Document:

exv10w19

 

[KinderMorgan logo]

Natural Gas Pipeline Company of America

A Subsidiary of Kinder Morgan, Inc.

FIRM TRANSPORTATION

RATE DISCOUNT AGREEMENT

Agreement No. 133736

     This Firm Transportation Rate Discount Agreement (“Agreement”) is made and entered into
effective this 20th day of November, 2006, by and between Natural Gas Pipeline Company
of America (“Natural”) and E Energy Adams LLC (“Shipper”).

ARTICLE 1

DISCOUNT PARAMETERS

			
	1.1	 	Discount Term: From September 1, 2007 through August 31, 2017.

			
	1.2	 	Transportation Agreement: Rate Schedule FTS, Agreement No. 133719, dated November
20, 2006, with a Contract MDQ of Forty Four Hundred (4,400) Dth/day.

			
	1.3	 	Discounted Monthly Base Reservation Rate:

	 	 	 	 	 	 	 	 	 
	 	 	Peak Period	 	Off-Peak Period
	 
	 	 	 	 
	09/1/2007 — 08/31/2010

	 	$	3.0417	 	 	$	3.0417	 
	09/1/2010 — 08/31/2011

	 	$	3.1177	 	 	$	3.1177	 
	09/1/2011 — 08/31/2012

	 	$	3.1956	 	 	$	3.1956	 
	09/1/2012 — 08/31/2013

	 	$	3.2755	 	 	$	3.2755	 
	09/1/2013 — 08/31/2014

	 	$	3.3574	 	 	$	3.3574	 
	09/1/2014 — 08/31/2015

	 	$	3.4413	 	 	$	3.4413	 
	09/1/2015 — 08/31/2016

	 	$	3.5273	 	 	$	3.5273	 
	09/1/2016 — 08/31/2017

	 	$	3.6155	 	 	$	3.6155	 

			
	1.4	 	Discounted Firm Transportation Quantity: Forty Four Hundred (4,400) Dth/day.

			
	1.5	 	Discounted Primary Receipt Points:

	 	 	 	 	 	 
	 	 	 	 	 	DISCOUNTED POINT
	 	NAME	 	PIN	 	MDQ (Dth/d.)
	 
	 	 	 	 
	 

	Trailblazer Gage
	 	902900	 	4,400	 

			
	1.6	 	Discounted Secondary Receipt Points:
Amarillo Mainline Pooling Point (Pin Number 10566)

 

 

			
	1.7	 	Discounted Primary Delivery Points:

E ENERGY/NGPL ADAMS GAGE (Pin Number 43169)

			
	1.8	 	Discounted Secondary Delivery Points: None

ARTICLE 2

DISCOUNT TERMS AND CONDITIONS; OTHER CHARGES

2.1 General Discount Limitations. The Discounted Monthly Base Reservation Rate shall apply
only to: (i) service provided to Shipper by Natural under the Transportation Agreement from the
Discounted Receipt Points to the Discounted Delivery Points during the Discount Term; and (ii) a
maximum daily firm transportation quantity equal to the Discounted Firm Transportation Quantity set
forth in Section 1.4 above, for all quantities transported on a firm basis under the Transportation
Agreement and any associated capacity release replacement agreements. Shipper shall be charged all
applicable maximum rates, charges, and surcharges set forth in Natural’s FERC Gas Tariff, as may be
revised from time to time, for any aggregate quantities transported a firm basis for Shipper and
any associated capacity release replacement shippers which: (i) are in excess of the Discounted
Firm Transportation Quantity, or (ii) involve any receipt or delivery points which are not
Discounted Receipt or Delivery Points.

2.2 Discountable Third Party Surcharges. From time to time, certain reservation and/or
commodity surcharges may be approved by the FERC for inclusion in Natural’s FERC Gas Tariff which
Natural is: (i) required to collect from Shipper and remit to the FERC or to another third party;
and (ii) permitted to discount the amount of such surcharge from the applicable maximum rate set
forth in Natural’s FERC Gas Tariff (“Discountable Third Party Surcharges”). Natural shall discount
any particular Discountable Third Party Surcharge to the maximum extent permitted under the
provisions of Natural’s FERC Gas Tariff. Shipper shall only be responsible for payment to Natural
of any portion of such Discountable Third Party Surcharge which Natural is not permitted to
discount and for which Natural bills Shipper.

2.3 Applicable Maximum Rates, Charges and Surcharges. Unless otherwise expressly provided
in this Agreement or agreed to in writing by Natural, all applicable maximum rates, charges,
surcharges, and penalties of any nature set forth in Natural’s FERC Gas Tariff, as may be revised
from time to time, shall apply to service provided to Shipper under the Transportation Agreement,
including without limitation all applicable: (i) Fuel and Gas Lost and Unaccounted For charges;
(ii) authorized and unauthorized overrun charges; (iii) reservation surcharges; (iv) commodity
rates, charges and surcharges; (v) ACA surcharges; and (vi) gathering charges, offshore charges,
and lateral line charges.

ARTICLE 3

MISCELLANEOUS PROVISIONS

3.1 Applicable Maximum and Minimum Tariff Rates. Notwithstanding any other provision of
this Agreement, in no event shall the discounted rates billed by Natural be less than the
applicable minimum rate or more than the applicable maximum rate set forth in Natural’s FERC Gas
Tariff, as may be revised from time to time.

2

 

3.2 Refunds. In no event shall Natural be required to refund to Shipper any amounts
collected for service to which the discounted rates apply, unless the relevant discounted rate
billed to Shipper exceeds the corresponding applicable effective maximum rate set forth in
Natural’s FERC Gas Tariff, as approved by the FERC from time to time.

3.3 Notifications. Except as otherwise may be expressly provided herein, any notice or
communication contemplated or required by this Agreement shall be in writing unless oral
notification is expressly authorized herein, and shall be sent to the appropriate party at the
relevant address set forth in the Transportation Agreement, as may be revised from time to time.

3.4 Succession and Assignment. Any entity which shall succeed by purchase, merger or
consolidation to title to the properties, substantially as an entirety, of Natural or Shipper as
the case may be, shall be entitled to the rights and shall be subject to the obligations of its
predecessor in title under this Agreement. No other assignment of this Agreement nor any of the
individual rights or obligations hereunder by Shipper shall be effective as to Natural without the
prior express written consent of Natural.

3.5 No Third Party Beneficiaries. This Agreement shall not create any rights in any third
parties, and no provision of this Agreement shall be construed as creating any obligations for the
benefit of, or rights in favor of, any person or entity other than Natural or Shipper.

3.6 Conformance to Law. Performance hereunder shall be subject to all valid laws, orders,
rules and regulations of duly constituted governmental authorities having jurisdiction or control
of the matters related hereto, including without limitation the Federal Energy Regulatory
Commission.

3.7 Non-waiver of Rights. No delay or failure to exercise any right or remedy accruing to
either Natural or Shipper upon breach or default by the other party will impair any right or remedy
or be construed to be a waiver of any such breach or default, nor will a waiver of any single
breach be deemed a waiver of any other breach or default.

3.8 Effect of Tariff. This Agreement shall at all times be subject to all applicable
provisions of Natural’s FERC Gas Tariff.

3.9 GOVERNING LAW. THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT OF THIS AGREEMENT
SHALL BE GOVERNED BY THE LAWS OF THE STATE OF TEXAS, EXCLUDING ANY CONFLICT OF LAW RULE WHICH WOULD
REFER ANY MATTER TO THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF TEXAS.

3.10 Entire Agreement. This Agreement contains the entire agreement between Natural and
Shipper with respect to the subject matter hereof, and supersedes any and all prior understandings
and agreements, whether oral or written, concerning the subject matter hereof, and any and all such
prior understandings and agreements are hereby deemed to be void and of no effect. No amendments
to or modifications of this Agreement shall be effective unless agreed upon in a written instrument
executed by Natural and Shipper which expressly refers to this Agreement.

3

 

Natural and Shipper have caused their duly authorized representatives to execute this Agreement
effective as of the date first set forth above.

	 	 	 
	NATURAL GAS PIPELINE COMPANY OF AMERICA (“Natural”)

	 	E ENERGY ADAMS LLC
(“Shipper”)
	 
	 	 
	By: /s/ David J. Devine

	 	By: /s/ Sam Sacco
	 

	 	 
	 
	 	 
	Name: David J. Devine

	 	Name: Sam Sacco
	 

	 	 
	 
	 	 
	Title: President

	 	Title: CEO/GM
	 

	 	 

4

 

Contract No. 133719

NATURAL GAS PIPELINE COMPANY OF AMERICA (Natural)

TRANSPORTATION RATE SCHEDULE FTS AGREEMENT DATED November 20, 2006

UNDER SUBPART G OF PART 284 OF THE FERC’S REGULATIONS

	1.	 	SHIPPER is: E ENERGY ADAMS, LLC, a END USER
	 
	2.	 	(a)     MDQ totals: 4400 Dth per day.
	 
	 	 	(b)     Service option selected (check any or all):

o LN          o SW          o NB

	3.	 	TERM: September 1, 2007 through August 31, 2017.
	 
	4.	 	Service will be ON BEHALF OF: ý Shipper or o Other.
	 
	5.	 	The ULTIMATE END USERS are customers within any state in the continental U.S.; or (specify
state): ___.
	 
	6.	 	o     This Agreement supersedes and cancels a ___Agreement dated
___.
	 
	 	 	ý     Service and reservation charges commence the latter of:

	 	(a)	 	September 1, 2007, and
	 
	 	(b)	 	the date capacity to provide the service hereunder is available
on Natural’s System.

	 	 	o     Other.

	 	 	 	 	 
	7.

	 	SHIPPER’S ADDRESSES
	 	NATURAL’S ADDRESSES
	 	 	General Correspondence:

	 

	 	E ENERGY ADAMS, LLC
	 	NATURAL GAS PIPELINE COMPANY OF AMERICA
	 

	 	SAM SACCO
	 	ATTENTION: ACCOUNT SERVICES
	 

	 	P. O. BOX 49
	 	ONE ALLEN CENTER, SUITE 1000
	 

	 	510 MAIN STREET
	 	500 DALLAS STREET
	 

	 	ADAMS, NE 68301
	 	HOUSTON, TX 77002
	 
	 	 	 	 
	 	 	Statements/Invoices/Accounting Related Materials:

	 

	 	E ENERGY ADAMS, LLC
	 	NATURAL GAS PIPELINE COMPANY OF AMERICA
	 

	 	SAM SACCO
	 	ATTENTION: ACCOUNT SERVICES
	 

	 	P. O. BOX 49
	 	ONE ALLEN CENTER, SUITE 1000
	 

	 	510 MAIN STREET
	 	500 DALLAS STREET
	 

	 	ADAMS, NE 58301
	 	HOUSTON, TX 77002
	 
	 	 	 	 
	 

	 	 	 	Payments:

NATURAL GAS PIPELINE COMPANY OF AMERICA

DEPT 3020

P. O. BOX 201607

DALLAS, TX 75320-1607
	 
	 	 	 	 
	 

	 	 	 	For Wire Transfer:

NATURAL GAS PIPELINE COMPANY OF AMERICA

WELLS FARGO BANK, NA

ABA # 121 000 248

ACCOUNT #: 412-1049548

 

 

     8. The above stated Rate Schedule, as revised from time to time, controls this Agreement and is
incorporated herein. The attached Exhibits A, B and C are part of this Agreement. NATURAL AND
SHIPPER ACKNOWLEDGE THAT THIS AGREEMENT IS SUBJECT TO THE PROVISIONS OF NATURAL’S FERC GAS TARIFF
AND APPLICABLE FEDERAL LAW. TO THE EXTENT THAT STATE LAW IS APPLICABLE, NATURAL AND SHIPPER
EXPRESSLY AGREE THAT THE LAWS OF THE STATE OF TEXAS SHALL GOVERN THE VALIDITY, CONSTRUCTION,
INTERPRETATION AND EFFECT OF THIS CONTRACT, EXCLUDING, HOWEVER, ANY CONFLICT OF LAWS RULE WHICH
WOULD APPLY THE LAW OF ANOTHER STATE. This Agreement states the entire agreement between the
parties and no waiver, representation, or agreement shall affect this Agreement unless it is in
writing. Shipper shall provide the actual end user purchasers name(s) to Natural if Natural must
provide them to the FERC.

AGREED TO BY:

	 	 	 
	NATURAL GAS PIPELINE COMPANY OF AMERICA
(“Natural”)

	 	E ENERGY ADAMS LLC
(“Shipper”)
	 
	 	 
	By: /s/ David J. Devine

	 	By: /s/ Sam Sacco
	 

	 	 
	 
	 	 
	Name: David J. Devine

	 	Name: Sam Sacco
	 

	 	 
	 
	 	 
	Title: President

	 	Title: CEO/GM
	 

	 	 

Contract No. 133719

 

 

EXHIBIT A

DATED: November 20, 2006

EFFECTIVE DATE: September 1, 2007

	 	 	 
	COMPANY: 

CONTRACT:

	 	E ENERGY ADAMS, LLC

133719

RECEIPT POINT/S

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Location	 	County/Parish Area	 	State	 	PIN No.	 	Zone	 	MDQ (Dth)
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRIMARY RECEIPT POINT/S
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9/1/2007 — 8/31/2017
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1 TPC/NGPL GAGE

	 	GAGE
	 	NE
	 	 	902900	 	 	 	07	 	 	 	4400	 

SECONDARY RECEIPT POINT/S

     All second receipt points, and the related priorities and volumes, as provided under
the Tariff provisions governing this Agreement.

RECEIPT PRESSURE, ASSUMED ATMOSPHERIC PRESSURE

     Natural gas to be delivered to Natural at the Receipt Point/s shall be at a delivery pressure
sufficient to enter Natural’s pipeline facilities at the pressure maintained from time to time, but
Shipper shall not deliver gas at a pressure in excess of the Maximum Allowable Operating Pressure
(MAOP) stated for each Receipt Point. The measuring party shall use or cause to be used an assumed
atmospheric pressure corresponding to the elevation at such Receipt Point/s.

RATES

     Except as otherwise provided below or in any written agreement(s) between the
parties in effect during the term hereof, Shipper shall pay Natural the applicable maximum rate(s)
and all other lawful charges as specified in Natural’s applicable rate schedule. Shipper and
Natural may agree that Shipper shall pay a rate other than the applicable maximum rate so long as
such rate is between the applicable maximum and minimum rates specified for such service in the
Tariff. Natural and Shipper may agree that a specific discounted rate will apply only to certain
volumes under the agreement. The parties may agree that a specified discounted rate will apply
only to specified volumes (MDQ or commodity volumes) under the agreement; that a specified
discounted rate will apply only if specified volumes are achieved or only if the volumes do not
exceed a specified level; that a specified discounted rate will apply only during specified periods
of the year or for a specifically defined period; that a specified discounted rate will apply only
to specified points, zones, mainline segments, supply areas, transportation paths, markets or other
defined geographical area(s); that a specified discounted rate(s) will apply in a specified
relationship to the volumes actually transported (i.e., that the reservation charge will be
adjusted in a specified relationship to volumes actually transported); and/or that the discount
will apply only to reserves dedicated by Shipper to Natural’s system. Notwithstanding the
foregoing, no discount agreement may provide that an agreed discount as to a certain volume level
will be invalidated if the Shipper transports an incremental volume above that agreed level. In
addition, the discount agreement may include a provision that if one rate component which was at or
below the applicable maximum rate at the time the discount agreement was executed subsequently
exceeds the applicable maximum rate due to a change in Natural’s maximum rates so that such rate
component must be adjusted downward to equal the new applicable maximum rate, then other rate
components may be adjusted upward to achieve the agreed overall rate, so long as none of the
resulting rate components exceed the maximum rate applicable to that rate component. Such changes
to rate components shall be applied prospectively, commencing with the date a Commission order
accepts revised tariff sheets. However, nothing contained herein shall be construed to alter a
refund obligation under applicable law for any period during which rates which had been charged
under a discount agreement exceeded rates which ultimately are found to be just and reasonable. If
the parties agree upon a rate other than the applicable maximum rate, such written Agreement shall
specify that the parties mutually agree either: (1) that the agreed rate is a discount

 

 

rate; or (2) that the agreed rate Is a Negotiated Rate (or Negotiated Rate Formula), In the event
that the parties agree upon a Negotiated Rate or Negotiated Rate Formula, this Agreement shall be
subject to Section 49 of the General Terms and Conditions of Natural’s Tariff.

FUEL GAS AND GAS LOST AND UNACCOUNTED FOR PERCENTAGE (%)

     Shipper will be assessed the applicable percentage for Fuel Gas and Gas Lost and Unaccounted
For.

TRANSPORTATION OF LIQUIDS

     Transportation of liquids may occur at permitted points identified in Natural’s current
Catalog of Receipt and Delivery Points, but only if the parties execute a separate liquids
agreement.

 

 

EXHIBIT B

DATED: November 20, 2006

EFFECTIVE DATE: September 1, 2007

	 	 	 
	COMPANY: 

CONTRACT:

	 	E ENERGY ADAMS, LLC

133719

DELIVERY POINT/S

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Location	 	County/Parish Area	 	State	 	PIN No.	 	Zone	 	MDQ (Dth)
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PRIMARY RECEIPT POINT/S
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9/1/2007 — 8/31/2017
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	E ENERGY/NGPL ADAMS GAGE

	 	GAGE
	 	NE
	 	 	43169	 	 	 	07	 	 	 	4400	 

SECONDARY DELIVERY POINT/S

     All secondary delivery points, and the related priorities and volumes, as provided
under the Tariff provisions governing this Agreement.

DELIVERY PRESSURE, ASSUMED ATMOSPHERIC PRESSURE

     Natural gas to be delivered by Natural to Shipper, or for Shipper’s account, at the
Delivery Point(s) shall be at the pressures available in Natural’s pipeline facilities from time to
time; provided, however, that the delivery pressure shall not be less than  na . The
measuring party shall use or cause to be used an assumed atmospheric pressure corresponding to the
elevation at such Delivery Point(s).

 

EXHIBIT C

DATED: November 20, 2006

EFFECTIVE DATE: September 1, 2007

COMPANY: E ENERGY ADAMS, LLC

CONTRACT: 133719

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Segment	 	Upstream	 	Forward/Backward	 	Flow Through
	 	 	Number	 	Segment	 	Haul (Contractual)	 	Capacity
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9/1/2007 - 8/31/2017	 	 	 	 	 	 	 	 	 	 
	1.

	 	 	12	 	 	 	0	 	 	F
	 	 	0	 

 

 

EXHIBIT C

DATED: November 20, 2006

EFFECTIVE DATE: September 1, 2007

	 	 	 
	COMPANY: 

CONTRACT:

	 	E ENERGY ADAMS, LLC

133719

     Pursuant to Natural’s tariff, an MDQ exists for each primary transportation path segment and
direction under the Agreement. Such MDQ is the maximum daily quantity of gas which Natural is
obligated to transport on a firm basis along a primary transportation path segment.

     A primary transportation path segment is the path between a primary receipt, delivery, or node
point and the next primary receipt, delivery, or node point. A node point is the point of
interconnection between two or more of Natural’s pipeline facilities.

     A segment is a section of Natural’s pipeline system designated by a segment number whereby the
Shipper under the terms of their agreement based on the points within the segment identified on
Exhibit C have throughput capacity rights.

     The segment numbers listed on Exhibit C reflect this Agreement’s path corresponding to
Natural’s most recent Pipeline System Map which identifies segments and their corresponding
numbers. All information provided in this Exhibit C is subject to the actual terms and conditions
of Natural’s Tariff.exv10w1

 

Exhibit 10.1

Farm Credit Services of America

FIRST AMENDMENT TO CREDIT AGREEMENT

This First Amendment to Credit Agreement (“Amendment”) is made and entered into effective
the 27th day of October, 2006, by and between the undersigned (hereinafter referred to as
“Borrower”) and Farm Credit Services of America, FLCA (hereinafter referred to as “Lender”) to
amend and modify the Credit Agreement dated May 4, 2006 (hereinafter referred to as the “Credit
Agreement”). The Credit Agreement, underlying Notes and related Security Documents are modified
only to the extent necessary to give effect to the terms of this Amendment, and the remaining terms
of said documents, not otherwise inconsistent herewith, are ratified by the parties. Capitalized
terms used but not otherwise defined herein have the respective meanings given to them in the
Credit Agreement.

In consideration of the mutual agreements, provisions and covenants herein contained, and
furthermore to induce Lender to consider financial accommodations for the Borrower under the terms
and provisions of the Credit Agreement, the parties hereby agree as follows:

The Agreement is amended by adding as an additional Lender thereto, Farm Credit
Services of America, PCA.

Article 2 is amended with the addition of the following Credit Facility:

Section 2.2.1
Credit Facility C (138039-101). Lender agrees to advance sums to
Borrower up to the amount of $3,500,000.00 (Maximum Principal Balance) until November 1, 2007
(Final Advancement Date). Each Advance made will reduce the funds available for future advances by
the amount of the Advance. Repayments of principal will be available for subsequent Advances. The
proceeds of said Loan will be used by Borrower for financing grain, ethanol, inventory,
receivables, grain hedging activity and letters of credit (Purpose) and Borrower agrees not to
request or use such proceeds for any other purpose.

     (a) Interest. Borrower hereby promises to pay interest on the principal indebtedness
outstanding from time to time on each Advance from and including the date of such Advance and otherwise in accordance with
statements issued by Lender. Interest shall be payable on the following dates, each such date an “Interest
Payment Date”, provided that interest accruing at the Default Rate, if applicable, shall be payable on demand.

Said interest shall be payable on the 1st day of each month commencing on December 1, 2006 at the
following rate per annum.

Libor Rate Libor Rate interest shall accrue from the date of each Advance at a variable rate per
annum equivalent to the Libor Short Term Index Rate plus 3.00% (the
‘Variable Rate’). Interest rate
shall be adjusted higher or lower on November 15, 2006, and every 3 months thereafter with any
change in the Libor Rate and this higher or lower rate will thereafter apply to the outstanding
principal indebtedness and remain in effect until a different rate of interest is established. The
amount of any subsequent payments will be increased or decreased accordingly to reflect the
different rate of interest without in any manner changing the due date of the payments. There is
no limitation on the frequency or the amount of the change in the interest rate.

The Libor Short Term Index Rate is the three-month London InterBank Offered Rates in the London
market based on the Libor rate published on the last business day of the month as published in the
Wall Street Journal, rounded to the nearest 0.05%.

	 	(b)	 	Principal. Borrower hereby promises to pay principal, plus all accrued interest
and any unpaid fees, costs or expenses in full on November 1, 2007.

     The following Sections are amended to read as follows:

Section 2.4.3.1 Non-Use Fee . Borrower agrees to pay Lender an additional fee in the event
that the average outstanding principal balance on Credit Facility C is less than the Maximum
Principal Balance of said facility. This fee will be equal to .35% per annum of the difference
between the Maximum Principal Balance and the actual usage. The actual usage will be calculated as
the average outstanding principal balance for the 12 month period from the Closing Date to
Maturity Date. The fee shall be due and payable at Maturity Date.

Section 6.12.11 Grain Hedging. Borrower agrees to execute a Security Agreement and Assignment of
Hedging Account on a form provided or approved by Lender to be acknowledged by all brokers
involved in Borrower’s hedging program. Until Substantial Completion, when the amount of credit
available on Credit Facility C shall be governed by a Borrowing Base as provided herein, Borrower
agrees that the amount of credit available for Grain Hedging shall not

 

 

exceed $3,000,000. Within this credit limit, however, Borrower may enter into hedging contracts
with the Chicago Board of Trade totaling up to 4,000,000 bushels (800 contracts at 5,000 bushels
per contract)

     The following Section is added:

Section 6.13 Borrowing Base. Beginning 30 days after the month ending in which Substantial
Completion occurs, the Borrower agrees to maintain a minimum margin between the value and advance
rate of certain secured assets and the amount of certain liabilities (Borrowing Base). Said margin
will be computed according to a Borrowing Base Report acceptable to Lender, an example of which is
attached hereto as Exhibit ‘D’.

Borrower agrees to provide Lender with such Borrowing Base Report monthly (Reporting Period), or
more often at the discretion of Lender, during the term of the Loan(s). Said Borrowing Base Report
shall be dated the last day of the Reporting Period (Report Date) and reflect true and accurate
inventory of Borrowing Base Assets and Borrowing Base Liabilities current through the end of the
Reporting Period. Said Borrowing Base Report shall be completed by Borrower and provided to Lender
no later than the 20th day following the Report Date, by ordinary mail, fax, or e-mail
agribusinessfinance@fcsamerica.com and shall be in default if not provided within 30 days after
said Report Date.

THE TOTAL BORROWING BASE LIABILITIES SHALL NOT EXCEED THE BORROWING VALUE OF THE TOTAL
BORROWING BASE ASSETS.

Upon receipt of the Borrowing Base Report, Lender will determine the Borrower’s credit
availability based on the value of the inventory and assets owned by Borrower on each Report Date
and whether Borrower is in compliance with their Borrowing Base. Should the total Borrowing Base
Liabilities exceed the Borrowing value of Borrowing Base Assets, Borrower agrees to restore
compliance with the Borrowing Base margin within 30 days from the Report Date and that during said
restoration period Lender may advance credit to Borrower as Lender may deem adequate to protect its
collateral. It is agreed that if Borrower cannot, or will not, reduce the Total Borrowing Base
Liabilities to an amount equal to or less than the borrowing value of the Total Borrowing Base
Assets within said restoration period, Lender may deem said failure to be a material breach of this
Agreement and an Event of Default.

Borrower hereby represents and warrants to the Lender that, after giving effect to this Amendment,
(i) no Default or Event of Default exists under the Credit Agreement or any of the other Loan
Documents and (ii) the representations and warranties set forth in the Credit Agreement are true
and correct in all material respects as of the date hereof (except for those which expressly
relate to an earlier date).

Borrower
hereby ratifies the Credit Agreement and acknowledges and reaffirms (i) that it is bound
by all terms of the Credit Agreement applicable to it and (ii) that it is responsible for the
observance and full performance of its respective obligations.

Borrower hereby certifies that the person(s) executing this Amendment on behalf of Borrower is/are
duly authorized to execute such document in behalf of Borrower and that there have been no changes
in the name, ownership, control, organizational documents, or legal status of the Borrower since
the last application, loan, or loan servicing action; that all resolutions, powers and authorities
remain in full force and effect, and that the information provided by Borrower is and remains true
and correct.

This Amendment may be executed by the parties hereto in several counterparts, each of which shall
be deemed to be an original and all of which shall constitute one and the same agreement. Delivery
of executed counterparts of this Amendment by telecopy shall be effective as an original and shall
constitute a representation that an original shall be delivered.

THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS
OF THE STATE OF NEBRASKA.

This Amendment shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns.

IN WITNESS WHEREOF, the parties hereto have set their hand effective the day and year first above
written.

The Internal Revenue Service does not require your consent to any provision of this document other
than the following certification required to avoid backup withholding. Under penalties of perjury,
I/we certify that the Taxpayer Identification Number shown herein is correct and that I/we am/are
not subject to backup withholding

 

 

either because I/we are exempt, have not been notified that I/we are subject to backup
withholding due to failure of reporting interest or dividends, or the Internal Revenue Service has
notified me/us that I/we am/are no longer subject to backup withholding. I/we am/are a U.S. person
(including U.S. resident alien):

     Siouxland Ethanol, LLC                      223902184

BORROWER:

Siouxland Ethanol, LLC

	 	 	 	 	 
	By:

	 	/s/ Thomas Lynch
	 	 
	 

	 	 	 	 
	 

	 	Thomas Lynch, President	 	 
	 
	 	 	 	 
	By:

	 	/s/ Shennen Saltzman	 	 
	 

	 	 	 	 
	 

	 	Shennen Saltzman, Director	 	 

Address for Notice: P.O. Box 147

                     Jackson, NE 68743

LENDER:

Farm Credit Services of America, FLCA

Farm Credit Services of America, PCA

	 	 	 	 	 
	By:
	 	/s/ Shane Frahm	 	 
	 

	 	 

Shane Frahm, Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]