Document:

Exhibit
10.2

 

FIRST AMENDMENT TO REVOLVING CREDIT AND SECURITY AGREEMENT

 

This First Amendment to Revolving Credit and
Security Agreement (the “First Amendment”),  is
made this 6th day of August, 2010 among AVENTINE
RENEWABLE ENERGY HOLDINGS, INC., a Delaware corporation (“Holdings”),
AVENTINE RENEWABLE ENERGY — AURORA WEST, LLC,
a Delaware limited liability company (“Aventine Renewable Aurora”), AVENTINE RENEWABLE ENERGY, INC., a Delaware corporation
(“Aventine Renewable Inc.”), AVENTINE RENEWABLE ENERGY —
MT VERNON, LLC, a Delaware limited liability company (“Aventine
Renewable Mt. Vernon”), AVENTINE POWER, LLC,
a Delaware limited liability company (“Aventine Power”), NEBRASKA
ENERGY, L.L.C., a Kansas limited liability company (“Nebraska Energy”
and together Holdings, Aventine Renewable Aurora, Aventine Renewable Inc.,
Aventine Renewable Mt. Vernon and Aventine Power, each a “Borrower” and jointly
and severally, the “Borrowers”), the financial institutions which are now or
which hereafter become a party hereto as “Lenders” (collectively, the “Lenders”),
and PNC BANK, NATIONAL ASSOCIATION,
as administrative agent and collateral agent for the Lenders (in each such
capacity, “Agent”).

 

BACKGROUND

 

A.            On March 15, 2010,
Borrowers, Lenders and Agent entered into, inter  alia, that
certain Revolving Credit and Security Agreement (as same has been or may
hereafter be amended, modified, renewed, extended, restated or supplemented
from time to time, the “Loan Agreement”) to reflect certain financing
arrangements among the parties thereto. 
The Loan Agreement and all other documents executed in connection
therewith to the date hereof are collectively referred to as the “Existing
Financing Agreements.”  All capitalized
terms used not otherwise defined herein shall have the meaning ascribed thereto
in the Loan Agreement, as amended hereby.

 

B.            Holdings
intends to enter into an Asset Purchase Agreement (the “Canton
Purchase Agreement”) with New CIE Energy Opco, LLC, a Delaware limited
liability company (the “Seller”), pursuant to which Seller shall sell, and
Holdings shall purchase, substantially all of the assets of Seller (the “Acquired
Assets”), on the terms and conditions set forth therein (such sale and
purchase, the “Acquisition”); and

 

C.            Borrowers have requested and
Agent and Lenders have agreed to: (i) consent to the Acquisition and (ii) modify
certain terms and provisions of the Loan Agreement, in each case on the terms
and subject to the conditions contained in this First Amendment.

 

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

 

Section 1.              Consent.

 

(a)           In reliance upon the documentation and information
provided to Agent in connection with the Acquisition, including without
limitation, the Canton Purchase Agreement, and notwithstanding anything to the
contrary contained in the Loan Agreement, upon satisfaction of the conditions
set forth in Section 4 below, Agent and Lenders hereby consent to the
Acquisition.

 

 

(b)           This consent shall be effective only as to the
Acquisition.  This consent shall not be
deemed a consent to the breach by Borrowers of other covenants or agreements
contained in any Existing Financing Agreement with respect to any other
transaction or matter. Borrowers agree that the consent set forth in the
preceding paragraph (a) shall be limited to the precise meaning of the
words as written therein and shall not be deemed (i) to be a consent to,
or any waiver or modification of, any other term or condition of any Existing
Financing Agreement, or (ii) to prejudice any right or remedy that Agent
or Lenders may now have or may in the future have under or in connection with
any Existing Financing Agreement other than with respect to the matters for
which the consent in the preceding paragraph (a) has been provided.  Other than as described in this Amendment,
the consent described in the preceding paragraph (a) shall not alter,
affect, release or prejudice in any way any of the Borrowers’ Obligations under
the Existing Financing Agreements.  This
consent shall not be construed as establishing a course of conduct on the part
of Agent or Lenders upon which the Borrowers may rely at any time in the
future. Borrowers expressly waive any right to assert any claim to such effect
at any time.

 

Section 2.              Amendments to Loan Agreement.

 

(a)           Amended Definitions.   Upon the Effective Date (as defined below), Section 1.2
of the Loan Agreement shall be amended by deleting the definition of “Letter
of Credit Sublimit” and restating such definition in its entirety as
follows:

 

“Letter
of Credit Sublimit” shall mean Seventeen Million Dollars ($17,000,000).

 

(b)           New Definitions. Upon the Effective Date, Section 1.2
of the Loan Agreement shall be amended by adding the following definitions:

 

“Canton Purchase Agreement” shall mean the
Asset Purchase Agreement, including all exhibits and schedules thereto, dated
as of August 6, 2010, by and between New CIE Energy Opco, LLC, a Delaware
limited liability company, as seller, and Holdings, as buyer.

 

“First
Amendment” shall mean that certain First Amendment to Revolving Credit and
Security Agreement dated the First Amendment Date.

 

“First
Amendment Date” shall mean August 6, 2010.

 

(c)           Covenant to Exercise Rights.  Upon the Effective Date, the following “Section 6.11”
shall hereby be added to Article VI of the Loan Agreement:

 

6.11         Exercise of Rights.  In its commercially reasonable judgment,
enforce all of its rights under the Canton Purchase Agreement and any documents
or agreements executed in connection therewith, including, but not limited to,
all indemnification rights and pursue all remedies available to such Borrower
with diligence and in good faith in connection with the enforcement of any such
rights.

 

(d)           Capital Expenditures.  Upon the Effective Date, Section 7.6 of
the Loan Agreement shall be deleted in its entirety and replaced as follows:

 

2

 

Capital Expenditures.  Contract for, purchase or make any
expenditure or commitments for Capital Expenditures in an aggregate amount for
all Borrowers in excess of: (a) $115,000,000 for the fiscal year ending December 31,
2010; (b) $10,000,000 for fiscal year ending December 31, 2011; (c) $20,000,000
for fiscal year ending December 31, 2012; and (d) $7,000,000 for
fiscal year ending December 31, 2013 and each fiscal year thereafter.

 

(e)           Inventory Reporting.  Upon the Effective Date, Section 9.16 of
the Loan Agreement shall be deleted in its entirety and replaced as follows:

 

Daily Inventory Reporting. Unless
otherwise agreed to by Agent, in the event that Borrowers’ available
unrestricted cash falls below $20,000,000 at any time, Borrowers shall deliver
to Agent on a daily basis a report setting forth Borrowers’ in-transit
Inventory in form and substance reasonably acceptable to Agent.

 

(f)            Amendment to Schedules. Upon the
Effective Date, the Schedules to the Loan Agreement are hereby amended by
deleting such Schedules in their entirety and substituting the respective
Schedules attached hereto as Annex I in lieu therefor.

 

Section 3.              Security
Interest.  As security
for the payment of the Obligations, and satisfaction by Borrowers of all
covenants and undertakings contained in the Loan Agreement, the Other Documents
and the Existing Financing Agreements, each Borrower reconfirms the prior grant
of the security interest in and first priority, perfected lien in favor of
Agent for its benefit and the ratable benefit of each Lender, upon and to, all
of its right, title and interest in and to the Collateral, whether now owned or
hereafter acquired, created or arising and wherever located.

 

Section 4.              Conditions Precedent.  This First Amendment shall
be effective on the date (such date, the “Effective Date”) when each of the
following conditions precedent shall have occurred:

 

(a)           Agent shall have received this First Amendment, duly
executed and delivered by an authorized officer of each of the Borrowers and
the Lenders.

 

(b)           Agent shall have received, for the ratable benefit
of Lenders, a non-refundable amendment fee in the amount of $35,000.00.

 

(c)           Agent shall have received and reviewed to its
satisfaction full, complete, final and signed copies of the Canton Purchase
Agreement (together with all exhibits and schedules thereto) and all other
documents executed by any party to the Canton Purchase Agreement and delivered
to the other party to the Canton Purchase Agreement in connection therewith,
all in form and substance satisfactory to Agent in its reasonable
discretion.  In addition, the Acquisition
shall have been consummated in accordance with the terms of the Canton Purchase
Agreement, as in effect on the Effective Date.

 

(d)           Since the Closing Date, there shall not have occurred
any event, condition or state of facts which could reasonably be expected to
have a Material Adverse Effect.

 

3

 

(e)           Each of the representations and warranties made by
each Borrower in or pursuant to the Loan Agreement, as amended hereby, and any
Other Document, and each of the representations and warranties contained in any
certificate, document or financial or other statement furnished at any time
under or in connection with the Loan Agreement, as amended hereby, and any
Other Document, shall be true and correct in all material respects on and as of
such date.

 

(f)            No Event of Default or Default shall have occurred
and be continuing on the Effective Date, or would exist on the Effective Date
after giving effect to the transactions contemplated by this First Amendment
(including, without limitation, the Acquisition).

 

(g)           No litigation, investigation or proceeding before or
by any arbitrator or Governmental Body shall be continuing or, to the knowledge
of any Borrower, threatened against any Borrower or against the officers or
directors of any Borrower (A) in connection with this First Amendment, the
Loan Agreement, the Other Documents, the Canton Purchase Agreement or any of
the transactions contemplated hereby or thereby and which, in the reasonable
opinion of Agent, is deemed material or (B) which could, in the reasonable
opinion of Agent, have a Material Adverse Effect; and (ii) no injunction,
writ, restraining order or other order of any nature materially adverse to any
Borrower or the conduct of such Borrower’s business or inconsistent with the
due consummation of the transactions contemplated by this First Amendment
(including, without limitation, the Acquisition) shall have been issued by any
Governmental Body.

 

Section 5.              Post Closing Conditions.

 

(a)           Within thirty (30) days after the First Amendment
Date, Borrowers shall deliver to Agent a fully executed Access and Waiver
Agreement, in form and substance satisfactory to Agent, relating to the premises
leased under that certain Lease Agreement by and between Amerenenergy Resources
Generating Company and Central Illinois Energy, L.L.C. (as predecessor to the
Seller), dated as of August 11, 2005; provided however that failure to
deliver any such Access and Waiver Agreement shall not be deemed to be an Event
of Default hereunder; provided further that Borrowers acknowledge and agree
that any Inventory located at any location for which an Access and Waiver
Agreement has not been delivered to Agent shall not be included in the Formula
Amount, unless Agent agrees to permit the inclusion of such Inventory in the
Formula Amount subject to a rent reserve, to be determined by Agent in its
reasonable discretion.

 

(b)           Borrowers shall deliver to Agent, no later than the
close of business on August 10, 2010, evidence of (i) the payment in
full of all outstanding obligations under that certain Credit and Security
Agreement by and between Seller and Whitebox Hedged High Yield Partners, LP,
dated as of November 5, 2008, as amended (the “Whitebox Credit Agreement”),
(ii) the termination of the Whitebox Credit Agreement and (iii) the
release of all related security interests and liens, if any, in the assets and
properties of the Seller.

 

Section 6.              Confirmation
of Indebtedness.  Borrowers
confirm and acknowledge that as of the close of business on August 6,
2010, Borrowers were indebted to Agent and Lenders: (i) on account of
Revolving Advances under the Loan Agreement in the aggregate principal amount
of $0.00; and (ii) on account of undrawn Letters of Credit under the Loan 

 

4

 

Agreement
in the aggregate principal amount of $3,428,000.00, plus all fees, expenses and
accrued but unpaid interest and in each case without any deduction, defense,
setoff, claim or counterclaim, of any nature.

 

Section 7.              General
Provisions.

 

(a)           Except as herein expressly amended, the Loan
Agreement, the Other Documents and any other agreements, documents, instruments
and certificates executed in connection therewith, are ratified and confirmed
in all respects and shall remain in full force and effect in accordance with
their respective terms.

 

(b)           From and after the Effective Date, all references in
this First Amendment, the Loan Agreement and the Other Documents to “this Loan
Agreement,” “the Loan Agreement”, “hereof,” “herein,” “therein” or similar
terms, shall mean and refer to the Loan Agreement as has been amended and as
further amended by this First Amendment.

 

(c)           This First Amendment shall be governed by and
construed in accordance with the laws of the State of Illinois applied to
contracts to be performed wholly within the State of Illinois.  Any judicial proceeding brought by or against
any Borrower with respect to this First Amendment may be brought in any court
of competent jurisdiction in the State of Illinois, United States of America,
and, by execution and delivery of this First Amendment, each Borrower accepts
for itself and in connection with its properties, generally and unconditionally,
the non-exclusive jurisdiction of the aforesaid courts, and irrevocably agrees
to be bound by any judgment rendered thereby in connection with this First
Amendment.  Each Borrower hereby waives
personal service of any and all process upon it and consents that all such
service of process may be made by registered mail (return receipt requested)
directed to Borrowing Agent at its address set forth in Section 16.6 of
the Loan Agreement and service so made shall be deemed completed after the same
shall have been received by the Borrowing Agent, or at the Agent’s option, by
service upon Borrowing Agent which each Borrower irrevocably appoints as such
Borrower’s agent for the purpose of accepting service within the State of
Illinois.  Nothing herein shall affect
the right to serve process in any manner permitted by law or shall limit the
right of Agent or any Lender to bring proceedings against any Borrower in the
courts of any other jurisdiction.  Each
Borrower waives any objection to jurisdiction and venue of any action
instituted hereunder in any court of competent jurisdiction in the State of
Illinois and shall not assert any defense based on lack of jurisdiction or
venue or based upon forum non conveniens. 
Each Borrower waives the right to remove any judicial proceeding brought
against such Borrower in any state court to any federal court.  Any judicial proceeding by any Borrower
against Agent or any Lender involving, directly or indirectly, any matter or
claim in any way arising out of, related to or connected with this First
Amendment or any related agreement, shall be brought only in a federal or state
court located in the County of Cook, State of Illinois.

 

(d)           The Loan Agreement as amended hereby contains the
entire understanding between each Borrower, Agent and each Lender and
supersedes all prior agreements and understandings, if any, relating to the
subject matter hereof.  Any promises,
representations, warranties or guarantees not herein or therein contained and
hereinafter made shall have no force and effect unless in writing, signed by
each Borrower’s, Agent’s and each Lender’s respective officers.  Neither this First Amendment nor any portion
or provisions hereof may be changed, modified, amended, waived, supplemented,
discharged, cancelled or terminated orally or by any 

 

5

 

course
of dealing, or in any manner other than by an agreement in writing, signed by
the party to be charged.  Each Borrower
acknowledges that it has been advised by counsel in connection with the
execution of this First Amendment and is not relying upon oral representations
or statements inconsistent with the terms and provisions of this First
Amendment.

 

(e)           If any part of this First Amendment is contrary to,
prohibited by, or deemed invalid under Applicable Laws or regulations, such
provision shall be inapplicable and deemed omitted to the extent so contrary,
prohibited or invalid, but the remainder hereof shall not be invalidated
thereby and shall be given effect so far as possible.

 

(f)            All costs and expenses, including reasonable
attorneys’ fees and disbursements incurred by Agent on its behalf or on behalf
of any Lender or by any Lender on its behalf or on behalf of Agent or any other
Lender in connection with the negotiation, preparation and entering into of the
this First Amendment may be charged to the Borrowers’ Account and shall be part
of the Obligations.

 

(g)           The captions at various places in this First
Amendment are intended for convenience only and do not constitute and shall not
be interpreted as part of this First Amendment.

 

(h)           This First Amendment may be executed in any number
of and by different parties hereto on separate counterparts, all of which, when
so executed, shall be deemed an original, but all such counterparts shall
constitute one and the same agreement. 
Any signature delivered by a party by facsimile transmission shall be
deemed to be an original signature hereto.

 

(i)            The parties acknowledge that each party and its
counsel have reviewed this First Amendment and that the normal rule of
construction to the effect that any ambiguities are to be resolved against the
drafting party shall not be employed in the interpretation of this First
Amendment or any amendments, schedules or exhibits thereto.

 

(j)            Nothing contained in this First Amendment shall be
deemed to constitute a waiver of any Default or Event of Default, whether or
not Agent or any Lender has knowledge thereof.

 

(Signature Page Follows)

 

6

 

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

 

	
   

  	
  PNC BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Sherry Winick

  
	
   

  	
  Name:

  	
  Sherry
  Winick

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  AVENTINE
  RENEWABLE ENERGY HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas Manuel

  
	
   

  	
  Name:

  	
  Thomas
  Manuel

  
	
   

  	
  Title:

  	
  CEO

  
	
   

  	
   

  	
   

  
	
   

  	
  AVENTINE
  RENEWABLE ENERGY — AURORA WEST, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas Manuel

  
	
   

  	
  Name:

  	
  Thomas
  Manuel

  
	
   

  	
  Title:

  	
  CEO

  
	
   

  	
   

  	
   

  
	
   

  	
  AVENTINE
  RENEWABLE ENERGY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas Manuel

  
	
   

  	
  Name:

  	
  Thomas
  Manuel

  
	
   

  	
  Title:

  	
  CEO

  
	
   

  	
   

  	
   

  
	
   

  	
  AVENTINE
  RENEWABLE ENERGY — MT VERNON, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas Manuel

  
	
   

  	
  Name:

  	
  Thomas
  Manuel

  
	
   

  	
  Title:

  	
  CEO

  
	
   

  	
   

  	
   

  
	
   

  	
  AVENTINE
  POWER, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas Manuel

  
	
   

  	
  Name:

  	
  Thomas
  Manuel

  
	
   

  	
  Title:

  	
  CEO

  
	
   

  	
   

  	
   

  
	
   

  	
  NEBRASKA ENERGY, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas Manuel

  
	
   

  	
  Name:

  	
  Thomas
  Manuel

  
	
   

  	
  Title:

  	
  CEO

  

 

 

ANNEX I

 

Schedules

 

(See Attached)

 

8Exhibit
10.22

 

BRIGADE CAPITAL
MANAGEMENT, LLC

SENATOR INVESTMENT GROUP
LP

 

August 2, 2010

 

Aventine
Renewable Energy Holdings, Inc.

120
North Parkway Drive

Pekin, Illinois  61554

 

Re:  $50,000,000 Senior Secured Notes

 

Ladies
and Gentlemen:

 

Reference is made to the
Chapter 11 bankruptcy cases, lead case no. 09-11214 (KG), before the United
States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”),
in which Aventine Renewable Energy Holdings, Inc. (“ARE Holdings” and, in
the case of reorganized ARE Holdings, the “Issuer”) and certain of its affiliates were
debtors and debtors in possession (collectively with ARE Holdings, the “Debtors”).  Reference is further made to: (i) the
Chapter 11 plan of reorganization filed by the Debtors on December 4, 2009
(as modified or amended, the “Plan”), and (ii) the original letter agreement
among Brigade Capital Management, LLC, Nomura Corporate Research &
Asset Management, Inc., Whitebox Advisors LLC, Senator Investment Group LP
and SEACOR Capital Corporation, dated December 3, 2009 (the “First Backstop Commitment Agreement”).
Capitalized terms used in this letter agreement (the “Second Backstop Commitment Agreement”)
and not otherwise defined shall have the meanings provided in the term sheet
relating to the issuance of additional Senior Secured Notes (the “Senior Secured Notes Term Sheet”)
attached hereto as Exhibit A.(1)

 

The Plan proposed that the
Debtors would obtain exit financing required for the emergence of the Debtors
from Chapter 11 of the Bankruptcy Code through the offering and sale (the “First Offering”) of
$105,000,000 in aggregate principal amount (the “First Offering Amount”) of the Issuer’s
13% senior secured notes due 2015 (the “Senior Secured Notes”) on the terms described
in the Plan and the Senior Secured Notes Term Sheet attached as Exhibit A
to the First Backstop Commitment Agreement. 
Pursuant to the Plan, and subject to the terms and conditions of the
First Backstop Commitment Agreement, each holder of a pre-petition claim with
respect to ARE Holdings’ 10% senior notes due 2017 was entitled to purchase its
respective pro rata amount of the First Offering Amount of Senior Secured
Notes.

 

(1) 
The Senior Secured Notes Term Sheet (including all appendices and schedules
attached thereto) is incorporated into and constitutes a part of this Second
Backstop Commitment Agreement as if set forth herein.

 

 

On
February 24, 2010, the Bankruptcy Court entered an order approving and
confirming the Plan (the “Confirmation
Order”).  Pursuant to the
Plan, the Confirmation Order and the First Backstop Commitment Agreement, on
March 15, 2010, the Issuer issued and sold an aggregate principal amount
of Senior Secured Notes equal to the First Offering Amount.

 

Subject
to the terms and conditions of this Second Backstop Commitment Agreement, the
Issuer may desire to obtain additional financing through the offering and sale
(the “Second Offering”)
of an aggregate principal amount of Senior Secured Notes equal to up to
$50,000,000 (the Second
Offering Amount”). 
Subject to the terms and conditions of this Second Backstop Commitment
Agreement, if the Issuer desires to proceed with the Second Offering, the
Issuer shall use its commercially reasonable efforts to offer and sell the
Senior Secured Notes, in an aggregate principal amount up to the Second
Offering Amount, in a private placement exempt from registration under the
Securities Act of 1933, as amended (the “Securities Act”),
pursuant to Section 4(2) thereunder or other available exemption to (i) qualified
institutional buyers, as that term is defined in Rule 144A under the
Securities Act, (ii) accredited investors, as that term is defined in Rule 501(a) of
Regulation D under the Securities Act, or (iii) a person other than a U.S.
person, as that term is defined in Regulation S under the Securities Act,
located outside the United States (collectively, the “Proposed  Purchasers”).

 

To provide assurance that
the Second Offering will be fully subscribed, subject to the conditions set
forth herein, each of the undersigned (collectively,  the “Backstop
Purchasers”) hereby severally, and not jointly, commits to
purchase its Commitment Percentage, not to exceed its Commitment Amount (as
such terms are defined on Schedule I to the Senior Secured Notes Term
Sheet) of the Senior Secured Notes not purchased by the Proposed Purchasers in
the Second Offering (the “Backstop
Commitment”).

 

In consideration of the
foregoing agreements of the Backstop Purchasers:

 

(a)           in connection with the closing of the Second Offering, each
Backstop Purchaser shall be entitled to purchase Senior Secured Notes issued
to it in the Second Offering at a price per $1,000 aggregate principal
amount of Senior Secured Notes equal to $960,
plus accrued interest from the last interest payment date to the settlement
date; and

 

(b)           subject to satisfying the terms and conditions set forth
herein, the Backstop Purchasers
shall be entitled to a commitment fee (the “Commitment
Fee”) in the amount of $500,000,  payable to the Backstop Purchasers in accordance with their respective
Commitment Percentages, regardless of whether the Second Offering is
consummated; and

 

(c)           each of the Backstop Purchasers
hereby makes the representations, warranties and agreements set forth on Exhibit B
hereto.

 

Notwithstanding
the foregoing, the Commitment Fee shall, subject to satisfying the conditions
set forth herein, be (a) deemed fully earned on the date hereof, and (b) payable
in full in cash upon the consummation of the Second Offering or, if earlier, upon termination of this
Second Backstop Commitment Agreement.

 

2

 

The
Commitment Fee, once paid, shall be nonrefundable, paid in immediately
available funds, without setoff or recoupment and shall not be subject to
defense or offset on account of any claim, defense or counterclaim.

 

In
addition to the satisfaction of each of the conditions set forth in the Senior
Secured Notes Term Sheet, this Second Backstop Commitment is subject to the
negotiation, execution and delivery of definitive documentation satisfactory in
form and substance to the Majority Backstop Purchasers and their counsel in
their sole discretion, to be substantially similar in form and substance to
such documentation customarily provided in an offering of a type similar to the
Second Offering and/or no less favorable to the Backstop Purchasers than such
documentation in the First Offering.  The
agreement of the Backstop Purchasers hereunder is further conditioned upon the
Backstop Purchasers not having become aware of any information or other matter
affecting the Issuer or the transactions contemplated hereby that is
inconsistent in a material and adverse manner with any information or other
matter disclosed to the Backstop Purchasers or otherwise known or made available
to any of the Backstop Purchasers prior to the date hereof, or of any material
omissions from the information which has previously been, or may hereafter be,
furnished by the Issuer, or its representatives or advisors, to the Backstop
Purchasers for their review.

 

More
specifically and for purposes of clarity, the commitment of the Backstop
Purchasers to purchase the Senior Secured Notes set forth in this Second
Backstop Commitment Agreement shall terminate and all of the obligations of the
Issuer (other than the obligations of the Issuer to (i) pay the
reimbursable expenses provided for in this Second Backstop Commitment
Agreement,  (ii) satisfy its
indemnification obligations under this Second Backstop Commitment Agreement and
(iii) pay the Commitment Fee) shall be of no further force or effect, upon
the giving of written notice of termination by the  Majority Backstop Purchasers,  in the event that any Backstop Termination Event occurs (as
set forth in the “Termination of Backstop
Commitments” section of the Senior Secured Notes Term Sheet); provided
that each such Backstop Termination Event may be waived in writing by the
Majority Backstop Purchasers:

 

Whether
or not the transactions contemplated hereby are consummated, the Issuer agrees
to: (i) pay within 10 days of demand the reasonable fees, expenses,
disbursements and charges of the Backstop Purchasers incurred previously or in
the future relating to the exploration and discussion of the Backstop
Commitment or to the preparation and negotiation of this Second Backstop
Commitment Agreement, the Senior Secured Notes Term Sheet and the proposed
documentation and the transactions contemplated hereby and thereby, including,
without limitation, the reasonable fees and expenses of counsel to the Backstop
Purchasers, up to an amount not to exceed $30,000
in the aggregate; and (ii) indemnify and hold harmless the Backstop
Purchasers and their affiliates and each of their respective  directors, officers, partners, members,
representatives, employees, agents, attorneys, financial advisors,
restructuring advisors and other professional advisors, each of the foregoing
solely in their capacities as such with respect to the transactions
contemplated by this Second Backstop Commitment Agreement (each an “Indemnified Person”),
and hold each Indemnified Person harmless from and against any and all losses,
claims, damages, liabilities and expenses, joint or several, to which any such
Indemnified Person may incur, have asserted against it or be involved in as a
result of or arising out of or in any way related to this Second Backstop
Commitment Agreement, the Backstop Commitment the Second Offering, the Senior
Secured Notes Term Sheet, the use of proceeds of 

 

3

 

the
Senior Secured Notes with respect to the Second Offering or any related
transaction or any claim, litigation, investigation or proceeding relating to
any of the foregoing, regardless of whether any of such Indemnified Persons is
a party thereto, and to reimburse each of such Indemnified Persons within 10
days after demand for any reasonable legal or other expenses incurred in
connection with any of the foregoing; provided, however, that the
foregoing indemnity shall not, as to any Indemnified Person, apply to losses,
claims, damages, liabilities or related expenses to the extent they have
resulted from the bad faith, willful misconduct or gross negligence of such
Indemnified Person.

 

Notwithstanding
any other provision to the contrary, no Indemnified Person shall be liable to the Issuer or
its subsidiaries for any special, indirect, consequential or punitive damages
in connection with its activities related to this Second Backstop Commitment
Agreement, the Backstop Commitment, the Second Offering, the Senior Secured Notes
Term Sheet or the use of proceeds of the Senior Secured Notes with respect to
the Second Offering.  The terms set forth
in this indemnification section shall survive termination of this Second
Backstop Commitment Agreement and shall remain in full force and effect
regardless of whether the Second Offering is consummated.

 

This
Second Backstop Commitment Agreement and the rights and obligations hereunder
may not be assigned by the Issuer or its subsidiaries without the prior written
consent of the Majority Backstop Purchasers (and any purported assignment
without such consent shall be null and void). 
This Second Backstop Commitment Agreement is intended to be solely for
the benefit of the parties hereto and is not intended to confer any benefits
upon, or create any rights in favor of, any person other than the parties
hereto and the Indemnified Persons. 
Notwithstanding the foregoing, the Backstop Purchasers may assign all or
any portion of their obligations hereunder to one or more financial institutions
reasonably acceptable to the Issuer; provided, that the Issuer’s consent
shall not be required for such an assignment to a fund affiliated with any
Backstop Purchaser;  provided
further, in the event that a Backstop Purchaser wishes to assign all or
any portion of its obligations hereunder in accordance with the foregoing
provisions (other than to an affiliated fund), the other Backstop Purchaser
shall have a right of first refusal to purchase such obligations in such manner
as they may agree.  Upon any such
assignment (other than an assignment to a fund affiliated with any Backstop
Purchaser without the Issuer’s consent), the obligations of the Backstop
Purchasers in respect of the portion of their obligations so assigned shall
terminate.  In the event that any
Backstop Purchaser fails to meet its obligations under this Second Backstop
Commitment Agreement, the non-breaching Backstop Purchaser shall have the
right, but not the obligation, to assume such obligations.

 

This
Second Backstop Commitment Agreement sets forth the agreement of the Backstop
Purchasers to fund the Backstop Commitment on the terms and subject to the
conditions described herein and in the Senior Secured Notes Term Sheet, and
shall be considered withdrawn if the Backstop Purchasers have not received from
the Issuer and its subsidiaries a fully executed counterpart to this Second
Backstop Commitment Agreement on or before 4:00 p.m. New York City time on
August 2, 2010.

 

This
Second Backstop Commitment Agreement will be governed by, and construed and
interpreted in accordance with, the laws of the State of New York.

 

4

 

By
accepting delivery of this Backstop Commitment Agreement, the Issuer and its
subsidiaries agree that this Second Backstop Commitment Agreement is
confidential and that neither its existence nor the terms hereof will be
disclosed by such entity to any person other than such entity officers,
directors, employees, accountants, attorneys and other advisors, and then only
on a “need to know” basis in connection with
the transactions contemplated hereby and on a confidential basis.
Notwithstanding the foregoing, following the Issuer’s and its subsidiaries’
acceptance of the provisions hereof and delivery of an executed counterpart of
this Second Backstop Commitment Agreement to the Backstop Purchasers as
provided below, the Issuer may (i) make such public disclosures of the
terms and conditions hereof as required by law, in the opinion of counsel to
the Issuer, to be made and (ii) file a copy of this Second Backstop
Commitment Agreement with the Securities and Exchange Commission or in any
public record in which it is required by law to be filed.

 

This
Second Backstop Commitment Agreement may not be amended or waived except in
writing signed by the Issuer and the Majority Backstop Purchasers.  This Second Backstop Commitment Agreement may
be executed in any number of counterparts, each of which will be an original,
and all of which, when taken together, will constitute one agreement.  Delivery of an executed counterpart of this
Second Backstop Commitment Agreement by email in portable document format (.pdf
format) will be effective as delivery of a manually executed counterpart of
this Second Backstop Commitment Agreement.

 

This
Second Backstop Commitment Agreement shall become effective and binding upon
the mutual exchange of fully executed counterparts.

 

If
the foregoing is in accordance with your understanding of our agreement, please
sign this Backstop Commitment Agreement in the space indicated below and return
it to us.

 

	
   

  	
  Very
  truly yours,

  

 

5

 

	
   

  	
  BRIGADE
  CAPITAL MANAGEMENT, LLC, as investment manager for and on behalf of certain
  funds

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Carney Hawks

  
	
   

  	
   

  	
  Name:
  Carney Hawks

  
	
   

  	
   

  	
  Title:
  Partner

  
	
   

  	
   

  
	
   

  	
  Dated:
  August 2, 2010

  

 

Signatures continue on following pages

 

 

	
   

  	
  SENATOR
  INVESTMENT GROUP LP, as investment manager for and on behalf of certain funds

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Edward Larmann

  
	
   

  	
   

  	
  Name:
  Edward Larmann

  
	
   

  	
   

  	
  Title:
  CFO

  
	
   

  	
   

  
	
   

  	
  Dated:
  August 2, 2010

  

 

Signatures continue on following pages

 

 

	
  The
  foregoing is hereby agreed to and accepted:

  	
   

  
	
   

  	
   

  
	
  AVENTINE
  RENEWABLE ENERGY HOLDINGS, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  John W. Castle

  	
   

  
	
   

  	
  Name:
  John W. Castle

  	
   

  
	
   

  	
  Title:
  CFO

  	
   

  
	
   

  	
   

  
	
  Dated:
  August 2, 2010

  	
   

  

 

 

	
  AVENTINE
  RENEWABLE ENERGY, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  John W. Castle

  	
   

  
	
   

  	
  Name:
  John W. Castle

  	
   

  
	
   

  	
  Title:
  CFO

  	
   

  
	
   

  	
   

  
	
  Dated:
  August 2, 2010

  	
   

  

 

 

	
  AVENTINE
  RENEWABLE ENERGY – MT VERNON, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  John W. Castle

  	
   

  
	
   

  	
  Name:
  John W. Castle

  	
   

  
	
   

  	
  Title:
  CFO

  	
   

  
	
   

  	
   

  
	
  Dated:
  August 2, 2010

  	
   

  

 

 

	
  AVENTINE
  RENEWABLE ENERGY – AURORA WEST LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  John W. Castle

  	
   

  
	
   

  	
  Name:
  John W. Castle

  	
   

  
	
   

  	
  Title:
  CFO

  	
   

  
	
   

  	
   

  
	
  Dated:
  August 2, 2010

  	
   

  

 

 

	
  AVENTINE
  POWER, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  John W. Castle

  	
   

  
	
   

  	
  Name:
  John W. Castle

  	
   

  
	
   

  	
  Title:
  CFO

  	
   

  
	
   

  	
   

  
	
  Dated:
  August 2, 2010

  	
   

  

 

 

	
  NEBRASKA
  ENERGY, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  John W. Castle

  	
   

  
	
   

  	
  Name:
  John W. Castle

  	
   

  
	
   

  	
  Title:
  CFO

  	
   

  
	
   

  	
   

  
	
  Dated:
  August 2, 2010

  	
   

  

 

 

 

EXHIBIT A

 

Senior Secured Notes Term Sheet

 

AVENTINE RENEWABLE ENERGY HOLDINGS, INC.

 

$50,000,000 13% Senior Secured Notes due 2015

 

Summary of Principal Terms

 

The
following Summary of Principal Terms (this “Senior
Secured Notes Term Sheet”) provides an outline of a proposed notes
offering by the issuer identified below. 
This Senior Secured Notes Term Sheet is an expression of interest only
and is not meant to be binding on the parties and is meant only as a negotiation
aid to be used by the issuer, any Backstop
Purchaser (defined below) or other person or entity to provide any financing or
to enter into any agreement or contract or any other financing
arrangement.  Accordingly, the parties do
not intend to be bound unless and until they enter into definitive
documentation regarding the subject matter of this Senior Secured Notes Term
Sheet.  The actual terms and conditions
upon which any purchaser might purchase the notes are subject to internal
approvals, execution and delivery of definitive legal documentation by all
required parties and such other terms and conditions as are determined by the
parties; provided that such other terms and conditions are consistent
with the terms of this Senior Secured Notes Term Sheet.  Until disclosed by the issuer, with the prior
written consent of the Majority
Backstop Purchasers  or as permitted by the Backstop Commitment
Agreement (defined below), this Senior Secured Notes Term Sheet and the
information contained herein is strictly confidential and may not be shared with
any person or entity.  Unless otherwise
defined herein, each capitalized term used in this Senior Secured Notes Term
Sheet shall have the same meaning ascribed to such term in the Backstop
Commitment Agreement to which this Senior Secured Notes Term Sheet is attached.

 

	
  Issuer:

  	
   

  	
  Aventine
  Renewable Energy Holdings, Inc. (the “Issuer”).

  
	
   

  	
   

  	
   

  
	
  Securities
  Offered:

  	
   

  	
  Up
  to $50,000,000 in aggregate principal amount (the “Offering
  Amount”) of 13% senior secured notes due 2015 (the “Notes”) issued pursuant to the Indenture,
  dated as of March 15, 2010, among the Issuer, the guarantors named
  therein, as guarantors, and Wilmington Trust, FSB, as trustee and collateral
  agent (the “Indenture”).  Each $1,000 in principal amount of Notes
  will be issued and sold (other than as set forth under “Backstop Purchaser
  Discount”) at an offering price equal to 100%, plus accrued interest from the last interest payment date
  to the settlement date.  

  
	
   

  	
   

  	
   

  
	
  Offering:

  	
   

  	
  The
  Issuer will use its  commercially
  reasonably  efforts to offer and
  sell the Notes, in an aggregate principal amount up to the Offering Amount
  (the “Offering”), in a private
  placement exempt from registration under the Securities Act of 1933, as
  amended (the “Securities Act”), pursuant
  to Section 4(2) thereunder or other available exemption to (i) qualified
  institutional buyers, as that term is defined in Rule 144A under the
  Securities Act, (ii) accredited investors, as that term is defined in
  Rule 501(a) of Regulation D under the Securities Act, or (iii) a
  person other than a U.S. person, as that term is defined in Regulation S
  under the Securities Act, located outside the United States (collectively,
  the “Purchasers”).  To the extent less than all of the Notes
  are issued to the Purchasers, the
  entities which agree to backstop the Offering pursuant to the Backstop
  Commitment Agreement (defined below), the initial list of which is set forth
  on Schedule I hereto (the parties listed on Schedule I, the “Backstop Purchasers” and
  each a “Backstop Purchaser”).
  For the avoidance of doubt, the Backstop Purchasers shall be entitled to 

  

 

 

	
   

  	
   

  	
  participate
  in the Offering in their capacity as
  Purchasers.

   

  On
  the terms and subject to the conditions set forth in that certain commitment
  letter agreement, dated as of August 2, 2010 (the “Backstop
  Commitment Agreement”), each Backstop Purchaser will severally commit to purchase its respective
  Commitment Percentage (defined below) of Notes up to an aggregate
  principal amount equal to the Offering Amount on or after August 15,
  2010.  For purposes hereof, (i) a Backstop Purchaser’s “Commitment Percentage” is the percentage for such purchaser set
  forth on Schedule I hereto and (ii) “Majority
  Backstop Purchasers”
  shall mean the Backstop Purchasers having at least a majority of the
  aggregate Commitment Percentages.

  
	
   

  	
   

  	
   

  
	
  Registered Exchange
  Offer; Registration Rights:

   

  	
   

  	
  In
  connection with the closing of the Offering, the Issuer and the guarantors of
  the Notes shall enter into a registration rights agreement (the “Registration Rights Agreement”) in
  form and substance acceptable to the Majority
  Backstop Purchasers in their sole discretion.  The Registration Rights Agreement shall
  provide, among other things, for the registered exchange of the Notes for a
  new issue of substantially identical debt securities (the “Exchange Registration”).

   

  With
  respect to the Exchange Registration, the Registration Rights Agreement will
  obligate the Issuer and guarantors of the Notes to:

   

  ·      file a
  registration statement with the Securities and Exchange Commission enabling
  the holders of the Notes to exchange the privately issued Notes for publicly
  registered notes with substantially identical terms within 180 days after the
  closing of the Offering;

   

  ·      cause
  such registration statement to become effective within 365 days after the
  closing of the Offering and to complete the exchange offer within 50 days
  after the effective date of such registration statement; and

   

  ·      file a
  shelf registration statement for the resale of the Notes if the Issuer and
  the guarantors of the Notes cannot effect an exchange offer within the time
  periods listed above and in certain other circumstances.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The
  failure of the Issuer and the guarantors of the Notes to meet any of the
  obligations describe above with respect to the Exchange Registration shall
  result in additional interest becoming payable with respect to the Notes
  (including the notes issued in the Exchange Registration) in the amount of
  2.0%.

  
	
   

  	
   

  	
   

  
	
  Use of
  Proceeds:

  	
   

  	
  The
  gross proceeds of the Offering will be used for transaction expenses and
  either applied to replenish funds previously used to construct or acquire
  equipment and real estate pledged to secure the Notes (which replenished
  funds may be used to acquire additional equipment and real estate or for
  other general corporate purposes) or deposited at closing with the collateral
  agent pending use to construct or acquire equipment and real estate pledged
  to secure the Notes. 

  

 

2

 

	
  Backstop Purchaser Discount:

  	
   

  	
  In
  consideration of the agreements of the Backstop Purchasers set forth in the
  Backstop Commitment Agreement, each Backstop Purchaser shall be entitled to
  purchase Notes issued to it in the Offering at a price per $1,000
  aggregate principal amount of Notes equal to $960, plus accrued interest from
  the last interest payment date to the settlement date.  

  
	
   

  	
   

  	
   

  
	
  Commitment Fee:

  	
   

  	
  Subject to satisfying the
  terms and conditions of the Backstop Commitment Agreement, the Backstop Purchasers shall be entitled to a
  commitment fee (the “Commitment Fee”)
  in the amount of $500,000, payable to the Backstop Purchasers in
  accordance with their respective Commitment Percentages, regardless of
  whether the Offering is consummated. 
  The Commitment Fee will be paid at the consummation of the Offering or, if earlier, upon termination of the
  Backstop Commitment Agreement.

  
	
   

  	
   

  	
   

  
	
  Ratings:

  	
   

  	
  If
  not obtained prior to the issue date, the Issuer will use its commercially
  reasonable efforts to obtain ratings for the Notes by either Standard &
  Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.,
  or Moody’s Investors Service, Inc. 
  

  
	
   

  	
   

  	
   

  
	
  Conditions
  Precedent To the Closing:

  	
   

  	
  The
  obligation of the Backstop Purchasers
  to purchase the Notes as set forth in the Backstop Commitment Agreement will
  be conditioned upon satisfaction of each of the following conditions; provided,
  that each of the following conditions may be waived by the Majority Backstop Purchasers in their sole
  discretion:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·      The
  Notes and all documents, instruments and other agreements executed and
  delivered in connection with any of the foregoing (collectively, the “Notes Documents”) shall be in form
  and substance satisfactory to the Majority
  Backstop Purchasers in their
  sole discretion;

   

  ·      All
  reasonable out-of-pocket fees and expenses (including reasonable fees and
  expenses of counsel) required to be paid to each of the Backstop Purchasers
  (in an amount not to exceed $30,000), the trustee and the collateral agent
  for the Notes on or before the closing of the Offering have been paid in full
  in cash;

   

  ·      There
  shall have occurred no material adverse effect on any of (i) the
  operations, performance, prospects, business, assets, properties, or
  condition (financial or otherwise) of the Issuer and its subsidiaries, taken
  as a whole, based on publicly available information and other information
  provided by the Issuer to the Backstop Purchasers since August 2, 2010, (ii) the ability of
  the Issuer and its subsidiaries to perform their respective obligations under
  the Notes Documents and the Indenture or (iii) the ability of the
  noteholders to enforce their rights under the Notes Documents and the
  Indenture (each of the foregoing, a “Material Adverse Change”);
  and

   

  ·      Any and
  all governmental and third party consents and approvals necessary in
  connection with the offer and sale of the Notes, the 

  

 

3

 

	
   

  	
   

  	
  execution
  of the Notes Documents and the transactions contemplated hereby and thereby
  shall have been obtained and shall remain in effect.

  
	
   

  	
   

  	
   

  
	
  Termination of Backstop Commitments:

  	
   

  	
  The
  commitment of the Backstop Purchasers
  to purchase the Notes set forth in the Backstop Commitment Agreement (the “Backstop Commitment”) shall
  terminate and all of the obligations of the Issuer and its subsidiaries
  (other than the obligations of the Issuer and its subsidiaries to (i) pay
  the reimbursable expenses under the Backstop Commitment Agreement, (ii) satisfy
  their indemnification obligations under the Backstop Commitment Agreement and
  (iii) pay the Commitment Fee) shall be of no further force or effect,
  upon the giving of written notice of termination by the Majority Backstop
  Purchasers, in the event that any of the following occurs (each, a “Backstop Termination Event”), each
  of which may be waived in writing by the Majority Backstop Purchasers.

   

  ·     the closing of the Offering does not
  occur on or before September 15, 2010; provided, that that the Majority Backstop Purchasers have not
  acted (or failed to act) in a manner materially inconsistent with this Senior
  Secured Notes Term Sheet;

   

  ·     an action (or failure to act) by the
  Issuer or any of its subsidiaries that is materially inconsistent with this
  Senior Secured Notes Term Sheet, unless such action (or inaction) is cured
  within five business days of receiving written notice thereof from the Majority Backstop Purchasers;

   

  ·     any court of competent jurisdiction or
  other competent governmental or regulatory authority issues an order making
  illegal or otherwise restricting, preventing, or prohibiting the Offering as
  set forth in this Senior Secured Notes Term Sheet in a manner that cannot be
  reasonably and promptly remedied by the Issuer or the Backstop Purchasers;

   

  ·     one or more of the conditions precedent
  to the consummation of the transactions set forth in this Senior Secured
  Notes Term Sheet or to the obligations of the Backstop Purchasers set forth in the  Backstop Commitment Agreement is not
  satisfied or, in the judgment of the Majority Backstop Purchasers,
  becomes impossible to satisfy on or before the closing of the Offering; or

   

  ·     at any time from and after the occurrence
  of a Material Adverse Change.

  
	
   

  	
   

  	
   

  
	
  Closing
  Date:

  	
   

  	
  On
  or after August 15, 2010, but no later than September 15, 2010, as
  specified at least five business days in advance of the closing in a written
  notice delivered by the Issuer to the Backstop Purchasers.

  
	
   

  	
   

  	
   

  
	
  Expenses:

  	
   

  	
  The
  Issuer shall pay all out of pocket costs and expenses of each of the Backstop Purchasers (to the extent required
  hereunder) and the trustee and collateral agent for the Notes (including all
  reasonable fees and expenses of counsel and consultants) in connection with
  the negotiation, preparation, execution and delivery of the Notes Documents,
  any 

  

 

4

 

	
   

  	
   

  	
  amendment or waiver of any provision of the Notes
  Documents and in connection with the enforcement or protection of any of
  their rights and remedies under the Notes Documents, and the issuance of the
  Notes issued to the Backstop Purchasers  and the
  Purchasers.

  

 

5

 

Schedule I

 

Backstop Purchasers

 

	
  Backstop
  Purchasers

  	
   

  	
  Commitment 

  Percentage

  	
   

  	
  Commitment 

  Amount

  	
   

  
	
  Brigade Capital Management, LLC, as investment manager, for and on
  behalf of certain funds  

  	
   

  	
  66.67

  	
  %

  	
  $

  	
  33,335,000

  	
  *

  
	
  Senator Investment Group LP, as investment manager, for and on behalf of
  certain funds  

  	
   

  	
  33.33

  	
  %

  	
  $

  	
  16,665,000

  	
  *

  
	
  TOTAL  

  	
   

  	
  100

  	
  %

  	
  $

  	
  50,000,000

  	
  *

  

 

*  Excluding accrued interest from the last
interest payment date to the settlement date.

 

 

EXHIBIT B

 

Agreement, Representations and Warranties

 

(1)           such Backstop Purchaser acknowledges
that the new Senior Secured Notes subscribed for will not be offered pursuant
to an effective registration statement and will be subject to restrictions on
resale and transfer and may not be sold except as permitted below;

 

(2)           such Backstop Purchaser (or such
account for which such Backstop Purchaser is purchasing Senior Secured Notes)
is acquiring the new Senior Secured Notes for its own account and not with a
view to any distribution of the new Senior Secured Notes in violation of the
Securities Act subject, nevertheless, to the understanding that the disposition
of its property will at all times remain within its control;

 

(3)           such Backstop Purchaser acknowledges
that it is purchasing the new Senior Secured Notes for its own account or for
an account with respect to which it exercises sole investment discretion and
has full power to make these acknowledgments, representations, warranties and
agreements and that it and any such account is either (A) an “Accredited
Investor” (as defined in Rule 501(a) of Regulation D under the
Securities Act) or a “Qualified Institutional Buyer” (as defined in Rule 144A
under the Securities Act) and is aware, and each beneficial owner of such new
Senior Secured Notes has been advised, that the sale of such new Senior Secured
Notes to it is being made in a transaction exempt from registration under the
Securities Act or (B) not a “U.S. person” acquiring any new Senior Secured
Notes in an offshore transaction within the meaning of Regulation S;

 

(4)           such Backstop Purchaser understands
and agrees on its own behalf and on behalf of any accounts for which it is
acting as hereinafter stated that (1) such new Senior Secured Notes are
being offered only in a transaction not involving any public offering within
the meaning of the Securities Act, and (2) that if within at least one
year after the later of (A) the date of original issuance of the new
Senior Secured Notes and (B) the last date in which the Company or any of
its affiliates, within the meaning of Rule 144 under the Securities Act,
was the owner of the new Senior Secured Notes, it decides to resell, pledge or
otherwise transfer such new Senior Secured Notes on which the legend set forth
below appears, such new Senior Secured Notes may be resold, pledged or
transferred only (I) to the Issuer, (II) pursuant to an effective
registration statement under the Securities Act, (III) for so long as the
Senior Secured Notes are eligible for resale pursuant to Rule 144A, to a
person it reasonably believes is a Qualified Institutional Buyer that purchases
for its own account or for the account of a Qualified Institutional Buyer to
whom notice is given that the transfer is being made in reliance on Rule 144A,
(IV) pursuant to offers and sales to non-U.S. persons that occur outside the
United States within the meaning of Regulation S under the Securities Act, (V) to
an Accredited Investor that is acquiring the security for its own account, or
for the account of such an Accredited Investor, for investment purposes and not
with a view to, or for offer or sale in connection with, any distribution in
violation of the Securities Act, or (VI) pursuant to another available
exemption from the registration requirements of the Securities Act, and (3) the
purchaser will, and each subsequent holder is required to, notify any purchaser
of new Senior Secured Notes from it of the resale restrictions referred to in
clause (2) of this paragraph, if then applicable;

 

 

(5)           such Backstop Purchaser understands
that each new Senior Secured Note will contain the following legend, unless
otherwise agreed by the Issuer:

 

THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS NOTE NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
REGISTRATION. THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF (1) REPRESENTS
THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT), (B) IT IS A NON-U.S. PURCHASER AND IS ACQUIRING
THIS NOTE IN AN OFFSHORE TRANSACTION WITHIN THE MEANING OF REGULATION S
UNDER THE SECURITIES ACT OR (C) IT IS AN “ACCREDITED INVESTOR” WITHIN THE
MEANING OF SUBPARAGRAPH (a) OF RULE 501 UNDER THE SECURITIES ACT AND (2) AGREES
TO OFFER, SELL OR OTHERWISE TRANSFER THIS NOTE, PRIOR TO THE DATE WHICH IS ONE
YEAR (OR SUCH OTHER PERIOD THAT MAY BE HEREAFTER PROVIDED UNDER RULE 144
UNDER THE SECURITIES ACT PERMITTING RESALES OF RESTRICTED SECURITIES BY
NON-AFFILIATES WITHOUT RESTRICTION) AFTER THE LATER OF THE ORIGINAL ISSUE DATE
HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS
THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF SUCH NOTE), ONLY (A) TO THE
COMPANY OR ANY OF ITS SUBSIDIARIES, (B) PURSUANT TO A REGISTRATION
STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR
SO LONG AS THE NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON
IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS
AND SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE
MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN “ACCREDITED
INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (a) OF RULE 501 UNDER THE
SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE
ACCOUNT OF SUCH AN ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A
VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION
OF THE SECURITIES ACT OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S
AND THE TRUSTEE’S, OR TRANSFER AGENT’S, AS APPLICABLE, RIGHT PRIOR TO ANY SUCH
OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO
REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES, A
CERTIFICATE OF 

 

 

TRANSFER
IN THE FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND
DELIVERED BY THE TRANSFEROR TO THE TRUSTEE OR TRANSFER AGENT;

 

(6)           such Backstop Purchaser (1) is
able to act on its own behalf for itself (or any such account for which it is purchasing
Senior Secured Notes) in the transactions contemplated by the Second Backstop
Commitment Agreement, (2) has such knowledge and experience in financial
and business matters as to be capable of evaluating the merits and risks of its
prospective investment in the new Senior Secured Notes, and (3) (or the
account for which it is acting) has the ability to bear the economic risks of
its prospective investment in the new Senior Secured Notes and can afford the
complete loss of such investment;

 

(7)           such Backstop Purchaser understands
that the Issuer and the guarantors and others will rely upon the truth and
accuracy of the foregoing acknowledgements, representations, warranties and
agreements and agrees that if any of the acknowledgements, representations,
warranties and agreements made by it by its submission of this Second Backstop
Commitment Agreement are, at any time prior to the consummation of the Second
Offering, no longer accurate, it shall promptly notify the Issuer.  If it is acquiring the new Senior Secured
Notes as a fiduciary or agent for one or more investor accounts, it represents
that it has sole investment discretion with respect to each such account and it
has full power to make the foregoing acknowledgements, representations, warranties
and agreements on behalf of such account;

 

(8)           other than with respect to the
transactions contemplated herein, since the time that such Backstop Purchaser
was first contacted by the Issuer or any other person regarding the
transactions contemplated hereby, neither such Backstop Purchaser nor any
affiliate of such Backstop Purchaser which (1) had knowledge of the
transactions contemplated hereby and (2)(x) has or shares discretion
relating to such Backstop Purchaser’s investments or trading or information
concerning such Backstop Purchaser’s investments, including in respect of the
Senior Secured Notes, or (y) is subject to such Backstop Purchaser’s
review or input concerning such affiliate’s investments or trading
(collectively, “Trading
Affiliates”) has directly or indirectly, nor has any person
acting on behalf of or pursuant to any understanding with such Backstop
Purchaser or Trading Affiliate, effected or agreed to effect any transactions
in the securities of the Issuer (notwithstanding the foregoing, in the case of
a Backstop Purchaser and/or Trading Affiliate that is, individually or
collectively, a multi-managed investment vehicle whereby separate portfolio
managers manage separate portions of such Backstop Purchaser’s or Trading
Affiliate’s assets and the portfolio managers have no direct knowledge of the
investment decisions made by the portfolio managers managing other portions of
such Backstop Purchaser’s or Trading Affiliate’s assets, the representation set
forth above shall apply only with respect to the portion of assets managed by
the portfolio managers that have knowledge about the financing transaction
contemplated by this Second Backstop Commitment Agreement);

 

(9)           other than to other persons party to
this Second Backstop Commitment Agreement and to advisors, such Backstop
Purchaser has maintained the confidentiality of all disclosures made to it in
connection with this transaction (including the existence and terms of this
transaction); and

 

 

(10)         such Backstop Purchaser is aware that the
anti-manipulation rules of Regulation M under the Securities Exchange Act
of 1934, as amended, may apply to sales of the Issuer’s securities and other
activities with respect to the Issuer’s securities by the Backstop Purchasers.

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