Document:

Exhibit 10.29

 

LOAN
AGREEMENT

 

This agreement is made and
entered into this 15th day of January, 2008 by and between POET, LLC
(hereinafter referred to as “Lender”) and POET
Biorefining  Chancellor (hereinafter
referred to as “Borrower”).

 

Lender agrees to loan, under
the terms stated herein, two-million, three-hundred thousand US dollars
($2,300,000) to Borrower.

 

For value received, Borrower
agrees to pay to Lender, the principal sum listed above on or before February 14,
2008. Borrower further agrees to pay interest on the outstanding principal
balance from the date that the loan proceeds are disbursed until such time that
the entire principal balance is repaid, at an annual rate of 9.25 percent
calculated on the unpaid principal balance on an annual (365 day) basis. Any
Borrower payment will first be applied to accrued interest, with any remaining
amount applied to the unpaid principal balance.

 

Lender and Borrower both
agree that there are no other terms or oral promises not contained in this
written agreement.

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement on the date and year first written
above.

 

	
   

  	
  LENDER: 

  	
  POET, LLC

  
	
   

  	
  By

  	
  /s/ Dan Loveland

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  	
   

  
	
   

  	
  BORROWER:  

  	
  POET
  Biorefining — Chancellor

  
	
   

  	
  By

  	
  /s/ Darrin Ihnen

  
	
   

  	
  Title: 

  	
  PresidentExhibit 10.30

 

	
  Assn.

  	
   

  	
  B.O.No.

  	
   

  	
  CIF No.

  	
   

  	
  Loan No.

  	
   

  	
  Product
  Code

  	
   

  	
  Coll.
  Code

  	
   

  	
  Customer
  Name

  	
   

  	
  CommitmentAmount

  
	
  72

  	
   

  	
  65

  	
   

  	
  1895500

  	
   

  	
  1192413700

  	
   

  	
  1011

  	
   

  	
  1

  	
   

  	
  GREAT PLAINS
  ETHANOL

  	
   

  	
  $15,000,000.00

  

 

PROMISSORY
NOTE/LOAN AGREEMENT

LENDER: 
AGCOUNTRY FARM CREDIT SERVICES, PCA                                                                                                                                        Date:
February 20, 2008

	
   

  	
   

  	
  1900 44TH ST S PO BOX 6020

  
	
   

  	
   

  	
  FARGO

  	
  NORTH DAKOTA

  	
  58108-6020

  
	
  LOAN AMOUNT: $15,000,000.00

  	
  MATURITY DATE: April 1, 2009

  
	
  TYPE OF LOAN: Revolving Line of Credit (RLOC)

  
	
  STATED INTEREST RATE: 7.37%

  
	
  TYPE OF INTEREST RATE: ADJUSTABLE RATE LIBOR BASED:

  
						

 

On the first day of each
month the Interest Rate shall be adjusted by adding a margin of 3.00 percentage
points to the index.  This margin shall
remain in effect until February 1, 2009, at which time Lender may change
the margin at its discretion, and Lender may continue to change the margin at
successive intervals of 1 year(s) each thereafter.

 

 

 

LOAN PAYMENTS:

Interest payments are due
Quarterly beginning on April 1, 2008. The remaining unpaid balance of the
loan is payable in its entirety on the Maturity Date.

 

 

 

DRAFT PROGRAM:

Not applicable.

 

COLLATERAL: Payment of
the loan is secured by:

All existing and future
security agreements from all or any of the Borrowers (and from third parties if
so intended) to the Lender.  All of the
covenants and agreements contained in said security instruments are made a pert
of this note.

 

 

 

DEFAULT ADD-ON RATE:   2.00% will be added to the interest rate
that would otherwise be in effect for this loan, if Borrowers default as
explained in the Additional Provisions.

VOTING STOCKHOLDER: Any
one Stockholder is authorized by the Borrowers to exercise any voting rights on
behalf of members, subject to applicable bylaws, and to receive effective
interest rate disclosures unless otherwise agreed in writing between the
parties.

                Borrowers further agree that a security interest is
granted to Lender in all such stock or participation certificates now owned and
hereafter acquired, however designated or classified, and all equity reserve
and allocated surplus in the Lender or Lender’s parent association, as  applicable, to secure the Loans.

                FOR VALUE RECEIVED the undersigned Borrowers jointly
and severally promise to pay to the order of the Lender at its office shown
above on or before the Maturity Date the principal sum equal to the Loan Amount
together with interest thereon from dates of disbursement until paid pursuant
to the Lender’s Individual Loan Pricing Program (the “Program”), as provided in
the Additional Provisions.  Borrowers
grant to the Lender, as security for the payment or this loan and, if
applicable, the other Obligations as defined in the Additional Provisions, a
present security interest or lien in the property described above and, if
applicable, the other Collateral, as defined In the Additional Provisions.

                The Borrowers acknowledge receipt of: a) pertaining
to the Lender or the Lender’s parent association, as applicable, the most
recent annual report and most recent quarterly report, if more recent than the
annual report a copy of the notice to Borrowers concerning investment, which
includes a description of the terms and conditions under which equity is
issued; capitalization bylaws and b,) an Effective Interest Rate Disclosure
Statement or a Truth-in-Lending Disclosure Statement, as applicable.

 

 

THIS AGREEMENT INCLUDES
THE PROVISIONS IN THE “PROMISSORY NOTE/LOAN AGREEMENT — ADDITIONAL PROVISIONS.”

 

AND THE PROVISIONS IN THE
“ADDENDUM TO NOTE/LOAN AGREEMENT.”

 

GREAT PLAINS ETHANOL LLC

dba Poet Biorefining -
Chancellor

a South Dakota LLC

 

	
  By:

  	
  /s/ Darrin Ihnen

  	
   

  
	
  DARIN IHNEN, Chairman

  

 

 

	
  Assn.

  	
   

  	
  B.O.No.

  	
   

  	
  CIF No.

  	
   

  	
  Loan No.

  	
   

  	
  Product
  Code

  	
   

  	
  Coll.
  Code

  	
   

  	
  Customer
  Name

  	
   

  	
  Commitment
  Amount

  
	
  72

  	
   

  	
  65

  	
   

  	
  1895500

  	
   

  	
  1192413700

  	
   

  	
  1011

  	
   

  	
  1

  	
   

  	
  GREAT PLAINS ETHANOL

  	
   

  	
  $15,000,000.00

  

 

ADDENDUM TO
NOTE/LOAN AGREEMENT

February 20, 2008

 

                This Addendum is a part of, and contains additional
terms and conditions for, a Promissory Note/Loan Agreement (‘Note”) dated February 20,
2008, in the principal sum of $15,000,000.00, evidencing a loan extended by
AgCountry Farm Credit Services, PCA  (“Lender”)
to the Borrowers.  Unless waived in
writing by the Lender, until all liabilities of the Borrowers under this loan
have been paid and satisfied in full, the Borrowers covenant and agree as
follows:

 

1.                                       COVENANTS: The following covenants and
agreements amend and supplement the Note and the Security Agreement. To the
extent of any inconsistency between the provisions of the Note or the Security
Agreement and this Addendum, this Addendum governs.

 

2.                                       BORROWING BASE: Borrower agrees to limit
credit available under this line of credit to the lesser of the Commitment
Amount or the FCS Borrowing Base Formula. This formula is to be calculated
quarterly using the most recent inventory, aging accounts receivable, and
hedging account reports. Credit available under the Borrowing Base Formula,
based on current market values, is to be calculated as follows:

 

	
   

  	
   

  	
  a.

  	
  Inventory -
  unsettled payables X 75%

  	
  $ a

  
	
   

  	
   

  	
  b.

  	
  Gain/Loss on
  market contracts X 75%

  	
  $ b

  
	
   

  	
   

  	
  c.

  	
  Accounts
  receivable < 90 days X 75%

  	
  $ c

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total Credit Available

  	
  $ (a+b+c)

  

 

3.                                       FINANCIAL - MINIMUM OWNER EQUITY:
Borrower(s) shall maintain minimum owner equity percentage of 45% by
12-31-07 and thereafter. Calculation of such owner equity percentage is made by
dividing the difference between total assets and total liabilities by total
assets and expressing the result as a percentage.

 

4.                               FINANCIAL, - WORKING CAPITAL: Borrower
will maintain working capital of at least $5,000,000 by 12-31-07. For purposes
of determining the amount of Borrower’s working capital, Borrower may include
as working capital all amounts available for borrowing under the Revolving Term
Commitment less the current portion due.

 

5.                                       FINANCIAL: Borrower agrees to maintain a
fixed charge coverage ratio of 1.00:1.00 by 12-31-08. Fixed charge coverage
ratio is defined as: (earnings before interest, taxes, depreciation and
amortization) divided by the sum of; a) interest; b) mandatory debt retirement;
c) cash taxes; d) maintenance capital expenditures; and e) cash patronage
dividends and cash equity retirements to be measured at fiscal year end.

 

6.                                       Borrower to insure business with.
adequate property casualty insurance and adequate liability insurance.
Agcountry to be named loss payee and additional insured.

 

7.                                       FINANCIAL REPORTING - - CERTIFIED AUDIT:
Within 120 days after the Borrowers fiscal year and annually thereafter,
Borrower shall provide Lender with a written balance sheet of borrower as of
the close of such fiscal year and a written statement of profit and loss of
Borrower for such year, prepared in accordance with generally accepted
principles of accounting and certified by a firm of independent accountants
selected by Borrower but satisfactory to Lender. Such reports shall be set
forth in a format comparing the results of the most recent fiscal year to those
in the prior fiscal year certified report and in all reasonable details.

 

 

	
  Assn.

  	
   

  	
  B.O.No.

  	
   

  	
  CIF No.

  	
   

  	
  Loan No.

  	
   

  	
  Product
  Code

  	
   

  	
  Coll.
  Code

  	
   

  	
  Customer
  Name

  	
   

  	
  CommitmentAmount

  
	
  72

  	
   

  	
  65

  	
   

  	
  1895500

  	
   

  	
  1192413700

  	
   

  	
  1011

  	
   

  	
  1

  	
   

  	
  GREAT PLAINS
  ETHANOL

  	
   

  	
  $15,000,000.00

  

 

ADDENDUM TO
NOTE/LOAN AGREEMENT

February 20, 2008

 

                This Addendum is a part of, and contains additional
terms and conditions for, a Promissory Note/Loan Agreement (‘Note”) dated February 20,
2008, in the principal sum of $15,000,000.00, evidencing a loan extended by
AgCountry Farm Credit Services, PCA  (“Lender”)
to the Borrowers.  Unless waived in
writing by the Lender, until all liabilities of the Borrowers under this loan
have been paid and satisfied in full, the Borrowers covenant agree as follows:

 

8.                                       QUARTERLY FINANCIAL REPORTING: Within 30
days of the previous quarter-end, Borrower(s) shall provide lender with
the previous quarter-end reports consisting of a balance sheet, profit and loss
statements and other reports requested to monitor performance.

 

9.                                       ACCOUNTING METHODS — Borrower shall not
adopt any accounting methods, which are inconsistent with generally accepted
accounting principles (GAAP). To the extent any change in GAAP affects any
computation or determination required to be made pursuant to this Addendum,
such computation or determination shall be made as it such change in GAAP had
not occurred unless the Borrower and Lender agree in writing to an adjustment
to such computation or determination to account for such change in GAAP.
Furthermore, Borrower will not change any accounting methods, allow any
restatement of its earnings, change in depreciation or inventory methods, or
reclassification of balance sheet accounts, including but not limited to, the sale
and leaseback of any asset, without full and immediate disclosure to Lender.
Lender shall have the right to accept or reject any and all changes that
Lender, in its sole discretion, determines are material. Lender shall also have
the right to review and adjust any and all loan covenants, interest rates and
other contract agreements upon determining a material change has occurred.

 

10.                                 OTHER INDEBTEDNESS - If Borrower should
fail to pay any indebtedness to any other person or entity for borrowed money
or any long-term obligation when due, or any other event occurs which, under
any agreement or instrument relating to indebtedness or obligation, has the
effect of accelerating or permitting the acceleration of such indebtedness or
obligation; then all Lender obligations become due.

 

11.                                 DEFAULT EVENT - Borrower shall be in
default if borrower fails to pay any principal

or interest or fees when due and such failure shall
continue un-remedied for a period of 10 days.

 

12.                                 DEFAULT EVENT - Borrower shall be in default
if borrower fails to observe or perform any covenant or agreement contained in
this agreement or other loan documents and such failure shall remain
un-remedied for 30 days after the earlier of: 1) any officer of Borrower becomes
aware of such failure or 2) Lender notifies borrower of such failure.

 

13.                                 LIENS AND ENCUMBRANCES — Lender
acknowledges all liens and encumbrances granted by the Borrower to the Lender
under the Credit Agreement dated August 10, 2007 and all subsequent
amendments between Borrower and Agcountry Farm Credit Services, FLCA.

 

14.                                 TAXES - Borrower to pay all taxes before
they become delinquent.

 

Great Plains Ethanol, LLC

dba Poet Biorefining —
Chancellor

a South Dakota LLC

 

	
  By:

  	
  /s/ Darin Ihnen

  	
   

  
	
  (print name) Darrin
  Ihnen

  
	
  Title:

  	
  President

  	
   

  
				

 

 

PROMISSORY NOTE/LOAN AGREEMENT

ADDITIONAL PROVISIONS

 

INDIVIDUAL LOAN PRICING PROGRAM:   The Program provides for charging
differential interest rates according to loan classes determined by criteria
adopted by the Lander from time to time, such as type of loan, purpose, amount
quality, funding costs, operating costs, servicing costs, and competitive
interest rates. There are separate types of loans and interest rates under the
Program, each having a different rate of interest, and the loans within each
class are assigned to an interest rate category, it is possible that the
particular rate for each class of loan may differ among such geographical areas
as may be designated from time to time. In the event that Borrowers default
under the terms or conditions of any promissory note, membership agreement,
mortgage or other security document, or any amendatory agreement to any of
these, the Lender at its option may adjust this loan to any less favorable
interest rate category then offered or maintained by Lender for loans of this
type.  The higher interest rate shall
become effective immediately upon placement of this loan into the less
favorable interest rate category by Lender, and the loan may, at the option of
Lender, remain in the less favorable interest rate category for the remaining
term of the loan, regardless of whether Borrowers later cure the default.
Lender shall not place the loan into a less favorable interest rate category
unless Lender has first given Borrowers written notice of the default, and
Borrowers fail to cure the default within 60 days after Lender has given the
notice. Notice shall be deemed to have been given when Lender places such
notice in the mail for first-class mailing to the last address of Borrowers
known by Lender. In addition to adjusting the loan to a less favorable interest
rate category, Lender may also charge the higher default interest rate
described below.

INTEREST RATE: If this is a:

   (a) Variable
Rate loan, the initial annual rate of interest is equal to the
Stated Interest Rate.  The interest rate
is subject to change at any time and by any amount during the term of the loan
and will vary from time to time at the option of the Lender.

   (b) Fixed
Rate loan, the annual rate of interest is equal to the Stated
Interest Rate.  The interest rate is not
subject to change during the term of the loan and will not be increased or
decreased except in the event of default.

   (c) Adjustable
Rate Operating loan, the initial annual rate of interest is equal to
the Stated Interest Rate. The interest rate is subject to change at any time
and by any amount during the term of the loan, but only on and after the first
adjustment date, and the rate will not be increased or decreased prior to that
date except in the event of default.

   (d) Adjustable
Rate loan or an Adjustable Rate IT
loan or an Adjustable Rate Capital RLOC,
the initial annual rate of interest is equal to the Stated Interest Rate. The
interest rate is subject to change by any amount during the term of the loan,
but only on the first adjustment date and on dates occurring at the end of the
successive adjustment intervals thereafter, and the rate will not be increased
or decreased during any one such interval except in the event of default.

   (e) Adjustable
Rate Prima Rate Based loan, the initial annual rate of interest is
equal to the Stated Interest Rate. The Index for adjustments is the prime rate
reported on the tenth day of the month preceding the interest rate change date
by the Wall Street Journal in its daily listing of money rates, defined
therein as “the base rate on corporate leans posted by at least 78 percent of
the nation’s 30 largest banks.”  If a
prime rate is not reported on the tenth day of a month, the prime rate reported
on the first business day preceding the tenth day of the month will be used. If
this index is no longer available Lender will select a new index which is based
upon comparable information.

   (f) Capped
Non-indexed Variable Rate loan, the initial annual rate of interest
is equal to the Stated Interest Rate. 
The Interest rate is subject to change at any time and will vary from
time to time at the option of the Lender. The interest rate is not based on an
Index. Except during periods of default when the additional percentage points
specified herein shall be added to increase the interest rate, tile interest
rate may not increase or decrease by more than 6.00 percentage points above or
below the initial annual rate of interest on any single change date or during
the term of the Loan.

   (g) Fixed
Then indexed Adjustable Rate loan, the initial annual rate of
interest is equal to the Stated interest Rate. Once the interest rate changes
to an adjustable interest rate at the end of the fixed interest rate period,
the index for adjustments is the estimated weekly average available for the
one-year bonds funding cost index as reported by the Federal Farm Credit Banks
Funding Corporation at its Web site, found in the Farm Credit System, Funding
Cost Index, Archive section at http://www.farmcredit-ffcb corn, for that week
which contains the date that is 45 days before the data that the adjustable
interest rate is to be initially determined or subsequently adjusted. if the
date that is 45 days before either the expiration date of the fixed interest
rate period or an Adjustment interval is not a business day, the Lander shall
use that estimated weekly average for the one-year bonds funding cost index for
that week which immediately precedes the 45-day date.

If
this index is no longer available, the Lender will select a new index which is
based on comparable information. The Lender will give the Borrowers notice of
this choice.

   (h) Indexed
Adjustable Rate loan, the initial annual rate of interest is equal
to the Stated Interest Rate. The index for adjustments is the estimated weekly
average available for the one-year bonds funding cost index as reported by the
Federal Pant Credit Banks Funding Corporation at its Web site, found in the
Farm Credit System, Funding Cost index, Archive section at http://farmcredit-ffcb.com,
for that week which contains the data that is 45 days before the date the
interest rate is to be adjusted. If the date that is 45 days before the date
the interest rate is to be adjusted is not a business day, the Lender shall use
that estimated weekly average for the one-year bonds funding cost index for
that week which immediately precedes the 45 day date. If this index is no
longer available, the Lender will select a new index which is based on
comparable information. The Lender will give the Borrowers notice of this
choice.

   (i) Adjustable
Rate LIBOR Based loan, the initial annual rate of interest is equal
to the Stated Interest Rate. The Index for adjustments is the One Month London
interbank Offered Rate (“One Month LIBOR”) reported on the tenth day of the
month preceding the interest rate change date by the Wall Street Journal in its
daily listing of money rates, defined therein as “the average of interbank
offered rates for dollar deposits in the London market based on quotations five
major banks.” If a One Month LIBOR rate is not reported on the tenth day of a
month, the One Month LIBOR rate reported on the first business day preceding
the tenth day of the month will be used. 
If this index is no longer available, Lender will select a new index
which is based upon comparable information.

   Interest may be based upon a 360- or 365-day
year as the Lender may determine.

DEFAULT RATE OF INTEREST: Prior to maturity, if
Borrowers default under this document the entire unpaid principal balance of
the loan, including all advancements, shall bear interest from the date of
default until the default is cured or maturity of the loan is accelerated by
reason of default at a rate equal to the interest rate for this loan that would
otherwise be in effect during the period of default plus the Default Add-On
Rate per annum (the “default rate”), and the amount of such interest in excess
of interest otherwise accruing in the absence of default shall be immediately
due and payable. At maturity or upon acceleration of maturity by reason of
default, the entire indebtedness including all principal, interest and
advancements shall bear interest until paid at the default rate in effect at
the time of maturity or acceleration of maturity, as the case may be.

 

 

DISBURSEMENTS OF PRINCIPAL: Disbursements of principal
may be made at various times at Borrowers’ request, subject to the provisions
of this paragraph. Repayments of principal under a Revolving Line of Credit
reinstate the loan commitment, subject to the terms of this document, but the
total of the unpaid balance of future advances together with the existing
indebtedness hereunder, in the aggregate at any one time outstanding, shall not
exceed the Loan Amount; otherwise, repayments of principal do not reinstate the
loan commitment, and total disbursements, in the aggregate, shall not exceed
the Loan Amount. The Lender may withhold further disbursements if it determines
that: (a) the value of the Collateral is insufficient; (b) loan
proceeds have been used for purposes not approved by the Lender; (c) loan
payments have not been made in accordance with the repayment plan contained in
the loan application; or (d) an event has occurred which entities the
Lender to accelerate maturity of the loan.

DRAFT PROGRAM AGREEMENT: If the Draft Program is
applicable to this loan, the Borrowers may draw loan funds using the draft
forms furnished by the tender, subject to the following terms and conditions:

   (a) The Borrowers authorize and direct
the Lender and its duly authorized agents to accept drafts made or drawn by any
one of the Borrowers and to disburse loan funds accordingly, as specified in
this document; however, Borrowers agree not to use drafts as payments on this
or other Obligations of the Borrowers. The Borrowers may be charged a
reasonable fee for this program and the cost of printing drafts.

   (b) The Borrowers jointly and severally
accept responsibility for all disbursements made pursuant to this authorization
and direction. The Lender shall not be obligated to inquire as to whether the
Borrowers have issued specific directions for any particular draft or to
determine whether the Borrowers have received the benefit of the proceeds of
any particular draft before honoring such draft. Drafts may be deposited
directly into the bank account at any one of the Borrowers.

   (c) The minimum amount for which each
draft may be written is the Minimum Draft amount. In the event that Borrowers
write any draft for an amount below this minimum, the Lender may charge
Borrowers a reasonable fee for each draft that is not in compliance.

   (d) Drafts may not be written in excess
of the undisbursed loan commitment. The Lender reserves the right to revoke all
future draft privileges without notice to the Borrowers in the event of an
overdraft and the right to reject drafts that are not written for purposes
specified in the loan documents or pursuant to these terms and conditions. In
the event that Lander chooses to honor a draft which exceeds the available loan
commitment, Borrowers are liable for full repayment of the funds thus borrowed,
plus interest and Lender may charge Borrowers a reasonable overdraft fee.

   (e) The Borrowers agree to immediately
notify the Lender in the event one or more drafts are lost, stolen, destroyed
or otherwise misused and to indemnify the Lender and hold the Lender harmless
from any loss or claim if any draft is lost, stolen, forged, altered or
otherwise misused if the Lender did not have notice of the same at least 24
hours prior to honoring such draft.

   (f) The Borrowers may stop payment on a
draft by request to the Lender.  The
Borrowers wilt be charged a reasonable fee for each stop-payment order and
agree to reimburse the Lender for all damages, costs and expenses as a result
of the Lender’s refusal to honor such draft. The Lender shall not be liable in
the event the draft is honored following a stop-payment order if such order is
not received in sufficient time to permit dishonor.

   (g) This authorization and direction
shall be effective as to this and, with the Lender’s approval, other existing
and future loans to the Borrowers and shall continue in force and effect until
the Lender receives written notice of revocation signed by the Borrowers,
provided the privilege of using drafts may be withdrawn by the Lender and
unused drafts must be surrendered to the Lender on demand.

FUNDS HELD PROGRAM: Lender may offer a Funds
Held Program (“Program”) that allows Borrowers to make advance conditional
payments on designated loans. Lender reserves the right, in its discretion, to
amend or terminate the Program. The following terms and conditions apply to at
Program accounts in connection with loans from Lender.

   (a) Subject to Lender’s rights to
direct the application of payments, an advance payment made to be applied to
future maturities on a loan will be placed in a Program account (“Account”) as
of the date received. If a special prepayment of principal is desired,
Borrowers must so specify when an advance payment is made.

   (b) Interest will accrue on funds in
the Account at such times and at such rates as per Lender’s Program. Lender may
change the interest rate or accrual period from time to time without notice.
The Program may provide for different interest rates for different categories of
loans.

   (c) When a loan installment or other
related charge becomes due, funds in the Account for that loan wilt be
automatically applied on the due date toward payment be the installment or
related charge. Any accrued interest in the Account will be applied first. If
the funds in the  Account are not
adequate to pay the entire Installment or related charge, Borrowers must pay
the difference by the installment due date.

   (d) Funds received after a loan
installment or related charge has been billed will be applied to the
installment or related charge due. Funds received in excess of the billed
installment amount or related charge will be placed in the Account.

Even
though no installment or related charge is due, Lender may, at its option,
apply funds from the Account without notice to Borrowers as follows:

      — Protective Advances.  If Borrowers fail to pay when due other items
Borrowers are required to pay pursuant to any loan document, Lender may apply
funds in the Account to pay them.

      — Account Ceiling. If the Account balance
exceeds the unpaid balance on the loan, Lender may apply the funds in the
Account to pay off the loan and will return any excess funds.

      — Transfer of Security. If Borrowers
sell, assign, or transfer any interest in any collateral for the loan, Lender
may apply the funds in the Account to the remaining loan balance.

      — Deceased Borrowers. If all Borrowers
are deceased, Lender may apply the funds in the Account to the remaining loan
balance.

      — Termination of Program. If Lender
decides to terminate the Program, it may apply all funds in the Account to the
remaining loan balance effective on the termination date.

   (e) Lender may, in its discretion,
permit Borrowers to withdraw funds from the Account in accordance with Lender’s
Program.

   (f) Neither the advance payments nor
the accrued interest in an Account are insured by a governmental agency or
instrumentality. If Lender is placed in liquidation, Borrowers shall be sent by
the receiver such notices as required by FCA regulations then in effect. Such
regulations currently provide for advance notice from the receiver that funds
in the Account will be applied to the loan and that funds in the Account will
not earn interest after the receiver is appointed.

LOAN PAYMENTS:  If the loan is payable in installments and
the period from the day interest begins to the due date of the first
installment is more than the interval between installments, there may be an
interest only payment due one installment interval prior to the due date of the
first installment, or the interest may be included in the first installment at
the option of the Lender, but if each period is less than the interval between
installments and principal and interest are payable in equal installments, then
the first installment will be decreased by the amount of interest not yet
accrued for that installment. The final installment may be more or less than
preceding installments, if any, and any periodic adjustments to the interest
rate will result in corresponding changes in the amount of installments, if the
lean is payable in installments, or the amount due at maturity. The Borrowers
may make advance payments in any amount and at any time without penalty. 

 

 

Prepayments
shall, at the option of the Lender, (a) be held by the Lender and then
applied to installments of principal and interest next scheduled to mature in
the order of maturity (b) be immediately applied to payment of principal
then outstanding, resulting in a reamortization of the remaining balance of the
loan over the remaining term under the existing payment plan and in a
corresponding reduction in the amount of future installments of principal end
interest, or (c)  be immediately applied to payment of principal then
outstanding, with, if en amortized loan, a corresponding reduction in the
number of future installments of principal and interest in the inverse order of
maturity, thus discharging the loan at an earlier date; provided, in any event,
the Lender may, at its option, first apply any such prepayments to the payment
of interest accrued to the date of prepayment.

PERSONAL PROPERTY AND FIXTURES: The following subsections (1) and
(2) including the definitions apply, in addition, only if the collateral
described on Promissory Note/Loan Agreement, and each addendum thereto, is
personal property or fixtures:

(1) 
Obligations and Collateral. The
Borrowers grant to the Lender as security for the payment and performance of
this loan and the other Obligations a security interest in all of the Borrowers’
rights, title, and interest in the Collateral, including all rights to transfer
an interest in the Collateral. “Obligations” means this loan and all other
loans and advances by the Lender except any loan to which a Basic Membership
and Lending Relationship Agreement (Rural Residence /Country Living Loans)
applies including: (a) existing and future indebtedness, liabilities, and
other obligations of the Borrowers to the Lender of any kind, absolute or
contingent, due or to become due, arising out of existing or future credit
granted by the Lender to the Borrowers, or any one or more of them, and all
extensions and renewals thereof from time to time: and (b) all costs
incurred by the Lender in enforcing its rights under this document with
interest, including attorneys fees end legal costs.  “Collateral” means (a) the property
described on Promissory Note/Loan Agreement and each addendum thereto; (b) all
additions, accessions, replacements, and substitutions of the Collateral and
property of similar type or kind now owned or hereafter acquired by the
Borrowers; and (a) to the extent not included in (a) or (b) as
original Collateral, all products and proceeds of the Collateral. If the
Collateral includes crops now growing or to be grown in North Dakota, the
following provision is part of this document:

This security agreement covers crops now growing. This
security agreement also covers future crops to be grown in the current year or
any year hereafter.

   The Borrowers agree to deliver upon the
request of the Lender such additional or corrected documents, drafts or
instruments as the Lender may deem necessary at any time.

   (2) Warranties
end Agreements: The Borrowers warrant and agree that:

      (a) The Borrowers are the absolute
owners of the Collateral free from any encumbrances, liens, security interests,
or equity interests, except for the security interest granted herein and except
as disclosed by the Borrowers to the Lender in writing.

      (b) The Borrowers shall: (1) care
for the Collateral and not permit its value to be impaired; (2) keep the
Collateral free from all encumbrances, liens, and security interests, other
than those created or expressly permitted herein; (3) defend the
Collateral against all claims and legal proceedings by persons other than the
Lender; (4) pay and discharge when due all taxes, license fees, levies,
end other charges upon the Collateral; and (5) immediately inform the
Lender in writing of any change in Borrowers’ address or the location of the
Collateral, Loss of or damage to the Collateral shall not release the Borrowers
from any of the Obligations. Upon demand, the Borrowers will provide additional
collateral acceptable to the Lender.

      (c) At the Lender’s request, the
Borrowers shall keep all Collateral and the Lenders interest in it insured
under policies naming the Lender as loss payee, with provisions, coverages,
amounts, end by insurers satisfactory to the Lender, and the Borrowers shall
furnish Lender satisfactory evidence of such insurance.

      (d) The Borrowers shall pay all
expenses which are permitted to be recovered from the Borrowers by applicable
law and, upon request, take any action reasonably deemed advisable by the
Lender to preserve the Collateral or to establish, determine the priority of, perfect,
continue as perfected, preserve, enforce or terminate the Lender’s rights and
interest in the Collateral.

      (e) The Lender is authorized to
examine the Collateral at reasonable times.

      (f) The Borrowers shall not dispose
of any of the Collateral without the authorization of the Lender and, except as
otherwise agreed to in writing by the Lender, shall apply the proceeds of all
dispositions of the Collateral to payment of this loan.

   (g) The Borrowers understand that the
unauthorized disposition of Collateral with intent to defraud the Lender
constitutes a federal criminal offense.

   (h) The Borrowers hereby authorize the
Lender to file all financing statements describing the Collateral, and all
amendments thereto, in any offices as the Lender, in its sole discretion, may
determine. The Borrowers hereby also authorize the Lender to file all effective
financing statements describing the Collateral pursuant to 7 U.S.C. Section 1631,
and all amendments hereto, in any offices as the Lenders, in its sole
discretion, may determine.

    (i) If the Collateral includes federal
or state government program entitlements or payments, the Borrowers shall
execute and deliver to the Lender all assignments, transfers, and other
documents required by the Lender to transfer, convey, and assign to the Lender
all such federal and slate government program entitlements, payments, rights to
payment whether or not earned by performance, accounts, general intangibles,
and benefits.

   (j) All terms in this Agreement that
are defined in the Uniform Commercial Code, as enacted in the stats in which
Lender’s office originating this Loan is located and as amended from time to
time (“UCC”), shall have the meanings set forth in the UCC. The meaning of a
term hereunder shall automatically change on the affective date of each
amendment to the definition of such term in the UCC.

   (k) For each Borrower that is not an
individual, the legal name of each such Borrower is as set forth in the Note or
an addendum thereto. None of the Borrowers have used any trade name, assumed
name, or other name except those sat forth in the Note or an addendum thereto,
The Borrowers shall give the Lender written notice at least 30 days before the
date of (1) any change in any Borrowers name or (2) any use by any
Borrower of another name.

   (l) If any of the Borrowers is a
Registered Organization, as that term is defined in the UCC, all information
provided by the Borrowers to the Lender concerning the state(s) of
organization for the Borrowers is true, accurate, and complete. None of the
Borrowers shall change its state of organization without the prior written
consent of the Lender. Borrowers shall provide the Lender with written notice
at least 30 days before the date any Borrower date any action to change its
state of organization.

   (m) If any of the Borrowers is an
individual or an entity that is not a Registered Organization, all information
provided by the Borrowers to the Lender concerning the address of an individual
Borrower’s residence or the address of the chief executive office of an entity
that is not a Registered Organization is true, accurate, and complete. None of
the individual Borrowers shall change that address of residence without
providing written notice to the Lender at least 30 days before the effective
date of such address change. None of the Borrowers that are entities that are
not Registered Organizations shall change that address of the chief executive
office without providing written notice to the Lender at least 30 days before
the effective date of such address change.

   (n) To the extent that the Borrowers
use proceeds of the Loan extended by the Lender to purchase Collateral,
Borrowers’ repayment of the Loan shall apply on a “first-in-first-out” basis so

 

 

that
the portion of the Loan used to purchase a particular item of the Collateral
shall be paid in the chronological order the Borrowers purchased the
Collateral.

FINANCIAL RECORDS: The Borrowers agree to
maintain complete and accurate financial books and records for Borrowers’
business, permit access by the Lender and to provide periodic financial
information as requested by Lender in a form acceptable to Lender.

PAYMENTS BY LENDER: The Lender is authorized
but not obligated to pay the following items and charge them to the loan with
internet at the rate(s) then applicable to this loan: (a) amounts
required to pay prior liens on the Collateral; (b) the cost of insurance
carried by the Borrowers in connection with this loan or any financially
related service offered by or through the Lender; (c) appraisal and title
evidence costs, recording and filing fees, and similar items; (d) amounts
required for the Borrowers to acquire and maintain stock or participation
certificates in the Lender or the Lenders parent association, as applicable;
and (a) any accrued interest hereunder that is not paid when due.

EVENTS OF DEFAULT:  Each of the following constitutes a default
by Borrowers under this document (a) the failure to perform any warranty
or agreement contained in this document or in any instrument securing payment
of this loan or related to this loan; (b) default under any other
promissory note executed by the Borrowers, or any one or more of them, and
payable to the Lender except any note to which a Basic Membership and Lending
Relationship Agreement (Rural Residence/Country Living Loans) applies; (c) default
under any lease executed by the Borrowers, or any one or more of them, under
which the Lender is the Lessor, and, it shall also be an event of default under
this document if an event of default occurs on any other loan or lease that any
of the Borrowers have with either the Lenders parent association or any
subsidiaries of the Lender’s parent association; (d) any statement or
report furnished by the Borrowers to the Lender is false in any material
respect; (e) any Collateral is lost, stolen, substantially damaged
destroyed, or, without the Lender’s consent, sold or encumbered; (f) any
of the Borrowers dies, is dissolved, declares insolvency, is declared
insolvent, or is the subject of any proceeding under any bankruptcy or
insolvency law; or (g) the Lender, in good faith, deems itself insecure or
determines that the prospect of payment of this loan or the prospect of
performance of this or any other instrument securing this loan or relating to
it is impaired.

LENDER’S REMEDIES: Lender, in addition to
other rights provided in this document or by law or agreement, may do any one
or more of the following if Borrowers default under this document; (a) declare
this loan and any or all other loans to Borrowers or any one or more of them
(except any loan to which a Basic Membership and Landing Relationship Agreement
(Rural Residence/Country Living) applies) immediately due end payable; (b) as
to Collateral which is personal property or fixtures, exercise all the remedies
of a secured party under the Uniform Commercial Code including without
limitation: (1) without notice to the Borrowers or judicial process
peaceably enter upon any premises where the Collateral is located, take possession
of it and remove it from the premises; (2) require the Borrowers to
assemble the Collateral and make it available to the Lender at a place
designated by Lender which is reasonably convenient to both parties; end (3) use
and occupy the Borrowers’ premises to care for livestock collateral. Crops are
perishable and may decline speedily in value and the Lender at Borrowers’
expense may care for and harvest the crops and dispose of them at private sale;
(4) require Borrowers to reimburse the Lender for expenses incurred by the
Lender in protecting or enforcing us rights under this document, including
without limitation reasonable attorney’s fees and legal expenses when permitted
by law, (5) After deduction of expenses, the Lender may apply the proceeds
of disposition to the Obligations in the order and amounts it elects.

ASSIGNMENT OP LOAN: The Lender may not assign
or otherwise transfer this loan to any party other than Agribank, FCB and its
successors (the “Bank”), whether absolutely or as collateral security and
whether in the ordinary course of business or otherwise, without the express
written consent of the Bank. If this loan is assigned or otherwise transferred
to the Bank or another institution chartered pursuant to the provisions of the
Farm Credit Act of 1971, as amended, (“Act”) the interest rate hereunder may be
established by such institution in accordance with the provisions of this
document. If this loan is assigned or transferred to a party not chartered
under the Act, notwithstanding any contrary provision in this document, in the
absence of maturity or acceleration, the following apply:

   (a) If this is a Variable Rate loan or
an Adjustable Rate Operating RLOC, adjustments in the interest rate will be
made only on the dates occurring at successive intervals of one year each after
the first day of the month and year of such assignment based upon an index and
margin. The index will be the weekly average yield on United Stales Treasury
securities, as made available by the Federal Reserve Board, adjusted to a
constant maturity of one year.

   (b) If this is an Adjustable Rate
Capital RLCC or Adjustable Rate it loan, the interest rate will continue to be
adjusted on the dates and intervals described therein based upon an index and
margin. The index will be the same as for a Variable Rate Loan, except it will
be adjusted to a constant maturity of a length equal to the length of the
interval between adjustments specified above (if U.S. Treasury yield figures
are not available for this length, the U.S. Treasury yield figures which are
available for the closest length of time which is shorter than the interval
between adjustments will be used).

   (c) For interest rate adjustments under
(a) and (b), the margin will be the amount by which the interest rate in
effect for this loan at the time of the assignment, in the absence of default,
exceeds the index that would have been effective for the date that this
interest rate was established for this loan (the last previous repricing date).
The new interest rate will be calculated by adding the margin to the applicable
current index and rounding the total to the nearest one-eighth of one percent,
subject however, to the provision herein for a higher default rate. The current
index will be the most recent index available as of 45 days before the date the
Interest rate is to be adjusted, if the applicable index is not available, the
Lender will select a new index which is based upon comparable information. The
interest rate shall never exceed the rate permitted by applicable law.

   (d) If this is an Adjustable Rate Prime
Rate Based loan, the margin that is used for interest rate adjustments shall
remain fixed for the remaining term, of the loan at the margin amount that is
in effect at the time of the assignment.

WAIVER: The Borrowers and other parties to this
transaction (except the Lender), and each of them, whether principal, surety,
guarantor, endorser, or other party, agree to be jointly and severally bound
and, further, waive demand, protest, and notice of demand, protest, or
nonpayment, and agree that the liability of each shall be unconditional without
regard to the liability of any other party and shall not be affected by any
indulgence, extension or extensions of time, renewal, waiver, release of any
party or of any Collateral, or other modifications granted or consented to by
the Lender. The rights and powers granted to the Lender hereunder shall not,
nor shall any provision hereof be waived except in writing signed by the
Lender, and the provisions hereof shall not be modified, limited, or waived by
any prior or subsequent course of dealing between the parties or between the
Borrowers and third parties or by any usage of trade. To the extent the Bank
gives or has given value to the Lender in reliance hereon, either by way of
loan or discount, the Borrowers hereby waive any and all other defenses or
right of offset which the Borrowers or any of then may or might have against
the Lender when this document is held by the Bank, its collateral custodian, or
the successors or assigns of either.

APPOINTMENT OF AGENT: Each of the Borrowers
hereby appoints each of the other Borrowers as agent for the purposes of 

 

 

this
loan and, if applicable, the Obligations and agrees that loan funds, dividends,
stock retirement proceeds, and other distributions may be disbursed to or by
order of any one or more of them. This appointment shall continue until written
notice of termination is received by the Lender.

ASSOCIATION MEMBERSHIP: The Borrowers agree to
purchase and maintain stock or participation certificates in the Lender or the
Lender’s parent association, as applicable, in amounts as may be required from
time to time under the Capital Plan adopted by the Board of Directors pursuant
to applicable Bylaws.

MODIFICATION: No modification of this
document or any related document shall be enforceable unless in writing and
signed by the party against whom enforcement is sought. Oral agreements or commitments to loan money, extend
credit, or to forbear from enforcing repayment of a debt including promises to
extend or renew such debt are not enforceable, regardless of the legal theory
upon which it is based that is in any way related to the credit agreement. To
protect you (the Borrowers) and us (the Lender) from misunderstanding or disappointment,
any agreements we reach covering such matters are contained in this writing,
which is the complete and exclusive statement of the agreement between us,
except as we may later agree in writing to modify it.

REPORTING: Lender, its agents, successors
and assigns may report Borrowers’ names and information regarding this loan and
all of Borrowers’ past and future loans to credit reporting agencies.

FOR ILLINOIS AND MISSOURI LOANS ONLY: Unless you
(the Borrowers) provide us (the Lender) with evidence of the insurance coverage
required by your agreement with us, we may purchase insurance at your expense
to protect our interests in your Collateral. This insurance may, but need not,
protect your interests. The coverage that we purchase may not pay any claim
that you make or any claim that is made against you in connection with the
Collateral. You may later cancel any insurance purchased by us, but only after
providing us with evidence that you have obtained insurance as required by our
agreement, if we purchase insurance for the Collateral, you will be responsible
for the costs of that insurance, including interest and any other charges we
may impose in connection with the placement of the insurance, until the
affective date of the cancellation or expiration of the insurance. The costs of
the insurance may be added to your total outstanding balance or
obligation.  The costs of the insurance
may be more than the cost of insurance you may be able to obtain on your own.

POWER OF ATTORNEY: Borrowers hereby irrevocably
appoint the Lender as Borrowers’ attorney-in-fact to act for the Borrowers with
full authority in the place and name of the Borrowers to take any action and to
execute any instrument which the Lender may deem advisable to accomplish the
purposes of this Agreement, including authority (a) to endorse, collect,
sue for, compromise, and receive any drafts, instruments, documents, or moneys
due in connection with the Collateral; (b) to file any claims or lake any
action or institute any proceedings which the Lender may deem desirable for the
collection of any of the Collateral or otherwise to enforce the rights of the
Lender with respect to any of the collateral; (c) to disburse funds
including paying insurance premiums, taxes, liens, end other costs of
preserving the Collateral; and (d) to establish, determine priority
of,  perfect, continue as perfected,
preserve, enforce, or terminate the Lenders rights and interests under this
Agreement.  The Lender may charge its
expenses of doing so to any of the Obligations and the Borrowers shall pay them
upon demand with interest from the date each expense is incurred at the rate in
effect on the date each expense is incurred on the applicable Obligation.

AUTHORIZATION FOR ACCESS TO INFORMATION: Borrowers
acknowledge and agree that the verification or reverification of any
information, whether contained in the Borrowers’ loan application or in any
other manner supplied by the Borrowers to the Lender in connection therewith,
may be made at any time by the Lender, its agents, successors, or assigns,
either directly or through a credit reporting agency, from any source whether
named in the Borrowers’ loan application or otherwise provided to the Lender by
the Borrowers.

BORROWERS’ PRIVACY DISCLOSURE: Your privacy is important
to us. We want you to know that we hold your financial and other personal
information in strict confidence. Since 1972, Farm Credit Administration
regulations have forbidden the directors and employees of Farm Credit
Institutions from disclosing personal borrower information to others without
your consent We do not sell or trade our customers’ personal information to
marketing companies or information brokers.

      FCA rules allow us to disclose
customer Information to others only in these situations:

      — We may give it to another Farm Credit
institution that you do business with.

      — We can be a credit reference for you
with other lenders and provide information to a credit bureau or other consumer
reporting agency.

      — We can provide information in certain
types of legal or law enforcement proceedings.

      — FCA examiners may review loan files
during regular examinations of our association.

      — If one of our employees applies to
become a licensed real estate appraiser, we may give copies of real estate
appraisal reports to the State agency that licenses appraisers when required.
We will first remove as much personal information from the appraisal report as
possible.

      As a member/owner of this institution,
your privacy and the security of your personal information are vital to our
continued ability to serve your ongoing credit needs.

UNAUTHORIZED DISPOSITIONS AND FALSE STATEMENTS: Borrowers
understand that it is a federal crime punishable by fine, imprisonment, or both
to knowingly make any false statements in the Borrowers’ loan application as
applicable under the provisions of Title 18, United Stales Code, Section 1014,
Borrowers also understand that any unauthorized disposition of Collateral or
the making of any false statement or report to the Lender in connection with a
loan could result in civil and criminal consequences to the Borrowers as
applicable under the provisions of Title 18, United States Code, Sections 656
and 1014.

PARTIES BOUND: Each person signing the
Note, other than the Lender, is a Borrower. The Obligations of all Borrowers
are joint and several, and all Borrowers hereby acknowledge  receipt of all proceeds of the Loan. This
Agreement benefits the Lender, its successors, and assigns. This Agreement
shall bind the Borrowers, the Borrowers’ heirs, personal representatives,
successors, and assigns, and all persons and parties who become bound as a
Borrower under this Agreement.

FEES CHARGED: Lender has authority to
charge and Borrowers agree to pay any reasonable fees and costs charged by
Lender to amend the terms of this Loan, Borrowers give Lender authority to
advance such fees and costs and charge them to the loan. If Borrowers do not
immediately repay such advance, interest at the default rate shall begin to
accrue on the amount advanced. The absence of express authority in this
Promissory Note/Loan Agreement to charge a specific fee or cost to Borrowers
shall not be construed as a prohibition on the charging of such fees or costs.

 

 

 

	
  Assn.

  	
   

  	
  B.O.No.

  	
   

  	
  CIF No.

  	
   

  	
  Loan No.

  	
   

  	
  Product
  Code

  	
   

  	
  Coll.
  Code

  	
   

  	
  Customer
  Name

  	
   

  	
  Commitment
  Amount

  
	
  72

  	
   

  	
  65

  	
   

  	
  1895500

  	
   

  	
  1192413700

  	
   

  	
  1011

  	
   

  	
  1

  	
   

  	
  GREAT PLAINS ETHANOL

  	
   

  	
  $15,000,000.00

  

 

EFFECTIVE INTEREST
RATE AND DISCLOSURE

DATE: February 20,
2008

 

The disclosures on this page and
made pursuant to Section 4.13(a) of the Farm Credit Act of 1971, as
amended, 12 U.S.C. 2199, and are not part of the contractual agreement between
the Borrowers and the Lender.  This Loan
is not subject to the Truth-in-Lending (TIL), 15 U.S.C. 1601 et seq., and the
effective rate of interest described herein is not to be construed as the
equivalent of the annual percentage rate which would be disclosed on a loan
subject to TIL.

 

	
  Stated Interest Rate

  	
   

  	
  Effective Interest Rate

  	
   

  
	
  The
  rate of interest currently

  	
   

  	
  The
  stated rate of interest

  	
   

  
	
  applicable
  to the Loan

  	
   

  	
  adjusted
  to take into account

  	
   

  
	
   

  	
   

  	
  loan
  origination charges and

  	
   

  
	
   

  	
   

  	
  any
  purchase of stock

  	
   

  
	
  7.37%

  	
   

  	
  6.50%

  	
   

  

 

Except with respect to
stock protected under Section 4.9A of the Farm Credit Act of 1971, as
amended, stock that is purchased in the lender or the Lender’s parent
association, as applicable, is a risk and can only be retired at the discretion
of the association board.  Effective
Interest Rate is calculated as if stock will never be retired.  If stock is retired, as is customary, the
Effective Interest Rate would be lower than the percentage stated above.  It is generally the association’s practice to
retire stock when a Borrower’s loan balance is paid in full or upon full
payment of all of a Borrower’s loans, provided the association’s practice to
retire stock when a Borrower’s loan balance is paid in full or upon full
payment of all of a Borrower’s loans, provided the association has an adequate
capita position.  At this time, the association’s
capital exceeds the regulatory capital requirements.

 

INTEREST RATE PLAN:

(Adjustable Rate LIBOR
Based) The Interest rate is based on an index plus a margin and may increase
during the term of this transaction if there is an increase in the One Month
London Interbank Offered Rate (“One Month LIBOR”) and/or margin. The Index is
the One Month LIBOR published on the applicable date in the Wall Street
Journal. The margin is set by the Lender and pan change at successive intervals
of 1 year(s) each.

 

In the event of default
at any time during the term of the Loan, however, and at maturity, the Loan
will be subject to a higher rate of interest.

 

ADJUSTMENT FACTORS: The
factors which the Lender takes Into account in making adjustments to the
Interest rate on the Loan (except fixed rate loans and adjustments based on
changes in the prime Index or LIBOR Index) include cost of funds, operating
expenses, provision for loan  losses,
capital requirements, capital sharing, nonearning assets and competitive elements
of the financial environment. The factors considered by the Lender may change
during the term of the Loan.

 

REPRESENTATIVE EXAMPLES:
These examples show the effect that changes in the stock requirement and loan
origination fees would have on the effective interest rate of a representative
loan with customer level stock. A $101,000 amortized loan, including loan
origination charges of $1,000 amortized over a 5-year term with level annual
payments, and a stated interest rate of 10% would have an affective interest
rate of 10.39%.  If the loan amount was
to remain at $101,000, but the loan origination charges increase to $1,500, the
effective interest rare would be 10.59%

 

 

 

LOAN OPTIONS: The Lender
may offer secured and unsecured short- and intermediate-term loans including
lines of credit with maturities up to 7 years or, in some instances, 10 years,
installments can be paid monthly, quarterly, semi-annually, annually, or
according to other  irregular repayment
plans as may be agreed upon by the Borrowers and the Lender. Interest rates may
be variable at the option of the Lender, fixed for a specified period and then
variable adjustable at specified intervals with the rate determined either at
Lender’s discretion or in   accordance
with the prime index or LIBOR Index, or fixed for the term of the Loan. Some
loan options are subject to certain conditions and are not available to all
borrowers for all purposes. In addition, loan options, including Interest
rates, may vary by location and time period. The availability of any loan
option is subject to change at any time at the discretion of the Lender. If the
Lender is an ACA or FLCA, Lender also offers long-term real estate loans with
maturities of 5 to 40 years secured by agricultural real estate or rural homes,
interest rates may be fixed for the term of the loan, variable at the option of
the Lender, or adjustable at   specified
intervals with the rate adjusted either at Lender’s discretion or in accordance
with   Federal Farm Credit Banks Funding
Corporation rates or the prime Index or LIBOR Index. These reel estate mortgage
loan options are subject to the same conditions, limitations, and varying
availability as mentioned above for the short- and intermediate-term loans.

 

BORROWER
RIGHTS:

1.                                       At loan closing, Borrowers shall receive
copies of loan documents signed by Borrowers. Upon request thereafter Borrowers
are entitled to copies of documents signed or delivered by Borrowers, copies of
Lender’s or the Lender’s parent association’s charter and bylaws, as applicable,
and copies of Lender’s appraisals of the collateral.

 

2.             If the loan has an adjustable or variable Interest rate,
Borrowers will be notified in writing of any change in interest rate.  The notice will be given not later than any
deadline date required by regulations promulgated by the Farm Credit
Administration.

 

3.             If Borrowers’ Loan is in a differential interest rate
program, Borrowers may request that Lender review the Loan to verify that the
proper interest rate category has been assigned, and also to explain in writing
to Borrowers the basis for the interest rate charged and how the credit status
of the Borrowers may be improved to receive a lower interest rate on the Loan.

 

4.             If Lender places Borrowers’ Loan in nonaccrual status
and such action results in an adverse action being taken against Borrowers
(such as revocation of any undisbursed loan commitment), the Lender shall
notice, Borrowers in writing of such change in status and the reasons
therefor.  If Borrowers were not
delinquent in any payments under the Loan at the time and Borrowers’ request to
have the Loan reinstated to accrual status is denied, Borrower may obtain a
review of such denial before the Lender’s credit review committee.

 

5.                                       Lender may not commence foreclosure or
other legal action against any collateral securing the Loan unless at least 45
days before such commencement Lender has provided Borrowers with a copy of
Lender’s restructuring policy and forms on which Borrowers may submit a request
for restructuring. If Borrowers’ request for restructuring is denied, Borrowers
may appeal the denial to Lender’s credit review committee, and may also obtain
an independent appraisal of any collateral (at Borrowers’ expense) for
consideration by the credit review  
committee.

 

6.             If Lender acquires agricultural real estate by
enforcement of Lender’s lien, when Lender elects to sell or lease the acquired
property, Borrowers shall have a right of first refusal on the property. Lender
shall notify Borrowers In writing and Borrowers may purchase or lease the
property, as appropriate, at the appraised fair market value or fair rental
value, or if the property is sold by public offering, at the price of the
highest qualified bid.

 

If you have any questions
concerning the information contained on this disclosure page, please contact
your servicing office.

 

 

 

	
  ASSN.
  NO.

  	
   

  	
  B.O.NO.

  	
   

  	
  CIF NO.

  	
   

  	
  EXHIBIT TO SECURITY
  AGREEMENT

  	
   

  
	
  72

  	
   

  	
  65

  	
   

  	
  1895500

  	
   

  	
  DESCRIPTION OF
  COLLATERAL - GENERAL

  	
   

  

 

 

1.                                       Description of
Collateral. The
Collateral referred to in the Security Agreement dated February 20, 2008
by the undersigned Debtors to AGCOUNTRY FARM CREDIT SERVICES, PCA (“Secured
Party”) includes, whether now owned or later acquired, the property described
opposite the box(es) checked below and the property described at Sections 1.9
through 1.13.

 

                                                1.1                                 o                                    All crops growing, grown or to be grown
on real estate in the State(s) of ___________________________.  The real estate is more specifically
described as follows (if required by state law):

                                                                    ACRES            QTR.     SEC.    
TWP.     N/S      
RNG.     E/W       
     COUNTY

                                                Tr. 1        ___________      _____    _____    _____    _____    _____    _____    __________________

                                                Tr. 2        ___________      _____    _____    _____    _____    _____    _____    __________________

                                                Tr. 3        ___________      _____    _____    _____    _____    _____    _____    __________________

                                                Tr. 4        ___________      _____    _____    _____    _____    _____    _____    __________________

                                                Tr. 5        ___________      _____    _____    _____    _____    _____    _____    __________________

 

If the box at 1.1 above
is checked and crops will be grown in North Dakota, the following applies:

THIS SECURITY AGREEMENT
COVERS CROPS NOW GROWING. THIS SECURITY AGREEMENT ALSO COVERS FUTURE CROPS TO
BE GROWN IN THE CURRENT YEAR OR ANY YEAR HEREAFTER.

 

                                                1.2                               o                                    All harvested crops end all processed
crops, whether or not produced by Debtors.

 

                                                1.3                               o                                    All livestock end poultry.

 

                                                1.4                               o                                    All feed, seed, fertilizer, insecticides,
herbicides and other agricultural chemicals and supplies.

 

                                                1.5                               o                                    All general intangibles.

 

                                                1.6                               o                                    All equipment, all spare parts and
special tools for such equipment, all motor vehicles and all fixtures.

 

                                                1.7                               o                                    All contract rights, chattel paper,
documents, accounts, end general intangibles, whether now owned or hereafter
acquired by Debtors, including, but not limited to, all entitlements, rights to
payment, end payments (in whatever form received, including, but not limited
to, payments in cash or in kind) under any current or future state or federal
governmental programs, including, but not limited to, governmental agricultural
diversion programs, governmental agricultural assistance programs and the
United Slates Department of Agriculture Farm Service Agency (FSA) Feed Grain
Program; and all proceeds of the foregoing.

 

                                                1.8                                 x                                  Property specifically described here:

All goods including
inventory, equipment and software; all accounts and general intangibles,
instruments, investment property, documents, chattel paper, and letter of
credit rights; whether now owned or alter acquired; all accessions, additions,
replacements, and substitutions; all records of any kind relating to any of the
foregoing; and all proceeds.

 

                                                1.9                                                                                 Association Stock. 
Debtors’ stock, participation certificates, equity reserve and allocated
surplus in the Secured Party or its parent association, as applicable, its
successors and assigns.

 

                                                1.10                                                                           Proceeds. 
To the extent not included in any of the subparagraphs herein as
original Collateral, all proceeds of the Collateral. (Debtors are NOT
AUTHORIZED TO SELL or 

 

 

 

dispose or any
Collateral unless authorized in the Security Agreement or in a writing signed
by Secured Party.)

 

                                                1.11                                                                           Documents. 
All documents of title, warehouse receipts, weight receipts, scale
tickets, storage contracts (including CCC contracts) and deficiency payments
covering or arising from any Collateral.

 

                                                1.12                                                                           Additions. 
All additions, accessions, replacements and substitutions of or to any
Collateral and sit property of similar type or kind, including all offspring of
livestock and poultry.

 

                                                1.13                                                                           Products. 
All products of crops, livestock and poultry given as Collateral
including eggs, milk and wool and all products into which any of the Collateral
has been or shall later tie manufactured, processed or assembled.

 

2.                                       The Collateral described in this Exhibit is
in addition to property described in additional Exhibits to the Security
Agreement, if any.  To the extent the
Collateral described in this Exhibit is similar to, or after-acquired
property, products, or proceeds of existing Collateral, its inclusion in this Exhibit is
for the purpose of more specifically identifying the Collateral. This Exhibit shall
in no way affect the priority of the security interest of Secured Party in
existing Collateral or limit the parties’ intention that all similar and
after-acquired property, products, and proceeds of the Collateral are also
Collateral under the Security Agreement.

 

Dated: February 20,
2008

 

GREAT PLAINS ETHANOL LLC

dba Poet Biorefining -
Chancellor

a South Dakota Limited
Liability Company

 

	
  By:

  	
  /s/ Darin Ihnen

  	
   

  
	
  DARIN IHNEN, CHAIRMAN

  

 

 

 

	
  ASSN.
  NO.

  	
   

  	
  B.O.NO.

  	
   

  	
  CIF NO.

  	
   

  	
   

  
	
  72

  	
   

  	
  65

  	
   

  	
  1895500

  	
   

  	
  SECURITY
  AGREEMENT

  

 

1.                                       GRANT OF SECURITY
INTEREST. For
value received, the undersigned Debtor, whether one or more, grants to
AGCOUNTRY FARM CREDIT SERVICES, PCA (‘Secured Party”), whose address is 1900
44th ST S, P0 BOX 6020, FARGO, NORTH DAKOTA 58108-6020, a security interest in
all of the Debtor’s rights, title, and interest in the property described in Section 2,
including all rights to transfer an interest in the Collateral (“Collateral’),
to secure the payment and performance of the obligations described in Section 5
(“Obligations”).

2.                                       COLLATERAL DESCRIPTION.  The Collateral is the property described in
one or more Exhibits to this Agreement which are by this reference incorporated
into this Agreement.

3.                                       OBLIGATIONS SECURED. “Obligations” means:(a) all
existing end future loans, advances, indebtedness and payment and performances
obligations owed or owing to Secured Party arising out of existing or future
credit granted by Secured Party to Debtor (or any of them, if more than one),
to Debtor and another, to another guaranteed or endorsed by Debtor, or to
another designated by Debtor, whether direct or indirect, absolute or
contingent, including both consumer and commercial credit, and both long-term
and short-term credit; and (b) all existing end future payment and
performance obligations of Debtor arising out of this Agreement; and (c) all
casts end expanses incurred by Secured Party in protecting or enforcing its
rights under this Agreement with interest from the date incurred by Secured
Party’s applicable loan rate on the date incurred, including, to the extent
permitted by law, attorneys’ fees and legal costs end expenses.

4.                                       DEBTOR’S DUTIES
REGARDING COLLATERAL.

                                                4.1                                 Prohibition on
Disposition of Collateral by Debtor. DEBTOR SHALL NOT SELL, STORE OFF-FARM,
LEASE OR OTHERWISE DISPOSE OF ANY COLLATERAL EXCEPT AS FOLLOWS:

a)  Subject to any restrictions stated in an
addendum to this Agreement and to Secured Party’s continuing security interest
in all proceeds and accounts arising from permitted disposition of Collateral,
Debtor, before default, may in a commercially reasonable manner, (1) market
milk, (2) market eggs, end (3) use feed, crops end products of crops
as feed for Debtor’s livestock and poultry; or b) as specifically authorized in
a writing signed by Secured Party or in an addendum to this Agreement, Secured
Party reserves the right, in its sole discretion, to revoke or modify any
permission given Debtor to dispose of Collateral.

                                                4.2                                 Ownership Warranty. Debtor warrants that Debtor is the
absolute owner of all Collateral free of all interests, liens, encumbrances,
options and security interests except (a) Secured Party’s security
interest and (b) those disclosed to Secured Party by Debtor in writing.

                                                4.3                                 Residence end Location. Debtor’s residence (If Debtor is e
Registered Organization, the State of Organization) is in the state shown above
Debtor’s signature. The Debtor has provided the Secured Party with information
concerning the location of the Collateral and the Debtor warrants to the
Secured Party that such information is true, accurate, and complete. Except
with the prior written consent of tile Secured Party, the Debtor shall not
remove any Collateral from any location as provided to the Secured Party.
Debtor shall immediately inform Secured Party in writing of any change in
Debtor’s address or the location of the Collateral.

                                                4.4                                 Records and Reports. Debtor shall keep permanent records of
all material information on the acquisition, maintenance, identification and disposition
of all Collateral in a form acceptable to Secured Party. Secured Party shall
have the right to examine end copy these records at reasonable times and
places. Debtor’s records are kept at Debtor’s present residence and shall not
be removed from the state of Debtor’s present residence.  Debtor agrees to furnish Secured Party with
written reports on the Collateral with content and at times as Secured Party
may reasonably request.

                                                4.5                                 Maintenance of
Collateral.
Debtor shall; (a) care for the Collateral in accordance with good
agricultural practices and not permit its value to be impaired; (b) keep
it free from all liens, encumbrances end security interests (other than those
created or expressly permitted by this Agreement); (c) defend it against
all claims and legal proceedings by persons other than Secured Party; (d) pay
end discharge when due all taxes, license fees, levies and other charges upon
it; (e) not permit it to become a fixture or an accession to other goods
except as specifically authorized in a writing signed by Secured Party; and (f) not
permit it to be used in violation of any law, 

 

 

 

regulation or
policy of insurance.  Loss of or damage
to the Collateral shall not release Debtor from any of the Obligations.

                                                4.6                                 Insurance. 
Debtor shall keep all Collateral end Secured Party’s interest in it
insured under policies with provisions, coverages, amounts and by insurers
satisfactory to Secured Party from time to time.  Debtor shall furnish Secured Party with
evidence of this insurance satisfactory to Secured Party.  At Secured Party’s request, Secured Party
shall be specifically named in an appropriate union or standard mortgage clause
endorsed on the policy. Debtor assigns and directs any insurer to pay to
Secured Forty the proceeds of this insurance end all premium refunds.  Debtor authorizes Secured Party to endorse in
Debtor’s name any instrument for such proceeds or refunds.  Secured Party shall have the option to apply
the proceeds and refunds to any of the Obligations, whether or not due, or to
restoration of the Collateral, returning any excess to Debtor.  Secured Party is authorized, in the name of
the Debtor or otherwise, to make, adjust and settle claims under any credit
insurance financed by Secured Party or any insurance on the Collateral and to
cancel the insurance after the occurrence of an event of Default.

                                                4.7                                 Inspection. 
Debtor shall permit and assist Secured Party to verify and inspect the
Collateral wherever located at reasonable times.

 

THIS AGREEMENT INCLUDES ALL THE PROVISIONS
ON ADDITIONAL PAGES OF THIS AGREEMENT. 
BY SIGNING, DEBTOR ACKNOWLEDGES THAT DEBTOR HAS READ ALL OF THESE
PROVISIONS AND HAS RECEIVED AN EXACT COPY OF THIS AGREEMENT.

 

Debtor’s State(s) of
Residence or Organization: ____________________    SOUTH DAKOTA

 

Dated: February 20,
2008

 

GREAT PLAINS ETHANOL LLC

dba Poet Biorefining -
Chancellor

a South Dakota LLC

 

	
  By:

  	
  /s/ Darin Ihnen

  	
   

  
	
  DARIN IHNEN, CHAIRMAN

  

 

 

5.                                     DEFAULT.

                                                5.1                                 Default by Debtor. Each of the following constitutes a
default under this Agreement by Debtor (“Default”): (a) Failure to pay
when due any principal, interest, advances, late charges, costs, attorneys’
fees or other charges incurred on any of the Obligations; (b) The sale or
other disposition of any of the Collateral when it is not authorized by this
Agreement; (c) Failure to perform or observe any warranty, agreement or
obligation contained in this Agreement or in any mortgage, deed of trust,
security agreement, loan application or any evidence of or document relating to
any of the Obligations; (d) Any warranty or information given to Secured
Party in connection with this Agreement or any of the Obligations is false in
any material respect when made; (e) Loss, theft, substantial damage,
destruction or encumbrance of any of the Collateral or the making of any levy,
seizure or attachment against it; (f) The acceleration of the maturity of
Debtor’s indebtedness to any ether creditor; (g) The death, dissolution or
termination of existence, insolvency, business failure, appointment of a receiver
for any property, assignment for the benefit of creditors, the commencement of
any proceeding under any, bankruptcy or insolvency laws, of, by, or against
Debtor or any guarantor or surety of Debtor; (h) Failure of any of Debtor’s
account debtors or obligors to make payment when due or to honor secured party’s
security interest; (i) The occurrence of any event which causes Secured
Party in good faith to believe that the Obligations are inadequately secured or
the prospect of payment, performance or realization on the Collateral is
impaired; or (j) A default under any lease executed by any Debtor under
which the Secured Party is the lessor or a default under any ether loan or
lease that any Debtor has with either the Secured Party’s parent association or
any subsidiaries of the Secured Party’s parent association.

 

 

 

                                                5.2                                 Secured Party’s Remedies. Secured Party, in addition to other
rights and remedies provided in this Agreement or in any evidence of or
document associated with the Obligations or provided by law, may do any one or
more of the following if a Default occurs under Section 5.1: (a) Declare
any or all Obligations immediately due and payable; (b) Refuse to make
advances under any commitment; (c) Exercise all rights and remedies or a
secured party under the  Uniform
Commercial Code; (d) Without notice to the Debtor or judicial process,
peaceably enter upon any premises where the Collateral is located, take
possession of all or any part of it, and remove it from the premises; (e) Require
Debtor at Debtor’s expense to assemble all or part of the Collateral as
directed by Secured Party and make it available to Secured Party at a place to
be designated by Secured Party which is reasonably convenient to both parties; (f) Sell,
lease or otherwise dispose of all or any part of the Collateral, without notice
to Debtor except as required by law, in one or more parcels at public or
private proceeding on such terms as Secured Party may deem commercially
reasonable; (g) Occupy and use the Debtor’s premises, pasturage, food
troughs and water to care for livestock Collateral; (h) Crops are
perishable and may decline rapidly in value end Secured Party at Debtor’s
expense may protect, cultivate, harvest, thresh and combine crops and sell them
at private sale; (i) Apply the proceeds of Debtor’s Association stock and
participation certificates to the Obligations in such order and at such times
as Secured Party shall determine: (j) Require Debtor to reimburse Secured
Party out of proceeds from the disposition of Collateral or otherwise or
expenses incurred by Secured Party to protecting or enforcing its rights under
this Agreement. These expenses include the expenses of retaking, holding,
preparing for sale or other disposition, and selling or disposing of the Collateral
and, to the extent not prohibited by law, attorney’s fees and legal
expenses.  Secured Party may charge these
expenses to any of the Obligations and Debtor shall pay them upon demand with
interest from the data incurred at the rate in effect on the date incurred on
the applicable obligation.  After
deduction of these expenses, Secured Party may apply the proceeds of
disposition to the Obligations in the order and amounts it elects; (k) If
there is any security or collateral other than the Collateral described in this
Agreement for any or the Obligations, then Secured Party may proceed upon the
Collateral and the other security and collateral either concurrently or
separately in any order it chooses.

                                                5.3                                 Commercially Reasonable. 
In addition to other means which are commercially reasonable: (a) commercially
reasonable notice is written notice sent to any address of Debtor given by
Debtor to Secured Party in conjunction with this Agreement at least 10 calendar
days (counting the day of sending) before the date or a proposed disposition of
Collateral; and (b) commercially reasonable means of disposition of
livestock include a sale through a livestock market and through a licensed
livestock sales company.

6.                                       MISCELLANEOUS
PROVISIONS.

                                                6.1                                 True Information. 
Debtor warrants that all information, statements and warranties given by
or on behalf of Debtor to Secured Party in connection with this Agreement or
the Obligations are true and correct.

                                                6.2                                 Collections. (a) At any time Secured Party may,
end Debtor shall upon request, notify Debtor’s account debtors and obligors on
instruments to make payment directly to Secured Party.  Secured Party may enforce collection of,
settle, compromise, extend or renew the indebtedness of such account debtors
and obligors. Unless this notification is given, Debtor, as agent of Secured
Party, shall collect accounts and instruments. (b) When required by
Secured Party, all proceeds of Collateral received by Debtor shall be held by
Debtor upon an express trust for Secured Patty, shall not be commingled with
any other funds or property of Debtor and shall be turned over to Secured Party
In precisely the form received (but endorsed by Debtor, if necessary for
collection) not later than the third business day following the date of receipt.
All proceeds of Collateral received by Secured Party directly or from Debtor
shall be applied against the Obligations in such order and at such time as
Secured Party shall determine.

                                                6.3                                 Maintenance of Security
Interest. To the
extent permitted bylaw, Debtor shall pay all expenses, and upon request take
any action reasonably deemed advisable by Secured Party, to preserve the
Collateral or to establish, determine priority of, perfect, continue perfected,
preserve, enforce or terminate Secured Party’s rights and interests under this
Agreement.

                                                6.4                                 Power of Attorney. Debtor hereby irrevocably appoints
Secured Party as Debtor’s attorney-in-fact to act for Debtor with full
authority in the place and name of Debtor to take any action and to execute any
instrument which the Secured Party may deem advisable to accomplish the
purposes 

 

 

 

of this Agreement,
including authority: (a) to endorse, collect, sue for, compromise and
receive any drafts, instruments, documents or moneys due in connection with the
Collateral; (b) to file any claims or take any action or institute any
proceedings which Secured Petty may deem desirable for the collection of any of
the Collateral or otherwise to enforce the rights of Secured Party with respect
to any of the Collateral; (c) to disburse funds including paying insurance
premiums, taxes, liens, and other costs of preserving the Collateral: end (d) to
establish, determine priority of, perfect, continue perfected, preserve,
enforce or terminate Secured Party’s rights and interests under this Agreement,
Secured Party may charge its expenses of doing so to any of the Obligations and
Debtor shall pay them upon demand with interest from the data incurred at the
rate in effect on the date incurred on the applicable Obligation.

                                                6.5                                 Unauthorized Disposition
and False Statements.  Debtor understands that the
unauthorized disposition of Collateral or making a false statement or report to
Secured Party in connection with a loan could result in civil and criminal
consequences to Debtor (Federal Statutes 18 U.S.C. 658, 1014).

                                                6.6                                 Waiver. 
The failure or delay of Secured Party to enforce any right shall not be
construed as a waiver of the right. 
Secured Party’s waiver of any default shall not constitute a waiver of
any prior or subsequent default.  Secured
Party waives only those rights specified in a writing signed by Secured
Party.  The provisions of this Agreement
shall not be modified or waived by any course of dealing or bade usage.

                                                6.7                                 Secured Party Not Liable. Secured Party has no duty to exercise
or to withhold the exercise of any of the rights and powers expressly or
implicitly granted to it in this Agreement and shall not be responsible for any
failure to do so or delay in so doing. 
Secured Party has no duty to protect, insure or realize upon the
Collateral.  Debtor releases Secured
Party from all liability for any act or omission relating to the Obligations,
the Collateral or this Agreement except Secured Party’s willful misconduct.

                                                6.8                                 Financing Statement. A carbon, photographic or other
reproduction of this Agreement or of a financing statement shall be sufficient
as a financing statement.

                                                6.9                                 Persons Bound. 
Each person signing this Agreement, other than the Secured Party, is a
Debtor. The Obligations of all Debtors are joint and several, and all Debtors
hereby acknowledge receipt or all proceeds of the Loan. This Agreement benefits
Secured Party, its successors, and assigns. This Agreement binds the Debtor,
the Debtor’s heirs, personal representatives, successors, and assigns, and all
parsons who become bound as a Debtor under this Agreement.

                                                6.10                           Agency. 
Until Secured Party is prospectively notified in writing by Debtor to
the contrary, Secured Party may rely upon the following: (a) If Debtor is
two or more individuals, the act or signature of any one of them shall bind
them all; (b) If Debtor is a partnership, each partner is fully authorized
to act for the partnership in all matters governed by this Agreement; (c) If
Debtor is a corporation, each officer is fully authorized individually to act
for and bind the corporation in all matters governed by this Agreement.

                                                6.11                           Cumulative Rights. At rights and remedies of Secured Party
in this Agreement are cumulative and are in addition to other rights and
remedies given in this Agreement or in any evidence of or document associated
with the Obligations or provided by law.

                                                6.12                           Termination. This Agreement shall not be made null
and void because at any particular time there is no outstanding secured
Obligation end no commitment to lend money, if at the time the parties are
contemplating additional loans or advances, it shall continue in effect for all
Obligations to Secured Petty arising prior to the filing of record of a UCC
Termination Statement covering all Collateral, Debtor instructs Secured Party
not to file a UCC Termination Statement until requested by Debtor.

                                                6.13                           Interpretation. 
This Agreement shall be governed by the laws of the state in which
Secured Party’s office originating the credit is located.  In this Agreement, “including” means “including
but not limited to” and indicates an illustrative and incomplete listing.

                                                6.14                           Wisconsin Performance
Deposit. If
Debtor has and exercises a right to redeem any Collateral under Section 425,208,
Wisconsin Statutes, the performance deposit tendered by Debtor shall not bear
interest held by Secured Party.

                                                6.15                           Public Filings. 
The Debtor hereby authorizes the Secured Party to file all financing
statements describing the Collateral, and all amendments thereto, in any
offices as the Secured Party, in its sole discretion, may determine.  The Debtor hereby also authorizes the Secured
Party to file all 

 

 

 

effective
financing statements describing the Collateral pursuant to 7 U.S.C. section
1631, and all amendments thereto, in any offices as the Secured Party, in its
sole discretion may determine.

                                                6.16                           Government Program
Payments. If the
Collateral includes federal or state government program entitlements or
payments, the Debtor shall execute and deliver to the Secured Party all
assignments, transfers, and other documents required by the Secured Party to
transfer, convey, end assign to the Secured Party all such federal and state
government program entitlements, payments, rights to payment whether or not
earned by performance, accounts, general intangibles, and  benefits.

                                                6.17                           Uniform Commercial Code. All terms in this Agreement that are
defined in the Uniform Commercial Code, as enacted in the state in which
Secured Party’s office originating the loan is located and as amended from time
to time (‘UCC”), shall have the meanings set Forth in the UCC.  The meaning of a term hereunder shall
automatically change on the effective date of each amendment to the definition
of such term in the UCC.

                                                6.18                           Debtor Names. 
For each Debtor that id not an individual, the legal name of each such
Debtor is as set forth in the Note or an addendum thereto, or in this
Agreement.  No Debtor has used any trade
name, assumed name, or other name except those set forth in the Note or an
addendum thereto, or in this Agreement. 
The debtor shall give the Secured Early written notice at least 30 days
before the date of (1) any change in any Debtor’s name or (2) any use
by any Debtor of another name.

                                                6.19                           Registered Organizations. If any Debtor is a Registered Organization,
as that term is defined in the UCC, all information provided by such Debtor to
the Secured Party concerning the state or organization for such Debtor is true,
accurate, end complete.  No Debtor shall
change its state of organization without the prior written consent of the
Secured Party. Debtor shall provide the Secured Party with written notice at
least 30 days before the date any Debtor makes any action to change its state
of organization.

                                                6.20                           Addresses of Debtor. If any Debtor is an individual or an
entity that is not a Registered organization, all information provided by the
Debtor to the Secured Party concerning the address of an individual Debtor’s
residence or the address of the chief executive officer of en entity that is
not a Registered Organization is true, accurate, and complete. No individual
Debtor shall change that address of residence without providing written notice
to the Secured Party at least 30 days before the effective date of such address
change. No Debtor that is an entity that is not a Registered Organization shall
change that address of the chief executive officer without providing written
notice to the Secured Party at least 30 days before the effective date of such
address change.

                                                6.21                           Purchase Money Security
Interests. To the
extent that the Debtor uses proceeds of the Loan extended by the Secured Party
to purchase Collateral, Debtor’s repayment of the Loan shall apply on a “first-in-first-out”
basis so that the portion of the Loan used to purchase a particular item of the
Collateral shall be paid in the chronological order the Debtor purchased the
Collateral.

                                                6.22                           Reporting. The Secured Party, its agents,
successors, and assigns may report Debtor’s names and information regarding
this Loan and all of Debtors past and future loans to credit reporting
agencies.

                                                6.23                           Authorization for Access
to Information.  Debtor acknowledges end agrees that the
verification or reverification or any information, whether contained in the
Debtor’s loan application or in any other manner supplied by the Debtor to the
Secured Party in connection therewith, may be made at any time by the Secured
Party, its agents, successors, or assigns, either directly or through a credit
reporting agency, from any source whether named in the Debtor’s loan application
or otherwise provided to the Secured Party by the Debtor.

 

 

 

UCC FINANCING STATEMENT

FOLLOW INSTRUCTIONS (front and back) CAREFULLY

 

A. NAME& PHONE OF
CONTACTAT FILER (optional]

 

 

B. SEND ACKNOWLEDGMENT TO: (Name and
Address)

 

 

            AGCOUNTRY
FARM CREDIT SERVICES

            1900
44TH ST S P0 BOX 6020

            FARGO                                       ND           58108-6020

 

THE ABOVE
SPACE IS FOR FILING OFFICE USE  ONLY

	
  1.  DEBTOR’S EXACT FULL LEGALNAME  — insert only one debtor name (1a or
  1b)-do not abbreviate or combine names

  
	
  1a,  ORGANIZATION’S NAME

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GREAT
  PLAINS ETHANOL
  LLC

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OR

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1b.  INDIVIDUALS’S LAST NAME

  	
   

  	
  FIRST NAME

  	
   

  	
  MIDDLE NAME

  	
   

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1c  MAILING ADDRESS

  	
   

  	
  CITY

  	
   

  	
  STATE

  	
  POSTAL CODE

  	
   

  	
  COUNTRY

  
	
  27716
  462ND AVE

  	
   

  	
  CHANCELLOR

  	
   

  	
  SD

  	
  57015

  	
   

  	
  USA

  
	
  1d  SEE INSTRUCTIONS

  	
   

  	
  ADDL’ INFO RE

  	
   

  	
  1e. TYPE OF

  	
   

  	
  1f. JURISDICTION OF

  	
   

  	
  1e. ORGANIZATIONAL ID#, if any

  
	
   

  	
   

  	
  ORGANIZATION

  	
   

  	
  ORGANIZATION

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  46-0459108

  	
   

  	
  DEBTOR

  	
   

  	
  LIMITED
  LIABILITY

  	
   

  	
  ORGANIZATION

  	
  SD

  	
   

  	
   

  	
   

  	
  o NONE

  
	
  2.  ADDITONAL DEBTOR’S EXACT FULL LEGAL NAME
  —insert only one debtor name (2a or2b) . do not abbreviate or combine
  names

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2a.  ORGANIZATION’S NAME

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Poet
  Biorefining — CHANCELLOR

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OR

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2b,  INDIVIDUAL’S
  LAST NAME

  	
   

  	
   

  	
   

  	
  FIRST NAME

  	
   

  	
  MIDDLE NAME

  	
   

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2c  MAILING ADDRESS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CITY

  	
   

  	
  STATE

  	
  P’OSTAL CODE

  	
   

  	
  COUNTRY

  
	
  27716
  462ND AVE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CHANCELLOR

  	
   

  	
  SD

  	
  57015

  	
   

  	
  USA

  
	
  2d  SEE INSTRUCTIONS  

  	
   

  	
  ADDL’ INFO RE

  	
   

  	
  2e. TYPE OF

  	
   

  	
  2f. JURISDICTION 

  	
   

  	
  2g. ORGANIZATIONAL ID#, 

  
	
   

  	
   

  	
  ORGANIZATION

  	
   

  	
  ORGANIZATION

  	
   

  	
  ORGANIZATION

  	
   

  	
  if any

  	
   

  	
   

  
	
  46-0459108

  	
   

  	
  DEBTOR

  	
   

  	
  LIMITED
  LIABILITY

  	
   

  	
  SD

  	
   

  	
  NONE

  	
   

  	
   

  
	
  3.

  	
  SECURED PARTY’S  NAME (or NAME OF TOTAL ASSIGNEE OF ASSIGNOR S/P)-
  insert only one party name (3a or 3)

  	
   

  	
   

  
	
   

  	
  3a.  ORGANIZATION’S NAME

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AGCOUNTRY FARM CREDIT SERVICES, PCA

  	
   

  	
   

  
	
  OR

  	
   

  	
   

  	
   

  
	
   

  	
  3b  INDIVIDUAL’S LAST NAME

  	
   

  	
  FIRST NAME

  	
   

  	
  MIDDLE NAME

  	
   

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3c  MAILING ADDRESS

  	
   

  	
  CITY

  	
   

  	
  STATE

  	
  POSTAL  CODE

  	
   

  	
  COUNTRY

  
	
  1900
  44TH ST  PO BOX 6020

  	
   

  	
  FARGO

  	
   

  	
  ND

  	
  58108.6020

  	
   

  	
  USA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.  This FINANCING STATEMEN covers the following collateral:

  	
   

  	
   

  	
   

  
	
  All goods including inventory,
  equipment and software; all accounts and general intangibles, instruments, investment property, documents, chattel
  paper, and letter of credit rights; whether now owned or after acquired; all
  accessions, additions, replacements, and substitutions; all records of any
  kind relating to any of the foregoing; and all proceeds.

  
	
   

  
	
  5.  ALTERNATIVE DESIGNATION [if
  applicable]:  o LESSEE/LESSOR  o CONSIGNEE/CONSIGNOR  o BAILEE/BAILOR  o SELLER/BUYER  o AG.LIEN  o NON-UCC FILNG

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.  o THIS FINANCING STATEMENT is to be
  filed (for record)

  	
   

  	
  7.  Check to REQUEST SEARCH REPORT(S) on
  Debtor(s)

  	
   

  	
   

  
	
  (or recorded) in
  the REAL ESTATE Records. Attach

  	
   

  	
  (ADDITIONAL
  FEE)    [optional]

  	
   

  	
  o All Debtors   o Debtor   o Debtor 2

  
	
  Addendum [if
  applicable]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8,  OPTIONAL FILER REFERENCE DATA

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FILING OFFICE COPY — 11CC FINANCING STATEMENT
  (FORM UCC1)(REV. 06/22/02)

  	
   

  	
  UCCI (09/2005)

  
																			

 

 

ASSN. NO.  B.O.NO.    CIF NO.                          EXHIBIT
TO SECURITY AGREEMENT

     72                 65         1895500                           DESCRIPTION OF COLLATERAL - GENERAL

 

1.                                       Description of Collateral. The Collateral referred to in the
Security Agreement dated February 20, 2008 by the undersigned Debtors to
AGCOUNTRY FARM CREDIT SERVICES, PCA (“Secured Party”) includes, whether now
owned or later acquired, the property described opposite the box(es) checked
below and the property described at Sections 1.9 through 1.13.

 

                                                A.a          o            All
crops growing, grown or to be grown on real estate in the State(s) or
____________________________.  The real
estate is more specifically described as 

follows (if required by state law):

 

	
   

  	
   

  	
  ACRES

  	
   

  	
  QTR.

  	
   

  	
  SEC.

  	
   

  	
  TWP.

  	
   

  	
  N/S

  	
   

  	
  RNG.

  	
   

  	
  E/W

  	
   

  	
  COUNTY

  
	
  Tr. 1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tr. 2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tr. 3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tr. 4

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tr. 5

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

If the box at 1.1 above
is checked end crops will be grown in North Dakota, the following applies:

THIS SECURITY AGREEMENT
COVERS CROPS NOW GROWING. THIS SECURITY AGREEMENT ALSO COVERS FUTURE CROPS TO
SE GROWN IN THE CURRENT YEAR OR ANY YEAR HEREAFTER.

 

	
  1.2

  	
  o

  	
  All harvested crops and
  all processed crops, whether or not produced by Debtors.

  
	
   

  	
   

  	
   

  
	
  1.3

  	
  o

  	
  All livestock end
  poultry.

  
	
   

  	
   

  	
   

  
	
  1.4

  	
  o

  	
  All feed, seed,
  fertilizer, insecticides, herbicides and other agricultural chemicals and
  supplies.

  
	
   

  	
   

  	
   

  
	
  1.5

  	
  o

  	
  All general
  intangibles.

  
	
   

  	
   

  	
   

  
	
  1.6

  	
  o

  	
  All equipment, all
  spare parts and special tools for such equipment, all motor vehicles and all
  fixtures.

  
	
   

  	
   

  	
   

  
	
  1.7

  	
  o

  	
  All contract rights,
  chattel paper, documents, accounts, and general intangibles, whether now
  owned or hereafter acquired by Debtors, including, but not limited to, all
  entitlements, rights to payment, and payments (in whatever form received,
  including, but not limited to, payments in cash or in kind) under any current
  or future state or federal governmental programs, including, but not limited
  to, governmental agricultural diversion programs, governmental agricultural
  assistance programs and the United States Department of Agriculture Farm
  Service Agency (PSA) Feed Grain Program; and all proceeds of the foregoing.

  
	
   

  	
   

  	
   

  
	
  1.8

  	
  x

  	
  Property specifically
  described here:

  
	
   

  	
   

  	
  All of Debtor’s right,
  title and interest, whether now or hereafter owned, existing, arising or
  acquired, in all fixtures or every kind and nature, and any accessions
  thereto, and all recorded data of any kind or nature relating to such
  fixtures, regardless of the medium or recording, including, without
  limitation, all software, writings, plans specification and schematics, and
  all proceeds and products of any of the foregoing.

  
	
   

  	
   

  	
   

  
	
  1.9

  	
   

  	
  Association
  Stock.  Debtors’ stock, participation,
  certificates, equity reserve and allocated surplus in the Secured Party or
  its parent association, as applicable, its successors and assigns.

  
	
   

  	
   

  	
   

  
	
  1.10

  	
   

  	
  Proceeds. To the extent not included in any of
  the subparagraphs herein as original Collateral, all proceeds of the
  Collateral. (Debtors are NOT AUTHORIZED TO SELL or dispose of any Collateral
  unless authorized in the Security Agreement or in a writing signed by Secured
  Party.)

  
	
   

  	
   

  	
   

  
	
  1.11

  	
   

  	
  Documents. All documents of title, warehouse
  receipts, weight receipts, scale tickets, storage contracts (including CCC
  contracts) and deficiency payments covering or arising from any Collateral.

  

 

 

 

	
  1.12

  	
   

  	
  Additions. All additions, accessions,
  replacements and substitutions of or to any Collateral and all property of
  similar type or kind, including all offspring of livestock and poultry.

  
	
   

  	
   

  	
   

  
	
  1.13 

  	
   

  	
  Products. All products of crops, livestock end
  poultry given as Collateral including eggs, milk end wool and all products
  into which any of the Collateral has been or shall later be manufactured,
  processed or assembled.

  

 

2.           The
Collateral described in this Exhibit is in addition to property described
in additional Exhibits to the Security Agreement, if any. To the extent the
Collateral described in this Exhibit is similar to, or after-acquired
property, products, or proceeds of existing Collateral, its inclusion in this Exhibit is
for the purpose of more specifically identifying the Collateral.  This Exhibit shall in no way effect the
priority of the security interest of Secured Party in existing Collateral or
limit the parties’ intention that all similar and after-acquired property,
products, end proceeds of the Collateral are also Collateral under the Security
Agreement.

 

Dated: February 20,
2008

 

GREAT PLAINS ETHANOL LLC

dba Poet Biorefining -
Chancellor

a South Dakota limited
Liability Company

 

	
  By:

  	
  /s/ Darin Ihnen

  	
   

  
	
  DARIN IHNEN, CHAIRMAN

  

 

 

EXHIBIT 1

	
   

  	
   

  	
   

  
	
  Debtor:

  	
   

  	
  GREAT PLAINS ETHANOL,
  LLC

  
	
   

  	
   

  	
  27716 - 462nd
  Avenue

  
	
   

  	
   

  	
  Chancellor, SD 57105

  
	
   

  	
   

  	
   

  
	
  Secured Party:

  	
   

  	
  AGCOUNTRYFARM CREDIT
  SERVICES, FLCA

  
	
   

  	
   

  	
  1900 44th
  Street South

  
	
   

  	
   

  	
  Fargo, North Dakota
  58108

  

 

Description of Real
Estate:

 

Real property in Turner
County in the State of South Dakota, to wit:

 

Parcel I:  The Northwest Quarter (NW 1⁄4) less Plucker’s
Tract 1 in the South Half of the Northwest Quarter (S 1⁄4 NW 1⁄4) and except the
Substation Addition in the Northwest Quarter (NW 1⁄4) and except the South Dakota
Central Railroad Right-of-Way and except Lot H-1, all in Section Twenty-six
(26), Township Ninety-Nine (99) North, Range Fifty-Two (52) West of the 5th P.M.,
Turner County, South Dakota.

 

Parcel 2:  Tract 1 in the Northeast Quarter (NE 1⁄4) of Section Twenty-Six
(26), Township Ninety-Nine (99) North, Range Fifty-Two (52) West of the 5th
PM, Turner County, South Dakota, according to the recorded plat thereof.

 

Parcel 3: Tract 3 in the
Southeast Quarter (SE 1⁄4) of Section Twenty-Six (26), Township Ninety-Nine
(99) North, Range Fifty-Two (52) West of the 5th P.M., Turner
County, South Dakota, according to recorded plat thereof.

 

Tract 4:  Tract 1 and Tract 2 of Great Plains Addition
in the Northeast Quarter (NE 1⁄4) of Section Thirty (30), Township
Ninety-Eight (98) North, Range Fifty-Two (52) West of the 5th P.M.,
Turner County, South Dakota, according to the recorded plat thereof.

 

Property Address: 27716 —
452nd Avenue, Chancellor, South Dakota

 

 

UCC FINANCING STATEMENT

FOLLOW INSTRUCTIONS (front and back) CAREFULLY

 

A. NAME& PHONE OF
CONTACTAT FILER (optional]

 

 

B. SEND ACKNOWLEDGMENT TO: (Name and
Address)

 

 

            AGCOUNTRY
FARM CREDIT SERVICES

            1900
44TH ST S P0 BOX 6020

            FARGO                                       ND           58108-6020

 

THE ABOVE
SPACE IS FOR FILING OFFICE USE  ONLY

	
  1.  DEBTOR’S EXACT FULL LEGALNAME  — insert only one debtor name (1a or
  1b)-do not abbreviate or combine names

  
	
  1a,  ORGANIZATION’S NAME

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GREAT
  PLAINS ETHANOL
  LLC

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OR

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1b.  INDIVIDUALS’S LAST NAME

  	
   

  	
  FIRST NAME

  	
   

  	
  MIDDLE NAME

  	
   

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1c  MAILING ADDRESS

  	
   

  	
  CITY

  	
   

  	
  STATE

  	
  POSTAL CODE

  	
   

  	
  COUNTRY

  
	
  27716
  462ND AVE

  	
   

  	
  CHANCELLOR

  	
   

  	
  SD

  	
  57015      

  	
   

  	
  USA

  
	
  1d  SEE INSTRUCTIONS

  	
   

  	
  ADDL’ INFO RE

  	
   

  	
  1e. TYPE OF

  	
   

  	
  1f. JURISDICTION OF

  	
   

  	
  1e. ORGANIZATIONAL ID#, if any

  
	
   

  	
   

  	
  ORGANIZATION

  	
   

  	
  ORGANIZATION

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  46-0459108

  	
   

  	
  DEBTOR

  	
   

  	
  LIMITED
  LIABILITY

  	
   

  	
  ORGANIZATION

  	
  SD

  	
   

  	
   

  	
   

  	
  o NONE

  
	
  2.  ADDITONAL DEBTOR’S EXACT FULL LEGAL NAME
  —insert only one debtor name (2a or2b) . do not abbreviate or combine
  names

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2a.  ORGANIZATION’S NAME

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Poet
  Biorefining — CHANCELLOR

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OR

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2b,  INDIVIDUAL’S
  LAST NAME

  	
   

  	
   

  	
   

  	
  FIRST NAME

  	
   

  	
  MIDDLE NAME

  	
   

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2c. MAILING ADDRESS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CITY

  	
   

  	
  STATE

  	
  P’OSTAL CODE

  	
   

  	
  COUNTRY

  
	
  27716
  462ND AVE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  CHANCELLOR

  	
   

  	
  SD

  	
  57015      

  	
   

  	
  USA

  
	
  2d  SEE INSTRUCTIONS  

  	
   

  	
  ADDL’ INFO RE

  	
   

  	
  2e. TYPE OF

  	
   

  	
  2f. JURISDICTION 

  	
   

  	
  2g. ORGANIZATIONAL ID#, 

  
	
   

  	
   

  	
  ORGANIZATION

  	
   

  	
  ORGANIZATION

  	
   

  	
  ORGANIZATION

  	
   

  	
  if any

  	
   

  	
   

  
	
  46-0459108

  	
   

  	
  DEBTOR

  	
   

  	
  LIMITED
  LIABILITY

  	
   

  	
  SD

  	
   

  	
  NONE

  	
   

  	
   

  
	
  3.

  	
   SECURED PARTY’S  NAME (or NAME OF TOTAL ASSIGNEE OF ASSIGNOR S/P)-
  insert only one party name (3a or 3)

  	
   

  	
   

  
	
   

  	
  3a.  ORGANIZATION’S NAME

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AGCOUNTRY FARM CREDIT SERVICES, PCA

  	
   

  	
   

  
	
  OR

  	
   

  	
   

  	
   

  
	
  .

  	
  3b  INDIVIDUALS’S LAST NAME

  	
   

  	
  FIRST NAME

  	
   

  	
  MIDDLE NAME

  	
   

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3c  MAILING ADDRESS

  	
   

  	
  CITY

  	
   

  	
  STATE

  	
  POSTAL  CODE

  	
   

  	
  COUNTRY

  
	
  1900
  44TH ST  PO BOX 6020

  	
   

  	
  FARGO

  	
   

  	
  ND

  	
  58108.6020

  	
   

  	
  USA

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.  This FINANCING STATEMEN covers the following collateral:

  	
   

  	
   

  	
   

  
	
  All of Debtor’s right, title and
  interest, whether now or hereafter owned, existing, arising or acquired, in
  all fixtures or every kind and nature, and any accessions thereto, and all
  recorded data of any kind or nature relating to such fixtures, regardless of
  the medium of recording, including, without limitation, all software,
  writings, plans specifications and schematics, and all proceeds and products
  of any of the foregoing.

  
	
   

  
	
  5.  ALTERNATIVE DESIGNATION [if
  applicable]:  o LESSEE/LESSOR  o CONSIGNEE/CONSIGNOR  o BAILEE/BAILOR  o SELLER/BUYER  o AG.LIEN  o NON-UCC FILNG

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.  x THIS FINANCING STATEMENT is to be
  filed (for record)

  	
   

  	
  7.  Check to REQUEST SEARCH
  REPORT(S) on Debtor(s)

  	
   

  	
   

  
	
  (or recorded) in
  the REAL ESTATE Records. Attach

  	
   

  	
  (ADDITIONAL FEE)    [optional]

  	
   

  	
  o All Debtors   o Debtor   o Debtor 2

  
	
  Addendum [if
  applicable]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8,  OPTIONAL FILER REFERENCE DATA

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FILING OFFICE COPY — 11CC FINANCING STATEMENT
  (FORM UCC1)(REV. 06/22/02)

  	
   

  	
  UCCI (09/2005)

  
																					

 

 

UCC FINANCING STATEMENT ADDENDUM

FOLLOW INSTRUCTIONS (front and back) CAREFULLY

 

	
  9.  NAME OF FIRST DEBTOR (1a or 1b)  ON
  RELATED FINANCING STATEMENT

  	
   

  	
   

  	
   

  	
   

  
	
  9a ORGANIZATlONS NAME

  	
   

  	
   

  	
   

  	
   

  
	
  Great
  Plains Ethanol LLC dba Poet Biorefining - Chancellor

  	
   

  	
   

  	
   

  	
   

  
	
  OR 

  	
   

  	
   

  	
   

  	
   

  
	
  9b,INDN1DLIAL’SLAST NAME            

  	
   

  	
  FIRST NAME

  	
   

  	
  MIDDLE NAME, SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.  MISCELLANEOUS:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

 

 

THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY

	
  11.  ADDITIONAL
  DEBTOR’S EXACT FULL LEGAL NAME — insert
  only one name
  (11a or 11b) - do not abbreviate or combine names 

  
	
  11a. ORGANIZATION’S NAME

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OR

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11 lb. INDIVIDUAL’S LAST NAME

  	
   

  	
  FIRST NAME

  	
   

  	
  MIDDLE NAME

  	
   

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11c. MAILING ADDRESS

  	
   

  	
  CITY

  	
   

  	
  STATE,

  	
  POSTAL CODE

  	
   

  	
  COUNTRY

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11d  SEE INSTRUCTIONS

  	
   

  	
  ADDL’ INFO RE

  	
   

  	
  11a. TYPE OF ORGANIZATION

  	
   

  	
  11f. JURISDICTION OF

  	
   

  	
  11g. ORGANIZATION ID#, 

  
	
   

  	
   

  	
  ORGANIZATION

  	
   

  	
   

  	
   

  	
  ORGANIZATION

  	
   

  	
   

  
	
   

  	
   

  	
  DEBTOR

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  if
  any     0  NONE

  
	
  12.  o  ADDITIONAL SECURED PARTY’S or   o   ASSIGNOR SIP’S  NAME. Insert only one name (12a or 12b)

  	
   

  	
   

  
	
  12a.  ORGANIZATlONS NAME

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OR

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12b. INDIVIDUALS LAST NAME

  	
   

  	
  FIRST NAME

  	
   

  	
  MIDDLE NAME

  	
   

  	
  SUFFIX

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MAILING  ADDRESS

  	
   

  	
   

  	
   

  	
  CITY

  	
   

  	
  STATE

  	
  POSTAL CODE

  	
   

  	
  C0UNTRY

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13. This FINANCING STATEMENT covers o timber to be
  cut 

  	
   

  	
  16. Additional collateral description:

  	
   

  	
   

  
	
  or o as extracted collateral,
  or is filed as a x fixture filing.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14. Description of
  real estate:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  See
  attached Exhibit I

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15. Name and address of a
  RECORD OWNER ob above

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (if Debtor does not have a record interest):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  17. Check only
  if applicable and check only one box.

  
	
  Debtor has a record of interest

  	
   

  	
  Debtor is a o Trust or
  o Trustee acting with respect to property held
  in trust or

  
	
   

  	
   

  	
   

  	
   

  	
  o Decedent’s Estate

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  18. Check only
  if applicable and check only one box.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o Debtor is a TRANSMITTING UTILITY

  
	
   

  	
   

  	
   

  	
   

  	
  o Filed in connection with a Manufactured-Home
  Transaction—effective 30 years

  
	
   

  	
   

  	
   

  	
   

  	
  o Filed in connection with a Public-finance
  Transaction-effective 30 years

  
	
  FILING OFFICE COPY — UCC
  FINANCING STATEMENT ADDENDUM (FORM UCC1Ad)(REV. 05/22/02)

  	
   

  	
  UCC1Ad (11/2005)

  
																			

 

 

EXHIBIT I

 

 

	
  Debtor:

  	
   

  	
  GREAT PLAINS ETHANOL,
  LLC

  
	
   

  	
   

  	
  27716 462nd Avenue

  
	
   

  	
   

  	
  Chancellor, SD 57105

  
	
   

  	
   

  	
   

  
	
  Secured Party:

  	
   

  	
  AGCOUNTRY FARM CREDIT
  SERVICES, FLCA

  
	
   

  	
   

  	
  1900 44th
  Street South

  
	
   

  	
   

  	
  Fargo, North Dakota
  58108

  

 

Description of Real
Estate:

 

Real property in Turner
County in the State of South Dakota, to wit:

 

Parcel 1: The Northwest
Quarter (NW ‘4) less Plucker’s Tract 1 in the South Half of the Northwest
Quarter (S 1⁄2 NW 1⁄4) and except the Substation Addition in the Northwest Quarter
(NW 1⁄4) and except the South Dakota Central Railroad Right-of-Way and except Lot
H-1 all in Section Twenty-six (26), Township Ninety-Nine (99) North, Range
Fifty-Two (52) West of the 5th PM., Turner County, South Dakota.

 

Parcel 2: Tract 1 in the
Northeast Quarter (NE 1⁄4) of Section Twenty-Six (26), Township Ninety-Nine
(99) North, Range Fifty-Two (52) West of the 5th P.M., Turner
County, South Dakota, according to the recorded plat thereof.

 

Parcel 3: Tract 3 in the
Southeast Quarter (SE 1⁄4) of Section Twenty-Six (26); Township Ninety-Nine
(99) North, Range Fifty-Two (52) West of the 5th P.M., Turner
County, South Dakota, according to the recorded plat thereof.

 

Tract 4: Tract 1 and
Tract 2 of Great Plains Addition in the Northeast Quarter (NE 1⁄4) of Section Thirty
(30), Township Ninety-Eight (98) North, Range Fifty-Two (52) West of the 5th P.M.,
Turner County, South Dakota, according to the recorded plat thereof.

 

Property Address:   27716 — 462nd Avenue, Chancellor,
South Dakota

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]