upon by the Agent and the Borrower. The Borrower shall provide written notice to the
Agent at least thirty (30) days after the Closing Date of its intention to convert any portion of
the Term Loan to a Fixed Rate Loan. Such written notice shall specify the specific dollar amount
that Borrower is electing to convert to a Fixed Rate Loan. Any amount subject to a fixed rate of
interest pursuant to this Section shall not be subject to any adjustments under Section 2.11.

          (f) Refunding Advance. Notwithstanding anything in this Agreement or any Loan
Document to the contrary, the disbursement of the Term Loan will be made by the Agent and the Banks
by way of a Refunding Advance as provided in this Section 2.02(f). The Banks agree to make a
single Refunding Advance to the Borrower on the Closing Date. The Refunding Advance shall be made
available to the Borrower subject to satisfaction of the conditions set forth below in Section
3.01, by (i) the Banks depositing the same in same day funds in an account(s) specified of the
Borrower or (ii) the Banks wire transferring such funds to a Person designated by the Borrower in
writing.

          (g) Repayment of Term Loan. Beginning on March 1, 2007, and continuing on the first
(1st) day of each succeeding month thereafter until the seventh (7th) month
after the Closing Date, the Borrower shall pay to the Agent for the account of the Banks monthly
payments of accrued interest. Beginning on September 1, 2007 (the “Amortization Date”), and
continuing on the first (1st) day of each succeeding month thereafter until the Maturity
Date, the Borrower shall pay to the Agent for the account of the Banks equal monthly payments of
principal and accrued interest in such amounts as would be required to fully amortize the entire
outstanding principal balance of the Term Note, together with accrued interest thereon, over a
period of one hundred fourteen (114) months from the Amortization Date. The outstanding principal
balance, together with all accrued interest, if not paid sooner, shall be due and payable in full
on the Maturity Date. Following the Closing Date, and in addition to all other payments of
principal and interest required under this Agreement and the Term Note, if any, the Borrower shall
annually remit to the Agent for the account of the Banks the Excess Cash Flow Payment pursuant to
Section 2.25.

     Section 2.04. Term Revolving Loan.

          (a) Term Revolving Loan. The Banks agree, on the terms and conditions set forth in
this Agreement, to lend up to Twenty-two Million Five Hundred Thousand and No/100 Dollars
($22,500,000.00) to Borrower on the Closing Date in the form of a Term Revolving Loan and to make
one or more Advances to the Borrower, on a revolving basis, during the period beginning on the
Closing Date and ending on the Business Day immediately preceding the Maturity Date (the “Term
Revolving Loan Termination Date”), in an aggregate principal amount outstanding at any one time not
to exceed Twenty-two Million Five Hundred Thousand and No/100 Dollars ($22,500,000.00). The Term
Revolving Loan shall mature and be due and payable in full at 12:00 P.M. (Minneapolis, Minnesota
time) on the Maturity Date. Term Revolving Loan Advances borrowed, repaid or prepaid may be
reborrowed at any time prior to the Term Revolving Loan Termination Date, provided, however, that
at no time shall the sum of the Outstanding Term Revolving Advances exceed Twenty-two Million Five
Hundred Thousand and No/100 Dollars ($22,500,000.00).

          (b) Purpose. Term Revolving Loan Advances may be used (i) to repay existing
indebtedness of the Borrower, and all interest, fees, prepayment premiums and other amounts due
thereunder and (ii) to pay a Distribution to US BioEnergy Corporation, pursuant to Section
2.03(f), which Distribution shall not be deemed to be a payment made under Section 5.02(b)(iv) for
any purpose. The Borrower agrees that the proceeds of the Term Loan are to be used only for the
purposes set forth in this Section 2.04(b).

          (c) [Reserved]

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          (d) Availability. Subject to the provisions of this Agreement, during the period
commencing on the Availability Date and ending on the Term Revolving Loan Termination Date,
Advances under the Term Revolving Loan will be made as provided in Section 2.04(e).

          (e) Making the Advances. Each Term Revolving Loan Advance, other than the Refunding
Advance, shall be made by the Borrower delivering a Request for Advance to the Agent specifying the
amount of such Term Revolving Loan Advances. Each Request for Advance must be delivered to the
Agent by the Borrower before 12:00 P.M. (Minneapolis, Minnesota time) on a Business Day which is at
least three (3) Business Days prior to the date of such Term Revolving Loan Advance; provided
however that no such Term Revolving Loan Advance shall be made while an Event of Default exists or
if the interest rate for such LIBOR Rate Loan would exceed the Maximum Rate. Any Request for
Advance received by Borrower after 12:00 P.M. (Minneapolis, Minnesota time) on a Business Day shall
be deemed to have been received and be effective on the next Business Day. The amount of the Term
Revolving Loan Advance requested from the Banks shall, subject to the terms and conditions of this
Agreement, be made available to the Borrower by: (i) depositing the same, in same day funds, in an
account of the Borrower, or (ii) wire transferring such funds to a Person or Persons designated by
the Borrower in writing.

          (f) Requests for Advances Irrevocable. Each Request for Advance shall be irrevocable
and binding on the Borrower and the Borrower shall indemnify the Agent and the Banks against any
loss or expense any of them may incur pursuant to Section 2.24 as a result of any failure to borrow
any Term Revolving Loan Advance after a Request for Advance (including any failure resulting from
the failure to fulfill on or before the date specified for such Advance the applicable conditions
set forth in Section 2.04(c)).

          (g) Minimum Amounts. Each Term Revolving Loan Advance shall be in a minimum amount
equal to Fifty Thousand and No/100 Dollars ($50,000.00).

          (h) Conditions Precedent to Advances. The Banks’ obligation to make each Term
Revolving Loan Advance under the Term Revolving Note shall be subject to the following further
conditions precedent:

               (i) Representations and Warranties. The representations and warranties set forth in
this Agreement are true and correct in all material respects as of the date of the Request for
Advance for any Term Revolving Loan Advance to the same extent and with the same effect as if made
at and as of the date thereof, except as disclosed in writing to the Agent and the Banks, and
except to the extent such representations and warranties relate to a specific earlier date in which
case such representations and warranties shall have been true and correct in all material respects
as of such earlier date;

               (ii) No Defaults. No Event of Default has occurred and is continuing; and

               (iii) Government Action. No license, permit, permission or authority necessary for
the operation of the Project has been revoked or challenged by or before any Governmental
Authority, which revocation or challenge could reasonably be expected to have a Material Adverse
Effect.

          (i) Interest Rate. Subject to the provisions of Sections 2.03 and 2.04, the Term
Revolving Loan shall bear interest at a rate equal to the LIBOR Rate plus two hundred ninety (290)
basis points. The rate of interest due hereunder shall initially be determined as of the Closing
Date and shall thereafter be initially adjusted on the first day of the immediately succeeding
calendar month. All such

18

 

adjustments to the rate of interest shall be made and become effective as of the first Adjustment
Date following the Closing Date. All such adjustments to said rate shall be made and become
effective as of each subsequent Adjustment Date, and said rate as adjusted shall remain in effect
until and including the day immediately preceding the next Adjustment Date. Interest hereunder
shall be computed on the basis of a year of three hundred sixty five (365) days, but charged for
actual days principal is outstanding. In no event shall the applicable rate exceed the Maximum
Rate.

          (j) Funding of Advances. Upon receipt by the Agent from the Borrower of any Request
for Advance for any Term Revolving Loan Advance, the Agent shall promptly notify the Borrower and
the other Banks as to the amount requested in such Request for Advance. Not later than 12:00 P.M.
(Minneapolis, Minnesota time) on the applicable payment date each Bank will make available to the
Agent, in immediately available funds, an amount equal to such Bank’s Pro Rata Share of the amount
requested in such Request for Advance.

          (k) Repayment of the Term Revolving Loan. The Borrower will pay interest on the Term
Revolving Loan on the first (1st) day of each month, commencing on the first
(1st) Monthly Payment Date following the date on which the first Term Revolving Loan
Advance is made on the Term Revolving Loan, and continuing on each Monthly Payment Date thereafter
until the Term Revolving Loan Maturity Date. On the Term Revolving Loan Maturity Date, the amount
of the then unpaid principal balance of the Term Revolving Loan and any and all other amounts due
and owing hereunder or under any other Loan Document relating to the Term Revolving Loan shall be
due and payable. If any Payment Date is not a Business Day, then the principal installment then
due shall be paid on the next Business Day and shall continue to accrue interest until paid.

     Section 2.05. Revolving Line of Credit Loan.

          (a) Revolving Line of Credit Loan. On the terms and conditions set forth in this
Agreement, the Banks agree to make one or more Revolving Line of Credit Advances to the Borrower on
a revolving basis, during the period beginning on the Closing Date and ending on the Business Day
immediately preceding the Revolving Line of Credit Maturity Date (the “Revolving Line of Credit
Termination Date”), in an aggregate principal amount outstanding at any one time not to exceed Ten
Million and No/100 Dollars ($10,000,000.00); provided, however, that at no time shall the
Outstanding Revolving Advance exceed the Borrowing Base. The Revolving Line of Credit Loan shall
mature and be due and payable in full at 12:00 P.M. (Minneapolis, Minnesota time) on the three
hundred sixty-fourth (364th) day following the Closing Date (the “Revolving Line of
Credit Maturity Date”). Subject to Section 2.05(h), Revolving Line of Credit Advances borrowed and
repaid or prepaid may be reborrowed at any time prior to the Revolving Line of Credit Termination
Date.

          (b) Purpose. Revolving Line of Credit Advances may be used by the Borrower for
general business and operating purposes, including closing costs and fees associated with the
Revolving Line of Credit Loan. The Borrower agrees that the proceeds of the Revolving Line of
Credit Loan are to be used only for the purposes set forth in this Section 2.05(b).

          (c) Conditions Precedent to All Advances. The Banks’ obligation to fund each
Revolving Line of Credit Advance shall be subject to the following conditions precedent:

               (i) Completion of Project. A Certificate of Substantial Completion shall have been
delivered to the Agent, and Substantial Completion of the Project shall have occurred;

19

 

               (ii) Borrowing Base Certificate. The Borrower shall have submitted to the Agent a
Borrowing Base Certificate as required by Section 5.01(c)(xvi);

               (iii) Representations and Warranties. The representations and warranties set forth in
this Agreement are true and correct in all material respects as of the date of the request for any
Revolving Line of Credit Advance to the same extent and with the same effect as if made at and as
of the date thereof, except as disclosed in writing to the Agent and the Banks, and except to the
extent such representations and warranties relate to a specific earlier date in which case such
representations and warranties shall have been true and correct in all material respects as of such
earlier date; and

               (iv) No Defaults. No Event of Default has occurred and is continuing.

          (d) Availability. Subject to the provisions of this Agreement, during the period
commencing on the Closing Date and ending on the Revolving Line of Credit Termination Date,
Revolving Line of Credit Advances under the Revolving Line of Credit Loan may be made as provided
in this Agreement.

          (e) Making the Advances. Each Revolving Line of Credit Advance shall be made by the
Borrower delivering a Request for Advance to the Agent specifying the amount of such Revolving Line
of Credit Advance. Except for Revolving Line of Credit Advances made pursuant to Section 2.05(j),
each Request for Advance must be delivered to the Agent by the Borrower, before 12:00 P.M.
(Minneapolis, Minnesota time) on a Business Day which is at least three (3) Business Days prior to
the date of such Revolving Line of Credit Advance; provided however that no such Revolving Line of
Credit Advance shall be made while an Event of Default exists or if the interest rate for such
LIBOR Rate Loan would exceed the Maximum Rate. Any Request for Advance received by the Agent after
12:00 P.M. (Minneapolis, Minnesota time) on a Business Day shall be deemed to have been received
and be effective on the next Business Day. The amount of the Revolving Line of Credit Advance
requested from the Banks shall, subject to the terms and conditions of this Agreement, be made
available to the Borrower by: (i) depositing the same, in same day funds, in an account of the
Borrower; or (ii) wire transferring such funds to a Person or Persons designated by the Borrower in
writing.

          (f) Requests for Advances Irrevocable. Each Request for Advance shall be irrevocable
and binding on the Borrower and the Borrower shall indemnify the Agent and the Banks against any
loss or expense any of them may incur pursuant to Section 2.24 as a result of any failure to borrow
any Revolving Line of Credit Advance after a Request for Advance (including any failure resulting
from the failure to fulfill on or before the date specified for such Advance the applicable
conditions set forth in this Agreement).

          (g) Minimum Amounts. Each Revolving Line of Credit Advance shall be in a minimum
amount of Fifty Thousand and No/100 Dollars ($50,000.00) (except for any Revolving Line of Credit
Advances made pursuant to Section 2.05(j)).

          (h) Letters of Credit. The Borrower may utilize the Revolving Line of Credit
Commitments by requesting that the Issuer issue, and the Issuer, subject to the terms and
conditions of this Agreement, may, in its sole discretion, issue letters of credit for the
Borrower’s account (such letters of credit being hereinafter referred to collectively as the
“Revolving Letters of Credit”); provided, however, that:

               (i) the aggregate amount of all Revolving Letter of Credit Liabilities shall not at any time
exceed the amount of Five Million and No/100 Dollars ($5,000,000.00);

20

 

               (ii) the sum of the outstanding Revolving Letters of Credit plus the outstanding Revolving
Line of Credit Advances shall not at any time exceed the Borrowing Base; and

               (iii) the expiration date of a Revolving Letter of Credit advanced under the Revolving Line of
Credit Loan shall be no later than the Revolving Line of Credit Loan Maturity Date.

The issuance of any Revolving Letter of Credit issued under this Section 2.05(h) is subject to the
provisions of Section 2.08.

          (i) Interest Rate. The Revolving Line of Credit Loan shall bear interest at a rate
equal to the LIBOR Rate plus two hundred ninety (290) basis points. The rate of interest due
hereunder shall initially be determined as of the Closing Date and shall thereafter be initially
adjusted on the first day of the immediately succeeding calendar month. All such adjustments to
the rate of interest shall be made and become effective as of the first Adjustment Date following
the Closing Date. All such adjustments to said rate shall be made and become effective as of each
subsequent Adjustment Date, and said rate as adjusted shall remain in effect until and including
the day immediately preceding the next Adjustment Date. Interest hereunder shall be computed on
the basis of a year of three hundred sixty five (365) days, but charged for actual days principal
is outstanding. In no event shall the applicable rate exceed the Maximum Rate.

          (j) Funding of Advances. Upon receipt from the beneficiary of any Revolving Letter of
Credit of any drawing under such Revolving Letter of Credit, the Agent shall promptly notify the
Borrower and the Banks as to the amount to be paid as a result of such drawing and the respective
payment date. Not later than 12:00 P.M. (Minneapolis, Minnesota time) on the applicable payment
date each Bank will make available to the Agent, in immediately available funds, an amount equal to
such Bank’s Pro Rata Share of the amount to be paid as a result of such drawing as a Revolving Line
of Credit Advance hereunder (and such amount shall be treated as a Revolving Line of Credit Advance
hereunder) regardless of whether the conditions set forth in Article II or III are satisfied.

          (k) Repayment of the Revolving Line of Credit Loan. The Borrower will pay accrued
interest on the Revolving Line of Credit Loan on the first (1st) day of each month,
commencing on the first (1st) Monthly Payment Date following the date on which the first
Advance is made on the Revolving Line of Credit Loan, and continuing on each Monthly Payment Date
thereafter until the Revolving Line of Credit Maturity Date. On the Revolving Line of Credit
Maturity Date, the amount of the then unpaid principal balance of the Revolving Line of Credit Loan
and any and all other amounts due and owing hereunder or under any other Loan Document relating to
the Revolving Line of Credit Loan will be due and payable. If any Payment Date is not a Business
Day, then the principal installment then due shall be paid on the next Business Day and shall
continue to accrue interest until paid.

          (l) Mandatory Prepayments or Collateralization. The Borrower shall, within five (5)
days following the earlier of the delivery of each Borrowing Base Certificate hereunder or the day
upon which such Borrowing Base Certificate was due, either (i) prepay the Revolving Line of Credit
Advances in the amount, if any, by which the Outstanding Revolving Line of Credit Advances on the
date of prepayment under this Section 2.05(l) exceeds the Borrowing Base at such time, together
with accrued interest to the date of such prepayment on the amount prepaid, or (ii) pledge and
assign to the Agent additional Collateral acceptable to the Agent, in the Agent’s sole discretion,
and deliver all documentation that the Agent, in its sole discretion, may require in connection
with such pledge and assignment and the perfection of a first-priority security interest in such
additional Collateral, so that the Borrowing Base plus the value assigned by

21

 

the Agent, in its sole discretion, to such additional Collateral equals or exceeds the Outstanding
Revolving Line of Credit Advances.

          (m) Additional Revolving Line of Credit Facility.

               (i) The Borrower shall have the right at any time and from time to time after the Revolving
Line of Credit Maturity Date to incur from one or more existing Banks and/or other financial
institution or lender approved by the Agent (the “New Revolving Banks”) and which, in each case,
agree to make loans pursuant to this Section 2.05(m) to the Borrower, and commitments to make loans
in an aggregate principal amount not to exceed $10,000,000, which loans (a) shall be incurred as
Revolving Line of Credit Advances on a revolving basis and shall be deemed to be Revolving Line of
Credit Loans for all purposes of this Agreement and (b) which loans shall mature and be due and
payable in full at 12:00 P.M. (Minneapolis, Minnesota time) on the three hundred sixty- fourth
(364th) day immediately following the date of the expiration of (x) the Revolving Line of Credit
Maturity Date or (y) the immediately precedent revolving facility entered into by the Borrower
pursuant to this Section 2.05(m), as the case may be, or such later maturity as to which such New
Revolving Banks may consent (collectively, the “Additional Revolving Line of Credit Facilities”).
All Advances under each of the Additional Revolving Line of Credit Facilities shall be treated as
Revolving Line of Credit Advances for all purposes of the Loan Documents, and loans made pursuant
to each of the Additional Revolving Line of Credit Facilities shall constitute Loan Obligations
hereunder for all purposes of the Loan Documents and will be secured by the Collateral securing the
other Loan Obligations.

               (ii) In the event that the Borrower desires to create an Additional Revolving Line of Credit
Facility, the Borrower will enter into an amendment with the New Revolving Banks (who shall by
execution thereof become Banks hereunder if not theretofore Banks) to provide for such Additional
Revolving Line of Credit Facility, which amendment shall set forth any terms and conditions of the
Additional Revolving Line of Credit Facility not covered by this Agreement as agreed by the
Borrower and such New Revolving Banks, and shall provide for the issuance of promissory notes to
evidence the Additional Revolving Line of Credit Facility if requested by the New Revolving Banks
making Advances under the Additional Revolving Line of Credit Facility (which notes shall
constitute Revolving Line of Credit Notes for purposes of this Agreement), with such amendment to
be in form and substance reasonably acceptable to the Agent and consistent with the terms of this
Section 2.05(m) and of the other provisions of this Agreement. No consent of any Bank (other than
any Bank making loans or whose commitment is increased under the Additional Revolving Line of
Credit Facility) is required to permit the Loans contemplated by this Section 2.05(m) or to permit
the aforesaid amendment to effectuate the Additional Revolving Line of Credit Facility. This
Section 5.01(m) shall supersede any provisions contained in this Agreement, including, without
limitation, Section 8.01, to the contrary.

     Section 2.06. Swingline Loan.

          (a) Swingline Loan. Subject to the terms and conditions of this Agreement, the
Swingline Bank agrees to make one or more Advances to the Borrower from time to time, from and
including the Closing Date to, but excluding, the Term Revolving Loan Termination Date and the
Revolving Line of Credit Termination Date, in an aggregate principal amount at any time outstanding
up to but not exceeding the Swingline Commitment; provided, however that after calculation of the
participation interests of each Bank in such Advances:

22

 

               (i) the aggregate amount of outstanding Swingline Advances shall not at any time exceed the
amount of One Million and No/100 Dollars ($1,000,000.00) (the “Swingline Commitment”);

               (ii) the Outstanding Credit with respect to the Revolving Line of Credit applicable to a Bank
shall not at any time exceed the lesser of (A) such Bank’s Pro Rata Share of the Borrowing Base, or
(B) such Bank’s Revolving Line of Credit Commitment; and

               (iii) the Outstanding Credit with respect to the Revolving Line of Credit shall not at any
time exceed the lesser of (A) the Borrowing Base or (B) the aggregate amount of the Revolving
Commitments at such time.

Subject to the foregoing limitations, and the other terms and provisions of this Agreement, the
Borrower may borrow, prepay, and reborrow Swingline Loans hereunder up to the amount of the
Swingline Commitment. The Swingline Bank may, by written notice given to the Agent not later than
10:00 A.M. (Minneapolis, Minnesota time) on any Business Day, require the Banks to acquire
participations on such Business Day in all or a portion of the Swingline Loans outstanding. Such
notice shall specify the aggregate amount of Swingline Loans in which the Banks will participate.
Promptly upon receipt of such notice, the Agent will give notice thereof to each Bank specifying in
such notice such Bank’s Pro Rata Share of such Swingline Loan or Loans. Each Bank hereby
absolutely and unconditionally agrees upon receipt of notice as provided in this Section 2.06 to
pay to the Agent for the account of the Swingline Bank such Bank’s Pro Rata Share of such Swingline
Loan or Loans. Each Bank acknowledges and agrees that its obligation to acquire participations in
Swingline Loans pursuant to this paragraph is absolute and unconditional and shall not be affected
by any circumstance whatsoever, including the occurrence and continuance of an Event of Default or
reduction or termination of the Commitments, and that each such payment shall be made without any
offset, abatement, withholding or reduction whatsoever. Each Bank shall comply with its obligation
under this Subsection by wire transfer of immediately available funds, in the same manner as
provided in Section 2.21 with respect to Loans made by such Bank (and Section 2.22 shall apply to
the payment obligations of the Banks), and the Agent shall promptly pay to the Swingline Bank the
amounts so received by it from the Banks. The Agent shall notify the Borrower of any
participations in any Swingline Loan acquired pursuant to this paragraph, and thereafter payments
in respect of such Swingline Loan shall be made to the Agent and not to the Swingline Bank. Any
amounts received by the Swingline Bank from the Borrower (or other party on behalf of the Borrower)
in respect of a Swingline Loan after receipt by the Swingline Bank of the proceeds of a sale of
participations therein shall be promptly remitted to the Agent; any such amounts received by the
Agent shall be promptly remitted by the Agent to the Banks that shall have made their payments
pursuant to this Subsection and to the Swingline Bank, as their interests may appear. The purchase
of participations in a Swingline Loan pursuant to this Subsection shall not relieve the Borrower of
any default in the payment thereof. Notwithstanding the foregoing, a Bank shall not have any
obligation to acquire a participation in a Swingline Loan pursuant to this Subsection if an Event
of Default shall have occurred and be continuing at the time such Swingline Loan was made and such
Bank shall have notified the Swingline Bank in writing, at least one Business Day prior to the time
such Swingline Loan was made, that such Event of Default has occurred and that such Bank will not
acquire participations in Swingline Loans made while such Event of Default is continuing.

          (b) Swingline Advances. Each Swingline Advance shall be made, to the extent that the
Swingline Bank is so obligated under Section 2.05(a), on a Request for Advance from the Borrower to
the Agent delivered before 12:00 P.M. (Minneapolis, Minnesota time) on the date of such Swingline
Advance, specifying the amount of such Swingline Advance. Any Request for Advance applicable to a
Swingline Advance received after 12:00 P.M. (Minneapolis, Minnesota time) shall be deemed to have
been received and

23

 

be effective on the next Business Day. The amount of each Swingline Advance made hereunder shall,
subject to the terms and conditions of this Agreement, be made available to the Borrower by (i)
depositing the same, in same day funds, in an account of the Borrower or (ii) wire transferring
such funds to a Person or Persons designated by the Borrower in writing.

          (c) Minimum Amounts. Each Swingline Advance shall be in a minimum amount equal to
Fifty Thousand and No/100 Dollars ($50,000.00).

          (d) Repayment of Swingline Loan. The Borrower shall pay to the Agent for the account
of the Swingline Bank the outstanding principal amount of each Swingline Advance on the earlier of
(i) the Term Revolving Loan Termination Date, (ii) the Revolving Line of Credit Termination Date,
or (iii) the date which is thirty (30) days after the Swingline Advance is made (the earliest of
such date with respect to a Swingline Advance herein the “Swingline Maturity”). Subject to the
other terms and conditions of this Agreement, the Borrower may repay a Swingline Advance on its
Swingline Maturity or at any time prior thereto by requesting a Revolving Advance in accordance
with Sections 2.04(e) or 2.05(e) with the proceeds thereof payable to the Swingline Bank for its
own account or by using cash on hand. The Swingline Bank, at any time in its sole and absolute
discretion and whether or not a Swingline Maturity shall have occurred, may require that each other
Bank fund its participation in the then outstanding principal amount of all Swingline Advances by
giving each other Bank notice thereof as set forth herein above. Additionally, if the Borrower
shall not have repaid a Swingline Advance by 12:00 P.M. (Minneapolis, Minnesota time) on the
corresponding Swingline Maturity, the Swingline Bank will notify each Bank of the aggregate
principal amount of the Swingline Advance which has not been repaid. Upon the giving of any notice
by the Swingline Bank under either of the preceding two sentences, each such Bank shall make
available to the Swingline Bank, in immediately available funds, an amount equal to its Pro Rata
Share of the aggregate principal amount of the Swingline Advance or Swingline Advances subject to
such notice by not later than 3:00 P.M. (Minneapolis, Minnesota time) on the date such notice is
received if such notice is received by 12:00 P.M., or by 11:00 A.M. (Minneapolis, Minnesota time)
on the next Business Day if such notice is received after 12:00 P.M. (Minneapolis, Minnesota time),
whether or not the conditions to an Advance under Article III are satisfied.

     (e) Swingline Interest Rate. The Swingline Loan shall bear interest at a rate equal
to the LIBOR Rate plus two hundred ninety (290) basis points. The rate of interest due hereunder
shall initially be determined as of the date of each Swingline Advance and shall thereafter be
initially adjusted on the first day of the immediately succeeding calendar month. All such
adjustments to the rate of interest shall be made and become effective as of the first Adjustment
Date following each Swingline Advance. All such adjustments to said rate shall be made and become
effective as of each subsequent Adjustment Date, and said rate as adjusted shall remain in effect
until and including the day immediately preceding the next Adjustment Date. Interest hereunder
shall be computed on the basis of a year of three hundred sixty five (365) days, but charged for
actual days principal is outstanding. In no event shall the applicable rate exceed the Maximum
Rate.

     Section 2.07. Evidence of Debt. The extension of credit made by each Bank shall be
evidenced by one or more accounts or records maintained by such Bank and by the Agent in the
ordinary course of business. The accounts or records maintained by the Agent and each Bank shall
be prima facie evidence of the amount of the credit extensions made by the Banks to the Borrower
and the interest and payments thereon. Any failure to so record or any error in doing so shall
not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount
owing with respect to the Obligations. In the event of any conflict between the accounts and
records maintained by any Bank and the accounts and records of the Agent in respect of such
matters, the accounts and records of the Agent shall control in the absence of manifest error.
Upon the request of any Bank made through the Agent, the Borrower shall execute and deliver to such
Bank

24

 

(through the Agent) a promissory note in the form attached as Exhibits E, G, or H which shall
evidence such Bank’s loans in addition to such accounts or records. Each Bank may attach schedules
to its Note and endorse thereon the date, amount and maturity of its loans and payments with
respect thereto. Upon the termination of the Commitments and repayment of all Obligations
hereunder, each Bank shall, at the request of the Borrower (and at the Borrower’s expense), return
to the Borrower the Note or Notes evidencing such Bank’s loans marked “cancelled.”

     Section 2.08. Letters of Credit. All Letters of Credit that are issued under this
Agreement are subject to the following:

          (a) Letter of Credit Request Procedure. The Borrower shall give the Agent and the
Issuer irrevocable prior notice (effective upon receipt) on or before 12:00 P.M. (Minneapolis,
Minnesota time) on a Business Day which is at least three (3) Business Days (or such shorter period
as may be agreed by the Issuer) prior to the date of the requested issuance of a Letter of Credit
specifying the requested amount, the beneficiary of each Letter of Credit to be issued, the expiry
date and issuance date of each Letter of Credit to be issued, and the nature of the transactions to
be supported thereby. Any such notice received after 12:00 P.M. (Minneapolis, Minnesota time) on a
Business Day shall be deemed to have been received and be effective on the next Business Day. Upon
receipt of such notice, the Agent shall promptly notify each Bank of the face amount and expiry
date of such Letter of Credit and of such Bank’s Pro Rata Share of the amount of the proposed
Letter of Credit. The Issuer shall provide a Bank a copy of each Letter of Credit it has issued
hereunder upon such Bank’s request. Each Letter of Credit shall be substantially in the form of
Exhibit I, or otherwise shall be satisfactory in form and substance to the Agent, the Borrower, and
the Issuer, shall be payable in U.S. dollars, and shall be issued pursuant to such documentation as
the Issuer may require, including the Issuer’s standard form letter of credit request and
reimbursement agreement; provided that, in the event of any conflict between the terms of such
credit request and reimbursement agreement and the other Loan Documents, the terms of the other
Loan Documents shall control.

          (b) Banks’ Pro Rata Shares. Upon the date of issue of a Letter of Credit, the Issuer
shall be deemed, without further action by any party hereto, to have sold to each other Bank, and
each other Bank shall be deemed, without further action by any party hereto, to have purchased from
the Issuer a participation to the extent of such Bank’s Pro Rata Share in such Letter of Credit and
the related Letter of Credit Liabilities.

          (c) Letter of Credit Fees. The Borrower shall pay to the Agent for the account of
each Bank an irrevocable letter of credit fee on each such Bank’s Pro Rata Share of the maximum
amount available for drawings under each Letter of Credit, such letter of credit fee (i) to be in
an amount equal to one hundred fifty (150) basis points, on an annualized basis, of the maximum
amount available to be drawn under such Letter of Credit on the date of calculation of such fee,
and (ii) to be paid on the date of issuance of such Letter of Credit and on each anniversary date
of the date of issuance of such Letter of Credit for so long as such letter of Credit remains
outstanding. After receiving any payment of any letter of credit fees under this Subsection (c),
the Agent will promptly pay to each Bank the letter of credit fees then due such Bank. With
respect to each Letter of Credit, the Borrower shall also pay to the Issuer for its account only
all reasonable fees, costs, and expenses of the Issuer arising in connection with any Letter of
Credit, including the Issuer’s customary fees for amendments, transfers, and drawings on Letters of
Credit.

          (d) Reimbursements. After receipt of the notice delivered pursuant to Section 2.21
with respect to a Letter of Credit, the Borrower shall be irrevocably and unconditionally obligated
to reimburse the Banks for any amounts paid by the Banks upon any demand for payment or drawing
under the applicable Letter of Credit, without presentment, demand, protest, or other formalities
of any kind other than the notice

25

 

required by Section 2.21. Such reimbursement shall occur no later than 3:00 P.M. (Minneapolis,
Minnesota time) three (3) Business Days after the date of payment under the applicable Letter of
Credit if the notice under Section 2.21 is received by 12:00 P.M. (Minneapolis, Minnesota time) on
such date or by 11:00 A.M. (Minneapolis, Minnesota time) four (4) Business Days after the date of
such payment, if such notice is received after 12:00 P.M. (Minneapolis, Minnesota time). All
payments made pursuant to Section 2.05(j) with proceeds of Revolving Loans made pursuant thereto
shall constitute satisfaction of the Borrower’s reimbursement obligation hereunder to the extent of
such Revolving Loans. All payments on the Reimbursement Obligations (including any interest earned
thereon) shall be made to the Agent for the account of the Banks in U.S. dollars and in immediately
available funds, without set-off, deduction, or counterclaim.

          (e) Reimbursement Obligations Absolute. The Reimbursement Obligations of the Borrower
under this Agreement shall be absolute, unconditional, and irrevocable, and shall be performed
strictly in accordance with the terms of the Loan Documents under all circumstances whatsoever and
the Borrower hereby waives any defense to the payment of the Reimbursement Obligations based on any
circumstance whatsoever, including, in any case, the following circumstances: (i) any lack of
validity or enforceability of any Letter of Credit or any other Loan Document; (ii) any amendment
or waiver of or any consent to departure from any Loan Document; (iii) the existence of any claim,
set-off, counterclaim, defense, or other rights which the Borrower or any other Person may have at
any time against any beneficiary of any Letter of Credit, the Agent, the Issuer, the Banks or any
other Person, whether in connection with any Loan Document or any unrelated transaction; (iv) any
statement, draft, or other documentation presented under any Letter of Credit proving to be forged,
fraudulent, invalid, or insufficient in any respect or any statement therein being untrue or
inaccurate in any respect whatsoever; (v) payment by the Issuer under any Letter of Credit against
presentation of a draft or other document that does not comply with the terms of such Letter of
Credit; or (vi) any other circumstance whatsoever, whether or not similar to any of the foregoing;
provided that Reimbursement Obligations with respect to a Letter of Credit may be subject to
avoidance by the Borrower if the Borrower proves in a final non-appealable judgment that it was
damaged and that such damage arose directly from the Issuer’s willful misconduct or gross
negligence.

          (f) Issuer Responsibility. The Borrower assumes all risks of the acts or omissions of
any beneficiary of any Letter of Credit with respect to its use of such Letter of Credit; provided,
however, that this assumption is not intended to, and shall not, preclude the Borrower from
pursuing such rights and remedies as it shall have against the beneficiary, at law or under any
other agreement.. None of the Agent, the Issuer, the other Banks, or any of their respective
officers or directors shall have any responsibility or liability to the Borrower or any other
Person for: (i) the failure of any draft to bear any reference or adequate reference to any Letter
of Credit, or the failure of any documents to accompany any draft at negotiation, or the failure of
any Person to surrender or to take up any Letter of Credit or to send documents apart from drafts
as required by the terms of any Letter of Credit, or the failure of any Person to note the amount
of any instrument on any Letter of Credit, each of which requirements, if contained in any Letter
of Credit itself, it is agreed may be waived by the Issuer; (ii) errors, omissions, interruptions,
or delays in transmission or delivery of any messages; (iii) the validity, sufficiency, or
genuineness of any draft or other document, or any endorsement(s) thereon, even if any such draft,
document or endorsement should in fact prove to be in any and all respects invalid, insufficient,
fraudulent, or forged or any statement therein is untrue or inaccurate in any respect; (iv) the
payment by the Issuer to the beneficiary of any Letter of Credit against presentation of any draft
or other document that does not comply with the terms of the Letter of Credit; or (v) any other
circumstance whatsoever in making or failing to make any payment under a Letter of Credit. The
Issuer may accept documents that appear on their face to be in order, without responsibility for
further investigation, regardless of any notice or information to the contrary. Notwithstanding
anything to the contrary contained in this Section 2.08, Borrower shall retain any and all rights
it may have against any Issuer for any liability arising out of the gross negligence or willful
misconduct of such Issuer.

26

 

          (g) Replacement of Issuer. The Issuer may be replaced at any time by written
agreement among the Borrower, the Agent, and the successor Issuer, and if requested by the Agent
the Issuer. The Agent shall notify the Banks of any such replacement of the Issuer. At the time
any such replacement shall become effective, the Borrower shall pay all unpaid fees accrued for the
account of the replaced Issuer pursuant to Section 2.08(c). From and after the effective date of
any such replacement, (i) the successor Issuer shall have all the rights and obligations of the
Issuer under this Agreement with respect to Letters of Credit to be issued thereafter, and (ii)
references herein to the term “Issuer” shall be deemed to refer to such successor or to any
previous Issuer, or to such successor and all previous Issuers, as the context shall require.
After the replacement of an Issuer hereunder, the replaced Issuer shall remain a party hereto and
shall continue to have all the rights and obligations of an Issuer under this Agreement with
respect to Letters of Credit issued by it prior to such replacement, but shall not be required to
issue additional Letters of Credit.

     Section 2.09. Obligations Several. The failure of any Bank to make its pro rata share
of any Advance required to be made by it shall not relieve any other Bank of its obligation, if
any, under this Agreement to make its pro rata share of any Advance required to be made by it, but
no Bank shall be responsible for the failure of any other Bank to make any portion of an Advance
required to be made by such other Bank.

     Section 2.10. Non-Receipt of Funds by the Agent. Unless the Agent shall have been
notified by a Bank or the Borrower (the “Payor”) prior to the date on which such Bank is to make
payment to the Agent hereunder or the Borrower is to make a payment to the Agent for the account of
one or more of the Banks, as the case may be (such payment being herein called the “Required
Payment”), which notice shall be effective upon receipt, that the Payor does not intend to make the
Required Payment to the Agent, the Agent may assume that the Required Payment has been made and
may, in reliance upon such assumption (but shall not be required to), make the amount thereof
available to the intended recipient on such date and, if the Payor has not in fact made the
Required Payment to the Agent, (a) the recipient of such payment shall, on demand, pay to the Agent
the amount made available to it together with interest thereon in respect of the period commencing
on the date such amount was so made available by the Agent until the date the Agent recovers such
amount at a rate per annum equal to the Federal Funds Rate for such period, and (b) the Agent shall
be entitled to offset against any and all sums to be paid to such recipient, the amount calculated
in accordance with the foregoing clause (a).

     Section 2.11. Adjustments to Interest Rate. Notwithstanding any other provision of
this Agreement, the Notes, or the Loan Documents, after the Closing Date, the rate of interest
under any Loan which bears interest at a variable rate, shall be adjusted according to the
following schedule should the Owner’s Equity of the Borrower achieve the levels set forth below:

	 	 	 
	Owner’s Equity	 	Interest Rate
	 	 	 
	Greater than 50.00% and less than
60.00%
	 	Applicable LIBOR Rate plus 265 basis points
	 	 	 
	Greater than or equal to 60.00%
and less than 70.00%
	 	Applicable LIBOR Rate plus 235 basis points

	 	 	 
	Greater than 70.00%
	 	Applicable LIBOR Rate plus 200 basis points
	 	 	 
	Greater than or equal to 60.00% and total Debt/EBITDA is less

than or equal to 1.00
	 	Applicable LIBOR Rate plus 200 basis points
	 
	 	 
	Greater than or equal to 70.00%
and total Debt/EBITDA is less
than or equal to 1.00
	 	Applicable LIBOR Rate plus 150 basis points

27

 

Upon delivery of the fiscal year end audited Financial Statements and the Compliance Certificate
pursuant to Section 5.01(c)(i) beginning with the first fiscal year end after the Closing Date, the
rate of interest shall automatically be adjusted in accordance with the Owner’s Equity set forth
therein and the rates set forth above. Such automatic adjustment to the rate of interest shall
take effect as of the first Business Day of the month following the month in which the Agent
received the fiscal year end audited Financial Statements and related Compliance Certificate. With
respect to this Section 2.11, the term “Adjustment Date” shall mean each such Business Day when
such rates, margins or fees change pursuant to the immediately prior sentence or the next following
sentence. If the Borrower fails to deliver such Compliance Certificate which so sets forth the
Owner’s Equity within the period of time required by Section 5.01(c)(i) or if any Event of Default
occurs, the rate of interest shall automatically be adjusted to a rate equal to the applicable
LIBOR Rate plus two hundred ninety (290) basis points, such automatic adjustments: (a) to take
effect as of the first Business Day after the last day on which the Borrower was required to
deliver the applicable Compliance Certificate in accordance with Section 5.01(c)(i) hereof or in
the case of an Event of Default, on the date the written notice thereof is given to the Borrower;
and (b) to remain in effect until subsequently adjusted in accordance herewith upon the delivery of
such Compliance Certificate or, in the case of an Event of Default, on the date on which such Event
of Default has been waived or cured.

     Section 2.12. Changes in Law Rendering Certain LIBOR Rate Loans Unlawful. In the
event that any change in any applicable law (including the adoption of any new applicable law) or
any change in the interpretation of any applicable law by any judicial, governmental or other
regulatory body charged with the interpretation, implementation or administration thereof, should
make it (or in the good-faith judgment of the Agent should raise a substantial question as to
whether it is) unlawful for the Banks to make, maintain or fund LIBOR Rate Loans, then: (a) the
Agent shall promptly notify each of the other parties hereto; and (b) the obligation of the Banks
to make LIBOR Rate Loans of such type shall, upon the effectiveness of such event, be suspended
for the duration of such unlawfulness. During the period of any suspension, the Banks shall make
loans to the Borrower that are deemed lawful and that as closely as possible reflect the terms of
this Agreement.

     Section 2.13. Payments and Computations.

          (a) Method of Payment. Except as otherwise expressly provided herein, all payments of
principal, interest, and other amounts to be made by the Borrower under the Loan Documents shall be
made to the Agent for the account of the Banks in U.S. dollars and in immediately available funds,
subject to Sections 2.17 and 2.18, without set-off, deduction, or counterclaim, not later than
12:00 P.M. (Minneapolis, Minnesota time) on the date on which such payment shall become due (each
such payment made after such time on such due date to be deemed to have been made on the next
succeeding Business Day). The Borrower shall, at the time of making each such payment, specify to
the Agent the sums payable under the Loan Documents to which such payment is to be applied and in
the event that the Borrower fails to so specify or if an Event of Default exists, the Agent may
apply such payment and any proceeds of any Collateral to the Loan Obligations in such order and
manner as it may elect in its sole discretion.

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          (b) Application of Funds. The Agent may apply all payments received from the
Guarantor for the benefit of the Borrower to the Loan Obligations in such order and manner as the
Agent may elect in its sole discretion; provided that any payments received from any guarantor or
from any disposition of any Collateral provided by such guarantor shall only be applied against
obligations guaranteed by such guarantor.

          (c) Payments on a Non-Business Day. Whenever any payment under any Loan Document
shall be stated to be due on a day that is not a Business Day, such payment may be made on the next
succeeding Business Day, and such extension of time shall in such case be included in the
computation of the payment of interest and fees, as the case may be.

          (d) Pro Rata Treatment. Except to the extent otherwise provided herein: (i) each
Advance shall be made by the Banks, and each payment of fees under Section 2.08(c) and Section 2.27
shall be made for the account of the Banks pro rata according to their respective Pro Rata Share;
(ii) each payment and prepayment of principal of or interest on Advances or Reimbursement
Obligations by the Borrower (including payments made under Section 2.06) shall be made to the Agent
for the account of the Agent or the Banks holding such Advances or Reimbursement Obligations (or
participation interests therein) pro rata in accordance with the respective unpaid principal
amounts of such Advances or funded participation interests held by such Banks (provided that only
the Swingline Bank shall be entitled to principal and interest on the Swingline Advances unless the
other Banks have funded their participations therein and the Issuer shall be entitled to principal
and interest on the Reimbursement Obligations unless the other Banks have funded their
participations therein); (iii) the Banks (other than the Issuer) shall purchase from the Issuer
participations in the Letters of Credit pro rata according to their respective Pro Rata Shares; and
(iv) the Banks (other than the Swingline Bank) shall purchase from the Swingline Bank
participations in the Swingline Advances pro rata according to their respective Pro Rata Shares.

          (e) Proceeds of Collateral. All proceeds received by the Agent for the account of the
Banks from the sale or other liquidation of the Collateral when an Event of Default exists shall
first be applied as payment of the accrued and unpaid fees and expenses of the Agent and the Banks
hereunder, including under Section 8.04 and then to all other unpaid or unreimbursed Loan
Obligations (including reasonable attorneys’ fees and expenses) owing to the Agent or the Banks and
then any remaining amount of such proceeds shall be applied to the unpaid amounts of Loan
Obligations, until all the Loan Obligations have been paid and satisfied in full or cash
collateralized. After all the Loan Obligations (other than contingent indemnification obligations
not then due) have been paid and satisfied in full and all Commitments terminated, any remaining
proceeds of Collateral shall be delivered to the Person entitled thereto as directed by the
Borrower or as otherwise determined by applicable law or applicable court order.

          (f) Noncash Proceeds. Notwithstanding anything contained herein to the contrary, if
the Agent shall ever acquire any Collateral through foreclosure or by a conveyance in lieu of
foreclosure or by retaining any of the Collateral in satisfaction of all or part of the Loan
Obligations or if any proceeds of Collateral received by the Agent to be distributed and shared
pursuant to Section 2.13(e) are in a form other than immediately available funds, the Agent shall
not be required to remit any share thereof under the terms hereof and the Banks shall only be
entitled to their undivided interests in the Collateral or noncash proceeds as determined by this
Section 2.13(f). The Banks shall receive the applicable portions (in accordance with Section
2.13(e)) of any immediately available funds consisting of proceeds from such Collateral or proceeds
of such noncash proceeds so acquired only if and when received by the Agent in connection with the
subsequent disposition thereof. While any Collateral or other property to be shared pursuant to
Section 2.13(e) is held by the Agent pursuant to this Section 2.13(f), the Agent shall hold such
Collateral or other property for the benefit of the Banks and all matters relating to the
management, operation, further

29

 

disposition or any other aspect of such Collateral or other property shall be resolved by the
agreement of the Required Banks.

          (g) Return of Proceeds. If at any time payment, in whole or in part, of any amount
distributed by the Agent hereunder is rescinded or must otherwise be restored or returned by the
Agent as a preference, fraudulent conveyance, or otherwise under any bankruptcy, insolvency, or
similar law, then each Person receiving any portion of such amount agrees, upon demand, to return
the portion of such amount it has received to the Agent.

          (h) Sharing of Payments. If a Bank shall obtain payment of any principal of or
interest on any of the Loan Obligations owed to such Bank hereunder directly (and not through the
Agent) through the exercise of any right of set-off, banker’s lien, counterclaim or similar right,
or otherwise, such Bank shall promptly purchase from the other Banks participations in the Loan
Obligations owed hereunder held by the other Banks in such amounts, and make such other adjustments
from time to time as shall be equitable to the end that all the Banks shall share the benefit of
such payment pro rata in accordance with the unpaid principal of and interest on the Loan
Obligations then owed hereunder to each of them. To such end, all of the Banks shall make
appropriate adjustments among themselves (by the resale of participations sold or otherwise) if all
or any portion of such excess payment is thereafter rescinded or must otherwise be restored. The
Borrower agrees, to the fullest extent it may effectively do so under applicable law, that any Bank
so purchasing a participation in the Loan Obligations held by the other Banks may exercise all
rights of set-off, banker’s lien, counterclaim, or similar rights with respect to such
participation as fully as if such Bank were a direct holder of the Loan Obligations in the amount
of such participation. Nothing contained herein shall require any Bank to exercise any such right
or shall affect the right of any Bank to exercise, and retain the benefits of exercising, any such
right with respect to any other indebtedness or obligation of the Borrower.

          (i) Computations. Except as expressly provided otherwise herein, all computations of
interest and fees shall be made on the basis of actual number of days lapsed over a year of three
hundred sixty five (365) days, as appropriate. Interest shall accrue from and include the date of
borrowing, but exclude the date of payment.

     Section 2.14. Default Interest. In addition to the rights and remedies set forth in
this Agreement and the Loan Documents: (a) if the Borrower fails to make any payment to the Agent
for the account of the Banks when due, then at the Agent’s option in each instance upon notice to
the Borrower, the overdue Loan Obligations shall bear interest from the date due to the date paid
at two percent (2%) per annum in excess of the rate of interest that would otherwise be applicable
to the Loan Obligation; (b) upon the occurrence and during the continuance of an Event of Default
beyond any applicable cure period, if any, at the Agent’s option in each instance upon notice to
the Borrower, the unpaid principal balances of the Loans shall bear interest from the date of the
Event of Default or such later date as the Agent shall elect at two percent (2%) per annum in
excess of the rate(s) of interest that would otherwise be in effect on the Loans under the terms of
this Agreement; (c) after the maturity of any Loan, whether by reason of acceleration or otherwise,
the unpaid principal balance of the Loan (including principal, interest, fees and expenses) shall
automatically bear interest at two percent (2%) per annum in excess of the rate of interest that
would otherwise be in effect on the Loan under the terms of this Agreement. Interest payable at
the Default Rate shall be payable from time to time on demand or, if not sooner demanded, on the
last day of each calendar month.

     Section 2.15. Late Charge. If any payment due under this Agreement is not paid within
ten (10) days of the due date thereof, the Borrower shall, in addition to such amount, pay on
demand of the Agent a late charge equal to five percent (5%) of the amount of such payment.

30

 

     Section 2.16. Prepayment of Loans. The Borrower may, at anytime and from time to
time, upon thirty (30) days advance written notice to the Agent or such shorter notice period
agreed to by the Agent, prepay the outstanding amount of the Loans in whole or in part with accrued
interest to the date of such prepayment on the amount prepaid, without penalty or premium, except
as and to the extent specifically provided in this Section 2.16. In the event the Term Loan or the
Term Revolving Loan is prepaid in whole, from the Closing Date through the first twenty-four (24)
months after the Closing Date, the Borrower shall pay a prepayment fee equal to the following
specified percentage of the amount of principal prepaid:

	 	 	 	 	 
	Closing Date – Month 12 after Closing Date
	 	 	1.00	%
	Months 13 – 24 after Closing Date
	 	 	0.50	%

Notwithstanding the foregoing, no prepayment fee shall be required if such prepayment is made
pursuant to Section 2.25. Any prepayment does not otherwise affect Borrower’s obligation to pay
any fees due under this Agreement. In addition, in the event any Loan is converted to a Fixed Rate
Loan, the Borrower shall pay the prepayment fee applicable to that fixed interest rate, if any.

     Section 2.17. Withholding Taxes. (a) All payments by the Borrower of amounts payable
under any Loan Document shall be payable without deduction for or on account of any present or
future taxes, duties, or other charges levied or imposed by any governmental authority through
withholding or deduction with respect to any such payments (but excluding (i) any tax imposed on or
measured by the net income or profit of a Bank and (ii) any branch profits tax imposed by the
United States of America or any similar tax imposed by any other jurisdiction in which the Borrower
is located) (all such taxes, duties or other charges, giving effect to the taxes excluded pursuant
to the foregoing parenthetical herein the “Non-Excluded Taxes”). If any Non-Excluded Taxes are so
levied or imposed, the Borrower shall make additional payments in such amounts so that every net
payment of amounts payable by them under any Loan Document, after withholding or deduction for or
on account of any Non-Excluded Taxes, will be equal to the amount provided for herein or therein;
provided that the Borrower may withhold to the extent required by law and shall have no obligation
to pay such additional amounts to any Bank to the extent that such Non-Excluded Taxes are (i)
levied or imposed by reason of the failure or inability of such Bank to comply with the provisions
of Section 2.18, (ii) United States withholding taxes imposed on amounts payable to such Bank at
the time the Bank becomes a party to the Loan Documents, except to the extent that such Bank’s
assignor (if any) was entitled, at the time of assignment, to receive additional amounts from the
Borrower with respect to such Non-Excluded Taxes pursuant to this Section 2.17, (iii) backup
withholding taxes under Section 3406 of the Code or (iv) taxes (including penalties or interest)
that are attributable to a Bank’s or the Agent’s gross negligence or willful misconduct. The
Borrower shall furnish promptly to the Agent for distribution to each affected Bank, as the case
may be, official receipts evidencing any such withholding or reduction.

          (b) Refund. If the Agent or any Bank determines that it has received a refund of any taxes as
to which it has been indemnified by the Borrower or with respect to which the Borrower has paid
additional amounts pursuant to this Section 2.17, it shall pay over such refund to the Borrower
(but only to the extent of indemnity payments made, or additional mounts paid, by the Borrower
under this Section 2.17 with respect to the taxes giving rise to such refund), net of all
out-of-pocket expenses of the Agent or such Bank and without interest (other than any interest paid
by the relevant governmental authority with respect to such refund).

     Section 2.18. Withholding Tax Exemption.

          (a) Each Bank that is not incorporated or organized under the laws of the United States of
America or a state thereof (a “Non-U.S. Bank”) agrees that it will deliver to the Borrower and the
Agent

31

 

on the Closing Date (or, in the case of an assignee, on the date of assignment) two duly completed
copies of either United States Internal Revenue Service Form W8-ECI or W8-BEN (or any applicable
successor form), certifying in either case that such Non-U.S. Bank is entitled to receive payments
from the Borrower under any Loan Document without deduction or withholding of any United States
federal income taxes. In the case of a Non-U.S. Bank claiming exemption from U.S. federal
withholding tax under Section 871(h) or 881(s) of the Code, with respect to payments of “portfolio
interest”, it will deliver to the Borrower and the Agent on the Closing Date (or, in the case of an
assignee, on the date of assignment) two Form W-8 (or any subsequent versions thereof or successors
thereto) properly completed and duly executed by such Non-U.S. Bank claiming complete exemption
from, or a reduced rate of, U.S. federal withholding tax on all payments by the Borrower under the
Loan Documents. Each other Bank agrees to deliver to the Borrowers and the Agent on or prior to
the Closing Date, or in the case of a Bank that is an assignee or transferee of an interest under
this Agreement (unless the respective Bank was already a Bank under immediately prior to such
assignment or transfer), on the date of such assignment or transfer to such Bank, one or more
accurate and complete original signed copies (as the Borrower or Agent may reasonably request) of
United States Internal Revenue Service Form W-9 or successor applicable form (if required by law),
as the case may be, providing the employer identification number for such Bank. Each Bank which so
delivers any form described in this Section 2.18(a) further undertakes to deliver to the Borrower
and the Agent two (2) additional copies of such form on or before the date such form expires or
becomes obsolete or after the occurrence of any event requiring a change in the most recent form so
delivered by it, and such amendments thereto or extensions or renewals thereof as may be reasonably
requested by the Borrower or the Agent, in each case certifying that such Bank is entitled to
receive payments from the Borrower under any Loan Document without deduction or withholding of any
United States federal income taxes, unless an event (including any change in treaty, law, or
regulation) has occurred prior to the date on which any such delivery would otherwise be required
which renders all such forms inapplicable or which would prevent such Bank from duly completing and
delivering any such form with respect to it and such Bank advises the Borrower and the Agent that
it is not capable of receiving such payments without any deduction or withholding of United States
federal income tax.

          (b) A Bank that is entitled to an exemption from or reduction of non-U.S. withholding tax
under the law of the jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Agent), at the time or times prescribed by applicable law or
reasonably requested by the Borrower, such properly completed and executed documentation prescribed
by applicable law as will permit such payments to be made without withholding or at a reduced rate;
provided, that such Bank is legally entitled to complete, execute and deliver such documentation if
in such Bank’s reasonable judgment such completion, execution or submission would not materially
prejudice the legal position of such Bank.

          (c) If the form provided by a Bank at the time such Bank first becomes a party to this
Agreement indicates a U.S. interest withholding tax rate in excess of zero, withholding tax at such
rate shall be considered excluded from Non-Excluded Taxes unless and until such Bank provides the
appropriate form certifying that a lesser rate applies, whereupon withholding tax at such lesser
rate shall be considered excluded from Non-Excluded Taxes only for periods governed by such form.

     Section 2.19. Maximum Amount Limitation. Anything in this Agreement, any Note, or the
other Loan Documents to the contrary notwithstanding, the Borrower shall not be required to pay
unearned interest on any Note or any of the Loan Obligations, or ever be required to pay interest
on any Note or any of the Loan Obligations at a rate in excess of the Maximum Rate, if any. If the
effective rate of interest which would otherwise be payable under this Agreement, any Note or any
of the other Loan Documents would exceed the Maximum Rate, if any, then the rate of interest which
would otherwise be contracted for, charged, or received under this Agreement, any Note or any of
the other Loan Documents shall be reduced to the

32

 

Maximum Rate, if any. If any unearned interest or discount or property that is deemed to
constitute interest (including to the extent that any of the fees payable by the Borrower for the
Loan Obligations to the Banks under this Agreement, any Note, or any of the other Loan Documents
are deemed to constitute interest) is contracted for, charged, or received in excess of the Maximum
Rate, if any, then such interest in excess of the Maximum Rate shall be deemed a mistake and
canceled, shall not be collected or collectible, and if paid nonetheless, shall, at the option of
the holder of such Note, be either refunded to the Borrower, or credited on the principal of such
Note. It is further agreed that, without limitation of the foregoing and to the extent permitted
by applicable law, all calculations of the rate of interest or discount contracted for, charged or
received by the Banks under their Notes, or under any of the Loan Documents, that are made for the
purpose of determining whether such rate exceeds the Maximum Rate applicable to the Banks, if any,
shall be made, to the extent permitted by applicable laws (now or hereafter enacted), by
amortizing, prorating and spreading during the period of the full terms of the Advances evidenced
by the Notes, and any renewals thereof all interest at any time contracted for, charged or received
by the Banks in connection therewith. This Section 2.19 shall control every other provision of all
agreements among the parties to this Agreement pertaining to the transactions contemplated by or
contained in the Loan Documents, and the terms of this Section 2.19 shall be deemed to be
incorporated in every Loan Document and communication related thereto.

     Section 2.20. Bank Records. All Advances and all payments or prepayments made
thereunder on account of principal or interest may be evidenced by each of the Banks in accordance
with its usual practice in an account or accounts evidencing such Advances and all payments or
prepayments thereunder from time to time and the amounts of principal and interest payable and paid
from time to time thereunder; in any legal action or proceeding in respect of the Notes, the
entries made in such account or accounts shall be prima facie evidence of the existence and amounts
of all Advances and all payments or prepayments made thereunder on account of principal or
interest.

     Section 2.21. Funding of Advances. Upon receipt by the Agent or a Bank of any Request
for Advance for any Term Revolving Loan Advance, Revolving Line of Credit Advance or any demand for
drawing under a Letter of Credit, the Agent or the Bank shall promptly notify the Borrower and the
other Banks as to the amount to be paid as a result of such Request for Advance, demand for drawing
and the respective payment date. Any notice pursuant to the forgoing sentence shall specify the
amount to be paid as a result of such Request for Advance, demand for drawing and the respective
payment date. Not later than 12:00 P.M. (Minneapolis, Minnesota time) on the applicable payment
date each Bank will make available to the Agent, in immediately available funds, an amount equal to
such Bank’s Pro Rata Share of the amount to be paid as a result of such Request for Advance, demand
or drawing.

     Section 2.22. Participation Obligations Absolute; Failure to Fund Participation. The
obligations of a Bank to fund its participation in the Letters of Credit and Swingline Advances in
accordance with the terms hereof shall be absolute, unconditional, and irrevocable and shall be
performed strictly in accordance with the terms of the Loan Documents under all circumstances
whatsoever, including the following circumstances: (a) any lack of validity of any Loan Document;
(b) the occurrence of any Event of Default; (c) the existence of any claim, set-off, counterclaim,
defense, or other right which such Bank, the Borrower or any other Person may have; (d) the
occurrence of any event that has or could reasonably be expected to have a material adverse effect
on the financial conditions or operation of any Bank and its Subsidiaries; (e) the failure of any
condition to an Advance or the issuance of a Letter of Credit under this Agreement to be satisfied;
(f) the fact that after giving effect to the funding of the participation the Outstanding Revolving
Advances may exceed the Borrowing Base; or (g) any other circumstance whatsoever, whether or not
similar to any of the foregoing. If a Bank fails to fund its participation in a Letter of Credit
or a Swingline Advance as required hereby, such Bank shall remain obligated to pay to the Issuer or
the Swingline Bank, as applicable, the amount it failed to fund on demand together with interest
thereon in

33

 

respect of the period commencing on the date such amount should have been funded until the date the
amount was actually funded to the applicable Person at a rate of interest equal to the Federal
Funds Rate for such period and such Person shall be entitled to offset against any and all sums to
be paid to such Bank hereunder the amount due such Person under this sentence.

     Section 2.23. Farm Credit System Entity Equity Interests. So long as any of the
entities identified in Schedule 2.23 is a Bank under this Agreement, the Borrower will acquire
equity in such Farm Credit System Entities (an “FCS Entity”) in such amounts and at such times as
the FCS Entities may require in accordance with the FCS Entities’ Bylaws and Capital Plans (as each
may be amended from time to time), except that the maximum amount of equity that the Borrower may
be required to purchase in the FCS Entities in connection with the Loans and Swingline Loans made
by the FCS Entities under this Agreement shall not exceed the maximum amount permitted by the FCS
Entities’ Bylaws as of the date of this Agreement. The rights and obligations of the parties with
respect to such equity and any distributions made on account thereof or on account of the
Borrower’s patronage with the FCS Entities shall be governed by the FCS Entities’ Bylaws, except
that if the FCS Entities sell a participation in a portion of any Loans due to the FCS Entities,
the sold portion of the Loans due to the FCS Entities shall not be entitled to patronage
distributions. A sale of participation interest may include certain voting rights of the
participants (to the extent otherwise permitted under Section 8.08) regarding the loans hereunder.
The Borrower hereby consents and agrees that the amount of any distributions with respect to the
Borrower’s patronage with the FCS Entities that are made in qualified written notices of allocation
and that are received by the Borrower from the FCS Entities will be taken into account by the
Borrower at the stated dollar amounts whether the distribution is evidenced by a stock certificate
or other form of written notice that such distribution has been made and recorded in the Borrower’s
name on the FCS Entities’ records. The Loans due to the FCS Entities under this Agreement and
other Indebtedness due to the FCS Entities hereunder shall be secured by a statutory first lien on
all equity that the Borrower may now own or hereafter acquire in the FCS Entities. Such equity
shall not, however, constitute security for Indebtedness due to any other Bank under this
Agreement. The FCS Entities shall not be obligated to set off or otherwise apply such equities to
the Borrower’s Indebtedness to the Bank.

     Section 2.24. Compensation. Upon the request of the Agent, the Borrower shall pay to
the Agent for the account of the Banks such amount or amounts as shall be sufficient (in the
reasonable opinion of the Agent) to compensate it for any loss, cost, or expense (excluding loss of
anticipated profits incurred by it) as a result of: (a) any payment, prepayment, or conversion of
a LIBOR Rate Loan for any reason on a date other than the last day of the Interest Period for such
Loan; or (b) any failure by the Borrower for any reason (including the failure of any condition
precedent specified in Section 3.01 to be satisfied) to borrow, extend, or prepay a LIBOR rate loan
on the date for such borrowing, extension, or prepayment specified in the relevant notice of
borrowing, extension or prepayment under this Agreement. Such indemnification may include any
amount equal to the excess, if any, of: (y) the amount of interest which would have accrued on the
amount so prepaid, or not so borrowed, converted or extended, for the period from the date of such
prepayment or of such failure to borrow, convert or extend to the last day of the applicable
Interest Period (or in the case of a failure to borrow, convert or extend, the Interest Period that
would have commenced on the date of such failure) in each case at the applicable rate of interest
for such loan as provided for herein, over (z) the amount of interest (as reasonably determined by
the Agent), which would have accrued to the Banks on such amount by placing such amount on deposit
for a comparable period with leading banks in the interbank LIBOR market. The covenants of the
Borrower set forth in this Section 2.24 shall survive the repayment of the Loans and other
obligations under the Loan Documents hereunder.

     Section 2.25. Excess Cash Flow. In addition to all other payments of principal and
interest required under this Agreement, at the end of the first full fiscal quarter following the
Closing Date, and continuing each fiscal quarter thereafter until the Maturity Date, the Borrower
shall remit to the Agent for the

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account of the Banks within five (5) days of delivery of the Financial Statements used to calculate
the applicable Excess Cash Flow, an amount equal to one hundred percent (100%) of the Borrower’s
Excess Cash Flow, calculated based upon, with respect to the first three fiscal quarters of each
fiscal year of the Borrower, that fiscal quarter’s interim Financial Statements, on or before sixty
(60) days after the end of each such fiscal quarter of the Borrower and, with respect to the fourth
fiscal quarter of the Borrower, the annual Financial Statements of the Borrower required to be
delivered pursuant to Section 5.01(c)(i), on or before one hundred and twenty (120) days after the
end of each fiscal year of the Borrower (the “Excess Cash Flow Payment”), provided however, that
the total Excess Cash Flow Payments required hereunder shall not exceed One Million Two Hundred
Fifty Thousand and No/100 Dollars ($1,250,000.00) in any fiscal quarter or Five Million and No/100
Dollars ($5,000,000.00) in any fiscal year (the “Maximum Excess Cash Flow Payment”). One hundred
percent (100%) of the Excess Cash Flow Payment shall be applied to the reduction of the outstanding
principal balance of the Term Loan in the inverse order of maturity. The Excess Cash Flow Payment
shall be re-calculated annually based upon audited fiscal year-end Financial Statements required by
Section 5.01(c)(i). If any such recalculation evidences an underpayment by the Borrower for such
fiscal year, then any time after the audited annual Financial Statements are required to be
delivered pursuant to Section 5.01(c)(i), the Borrower shall within thirty (30) days of the Agent’s
request remit to the Agent for the account of the Banks any additional amounts, resulting from such
underpayment, to the Agent for the account of the Banks under this Section in an amount not to
exceed the Maximum Excess Cash Flow Payment. If any such recalculation by the Borrower or the
Agent evidences an overpayment by the Borrower for such fiscal year, the Borrower may reduce its
next Excess Cash Flow Payment due by the amount of such overpayment until the entire overpayment is
applied. Any Excess Cash Flow Payment or any other payment from Excess Cash Flow shall not
constitute a prepayment with respect to which a prepayment fee under Section 2.16 is required to be
paid. Notwithstanding the foregoing, the requirement to make an Excess Cash Flow Payment for any
fiscal quarter shall not apply if Owner’s Equity is greater than or equal to sixty percent (60%),
but will be reinstated if Owner’s Equity falls below sixty percent (60%), in each case measured for
such fiscal quarter or year end, as the case may be. Notwithstanding the foregoing, the Excess
Cash Flow Payment shall not exceed an aggregate amount of Twenty-five Million and No/100 Dollars
($25,000,000.00) during the term of this Agreement.

     Section 2.26. Administrative Fee. The Borrower agrees to pay to the Agent, for
Agent’s own and sole account and not for the account of the Banks, the fees in the amounts
determined from time to time by the agreement of the Borrower and the Agent and as set forth in a
separate letter agreement between the Borrower and the Agent dated as of the date of this
Agreement. Such fees shall be deemed fully earned and non-refundable on the due date thereof.

     Section 2.27. Commitment Fee. The Borrower agrees to pay to the Agent for the account
of each Bank a commitment fee on the average daily unused portion of such Bank’s Revolving
Commitment from the Closing Date until the Term Revolving Loan Termination Date or the Revolving
Line of Credit Termination Date, as the case may be, at the rate of twenty-five (25) basis points
on a per annum basis, payable in arrears in quarterly installments on each Quarterly Payment Date
during the term of such Bank’s Revolving Commitment, and on the Term Revolving Loan Termination
Date and/or the Revolving Line of Credit Termination Date. For purposes of this Agreement, the
unused portion of a Bank’s Revolving Commitment for any measurement period shall be the positive
difference, if any, of (a) the average daily amount of such Bank’s Revolving Commitment, minus (b)
the Bank’s Pro Rata Share of the average daily outstanding Revolving Advances and Revolving Letter
of Credit Liabilities, but shall not, for purposes of this Section 2.27 only, be deemed utilized by
any Swingline Advances unless the Banks’ participations therein are funded in accordance with
Section 2.06.

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     Section 2.28. Mitigation Obligations; Replacement of Banks.

          (a) If the Borrower is required to pay any additional amount to any Bank or any governmental
authority for the account of any Bank pursuant to Section 2.17, then such Bank shall use reasonable
efforts to designate a different lending office for funding or booking its Loans hereunder or to
assign its rights and obligations hereunder to another of its offices, branches or affiliates if
such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section
2.17 in the future and (ii) would not subject such Bank to any unreimbursed cost or expense and
would not otherwise be materially disadvantageous to such Bank. The Borrower hereby agrees to pay
all reasonable costs and expenses incurred by any Bank in connection with any such designation or
assignment.

          (b) Anything contained herein to the contrary notwithstanding, if the Borrower is required to
pay any additional amount to a Bank or any Governmental Authority for the account of a Bank
pursuant to Section 2.17, or if a Bank defaults in its obligation to fund Loans hereunder or if a
Bank has become insolvent and its assets become subject to a receiver, liquidator, trustee,
custodian or other officer having similar powers, then the Borrower may, at its sole expense and
effort, upon notice to such Bank and the Agent, require such Bank to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in Section 8.07), all its
interests, rights and obligations under this Agreement to an assignee that shall assume such
obligations (which assignee may be another Bank, if a Bank accepts such assignment); provided that
(i) the Borrower shall have received the prior written consent of the Agent to the extent required
by Section 8.07, which consent shall not unreasonably be withheld, (ii) such Bank shall have
received payment of an amount equal to the outstanding principal of its Loans, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the
extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of
all other amounts) and (iii) in the case of any such assignment resulting from payments required to
be made pursuant to Section 2.17, such assignment will result in a reduction in such payments. If,
in connection with any proposed amendment, waiver or consent with respect to any of the provisions
hereof as contemplated by Section 8.01 hereof, the consent of the Required Banks shall have been
obtained, but the consent of one or more other Banks (each, a “Non-Consenting Bank”) whose consent
is required shall not have been obtained, then, with respect to each such Non-Consenting Bank, the
Borrower may, by giving notice to the Agent and such Non-Consenting Bank of its election to do so,
elect to cause such Non-Consenting Bank (and such Non-Consenting Bank hereby irrevocably agrees) to
assign its outstanding Loans and its Commitments, if any, to one or more Assignees (each, a
“Replacement Bank”) in accordance with the provisions of Section 8.07(b) of this Agreement. The
Non-Consenting Bank shall pay the fees, if any, payable thereunder in connection with any such
assignment from such Non-Consenting Bank, provided, that (i) on the date of such assignment, the
Replacement Bank shall pay to the Non-Consenting Bank an amount equal to the sum of (A) an amount
equal to the principal of, and all accrued interest on, all outstanding Loans of such
Non-Consenting Bank, (B) an amount equal to all unreimbursed drawings that have been funded by such
Non-Consenting Bank, together with all then unpaid interest with respect thereto at such time and
(C) an amount equal to all accrued but theretofore unpaid fees owing to such Non-Consenting Bank
pursuant to Section 2.27, (ii) on the date of such assignment, the Borrower shall pay any amounts
payable to the Non-Consenting Bank pursuant to Sections 2.24 or 2.29 or this Section 2.28 or
otherwise as if it were a prepayment and (iii) each Replacement Bank shall consent, at the time of
such assignment, to each matter in respect of which such Non-Consenting Bank was a Non-Consenting
Bank, provided, further, that the Borrower may not make any such election with respect to any
Non-Consenting Bank which is also the Issuer unless, prior to the effectiveness of such election,
the Borrower shall have caused each outstanding Letter of Credit issued by such Non-Consenting Bank
to be cancelled, fully cash collateralized or supported by a “back to back” Letter of Credit
reasonably satisfactory to the Non-Consenting
Bank.

     Section 2.29. Reserves on LIBOR Rate Loans. The Borrower shall pay to each Bank, as
long as such Bank shall be required under regulations of the Board of Governors of the Federal
Reserve System to maintain reserves with respect to liabilities or assets consisting of or
including Eurocurrency liabilities (as

36

 

defined in Regulation D), additional interest on the unpaid principal amount of each LIBOR Rate
Loan of such Bank equal to the actual costs of such reserves allocated to such Loan by such Bank
(as determined by such Bank in good faith, which determination shall be conclusive absent manifest
error), which shall be due and payable on each date on which interest is payable on such Loan,
provided that the Borrower shall have received at least 10 days’ prior written notice (with a copy
to the Agent) of such additional interest from such Bank. If a Bank fails to give written notice
10 days prior to the last day of the relevant Interest Period, such additional interest shall be
due and payable 10 days from receipt of such written notice.

     Section 2.30 Debt Service Reserve Account. In addition to all other payments required
under this Agreement, on the first fiscal quarter end following the Closing Date, as soon as
available, but in no event later than thirty (30) days after the end of such fiscal quarter,
Borrower shall deposit an amount that is not less than one quarterly payment of principal and
interest due under the Term Loan and from time to time thereafter, upon written notice from the
Agent, additional or lesser amounts to account for changes in the quarterly principal and interest
payment amounts due (together, the “Required Debt Service Reserve Deposit Amount”) into the Debt
Service Reserve Account. The interest rate for purposes of the preceding sentence shall be the
applicable interest rate on the Term Loan for the immediately preceding Quarterly Payment Date such
a payment is due. Thereafter, (i) on any Monthly Payment Date on which the aggregate amount in the
Debt Service Reserve Account is less than the Required Debt Service Reserve Deposit Amount,
Borrower shall, as soon as available, but in no event later than five (5) Business Days after such
Monthly Payment Date, deposit amounts into the Debt Service Reserve Account to restore the balance
in such account to the Required Debt Service Reserve Deposit Amount, or (ii) at any time upon
receipt of written notice from the Agent that the amount in the Debt Service Reserve Account is
less than the Required Debt Service Deposit Amount, Borrower shall, as soon as available, but in no
event later than five (5) Business Days after receipt of such notice, deposit amounts into the Debt
Service Reserve Account to restore the balance in such account to the Required Debt Service Reserve
Deposit Amount. Any Affiliated Borrower may restore the balance of any other Affiliated Borrower’s
Required Debt Service Reserve Deposit Amount through loans from other US Bio Entities, provided
that no loan between Affiliated Borrowers may be made if, on the date such loan is made, an Event
of Default has occurred and is continuing or would result therefrom, except for the Event of
Default arising as a result of Borrower’s failure to restore the required balance of the Debt
Service Reserve Account. As and when any Obligation is past due, after any applicable grace
periods have expired, under any Loan Document, Agent, in its sole discretion, may withdraw from the
Debt Service Reserve Account, for a credit to its own account to be held for the benefit of the
Banks, the amount of the then past due Obligation. Notwithstanding the foregoing sentence, Agent
shall have no obligation to withdraw any portion of the Debt Service Reserve Account: (i) if an
Event of Default has occurred and is continuing under the Loan Documents, or (ii) to withdraw any
of the Debt Service Reserve Account for any other purpose other than for which the Debt Service
Reserve Account was established, provided that if an Event of Default has occurred and is
continuing, the Agent may withdraw amounts in the Debt Service Reserve Account, in its sole
discretion, for the payment of any Obligation then past due, after any applicable grace periods
have expired, in such order and manner as is consistent with the Agent’s obligations set forth in
this Agreement. Withdrawals by the Agent of any amounts from the Debt Service Reserve Account to
pay any Obligation then past due after any applicable grace periods have expired, may be made
without the requirement of any consent by or notice to the Borrower, provided that Agent shall
provide to Borrower and to each Affiliated Borrower, within five (5) Business Days after any
withdrawal from the Debt Service Reserve Account is made by Agent, notice that such withdrawal was
made and the Obligation such withdrawal was applied to and, if applicable, that the Debt Service
Reserve Account is then below the Required Debt Service Reserve Deposit Amount. Notwithstanding
the foregoing, Borrower recognizes and acknowledges that its obligation to pay required Obligations
are absolute and unconditional and it is not dependent upon sufficient deposits in the Debt Service
Reserve Account being available to make payment on any Obligation, and nothing herein shall be
construed to negate or modify the Borrower’s absolute and

37

 

unconditional obligation to pay the Obligations in accordance with the terms and conditions of this
Agreement and the Loan Documents.

     2.31 Commitment Termination. The Borrower may terminate any or all of the Commitments
at any time upon five (5) Business Days prior written notice to the Agent or shorter notice period
agreed to be the Agent, provided, that upon receipt of such notice by the Agent, no Bank shall be
committed to make any further Advance to the Borrower under any Loan under any Commitment so
terminated, and that such notice shall not terminate any Obligations of the Borrower under any Loan
Document.

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ARTICLE III

CONDITIONS PRECEDENT

     Section 3.01. Conditions Precedent to Funding. The obligations of the Banks to make
the initial Advance, are subject to the conditions precedent that the Agent shall have received the
following, in form and substance satisfactory to the Agent:

               (a) This Agreement, duly executed by the Borrower, the Agent and the Banks;

               (b) The Notes, if any, duly executed by the Borrower;

               (c) The Deed of Trust, fully executed and notarized, granting a first priority Lien on the
Real Property and any improvements thereon to Agent for the benefit of the Banks, subject only to
Permitted Liens;

               (d) The Security Agreement duly executed by the Borrower;

               (e) The Guaranty;

               (f) A copy of the Design Agreement and the ICM License Agreement, together with copies of all
permits and government approvals reasonably requested by the Agent relating to the operation and
use of the Project (including building permits, zoning confirmation from Merrick County, a
conditional use permit, storm water discharge permit, high capacity well/water supply permit, an
air pollution control permit, and well test results) other than those permits and approvals issued
in the ordinary course;

               (g) An assignment of the Design Agreement and the ICM License Agreement pursuant to which the
Borrower shall have assigned to the Agent all of the Borrower’s right, title and interest in and to
each such Design Agreement and the ICM License Agreement, and which assignment shall have been
consented to and certified in writing by the other party(ies) to each such Design Agreement and the
ICM License Agreement;

               (h) Copies of all Material Contracts, executed on or prior to the date of the initial Advance,
reasonably requested by the Agent between Borrower and third parties used in the normal operations
of the Borrower, including management agreements, marketing agreements, and corn delivery
agreements;

               (i) Assignments of the Material Contracts, delivered pursuant to Section 3.01(h) (including
the ethanol marketing agreement, DGS marketing agreement, natural gas supply agreement and electric
service agreement) reasonably requested by the Agent, duly executed by the Borrower and pursuant to
which the Borrower shall have assigned to the Agent all of the Borrower’s right, title and interest
in and to each of such contracts, and which assignment shall have been consented to by the other
party(ies) to each such contract;

               (j) Financing Statements in form and substance reasonably satisfactory to the Agent and in
proper form under the applicable Uniform Commercial Code for filing in all jurisdictions as may be
necessary or, in the opinion of the Agent, desirable to perfect the security interests created by
the Security Agreement;

39

 

               (k) UCC, tax, and judgment lien search reports listing all financing statements and other
encumbrances which name the Borrower (under its present name and any previous name) and which are
filed in the jurisdictions in which the Borrower is located or organized together with copies of
such financing statements (none of which shall cover the Collateral purported to be covered by the
Security Agreement);

               (l) An ALTA trustee title insurance policy issued by a title insurance company reasonably
acceptable to the Agent, with respect to the Real Property, insuring the Agent and the Banks that
the Deed of Trust creates a valid and enforceable Lien on the Real Property, free and clear of all
defects and encumbrances except Permitted Liens and containing, to the extent the following
endorsements are available in the state where the Real Property is located:
(i) a comprehensive endorsement (ALTA form 9); (ii) a zoning endorsement (ALTA form 3.1) specifying
an ethanol production facility as a permitted use for all of the parcels included in the Real
Property; (iii) a restrictions, encroachments, minerals-owners endorsement (ALTA Form 9.2); and
(iv) such other endorsements as the Agent shall reasonably require. Such title insurance policy
shall be in form and substance reasonably satisfactory to the Agent and shall provide for
affirmative insurance and such reinsurance as the Agent may reasonably request, all of the
foregoing in form and substance reasonably satisfactory to the Agent;

               (m) Maps or plats of the Real Property certified to the Agent and the title insurance company
issuing the policy referred to in Subsection 3.01(l) (the “Title Insurance Company”) in a manner
reasonably satisfactory to the Agent and the Title Insurance Company, dated a date reasonably
satisfactory to the Agent and the Title Insurance Company by an independent professional licensed
land surveyor, which maps or plats and the surveys on which they are based shall be sufficient to
delete any standard printed survey exception contained in the applicable title policy and be made
in accordance with the Minimum Standard Detail Requirements for Land Title Surveys jointly
established and adopted by the American Land Title Association and the American Congress on
Surveying and Mapping in 1992, and, without limiting the generality of the foregoing, there shall
be surveyed and shown on such maps, plats or surveys the following: (i) the locations on such
sites of all the buildings, structures and other improvements and the established building setback
lines; (ii) the lines of streets abutting the sites and width thereof; (iii) all access and other
easements appurtenant to the sites necessary to use the sites; (iv) all roadways, paths, driveways,
easements, encroachments and overhanging projections and similar encumbrances affecting the site,
whether recorded, apparent from a physical inspection of the sites or otherwise known to the
surveyor; (v) any encroachments on any adjoining property by the building structures and
improvements on the sites; and (vi) if the site is described as being on a filed map, a legend
relating the survey to said map;

               (n) Evidence as to: (i) whether any portion of the Real Property is in an area designated by
the Federal Emergency Management Agency as having special flood or mud slide hazards (a “Flood
Hazard Property”); and (ii) if any portion of the Real Property is a Flood Hazard Property: (A)
whether the community in which such Real Property is located is participating in the National Flood
Insurance Program; (B) the Borrower’s written acknowledgment of receipt of written notification
from the Agent (1) as to the fact that such Real Property is a Flood Hazard Property and (2) as to
whether the community in which each such Flood Hazard Property is located is participating in the
National Flood Insurance Program; and (C) copies of insurance policies or certificates of insurance
of the Borrower evidencing flood insurance reasonably satisfactory to the Agent and naming the
Agent as sole loss payee on behalf of the Banks;

               (o) A certificate of the secretary of the Borrower together with true and correct copies of
the following: (i) the Articles of Organization of the Borrower, including all amendments thereto,
certified by the Office of the Secretary of State of the state of its organization and dated within
thirty (30) days prior to the date hereof; (ii) the Operating Agreement of the Borrower, including
all amendments thereto; (iii) the resolutions of the Board of Governors of the Borrower authorizing
the execution, delivery and performance of

40

 

this Agreement, the other Loan Documents, and all
documentation executed and delivered in connection therewith to which the Borrower is a party; (iv)
certificates of the appropriate government officials of the state of organization of the Borrower
as to its existence and good standing, and certificates of the appropriate government officials in
each state where each corporate Borrower does business and where failure to qualify as a foreign
corporation would have a material adverse effect on the business and financial condition of the
Borrower, as to its good standing and due qualification to do business in such state, each dated
within 30 days prior to the date hereof; and (v) the names of the officers of the Borrower
authorized to sign this Agreement and the other Loan Documents to be executed by each corporate
Borrower, together with a sample of the true signature of each such officer;

               (p) The legal opinion of legal counsel for the Borrower and the Guarantor in a form and
substance reasonably acceptable to the Agent;

               (q) An intercreditor and subordination agreement between the Agent and any holder of
subordinated debt as to the priority of the Agent’s Security Interests in the Collateral, rights to
payment following an Event of Default, and as to such other matters as reasonably requested by the
Agent;

               (r) Evidence that the costs and expenses (including attorneys’ fees) referred to in Section
8.04, to the extent incurred and invoiced, shall have been paid in full;

               (s) The results of the Agent’s inspection of the Collateral, and the Agent’s receipt of an
appraisal of the Collateral acceptable to the Agent in its sole discretion;

               (t) Satisfactory review by the Agent of any pending litigation which could reasonably be
expected to have a Material Adverse Effect;

               (u) A Phase I Environmental Assessment in form and substance reasonably acceptable to the
Agent;

               (v) A schedule, certified by the Borrower as accurate and complete, setting forth: (i) the
necessary licenses, permits and consents required by applicable federal, state, and local
governmental entities required for the lawful operation of the Project known to the Borrower on the
Closing Date; and (ii) the dates such licenses, permits and consents are planned to be obtained;

               (w) A subordination agreement in form and substance reasonably acceptable to Lender
subordinating that certain Lien pursuant to that certain Subordinated Deed of Trust and Security
Agreement Fixture Financing Statement dated December 2, 2003 made by Platte Valley Fuel Ethanol,
L.L.C. to Pinnacle Bank;

               (x) [Reserved]

               (y) A Commodity Account Control Agreement for all commodity accounts kept and maintained by
the Borrower, if any;

               (z) Certificates of the insurance required by Sections 5.01(j) and 5.01(r)(xi) and the Loan
Documents have been obtained by the Borrower; and

               (aa) An “as-built” survey of the Real Property which: (A) sets forth the location and exterior
lines of the Real Property and includes any and all improvements completed on the Real Property,
(B) demonstrates compliance with all applicable setback requirements, (C) demonstrates that the
Project is

41

 

entirely within the exterior boundaries of the Real Property and any building
restriction lines and does not encroach upon any easements or rights-of-way, and (D) contains such
other information as the Agent may reasonably request; and

     Section 3.02. Conditions Precedent to All Advances. The effectiveness of this
Agreement, the obligation of the Banks to make each Advance and the obligation of the Issuer to
issue any Letter of Credit shall be subject to the further conditions precedent that on the Closing
Date (with respect to the effectiveness of this Agreement only) or on the date of such Advance or
Letter of Credit, as applicable, that the following statements shall be true (and the receipt by
the Borrower of the proceeds of such Advance and/or the issuance each Letter of Credit shall be
deemed to constitute a representation and warranty by the Borrower that such statements are true on
such date):

               (a) The representations and warranties contained in Section 4.01, and in the Loan Documents
are true and correct in all material respects as of the date of the request for any Advance to the
same extent and with the same effect as if made at and as of the date thereof except as disclosed
in writing to the Agent and the Banks, except to the extent such representations and warranties
relate to a specific earlier date in which case such representations and warranties shall have been
true and correct in all material respects as of such earlier date;

               (b) No Default or Event of Default has occurred and is continuing, or would result from such
Advance or Letter of Credit; and

               (c) In the case of a Revolving Line of Credit Advance or Revolving Letter of Credit, after
giving effect thereto, the aggregate outstanding Revolving Line of Credit Advances and Revolving
Letters of Credit do not exceed the Borrowing Base on such date.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     Section 4.01. Representations and Warranties of the Borrower. The Borrower represents
and warrants as follows:

               (a) Borrower. The Borrower is a limited liability company duly organized and validly
existing and in good standing under the laws of the State of Minnesota and is qualified to do
business in all other jurisdictions in which the nature of its business makes such qualification
necessary and where the failure to so qualify could reasonably be expected to have a Material
Adverse Effect. The Borrower has the limited liability company power and authority to own and
operate its assets and to carry on its business and to execute, deliver, and perform its
obligations under the Loan Documents to which it is a party. There are no outstanding
subscriptions, options, warrants, calls, or rights (including preemptive rights) to acquire, and no
outstanding securities or instruments convertible into, membership interests (units) of the
Borrower, except for those set forth on Schedule 4.01(a).

               (b) The Loan Documents. The execution, delivery and performance by the Borrower of
the Loan Documents to which it is a party are within the Borrower’s limited liability company
powers, have been duly authorized by all necessary limited liability company action on the part of
the Borrower, do not contravene: (i) the articles of organization or operating agreement of the
Borrower; or (ii) any law or any material contractual restriction binding on the Borrower the
violation of which could reasonably be expected to have a Material Adverse Effect; and, except as
contemplated or created by this Agreement and the other

42

 

Loan Documents, the execution, delivery and
performance by the Borrower of the Loan Documents do not result in or require the creation of any
Lien upon or with respect to any of its properties.

               (c) Governmental Approvals. Except for filings in connection with the perfection of
the Liens created by the Loan Documents, no consent, authorization or order of any Governmental
Authority or of any party to any agreement to which the Borrower is a party or by which it or any
of its property is bound, is necessary in connection with the use or operation of the Project, the
execution, delivery or performance of the Loan Documents or the perfection of the liens and
security interests contemplated thereby, except as have, in all material respects, been obtained or
made (or waived) and are in full force and effect or are issued in the ordinary course.

               (d) Enforceability. This Agreement is, and each other Loan Document to which the
Borrower is a party when delivered will be, legal, valid and binding obligations of the Borrower
enforceable against the Borrower in accordance with their respective terms, except as may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting
the enforcement of creditor’s rights generally and by general principles of equity.

               (e) Financial Condition and Operations. The balance sheet of the Borrower, as of
October 31, 2006, and, with respect to the period ended October 31, 2006 the related statement of
cash flow of the Borrower for the fiscal period then ended, copies of which have been furnished to
the Agent, fairly present in all material respects the financial condition of the Borrower as at
such date, and the results of the operations of the Borrower for the period ended on such dates.
Since the date of the annual Financial Statements delivered by the Borrower for its first fiscal
year ending on October 31, 2006, there has been no event or condition which could reasonably be
expected to have a Material Adverse Effect.

               (f) Litigation. Except as described on Schedule 4.01(f), there is no pending or, to
the knowledge of the Borrower, threatened action or proceeding against the Borrower before any
Governmental Authority (i) which could reasonably be expected to have a Material Adverse Effect or
(ii) with respect to any Loan Document. As of the Closing Date, there are no outstanding judgments
against the Borrower.

               (g) Use of Proceeds of Advances, etc. (i) the Borrower is not engaged in the business
of extending credit for the purpose of purchasing or carrying “margin stock” (within the meaning of
Regulation U issued by the Board of Governors of the Federal Reserve System) and (ii) no proceeds
of the Loans will be used to purchase or carry any margin stock in violation of applicable law.

               (h) Liens. Except as created by the Loan Documents, and the Permitted Liens, there is
no Lien upon or with respect to any of the properties of the Borrower, which secures Debt of any
Person, except as described in Schedule 5.02(a).

               (i) Taxes. The Borrower (A) has filed or caused to be filed all federal income and
all material state and local tax returns that are required to be filed and (B) has paid all
material taxes, assessments, and governmental charges or levies upon it and its property, income,
profits and assets which are shown to be due and payable on a return or report described in clause
(A), except where (i) such items are not yet delinquent or (ii) the payment of such tax,
assessment, government charge or levy is being contested in good faith and by appropriate
proceedings and adequate reserves in compliance with GAAP have been set aside on the Borrower’s
books therefor.

               (j) Solvency. The Borrower: (i) owns assets the fair saleable value of which are:
(A) greater than the total amount of liabilities (including a reasonable estimate of contingent
liabilities); and

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(B) greater than the amount that will be required to pay the probable liabilities
of its then existing debts as they become absolute and matured considering all financing
alternatives and potential asset sales reasonably available to it; (ii) has capital that is not
unreasonably small in relation to its business as presently conducted; and (iii) does not intend to
incur and does not believe that it will incur debts beyond its ability to pay such debts as they
become due.

               (k) Location of Inventory and Farm Products; Third Parties in Possession; Crops. As
of the date hereof, the Borrower’s Inventory pledged as Collateral under the Security Agreement
with a fair market value in excess of $1,000,000.00 is located at the places (or, as applicable,
jurisdictions) specified in Schedule 4.01(k), except to the extent any such Inventory is in
transit. Schedule 4.01(k) correctly identifies, as of the date hereof, the landlords or trustees,
if any, of each of its locations identified in Schedule 4.01(k) currently leased or owned by the
Borrower. Except for the Persons identified on Schedule 4.01(k), as of the date hereof, no Person
other than the Borrower or the Agent has possession of any of the Borrower’s Inventory with a fair
market value in excess of $1,000,000.00. Except as described above, as of the date hereof, none of
the Borrower’s Inventory has been located in any location within the past four months other than as
set forth on Schedule 4.01(k) for the Borrower.

               (l) Office Locations; Fictitious Names; Predecessor Companies; Tax I.D. Number. As of
the date hereof, the Borrower’s chief place of business, its chief executive office, and its
jurisdiction of organization are located at the places identified on Schedule 4.01(l). Within the
last four months from the date hereof, the Borrower has not had any other chief place of business,
chief executive office, or jurisdiction of organization. Schedule 4.01(l) also sets forth, as of
the date hereof, all other places where the Borrower keeps its books and records and all other
locations where the Borrower has a place of business. As of the date hereof, the Borrower does not
do business under any trade-name or fictitious business name except as disclosed on Schedule
4.01(l). Schedule 4.01(l) sets forth an accurate list as of the date hereof of all names of all
predecessor companies of the Borrower including the names of any entities it acquired (by stock
purchase, asset purchase, merger or otherwise). For purposes of the foregoing, a “predecessor
company” shall mean any Person whose assets or equity interests are acquired by the Borrower or who
was merged with or into the Borrower within the last four months prior to the date hereof.
Schedule 4.01(l) sets forth, as of the date hereof, the Borrower’s United States Federal Income Tax
I.D. Number and state organizational identification number.

               (m) Title to Properties. The Borrower has good and marketable fee title to the Real
Property and owns or has rights in all of its Personal Property in each case necessary for the
conduct of its business in each case subject to Permitted Liens and in each case necessary for the
conduct of business and subject to Permitted Liens.

               (n) Disclosure. All factual information furnished by the Borrower or the Subsidiaries
in writing to the Agent (including all factual information contained in the Loan Documents)
(excluding projections, estimates, other forward-looking information and pro forma financial
information) for purposes of or in connection with this Agreement or the other Loan Documents taken
as a whole is true and correct in all material respects on and as of the date as of which such
information is dated or certified and such factual information does not omit to state any material
fact necessary to make such information taken as a whole not materially misleading as of the time
made or delivered in light of the circumstances under which such information was made or provided.

               (o) Operation of Business. The Borrower possesses all licenses, permits, franchises,
patents, copyrights, trademarks, or rights thereto, necessary to conduct its business substantially
as now conducted except those licenses, permits, franchises, patents, copyrights, trademarks or
rights thereto for

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which the failure to so possess could not reasonably be expected to have a
Material Adverse Effect, and the Borrower is not in violation of any valid rights of other Persons
with respect to any of the foregoing except violations that could not reasonably be expected to
have such a Material Adverse Effect;

               (p) Intellectual Property. The Borrower owns, or has the legal right to use, all
patents, registered trademarks and registered copyrights which are necessary for it to conduct its
business as currently conducted (collectively the “Intellectual Property”), except where the
failure to so own or so have such legal right to use could not reasonably be expected to have a
Material Adverse Effect. As of the Closing Date, set forth in Schedule 4.01(p) is a list of all
Intellectual Property registered with the United States Copyright Office or the United States
Patent and Trademark Office and owned by the Borrower. Except as provided in Schedule 4.01(p), to
the knowledge of the Borrower, no claim has been asserted and is pending by any Person challenging
or questioning the use of any such Intellectual Property or the validity or effectiveness of any
such Intellectual Property, nor does the Borrower know of any such claim, and, to the knowledge of
the Borrower, the use of such Intellectual Property by the Borrower does not infringe on the rights
of any Person, except for such claims or infringements that, in the aggregate, could not reasonably
be expected to have a Material Adverse Effect.

               (q) Employee Benefit Plans. The Borrower is in compliance in all material respects
with the applicable provisions of ERISA, except where the failure to so comply could not reasonably
be expected to have a Material Adverse Effect.

               (r) Investment Company Act. The Borrower is not required to be registered as an
“investment company” within the meaning of the Investment Company Act of 1940, as amended.

               (s) Compliance with Laws. The Borrower is in compliance in all material respects with
all laws, rules, regulations, ordinances, codes and orders applicable to it, except where the
failure to so comply could not reasonably be expected to have a Material Adverse Effect.

               (t) Environmental Compliance. Except as set forth in Schedule 4.01(t), the Borrower
is in compliance with all applicable Environmental Laws except where the failure to so comply could
not reasonably be expected to have a Material Adverse Effect.

               (u) Material Contracts. The Borrower has performed all of its material obligations,
other than those obligations for which performance is not yet due, under all Material Contracts,
except where the failure to so perform could not reasonably be expected to have a Material Adverse
Effect. To the knowledge of the Borrower, each such Material Contract is in full force and effect
in accordance with the terms thereof.

               (v) Construction Expenses and Liens. All Project Costs have been paid and all Liens,
other than Permitted Liens, relating to the Project have been satisfied and terminated by the
Borrower in accordance with Section 5.01(r).

               (w) Substantial Completion. Substantial Completion of the Project shall have occurred.

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ARTICLE V

COVENANTS OF THE BORROWER

     Section 5.01. Affirmative Covenants. So long as any Loan Obligations (other than
contingent indemnification obligations not then due and payable) remain unpaid or the Banks shall
have any commitment hereunder, the Borrower shall, unless the Agent shall otherwise consent in
advance in writing:

               (a) Compliance with Laws, etc. Comply in all material respects with all laws, rules,
regulations and orders applicable to it, including (i) zoning and land use laws, (ii) employee
benefit and Environmental Laws, and (iii) paying before the same become delinquent all taxes,
assessments and governmental charges imposed upon it or upon its property except for items which
are not yet delinquent or to the extent contested in good faith except, in each case, where the
failure to so comply with such laws, rules, regulations or orders could not reasonably be expected
to have a Material Adverse Effect.

               (b) Visitation Rights; Field Examination. During normal business hours and from time
to time upon reasonable prior written notice, permit the Agent or its representatives to (i)
examine and make copies of and abstracts from the records and books of account of the Borrower, and
(ii) enter onto the Real Property of the Borrower to conduct field examinations and Collateral
inspections, provided that such inspections or examinations do not unreasonably interfere with the
Borrower’s use of the Real Property or delay progress on the Project, and (iii) discuss the
affairs, finances, and accounts of the Borrower with any of the Borrower’s Senior Officers,
provided that the Borrower shall be obligated to reimburse the Agent for its reasonable and
documented out-of-pocket costs and expenses in connection with only one such visit and/or
inspection during any fiscal year while no Event of Default exists and is continuing. Upon the
occurrence and during the continuance of an Event of Default or in the event that there are deemed
by the Agent to be any material inconsistencies and/or material noncompliance with respect to any
financial or other reporting on the part of the Borrower, then with respect to any and all visits
and inspections described in clauses (i), (ii) and (iii) above deemed necessary or desirable on
account of such Event of Default, inconsistency and/or noncompliance, Borrower shall be required to
reimburse the Agent for the reasonable and documented out-of-pocket costs and expenses of the Agent
in connection with such visits or inspections. In addition to the foregoing, at any reasonable
time during normal business hours and from time to time as the Agent may reasonably request upon
reasonable prior written notice, the Borrower also shall permit the Agent or representatives
thereof, at the expense of the Agent, to examine and make copies of and abstracts from the records
and books of account of, and visit the properties of, the Borrower, and to discuss the affairs,
finances and accounts of the Borrower with any of its officers.

               (c) Reporting Requirements. Furnish to the Agent:

                    (i) beginning with the Borrower’s fiscal year ending on December 31, 2006, as soon as
available, but in no event later than one hundred twenty (120) days after the end of each fiscal
year of the Borrower occurring after the Closing Date and during the term hereof, a copy of
reviewed (unaudited) financial statements (including balance sheet, statements of income and cash
flows and, if any, accompanying notes thereto (the “Financial Statements”)), for such fiscal year
for the Borrower, which Financial Statements shall be prepared by McGladrey & Pullen, LLP or
another accounting firm reasonably acceptable to the Agent. Such Financial Statements shall be
accompanied by a Compliance Certificate, calculated as of the last day of the fiscal period set
forth in such Financial Statements;

                    (ii) beginning with the Borrower’s fiscal quarter ending on December 31, 2006, as soon as
available, but in no event later than sixty (60) days after the end of each of the first three
fiscal quarters of each fiscal year of the Borrower occurring after the Closing Date and during the
term hereof, a copy of unaudited quarterly consolidated Financial Statements of the Borrower, in
each case prepared in accordance with GAAP in all material respects (except for the omission of
footnotes and for the effect of

46

 

normal year-end audit adjustments). Such Financial Statements
shall be prepared in comparative form, including a comparison of actual performance to the budget for such
quarter and year-to-date;

                    (iii) promptly upon the Agent’s request therefor, copies of all reports and notices which the
Borrower or any Subsidiary files under ERISA with the Internal Revenue Service or the Pension
Benefit Guaranty Corporation or the U.S. Department of Labor or which the Borrower or any
Subsidiary receives from the Pension Benefit Guaranty Corporation or the U.S. Department of Labor;

                    (iv) notwithstanding anything to the contrary set forth in the foregoing Section 5.01(c)(iii),
within thirty (30) days after a Senior Officer of the Borrower becomes aware of the occurrence of
any Reportable Event (as defined in Section 4043 of ERISA) applicable to the Borrower or any
Subsidiary, a statement describing such Reportable Event and the actions the Borrower proposes to
take in response to such Reportable Event;

                    (v) by November 1 of each fiscal year of the Borrower, an annual (presented on a quarterly
basis) operating and capital assets budget of the Borrower for the immediately succeeding fiscal
year;

                    (vi) as soon as available but in no event later than forty-five (45) days after the end of
each month, production reports for the immediately preceding calendar month setting forth corn
inputs, ethanol output, DGS and carbon dioxide output, and natural gas usage, together with such
additional production information as reasonably requested by the Agent;

                    (vii) promptly, and in any event within ten (10) Business Days after any Senior Officer of the
Borrower obtains knowledge of the occurrence of an Event of Default or a Default that is
continuing, notice of such Event of Default or Default;

                    (viii) promptly after the receipt thereof, a copy of any management letters or written reports
submitted to the Borrower by its independent certified public accountants with respect to the
business, financial condition or operation of the Borrower;

                    (ix) promptly after the receipt thereof, a copy of any notice of default under any Long-Term
Marketing Agreement;

                    (x) promptly after transmittal or filing thereof by the Borrower or the Guarantor, copies of
all proxy statements, notices and reports sent to its members or shareholders and copies of all
registration statements (without exhibits) and all reports which it files with the Securities and
Exchange Commission (or any governmental body or agency succeeding to the functions of the
Securities and Exchange Commission); provided that, for purposes of this Section 5.01(c)(x), notice
of the filing with the Securities and Exchange Commission shall constitute delivery of such proxy
statements, registration statements, notices or reports;

                    (xi) promptly after request therefor, such other information respecting the condition or
operations, financial or otherwise, of the Borrower or any Subsidiary as the Agent may from time to
time reasonably request;

                    (xii) promptly, and in any event within ten (10) Business Days after the commencement thereof,
notice of the commencement of any action, suit, or proceeding brought or initiated against the
Borrower or any of its Subsidiaries before any court, arbitrator, or Governmental Authority which
could reasonably be expected to have a Material Adverse Effect;

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                    (xiii) without limiting the provisions of Section 5.01(c)(xii) above, promptly and in any
event within ten (10) Business Days after receipt thereof, notice of the receipt of all pleadings,
orders, complaints, indictments, or any other communication alleging liability under, or a
violation of, any applicable Environmental Law where such liability or violation could reasonably
be expected to have a Material Adverse Effect;

                    (xiv) promptly after filing, receipt or becoming aware thereof, copies of any filings or
communications sent to and notices or other communications received by the Borrower or any of its
Subsidiaries from any Governmental Authority relating to any material noncompliance by the Borrower
or any of its Subsidiaries with any laws or with respect to any matter or proceeding the effect of
which could reasonably be expected to have a Material Adverse Effect;

                    (xv) promptly after a Senior Officer of the Borrower becoming aware thereof, notice of any
development or event which has had or could reasonably be expected to have a Material Adverse
Effect;

                    (xvi) commencing on the Closing Date, the Borrower will furnish to the Agent and as soon as
available and in any event within forty-five (45) days after the end of each month thereafter (or
at such other times or with such greater frequency as is reasonably requested by the Agent), a
duly completed Borrowing Base Certificate, setting forth the Borrowing Base as of the last day of
such month, certified by the appropriate authorized Senior Officer; and

                    (xvii) commencing with the Borrower’s fiscal quarter ending March 31, 2007, the Borrower will
furnish to the Agent as soon as available and in any event within thirty (30) days after the end of
each fiscal quarter (or at such other times or with such greater frequency as is reasonably
requested by the Agent), a certificate stating the principal amount of: (a) each loan made by the
Borrower to any Affiliated Borrower or other Affiliate or Subsidiary of the Borrower, (b) each loan
made to the Borrower by any Affiliated Borrower or other Affiliate or Subsidiary of the Borrower,
and (c) each account receivable or account payable of the Borrower to each Affiliated Borrower or
other Affiliate or Subsidiary of the Borrower.

               (d) Working Capital. Maintain Working Capital of at least Eight Million and No/100
Dollars ($8,000,000.00) on and after the Closing Date, and achieve and maintain Working Capital of
at least Twelve Million and No/100 Dollars ($12,000,000.00) on and after the date that is twelve
(12) months after the Substantial Completion Date.

               (e) Net Worth. On the Closing Date, the Borrower’s Net Worth shall be not less than
Thirty-eight Million Three Hundred Eighty-one Thousand Six Hundred Sixty-two and No/100 Dollars
($38,381,662.00). Commencing on December 31, 2006, and continually thereafter, measured at the end
of each fiscal year, the Borrower shall achieve and maintain Net Worth in an amount equal to the
lesser of: (i) the Borrower’s Net Worth at the end of the immediately preceding fiscal year plus
Two Million and No/100 Dollars ($2,000,000.00); or (ii) the Borrower’s Net Worth at the end of the
immediately preceding fiscal year plus the Borrower’s retained earnings at the end of the current
fiscal year.

               (f) Owner’s Equity. To achieve and maintain a minimum Owner’s Equity of 40% at the
end of the first twelve (12) months after the Substantial Completion Date and thereafter.

48

 

               (g) Fixed Charge Coverage Ratio. On December 31, 2006, and as of the last day of each
fiscal year thereafter, have a Fixed Charge Coverage Ratio for any period of twelve months ending
as of the last day of such fiscal year of not less than 1.25 to 1.00.

               (h) [Reserved]

               (i) Landlord and Mortgagee Waivers. Obtain and furnish to the Agent as soon as
available, waivers, acknowledgments and consents, duly executed by each: (i) real property owner,
landlord and mortgagee having an interest in any of the premises leased by the Borrower or in which
any material Collateral of the Borrower is located or to be located (and if no Collateral of the
Borrower is located at a parcel of property not leased by the Borrower, no such waivers,
acknowledgments or consents will be required); and (ii) each third party holding any material
Collateral; all in form and substance reasonably acceptable to the Agent, except as otherwise
agreed to by the Agent.

               (j) Insurance. Maintain insurance with financially sound and reputable insurance
companies in such amounts and covering such risks as are usually carried by entities engaged in
similar businesses and owning similar properties in the same general areas in which the Borrower
operates, including workers’ compensation insurance, property insurance and comprehensive general
liability insurance, directors and officers liability insurance, commercial liability insurance, on
and after the Closing Date business interruption insurance and general commercial property
insurance or such other amounts and risk as approved by the Agent. All such policies (other than
workers’ compensation insurance and directors and officers liability insurance) insuring any
Collateral for the Borrower’s obligations to the Agent or the Banks shall have mortgagee loss
payable clauses or endorsements in form and substance reasonably acceptable to the Agent. Each
insurance policy covering Collateral shall be in compliance with the requirements of the Loan
Documents in all material respects.

               (k) Property Maintenance. Maintain and preserve all of its property and each and
every part and parcel thereof that is necessary to or useful in the proper conduct of its business
in good working order and condition, ordinary wear and tear excepted and except as may be disposed
of in accordance with the terms of the Loan Documents, and make all repairs, replacements, and
renewals thereof as may from time to time be necessary in order to ensure that its properties
remain in good working order and condition, except, in each case, as could not reasonably be
expected to have a Material Adverse Effect. The Borrower agrees that upon the occurrence and
during the continuing existence of an Event of Default, at the Agent’s request, which request may
not be made more than once a year, the Borrower will furnish to the Agent a report on the condition
of the Borrower’s and any Subsidiary’s property prepared by a professional engineer reasonably
satisfactory to the Agent.

               (l) Keeping Books and Records. Maintain and cause each of its Subsidiaries to
maintain adequate books of record and account in which full, true, and correct entries to permit
the preparation of Financial Statements in conformity with GAAP shall be made of all dealings and
transactions in relation to its business and activities.

               (m) Food Security Act Compliance. If the Borrower acquires any Collateral with a fair
market value in excess of $100,000.00 which may have constituted farm products in the possession of
the seller or supplier thereof, the Borrower shall, at its own expense, use commercially reasonable
efforts to take such steps to insure that all liens (except the Liens granted pursuant to the Loan
Documents) in such acquired Collateral are terminated or released, including in the case of such
farm products produced in a state which has established a Central Filing System (as defined in the
Food Security Act), registering with the Secretary of State of such state (or such other party or
office designated by such state) and otherwise take such

49

 

reasonable actions necessary, as
prescribed by the Food Security Act, to purchase farm products free of liens (except the Liens
granted pursuant to the Loan Documents); provided, however, that the Borrower may contest and need
not obtain the release or termination of any lien asserted by any creditor of any seller of such
farm products, so long as it shall be contesting the same by proper proceedings and maintain
appropriate accruals and reserves therefor in accordance with GAAP. Upon the Agent’s request made,
the Borrower agrees to forward to the Agent promptly after receipt copies of all notices of liens
and master lists of Effective Financing Statements delivered to the Borrower pursuant to the Food
Security Act, which notices and/or lists pertain to any of the Collateral, with a fair market value
in excess of $100,000.00. Upon the Agent’s request, the Borrower agrees to provide the Agent with
the names of Persons who supply the Borrower with such farm products and such other information as
the Agent may reasonably request with respect to such Persons.

               (n) Warehouse Receipts. If any warehouse receipt is issued in respect of any portion
of the Collateral with a fair market value in excess of $1,000,000.00, then the Borrower: (i) will
not permit such warehouse receipt or receipts in the nature thereof to be “negotiable” as such term
is used in Article 7 of the UCC; and (ii) if so requested by the Agent, will deliver all such
receipts to the Agent (or a Person designated by the Agent) within five (5) Business Days after the
Borrower’s receipt and from time to time thereafter. If no Event of Default exists, the Agent
agrees to deliver to the Borrower any receipt so held by the Agent upon the Borrower’s request in
connection with such sale or other disposition of the underlying Inventory, if such disposition is
in the ordinary course of the Borrower’s business.

               (o) Management of Borrower. Promptly, and in any event within 10 Business Days,
provide notice to the Agent of any change in its Plant Manager.

               (p) Compliance with Other Agreements. The Borrower will perform in all material
respects all obligations and abide in all material respects by all covenants and agreements
contained in the following agreements: (i) any and all Long Term Marketing Agreements; and (ii)
any other Material Contracts except, in each case, where failure to do so could not reasonably be
expected to have a Material Adverse Effect.

               (q) Additional Assurances. Make, execute and deliver to the Agent such promissory
notes, mortgage, deeds of trust, financing statements, control agreements, instruments, documents
and other agreements as the Agent or its counsel may reasonably request to evidence and secure the
Loans and to perfect its Security Interests as contemplated by the Loan Documents.

               (r) Construction of Project. The Borrower shall:

                    (i) on or before the Closing Date, pay and discharge all claims and liens for labor done and
materials and services furnished in connection with the construction of the Project other than such
claims and liens contested in good faith, and other than claims and liens to be paid pursuant to
the terms of a Construction Contract; provided that the Borrower may diligently contest in good
faith any claim or lien, provided that it does not adversely affect the Borrower’s ability to
obtain title insurance in the manner required by this Agreement. Upon the Agent’s reasonable
request, the Borrower will promptly provide a bond, cash deposit, or other security reasonably
satisfactory to the Agent and reasonably necessary to protect the Agent’s interest and security
should such contest be unsuccessful;

                    (ii) pay the Agent’s reasonable and documented out of pocket costs and expenses incurred in
connection with the making or disbursement of the Loans or in the exercise of any of its rights or
remedies under this Agreement, including but not limited to reasonable and documented out of pocket
costs and expenses relating to title insurance and escrow charges, disbursing agent fees, recording
charges,

50

 

mortgage taxes, deed of trust taxes, and reasonable legal fees and disbursements. The
provisions of this paragraph will survive the termination of this Agreement, and the repayment of
the Loans;

                    (iii) comply in all material respects with the requirements of any commitment or agreement
entered into by the Borrower with any Governmental Authority to assist in the financing of the Real
Property and/or Project and with the terms of all applicable laws, regulations, and requirements
governing such assistance; and

                    (iv) indemnify and hold the Agent harmless from and against all liabilities, claims, damages,
reasonable costs, and reasonable expenses (including but not limited to reasonable legal fees and
disbursements) arising out of or resulting from any defective workmanship or materials occurring in
the construction of the Project. Upon demand by the Agent, the Borrower will defend any action or
proceeding brought against the Agent alleging any defective workmanship or materials, or the Agent
may elect to conduct its own defense, and the Borrower shall reimburse the Agent for the reasonable
and documented out-of-pocket costs of such defense. The provisions of this paragraph will survive
the termination of this Agreement, and the repayment of the Loans.

               (s) Banks’ Reliance. The Borrower acknowledges that the Agent and the Banks are
entering into the transactions contemplated by this Agreement in reliance upon the Borrower’s
identity as a legal entity that is separate from any other US Bio Entity. Therefore, from and
after the date of execution and delivery of this Agreement, the Borrower shall take all reasonable
steps including all steps that the Agent may from time to time reasonably request to maintain the
Borrower’s identity as a separate legal entity and to make it manifest to third parties that the
Borrower is an entity with assets and liabilities distinct from those of any other US Bio Entity,
and not just a division of any US Bio Entity, in each case consistent with past practices. Without
limiting the generality of the foregoing and in addition to the other covenants set forth herein,
the Borrower shall:

                    (i) observe all organizational and governance formalities as a distinct legal entity;

                    (ii) maintain the Borrower’s books and records separate from those of any other US Bio Entity
and otherwise readily identifiable as its own assets rather than assets of any other US Bio Entity;
and

                    (iii) prepare the Borrower’s Financial Statements separately from those of any other US Bio
Entity and insure that any consolidated financial statements of any other US Bio Entity that
include the Borrower have detailed notes clearly stating that the Borrower is a separate legal
entity and that its assets will be available first to satisfy the claims of the creditors of the
Borrower.

               (t) Debt Service Reserve Account. Establish and maintain a Debt Service Reserve
Account, and deposit and maintain the Required Debt Service Reserve Deposit Amount in such account
in accordance with the provisions of Section 2.30.

               (u) Account Control Agreements. Execute and deliver any and all deposit, commodity,
and securities account control agreements the Agent may reasonably request in accordance with the
terms and conditions of the Security Agreement, and take all actions and deliver all documents the
Agent may reasonably request or require to perfect its Lien in any such accounts of the Borrower,
in each case in accordance with the terms and conditions of the Security Agreement.

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               (v) Insurance. In case of any loss covered by any policy of casualty insurance held
as Collateral, the Agent is hereby authorized at its option and without the consent of the Borrower
to settle, adjust and compromise any claim arising out of such policies, and to collect and receive
the proceeds payable therefrom; provided, that the Borrower may itself adjust and collect for any
losses arising out of a single occurrence aggregating not in excess of $500,000.00, or other amount
agreed to by the Agent. Any expense incurred by the Agent in the adjustment and collection of
insurance proceeds (including the cost of any independent appraisal of the loss or damage on behalf
of the Agent) shall be reimbursed to the Agent first out of any proceeds of such policy of
insurance. So long as no Event of Default has occurred and is continuing at the time of releases
of such proceeds (other than as a result of such casualty), the proceeds or any part of any
casualty proceeds shall be released to the Borrower and shall be applied to the restoration or
repair of the Project or to the reduction of the Debt under this Agreement in the inverse order of
maturity, whether due or not, without the application of any prepayment premium, the choice of
application to be solely at the discretion of the Borrower, and upon the occurrence and
continuation of an Event of Default at the sole discretion of the Agent.

               (w) Condemnation. The Borrower shall give the Agent prompt notice of any action,
actual or threatened, in condemnation or eminent domain. The Borrower may in good faith contest
any condemnation or eminent domain action by appropriate legal action or proceedings. Any such
contest shall be prosecuted with due diligence. The Borrower hereby irrevocably agrees that the
Agent may, to the extent of the remaining unpaid Debt, receive the proceeds of any award, payment
or claim for damages for all or any part of the Project taken or damaged, whether temporary or
permanent, under the power of eminent domain or condemnation, and authorizes the Agent to intervene
in any such action in the name of the Borrower and to collect and receive from the condemning
authorities and give proper receipts and acquaintances for such proceeds. Any expenses incurred by
the Agent in intervening in such action or collecting such proceeds shall be reimbursed to the
Agent first out of the proceeds. So long as no Event of Default has occurred and is continuing,
the proceeds or any part thereof shall be applied upon or in reduction of the Debt under this
Agreement in the inverse order of maturity, whether due or not, without the application of any
prepayment premium, or to the restoration or repair of the Project, the choice of application to be
solely at the discretion of the Borrower, and upon the occurrence and continuation of an Event of
Default at the sole discretion of the Agent.

               (x) Restoration of Deeded Premises After Loss. Should any insurance or condemnation
proceeds be applied to the restoration or repair of the Project the restoration or repair shall be
done under the supervision of an engineer reasonably acceptable to the Agent, pursuant to plans and
specifications approved by the Agent, and in accordance in all material respects with all
applicable building laws, regulations and ordinances, including, but not limited to, the
Accessibility Guidelines set forth in the Americans with Disabilities Act. In such case, the
proceeds shall be held by the Agent for such purposes and will from time to time be disbursed by
the Agent to defray the costs of such restoration
or repair under such safeguards and controls as the Agent may reasonably require to assure
completion in accordance with the approved plans and specifications and free of Liens other than
Permitted Liens. So long as no Event of Default has occurred and is continuing, any surplus which
may remain after payment of all costs of restoration or repair may, at Borrower’s option, be
applied to the reduction of the Debt under this Agreement in the inverse order of maturity, without
application of any prepayment premium, or shall be returned to the Borrower as its interest may
appear, the choice of application to be solely at the discretion of the Borrower, and upon the
occurrence and continuation of an Event of Default at the sole discretion of the Agent.

     Section 5.02. Negative Covenants. So long as any of the Loan Obligations (other than
contingent indemnification obligations not then due and payable) remain unpaid or the Banks shall
have any commitment hereunder, the Borrower will not, without the prior written consent of the
Agent:

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               (a) Liens, etc. Create or suffer to exist, or permit any of its Subsidiaries to
create or suffer to exist, any Lien upon any of its properties, whether now owned or hereafter
acquired to secure any Debt of any Person, other than the following (collectively, “Permitted
Liens”):

                    (i) Liens described on Schedule 5.02(a) hereto and renewals, refinancings, refundings and
extensions of the same on substantially the same terms and conditions so long as the principal
amount of the debt is not increased (other than as a result of payment in kind interest, accrued
interest, premium or expenses related thereto);

                    (ii) Liens which are subject to an intercreditor and subordination agreement in form and
substance reasonably acceptable to the Agent;

                    (iii) Liens of the Agent for the benefit of itself and the Banks, and Liens securing other
Debt permitted by Section 5.02(e)(i) pari passu with Liens created under the Loan Documents,
provided that such Debt is subject to an intercreditor agreement in a form and substance reasonably
acceptable to the Agent;

                    (iv) Liens (other than Liens relating to environmental liabilities or ERISA) for taxes,
assessments, levies or other governmental charges of any Governmental Authority that are not more
than sixty (60) days overdue or which are being contested in good faith by appropriate proceedings
diligently pursued and for which adequate reserves have been established;

                    (v) Liens of warehousemen, carriers, mechanics and materialmen (subject to Sections 5.01(i)
and 5.01(r)(ix)), and landlords or other similar statutory or common law Liens securing obligations
that are not more than ninety (90) days overdue or remain payable without penalty and are incurred
in the ordinary course of business or which are being contested in good faith by appropriate
proceedings diligently pursued and for which adequate reserves have been established in accordance
with generally accepted accounting principles;

                    (vi) Liens incurred or deposits or pledges made in connection with workmen’s compensation or
unemployment insurance, or other social security programs or to secure the performance of tenders,
leases, statutory obligations, surety, customs, performance and appeal bonds, customer deposits,
bids or contracts and other obligations of a similar nature (other than for repayment of Debt);

                    (vii) any attachment or judgment Lien provided that such Liens secure claims not otherwise
constituting an Event of Default;

                    (viii) Liens arising from filing UCC financing statements regarding leases not prohibited by
this Agreement;

                    (ix) Liens of a collecting bank arising in the ordinary course of business under Section 4-208
of the Uniform Commercial Code in effect in the relevant jurisdiction and covering only the items
being collected upon;

                    (x) any real estate easements or any easements, rights of way, restrictions, subdivisions,
parcelizations, zoning ordinances, reservations, covenants and other similar charges, minor defects
or irregularities in title and other similar encumbrances relating to the property of the Borrower
that do not materially impair its use or the value of the property subject thereto;

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                    (xi) Liens for purchase money security interest in equipment and vehicles or any other
property acquired or held in the ordinary course of business not to exceed an aggregate amount of
Five Hundred Thousand and No/100 Dollars ($500,000.00), at any time outstanding;

                    (xii) Liens arising under capital leases to the extent that such Liens attach only to the
property that is the subject of such capital leases and do not exceed an aggregate amount of One
Hundred Thousand and No/100 Dollars ($100,000.00), at any time outstanding;

                    (xiii) any Lien existing on any property or asset prior to the acquisition thereof by the
Borrower or any of its Subsidiaries or existing on any property or asset of any Person that becomes
a Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary, provided
that (i) such Lien is not created in contemplation of or in connection with such acquisition or
such Person becoming a Subsidiary, (ii) such Lien shall not apply to any other property or assets
of the Borrower or any Subsidiary, (iii) such Lien shall secure only those obligations which it
secures on the date of such acquisition or the date such Person becomes a Subsidiary, as the case
may be, and extensions, renewals and replacements thereof;

                    (xiv) Liens of sellers of goods to the Borrower or any Subsidiary arising under Article 2 of
the Uniform Commercial Code or similar provisions of applicable law in the ordinary course of
business;

                    (xv) any interest or title of a lessor, licensor or sublessor under any lease, license or
sublease entered into by the Borrower or any Subsidiary in the ordinary course of its business or
any leases or subleases granted to others not interfering in any material respect with the business
of the Borrower;

                    (xvi) licenses of patents, trademarks, copyrights or other intellectual property rights
granted in the ordinary course of business;

                    (xvii) Liens consisting of an agreement to sell, transfer or dispose of any asset (to the
extent such sale, transfer or disposition is permitted by the Loan Documents);

                    (xviii) Liens arising solely by virtue of any statutory or common law provisions relating to
banker’s liens, rights of offset or similar right and remedies as to deposit, securities, and
commodities accounts or other funds maintained with a creditor depositary institution or a
securities or commodities intermediary; provided, that (i) all such Liens existing in connection
with any deposit, security or commodities account that is required to be subject to a control
agreement under the terms of the Security Agreement shall be limited to those Liens agreed to by
the Agent under such control agreement and (ii) all such Liens in connection with any deposit,
security or commodities account that is not so required to be subject to a control agreement shall
attach only to the funds and assets credited to such accounts;

                    (xix) Liens contemplated by Section 2.23; and

                    (xx) additional Liens so long as the aggregate principal amount of obligations secured thereby
does not exceed Five Hundred Thousand and No/100 Dollars ($500,000.00).

               (b) Distributions, etc. Declare or pay any dividends, purchase or otherwise acquire
for value any of its membership interests or units now or hereafter outstanding, or make any
distribution of assets to its interest holders, members or general partners as such, or permit any
Subsidiary to purchase or otherwise acquire for value any stock, membership interest or partnership
interest of the Borrower, provided, however,

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the Borrower and the Subsidiaries may: (i) declare and pay dividends and distributions payable in membership interests or units or equity
interests (including options or warrants), (ii) purchase or otherwise acquire shares of the
membership interests or units or equity interests of the Borrower or the Subsidiaries with the
proceeds received from the issuance of new membership interests or units or equity interests
(including options or warrants), (iii) the Borrower may declare and pay aggregate cash dividends
and distributions during such fiscal year in an amount not to exceed the amount necessary for the
member of the Borrower to pay when due (including any payment of estimated taxes) Income Taxes on
such member’s allocable share of the taxable income of the Borrower for such taxable year or fiscal
year, as applicable (“Tax Distributions”), (iv) purchase, redeem or otherwise acquire membership
interests or units of the Borrower or equity interests (including options or warrants) of the
Subsidiaries or declare and pay dividends or distributions in an amount not to exceed, in the
aggregate, forty percent (40%) of the cumulative Net Income of the Borrower and its Subsidiaries
after the date hereof minus the cumulative amount of all such payments made pursuant to this
Section 5.02(b)(iv) other than the Refunding Dividend prior to the date of the payment then being
made (“Allowed Distributions”), (v) pay dividends or distributions which are immediately reinvested
in the Borrower (“Reinvestment Distributions”); (vi) complete the transactions reflected on
Schedule 4.01(a), (vii) after payment of the Excess Cash Flow Payment required by Section 2.25, if
any, pay additional distributions in an amount equal to the amount of Excess Cash Flow not
required to be paid to the Banks pursuant to Section 2.25 and otherwise in an amount reasonably
acceptable to the Agent (“Excess Distributions”), and (viii) purchase the membership interests of
the Borrower or options or warrants with respect thereto from officers, directors or employees of
the Borrower upon the death, disability or termination of employment of such officer, director or
employee. Notwithstanding anything to the contrary contained in this Section 5.02(b), the Borrower
may pay a Distribution to US Bio Energy Corporation in an amount not to exceed $90,000,000.00 with
the proceeds of the Refunding Advance (the “Refunding Dividend”).

               (c) Capital Expenditures. Make Capital Expenditures in fixed assets in an aggregate
amount in excess of Two Million and No/100 Dollars ($2,000,000.00) during any fiscal year during
the term of this Agreement.

               (d) Consolidation, Merger, Dissolution, Etc. Merge or consolidate with any other
Person or permit any other Person to merge or consolidate with or into the Borrower or any
Subsidiary, provided that (i) any such Person may merge or consolidate with or into the Borrower or
any Subsidiary if the surviving entity complies with the requirements of Section 5.02(h) and (ii)
any Subsidiary may sell, lease, assign, convey, transfer or otherwise dispose of any or all of its
assets (upon voluntary liquidation or otherwise) to the Borrower or any Subsidiary.

               (e) Indebtedness, Etc. Create, incur, assume or suffer to exist any Debt except:

                    (i) Debt of the Borrower evidenced by the Loan Documents, and to the extent the
Revolving Line of Credit has expired and not been renewed, Debt in an aggregate principal amount
not to exceed $10,000,000 at any time outstanding; provided that such Debt is subject to an
intercreditor agreement in a form and substance reasonably acceptable to the Agent and renewals and
refinancings thereof;

                    (ii) trade accounts payable and accrued liabilities arising in the ordinary course
of the Borrower’s business;

                    (iii) subordinated debt subject to subordination terms reasonably satisfactory to
the Agent;

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                    (iv) Debt of the Borrower described on Schedule 5.02(e), and any refinancings,
refundings and extensions of the same on substantially the same terms and conditions so long as the
principal amount of the debt is not increased (other than as a result of payment in kind interest,
accrued interest, premium or expenses in connection therewith);

                    (v) contracts or agreements other than Material Contracts arising in the ordinary
course of the Borrower’s business;

                    (vi) Debt of the Borrower and the Subsidiaries not to exceed $500,000.00 in
aggregate principal amount at any time outstanding constituting obligations under capital leases;

                    (vii) Debt of the Borrower and the Subsidiaries incurred after the Closing Date
secured by purchase money Liens permitted under Section 5.02(a) provided that the aggregate
principal amount thereof does not exceed $500,000.00 at any time outstanding;

                    (viii) Debt arising from loans, payables or advances made by a US Bio Entity to the
Borrower or the Subsidiaries;

                    (ix) Debt which finances workers’ compensation, health, disability or life insurance
or finances other employee benefits or property, casualty or liability insurance, or self
insurance, in each case incurred in the ordinary course of business;

                    (x) Debt of any Person that becomes a Subsidiary after the date hereof and that
complies with Section 5.02(h) hereof and extensions, renewals, refinancings and replacements of any
such Debt, provided that such Debt exists at the time such Person becomes a Subsidiary and is not
created in contemplation of or in connection with such Person becoming a Subsidiary;

                    (xi) Debt arising from the honoring by a bank of a check or similar instrument drawn
against insufficient funds in the ordinary course of business, so long as such Debt is extinguished
within five (5) Business Days after its incurrence;

                    (xii) Debt of the Borrower to any Subsidiary and of any Subsidiary to the Borrower
or to another Subsidiary;

                    (xiii) guarantee obligations incurred by the Borrower of obligations of any of the
Subsidiaries not prohibited to be incurred under this Agreement;

                    (xiv) secured Debt with a principal amount not to exceed $500,000.00 at any time
outstanding; and

                    (xv) other Debt of the Borrower and the Subsidiaries with a principal amount not to
exceed $100,000.00 in the aggregate outstanding at any time.

               (f) Organization; Name. Change its jurisdiction of organization or name without prior
written notice to the Agent.

               (g) Loans, Guaranties, Etc. Except as permitted by Section 5.02(e), make any loans or
advances to (whether in cash, in-kind, or otherwise) any Person, or directly or indirectly guaranty
or otherwise assure a creditor against loss in respect of any Debt (contingent or otherwise) of any
other Person

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other than loans or advances made by the Borrower or any of its Subsidiaries to any US
Bio Entity that is a Subsidiary of the Guarantor.

               (h) Subsidiaries. Form or otherwise acquire any Subsidiary, or acquire substantially
all of the assets of or acquire substantially all of the equity or ownership interests in any
Person, unless such Subsidiary or Person executes and delivers to the Agent: (i) a guaranty of all
of the Loan Obligations, in form and substance acceptable to the Agent in its sole discretion; (ii)
a security agreement in a form substantially similar to the Security Agreement; and (iii) such
other documents and amendments to this Agreement and the other Loan Documents as the Agent shall
reasonably require to assure that the Agent for the benefit of the Banks has a perfected Security
Interest in substantially all of the assets so acquired or owned by such Subsidiary.

               (i) Transfer of Assets. Sell, lease, assign, transfer, or otherwise voluntarily
dispose of any of its assets, or permit any Subsidiary to sell, lease, assign, transfer, or
otherwise voluntarily dispose of any of their assets except:

                    (i) dispositions of Inventory in the ordinary course of business;

                    (ii) dispositions of: (A) uneconomical, surplus, obsolete, worn out, replaced or
excess equipment; (B) equipment or real property not necessary for the operation of its business;
or (C) equipment, materials or real property which is replaced with property of equivalent or
greater value as the property which is disposed;

                    (iii) the Borrower and the Subsidiaries may use cash and sell cash equivalents other
than Accounts in the ordinary course of business;

                    (iv) the Borrower and the Subsidiaries may sell, transfer or otherwise dispose of
assets which sales, transfers or dispositions are not otherwise specifically permitted by this
Section 5.02(i), provided that such sale is for fair market value and the aggregate fair market
value of all assets so sold does not exceed $50,000.00 in any fiscal year;

                    (v) transactions otherwise permitted by Sections 5.02(a) or 5.02(b) to the extent
permitted thereunder;

                    (vi) dispositions resulting from any casualty or other insured damage to, or any
taking under power of eminent domain or by condemnation or similar proceeding of, any property or
asset of the Borrower;

                    (vii) the Borrower may surrender or waive contractual rights or settle, release or
surrender any contract, test or other litigation claims in the ordinary course of business;

                    (viii) the Borrower may abandon intellectual property or other propriety rights that
are, in its reasonable business judgment, of no material value and no longer practicable or useful
in the conduct of its business;

                    (ix) the license, either as licensee or licensor, of intellectual
property assets to or from other Persons in the ordinary course of
business.

                    (x) sales, leases and other transfers and dispositions of assets among Subsidiaries;
and

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                    (xi) sales, leases, exchanges and other transfers and dispositions of assets to
other US Bio Entities of parts and equipment.

               (j) Lines of Business. Engage in any line or lines of business activity other than
those incidental or reasonably related to or entered into in connection with the production and
sale of ethanol and related by-products, including DGS, the ownership of the equity interests of
the Subsidiaries and the performance of the Loan Documents and any transactions that the Borrower
is permitted to enter into or consummate under the Loan Documents, including the making of loans to
any US Bio Entity that is a Subsidiary of the Guarantor.

               (k) Transactions with Affiliates. Enter into or permit to exist any transaction
(including the purchase, sale, lease or exchange of any property or the rendering of any service)
with any Affiliate of the Borrower (other than any Subsidiary of the Borrower, the Guarantor or any
Affiliated Borrower), except (i) transactions listed on Schedule 5.02(k), (ii) transactions upon
fair and reasonable terms which are no less favorable to the Borrower or such
Subsidiary than would be obtained in a comparable arm’s length transaction with a person or entity
that is not an Affiliate, (iii) payment of compensation (including employment and severance
arrangements) to members, governors, directors, managers, officers, employees, consultants and
agents for services actually rendered in their capacities as members, governors, directors,
managers, officers, employees, consultants and agents, provided that such compensation is
reasonable and comparable with compensation paid by companies of like nature and similarly situated
and officer’s and director’s indemnification and insurance, (iv) transactions expressly permitted
by, and subject to the terms of, this Agreement (including, without limitation, Sections 5.02(b),
5.02(e), 5.02(i), 5.02(g) and 5.02(l) hereof), (v) sales of Inventory to Provista Renewable Fuels
Marketing, LLC and United Bio Energy Ingredients, LLC, (vi) administrative services provided by the
Guarantor and reimbursements therefor, and (vii) payment on loans made to any Subsidiary, Affiliate
or Affiliated Borrower, which loans are permitted pursuant to the provisions of this Agreement.
Notwithstanding the foregoing, no payments may be made with respect to any items set forth in
clause (vii) upon the occurrence and during the continuation of an Event of Default.

               (l) Management Fees and Compensation. Pay any management, consulting or other similar
fees to any Person, except legal or consulting or similar fees paid to Persons for services
actually rendered and in amounts typically paid by entities engaged in the Borrower’s or such
Subsidiary’s business.

               (m) Amendments to Organizational Documents. Amend its articles of organization,
operating agreement, management agreement, or any other organizational documents in any respect
that would materially impair its ability to comply with the terms or provisions of any of the Loan
Documents, including Section 5.01(s) of this Agreement.

               (n) Payments to US Bio Entities. If an Event of Default has occurred and is
continuing, make any payment to any US Bio Entity on account of any Debt specified in Section
5.02(e)(viii)

ARTICLE VI

EVENTS OF DEFAULT AND REMEDIES

     Section 6.01. Events of Default. Each of the following events shall constitute an
“Event of Default”:

               (a) The Borrower shall fail to pay (i) when due and payable any principal provided for or
required under this Agreement and/or the Notes or (ii) within five (5) Business Days after the same
shall become due and payable, any interest, fees or other amounts provided for or required
hereunder or under the

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other Loan Documents or to make any deposit of funds required under Sections
2.02(g), 2.30, 5.01(r)(iv), and 5.01(t) of this Agreement, when due; or

               (b) Any representation or warranty made by the Borrower in any Loan Document or Guarantor in
the Guaranty shall prove to have been incorrect in any material respect on the date made or deemed
made; or

               (c) The Borrower shall fail to perform or observe any term, covenant or agreement contained in
Sections 5.01(d), (e), (f), (g) or (t) or take any action as prohibited by Section 5.02; or

               (d) The Borrower shall fail to deliver the Financial Statements or Compliance Certificate
under Sections 5.01(c)(i) or (ii) within five (5) days of the date due; or

               (e) The Borrower shall fail to perform or observe any term, covenant or agreement contained in
any Loan Document or the Guarantor shall fail to perform or observe any term, covenant or agreement
contained in the Guaranty (other than those listed in clauses (a) through (d) of this Section 6.01
and other than Section 5.01(o)) to be performed or observed by it and any such failure shall remain
unremedied for thirty (30) days after written notice thereof shall have been given to the Borrower
or Guarantor, as applicable, by the Agent, provided that no Event of Default shall be deemed to
exist if, within said thirty (30) day period, the Borrower has commenced appropriate action to
remedy such failure and shall diligently and continuously pursue such action until such cure is
completed, unless such cure is or cannot be completed within thirty (30) days after written notice
shall have been given; or

               (f) The Borrower shall fail to pay any other Debt of the Borrower having an aggregate
principal amount in excess of Five Hundred Thousand and No/100 Dollars ($500,000.00) (either in any
individual case or in the aggregate), excluding Debt evidenced by the Notes and excluding Ordinary
Trade Payable Disputes, or any interest or premium thereon, when due (whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise) and such failure shall continue
after the applicable grace or cure period, if any, specified in the agreement or instrument
relating to such Debt; or any other default under any agreement or instrument relating to any such
Debt, or any other event, shall occur and shall continue after the applicable grace or cure period,
if any, specified in such agreement or instrument, if the effect of such default or event is to
accelerate, or to permit the acceleration of, the maturity of such Debt (excluding Ordinary Trade
Payable Disputes); or any such Debt shall be declared to be due and payable, or required to be
prepaid (other than by a regularly scheduled required prepayment or prepayment required to be paid
due to voluntary sales or transfer or condemnation of assets securing such Debt), prior to the
stated maturity thereof (excluding Ordinary Trade Payable Disputes); or

               (g) The Borrower (i) shall generally not pay its debts as such debts become due, or shall
admit in writing its inability to pay its debts generally, or (ii) shall make a general assignment
for the benefit of creditors; or any proceeding shall be instituted by or against the Borrower
seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up,
reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts
under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking
the entry of an order for relief or the appointment of a receiver, trustee or other similar
official for it or for any substantial part of its property, and, in the case of any such
proceeding instituted against it (but not instituted by it) either such proceeding shall remain
undismissed or unstayed for a period of thirty (30) days or any of the actions sought in such
proceeding (including the entry of an order for relief against it or the appointment of a receiver,
trustee, custodian or other similar official for it or for any substantial part of its property)
shall occur; or the Borrower shall take any corporate action to authorize any of the actions set
forth above in clause (ii) of this subsection; or

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               (h) Any one or more judgment(s) or order(s) for the payment of money in excess of Five Hundred
Thousand and No/100 Dollars ($500,000.00), to the extent not paid or covered by insurance or an
indemnity, in the aggregate shall be rendered against the Borrower and either: (i) enforcement
proceedings shall have been commenced by any creditor upon such judgment or order; or (ii) there
shall be any period of thirty (30) consecutive days during which a stay of enforcement of such
judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or

               (i) Any Loan Document shall for any reason cease to be valid and binding on the Borrower or
the Borrower shall so state in writing; or

               (j) The Loan Documents shall for any reason, except to the extent permitted by the terms
thereof, cease to create a valid lien, encumbrance or security interest in any material portion of
the Collateral purported to be covered thereby; or

               (k) The termination of any Long Term Marketing Agreement prior to its stated expiration date,
unless such Long Term Marketing Agreement is replaced by another Long Term Marketing Agreement or
other marketing agreement reasonably acceptable to the Agent, within sixty (60) days of the
termination of such Long Term Marketing Agreement; or

               (l) The Borrower shall dissolve or merge other than as permitted under Section 5.02(d) without
the prior written consent of the Agent; or

               (m) [Reserved];

               (n) [Reserved]; or

               (o) The Guaranty shall cease to be in full force and effect or shall be revoked or declared
null and void by the Guarantor, or the validity or enforceability thereof shall be contested by the
Guarantor, or the Guarantor shall deny any further liability or obligations thereunder; or

               (p) The loss, suspension or revocation of, or failure to renew, any franchise, license,
certificate, permit, authorization, approval or the like now held or hereafter acquired by the
Borrower or any of its Subsidiaries, if such loss, suspension, revocation or failure to renew could
reasonably be expected to have a Material Adverse Effect; or

               (q) [Reserved]; or

               (r) Any Material Contract shall be terminated, changed, amended or restated, which
termination, change, amendment or restatement could reasonably be expected to have a Materially
Adverse Effect, without the Agent’s prior consent.

     Section 6.02. Remedies. Upon the occurrence and during the continuance of an Event
of Default, the Agent:

               (a) may accelerate the due date of the unpaid principal balance of the Loans, all accrued but
unpaid interest thereon and all other amounts payable under this Agreement and the other Loan
Documents making such amounts immediately due and payable, whereupon the Notes, all such interest
and all such amounts shall become and be forthwith immediately due and payable, without
presentment, notice of intent to accelerate or notice of acceleration, demand, protest or further
notice of any kind, all of which are

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hereby expressly waived by the Borrower; provided, however,
that in the event of an actual or deemed entry of an order for relief with respect to the Borrower
under the Federal Bankruptcy Code, the Loans, all such interest and all such amounts shall
automatically become due and payable, without presentment, demand, protest or any notice of any
kind, all of which are hereby expressly waived by the Borrower;

               (b) may withhold or direct the Agent to withhold any one or more Advances in its discretion,
and terminate the Banks’ obligations, if any, under this Agreement to make any Advances whereupon
the commitment and obligations of the Banks to extend credit or to make Advances hereunder shall
terminate, and no disbursement of Loan funds by the Agent will cure any default of the Borrower,
unless the Required Banks agrees otherwise in writing;

               (c) may, by notice to the Borrower, obtain the appointment of a receiver to take possession of
all Collateral of the Borrower, including all personal property, including all fixtures and
equipment leased, occupied or used by the Borrower, provided that, with respect to Collateral
consisting of Intellectual Property which is licensed to the Borrower, only to the extent of the
Borrower’s rights therein and to the extent permitted by the various license or other agreements
relating thereto. The Borrower hereby irrevocably consents to the appointment of such receiver and
agrees to cooperate and assist any such receiver to facilitate the transfer of possession of the
Collateral to such receiver and to provide such receiver access to all books, records, information
and documents as requested by such receiver;

               (d) may, by notice to the Borrower, require the Borrower to pledge to the Agent as security
for the Loan Obligations an amount in immediately available funds equal to the then outstanding
Letter of Credit Liabilities, such funds to be held in an interest bearing cash collateral account
at the Agent without any right of withdrawal by the Borrower; provided, however, that in the event
of an actual or deemed entry of an order for relief with respect to the Borrower or any of its
subsidiaries under the Federal Bankruptcy Code, the Borrower shall, without notice, pledge to the
Agent as security for the Loan Obligations an amount in immediately available funds equal to the
then outstanding Letter of Credit Liabilities, such funds to be held in such an interest bearing
cash collateral account at the Agent; and

               (e) may exercise all other rights and remedies afforded to the Agent under the Loan Documents
or by applicable law or equity.

     Section 6.03. Remedies Cumulative. Each and every power or remedy herein specifically
given shall be in addition to every other power or remedy, existing or implied, given now or
hereafter existing at law or in equity, and
each and every power and remedy herein specifically given or otherwise so existing may be exercised
from time to time and as often and in such order as may be deemed expedient by the Agent, and the
exercise or the beginning of the exercise of one power or remedy shall not be deemed a waiver of
the right to exercise at the same time or thereafter any other power or remedy. No delay or
omission of the Agent in the exercise of any right or power accruing hereunder shall impair any
such right or power or be construed to be a waiver of any default or acquiescence therein.

ARTICLE VII

THE AGENT

     Section 7.01. Authorization and Action. Each Bank hereby appoints and authorizes the
Agent to take such action as agent on its behalf and on behalf of each of its Affiliates who are
owed Obligations (each such Affiliate by acceptance of the benefits of the Loan Documents hereby
ratifying such appointment) and to exercise such powers under this Agreement as are delegated to
the Agent by the terms hereof, together with such powers as are reasonably incidental thereto. As
to any matters not expressly provided for by this

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Agreement (including enforcement or collection of
the Notes), the Agent shall not be required to exercise any discretion or take any action, but
shall be required to act or to refrain from acting (and shall be fully protected in so acting or
refraining from acting) upon the instructions of the Required Banks; provided, however, that the
Agent shall not be required to take any action which exposes the Agent to personal liability or
which is contrary to this Agreement or applicable law.

     Section 7.02. Duties and Powers of Agent.

               (a) The Agent shall (i) make such demands and give such notices under the Loan Documents as
the Required Banks shall request, (ii) take (or refrain from taking) such action to enforce the
Loan Documents and to foreclose or otherwise realize upon, collect or dispose of the Collateral, or
any portion thereof, at such times, in such order and otherwise in such matter as may be directed
by the Required Banks (including matters relating to (A) the amount of the Loan Obligations bid as
a credit on account of the purchase price of the Collateral and (B) the adoption and implementation
of post-foreclosure or post-realization plans of disposition with respect to any of the Collateral
foreclosed or otherwise realized upon), and (iii) take such other actions under this Agreement or
the Loan Documents or otherwise (including the amending of this Agreement or the Loan Documents as
contemplated by and in accordance with the provisions of Section 8.01 hereof) upon direction of the
Required Banks. Any property taken or held by the Agent, in its capacity as such, by foreclosure
or otherwise, shall be held by it pursuant to this Agreement.

               (b) The Agent shall not take, and shall be fully justified in failing or refusing to take, any
action under this Agreement or the Loan Documents or otherwise unless it shall have first received
such advice or concurrence of the Required Banks.

               (c) Any action taken or failure to act pursuant to the direction of the Required Banks shall
be binding upon all of the Banks and all future holders of the Loan Obligations.

               (d) The obligations of the Agent hereunder are only those expressly set forth herein and in
the Loan Documents. Without limiting the generality of the foregoing, the Agent shall not be
required to take any action with respect to any Event of Default or Default, except as expressly
provided in this Agreement. The Agent shall not be deemed to have knowledge or notice of the
occurrence of an Event of Default or Default, unless the Agent has received written notice from a
Bank or the Borrower describing such default or Event of Default and stating that such notice is a
notice of default. In the event the Agent receives such a notice, the Agent shall give notice
thereof to the Banks. The Agent shall take such action under the Loan Documents with respect to
such Default or Event of Default as shall be directed by the Required Banks.

     Section 7.03. Obligations of Agent. Neither the Agent nor any of its directors,
officers, agents, or employees shall be liable for any action taken or omitted to be taken by it or
them under or in connection with this Agreement except for its or their own gross negligence or
willful misconduct. Without limitation of the generality of the foregoing, the Agent (i) may treat
the Banks as the parties entitled to distributions hereunder unless and until the Agent
receives written notice and evidence satisfactory to it to the contrary, (ii) may consult with
legal counsel, independent public accountants and other experts selected by it and shall not be
liable for any action taken or omitted to be taken in good faith by it in accordance with the
advice of such counsel, accountants or experts, (iii) shall not by reason of any Loan Document be a
trustee or fiduciary for any Bank, and (iv) shall incur no liability under or in respect of this
Agreement by acting upon any notice, consent, certificate or other instrument or writing (which may
be by telegram, cable, telex or facsimile) believed by it in good faith to be genuine and signed or
sent by the proper party or parties or by acting upon any representation or warranty of the
Borrower made or deemed to be made hereunder. Further, the Agent (A) makes no warranty or
representation to any Bank and shall not be responsible to any Bank for the

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accuracy or
completeness of any statements, warranties or representations (whether written or oral) made by the
Borrower in or in connection with this Agreement, (B) shall not have any duty to ascertain or to
inquire as to the performance or observance of any of the terms, covenants or conditions of this
Agreement on the part of the Borrower or to inspect the property (including the books and records)
of the Borrower, and (C) shall not be responsible to any Bank for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement or any other
instrument or document furnished pursuant hereto with respect to any other Person party hereto or
thereto.

     Section 7.04. Agent and Affiliates. With respect to its Commitment, the Advances made
by the Agent and the Notes issued to it, the Agent shall have the same rights and powers under this
Agreement as the other Banks and may exercise the same as though it were not the Agent; and the
term “Bank” or “Banks” shall, unless otherwise expressly indicated, include the Agent in its
capacity as a Bank. AgStar and its Affiliates may accept deposits from, lend money to, act as
trustee under indentures of, and generally engage in any kind of business with, the Borrower, all
as if AgStar were not the Agent hereunder and without any duty to account therefor to the Banks.

     Section 7.05. Bank Credit Decision. It is understood and agreed by each Bank that it
has been, and will continue to be, solely responsible for making its own independent appraisal of
and investigations into the financial condition, creditworthiness, condition, affairs, status and
nature of the Borrower and the Collateral. Accordingly, each Bank confirms to the Agent that such
Bank has not relied, and will not hereafter rely, on the Agent (i) to check or inquire on its
behalf into the adequacy, accuracy or completeness of any information provided by the Borrower
under or in connection with this Agreement, the Loan Documents or the transactions herein or
therein contemplated (whether or not such information has been or is hereafter distributed to such
Bank by the Agent), (ii) to assess or keep under review on its behalf the financial condition,
creditworthiness, condition, affairs, status or nature of the Borrower or any Collateral provided
to secure the Obligations of the Borrower under the Loan Documents, or (iii) to obtain, verify or
record information that identifies the Borrower in accordance with the USA PATRIOT Act (Title III
of Pub Law No. 107-56). Each Bank acknowledges that a copy of each of the Loan Documents has been
made available to it and to its individual legal counsel for review and such Bank acknowledges that
it is satisfied with the form and substance of the Loan Documents, and is not relying upon advice
or recommendations of the Agent or the Agent’s counsel.

     Section 7.06. Indemnification. The Banks agree to indemnify the Agent (to the extent
not reimbursed by the Borrower), ratably according to their Pro Rata Shares, from and against any
and all liabilities, obligations, losses, damages, penalties, actions, judgment, suits, costs,
expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or
asserted against the Agent in any way relating to or arising out of the Loan Documents or the
Obligations or any action taken or omitted by the Agent under this Agreement, provided that no Bank
shall be liable for any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting from the Agent’s gross
negligence or willful misconduct. Without limiting the generality of the foregoing, each Bank
agrees to reimburse the Agent promptly upon demand for any reasonable out-of-pocket expenses
(including reasonable counsel fees) incurred by the Agent in connection with the preservation of
any rights of the Agent or the Banks under, or the enforcement of, or legal advice in respect of
rights or responsibilities under the Loan Documents to the extent that the Agent is not reimbursed
for such expenses by the Borrower.

     Section 7.07. Successor Agent. The Agent may resign at any time by giving written
notice thereof to the Banks and the Borrower. The Banks may appoint one of the Banks as a
successor Agent; provided that, if no successor Agent shall have been appointed by the Banks, and
shall have accepted such appointment, within thirty (30) days after the retiring Agent’s having
given notice of resignation, then the retiring Agent

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may, on behalf of the Banks, appoint a
successor Agent, which shall be either a Bank or a bank reasonably acceptable to the Borrower,
organized under the laws of the United States or of any state thereof, or any affiliate of such
bank, and having a combined capital and surplus of at least Five Hundred Million and No/100 Dollars
($500,000,000.00); provided, however, that any successor Agent, any sub Agent and any other person
designated to receive payments under any Loan Document from the Borrower for the benefit of the
Agent or any Bank shall be a “U.S. Person” and a “Financial Institution” as such terms are defined
in Section 1.1441-1 of the Treasury Regulations. Upon the acceptance of any appointment as Agent
hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become vested
with all the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent
shall be discharged from its duties and obligations under this Agreement. After any retiring
Agent’s resignation hereunder as Agent, the provision of this Article VII shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was Agent under this
Agreement.

     Section 7.08. Exchange of Information. Each Bank and the Agent shall freely exchange
with the other Banks and/or Agent any information relating to the condition, financial or
otherwise, of the Borrower, and the Borrower hereby consents to any and all prior, present or
future such exchanges.

     Section 7.09. Benefit of the Banks Only. The terms and provisions of this Article VII
are for the sole and exclusive benefit of the Agent and the Banks, and not for the benefit of the
Borrower.

     Section 7.10. Authorized Actions. The Agent is hereby irrevocably authorized by the
Banks, without any further action by any Bank, to release the Agent’s liens in Collateral: (i) if
such Collateral is permitted to be sold or otherwise disposed of under Section 5.02(i); and (ii)
upon termination of the Commitments, collateralization of all outstanding Letters of Credit and
payment and satisfaction of all other non-contingent obligations of the Borrower under the Loan
Documents.

ARTICLE VIII

MISCELLANEOUS

     Section 8.01. Amendments, Etc. Except as otherwise provided herein or in any other
Loan Document, no amendment or waiver of any provision of any Loan Document to which the Borrower
is a party, nor any consent to any departure by the Borrower therefrom, shall in any event be
effective unless the same shall be agreed or consented to by the Required Banks and the Borrower,
and each such waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided that no amendment, waiver, or consent shall, without the
consent of the Borrower and each Bank directly affected thereby, do any of the following: (i)
except as provided in Section 2.13, increase the Commitment of such Bank; (ii) reduce the amount
owed to such Bank or reduce the rate of interest thereon payable to such Bank, or reduce any fees
payable to such Bank hereunder; (iii) extend or postpone the scheduled date of payment of any
amount owed to such Bank under any Loan Document, or waive or excuse the payment thereof (but
specifically excluding any amendment, modification, termination or waiver of the prepayment
provisions) (provided that the Required Banks may suspend or reduce the Default Rate once it is
imposed under Section 2.14); (iv) reduce the percentages specified in the definitions of “Required
Banks” or “Pro Rata Share” or any provision of any of the Loan Documents regarding the Pro Rata
treatment or obligations of the Banks; or (v) except as permitted by Section 7.10, release all or
substantially all of the Collateral or release the Borrower or the Guarantor from liability.
Notwithstanding anything to the contrary contained in this Section 8.01: (i) no amendment, waiver,
or consent shall be made with respect to Article VII hereof or any other provision which affects
the rights or obligations of the Agent without the prior written consent of the Agent; (ii) no
amendment, waiver or consent shall be made with respect any provision which affects the rights or
obligations of the Issuer without the prior written consent of the Issuer; and (iii) no amendment,

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waiver or consent shall be made with respect to Section 2.06 or any other provision which affects
the rights or obligations of the Swingline Bank without the prior written consent of the Swingline
Bank. Notwithstanding anything to the contrary herein, no Defaulting Bank shall have any right to
approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of
such Bank may not be increased or extended without the consent of such Bank.

     Section 8.02. Notices, Etc. All notices and other communications provided for under
any Loan Document shall be in writing and mailed, faxed, or delivered at the addresses set forth
below, or at such other address as such party may specify by written notice to the other parties
hereto:

	 	 	 	 	 
	 

	 	If to the Borrower:
	 	US Bio Platte Valley, LLC
	 

	 	 	 	5500 Cenex Drive
	 

	 	 	 	Inver Grove Heights, MN 55077
	 

	 	 	 	Telephone: (651) 355-8300
	 

	 	 	 	Attention: Chief Financial Officer
	 

	 	 	 	Attention: General Counsel
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Skadden, Arps, Slate, Meagher & Flom LLP
	 

	 	 	 	333 W. Wacker Drive
	 

	 	 	 	Chicago, Illinois 60606
	 

	 	 	 	Telephone: (312) 407-0700
	 

	 	 	 	Facsimile: (312) 407-0411
	 

	 	 	 	Attention: Brian W. Duwe
	 
	 	 	 	 
	 

	 	If to the Agent:
	 	AgStar Financial Services, PCA
	 

	 	 	 	1921 Premier Drive
	 

	 	 	 	P.O. Box 4249
	 

	 	 	 	Mankato, MN 56002-4249
	 

	 	 	 	Telephone: (507) 386-4242
	 

	 	 	 	Facsimile: (507) 344-5088
	 
	 	 	 	 
	 

	 	with copies to:
	 	AgStar Financial Services, FLCA
	 

	 	 	 	1921 Premier Drive
	 

	 	 	 	P.O. Box 4249
	 

	 	 	 	Mankato, MN 56002-4249
	 

	 	 	 	Telephone: (507) 386-4242
	 

	 	 	 	Facsimile: (507) 344-5088
	 

	 	 	 	Attention: Mark Schmidt
	 
	 	 	 	 
	 

	 	 	 	Gray, Plant, Mooty, Mooty, & Bennett, P.A.
	 

	 	 	 	1010 West St. Germain
	 

	 	 	 	Suite 600
	 

	 	 	 	St. Cloud, MN 56301
	 

	 	 	 	Telephone: (320) 252-4414
	 

	 	 	 	Facsimile: (320) 252-4482
	 

	 	 	 	Attention: Phillip L. Kunkel

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	 	If to a Bank:
	 	At the address or addresses, as the case may be,
set forth on Schedule 8.02 or on the most recent
Bank Supplement to which such Bank is a party.

All such notices and communications to or upon the parties hereto shall be in writing (including by
telecopy) and sent to the address or facsimile number listed above and shall be effective and shall
be deemed to have been duly given or made (i) when delivered in person, (ii) when transmitted via
facsimile to the applicable number(s) set forth above, (iii) one Business Day following the day on
which the same has been delivered prepaid (or pursuant to an invoice arrangement) to a reputable
national overnight air courier service, or (iv) the third Business Day following the day on which
the same is sent by certified or registered mail, postage prepaid. Notwithstanding the other
provisions of this Section 8.02, the Agent may accept oral borrowing notices, provided that the
Agent shall incur no liability to the Borrower or any Bank in acting
on any such communication that the Agent believes in good faith to have been given by a Person
authorized to give such notice on behalf of the Borrower. Any confirmation sent by the Agent or
any Bank to a Borrower of any borrowing under this Agreement shall, in the absence of manifest
error, be conclusive and binding for all purposes.

     Section 8.03. No Waiver; Remedies. No failure on the part of the Agent or any Bank to
exercise, and no delay in exercising, any right under any Loan Document shall operate as a waiver
thereof; nor shall any single or partial exercise of any right under any Loan Document preclude any
other or further exercise thereof or the exercise of any other right. The remedies provided in the
Loan Documents are cumulative and not exclusive of any remedies provided by law.

     Section 8.04. Costs, Expenses and Taxes. The Borrower agrees to pay on demand all
reasonable and documented costs and expenses of the Agent in connection with the preparation,
execution, delivery, filing, recording and administration of the Loan Documents and the other
related documents to be delivered under the Loan Documents, including the reasonable and documented
fees and out-of-pocket expenses of counsel for the Agent, including local counsel, with respect
thereto and with respect to advising the Agent as to its rights and responsibilities under the Loan
Documents, and all reasonable and documented costs and expenses (including reasonable counsel fees
and expenses) for the Agent in connection with the filing of the Financing Statements and, solely
during the occurrence and continuation of an Event of Default, all reasonable and documented costs
and expenses of the Agent and the Banks in connection with the enforcement of the Loan Documents.

     Section 8.05. Right of Set-off. Upon the occurrence and during the continuance of an
Event of Default, each Bank is hereby authorized, to the fullest extent permitted by law, 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 Agent and/or such Bank to or for the
credit or the account of the Borrower against any and all of the Obligations, irrespective of
whether or not such Bank shall have made any demand under such Loan Document and although deposits,
indebtedness or such obligations may be unmatured or contingent. The Agent and each Bank, as the
case may be, agrees to promptly notify the Borrower after any such set-off and application,
provided that the failure to give such notice shall not affect the validity of such set-off and
application. The rights of the Banks under this Section are in addition to other rights and
remedies (including other rights of set-off) which the Agent and the Banks may have. Each Bank
agrees that for the benefit of each of the other Banks and the Agent (but not for the benefit of
the Borrower) that such Bank shall not exercise any of the set-off rights described in this Section
8.05 unless such Bank had notified the Agent of such Bank’s intention to take such action and such
Bank had received the Agent’s written consent to the taking of such action (unless such notice and
consent requirement is waived by the Agent in its sole discretion).

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     Section 8.06. Severability of Provisions. Any provision of this Agreement or of any
other Loan Document which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or thereof or affecting the validity or
unenforceability of such provision in any other jurisdiction.

     Section 8.07. Binding Effect; Successors and Assigns; Participations.

               (a) This Agreement shall be binding upon and inure to the benefit of the Borrower, the Agent
and the Banks and their respective successors and assigns, except that the Borrower shall have no
right to assign or otherwise transfer its rights hereunder or any interest herein without the prior
written consent of the Agent and the Banks, which consent shall not be unreasonably withheld or
delayed. No Bank may assign, sell, participate or otherwise transfer any of its rights under the
Loan Documents except as set forth in this Section 8.07.

               (b) Each Bank shall have the right at any time, with the written consent of the Agent and,
unless a payment or bankruptcy Event of Default shall have occurred and be continuing, the
Borrower, to assign all or portions of its rights in this Agreement or in its Commitment,
participation obligations and interests, rights and security under this Agreement and any of the
other Loan Documents to any other commercial, banking or financial institution, including any one
or more of its Affiliates which is a commercial banking or financial institution or to one or more
of the Banks (each, an “Assignee”), subject to minimum amounts of $1,600,000.00 or the remaining
commitment amount if less than
$1,600,000.00. Upon any such assignment, each Bank so assigning its Commitment, Advances, Notes,
participation obligations and interests, rights and security under this Agreement shall pay the
Agent, within two (2) Business Days of such assignment an assignment fee of $2,000.00 for its own
account and shall promptly notify the Borrower, the Agent and the other Banks thereof. Each Bank
so assigning its Commitment, Advances, Notes, participation obligations and interests, rights and
security under this Agreement or any of the other Loan Documents shall execute and deliver, and
cause such Assignee to execute and deliver, an agreement in the form of Exhibit K hereto and such
other documents and instruments reasonably requested by the Agent (collectively, a “Bank
Supplement”) to evidence such assignment and to substitute the Assignee as a Bank on all of the
Loan Documents. The Borrower hereby acknowledges and agrees that any assignment described in this
Section 8.07 will give rise to a direct obligation of the Borrower to the Assignee and such party
shall be considered a Bank and rely on, and possess all rights under this Agreement or any other
Loan Document. The Borrower shall accord full recognition to any such assignment, and all rights
and remedies of such Bank in connection with the interest so assigned shall be as fully enforceable
by such Assignee as they were by the assignor as a Bank that was a party to this Agreement on the
date hereof. The Agent, acting for this purpose as an agent of the Borrower, shall maintain at one
of its offices a register for the recordation of the names and addresses of the Banks, and the
Commitment of, and principal amount of the Loans owing to, each Lender pursuant to the terms hereof
from time to time (the “Register”). The entries in the Register shall be conclusive, and the
Borrower, the Agent and the Banks shall treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Bank hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for inspection by the
Borrower and any Bank at any reasonable time and from time to time upon reasonable prior notice.

               (c) Each Bank shall have the right at any time, with the written consent of the Agent and,
unless a payment or bankruptcy Event of Default shall have occurred and be continuing, the
Borrower, to sell participations in all or any portion of its rights in this Agreement or its
Commitment, Advances, Notes, participation obligations and interests, rights and security under
this Agreement and any of the other Loan Documents to any other Person (each, a “Participant”);
provided, however, that (i) such Bank’s obligations

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under the Loan Documents (including its
Commitments) shall remain unchanged, (ii) such Bank shall remain solely responsible to the
Borrower, the Issuer, and the Swingline Bank for the performance of such obligations, (iii) such
Bank shall remain the holder of its Notes and owner of its participation or other interests in
Letter of Credit Liabilities for all purposes of any Loan Document, and (iv) the Agent and the
Borrower shall continue to deal solely and directly with such Bank in connection with such Bank’s
rights and obligations under the Loan Documents. For the sole purpose of determining voting
rights, “Banks” shall include those Persons that are members of the Farm Credit System which have
acquired participation interests (not including subparticipation interests) in the Loans at any
time in the minimum amount of Ten Million and No/100 Dollars ($10,000,000.00), which have been
designated by the Bank selling the participation to such Person as being accorded voting rights
hereunder (the “Participant Designation”), and which are approved as such by the Agent with
notification to the Borrower (the participation shall, in turn, result in a corresponding reduction
in the dollar amount of voting rights of the Bank from which such participation interests were
acquired). The Participant Designation shall (i) state the name and contact information of the
participant as would be required of an assignee pursuant to a Bank Supplement, and (ii) state the
amount of the participation purchased. The Agent shall be entitled to conclusively rely on any and
all information contained in any Participant Designation delivered to it by a Bank. No other
Participant shall be entitled to vote.

               (d) The Agent and any such Bank or Banks, as the case may be, may disclose to (i) any of the
participants identified in Schedule 2.01 or, (ii) in connection with any proposed assignment or
granting of a participation, the proposed assignee or participant any information that the Borrower
or the Guarantor is required to deliver to the Agent and/or the Banks pursuant to this Agreement or
the other Loan Documents, and the Borrower agrees to cooperate fully with the Agent and the Banks,
as the case may be, in providing any such information to any proposed assignee or participant;
provided such Participant identified on Schedule 2.01 and any such assignee or other Participant
agrees to be bound by the confidentiality provisions set forth in Section 8.16.

     Section 8.08. Consent to Jurisdiction. All parties hereby submit to the jurisdiction
of any Minnesota State court sitting in Blue Earth County, Minnesota, or Federal court sitting in
Minneapolis, Minnesota, in any action or proceeding arising out of or relating to this Agreement or
any of the other Loan Documents, and each party hereby agrees that claims in respect of such action
or proceeding may be heard and determined in such Minnesota State court or in such
Federal court. Each party hereby irrevocably waives, to the fullest extent it may effectively do
so, the defense of an inconvenient forum to the maintenance of such action or proceeding.

     Section 8.09. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF MINNESOTA (WITHOUT REFERENCE TO THE CHOICE OF LAW
PRINCIPLES THEREOF).

     Section 8.10. Banks’ Obligations Several, Not Joint. The obligations of the Banks
under this Agreement and the other Loan Documents are several, and are not joint. No Bank or the
Agent shall be responsible or liable in any way for the failure or refusal of any other Bank to
make any Advance to be made by any other Bank, or for any other obligations of any other Bank.

     Section 8.11. Execution in Counterparts. This Agreement may be executed in any number
of counterparts and on telecopy counterparts, each of which when so executed shall be deemed to be
an original and all of which when taken together shall constitute but one and the same agreement.

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     Section 8.12. Survival. All covenants, agreements, representations and warranties
made by the Borrower in the Loan Documents and in the certificates or other instruments delivered
in connection with or pursuant to this Agreement or any other Loan Document be considered to have
been relied upon by the other parties hereto and shall survive the execution and delivery of the
Loan Documents and the making of any Advances and issuance of any Letters of Credit, until
repayment of the Loans and Letters of Credit and termination of the Commitments. The expense
reimbursement, additional cost, capital adequacy and indemnification provisions of this Agreement
shall survive and remain in full force and effect regardless of the consummation of the
transactions contemplated hereby, the repayment of the Obligations, the expiration or termination
of the Letters of Credit and the Commitments or the termination of this Agreement or any provision
hereof. This Agreement shall terminate on the date (the “Termination Date”) on which all
Obligations then due and owing have been paid in full, all Commitments have been terminated, and
all undrawn portions or Letters of Credit have been cash collateralized or otherwise provided for
pursuant to arrangements satisfactory to the Issuer except that (x) those provisions which by the
express terms thereof continue in effect notwithstanding the Termination Date, and (y) the
Obligations in the nature of continuing indemnities not yet due and payable, shall continue in
effect.

     Section 8.13. Entire Agreement. THIS AGREEMENT, THE NOTES, AND THE OTHER LOAN
DOCUMENTS REFERRED TO HEREIN EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND
SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER
WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF.

     Section 8.14 Waiver of Borrower Rights. The Borrower acknowledges and agrees that, to
the extent the provisions of the Agricultural Credit Act of 1987, including 12 U.S.C. §§ 2199
through 2202e, and the implementing Farm Credit Administration regulations, 12 C.F.R. § 617.7000,
et seq. (collectively, the “Farm Credit Law”) apply to the Borrower or to the transactions
contemplated by this Agreement, the Borrower hereby irrevocably waive all Borrower Rights,
including all statutory or regulatory rights of a borrower to disclosure of effective interest
rates, differential interest rates, review of credit decisions, distressed loan restructuring, and
rights of first refusal. The Borrower acknowledges and agrees that the waiver of Borrower Rights
provided by this Section 8.14 is knowingly and voluntarily made after the Borrower has consulted
with legal counsel of its choice and has been represented by counsel of its choice in connection
with the negotiation of this Agreement and the waiver of Borrower Rights set forth in this Section
8.14. The Borrower acknowledges that its waiver of Borrower Rights set forth in this Section 8.14
is based on its recognition that such waiver is material to induce commercial banks and other
non-Farm Credit System institutions to participate in the extensions of credit contemplated by this
Agreement and to provide extensions of credit to the Borrower. Nothing contained in this Section
8.14, nor the delivery to the Borrower of any summary of any rights under, or any notice pursuant
to, the Farm Credit Law shall be deemed to be, or be constructed to indicate the determination or
agreement by the Borrower, the Agent, or any Bank that the Farm Credit Law, or any rights
thereunder, are or will be applicable to the Borrower or to the
transactions contemplated by this Agreement. It is the intent of the Borrower that the waiver of
Borrower Rights contained in this Section 8.14 complies with and meets all of the requirements of
12 C.F.R. § 617.7010(c).

     Section 8.15. WAIVER OF JURY TRIAL. EACH OF THE BORROWER, THE AGENT AND THE BANKS
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT TO WHICH IT IS A PARTY OR ANY INSTRUMENT OR
DOCUMENT DELIVERED THEREUNDER.

     Section 8.16. Confidentiality. Each of the Agent and each Bank agrees to exercise
reasonable care to protect against the unauthorized disclosure of information provided to it by the
Borrower or the Guarantor

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pursuant to the Loan Documents; provided that the Agent or any Bank is
hereby authorized to disclose such Confidential information:

               (a) as authorized or required by federal or state laws, regulations, ordinances or rules;

               (b) to the Agent, any other Bank or any Affiliate of any Bank,

               (c) to any third party that provides services to the Agent or the Bank for processing or
storing information related to loans subject to a written agreement pursuant to which the third
party agrees to protect against the unauthorized disclosure of information provided by the Agent or
the Bank,

               (d) to any Assignee or Participant or prospective Assignee or Participant that has agreed to
protect the confidentiality of information received from the Agent or any Bank,

               (e) to its employees, directors, agents, attorneys, accountants and other professional
advisors or those of any of its Affiliates ,

               (f) if requested or required to do so in connection with any litigation or similar proceeding,
provided that to the extent permitted by law Agent or Bank agrees to use reasonable effort to
provide notice of such request within a reasonable time after providing such information,

               (g) that has been publicly disclosed other than in breach of this Section 8.16, or

               (h) in connection with the exercise of any remedy hereunder or under any other Loan Document.

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

SIGNATURE PAGES TO FOLLOW

70

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO PLATTE VALLEY, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS, THIS AGREEMENT IS DATED AS OF THE DATE
FIRST ABOVE STATED.

BORROWER:

US BIO PLATTE VALLEY, LLC

a Nebraska limited liability company

	 	 	 
	/s/ Richard K. Atkinson
 

By: Richard K. Atkinson

	 	 
	Its: Senior Vice President/Chief Financial Officer
	 	 

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO PLATTE VALLEY, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF THE DATE
FIRST ABOVE STATED.

AGENT:

AGSTAR FINANCIAL SERVICES, PCA,

as Administrative Agent

	 	 	 
	/s/ Mark Schmidt
 

By: Mark Schmidt

	 	 
	Its: Vice President
	 	 

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO PLATTE VALLEY, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS, THIS AGREEMENT IS DATED AS OF THE DATE
FIRST ABOVE STATED.

AGSTAR:

as a Bank

AGSTAR FINANCIAL SERVICES, PCA

	 	 	 
	/s/ Mark Schmidt
 

By: Mark Schmidt

	 	 
	Its: Vice President
	 	 

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO PLATTE VALLEY, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF THE DATE
FIRST ABOVE STATED.

AGCOUNTRY FARM CREDIT SERVICES, FLCA

	 	 	 
	/s/ Randolph L. Aberle
 

By: Randolph L. Aberle

	 	 
	Its: Vice President
	 	 

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO PLATTE VALLEY, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF THE DATE
FIRST ABOVE STATED.

BADGERLAND FARM CREDIT SERVICES

	 	 	 
	/s/ Lawrence P. Coulthard
 

By: Lawrence P. Coulthard

	 	 
	Its: Agribusiness Finance Officer
	 	 

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO PLATTE VALLEY, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF THE DATE
FIRST ABOVE STATED.

BANK OF THE WEST

	 	 	 
	/s/ Lee Rosin
 

By: Lee Rosin

	 	 
	Its: Regional Vice President
	 	 

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO PLATTE VALLEY, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE
PROVISIONS OF THIS CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS. THIS AGREEMENT IS
DATED AS OF THE DATE FIRST ABOVE STATED.

COFINA FINANCIAL, LLC

	 	 	 
	/s/ Brian K. Legried
 

By: Brian K. Legried

	 	 
	Its: President
	 	 

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO PLATTE VALLEY, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF THE DATE
FIRST ABOVE STATED.

FARM CREDIT SERVICES OF GRAND FORKS

	 	 	 
	/s/ Dave DeVos
 

By: Dave DeVos

	 	 
	Its: CCO / VP
	 	 

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO PLATTE VALLEY, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS
OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF THE DATE
FIRST ABOVE STATED.

FARM CREDIT SERVICES OF MID-AMERICA, PCA

	 	 	 
	/s/ Mark Strebel
 

By: Mark Strebel

	 	 
	Its: Credit Officer
	 	 

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO PLATTE VALLEY, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF THE
DATE FIRST ABOVE STATED.

FIRST NATIONAL BANK OF OMAHA

	 	 	 
	/s/
Bradley J. Brummond
 

By: Bradley J. Brummond

	 	 
	Its: Vice President
	 	 

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO PLATTE VALLEY, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF THE DATE
FIRST ABOVE STATED.

HOME FEDERAL SAVINGS BANK

	 	 	 
	/s/
Eric Oftedahl
 

By: Eric Oftedahl

	 	 
	Its:
VP
	 	 

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO PLATTE VALLEY, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF THE DATE
FIRST ABOVE STATED.

METROPOLITAN LIFE INSURANCE COMPANY

	 	 	 
	/s/ Steven D. Craig
 

By: Steven D. Craig

	 	 
	Its: Director
	 	 

 

 

SCHEDULES AND EXHIBITS

to

CREDIT AGREEMENT

by and between

US BIO PLATTE VALLEY, LLC,

and

AGSTAR FINANCIAL SERVICES, PCA, as AGENT

and

the BANKS

Dated: February 7, 2007

 

 

SCHEDULE 2.01

COMMITMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Term Revolving	 	Revolving Line	 	 
	 	 	Term Loan	 	Loan	 	of Credit	 	 
	Bank	 	Commitment	 	Commitment	 	Commitment	 	Total Commitment
	AgCountry Farm Credit Services, FLCA
	 	$	1,234,828.50	 	 	$	411,609.50	 	 	$	0.00	 	 	$	1,646,438.00	 
	AgStar Financial Services, PCA1
	 	$	31,381,266.49	 	 	$	10,460,422.16	 	 	$	2,000,000.00	 	 	$	43,841,688.65	 
	Badgerland Farm Credit Services
	 	$	3,087,071.24	 	 	$	1,029,023.75	 	 	$	0.00	 	 	$	4,116,094.99	 
	Bank of the West
	 	$	1,929,419.53	 	 	$	643,139.84	 	 	$	0.00	 	 	$	2,572,559.37	 
	CoFina Financial, LLC
	 	$	3,087,071.24	 	 	$	1,029,023.75	 	 	$	0.00	 	 	$	4,116,094.99	 
	Farm Credit Services of Grand Forks
	 	$	4,167,546.17	 	 	$	1,389,182.06	 	 	$	0.00	 	 	$	5,556,728.23	 
	Farm Credit Services of Mid-America,
	 	$	3,858,839.05	 	 	$	1,286,279.68	 	 	$	0.00	 	 	$	5,145,118.73	 
	First National Bank of Omaha
	 	$	3,087,071.24	 	 	$	1,029,023.75	 	 	$	0.00	 	 	$	4,116,094.99	 
	Home Federal Savings Bank
	 	$	0.00	 	 	$	0.00	 	 	$	8,000,000.00	 	 	$	8,000,000.00	 
	Metropolitan Life Insurance Company
	 	$	15,666,886.54	 	 	$	5,222,295.51	 	 	$	0.00	 	 	$	20,889,182.05	 
	 
	 	$	67,500,000.00	 	 	$	22,500,000.00	 	 	$	10,000,000.00	 	 	$	100,000,000.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
 

1   On the Closing Date, the following institutions will purchase participations in the AgStar Financial
Services, PCA commitments as follows:
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1st Farm Credit Services, PCA/FLCA
	 	$	3,858,839.05	 	 	$	1,286,279.68	 	 	$	0.00	 	 	$	5,145,118.73	 
	Agribank, FCB
	 	$	3,550,131.93	 	 	$	1,183,377.31	 	 	$	0.00	 	 	$	4,733,509.24	 
	AgFirst Farm Credit Bank
	 	$	8,180,738.79	 	 	$	2,726,912.93	 	 	$	0.00	 	 	$	10,907,651.72	 
	#2042636
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

SCHEDULE 2.23

FARM CREDIT SYSTEM ENTITIES

1. AgCountry Farm Credit Services, FLCA

2. AgStar Financial Services, PCA

3. Badgerland Farm Credit Services

4. Farm Credit Services of Grand Forks

5. Farm Credit Services of Mid-America

 

 

SCHEDULE 3.01(c)

REAL
PROPERTY

A tract of land located in part of the South Half and all of Tax Lot One (1) in Section 11,
Township 13 North, Range 6 West of the 6th P.M., Merrick County, Nebraska, and more particularly
described as follows:

Commencing
at the center of Section 11; thence on an assumed bearing of S00°00'00"W upon and along
the West line of the Southeast Quarter a distance of 50.00 feet to the South Right-of-Way (R.O.W,)
line of Hord Lake Road, said point also being the Point of Beginning; thence SOOWOG"W upon and
along said West line a distance of 5.00 feet; thence S89C08'S6"E upon and along said
South R.O.W. line a distance of 1349.09 feet to the West line of Tax Lot 1; thence NOO"58"54'E
upon and along said West line of Tax Lot 1 a distance of 14.64 feet to the northwest corner of
said Tax Lot 1; thence S89°07'20"E upon and along the North line of said Tax Lot 1, said line also
being said South R.O.W. line a distance of 260.55 feet to the northeast corner of said Tax Lot 1;
thence SO()°19'29'W upon and along the East line of said Tax Lot 1 a distance of 316.00 feet to
the southeast corner of said Tax Lot 1; thence NS9°03'23"W upon and along the South line of said
Tax Lot 1 a distance of 260.00 feet to the southwest corner of said Tax Lot 1; thence N89°52'11"W
a distance of 11.03 feet; thence SOO°34'25"W a distance of 749.87 feet; thence N89°06'32"W a
distance of 1192.10 feet to the easterly R.O.W. line of Union Pacific Railroad; thence N38°25'26"W
upon and along said Railroad R.O.W. line a distance of 221.21 feet to a point on said West line of
the Southeast Quarter; thence N38°18'13"W upon and along said Railroad R.O.W. line a distance of
479.98 feet; thence N51°42'35"E upon and along said Railroad R.O.W. a distance of 100.00 feet;
thence N38°17'31"W upon and along said easterly Railroad R.O.W. line a distance of S78.18 feet to
a point on said South R.O.W. line of Hord Lake Road; thence S89°10'16"E upon and along said South
R.O.W. line a distance of 577.37 feet to the Point of Beginning.

Said tract is also known as and has been formerly described as:

A tract of land comprising a part of the Southwest Quarter, part of the Southeast Quarter and all
of Tax Lot One (1) in Section 11, Township 13 North, Range 6 West of the 6th P.M., Merrick County,
Nebraska, and more particularly described as follows:

First to ascertain the actual point of beginning, start at the northwest corner of said Southeast
Quarter; thence southerly along and upon the West line of said Southeast Quarter for a distance of
50.00 feet to the Point of Beginning; thence continuing southerly along and upon the West line of
said Southeast Quarter for a distance of 5.00 feet; thence deflecting left 89°09"16” and running
easterly along and upon the South line of deeded road right-of-way for a distance of 1348.94 feet;
thence deflecting left 90°39'34” and running northerly along and upon the West line of Tax Lot 1
for a distance of 15.00 feet to the northwest corner of said Tax Lot 1; thence easterly along and
upon the South line of deeded road right-of-way also being the North line of said Tax Lot 1 for a
distance of 260.00 feet; thence southerly along and upon the East line of said Tax Lot 1 for a
distance of 316.00 feet; thence westerly along and upon the South line of said Tax Lot 1 and
extending for a total distance of 271.00 feet; thence deflecting left 90°10'06” and running
southerly for a distance of 749.87 feet; thence deflecting right 90°16>40” and running westerly
for a distance of 1191.96 feet to a point on the northeast right-of-way line of the Union Pacific
Railroad; thence northwesterly along and upon the northeast right-of-way line of said Union Pacific
Railroad for a distance of 701.92 feet; thence northeasterly along and upon the northeast
right-of-way line of said Union Pacific Railroad for a distance of 100.00 feet; thence
northwesterly along and upon the northeast right-of-way line of said Union Pacific Railroad for a
distance of 578.10 feet to a point on the South right-of-way line of deeded road; thence easterly
along and upon the South right-of-way line of deeded road for a distance of 577.31 feet to the
Point of Beginning.

 

 

SCHEDULE 4.01(a)

DESCRIPTION OF CERTAIN TRANSACTIONS RELATED TO 

THE BORROWER’S MEMBERSHIP INTERESTS (UNITS)

NONE.

 

 

SCHEDULE 4.01(f)

DESCRIPTION OF CERTAIN THREATENED ACTIONS, ETC.

NONE.

 

 

SCHEDULE 4.01(k)

LOCATION OF INVENTORY AND FARM PRODUCTS; 

THIRD PARTIES IN POSSESSION; CROPS

214 20th St

Central City, NE 68826

 

 

SCHEDULE 4.01(l)

OFFICE LOCATIONS; FICTITIOUS NAMES, ETC.

	 	 	 
	1. Location of the Borrower’s chief place of business:
	 	214 20th St.
	 
	 	Central City, NE 68826
	 
	 	 
	2. Location of the Borrower’s chief executive office:
	 	214 20th St.
	 
	 	Central City, NE 68826
	 
	 	 
	3. Borrower’s jurisdiction of organization: Nebraska
	 
	 	 
	4. Other places where the Borrower keeps its books and records:
	5500 Cenex Drive, Mail Station 175

Inver Grove Heights, MN 55077
	 	 
	 
	 	 
	5. Other locations where the Borrower has a place of business: None.
	 
	 	 
	6. Trade-names or fictitious business names of the Borrower: None.
	 
	 	 
	7. Names of all predecessor companies of the Borrower:
	  On September 13, 2006, the company changed its name from Platte Valley Fuel Ethanol, LLC to US
Bio Platte Valley, LLC.
	 
	 	 
	8. Borrower’s U.S. Federal Income Tax I.D. number: 55-0816855
	 
	 	 
	9. Borrower’s state organizational identification number: 10040974

 

 

SCHEDULE 4.01(p)

INTELLECTUAL PROPERTY

NONE.

 

 

SCHEDULE 4.01(t)

ENVIRONMENTAL COMPLIANCE

NONE.

 

 

SCHEDULE 5.02(a)

DESCRIPTION OF CERTAIN LIENS, LEASE OBLIGATIONS, ETC.

Lien pursuant to that certain Subordinated Deed of Trust and Security Agreement Fixture
Financing Statement dated December 2, 2003 made by Platte Valley Fuel Ethanol, L.L.C. to Pinnacle
Bank

 

 

SCHEDULE 5.02(e)

DEBT

Debt of the Borrower in connection with that certain Redevelopment Contract dated as of October 31,
2003 between the Community Redevelopment Authority of the City of Central City, Nebraska (the
“Authority”) and the Borrower, as amended by that certain Amended Redevelopment Contract dated as
of February 17, 2006 between the Authority and the Borrower and that certain Guaranty Agreement
related thereto by the Borrower in favor of Pinnacle Bank, as beneficiary under the Subordinated
Deed of Trust and Security Agreement Fixture Financing Statement referred to on Schedule 5.02(a)

 

 

SCHEDULE 5.02(k)

TRANSACTIONS WITH AFFILIATES

Contracts with Fagen, Inc. related to the construction of the Project.

 

 

EXHIBIT A

BORROWING BASE CERTIFICATE

Detailed Calculation

For Month Ending:                      ___,___

Date Delivered:                      ___, ___

	 	 	 	 	 	 	 	 	 	 	 
	1	 	All unpaid Accounts:
	 	 	 	 	 	 	 	 
	 	 	                     (ethanol)
	 	$	 	 	 	 	 	 
	 	 	                     (DGS)
	 	$	 	 	 	 	 	 
	 	 	Other
	 	$	 	 	 	 	 	 
	 	 	Other
	 	$	 	 	 	 	 	 
	 	 	Total unpaid Accounts
	 	$	 	 	 	 	 	 
	 	 	Deduct ineligible Accounts
	 	$	 	 	 	 	 	 
	 	 	     (46 days or more from invoice date or otherwise
excluded pursuant to the terms and conditions of
the Credit Agreement)

	 	 	 	 	 	 	 	 
	 	 	Total Eligible Accounts Receivable
	 	$	 	 	 	 	 	 
	 	 	Multiply by Borrowing Base Factor
	 	 	75.00	%	 	 	 	 
	 	 	Total Eligible Accounts Receivable
	 	$	 	 	 	$	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	2	 	All Corn, DGS and other byproducts Inventory:
	 	 	 	 	 	 	 	 
	 	 	Ending Corn Inventory
	 	$	 	 	 	 	 	 
	 	 	Ending DGS & other byproducts Inventory
	 	$	 	 	 	 	 	 
	 	 	Total Corn, DGS & other byproducts Inventory

	 	 	 	 	 	 	 	 
	 	 	Multiply by Borrowing Base Factor
	 	 	75.00	%	 	 	 	 
	 	 	Total Corn, DGS and other byproducts Eligible
Inventory
	 	$	 	 	 	$	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	3	 	All Ethanol and other Inventory (lower of cost or
market)

	 	 	 	 	 	 	 	 
	 	 	Ending Ethanol Inventory
	 	$	 	 	 	 	 	 
	 	 	Ending                      Inventory
	 	$	 	 	 	 	 	 
	 	 	Other Inventory

	 	 	 	 	 	 	 	 
	 	 	Total Ethanol and Other Inventory
	 	$	 	 	 	 	 	 
	 	 	Multiply by Borrowing Base Factor
	 	 	75.00	%	 	 	 	 
	 	 	Total Ethanol and other Eligible Inventory
	 	$	 	 	 	$	 	 
	 	 	Total Eligible Inventory (Total from #2 and #3)
	 	$	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	4	 	Total Borrowing Base (Total from #1, #2, & #3)
	 	$	 	 	 	$	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	5	 	Outstanding Revolving Line of Credit Loan Balance
(including outstanding Revolving Letters of
Credit) (as of month end)
	 	$	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	6	 	Excess or Deficit (Line 4 minus Line 5)
	 	$	 	 	 	$	 	 

 

 

*If a Deficit exists, remit amount unless remitted since end of month.

     Pursuant to and in accordance with the term and conditions of that certain Credit Agreement,
dated as of February 7, 2007, among US Bio Platte Valley, LLC, a Nebraska limited liability company
(the “Borrower”), the Banks from time to time party thereto, and AgStar Financial Services, PCA, as
Agent for the Banks (the “Agent”) (as such agreement may be amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), the Borrower is executing and
delivering to the Agent this Borrowing Base Certificate accompanied by supporting data
(collectively, this “Certificate”). The undersigned hereby certifies that the information set
forth in this Certificate is true and correct as of the date hereof.

	 	 	 	 	 	 	 
	 	 	US BIO PLATTE VALLEY, LLC,

a Nebraska limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	Its
	 	 

	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT B

CERTIFICATE OF SUBSTANTIAL
COMPLETION

			
	 	 	 
	
	 	Form 7.6.1a
1 of 1

	 	 	 	 	 
	Certification of

	 	OWNER
	 	þ
	Substantial Completion

	 	ARCHITECT
	 	o
	AIA Document G704 -

	 	CONTRACTOR
	 	þ
	Electronic Format

	 	FIELD
	 	o
	 

	 	OTHER
	 	o

 

THIS
DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES,CONSULTATION WITH
AN ATTORNEY IS ENCOURAGED WITH RESPECT TO
ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF THIS
ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE
BY USING AIA DOCUMENT D40)

 

	 	 	 	 	 
	PROJECT

	 	PROJECT NO:	 	 
	(Name and address)

	 	CONTRACT FOR:	 	 
	 

	 	CONTRACT DATE:	 	 
	TO OWNER:

	 	TO CONTRACTOR:	 	 
	(Name and address)

	 	(Name and address)
	 	Fagen, Inc.
	 

	 	 	 	501 W. Hwy 212
	 

	 	 	 	PO Box 159
	 

	 	 	 	Granite Falls, MN 56241

DATE OF ISSUANCE

PROJECT OR DESIGNATED PORTION SHALL INCLUDE:

The Work performed under this Contract has been
reviewed and found, to the Architect’s best
knowledge, information and belief, to be substantially complete. Substantial Completion is the
stage in the progress of the Work when the work or designated portion thereof is sufficiently
complete in accordance with the Contract Documents so the Owner
can occupy or utilize the Work for its intended use. The date of Substantial Completion of the
Project of portion thereof designated above is hereby established as which is also the date of
commencement of applicable warranties required by the Contract Document, except as stated below

 

A list of items to be completed or corrected is
attached hereto. The failure to include any items
on such list does not alter the responsibility of the Contractor to complete all work in accordance
with he Contract Documents.

	 	 	 	 	 
	 

	 	 
	 	 
	ARCHITECT

	 	BY
	 	DATE

The
Contractor will complete or correct the Work on
the list of items attached hereto within   days
form the above Date of Substantial Completion

	 	 	 	 	 
	 

	 	 
	 	 
	CONTRACTOR

	 	BY
	 	DATE

The Owner accepts the Work or designated portion
thereof as substantially compete and will assume
full possession thereof at (time) on   (date)

	 	 	 	 	 
	 

	 	 
	 	 
	OWNER

	 	BY
	 	DATE

 

The responsibilities of the Owner and the Contractor
for security, maintenance, heat, utilities,
damage to the Work and insurance shall be as follows: Owner has the
responsibility of all of the above

 

AIA DOCUMENT 0704 — CERTIFICATION OF
SUBSTANTIAL COMPLETION — 1992 EDITON—AIA — COPYRIGHT
1992 — THE AMERICAN INSTITUTE OF ARCHITECTS. 1735 NE YORK AVENUE
N.W., WASHINGTON, D.C. 20006-5292
WARNING, Unliemsed photocopying violates U.S. copyright laws and is subject to legal prosecution.
The document was
electronically produced with permission of the AIA and can be
reproduced without violation until
the date of expiration as noted below.

(Note — Owner’s and
Contractor’s Legal and Insurance counsel should determine and
review insurance requirements and coverage.)
January 11,
2006

Ó2003.Fagen, Inc. All rights reserved.

Strictly confidential and proprictary.

 

 

EXHIBIT C

[RESERVED]

 

 

EXHIBIT D

COMPLIANCE CERTIFICATE

     Pursuant to Section 5.01(c) of that certain Credit Agreement dated as of February 7, 2007, by
and among US Bio Platte Valley, LLC, a Nebraska limited liability company (the “Borrower”), AgStar
Financial Services, PCA, as Agent (the “Agent”) and the Banks identified therein (as such agreement
may be amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement;” capitalized terms used herein and not otherwise defined herein shall have the
respective meanings set forth therefor in the Credit Agreement), the undersigned, in his/her
capacity as                      of the Borrower, hereby certifies as follows:

	 	1.	 	The financial statement(s) attached hereto fairly present in all material
respects the financial condition of the Borrower in accordance with GAAP (subject to
year-end adjustments and the absence of footnotes with respect to unaudited interim
financial statements) and, other than with respect to any interim financial statements,
have been prepared in accordance with GAAP;
	 
	 	2.	 	To my knowledge, there exists no Event of Default as of the date of this
certificate;1 and
	 
	 	3.	 	Set forth below are calculations of current financial covenants set forth in Section 5.01
of the Credit Agreement [on the Closing Date] [for the fiscal year ended December 31, 2006]:

	1.	 	Section 5.01(d) – Working Capital

(tested on the Closing Date and as of December 31 of each year thereafter)
	 
	(a)	 	Required Working Capital

(on the Closing Date Working Capital shall be at least $8,000,000.00)

(on and after the date that is twelve months after the Closing Date, Working Capital shall
be $12,000,000.00)
	 
	(b)	 	Actual Working Capital:

	 	 	 
	(x)     Current Assets [as of the Closing Date] [as of the date that is twelve months after the Closing Date]

	 	$                     
	 
	(y)     Current Liabilities [as of the Closing Date] [as of the date that is twelve months after the Closing Date]

	 	$                     
	          Line (x) less line (y)

	 	$                     

	 	 	 	 	 
	In Compliance

	 	Yes                     
	 	No                    

	2.	 	Section 5.01(e) – Net Worth

(tested on the Closing Date and as of December 31, 2006 and December 31 of each year
thereafter)

 

			
	1	 	If, to such officer’s knowledge,
there exists an Event of Default, such officer shall state in reasonable detail
the facts with respect thereto.

 

 

	 	 	 
	(a) Required Net Worth [on the Closing Date

	 	$38,381,662]
	     [after the Closing Date, calculated in accordance with Section 5.01(e)of the Credit Agreement]

	 	$                    
	 
	 	 
	(b) Actual Net Worth
	 	 
	 
	 	 
	     (1) Total Assets

	 	$                    
	     (2) Total Liabilities (minus subordinated debt)

	 	$                    
	     (3) Total Net Worth

	 	$                    
	     (line (1) minus line (2))
	 	 

	 	 	 	 	 
	In Compliance

	 	Yes                     
	 	No                    

	3.	 	Section 5.01(f) – Owner’s Equity 

(tested initially at the end of the first 12 months after the Closing Date and as of December
31 of each year thereafter)

	 	 	 	 	 
	(a) Required Owner’s Equity

	 	 	40	%
	 
	 	 	 	 
	(b) Actual Owner’s Equity
	 	 	 	 
	(i) Net Worth

	 	$                    

	(ii)Total Assets of the Borrower and its Subsidiaries

	 	$                    

	(iii)Owner’s Equity
	 	 	 	 
	((i) divided by (ii))

	 	 	___	%

	 	 	 	 	 
	In Compliance

	 	Yes                     
	 	No                    

	4.	 	Section 5.01(g) – Fixed Charge Coverage Ratio

(tested initially at the end of the first 12 months after the Closing Date and as of
December 31 of each year thereafter)

	 	 	 
	(a) Required Fixed Charge Coverage Ratio

	 	Not less than 1.25 to 1.0
	 
	 	 
	(b) Actual Fixed Charge Coverage Ratio
	 	 
	For such twelve month period,
	 	 
	(i) EBITDA

	 	$                    
	 
	 	 
	For such twelve month period,
	 	 
	(ii) Current Portion of Long Term Debt

	 	$                    
	(iii) Interest Expense

	 	$                    
	(iv) Dividends

	 	$                    
	(v) Distributions
	 	 
	(vi)Tax Distributions

	 	$                    
	(vii) Maintenance Capital Expenditures

	 	$                    
	(viii)Denominator (sum of lines (ii) through (vii))

	 	$                    
	 
	 	 
	Ratio of line (i) to (viii)

	 	___to 1.00

	 	 	 	 	 
	In Compliance

	 	Yes                     
	 	No                    

 

 

     IN WITNESS WHEREOF, the undersigned has executed and delivered this Compliance Certificate
this ___day of ___, 20___.

	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	US BIO PLATTE VALLEY, LLC,

a Nebraska limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	Its
	 	 

	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT E

FORM OF TERM NOTE

			
	 	 	 
	$                    
	 	                    

     FOR VALUE RECEIVED, US BIO PLATTE VALLEY, LLC, a Nebraska limited liability company (the
“Borrower”), hereby promises to pay to the order of METROPOLITAN LIFE INSURANCE COMPANY (the
“Bank”), (a) the principal sum of                                          Dollars. The Borrower further agrees to
pay interest in like money to the Bank on the unpaid principal amount hereof from time to time
outstanding at the rates and on the dates specified in Sections 2.03(c) and 2.03(g) of the Credit
Agreement, subject to Sections 2.11, 2.13, 2.14, 2.15, 2.17, 2.25 and 2.29 of the Credit Agreement
and, in any event, all such payments shall be made no later than the Maturity Date.

     This Term Note is one of the Term Notes evidencing the Term Loan and referred to in that
certain Credit Agreement, dated as of February 7, 2007, among the Borrower, the Bank and the other
commercial, banking or financial institutions from time to time parties thereto, and AgStar
Financial Services, PCA, as agent (the “Agent”) (such agreement, as it may be amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”). This Term Note is
subject to the terms and provisions of the Credit Agreement. All capitalized terms used and not
defined herein shall have the meanings assigned to them in the Credit Agreement.

     This Term Note is subject to prepayment as provided in the Credit Agreement.

     This Term Note is secured and guaranteed as provided in the Loan Documents. Reference is
hereby made to the Loan Documents for a description of the properties and assets in which a
security interest has been granted, the nature and extent of the security and the guarantee, and
the terms and conditions upon which the security interests and the guarantee were granted and the
rights of the Bank in respect thereof.

     Upon the occurrence and during the continuance of any one or more of the Events of Default set
forth in Section 6.01 of the Credit Agreement, all amounts then remaining unpaid on this Term Note
shall, at the option of the Agent, be immediately due and payable, all as provided in the Credit
Agreement.

     The Borrower hereby waives demand, presentment, protest and notice of nonpayment and dishonor
of this Term Note.

     This Term Note shall be governed by and construed in accordance with the laws of the State of
Minnesota (without reference to the choice of law principles thereof).

     The Borrower hereby submits to the jurisdiction of any Minnesota State court sitting in Blue
Earth County, Minnesota, or Federal court sitting in Minneapolis, Minnesota, in any action or
proceeding arising out of or relating to this Term Note, and the Borrower hereby agrees that claims
in respect of such action or proceeding may be heard and determined in such Minnesota State court
or in such Federal court. The Borrower hereby waives, to the fullest extent it may effectively do
so, the defense of an inconvenient forum to the maintenance of such action or proceeding.

 

 

	 	 	 	 	 
	 

	 	US BIO PLATTE VALLEY, LLC,

a Nebraska limited liability company
	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	By:	 	 
	 

	 	Its:	 	 

 

 

EXHIBIT F

[RESERVED]

 

 

EXHIBIT G

FORM OF REVOLVING LINE OF CREDIT NOTE

			
	 	 	 
	$10,000,000.00
	 	                    

     FOR VALUE RECEIVED, US BIO PLATE VALLEY, LLC, a Nebraska limited liability company (the
“Borrower”), hereby promises to pay to the order of ___(the “Bank”), (a) the principal sum
of Ten Million and No/100ths ($10,000,000.00) Dollars, or, if less, (b) the aggregate unpaid
principal amount of all Revolving Line of Credit Advances (as defined in the Credit Agreement (as
defined below)) made by the Bank to the Borrower pursuant to Section 2.05 of the Credit Agreement.
The Borrower further agrees to pay interest in like money to the Bank on the unpaid principal
amount hereof from time to time outstanding at the rates and on the dates specified in Sections
2.05(i) and 2.05(k) of the Credit Agreement, subject to Section 2.11, 2.13, 2.14, 2.15, 2.17 and
2.29 of the Credit Agreement and, in any event, all such payments shall be made no later than the
Revolving Line of Credit Maturity Date.

     This Revolving Line of Credit Note is one of the Revolving Line of Credit Notes evidencing the
Revolving Line of Credit Loan and referred to in that certain Credit Agreement, dated as of
February 7, 2007, among the Borrower, the Bank and the other commercial, banking or
financial institutions from time to time parties thereto, and AgStar Financial Services, PCA, as
agent (the “Agent”) (such agreement, as it may be amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”). This Revolving Line of Credit Note is subject
to the terms and provisions of the Credit Agreement. All capitalized terms used and not defined
herein shall have the meanings assigned to them in the Credit Agreement.

     This Revolving Line of Credit Note is subject to prepayment as provided in the Credit
Agreement.

     This Revolving Line of Credit Note is secured and guaranteed as provided in the Loan
Documents. Reference is hereby made to the Loan Documents for a description of the properties and
assets in which a security interest has been granted, the nature and extent of the security and the
guarantee, and the terms and conditions upon which the security interests and the guarantee were
granted and the rights of the Bank in respect thereof.

     Upon the occurrence and during the continuance of any one or more of the Events of Default set
forth in Section 6.01 of the Credit Agreement, all amounts then remaining unpaid on this Revolving
Line of Credit Note shall, at the option of the Agent, be immediately due and payable, all as
provided in the Credit Agreement.

     The Borrower hereby waives demand, presentment, protest and notice of nonpayment and dishonor
of this Revolving Line of Credit Note.

     This Revolving Line of Credit Note shall be governed by and construed in accordance with the
laws of the State of Minnesota (without reference to the choice of law principles thereof).

     The Borrower hereby submits to the jurisdiction of any Minnesota State court sitting in Blue
Earth County, Minnesota, or Federal court sitting in Minneapolis, Minnesota, in any action or

 

 

     proceeding arising out of or relating to this Revolving Line of Credit Note, and the Borrower
hereby agrees that claims in respect of such action or proceeding may be heard and determined in
such
Minnesota State court or in such Federal court. The Borrower hereby waives, to the fullest
extent it may effectively do so, the defense of an inconvenient forum to the maintenance of such
action or proceeding.

	 	 	 	 	 
	 

	 	US BIO PLATE VALLEY, LLC,

a Nebraska limited liability company	 	 
	 
	 	 	 	 
	 

	 	 

By:
	 	 
	 

	 	Its:	 	 

 

 

EXHIBIT_H

FORM OF TERM REVOLVING NOTE

			
	 	 	 
	$                    
	 	                    

     FOR VALUE RECEIVED, US BIO PLATTE VALLEY, LLC, a Nebraska limited liability company (the
“Borrower”), hereby promises to pay to the order of                      (the “Bank”) (a) the principal
sum of                                          Dollars, or, if less (b) the aggregate unpaid principal amount of all
Term Revolving Advances (as defined in the Credit Agreement (as defined below)) made by the Bank to
the Borrower pursuant to Section 2.04 of the Credit Agreement. The Borrower further agrees to pay
interest in like money to the Bank on the unpaid principal amount hereof from time to time
outstanding at the rates and on the dates specified in Sections 2.04(i) and 2.04(k) of the Credit
Agreement, subject to Sections 2.11, 2.13, 2.14, 2.15, 2.17, and 2.29 of the Credit Agreement and,
in any event, all such payments shall be made no later than the Term Revolving Loan Termination
Date.

     This Term Revolving Note is one of the Term Revolving Notes evidencing the Term Revolving Loan
and referred to in that certain Credit Agreement, dated as of February 7, 2007, among the Borrower,
the Bank and the other commercial, banking or financial institutions from time to time parties
thereto, and AgStar Financial Services, PCA, as agent (the “Agent”) (such agreement, as it may be
amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”).
This Term Revolving Note is subject to the terms and provisions of the Credit Agreement. All
capitalized terms used and not defined herein shall have the meanings assigned to them in the
Credit Agreement.

     This Term Revolving Note is subject to prepayment as provided in the Credit Agreement.

     This Term Revolving Note is secured and guaranteed as provided in the Loan Documents.
Reference is hereby made to the Loan Documents for a description of the properties and assets in
which a security interest has been granted, the nature and extent of the security and the
guarantee, and the terms and conditions upon which the security interests and the guarantee were
granted and the rights of the Bank in respect thereof.

     Upon the occurrence and during the continuance of any one or more of the Events of Default set
forth in Section 6.01 of the Credit Agreement, all amounts then remaining unpaid on this Term
Revolving Note shall, at the option of the Agent, be immediately due and payable, all as provided
in the Credit Agreement.

     The Borrower hereby waives demand, presentment, protest and notice of nonpayment and dishonor
of this Term Revolving Note.

     This Term Revolving Note shall be governed by and construed in accordance with the laws of the
State of Minnesota (without reference to the choice of law principles thereof).

     The Borrower hereby submits to the jurisdiction of any Minnesota State court sitting in Blue
Earth County, Minnesota, or Federal court sitting in Minneapolis, Minnesota, in any action or
proceeding arising out of or relating to this Term Revolving Note, and the Borrower hereby agrees
that claims in respect of such action or proceeding may be heard and determined in such Minnesota
State court or in such Federal court. The Borrower hereby waives, to the fullest extent it may

24

 

effectively do so, the defense of an inconvenient forum to the maintenance of such action or
proceeding.

	 	 	 	 	 
	 

	 	US BIO PLATE VALLEY, LLC,

a Nebraska limited liability company	 	 
	 
	 	 	 	 
	 

	 	 

By:
	 	 
	 

	 	Its:	 	 

25

 

EXHIBIT I

FORM OF LETTER OF CREDIT

IRREVOCABLE STANDBY

LETTER OF CREDIT NO. ___

(Date)

                                        

                                        

                                        

(Beneficiary)

Ladies and Gentlemen:

At the request of US Bio Platte Valley, LLC, we hereby establish our Irrevocable Standby Letter of
Credit in your favor in the amount of $___U.S. dollars.

We undertake that drawings under this Letter of Credit will be honored upon presentation of your
draft drawn on                                         ,                     ,
                    , ___, and the original of
this Letter of Credit prior to the expiration date set forth herein. All drafts submitted to
                     must indicate the number and date of this credit.

This Letter of Credit expires on                     ; provided that this Letter of Credit will be
automatically renewed for a one year period upon such expiration date and upon each anniversary of
such date, unless at least thirty (30) days prior to such expiration date, or prior to any
anniversary of such date, we notify both you and your client in writing by registered mail that we
elect not to so renew this Letter of Credit, and provided that this Letter of Credit will not
extend beyond                      [the applicable maturity date under the Credit Agreement]

Except as expressly stated herein, this undertaking is not subject to any conditions or
qualification. The obligation of                      under this Letter of Credit shall be the individual
obligation of                      and in no way contingent upon reimbursement with respect thereto.

This credit is subject to the Uniform Customs and Practice for Documentary Credits, 1993 Version,
of the International Chamber of Commerce or any successor publication.

Sincerely,

26

 

EXHIBIT J

FORM OF OPINION LETTER

[RESERVED]

27

 

EXHIBIT K

FORM OF BANK SUPPLEMENT

     THIS BANK SUPPLEMENT (this “Supplement”) to the Credit Agreement (as amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”), dated as of February 7, 2007, by and
among US BIO PLATTE VALLEY, LLC, a Nebraska limited liability company (“Borrower”), AGSTAR
FINANCIAL SERVICES, PCA (“AgStar”), the commercial, banking or financial institutions listed in the
Credit Agreement or which have become parties thereto pursuant to Section 8.07 of the Credit
Agreement (AgStar and such commercial, banking or financial institutions are sometimes hereinafter
collectively the “Banks” and individually a “Bank”), and AGSTAR FINANCIAL SERVICES, PCA as
Administrative Agent (the “Agent”) for itself and the other Banks is made and entered into this
___day of                     , ___.

RECITALS

     A. The Credit Agreement provides that any bank, financial institution or other entity may
become a party to the Credit Agreement with the consent of the Borrower and the Agent by executing
and delivering to the Borrower and the Agent a supplement to the Credit Agreement in substantially
the form of this Supplement; and

B. The undersigned now desires to become a party to the Credit Agreement;

NOW, THEREFORE, the undersigned hereby agrees as follows:

      1. The undersigned agrees to be bound by the provisions of the Credit Agreement, and
agrees that it shall, on the date this Supplement is accepted by the Borrower and the Agent,
become a Bank for all purposes of the Credit Agreement to the same extent as if originally a
party thereto.

      2. The undersigned (a) represents and warrants that it is legally authorized to enter
into this Supplement; (b) confirms that it has received a copy of the Credit Agreement,
together with copies of the financial statements referred to in Section 5.01(c) thereof and
such other documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Supplement; (c) agrees that it has made and will,
independently and without reliance upon the Agent or any Bank, and based on such documents
and information as it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action under the Credit Agreement or any instrument or
document furnished pursuant hereto or thereto; (d) appoints and authorizes the Agent to take
such action as agent on its behalf and to exercise such powers and discretion under the
Credit Agreement or any instrument or document furnished pursuant hereto or thereto as are
delegated to the Agent by the terms thereof, together with such powers as are incidental
thereto; and (e) agrees that it will be bound by the provisions of the Credit Agreement and
will perform in accordance with its terms all the obligations which by the terms of the
Credit Agreement are required to be performed by it as a Bank including, without limitation,
if it is organized under the laws of a jurisdiction outside the United States, its
obligation pursuant to the terms of the Credit Agreement.

      3. The undersigned’s address for notices for the purposes of the Credit Agreement is
as follows:

28

 

[INSERT ADDRESS OF NEW BANK]

     IN WITNESS WHEREOF, the undersigned has caused this Supplement to be executed and delivered by
a duly authorized officer on the date first above written.

	 	 	 	 	 
	 	[INSERT NAME OF NEW BANK]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Accepted this ___day of

                                        , 20___

	 	 	 	 	 
	BORROWER:	 	 
	 
	 	 	 	 
	US BIO PLATTE VALLEY, LLC

a Nebraska limited liability company	 	 
	 
	 	 	 	 
	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Its:
	 	 	 	 
	 

	 	 	 	 

Accepted this ___day of

                                        , 20___

	 	 	 	 	 
	AGENT:	 	 
	 
	 	 	 	 
	AGSTAR FINANCIAL SERVICES, PCA,

as Agent	 	 
	 
	 	 	 	 
	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Its:
	 	 	 	 
	 

	 	 	 	 

29exv10w2

 

Exhibit 10.2

CREDIT AGREEMENT

by and among

US BIO ORD, LLC,

and

AGSTAR FINANCIAL SERVICES, PCA,

as Administrative Agent,

and

the Banks named herein,

dated

as of

February 7, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I DEFINITIONS AND ACCOUNTING MATTERS
	 	 	 	 
	Section 1.01 Certain Defined Terms
	 	 	1	 
	Section 1.02 Accounting Matters
	 	 	17	 
	Section 1.03 Construction
	 	 	17	 
	 
	 	 	 	 
	ARTICLE II AMOUNTS AND TERMS OF THE LOANS
	 	 	 	 
	Section 2.01 The Loans
	 	 	17	 
	Section 2.02 Construction Loan
	 	 	18	 
	Section 2.03 Conversion of Construction Loan Into Term Loan
	 	 	23	 
	Section 2.04 Conversion of Construction Loan Into Term Revolving Loan
	 	 	25	 
	Section 2.05 Revolving Line of Credit Loan
	 	 	28	 
	Section 2.06 Swingline Loan
	 	 	31	 
	Section 2.07 Evidence of Debt
	 	 	33	 
	Section 2.08 Letters of Credit
	 	 	34	 
	Section 2.09 Obligations Several
	 	 	36	 
	Section 2.10 Non-Receipt of Funds by the Agent
	 	 	36	 
	Section 2.11 Adjustments to Interest Rate
	 	 	36	 
	Section 2.12 Changes in Law Rendering Certain LIBOR Rate Loans Unlawful
	 	 	37	 
	Section 2.13 Payments and Computations
	 	 	37	 
	Section 2.14 Default Interest
	 	 	39	 
	Section 2.15 Late Charge
	 	 	40	 
	Section 2.16 Prepayment of Loans
	 	 	40	 
	Section 2.17 Withholding Taxes
	 	 	40	 
	Section 2.18 Withholding Tax Exemption
	 	 	41	 
	Section 2.19 Maximum Amount Limitation
	 	 	42	 
	Section 2.20 Banks Records
	 	 	42	 
	Section 2.21 Funding of Advances
	 	 	42	 
	Section 2.22 Participation Obligations Absolute; Failure to Fund Participation
	 	 	42	 
	Section 2.23 Farm Credit System Entity Equity Interests
	 	 	43	 
	Section 2.24 Compensation
	 	 	43	 
	Section 2.25 Excess Cash Flow
	 	 	44	 
	Section 2.26 Administrative Fee
	 	 	44	 
	Section 2.27 Commitment Fee
	 	 	45	 
	Section 2.28 Mitigation Obligations; Replacement of Banks
	 	 	45	 
	Section 2.29 Reserves on LIBOR Rate Loans
	 	 	46	 
	Section 2.30 Debt Service Reserve Account
	 	 	46	 
	Section 2.31 Commitment Termination
	 	 	47	 
	 
	 	 	 	 
	ARTICLE III CONDITIONS PRECEDENT
	 	 	 	 
	Section 3.01 Conditions Precedent to Funding
	 	 	47	 
	Section 3.02 Conditions Precedent to All Advances
	 	 	50	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES
	 	 	 	 
	Section 4.01 Representations and Warranties of the Borrower
	 	 	51	 

ii

 

	 	 	 	 	 
	 	 	Page
	ARTICLE V COVENANTS OF THE BORROWER
	 	 	 	 
	Section 5.01 Affirmative Covenants
	 	 	54	 
	Section 5.02 Negative Covenants
	 	 	63	 
	 
	 	 	 	 
	ARTICLE VI EVENTS OF DEFAULT AND REMEDIES
	 	 	 	 
	Section 6.01 Events of Default
	 	 	69	 
	Section 6.02 Remedies
	 	 	71	 
	Section 6.03 Remedies Cumulative
	 	 	73	 
	 
	 	 	 	 
	ARTICLE VII THE AGENT
	 	 	 	 
	Section 7.01 Authorization and Action
	 	 	73	 
	Section 7.02 Duties and Powers of Agent
	 	 	73	 
	Section 7.03 Obligations of Agent
	 	 	74	 
	Section 7.04 Agent and Affiliates
	 	 	74	 
	Section 7.05 Bank Credit Decision
	 	 	74	 
	Section 7.06 Indemnification
	 	 	75	 
	Section 7.07 Successor Agent
	 	 	75	 
	Section 7.08 Exchange of Information
	 	 	75	 
	Section 7.09 Benefit of the Banks Only
	 	 	75	 
	Section 7.10 Authorized Actions
	 	 	75	 
	 
	 	 	 	 
	ARTICLE VIII MISCELLANEOUS
	 	 	 	 
	Section 8.01 Amendments, etc.
	 	 	76	 
	Section 8.02 Notices, etc.
	 	 	76	 
	Section 8.03 No Waiver; Remedies
	 	 	77	 
	Section 8.04 Costs, Expenses and Taxes
	 	 	77	 
	Section 8.05 Right of Set-off
	 	 	78	 
	Section 8.06 Severability of Provisions
	 	 	78	 
	Section 8.07 Binding Effect; Successors and Assigns; Participations
	 	 	78	 
	Section 8.08 Consent to Jurisdiction
	 	 	80	 
	Section 8.09 Governing Law
	 	 	80	 
	Section 8.10 Banks’ Obligations Several, Not Joint
	 	 	80	 
	Section 8.11 Execution in Counterparts
	 	 	80	 
	Section 8.12 Survival
	 	 	80	 
	Section 8.13 Entire Agreement
	 	 	80	 
	Section 8.14 Waiver of Borrower Rights
	 	 	80	 
	Section 8.15 Waiver of Jury Trial
	 	 	81	 
	Section 8.16 Confidentiality
	 	 	81	 

iii

 

LIST OF SCHEDULES AND EXHIBITS

	 	 	 
	Schedule 2.01
	 	Commitments
	Schedule 2.23
	 	Farm Credit System Entities
	Schedule 3.01(c)
	 	Real Property
	Schedule 4.01(a)
	 	Description of Certain Transactions Related to the Borrower’s Membership Interests (Units)
	Schedule 4.01(f)
	 	Description of Certain Threatened Actions, etc.
	Schedule 4.01(k)
	 	Location of Inventory and Farm Products; Third Parties in Possession; Crops
	Schedule 4.01(l)
	 	Office Locations; Fictitious Names, etc.
	Schedule 4.01(p)
	 	Intellectual Property
	Schedule 4.01(t)
	 	Environmental Compliance
	Schedule 5.02(a)
	 	Description of Certain Liens, Lease Obligations, etc.
	Schedule 5.02(k)
	 	Transactions with Affiliates
	 
	 	 
	Exhibit A
	 	Borrowing Base Certificate
	Exhibit B
	 	Certificate of Substantial Completion
	Exhibit C
	 	Certified Construction Statement
	Exhibit D
	 	Compliance Certificate
	Exhibit E
	 	Form of Construction Note
	Exhibit F
	 	Project Sources and Uses Statement
	Exhibit G
	 	Form of Revolving Line of Credit Note
	Exhibit H
	 	Form of Term Revolving Note
	Exhibit I
	 	Form of Letter of Credit
	Exhibit J
	 	[Reserved]
	Exhibit K
	 	Form of Bank Supplement

iv

 

CREDIT AGREEMENT

     THIS CREDIT AGREEMENT (this “Agreement”), is entered into as of February 7, 2007, by and among
US BIO ORD, LLC, a Nebraska limited liability company (“Borrower”), AGSTAR FINANCIAL SERVICES, PCA
(“AgStar”), the commercial, banking or financial institutions whose signatures appear on the
signature pages hereof or which hereafter become parties hereto pursuant to Section 8.07 (AgStar
and such commercial, banking or financial institutions are sometimes hereinafter collectively the
“Banks” and individually a “Bank”), and AGSTAR FINANCIAL SERVICES, PCA as Administrative Agent (the
“Agent”) for itself and the other Banks.

RECITALS

     A. The Borrower has requested that the Banks extend to it various credit facilities for the
purposes of acquiring, constructing, equipping, furnishing and operating an ethanol production
facility to be located in Valley County, Nebraska (the “Project”).

     B. The Banks have agreed to make such loans to the Borrower pursuant to the terms of this
Agreement.

AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing, intending to be legally bound hereby, and
in consideration of the Banks making one or more loans to the Borrower, the Agent, the Banks, and
the Borrower agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING MATTERS

     Section 1.01. Certain Defined Terms. All capitalized terms used in this Agreement
shall have the following meanings. Terms not otherwise defined in this Agreement shall have the
meanings attributed to such terms in the Uniform Commercial Code as in effect in the State of
Minnesota, as amended from time to time (the “UCC”). All references to dollar amounts shall mean
amounts in lawful money of the United States of America. The terms “include”, “including” and
similar terms are to be construed as if followed by the phrase “without limitation”.

“Accounts” means all of the Borrower’s accounts, as such term is defined in the UCC,
including, the aggregate unpaid obligations of customers and other account debtors to the
Borrower arising out of the sale or lease of goods or rendition of services by the Borrower
on an open account or deferred payment basis.

“Adjustment Date” has the meaning specified in Section 2.02(c).

“Advances” means the Loans or Letters of Credit provided to the Borrower pursuant to this
Agreement.

“Affiliate” means, as to any Person, any other Person: (a) that directly or indirectly,
through one or more intermediaries, controls or is controlled by, or is under common control
with, such Person, or (b) that directly or indirectly beneficially owns or holds ten percent
(10%) or more of any class of voting stock or membership interests (units) having ordinary
voting power for the election of directors (or persons performing similar functions) of such
Person. The term “control” means the possession, directly or indirectly, of the power to
direct or cause direction of

1

 

the management and policies of a Person, whether through the ownership of voting securities,
by contract, or otherwise; provided, however, in no event shall the Banks or any Bank be
deemed an Affiliate of the Borrower or any of its Subsidiaries.

“Affiliated Borrower” means any of US Bio Platte Valley, LLC, US Bio Janesville, LLC, US Bio
Hankinson, LLC, US Bio Dyersville, LLC, US Bio Albert City, LLC or US Bio Woodbury, LLC.

“Agent” means AgStar in its capacity as Agent under any of the Loan Documents, or any
successor Agent appointed pursuant to Section 7.07.

“Agreement” means this Agreement, as amended, restated, supplemented or otherwise modified
from time to time, together with all exhibits and schedules attached hereto or made a part
hereof.

“Allowed Distributions” has the meaning specified in Section 5.02(b).

“Amortization Date” has the meaning specified in Section 2.03(e).

“Availability Date” means the date on which all conditions precedent to the initial Advance
under the Term Revolving Loan or under the Revolving Line of Credit Loan, as the case may
be, are satisfied.

“Banks” has the meaning specified in the preamble and shall include the Swingline Bank and
the Issuer.

“Bank Supplement” has the meaning specified in Section 8.07(b).

“Borrower” has the meaning set forth in the preamble.

“Borrower’s Equity” means funds equal to forty percent (40%) of Project Costs.

“Borrowing Base” means, at any time, the lesser of: (i) Ten Million and No/100 Dollars
($10,000,000.00), or (ii) the sum of: (A) seventy-five percent (75%) of the Borrower’s
Eligible Accounts Receivable, plus (B) seventy-five percent (75%) of the Borrower’s Eligible
Inventory.

“Borrowing Base Certificate” means a certificate, substantially in the form of Exhibit A
attached hereto, properly completed and duly executed by an authorized Senior Officer of the
Borrower.

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial
banks are authorized to close under the Laws of the State of Minnesota, or are required to
be closed in the State of Minnesota, and, if such day relates to any LIBOR Rate Loan, means
any such day on which dealings in dollar deposits are conducted by and between banks in the
applicable offshore dollar interbank market.

“Capital Expenditures” means, for any period, the sum of all amounts that would, in
accordance with GAAP, be included as additions to property, plant and equipment on a
statement of cash flows for the Borrower during such period, with respect to: (a) the
acquisition, construction, improvement, replacement or betterment of land, buildings,
machinery, equipment or of any other

2

 

fixed assets or leaseholds, or (b) other capital expenditures and other uses recorded as
capital expenditures having substantially the same effect.

“Certificate of Substantial Completion” means a Certificate of Substantial Completion,
substantially in the form of Exhibit B hereto or otherwise in form and substance reasonably
acceptable to the Agent, executed by the General Contractor and acknowledged by the Borrower
and the Inspecting Engineer, certifying the date of Substantial Completion of the Work (as
defined in the Design Agreement) under the Design Agreement.

“Certified Construction Statement” means a Certified Construction Statement, substantially
in the form of Exhibit C hereto, or otherwise in form and substance reasonably acceptable to
the Agent, certified by the Borrower and acknowledged by the General Contractor.

“Closing Date” means February 7, 2007.

“City Litigation” means that certain case currently pending in the District Court, Valley
County, Nebraska, as Case # 06-18.

“Code” means the Internal Revenue Code, as amended, and the regulations and published
interpretations thereunder.

“Collateral” means and includes all property and assets granted as collateral security for
the Loans or other indebtedness under the Loan Documents, in favor of the Agent and/or the
Banks, whether real or personal property, whether granted directly or indirectly, whether
granted now or in the future.

“Commitments” means the respective amounts committed to the Borrower by the Banks under this
Agreement, including the Construction Loan Commitment, the Term Loan Commitment, the Term
Revolving Loan Commitment, the Revolving Line of Credit Commitment and the Swingline
Commitment.

“Compliance Certificate” means a certificate, substantially in the form of Exhibit D hereto,
of the Treasurer or other Senior Officer of the Borrower, setting forth the calculations of
current financial covenants set forth in Section 5.01, and: (a) stating the Financial
Statements fairly present in all material respects the financial condition of the Borrower
in accordance with GAAP (subject to year end adjustments and the absence of footnotes with
respect to unaudited interim Financial Statements) and, other than the unaudited interim
Financial Statements, have been prepared in accordance with GAAP, and (b) stating whether
they have knowledge of the existence of any Event of Default as of the date of the
Compliance Certificate, and if so, stating in reasonable detail the facts with respect
thereto.

“Construction Advance” means any Advance for the payment of Project Costs made pursuant to
Section 2.02.

“Construction Contracts” means any and all material written contracts between the Borrower
and any Contractor relating in any way to the construction of the Project, including the
performing of labor or the furnishing of standard or specially fabricated materials in
connection therewith.

“Construction Documents” has the meaning specified in the Design Agreement.

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“Construction Letters of Credit” has the meaning specified in Section 2.02(e).

“Construction Letter of Credit Liabilities” means, at any time, the aggregate maximum amount
available to be drawn under all outstanding Construction Letters of Credit (in each case,
determined without regard to whether any conditions to drawing could then be met) and all
unreimbursed drawings under all Construction Letters of Credit.

“Construction Letter of Credit Usage” means, as of any date of determination, the sum of (i)
the maximum aggregate amount which is available for drawing under all Construction Letters
of Credit then outstanding, and (ii) the aggregate amount of all drawings under Construction
Letters of Credit honored by the Issuer and not theretofore reimbursed by or on behalf of
the Borrower.

“Construction Loan” means the loan from the Banks to the Borrower in an amount not to exceed
Forty-six Million Five Hundred Thousand and No/100 Dollars ($46,500,000.00), pursuant to the
terms and conditions of this Agreement.

“Construction Loan Commitment” means, with respect to any Bank, the amount set forth as the
“Construction Loan Commitment” of such Bank opposite such Bank’s name on: (a) Schedule 2.01
hereto or (b) after the execution of a Bank Supplement, the signature page of the then most
recent Bank Supplement to which such Bank is a party, as amended from time to time.

“Construction Loan Exposure” means, with respect to any Bank as of any date of
determination, (i) prior to the termination of the Construction Loan Commitments, such
Bank’s Construction Loan Commitment and (ii) after the termination of the Construction Loan
Commitments, the sum of (a) the aggregate outstanding principal amount of the Construction
Loans of such Bank, (b) in the case of the Issuer, the aggregate Construction Letter of
Credit Usage in respect of all Construction Letters of Credit issued by such Bank (net of
any participations by Banks in such Construction Letters of Credit) and (c) the aggregate
amount of all participations held by such Bank in any outstanding Construction Letters of
Credit or any unreimbursed drawing under any Construction Letter of Credit.

“Construction Note” means a promissory note, substantially in the form of Exhibit E hereto,
executed by the Borrower pursuant to the terms and conditions of this Agreement.

“Contractor” means and includes any Person, including the General Contractor, engaged to
work on or to furnish labor, materials or supplies for the Project.

“Conversion Date” means 120 days after the date of Substantial Completion certified by the
General Contractor in the Certificate of Substantial Completion.

“County Litigation” means that certain case currently pending in the District Court, Valley
County, Nebraska, as Case # 05-47.

“Current Portion of Long Term Debt” means that portion of Funded Debt payable within one
year from the date of such determination, determined in accordance with GAAP.

“Debt” means without duplication: (a) indebtedness for borrowed money or for the deferred
purchase price of property or services (other than trade payables or accrued liabilities
incurred in the ordinary course of business), (b) obligations as lessee under leases which
shall have been or

4

 

should be, in accordance with GAAP, recorded as capital leases, (c) obligations under
guaranties in respect of, and obligations (contingent or otherwise) to purchase or otherwise
acquire, or otherwise to assure a creditor against loss in respect of, indebtedness or
obligations of others of the kinds referred to in clause (a) or (b) above or (d) below, and
(d) the undrawn amount of letters of credit issued for the Borrower and all unpaid
reimbursement obligations hereunder.

“Debt Service Reserve Account” means that certain Account maintained by the Borrower for the
benefit of the Agent, for the purpose set forth in Section 2.30.

“Deed of Trust” means that certain Construction Security Agreement/Deed of Trust, Security
Agreement, Assignment of Leases and Rents and Fixture Filing of even date herewith, executed
by the Borrower in favor of the Agent, for the benefit of the Banks, which creates a Lien on
the Real Property, as the same may be amended, restated, supplemented or otherwise modified
from time to time.

“Default” shall mean any event, fact, circumstance or condition that, after any requirement
for the giving of applicable notice or passage of time or both has been satisfied, would
constitute, be or result in an Event of Default.

“Defaulting Bank” means any Bank that (a) has failed to fund any portion of the Construction
Loan or the Revolving Loans, including Letters of Credit, required to be funded by it
hereunder within two (2) Business Days of the date required to be funded by it hereunder,
(b) has otherwise failed to pay over to the Agent or any other Bank any other amount
required to be paid by it hereunder within two (2) Business Days of the date when due,
unless such amount is the subject of a good faith dispute or (c) has been deemed insolvent
or become the subject of a bankruptcy or insolvency proceeding.

“Default Rate” means the lesser of: (a) the Maximum Rate; or (b) the rate per annum which
shall from day-to-day be equal to two percent (2%) in excess of the then applicable rate of
interest under this Agreement or the applicable Note, if any.

“Design Agreement” means that certain Lump Sum Design-Build Contract, dated as of January 6,
2006, between the Borrower and the General Contractor, as the same may be amended, restated,
supplemented or otherwise modified from time to time.

“DGS” means distillers grains.

“Disbursing Account” means a deposit account designated by the Agent for purposes of making
all Advances under the Disbursing Agreement.

“Disbursing Agreement” means the Disbursing Agreement of even date herewith, executed by the
Borrower and the Agent, as the same may be amended, restated, supplemented or otherwise
modified from time to time .

“Distribution” means any dividend, distribution or similar payment or transfer of property
by the Borrower to any member of the Borrower in its capacity as such.

“Draw Request” means a request for an Advance against the Construction Note prior to the
Conversion Date, submitted by the Borrower to the Agent, in accordance with the terms and
conditions of the Disbursing Agreement.

5

 

“EBITDA” means for any period, the total of the following each calculated without
duplication for the Borrower for such period: (a) Net Income, plus (b) any provision for
(or less any benefit from) Income Taxes included in determining such Net Income, plus (c)
Interest Expense deducted in determining such Net Income, plus (d) amortization and
depreciation expense deducted in determining such net income all as determined in accordance
with GAAP.

“Eligible Accounts Receivable” means all unpaid Accounts, net of any credits, except that
the following shall not in any event be deemed Eligible Accounts Receivable:

(a) that portion of Accounts unpaid forty-five (45) days or more after the invoice
date;

(b) that portion of Accounts that is disputed or subject to a claim of offset or a
contra account;

(c) that portion of Accounts for which goods giving rise to such Account have not
yet been shipped or for which rendition of services have not yet been performed, as
applicable, by the Borrower to the customer;

(d) Accounts owed by any unit of government, whether foreign or domestic (except
Incentive Payments) unless, with respect to Accounts owed by the government of the
United States, the Federal Assignment of Claims Act of 1940, as amended (31 U.S.C. §
3727 et seq. and 41 U.S.C. § 15 et seq.), has been complied with to the Agent’s
reasonable satisfaction;

(e) Accounts owed by an account debtor located outside the United States unless such
Account is backed by a letter of credit or foreign credit insurance reasonably
acceptable to the Agent which is in the possession of or has been assigned to the
Agent;

(f) Accounts owed by an account debtor that is insolvent, the subject of bankruptcy
proceedings or has gone out of business;

(g) Accounts owed by a member, Guarantor, Affiliate, director, officer or employee
of the Borrower, other than accounts owed by Provista Renewable Fuels Marketing,
LLC, United Bio Energy Ingredients, LLC, or any Affiliated Borrower;

(h) Accounts not subject to a duly perfected Lien in favor of the Agent or which are
subject to any Lien in favor of any Person other than the Agent, other than
Permitted Liens pursuant to Section 5.02(a)(iv) including any payment or performance
bond;

(i) that portion of Accounts that has been restructured, extended, or reduced other
than in the ordinary course of business;

(j) that portion of Accounts that constitutes advertising, finance charges, service
charges or sales or excise taxes; and

(k) Accounts, or portions thereof, otherwise deemed ineligible by the Agent, in its
good faith discretion, exercised in its reasonable business judgment with respect to
which

6

 

the Agent has provided at least two (2) Business Days prior written notice to the
Borrower.

In the event that an Account which was previously an Eligible Account Receivable ceases to
be an Eligible Account Receivable hereunder, the Borrower shall exclude such Account from
Eligible Accounts Receivable on, and at the time of submission to the Agent of, the next
Borrowing Base Certificate.

“Eligible Inventory” means all Inventory held for ultimate sale or lease, or which has been
or will be supplied under contracts of service, or which are raw materials, work in process,
or materials used or consumed in the Borrower’s business, excluding all of the following
Inventory:

(a) covered by documents of title, instruments, or chattel paper when these
documents, instruments and paper are not owned and held by the Borrower or are
subject to competing Liens;

(b) intended to be sold outside of the ordinary course of business;

(c) consigned, sold or leased to others or held on consignment or lease from others
or subject to a bailment;

(d) subject to a competing Lien, other than a Permitted Lien;

(e) paid for in advance with progress payments or any other sums to the Borrower in
anticipation of the sale and delivery of Inventory;

(f) that is obsolete or not salable in the ordinary course of business; and

(g) that the Agent, in its good faith discretion, disqualifies as Eligible
Inventory, exercised in its reasonable business judgment with respect to which the
Agent has provided at least two (2) Business Days prior written notice to the
Borrower.

In the event that Inventory which was previously Eligible Inventory ceases to be Eligible
Inventory hereunder, the Borrower shall exclude such Inventory from Eligible Inventory on,
and at the time of submission to the Agent of, the next Borrowing Base Certificate.

“Environment” means all indoor or outdoor air, surface water, groundwater, surface or
subsurface land, including all fish, wildlife, biota and all other natural resources.

“Environmental Laws” means all federal, state, local, and foreign laws and regulations
relating to pollution or protection of human health or the Environment, including without
limitation, laws relating to Releases or threatened Releases of Hazardous Materials or
otherwise relating to the manufacture, processing, distribution, use, treatment, storage,
transport or handling of Hazardous Materials.

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

“Event of Default” has the meaning specified in Section 6.01.

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“Excess Cash Flow” means for any period EBITDA for such period, less, for such period, the
sum of: (a) voluntary or required payments in respect of Funded Debt, (b) Maintenance
Capital Expenditures, (c) Allowed Distributions, (d) Income Taxes paid in cash, (e) Interest
Expense paid in cash, and (f) non cash income.

“Excess Cash Flow Payment” has the meaning specified in Section 2.25.

“Excess Distributions” has the meaning specified in Section 5.02(b).

“Extraordinary Items” means items which are material and significantly different from the
Borrower’s typical business activities, determined in accordance with GAAP.

“Financial Statements” has the meaning specified in Section 5.01(c).

“Fixed Charge Coverage Ratio” means, as of the last day of any period of twelve consecutive
months, the ratio of (i) EBITDA, in each case for such period, divided by (ii) the sum of
(the Current Portion of Long Term Debt + Interest Expense + Dividends + Distributions + Tax
Distributions + Maintenance Capital Expenditures), in each case for such period.

“Fixed Rate Loan” means that portion of the unpaid principal balance of the Construction
Loan that is converted to a Term Loan which shall accrue interest at a fixed rate pursuant
to Section 2.03(d).

“Food Security Act” means the Food Security Act of 1985, 7 U.S.C. § 1631, as amended, and
the regulations promulgated thereunder.

“Funded Debt” means the principal amount of all Debt of the Borrower having a final maturity
of more than one year from the date of origin thereof (or which is renewable or extendible
at the option of the obligor for a period or periods more than one year from the date of
origin), all determined in accordance with GAAP for the period in question, excluding,
however, for purposes of calculating Excess Cash Flow, the principal amount paid under any
Term Revolving Note or any other revolving line of credit used by Borrower for working
capital purposes if such payment is not accompanied by a permanent reduction in the
commitment for such facility.

“GAAP” means generally accepted accounting principles in effect from time to time, and with
respect to the calculation of covenants set forth in Sections 5.01(d), (e), (f) and (g),
GAAP shall mean generally accepted accounting principles consistent with those applied in
the preparation of the Financial Statements referred to in Section 5.01(c) for the Borrower.

“General Contractor” means Fagen, Inc., a Minnesota corporation, and its successors and
permitted assigns or such other general contractor selected by the Borrower and reasonably
acceptable to the Agent.

“Governmental Authority” means and includes any and all courts, boards, agencies,
commissions, or authorities of any nature whatsoever for any governmental unit (federal,
state, county, district, municipality, city, or otherwise) in existence at the time of
determination.

“Guarantor” means US BioEnergy Corporation, a South Dakota corporation.

8

 

“Guaranty” means that certain Continuing Guaranty of even date herewith given by the
Guarantor for the benefit of the Banks.

“Hazardous Material” means all petroleum and petroleum products (including crude oil or any
fraction thereof), asbestos or asbestos containing materials, and all other materials,
chemicals or substances which are regulated by, form the basis of liability under or are
defined as hazardous, extremely hazardous, toxic or words of similar import, including
materials listed in 49 C.F.R. Section 172.101 and materials regulated under or defined as
hazardous pursuant to any of the following: the Comprehensive Environmental Response,
Compensation, and Liability Act, 42 U.S.C. Section 9601 et seq.; the Federal Water Pollution
Control Act, 33 U.S.C. Section 1251 et seq.; the Clean Air Act, 42 U.S.C. Section 7401 et
seq.; the Toxic Substances Control Act, 15 U.S.C. Section 2601 et seq.; the Emergency
Planning and Community Right-to-Know Act of 1986, 42 U.S.C. Section 11001 et seq.; the Safe
Drinking Water Act, 42 U.S.C. Section 300(f) et seq.; the Hazardous Materials Transportation
Act, 49 U.S.C. Section 1801 et seq.; the Federal Insecticide, Fungicide and Rodenticide Act
7 U.S.C. Section 136 et seq.; the Resource Conservation and Recovery Act of 1976, 42 U.S.C.
Section 6901 et seq.; the Toxic Substances Control Act, 15 U.S.C. Section 2601 et seq.; the
Oil Pollution Act of 1990, 33 U.S.C. Section 2701 et seq.

“Incentive Payments” means any and all federal or state governmental subsidies, payments,
transfers or other benefits, whether now or hereafter established, received, or scheduled to
be received within thirty (30) days, by the Borrower.

“Income Taxes” means applicable federal, state, local or foreign income tax including any
interest, penalty, or addition thereto, whether disputed or not.

“Inspecting Engineer” means BBI International Inc., a Colorado corporation, and its
successors and permitted assigns or such other engineer reasonably acceptable to the Agent.

“Intellectual Property” has the meaning specified in Section 4.01(p).

“Interest Expense” means for any period, the total interest expense of the Borrower
calculated on a consolidated basis in accordance with GAAP.

“Interest Period” means the period commencing on the first day of each calendar month and
shall remain in effect until and including the last day of each calendar month.
Notwithstanding the foregoing: (a) each Interest Period which would otherwise end on a day
which is not a Business Day shall end on the next succeeding Business Day or if such
succeeding Business Day falls in the next succeeding calendar month, on the next preceding
Business Day, (b) any Interest Period which would otherwise extend beyond the Maturity Date
shall end on the Maturity Date, and (c) no Interest Period shall have a duration of less
than one (1) month except the first and last month.

“Inventory” means all of the Borrower’s inventory, as such term is defined in the UCC,
whether now owned or hereafter acquired, whether consisting of whole goods, spare parts or
components, supplies or materials, whether acquired, held or furnished for sale, for lease
or under service contracts or for manufacture or processing, and wherever located.

“Issuer” means (a) AgStar or (b) any successor Issuer pursuant to Section 2.08, in its
capacity as the issuer of Letters of Credit hereunder.

9

 

“Letter of Credit” means the Construction Letters of Credit and the Revolving Letters of
Credit issued by the Issuer pursuant to the terms and conditions of this Agreement.

“Letter of Credit Liabilities” means, at any time, the aggregate maximum amount available to
be drawn under all outstanding Letters of Credit (in each case, determined without regard to
whether any conditions to drawing could then be met) and all unreimbursed drawings under
Letters of Credit.

“LIBOR Rate” (London Interbank Offered Rate) means the rate (rounded upward to the nearest
sixteenth) quoted by the British Bankers Association (the “BBA”) at 11:00 A.M. London time
two (2) Banking Days (as hereinafter defined) before the commencement of the Interest Period
for the offering of U.S. Dollar deposits in the London interbank market for an Interest
Period of one month, as published by Bloomberg or another major information vendor listed on
BBA’s official website. “Banking Day” shall mean a day on which the Banks are 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.

“LIBOR Rate Loan” means any Loan bearing interest at a rate determined by reference to the
LIBOR Rate.

“Lien” means any mortgage, deed of trust, pledge, hypothecation, collateral assignment,
encumbrance, lien (statutory or other) or other security interest of any kind, or any
preference, priority or other security agreement (including any conditional sale or other
title retention agreement and any capital lease having substantially the same economic
effect as any of the foregoing).

“Loan and Carrying Charges” means all commitment fees to the Banks, brokerage fees, standby
fees, interest charges, service fees, attorneys’ fees, contractors’ fees, developers’ fees,
funding fees, title insurance fees and charges, recording fees, registration taxes, real
estate taxes, special assessments, insurance premiums, and utility charges incurred by the
Borrower in the construction of the Project and issuance of the Notes, all costs incurred in
acquisition of the Real Property and any other costs incurred in the development of the
Project.

“Loan Documents” means this Agreement, the Notes, the Guaranty, the Bank Supplements, the
Security Agreement, the Deed of Trust, the Issuer’s letter of credit requests and
reimbursement agreements, and all other agreements, documents, instruments, and certificates
executed by the Borrower delivered to, or in favor of, the Agent or the Banks under this
Agreement or in connection herewith or therewith, including all agreements, documents,
instruments, and certificates delivered in connection with the extension of Advances by the
Banks.

“Loan Obligations” means all obligations, indebtedness, and liabilities of the Borrower to
the Agent or the Banks, including the Reimbursement Obligations, arising pursuant to any of
the Loan Documents, whether now existing or hereafter arising, whether direct, indirect,
related, unrelated, fixed, contingent, liquidated, unliquidated, joint, several, or joint
and several, including the obligation of the Borrower to repay the Advances, interest on the
Advances, and all fees, costs, and expenses (including reasonable attorneys’ fees and
expenses) provided for in the Loan Documents.

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“Loan/Loans” means and includes the Construction Loan, the Term Loan, the Term Revolving
Loan, the Revolving Line of Credit Loan, the Swingline Loan, and any other financial
accommodations extended to the Borrower by the Agent or the Banks pursuant to the terms of
this Agreement.

“Long Term Debt” means indebtedness that matures more than one year after the date of
determination thereof.

“Long Term Marketing Agreement” means any contract, agreement or understanding of the
Borrower having a marketing term of one year or more relating to the sale of any raw
materials, Inventory, products or by-products of the Borrower, and involving gross sales by
the Borrower in excess of One Million and No/100 Dollars ($1,000,000.00) annually.

“Maintenance Capital Expenditures” means all Capital Expenditures made in the ordinary
course of business to maintain existing business operations of the Borrower in any fiscal
year, determined in accordance GAAP.

“Material Adverse Effect” means : (a) a material adverse effect upon the validity or
enforceability of any Loan Document or any material term or condition contained therein; (b)
a material and adverse effect on the condition (financial or otherwise), business assets,
operations, or property of the Borrower and its Subsidiaries taken as a whole; or (c)
material impairment on the ability of the Borrower to perform its obligations under the Loan
Documents.

“Material Contract” means (a) any written contract or written agreement of the Borrower or
any Subsidiary involving monetary liability of or to any Person in an amount in excess of
One Million and No/100 Dollars ($1,000,000.00) per annum, and (b) any other written contract
or written agreement of the Borrower or any Subsidiary, the failure to comply with which
could reasonably be expected to have a Material Adverse Effect; provided, however, that any
contract or agreement which is terminable by a party other than the Borrower or its
Subsidiaries without cause upon notice of ninety (90) days or less shall not be considered a
Material Contract.

“Maturity Date” means the fifth (5th) anniversary of the Conversion Date.

“Maximum Excess Cash Flow Payment” has the meaning specified in Section 2.25.

“Maximum Rate” means the maximum nonusurious interest rate, if any, at any time, or from
time to time, that may be contracted for, taken, reserved, charged or received under
applicable state or federal laws.

“Monthly Payment Date” means the first day of each calendar month.

“Net Income” means net income of the Borrower and its Subsidiaries as determined in
accordance with GAAP.

“Net Worth” means, with respect to the Borrower and its Subsidiaries, the excess of total
assets over total liabilities except subordinated Debt, total assets and total liabilities
each to be determined in accordance with GAAP consistent with those applied in the
preparation of the Financial Statements referred to in Section 5.01(c) for the Borrower.

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“Note/Notes” means and includes the Construction Note, the Term Revolving Note, the
Revolving Line of Credit Note, the Swingline Note, and all other promissory notes executed
and delivered to the Agent or the Banks by the Borrower pursuant to the terms of this
Agreement, as the same may be amended, restated, supplemented, extended or otherwise
modified from time to time.

“Obligations” means the Loan Obligations and/or the Reimbursement Obligations.

“Ordinary Trade Payable Dispute” means trade accounts payable in an aggregate amount not in
excess of One Hundred Thousand and No/100 Dollars ($100,000.00) with respect to the
Borrower, and with respect to which: (a) there exists a bona fide dispute between the
Borrower and the vendor, (b) the Borrower is contesting the same in good faith by
appropriate proceedings, and (c) the Borrower has established appropriate reserves on its
Financial Statements as required by GAAP.

“Outstanding Credit” means at any time of determination the sum of (a) the aggregate amount
of Advances then outstanding (or when calculated with respect to a Bank, the aggregate
amount of Advances made by such Bank), plus (b) the aggregate amount of Letter of Credit
Liabilities (or when calculated with respect to a Bank, including the Agent as a Bank, such
Bank’s participation interest in such Letter of Credit Liabilities), if any.

“Outstanding Construction Advances” means the total Outstanding Credit under Section 2.02.

“Outstanding Revolving Advances” means the total Outstanding Credit under Section 2.05.

“Outstanding Term Revolving Advances” means the total Outstanding Credit under Section 2.04.

“Owner’s Equity” means the Net Worth divided by total assets of the Borrower and its
Subsidiaries, measured initially at the end of the first twelve (12) months after the
Substantial Completion Date, maintained thereafter, and expressed as a percentage.

“Permitted Liens” has the meaning specified in Section 5.02.

“Person” means any individual, corporation, business trust, association, limited liability
company, partnership, joint venture, governmental authority, or other entity.

“Personal Property” means all buildings, structures, equipment, fixtures, improvements,
building supplies and materials and other personal property now or hereafter attached to,
located in, placed in or necessary to the use of the improvements on the Real Property
including all machinery, fixtures, equipment, furnishings, and appliances, as well as all
renewals, replacements, additions, and substitutes thereof, and all products and proceeds
thereof, and including all accounts, instruments, chattel paper, other rights to payment,
money, deposit accounts, insurance proceeds, commodity accounts, investment property and
general intangibles of the Borrower, whether now owned or hereafter acquired.

“Project” means any and all buildings, structures, fixtures, and other improvements made to
the Real Property, and other uses identified in the Project Sources and Uses Statement as
part of the development and construction of an ethanol production facility in Valley County,
Nebraska, for which the Loans to the Borrower are being made hereunder.

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“Project Costs” means the total of all costs of acquiring the Real Property and developing
and constructing the Project as identified in the Project Sources and Uses Statement,
together with all Loan and Carrying Charges.

“Project Sources and Uses Statement” means the statement attached hereto as Exhibit F which
identifies the sources and uses of monies in a total amount of Seventy-seven Million Five
Hundred Thousand and No/100 Dollars ($77,500,000.00) related to the Project.

“Pro Rata Share” means (i) with respect to all payments, computations and other matters
relating to the Term Loan of any Bank, the percentage obtained by dividing (a) the Term Loan
Exposure of such Bank by (b) the aggregate Term Loan Exposure of all Banks, (ii) with
respect to all payments, computations and other matters relating to the Construction Loan
Commitment or Construction Loans of any Bank or any Construction Letters of Credit issued or
participations purchased therein by any Bank, the percentage obtained by dividing (a) the
aggregate Construction Loan Exposure of such Bank by (b) the aggregate Construction Loan
Exposure of all Banks, (iii) with respect to all payments, computations and other matters
relating to the Term Revolving Loan Commitment or Term Revolving Loans of any Bank, the
percentage obtained by dividing (a) the Term Revolving Loan Exposure of such Bank by (b) the
aggregate Term Revolving Loan Exposure of all Banks and (iv) with respect to all payments,
computations and other matters relating to the Revolving Line of Credit Commitment or
Revolving Line of Credit Loans of any Bank or any Letters of Credit issued or participations
purchased therein by any Bank or any participations in any Swingline Loans purchased by any
Bank, the percentage obtained by dividing (a) the Revolving Line of Credit Exposure of such
Bank by (b) the aggregate Revolving Line of Credit Exposure of all Banks. For all other
purposes with respect to each Bank, “Pro Rata Share” means the percentage obtained by
dividing (a) an amount equal to the sum of the Term Loan Exposure, Construction Loan
Exposure, Term Revolving Loan Exposure and Revolving Line of Credit Exposure of such Bank by
(b) an amount equal to the sum of the aggregate Term Loan Exposure, Construction Loan
Exposure, Term Revolving Loan Exposure and Revolving Line of Credit Exposure.

“Quarterly Payment Date” has the meaning specified in Section 2.02.

“Real Property” means that real property located in Valley County, Nebraska, owned by the
Borrower, upon which the Project is to be constructed, and which is described in Schedule
3.01(c) hereto.

“Refunding Advance” means an Advance made pursuant to Section 2.02(p). A Refunding Advance
shall be deemed to be a Construction Advance for all purposes of this Agreement except as
otherwise provided herein.

“Reimbursement Obligation” means the obligation of the Borrower to reimburse the Issuer for
any drawing under a Letter of Credit.

“Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, leaching, dumping, or disposing of Hazardous Material into the
Environment.

“Request for Advance” means any request for a Revolving Advance made pursuant to Section
2.04 or Section 2.05.

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“Required Banks” means at any time, Banks having aggregate Total Percentages in excess of
fifty percent (50%); provided that the Commitments of, held, or deemed held, by any
Defaulting Bank shall be excluded for purposes of making a determination of the Required
Banks.

“Required Debt Service Reserve Deposit Amount” has the meaning specified in the Section
2.30.

“Revolving Advances” means the Term Revolving Loan Advances and the Revolving Line of Credit
Advances.

“Revolving Commitment” means, with respect to any Bank, the total of such Bank’s Term
Revolving Loan Commitment and Revolving Line of Credit Commitment, as amended from time to
time pursuant to the terms of this Agreement.

“Revolving Letters of Credit” has the meaning specified in Section 2.05(h).

“Revolving Letter of Credit Liabilities” means, at any time, the aggregate maximum amount
available to be drawn under all outstanding Revolving Letters of Credit (in each case,
determined without regard to whether any conditions to drawing could then be met) and all
unreimbursed drawings under all Revolving Letters of Credit.

“Revolving Letter of Credit Usage” means, as of any date of determination, the sum of (i)
the maximum aggregate amount which is available for drawing under all Revolving Letters of
Credit then outstanding, and (ii) the aggregate amount of all drawings under Revolving
Letters of Credit honored by the Issuer and not theretofore reimbursed by or on behalf of
the Borrower.

“Revolving Line of Credit Advance” means any Advance made under Section 2.05.

“Revolving Line of Credit Commitment” means, with respect to any Bank, the amount set forth
as the “Revolving Commitment” of such Bank opposite such Bank’s name on: (a) Schedule 2.01
hereto, or (b) after the execution of a Bank Supplement, the signature page of the then most
recent Bank Supplement to which such Bank is a party, as amended from time to time pursuant
to the terms of this Agreement.

“Revolving Line of Credit Exposure” means, with respect to any Bank as of any date of
determination, (i) prior to the termination of the Revolving Line of Credit Commitments,
such Bank’s Revolving Line of Credit Commitment and (ii) after the termination of the
Revolving Line of Credit Commitments, the sum of (a) the aggregate outstanding principal
amount of the Revolving Line of Credit Loans of such Bank, (b) in the case of the Issuer,
the aggregate Revolving Letter of Credit Usage in respect of all Revolving Letters of Credit
issued by such Bank (net of any participations by Banks in such Revolving Letters of
Credit), (c) the aggregate amount of all participations held by such Bank in any outstanding
Revolving Letters of Credit or any unreimbursed drawing under any Revolving Letter of
Credit, (d) in the case of the Swingline Bank, the aggregate outstanding principal amount of
all Swingline Loans (net of any participations therein by other Banks) and (e) the aggregate
amount of all participations therein by such Bank in any outstanding Swingline Loans.

“Revolving Line of Credit Loan” means the line of credit loan from the Banks to the Borrower
in the amount of Ten Million and No/100 Dollars ($10,000,000.00) pursuant Section 2.05.

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“Revolving Line of Credit Loan Maturity Date” means the three hundred sixty-fourth
(364th) day after the Conversion Date.

“Revolving Line of Credit Note” means a promissory note substantially in the form of Exhibit
G hereto, executed by the Borrower pursuant to the terms and conditions of this Agreement.

“Revolving Line of Credit Termination Date” has the meaning specified in Section 2.05(a).

“Revolving Loans” means the Revolving Line of Credit Loan and the Term Revolving Loan and
any other revolving loan provided by the Banks to the Borrower pursuant to this Agreement.

“SARA” means the Superfund Amendment and Reauthorizations Act of 1986, as amended, and all
regulations promulgated thereunder.

“Security Agreement” means that certain Security Agreement of even date herewith executed by
the Borrower in favor of the Agent for the benefit of the Banks, and includes any agreements
which create a Lien on the Collateral, as the same has been and may hereafter be amended,
restated, supplemented or otherwise modified from time to time.

“Senior Officer” means any of Borrower’s Chief Executive Officer, Chief Financial Officer,
President, Treasurer, or any Vice President.

“Subsidiary,” as to any Person, means any corporation or other entity in which more than 50%
of all equity interests is owned directly or indirectly by such Person. Unless otherwise
qualified herein, all references to a “Subsidiary” or “Subsidiaries” in this Agreement shall
refer to a Subsidiary or Subsidiaries of the Borrower.

“Substantial Completion” has the meaning set forth therefor in the Design Agreement.

“Substantial Completion Date” means the date certified by the General Contractor in the
Certificate of Substantial Completion as the date of Substantial Completion of the Work (as
defined in the Design Agreement) under the Design Agreement.

“Swingline Advances” means any Advance made under Section 2.06(b).

“Swingline Bank” means AgStar in its capacity under Section 2.06.

“Swingline Commitment” has the meaning specified in Section 2.06(a).

“Swingline Loans” means the loans made to the Borrower pursuant to Section 2.06, in the
amount of the Swingline Advances.

“Swingline Maturity” has the meaning specified in Section 2.06(d).

“Tax Distributions” has the meaning specified in Section 5.02(b).

“Term Loan” means any amortizing loan provided by the Banks to the Borrower pursuant to
Section 2.03.

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“Term Loan Commitment” means, with respect to any Bank, the amount set forth as the “Term
Loan Commitment” of such Bank opposite such Bank’s name on: (a) Schedule 2.01 hereto, or
(b) after the execution of a Bank Supplement, the signature page of the then most recent
Bank Supplement to which such Bank is a party, as amended from time to time.

“Term Loan Exposure” means, with respect to any Bank, as of the date of any determination,
the outstanding principal amount of the Term Loans of such Bank, provided that, at any time
prior to the making of the Term Loans, the Term Loan Exposure of any Bank shall be equal to
such Bank’s Term Loan Commitment.

“Term Revolving Loan” means the loan from the Banks to the Borrower in the amount of Eleven
Million Six Hundred Twenty-five Thousand and No/100 Dollars ($11,625,000.00), pursuant
Section 2.04.

“Term Revolving Loan Advance” means any Advance made under Section 2.04.

“Term Revolving Loan Commitment” means, with respect to any Bank, the amount set forth as
the “Term Revolving Loan Commitment” of such Bank opposite such Bank’s name on: (a)
Schedule 2.01 hereto, or (b) after the execution of a Bank Supplement, the signature page of
the then most recent Bank Supplement to which such Bank is a party, as amended from time to
time pursuant to this Agreement.

“Term Revolving Loan Exposure” means, with respect to any Bank as of any date of
determination, (i) prior to the termination of the Term Revolving Loan Commitments, such
Bank’s Term Revolving Loan Commitment and (ii) after the termination of the Term Revolving
Loan Commitments, the aggregate outstanding principal amount of the Term Revolving Loans of
such Bank.

“Term Revolving Loan Termination Date” has the meaning specified in Section 2.04(a).

“Term Revolving Note” means a promissory note substantially in the form of Exhibit H hereto,
executed by the Borrower pursuant to the terms and conditions of this Agreement.

“Total Percentage” means, as to any Bank, the percentage which (a) (i) the Term Loan
Exposure of such Bank plus (ii) the Construction Loan Exposure of such Bank plus (iii) the
Term Revolving Loan Exposure of such Bank plus (iv) the Revolving Line of Credit Exposure of
such Bank is of (b) the sum of (i) the aggregate Term Loan Exposure of all Banks plus (ii)
the aggregate Construction Loan Exposure of all Banks plus (iii) the aggregate Term Loan
Revolving Exposure of all banks plus (iv) the aggregate Revolving Line of Credit Exposure of
all Banks; provided that, if and so long as any Bank is a Defaulting Bank, such Bank’s Total
Percentage shall be deemed for purposes of this definition to be reduced to the extent of
the defaulted amount and the Total Percentage of the Issuer or Swingline Bank, as
applicable, shall be deemed for purposes of this definition to be increased to such extent.

“Treasury Regulations” means the temporary and final regulations promulgated pursuant to the
Code.

“US Bio Entity” means and includes US BioEnergy Corporation, a South Dakota corporation, and
each Affiliate thereof at any time from and after the date of execution and delivery of this
Agreement.

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“Working Capital” means the current assets of the Borrower less the current liabilities of
the Borrower as determined in accordance with GAAP.

     Section 1.02. Accounting Matters. All accounting terms not specifically defined
herein shall be construed in accordance with GAAP, except as otherwise stated herein. To enable
the ready and consistent determination of compliance by the Borrower with its obligations under
this Agreement, the Borrower will not change the manner in which either the last day of its fiscal
year or the last days of the first three fiscal quarters of its fiscal years is calculated. If at
any time after the Closing Date any change in GAAP would have a material effect on the computation
of any financial ratio set forth in this Agreement, and either the Borrower (at the time of
delivery of such Financial Statements) or the Agent shall so request, and in any such case within
60 days of delivery of such Financial Statements, the Agent, the Banks and the Borrower shall
negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof
in light of such change in GAAP (subject to the approval of the Agent); provided that, until so
amended (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior
to such change, and (ii) in the event that such change in GAAP materially modifies any item in the
Financial Statements, the Borrower shall provide to the Agent Financial Statements setting forth a
reconciliation between calculations of such ratio or requirement made before and after giving
effect to such change in GAAP; provided further that such reconciliation shall be required to be
provided only for the four fiscal quarters following such change.

     Section 1.03. Construction. Wherever herein the singular number is used, the same
shall include the plural where appropriate, and words of any gender shall include each other gender
where appropriate. The headings, captions or arrangements used in any of the Loan Documents are,
unless specified otherwise, for convenience only and shall not be deemed to limit, amplify or
modify the terms of the Loan Documents, nor affect the meaning thereof. Unless otherwise expressly
provided herein, references to agreements (including this Agreement) and other contractual
instruments shall be deemed to include all subsequent amendments, restatements and other
modifications thereto, but only to the extent such amendments, restatements and other modifications
are not prohibited by the terms of any Loan Document.

ARTICLE II

AMOUNTS AND TERMS OF THE LOANS

     Section 2.01. The Loans. Subject to the terms and conditions of this Agreement and in
reliance upon the representations and warranties set forth in this Agreement, the Banks have agreed
to lend to Borrower and Borrower has agreed to borrow from the Banks the following amounts, for the
purposes set forth in Schedule 2.01, and as further described below:

          (a) Construction Loan. The Banks have agreed to lend to the Borrower an amount not to
exceed Forty-six Million Five Hundred Thousand and No/100 Dollars ($46,500,000.00) for Project
Costs, pursuant to the terms and conditions set forth in Section 2.02, and the Construction Note;

          (b) Conversion of Construction Loan Into Term Loan and Term Revolving Loan. The Banks
agree to convert the Construction Loan into a Term Loan and Term Revolving Loan on the Conversion
Date, pursuant to the terms and conditions set forth in Sections 2.03 and 2.04, and the
Construction Note;

          (c) Term Revolving Loan. The Banks agree to lend to the Borrower, as of the
Conversion Date, and from time to time thereafter on a revolving basis, an amount not to exceed
Eleven

17

 

Million Six Hundred Twenty-five Thousand and No/100 Dollars ($11,625,000.00), pursuant to the terms
and conditions set forth in Section 2.04, and the Term Revolving Note;

          (d) Revolving Line of Credit Loan. The Banks agree to lend to the Borrower, as of the
Conversion Date, and from time to time thereafter on a revolving basis, an amount not to exceed Ten
Million and No/100 Dollars ($10,000,000.00), pursuant to the terms and conditions set forth in
Section 2.05, and the Revolving Line of Credit Note; and

          (e) Swingline Loan. The Swingline Bank agrees to lend to the Borrower, from the
Conversion Date, and from time to time thereafter on a revolving basis, an amount not to exceed One
Million and No/100 Dollars ($1,000,000.00), pursuant to the terms and conditions set forth in
Section 2.06, and the Swingline Note.

          Section 2.02. Construction Loan. The provisions of this Section 2.02 shall apply
until the earlier of the Conversion Date or repayment in full of the Construction Loan.

          (a) Amount of Construction Loan. On the terms and conditions set forth in this
Agreement, the Banks agree to make a Construction Loan to the Borrower, by means of multiple
advances in an aggregate amount not to exceed Forty-Six Million Five Hundred Thousand and No/100
Dollars ($46,500,000.00). Under the Construction Loan, amounts borrowed and repaid or prepaid may
not be re-borrowed.

          (b) Purpose. Advances under the Construction Loan may be used to fund the payment of
Project Costs, including closing costs and fees associated with the Construction Loan. The
Borrower agrees that the proceeds of the Construction Loan are to be used only for the purposes set
forth in this Section 2.02(b); provided, that the proceeds of a Refunding Advance may be used to
pay a Distribution to US BioEnergy Corporation.

          (c) Interest Rate. Subject to the provisions of this Agreement, the Construction Loan
shall bear interest at a rate per annum equal to the LIBOR Rate plus three hundred fifteen (315)
basis points. The rate of interest due hereunder shall initially be determined as of the date
hereof and shall thereafter be adjusted as and when the LIBOR Rate changes. All such adjustments
to the rate of interest shall be made and become effective as of the first day of each calendar
month (each such day hereinafter being referred to as an “Adjustment Date”) and shall remain in
effect until and including the last day of each calendar month. All such adjustments to said rate
shall be made and become effective as of each subsequent Adjustment Date, and said rate as adjusted
shall remain in effect until and including the day immediately preceding the next Adjustment Date.
Interest hereunder shall be computed on the basis of a year of three hundred sixty five (365) days,
but charged for actual days principal is outstanding. In no event shall the applicable rate exceed
the Maximum Rate.

          (d) Disbursement of Construction Loan. Disbursements of the Construction Loan will be
made by the Agent and the Banks in the manner provided in the Disbursing Agreement; provided,
however, that the disbursement of the proceeds of the Refunding Advance shall not be subject to the
Disbursing Agreement. Subject to Sections 2.02(e) and 2.02(k), and other than disbursements of the
proceeds of the Refunding Advance, all disbursements will be made by wire transfer of such funds to
the deposit account of the Agent in the amount of each Draw Request which is approved pursuant to
the Disbursing Agreement. All Construction Loan funds (other than the proceeds of Refunding
Advances) will be considered to have been advanced to and received by the Borrower upon, and
interest on such funds will be payable by the Borrower from and after, their deposit in the
Disbursing Account. Construction Advances may only be made until and including the Conversion Date
after which no further

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Construction Advances may be made. No amounts may be readvanced under the Construction Loan. Any
principal repayment by the Borrower will reduce the Banks’ Construction Loan Commitments by the
amount of any such principal repayment. The proceeds of the Refunding Advance shall be deposited
in the account notified by the Borrower to the Agent. 

          (e) Letter of Credit Commitment to Issue. The Borrower may utilize the Construction
Loan Commitments by requesting that the Issuer issue, and the Issuer, subject to the terms and
conditions of this Agreement, may, in its sole discretion, issue letters of credit under the
Construction Loan for the Borrower’s account (such letters of credit being hereinafter referred to
collectively as the “Construction Letters of Credit”); provided, however, that:

               (i) the aggregate amount of outstanding Construction Letter of Credit Liabilities under the
Construction Loan shall not at any time exceed Five Million and No/100 Dollars ($5,000,000.00);

               (ii) the sum of the outstanding Construction Letters of Credit plus the outstanding
Construction Advances shall not at any time exceed the maximum amount of the Construction Loan; and

               (iii) the expiration date of a Construction Letter of Credit advanced under the Construction
Loan shall be no later than the Conversion Date.

The issuance of any Construction Letter of Credit under this Section 2.02(e) is subject to the
provisions of Section 2.08.

          (f) Conditions Precedent to Construction Advances. The Banks’ obligation to make
Construction Advances shall be subject to the following conditions precedent:

               (i) Representations and Warranties. The representations and warranties set forth in
this Agreement are true and correct in all material respects as of the date of the request for any
Construction Advance to the same extent and with the same effect as if made at and as of the date
thereof, except as disclosed in writing to the Agent and the Banks, and except to the extent such
representations and warranties relate to a specific earlier date in which case such representations
and warranties shall have been true and correct in all material respects as of such earlier date;

               (ii) Draw Request. The Borrower has submitted to the Agent a Draw Request for each
such Construction Advance, which such Draw Request shall comply with the requirements contained in
this Agreement and the Disbursing Agreement;

               (iii) Compliance With Disbursing Agreement. All of the terms and conditions of the
Disbursing Agreement have been satisfied with respect to each such Construction Advance;

               (iv) Certified Construction Statement. The Borrower shall furnish to the Agent an
updated Certified Construction Statement setting forth the Contractor(s) providing services or
materials with respect to specific portions of the construction of the Project and setting forth
the amounts actually incurred and paid, or to be incurred, to such Contractor(s) in completing
construction of the Project. Such updated Certified Construction Statement shall be certified by
the Borrower and acknowledged by the Inspecting Engineer to be a true, complete and accurate
account of all costs actually

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incurred and an accurate estimate of all other Project Costs actually incurred and all Project
Costs to be incurred in the future;

               (v) No Defaults. No Event of Default has occurred and is continuing;

               (vi) Loan in Balance. The Construction Loan is in balance, as required by the
provisions of Section 2.02(g) and the Disbursing Agreement;

               (vii) Government Action. No license, permit, permission or authority necessary for
the construction or operation of the Project has been revoked or challenged by or before any
Governmental Authority, which revocation or challenge could reasonably be expected to have a
Material Adverse Effect;

               (viii) Construction Contracts. All material Construction Contracts have been properly
executed and assigned to the Agent for the benefit of the Banks;

               (ix) Litigation. Except for the City Litigation and the County Litigation, there are
no other pending or, to the knowledge of the Borrower, threatened actions or proceedings against
the Borrower before any Governmental Authority (i) which could reasonably be expected to have a
Material Adverse Effect or (ii) with respect to any Loan Document. As of the Closing Date, there
are no outstanding judgments against the Borrower; and

               (x) No Order. No order, judgment, decree or ruling has been entered in the City
Litigation or the County Litigation which may result in the suspension, revocation, vacation or
impairment of any ordinance, license, permit, permission or authority necessary for the
construction or operation of the Project.

          (g) Loan in Balance, Deposit of Funds by Borrower. The Borrower shall keep the
Construction Loan in balance as provided in this Section 2.02(g). If the Agent at any time
reasonably determines that the amount of the undisbursed Construction Loan proceeds and the
unfunded Borrower’s Equity will not be sufficient to fully pay for all costs required to complete
the construction of the Project in accordance with the Construction Documents, and for all Project
Costs to be incurred by the Borrower, whether such deficiency is attributable to changes in the
work of construction or in the Construction Documents or to any other cause, the Agent may make
written demand on the Borrower to deposit in an escrow fund to be established with the Agent an
amount equal to the amount of the shortage reasonably determined by the Agent. The Borrower shall
then deposit or cause to be deposited the required funds, which deposit can be funded through,
among other sources, proceeds of loans permitted pursuant to Sections 5.02(e)(viii) or 5.02(e)(xi)
        , with the Agent within ten (10) days after the date of the Agent’s written demand. No further
disbursements shall be made by the Agent until those funds are deposited by the Borrower in the
escrow fund. Whenever the Agent has any such funds on deposit in such escrow fund, it shall make
all future advances for Project Costs from the escrow fund before making any further Advances under
the Construction Loan.

          (h) [Reserved]

          (i) Suspension of Construction. If the Agent in reasonably good faith determines that
any work or materials do not materially conform to the Construction Documents, the Agent may
require the work to be stopped and withhold disbursements until the matter is corrected. In such
event, the Borrower will promptly correct the work to the Agent’s reasonable satisfaction.
Provided Agent’s actions were reasonable, in good faith, and the work or materials did not
materially conform to the

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Construction Documents , no such action by the Agent or the Banks will affect the Borrower’s
obligation to complete the Project on or before the Substantial Completion Date.

          (j) Inspections. The Borrower and the Inspecting Engineer shall be responsible for
making inspections of the Project during the course of construction and shall determine to their
own satisfaction that the work done or materials supplied by the Contractors to whom payment is to
be made directly out of each Construction Advance has been properly done or supplied in accordance
with the applicable contracts with such Contractors. If any material work done or materials
supplied by a Contractor are not satisfactory to the Borrower, the Borrower will promptly notify
the Agent in writing of such fact. It is expressly understood and agreed that the Agent or its
authorized representative may conduct such inspections of the Project as it may deem necessary for
the protection of the Agent’s or the Banks’ interest, upon reasonable prior notice and at
reasonable times and, specifically, an architectural or engineering firm acceptable to the Agent
may, at the option of the Agent and at the expense of the Borrower, conduct such periodic
inspections of the Project and prepare such written progress reports during the period of
construction, as the Agent may reasonably request, provided that no inspection shall unreasonably
delay progress on or interfere with the Project or the Borrower’s use of the Real Property. Any
inspections which may be made of the Project by the Agent or its representative will be made, and
all certificates issued by the Agent’s representative will be issued, solely for the benefit and
protection of the Agent and the Banks, and the Borrower will not rely thereon. The Agent is under
no duty to supervise or inspect construction or examine any books and records. Any inspection or
examination by the Agent is for the sole purpose of protecting the Agent’s and the Banks’ security
and preserving the Agent’s and the Banks’ rights under this Agreement. No default of the Borrower
will be waived by any inspection by the Agent. In no event will any inspection by the Agent be a
representation that there has been or will be compliance with the Plans or Specifications or that
the construction is free from defective materials or workmanship.

          (k) Banks’ Application of Loan Proceeds. Notwithstanding the provisions of Section
2.02(d), the Agent may elect, upon ten (10) days’ prior written notice to the Borrower, to use the
Construction Loan funds to pay, as and when due, any Construction Loan fees owing to the Banks,
interest on the Construction Loan, release charges under prior deeds of trust on the Property, and
legal fees and disbursements of the Agent’s attorneys which are payable by the Borrower, unless the
Borrower causes such amount(s) to be paid within said ten (10) days. Such payments may be made, at
the option of the Agent, by debiting or charging the Construction Loan funds in the amount of such
payments.

          (l) Cost Information. All Advances under the Construction Loan will be based upon the
Project Costs as set forth in the Certified Construction Statement. In the event that the Borrower
becomes aware of any change in the approved Project Costs, which would increase the total Project
Cost in excess of Fifty Thousand and No/100 Dollars ($50,000.00) above the amount shown on the
Certified Construction Statement, the Borrower shall immediately notify the Agent in writing and
promptly submit to the Agent for its approval a revised Certified Construction Statement. No
further disbursements need be made by the Agent unless and until the revised Certified Construction
Statement is approved by the Agent. The Agent reserves the right to approve or disapprove any
revised Certified Construction Statement in its reasonable discretion if any such increase in total
Project Costs is in excess of $50,000.

          (m) No Waiver. Any waiver by the Agent of any condition of disbursement must be
expressly made in writing. The making of a disbursement prior to fulfillment of one or more
conditions thereof shall not be construed as a waiver of such conditions, and the Agent reserves
the right to require their fulfillment prior to making any subsequent disbursements.

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          (n) Construction Loan Payments. The Borrower will pay interest on the Construction
Loan (i) quarterly in arrears on the first day of each January, April, July and October (each such
date a “Quarterly Payment Date”), commencing on the first Quarterly Payment Date following the date
on which the first Advance is made on the Construction Loan, and continuing on each Quarterly
Payment Date thereafter until the Conversion Date. If any Quarterly Payment Date is not a Business
Day, then the interest payment then due shall be paid on the next Business Day and shall continue
to accrue interest until paid. On the Conversion Date, all outstanding accrued interest shall be
paid in full.

          (o) Construction Loan Term. The Construction Loan shall run for a period beginning on
the Closing Date and ending on the Conversion Date. On the Conversion Date, the amount of the then
unpaid principal balance of the Construction Loan and any and all other amounts due and owing
hereunder or under any other Construction Loan document relating to this Construction Loan shall be
due and payable, except for that part, if any, of the Construction Loan which is converted into a
Term Loan or a Term Revolving Loan pursuant to the terms of this Agreement.

          (p) Refunding Advance. Notwithstanding anything in this Agreement or any Loan
Document to the contrary, the Banks agree to make a single Refunding Advance to the Borrower on any
Business Day from and after the Closing Date; provided that written notice is given by the Borrower
to the Agent before 12:00 Noon (Minneapolis, MN time) on a Business Day which is at least one (1)
Business Days prior to the date such Refunding Advance is to be made. Such notice will specify the
amount of the Refunding Advance (which shall not exceed the aggregate Construction Loan
Commitment), the date the Refunding Advance is to be made, and the account(s) in which the proceeds
of such Advance are to be deposited. The amount so requested by the Borrower shall be made
available to the Borrower subject to satisfaction of the conditions set forth below in this Section
2.02(p) (and no other conditions contained in this Agreement or any Loan Document), by (i) the
Banks depositing the same in same day funds in an account(s) specified of the Borrower or (ii) the
Banks wire transferring such funds to a Person designated by the Borrower in writing. The making
of the Refunding Advance shall be subject to the satisfaction of the following conditions precedent
as of the date the Refunding Advance is made. Notwithstanding the foregoing, in the event an
order, judgment, decree or ruling has been entered in the City Litigation or the County Litigation
which may result in the suspension, revocation, vacation or impairment of any ordinance, license,
permit, permission or authority necessary for the construction or operation of the Project, the
Lender is not obligated to make the Refunding Advance to the Borrower.

               (i) Representations and Warranties. The representations and warranties set forth in
this Agreement are true and correct in all material respects as of the Conversion Date to the same
extent and with the same effect as if made at and as of the date thereof, except as disclosed in
writing to the Agent and the Banks, and except to the extent such representations and warranties
relate to a specific earlier date in which case such representations and warranties shall have been
true and correct in all material respects as of such earlier date;

               (ii) Notice of Borrowing. The Borrower shall have submitted to the Agent a notice of
borrowing for the Refunding Advance which notice of borrowing shall be executed by the Borrower and
shall contain representations by the Borrower as follows: (1) the Construction Loan shall be in
balance immediately after giving effect to the making of the Refunding Advance and (2) lien waivers
have been obtained for all Project Costs outstanding as of such date (in excess of $10,000), as of
the date of such notice.

               (iii) No Defaults. No Event of Default has occurred and is continuing.

22

 

                              (iv) Loan in Balance. The Construction Loan shall be in balance as required by the
provisions of Section 2.02(g).

                              (v) Government Action. No license, permit, permission or authority necessary for the
operation of the Project has been revoked or challenged by or before any Governmental Authority,
which revocation or challenge could reasonably be expected to have a Material Adverse Effect; and
the Borrower shall have obtained and provided the Agent with copies of all permits and government
approvals reasonably requested by Agent relating to the use and operation of the Project (including
a storm water discharge permit for industrial operations, a letter approving the track design
concept, water discharge permit, ethanol holding tank permits, and an ATF permit) other than those
approvals issued in the ordinary course after commencement of operations;

                              (vi) Marketing Agreements. The Borrower has executed marketing agreements for all
ethanol and DGS to be produced at the Project and provided the Agent with collateral assignments of
all such agreements in form and substance which are reasonably satisfactory to the Agent and its
counsel and acknowledged by the non-Borrower party to all such agreements; and

                              (vii) Litigation. Except for the City Litigation and the County Litigation, there are
no other pending or, to the knowledge of the Borrower, threatened actions or proceedings against
the Borrower before any Governmental Authority (i) which could reasonably be expected to have a
Material Adverse Effect or (ii) with respect to any Loan Document. As of the Closing Date, there
are no outstanding judgments against the Borrower.

     Section 2.03. Conversion of Construction Loan Into Term Loan. Subject to the terms
and conditions contained in this Agreement, on the Conversion Date a portion of the Construction
Loan may be converted into a Term Loan by the Borrower.

          (a) Conditions Precedent. The Banks shall not be obligated to convert any part of the
Construction Loan into a Term Loan unless and until:

                              (i) Completion of Project. a Certificate of Substantial Completion shall have been
delivered to the Agent, and Substantial Completion of the Project shall have occurred;

                              (ii) Amount of Term Loan. The maximum amount of the Construction Loan which may be
converted to a Term Loan shall be Thirty-four Million Eight Hundred Seventy-five Thousand and
No/100 Dollars ($34,875,000.00);

                              (iii) Outstanding Construction Advances Exceed Term Loan. In the event that the
Outstanding Construction Advances exceed the amount of the maximum Term Loan to be made by the
Banks, including those portions of the Construction Loan which are eligible for conversion into the
Term Revolving Loan pursuant to this Agreement, the Borrower shall immediately repay the amount of
the Outstanding Construction Advances which are not being converted into a Term Loan;

                              (iv) ALTA Survey. The Borrower shall deliver to the Agent an “as-built” survey of the
Real Property which: (A) sets forth the location and exterior lines of the Real Property and
includes any and all improvements completed on the Real Property, (B) demonstrates compliance with
all applicable setback requirements, (C) demonstrates that the Project is entirely within the
exterior boundaries of the Real Property and any building restriction lines and does not encroach
upon any easements or rights-of-way, and (D) contains such other information as the Agent may
reasonably request;

23

 

                              (v) Representations and Warranties. The representations and warranties set forth in
this Agreement are true and correct in all material respects as of the Conversion Date to the same
extent and with the same effect as if made at and as of the date thereof, except as disclosed in
writing to the Agent and the Banks, and except to the extent such representations and warranties
relate to a specific earlier date in which case such representations and warranties shall have been
true and correct in all material respects as of such earlier date;

                              (vi) No Defaults. No Event of Default has occurred and is continuing;

                              (vii) Government Action. No license, permit, permission or authority necessary for
the operation of the Project has been revoked or challenged by or before any Governmental
Authority, which revocation or challenge could reasonably be expected to have a Material Adverse
Effect; and the Borrower shall have obtained and provided the Agent with copies of all permits and
government approvals reasonably requested by Agent relating to the use and operation of the Project
(including a storm water discharge permit for industrial operations, a letter approving the track
design concept, water discharge permit, ethanol holding tank permits, and an ATF permit) other than
those approvals issued in the ordinary course after commencement of operations;

                              (viii) Marketing Agreements. The Borrower has executed marketing agreements for all
ethanol and DGS to be produced at the Project and provided the Agent with collateral assignments of
all such agreements in form and substance which are reasonably satisfactory to the Agent and its
counsel and acknowledged by the non-Borrower party to all such agreements; and

                              (ix) Litigation. No order, judgment, decree or ruling has been entered in the City
Litigation or the County Litigation which may result in the suspension, revocation, vacation or
impairment of any ordinance, license, permit, permission or authority necessary for the
construction or operation of the Project.

          (b) Term Loan Interest Rate. Subject to the provisions of Sections 2.03 and 2.04, the
portion of the Term Loan that has not been converted to a Fixed Rate Loan pursuant to Section
2.03(d) shall bear interest at a rate equal to the LIBOR Rate plus two hundred ninety (290) basis
points. The rate of interest due hereunder shall initially be determined as of the Conversion Date
and shall thereafter be initially adjusted on the first day of the immediately succeeding calendar
month. All such adjustments to the rate of interest shall be made and become effective as of the
first Adjustment Date following the Conversion Date. All such adjustments to said rate shall be
made and become effective as of each subsequent Adjustment Date, and said rate as adjusted shall
remain in effect until and including the day immediately preceding the next Adjustment Date.
Interest hereunder shall be computed on the basis of a year of three hundred sixty five (365) days,
but charged for actual days principal is outstanding. In no event shall the applicable rate exceed
the Maximum Rate.

          (c) Term Loan Term. The Term Loan term shall run for a period beginning on the
Conversion Date and ending on the Maturity Date.

          (d) Conversion to Fixed Rate Loan. Subject to the provisions of Sections 2.03(a) and
2.04, on the Conversion Date the Borrower may convert up to but not more than fifty percent (50%)
of the Outstanding Construction Advances to a Fixed Rate Loan, with the consent of the Agent, which
consent shall not be unreasonably withheld, bearing interest at a rate equal to two hundred fifty
(250) basis points in excess of the five year LIBOR swap rate in effect on the Conversion Date, or
another rate agreed upon by the Agent and the Borrower. The Borrower shall provide written notice
to the Agent at

24

 

least thirty (30) days prior to the Conversion Date of its intention to convert any portion of the
Term Loan to a Fixed Rate Loan. Such written notice shall specify the specific dollar amount that
Borrower is electing to convert to a Fixed Rate Loan. Any amount subject to a fixed rate of
interest pursuant to this Section shall not be subject to any adjustments under Section 2.11.

          (e) Repayment of Term Loan. Beginning on the first (1st) day of the month
following the month in which the Conversion Date occurs, and continuing on the first
(1st) day of each succeeding month thereafter until the seventh (7th) month
after the Conversion Date, the Borrower shall pay to the Agent for the account of the Banks monthly
payments of accrued interest. Beginning on the first (1st) day of the seventh
(7th) month following the Conversion Date (the “Amortization Date”), and continuing on
the first (1st) day of each succeeding month thereafter until the Maturity Date, the
Borrower shall pay to the Agent for the account of the Banks equal monthly payments of principal
and accrued interest in such amounts as would be required to fully amortize the entire outstanding
principal balance of the Term Note, together with accrued interest thereon, over a period of one
hundred fourteen (114) months from the Amortization Date. The outstanding principal balance,
together with all accrued interest, if not paid sooner, shall be due and payable in full on the
Maturity Date. Following the Conversion Date, and in addition to all other payments of principal
and interest required under this Agreement and this Construction Note, the Borrower shall annually
remit to the Agent for the account of the Banks the Excess Cash Flow Payment pursuant to Section
2.25.

     Section 2.04. Conversion of Construction Loan Into Term Revolving Loan. Subject to
the terms and conditions contained in this Agreement, on the Conversion Date a portion of the
Construction Loan may be converted into a Term Revolving Loan by the Borrower to be used to repay
the Construction Loan and for cash and Inventory management purposes

          (a) Term Revolving Loan. The Banks agree, on the terms and conditions set forth in
this Agreement, to convert up to Eleven Million Six Hundred Twenty-five Thousand and No/100 Dollars
($11,625,000.00) of the Outstanding Construction Advances on the Conversion Date into a Term
Revolving Loan and to make one or more Advances to the Borrower, on a revolving basis, during the
period beginning on the Conversion Date and ending on the Business Day immediately preceding the
Maturity Date (the “Term Revolving Loan Termination Date”), in an aggregate principal amount
outstanding at any one time not to exceed Eleven Million Six Hundred Twenty-five Thousand and
No/100 Dollars ($11,625,000.00). The Term Revolving Loan shall mature and be due and payable in
full at 12:00 P.M. (Minneapolis, Minnesota time) on the Maturity Date. Term Revolving Loan
Advances borrowed, repaid or prepaid may be reborrowed at any time prior to the Term Revolving Loan
Termination Date, provided, however, that at no time shall the sum of the Outstanding Term
Revolving Advances exceed Eleven Million Six Hundred Twenty-five Thousand and No/100 Dollars
($11,625,000.00).

          (b) Purpose. Term Revolving Loan Advances may be used to be used to repay the
Construction Loan and for cash and Inventory management purposes of the Borrower, including closing
costs and fees associated with the Term Revolving Loan. The Borrower agrees that the proceeds of
the Loan are to be used only for the purposes set forth in this Section 2.04(b).

          (c) Conditions Precedent. The Banks shall not be obligated to convert any part of the
Construction Loan into a Term Revolving Loan unless and until:

               (i) Completion of Project. A Certificate of Substantial Completion shall have been
delivered to the Agent, and Substantial Completion of the Project shall have occurred;

25

 

               (ii) Amount of Term Loan. The maximum amount of the Construction Loan which may be
converted to a Term Revolving Loan is Eleven Million Six Hundred Twenty-five Thousand and No/100
Dollars ($11,625,000.00);

               (iii) Outstanding Construction Advances Exceed Term Revolving Loan. In the event that
the Outstanding Construction Advances exceed the amount of the maximum Term Revolving Loan to be
made by the Banks, including after conversion of those portions of the Construction Loan which are
eligible for conversion into the Term Loan pursuant to Section 2.03, the Borrower shall immediately
repay the amount of the Outstanding Construction Advances which are not being converted into a Term
Revolving Loan;

               (iv) ALTA Survey. The Borrower shall deliver to the Agent an “as-built” survey of the
Real Property which: (A) sets forth the location and exterior lines of the Real Property and
includes any and all improvements completed on the Real Property, (B) demonstrates compliance with
all applicable setback requirements, (C) demonstrates that the Project is entirely within the
exterior boundaries of the Real Property and any building restriction lines and does not encroach
upon any easements or rights-of-way, and (D) contains such other information as the Agent may
reasonably request;

               (v) Representations and Warranties. The representations and warranties set forth in
this Agreement are true and correct in all material respects as of the Conversion Date to the same
extent and with the same effect as if made at and as of the date thereof, except as disclosed in
writing to the Agent and the Banks, and except to the extent such representations and warranties
relate to a specific earlier date in which case such representations and warranties shall have been
true and correct in all material respects as of such earlier date;

               (vi) No Defaults. No Event of Default has occurred and is continuing;

               (vii) Government Action. No license, permit, permission or authority necessary for
the operation of the Project has been revoked or challenged by or before any Governmental
Authority, which revocation or challenge could reasonably be expected to have a Material Adverse
Effect; and the Borrower shall have obtained and provided the Agent with copies of all permits and
government approvals reasonably requested by Agent relating to the use and operation of the Project
(including a storm water discharge permit for industrial operations, a letter approving the track
design concept, water discharge permit, ethanol holding tank permits, and an ATF permit) other than
those approvals issued in the ordinary course after commencement of operations;

               (viii) Marketing Agreements. The Borrower has executed marketing agreements for all
ethanol and DGS to be produced at the Project and provided Agent with a collateral assignment of
each such agreement in form and substance satisfactory to the Agent and its counsel and
acknowledged by the non-Borrower party to each such agreement; and

               (ix) Litigation. No order, judgment, decree or ruling has been entered in the City
Litigation or the County Litigation which may result in the suspension, revocation, vacation or
impairment of any ordinance, license, permit, permission or authority necessary for the
construction or operation of the Project.

          (d) Availability. Subject to the provisions of this Agreement, during the period
commencing on the Availability Date and ending on the Term Revolving Loan Termination Date,
Advances under the Term Revolving Loan will be made as provided in Section 2.04(e).

26

 

          (e) Making the Advances. Each Term Revolving Loan Advance shall be made by the
Borrower delivering a Request for Advance to the Agent specifying the amount of such Term Revolving
Loan Advances. Each Request for Advance must be delivered to the Agent by the Borrower before
12:00 P.M. (Minneapolis, Minnesota time) on a Business Day which is at least three (3) Business
Days prior to the date of such Term Revolving Loan Advance; provided however that no such Term
Revolving Loan Advance shall be made while an Event of Default exists or if the interest rate for
such LIBOR Rate Loan would exceed the Maximum Rate. Any Request for Advance received by Borrower
after 12:00 P.M. (Minneapolis, Minnesota time) on a Business Day shall be deemed to have been
received and be effective on the next Business Day. The amount of the Term Revolving Loan Advance
requested from the Banks shall, subject to the terms and conditions of this Agreement, be made
available to the Borrower by: (i) depositing the same, in same day funds, in an account of the
Borrower, or (ii) wire transferring such funds to a Person or Persons designated by the Borrower in
writing.

          (f) Requests for Advances Irrevocable. Each Request for Advance shall be irrevocable
and binding on the Borrower and the Borrower shall indemnify the Agent and the Banks against any
loss or expense any of them may incur pursuant to Section 2.24 as a result of any failure to borrow
any Term Revolving Loan Advance after a Request for Advance (including any failure resulting from
the failure to fulfill on or before the date specified for such Advance the applicable conditions
set forth in Section 2.04(c)).

          (g) Minimum Amounts. Each Term Revolving Loan Advance shall be in a minimum amount
equal to Fifty Thousand and No/100 Dollars ($50,000.00).

          (h) Conditions Precedent to Advances. The Banks’ obligation to make each Term
Revolving Loan Advance under the Term Revolving Note shall be subject to the following further
conditions precedent:

               (i) Representations and Warranties. The representations and warranties set forth in
this Agreement are true and correct in all material respects as of the date of the Request for
Advance for any Term Revolving Loan Advance to the same extent and with the same effect as if made
at and as of the date thereof, except as disclosed in writing to the Agent and the Banks, and
except to the extent such representations and warranties relate to a specific earlier date in which
case such representations and warranties shall have been true and correct in all material respects
as of such earlier date;

               (ii) No Defaults. No Event of Default has occurred and is continuing;

               (iii) Government Action. No license, permit, permission or authority necessary for
the operation of the Project has been revoked or challenged by or before any Governmental
Authority, which revocation or challenge could reasonably be expected to have a Material Adverse
Effect; and

               (iv) Litigation. No order, judgment, decree or ruling has been entered in the City
Litigation or the County Litigation which may result in the suspension, revocation, vacation or
impairment of any ordinance, license, permit, permission or authority necessary for the
construction or operation of the Project.

          (i) Interest Rate. Subject to the provisions of Sections 2.03 and 2.04, the Term
Revolving Loan shall bear interest at a rate equal to the LIBOR Rate plus two hundred ninety (290)
basis

27

 

points. The rate of interest due hereunder shall initially be determined as of the Conversion Date
and shall thereafter be initially adjusted on the first day of the immediately succeeding calendar
month. All such adjustments to the rate of interest shall be made and become effective as of the
first Adjustment Date following the Conversion Date. All such adjustments to said rate shall be
made and become effective as of each subsequent Adjustment Date, and said rate as adjusted shall
remain in effect until and including the day immediately preceding the next Adjustment Date.
Interest hereunder shall be computed on the basis of a year of three hundred sixty five (365) days,
but charged for actual days principal is outstanding. In no event shall the applicable rate exceed
the Maximum Rate.

          (j) Funding of Advances. Upon receipt by the Agent from the Borrower of any Request
for Advance for any Term Revolving Loan Advance, the Agent shall promptly notify the Borrower and
the other Banks as to the amount requested in such Request for Advance. Not later than 12:00 P.M.
(Minneapolis, Minnesota time) on the applicable payment date each Bank will make available to the
Agent, in immediately available funds, an amount equal to such Bank’s Pro Rata Share of the amount
requested in such Request for Advance.

          (k) Repayment of the Term Revolving Loan. The Borrower will pay interest on the Term
Revolving Loan on the first (1st) day of each month, commencing on the first
(1st) Monthly Payment Date following the date on which the first Term Revolving Loan
Advance is made on the Term Revolving Loan, and continuing on each Monthly Payment Date thereafter
until the Term Revolving Loan Maturity Date. On the Term Revolving Loan Maturity Date, the amount
of the then unpaid principal balance of the Term Revolving Loan and any and all other amounts due
and owing hereunder or under any other Loan Document relating to the Term Revolving Loan shall be
due and payable. If any Payment Date is not a Business Day, then the principal installment then
due shall be paid on the next Business Day and shall continue to accrue interest until paid.

     Section 2.05. Revolving Line of Credit Loan.

          (a) Revolving Line of Credit Loan. On the terms and conditions set forth in this
Agreement, the Banks agree to make one or more Revolving Line of Credit Advances to the Borrower on
a revolving basis, during the period beginning on the Conversion Date and ending on the Business
Day immediately preceding the Revolving Line of Credit Maturity Date (the “Revolving Line of Credit
Termination Date”), in an aggregate principal amount outstanding at any one time not to exceed Ten
Million and No/100 Dollars ($10,000,000.00); provided, however, that at no time shall the
Outstanding Revolving Advance exceed the Borrowing Base. The Revolving Line of Credit Loan shall
mature and be due and payable in full at 12:00 P.M. (Minneapolis, Minnesota time) on the three
hundred sixty-fourth (364th) day following the Conversion Date (the “Revolving Line of
Credit Maturity Date”). Subject to Section 2.05(h), Revolving Line of Credit Advances borrowed and
repaid or prepaid may be reborrowed at any time prior to the Revolving Line of Credit Termination
Date.

          (b) Purpose. Revolving Line of Credit Advances may be used by the Borrower for
general business and operating purposes, including closing costs and fees associated with the
Revolving Line of Credit Loan. The Borrower agrees that the proceeds of the Revolving Line of
Credit Loan are to be used only for the purposes set forth in this Section 2.05(b).

          (c) Conditions Precedent to All Advances. The Banks’ obligation to fund each
Revolving Line of Credit Advance shall be subject to the following conditions precedent:

               (i) Completion of Project. A Certificate of Substantial Completion shall have been
delivered to the Agent, and Substantial Completion of the Project shall have occurred;

28

 

               (ii) Borrowing Base Certificate. The Borrower shall have submitted to the Agent a
Borrowing Base Certificate as required by Section 5.01(c)(xvi);

               (iii) Representations and Warranties. The representations and warranties set forth in
this Agreement are true and correct in all material respects as of the date of the request for any
Revolving Line of Credit Advance to the same extent and with the same effect as if made at and as
of the date thereof, except as disclosed in writing to the Agent and the Banks, and except to the
extent such representations and warranties relate to a specific earlier date in which case such
representations and warranties shall have been true and correct in all material respects as of such
earlier date;

               (iv) No Defaults. No Event of Default has occurred and is continuing; and

               (v) Litigation. No order, judgment, decree or ruling has been entered in the City
Litigation or the County Litigation which may result in the suspension, revocation, vacation or
impairment of any ordinance, license, permit, permission or authority necessary for the
construction or operation of the Project.

          (d) Availability. Subject to the provisions of this Agreement, during the period
commencing on the Conversion Date and ending on the Revolving Line of Credit Termination Date,
Revolving Line of Credit Advances under the Revolving Line of Credit Loan may be made as provided
in this Agreement.

          (e) Making the Advances. Each Revolving Line of Credit Advance shall be made by the
Borrower delivering a Request for Advance to the Agent specifying the amount of such Revolving Line
of Credit Advance. Except for Revolving Line of Credit Advances made pursuant to Section 2.05(j),
each Request for Advance must be delivered to the Agent by the Borrower, before 12:00 P.M.
(Minneapolis, Minnesota time) on a Business Day which is at least three (3) Business Days prior to
the date of such Revolving Line of Credit Advance; provided however that no such Revolving Line of
Credit Advance shall be made while an Event of Default exists or if the interest rate for such
LIBOR Rate Loan would exceed the Maximum Rate. Any Request for Advance received by the Agent after
12:00 P.M. (Minneapolis, Minnesota time) on a Business Day shall be deemed to have been received
and be effective on the next Business Day. The amount of the Revolving Line of Credit Advance
requested from the Banks shall, subject to the terms and conditions of this Agreement, be made
available to the Borrower by: (i) depositing the same, in same day funds, in an account of the
Borrower; or (ii) wire transferring such funds to a Person or Persons designated by the Borrower in
writing.

          (f) Requests for Advances Irrevocable. Each Request for Advance shall be irrevocable
and binding on the Borrower and the Borrower shall indemnify the Agent and the Banks against any
loss or expense any of them may incur pursuant to Section 2.24 as a result of any failure to borrow
any Revolving Line of Credit Advance after a Request for Advance (including any failure resulting
from the failure to fulfill on or before the date specified for such Advance the applicable
conditions set forth in this Agreement).

          (g) Minimum Amounts. Each Revolving Line of Credit Advance shall be in a minimum
amount of Fifty Thousand and No/100 Dollars ($50,000.00) (except for any Revolving Line of Credit
Advances made pursuant to Section 2.05(j)).

          (h) Letters of Credit. The Borrower may utilize the Revolving Line of Credit
Commitments by requesting that the Issuer issue, and the Issuer, subject to the terms and
conditions of

29

 

this Agreement, may, in its sole discretion, issue letters of credit for the Borrower’s account
(such letters of credit being hereinafter referred to collectively as the “Revolving Letters of
Credit”); provided, however, that:

               (i) the aggregate amount of all Revolving Letter of Credit Liabilities shall not at any time
exceed the amount of Five Million and No/100 Dollars ($5,000,000.00);

               (ii) the sum of the outstanding Revolving Letters of Credit plus the outstanding Revolving
Line of Credit Advances shall not at any time exceed the Borrowing Base; and

               (iii) the expiration date of a Revolving Letter of Credit advanced under the Revolving Line of
Credit Loan shall be no later than the Revolving Line of Credit Loan Maturity Date.

The issuance of any Revolving Letter of Credit issued under this Section 2.05(h) is subject to the
provisions of Section 2.08.

          (i) Interest Rate. The Revolving Line of Credit Loan shall bear interest at a rate
equal to the LIBOR Rate plus two hundred ninety (290) basis points. The rate of interest due
hereunder shall initially be determined as of the Conversion Date and shall thereafter be initially
adjusted on the first day of the immediately succeeding calendar month. All such adjustments to
the rate of interest shall be made and become effective as of the first Adjustment Date following
the Conversion Date. All such adjustments to said rate shall be made and become effective as of
each subsequent Adjustment Date, and said rate as adjusted shall remain in effect until and
including the day immediately preceding the next Adjustment Date. Interest hereunder shall be
computed on the basis of a year of three hundred sixty five (365) days, but charged for actual days
principal is outstanding. In no event shall the applicable rate exceed the Maximum Rate.

          (j) Funding of Advances. Upon receipt from the beneficiary of any Revolving Letter of
Credit of any drawing under such Revolving Letter of Credit, the Agent shall promptly notify the
Borrower and the Banks as to the amount to be paid as a result of such drawing and the respective
payment date. Not later than 12:00 P.M. (Minneapolis, Minnesota time) on the applicable payment
date each Bank will make available to the Agent, in immediately available funds, an amount equal to
such Bank’s Pro Rata Share of the amount to be paid as a result of such drawing as a Revolving Line
of Credit Advance hereunder (and such amount shall be treated as a Revolving Line of Credit Advance
hereunder) regardless of whether the conditions set forth in Article II or III are satisfied.

          (k) Repayment of the Revolving Line of Credit Loan. The Borrower will pay accrued
interest on the Revolving Line of Credit Loan on the first (1st) day of each month,
commencing on the first (1st) Monthly Payment Date following the date on which the first
Advance is made on the Revolving Line of Credit Loan, and continuing on each Monthly Payment Date
thereafter until the Revolving Line of Credit Maturity Date. On the Revolving Line of Credit
Maturity Date, the amount of the then unpaid principal balance of the Revolving Line of Credit Loan
and any and all other amounts due and owing hereunder or under any other Loan Document relating to
the Revolving Line of Credit Loan will be due and payable. If any Payment Date is not a Business
Day, then the principal installment then due shall be paid on the next Business Day and shall
continue to accrue interest until paid.

          (l) Mandatory Prepayments or Collateralization. The Borrower shall, within five (5)
days following the earlier of the delivery of each Borrowing Base Certificate hereunder or the day
upon which such Borrowing Base Certificate was due, either (i) prepay the Revolving Line of Credit
Advances in the amount, if any, by which the Outstanding Revolving Line of Credit Advances on the
date

30

 

of prepayment under this Section 2.05(l) exceeds the Borrowing Base at such time, together with
accrued interest to the date of such prepayment on the amount prepaid, or (ii) pledge and assign to
the Agent additional Collateral acceptable to the Agent, in the Agent’s sole discretion, and
deliver all documentation that the Agent, in its sole discretion, may require in connection with
such pledge and assignment and the perfection of a first-priority security interest in such
additional Collateral, so that the Borrowing Base plus the value assigned by the Agent, in its sole
discretion, to such additional Collateral equals or exceeds the Outstanding Revolving Line of
Credit Advances.

          (m) Additional Revolving Line of Credit Facility.

               (i) The Borrower shall have the right at any time and from time to time after the Revolving
Line of Credit Maturity Date to incur from one or more existing Banks and/or other financial
institution or lender approved by the Agent (the “New Revolving Banks”) and which, in each case,
agree to make loans pursuant to this Section 2.05(m) to the Borrower, and commitments to make loans
in an aggregate principal amount not to exceed $10,000,000, which loans (a) shall be incurred as
Revolving Line of Credit Advances on a revolving basis and shall be deemed to be Revolving Line of
Credit Loans for all purposes of this Agreement and (b) which loans shall mature and be due and
payable in full at 12:00 P.M. (Minneapolis, Minnesota time) on the three hundred sixty- fourth
(364th) day immediately following the date of the expiration of (x) the Revolving Line of Credit
Maturity Date or (y) the immediately precedent revolving facility entered into by the Borrower
pursuant to this Section 2.05(m), as the case may be, or such later maturity as to which such New
Revolving Banks may consent (collectively, the “Additional Revolving Line of Credit Facilities”).
All Advances under each of the Additional Revolving Line of Credit Facilities shall be treated as
Revolving Line of Credit Advances for all purposes of the Loan Documents, and loans made pursuant
to each of the Additional Revolving Line of Credit Facilities shall constitute Loan Obligations
hereunder for all purposes of the Loan Documents and will be secured by the Collateral securing the
other Loan Obligations.

               (ii) In the event that the Borrower desires to create an Additional Revolving Line of Credit
Facility, the Borrower will enter into an amendment with the New Revolving Banks (who shall by
execution thereof become Banks hereunder if not theretofore Banks) to provide for such Additional
Revolving Line of Credit Facility, which amendment shall set forth any terms and conditions of the
Additional Revolving Line of Credit Facility not covered by this Agreement as agreed by the
Borrower and such New Revolving Banks, and shall provide for the issuance of promissory notes to
evidence the Additional Revolving Line of Credit Facility if requested by the New Revolving Banks
making Advances under the Additional Revolving Line of Credit Facility (which notes shall
constitute Revolving Line of Credit Notes for purposes of this Agreement), with such amendment to
be in form and substance reasonably acceptable to the Agent and consistent with the terms of this
Section 2.05(m) and of the other provisions of this Agreement. No consent of any Bank (other than
any Bank making loans or whose commitment is increased under the Additional Revolving Line of
Credit Facility) is required to permit the Loans contemplated by this Section 2.05(m) or to permit
the aforesaid amendment to effectuate the Additional Revolving Line of Credit Facility. This
Section 5.01(m) shall supersede any provisions contained in this Agreement, including, without
limitation, Section 8.01, to the contrary.

     Section 2.06. Swingline Loan.

          (a) Swingline Loan. Subject to the terms and conditions of this Agreement, the
Swingline Bank agrees to make one or more Advances to the Borrower from time to time, from and
including the Conversion Date to, but excluding, the Term Revolving Loan Termination Date and the
Revolving Line of Credit Termination Date, in an aggregate principal amount at any time outstanding
up

31

 

to but not exceeding the Swingline Commitment; provided, however that after calculation of the
participation interests of each Bank in such Advances:

               (i) the aggregate amount of outstanding Swingline Advances shall not at any time exceed the
amount of One Million and No/100 Dollars ($1,000,000.00) (the “Swingline Commitment”);

               (ii) the Outstanding Credit with respect to the Revolving Line of Credit applicable to a Bank
shall not at any time exceed the lesser of (A) such Bank’s Pro Rata Share of the Borrowing Base, or
(B) such Bank’s Revolving Line of Credit Commitment; and

               (iii) the Outstanding Credit with respect to the Revolving Line of Credit shall not at any
time exceed the lesser of (A) the Borrowing Base or (B) the aggregate amount of the Revolving
Commitments at such time.

Subject to the foregoing limitations, and the other terms and provisions of this Agreement, the
Borrower may borrow, prepay, and reborrow Swingline Loans hereunder up to the amount of the
Swingline Commitment. The Swingline Bank may, by written notice given to the Agent not later than
10:00 A.M. (Minneapolis, Minnesota time) on any Business Day, require the Banks to acquire
participations on such Business Day in all or a portion of the Swingline Loans outstanding. Such
notice shall specify the aggregate amount of Swingline Loans in which the Banks will participate.
Promptly upon receipt of such notice, the Agent will give notice thereof to each Bank specifying in
such notice such Bank’s Pro Rata Share of such Swingline Loan or Loans. Each Bank hereby
absolutely and unconditionally agrees upon receipt of notice as provided in this Section 2.06 to
pay to the Agent for the account of the Swingline Bank such Bank’s Pro Rata Share of such Swingline
Loan or Loans. Each Bank acknowledges and agrees that its obligation to acquire participations in
Swingline Loans pursuant to this paragraph is absolute and unconditional and shall not be affected
by any circumstance whatsoever, including the occurrence and continuance of an Event of Default or
reduction or termination of the Commitments, and that each such payment shall be made without any
offset, abatement, withholding or reduction whatsoever. Each Bank shall comply with its obligation
under this Subsection by wire transfer of immediately available funds, in the same manner as
provided in Section 2.21 with respect to Loans made by such Bank (and Section 2.22 shall apply to
the payment obligations of the Banks), and the Agent shall promptly pay to the Swingline Bank the
amounts so received by it from the Banks. The Agent shall notify the Borrower of any
participations in any Swingline Loan acquired pursuant to this paragraph, and thereafter payments
in respect of such Swingline Loan shall be made to the Agent and not to the Swingline Bank. Any
amounts received by the Swingline Bank from the Borrower (or other party on behalf of the Borrower)
in respect of a Swingline Loan after receipt by the Swingline Bank of the proceeds of a sale of
participations therein shall be promptly remitted to the Agent; any such amounts received by the
Agent shall be promptly remitted by the Agent to the Banks that shall have made their payments
pursuant to this Subsection and to the Swingline Bank, as their interests may appear. The purchase
of participations in a Swingline Loan pursuant to this Subsection shall not relieve the Borrower of
any default in the payment thereof. Notwithstanding the foregoing, a Bank shall not have any
obligation to acquire a participation in a Swingline Loan pursuant to this Subsection if an Event
of Default shall have occurred and be continuing at the time such Swingline Loan was made and such
Bank shall have notified the Swingline Bank in writing, at least one Business Day prior to the time
such Swingline Loan was made, that such Event of Default has occurred and that such Bank will not
acquire participations in Swingline Loans made while such Event of Default is continuing.

          (b) Swingline Advances. Each Swingline Advance shall be made, to the extent that the
Swingline Bank is so obligated under Section 2.05(a), on a Request for Advance from the Borrower to

32

 

the Agent delivered before 12:00 P.M. (Minneapolis, Minnesota time) on the date of such Swingline
Advance, specifying the amount of such Swingline Advance. Any Request for Advance applicable to a
Swingline Advance received after 12:00 P.M. (Minneapolis, Minnesota time) shall be deemed to have
been received and be effective on the next Business Day. The amount of each Swingline Advance made
hereunder shall, subject to the terms and conditions of this Agreement, be made available to the
Borrower by (i) depositing the same, in same day funds, in an account of the Borrower or (ii) wire
transferring such funds to a Person or Persons designated by the Borrower in writing.

          (c) Minimum Amounts. Each Swingline Advance shall be in a minimum amount equal to
Fifty Thousand and No/100 Dollars ($50,000.00).

          (d) Repayment of Swingline Loan. The Borrower shall pay to the Agent for the account
of the Swingline Bank the outstanding principal amount of each Swingline Advance on the earlier of
(i) the Term Revolving Loan Termination Date, (ii) the Revolving Line of Credit Termination Date,
or (iii) the date which is thirty (30) days after the Swingline Advance is made (the earliest of
such date with respect to a Swingline Advance herein the “Swingline Maturity”). Subject to the
other terms and conditions of this Agreement, the Borrower may repay a Swingline Advance on its
Swingline Maturity or at any time prior thereto by requesting a Revolving Advance in accordance
with Sections 2.04(e) or 2.05(e) with the proceeds thereof payable to the Swingline Bank for its
own account or by using cash on hand. The Swingline Bank, at any time in its sole and absolute
discretion and whether or not a Swingline Maturity shall have occurred, may require that each other
Bank fund its participation in the then outstanding principal amount of all Swingline Advances by
giving each other Bank notice thereof as set forth herein above. Additionally, if the Borrower
shall not have repaid a Swingline Advance by 12:00 P.M. (Minneapolis, Minnesota time) on the
corresponding Swingline Maturity, the Swingline Bank will notify each Bank of the aggregate
principal amount of the Swingline Advance which has not been repaid. Upon the giving of any notice
by the Swingline Bank under either of the preceding two sentences, each such Bank shall make
available to the Swingline Bank, in immediately available funds, an amount equal to its Pro Rata
Share of the aggregate principal amount of the Swingline Advance or Swingline Advances subject to
such notice by not later than 3:00 P.M. (Minneapolis, Minnesota time) on the date such notice is
received if such notice is received by 12:00 P.M., or by 11:00 A.M. (Minneapolis, Minnesota time)
on the next Business Day if such notice is received after 12:00 P.M. (Minneapolis, Minnesota time),
whether or not the conditions to an Advance under Article III are satisfied.

          (e) Swingline Interest Rate. The Swingline Loan shall bear interest at a rate equal
to the LIBOR Rate plus two hundred ninety (290) basis points. The rate of interest due hereunder
shall initially be determined as of the date of each Swingline Advance and shall thereafter be
initially adjusted on the first day of the immediately succeeding calendar month. All such
adjustments to the rate of interest shall be made and become effective as of the first Adjustment
Date following each Swingline Advance. All such adjustments to said rate shall be made and become
effective as of each subsequent Adjustment Date, and said rate as adjusted shall remain in effect
until and including the day immediately preceding the next Adjustment Date. Interest hereunder
shall be computed on the basis of a year of three hundred sixty five (365) days, but charged for
actual days principal is outstanding. In no event shall the applicable rate exceed the Maximum
Rate.

     Section 2.07. Evidence of Debt. The extension of credit made by each Bank shall be
evidenced by one or more accounts or records maintained by such Bank and by the Agent in the
ordinary course of business. The accounts or records maintained by the Agent and each Bank shall
be prima facie evidence of the amount of the credit extensions made by the Banks to the Borrower
and the interest and payments thereon. Any failure to so record or any error in doing so shall
not, however, limit or otherwise

33

 

affect the obligation of the Borrower hereunder to pay any amount owing with respect to the
Obligations. In the event of any conflict between the accounts and records maintained by any Bank
and the accounts and records of the Agent in respect of such matters, the accounts and records of
the Agent shall control in the absence of manifest error. Upon the request of any Bank made
through the Agent, the Borrower shall execute and deliver to such Bank (through the Agent) a
promissory note in the form attached as Exhibits E, G, or H which shall evidence such Bank’s loans
in addition to such accounts or records. Each Bank may attach schedules to its Note and endorse
thereon the date, amount and maturity of its loans and payments with respect thereto. Upon the
termination of the Commitments and repayment of all Obligations hereunder, each Bank shall, at the
request of the Borrower (and at the Borrower’s expense), return to the Borrower the Note or Notes
evidencing such Bank’s loans marked “cancelled.”

     Section 2.08. Letters of Credit. All Letters of Credit that are issued under this
Agreement are subject to the following:

          (a) Letter of Credit Request Procedure. The Borrower shall give the Agent and the
Issuer irrevocable prior notice (effective upon receipt) on or before 12:00 P.M. (Minneapolis,
Minnesota time) on a Business Day which is at least three (3) Business Days (or such shorter period
as may be agreed by the Issuer) prior to the date of the requested issuance of a Letter of Credit
specifying the requested amount, the beneficiary of each Letter of Credit to be issued, the expiry
date and issuance date of each Letter of Credit to be issued, and the nature of the transactions to
be supported thereby. Any such notice received after 12:00 P.M. (Minneapolis, Minnesota time) on a
Business Day shall be deemed to have been received and be effective on the next Business Day. Upon
receipt of such notice, the Agent shall promptly notify each Bank of the face amount and expiry
date of such Letter of Credit and of such Bank’s Pro Rata Share of the amount of the proposed
Letter of Credit. The Issuer shall provide a Bank a copy of each Letter of Credit it has issued
hereunder upon such Bank’s request. Each Letter of Credit shall be substantially in the form of
Exhibit I, or otherwise shall be satisfactory in form and substance to the Agent, the Borrower, and
the Issuer, shall be payable in U.S. dollars, and shall be issued pursuant to such documentation as
the Issuer may require, including the Issuer’s standard form letter of credit request and
reimbursement agreement; provided that, in the event of any conflict between the terms of such
credit request and reimbursement agreement and the other Loan Documents, the terms of the other
Loan Documents shall control.

          (b) Banks’ Pro Rata Shares. Upon the date of issue of a Letter of Credit, the Issuer
shall be deemed, without further action by any party hereto, to have sold to each other Bank, and
each other Bank shall be deemed, without further action by any party hereto, to have purchased from
the Issuer a participation to the extent of such Bank’s Pro Rata Share in such Letter of Credit and
the related Letter of Credit Liabilities.

          (c) Letter of Credit Fees. The Borrower shall pay to the Agent for the account of
each Bank an irrevocable letter of credit fee on each such Bank’s Pro Rata Share of the maximum
amount available for drawings under each Letter of Credit, such letter of credit fee (i) to be in
an amount equal to one hundred fifty (150) basis points, on an annualized basis, of the maximum
amount available to be drawn under such Letter of Credit on the date of calculation of such fee,
and (ii) to be paid on the date of issuance of such Letter of Credit and on each anniversary date
of the date of issuance of such Letter of Credit for so long as such letter of Credit remains
outstanding. After receiving any payment of any letter of credit fees under this Subsection (c),
the Agent will promptly pay to each Bank the letter of credit fees then due such Bank. With
respect to each Letter of Credit, the Borrower shall also pay to the Issuer for its account only
all reasonable fees, costs, and expenses of the Issuer arising in connection with any Letter of
Credit, including the Issuer’s customary fees for amendments, transfers, and drawings on Letters of
Credit.

34

 

          (d) Reimbursements. After receipt of the notice delivered pursuant to Section 2.21
with respect to a Letter of Credit, the Borrower shall be irrevocably and unconditionally obligated
to reimburse the Banks for any amounts paid by the Banks upon any demand for payment or drawing
under the applicable Letter of Credit, without presentment, demand, protest, or other formalities
of any kind other than the notice required by Section 2.21. Such reimbursement shall occur no
later than 3:00 P.M. (Minneapolis, Minnesota time) three (3) Business Days after the date of
payment under the applicable Letter of Credit if the notice under Section 2.21 is received by 12:00
P.M. (Minneapolis, Minnesota time) on such date or by 11:00 A.M. (Minneapolis, Minnesota time) four
(4) Business Days after the date of such payment, if such notice is received after 12:00 P.M.
(Minneapolis, Minnesota time). All payments made pursuant to Section 2.05(j) with proceeds of
Revolving Loans made pursuant thereto shall constitute satisfaction of the Borrower’s reimbursement
obligation hereunder to the extent of such Revolving Loans. All payments on the Reimbursement
Obligations (including any interest earned thereon) shall be made to the Agent for the account of
the Banks in U.S. dollars and in immediately available funds, without set-off, deduction, or
counterclaim.

          (e) Reimbursement Obligations Absolute. The Reimbursement Obligations of the Borrower
under this Agreement shall be absolute, unconditional, and irrevocable, and shall be performed
strictly in accordance with the terms of the Loan Documents under all circumstances whatsoever and
the Borrower hereby waives any defense to the payment of the Reimbursement Obligations based on any
circumstance whatsoever, including, in any case, the following circumstances: (i) any lack of
validity or enforceability of any Letter of Credit or any other Loan Document; (ii) any amendment
or waiver of or any consent to departure from any Loan Document; (iii) the existence of any claim,
set-off, counterclaim, defense, or other rights which the Borrower or any other Person may have at
any time against any beneficiary of any Letter of Credit, the Agent, the Issuer, the Banks or any
other Person, whether in connection with any Loan Document or any unrelated transaction; (iv) any
statement, draft, or other documentation presented under any Letter of Credit proving to be forged,
fraudulent, invalid, or insufficient in any respect or any statement therein being untrue or
inaccurate in any respect whatsoever; (v) payment by the Issuer under any Letter of Credit against
presentation of a draft or other document that does not comply with the terms of such Letter of
Credit; or (vi) any other circumstance whatsoever, whether or not similar to any of the foregoing;
provided that Reimbursement Obligations with respect to a Letter of Credit may be subject to
avoidance by the Borrower if the Borrower proves in a final non-appealable judgment that it was
damaged and that such damage arose directly from the Issuer’s willful misconduct or gross
negligence.

          (f) Issuer Responsibility. The Borrower assumes all risks of the acts or omissions of
any beneficiary of any Letter of Credit with respect to its use of such Letter of Credit; provided,
however, that this assumption is not intended to, and shall not, preclude the Borrower from
pursuing such rights and remedies as it shall have against the beneficiary, at law or under any
other agreement.. None of the Agent, the Issuer, the other Banks, or any of their respective
officers or directors shall have any responsibility or liability to the Borrower or any other
Person for: (i) the failure of any draft to bear any reference or adequate reference to any Letter
of Credit, or the failure of any documents to accompany any draft at negotiation, or the failure of
any Person to surrender or to take up any Letter of Credit or to send documents apart from drafts
as required by the terms of any Letter of Credit, or the failure of any Person to note the amount
of any instrument on any Letter of Credit, each of which requirements, if contained in any Letter
of Credit itself, it is agreed may be waived by the Issuer; (ii) errors, omissions, interruptions,
or delays in transmission or delivery of any messages; (iii) the validity, sufficiency, or
genuineness of any draft or other document, or any endorsement(s) thereon, even if any such draft,
document or endorsement should in fact prove to be in any and all respects invalid, insufficient,
fraudulent, or forged or any statement therein is untrue or inaccurate in any respect; (iv) the
payment by the Issuer to the beneficiary

35

 

of any Letter of Credit against presentation of any draft or other document that does not comply
with the terms of the Letter of Credit; or (v) any other circumstance whatsoever in making or
failing to make any payment under a Letter of Credit. The Issuer may accept documents that appear
on their face to be in order, without responsibility for further investigation, regardless of any
notice or information to the contrary. Notwithstanding anything to the contrary contained in this
Section 2.08, Borrower shall retain any and all rights it may have against any Issuer for any
liability arising out of the gross negligence or willful misconduct of such Issuer.

          (g) Replacement of Issuer. The Issuer may be replaced at any time by written
agreement among the Borrower, the Agent, and the successor Issuer, and if requested by the Agent
the Issuer. The Agent shall notify the Banks of any such replacement of the Issuer. At the time
any such replacement shall become effective, the Borrower shall pay all unpaid fees accrued for the
account of the replaced Issuer pursuant to Section 2.08(c). From and after the effective date of
any such replacement, (i) the successor Issuer shall have all the rights and obligations of the
Issuer under this Agreement with respect to Letters of Credit to be issued thereafter, and (ii)
references herein to the term “Issuer” shall be deemed to refer to such successor or to any
previous Issuer, or to such successor and all previous Issuers, as the context shall require.
After the replacement of an Issuer hereunder, the replaced Issuer shall remain a party hereto and
shall continue to have all the rights and obligations of an Issuer under this Agreement with
respect to Letters of Credit issued by it prior to such replacement, but shall not be required to
issue additional Letters of Credit.

     Section 2.09. Obligations Several. The failure of any Bank to make its pro rata share
of any Advance required to be made by it shall not relieve any other Bank of its obligation, if
any, under this Agreement to make its pro rata share of any Advance required to be made by it, but
no Bank shall be responsible for the failure of any other Bank to make any portion of an Advance
required to be made by such other Bank.

     Section 2.10. Non-Receipt of Funds by the Agent. Unless the Agent shall have been
notified by a Bank or the Borrower (the “Payor”) prior to the date on which such Bank is to make
payment to the Agent hereunder or the Borrower is to make a payment to the Agent for the account of
one or more of the Banks, as the case may be (such payment being herein called the “Required
Payment”), which notice shall be effective upon receipt, that the Payor does not intend to make the
Required Payment to the Agent, the Agent may assume that the Required Payment has been made and
may, in reliance upon such assumption (but shall not be required to), make the amount thereof
available to the intended recipient on such date and, if the Payor has not in fact made the
Required Payment to the Agent, (a) the recipient of such payment shall, on demand, pay to the Agent
the amount made available to it together with interest thereon in respect of the period commencing
on the date such amount was so made available by the Agent until the date the Agent recovers such
amount at a rate per annum equal to the Federal Funds Rate for such period, and (b) the Agent shall
be entitled to offset against any and all sums to be paid to such recipient, the amount calculated
in accordance with the foregoing clause (a).

     Section 2.11. Adjustments to Interest Rate. Notwithstanding any other provision of
this Agreement, the Notes, or the Loan Documents, after the Conversion Date, the rate of interest
under any Loan which bears interest at a variable rate, shall be adjusted according to the
following schedule should the Owner’s Equity of the Borrower achieve the levels set forth below:

36

 

	 	 	 
	Owner’s Equity	 	Interest Rate
	Greater than 50.00% and less than
60.00%

	 	Applicable LIBOR Rate plus 265 basis points
	 
	 	 
	Greater than or equal to 60.00%
and less than 70.00%

	 	Applicable LIBOR Rate plus 235 basis points

	 
	 	 
	Greater than 70.00%

	 	Applicable LIBOR Rate plus 200 basis points
	 
	 	 
	Greater than or equal to 60.00%
and total Debt/EBITDA is less
than or equal to 1.00

	 	Applicable LIBOR Rate plus 200 basis points
	 
	 	 
	Greater than or equal to 70.00%
and total Debt/EBITDA is less
than or equal to 1.00

	 	Applicable LIBOR Rate plus 150 basis points

Upon delivery of the fiscal year end audited Financial Statements and the Compliance Certificate
pursuant to Section 5.01(c)(i) beginning with the first fiscal year end after the Conversion Date,
the rate of interest shall automatically be adjusted in accordance with the Owner’s Equity set
forth therein and the rates set forth above. Such automatic adjustment to the rate of interest
shall take effect as of the first Business Day of the month following the month in which the Agent
received the fiscal year end audited Financial Statements and related Compliance Certificate. With
respect to this Section 2.11, the term “Adjustment Date” shall mean each such Business Day when
such rates, margins or fees change pursuant to the immediately prior sentence or the next following
sentence. If the Borrower fails to deliver such Compliance Certificate which so sets forth the
Owner’s Equity within the period of time required by Section 5.01(c)(i) or if any Event of Default
occurs, the rate of interest shall automatically be adjusted to a rate equal to the applicable
LIBOR Rate plus two hundred ninety (290) basis points, such automatic adjustments: (a) to take
effect as of the first Business Day after the last day on which the Borrower was required to
deliver the applicable Compliance Certificate in accordance with Section 5.01(c)(i) hereof or in
the case of an Event of Default, on the date the written notice thereof is given to the Borrower;
and (b) to remain in effect until subsequently adjusted in accordance herewith upon the delivery of
such Compliance Certificate or, in the case of an Event of Default, on the date on which such Event
of Default has been waived or cured.

     Section 2.12. Changes in Law Rendering Certain LIBOR Rate Loans Unlawful. In the
event that any change in any applicable law (including the adoption of any new applicable law) or
any change in the interpretation of any applicable law by any judicial, governmental or other
regulatory body charged with the interpretation, implementation or administration thereof, should
make it (or in the good-faith judgment of the Agent should raise a substantial question as to
whether it is) unlawful for the Banks to make, maintain or fund LIBOR Rate Loans, then: (a) the
Agent shall promptly notify each of the other parties hereto; and (b) the obligation of the Banks
to make LIBOR Rate Loans of such type shall, upon the effectiveness of such event, be suspended
for the duration of such unlawfulness. During the period of any suspension, the Banks shall make
loans to the Borrower that are deemed lawful and that as closely as possible reflect the terms of
this Agreement.

     Section 2.13. Payments and Computations.

          (a) Method of Payment. Except as otherwise expressly provided herein, all payments of
principal, interest, and other amounts to be made by the Borrower under the Loan Documents shall be
made to the Agent for the account of the Banks in U.S. dollars and in immediately available funds,
subject to Sections 2.17 and 2.18, without set-off, deduction, or counterclaim, not later than
12:00 P.M. (Minneapolis, Minnesota time) on the date on which such payment shall become due

37

 

(each such payment made after such time on such due date to be deemed to have been made on the next
succeeding Business Day). The Borrower shall, at the time of making each such payment, specify to
the Agent the sums payable under the Loan Documents to which such payment is to be applied and in
the event that the Borrower fails to so specify or if an Event of Default exists, the Agent may
apply such payment and any proceeds of any Collateral to the Loan Obligations in such order and
manner as it may elect in its sole discretion.

          (b) Application of Funds. The Agent may apply all payments received from the
Guarantor for the benefit of the Borrower to the Loan Obligations in such order and manner as the
Agent may elect in its sole discretion; provided that any payments received from any guarantor or
from any disposition of any Collateral provided by such guarantor shall only be applied against
obligations guaranteed by such guarantor.

          (c) Payments on a Non-Business Day. Whenever any payment under any Loan Document
shall be stated to be due on a day that is not a Business Day, such payment may be made on the next
succeeding Business Day, and such extension of time shall in such case be included in the
computation of the payment of interest and fees, as the case may be.

          (d) Pro Rata Treatment. Except to the extent otherwise provided herein: (i) each
Advance shall be made by the Banks, and each payment of fees under Section 2.08(c) and Section 2.27
shall be made for the account of the Banks pro rata according to their respective Pro Rata Share;
(ii) each payment and prepayment of principal of or interest on Advances or Reimbursement
Obligations by the Borrower (including payments made under Section 2.06) shall be made to the Agent
for the account of the Agent or the Banks holding such Advances or Reimbursement Obligations (or
participation interests therein) pro rata in accordance with the respective unpaid principal
amounts of such Advances or funded participation interests held by such Banks (provided that only
the Swingline Bank shall be entitled to principal and interest on the Swingline Advances unless the
other Banks have funded their participations therein and the Issuer shall be entitled to principal
and interest on the Reimbursement Obligations unless the other Banks have funded their
participations therein); (iii) the Banks (other than the Issuer) shall purchase from the Issuer
participations in the Letters of Credit pro rata according to their respective Pro Rata Shares; and
(iv) the Banks (other than the Swingline Bank) shall purchase from the Swingline Bank
participations in the Swingline Advances pro rata according to their respective Pro Rata Shares.

          (e) Proceeds of Collateral. All proceeds received by the Agent for the account of the
Banks from the sale or other liquidation of the Collateral when an Event of Default exists shall
first be applied as payment of the accrued and unpaid fees and expenses of the Agent and the Banks
hereunder, including under Section 8.04 and then to all other unpaid or unreimbursed Loan
Obligations (including reasonable attorneys’ fees and expenses) owing to the Agent or the Banks and
then any remaining amount of such proceeds shall be applied to the unpaid amounts of Loan
Obligations, until all the Loan Obligations have been paid and satisfied in full or cash
collateralized. After all the Loan Obligations (other than contingent indemnification obligations
not then due) have been paid and satisfied in full and all Commitments terminated, any remaining
proceeds of Collateral shall be delivered to the Person entitled thereto as directed by the
Borrower or as otherwise determined by applicable law or applicable court order.

          (f) Noncash Proceeds. Notwithstanding anything contained herein to the contrary, if
the Agent shall ever acquire any Collateral through foreclosure or by a conveyance in lieu of
foreclosure or by retaining any of the Collateral in satisfaction of all or part of the Loan
Obligations or if any proceeds of Collateral received by the Agent to be distributed and shared
pursuant to Section 2.13(e) are in a form other than immediately available funds, the Agent shall
not be required to remit any share

38

 

thereof under the terms hereof and the Banks shall only be entitled to their undivided interests in
the Collateral or noncash proceeds as determined by this Section 2.13(f). The Banks shall receive
the applicable portions (in accordance with Section 2.13(e)) of any immediately available funds
consisting of proceeds from such Collateral or proceeds of such noncash proceeds so acquired only
if and when received by the Agent in connection with the subsequent disposition thereof. While any
Collateral or other property to be shared pursuant to Section 2.13(e) is held by the Agent pursuant
to this Section 2.13(f), the Agent shall hold such Collateral or other property for the benefit of
the Banks and all matters relating to the management, operation, further disposition or any other
aspect of such Collateral or other property shall be resolved by the agreement of the Required
Banks.

          (g) Return of Proceeds. If at any time payment, in whole or in part, of any amount
distributed by the Agent hereunder is rescinded or must otherwise be restored or returned by the
Agent as a preference, fraudulent conveyance, or otherwise under any bankruptcy, insolvency, or
similar law, then each Person receiving any portion of such amount agrees, upon demand, to return
the portion of such amount it has received to the Agent.

          (h) Sharing of Payments. If a Bank shall obtain payment of any principal of or
interest on any of the Loan Obligations owed to such Bank hereunder directly (and not through the
Agent) through the exercise of any right of set-off, banker’s lien, counterclaim or similar right,
or otherwise, such Bank shall promptly purchase from the other Banks participations in the Loan
Obligations owed hereunder held by the other Banks in such amounts, and make such other adjustments
from time to time as shall be equitable to the end that all the Banks shall share the benefit of
such payment pro rata in accordance with the unpaid principal of and interest on the Loan
Obligations then owed hereunder to each of them. To such end, all of the Banks shall make
appropriate adjustments among themselves (by the resale of participations sold or otherwise) if all
or any portion of such excess payment is thereafter rescinded or must otherwise be restored. The
Borrower agrees, to the fullest extent it may effectively do so under applicable law, that any Bank
so purchasing a participation in the Loan Obligations held by the other Banks may exercise all
rights of set-off, banker’s lien, counterclaim, or similar rights with respect to such
participation as fully as if such Bank were a direct holder of the Loan Obligations in the amount
of such participation. Nothing contained herein shall require any Bank to exercise any such right
or shall affect the right of any Bank to exercise, and retain the benefits of exercising, any such
right with respect to any other indebtedness or obligation of the Borrower.

          (i) Computations. Except as expressly provided otherwise herein, all computations of
interest and fees shall be made on the basis of actual number of days lapsed over a year of three
hundred sixty five (365) days, as appropriate. Interest shall accrue from and include the date of
borrowing, but exclude the date of payment.

     Section 2.14. Default Interest. In addition to the rights and remedies set forth in
this Agreement and the Loan Documents: (a) if the Borrower fails to make any payment to the Agent
for the account of the Banks when due, then at the Agent’s option in each instance upon notice to
the Borrower, the overdue Loan Obligations shall bear interest from the date due to the date paid
at two percent (2%) per annum in excess of the rate of interest that would otherwise be applicable
to the Loan Obligation; (b) upon the occurrence and during the continuance of an Event of Default
beyond any applicable cure period, if any, at the Agent’s option in each instance upon notice to
the Borrower, the unpaid principal balances of the Loans shall bear interest from the date of the
Event of Default or such later date as the Agent shall elect at two percent (2%) per annum in
excess of the rate(s) of interest that would otherwise be in effect on the Loans under the terms of
this Agreement; (c) after the maturity of any Loan, whether by reason of acceleration or otherwise,
the unpaid principal balance of the Loan (including principal, interest, fees and expenses) shall
automatically bear interest at two percent (2%) per annum in excess of

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the rate of interest that would otherwise be in effect on the Loan under the terms of this
Agreement. Interest payable at the Default Rate shall be payable from time to time on demand or,
if not sooner demanded, on the last day of each calendar month.

     Section 2.15. Late Charge. If any payment due under this Agreement is not paid within
ten (10) days of the due date thereof, the Borrower shall, in addition to such amount, pay on
demand of the Agent a late charge equal to five percent (5%) of the amount of such payment.

     Section 2.16. Prepayment of Loans. The Borrower may, at anytime and from time to
time, upon thirty (30) days advance written notice to the Agent or such shorter notice period
agreed to by the Agent, prepay the outstanding amount of the Loans in whole or in part with accrued
interest to the date of such prepayment on the amount prepaid, without penalty or premium, except
as and to the extent specifically provided in this Section 2.16. In the event the Construction
Loan, the Term Loan or the Term Revolving Loan is prepaid in whole, from the Closing Date through
the first twenty-four (24) months after the Conversion Date, the Borrower shall pay a prepayment
fee equal to the following specified percentage of the amount of principal prepaid:

	 	 	 	 	 
	Closing Date – Month 12 after Conversion Date
	 	 	1.00	%
	Months 13 – 24 after Conversion Date
	 	 	0.50	%

Notwithstanding the foregoing, no prepayment fee shall be required if such prepayment is made
pursuant to Section 2.25. Any prepayment does not otherwise affect Borrower’s obligation to pay
any fees due under this Agreement. In addition, in the event any Loan is converted to a Fixed Rate
Loan, the Borrower shall pay the prepayment fee applicable to that fixed interest rate, if any.

     Section 2.17. Withholding Taxes. (a) All payments by the Borrower of amounts payable
under any Loan Document shall be payable without deduction for or on account of any present or
future taxes, duties, or other charges levied or imposed by any governmental authority through
withholding or deduction with respect to any such payments (but excluding (i) any tax imposed on or
measured by the net income or profit of a Bank and (ii) any branch profits tax imposed by the
United States of America or any similar tax imposed by any other jurisdiction in which the Borrower
is located) (all such taxes, duties or other charges, giving effect to the taxes excluded pursuant
to the foregoing parenthetical herein the “Non-Excluded Taxes”). If any Non-Excluded Taxes are so
levied or imposed, the Borrower shall make additional payments in such amounts so that every net
payment of amounts payable by them under any Loan Document, after withholding or deduction for or
on account of any Non-Excluded Taxes, will be equal to the amount provided for herein or therein;
provided that the Borrower may withhold to the extent required by law and shall have no obligation
to pay such additional amounts to any Bank to the extent that such Non-Excluded Taxes are (i)
levied or imposed by reason of the failure or inability of such Bank to comply with the provisions
of Section 2.18, (ii) United States withholding taxes imposed on amounts payable to such Bank at
the time the Bank becomes a party to the Loan Documents, except to the extent that such Bank’s
assignor (if any) was entitled, at the time of assignment, to receive additional amounts from the
Borrower with respect to such Non-Excluded Taxes pursuant to this Section 2.17, (iii) backup
withholding taxes under Section 3406 of the Code or (iv) taxes (including penalties or interest)
that are attributable to a Bank’s or the Agent’s gross negligence or willful misconduct. The
Borrower shall furnish promptly to the Agent for distribution to each affected Bank, as the case
may be, official receipts evidencing any such withholding or reduction.

          (b) Refund. If the Agent or any Bank determines that it has received a refund of any taxes as
to which it has been indemnified by the Borrower or with respect to which the Borrower has paid
additional amounts pursuant to this Section 2.17, it shall pay over such refund to the Borrower
(but only

40

 

to the extent of indemnity payments made, or additional mounts paid, by the Borrower under this
Section 2.17 with respect to the taxes giving rise to such refund), net of all out-of-pocket
expenses of the Agent or such Bank and without interest (other than any interest paid by the
relevant governmental authority with respect to such refund).

     Section 2.18. Withholding Tax Exemption.

          (a) Each Bank that is not incorporated or organized under the laws of the United States of
America or a state thereof (a “Non-U.S. Bank”) agrees that it will deliver to the Borrower and the
Agent on the Closing Date (or, in the case of an assignee, on the date of assignment) two duly
completed copies of either United States Internal Revenue Service Form W8-ECI or W8-BEN (or any
applicable successor form), certifying in either case that such Non-U.S. Bank is entitled to
receive payments from the Borrower under any Loan Document without deduction or withholding of any
United States federal income taxes. In the case of a Non-U.S. Bank claiming exemption from U.S.
federal withholding tax under Section 871(h) or 881(s) of the Code, with respect to payments of
“portfolio interest”, it will deliver to the Borrower and the Agent on the Closing Date (or, in the
case of an assignee, on the date of assignment) two Form W-8 (or any subsequent versions thereof or
successors thereto) properly completed and duly executed by such Non-U.S. Bank claiming complete
exemption from, or a reduced rate of, U.S. federal withholding tax on all payments by the Borrower
under the Loan Documents. Each other Bank agrees to deliver to the Borrowers and the Agent on or
prior to the Closing Date, or in the case of a Bank that is an assignee or transferee of an
interest under this Agreement (unless the respective Bank was already a Bank under immediately
prior to such assignment or transfer), on the date of such assignment or transfer to such Bank, one
or more accurate and complete original signed copies (as the Borrower or Agent may reasonably
request) of United States Internal Revenue Service Form W-9 or successor applicable form (if
required by law), as the case may be, providing the employer identification number for such Bank.
Each Bank which so delivers any form described in this Section 2.18(a) further undertakes to
deliver to the Borrower and the Agent two (2) additional copies of such form on or before the date
such form expires or becomes obsolete or after the occurrence of any event requiring a change in
the most recent form so delivered by it, and such amendments thereto or extensions or renewals
thereof as may be reasonably requested by the Borrower or the Agent, in each case certifying that
such Bank is entitled to receive payments from the Borrower under any Loan Document without
deduction or withholding of any United States federal income taxes, unless an event (including any
change in treaty, law, or regulation) has occurred prior to the date on which any such delivery
would otherwise be required which renders all such forms inapplicable or which would prevent such
Bank from duly completing and delivering any such form with respect to it and such Bank advises the
Borrower and the Agent that it is not capable of receiving such payments without any deduction or
withholding of United States federal income tax.

          (b) A Bank that is entitled to an exemption from or reduction of non-U.S. withholding tax
under the law of the jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Agent), at the time or times prescribed by applicable law or
reasonably requested by the Borrower, such properly completed and executed documentation prescribed
by applicable law as will permit such payments to be made without withholding or at a reduced rate;
provided, that such Bank is legally entitled to complete, execute and deliver such documentation if
in such Bank’s reasonable judgment such completion, execution or submission would not materially
prejudice the legal position of such Bank.

          (c) If the form provided by a Bank at the time such Bank first becomes a party to this
Agreement indicates a U.S. interest withholding tax rate in excess of zero, withholding tax at such
rate

41

 

shall be considered excluded from Non-Excluded Taxes unless and until such Bank provides the
appropriate form certifying that a lesser rate applies, whereupon withholding tax at such lesser
rate shall be considered excluded from Non-Excluded Taxes only for periods governed by such form.

     Section 2.19. Maximum Amount Limitation. Anything in this Agreement, any Note, or the
other Loan Documents to the contrary notwithstanding, the Borrower shall not be required to pay
unearned interest on any Note or any of the Loan Obligations, or ever be required to pay interest
on any Note or any of the Loan Obligations at a rate in excess of the Maximum Rate, if any. If the
effective rate of interest which would otherwise be payable under this Agreement, any Note or any
of the other Loan Documents would exceed the Maximum Rate, if any, then the rate of interest which
would otherwise be contracted for, charged, or received under this Agreement, any Note or any of
the other Loan Documents shall be reduced to the Maximum Rate, if any. If any unearned interest or
discount or property that is deemed to constitute interest (including to the extent that any of the
fees payable by the Borrower for the Loan Obligations to the Banks under this Agreement, any Note,
or any of the other Loan Documents are deemed to constitute interest) is contracted for, charged,
or received in excess of the Maximum Rate, if any, then such interest in excess of the Maximum Rate
shall be deemed a mistake and canceled, shall not be collected or collectible, and if paid
nonetheless, shall, at the option of the holder of such Note, be either refunded to the Borrower,
or credited on the principal of such Note. It is further agreed that, without limitation of the
foregoing and to the extent permitted by applicable law, all calculations of the rate of interest
or discount contracted for, charged or received by the Banks under their Notes, or under any of the
Loan Documents, that are made for the purpose of determining whether such rate exceeds the Maximum
Rate applicable to the Banks, if any, shall be made, to the extent permitted by applicable laws
(now or hereafter enacted), by amortizing, prorating and spreading during the period of the full
terms of the Advances evidenced by the Notes, and any renewals thereof all interest at any time
contracted for, charged or received by the Banks in connection therewith. This Section 2.19 shall
control every other provision of all agreements among the parties to this Agreement pertaining to
the transactions contemplated by or contained in the Loan Documents, and the terms of this Section
2.19 shall be deemed to be incorporated in every Loan Document and communication related thereto.

     Section 2.20. Bank Records. All Advances and all payments or prepayments made
thereunder on account of principal or interest may be evidenced by each of the Banks in accordance
with its usual practice in an account or accounts evidencing such Advances and all payments or
prepayments thereunder from time to time and the amounts of principal and interest payable and paid
from time to time thereunder; in any legal action or proceeding in respect of the Notes, the
entries made in such account or accounts shall be prima facie evidence of the existence and amounts
of all Advances and all payments or prepayments made thereunder on account of principal or
interest.

     Section 2.21. Funding of Advances. Upon receipt by the Agent or a Bank of any Request
for Advance for any Term Revolving Loan Advance, Revolving Line of Credit Advance or any demand for
drawing under a Letter of Credit, the Agent or the Bank shall promptly notify the Borrower and the
other Banks as to the amount to be paid as a result of such Request for Advance, demand for drawing
and the respective payment date. Any notice pursuant to the forgoing sentence shall specify the
amount to be paid as a result of such Request for Advance, demand for drawing and the respective
payment date. Not later than 12:00 P.M. (Minneapolis, Minnesota time) on the applicable payment
date each Bank will make available to the Agent, in immediately available funds, an amount equal to
such Bank’s Pro Rata Share of the amount to be paid as a result of such Request for Advance, demand
or drawing.

     Section 2.22. Participation Obligations Absolute; Failure to Fund Participation. The
obligations of a Bank to fund its participation in the Letters of Credit and Swingline Advances in
accordance with the terms hereof shall be absolute, unconditional, and irrevocable and shall be
performed

42

 

strictly in accordance with the terms of the Loan Documents under all circumstances whatsoever,
including the following circumstances: (a) any lack of validity of any Loan Document; (b) the
occurrence of any Event of Default; (c) the existence of any claim, set-off, counterclaim, defense,
or other right which such Bank, the Borrower or any other Person may have; (d) the occurrence of
any event that has or could reasonably be expected to have a material adverse effect on the
financial conditions or operation of any Bank and its Subsidiaries; (e) the failure of any
condition to an Advance or the issuance of a Letter of Credit under this Agreement to be satisfied;
(f) the fact that after giving effect to the funding of the participation the Outstanding Revolving
Advances may exceed the Borrowing Base; or (g) any other circumstance whatsoever, whether or not
similar to any of the foregoing. If a Bank fails to fund its participation in a Letter of Credit
or a Swingline Advance as required hereby, such Bank shall remain obligated to pay to the Issuer or
the Swingline Bank, as applicable, the amount it failed to fund on demand together with interest
thereon in respect of the period commencing on the date such amount should have been funded until
the date the amount was actually funded to the applicable Person at a rate of interest equal to the
Federal Funds Rate for such period and such Person shall be entitled to offset against any and all
sums to be paid to such Bank hereunder the amount due such Person under this sentence.

     Section 2.23. Farm Credit System Entity Equity Interests. So long as any of the
entities identified in Schedule 2.23 is a Bank under this Agreement, the Borrower will acquire
equity in such Farm Credit System Entities (an “FCS Entity”) in such amounts and at such times as
the FCS Entities may require in accordance with the FCS Entities’ Bylaws and Capital Plans (as each
may be amended from time to time), except that the maximum amount of equity that the Borrower may
be required to purchase in the FCS Entities in connection with the Loans and Swingline Loans made
by the FCS Entities under this Agreement shall not exceed the maximum amount permitted by the FCS
Entities’ Bylaws as of the date of this Agreement. The rights and obligations of the parties with
respect to such equity and any distributions made on account thereof or on account of the
Borrower’s patronage with the FCS Entities shall be governed by the FCS Entities’ Bylaws, except
that if the FCS Entities sell a participation in a portion of any Loans due to the FCS Entities,
the sold portion of the Loans due to the FCS Entities shall not be entitled to patronage
distributions. A sale of participation interest may include certain voting rights of the
participants (to the extent otherwise permitted under Section 8.08) regarding the loans hereunder.
The Borrower hereby consents and agrees that the amount of any distributions with respect to the
Borrower’s patronage with the FCS Entities that are made in qualified written notices of allocation
and that are received by the Borrower from the FCS Entities will be taken into account by the
Borrower at the stated dollar amounts whether the distribution is evidenced by a stock certificate
or other form of written notice that such distribution has been made and recorded in the Borrower’s
name on the FCS Entities’ records. The Loans due to the FCS Entities under this Agreement and
other Indebtedness due to the FCS Entities hereunder shall be secured by a statutory first lien on
all equity that the Borrower may now own or hereafter acquire in the FCS Entities. Such equity
shall not, however, constitute security for Indebtedness due to any other Bank under this
Agreement. The FCS Entities shall not be obligated to set off or otherwise apply such equities to
the Borrower’s Indebtedness to the Bank.

     Section 2.24. Compensation. Upon the request of the Agent, the Borrower shall pay to
the Agent for the account of the Banks such amount or amounts as shall be sufficient (in the
reasonable opinion of the Agent) to compensate it for any loss, cost, or expense (excluding loss of
anticipated profits incurred by it) as a result of: (a) any payment, prepayment, or conversion of
a LIBOR Rate Loan for any reason on a date other than the last day of the Interest Period for such
Loan; or (b) any failure by the Borrower for any reason (including the failure of any condition
precedent specified in Section 3.01 to be satisfied) to borrow, extend, or prepay a LIBOR rate loan
on the date for such borrowing, extension, or prepayment specified in the relevant notice of
borrowing, extension or prepayment under this Agreement. Such indemnification may include any
amount equal to the excess, if any, of: (y) the amount of interest

43

 

which would have accrued on the amount so prepaid, or not so borrowed, converted or extended, for
the period from the date of such prepayment or of such failure to borrow, convert or extend to the
last day of the applicable Interest Period (or in the case of a failure to borrow, convert or
extend, the Interest Period that would have commenced on the date of such failure) in each case at
the applicable rate of interest for such loan as provided for herein, over (z) the amount of
interest (as reasonably determined by the Agent), which would have accrued to the Banks on such
amount by placing such amount on deposit for a comparable period with leading banks in the
interbank LIBOR market. The covenants of the Borrower set forth in this Section 2.24 shall survive
the repayment of the Loans and other obligations under the Loan Documents hereunder.

     Section 2.25. Excess Cash Flow. In addition to all other payments of principal and
interest required under this Agreement, at the end of the first full fiscal quarter following the
Conversion Date, and continuing each fiscal quarter thereafter until the Maturity Date, the
Borrower shall remit to the Agent for the account of the Banks within five (5) days of delivery of
the Financial Statements used to calculate the applicable Excess Cash Flow, an amount equal to one
hundred percent (100%) of the Borrower’s Excess Cash Flow, calculated based upon, with respect to
the first three fiscal quarters of each fiscal year of the Borrower, that fiscal quarter’s interim
Financial Statements, on or before sixty (60) days after the end of each such fiscal quarter of the
Borrower and, with respect to the fourth fiscal quarter of the Borrower, the annual Financial
Statements of the Borrower required to be delivered pursuant to Section 5.01(c)(i), on or before
one hundred and twenty (120) days after the end of each fiscal year of the Borrower (the “Excess
Cash Flow Payment”), provided however, that the total Excess Cash Flow Payments required hereunder
shall not exceed One Million Two Hundred Fifty Thousand and No/100 Dollars ($1,250,000.00) in any
fiscal quarter or Five Million and No/100 Dollars ($5,000,000.00) in any fiscal year (the “Maximum
Excess Cash Flow Payment”). One hundred percent (100%) of the Excess Cash Flow Payment shall be
applied to the reduction of the outstanding principal balance of the Term Loan in the inverse order
of maturity. The Excess Cash Flow Payment shall be re-calculated annually based upon audited
fiscal year-end Financial Statements required by Section 5.01(c)(i). If any such recalculation
evidences an underpayment by the Borrower for such fiscal year, then any time after the audited
annual Financial Statements are required to be delivered pursuant to Section 5.01(c)(i), the
Borrower shall within thirty (30) days of the Agent’s request remit to the Agent for the account of
the Banks any additional amounts, resulting from such underpayment, to the Agent for the account of
the Banks under this Section in an amount not to exceed the Maximum Excess Cash Flow Payment. If
any such recalculation by the Borrower or the Agent evidences an overpayment by the Borrower for
such fiscal year, the Borrower may reduce its next Excess Cash Flow Payment due by the amount of
such overpayment until the entire overpayment is applied. Any Excess Cash Flow Payment or any
other payment from Excess Cash Flow shall not constitute a prepayment with respect to which a
prepayment fee under Section 2.16 is required to be paid. Notwithstanding the foregoing, the
requirement to make an Excess Cash Flow Payment for any fiscal quarter shall not apply if Owner’s
Equity is greater than or equal to sixty percent (60%), but will be reinstated if Owner’s Equity
falls below sixty percent (60%), in each case measured for such fiscal quarter or year end, as the
case may be. Notwithstanding the foregoing, the Excess Cash Flow Payment shall not exceed an
aggregate amount of Twenty-five Million and No/100 Dollars ($25,000,000.00) during the term of this
Agreement.

     Section 2.26. Administrative Fee. The Borrower agrees to pay to the Agent, for
Agent’s own and sole account and not for the account of the Banks, the fees in the amounts
determined from time to time by the agreement of the Borrower and the Agent and as set forth in a
separate letter agreement between the Borrower and the Agent dated as of the date of this
Agreement. Such fees shall be deemed fully earned and non-refundable on the due date thereof.

44

 

     Section 2.27. Commitment Fee. The Borrower agrees to pay to the Agent for the account
of each Bank a commitment fee on the average daily unused portion of such Bank’s Revolving
Commitment from the Conversion Date until the Term Revolving Loan Termination Date or the Revolving
Line of Credit Termination Date, as the case may be, at the rate of twenty-five (25) basis points
on a per annum basis, payable in arrears in quarterly installments on each Quarterly Payment Date
during the term of such Bank’s Revolving Commitment, and on the Term Revolving Loan Termination
Date and/or the Revolving Line of Credit Termination Date. For purposes of this Agreement, the
unused portion of a Bank’s Revolving Commitment for any measurement period shall be the positive
difference, if any, of (a) the average daily amount of such Bank’s Revolving Commitment, minus (b)
the Bank’s Pro Rata Share of the average daily outstanding Revolving Advances and Revolving Letter
of Credit Liabilities, but shall not, for purposes of this Section 2.27 only, be deemed utilized by
any Swingline Advances unless the Banks’ participations therein are funded in accordance with
Section 2.06.

     Section 2.28. Mitigation Obligations; Replacement of Banks.

          (a) If the Borrower is required to pay any additional amount to any Bank or any governmental
authority for the account of any Bank pursuant to Section 2.17, then such Bank shall use reasonable
efforts to designate a different lending office for funding or booking its Loans hereunder or to
assign its rights and obligations hereunder to another of its offices, branches or affiliates if
such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section
2.17 in the future and (ii) would not subject such Bank to any unreimbursed cost or expense and
would not otherwise be materially disadvantageous to such Bank. The Borrower hereby agrees to pay
all reasonable costs and expenses incurred by any Bank in connection with any such designation or
assignment.

          (b) Anything contained herein to the contrary notwithstanding, if the Borrower is required to
pay any additional amount to a Bank or any Governmental Authority for the account of a Bank
pursuant to Section 2.17, or if a Bank defaults in its obligation to fund Loans hereunder or if a
Bank has become insolvent and its assets become subject to a receiver, liquidator, trustee,
custodian or other officer having similar powers, then the Borrower may, at its sole expense and
effort, upon notice to such Bank and the Agent, require such Bank to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in Section 8.07), all its
interests, rights and obligations under this Agreement to an assignee that shall assume such
obligations (which assignee may be another Bank, if a Bank accepts such assignment); provided that
(i) the Borrower shall have received the prior written consent of the Agent to the extent required
by Section 8.07, which consent shall not unreasonably be withheld, (ii) such Bank shall have
received payment of an amount equal to the outstanding principal of its Loans, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the
extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of
all other amounts) and (iii) in the case of any such assignment resulting from payments required to
be made pursuant to Section 2.17, such assignment will result in a reduction in such payments. If,
in connection with any proposed amendment, waiver or consent with respect to any of the provisions
hereof as contemplated by Section 8.01 hereof, the consent of the Required Banks shall have been
obtained, but the consent of one or more other Banks (each, a “Non-Consenting Bank”) whose consent
is required shall not have been obtained, then, with respect to each such Non-Consenting Bank, the
Borrower may, by giving notice to the Agent and such Non-Consenting Bank of its election to do so,
elect to cause such Non-Consenting Bank (and such Non-Consenting Bank hereby irrevocably agrees) to
assign its outstanding Loans and its Commitments, if any, to one or more Assignees (each, a
“Replacement Bank”) in accordance with the provisions of Section 8.07(b) of this Agreement. The
Non-Consenting Bank shall pay the fees, if any, payable thereunder in connection with any such
assignment from such Non-Consenting Bank, provided, that (i) on the date of such assignment, the
Replacement Bank shall pay to the Non-Consenting Bank an amount equal to the sum of (A) an amount
equal to the principal of, and

45

 

all accrued interest on, all outstanding Loans of such Non-Consenting Bank, (B) an amount equal to
all unreimbursed drawings that have been funded by such Non-Consenting Bank, together with all then
unpaid interest with respect thereto at such time and (C) an amount equal to all accrued but
theretofore unpaid fees owing to such Non-Consenting Bank pursuant to Section 2.27, (ii) on the
date of such assignment, the Borrower shall pay any amounts payable to the Non-Consenting Bank
pursuant to Sections 2.24 or 2.29 or this Section 2.28 or otherwise as if it were a prepayment and
(iii) each Replacement Bank shall consent, at the time of such assignment, to each matter in
respect of which such Non-Consenting Bank was a Non-Consenting Bank, provided, further, that the
Borrower may not make any such election with respect to any Non-Consenting Bank which is also the
Issuer unless, prior to the effectiveness of such election, the Borrower shall have caused each
outstanding Letter of Credit issued by such Non-Consenting Bank to be cancelled, fully cash
collateralized or supported by a “back to back” Letter of Credit reasonably satisfactory to the
Non-Consenting Bank.

     Section 2.29. Reserves on LIBOR Rate Loans. The Borrower shall pay to each Bank, as
long as such Bank shall be required under regulations of the Board of Governors of the Federal
Reserve System to maintain reserves with respect to liabilities or assets consisting of or
including Eurocurrency liabilities (as defined in Regulation D), additional interest on the unpaid
principal amount of each LIBOR Rate Loan of such Bank equal to the actual costs of such reserves
allocated to such Loan by such Bank (as determined by such Bank in good faith, which determination
shall be conclusive absent manifest error), which shall be due and payable on each date on which
interest is payable on such Loan, provided that the Borrower shall have received at least 10 days’
prior written notice (with a copy to the Agent) of such additional interest from such Bank. If a
Bank fails to give written notice 10 days prior to the last day of the relevant Interest Period,
such additional interest shall be due and payable 10 days from receipt of such written notice.

     Section 2.30 Debt Service Reserve Account. In addition to all other payments required
under this Agreement, on the first fiscal quarter end following the Conversion Date, as soon as
available, but in no event later than thirty (30) days after the end of such fiscal quarter,
Borrower shall deposit an amount that is not less than one quarterly payment of principal and
interest due under the Term Loan and from time to time thereafter, upon written notice from the
Agent, additional or lesser amounts to account for changes in the quarterly principal and interest
payment amounts due (together, the “Required Debt Service Reserve Deposit Amount”) into the Debt
Service Reserve Account. The interest rate for purposes of the preceding sentence shall be the
applicable interest rate on the Term Loan for the immediately preceding Quarterly Payment Date such
a payment is due. Thereafter, (i) on any Monthly Payment Date on which the aggregate amount in the
Debt Service Reserve Account is less than the Required Debt Service Reserve Deposit Amount,
Borrower shall, as soon as available, but in no event later than five (5) Business Days after such
Monthly Payment Date, deposit amounts into the Debt Service Reserve Account to restore the balance
in such account to the Required Debt Service Reserve Deposit Amount, or (ii) at any time upon
receipt of written notice from the Agent that the amount in the Debt Service Reserve Account is
less than the Required Debt Service Deposit Amount, Borrower shall, as soon as available, but in no
event later than five (5) Business Days after receipt of such notice, deposit amounts into the Debt
Service Reserve Account to restore the balance in such account to the Required Debt Service Reserve
Deposit Amount. Any Affiliated Borrower may restore the balance of any other Affiliated Borrower’s
Required Debt Service Reserve Deposit Amount through loans from other US Bio Entities, provided
that no loan between Affiliated Borrowers may be made if, on the date such loan is made, an Event
of Default has occurred and is continuing or would result therefrom, except for the Event of
Default arising as a result of Borrower’s failure to restore the required balance of the Debt
Service Reserve Account. As and when any Obligation is past due, after any applicable grace
periods have expired, under any Loan Document, Agent, in its sole discretion, may withdraw from the
Debt Service Reserve Account, for a credit to its own account to be held for the benefit of the
Banks, the amount of the

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then past due Obligation. Notwithstanding the foregoing sentence, Agent shall have no obligation
to withdraw any portion of the Debt Service Reserve Account: (i) if an Event of Default has
occurred and is continuing under the Loan Documents, or (ii) to withdraw any of the Debt Service
Reserve Account for any other purpose other than for which the Debt Service Reserve Account was
established, provided that if an Event of Default has occurred and is continuing, the Agent may
withdraw amounts in the Debt Service Reserve Account, in its sole discretion, for the payment of
any Obligation then past due, after any applicable grace periods have expired, in such order and
manner as is consistent with the Agent’s obligations set forth in this Agreement. Withdrawals by
the Agent of any amounts from the Debt Service Reserve Account to pay any Obligation then past due
after any applicable grace periods have expired, may be made without the requirement of any consent
by or notice to the Borrower, provided that Agent shall provide to Borrower and to each Affiliated
Borrower, within five (5) Business Days after any withdrawal from the Debt Service Reserve Account
is made by Agent, notice that such withdrawal was made and the Obligation such withdrawal was
applied to and, if applicable, that the Debt Service Reserve Account is then below the Required
Debt Service Reserve Deposit Amount. Notwithstanding the foregoing, Borrower recognizes and
acknowledges that its obligation to pay required Obligations are absolute and unconditional and it
is not dependent upon sufficient deposits in the Debt Service Reserve Account being available to
make payment on any Obligation, and nothing herein shall be construed to negate or modify the
Borrower’s absolute and unconditional obligation to pay the Obligations in accordance with the
terms and conditions of this Agreement and the Loan Documents.

     2.31 Commitment Termination. The Borrower may terminate any or all of the Commitments
at any time upon five (5) Business Days prior written notice to the Agent or shorter notice period
agreed to be the Agent, provided, that upon receipt of such notice by the Agent, no Bank shall be
committed to make any further Advance to the Borrower under any Loan under any Commitment so
terminated, and that such notice shall not terminate any Obligations of the Borrower under any Loan
Document.

ARTICLE III

CONDITIONS PRECEDENT

     Section 3.01. Conditions Precedent to Funding. The obligations of the Banks to make
the initial Construction Loan Advance, are subject to the conditions precedent that the Agent shall
have received the following, in form and substance satisfactory to the Agent:

               (a) This Agreement, duly executed by the Borrower, the Agent and the Banks;

               (b) The Notes, if any, duly executed by the Borrower;

               (c) The Deed of Trust, fully executed and notarized, granting a first priority Lien on the
Real Property and any improvements thereon to Agent for the benefit of the Banks, subject only to
Permitted Liens;

               (d) The Security Agreement duly executed by the Borrower;

               (e) The Guaranty;

               (f) A copy of the Construction Contract(s), executed on or prior to the date of the initial
Construction Loan Advance (including the Design Agreement and the ICM License Agreement), together
with copies of all permits and government approvals reasonably requested by the Agent relating to
the construction and use of the Project (including building permits, zoning confirmation from
Valley

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County, a conditional use permit, storm water discharge permit for construction, high capacity
well/water supply permit, an air pollution control permit, and well test results) other than those
permits and approvals issued in the ordinary course after commencement of construction;

          (g) An assignment of each of the Construction Contracts, executed on or prior to the date of
the initial Construction Loan Advance (including the Design Agreement and the ICM License
Agreement), reasonably requested by the Agent, duly executed by the Borrower and pursuant to which
the Borrower shall have assigned to the Agent all of the Borrower’s right, title and interest in
and to each such Construction Contract, and which assignment shall have been consented to and
certified in writing by the other party(ies) to each such Construction Contract;

          (h) Copies of all Material Contracts, executed on or prior to the date of the initial
Construction Loan Advance, reasonably requested by the Agent between Borrower and third parties
used in the normal operations of the Borrower, including management agreements, marketing
agreements, and corn delivery agreements;

          (i) Assignments of the Material Contracts, delivered pursuant to Section 3.01(h) (including
the ethanol marketing agreement, DGS marketing agreement, natural gas supply agreement and electric
service agreement) reasonably requested by the Agent, duly executed by the Borrower and pursuant to
which the Borrower shall have assigned to the Agent all of the Borrower’s right, title and interest
in and to each of such contracts, and which assignment shall have been consented to by the other
party(ies) to each such contract;

          (j) Financing Statements in form and substance reasonably satisfactory to the Agent and in
proper form under the applicable Uniform Commercial Code for filing in all jurisdictions as may be
necessary or, in the opinion of the Agent, desirable to perfect the security interests created by
the Security Agreement;

          (k) UCC, tax, and judgment lien search reports listing all financing statements and other
encumbrances which name the Borrower (under its present name and any previous name) and which are
filed in the jurisdictions in which the Borrower is located or organized together with copies of
such financing statements (none of which shall cover the Collateral purported to be covered by the
Security Agreement);

          (l) An ALTA trustee title insurance policy issued by a title insurance company reasonably
acceptable to the Agent, with respect to the Real Property, insuring the Agent and the Banks that
the Deed of Trust creates a valid and enforceable Lien on the Real Property, free and clear of all
defects and encumbrances except Permitted Liens and containing, to the extent the following
endorsements are available in the state where the Real Property is located: (i) a comprehensive
endorsement (ALTA form 9); (ii) a zoning endorsement (ALTA form 3.1) specifying an ethanol
production facility as a permitted use for all of the parcels included in the Real Property; (iii)
a restrictions, encroachments, minerals-owners endorsement (ALTA Form 9.2); and (iv) such other
endorsements as the Agent shall reasonably require. Such title insurance policy shall be in form
and substance reasonably satisfactory to the Agent and shall provide for affirmative insurance and
such reinsurance as the Agent may reasonably request, all of the foregoing in form and substance
reasonably satisfactory to the Agent;

          (m) Maps or plats of the Real Property certified to the Agent and the title insurance company
issuing the policy referred to in Subsection 3.01(l) (the “Title Insurance Company”) in a manner
reasonably satisfactory to the Agent and the Title Insurance Company, dated a date reasonably

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satisfactory to the Agent and the Title Insurance Company by an independent professional licensed
land surveyor, which maps or plats and the surveys on which they are based shall be sufficient to
delete any standard printed survey exception contained in the applicable title policy and be made
in accordance with the Minimum Standard Detail Requirements for Land Title Surveys jointly
established and adopted by the American Land Title Association and the American Congress on
Surveying and Mapping in 1992, and, without limiting the generality of the foregoing, there shall
be surveyed and shown on such maps, plats or surveys the following: (i) the locations on such
sites of all the buildings, structures and other improvements and the established building setback
lines; (ii) the lines of streets abutting the sites and width thereof; (iii) all access and other
easements appurtenant to the sites necessary to use the sites; (iv) all roadways, paths, driveways,
easements, encroachments and overhanging projections and similar encumbrances affecting the site,
whether recorded, apparent from a physical inspection of the sites or otherwise known to the
surveyor; (v) any encroachments on any adjoining property by the building structures and
improvements on the sites; and (vi) if the site is described as being on a filed map, a legend
relating the survey to said map;

          (n) Evidence as to: (i) whether any portion of the Real Property is in an area designated by
the Federal Emergency Management Agency as having special flood or mud slide hazards (a “Flood
Hazard Property”); and (ii) if any portion of the Real Property is a Flood Hazard Property: (A)
whether the community in which such Real Property is located is participating in the National Flood
Insurance Program; (B) the Borrower’s written acknowledgment of receipt of written notification
from the Agent (1) as to the fact that such Real Property is a Flood Hazard Property and (2) as to
whether the community in which each such Flood Hazard Property is located is participating in the
National Flood Insurance Program; and (C) copies of insurance policies or certificates of insurance
of the Borrower evidencing flood insurance reasonably satisfactory to the Agent and naming the
Agent as sole loss payee on behalf of the Banks;

          (o) A certificate of the secretary of the Borrower together with true and correct copies of
the following: (i) the Articles of Organization of the Borrower, including all amendments thereto,
certified by the Office of the Secretary of State of the state of its organization and dated within
thirty (30) days prior to the date hereof; (ii) the Operating Agreement of the Borrower, including
all amendments thereto; (iii) the resolutions of the Board of Governors of the Borrower authorizing
the execution, delivery and performance of this Agreement, the other Loan Documents, and all
documentation executed and delivered in connection therewith to which the Borrower is a party; (iv)
certificates of the appropriate government officials of the state of organization of the Borrower
as to its existence and good standing, and certificates of the appropriate government officials in
each state where each corporate Borrower does business and where failure to qualify as a foreign
corporation would have a material adverse effect on the business and financial condition of the
Borrower, as to its good standing and due qualification to do business in such state, each dated
within 30 days prior to the date hereof; and (v) the names of the officers of the Borrower
authorized to sign this Agreement and the other Loan Documents to be executed by each corporate
Borrower, together with a sample of the true signature of each such officer;

          (p) The legal opinion of legal counsel for the Borrower and the Guarantor in a form and
substance reasonably acceptable to the Agent;

          (q) An intercreditor and subordination agreement between the Agent and any holder of
subordinated debt as to the priority of the Agent’s Security Interests in the Collateral, rights to
payment following an Event of Default, and as to such other matters as reasonably requested by the
Agent;

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          (r) Evidence that the costs and expenses (including attorneys’ fees) referred to in Section
8.04, to the extent incurred and invoiced, shall have been paid in full;

          (s) The results of the Agent’s inspection of the Collateral, and the Agent’s receipt of an
appraisal of the Collateral acceptable to the Agent in its sole discretion;

          (t) Satisfactory review by the Agent of any pending litigation which could reasonably be
expected to have a Material Adverse Effect;

          (u) A Phase I Environmental Assessment in form and substance reasonably acceptable to the
Agent;

          (v) The Borrower shall have ordered the General Contractor to begin construction of the
Project, and construction shall have commenced;

          (w) A schedule, certified by the Borrower as accurate and complete, setting forth: (i) the
necessary licenses, permits and consents required by applicable federal, state, and local
governmental entities required for the lawful construction and operation of the Project known to
the Borrower on the Closing Date; and (ii) the dates such licenses, permits and consents are
planned to be obtained;

          (x) The Agent shall have received, in form and substance reasonably acceptable to the Agent,
an agreement with an Inspecting Engineer of recognized standing and acceptable to the Agent, by
which agreement such Inspecting Engineer agrees to assist the Agent in its inspection of the
Project during construction, review and approve requests for Advances on the Construction Loan on
behalf of the Agent, and provide such additional services as the Agent may reasonably require at
the sole expense of the Borrower;

          (y) The Borrower shall have provided evidence of its commitment to the Project of the
Borrower’s Equity;

          (z) A Commodity Account Control Agreement for all commodity accounts kept and maintained by
the Borrower, if any; and

          (aa) Certificates of the insurance required by Sections 5.01(j) and 5.01(r)(xi) and the Loan
Documents have been obtained by the Borrower, other than with respect to business interruption
insurance.

     Section 3.02. Conditions Precedent to All Advances. The effectiveness of this
Agreement, the obligation of the Banks to make each Advance and the obligation of the Issuer to
issue any Letter of Credit shall be subject to the further conditions precedent that on the Closing
Date (with respect to the effectiveness of this Agreement only) or on the date of such Advance or
Letter of Credit, as applicable, that the following statements shall be true (and the receipt by
the Borrower of the proceeds of such Advance and/or the issuance each Letter of Credit shall be
deemed to constitute a representation and warranty by the Borrower that such statements are true on
such date):

          (a) The representations and warranties contained in Section 4.01, and in the Loan Documents
are true and correct in all material respects as of the date of the request for any Advance to the
same extent and with the same effect as if made at and as of the date thereof except as disclosed
in writing to the Agent and the Banks, except to the extent such representations and warranties
relate to a specific

50

 

earlier date in which case such representations and warranties shall have been true and correct in
all material respects as of such earlier date;

          (b) No Default or Event of Default has occurred and is continuing, or would result from such
Advance or Letter of Credit;

          (c) In the case of a Revolving Line of Credit Advance or Revolving Letter of Credit, after
giving effect thereto, the aggregate outstanding Revolving Line of Credit Advances and Revolving
Letters of Credit do not exceed the Borrowing Base on such date; and

          (d) No order, judgment, decree or ruling has been entered in the City Litigation or the County
Litigation which may result in the suspension, revocation, vacation or impairment of any ordinance,
license, permit, permission or authority necessary for the construction or operation of the
Project.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     Section 4.01. Representations and Warranties of the Borrower. The Borrower represents
and warrants as follows:

          (a) Borrower. The Borrower is a limited liability company duly organized and validly
existing and in good standing under the laws of the State of Minnesota and is qualified to do
business in all other jurisdictions in which the nature of its business makes such qualification
necessary and where the failure to so qualify could reasonably be expected to have a Material
Adverse Effect. The Borrower has the limited liability company power and authority to own and
operate its assets and to carry on its business and to execute, deliver, and perform its
obligations under the Loan Documents to which it is a party. There are no outstanding
subscriptions, options, warrants, calls, or rights (including preemptive rights) to acquire, and no
outstanding securities or instruments convertible into, membership interests (units) of the
Borrower, except for those set forth on Schedule 4.01(a).

          (b) The Loan Documents. The execution, delivery and performance by the Borrower of
the Loan Documents to which it is a party are within the Borrower’s limited liability company
powers, have been duly authorized by all necessary limited liability company action on the part of
the Borrower, do not contravene: (i) the articles of organization or operating agreement of the
Borrower; or (ii) any law or any material contractual restriction binding on the Borrower the
violation of which could reasonably be expected to have a Material Adverse Effect; and, except as
contemplated or created by this Agreement and the other Loan Documents, the execution, delivery and
performance by the Borrower of the Loan Documents do not result in or require the creation of any
Lien upon or with respect to any of its properties.

          (c) Governmental Approvals. Except for filings in connection with the perfection of
the Liens created by the Loan Documents, no consent, authorization or order of any Governmental
Authority or of any party to any agreement to which the Borrower is a party or by which it or any
of its property is bound, is necessary in connection with the construction of the Project, the
execution, delivery or performance of the Loan Documents or the perfection of the liens and
security interests contemplated thereby, except as have, in all material respects, been obtained or
made (or waived) and are in full force and effect or are issued in the ordinary course after
commencement of construction.

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          (d) Enforceability. This Agreement is, and each other Loan Document to which the
Borrower is a party when delivered will be, legal, valid and binding obligations of the Borrower
enforceable against the Borrower in accordance with their respective terms, except as may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting
the enforcement of creditor’s rights generally and by general principles of equity.

          (e) Financial Condition and Operations. The balance sheet of the Borrower, as of
October 31, 2006, and, with respect to the period ended October 31, 2006, the related statement of
cash flow of the Borrower for the fiscal period then ended, copies of which have been furnished to
the Agent, fairly present in all material respects the financial condition of the Borrower as at
such date, and the results of the operations of the Borrower for the period ended on such dates.
Since the date of the annual Financial Statements delivered by the Borrower for its first fiscal
year after the Substantial Completion Date, there has been no event or condition which could
reasonably be expected to have a Material Adverse Effect.

          (f) Litigation. Except as described on Schedule 4.01(f), there is no pending or, to
the knowledge of the Borrower, threatened action or proceeding against the Borrower before any
Governmental Authority (i) which could reasonably be expected to have a Material Adverse Effect or
(ii) with respect to any Loan Document. As of the Closing Date, there are no outstanding judgments
against the Borrower.

          (g) Use of Proceeds of Advances, etc. (i) the Borrower is not engaged in the business
of extending credit for the purpose of purchasing or carrying “margin stock” (within the meaning of
Regulation U issued by the Board of Governors of the Federal Reserve System) and (ii) no proceeds
of the Loans will be used to purchase or carry any margin stock in violation of applicable law.

          (h) Liens. Except as created by the Loan Documents, and the Permitted Liens, there is
no Lien upon or with respect to any of the properties of the Borrower, which secures Debt of any
Person, except as described in Schedule 5.02(a).

          (i) Taxes. The Borrower (A) has filed or caused to be filed all federal income and
all material state and local tax returns that are required to be filed and (B) has paid all
material taxes, assessments, and governmental charges or levies upon it and its property, income,
profits and assets which are shown to be due and payable on a return or report described in clause
(A), except where (i) such items are not yet delinquent or (ii) the payment of such tax,
assessment, government charge or levy is being contested in good faith and by appropriate
proceedings and adequate reserves in compliance with GAAP have been set aside on the Borrower’s
books therefor.

          (j) Solvency. The Borrower: (i) owns assets the fair saleable value of which are:
(A) greater than the total amount of liabilities (including a reasonable estimate of contingent
liabilities); and (B) greater than the amount that will be required to pay the probable liabilities
of its then existing debts as they become absolute and matured considering all financing
alternatives and potential asset sales reasonably available to it; (ii) has capital that is not
unreasonably small in relation to its business as presently conducted; and (iii) does not intend to
incur and does not believe that it will incur debts beyond its ability to pay such debts as they
become due.

          (k) Location of Inventory and Farm Products; Third Parties in Possession; Crops. As
of the date hereof, the Borrower’s Inventory pledged as Collateral under the Security Agreement
with a fair market value in excess of $1,000,000.00 is located at the places (or, as applicable,
jurisdictions) specified in Schedule 4.01(k), except to the extent any such Inventory is in
transit.

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Schedule 4.01(k) correctly identifies, as of the date hereof, the landlords or trustees, if any, of
each of its locations identified in Schedule 4.01(k) currently leased or owned by the Borrower.
Except for the Persons identified on Schedule 4.01(k), as of the date hereof, no Person other than
the Borrower or the Agent has possession of any of the Borrower’s Inventory with a fair market
value in excess of $1,000,000.00. Except as described above, as of the date hereof, none of the
Borrower’s Inventory has been located in any location within the past four months other than as set
forth on Schedule 4.01(k) for the Borrower.

          (l) Office Locations; Fictitious Names; Predecessor Companies; Tax I.D. Number. As of
the date hereof, the Borrower’s chief place of business, its chief executive office, and its
jurisdiction of organization are located at the places identified on Schedule 4.01(l). Within the
last four months from the date hereof, the Borrower has not had any other chief place of business,
chief executive office, or jurisdiction of organization. Schedule 4.01(l) also sets forth, as of
the date hereof, all other places where the Borrower keeps its books and records and all other
locations where the Borrower has a place of business. As of the date hereof, the Borrower does not
do business under any trade-name or fictitious business name except as disclosed on Schedule
4.01(l). Schedule 4.01(l) sets forth an accurate list as of the date hereof of all names of all
predecessor companies of the Borrower including the names of any entities it acquired (by stock
purchase, asset purchase, merger or otherwise). For purposes of the foregoing, a “predecessor
company” shall mean any Person whose assets or equity interests are acquired by the Borrower or who
was merged with or into the Borrower within the last four months prior to the date hereof.
Schedule 4.01(l) sets forth, as of the date hereof, the Borrower’s United States Federal Income Tax
I.D. Number and state organizational identification number.

          (m) Title to Properties. The Borrower has good and marketable fee title to the Real
Property and owns or has rights in all of its Personal Property in each case necessary for the
conduct of its business in each case subject to Permitted Liens and in each case necessary for the
conduct of business and subject to Permitted Liens.

          (n) Disclosure. All factual information furnished by the Borrower or the Subsidiaries
in writing to the Agent (including all factual information contained in the Loan Documents)
(excluding projections, estimates, other forward-looking information and pro forma financial
information) for purposes of or in connection with this Agreement or the other Loan Documents taken
as a whole is true and correct in all material respects on and as of the date as of which such
information is dated or certified and such factual information does not omit to state any material
fact necessary to make such information taken as a whole not materially misleading as of the time
made or delivered in light of the circumstances under which such information was made or provided.

          (o) Operation of Business. The Borrower possesses all licenses, permits, franchises,
patents, copyrights, trademarks, or rights thereto, necessary to conduct its business substantially
as now conducted except those licenses, permits, franchises, patents, copyrights, trademarks or
rights thereto for which the failure to so possess could not reasonably be expected to have a
Material Adverse Effect, and the Borrower is not in violation of any valid rights of other Persons
with respect to any of the foregoing except violations that could not reasonably be expected to
have such a Material Adverse Effect.

          (p) Intellectual Property. The Borrower owns, or has the legal right to use, all
patents, registered trademarks and registered copyrights which are necessary for it to conduct its
business as currently conducted (collectively the “Intellectual Property”), except where the
failure to so own or so have such legal right to use could not reasonably be expected to have a
Material Adverse Effect. As of the Closing Date, set forth in Schedule 4.01(p) is a list of all
Intellectual Property registered with the

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United States Copyright Office or the United States Patent and Trademark Office and owned by the
Borrower. Except as provided in Schedule 4.01(p), to the knowledge of the Borrower, no claim has
been asserted and is pending by any Person challenging or questioning the use of any such
Intellectual Property or the validity or effectiveness of any such Intellectual Property, nor does
the Borrower know of any such claim, and, to the knowledge of the Borrower, the use of such
Intellectual Property by the Borrower does not infringe on the rights of any Person, except for
such claims or infringements that, in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.

          (q) Employee Benefit Plans. The Borrower is in compliance in all material respects
with the applicable provisions of ERISA, except where the failure to so comply could not reasonably
be expected to have a Material Adverse Effect.

          (r) Investment Company Act. The Borrower is not required to be registered as an
“investment company” within the meaning of the Investment Company Act of 1940, as amended.

          (s) Compliance with Laws. The Borrower is in compliance in all material respects with
all laws, rules, regulations, ordinances, codes and orders applicable to it, except where the
failure to so comply could not reasonably be expected to have a Material Adverse Effect.

          (t) Environmental Compliance. Except as set forth in Schedule 4.01(t), the Borrower
is in compliance with all applicable Environmental Laws except where the failure to so comply could
not reasonably be expected to have a Material Adverse Effect.

          (u) Material Contracts. The Borrower has performed all of its material obligations,
other than those obligations for which performance is not yet due, under all Material Contracts,
except where the failure to so perform could not reasonably be expected to have a Material Adverse
Effect. To the knowledge of the Borrower, each such Material Contract is in full force and effect
in accordance with the terms thereof.

ARTICLE V

COVENANTS OF THE BORROWER

     Section 5.01. Affirmative Covenants. So long as any Loan Obligations (other than
contingent indemnification obligations not then due and payable) remain unpaid or the Banks shall
have any commitment hereunder, the Borrower shall, unless the Agent shall otherwise consent in
advance in writing:

          (a) Compliance with Laws, etc. Comply in all material respects with all laws, rules,
regulations and orders applicable to it, including (i) zoning and land use laws, (ii) employee
benefit and Environmental Laws, and (iii) paying before the same become delinquent all taxes,
assessments and governmental charges imposed upon it or upon its property except for items which
are not yet delinquent or to the extent contested in good faith except, in each case, where the
failure to so comply with such laws, rules, regulations or orders could not reasonably be expected
to have a Material Adverse Effect.

          (b) Visitation Rights; Field Examination. During normal business hours and from time
to time upon reasonable prior written notice, permit the Agent or its representatives to (i)
examine and make copies of and abstracts from the records and books of account of the Borrower, and
(ii) enter onto the Real Property of the Borrower to conduct field examinations and Collateral
inspections, provided that such inspections or examinations do not unreasonably interfere with the
Borrower’s use of the Real

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Property or delay progress on the Project, and (iii) discuss the affairs, finances, and accounts of
the Borrower with any of the Borrower’s Senior Officers, provided that the Borrower shall be
obligated to reimburse the Agent for its reasonable and documented out-of-pocket costs and expenses
in connection with only one such visit and/or inspection during any fiscal year while no Event of
Default exists and is continuing. Upon the occurrence and during the continuance of an Event of
Default or in the event that there are deemed by the Agent to be any material inconsistencies
and/or material noncompliance with respect to any financial or other reporting on the part of the
Borrower, then with respect to any and all visits and inspections described in clauses (i), (ii)
and (iii) above deemed necessary or desirable on account of such Event of Default, inconsistency
and/or noncompliance, Borrower shall be required to reimburse the Agent for the reasonable and
documented out-of-pocket costs and expenses of the Agent in connection with such visits or
inspections. In addition to the foregoing, at any reasonable time during normal business hours and
from time to time as the Agent may reasonably request upon reasonable prior written notice, the
Borrower also shall permit the Agent or representatives thereof, at the expense of the Agent, to
examine and make copies of and abstracts from the records and books of account of, and visit the
properties of, the Borrower, and to discuss the affairs, finances and accounts of the Borrower with
any of its officers.

     (c) Reporting Requirements. Furnish to the Agent:

          (i) beginning with the first fiscal year end following the Substantial Completion Date, as
soon as available, but in no event later than one hundred twenty (120) days after the end of each
fiscal year of the Borrower occurring after the Conversion Date and during the term hereof, a copy
of reviewed (unaudited) financial statements (including balance sheet, statements of income and
cash flows and, if any, accompanying notes thereto (the “Financial Statements”)), for such fiscal
year for the Borrower, which Financial Statements shall be prepared by McGladrey & Pullen, LLP or
another accounting firm reasonably acceptable to the Agent. Such Financial Statements shall be
accompanied by a Compliance Certificate, calculated as of the last day of the fiscal period set
forth in such Financial Statements;

          (ii) beginning with the first fiscal quarter end following the Substantial Completion Date, as
soon as available, but in no event later than sixty (60) days after the end of each of the first
three fiscal quarters of each fiscal year of the Borrower occurring after the Conversion Date and
during the term hereof, a copy of unaudited quarterly consolidated Financial Statements of the
Borrower, in each case prepared in accordance with GAAP in all material respects (except for the
omission of footnotes and for the effect of normal year-end audit adjustments). Such Financial
Statements shall be prepared in comparative form, including a comparison of actual performance to
the budget for such quarter and year-to-date;

          (iii) promptly upon the Agent’s request therefor, copies of all reports and notices which the
Borrower or any Subsidiary files under ERISA with the Internal Revenue Service or the Pension
Benefit Guaranty Corporation or the U.S. Department of Labor or which the Borrower or any
Subsidiary receives from the Pension Benefit Guaranty Corporation or the U.S. Department of Labor;

          (iv) notwithstanding anything to the contrary set forth in the foregoing Section 5.01(c)(iii),
within thirty (30) days after a Senior Officer of the Borrower becomes aware of the occurrence of
any Reportable Event (as defined in Section 4043 of ERISA) applicable to the Borrower or any
Subsidiary, a statement describing such Reportable Event and the actions the Borrower proposes to
take in response to such Reportable Event;

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          (v) following the Substantial Completion Date, by November 1 of each fiscal year of the
Borrower, an annual (presented on a quarterly basis) operating and capital assets budget of the
Borrower for the immediately succeeding fiscal year;

          (vi) following the Substantial Completion Date, as soon as available but in no event later
than forty-five (45) days after the end of each month, production reports for the immediately
preceding calendar month setting forth corn inputs, ethanol output, DGS and carbon dioxide output,
and natural gas usage, together with such additional production information as reasonably requested
by the Agent;

          (vii) promptly, and in any event within ten (10) Business Days after any Senior Officer of the
Borrower obtains knowledge of the occurrence of an Event of Default or a Default that is
continuing, notice of such Event of Default or Default;

          (viii) promptly after the receipt thereof, a copy of any management letters or written reports
submitted to the Borrower by its independent certified public accountants with respect to the
business, financial condition or operation of the Borrower;

          (ix) promptly after the receipt thereof, a copy of any notice of default under any Long-Term
Marketing Agreement;

          (x) promptly after transmittal or filing thereof by the Borrower or the Guarantor, copies of
all proxy statements, notices and reports sent to its members or shareholders and copies of all
registration statements (without exhibits) and all reports which it files with the Securities and
Exchange Commission (or any governmental body or agency succeeding to the functions of the
Securities and Exchange Commission); provided that, for purposes of this Section 5.01(c)(x), notice
of the filing with the Securities and Exchange Commission shall constitute delivery of such proxy
statements, registration statements, notices or reports;

          (xi) promptly after request therefor, such other information respecting the condition or
operations, financial or otherwise, of the Borrower or any Subsidiary as the Agent may from time to
time reasonably request;

          (xii) promptly, and in any event within ten (10) Business Days after the commencement thereof,
notice of the commencement of any action, suit, or proceeding brought or initiated against the
Borrower or any of its Subsidiaries before any court, arbitrator, or Governmental Authority which
could reasonably be expected to have a Material Adverse Effect;

          (xiii) without limiting the provisions of Section 5.01(c)(xii) above, promptly and in any
event within ten (10) Business Days after receipt thereof, notice of the receipt of all pleadings,
orders, complaints, indictments, or any other communication alleging liability under, or a
violation of, any applicable Environmental Law where such liability or violation could reasonably
be expected to have a Material Adverse Effect;

          (xiv) promptly after filing, receipt or becoming aware thereof, copies of any filings or
communications sent to and notices or other communications received by the Borrower or any of its
Subsidiaries from any Governmental Authority relating to any material noncompliance by the Borrower
or any of its Subsidiaries with any laws or with respect to any matter or proceeding the effect of
which could reasonably be expected to have a Material Adverse Effect;

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          (xv) promptly after a Senior Officer of the Borrower becoming aware thereof, notice of any
development or event which has had or could reasonably be expected to have a Material Adverse
Effect;

          (xvi) beginning with the fourth month after the Substantial Completion Date, the Borrower will
furnish to the Agent as soon as available and in any event within forty-five (45) days after the
end of each month (or at such other times or with such greater frequency as is reasonably
requested by the Agent), a duly completed Borrowing Base Certificate, setting forth the Borrowing
Base as of the last day of such month, certified by the appropriate authorized Senior Officer; and

          (xvii) beginning with the end of the first fiscal quarter after the Substantial Completion
Date, the Borrower will furnish to the Agent as soon as available and in any event within thirty
(30) days after the end of each fiscal quarter (or at such other times or with such greater
frequency as is reasonably requested by the Agent), a certificate stating the principal amount of:
(a) each loan made by the Borrower to any Affiliated Borrower or other Affiliate or Subsidiary of
the Borrower, (b) each loan made to the Borrower by any Affiliated Borrower or other Affiliate or
Subsidiary of the Borrower, and (c) each account receivable or account payable of the Borrower to
each Affiliated Borrower or other Affiliate or Subsidiary of the Borrower.

     (d) Working Capital. Achieve Working Capital of at least Eight Million and No/100
Dollars ($8,000,000.00) on the Substantial Completion Date, and achieve and maintain Working
Capital of at least Twelve Million and No/100 Dollars ($12,000,000.00) on and after the date that
is twelve (12) months after the Substantial Completion Date.

     (e) Net Worth. On the Substantial Completion Date, the Borrower’s Net Worth shall be
not less than Thirty-one Million Six Hundred Thousand and No/100 Dollars ($31,600,000.00). At the
end of the first fiscal year after the Substantial Completion Date, and continually thereafter,
measured at the end of each fiscal year, the Borrower shall achieve and maintain Net Worth in an
amount equal to the lesser of: (i) the Borrower’s Net Worth at the end of the immediately
preceding fiscal year plus Two Million and No/100 Dollars ($2,000,000.00); or (ii) the Borrower’s
Net Worth at the end of the immediately preceding fiscal year plus the Borrower’s retained earnings
at the end of the current fiscal year.

     (f) Owner’s Equity. To achieve and maintain a minimum Owner’s Equity of 40% at the
end of the first twelve (12) months after the Substantial Completion Date and thereafter.

     (g) Fixed Charge Coverage Ratio. As of the last day of the twelfth (12th)
month following the Substantial Completion Date and as of the last day of each fiscal year
thereafter, have a Fixed Charge Coverage Ratio for any period of twelve months ending as of the
last day of such fiscal year of not less than 1.25 to 1.00.

     (h) [Reserved]

     (i) Landlord and Trustee Waivers. Obtain and furnish to the Agent as soon as
available, waivers, acknowledgments and consents, duly executed by each: (i) real property owner,
landlord and trustee having an interest in any of the premises leased by the Borrower or in which
any material Collateral of the Borrower is located or to be located (and if no Collateral of the
Borrower is located at a parcel of property not leased by the Borrower, no such waivers,
acknowledgments or consents will be required); and (ii) each third party holding any material
Collateral; all in form and substance reasonably acceptable to the Agent, except as otherwise
agreed to by the Agent.

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          (j) Insurance. Maintain insurance with financially sound and reputable insurance
companies in such amounts and covering such risks as are usually carried by entities engaged in
similar businesses and owning similar properties in the same general areas in which the Borrower
operates, including workers’ compensation insurance, on and after the date the Project becomes
operational property insurance and comprehensive general liability insurance, directors and
officers liability insurance, commercial liability insurance, on and after the Conversion Date
business interruption insurance, on and after commencement of construction of the Project and until
the date the Project becomes operational builder’s risk insurance, and general commercial property
insurance or such other amounts and risk as approved by the Agent. All such policies (other than
workers’ compensation insurance and directors and officers liability insurance) insuring any
Collateral for the Borrower’s obligations to the Agent or the Banks shall have mortgagee loss
payable clauses or endorsements in form and substance reasonably acceptable to the Agent. Each
insurance policy covering Collateral shall be in compliance with the requirements of the Loan
Documents in all material respects.

          (k) Property Maintenance. Maintain and preserve all of its property and each and
every part and parcel thereof that is necessary to or useful in the proper conduct of its business
in good working order and condition, ordinary wear and tear excepted and except as may be disposed
of in accordance with the terms of the Loan Documents, and make all repairs, replacements, and
renewals thereof as may from time to time be necessary in order to ensure that its properties
remain in good working order and condition, except, in each case, as could not reasonably be
expected to have a Material Adverse Effect. The Borrower agrees that upon the occurrence and
during the continuing existence of an Event of Default, at the Agent’s request, which request may
not be made more than once a year, the Borrower will furnish to the Agent a report on the condition
of the Borrower’s and any Subsidiary’s property prepared by a professional engineer reasonably
satisfactory to the Agent.

          (l) Keeping Books and Records. Maintain and cause each of its Subsidiaries to
maintain adequate books of record and account in which full, true, and correct entries to permit
the preparation of Financial Statements in conformity with GAAP shall be made of all dealings and
transactions in relation to its business and activities.

          (m) Food Security Act Compliance. If the Borrower acquires any Collateral with a fair
market value in excess of $100,000.00 which may have constituted farm products in the possession of
the seller or supplier thereof, the Borrower shall, at its own expense, use commercially reasonable
efforts to take such steps to insure that all liens (except the Liens granted pursuant to the Loan
Documents) in such acquired Collateral are terminated or released, including in the case of such
farm products produced in a state which has established a Central Filing System (as defined in the
Food Security Act), registering with the Secretary of State of such state (or such other party or
office designated by such state) and otherwise take such reasonable actions necessary, as
prescribed by the Food Security Act, to purchase farm products free of liens (except the Liens
granted pursuant to the Loan Documents); provided, however, that the Borrower may contest and need
not obtain the release or termination of any lien asserted by any creditor of any seller of such
farm products, so long as it shall be contesting the same by proper proceedings and maintain
appropriate accruals and reserves therefor in accordance with GAAP. Upon the Agent’s request made,
the Borrower agrees to forward to the Agent promptly after receipt copies of all notices of liens
and master lists of Effective Financing Statements delivered to the Borrower pursuant to the Food
Security Act, which notices and/or lists pertain to any of the Collateral, with a fair market value
in excess of $100,000.00. Upon the Agent’s request, the Borrower agrees to provide the Agent with
the names of Persons who supply the Borrower with such farm products and such other information as
the Agent may reasonably request with respect to such Persons.

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          (n) Warehouse Receipts. If any warehouse receipt is issued in respect of any portion
of the Collateral with a fair market value in excess of $1,000,000.00, then the Borrower: (i) will
not permit such warehouse receipt or receipts in the nature thereof to be “negotiable” as such term
is used in Article 7 of the UCC; and (ii) if so requested by the Agent, will deliver all such
receipts to the Agent (or a Person designated by the Agent) within five (5) Business Days after the
Borrower’s receipt and from time to time thereafter. If no Event of Default exists, the Agent
agrees to deliver to the Borrower any receipt so held by the Agent upon the Borrower’s request in
connection with such sale or other disposition of the underlying Inventory, if such disposition is
in the ordinary course of the Borrower’s business.

          (o) Management of Borrower. Promptly, and in any event within 10 Business Days,
provide notice to the Agent of any change in its Plant Manager.

          (p) Compliance with Other Agreements. The Borrower will perform in all material
respects all obligations and abide in all material respects by all covenants and agreements
contained in the following agreements: (i) any and all Long Term Marketing Agreements; and (ii)
any other Material Contracts except, in each case, where failure to do so could not reasonably be
expected to have a Material Adverse Effect.

          (q) Additional Assurances. Make, execute and deliver to the Agent such promissory
notes, mortgages, deeds of trust, financing statements, control agreements, instruments, documents
and other agreements as the Agent or its counsel may reasonably request to evidence and secure the
Loans and to perfect its Security Interests as contemplated by the Loan Documents.

          (r) Construction of Project. The Borrower shall:

               (i) diligently proceed with construction of the Project in accordance with the Construction
Documents and in accordance with all applicable laws and ordinances and will complete the Project
on or before the Substantial Completion Date;

               (ii) use the proceeds of all Construction Advances solely to pay the Project Costs as
specified in the Project Sources and Uses Statement;

               (iii) use commercially reasonable efforts to require the Contractor(s) to comply with all
rules, regulations, ordinances and laws relating to work on the Project;

               (iv) obtain the Agent’s prior written approval of any change to the Project as set forth in
the Certified Construction Statement which change has a cost of Fifty Thousand and No/100 Dollars
($50,000.00) or greater and which could reasonably be expected to materially adversely affect the
value of the Agent’s security. The Agent will have a reasonable time, not to exceed 30 days after
receipt of such written request and all appropriate supporting documents, to evaluate any requests
for its approval of any changes referred to in this Section 5.01(r)(iv); provided that the Agent
may not disapprove changes that are consistent with the ethanol industry standards if the Borrower
deposits funds as may be required in the following sentence. The Agent may approve or disapprove
such changes in its reasonable discretion, subject to the foregoing provisions of this Section
5.01(r)(iv). If it reasonably appears to the Agent that any change may increase the Project Costs
by an amount greater than $50,000.00 the Agent may require the Borrower to deposit additional funds
with the Agent pursuant to Section 2.02(g) of this Agreement in an amount sufficient to cover the
increased costs as a condition to giving its approval if so required
pursuant to
Section 2.02(g);

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          (v) comply with and keep in effect all necessary permits and approvals required to be obtained
from any Governmental Authority relating to the lawful construction of the Project. The Borrower
will comply with all applicable laws, regulations, orders, and requirements of any Governmental
Authority having jurisdiction over the Real Property or Project, and with all recorded restrictions
affecting the Real Property;

          (vi) furnish to the Agent from time to time on reasonable request by the Agent, in a form
reasonably acceptable to the Agent, correct lists of all Contractors employed in connection with
construction of the Project and true and correct copies of all executed contracts with such
Contractors with a value in excess of $100,000.00. The Agent may contact any such Contractor to
verify any facts disclosed in such lists, the Borrower shall consent to the disclosure of such
information by such Contractor to the Agent or its representatives upon the Agent’s reasonable
request;

          (vii) upon completion of the building foundation of the Project, deliver to the Agent an
“as-built” survey of the Real Property which: (A) sets forth the location and exterior lines of
the Real Property and includes any and all improvements completed on the Real Property; (B)
demonstrates compliance with all applicable setback requirements; (C) demonstrates that the
Project is entirely within the exterior boundaries of the Real Property and any building
restriction lines and does not encroach upon any easements or rights-of-way; and (D) contains such
other information as the Agent may reasonably request;

          (viii) not purchase any materials, equipment, fixtures, or articles of personal property
placed in the Project prior to the Conversion Date under any security agreement or other agreement
where the seller reserves or purports to reserve title or the right of removal or repossession
after their incorporation in the Real Property, unless authorized by the Agent in writing;

          (ix) pay and discharge all claims and liens for labor done and materials and services
furnished in connection with the construction of the Project other than such claims and liens
contested in good faith, and other than claims and liens to be paid pursuant to the terms of a
Construction Contract; provided that the Borrower may diligently contest in good faith any claim or
lien, provided that it does not adversely affect the Borrower’s ability to obtain title insurance
in the manner required by this Agreement and the Disbursing Agreement. Upon the Agent’s reasonable
request, the Borrower will promptly provide a bond, cash deposit, or other security reasonably
satisfactory to the Agent and reasonably necessary to protect the Agent’s interest and security
should such contest be unsuccessful;

          (x) at the Agent’s reasonable request and expense, post signs which the Borrower has
previously approved (as to form and location) on the Real Property for the purpose of identifying
the Agent as a lender for the Project. At the reasonable request of the Agent the Borrower will
use its reasonable efforts to identify the Agent as a lender in publicity concerning the Project;

          (xi) on and after commencement of construction of the Project and until the date the Project
becomes operational, maintain in force builder’s risk insurance in such amounts, form, risk
coverage, deductibles, insurer, loss payable and cancellation provisions as reasonably required by
the Agent. The Agent’s approval, however, will not be a representation of the solvency of any
insurer or the sufficiency of any amount of insurance;

          (xii) pay the Agent’s reasonable and documented out of pocket costs and expenses incurred in
connection with the making or disbursement of the Loans or in the exercise of any of its rights or
remedies under this Agreement, including but not limited to reasonable and documented out of pocket
costs and expenses relating to title insurance and escrow charges, disbursing agent fees,

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recording charges, mortgage taxes, deed of trust taxes, and reasonable legal fees and
disbursements. The provisions of this paragraph will survive the termination of this Agreement,
and the repayment of the Loans;

               (xiii) if required by the Agent, the Borrower will submit to the Agent at such times as it
reasonably requires (which will in no event be more often than monthly) a statement which
accurately shows the application of all funds expended to date for construction of the Project and
the source of those funds as well as the Borrower’s best estimate of the funds needed to complete
the Project and the source of those funds. The Borrower will promptly supply the Agent with any
Financial Statements or other information concerning its affairs and properties as the Agent may
reasonably request, and will promptly notify the Agent of any material adverse change in its
financial condition or in the physical condition of the Property or Project;

               (xiv) comply in all material respects with the requirements of any commitment or agreement
entered into by the Borrower with any Governmental Authority to assist the construction or
financing of the Real Property and/or Project and with the terms of all applicable laws,
regulations, and requirements governing such assistance; and

               (xv) indemnify and hold the Agent harmless from and against all liabilities, claims, damages,
reasonable costs, and reasonable expenses (including but not limited to reasonable legal fees and
disbursements) arising out of or resulting from any defective workmanship or materials occurring in
the construction of the Project. Upon demand by the Agent, the Borrower will defend any action or
proceeding brought against the Agent alleging any defective workmanship or materials, or the Agent
may elect to conduct its own defense, and the Borrower shall reimburse the Agent for the reasonable
and documented out-of-pocket costs of such defense. The provisions of this paragraph will survive
the termination of this Agreement, and the repayment of the Loans.

               (s) Banks’ Reliance. The Borrower acknowledges that the Agent and the Banks are
entering into the transactions contemplated by this Agreement in reliance upon the Borrower’s
identity as a legal entity that is separate from any other US Bio Entity. Therefore, from and
after the date of execution and delivery of this Agreement, the Borrower shall take all reasonable
steps including all steps that the Agent may from time to time reasonably request to maintain the
Borrower’s identity as a separate legal entity and to make it manifest to third parties that the
Borrower is an entity with assets and liabilities distinct from those of any other US Bio Entity,
and not just a division of any US Bio Entity, in each case consistent with past practices. Without
limiting the generality of the foregoing and in addition to the other covenants set forth herein,
the Borrower shall:

          (i) observe all organizational and governance formalities as a distinct legal entity;

          (ii) maintain the Borrower’s books and records separate from those of any other US Bio Entity
and otherwise readily identifiable as its own assets rather than assets of any other US Bio Entity;
and

          (iii) prepare the Borrower’s Financial Statements separately from those of any other US Bio
Entity and insure that any consolidated financial statements of any other US Bio Entity that
include the Borrower have detailed notes clearly stating that the Borrower is a separate legal
entity and that its assets will be available first to satisfy the claims of the creditors of the
Borrower.

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          (t) Debt Service Reserve Account. Establish and maintain a Debt Service Reserve
Account, and deposit and maintain the Required Debt Service Reserve Deposit Amount in such account
in accordance with the provisions of Section 2.30.

          (u) Account Control Agreements. Execute and deliver any and all deposit, commodity,
and securities account control agreements the Agent may reasonably request in accordance with the
terms and conditions of the Security Agreement, and take all actions and deliver all documents the
Agent may reasonably request or require to perfect its Lien in any such accounts of the Borrower,
in each case in accordance with the terms and conditions of the Security Agreement.

          (v) Insurance. In case of any loss covered by any policy of casualty insurance held
as Collateral, the Agent is hereby authorized at its option and without the consent of the Borrower
to settle, adjust and compromise any claim arising out of such policies, and to collect and receive
the proceeds payable therefrom; provided, that the Borrower may itself adjust and collect for any
losses arising out of a single occurrence aggregating not in excess of $500,000.00, or other amount
agreed to by the Agent. Any expense incurred by the Agent in the adjustment and collection of
insurance proceeds (including the cost of any independent appraisal of the loss or damage on behalf
of the Agent) shall be reimbursed to the Agent first out of any proceeds of such policy of
insurance. So long as no Event of Default has occurred and is continuing at the time of releases
of such proceeds (other than as a result of such casualty), the proceeds or any part of any
casualty proceeds shall be released to the Borrower and shall be applied to the restoration or
repair of the Project or to the reduction of the Debt under this Agreement in the inverse order of
maturity, whether due or not, without the application of any prepayment premium, the choice of
application to be solely at the discretion of the Borrower, and upon the occurrence and
continuation of an Event of Default at the sole discretion of the Agent.

          (w) Condemnation. The Borrower shall give the Agent prompt notice of any action,
actual or threatened, in condemnation or eminent domain. The Borrower may in good faith contest
any condemnation or eminent domain action by appropriate legal action or proceedings. Any such
contest shall be prosecuted with due diligence. The Borrower hereby irrevocably agrees that the
Agent may, to the extent of the remaining unpaid Debt, receive the proceeds of any award, payment
or claim for damages for all or any part of the Project taken or damaged, whether temporary or
permanent, under the power of eminent domain or condemnation, and authorizes the Agent to intervene
in any such action in the name of the Borrower and to collect and receive from the condemning
authorities and give proper receipts and acquaintances for such proceeds. Any expenses incurred by
the Agent in intervening in such action or collecting such proceeds shall be reimbursed to the
Agent first out of the proceeds. So long as no Event of Default has occurred and is continuing,
the proceeds or any part thereof shall be applied upon or in reduction of the Debt under this
Agreement in the inverse order of maturity, whether due or not, without the application of any
prepayment premium, or to the restoration or repair of the Project, the choice of application to be
solely at the discretion of the Borrower, and upon the occurrence and continuation of an Event of
Default at the sole discretion of the Agent.

          (x) Restoration of Deeded Premises After Loss. Should any insurance or condemnation
proceeds be applied to the restoration or repair of the Project the restoration or repair shall be
done under the supervision of an engineer reasonably acceptable to the Agent, pursuant to plans and
specifications approved by the Agent, and in accordance in all material respects with all
applicable building laws, regulations and ordinances, including, but not limited to, the
Accessibility Guidelines set forth in the Americans with Disabilities Act. In such case, the
proceeds shall be held by the Agent for such purposes and will from time to time be disbursed by
the Agent to defray the costs of such restoration or repair under such safeguards and controls as
the Agent may reasonably require to assure completion in accordance with the approved plans and
specifications and free of Liens other than Permitted Liens. So

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long as no Event of Default has occurred and is continuing, any surplus which may remain after
payment of all costs of restoration or repair may, at Borrower’s option, be applied to the
reduction of the Debt under this Agreement in the inverse order of maturity, without application of
any prepayment premium, or shall be returned to the Borrower as its interest may appear, the choice
of application to be solely at the discretion of the Borrower, and upon the occurrence and
continuation of an Event of Default at the sole discretion of the Agent.

     Section 5.02. Negative Covenants. So long as any of the Loan Obligations (other than
contingent indemnification obligations not then due and payable) remain unpaid or the Banks shall
have any commitment hereunder, the Borrower will not, without the prior written consent of the
Agent:

          (a) Liens, etc. Create or suffer to exist, or permit any of its Subsidiaries to
create or suffer to exist, any Lien upon any of its properties, whether now owned or hereafter
acquired to secure any Debt of any Person, other than the following (collectively, “Permitted
Liens”):

               (i) Liens described on Schedule 5.02(a) hereto and renewals, refinancings, refundings and
extensions of the same on substantially the same terms and conditions so long as the principal
amount of the debt is not increased (other than as a result of payment in kind interest, accrued
interest, premium or expenses related thereto);

               (ii) Liens which are subject to an intercreditor and subordination agreement in form and
substance reasonably acceptable to the Agent;

               (iii) Liens of the Agent for the benefit of itself and the Banks, and Liens securing other
Debt permitted by Section 5.02(e)(i) pari passu with Liens created under the Loan Documents,
provided that such Debt is subject to an intercreditor agreement in a form and substance reasonably
acceptable to the Agent;

               (iv) Liens (other than Liens relating to environmental liabilities or ERISA) for taxes,
assessments, levies or other governmental charges of any Governmental Authority that are not more
than sixty (60) days overdue or which are being contested in good faith by appropriate proceedings
diligently pursued and for which adequate reserves have been established;

               (v) Liens of warehousemen, carriers, mechanics and materialmen (subject to Sections 5.01(i)
and 5.01(r)(ix)), and landlords or other similar statutory or common law Liens securing obligations
that are not more than ninety (90) days overdue or remain payable without penalty and are incurred
in the ordinary course of business or which are being contested in good faith by appropriate
proceedings diligently pursued and for which adequate reserves have been established in accordance
with generally accepted accounting principles;

               (vi) Liens incurred or deposits or pledges made in connection with workmen’s compensation or
unemployment insurance, or other social security programs or to secure the performance of tenders,
leases, statutory obligations, surety, customs, performance and appeal bonds, customer deposits,
bids or contracts and other obligations of a similar nature (other than for repayment of Debt);

               (vii) any attachment or judgment Lien provided that such Liens secure claims not otherwise
constituting an Event of Default;

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          (viii) Liens arising from filing UCC financing statements regarding leases not prohibited by
this Agreement;

          (ix) Liens of a collecting bank arising in the ordinary course of business under Section 4-208
of the Uniform Commercial Code in effect in the relevant jurisdiction and covering only the items
being collected upon;

          (x) any real estate easements or any easements, rights of way, restrictions, subdivisions,
parcelizations, zoning ordinances, reservations, covenants and other similar charges, minor defects
or irregularities in title and other similar encumbrances relating to the property of the Borrower
that do not materially impair its use or the value of the property subject thereto;

          (xi) Liens for purchase money security interest in equipment and vehicles or any other
property acquired or held in the ordinary course of business not to exceed an aggregate amount of
Five Hundred Thousand and No/100 Dollars ($500,000.00), at any time outstanding;

          (xii) Liens arising under capital leases to the extent that such Liens attach only to the
property that is the subject of such capital leases and do not exceed an aggregate amount of One
Hundred Thousand and No/100 Dollars ($100,000.00), at any time outstanding;

          (xiii) any Lien existing on any property or asset prior to the acquisition thereof by the
Borrower or any of its Subsidiaries or existing on any property or asset of any Person that becomes
a Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary, provided
that (i) such Lien is not created in contemplation of or in connection with such acquisition or
such Person becoming a Subsidiary, (ii) such Lien shall not apply to any other property or assets
of the Borrower or any Subsidiary, (iii) such Lien shall secure only those obligations which it
secures on the date of such acquisition or the date such Person becomes a Subsidiary, as the case
may be, and extensions, renewals and replacements thereof;

          (xiv) Liens of sellers of goods to the Borrower or any Subsidiary arising under Article 2 of
the Uniform Commercial Code or similar provisions of applicable law in the ordinary course of
business;

          (xv) any interest or title of a lessor, licensor or sublessor under any lease, license or
sublease entered into by the Borrower or any Subsidiary in the ordinary course of its business or
any leases or subleases granted to others not interfering in any material respect with the business
of the Borrower;

          (xvi) licenses of patents, trademarks, copyrights or other intellectual property rights
granted in the ordinary course of business;

          (xvii) Liens consisting of an agreement to sell, transfer or dispose of any asset (to the
extent such sale, transfer or disposition is permitted by the Loan Documents);

          (xviii) Liens arising solely by virtue of any statutory or common law provisions relating to
banker’s liens, rights of offset or similar right and remedies as to deposit, securities, and
commodities accounts or other funds maintained with a creditor depositary institution or a
securities or commodities intermediary; provided, that (i) all such Liens existing in connection
with any deposit, security or commodities account that is required to be subject to a control
agreement under the terms of the Security Agreement shall be limited to those Liens agreed to by
the Agent under such control

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agreement and (ii) all such Liens in connection with any deposit, security or commodities account
that is not so required to be subject to a control agreement shall attach only to the funds and
assets credited to such accounts;

               (xix) Liens securing Debt permitted pursuant to Section 5.02(e)(xiv).

               (xx) Liens contemplated by Section 2.23; and

               (xxi) additional Liens so long as the aggregate principal amount of obligations secured
thereby does not exceed Five Hundred Thousand and No/100 Dollars ($500,000.00).

          (b) Distributions, etc. Declare or pay any dividends, purchase or otherwise acquire
for value any of its membership interests or units now or hereafter outstanding, or make any
distribution of assets to its interest holders, members or general partners as such, or permit any
Subsidiary to purchase or otherwise acquire for value any stock, membership interest or partnership
interest of the Borrower, provided, however, the Borrower and the Subsidiaries may: (i) declare
and pay dividends and distributions payable in membership interests or units or equity interests
(including options or warrants), (ii) purchase or otherwise acquire shares of the membership
interests or units or equity interests of the Borrower or the Subsidiaries with the proceeds
received from the issuance of new membership interests or units or equity interests (including
options or warrants), (iii) the Borrower may declare and pay aggregate cash dividends and
distributions during such fiscal year in an amount not to exceed the amount necessary for the
member of the Borrower to pay when due (including any payment of estimated taxes) Income Taxes on
such member’s allocable share of the taxable income of the Borrower for such taxable year or fiscal
year, as applicable (“Tax Distributions”), (iv) purchase, redeem or otherwise acquire membership
interests or units of the Borrower or equity interests (including options or warrants) of the
Subsidiaries or declare and pay dividends or distributions in an amount not to exceed, in the
aggregate, forty percent (40%) of the cumulative Net Income of the Borrower and its Subsidiaries
after the Substantial Completion Date minus the cumulative amount of all such payments made
pursuant to this Section 5.02(b)(iv) other than the Refunding Dividend prior to the date of the
payment then being made (“Allowed Distributions”), (v) pay dividends or distributions which are
immediately reinvested in the Borrower (“Reinvestment Distributions”); (vi) complete the
transactions reflected on Schedule 4.01(a), (vii) after payment of the Excess Cash Flow Payment
required by Section 2.25, if any, pay additional distributions in an amount equal to the amount of
Excess Cash Flow not required to be paid to the Banks pursuant to Section 2.25 and otherwise in an
amount reasonably acceptable to the Agent (“Excess Distributions”), and (viii) purchase the
membership interests of the Borrower or options or warrants with respect thereto from officers,
directors or employees of the Borrower upon the death, disability or termination of employment of
such officer, director or employee. Notwithstanding anything to the contrary contained in this
Section 5.02(b), the Borrower may pay a Distribution to US Bio Energy Corporation in an amount not
to exceed $17,182,226.00 with the proceeds of the Refunding Advance (the “Refunding Dividend”).

          (c) Capital Expenditures. Except for costs identified in the Project Sources and Uses
Statement, make Capital Expenditures in fixed assets in an aggregate amount in excess of Two
Million and No/100 Dollars ($2,000,000.00) during any fiscal year during the term of this
Agreement.

          (d) Consolidation, Merger, Dissolution, Etc. Merge or consolidate with any other
Person or permit any other Person to merge or consolidate with or into the Borrower or any
Subsidiary, provided that (i) any such Person may merge or consolidate with or into the Borrower or
any Subsidiary if the surviving entity complies with the requirements of Section 5.02(h) and (ii)
any Subsidiary may sell,

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lease, assign, convey, transfer or otherwise dispose of any or all of its assets (upon voluntary
liquidation or otherwise) to the Borrower or any Subsidiary.

          (e) Indebtedness, Etc. Create, incur, assume or suffer to exist any Debt except:

               (i) Debt of the Borrower evidenced by the Loan Documents, and to the extent the
Revolving Line of Credit has expired and not been renewed, Debt in an aggregate principal amount
not to exceed $10,000,000 at any time outstanding; provided that such Debt is subject to an
intercreditor agreement in a form and substance reasonably acceptable to the Agent and renewals and
refinancings thereof;

               (ii) trade accounts payable and accrued liabilities arising in the ordinary course
of the Borrower’s business;

               (iii) subordinated debt subject to subordination terms reasonably satisfactory to
the Agent;

               (iv) Debt of the Borrower described on Schedule 5.02(e), and any refinancings,
refundings and extensions of the same on substantially the same terms and conditions so long as the
principal amount of the debt is not increased (other than as a result of payment in kind interest,
accrued interest, premium or expenses in connection therewith);

               (v) contracts or agreements other than Material Contracts arising in the ordinary
course of the Borrower’s business;

               (vi) Debt of the Borrower and the Subsidiaries not to exceed $500,000.00 in
aggregate principal amount at any time outstanding constituting obligations under capital leases;

               (vii) Debt of the Borrower and the Subsidiaries incurred after the Closing Date
secured by purchase money Liens permitted under Section 5.02(a) provided that the aggregate
principal amount thereof does not exceed $500,000.00 at any time outstanding;

               (viii) Debt arising from loans, payables or advances made by a US Bio Entity to the
Borrower or the Subsidiaries;

               (ix) Debt which finances workers’ compensation, health, disability or life insurance
or finances other employee benefits or property, casualty or liability insurance, or self
insurance, in each case incurred in the ordinary course of business;

               (x) Debt of any Person that becomes a Subsidiary after the date hereof and that
complies with Section 5.02(h) hereof and extensions, renewals, refinancings and replacements of any
such Debt, provided that such Debt exists at the time such Person becomes a Subsidiary and is not
created in contemplation of or in connection with such Person becoming a Subsidiary;

               (xi) Debt arising from the honoring by a bank of a check or similar instrument drawn
against insufficient funds in the ordinary course of business, so long as such Debt is extinguished
within five (5) Business Days after its incurrence;

               (xii) Debt of the Borrower to any Subsidiary and of any Subsidiary to the

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Borrower or to another Subsidiary;

               (xiii) guarantee obligations incurred by the Borrower of obligations of any of the
Subsidiaries not prohibited to be incurred under this Agreement;

               (xiv) Debt of the Borrower in an aggregate principal amount not to exceed
$5,000,000.00 at any time outstanding for tax increment financing;

               (xv) secured Debt with a principal amount not to exceed $500,000.00 at any time
outstanding; and

               (xvi) other Debt of the Borrower and the Subsidiaries with a principal amount not to
exceed $100,000.00 in the aggregate outstanding at any time.

          (f) Organization; Name. Change its jurisdiction of organization or name without prior
written notice to the Agent.

          (g) Loans, Guaranties, Etc. Except as permitted by Section 5.02(e), make any loans or
advances to (whether in cash, in-kind, or otherwise) any Person, or directly or indirectly guaranty
or otherwise assure a creditor against loss in respect of any Debt (contingent or otherwise) of any
other Person other than loans or advances made by the Borrower or any of its Subsidiaries to any US
Bio Entity that is a Subsidiary of the Guarantor.

          (h) Subsidiaries. Form or otherwise acquire any Subsidiary, or acquire substantially
all of the assets of or acquire substantially all of the equity or ownership interests in any
Person, unless such Subsidiary or Person executes and delivers to the Agent: (i) a guaranty of all
of the Loan Obligations, in form and substance acceptable to the Agent in its sole discretion; (ii)
a security agreement in a form substantially similar to the Security Agreement; and (iii) such
other documents and amendments to this Agreement and the other Loan Documents as the Agent shall
reasonably require to assure that the Agent for the benefit of the Banks has a perfected Security
Interest in substantially all of the assets so acquired or owned by such Subsidiary.

               (i) Transfer of Assets. Sell, lease, assign, transfer, or otherwise voluntarily
dispose of any of its assets, or permit any Subsidiary to sell, lease, assign, transfer, or
otherwise voluntarily dispose of any of their assets except:

               (i) dispositions of Inventory in the ordinary course of business;

               (ii) dispositions of: (A) uneconomical, surplus, obsolete, worn out, replaced or
excess equipment; (B) equipment or real property not necessary for the operation of its business;
or (C) equipment, materials or real property which is replaced with property of equivalent or
greater value as the property which is disposed;

               (iii) the Borrower and the Subsidiaries may use cash and sell cash equivalents other
than Accounts in the ordinary course of business;

               (iv) the Borrower and the Subsidiaries may sell, transfer or otherwise dispose of
assets which sales, transfers or dispositions are not otherwise specifically permitted by this
Section 5.02(i), provided that such sale is for fair market value and the aggregate fair market
value of all assets so

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sold does not exceed $50,000.00 in any fiscal year;

               (v) transactions otherwise permitted by Sections 5.02(a) or 5.02(b) to the extent
permitted thereunder;

               (vi) dispositions resulting from any casualty or other insured damage to, or any
taking under power of eminent domain or by condemnation or similar proceeding of, any property or
asset of the Borrower;

               (vii) the Borrower may surrender or waive contractual rights or settle, release or
surrender any contract, test or other litigation claims in the ordinary course of business;

               (viii) the Borrower may abandon intellectual property or other propriety rights that
are, in its reasonable business judgment, of no material value and no longer practicable or useful
in the conduct of its business;

               (ix) the license, either as licensee or licensor, of intellectual property assets to
or from other Persons in the ordinary course of business.

               (x) sales, leases and other transfers and dispositions of assets among Subsidiaries;
and

               (xi) sales, leases, exchanges and other transfers and dispositions of assets to
other US Bio Entities of parts and equipment.

          (j) Lines of Business. Engage in any line or lines of business activity other than
those incidental or reasonably related to or entered into in connection with the production and
sale of ethanol and related by-products, including DGS, the ownership of the equity interests of
the Subsidiaries and the performance of the Loan Documents and any transactions that the Borrower
is permitted to enter into or consummate under the Loan Documents, including the making of loans to
any US Bio Entity that is a Subsidiary of the Guarantor.

          (k) Transactions with Affiliates. Enter into or permit to exist any transaction
(including the purchase, sale, lease or exchange of any property or the rendering of any service)
with any Affiliate of the Borrower (other than any Subsidiary of the Borrower, the Guarantor or any
Affiliated Borrower), except (i) transactions listed on Schedule 5.02(k), (ii) transactions upon
fair and reasonable terms which are no less favorable to the Borrower or such Subsidiary than would
be obtained in a comparable arm’s length transaction with a person or entity that is not an
Affiliate, (iii) payment of compensation (including employment and severance arrangements) to
members, governors, directors, managers, officers, employees, consultants and agents for services
actually rendered in their capacities as members, governors, directors, managers, officers,
employees, consultants and agents, provided that such compensation is reasonable and comparable
with compensation paid by companies of like nature and similarly situated and officer’s and
director’s indemnification and insurance, (iv) transactions expressly permitted by, and subject to
the terms of, this Agreement (including, without limitation, Sections 5.02(b), 5.02(e), 5.02(i),
5.02(g) and 5.02(l) hereof), (v) sales of Inventory to Provista Renewable Fuels Marketing, LLC and
United Bio Energy Ingredients, LLC, (vi) administrative services provided by the Guarantor and
reimbursements therefor, and (vii) payment on loans made to any Subsidiary, Affiliate or Affiliated
Borrower, which loans are permitted pursuant to the provisions of this Agreement. Notwithstanding
the foregoing, no payments may be made with respect to any items set forth in clause (vii) upon the
occurrence and during the continuation of an Event of Default.

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          (l) Management Fees and Compensation. Pay any management, consulting or other similar
fees to any Person, except legal or consulting or similar fees paid to Persons for services
actually rendered and in amounts typically paid by entities engaged in the Borrower’s or such
Subsidiary’s business.

          (m) Amendments to Organizational Documents. Amend its articles of organization,
operating agreement, management agreement, or any other organizational documents in any respect
that would materially impair its ability to comply with the terms or provisions of any of the Loan
Documents, including Section 5.01(s) of this Agreement.

          (n) Payments to US Bio Entities. If an Event of Default has occurred and is
continuing, make any payment to any US Bio Entity on account of any Debt specified in Section
5.02(e)(viii)

ARTICLE VI

EVENTS OF DEFAULT AND REMEDIES

     Section 6.01. Events of Default. Each of the following events shall constitute an
“Event of Default”:

          (a) The Borrower shall fail to pay (i) when due and payable any principal provided for or
required under this Agreement and/or the Notes or (ii) within five (5) Business Days after the same
shall become due and payable, any interest, fees or other amounts provided for or required
hereunder or under the other Loan Documents or to make any deposit of funds required under Sections
2.02(g), 2.30, 5.01(r)(iv), and 5.01(t) of this Agreement, when due; or

          (b) Any representation or warranty made by the Borrower in any Loan Document or Guarantor in
the Guaranty shall prove to have been incorrect in any material respect on the date made or deemed
made; or

          (c) The Borrower shall fail to perform or observe any term, covenant or agreement contained in
Sections 5.01(d), (e), (f), (g) or (t) or take any action as prohibited by Section 5.02; or

          (d) The Borrower shall fail to deliver the Financial Statements or Compliance Certificate
under Sections 5.01(c)(i) or (ii) within five (5) days of the date due; or

          (e) The Borrower shall fail to perform or observe any term, covenant or agreement contained in
any Loan Document or the Guarantor shall fail to perform or observe any term, covenant or agreement
contained in the Guaranty (other than those listed in clauses (a) through (d) of this Section 6.01
and other than Section 5.01(o)) to be performed or observed by it and any such failure shall remain
unremedied for thirty (30) days after written notice thereof shall have been given to the Borrower
or Guarantor, as applicable, by the Agent, provided that no Event of Default shall be deemed to
exist if, within said thirty (30) day period, the Borrower has commenced appropriate action to
remedy such failure and shall diligently and continuously pursue such action until such cure is
completed, unless such cure is or cannot be completed within thirty (30) days after written notice
shall have been given; or

          (f) The Borrower shall fail to pay any other Debt of the Borrower having an aggregate
principal amount in excess of Five Hundred Thousand and No/100 Dollars ($500,000.00) (either in any
individual case or in the aggregate), excluding Debt evidenced by the Notes and excluding

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Ordinary Trade Payable Disputes, or any interest or premium thereon, when due (whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise) and such failure shall continue
after the applicable grace or cure period, if any, specified in the agreement or instrument
relating to such Debt; or any other default under any agreement or instrument relating to any such
Debt, or any other event, shall occur and shall continue after the applicable grace or cure period,
if any, specified in such agreement or instrument, if the effect of such default or event is to
accelerate, or to permit the acceleration of, the maturity of such Debt (excluding Ordinary Trade
Payable Disputes); or any such Debt shall be declared to be due and payable, or required to be
prepaid (other than by a regularly scheduled required prepayment or prepayment required to be paid
due to voluntary sales or transfer or condemnation of assets securing such Debt), prior to the
stated maturity thereof (excluding Ordinary Trade Payable Disputes); or

          (g) The Borrower (i) shall generally not pay its debts as such debts become due, or shall
admit in writing its inability to pay its debts generally, or (ii) shall make a general assignment
for the benefit of creditors; or any proceeding shall be instituted by or against the Borrower
seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up,
reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts
under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking
the entry of an order for relief or the appointment of a receiver, trustee or other similar
official for it or for any substantial part of its property, and, in the case of any such
proceeding instituted against it (but not instituted by it) either such proceeding shall remain
undismissed or unstayed for a period of thirty (30) days or any of the actions sought in such
proceeding (including the entry of an order for relief against it or the appointment of a receiver,
trustee, custodian or other similar official for it or for any substantial part of its property)
shall occur; or the Borrower shall take any corporate action to authorize any of the actions set
forth above in clause (ii) of this subsection; or

          (h) Any one or more judgment(s) or order(s) for the payment of money in excess of Five Hundred
Thousand and No/100 Dollars ($500,000.00), to the extent not paid or covered by insurance or an
indemnity, in the aggregate shall be rendered against the Borrower and either: (i) enforcement
proceedings shall have been commenced by any creditor upon such judgment or order; or (ii) there
shall be any period of thirty (30) consecutive days during which a stay of enforcement of such
judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or

          (i) Any Loan Document shall for any reason cease to be valid and binding on the Borrower or
the Borrower shall so state in writing; or

          (j) The Loan Documents shall for any reason, except to the extent permitted by the terms
thereof, cease to create a valid lien, encumbrance or security interest in any material portion of
the Collateral purported to be covered thereby; or

          (k) The termination of any Long Term Marketing Agreement prior to its stated expiration date,
unless such Long Term Marketing Agreement is replaced by another Long Term Marketing Agreement or
other marketing agreement reasonably acceptable to the Agent, within sixty (60) days of the
termination of such Long Term Marketing Agreement; or

          (l) The Borrower shall dissolve or merge other than as permitted under Section 5.02(d) without
the prior written consent of the Agent; or

          (m) Construction of the Project is halted or abandoned prior to completion for any period of
sixty (60) consecutive days for any cause which is not beyond the reasonable control of the
Borrower; or

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          (n) The construction of the Project shall be delayed for any reason and for such period that,
in the reasonable judgment of the Agent, Substantial Completion of the Project will not occur by
the Substantial Completion Date. If such delay is curable and if the Borrower has not been given a
notice of a similar breach within the preceding twelve (12) months, it may be cured (and no Event
of Default will have occurred) if the Borrower cures the failure within sixty (60) days, which
shall include advancing the progress of the Project to the point that, in the reasonable judgment
of the Agent, Substantial Completion of the Project will occur by the Substantial Completion Date;
or

          (o) The Guaranty shall cease to be in full force and effect or shall be revoked or declared
null and void by the Guarantor, or the validity or enforceability thereof shall be contested by the
Guarantor, or the Guarantor shall deny any further liability or obligations thereunder; or

          (p) The loss, suspension or revocation of, or failure to renew, any franchise, license,
certificate, permit, authorization, approval or the like now held or hereafter acquired by the
Borrower or any of its Subsidiaries, if such loss, suspension, revocation or failure to renew could
reasonably be expected to have a Material Adverse Effect; or

          (q) The Borrower should breach or be in material default under the Design Agreement, or any
termination thereof shall have occurred, or any other event which would permit the General
Contractor to cause a termination thereof or the Design Agreement shall have ceased for any reason
to be in full force and effect prior to its stated or optional expiration date, unless, with
respect to any of the foregoing circumstances the Design Agreement has been replaced with a new
contract reasonably acceptable to the Agent with a General Contractor; or

          (r) Any Material Contract or material Construction Contract shall be terminated, changed,
amended or restated, which termination, change, amendment or restatement could reasonably be
expected to have a Materially Adverse Effect, without the Agent’s prior consent; and

          (s) There shall have been entered or docketed any order, judgment, decree or ruling in the
City Litigation or the County Litigation which may result in the suspension, revocation, vacation
or impairment of any ordinance, license, permit, permission or authority necessary for the
construction or operation of the Project and on or before three (3) Business Days following the
entry of such order, judgment, decree or ruling, the Borrower shall have failed to deliver to
Agent, for the benefit of the Banks, an irrevocable letter of credit in the amount of $4,000,000.00
issued by a financial institution reasonably acceptable to the Agent with an expiration date of no
less than twelve months after the date of issuance and automatically renewable on customary terms
for additional periods of at least twelve months which may be drawn upon by the Agent in the event
Borrower shall fail to make any payments required by this Agreement; provided that no such letter
of credit shall be required to be maintained when any such order, judgment, decree or ruling shall
be vacated, paid, discharged or satisfied.

     Section 6.02. Remedies. Upon the occurrence and during the continuance of an Event
of Default, the Agent:

          (a) may accelerate the due date of the unpaid principal balance of the Loans, all accrued but
unpaid interest thereon and all other amounts payable under this Agreement and the other Loan
Documents making such amounts immediately due and payable, whereupon the Notes, all such interest
and all such amounts shall become and be forthwith immediately due and payable, without
presentment, notice of intent to accelerate or notice of acceleration, demand, protest or further
notice of any kind, all of which are hereby expressly waived by the Borrower; provided, however,
that in the event of an actual or deemed entry of an order for relief with respect to the Borrower
under the Federal

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Bankruptcy Code, the Loans, all such interest and all such amounts shall automatically become due
and payable, without presentment, demand, protest or any notice of any kind, all of which are
hereby expressly waived by the Borrower;

          (b) may withhold or direct the Agent to withhold any one or more Advances in its discretion,
and terminate the Banks’ obligations, if any, under this Agreement to make any Advances whereupon
the commitment and obligations of the Banks to extend credit or to make Advances hereunder shall
terminate, and no disbursement of Loan funds by the Agent will cure any default of the Borrower,
unless the Required Banks agrees otherwise in writing;

          (c) may, by notice to the Borrower, obtain the appointment of a receiver to take possession of
all Collateral of the Borrower, including all personal property, including all fixtures and
equipment leased, occupied or used by the Borrower, provided that, with respect to Collateral
consisting of Intellectual Property which is licensed to the Borrower, only to the extent of the
Borrower’s rights therein and to the extent permitted by the various license or other agreements
relating thereto. The Borrower hereby irrevocably consents to the appointment of such receiver and
agrees to cooperate and assist any such receiver to facilitate the transfer of possession of the
Collateral to such receiver and to provide such receiver access to all books, records, information
and documents as requested by such receiver;

          (d) in its discretion, enter the Real Property and take any and all actions necessary in its
judgment to complete construction of the Project, including making changes in Construction
Documents, work or materials, and entering into, modifying, or terminating any contractual
arrangements, subject to the Agent’s right at any time to discontinue any work without liability.
If the Agent elects to complete the Project, it will not assume any liability to the Borrower or
any other person for completing the Project or for the manner or quality of construction of the
Project, and the Borrower expressly waives any such liability. The Borrower irrevocably appoints
the Agent as its attorney in fact, with full power of substitution, to complete the Project in the
Borrower’s name, or the Agent may elect to complete construction in its own name. In any event,
all sums expended by the Agent in completing construction will be considered to have been disbursed
to the Borrower and will be secured by the Deed of Trust and any other instruments or documents
securing the Loans, and any such sums that cause the principal amount of the Loans to exceed the
face amount of the Notes will be considered to be an additional loan to the Borrower bearing
interest at the rate provided in the Notes and will be secured by the Deed of Trust and any other
instrument or documents securing the Loans. The Agent will not have any obligation under the
Construction Documents prepared for the Project, any studies, data, and drawings with respect
thereto prepared by or for the Borrower, or the contracts and agreements relating to the
Construction Documents, or the aforesaid studies, data, and drawings, or to the construction of the
Project unless it expressly hereafter agrees in writing. The Agent will have the right to exercise
any rights of the Borrower under those contracts and agreements or with respect to such
Construction Documents, studies, data, and drawings upon the occurrence and during the continuance
of any Event of Default by the Borrower under this Agreement, and shall have such other rights and
remedies with respect thereto as are afforded a secured creditor under applicable law;

          (e) may, by notice to the Borrower, require the Borrower to pledge to the Agent as security
for the Loan Obligations an amount in immediately available funds equal to the then outstanding
Letter of Credit Liabilities, such funds to be held in an interest bearing cash collateral account
at the Agent without any right of withdrawal by the Borrower; provided, however, that in the event
of an actual or deemed entry of an order for relief with respect to the Borrower or any of its
subsidiaries under the Federal Bankruptcy Code, the Borrower shall, without notice, pledge to the
Agent as security for the Loan

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Obligations an amount in immediately available funds equal to the then outstanding Letter of Credit
Liabilities, such funds to be held in such an interest bearing cash collateral account at the
Agent; and

          (f) may exercise all other rights and remedies afforded to the Agent under the Loan Documents
or by applicable law or equity.

     Section 6.03. Remedies Cumulative. Each and every power or remedy herein specifically
given shall be in addition to every other power or remedy, existing or implied, given now or
hereafter existing at law or in equity, and each and every power and remedy herein specifically
given or otherwise so existing may be exercised from time to time and as often and in such order as
may be deemed expedient by the Agent, and the exercise or the beginning of the exercise of one
power or remedy shall not be deemed a waiver of the right to exercise at the same time or
thereafter any other power or remedy. No delay or omission of the Agent in the exercise of any
right or power accruing hereunder shall impair any such right or power or be construed to be a
waiver of any default or acquiescence therein.

ARTICLE VII

THE AGENT

     Section 7.01. Authorization and Action. Each Bank hereby appoints and authorizes the
Agent to take such action as agent on its behalf and on behalf of each of its Affiliates who are
owed Obligations (each such Affiliate by acceptance of the benefits of the Loan Documents hereby
ratifying such appointment) and to exercise such powers under this Agreement as are delegated to
the Agent by the terms hereof, together with such powers as are reasonably incidental thereto. As
to any matters not expressly provided for by this Agreement (including enforcement or collection of
the Notes), the Agent shall not be required to exercise any discretion or take any action, but
shall be required to act or to refrain from acting (and shall be fully protected in so acting or
refraining from acting) upon the instructions of the Required Banks; provided, however, that the
Agent shall not be required to take any action which exposes the Agent to personal liability or
which is contrary to this Agreement or applicable law.

     Section 7.02. Duties and Powers of Agent.

          (a) The Agent shall (i) make such demands and give such notices under the Loan Documents as
the Required Banks shall request, (ii) take (or refrain from taking) such action to enforce the
Loan Documents and to foreclose or otherwise realize upon, collect or dispose of the Collateral, or
any portion thereof, at such times, in such order and otherwise in such matter as may be directed
by the Required Banks (including matters relating to (A) the amount of the Loan Obligations bid as
a credit on account of the purchase price of the Collateral and (B) the adoption and implementation
of post-foreclosure or post-realization plans of disposition with respect to any of the Collateral
foreclosed or otherwise realized upon), and (iii) take such other actions under this Agreement or
the Loan Documents or otherwise (including the amending of this Agreement or the Loan Documents as
contemplated by and in accordance with the provisions of Section 8.01 hereof) upon direction of the
Required Banks. Any property taken or held by the Agent, in its capacity as such, by foreclosure
or otherwise, shall be held by it pursuant to this Agreement.

          (b) The Agent shall not take, and shall be fully justified in failing or refusing to take, any
action under this Agreement or the Loan Documents or otherwise unless it shall have first received
such advice or concurrence of the Required Banks.

          (c) Any action taken or failure to act pursuant to the direction of the Required Banks shall
be binding upon all of the Banks and all future holders of the Loan Obligations.

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          (d) The obligations of the Agent hereunder are only those expressly set forth herein and in
the Loan Documents. Without limiting the generality of the foregoing, the Agent shall not be
required to take any action with respect to any Event of Default or Default, except as expressly
provided in this Agreement. The Agent shall not be deemed to have knowledge or notice of the
occurrence of an Event of Default or Default, unless the Agent has received written notice from a
Bank or the Borrower describing such default or Event of Default and stating that such notice is a
notice of default. In the event the Agent receives such a notice, the Agent shall give notice
thereof to the Banks. The Agent shall take such action under the Loan Documents with respect to
such Default or Event of Default as shall be directed by the Required Banks.

     Section 7.03. Obligations of Agent. Neither the Agent nor any of its directors,
officers, agents, or employees shall be liable for any action taken or omitted to be taken by it or
them under or in connection with this Agreement except for its or their own gross negligence or
willful misconduct. Without limitation of the generality of the foregoing, the Agent (i) may treat
the Banks as the parties entitled to distributions hereunder unless and until the Agent receives
written notice and evidence satisfactory to it to the contrary, (ii) may consult with legal
counsel, independent public accountants and other experts selected by it and shall not be liable
for any action taken or omitted to be taken in good faith by it in accordance with the advice of
such counsel, accountants or experts, (iii) shall not by reason of any Loan Document be a trustee
or fiduciary for any Bank, and (iv) shall incur no liability under or in respect of this Agreement
by acting upon any notice, consent, certificate or other instrument or writing (which may be by
telegram, cable, telex or facsimile) believed by it in good faith to be genuine and signed or sent
by the proper party or parties or by acting upon any representation or warranty of the Borrower
made or deemed to be made hereunder. Further, the Agent (A) makes no warranty or representation to
any Bank and shall not be responsible to any Bank for the accuracy or completeness of any
statements, warranties or representations (whether written or oral) made by the Borrower in or in
connection with this Agreement, (B) shall not have any duty to ascertain or to inquire as to the
performance or observance of any of the terms, covenants or conditions of this Agreement on the
part of the Borrower or to inspect the property (including the books and records) of the Borrower,
and (C) shall not be responsible to any Bank for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement or any other instrument or
document furnished pursuant hereto with respect to any other Person party hereto or thereto.

     Section 7.04. Agent and Affiliates. With respect to its Commitment, the Advances made
by the Agent and the Notes issued to it, the Agent shall have the same rights and powers under this
Agreement as the other Banks and may exercise the same as though it were not the Agent; and the
term “Bank” or “Banks” shall, unless otherwise expressly indicated, include the Agent in its
capacity as a Bank. AgStar and its Affiliates may accept deposits from, lend money to, act as
trustee under indentures of, and generally engage in any kind of business with, the Borrower, all
as if AgStar were not the Agent hereunder and without any duty to account therefor to the Banks.

     Section 7.05. Bank Credit Decision. It is understood and agreed by each Bank that it
has been, and will continue to be, solely responsible for making its own independent appraisal of
and investigations into the financial condition, creditworthiness, condition, affairs, status and
nature of the Borrower and the Collateral. Accordingly, each Bank confirms to the Agent that such
Bank has not relied, and will not hereafter rely, on the Agent (i) to check or inquire on its
behalf into the adequacy, accuracy or completeness of any information provided by the Borrower
under or in connection with this Agreement, the Loan Documents or the transactions herein or
therein contemplated (whether or not such information has been or is hereafter distributed to such
Bank by the Agent), (ii) to assess or keep under review on its behalf the financial condition,
creditworthiness, condition, affairs, status or nature of the

74

 

Borrower or any Collateral provided to secure the Obligations of the Borrower under the Loan
Documents, or (iii) to obtain, verify or record information that identifies the Borrower in
accordance with the USA PATRIOT Act (Title III of Pub Law No. 107-56). Each Bank acknowledges that
a copy of each of the Loan Documents has been made available to it and to its individual legal
counsel for review and such Bank acknowledges that it is satisfied with the form and substance of
the Loan Documents, and is not relying upon advice or recommendations of the Agent or the Agent’s
counsel.

     Section 7.06. Indemnification. The Banks agree to indemnify the Agent (to the extent
not reimbursed by the Borrower), ratably according to their Pro Rata Shares, from and against any
and all liabilities, obligations, losses, damages, penalties, actions, judgment, suits, costs,
expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or
asserted against the Agent in any way relating to or arising out of the Loan Documents or the
Obligations or any action taken or omitted by the Agent under this Agreement, provided that no Bank
shall be liable for any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting from the Agent’s gross
negligence or willful misconduct. Without limiting the generality of the foregoing, each Bank
agrees to reimburse the Agent promptly upon demand for any reasonable out-of-pocket expenses
(including reasonable counsel fees) incurred by the Agent in connection with the preservation of
any rights of the Agent or the Banks under, or the enforcement of, or legal advice in respect of
rights or responsibilities under the Loan Documents to the extent that the Agent is not reimbursed
for such expenses by the Borrower.

     Section 7.07. Successor Agent. The Agent may resign at any time by giving written
notice thereof to the Banks and the Borrower. The Banks may appoint one of the Banks as a
successor Agent; provided that, if no successor Agent shall have been appointed by the Banks, and
shall have accepted such appointment, within thirty (30) days after the retiring Agent’s having
given notice of resignation, then the retiring Agent may, on behalf of the Banks, appoint a
successor Agent, which shall be either a Bank or a bank reasonably acceptable to the Borrower,
organized under the laws of the United States or of any state thereof, or any affiliate of such
bank, and having a combined capital and surplus of at least Five Hundred Million and No/100 Dollars
($500,000,000.00); provided, however, that any successor Agent, any sub Agent and any other person
designated to receive payments under any Loan Document from the Borrower for the benefit of the
Agent or any Bank shall be a “U.S. Person” and a “Financial Institution” as such terms are defined
in Section 1.1441-1 of the Treasury Regulations. Upon the acceptance of any appointment as Agent
hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become vested
with all the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent
shall be discharged from its duties and obligations under this Agreement. After any retiring
Agent’s resignation hereunder as Agent, the provision of this Article VII shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was Agent under this
Agreement.

     Section 7.08. Exchange of Information. Each Bank and the Agent shall freely exchange
with the other Banks and/or Agent any information relating to the condition, financial or
otherwise, of the Borrower, and the Borrower hereby consents to any and all prior, present or
future such exchanges.

     Section 7.09. Benefit of the Banks Only. The terms and provisions of this Article VII
are for the sole and exclusive benefit of the Agent and the Banks, and not for the benefit of the
Borrower.

     Section 7.10. Authorized Actions. The Agent is hereby irrevocably authorized by the
Banks, without any further action by any Bank, to release the Agent’s liens in Collateral: (i) if
such Collateral is permitted to be sold or otherwise disposed of under Section 5.02(i); and (ii)
upon termination of the Commitments, collateralization of all outstanding Letters of Credit and
payment and satisfaction of all other non-contingent obligations of the Borrower under the Loan
Documents.

75

 

ARTICLE VIII

MISCELLANEOUS

     Section 8.01. Amendments, Etc. Except as otherwise provided herein or in any other
Loan Document, no amendment or waiver of any provision of any Loan Document to which the Borrower
is a party, nor any consent to any departure by the Borrower therefrom, shall in any event be
effective unless the same shall be agreed or consented to by the Required Banks and the Borrower,
and each such waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided that no amendment, waiver, or consent shall, without the
consent of the Borrower and each Bank directly affected thereby, do any of the following: (i)
except as provided in Section 2.13, increase the Commitment of such Bank; (ii) reduce the amount
owed to such Bank or reduce the rate of interest thereon payable to such Bank, or reduce any fees
payable to such Bank hereunder; (iii) extend or postpone the scheduled date of payment of any
amount owed to such Bank under any Loan Document, or waive or excuse the payment thereof (but
specifically excluding any amendment, modification, termination or waiver of the prepayment
provisions) (provided that the Required Banks may suspend or reduce the Default Rate once it is
imposed under Section 2.14); (iv) reduce the percentages specified in the definitions of “Required
Banks” or “Pro Rata Share” or any provision of any of the Loan Documents regarding the Pro Rata
treatment or obligations of the Banks; or (v) except as permitted by Section 7.10, release all or
substantially all of the Collateral or release the Borrower or the Guarantor from liability.
Notwithstanding anything to the contrary contained in this Section 8.01: (i) no amendment, waiver,
or consent shall be made with respect to Article VII hereof or any other provision which affects
the rights or obligations of the Agent without the prior written consent of the Agent; (ii) no
amendment, waiver or consent shall be made with respect any provision which affects the rights or
obligations of the Issuer without the prior written consent of the Issuer; and (iii) no amendment,
waiver or consent shall be made with respect to Section 2.06 or any other provision which affects
the rights or obligations of the Swingline Bank without the prior written consent of the Swingline
Bank. Notwithstanding anything to the contrary herein, no Defaulting Bank shall have any right to
approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of
such Bank may not be increased or extended without the consent of such Bank.

     Section 8.02. Notices, Etc. All notices and other communications provided for under
any Loan Document shall be in writing and mailed, faxed, or delivered at the addresses set forth
below, or at such other address as such party may specify by written notice to the other parties
hereto:

	 	 	 	 	 
	 

	 	If to the Borrower:
	 	US Bio Ord, LLC
	 

	 	 	 	5500 Cenex Drive
	 

	 	 	 	Inver Grove Heights, MN 55077
	 

	 	 	 	Telephone: (651) 355-8300
	 

	 	 	 	Attention: Chief Financial Officer
	 

	 	 	 	Attention: General Counsel
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Skadden, Arps, Slate, Meagher & Flom LLP
	 

	 	 	 	333 W. Wacker Drive
	 

	 	 	 	Chicago, Illinois 60606
	 

	 	 	 	Telephone: (312) 407-0700
	 

	 	 	 	Facsimile: (312) 407-0411
	 

	 	 	 	Attention: Brian W. Duwe

76

 

	 	 	 	 	 
	 

	 	If to the Agent:
	 	AgStar Financial Services, PCA
	 

	 	 	 	1921 Premier Drive
	 

	 	 	 	P.O. Box 4249
	 

	 	 	 	Mankato, MN 56002-4249
	 

	 	 	 	Telephone: (507) 386-4242
	 

	 	 	 	Facsimile: (507) 344-5088
	 
	 	 	 	 
	 

	 	with copies to:
	 	AgStar Financial Services, FLCA
	 

	 	 	 	1921 Premier Drive
	 

	 	 	 	P.O. Box 4249
	 

	 	 	 	Mankato, MN 56002-4249
	 

	 	 	 	Telephone: (507) 386-4242
	 

	 	 	 	Facsimile: (507) 344-5088
	 

	 	 	 	Attention: Mark Schmidt
	 
	 	 	 	 
	 

	 	 	 	Gray, Plant, Mooty, Mooty, & Bennett, P.A.
	 

	 	 	 	1010 West St. Germain
	 

	 	 	 	Suite 600
	 

	 	 	 	St. Cloud, MN 56301
	 

	 	 	 	Telephone: (320) 252-4414
	 

	 	 	 	Facsimile: (320) 252-4482
	 

	 	 	 	Attention: Phillip L. Kunkel
	 
	 	 	 	 
	 

	 	If to a Bank:
	 	At the address or addresses, as the case may be,
set forth on Schedule 8.02 or on the most recent
Bank Supplement to which such Bank is a party.

All such notices and communications to or upon the parties hereto shall be in writing (including by
telecopy) and sent to the address or facsimile number listed above and shall be effective and shall
be deemed to have been duly given or made (i) when delivered in person, (ii) when transmitted via
facsimile to the applicable number(s) set forth above, (iii) one Business Day following the day on
which the same has been delivered prepaid (or pursuant to an invoice arrangement) to a reputable
national overnight air courier service, or (iv) the third Business Day following the day on which
the same is sent by certified or registered mail, postage prepaid. Notwithstanding the other
provisions of this Section 8.02, the Agent may accept oral borrowing notices, provided that the
Agent shall incur no liability to the Borrower or any Bank in acting on any such communication that
the Agent believes in good faith to have been given by a Person authorized to give such notice on
behalf of the Borrower. Any confirmation sent by the Agent or any Bank to a Borrower of any
borrowing under this Agreement shall, in the absence of manifest error, be conclusive and binding
for all purposes.

     Section 8.03. No Waiver; Remedies. No failure on the part of the Agent or any Bank to
exercise, and no delay in exercising, any right under any Loan Document shall operate as a waiver
thereof; nor shall any single or partial exercise of any right under any Loan Document preclude any
other or further exercise thereof or the exercise of any other right. The remedies provided in the
Loan Documents are cumulative and not exclusive of any remedies provided by law.

     Section 8.04. Costs, Expenses and Taxes. The Borrower agrees to pay on demand all
reasonable and documented costs and expenses of the Agent in connection with the preparation,
execution, delivery, filing, recording and administration of the Loan Documents and the other
related documents to be delivered under the Loan Documents, including the reasonable and documented
fees and

77

 

out-of-pocket expenses of counsel for the Agent, including local counsel, with respect thereto and
with respect to advising the Agent as to its rights and responsibilities under the Loan Documents,
and all reasonable and documented costs and expenses (including reasonable counsel fees and
expenses) for the Agent in connection with the filing of the Financing Statements and, solely
during the occurrence and continuation of an Event of Default, all reasonable and documented costs
and expenses of the Agent and the Banks in connection with the enforcement of the Loan Documents.

     Section 8.05. Right of Set-off. Upon the occurrence and during the continuance of an
Event of Default, each Bank is hereby authorized, to the fullest extent permitted by law, 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 Agent and/or such Bank to or for the
credit or the account of the Borrower against any and all of the Obligations, irrespective of
whether or not such Bank shall have made any demand under such Loan Document and although deposits,
indebtedness or such obligations may be unmatured or contingent. The Agent and each Bank, as the
case may be, agrees to promptly notify the Borrower after any such set-off and application,
provided that the failure to give such notice shall not affect the validity of such set-off and
application. The rights of the Banks under this Section are in addition to other rights and
remedies (including other rights of set-off) which the Agent and the Banks may have. Each Bank
agrees that for the benefit of each of the other Banks and the Agent (but not for the benefit of
the Borrower) that such Bank shall not exercise any of the set-off rights described in this Section
8.05 unless such Bank had notified the Agent of such Bank’s intention to take such action and such
Bank had received the Agent’s written consent to the taking of such action (unless such notice and
consent requirement is waived by the Agent in its sole discretion).

     Section 8.06. Severability of Provisions. Any provision of this Agreement or of any
other Loan Document which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or thereof or affecting the validity or
unenforceability of such provision in any other jurisdiction.

     Section 8.07. Binding Effect; Successors and Assigns; Participations.

          (a) This Agreement shall be binding upon and inure to the benefit of the Borrower, the Agent
and the Banks and their respective successors and assigns, except that the Borrower shall have no
right to assign or otherwise transfer its rights hereunder or any interest herein without the prior
written consent of the Agent and the Banks, which consent shall not be unreasonably withheld or
delayed. No Bank may assign, sell, participate or otherwise transfer any of its rights under the
Loan Documents except as set forth in this Section 8.07.

          (b) Each Bank shall have the right at any time, with the written consent of the Agent and,
unless a payment or bankruptcy Event of Default shall have occurred and be continuing, the
Borrower, to assign all or portions of its rights in this Agreement or in its Commitment,
participation obligations and interests, rights and security under this Agreement and any of the
other Loan Documents to any other commercial, banking or financial institution, including any one
or more of its Affiliates which is a commercial banking or financial institution or to one or more
of the Banks (each, an “Assignee”), subject to minimum amounts of $900,000.00 or the remaining
commitment amount if less than $900,000.00. Upon any such assignment, each Bank so assigning its
Commitment, Advances, Notes, participation obligations and interests, rights and security under
this Agreement shall pay the Agent, within two (2) Business Days of such assignment an assignment
fee of $1,000.00 for its own account and shall promptly notify the Borrower, the Agent and the
other Banks thereof. Each Bank so assigning its Commitment, Advances, Notes, participation
obligations and interests, rights and security

78

 

under this Agreement or any of the other Loan Documents shall execute and deliver, and cause such
Assignee to execute and deliver, an agreement in the form of Exhibit K hereto and such other
documents and instruments reasonably requested by the Agent (collectively, a “Bank Supplement”) to
evidence such assignment and to substitute the Assignee as a Bank on all of the Loan Documents.
The Borrower hereby acknowledges and agrees that any assignment described in this Section 8.07 will
give rise to a direct obligation of the Borrower to the Assignee and such party shall be considered
a Bank and rely on, and possess all rights under this Agreement or any other Loan Document. The
Borrower shall accord full recognition to any such assignment, and all rights and remedies of such
Bank in connection with the interest so assigned shall be as fully enforceable by such Assignee as
they were by the assignor as a Bank that was a party to this Agreement on the date hereof. The
Agent, acting for this purpose as an agent of the Borrower, shall maintain at one of its offices a
register for the recordation of the names and addresses of the Banks, and the Commitment of, and
principal amount of the Loans owing to, each Lender pursuant to the terms hereof from time to time
(the “Register”). The entries in the Register shall be conclusive, and the Borrower, the Agent and
the Banks shall treat each Person whose name is recorded in the Register pursuant to the terms
hereof as a Bank hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by the Borrower and any Bank at any
reasonable time and from time to time upon reasonable prior notice.

          (c) Each Bank shall have the right at any time, with the written consent of the Agent and,
unless a payment or bankruptcy Event of Default shall have occurred and be continuing, the
Borrower, to sell participations in all or any portion of its rights in this Agreement or its
Commitment, Advances, Notes, participation obligations and interests, rights and security under
this Agreement and any of the other Loan Documents to any other Person (each, a “Participant”);
provided, however, that (i) such Bank’s obligations under the Loan Documents (including its
Commitments) shall remain unchanged, (ii) such Bank shall remain solely responsible to the
Borrower, the Issuer, and the Swingline Bank for the performance of such obligations, (iii) such
Bank shall remain the holder of its Notes and owner of its participation or other interests in
Letter of Credit Liabilities for all purposes of any Loan Document, and (iv) the Agent and the
Borrower shall continue to deal solely and directly with such Bank in connection with such Bank’s
rights and obligations under the Loan Documents. For the sole purpose of determining voting
rights, “Banks” shall include those Persons that are members of the Farm Credit System which have
acquired participation interests (not including subparticipation interests) in the Loans at any
time in the minimum amount of Ten Million and No/100 Dollars ($10,000,000.00), which have been
designated by the Bank selling the participation to such Person as being accorded voting rights
hereunder (the “Participant Designation”), and which are approved as such by the Agent with
notification to the Borrower (the participation shall, in turn, result in a corresponding reduction
in the dollar amount of voting rights of the Bank from which such participation interests were
acquired). The Participant Designation shall (i) state the name and contact information of the
participant as would be required of an assignee pursuant to a Bank Supplement, and (ii) state the
amount of the participation purchased. The Agent shall be entitled to conclusively rely on any and
all information contained in any Participant Designation delivered to it by a Bank. No other
Participant shall be entitled to vote.

          (d) The Agent and any such Bank or Banks, as the case may be, may disclose to (i) any of the
participants identified in Schedule 2.01 or, (ii) in connection with any proposed assignment or
granting of a participation, the proposed assignee or participant any information that the Borrower
or the Guarantor is required to deliver to the Agent and/or the Banks pursuant to this Agreement or
the other Loan Documents, and the Borrower agrees to cooperate fully with the Agent and the Banks,
as the case may be, in providing any such information to any proposed assignee or participant;
provided such Participant identified on Schedule 2.01 and any such assignee or other Participant
agrees to be bound by the confidentiality provisions set forth in Section 8.16.

79

 

     Section 8.08. Consent to Jurisdiction. All parties hereby submit to the jurisdiction
of any Minnesota State court sitting in Blue Earth County, Minnesota, or Federal court sitting in
Minneapolis, Minnesota, in any action or proceeding arising out of or relating to this Agreement or
any of the other Loan Documents, and each party hereby agrees that claims in respect of such action
or proceeding may be heard and determined in such Minnesota State court or in such Federal court.
Each party hereby irrevocably waives, to the fullest extent it may effectively do so, the defense
of an inconvenient forum to the maintenance of such action or proceeding.

     Section 8.09. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF MINNESOTA (WITHOUT REFERENCE TO THE CHOICE OF LAW
PRINCIPLES THEREOF).

     Section 8.10. Banks’ Obligations Several, Not Joint. The obligations of the Banks
under this Agreement and the other Loan Documents are several, and are not joint. No Bank or the
Agent shall be responsible or liable in any way for the failure or refusal of any other Bank to
make any Advance to be made by any other Bank, or for any other obligations of any other Bank.

     Section 8.11. Execution in Counterparts. This Agreement may be executed in any number
of counterparts and on telecopy counterparts, each of which when so executed shall be deemed to be
an original and all of which when taken together shall constitute but one and the same agreement.

     Section 8.12. Survival. All covenants, agreements, representations and warranties
made by the Borrower in the Loan Documents and in the certificates or other instruments delivered
in connection with or pursuant to this Agreement or any other Loan Document be considered to have
been relied upon by the other parties hereto and shall survive the execution and delivery of the
Loan Documents and the making of any Advances and issuance of any Letters of Credit, until
repayment of the Loans and Letters of Credit and termination of the Commitments. The expense
reimbursement, additional cost, capital adequacy and indemnification provisions of this Agreement
shall survive and remain in full force and effect regardless of the consummation of the
transactions contemplated hereby, the repayment of the Obligations, the expiration or termination
of the Letters of Credit and the Commitments or the termination of this Agreement or any provision
hereof. This Agreement shall terminate on the date (the “Termination Date”) on which all
Obligations then due and owing have been paid in full, all Commitments have been terminated, and
all undrawn portions or Letters of Credit have been cash collateralized or otherwise provided for
pursuant to arrangements satisfactory to the Issuer except that (x) those provisions which by the
express terms thereof continue in effect notwithstanding the Termination Date, and (y) the
Obligations in the nature of continuing indemnities not yet due and payable, shall continue in
effect.

     Section 8.13. Entire Agreement. THIS AGREEMENT, THE NOTES, AND THE OTHER LOAN
DOCUMENTS REFERRED TO HEREIN EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND
SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER
WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF.

     Section 8.14 Waiver of Borrower Rights. The Borrower acknowledges and agrees that, to
the extent the provisions of the Agricultural Credit Act of 1987, including 12 U.S.C. §§ 2199
through 2202e, and the implementing Farm Credit Administration regulations, 12 C.F.R. § 617.7000,
et seq. (collectively, the “Farm Credit Law”) apply to the Borrower or to the transactions
contemplated by this Agreement, the Borrower hereby irrevocably waive all Borrower Rights,
including all statutory or regulatory rights of a borrower to disclosure of effective interest
rates, differential interest rates, review of

80

 

credit decisions, distressed loan restructuring, and rights of first refusal. The Borrower
acknowledges and agrees that the waiver of Borrower Rights provided by this Section 8.14 is
knowingly and voluntarily made after the Borrower has consulted with legal counsel of its choice
and has been represented by counsel of its choice in connection with the negotiation of this
Agreement and the waiver of Borrower Rights set forth in this Section 8.14. The Borrower
acknowledges that its waiver of Borrower Rights set forth in this Section 8.14 is based on its
recognition that such waiver is material to induce commercial banks and other non-Farm Credit
System institutions to participate in the extensions of credit contemplated by this Agreement and
to provide extensions of credit to the Borrower. Nothing contained in this Section 8.14, nor the
delivery to the Borrower of any summary of any rights under, or any notice pursuant to, the Farm
Credit Law shall be deemed to be, or be constructed to indicate the determination or agreement by
the Borrower, the Agent, or any Bank that the Farm Credit Law, or any rights thereunder, are or
will be applicable to the Borrower or to the transactions contemplated by this Agreement. It is
the intent of the Borrower that the waiver of Borrower Rights contained in this Section 8.14
complies with and meets all of the requirements of 12 C.F.R. § 617.7010(c).

     Section 8.15. WAIVER OF JURY TRIAL. EACH OF THE BORROWER, THE AGENT AND THE BANKS
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENT TO WHICH IT IS A PARTY OR ANY INSTRUMENT OR
DOCUMENT DELIVERED THEREUNDER.

     Section 8.16. Confidentiality. Each of the Agent and each Bank agrees to exercise
reasonable care to protect against the unauthorized disclosure of information provided to it by the
Borrower or the Guarantor pursuant to the Loan Documents; provided that the Agent or any Bank is
hereby authorized to disclose such Confidential information:

          (a) as authorized or required by federal or state laws, regulations, ordinances or rules;

          (b) to the Agent, any other Bank or any Affiliate of any Bank,

          (c) to any third party that provides services to the Agent or the Bank for processing or
storing information related to loans subject to a written agreement pursuant to which the third
party agrees to protect against the unauthorized disclosure of information provided by the Agent or
the Bank,

          (d) to any Assignee or Participant or prospective Assignee or Participant that has agreed to
protect the confidentiality of information received from the Agent or any Bank,

          (e) to its employees, directors, agents, attorneys, accountants and other professional
advisors or those of any of its Affiliates ,

          (f) if requested or required to do so in connection with any litigation or similar proceeding,
provided that to the extent permitted by law Agent or Bank agrees to use reasonable effort to
provide notice of such request within a reasonable time after providing such information,

          (g) that has been publicly disclosed other than in breach of this Section 8.16, or

          (h) in connection with the exercise of any remedy hereunder or under any other Loan Document.

81

 

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

SIGNATURE PAGES TO FOLLOW

82

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO ORD, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS, THIS AGREEMENT IS DATED AS OF THE DATE
FIRST ABOVE STATED.

BORROWER:

US BIO ORD, LLC

a Nebraska limited liability company

	 	 	 
	/s/ Richard K. Atkinson
 

By: Richard K. Atkinson

	 	 
	Its: Senior Vice President/Chief Financial Officer
	 	 

AGENT:

AGSTAR
FINANCIAL SERVICES, PCA,

as Agent

/s/ Mark Schmidt

 

By: Mark Schmidt

Its: Vice President

AGSTAR:

as a Bank

AGSTAR FINANCIAL SERVICES, PCA

/s/ Mark Schmidt

 

By: Mark Schmidt

Its: Vice President

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO ORD, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF THE DATE
FIRST ABOVE STATED.

AGCOUNTRY FARM CREDIT SERVICES, FLCA

	 	 	 
	/s/ Randolph L. Aberle
 

By: Randolph L. Aberle

	 	 
	Its: Vice President
	 	 

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO ORD, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF THE DATE
FIRST ABOVE STATED.

BADGERLAND FARM CREDIT SERVICES

	 	 	 
	/s/ Lawrence P. Coulthard
 

By: Lawrence P. Coulthard

	 	 
	Its: Agribusiness Finance Officer
	 	 

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO ORD, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF THE DATE
FIRST ABOVE STATED.

BANK OF THE WEST

	 	 	 
	/s/ Lee Rosin
 

By: Lee Rosin

	 	 
	Its: Regional Vice President
	 	 

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO ORD, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE
PROVISIONS OF THIS CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS. THIS AGREEMENT IS
DATED AS OF THE DATE FIRST ABOVE STATED.

COFINA FINANCIAL, LLC

	 	 	 
	/s/ Brian K Legried
 

By: Brian K Legried

	 	 
	Its: President
	 	 

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO ORD, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF THE DATE
FIRST ABOVE STATED.

FARM CREDIT SERVICES OF GRAND FORKS

	 	 	 
	/s/ Dave DeVos
 

By: Dave DeVos

	 	 
	Its: CCO/VP
	 	 

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO ORD, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS
OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF THE DATE
FIRST ABOVE STATED.

FARM CREDIT SERVICES OF MID-AMERICA, PCA

	 	 	 
	/s/ Mark Strebel
 

By: Mark Strebel

	 	 
	Its: Credit Officer
	 	 

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO ORD, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF THE
DATE FIRST ABOVE STATED.

FIRST NATIONAL BANK OF OMAHA

	 	 	 
	/s/ Bradley J. Brummond 

By: Bradley J. Brummond

	 	 
	Its: Vice President
	 	 

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO ORD, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF THE DATE
FIRST ABOVE STATED.

HOME FEDERAL SAVINGS BANK

	 	 	 
	/s/ Eric Oftedahl 

By: Eric Oftedahl

	 	 
	Its:
VP
	 	 

 

 

SIGNATURE PAGE TO

CREDIT AGREEMENT

BY AND BETWEEN

US BIO ORD, LLC,

And

AGSTAR FINANCIAL SERVICES, PCA, AS ADMINISTRATIVE AGENT

And

the BANKS

DATED AS OF: February 7, 2007

EACH OF THE BORROWER, THE AGENT AND EACH BANK ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
CREDIT AGREEMENT, AND EACH SUCH PERSON AGREES TO ITS TERMS. THIS AGREEMENT IS DATED AS OF THE DATE
FIRST ABOVE STATED.

METROPOLITAN LIFE INSURANCE COMPANY

	 	 	 
	/s/ Steven D. Craig
 

By: Steven D. Craig

	 	 
	Its: Director
	 	 

 

 

SCHEDULES AND EXHIBITS

to

CREDIT AGREEMENT

by and between

US BIO ORD, LLC,

and

AGSTAR FINANCIAL SERVICES, PCA, as AGENT

and

the BANKS

Dated: February 7, 2007

 

 

SCHEDULE 2.01

COMMITMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Term Revolving	 	Revolving	 	 
	 	 	Construction	 	Term Loan	 	Loan	 	Line of	 	 
	 	 	Loan	 	Commitment	 	Commitment	 	Credit	 	Total
	Bank	 	Commitment	 	(Upon Conversion)	 	(Upon Conversion)	 	Commitment	 	Commitment
	AgCountry Farm Credit Services, FLCA
	 	$	981,530.36	 	 	$	736,147.77	 	 	$	245,382.59	 	 	$	0.00	 	 	$	981,530.36	 
	AgStar Financial Services, PCA1
	 	$	17,790,237.45	 	 	$	13,342,678.09	 	 	$	4,447,559.36	 	 	$	2,000,000.00	 	 	$	19,790,237.45	 
	Badgerland Farm Credit Services
	 	$	2,453,825.86	 	 	$	1,840,369.40	 	 	$	613,456.46	 	 	$	0.00	 	 	$	2,453,825.86	 
	Bank of the West
	 	$	1,533,641.16	 	 	$	1,150,230.87	 	 	$	383,410.29	 	 	$	0.00	 	 	$	1,533,641.16	 
	CoFina Financial, LLC
	 	$	2,453,825.85	 	 	$	1,840,369.39	 	 	$	613,456.46	 	 	$	0.00	 	 	$	2,453,825.85	 
	Farm Credit Services of Grand Forks
	 	$	3,312,664.91	 	 	$	2,484,498.68	 	 	$	828,166.23	 	 	$	0.00	 	 	$	3,312,664.91	 
	Farm Credit Services of Mid-America,
	 	$	3,067,282.32	 	 	$	2,300,461.74	 	 	$	766,820.58	 	 	$	0.00	 	 	$	3,067,282.32	 
	First National Bank of Omaha
	 	$	2,453,825.86	 	 	$	1,840,369.39	 	 	$	613,456.47	 	 	$	0.00	 	 	$	2,453,825.86	 
	Home Federal Savings Bank
	 	$	0.00	 	 	$	0.00	 	 	$	0.00	 	 	$	8,000,000.00	 	 	$	8,000,000.00	 
	Metropolitan Life Insurance Company
	 	$	12,453,166.23	 	 	$	9,339,874.67	 	 	$	3,113,291.56	 	 	$	0.00	 	 	$	12,453,166.23	 
	 
	 	$	46,500,000.00	 	 	$	34,875,000.00	 	 	$	11,625,000.00	 	 	$	10,000,000.00	 	 	$	56,500,000.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
 

1 On the Closing Date, the following institutions will purchase participations in the AgStar Financial Services, PCA commitments as follows:
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1st Farm Credit Services, PCA/FLCA
	 	$	3,067,282.32	 	 	$	2,300,461.74	 	 	$	766,820.58	 	 	$	0.00	 	 	$	3,067,282.32	 
	Agribank, FCB
	 	$	2,821,899.74	 	 	$	2,116,424.80	 	 	$	705,474.93	 	 	$	0.00	 	 	$	2,821,899.73	 
	AgFirst Farm Credit Bank
	 	$	6,502,638.52	 	 	$	4,876,978.89	 	 	$	1,625,659.63	 	 	$	0.00	 	 	$	6,502,638.52	 

 

 

SCHEDULE 2.23

FARM CREDIT SYSTEM ENTITIES

	1.	 	AgCountry Farm Credit Services, FLCA
	 
	2.	 	AgStar Financial Services, PCA
	 
	3.	 	Badgerland Farm Credit Services
	 
	4.	 	Farm Credit Services of Grand Forks
	 
	5.	 	Farm Credit Services of Mid-America

 

 

SCHEDULE 3.01(c)

REAL PROPERTY

Tract A: A tract of land located in part of the Southwest Quarter of Section 33, Township 19
North, Range 13 West of the 6th P.M., Valley County, Nebraska, and more particularly described as
follows: Commencing at the Southeast corner of the Southwest Quarter of Section 33, said point
also being the Point of Beginning; thence on an assumed bearing of
N89°28'11"W a distance of
171.93 feet to the northerly railroad right-of-way line of Union Pacific Railroad; thence
N53°03'31"W upon and along said northerly railroad right-of-way a distance of 2749.86 feet; thence
N00°01'17"W a distance of 1006.05 feet to the North line of said Southwest Quarter; thence
S89°50'02"E upon and along said North line a distance
of 2252.02 feet; thence S15°01'24"E a
distance of 49.27 feet to a point of curvature; thence around a curve in a counter-clockwise
direction, having a delta angle of 62°06'54", a radius of 175.00 feet, and a chord bearing of
S45°33'57"E a chord distance of 180.56 feet to the East line of said Southwest Quarter; thence
S00°32'42"W upon and along said East line a distance of 2479.89 feet to the Point of Beginning.

Said tract is also known and described as:

A tract of land located in part of the Southwest Quarter of Section 33, Township 19 North, Range
13 West of the 6th P.M., Valley County, Nebraska described as follows:

Point of Beginning at the Southeast corner of the Southwest Quarter of said Section 33; thence
N89°34'32"W on the South line of the said Southwest Quarter a distance of 172.06 feet to a point
on the northeasterly right-of-way line of the Union Pacific Railroad;
thence N53°09'52"W on said
right-of-way line a distance of 2750.00 feet; thence
N00°06'44"W a distance of 1006.08
feet to a point on the North line of the said Southwest Quarter, said point also being 272.36 feet
East of the West Quarter corner of said section; thence
S89°55'33"E on the said North line a
distance of 2252.07 feet to a point on the westerly right-of-way line of the North Loup River
Public Power and Irrigation District Canal; thence
S15°09'33"E on said canal right-of-way a
distance of 49.30 feet to a point of curvature; thence continuing southeasterly on said canal
right-of-way line on a 175.00 foot radius curve to the left a distance of 190.03 feet, chord
bearing of S45°40'18"E and a chord distance of 180.85 feet to a point on the East line of the said
Southwest Quarter; thence S00°26'46"W on the said East line a distance of 2479.26 feet to the
Point of Beginning

Tract B: A tract of land located in part of the Southeast Quarter of Section 33, Township 19 North,
Range 13 West of the 6th P.M., Valley County, Nebraska, and more particularly described as follows:
Commencing at the Southwest corner of the Southeast Quarter of Section 33, said point also being
the Point of Beginning; thence on an assumed bearing of N00°32'59"E upon and along the West line of
said Southeast Quarter a distance of 2475.82 feet; thence
S88°17'01"E a distance of
326.40 feet; thence N01°42'59"E a distance of 25.00
feet; thence S88°17'01"E a distance of 620.10
feet to a point of curvature; thence around a curve in a clockwise direction, having a delta angle
of 90°00'00”, a radius of 269,62 feet, and a chord bearing of S43°17'01"E a chord distance of
381.30 feet; thence S01°42'59"W a distance of 2199.10 feet to a point on the South line of said
Southeast Quarter; thence N89°50'09"W upon and along said South line a distance of 1166.14 feet to
the Point of Beginning.

Said tract is also known and described as:

A tract of land located in part of the Southeast Quarter of Section 33, Township 19 North, Range
13 West of the 6th P.M., Valley County, Nebraska described as follows:

Beginning at the Southwest corner of the Southeast Quarter of said Section 33; thence N00°26'46"E
along the West line of the Southeast Quarter a distance of 2475.82 feet to a point on the southern
line of the North Loup River Public Power and Irrigation District Canal right-of-way; thence along
said canal right-of-way
S88°23'14"E a distance of
326.40 feet; thence N01°36'46"E a distance of
25.00 feet; thence
S88°23'14"E a distance of 620.10 feet to a point of curvature; thence continuing
southeasterly on a 269.62 foot radius to the right, a distance of
423.52 feet, cord bearing of
S43°23'14"E and chord distance of 381.30 feet; thence S01°36'46"W a distance of 2199.10 feet to a
point on the South line of the Southeast Quarter of Section 33; thence N89°56'22"W along the South
line of the Southeast Quarter a distance of 1166.14 feet to the point of beginning.

 

 

SCHEDULE 4.01(a)

DESCRIPTION OF CERTAIN TRANSACTIONS RELATED TO 

THE BORROWER’S MEMBERSHIP INTERESTS (UNITS)

NONE.

 

 

SCHEDULE 4.01(f)

DESCRIPTION OF CERTAIN THREATENED ACTIONS, ETC.

On July 13, 2005, Curt Schauer and Susan Schauer, Plaintiffs, filed a Complaint in the District
Court of Valley County, Nebraska, naming Valley County, Nebraska; each member of the Valley County
Board of Supervisors individually; and Val-E as Defendants in Case #CI 05-47. Plaintiffs requested
therein that the Conditional Use Permit be voided; that construction of the ethanol facility be
temporarily and permanently enjoined; and that Plaintiffs be awarded costs and fees.

On September 21, 2005, Curt Schauer and Susan Schauer, Plaintiffs, filed a second Complaint in the
District Court of Valley County, Nebraska, naming Valley County, Nebraska; each member of the
Valley County Board of Supervisors individually; and Val-E as Defendants in Case #CI 05-63. As in
Case #CI 05-47, Plaintiffs requested therein that the Conditional Use Permit be voided; that
construction of the ethanol facility be temporarily and permanently enjoined; and that Plaintiffs
be awarded costs and fees.

On December 6, 2005, the District Court entered an Order dismissing Case #CI 05-63, with prejudice,
thereby consolidating the two cases, both involving Valley County and Val-E, into a single case as
#CI 05-47. Plaintiffs filed a Motion for New Trial in #CI 05-63, which was overruled by the Court
on January 24, 2006. This case (#CI 05-47) remains pending.

Any further proceedings in Case #CI 05-47 were stayed by the Valley County District Court by an
Order dated April 28, 2006, and filed May 1, 2006, until a final decision is rendered in Case #CI
06-18, which case is hereinafter described.

Case #CI 06-18 is a pending action in the District Court of Valley County, Nebraska brought by the
same Plaintiffs, namely Curt Schauer and Susan Schauer. The named Defendants in the Complaint filed
March 21, 2006 include the City of Ord, Nebraska, and the individual members of the Ord City
Council and the City Mayor. The final defendant is Val-E.

Case #CI 06-18 filed by Plaintiffs challenges the action taken by the City of Ord, Nebraska, as a
political subdivision (hereinafter “City”), on November 21, 2005.

On that date, the City adopted Ordinance #731 which served to annex certain described property in
Valley County, Nebraska. The Complaint also alleges that participation of some members of the City
Council, and the Mayor in a June 1, 2005 bus trip to the KAAPA Ethanol Plant in Axtell, Nebraska, a
tour thereof, and dinner constituted a public meeting in violation of the public meeting statutes
in the State of Nebraska. The property that was annexed by the City is the real estate upon which U
S Bio is currently constructing its ethanol facility. In their prayer for relief contained in the
March 21, 2006 Complaint, Plaintiffs requested therein that the annexation action that occurred on
November 21, 2005 be voided; that construction of the ethanol facility be temporarily and
permanently enjoined; and that Plaintiffs be awarded costs and fees.

 

 

SCHEDULE 4.01(k)

LOCATION OF INVENTORY AND FARM PRODUCTS; 

THIRD PARTIES IN POSSESSION; CROPS

NONE.

 

 

SCHEDULE 4.01(l)

OFFICE LOCATIONS; FICTITIOUS NAMES, ETC.

	 	 	 	 	 
	1.

	 	Location of Borrower’s chief place of business:
	 	213 S. 16th Street
	 

	 	 	 	Ord, NE 68862
	 
	 	 	 	 
	2.

	 	Location of Borrower’s chief executive office:
	 	213 S. 16th Street
	 

	 	 	 	Ord, NE 68862
	 
	 	 	 	 
	3.

	 	Borrower’s jurisdiction of organization: Nebraska.	 	 
	 
	 	 	 	 
	4.

	 	Other places where the Borrower keeps its books and records:	 	 
	 

	 	5500 Cenex Drive, Mail Station 175	 	 
	 

	 	Inver Grove Heights, MN 55077	 	 
	 
	 	 	 	 
	5.

	 	Other locations where the Borrower has a place of business: None.	 	 
	 
	 	 	 	 
	6.

	 	Trade-names or fictitious business names of the Borrower: None.	 	 
	 
	 	 	 	 
	7.

	 	Names of all predecessor companies of the Borrower: Val-E Ethanol, LLC	 	 
	 
	 	 	 	 
	8.

	 	Borrower’s U.S. Federal Income Tax I.D. number: 75-3204878	 	 
	 
	 	 	 	 
	9.

	 	Borrower’s state organizational identification number: 10071181	 	 

 

 

SCHEDULE 4.01(p)

INTELLECTUAL PROPERTY

NONE.

 

 

SCHEDULE 4.01(t)

ENVIRONMENTAL COMPLIANCE

NONE.

 

 

SCHEDULE 5.02(a)

DESCRIPTION OF CERTAIN LIENS, LEASE OBLIGATIONS, ETC.

NONE.

 

 

SCHEDULE 5.02(e)

MANAGEMENT

NONE.

 

 

SCHEDULE 5.02(k)

TRANSACTIONS WITH AFFILIATES

Contracts with Fagen, Inc. related to the construction of the Project

 

 

EXHIBIT A

BORROWING BASE CERTIFICATE

Detailed Calculation

For Month Ending:                      ___,___

Date Delivered:                      ___, ___

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	1	 	 	All unpaid Accounts:
	 	 	 	 	 	 	 	 
	 	 	 	 	                     (ethanol)
	 	$	 	 	 	 	 	 
	 	 	 	 	                     (DGS)
	 	$	 	 	 	 	 	 
	 	 	 	 	     Other
	 	$	 	 	 	 	 	 
	 	 	 	 	     Other
	 	$	 	 	 	 	 	 
	 	 	 	 	     Total unpaid Accounts
	 	$	 	 	 	 	 	 
	 	 	 	 	Deduct ineligible Accounts
	 	$	 	 	 	 	 	 
	 	 	 	 	     (46 days or more from invoice date or otherwise
excluded pursuant to the terms and conditions of
the Credit Agreement)
	 	 	 	 	 	 	 	 
	 	 	 	 	Total Eligible Accounts Receivable
	 	$	 	 	 	 	 	 
	 	 	 	 	Multiply by Borrowing Base Factor
	 	 	75.00	%	 	 	 	 
	 	 	 	 	Total Eligible Accounts Receivable
	 	$	 	 	 	$	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	2	 	 	All Corn, DGS and other byproducts Inventory:
	 	 	 	 	 	 	 	 
	 	 	 	 	Ending Corn Inventory
	 	$	 	 	 	 	 	 
	 	 	 	 	Ending DGS & other byproducts Inventory
	 	$	 	 	 	 	 	 
	 	 	 	 	Total Corn, DGS & other byproducts Inventory
	 	 	 	 	 	 	 	 
	 	 	 	 	Multiply by Borrowing Base Factor
	 	 	75.00	%	 	 	 	 
	 	 	 	 	Total
Corn, DGS and other byproducts Eligible Inventory
	 	$	 	 	 	$	 	 
	 	3	 	 	All Ethanol and other Inventory (lower of cost or
market)
	 	 	 	 	 	 	 	 
	 	 	 	 	Ending Ethanol Inventory
	 	$	 	 	 	 	 	 
	 	 	 	 	Ending ______________ Inventory
	 	$	 	 	 	 	 	 
	 	 	 	 	Other Inventory
	 	 	 	 	 	 	 	 
	 	 	 	 	Total Ethanol and Other Inventory
	 	$	 	 	 	 	 	 
	 	 	 	 	Multiply by Borrowing Base Factor
	 	 	75.00	%	 	 	 	 
	 	 	 	 	Total Ethanol and other Eligible Inventory
	 	$	 	 	 	$	 	 
	 	 	 	 	Total Eligible Inventory (Total from #2 and #3)
	 	$	 	 	 	 	 	 
	 	4	 	 	Total Borrowing Base (Total from #1, #2, & #3)
	 	$	 	 	 	$	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	5	 	 	Outstanding
Revolving Line of Credit Loan Balance (including outstanding Revolving Letters of
Credit) (as of month end)
	 	$	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	6	 	 	Excess or Deficit (Line 4 minus Line 5)
	 	$	 	 	 	$	 	 

 

 

 

			
	*	 	If a Deficit exists, remit amount unless remitted since end of month.

     Pursuant to and in accordance with the term and conditions of that certain Credit Agreement,
dated as of February 7, 2007, among US Bio Ord, LLC, a Nebraska limited liability company (the
“Borrower”), the Banks from time to time party thereto, and AgStar Financial Services, PCA, as
Agent for the Banks (the “Agent”) (as such agreement may be amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), the Borrower is executing and
delivering to the Agent this Borrowing Base Certificate accompanied by supporting data
(collectively, this “Certificate”). The undersigned hereby certifies that the information set
forth in this Certificate is true and correct as of the date hereof.

	 	 	 	 	 
	 	 	US BIO ORD, LLC,

a Nebraska limited liability company
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	Its	 	 
	 

	 	 	 	 

 

 

EXHIBIT B

CERTIFICATE OF SUBSTANTIAL COMPLETION

			
	 	 	 
	
	 	Form 7.6.1a
1 of 1

	 	 	 	 	 
	Certification of

	 	OWNER
	 	þ
	Substantial Completion

	 	ARCHITECT
	 	o
	AIA Document G704 -

	 	CONTRACTOR
	 	þ
	Electronic Format

	 	FIELD
	 	o
	 

	 	OTHER
	 	o

 

THIS
DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES, CONSULTATION WITH AN ATTORNEY IS ENCOURAGED WITH RESPECT TO
ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF THIS ELECTRONICALLY
DRAFTED AIA DOCUMENT MAY BE MADE
BY USING AIA DOCUMENT D401

 

	 	 	 	 	 
	PROJECT
(Name and address)

	 	PROJECT NO:	 	 
	 

	 	CONTRACT FOR:	 	 
	 
	 

	 	CONTRACT DATE:	 	 
	 
	TO
OWNER
(Name and address)

	 	TO CONTRACTOR:
(Name and address)	 	 
	 

	 	
	 	Fagen Inc.
	 

	 	 	 	501 W. Hwy 212
	 

	 	 	 	PO Box 159
	 

	 	 	 	Granite Falls, MN 56241

DATE OF
ISSUANCE:

PROJECT OR DESIGNATED PORTION SHALL INCLUDE:

The Work performed under this Contract has been reviewed and found, to the Architect’s best
knowledge, information and belief, to be substantially complete. Substantial Completion is the
stage in the progress of the Work when the work or designated portion thereof is sufficiently
complete in accordance with the Contract Documents so the Owner
can occupy or utilize the Work for its intended use. The date of Substantial Completion of the
Project of portion thereof designated above is hereby established as which is also the date of
commencement of applicable warranties required by the Contract
Documents, except as stated below

 

A list of items to be completed or corrected is attached hereto. The failure to include any items
on such list does not alter the responsibility of the Contractor to complete all Work in accordance
with the Contract Documents.

	 	 	 	 	 
	 

	 	 
	 	 
	ARCHITECT

	 	BY
	 	DATE

The
Contractor will complete or correct the Work on the list of items anached hereto within days
form the above Date of Substantial Completion

	 	 	 	 	 
	 

	 	 
	 	 
	CONTRACTOR

	 	BY
	 	DATE

The Owner
accepts the Work or designated portion thereof as substantially complete and will assume
full possession thereof at (time) on (date)

	 	 	 	 	 
	 

	 	 
	 	 
	OWNER

	 	BY
	 	DATE

 

The responsibilities of the Owner and the Contractor for security, maintenance, heat, utilities,
damage to the Work and insurance shall be as follows: Owner has the
responsibility of all of the above

 

AIA
DOCUMENTS G704 — CERTIFICATION OF SUBSTANTIAL COMPLETION —
1992 EDITION — AIA — COPYRIGHT
1992 — THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK
AVENUE, N.W., WASHINGTON, D.C. 20006-5292.
WARNING, Unlicensed photocopying violates U.S. copyright laws and is subject to legal prosecution .
The document was
electronically produced with permission of the AIA and can be
reproduced without violation until
the date of expiration as noted below.

(Note — Owner’s and Contractor’s Legal and Insurance counsel should determine and
review insurance requirements and coverage.)

January 11,2006

Ó2003 Fagen, Inc. All rights reserved.

Strictly confidential and proprietary.

 

 

EXHIBIT C

CERTIFIED CONSTRUCTION STATEMENT

Reference is made to that certain Credit Agreement, dated as of February 7, 2007, by and
among US Bio Ord, LLC, a Nebraska limited liability company (the “Borrower”), AgStar Financial
Services, PCA, as Agent (the “Agent”) and the Banks identified therein (as such agreement may be
amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement;”
capitalized terms used herein and not otherwise defined herein shall have the respective meanings
set forth therefor in the Credit Agreement). The undersigned, in his/her capacity as
                    of the Borrower, hereby certifies that set forth below is a true, complete and
accurate list of those Contractor(s) performing services or materials with respect to specific
portions of the construction of the Project and the amounts actually incurred and paid, or to be
incurred, to such Contractor(s) in completing construction of the Project.

OWNER:

PROPERTY AT:

IMPORTANT NOTICE: In the event that the Borrower becomes aware of any change in the Project Costs which would increase the
total Project Cost in excess of $50,000.00 above the amount shown on this Certified Construction Statement, the Borrower shall
immediately notify the Agent in writing and shall promptly submit to the Agent for its approval a revised Certified Construction
Statement.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	ITEMS	 	FURNISH BY	 	TOTAL COST	 	AMT PAID	 	BALANCE
	 
	1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	7
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	10
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	11
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	13
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	ITEMS	 	FURNISH BY	 	TOTAL COST	 	AMT PAID	 	BALANCE
	14
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	15
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	16
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	17
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
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	40
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
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	47
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	SUBTOTAL	 	 	0	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

	 	 	 	 	 
	US BIO ORD, LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	Borrower / Owner	 	 
	 
	 	 	 	 
	Acknowledged by:	 	 
	FAGEN, INC.	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	General Contractor	 	 

 

 

EXHIBIT D

COMPLIANCE CERTIFICATE

     Pursuant to Section 5.01(c) of that certain Credit Agreement dated as of February 7, 2007, by
and among US Bio Ord, LLC, a Nebraska limited liability company (the “Borrower”), AgStar Financial
Services, PCA, as Agent (the “Agent”) and the Banks identified therein (as such agreement may be
amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement;”
capitalized terms used herein and not otherwise defined herein shall have the respective meanings
set forth therefor in the Credit Agreement), the undersigned, in his/her capacity as                     
of the Borrower, hereby certifies as follows:

	 	1.	 	The financial statement(s) attached hereto fairly present in all material
respects the financial condition of the Borrower in accordance with GAAP (subject to
year-end adjustments and the absence of footnotes with respect to unaudited interim
financial statements) and, other than with respect to any interim financial statements,
have been prepared in accordance with GAAP;
	 
	 	2.	 	To my knowledge, there exists no Event of Default as of the date of this
certificate;1 and
	 
	 	3.	 	Set forth below are calculations of current financial covenants set forth in Section 5.01
of the Credit Agreement [on the Substantial Completion Date] [for the fiscal year ended
December 31, 2006]:

	 	 	 	 	 
	1.

	 	Section 5.01(d) – Working Capital	 	 
	 	 	(tested on the Substantial Completion Date and as of December 31 of each year thereafter)
	 
	 	 	 	 
	(a)

	 	Required Working Capital	 	 
	 	 	(on the Substantial Completion Date Working Capital shall be at least $8,000,000.00)

(on and after the date that is twelve months after the Substantial Completion Date, Working
Capital shall be $12,000,000.00)
	 
	 	 	 	 
	(b)

	 	Actual Working Capital:	 	 
	 
	 	 	 	 
	(x)

	 	Current Assets [as of the Substantial Completion Date] [as of the date
that is twelve months after the Substantial Completion Date]
	 	$                    
	 
	 	 	 	 
	(y)

	 	Current Liabilities [as of the Substantial Completion Date] [as of the
date that is twelve months after the Substantial Completion Date]
	 	$                    
	 

	 	Line (x) less line (y)
	 	$                    

	 	 	 	 	 
	In Compliance

	 	Yes ___
	 	No ___

	 	 	 	 	 
	2.

	 	Section 5.01(e) – Net Worth	 	 
	 	 	(tested on the Substantial Completion Date and as of December 31 of each year thereafter)
	 
	 	 	 	 
	(a)

	 	Required Net Worth [on the Substantial Completion Date
	 	$31,600,000]

 

			
	1	 	If, to such officer’s knowledge,
there exists an Event of Default, such officer shall state in reasonable detail
the facts with respect thereto.

 

 

	 	 	 	 	 
	 

	 	[after the Substantial Completion Date, calculated in accordance with
Section 5.01(e) of the Credit Agreement]
	 	$                    
	 
	 	 	 	 
	(b)

	 	Actual Net Worth	 	 
	 

	 	(1) Total Assets
	 	$                    
	 

	 	(2) Total Liabilities (minus subordinated debt)
	 	$                    
	 

	 	(3) Total Net Worth
	 	$                    
	 

	 	(line (1) minus line (2))	 	 
	 
	 	 	 	 

	 	 	 	 	 
	In Compliance

	 	Yes ___
	 	No___

	 	 	 	 	 
	3.

	 	Section 5.01(f) – Owner’s Equity 	 	 
	 

	 	(tested initially at the end of the first 12 months after the Substantial
Completion Date and
as of December 31 of each year thereafter)	 	 
	 
	 	 	 	 
	(a)

	 	Required Owner’s Equity	 	 40%
	 
	 	 	 	 
	(b)

	 	Actual Owner’s Equity	 	 
	(i)

	 	Net Worth
	 	$                    
	(ii)

	 	Total Assets of the Borrower and its Subsidiaries
	 	$                    
	(iii)

	 	Owner’s Equity	 	 
	 

	 	((i) divided by (ii))
	 	___%
	 
	 	 	 	 
	In Compliance	 	Yes_____ No_____
	 
	 	 	 	 
	4.

	 	Section 5.01(g) – Fixed Charge Coverage Ratio	 	 
	 

	 	(tested initially at the end of the first 12 months after the Substantial
Completion Date
and as of December 31 of each year thereafter)	 	 
	 
	 	 	 	 
	(a)

	 	Required Fixed Charge Coverage Ratio	 	Not less than 1.25 to 1.0
	(b)

	 	Actual Fixed Charge Coverage Ratio	 	 
	For such twelve month period,	 	 
	(i)

	 	EBITDA
	 	$                    
	 
	For such twelve month period,

	
	
(ii)

	 	
Current Portion of Long Term Debt
	 	$                    
	(iii)

	 	Interest Expense
	 	$                    
	(iv)

	 	Dividends
	 	$                    
	(v)

	 	Distributions	 	 
	(vi)

	 	Tax Distributions
	 	$                    
	(vii)

	 	Maintenance Capital Expenditures
	 	$                    
	(viii)

	 	Denominator (sum of lines (ii) through (vii))
	 	$                    
	 
	 	 	 	 
	Ratio of

	 	line (i) to (viii)
	 	___ to 1.00

	 	 	 	 	 
	In Compliance

	 	Yes ___
	 	No ___

 

 

     IN WITNESS WHEREOF, the undersigned has executed and delivered this Compliance Certificate
this ___day of                     , 20___.

	 	 	 	 	 
	 	 	BORROWER:
	 
	 	 	 	 
	 	 	US BIO ORD, LLC,

a Nebraska limited liability company
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	Its	 	 
	 

	 	 	 	 

 

 

EXHIBIT E

FORM OF CONSTRUCTION NOTE

	 	 	 
	$46,500,000.00

	 	                    

     FOR VALUE RECEIVED, US BIO ORD, LLC, a Nebraska limited liability company (the “Borrower”),
hereby promises to pay to the order of ___ (the “Bank”), (a) the principal sum of
Forty-six Million Five Hundred Thousand and No/100ths ($46,500,000.00) Dollars, or, if less, (b)
the aggregate unpaid principal amount of all Construction Advances (as defined in the Credit
Agreement (as defined below)) made by the Bank to the Borrower pursuant to Section 2.02 of the
Credit Agreement. The Borrower further agrees to pay interest in like money to the Bank on the
unpaid principal amount hereof from time to time outstanding at the rates and on the dates
specified in Sections 2.02(c) and 2.02(n) of the Credit Agreement, subject to Sections 2.02(g),
2.11, 2.13, 2.14, 2.15, 2.17, and 2.29 of the Credit Agreement and, in any event, all such payments
shall be made no later than the Conversion Date.

     This Construction Note is one of the Construction Notes evidencing the Construction Loan and
referred to in that certain Credit Agreement, dated as of February 7, 2007, among the Borrower, the
Bank and the other commercial, banking or financial institutions from time to time parties thereto,
and AgStar Financial Services, PCA, as agent (the “Agent”) (such agreement, as it may be amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”). This
Construction Note is subject to the terms and provisions of the Credit Agreement including, without
limitation, Section 2.04. All capitalized terms used and not defined herein shall have the
meanings assigned to them in the Credit Agreement.

     This Construction Note is subject to prepayment as provided in the Credit Agreement.

     This Construction Note is secured and guaranteed as provided in the Loan Documents. Reference
is hereby made to the Loan Documents for a description of the properties and assets in which a
security interest has been granted, the nature and extent of the security and the guarantee, and
the terms and conditions upon which the security interests and the guarantee were granted and the
rights of the Bank in respect thereof.

     Upon the occurrence and during the continuance of any one or more of the Events of Default set
forth in Section 6.01 of the Credit Agreement, all amounts then remaining unpaid on this
Construction Note shall, at the option of the Agent, be immediately due and payable, all as
provided in the Credit Agreement.

     The Borrower hereby waives demand, presentment, protest and notice of nonpayment and dishonor
of this Construction Note.

     This Construction Note shall be governed by and construed in accordance with the laws of the
State of Minnesota (without reference to the choice of law principles thereof).

     The Borrower hereby submits to the jurisdiction of any Minnesota State court sitting in Blue
Earth County, Minnesota, or Federal court sitting in Minneapolis, Minnesota, in any action or
proceeding arising out of or relating to this Construction Note, and the Borrower hereby agrees
that claims in respect of such action or proceeding may be heard and determined in such Minnesota
State court or in such Federal

 

 

court. The Borrower hereby waives, to the fullest extent it may
effectively do so, the defense of an inconvenient forum to the maintenance of such action or
proceeding.

	 	 	 	 	 
	 

	 	 	 	US BIO ORD, LLC,

a Nebraska limited liability company
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	By:
	 

	 	 	 	  Its:

 

 

EXHIBIT F

PROJECT SOURCES AND USES STATEMENT

See attached Val-E Ethanol LLC Construction Variance Report.

 

 

EXHIBIT G

FORM OF REVOLVING LINE OF CREDIT NOTE

	 	 	 
	$10,000,000.00

	 	                    

     FOR VALUE RECEIVED, US BIO ORD, LLC, a Nebraska limited liability company (the “Borrower”),
hereby promises to pay to the order of ___(the “Bank”), (a) the principal sum of Ten
Million and No/100ths ($10,000,000.00) Dollars, or, if less, (b) the aggregate unpaid principal
amount of all Revolving Line of Credit Advances (as defined in the Credit Agreement (as defined
below)) made by the Bank to the Borrower pursuant to Section 2.05 of the Credit Agreement. The
Borrower further agrees to pay interest in like money to the Bank on the unpaid principal amount
hereof from time to time outstanding at the rates and on the dates specified in Sections 2.05(i)
and 2.05(k) of the Credit Agreement, subject to Section 2.11, 2.13, 2.14, 2.15, 2.17 and 2.29 of
the Credit Agreement and, in any event, all such payments shall be made no later than the Revolving
Line of Credit Maturity Date.

     This Revolving Line of Credit Note is one of the Revolving Line of Credit Notes evidencing the
Revolving Line of Credit Loan and referred to in that certain Credit Agreement, dated as of
February 7, 2007 , among the Borrower, the Bank and the other commercial, banking or
financial institutions from time to time parties thereto, and AgStar Financial Services, PCA, as
agent (the “Agent”) (such agreement, as it may be amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”). This Revolving Line of Credit Note is subject
to the terms and provisions of the Credit Agreement. All capitalized terms used and not defined
herein shall have the meanings assigned to them in the Credit Agreement.

     This Revolving Line of Credit Note is subject to prepayment as provided in the Credit
Agreement.

     This Revolving Line of Credit Note is secured and guaranteed as provided in the Loan
Documents. Reference is hereby made to the Loan Documents for a description of the properties and
assets in which a security interest has been granted, the nature and extent of the security and the
guarantee, and the terms and conditions upon which the security interests and the guarantee were
granted and the rights of the Bank in respect thereof.

     Upon the occurrence and during the continuance of any one or more of the Events of Default set
forth in Section 6.01 of the Credit Agreement, all amounts then remaining unpaid on this Revolving
Line of Credit Note shall, at the option of the Agent, be immediately due and payable, all as
provided in the Credit Agreement.

     The Borrower hereby waives demand, presentment, protest and notice of nonpayment and dishonor
of this Revolving Line of Credit Note.

     This Revolving Line of Credit Note shall be governed by and construed in accordance with the
laws of the State of Minnesota (without reference to the choice of law principles thereof).

     The Borrower hereby submits to the jurisdiction of any Minnesota State court sitting in Blue
Earth County, Minnesota, or Federal court sitting in Minneapolis, Minnesota, in any action or

 

 

proceeding arising out of or relating to this Revolving Line of Credit Note, and the Borrower
hereby agrees that claims in respect of such action or proceeding may be heard and determined in
such
Minnesota State court or in such Federal court. The Borrower hereby waives, to the fullest
extent it may effectively do so, the defense of an inconvenient forum to the maintenance of such
action or proceeding.

	 	 	 	 	 
	 

	 	 	 	US BIO ORD, LLC,

a Nebraska limited liability company
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	By:
	 

	 	 	 	  Its:

 

 

EXHIBIT_H

FORM OF TERM REVOLVING NOTE

	 	 	 
	$11,625,000.00

	 	                    

     FOR VALUE RECEIVED, US BIO ORD, LLC, a Nebraska limited liability company (the “Borrower”),
hereby promises to pay to the order of ___(the “Bank”) (a) the principal sum of Eleven
Million Six Hundred Twenty-five Thousand and No/100ths ($11,625,000.00) Dollars, or, if less (b)
the aggregate unpaid principal amount of all Term Revolving Advances (as defined in the Credit
Agreement (as defined below)) made by the Bank to the Borrower pursuant to Section 2.04 of the
Credit Agreement. The Borrower further agrees to pay interest in like money to the Bank on the
unpaid principal amount hereof from time to time outstanding at the rates and on the dates
specified in Sections 2.04(i) and 2.04(k) of the Credit Agreement, subject to Sections 2.11, 2.13,
2.14, 2.15, 2.17, and 2.29 of the Credit Agreement and, in any event, all such payments shall be
made no later than the Term Revolving Loan Termination Date.

     This Term Revolving Note is one of the Term Revolving Notes evidencing the Term Revolving Loan
and referred to in that certain Credit Agreement, dated as of February 7, 2007 , among
the Borrower, the Bank and the other commercial, banking or financial institutions from time to
time parties thereto, and AgStar Financial Services, PCA, as agent (the “Agent”) (such agreement,
as it may be amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”). This Term Revolving Note is subject to the terms and provisions of the Credit
Agreement. All capitalized terms used and not defined herein shall have the meanings assigned to
them in the Credit Agreement.

     This Term Revolving Note is subject to prepayment as provided in the Credit Agreement.

     This Term Revolving Note is secured and guaranteed as provided in the Loan Documents.
Reference is hereby made to the Loan Documents for a description of the properties and assets in
which a security interest has been granted, the nature and extent of the security and the
guarantee, and the terms and conditions upon which the security interests and the guarantee were
granted and the rights of the Bank in respect thereof.

     Upon the occurrence and during the continuance of any one or more of the Events of Default set
forth in Section 6.01 of the Credit Agreement, all amounts then remaining unpaid on this Term
Revolving Note shall, at the option of the Agent, be immediately due and payable, all as provided
in the Credit Agreement.

     The Borrower hereby waives demand, presentment, protest and notice of nonpayment and dishonor
of this Term Revolving Note.

     This Term Revolving Note shall be governed by and construed in accordance with the laws of the
State of Minnesota (without reference to the choice of law principles thereof).

     The Borrower hereby submits to the jurisdiction of any Minnesota State court sitting in Blue
Earth County, Minnesota, or Federal court sitting in Minneapolis, Minnesota, in any action or
proceeding arising out of or relating to this Term Revolving Note, and the Borrower hereby agrees
that claims in respect of such action or proceeding may be heard and determined in such Minnesota
State

9

 

court or in such Federal court. The Borrower hereby waives, to the fullest extent it may
effectively do so, the defense of an inconvenient forum to the maintenance of such action or
proceeding.

	 	 	 	 	 
	 

	 	 	 	US BIO ORD, LLC,

a Nebraska limited liability company
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	By:
	 

	 	 	 	Its:

10

 

EXHIBIT I

FORM OF LETTER OF CREDIT

IRREVOCABLE STANDBY

LETTER OF CREDIT NO. ___

(Date)

                                        

                                        

                                        

(Beneficiary)

Ladies and Gentlemen:

At the request of US Bio Ord, LLC, we hereby establish our Irrevocable Standby Letter of Credit in
your favor in the amount of $                     U.S. dollars.

We undertake that drawings under this Letter of Credit will be honored upon presentation of your
draft drawn on                                         ,                     ,                     , ___, and the original of
this Letter of Credit prior to the expiration date set forth herein. All drafts submitted to
                                         must indicate the number and date of this credit.

This Letter of Credit expires on                     ; provided that this Letter of Credit will be
automatically renewed for a one year period upon such expiration date and upon each anniversary of
such date, unless at least thirty (30) days prior to such expiration date, or prior to any
anniversary of such date, we notify both you and your client in writing by registered mail that we
elect not to so renew this Letter of Credit, and provided that this Letter of Credit will not
extend beyond                      [the applicable maturity date under the Credit Agreement]

Except as expressly stated herein, this undertaking is not subject to any conditions or
qualification. The obligation of                      under this Letter of Credit shall be the individual
obligation of                      and in no way contingent upon reimbursement with respect thereto.

This credit is subject to the Uniform Customs and Practice for Documentary Credits, 1993 Version,
of the International Chamber of Commerce or any successor publication.

Sincerely,

11

 

EXHIBIT J

FORM OF OPINION LETTER

[RESERVED]

12

 

EXHIBIT K

FORM OF BANK SUPPLEMENT

FORM OF BANK SUPPLEMENT

     THIS BANK SUPPLEMENT (this “Supplement”) to the Credit Agreement (as amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”), dated as of February 7, 2007, by and
among US BIO ORD, LLC, a Nebraska limited liability company (“Borrower”), AGSTAR FINANCIAL
SERVICES, PCA (“AgStar”), the commercial, banking or financial institutions listed in the Credit
Agreement or which have become parties thereto pursuant to Section 8.07 of the Credit Agreement
(AgStar and such commercial, banking or financial institutions are sometimes hereinafter
collectively the “Banks” and individually a “Bank”), and AGSTAR FINANCIAL SERVICES, PCA as
Administrative Agent (the “Agent”) for itself and the other Banks is made and entered into this
___day of ___, ___.

RECITALS

     A. The Credit Agreement provides that any bank, financial institution or other entity may
become a party to the Credit Agreement with the consent of the Borrower and the Agent by executing
and delivering to the Borrower and the Agent a supplement to the Credit Agreement in substantially
the form of this Supplement; and

     B. The undersigned now desires to become a party to the Credit Agreement;

     NOW, THEREFORE, the undersigned hereby agrees as follows:

     1. The undersigned agrees to be bound by the provisions of the Credit Agreement, and
agrees that it shall, on the date this Supplement is accepted by the Borrower and the Agent,
become a Bank for all purposes of the Credit Agreement to the same extent as if originally a
party thereto.

     2. The undersigned (a) represents and warrants that it is legally authorized to enter
into this Supplement; (b) confirms that it has received a copy of the Credit Agreement,
together with copies of the financial statements referred to in Section 5.01(c) thereof and
such other documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Supplement; (c) agrees that it has made and will,
independently and without reliance upon the Agent or any Bank, and based on such documents
and information as it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action under the Credit Agreement or any instrument or
document furnished pursuant hereto or thereto; (d) appoints and authorizes the Agent to take
such action as agent on its behalf and to exercise such powers and discretion under the
Credit Agreement or any instrument or document furnished pursuant hereto or thereto as are
delegated to the Agent by the terms thereof, together with such powers as are incidental
thereto; and (e) agrees that it will be bound by the provisions of the Credit Agreement and
will perform in accordance with its terms all the obligations which by the terms of the
Credit Agreement are required to be performed by it as a Bank including, without limitation,
if it is organized under the laws of a jurisdiction outside the United States, its
obligation pursuant to the terms of the Credit Agreement.

     3. The undersigned’s address for notices for the purposes of the Credit Agreement is
as follows:

13

 

[INSERT ADDRESS OF NEW BANK]

     IN WITNESS WHEREOF, the undersigned has caused this Supplement to be executed and delivered by
a duly authorized officer on the date first above written.

	 	 	 	 	 
	 	 	[INSERT NAME OF NEW BANK]
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

Accepted this ___day of

                    , 20___

BORROWER:

US BIO ORD, LLC

a Nebraska limited liability company

	 	 	 	 	 
	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Its:
	 	 	 	 
	 

	 	 	 	 

Accepted this ___day of

                    , 20___

AGENT:

AGSTAR FINANCIAL SERVICES, PCA,

as Agent

	 	 	 	 	 
	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Its:
	 	 	 	 
	 

	 	 	 	 

14

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