Document:

exhibit102_033012.htm

 

Exhibit 10.2

 

Execution Copy

 

 

FOURTH AMENDMENT TO AMENDED AND RESTATED

CREDIT AGREEMENT

THIS FOURTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is entered into to be effective as of March 30, 2012 (the “Effective Date”), among SOUTHWEST IOWA RENEWABLE ENERGY, LLC, an Iowa limited liability company (the “Borrower”), AGSTAR FINANCIAL SERVICES, PCA (“AgStar”), the other commercial, banking or financial institutions whose signatures appear on the signature pages hereof or which hereafter become parties to the Credit Agreement (the “Banks”), and AGSTAR FINANCIAL SERVICES, PCA, and its successors and assigns, as Administrative Agent for itself and the other Banks (the “Agent”).  Capitalized terms used and not otherwise defined herein shall have the meanings assigned to them in the Credit Agreement (as defined below).

RECITALS

A.           The Borrower, the Agent, and the Banks have entered into an Amended and Restated Credit Agreement dated March 31, 2010, which was amended by that certain Amendment to Amended and Restated Credit Agreement dated to be effective as of March 31, 2011, and further amended by that certain Second Amendment to Amended and Restated Credit Agreement dated June 30, 2011, and that certain Third Amendment to Amended and Restated Credit Agreement dated September 1, 2011  (as amended, the “Credit Agreement”) under which the Banks agreed to extend certain financial accommodations to the Borrower.

B.           The Borrower, Agent and Banks have agreed to certain modifications under the Credit Agreement, in accordance with the terms and conditions of this Amendment.

C.           All terms used and not otherwise defined herein shall have the meanings assigned to them in the Credit Agreement.

AGREEMENT

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

1.           Amendments to Credit Agreement.

a.           As of the Effective Date, the following defined terms as used in the Loan Documents are amended and restated as follows:

“Revolving Line of Credit Loan Maturity Date” means March 29, 2013.

b.           As of the Effective Date, Section 5.02(c) of the Credit Agreement is amended, restated and replaced by the following:

(c)           Capital Expenditures.  Except for costs identified in the Project Sources and Uses Statement, make any investment in fixed assets in the aggregate amount of One Million and No/100 Dollars ($1,000,000.00) during any fiscal year during the term of this Agreement.  In addition to the forgoing, make additional capital expenditures in an aggregate amount not to exceed One Million Five Hundred Thousand and No/100 Dollars ($1,500,000.00) during its 2012 and 2013 fiscal years for efficiency improvements through process control software and hardware.

  

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Execution Copy

2.           Effect on Credit Agreement. Except as expressly amended by this Amendment, all of the terms of the Credit Agreement shall be unaffected by this Amendment and shall remain in full force and effect.  Nothing contained in this Amendment shall be deemed to constitute a waiver of any rights of the Banks or to affect, modify, or impair any of the rights of the Banks as provided in the Credit Agreement.

3.           Conditions Precedent to Effectiveness of this Amendment.  The obligations of the Banks hereunder are subject to the conditions precedent that Agent shall have received the following, in form and substance satisfactory to Agent:

a.           this Amendment duly executed by Borrower, Agent, and the Banks; and

b.           all other documents, instruments, or agreements required to be delivered to Agent under the Credit Agreement and not previously delivered to Agent.

              4.           Representations and Warranties of Borrower.  Borrower hereby agrees with, reaffirms, and acknowledges as follows:

a.           The execution, delivery and performance by Borrower of this Amendment is within Borrower’s power, has been duly authorized by all necessary action, and does not contravene:  (i) the articles of organization or operating agreement of Borrower; or (ii) any law or any contractual restriction binding on or affecting Borrower; and does not result in or require the creation of any lien, security interest or other charge or encumbrance upon or with respect to any of its properties;

b.           This Amendment is, and each other Loan Document to which Borrower is a party when delivered will be, legal, valid and binding obligations of Borrower enforceable against 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; and

c.           All other representations, warranties and covenants contained in the Credit Agreement and the other Loan Documents are true and correct and in full force and effect.

5.           Counterparts.  It is understood and agreed that this Amendment may be executed in several counterparts each of which shall, for all purposes, be deemed an original and all of which, taken together, shall constitute one and the same agreement even though all of the parties hereto may not have executed the same counterpart of this Amendment.  Electronic delivery of an executed counterpart of a signature page to this Amendment shall be effective as delivery of an original executed counterpart to this Amendment.

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

[SIGNATURE PAGES IMMEDIATELY FOLLOW.]

  

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Execution Copy

SIGNATURE PAGE TO

FOURTH AMENDMENT TO AMENDED AND RESTATED

CREDIT AGREEMENT

BY AND BETWEEN

SOUTHWEST IOWA RENEWABLE ENERGY, LLC,

AGSTAR FINANCIAL SERVICES, PCA (AS AGENT), AND

THE BANKS

 

Dated to be effective as of September 1, 2011

 

 

	SOUTHWEST IOWA RENEWABLE ENERGY, LLC, 

an Iowa limited liability company

	 	 	 
	 	 	 	 
	/s/ Brian Cahill	 	 	 
	By:  Brian Cahill	 	 	 
	Its:  CEO	 	 	 

 

 

 

 

 

 

 

  

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SIGNATURE PAGE TO

FOURTH AMENDMENT TO AMENDED AND RESTATED

CREDIT AGREEMENT

BY AND BETWEEN

SOUTHWEST IOWA RENEWABLE ENERGY, LLC,

AGSTAR FINANCIAL SERVICES, PCA (AS AGENT), AND

THE BANKS

 

Dated to be effective as of September 1, 2011

 

 

	AGENT:	 	 	 
	 	 	 	 
	AGSTAR FINANCIAL SERVICES, PCA, 

as Administrative Agent

	 	 	 
	 	 	 	 
	/s/ Ron Monson	 	 	 
	By:  Ron Monson 

Its:  Vice President

	 	 	 

 

 

 

	AGSTAR 

as a Bank

	 	 	 
	 	 	 	 
	AGSTAR FINANCIAL SERVICES, PCA,	 	 	 
	 	 	 	 
	/s/ Ron Monson	 	 	 
	By:  Ron Monson 

Its:  Vice President

	 	 	 

 

 

 

 

  

4

  

SIGNATURE PAGE TO

FOURTH AMENDMENT TO AMENDED AND RESTATED

CREDIT AGREEMENT

BY AND BETWEEN

SOUTHWEST IOWA RENEWABLE ENERGY, LLC,

AGSTAR FINANCIAL SERVICES, PCA (AS AGENT), AND

THE BANKS

 

Dated to be effective as of September 1, 2011

 

 

 

	METROPOLITAN LIFE INSURANCE COMPANY, 

as a Bank

	 	 	 
	 	 	 	 
	 	 	 	 
	 /s/ Daniel O'Neill	 	 	 
	By:  Daniel O'Neill	 	 	 
	Title:   Managing Director	 	 	 
	By:	 	 	 

 

	Address:      	10801 Mastin Blvd., Suite 930 

Overland Park, KS  66210

	 	 

 

 

 

 

 

 

 

 

 

  

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SIGNATURE PAGE TO

FOURTH AMENDMENT TO AMENDED AND RESTATED

CREDIT AGREEMENT

BY AND BETWEEN

SOUTHWEST IOWA RENEWABLE ENERGY, LLC,

AGSTAR FINANCIAL SERVICES, PCA (AS AGENT), AND

THE BANKS

 

Dated to be effective as of September 1, 2011

 

 

 

 

	
METLIFE BANK, N.A.,

as a Bank

	 	 	 
	 	 	 	 
	 	 	 	 
	/s/ Brian D. Schellpeper	 	 	 
	By:      Brian Schellpeper	 	 	 
	Title:   Assistant Vice President	 	 	 

 

	Address:       	
10801 Mastin Blvd., Suite 93

Overland Park, KS  66210

	 	 

 

 

 

 

  

6

  

SIGNATURE PAGE TO

FOURTH AMENDMENT TO AMENDED AND RESTATED

CREDIT AGREEMENT

BY AND BETWEEN

SOUTHWEST IOWA RENEWABLE ENERGY, LLC,

AGSTAR FINANCIAL SERVICES, PCA (AS AGENT), AND

THE BANKS

 

Dated to be effective as of September 1, 2011

 

 

	COÖPERATIEVE CENTRALE RAIFFEISEN- 

BOERENLEENBANK B.A., “RABOBANK

NEDERLAND”, New York Branch

as a Bank

	 	 	 
	 	 	 	 
	 	 	 	 
	/s/ Jeff Bliss	 	 	 
	By:  Jeff Bliss 

Its:  Executive Director

	 	 	 
	 	 	 	 
	 	 	 	 
	/s/ Brett Delfino	 	 	 
	By:      Andrew Sherman

Its:      Managing Director

	 	 	 

 

	Address:      	245 Park Avenue 

37th Floor

New York, NY  10167

	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

7

  

SIGNATURE PAGE TO

FOURTH AMENDMENT TO AMENDED AND RESTATED

CREDIT AGREEMENT

BY AND BETWEEN

SOUTHWEST IOWA RENEWABLE ENERGY, LLC,

AGSTAR FINANCIAL SERVICES, PCA (AS AGENT), AND

THE BANKS

 

Dated to be effective as of September 1, 2011

 

 

 

 

	AMARILLO NATIONAL BANK 

as a Bank

	 	 	 
	 	 	 	 
	 	 	 	 
	/s/ Craig L. Sanders	 	 	 
	By:  Craig L. Sanders         

Its:   Executive Vice President      

	 	 	 

 

	
Address:   

	
P.O. Box 1

Amarillo, TX  79105

	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

8

  

SIGNATURE PAGE TO

FOURTHAMENDMENT TO AMENDED AND RESTATED

CREDIT AGREEMENT

BY AND BETWEEN

SOUTHWEST IOWA RENEWABLE ENERGY, LLC,

AGSTAR FINANCIAL SERVICES, PCA (AS AGENT), AND

THE BANKS

 

Dated to be effective as of September 1, 2011

 

 

 

 

	FIRST NATIONAL BANK OF OMAHA, as a Bank	 	 	 
	 	 	 	 
	 	 	 	 
	/s/ Fallon Savage	 	 	 
	By:    Fallon Savage       

Its:     Vice President     

	 	 	 

 

	
Address:   

	

1620 Dodge Street

Omaha, NE  68197

	 	 

 

 

 

 

 

 

 

 

 

 

 

 

  

9

  

SIGNATURE PAGE TO

FOURTH AMENDMENT TO AMENDED AND RESTATED

CREDIT AGREEMENT

BY AND BETWEEN

SOUTHWEST IOWA RENEWABLE ENERGY, LLC,

AGSTAR FINANCIAL SERVICES, PCA (AS AGENT), AND

THE BANKS

 

Dated to be effective as of September 1, 2011

 

 

	BANK OF THE WEST, as a Bank	 	 	 
	 	 	 	 
	 	 	 	 
	/s/ Danny Odom	 	 	 
	By:      Danny Odom        

Its:      Vice President     

	 	 	 
	 	 	 	 

 

	Address: 	
Mail code NC-B07-1C-R

2527 Camino Ramon

San Ramon, CA  94583

	 	 
	 	 	 	 

 

 

 

 

 

 

 

 

 

  

10

  

SIGNATURE PAGE TO

FOURTH AMENDMENT TO AMENDED AND RESTATED

CREDIT AGREEMENT

BY AND BETWEEN

SOUTHWEST IOWA RENEWABLE ENERGY, LLC,

AGSTAR FINANCIAL SERVICES, PCA (AS AGENT), AND

THE BANKS

 

Dated to be effective as of September 1, 2011

 

 

 

	MONUMENTAL LIFE INSURANCE COMPANY, 

as a Bank

	 	 	 
	 	 	 	 
	 	 	 	 
	/s/ Robert C. Woodcock	 	 	 
	By:        Robert C. Woodcock   

Its:        Vice President   

	 	 	 

 

	Address:	
400 West Market Street 

5th Floor

Louisville, KY  40202

	 	 
	 	 	 	 

 

 

 

 

 

 

 

 

 

 

  

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SIGNATURE PAGE TO

FOURTH AMENDMENT TO AMENDED AND RESTATED

CREDIT AGREEMENT

BY AND BETWEEN

SOUTHWEST IOWA RENEWABLE ENERGY, LLC,

AGSTAR FINANCIAL SERVICES, PCA (AS AGENT), AND

THE BANKS

 

Dated to be effective as of September 1, 2011

 

 

	BMO HARRIS BANK N.A., a national banking association, 

successor-by-merger to M&I MARSHALL AND ILSLEY BANK,

as a Bank

	 	 	 
	 	 	 	 
	 	 	 	 
	/s/ Gary J. Sloan	 	 	 
	By:           Gary J. Sloan 

Its:           Senior Vice President

	 	 	 
	 	 	 	 
	 	 	 	 
	/s/ Skip Orlady	 	 	 
	By:           John Howard

Its:           Senior Vice President

	 	 	 
	 	 	 	 

 

	Address:    	
770 North Water Street 

Milwaukee, WI  53202

	 	 
	 	 	 	 

 

 

 

13ex101k32712.htm

Exhibit 10.1

 

	
MEMORANDUM OF UNDERSTANDING

The Board of Directors (“Board”) of First Savings Bank Northwest, Renton, Washington (“Bank”) agrees to take the actions outlined below to correct the less than satisfactory conditions detailed in the Report of Visitation dated October 31, 2011, prepared jointly by Federal Deposit Insurance Corporation (“FDIC”) and Washington State Department of Financial Institutions (“DFI”).

	
[1]

	
(a) During the life of this MEMORANDUM, the Bank shall retain management acceptable to the Regional Director of the FDIC San Francisco Regional Office (Regional Director) and the Director of Banks for the State of Washington (Director of Banks).  Such management shall include the following: (i) a chief executive officer with proven ability in managing a bank of comparable size and risk profile; (ii) a chief financial officer with proven ability in all aspects of financial management; and (iii) a senior lending officer with significant lending, collection, and loan supervision experience and experience in upgrading a low quality loan portfolio.  Each member of management shall be provided appropriate written authority from the Board to implement the provisions of this MEMORANDUM.

	
  

	
(b) During the life of this MEMORANDUM, the Bank shall notify the Regional Director and the Director of Banks in writing when it proposes to add any individual to the Bank’s Board or employ any individual as a senior executive officer.  The notification must be received at least 30 days before such addition or employment is intended to become effective and should include a description of the background and experience of the individual or individuals to be added or employed.

(c) The Bank may not add any individual to its board of directors or employ any individual as a senior executive officer if the Regional Director issues a notice of disapproval pursuant to Section 32 of the Act, 12 U.S.C. §1831i.

	
[2]

	
Within 60 days from the effective date of this MEMORANDUM, management shall establish a plan to improve the management of interest rate risk (IRR) and strengthen the model used to monitor IRR.  Improvements should include:  modeling of decay rate assumptions for non-maturity deposits; developing bank-specific prepayment rates; reassessing critical assumptions in the IRR model at least annually; and a requirement that the results of these assessments should be reviewed by the Board or ALCO.

	
[3]

	
During the life of this MEMORANDUM, the Bank shall maintain a Tier 1 Leverage Capital ratio of no less than 10 percent of the Bank’s adjusted Part 325 total assets.  In addition, during the life of this MEMORANDUM the Bank shall maintain its Total Risk-Based Capital ratio of no less than 12 percent.  Tier 1 Leverage Capital and Part 325 total assets utilized shall be calculated in accordance with prevailing instructions for the preparation of Reports of Condition and Income (Call Reports).

	
[4]

	
Within 30 days from the effective date of this MEMORANDUM, the Bank shall maintain an adequate Allowance for Loan and Lease Losses (“ALLL”).  Any deficiency in the ALLL shall be remedied in the calendar quarter it is discovered, prior to submitting the Call Reports, by a charge to current operating earnings.  The minutes of the Board meeting at which such review is undertaken shall indicate the results of the review.  Upon completion of the review, the bank shall increase and maintain its ALLL consistent with the allowance policy established.  Such policy 

 

 

  

  

  

 

 

	
[4]

	
and its implementation shall be satisfactory to the Regional Director and Director of Banks as determined at subsequent examinations or visitations.

	
[5]

	
(a) Within 60 days from the effective date of this MEMORANDUM, the Bank shall revise, adopt, and implement written lending and collection policies to provide effective guidance and control over the Bank’s lending and credit administration function.  Such policies and their implementation shall be in a form and manner acceptable to the Regional Director and the Director of Banks as determined at subsequent examinations or visitations.

(b) The initial revisions to loan policy and practices, required by this paragraph, at a minimum, shall include the following:

	
i.           

	
a provision requiring complete loan documentation, repayment terms and current credit information adequate to support the outstanding indebtedness of the borrower.  Such documentation shall include current financial information on a global basis, profit and loss statements or copies of tax returns and cash flow projections;

	
ii.          

	
a provision establishing limitations on the amount that can be loaned in relation to established collateral values;

	
iii.         

	
a provision prohibiting concentrations of credit in excess of 25 percent of the bank’s total capital to any borrower and that borrower's related interests; and

	
iv.          

	
a provision specifying when real estate appraisals must be conducted by an independent third party;

	
[6]

	
Within 60 days after the effective date of this MEMORANDUM, the Bank shall develop, adopt, and implement a written policy governing the relationships between the Bank and its affiliates and shall specifically address acceptable volumes and terms of the Bank’s purchase of affiliate/affiliate originated assets; common functional authority between the Bank and affiliates’ directors, officers or employees; and the degree and constraints of functional control originating from outside the Bank.  Such policy and its implementation shall be in a form and manner acceptable to the Regional Director and Director of Banks as determined at subsequent examinations or visitations.

	
[7]

	
The Bank shall not pay cash dividends without the prior written consent of the Regional Director and the Director of Banks.

	
[8]

	
Within 30 days after the end of the first quarter following the effective date of this MEMORANDUM, and within thirty (30) days after the end of each quarter thereafter, the Bank shall furnish written progress reports to the Regional Director and the Director of Banks detailing the form and manner of any actions taken to secure compliance with this MEMORANDUM and the results thereof.

The provisions of this MEMORANDUM shall be binding upon the Bank, and any institution-affiliated party as such term is defined in section 3(u) of the Act, 12 U.S.C. 1813(u), to include, its directors, officers, employees, agents, successors, assigns, and other persons participating in the conduct of the affairs of the Bank.

 

 

 

  

  

  

This MEMORANDUM shall become effective on the date below.

The provisions of this MEMORANDUM shall remain effective except to the extent that, and until such time as, any provisions of this MEMORANDUM shall have been modified, terminated, suspended, or set aside by the FDIC and Washington State DFI.

Dated this 23rd day of March, 2012.

 

 

	FEDERAL DEPOSIT INSURANCE CORPORATION 	BANK 
	 	 
	By:  /s/Paul P. Worthing                                                  	/s/Victor Karpiak                                  
	        Paul P. Worthing	Victor Karpiak 
	        Assistant Regional Director	 
	 	 
	 	/s/Joann E. Lee                                     
	WASHINGTON STATE DEPARTMENT OF  	Joann E. Lee 
	FINANCIAL INSTITUTIONS 	 
	 	 
	By:   /s/Richard M. Riccobono                                       	/s/Gary F. Faull                                    
	         Richard M. Riccobono	Gary F. Faull 
	 	 
	         Director of Banks	 
	 	/s/Gerald Edlund                                  
	 	Gerald Edlund 
	 	 
	 	 
	 	/s/Gary F. Kohlwes                             
	 	Gary F. Kohlwes 
	 	 
	 	 
	 	/s/Robert L. Anderson                       
	 	Robert L. Anderson 
	 	 
	 	 
	 	/s/M. Scott Gaspard                          
	 	M. Scott Gaspard 
	 	 
	 	 
	 	/s/Daniel L. Stevens                          
	 	Daniel L. Stevens

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