Document:

exhibit1013_032212.htm

Exhibit 10.13

 

EXECUTION VERSION

 

AMENDED AND RESTATED PROMISSORY NOTE

 

	$6,579,000.00	 	 	 December 31, 2011

 

 

FOR VALUE RECEIVED, NEDAK ETHANOL, LLC (the “Borrower”), a Nebraska limited liability company, with an address at 87590 Hillcrest Road – P.O. Box 391, Atkinson, Nebraska 68713, promises to pay to the order of ARBOR BANK, a Nebraska banking corporation (“Lead Lender”), and having an office at 911 Central  Avenue, Nebraska City, Nebraska 68410-0429, the principal sum of [SIX MILLION FIVE HUNDRED SEVENTY-NINE THOUSAND and 00/100 Dollars  ($6,579,000.00)], under this Note from the date of its disbursement until such principal sum shall be fully paid.  Interest and principal shall be payable in installments as set forth in Section 3 below.  The total principal sum, or the amount thereof outstanding, together with any accrued but unpaid interest, shall be due and payable in full on December 1, 2021 (the “Maturity Date”).

 

Section 1.                      Loan Agreement.  This Note is the Borrower’s Note referred to in, and issued pursuant to the terms, provisions and conditions of that certain Loan Agreement dated as of June 19, 2007, between the Borrower and Lead Lender (as amended by that certain First Amendment to Loan Agreement of even date herewith, and as may be further amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”), and evidences the loan (the “Loan”) made pursuant thereto.  This Note is a restated version of the preexisting Borrower’s Note previously executed by Borrower in favor of Bank, and is given in exchange thereof and shall not constitute a cancellation of the principal amount (or unpaid accrued interest) of such note evidenced thereby. Capitalized terms used herein which are not otherwise specifically defined shall have the same meaning herein as in the Loan Agreement.

 

Section 2.                      Interest Rate.  All principal amounts outstanding under this Note shall bear interest at the then-applicable Interest Rate (as defined in Section 3(b) of this Note).

 

Section 3.                      Payments of Interest and Principal.

 

(a)           Payment and Calculation of Interest.  Subject to the provision of Section 4(b) of this Note dealing with payments falling due on dates that are not “Business Days,” payments under this Note shall be made as follows:

 

(1)           Commencing on January 1, 2012, accrued interest on the outstanding Unsupported Principal amount of this Note shall be due and payable on the first day of each month during the term of this Note until the Maturity Date;

 

  

  

  

(2)           Commencing on July 1, 2012 and on November 1, 2012, and on the first day of each July and November thereafter during the term of this Note until the Maturity Date, principal and interest payments in an amount equal to 100% of the Tax Increment Revenues payable on account of taxes paid for the applicable period shall be due and payable with any amounts so paid applied first to outstanding interest; provided, however, Borrower’s failure to pay such taxes shall not relieve Borrower of its payment obligation hereunder and; provided, further, in no event shall principal and interest payments computed pursuant to this Section 3(a)(2) be based on a tax assessed value of the Redevelopment Area of less than $30,995,395;

 

(3)           On September 30, 2012, and on the last day of the first, second and third calendar quarters thereafter, principal payments in an amount equal to 25% of the Excess Free Cash Flow shall be due and payable and, provided no Event of Default has occurred, shall be applied to the Unsupported Principal,; and

 

(4)           On the Maturity Date, the entire principal amount of this Note, all accrued interest thereon, and any and all other sums payable by Borrower to Lead Lender shall be due and payable in full.

 

(b)         Interest Rate.  The interest rate of this Note is subject to change from time to time based on changes in the LIBOR Rate (as hereinafter defined), adjusted and determined, without notice to Borrower, as of the date of this Note and on the first (1st) day of each calendar month hereafter (“Interest Rate Change Date”).  The “LIBOR Rate” shall mean the London Interbank Offered Rate of Interest for an interest period of one (1) month, on the day that is two Business Days preceding each Interest Rate Change Date as published in the Wall Street Journal or similar publication (the “Index”).  The interest rate to be applied to the unpaid principal balance under this Note prior to the Maturity Date or the occurrence of an Event of Default will be at a rate of 5.50% percentage points plus the Index; provided, however in no event shall the interest rate be less than 6.00% (the “Interest Rate”).  The Index is not necessarily the lowest rate charged by Lender on its loans.  If the Index becomes unavailable during the term of the Loan, Lender may designate a substitute index after notifying Borrower.  Lender will tell Borrower the current Index rate upon Borrower’s request.  The interest rate change will not occur more often than each month on the first (1st) day of each month. Borrower understand that Lender may make loans based on other rates as well.  Interest hereunder shall be computed on the basis of actual number of days elapsed over the period of a 360-day year.  Notwithstanding anything to the contrary in this Note or the Loan Agreement, Lead Lender agrees that so long as no Event of Default has occurred, the Interest Rate applicable to this Note shall be the same interest rate applicable to the indebtedness outstanding under the Senior Credit Facility until the earlier of the maturity date under the Senior Credit Facility as of the date hereof or the payment in full of the indebtedness outstanding thereunder; provided, however, in no event shall the Interest Rate applicable to this Note be less than 6.00%.

 

(c)           Excess Revenues.  All payments paid by City of Atkinson, Nebraska under the Series A Note and all other payments or distributions of Pledged Revenues shall be paid to the Lead Lender.  Any payment received under the Series A Note in excess of the

 

  

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scheduled payment under this Note shall be used to prepay principal hereunder, without any prepayment penalty to Borrower, in accordance with Section 7(d) of the Loan Agreement.

 

(d)         Prepayment.  This Note may be prepaid, in whole part, without penalty to Borrower, upon five (5) days’ written notice to the holder of this Note, in accordance with Section 7 of the Loan Agreement.  All prepayments shall include accrued interest through the date of payments.

 

(e)         Maturity Date.  On the Maturity Date, all accrued interest, principal and other charges due with respect to the Loan shall be due and payable in full and the principal balance and such other charges, but not unpaid interest, shall continue to bear interest at the Default Rate until so paid.

 

(f)           Date of Credit.  Payments shall be credited on the Business Day on which immediately available funds are received prior to one o’clock P.M. Central Standard Time; payments received after one o’clock P.M. Central Standard Time shall be credited to the Loan on the next Business Day.

 

(g)           Billings.  Lead Lender may submit billings reflecting payments due; however, any changes in the interest rate which occur between the date of billing and the due date may be reflected in the billing for a subsequent payment period.  Neither the failure of Lead Lender to submit a billing nor any error in any such billing shall excuse the Borrower from the obligation to make full payment of all payment obligations of the Borrower when due.

 

(h)           Default Rate.  Borrower shall pay upon billing therefor, an interest rate (“Default Rate”) which is 4% per annum above the Interest Rate:  (i) following Borrower’s failure to make a required payment, for that period between the due date and the date of payment, (ii) following any Event of Default, unless and until the Event of Default is expressly and specifically waived in writing by Lead Lender or (iii) after the Maturity Date.

 

(i)           Late Charges.  The Borrower shall pay, upon billing therefor, a “Late Charge” equal to five percent (5%) of the amount of any payment of principal (other than principal due on the Maturity  Date of the Loan), interest, or both, which is not paid in full within ten (10) days of the due date thereof.  Late charges (a) are payable in addition to, and not in limitation of, the Default Rate, (b) are intended to compensate the Lead Lender for administrative and processing costs incident to late payments, (c) are not interest and (d) shall not be subject to refund or rebate or credited against any other amount due.

 

Section 4.                      Definitions.

 

(a)           “Banking Day” means a day on which banks are not required or authorized by law to close in Nebraska.

 

(b)           “Business Day” means any Banking Day.  If any day on which a payment is due is not a Business Day, then the payment shall be due on the next day following which is a Business Day.

 

(c)           “Dollars” or “$” means lawful money of the United States.

 

  

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(d)           “Excess Free Cash Flow” means Borrower’s aggregate cash balances in excess of $3,600,000 as of the last day of each quarter.

 

(e)           “Series A Note” means the Tax Increment Revenue Note, Taxable Series 2007A (NEDAK Ethanol, LLC Plant Project), issued by the City of Atkinson, Nebraska and dated the date of issuance and delivery thereof, in the original principal amount of not less than Six Million Eight Hundred Sixty-Four Thousand Dollars ($6,864,000.00).

 

Section 5.                      Acceleration Due to an Event of Default.   At the option of the holder, this Note and the indebtedness evidenced hereby shall become immediately due and payable without further notice or demand, and notwithstanding any prior waiver of any breach or default, or other indulgence, upon the occurrence at any time and during the continuance of any one or more of the following events, each of which shall be an “Event of Default” hereunder and under the Loan Agreement and each other Loan Document:  (i) default continuing uncured beyond the applicable notice and grace period, if any, set forth herein or in the Loan Agreement, in making any payment of interest, principal, other charges or payments due hereunder; (ii) an Event of Default as defined in or as set forth in the Loan Agreement or any other Loan Document, each as the same may from time to time hereafter be amended; or (iii) an event which pursuant to any express provision of the Loan Agreement, or of any other Loan Document, gives Lead Lender the right to accelerate the Loan.

 

Section 6.                      Certain Waivers, Consents and Agreements.  Each and every party liable hereon or for the indebtedness evidenced hereby whether as maker, (i) agrees to any substitution, exchange, release, surrender or other delivery of any security or collateral now or hereafter held hereunder or in connection with the Loan Agreement, or any of the other Loan Documents, and to the addition or release of any other party or person primarily or secondarily liable; (ii) agrees that if any security or collateral given to secure this Note or the indebtedness evidenced hereby or to secure any of the obligations set forth or referred to in the Loan Agreement, or any of the other Loan Documents, shall be found to be unenforceable in full or to any extent, or if Lead Lender or any other party shall fail to duly perfect or protect such collateral, the same shall not relieve or release any party liable hereon or thereon nor vitiate any other security or collateral given for any obligations evidenced hereby or thereby; (iii) agrees to pay all reasonable costs and expenses incurred by Lead Lender or any other holder of this Note in connection with the indebtedness evidenced hereby, including, without limitation, all reasonable attorneys’ fees and costs for (a) the administration and implementation of the Loan, (b) the syndication and/or participation of the Loan, (c) the collection of the indebtedness evidenced hereby and (d) for the enforcement of rights and hereunder or under the other Loan Documents, whether or not suit is instituted; and (iv) consents to all of the terms and conditions contained in this Note, the Loan Agreement, and all other instruments now or hereafter executed evidencing or governing all or any portion of the security or collateral for this Note and for such Loan Agreement, or any one or more of the other Loan Document.

 

Section 7.                      Delay Not A Bar.  No delay or omission on the part of the holder of this Note in exercising any right hereunder or any right under any instrument or agreement now or hereafter executed in connection herewith, or any agreement or instrument which is given or may be given to secure the indebtedness evidenced hereby or by the Loan Agreement, or any other agreement now or hereafter executed in connection herewith or therewith shall operate as a

 

  

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waiver of any such right or of any other right of such holder, except as expressly set forth therein, nor shall any delay, omission or waiver on any one occasion be deemed to be a bar to or waiver of the same or of any other right on any future occasion.

 

Section 8.                      Partial Invalidity.  The invalidity or unenforceability of any provision hereof, of the Loan Agreement, of the other Loan Documents, or of any other instrument agreement or document now or hereafter executed in connection with the Loan made pursuant hereto and thereto shall not impair or vitiate any other provision of any of such instruments, agreements and documents, all of which provisions shall be enforceable to the fullest extent now or hereafter permitted by law.

 

Section 9.                      Use of  Proceeds.  All proceeds of the Loan shall be used solely  for the purposes more particularly provided for and limited by the Loan Agreement.

 

Section 10.                      Notices.  Any notices given with respect to this Note shall be given in the manner provided for in the Loan Agreement.

 

Section 11.                    Governing Law.  It is understood and agreed that all of the Loan Documents were negotiated, executed and delivered in the State of Nebraska, which State the parties agree has a substantial relationship to the parties and to the underlying transactions embodied by the Loan Documents.  This Note and each of the other Loan Documents shall in all respects be governed, construed, applied and enforced in accordance with the internal laws of the State of Nebraska without regard to principles of conflicts of law.

 

Section 12.                      Waiver of Jury Trial.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY  (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS NOTE BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

Section 13.                      No Oral Change.  This Note and the other Loan Documents may only be amended, terminated, extended or otherwise modified by a writing signed by the party against which enforcement is sought.  In no event shall any oral agreements, promises, actions, inactions, knowledge, course of conduct, course of dealing, or the like be effective to amend, terminate, extend or otherwise modify this Note or any of the other Loan Documents.

 

Section 14.                      Rights of the Holder.  This Note and the rights and remedies provided for herein may be enforced by Lead Lender or any subsequent holder hereof.  Wherever the context permits each reference to the term “holder” herein shall mean and refer to Lead Lender, or the then subsequent holder of this Note.

 

  

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Section 15.                      Right to Pledge to Federal Reserve.  Lead Lender may at any time pledge or assign all or any portion of its rights under the Loan Documents including any portion of this Note to any of the twelve (12) Federal Reserve Banks organized under Section 4 of the Federal Reserve Act, 12 U.S.C. Section 341.  No such pledge or assignment or enforcement thereof shall release Lead Lender from its obligations under any of the Loan Documents.

 

Section 16.                      General Rights of Assignment and Participation.  In accordance with and subject to the terms and conditions of the Loan Agreement, Lead Lender shall have the unrestricted right at any time or from time to time, and without Borrower’s or any other person’s consent, to assign all or any portion of its rights and obligations hereunder and to grant participating interests in the obligations of Lead Lender.

 

Section 17.                      Replacement Note.  Upon receipt of an affidavit of an officer of Lead Lender as to the loss, theft, destruction or mutilation of the Note or any other security document which is not of public record, and in the case of any such loss, theft, destruction or mutilation, upon cancellation of the Note or other security document, the Borrower will issue, in lieu thereof, a replacement note or other security document in the same principal amount thereof and otherwise of like tenor

 

[Signatures appear on following page]

 

  

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EXECUTION VERSION

IN WITNESS WHEREOF, the Borrower has caused this Note to be duly executed as of the date and year set forth above as a sealed instrument at Atkinson, Nebraska.

 

 

	WITNESS:   	 	BORROWER:	 
	 	 	 	 
	James J. Brennan	 	 	 
	 	 	
NEDAK ETHANOL, LLC

	 
	 	 	a Nebraska limited liability company	 
	 	 	 	 

 

	 	By:	/s/ Jerome Fagerland	 
	 	 	Name: Jerome Fagerland	 
	 	 	Title: President and General Manager	 
	 	 	Hereunto duly authorizedexhibit1017_032212.htm

Exhibit 10.17

 

	 	 	 	
 

EXECUTION COPY

 

 

INTERCREDITOR AGREEMENT

 

 

THIS INTERCREDITOR AGREEMENT, dated as of December 31, 2011 (the “Agreement”), is made and executed by and between ARBOR BANK, a Nebraska banking corporation (together with its successors and assigns, “TIF Lender”), and AGCOUNTRY FARM CREDIT SERVICES, FLCA (formerly Farm Credit Services of Grand Forks, FLCA), a federal land credit association organized under the Farm Credit Act of 1971, as amended (together with its successors and assigns, “Senior Lender”).

 

RECITALS

 

A.           NEDAK Ethanol, LLC, a Nebraska limited liability company (“Borrower”), is now or hereafter may be indebted to the Senior Lender on account of loans or other extensions of credit or financial accommodations obtained from the Senior Lender, including, without limitation, the indebtedness evidenced by that certain Amended and Restated Term Loan Note (the “Senior Note”), by that certain Loan Agreement (as hereinafter defined) and the other loan documents related thereto.

 

B.           The Borrower has granted the Senior Lender a continuing Lien (as defined below) in all of the Borrower’s now owned or hereafter acquired right, title and interest in and to any and all of the Borrower’s real and personal property assets in order to secure the payment and performance of the Senior Lender Indebtedness (as defined below) arising in favor of the Senior Lender under the Loan Agreement or otherwise.

 

C.           The TIF Lender has made or may make loans or grant other financial accommodations to the Borrower, including a loan that has been made prior to the date hereof and evidenced by that certain Amended and Restated Promissory Note dated as of December 30, 2011 (the “TIF Note”).

 

 

D.           As a condition to making or extending any further financial accommodations to the Borrower, the Senior Lender has required that the TIF Lender to deliver this Agreement.

 

NOW, THEREFORE, in consideration of the loans and other financial accommodations that have been made and may hereafter be made by the Senior Lender for the benefit of the Borrower under the Loan Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the TIF Lender hereby agrees as follows:

 

AGREEMENT

1.           Definitions.  As used herein, the following terms have the meanings set forth below:

“Agreement” shall have the meaning ascribed to the term in the Preamble.

  

  

  

“Borrower Default” means a Default or Event of Default as defined in any agreement or instrument evidencing, governing, securing or issued in connection with Senior Lender Indebtedness (as hereinafter defined), including, but not limited to the Loan Agreement, or any default under or breach of any such agreement or instrument executed in connection with the Loan Agreement or the Senior Lender Indebtedness.

 

“Collateral” means all of the Borrower’s tangible and intangible property, real and personal, whether now owned or hereafter arising of every kind and description, including that property securing the repayment of the Senior Lender Indebtedness and all proceeds thereof.  Without limiting the generality of the foregoing, the term “Collateral” includes all cash and sums on deposit with or held in an escrow, deposit or impound account by a bank or other financial institution; provided, however, that for purposes of this Agreement the term “Collateral” shall not include any of the collateral described in that certain UCC-1 Financing Statement filed of record by the TIF Lender with the Office of the Nebraska Secretary of State on June 19 2007 in connection with the TIF Lender Loan Agreement (the “TIF Lender Collateral”) or the Tax Escrow.

 

“Senior Lender Indebtedness” means each and every debt, liability and obligation of every type and description which the Borrower may now or at any time hereafter owe to the Senior Lender, whether such debt, liability or obligation now exists or is hereafter created or incurred, and whether it is or may be direct or indirect, due or to become due, absolute or contingent, primary or secondary, liquidated or unliquidated, or joint, several or joint and several, all interest thereon, and all fees, costs and other charges related thereto (including all interest, fees, costs and other charges accruing after the commencement of any case, proceeding or other action relating to the bankruptcy insolvency or reorganization of the Borrower, whether or not allowed in such proceeding or other action), all renewals, extensions and modifications thereof and any notes issued in whole or partial substitution therefor.

 

“Lien” means any security interest, mortgage, deed of trust, pledge, lien, charge, encumbrance, assignment, title retention agreement or analogous instrument or device, including the interest of each lessor under any capitalized lease and the interest of any bondsman under any payment or performance bond, in, of or on any assets or properties of a Person, whether now owned or hereafter acquired and whether arising by agreement or operation of law.

 

“Loan Agreement” means the Amended and Restated Master Credit Agreement dated as of the date hereof, by and between the Borrower and the Senior Lender as the same may hereafter be amended, supplemented, restructured or restated from time to time.

“Person” shall mean any natural person, partnership, limited liability company, corporation, trust, joint venture, joint stock company, association, 

  

  

  

 

unincorporated organization, government or agency or political subdivision thereof, or other entity, whether acting in an individual, fiduciary or other capacity.

“Senior Lender Default Notice” shall have meaning ascribed to the term in Section 11.

“Senior Lender Enforcement Action” shall have the meaning ascribed to the term in Section 4 of this Agreement.

“Senior Note” has the meaning ascribed to the term in the Recitals together with all renewals, restatements, extensions and modifications thereof and notes or credit issued in substitution therefor.

 

“Tax Escrow” means the funds from time to time deposited in the Tax Escrow Account established at a financial institution and subject to an escrow agreement both mutually agreed upon by the Borrower, Senior Lender and the TIF Lender solely and exclusively for the purposes of paying real estate taxes for the then current year.

 

“TIF Lender Loan Agreement” means that certain Loan Agreement dated as of June 19, 2007, by and between the Borrower and the TIF Lender, as the same may hereafter be amended, supplemented or restated from time to time (including, without limitation, by that certain First Amendment to Loan Agreement dated as of even date hereof).

 

“TIF Indebtedness” means the indebtedness evidenced by the TIF Note, the TIF Loan Agreement and each and every debt, liability and obligation of every type and description which the Borrower may now or at any time hereafter owe to the TIF Lender, whether such debt, liability or obligation now exists or is hereafter created or incurred, and whether it is or may be direct or indirect, due or to become due, absolute or contingent, primary or secondary, liquidated or unliquidated, or joint, several or joint and several all interest thereon, and all fees, costs and other charges related thereto (including all interest, fees, costs and other charges accruing after the commencement of any case, proceeding or other action relating to the bankruptcy insolvency or reorganization of the Borrower, whether or not allowed in such proceeding or other action), all renewals, extensions and modifications thereof and any notes issued in whole or partial substitution therefor.

 

“TIF Note” has the meaning ascribed to the term in the Recitals and together with all renewals, restatements, extensions and modifications thereof and any notes or credit issued in substitution therefor.

 

“TIF Payment Default” shall have the meaning ascribed to the term in Section 4 of this Agreement.

  

  

  

2.           No Liens.  Until all of the Senior Lender Indebtedness has been indefeasibly paid in full and the Senior Lender has no commitment to make any further loans to the Borrower, the TIF Lender shall not, without the Senior Lender’s prior written consent, demand, receive, accept, obtain or maintain any Lien or other interest in the Collateral in respect of the TIF Lender Indebtedness.

 

3.           Priority and Subordination of Liens in Collateral.  Notwithstanding the order, time of attachment, or the order, time or manner of perfection, the order or time of filing or recordation of any document or instrument, the TIF Lender acknowledges and agrees that the Senior Lender holds and shall continue to hold a first priority Lien in the Collateral, and any Lien in the Collateral that may now or hereafter be claimed therein by the TIF Lender shall be and remain fully subordinate for all purposes to the Lien of the Senior Lender therein for all purposes whatsoever.

 

4.           General Restriction on Enforcement Actions on TIF Indebtedness.  The TIF Lender covenants and agrees that for a period of 730 days from the date of this Agreement, it will not (a) commence any action or proceeding against the Borrower to recover all or any part of the TIF Indebtedness, (b) exercise any remedies against the Borrower under or in connection with the TIF Note, the TIF Lender Loan Agreement or otherwise, or (c) exercise or enforce any right or remedy that is or may be available to the TIF Lender with respect to any Collateral unless and until all of the Senior Lender Indebtedness has been indefeasibly paid in full and the Senior Lender has no commitment to make any further loans to Borrower; provided, however, that only if, and only so long as, (x) the Senior Lender has accelerated the Senior Lender Indebtedness and is pursuing foreclosure of its Liens with respect to the Collateral (“Senior Lender Enforcement Action”), or (y) the Borrower fails to make the monthly payments due to the Tax Escrow or the monthly interest due for the Unsupported Principal in accordance with the TIF Lender Loan Agreement and the TIF Note, respectively, or the real estate taxes for the Redevelopment Area shall not be paid when due and payable (each, a “TIF Payment Default”), the TIF Lender shall be entitled to take such actions and exercise such rights and remedies from and after 165 days from the date the Senior Lender commences a Senior Lender Enforcement Action or a TIF Payment Default has occurred and is continuing. Notwithstanding anything to the contrary contained herein, TIF Lender shall be entitled at any time upon the commencement of any insolvency proceeding to which the Borrower is a party to accelerate payment of the TIF Indebtedness and file a proof of claim and otherwise participate in such proceeding.

 

5.           No Contest.  The TIF Lender hereby agrees that it will not at any time, directly or indirectly, contest the validity, perfection, priority or enforceability of the Senior Lender Indebtedness, the Loan Agreement, the Senior Note or the Liens of the Senior Lender, nor will it encourage any Person to do so.  The Senior Lender hereby agrees that it will not at any time, directly or indirectly, contest the validity, perfection, priority or enforceability of the TIF Indebtedness, the TIF Lender Loan Agreement, the TIF Note or the Liens of the TIF Lender in the TIF Lender Collateral, nor will it encourage any Person to do so.

 

  

  

  

6.           No Interference.  The TIF Lender agrees that it will not interfere with the exercise by the Senior Lender of its right to collect and dispose of the Collateral, whether by foreclosure or otherwise.

 

8.           Action Concerning Collateral.

 

TIF Lender agrees to the following in connection with the TIF Indebtedness:

 

(a)           Notwithstanding any Lien now held or hereafter acquired by the TIF Lender, the Senior Lender may take possession of, sell, dispose of, and otherwise deal with all or any part of the Collateral, and may enforce any right or remedy available to it with respect to the Borrower or the Collateral, all without notice to or consent of the TIF Lender except as specifically required by applicable law.

 

(b)           The Senior Lender shall have no duty to preserve, protect, care for, insure, take possession of, collect, dispose of, or otherwise realize upon any of the Collateral, and in no event shall the Senior Lender be deemed the TIF Lender’s agent with respect to the Collateral.  All proceeds received by the Lender with respect to any Collateral may be applied, first, to pay or reimburse the Lender for all costs and expenses (including reasonable attorneys’ fees) incurred by the Senior Lender in connection with the collection of such proceeds, and, second, to any Senior Lender Indebtedness secured by the Senior Lender’s Lien in that Collateral, in any order that it may choose.

 

8.           Bankruptcy and Insolvency Proceedings. The TIF Lender agrees that it shall not commence or institute or join with any creditor (unless the Senior Lender shall so join) in bringing any proceeding against the Borrower under any bankruptcy, reorganization, assignment for the benefit of creditors, readjustment of debt, arrangement of debt receivership, liquidation or insolvency law or statute of the federal or any state government.  If the Senior Lender desires to permit the use of cash collateral or to provide post-petition or other financing to the Borrower in the event of any receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization or arrangement with creditors, whether or not pursuant to bankruptcy law, the sale of all or substantially all of the assets of the Borrower, dissolution, liquidation or any other marshalling of the assets or liabilities of the Borrower, the TIF Lender agrees that it shall not object to the same or assert that its interests are not being adequately protected.

 

9.           Continuing Effect.  This Agreement shall constitute a continuing agreement, and the Senior Lender may, without notice to or consent by the TIF Lender, modify any term of the Senior Lender Indebtedness at any time in its discretion. Without limiting the generality of the foregoing, the Senior Lender may, at any time and from time to time, without the consent of or notice to the TIF Lender and without incurring responsibility to the TIF Lender or impairing or releasing any of the Senior Lender’s rights or any of the TIF Lender’s obligations hereunder:

 

(a)           change the interest rate or change the amount of payment or extend the time for payment or renew or otherwise alter the terms of any Senior Lender Indebtedness or any instrument evidencing the same in any manner.

 

  

  

  

(b)           sell, exchange, release or otherwise deal with any property at any time securing payment of the Senior Lender Indebtedness or any part thereof;

 

(c)           release anyone liable in any manner for the payment or collection of the Senior Lender Indebtedness or any part thereof;

 

(d)           exercise or refrain from exercising any right against the Borrower or any other person (including the TIF Lender); and

 

(e)           apply any sums received by the Lender, by whomsoever paid and however realized, to the Senior Lender Indebtedness in such manner as the Senior Lender shall deem appropriate.

 

The TIF Lender hereby waives any and all right to require the marshalling of assets in connection with the exercise of any of the Senior Lender’s remedies permitted by applicable law or agreement.

 

10.           No Commitment.  None of the provisions of this Agreement shall be deemed or construed to constitute or imply any commitment or obligation on the part of the Senior Lender to make any future loans or other extensions of credit or financial accommodations to the Borrower.

 

11.           Notice.  If the Senior Lender shall deliver to the Borrower any notice that an Event of Default (under and as defined or described in the Loan Agreement or any document or instrument executed in connection therewith) has occurred (a “Senior Lender Default Notice”), the Senior Lender shall concurrently deliver a copy thereof to the TIF Lender; provided, however, that the Senior Lender’s failure to deliver a copy of the Senior Lender Default Notice to the TIF Lender shall not in any way affect the validity of such notice.

 

Any notice, request, demand, consent, confirmation or other communication hereunder shall be in writing and delivered (i) in person, by messenger or overnight courier, (ii) by registered or certified mail, return receipt requested and postage prepaid, or (iii) by facsimile, to the applicable party at its address or facsimile number set forth below, or at such other address or facsimile number as such party hereafter may designate as its address for communications hereunder by notice so given.

 

	 	If to the Senior Lender:	 	AgCountry Farm Credit Services, FLCA	 
	 	 	 	1900 44 St. South	 
	 	 	 	PO Box 6020	 
	 	 	 	Fargo, North Dakota	 
	 	 	 	Attention:  Randy Aberle	 
	 	 	 	Fax: (877) 811-4047	 
	 	 	 	 	 
	 	with a copy to: 	 	Lindquist & Vennum PLLP	 
	 	 	 	4200 IDS Center	 
	 	 	 	80 South Eighth Street	 

                                

                                                    

                                                                 

  

  

  

 

 

 

	 	 	 	Minneapolis, Minnesota 55402	 
	 	 	 	Attention:  George H. Singer	 
	 	 	 	Fax: (612) 371-3207	 
	 	 	 	 	 
	 	If to the TIF Lender:   	 	Arbor Bank	 
	 	 	 	16820 Frances Street, Suite 102	 
	 	 	 	Omaha, Nebraska 68130	 
	 	 	 	Attention:  Mark Jepson	 
	 	 	 	Fax:  (402) 934-1419	 
	 	 	 	 	 
	 	with a copy to:	 	Koley Jessen P.C., L.L.O.	 
	 	 	 	One Pacific Place, Suite 800	 
	 	 	 	1125 South 103rd Street	 
	 	 	 	Omaha, Nebraska 68124	 
	 	 	 	
Attention: Michael M. Hupp

	 
	 	 	 	Fax: (402) 390-9005	 

	 	 	 	Minneapolis, Minnesota 55402	 
	 	 	 	Attention:  George H. Singer	 
	 	 	 	Fax: (612) 371-3207	 
	 	 	 	 	 
	 	If to the TIF Lender:   	 	Arbor Bank	 
	 	 	 	16820 Frances Street, Suite 102	 
	 	 	 	Omaha, Nebraska 68130	 
	 	 	 	Attention:  Mark Jepson	 
	 	 	 	Fax:  (402) 934-1419	 
	 	 	 	 	 
	 	with a copy to:	 	Koley Jessen P.C., L.L.O.	 
	 	 	 	One Pacific Place, Suite 800	 
	 	 	 	1125 South 103rd Street	 
	 	 	 	Omaha, Nebraska 68124	 
	 	 	 	
Attention: Michael M. Hupp

	 
	 	 	 	Fax: (402) 390-9005	 

 

Such notices and communications shall be deemed delivered upon receipt (or refusal to accept delivery) provided that all notices and communications sent by facsimile shall also be evidenced by the facsimile machine’s confirmation identifying the recipient’s facsimile number and transmission and provided further that all notices or other communications sent by facsimile shall also be delivered by another means permitted under this Section.

 

12.           Conflict in Agreements.  If the provisions of any instrument evidencing TIF Indebtedness conflict with the terms of this Agreement, the terms of this Agreement shall govern the relationship between the Senior Lender and the TIF Lender.

13.           Tax Escrow Matters.  The TIF Lender acknowledges, covenants and agrees that the funds that may from time to time deposited by the Borrower in the Tax Escrow shall be solely and exclusively used for the purposes of paying real estate taxes for the then current year and not in satisfaction of any other liability or obligation that may be or become due and owing to the TIF Lender under the TIF Lender Loan Agreement, the TIF Note or otherwise.  For the avoidance of doubt, funds received by the TIF Lender in respect of the tax payments by the Borrower may be applied in accordance with the TIF Lender Loan Agreement.

 

14.           No Waiver.  No waiver shall be deemed to be made by any party of any of its rights hereunder unless the same shall be in writing signed on behalf of such party, and each such waiver, if any, shall be a waiver only with respect to the specific matter or matters to which the waiver relates and shall in no way impair the rights of such party or the obligations of such other party in any other respect at any time.

 

15.           Binding Effect; Acceptance. This Agreement shall be binding upon the parties and inure to the benefit of their respective successors and assigns.  Notice of acceptance by any party to this Agreement or of reliance by such party upon this Agreement is hereby waived.

  

  

  

 

16.           Miscellaneous. The paragraph headings herein are included for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

 

17.           Governing Law; Consent to Jurisdiction and Venue; Waiver of Jury Trial. This Agreement shall be governed by and construed in accordance with the substantive laws (other than conflict laws) of the State of North Dakota.  THE PARTIES WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON OR PERTAINING TO THIS AGREEMENT.

18.           Counterparts.  This Agreement may be executed in counterparts including facsimile counterparts), any one of which shall be deemed an original, and all of which taken together shall be treated as one document.

19.           Termination of Effectiveness.  Notwithstanding anything to the contrary contained herein, this Agreement shall be null and void in the event the conditions set forth in Section 5 and Sections 6 of the First Amendment to Loan Agreement, of even date herewith, by and between the Borrower and the TIF Lender are not fully satisfied as and when required in accordance with the terms thereof or otherwise waived in writing by the TIF Lender.

 

 

[SIGNATURE PAGE AND BORROWER ACKNOWLEDGEMENT FOLLOW]

  

  

  

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first above-written.

 

	 	 	 	SENIOR LENDER:	 	 
	 	 	 	AGCOUNTRY FARM CREDIT SERVICES, FLCA	 	 

 

	 	 	By:	/s/ Randolph L. Aberle	 	 
	 	 	Name:	Randolph L. Aberle	 	 
	 	 	Its:	Vice President	 	 
	 	 	Date:	12-31-11	 	 

 

 

 

	 	 	 	TIF LENDER:	 	 
	 	 	 	
ARBOR BANK

	 	 

 

	 	 	By:	/s/ Mark D. Jepson	 	 
	 	 	Name:	Mark D. Jepson	 	 
	 	 	Its:	EVP, Chief Credit Officer	 	 
	 	 	Date:	December 31, 2011	 	 

 

 

  

  

  

Acknowledgment by Borrower

           The undersigned, being the Borrower referred to in the foregoing Agreement, hereby (i) acknowledges receipt of a copy thereof, (ii) agrees to all of the terms and provisions thereof, and (iii) agrees that any breach by the TIF Lender of any provision hereof will constitute a default under the Senior Lender Indebtedness and the Loan Agreement.

 

 

 

	 	 	 	
NEDAK ETHANOL, LLC

	 	 
	 	 	 	 	 	 

 

	 	 	By:	/s/ Jerome Fagerland	 	 
	 	 	Name:	Jerome Fagerland	 	 
	 	 	Its:	President and General Manager	 	 
	 	 	Date:	12-31-2011

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00202-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00202-of-00352.parquet"}]]