Document:

exv10w1

 

Exhibit 10.1

AMENDMENT NO. 1 TO WARRANT AGREEMENT

     This Amendment No. 1 to Warrant Agreement (the “Amendment”) is entered into this ___ day of
March, 2007, by and between CytoCore, Inc., a Delaware corporation (the “Company”) and the
undersigned (the “Holder”), with respect to that certain warrant granted to the Holder by the
Company attached hereto as Attachment 1 (the “Warrant”), pursuant to which the Holder was
granted the right to purchase
                                        
 shares of the common stock, $.001 par value, of the
Company (the “Common Stock”) upon the terms and subject to the conditions set forth in the Warrant.

     WHEREAS, the Company may not have available for issuance, upon exercise of the Warrant in
accordance with its terms, sufficient shares of its Common Stock; and

     WHEREAS, the Holder is willing to agree to and abide by certain restrictions on exercise of
the Warrant as set forth in this Amendment.

     NOW, THEREFORE, the Company and the Holder hereby agree as follows.

     1. Exercise Restriction. The Holder hereby agrees, acknowledges and confirms that the
Holder may not exercise the Warrant, and may not purchase any shares of Common Stock upon exercise
thereof, unless and until the stockholders of the Company, at a duly and properly called meeting of
stockholders or by written consent in lieu of a meeting, approve either an increase in the number
of authorized shares of Common Stock of the Company by at least 50 million shares or a reverse
stock split of the Common Stock of the Company at a ratio of at least 1 for every 2 outstanding
shares (the “Approval”). The foregoing restriction shall supersede any provisions in the Warrant
regarding the exercisability of such Warrant, and such restriction shall not terminate, lapse or
expire unless and until either the Approval is obtained, or the Company and the Holder mutually
agree in writing to the termination, lapse or expiration of such restriction.

     2. Miscellaneous. Except as otherwise specifically set forth herein, the parties
hereto hereby ratify and affirm all of the terms and provisions of the Warrant, which shall remain
in full force and effect. This Amendment may be executed in two or more counterparts, each of
which shall be deemed an original and all of which when taken together shall constitute one and the
same instrument.

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment effective as of the date
set forth above.

	 	 	 	 	 	 	 
	 	 	CYTOCORE, INC.,
	 

	 	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 
 	 	 
	 

	 	Title:
	 	 
 	 	 
	 

	 	 	 	 
 	 	 
	 
	 	 	 	 	 	 
	 	 	HOLDER:
	 
	 	 	 	 	 	 
	 	 	If an entity:
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 
 	 	 
	 

	 	Title:
	 	 
 	 	 
	 

	 	 	 	 
 	 	 
	 
	 	 	 	 	 	 
	 	 	If an individual:
	 
	 	 	 	 	 	 
	 	 	  
	 

	 	Name:	 	 	 	 
	 

	 	Address:
	 	 
 	 	 
	 

	 	 	 	 
 	 	 
	 	 	  

 

 

Attachment 1

Warrant Agreementexv10w1

 

EXHIBIT 10.1

Long Term Revolving Note

					
	 	 	 	 	 
	Note Date:
	 	April 16, 2007
	 	$10,000,000.00
	Maturity Date:
	 	April 16, 2012	 	 

FOR VALUE RECEIVED, RED TRAIL ENERGY, LLC, a North Dakota limited liability company (“BORROWER”)
promises to pay to the order of First National Bank of Omaha (“BANK”), at its principal office or
such other address as BANK or holder may designate from time to time, the principal sum of Ten
Million and 00/100 Dollars ($10,000,000.00), or the amount shown on the BANK’s records to be
outstanding, plus interest (calculated on the basis of actual days elapsed in a 360-day year)
accruing each day on the unpaid principal balance at the annual interest rates defined below.
Absent manifest error, the BANK’S records shall be conclusive evidence of the principal and accrued
interest owing hereunder.

This promissory note is executed pursuant to a Construction Loan Agreement between BORROWER and
BANK dated as of December 16, 2005, (the Construction Loan Agreement, together with all amendments
thereto is called the “AGREEMENT”). All capitalized terms not otherwise defined in this note shall
have the meanings provided in the AGREEMENT.

INTEREST ACCRUAL. Interest on the principal amount outstanding shall accrue based on a one month
LIBOR RATE plus three hundred forty (340) basis points from time to time until maturity, and at the
LIBOR RATE plus six hundred (600) basis points in excess of said aggregate interest rate from time
to time after maturity, whether by acceleration or otherwise. Interest shall be calculated on the
basis of a 360-day year, counting the actual number of days elapsed.

REVOLVING FEATURE. The BORROWER may reborrow, on a revolving basis, that principal amount repaid
on this promissory note which remains at a variable interest rate. BORROWER will pay BANK an
unused commitment fee of three-tenths of one percent (3/10%) assessed quarterly in arrears against
the unused portion of the note amount. Pursuant to this revolving loan feature the BANK will lend
the BORROWER, from time to time until maturity of this note such sums as the BORROWER may request
by reasonable same day notice to the BANK, received by the BANK not later than 11:00 A.M. Omaha
time, but which shall not exceed in the aggregate principal amount at any one time outstanding,
$10,000,000.00. The BORROWER may borrow, repay and reborrow hereunder, from the date of this
AGREEMENT until the maturity of this note, said amount or any lesser sum which is $10,000.00 or an
integral multiple thereof.

INCENTIVE PRICING. The interest rate applicable to this promissory note is subject to reduction
after a date six months subsequent to CONSTRUCTION COMPLETION DATE, based on the business results
of BORROWER. In the event that BORROWER maintains the following ratios, measured monthly, the
interest rates will be reduced accordingly:

1

 

	 	 	 	 	 
	If INDEBTEDNESS to NET WORTH	 	 	 
	is less than:	 	Interest will be:	 
	1.15: 1.00
	 	LIBOR RATE plus 325 basis points
	1.00: 1.00
	 	LIBOR RATE plus 300 basis points
	.75 : 1.00
	 	LIBOR RATE plus 275 basis points

REPAYMENT TERMS. Interest and principal shall be paid as set forth in the AGREEMENT, Any remaining
principal balance, plus any accrued but unpaid interest, shall be fully due and payable on April
16, 2012; if not sooner paid.

PREPAYMENT. The BORROWER may prepay this promissory note in full or in part at any time.
Provided, however, a condition of any prepayment of all of the FIXED RATE NOTE, VARIABLE RATE NOTE,
and LONG TERM REVOLVING NOTE is that certain fees shall be paid to BANK. If such complete
prepayment occurs within the first three years following COMPLETION DATE, a fee of one (1%) percent
of the amount prepaid shall be paid to BANK. Any prepayment may be applied in inverse order of
maturity or as the BANK in its sole. discretion may deem appropriate. Such prepayment shall not
excuse the BORROWER from making subsequent payments each quarter until the indebtedness is paid in
full. No payment of EXCESS CASH FLOW shall be the cause of a payment to BANK for interest rate
breakage fees or otherwise result in any prepayment fee.

ADDITIONAL TERMS AND CONDITIONS. The AGREEMENT, and any amendments or substitutions, contains
additional terms and conditions, including default and acceleration provisions, which are
incorporated into this promissory note by reference. The BORROWER agrees to pay all costs of
collection, including reasonable attorneys fees and legal expenses incurred by the BANK if this
promissory note is not paid as provided above. This promissory note shall be governed by the
substantive laws of the State of Nebraska.

WAIVER OF PRESENTMENT AND NOTICE OF DISHONOR. BORROWER and any other person who signs, guarantees
or endorses this promissory note, to the extent allowed by law, hereby waives presentment, demand
for payment, notice of dishonor, protest, and any notice relating to the acceleration of the
maturity of this promissory note.

	 	 	 	 	 
	 	RED TRAIL ENERGY, LLC

 	 
	 	By:  	
/s/William A. Price
 	 
	 	 	Name:  	William A. Price 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	And

 	 
	 	By:  	/s/Ambrose R. Hoff
 	 
	 	 	Name:  	Ambrose R. Hoff 	 
	 	 	Title:  	Chairman 	 

2

 

	 	 	 	 	 

					
	STATE OF NORTH DAKOTA

COUNTY OF STARK
	 	)

)

)
	 	ss.

      On this 11th day of April, 2007, before me, the undersigned, a Notary Public, personally
appeared William Price, Vice President of Red Trail Energy, LLC, on behalf of said entity, who
executed the foregoing instrument, and acknowledged that he executed the same as his voluntary act
and deed and that of the Company.

	 	 	 	 	 
	 	 	 
	 	     /s/ Deell Hoff
 	 
	 	Notary Public
 	 
	Oct. 21, 20011 	Deell Hoff

Notary Public

State of North Dakota

My Commission Expires 	 
	 

					
	STATE OF NORTH DAKOTA

COUNTY OF STARK
	 	)

)

)
	 	ss.

      On this 11th day of April, 2007, before me, the undersigned, a Notary Public, personally
appeared Ambrose Hoff, President of Red Trail Energy, LLC, on behalf of said entity, who executed
the foregoing instrument, and acknowledged that he executed the same as his voluntary act and deed
and that of the Company.

	 	 	 	 	 
	 	 	 
	 	     /s/ Deell Hoff
 	 
	 	Notary Public
 	 
	Oct. 21, 20011 	Deell Hoff

Notary Public

State of North Dakota

My Commission Expires 	 
	 

3exv10w2

 

EXHIBIT 10.2

Variable Rate Note

					
	 	 	 	 	 
	Note Date:
	 	April 16, 2007
	 	$17,605,870.00
	Maturity Date:
	 	April 16, 2012	 	 

FOR VALUE RECEIVED, RED TRAIL ENERGY, LLC, a North Dakota limited liability company (“BORROWER”),
promises to pay to the order of First National Bank of Omaha (“BANK”), at its principal office or
such other address as BANK or holder may designate from time to time, the principal sum of
Seventeen Million Six Hundred and Five Thousand Eight Hundred Seventy and 00/100 Dollars
($17,605,870.00), or the amount shown on the BANK’s records to be outstanding, plus interest
(calculated on the basis of actual days elapsed in a 360-day year) accruing each day on the unpaid
principal balance at the annual interest rates defined below. Absent manifest error, the BANK’s
records shall be conclusive evidence of the principal and accrued interest owing hereunder.

This promissory note is executed pursuant to a Construction Loan Agreement between BORROWER and
BANK dated as of December 16, 2005, (the Construction Loan Agreement, together with all amendments
thereto is called the “AGREEMENT”). All capitalized terms not otherwise defined in this note shall
have the meanings provided in the AGREEMENT.

INTEREST ACCRUAL. Interest on the principal amount outstanding shall accrue based on a three month
LIBOR RATE plus three hundred forty (340) basis points from time to time until maturity, and at the
LIBOR RATE plus six hundred (600) basis points in excess of said aggregate interest rate from time
to time after maturity, whether by acceleration or otherwise. Interest shall be calculated on the
basis of a 360-day year, counting the actual number of days elapsed.

INCENTIVE PRICING. The interest rate applicable to this promissory note is subject to reduction
after a date six months subsequent to CONSTRUCTION COMPLETION DATE, based on the business results
of BORROWER. In the event that BORROWER maintains the following ratios, the interest rates will be
reduced accordingly:

	 	 	 	 	 
	If INDEBTEDNESS to NET WORTH	 	 	 
	is less than:	 	Interest will be:	 
	1.15: 1.00
	 	3 month LIBOR RATE plus 325 basis points
	1.00: 1.00
	 	3 month LIBOR RATE plus 300 basis points
	.75 : 1.00
	 	3 month LIBOR RATE plus 275 basis points

REPAYMENT TERMS. Interest and Principal shall be due and payable in the amounts described in the
AGREEMENT, which will be applied to this Note and the LONG TERM REVOLVING NOTE, in the manner
described in the AGREEMENT. Any remaining principal balance, plus any accrued but unpaid interest,
shall be fully due and payable on April 16, 2012.

1

 

PREPAYMENT. The BORROWER may prepay this promissory note in full or in part at any time.
Provided, however, a condition of any prepayment of all of the FIXED RATE NOTE, VARIABLE RATE NOTE,
and LONG TERM REVOLVING NOTE is that certain fees shall be paid to BANK. If such complete
prepayment occurs within the first three years following COMPLETION DATE, a fee of one (1%) percent
of the amount prepaid shall be paid to BANK.

In addition, if complete or partial prepayment occurs, a fee shall be paid to BANK equal to the
amount calculated by the following formula: (Original LIBOR RATE minus current LIBOR RATE)
multiplied by the amount prepaid, multiplied by the number of days to the next scheduled interest
adjustment day, divided by 360. Any prepayment may be applied in inverse order of maturity or as
the BANK in its sole discretion may deem appropriate. Such prepayment shall not excuse the
BORROWER from making subsequent payments each quarter until the indebtedness is paid in full. No
payment of EXCESS CASH FLOW shall be the cause of a payment to BANK for interest rate breakage fees
or otherwise result in any prepayment fee.

ADDITIONAL TERMS AND CONDITIONS. The AGREEMENT, and any amendments or substitutions, contains
additional terms and conditions, including default and acceleration provisions, which are
incorporated into this promissory note by reference. The BORROWER agrees to pay all costs of
collection, including reasonable attorneys fees and legal expenses incurred by the BANK if this
promissory note is not paid as provided above. This promissory note shall be governed by the
substantive laws of the State of Nebraska.

WAIVER OF PRESENTMENT AND NOTICE OF DISHONOR. BORROWER and any other person who signs, guarantees
or endorses this promissory note, to the extent allowed by law, hereby waives presentment, demand
for payment, notice of dishonor, protest, and any notice relating to the acceleration of the
maturity of this promissory note.

	 	 	 	 	 
	 	RED TRAIL ENERGY, LLC

 	 
	 	By:  	/s/William A. Price
 	 
	 	 	Name:  	William A. Price 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	And

 	 
	 	By:  	/s/Ambrose R. Hoff
 	 
	 	 	Name:  	Ambrose R. Hoff 	 
	 	 	Title:  	Chairman 	 

2

 

					

					
	STATE OF NORTH DAKOTA

COUNTY OF STARK
	 	)

)

)
	 	ss.

On this 11th day of April, 2007, before me, the undersigned, a Notary Public, personally
appeared William Price, Vice President of Red Trail Energy, LLC, on behalf of said entity, who
executed the foregoing instrument, and acknowledged that he executed the same as his voluntary act
and deed and that of the Company.

	 	 	 	 	 
	 	 	 
	 	     /s/ Deell Hoff
 	 
	 	Notary Public 	 
	Oct. 21, 20011 	 
Deell Hoff

Notary Public

State of North Dakota

My Commission Expires 	 
	 

					
	STATE OF NORTH DAKOTA

COUNTY OF STARK
	 	)

)

)
	 	ss.

On this 11th day of April, 2007, before me, the undersigned, a Notary Public, personally
appeared Ambrose Hoff, President/Chair of Red Trail Energy, LLC, on behalf of said entity, who
executed the foregoing instrument, and acknowledged that he executed the same as his voluntary act
and deed and that of the Company.

	 	 	 	 	 
	 	 	 
	 	      /s/ Deell Hoff
 	 
	 	Notary Public 	 
	Oct. 21, 20011 	 

Deell Hoff

Notary Public

State of North Dakota

My Commission Expires 	 
	 

3

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