Document:

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EXHIBIT 4.7

MIDWAY GAMES INC.

EMPLOYEE STOCK PURCHASE PLAN

     1.  Purpose. The purpose of the Midway Games Inc. Employee Stock Purchase Plan (the
“Plan”) is to provide employees of Midway Games Inc., a Delaware corporation (the
“Company”), and its Subsidiary Companies (as defined below) that are designated to
participate in the Plan the opportunity to participate in the ownership of the Company and to
encourage increased efforts to promote the best interests of such companies by permitting eligible
employees to purchase shares of common stock, $.01 par value, of the Company (“Common
Stock”) at below-market prices. The Plan is intended to qualify as an “employee stock purchase
plan” under section 423 of the Internal Revenue Code of 1986, as amended (the “Code”). For
purposes of the Plan, the term “Subsidiary Companies” shall mean all corporations which are
subsidiary corporations (within the meaning of section 424(f) of the Code) and of which the Company
is the common parent. The Company and its Subsidiary Companies that, from time to time, are
designated by the Company to participate in the Plan are sometimes hereinafter called collectively
the “Participating Companies.”

     2.  Eligibility. Participation in the Plan shall be open to each employee of a
Participating Company who has satisfied each of the following conditions (an “Eligible
Employee”):

          (a) such employee’s customary employment is for more than 20 hours per week; and

          (b) such employee’s customary employment is for more than five months per calendar year.

     No right to purchase Common Stock hereunder shall accrue under the Plan in favor of any person
who is not an Eligible Employee as of the first day of a Purchase Period (as defined in Section 3).

     No Eligible Employee shall acquire a right to purchase Common Stock hereunder if immediately
after receiving such right, such employee would own 5% or more of the total combined voting power
or value of all classes of stock of the Company or any Subsidiary Company (including any stock
attributable to such employee under section 424(d) of the Code or which the employee may purchase
under outstanding options (including the right to purchase Common Stock under the Plan)).

     Notwithstanding anything herein to the contrary, each Eligible Employee’s right to purchase
Common Stock hereunder shall be restricted so that no Eligible Employee’s right to purchase Common
Stock under all employee stock purchase plans qualified under section 423 of the Code and
maintained by the Company or any of its Subsidiary Companies accrues at a rate which exceeds
$25,000 of Fair Market Value (determined as of the date on which the options under each such plan
are considered granted pursuant to section 423 of the Code) (or such other amount as may be
specified under section 423 of the Code) for a calendar year.

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     3.  Effective Date of Plan; Purchase Periods. The Plan shall become effective on March 1,
2007. The Plan shall cease to be effective unless, within 12 months before or after the date of
its adoption by the Board of Directors of the Company (the “Board”), it has been approved
by the stockholders of the Company. If the votes received from the stockholders of the Company are
insufficient to approve the Plan, the Plan shall automatically terminate pursuant to Section 8, and
the cash, if any, credited to each participant’s Purchase Account shall be distributed to such
participant as soon as administratively practicable after the Company certifies the results of such
stockholder vote.

     Eligible Employees shall be permitted to purchase shares of Common Stock as soon as
practicable after the end of each six-month Purchase Period during the term of the Plan. A
“Purchase Period” under the Plan shall be each six-month period beginning March 1 or
September 1.

     4.  Basis of Participation; Payroll Deductions. Subject to compliance with applicable
rules prescribed by the Committee, as defined in Section 12, each Eligible Employee shall be
entitled to enroll in the Plan as of the first day of any Purchase Period which begins on or after
such Eligible Employee has satisfied the eligibility requirements in Section 2 of the Plan.

     To enroll in the Plan, an Eligible Employee shall make a request to the Company or its
designated agent at the time and in the manner specified by the Committee, specifying the amount of
payroll deduction to be applied to the Compensation (as defined below) earned by the employee
during each payroll period during the Purchase Period. The amount of each payroll deduction
specified in such request for each such payroll period shall be a whole percentage, not more than
50%, of a participant’s Compensation or, if permitted by the Committee, a dollar amount; provided,
however, that in no case shall the aggregate deductions from a participant’s Compensation in a
Purchase Period exceed $10,000, or such other amount as may be determined by the Committee.
Subject to compliance with applicable rules prescribed by the Committee, the request shall become
effective on the first day of the Purchase Period following the election period during which the
Company or its designated agent receives such request. For purposes of the Plan, a participant’s
“Compensation” shall mean such participant’s base salary, bonus, commissions, royalties, and
overtime and shift pay, in each case prior to reductions for pre-tax contributions made to a plan
or salary reduction contributions to a plan excludable from income under section 125 of the Code.
For the avoidance of doubt, Compensation shall exclude any other form of remuneration not listed
above, including fringe benefits, severance pay, stay-on bonuses, retirement income,
change-in-control payments, contingent payments, income derived from stock options, stock
appreciation rights and other equity-based compensation and other forms of special remuneration.

     Payroll deductions shall be made for each participant in accordance with such participant’s
request until such participant’s participation in the Plan terminates, such participant’s payroll
deductions are suspended, such participant’s request is revised or the Plan terminates, all as
hereinafter provided.

     Following his or her enrollment in the Plan, a participant may change the amount of his or her
payroll deduction effective as of the first day of any Purchase Period by so directing the Company
or its designated agent at the time and in the manner specified by the Committee. A participant
may not change the amount of his or her payroll deduction effective as of any date

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other than the first day of a Purchase Period, except that a participant may elect to suspend
his or her payroll deductions under the Plan as provided in Section 7.

     Payroll deductions for each participant shall be credited to a purchase account established on
behalf of the participant on the books of the participant’s employer or such employer’s designated
agent (a “Purchase Account”). As soon as practicable following the end of each Purchase
Period, the amount in each participant’s Purchase Account will be applied to the purchase of the
number of whole and fractional shares of Common Stock determined by dividing such amount by the
Purchase Price (as defined in Section 5) for such Purchase Period. No interest shall accrue at any
time for any amount credited to a Purchase Account of a participant.

     The Committee may, in its discretion, establish additional procedures whereby Eligible
Employees may participate in the Plan by means other than payroll deduction. Such other methods of
participating shall be subject to such rules and conditions as the Committee may establish. The
Committee may at any time amend, suspend or terminate any participation procedures established
pursuant to this paragraph without prior notice to any participant or Eligible Employee.

     5.  Purchase Price. The purchase price (the “Purchase Price”) per share of Common
Stock hereunder for any Purchase Period shall be 85% of the Fair Market Value of a share of Common
Stock on the last day of such Purchase Period. If such sum results in a fraction of one cent, the
Purchase Price shall be increased to the next higher full cent. For purposes of the Plan, the
“Fair Market Value” of a share of Common Stock on a given day shall be the closing
transaction price of a share of Common Stock as reported on the New York Stock Exchange (or such
other exchange on which shares of Common Stock are listed) on the date as of which such value is
being determined or, if there shall be no reported transactions on such date, on the next preceding
date for which a transaction was reported. In no event, however, shall the Purchase Price be less
than the par value of a share of Common Stock.

     6.  Purchase Accounts and Issuance of Shares. The Common Stock purchased by each
participant shall be posted to such participant’s Purchase Account as soon as practicable after,
and credited to such participant’s Purchase Account as of, the last day of the Purchase Period with
respect to which the Common Stock was purchased. Except as provided in Section 7 and Section 8, a
participant (or his or her legal representative, as appropriate) will be issued his or her shares
when his or her participation in the Plan is terminated pursuant to Section 7(b), the Plan is
terminated or upon request, but, in the last case, only in whole shares.

     After the close of each Purchase Period, information will be made available to each
participant regarding the entries made to such participant’s Purchase Account, the number of shares
of Common Stock purchased and the applicable Purchase Price.

     The Committee may permit or require that shares be deposited directly with a broker designated
by the Committee or to a designated agent of the Company, and the Committee may use electronic or
automated methods of share transfer. The Committee may require that shares be retained with such
broker or agent for a designated period of time and/or may establish other procedures to permit
tracking of disqualifying dispositions of such shares.

     7.  Suspension and Termination of Participation. (a) Suspension of Payroll
Deductions. A participant may elect at the time and in the manner specified by the Committee
to suspend his or her participation in the Plan, provided such election is received by the Company
or its

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designated agent prior to the date specified by the Committee for suspension of participation
with respect to the Purchase Period for which such suspension is to be effective. Upon any
suspension of participation, the participant’s payroll deductions shall cease, and if the
participant elects, the cash credited to such participant’s Purchase Account on the date of such
suspension shall be delivered as soon as practicable to such participant. If the participant does
not elect to receive such cash, such cash shall be applied to the purchase of shares of Common
Stock, as described in Sections 4, 5 and 6 hereof. A participant who elects to suspend
participation in the Plan shall be permitted to resume participation in the next following Purchase
Period by making a new request to participate at the time and in the manner described in Section 4
hereof.

     (b) Termination of Participation. If the participant dies, terminates employment
with the Participating Companies for any reason, including a termination due to disability or
retirement, or otherwise ceases to be an Eligible Employee, such participant’s participation in the
Plan shall immediately terminate. Upon such terminating event, the cash credited to such
participant’s Purchase Account on the date of such termination shall be delivered as soon as
practicable to such participant or his or her legal representative, as the case may be, and the
number of full shares of Common Stock held for his or her benefit, and a cash payment equal to the
Fair Market Value of any fractional share so held, shall be delivered to the participant or his or
her legal representative, as the case may be, as soon as practicable after such termination.

     (c) Suspension Upon 401(k) Hardship Withdrawal. If a participant makes a hardship
withdrawal from any retirement plan with a cash or deferred arrangement qualified under section
401(k) of the Code, which plan is sponsored, or participated in, by the participant’s employer,
such participant’s payroll deductions under the Plan shall be automatically suspended until the
first day of the Purchase Period that begins at least six months after the date of such hardship
withdrawal. The balance of such participant’s Purchase Account shall be applied to purchase shares
of Common Stock on the next purchase date, except to the extent the participant elects to receive
the cash credited to his or her Purchase Account in accordance with Section 7(a). After the
expiration of such suspension, the participant may resume his or her payroll deductions in
accordance with Section 4.

     (d) Leaves of Absence. A participant who ceases active service with the
Participating Companies by reason of an approved leave of absence, including a leave of absence due
to a short-term disability, shall continue participating in the Plan until the earlier of (i) the
date such participant elects to suspend his or her participation in accordance with Section 7(a) or
(ii) the first day of the next Purchase Period, if the participant has not resumed active service
with a Participating Company on or before such day.

     8.  Termination or Amendment of the Plan. The Company, by action of the Board, may
terminate the Plan at any time, in which case notice of such termination shall be given to all
participants, but any failure to give such notice shall not impair the effectiveness of the
termination.

     Without any action being required, the Plan shall terminate in any event when the maximum
number of shares of Common Stock to be sold under the Plan (as provided in Section 13) has been
purchased. If at any time the number of shares of Common Stock remaining available for purchase
under the Plan is not sufficient to satisfy all then-outstanding

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purchase rights, the Board or Committee may determine an equitable basis of apportioning
available shares of Common Stock among all participants.

     Upon termination of the Plan, the number of full shares of Common Stock held for each
participant’s benefit and a cash payment equal to the Fair Market Value of any fractional share so
held shall be delivered to such participant as soon as practicable after the Plan terminates, and,
except as otherwise provided in Section 15, the cash, if any, credited to such participant’s
Purchase Account, shall also be distributed to such participant as soon as practicable after the
Plan terminates.

     The Company, by action of the Board, may amend the Plan from time to time in any respect for
any reason; provided, however, that no such amendment shall increase the maximum
number of shares of Common Stock which may be purchased under the Plan unless such increase is
approved by the stockholders of the Company in accordance with section 423 of the Code.

     9.  Non-Transferability. Rights acquired under the Plan are not transferable and may be
exercised only by a participant.

     10.  Stockholder’s Rights. No Eligible Employee or participant shall by reason of the Plan
have any rights of a stockholder of the Company until he or she shall acquire a share of Common
Stock as herein provided.

     11.  No Right to Continued Employment. Nothing in the Plan shall impose an obligation on
any Participating Company to continue the employment of a participant or shall lessen or affect a
Participating Company’s right to terminate the employment of a participant at any time for any
reason.

     12.  Administration of the Plan. The Plan shall be administered by the Compensation
Committee of the Board (the “Committee”). The Committee shall have full power and
authority to: (i) interpret and administer the Plan and any instrument or agreement entered into
under the Plan; (ii) establish such rules and regulations and appoint such agents as it shall deem
appropriate for the proper administration of the Plan; and (iii) make any other determination and
take any other action that the Committee deems necessary or desirable for administration of the
Plan. Decisions of the Committee shall be final, conclusive and binding upon all persons,
including the Company, each participant and each other employee of the Company. The Committee may
delegate to any committee, person (whether or not an employee of a Participating Company) or entity
any of its responsibilities or duties hereunder. The Plan shall be interpreted and administered so
as to ensure that all participants have the same rights and privileges, as provided by section
423(b)(5) of the Code.

     13.  Maximum Number of Shares. The maximum number of shares of Common Stock which may be
purchased under the Plan is 3,000,000, subject to adjustment as hereinafter set forth. Shares of
Common Stock sold hereunder may be treasury shares, authorized and unissued shares, shares
purchased in the open market (on an exchange or in negotiated transactions) or any combination
thereof.

     14.  Changes in the Company’s Capital Structure. In the event of any stock split, stock
dividend, recapitalization, reorganization, merger, consolidation, combination, exchange of

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shares, liquidation, spin-off or other similar change in capitalization or event, or any
distribution to holders of shares of Common Stock other than a regular cash dividend, the maximum
number and class of securities which may be purchased under the Plan and the purchase price per
security shall be appropriately adjusted by the Board. The decision of the Board regarding any
such adjustment shall be final, binding and conclusive. If any such adjustment would result in a
fractional security being available under the Plan, such fractional security shall be disregarded.

     15.  Merger or Other Corporate Change. In the event of a merger or other transaction
involving the Company in which shares of Common Stock are exchanged for stock, securities, cash or
other property, each option under the Plan shall be assumed or an equivalent option shall be
substituted by the successor corporation in such transaction, or a parent or subsidiary of such
successor corporation. The Board may elect, however, in the exercise of its sole discretion and in
lieu of such assumption or substitution, to shorten the Purchase Period then in effect by
establishing a new purchase date or to cancel the Purchase Period and refund all amounts credited
to each participant’s Purchase Account. If the Board shortens the Purchase Period then in effect,
the Company shall make its best efforts to notify each participant of such change at least 10
business days prior to the new purchase date, and allow participants to elect to receive the cash
credited to their Purchase Accounts in accordance with Section 7(a).

     16.  Designation of Beneficiary. A participant may file a written designation of a
beneficiary who is to receive any shares and cash, if any, from the participant’s account under the
Plan in the event of such participant’s death subsequent to the last day of a Purchase Period but
prior to delivery to such participant of such shares and cash. In addition, a participant may file
a written designation of a beneficiary who is to receive any cash from the participant’s account
under the Plan in the event of such participant’s death prior to the last day of a Purchase Period.
If a participant is married and the designated beneficiary is not the participant’s spouse,
spousal consent shall be required for such designation to be effective. Such designation of
beneficiary may be changed by the participant at any time by written notice. In the event of the
death of a participant and in the absence of a beneficiary validly designated under the Plan who is
living at the time of such participant’s death, the Company shall deliver such shares and/or cash
to the executor or administrator of the estate of the participant, or if no such executor or
administrator has been appointed (to the knowledge of the Company), the Company, in its discretion,
may deliver such shares and/or cash to the spouse or to any one or more dependents or relatives of
the participant, or if no spouse, dependent or relative is known to the Company, then to such other
person as the Company may designate. All beneficiary designations shall be in such form and
manner as the Company may designate from time to time.

     17.  Notices. Except as otherwise expressly provided herein, (i) any request, election or
notice under the Plan from an Eligible Employee or participant shall be transmitted or delivered to
the Company or its designated agent in the manner specified by the Committee and, subject to any
limitations specified in the Plan, shall be effective when so delivered and (ii) any request,
notice or other communication from the Company or its designated agent that is transmitted or
delivered to Eligible Employees or participants shall be effective when so transmitted or
delivered.

     18.  Compliance with Statutes and Regulations. The Plan, and the Company’s obligation to
sell and deliver shares of Common Stock hereunder, shall be subject to all applicable federal

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and state laws, rules and regulations, and to such approval by any regulatory or governmental
agency as may, in the sole discretion of the Company, be required or desirable.

     19.  Governing Law. The Plan and all determinations made hereunder and actions taken
pursuant hereto, to the extent not otherwise governed by the Code or the laws of the United States,
shall be governed by the laws of the State of Delaware and construed in accordance therewith
without giving effect to principles of conflicts of laws.

     20.  International Participants. To the extent permitted under section 423 of the Code,
without the amendment of the Plan, the Committee may provide for the participation in the Plan by
Eligible Employees who are subject to the laws of foreign countries or jurisdictions on such terms
and conditions different from those specified in the Plan as may in the judgment of the Committee
be necessary or desirable to foster and promote achievement of the purposes of the Plan and, in
furtherance of such purposes the Committee may make such modifications, amendments, procedures,
subplans and the like as may be necessary or advisable to comply with provisions of laws of other
countries or jurisdictions in which the Participating Companies operate or have employees.

7exv10w16

 

Exhibit 10.16

PROMISSORY NOTE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal	 	Loan Date	 	Maturity	 	Loan No.	 	Call/Coll	 	Account	 	Officer	 	Initials
	$2,2000,000.00
	 	 	07-17-2006	 	 	 	10-17-2006	 	 	 	108002938	 	 	 	1E/150	 	 	 	 	 	 	TLG	 	 	 	 

References in the shaded area are for Lender’s use only and do not limit the applicability of this document to any particular
loan or item.

Any item above containing “***” has been omitted due to text length limitations.

	 	 	 	 	 	 	 
	Borrower:

	 	Southern Iowa BioEnergy LLC (TIN: 20-2226223)
	 	Lender:
	 	Great Western Bank
	 

	 	115 So Linden
	 	 	 	Leon
	 

	 	Lamoni, IA 50140
	 	 	 	111 N. Main
	 

	 	 	 	 	 	PO Box 171
	 

	 	 	 	 	 	Leon, IA 50144

	 	 	 	 	 
	Principal Amount: $2,200,000.00

	 	Interest Rate: 12.000%
	 	Date of Note: July 17, 2006

PROMISE TO PAY. Southern Iowa BioEnergy LLC (“Borrower”) promises to pay to Great Western
Bank (“Lender”), or order, in lawful money of the United States of America, the principal amount
of Two Million Two Hundred Thousand & 00/100 Dollars ($2,200,000.00) or so much as may be
outstanding, together with interest at the rate of 12.000% per annum on the unpaid outstanding
principal balance of each advance. Interest shall be calculated from the date of each advance
until repayment of each advance. The interest rate may change under the terms and conditions of
the “INTEREST AFTER DEFAUL” section.

PAYMENT. Borrower will pay this loan in one payment of all outstanding principal plus all
accrued unpaid interest on October 17, 2006. Unless otherwise agreed or required by applicable
law, payments will be applied first to any accrued unpaid interest; then to principal; then to
any unpaid collection costs; and then to any late charges. The annual interest rate for this
Note is computed on a 365/360 basis; that is, by applying the ratio of the annual interest rate
over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the
actual number of days the principal balance is outstanding. Borrower will pay Lender at Lender’s
address shown above or at such other place as Lender may designate in writing.

PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earned
fully as of the date of the loan and will not be subject to refund upon early payment (whether
voluntary or as a result of default), except as otherwise required by law. Except for the
foregoing, Borrower may pay without penalty all or a portion of the amount owed earlier than it
is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of
Borrower’s obligation to continue to make payments. Rather, early payments will reduce the
principal balance due. Borrower agrees not to send Lender payments marked “paid in full”,
“without recourse”, or similar language. If Borrower sends such a payment, Lender may accept it
without losing any of Lender’s rights under this Note, and Borrower will remain obligated to pay
any further amount owed to Lender. All written communications concerning disputed amounts,
including any check or other payment instrument that indicates that the payment constitutes
“payment in full” of the amount owed or that is tendered with other conditions or limitations or
as full satisfaction of a disputed amount must be mailed or delivered to: Great Western Bank,
Leon, 111 N. Main, PO Box 171, Leon, IA 50144.

LATE CHARGE. If a payment is 15 days or more late, Borrower will be charged $50.00.

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest
rate on this Note shall be increased to 21.000% per annum. However, in no event will the
interest rate exceed the maximum interest rate limitations under applicable law.

DEFAULT. Each of the following shall constitute an event of default (“Event of Default”) under
this Note:

Payment Default. Borrower fails to make any payment when due under this Note.

Other Defaults. Borrower fails to comply with or to perform any other term, obligation,
covenant or condition contained in this Note or in any of the related documents or to
comply with or to perform any term, obligation, covenant or condition contained in any
other agreement between Lender and Borrower.

False Statements. Any warranty, representation or statement made or furnished to Lender by
Borrower or on Borrower’s behalf under this Note or the related documents is false or
misleading in any material respect, either now or at the time made or furnished or becomes
false or misleading at any time thereafter.

Death or Insolvency. The dissolution of Borrower (regardless of whether election to
continue is made), any member withdraws from Borrower, or any other termination of
Borrower’s existence as a going business or the death of any member, the insolvency of
Borrower, the appointment of a receiver for any part of Borrower’s property, any assignment
for the benefit of creditors, any type of creditor workout, or the commencement of any
proceeding under any bankruptcy or insolvency laws by or against Borrower.

Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings,
whether by judicial proceeding, self-help, repossession or any other method, by any
creditor of Borrower or by any governmental agency against any collateral securing the
loan. This includes a garnishment of any of Borrower’s accounts, including deposit
accounts, with Lender. However, this Event of Default shall not apply if there is a good
faith dispute by Borrower as to the validity of reasonableness of the claim which is the
basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice
of the creditor of forfeiture proceeding and deposits with Lender monies or a surety bond
for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole
discretion, as being an adequate reserve or bond for the dispute.

Events Affecting Guarantor. Any of the preceding events occurs with respect to any
guarantor, endorser, surety, or accommodation party of any indebtedness or any guarantor,
endorser, surety, or accommodation party dies or becomes incompetent, or revokes or
disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by
this Note. In the event o f a death, Lender, at is option, may, but shall not be required
to, permit the guarantor’s estate to assume unconditionally the obligations arising under
the guaranty in a manner satisfactory to Lender, and, in doing so, cure an Event of
Default.

     Adverse Change. A material adverse change occurs in Borrower’s financial condition, or
Lender believes the prospect of payment or 

     
performance of this Note is impaired.

 

 

					
	 	 	 	 	 
	Loan No. 108002938
	 	PROMISSORY NOTE
	 	Page 2
	 
	 	(Continued)	 	 
	 	 	 	 	 

Cure Provisions. If any default, other than a default in payment is curable and if
Borrower has not been given a notice of a breach of the same provision of this Note within
the preceding twelve (12) months, it may be cured if Borrower, after receiving written
notice from Lender demanding cure of such default: (1) cures the default within twenty
(20) days; or (2) if the cure requires more than twenty (20) days, immediately initiates
steps which Lender deems in Lender’s sole discretion to be sufficient to cure the default
and thereafter continues and completes all reasonable and necessary steps sufficient to
produce compliance as soon as reasonably practical.

LENDER’S RIGHTS. Upon default, Lender may declare the entire unpaid principal balance under the
Note and all accrued unpaid interest immediately due, and than Borrower will pay that amount.

ATTORNEYS’ FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if
Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any
limits under applicable law, Lender’s attorney’s fees and Lender’s legal expenses, whether or not
there is a lawsuit, including without limitation all attorneys’ fees and legal expenses for
bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction),
and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in
addition to all other sums provided by law.

GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the
extent not preempted by federal law, the laws of the State of Iowa without regard to its
conflicts of law provisions. This Note has been accepted by Lender in the State of Iowa.

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in
all Borrower’s accounts with Lender (whether checking, savings, or some other account). This
includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open
in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Borrower authorizes Lender to, to the extent
permitted by applicable law, to charge or setoff all sums owing on the debt against any and all
such accounts.

COLLATERAL. Borrower acknowledges this Note is secured by ALL COLLATERAL INCLUDING BUT NOT
LIMITED TO: Real Estate Mortgage dated 6-12-2006 and Security Agreement dated 6-12-2006 siting
the assignment of Pre-Construction Services Agreement and Personal Guaranties from Leon G.
Kessel, James R. Cornett, Jack Cooley, William Douglas Morain and William T. Higdon dated
6-12-2006.

LINE OF CREDIT. This Note evidences a straight line of credit. Once the total amount of
principal has been advanced, Borrower is not entitled to further loan advances. Advances under
this Note, as well as directions for payment from Borrower’s accounts, may be requested orally or
in writing by Borrower or by an authorized person. Lender may, but need not, require that all
oral requests be confirmed in writing. Borrower agrees to be liable for all sums either: (A)
advanced in accordance with the instructions of an authorized person or (B) credited to any of
Borrower’s accounts with Lender. The unpaid principal balance owing on this Note at any time may
be evidenced by endorsements on this Note or by Lender’s internal records, including daily
computer print-outs. Lender will have no obligation to advance funds under this Note if: (A)
Borrower or any guarantor is in default under the terms of this Note or any agreement that
Borrower or any guarantor has with Lender, including any agreement made in connection with the
signing of this Note; (B) Borrower or any guarantor ceases doing business or is insolvent; (C)
any guarantor seeks, claims or otherwise attempts to limit, modify or revoke such guarantor’s
guarantee of this Note or any other loan with Lender; or (D) Borrower has applied funds provided
pursuant to this Note for purposes other than those authorized by Lender.

PURPOSE OF LOAN. The specific purpose of this loan is: Operating Expenses.

SUCCESSOR INTERESTS. The term of this Note shall be binding upon Borrower, and upon Borrower’s
heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender
and its successors and assigns.

GENERAL PROVISIONS. If any part of this Note cannot be enforced, this fact will not affect the
rest of the Note. Lender may delay or forgo enforcing any of its rights or remedies under this
Note without losing them. Borrower and any other person who signs, guarantees or endorses this
Note, to the extent allowed by law, waive presentment, demand for payment, and notice of
dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in
writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or
endorser, shall be released from liability. All such parties agree that Lender may renew or
extend (repeatedly and for any length of time) this loan or release any party or guarantor or
collateral; or impair, fail to realize upon or perfect Lender’s security interest in the
collateral; and take any other action deemed necessary by Lender without the consent of or notice
to anyone. All such parties also agree that Lender may modify this loan without the consent of
or notice to anyone other than the party with whom the modification is made. The obligations
under this Note are joint and several.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE.
BORROWER AGREES TO THE TERMS OF THE NOTE.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE AND ALL OTHER DOCUMENTS
RELATING TO THIS DEBT.

	 	 	 	 	 	 	 	 	 
	BORROWER:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SOUTHERN IOWA BIOENERGY LLC	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ William T. Higdon
	 	 	 	By:
	 	/s/ Alan Elefson
	 

	 	 
	 	 	 	 	 	 
	 

	 	William T. Higdon, President of Southern Iowa

BioEnergy LLC
	 	 	 	 	 	Alan Elefson, Treasurer of Southern
Iowa BioEnergy LLC
	 

	 	
	 	 	 	 	 	 

 

 

DISBURSEMENT REQUEST AND AUTHORIZATION

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal	 	Loan Date	 	Maturity	 	Loan No.	 	Call/Coll	 	Account	 	Officer	 	Initials
	$2,2000,000.00
	 	 	07-17-2006	 	 	 	10-17-2006	 	 	 	108002938	 	 	 	1E/150	 	 	 	 	TLG	 	 

References in the shaded area are for Lender’s use only and do not limit the applicability of this document to any particular
loan or item.

Any item above containing “***” has been omitted due to text length limitations.

	 	 	 	 	 	 	 
	Borrower:

	 	Southern Iowa BioEnergy LLC (TIN: 20-2226223)
	 	Lender:
	 	Great Western Bank
	 

	 	115 So Linden
	 	 	 	Leon
	 

	 	Lamoni, IA 50140
	 	 	 	111 N. Main
	 

	 	 	 	 	 	PO Box 171
	 

	 	 	 	 	 	Leon, IA 50144

LOAN
TYPE: This is a Fixed Rate (12.000%) Nondisclosable Draw Down Line of Credit Loan
to a Limited Liability Company for $2,200,000.00 due on October 17, 2006.

PRIMARY PURPOSE OF LOAN. The primary purpose of this loan is for:

	 	o	 	Personal, family, or Household Purposes or Personal Investment.
	 
	 	þ	 	Business (Including Real Estate Investment).

SPECIFIC PURPOSE. The specific purpose of this loan is: Operating Expenses.

DISBURSEMENT INSTRUCTIONS. Borrower understands that no loan proceeds will be disbursed until all
of Lender’s conditions for making the loan have been satisfied. Please disburse the loan proceeds
of $2,200,000.00 as follows:

	 	 	 	 	 
	Undisbursed Funds:
	 	$	2,200,000.00	 
	 
	 	 	 
	 
	 	 	 	 
	Note Principal:
	 	$	2,200,000.00	 

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS DISBURSEMENT REQUEST AND AUTHORIZATION
AND ALL OTHER DOCUMENTS RELATING TO THIS DEBT.

FINANCIAL CONDITION. BY SIGNING THIS AUTHORIZATION, BORROWER REPRESENTS AND WARRANTS TO LENDER
THAT THE INFORMATION PROVIDED ABOVE IS TRUE AND CORRECT AND THAT THERE HAS BEEN NO MATERIAL
ADVERSE CHANGE IN BORROWER’S FINANCIAL CONDITION AS DISCLOSED IN BORROWER’S MOST RECENT FINANCIAL
STATEMENT TO LENDER. THIS AUTHORIZATION IS DATED JULY 17, 2006.

	 	 	 	 	 	 	 	 	 
	BORROWER:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SOUTHERN IOWA BIOENERGY LLC	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ William T. Higdon
	 	 	 	By:
	 	/s/ Alan Elefson
	 

	 	 
	 	 	 	 	 	 
	 

	 	William T. Higdon, President of Southern Iowa

BioEnergy LLC
	 	 	 	 	 	Alan Elefson, Treasurer of Southern
Iowa BioEnergy LLC
	 

	 	 
	 	 	 	 	 	 

 

 

NOTICE OF FINAL AGREEMENT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal	 	Loan Date	 	Maturity	 	Loan No.	 	Call/Coll	 	Account	 	Officer	 	Initials
	$2,2000,000.00
	 	 	07-17-2006	 	 	 	10-17-2006	 	 	 	108002938	 	 	 	1E/150	 	 	 	 	TLG	 	 

References in the shaded area are for Lender’s use only and do not limit the applicability of this document to any particular
loan or item.

Any item above containing “***” has been omitted due to text length limitations.

	 	 	 	 	 	 	 
	Borrower:

	 	Southern Iowa BioEnergy LLC (TIN: 20-2226223)
	 	Lender:
	 	Great Western Bank
	 

	 	115 So Linden
	 	 	 	Leon
	 

	 	Lamoni, IA 50140
	 	 	 	111 N. Main
	 

	 	 	 	 	 	PO Box 171
	 

	 	 	 	 	 	Leon, IA 50144

IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THE LOAN AGREEMENT SHOULD
BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE.
NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THE WRITTEN LOAN
AGREEMENT MAY BE LEGALLY ENFORCED. BORROWER MAY CHANGE THE TERMS OF THE
LOAN AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT.

As used in this Notice, the following terms have the following meanings:

Loan.
The term “Loan” means the following described loan: a Fixed
Rate (12.000%) Nondisclosable Draw Down Line of Credit Loan to a
Limited Liability Company for $2,200,000.00 due on October 17, 2006.

Loan Agreement. The term “Loan Agreement” means one or more promises,
promissory notes, agreements, undertakings, security agreements, deeds of
trust or other documents, or commitments, or any combination of those
actions or documents, relating to the Loan, including without limitation
the following:

LOAN DOCUMENTS

	 	 	 
	LLC Resolution: Southern Iowa BioEnergy LLC

	 	Promissory Note
	Disbursement Request and Authorization

	 	Notice of Final Agreement

Parties. The term “Parties” means Great Western Bank and any and all
entities or individuals who are obligated to repay the loan or have
pledged property as security for the Loan, including without limitation
the following:

	 	 	 	 	 
	 

	 	Borrower:
	 	Southern Iowa BioEnergy LLC

Each Party who signs below, other than Great Western Bank, acknowledges, represents,
and warrants to Great Western Bank that it has received, read and understood this
Notice of Final Agreement. This Notice is dated July 17, 2006.

	 	 	 	 	 	 	 	 	 
	BORROWER:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SOUTHERN IOWA BIOENERGY LLC	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ William T. Higdon
	 	 	 	By:
	 	/s/ Alan Elefson
	 

	 	 
	 	 	 	 	 	 
	 

	 	William T. Higdon, President of Southern Iowa

BioEnergy LLC
	 	 	 	 	 	Alan Elefson, Treasurer of
Southern Iowa

 BioEnergy LLC
	 

	 	 
	 	 	 	 	 	 

	 	 	 	 	 
	LENDER:	 	 
	 
	 	 	 	 
	GREAT WESTERN BANK	 	 
	 
	X

	 	/s/ Terry Geiger
 

Terry Geiger, Group President
	 	 

 

 

CHANGE IN TERMS AGREEMENT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Principal	 	Loan Date	 	Maturity	 	Loan No.	 	Call/Coll	 	Account	 	Officer	 	Initials
	$2,2000,000.00
	 	 	07-17-2006	 	 	 	10-17-2006	 	 	 	108002938	 	 	 	1E/150	 	 	 	 	TLG	 	 

References in the shaded area are for Lender’s use only and do not limit the applicability of this
document to any particular loan or item.

Any item above containing “***” has been omitted due to text length limitations.

	 	 	 	 	 	 	 
	Borrower:

	 	Southern Iowa BioEnergy LLC (TIN: 20-2226223)
	 	Lender:
	 	Great Western Bank
	 

	 	115 So Linden
	 	 	 	Leon
	 

	 	Lamoni, IA 50140
	 	 	 	111 N. Main
	 

	 	 	 	 	 	PO Box 171
	 

	 	 	 	 	 	Leon, IA 50144

	 	 	 	 	 
	Principal Amount: $2,200,000.00

	 	Interest Rate: 12.000%
	 	Date of Agreement: October 4, 2006

DESCRIPTION OF CHANGE IN TERMS. Extend the maturity date of the loan to 4-17-2007. All other
terms remain unchanged.

CONTINUING VALIDITY. Except as expressly changed by this Agreement, the terms of the original
obligation or obligations, including all agreements evidenced or securing the obligation(s),
remain unchanged and in full force and effect. Consent by Lender to this Agreement does not
waive Lender’s right to strict performance of the obligation(s) as changed, nor obligate Lender
to make any future change in terms. Nothing in this Agreement will constitute a satisfaction of
the obligation(s). It is the intention of the Lender to retain as liable parties all makers and
endorsers of the original obligation(s), including accommodation parties, unless a party is
expressly released by Lender in writing. Any maker or endorser, including accommodation makers,
will not be released by virtue of this Agreement. If any person who signed the original
obligation does not sign this Agreement below, then all persons signing below acknowledge that
this Agreement is given conditionally, based on the representation to Lender that the non-signing
party consents to the changes and provisions of this Agreement or otherwise will not be released
by it. This waiver applies not only to any initial extension, modification or release, but also
to all such subsequent actions.

PRIOR TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS
AGREEMENT. BORROWER AGREES TO THE TERMS OF THE AGREEMENT.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS CHANGE IN TERMS AGREEMENT AND ALL OTHER
DOCUMENTS RELATING TO THIS DEBT.

	 	 	 	 	 	 	 	 	 
	BORROWER:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SOUTHERN IOWA BIOENERGY LLC	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ William T. Higdon
	 	 	 	By:
	 	/s/ Alan Elefson
	 

	 	 
	 	 	 	 	 	 
	 

	 	William T. Higdon, President of Southern Iowa

BioEnergy LLC
	 	 	 	 	 	Alan Elefson, Treasurer of
Southern 

Iowa BioEnergy LLC

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