Document:

Exhibit 10.1

 

 

	
   

  	
  UBS Bank USA

  
	
   

  	
  Variable Credit Line
  Account Number: (if applicable)

  
	
   

  	
  5V

  	
  54463

  	
  UJ

  
	
   

  	
  Fixed Credit Line Account
  Number: (if applicable)

  
	
   

  	
  5F

  	
   

  	
   

  
	
   

  	
  SS# / TIN

  	
   

  	
   

  
	
  Credit Line Agreement

  	
   

  	
  Internal Use Only

  

 

Borrower Agreement

 

BY SIGNING BELOW, THE BORROWER
UNDERSTANDS, ACKNOWLEDGES AND AGREES THAT:

 

A               The Borrower has received and
read a copy of this Borrower Agreement, the attached Credit Line Account
Application and Agreement (including the Credit Line Agreement following this
Borrower Agreement) and the Loan Disclosure Statement explaining the risk
factors that the Borrower should consider before obtaining a loan secured by
the Borrower’s securities account.  The
Borrower agrees to be bound by the terms and conditions contained in the Credit
Line Account Application and Agreement (including the
Credit Line Agreement following this Borrower Agreement) (which terms and
conditions are incorporated by reference). Capitalized terms used in this
Borrower Agreement have the meanings set forth in the Credit
Line Agreement.

 

B               THE
BORROWER UNDERSTANDS AND AGREES THAT UBS BANK USA MAY DEMAND FULL OR
PARTIAL PAYMENT OF THE CREDIT LINE OBLIGATIONS, AT ITS SOLE OPTION AND WITHOUT
CAUSE, AT ANY TIME, AND THAT NEITHER FIXED RATE ADVANCES NOR VARIABLE RATE
ADVANCES ARE EXTENDED FOR ANY SPECIFIC TERM OR DURATION. THE BORROWER
UNDERSTANDS AND AGREES THAT ALL ADVANCES ARE SUBJECT TO COLLATERAL MAINTENANCE
REQUIREMENTS. THE BORROWER UNDERSTANDS THAT UBS BANK USA MAY, AT ANY TIME, IN
ITS DISCRETION, TERMINATE AND CANCEL THE CREDIT LINE REGARDLESS OF WHETHER OR
NOT AN EVENT HAS OCCURRED.

 

C               UNLESS
DISCLOSED IN WRITING TO UBS BANK USA AT THE TIME OF THIS AGREEMENT, AND
APPROVED BY UBS BANK USA, THE BORROWER AGREES NOT TO USE THE PROCEEDS OF ANY
ADVANCE EITHER TO PURCHASE, CARRY OR TRADE IN SECURITIES OR TO REPAY ANY DEBT (I) USED
TO PURCHASE, CARRY OR TRADE IN SECURITIES OR (II) TO ANY AFFILIATE OF UBS
BANK USA. THE BORROWER WILL BE DEEMED TO REPEAT THIS AGREEMENT EACH TIME THE
BORROWER REQUESTS AN ADVANCE.

 

D               THE
BORROWER UNDERSTANDS THAT BORROWING USING SECURITIES AS COLLATERAL ENTAILS
RISKS. SHOULD THE VALUE OF THE SECURITIES IN THE COLLATERAL ACCOUNT DECLINE
BELOW THE REQUIRED COLLATERAL MAINTENANCE REQUIREMENTS, UBS BANK USA MAY REQUIRE
THAT THE BORROWER POST ADDITIONAL COLLATERAL, REPAY PART OR ALL OF THE
BORROWER’S LOAN AND/OR SELL THE BORROWER’S SECURITIES. ANY REQUIRED
LIQUIDATIONS MAY INTERRUPT THE BORROWER’S LONG-TERM INVESTMENT STRATEGIES
AND MAY RESULT IN ADVERSE TAX CONSEQUENCES.

 

E                 Neither
UBS Bank USA nor UBS Financial Services Inc. provides legal or tax advice and
nothing herein shall be construed as providing legal or tax advice.

 

F                 Upon execution
of this Credit Line Account Application and Agreement, the Borrower
declares that all of the information requested in the Application and supplied
by the Borrower is true and accurate and further agrees to promptly notify UBS
Bank USA in writing of any material changes to any or all of the information
contained in the Application including information relating to the Borrower’s
financial situation.

 

G               Subject to any applicable
financial privacy laws and regulations, data regarding the Borrower and the
Borrower’s securities accounts may be shared with UBS Bank USA affiliates.
Subject to any applicable financial privacy laws and regulations, the Borrower
requests that UBS Bank USA share such personal financial data with
non-affiliates of UBS Bank USA as is necessary or advisable to
effect, administer or enforce, on to service, process
or maintain, all transactions and accounts contemplated by this Agreement.

 

H               The Borrower
authorizes UBS Bank USA and UBS Financial Services Inc. to obtain a  credit report or
other credit references concerning the Borrower (including making verbal or written
inquiries concerning credit history) or to otherwise verify or update credit
information given to UBS Bank USA at any time.  The Borrower authorizes the release of this
credit report or other credit information to UBS Bank USA affiliates as it
deems necessary or advisable to effect, administer or enforce, or to service,
process or maintain all transactions and accounts contemplated by this
Agreement, and for the purpose of offering additional products, from time to time, to
the Borrower. The Borrower authorizes UBS Bank USA to exchange Borrower information with any party
it reasonably believes is conducting a legitimate credit inquiry in accordance
with the Fair Credit Reporting Act. UBS Bank USA may also share credit or other
transactional experience with the Borrower’s designated UBS Financial
Services Inc. Financial Advisor or other parties designated by the Borrower.

 

	
  I

  	
   

  	
  UBS Bank USA is subject to examination by various
  federal, state and self-regulatory organizations and the books and records
  maintained by UBS Bank USA are subject to inspection and subpoena by these
  regulators and by federal, state, and local law enforcement
  officials. The Borrower also acknowledges that such
  regulators and officials may, pursuant to treaty or other arrangements, in
  turn disclose such information to the officials or regulators of other
  countries, and that U.S. courts may be required to compel UBS Bank USA to
  disclose such information to the officials or regulators of other countries
  The Borrower agrees that UBS Bank USA may disclose to such regulators and
  officials information about the Borrower and transactions in the credit line
  account or other accounts at UBS Bank USA without notice to the Borrower. In
  addition, UBS Bank USA may in the context of a private dispute be required by
  subpoena or other judicial process to disclose information or produce documentation
  related to the Borrower, the credit line account or other accounts at UBS
  Bank USA. The Borrower acknowledges and agrees
  that UBS Bank USA reserves the right, in its sole discretion, to respond to
  subpoenas and judicial process as it deems appropriate.

  

 

J                 To help the government fight the funding of
terrorism and money laundering activities, Federal law requires all financial
institutions to obtain, verify, and record information that identifies each person who opens an
account. When the Borrower opens an account with UBS Bank USA, UBS Bank USA
will ask for the Borrower’s name, address, and other information that will
allow UBS Bank USA to identify the Borrower.  UBS Bank USA may also ask to see other
identifying documents. UBS Financial Services Inc. and UBS Bank USA are firmly
committed to compliance with all applicable laws, rules and regulations,
including those related to combating money laundering. The Borrower understands
and agrees that the Borrower must take all necessary steps to comply with the
anti-money laundering laws, rules and regulations of the Borrower’s
country of origin, country of residence and the situs of the Borrower’s
transaction.

 

K     UBS Bank USA and
its affiliates will act as creditors and, accordingly, their interests may be
inconsistent with, and potentially adverse to, the Borrower’s interests. As a lender and
consistent with normal lending practice, UBS Bank USA may take any steps
necessary to perfect its interest in the Credit Line, issue a call for
additional collateral or force the sale of the Borrower’s securities if
the Borrower’s actions or inactions call the Borrower’s creditworthiness
into question. Neither UBS Bank USA nor UBS Financial Services Inc. will act as
Client’s investment advisor with respect to any liquidation. In fact UBS Bank
USA will act as a creditor and UBS Financial Services Inc. will act as a
securities intermediary.

 

L     The Borrower understands
that, if the Collateral Account is a managed account with UBS Financial
Services Inc., (i) in addition to any fees payable to UBS Financial
Services Inc. in connection with the Borrower’s managed account, interest will
be payable to the Bank on an amount advanced to the Borrower in connection with
the Credit Line Account, and (ii) the performance of the managed account might
not exceed the managed account fees and the interest expense payable to the Bank in
which case the Borrower’s overall rate of return will be less than the costs
associated with the managed account.

 

M             UBS Bank USA may
provide copies of all credit line account statements to UBS Financial Services
Inc. and to any Guarantor. The Borrower acknowledges and agrees that UBS Bank
USA may share any and all information regarding the Borrower and the Borrower’s
accounts at UBS Bank USA with UBS Financial Services Inc. UBS Financial
Services Inc. may provide copies of all statements and confirmations concerning
each Collateral Account to UBS Bank USA at such times and in such manner as UBS
Bank USA may request and may share with UBS Bank USA any and all information
regarding the Borrower and the Borrower’s accounts with UBS Financial Services
Inc.

 

	
  IN WITNESS WHEREOF, the
  undersigned (“Borrower”) has signed this Agreement, or has caused this
  Agreement to be signed in its 

  
	
  name by its duly authorized
  representatives, as of the date indicated below.

  	
   

  	
  DATE: 8/12/08

  

 

Name of Borrower: GENETRONICS INC.

 

	
  By:

  	
  /s/ Avtar Dhillon

  	
   

  	
  Title: Chief Executive
  Officer/CEO

  
	
   

  	
  (Signature of Authorized
  Signatory of Borrower)* AVTAR DHILLON

  	
   

  	
  (Title of Authorized
  Signatory of Borrower)

  

 

	
  By:  

  	
  /s/ Peter Kies

  	
   

  	
  Title: Chief Financial
  Officer/CFO

  
	
   

  	
  (Signature of Authorized
  Signatory of Borrower)* PETER KIES

  	
   

  	
  (Title of Authorized
  Signatory of Borrower)

  

 

The authorized signatory of
the Borrower must be one of the Authorized Persons designated on the applicable
UBS Bank USA supplemental form excecuted by the Borrower (e.g., the
Supplemental Corporate Resolution Form (HP Form)).

 

1

 

 

	
   

  	
  UBS Bank USA

  
	
   

  	
  Variable Credit Line
  Account Number: (if applicable)

  
	
   

  	
  5V

  	
  54463

  	
  UJ

  
	
   

  	
  Fixed Credit Line Account
  Number: (if applicable)

  
	
   

  	
  5F

  	
   

  	
   

  
	
   

  	
  SS# / TIN

  	
   

  	
   

  
	
  Credit Line Agreement

  	
   

  	
  Internal Use Only

  

 

Credit Line Agreement - Demand
Facility

 

THIS CREDIT LINE AGREEMENT
(as it may be amended, supplemented or otherwise modified from time to time,
this “Agreement”) is made by and between the party or parties signing as the
Borrower on the Application to which this Agreement is attached (together and
individually, the “Borrower”) and UBS Bank USA (the “Bank”) and, together with
the Application, establishes the terms and conditions that will govern the
uncommitted demand loan facility made available to the Borrower by the Bank.
This Agreement becomes effective upon the earlier of (i) notice from the
Bank (which notice may be oral or written) to the Borrower that the Credit Line
has been approved and (ii) the Bank making an Advance to the Borrower.

 

1)         Definitions

 

·                     “Advance” means any Fixed
Rate Advance or Variable Rate Advance made by the Bank pursuant to this
Agreement.

 

·                     “Advance Advice” means a
written or electronic notice by the Bank, sent to the Borrower, the Borrower’s
financial advisor at UBS Financial Services Inc. or any other party designated
by the Borrower to receive the notice, confirming that a requested Advance will
be a Fixed Rate Advance and specifying the amount, fixed rate of interest and
Interest Period for the Fixed Rate Advance.

 

·                     “Application” means the
Credit Line Account Application and Agreement that the Borrower has completed
and submitted to the Bank and into which this Agreement is incorporated by
reference.

 

·                     “Approved Amount” means the
maximum principal amount of Advances that is permitted to be outstanding under
the Credit Line at any time, as specified in writing by the Bank.

 

·                     “Breakage Costs” and “Breakage
Fee” have the meanings specified in Section 6(b).

 

·                     “Business Day” means a day on
which both of the Bank and UBS Financial Services Inc. are open for business.
For notices and determinations of LIBOR, Business Day must also be a day for
trading by and between banks in U.S. dollar deposits in the London interbank
market.

 

·                     “Collateral” has the meaning
specified in Section 8(a).

 

·                     “Collateral Account” means,
individually and collectively, each account of the Borrower or Pledgor at UBS
Financial Services Inc. or UBS International Inc., as applicable, that is
either identified as a Collateral Account on the Application to which this
Agreement is attached or subsequently identified as a Collateral Account by the
Borrower or Pledgor, either directly or indirectly through the Borrower’s or
Pledgor’s UBS Financial Services Inc. financial advisor, together with all
successors to those identified accounts, irrespective of whether the successor
account bears a different name or account number.

 

·                     “Credit Line” has the meaning
specified in Section 2(a).

 

·                     “Credit Line Account” means
each Fixed Rate Account and each Variable Rate Account of the Borrower that is
established by the Bank in connection with this Agreement and either identified
on the Application or subsequently identified as a Credit Line Account by the
Bank by notice to the Borrower, together with all successors to those
identified accounts, irrespective of whether any successor account bears a
different name or account number.

 

·                     “Credit Line Obligations”
means, at any time of determination, the aggregate of the outstanding principal
amounts of all Advances, together with all accrued but unpaid interest on the
outstanding principal amounts, any and all fees or other charges payable in
connection with the Advances and any costs of collection (including reasonable
attorneys’ fees) and other amounts payable by the Borrower under this
Agreement, and any and all other present or future obligations of the Borrower
and the other respective Loan Parties under this Agreement and the related
agreements, whether absolute or contingent, whether or not due or mature.

 

·                     “Event” means any of the
events listed in Section 10.

 

·                     “Fixed Rate Advance” means
any advance made under the Credit Line that accrues interest at a fixed rate.

 

·                     “Guarantor” means any party
who guaranties the payment and performance of the Credit Line Obligations.

 

·                     “Guaranty Agreement” means an
agreement pursuant to which a Guarantor agrees to guaranty payment of the
Credit Line Obligations.

 

·                     “Interest Period” means, for
a Fixed Rate Advance, the number of days, weeks or months requested by the
Borrower and confirmed in the Advance Advice relating to the Fixed Rate
Advance, commencing on the date of (i) the extension of the Fixed Rate Advance
or (ii) any renewal of the Fixed Rate Advance and, in each case, ending on
the last day of the period. If the last day is not a Business Day, then the
Interest Period will end on the immediately succeeding Business Day. If the
last Business Day would fall in the next calendar month, the Interest Period
will end on the immediately preceding Business Day. Each monthly or longer
Interest Period that commences on the last Business Day of a calendar month
(or on any day for which there is no numerically corresponding day in the
appropriate subsequent calendar month) will end on the last Business Day of the
appropriate calendar month.

 

·       “Joint Borrower” has
the meaning specified in Section 7(a).

 

·       “LIBOR” means, as of any date
of determination:

 

(i)    for Variable Rate Advances,
the prevailing London Interbank Offered Rate for deposits in U.S. dollars
having a maturity of 30 days as published in The Wall Street Journal “Money
Rates” Table on the date of the Advance; and

 

(ii)   for Fixed Rate
Advances of one (1) year or less, the prevailing London Interbank Offered
Rate for deposits in U.S. dollars having a maturity corresponding to the length
of the interest Period applicable to the Advance as quoted by the Bloomberg
service at 4:00 a.m. Eastern Standard Time on the date of the Advance.

 

If the rate ceases to be regularly published by The Wall Street Journal
or stated by the Bloomberg Service, as applicable, LIBOR will be determined by
the Bank in its sole and absolute discretion. For any day that is not a
Business Day, LIBOR will be the applicable LIBOR in effect immediately prior to
that day.

 

·                     “Loan Party” means each
Borrower, Guarantor and Pledgor, each in their respective capacities under this
Agreement or any related agreement.

 

·                     “Person” means any natural
person, company, corporation, firm, partnership, joint venture, limited
liability company or limited liability partnership, association, organization
or any other legal entity.

 

·       “Pledgor” means each Person
who pledges to the Bank any Collateral to secure the Credit Line Obligations
(or to secure the

 

2

 

 

	
   

  	
  UBS Bank USA

  
	
   

  	
  Variable Credit Line
  Account Number: (if applicable)

  
	
   

  	
  5V

  	
  54463

  	
  UJ

  
	
   

  	
  Fixed Credit Line Account
  Number: (if applicable)

  
	
   

  	
  5F

  	
   

  	
   

  
	
   

  	
  SS# / TIN

  	
   

  	
   

  
	
  Credit Line Agreement

  	
   

  	
  Internal Use Only

  
					

 

obligations
of any Guarantor with respect to the guaranty of the Credit Line Obligations).
Pledgors will include (i) each Borrower who pledges Collateral to secure
the Credit Line Obligations, (ii) each Guarantor who has pledged
collateral to secure the Credit Line Obligations or its obligations under a
Guaranty Agreement, (iii) any spouse of a Borrower who executes a spouse’s
pledge and consent agreement with respect to a jointly held collateral account,
(iv) any other joint account holder who executes a joint account holder pledge
and consent agreement with respect to a jointly held collateral account, and (v) any
other Person who executes a pledge agreement with respect to the Credit Line.

 

·                     “Premier Credit Line” means
any Credit Line with an Approved Amount equal to or greater than $250,000.

 

·                     “Prime Credit Line” means
any Credit Line with an Approved Amount less than $250,000

 

·                     “Prime Rate” means the
floating “Prime Rate” as published in The Wall Street Journal “Money Rates”
Table from time to time.  The Prime Rate
will change as and when the Prime Rate as published in The Wall Street Journal
changes. In the event that The Wall Street Journal does not publish a Prime
Rate, the Prime Rate will be the rate as determined by the Bank in its sole and
absolute discretion.

 

·                     “Securities Intermediary”
has the meaning specified in Section 9.

 

·                     “UBS Bank USA Fixed Funding
Rate” means, as of any date of determination for Fixed Rate Advances of greater
than one (1) year, an internally computed rate established from
time-to-time by the Bank, in its sole discretion, based upon the LIBOR swap
curve for a corresponding period as well as the Bank’s assessment of other
lending rates charged in the financial markets.

 

·                     “UBS Financial
Services Inc.” means UBS Financial Services Inc. and its successors.

 

·                     “UBS-1” means UBS
International Inc. and its successors.

 

·                     “Variable Rate Advance”
means any advance made under the Credit Line that accrues interest at a
variable rate.”

 

2)         Establishment of Credit Line; Termination

 

a)          Upon the effectiveness of
this Agreement, the Bank establishes an UNCOMMITTED,
DEMAND revolving line of credit (the “Credit Line”) in an amount up to the Approved Amount. The
Bank may, from time to time upon request of the Borrower, without obligation
and in its sole and absolute discretion, authorize and make one or more
Advances to the Borrower. The Borrower acknowledges that the Bank has no
obligation to make any Advances to the Borrower. The Bank may carry each
Variable Rate Advance in a Variable Rate Account and may carry each Fixed Rate
Advance in a Fixed Rate Account, but all Advances will constitute extensions of
credit pursuant to a single Credit Line. The Approved Amount will be
determined, and may be adjusted from time to time, by the Bank  in
its sole and absolute discretion.

 

b)         THE BORROWER AND EACH OTHER LOAN PARTY UNDERSTAND AND AGREE THAT THE BANK
MAY DEMAND FULL OR PARTIAL PAYMENT OF THE CREDIT LINE
OBLIGATIONS, AT ITS SOLE AND ABSOLUTE DISCRETION AND WITHOUT CAUSE, AT ANY
TIME, AND THAT NEITHER FIXED RATE ADVANCES NOR VARIABLE RATE ADVANCES ARE EXTENDED FOR ANY SPECIFIC TERM OR DURATION.

 

c)          UNLESS
DISCLOSED IN WRITING TO THE BANK AT THE TIME OF THE APPLICATION, AND APPROVED
BY THE BANK, THE BORROWER AGREES NOT TO USE THE PROCEEDS OF ANY ADVANCE EITHER
TO PURCHASE, CARRY OR TRADE IN SECURITIES OR TO REPAY ANY DEBT (I) USED TO
PURCHASE, CARRY OR TRADE IN SECURITIES OR (II) TO ANY AFFILIATE OF THE
BANK. THE BORROWER WILL BE DEEMED TO REPEAT THE AGREEMENT IN THIS SECTION 2(C) EACH
TIME IT REQUESTS AN ADVANCE.

 

d)         Prior to the first Advance under
the Credit Line, the Borrower
must sign and deliver to the Bank a Federal Reserve Form U-1 and all other
documentation as the Bank may require. The Borrower acknowledges that neither
the Bank nor any of its affiliates has advised the Borrower in any manner
regarding the purposes for which the Credit Line will be used.

 

e)          The Borrower consents and agrees that, in connection
with establishing the Credit Line Account, approving any Advances to the Borrower or for any other purpose
associated with the Credit Line, the Bank may obtain a consumer or other credit
report from a credit reporting agency relating to the Borrower’s credit
history. Upon request by the Borrower, the Bank will inform the Borrower: (i) whether
or not a consumer or other credit report was requested; and (ii) if so,
the name and address of the consumer or other credit reporting agency that
furnished the report.

 

f)            The Borrower understands that the Bank will, directly
or indirectly, pay a portion of the interest that it  receives to the
Borrower’s financial advisor at UBS Financial Services Inc. or one of its
affiliates.  To the extent permitted by
applicable law, the Bank may also charge the Borrower fees for establishing and
servicing the Credit Line Account.

 

g)         Following each month in which there is activity in
the Borrower’s Credit Line Account in amounts greater than $1, the Borrower
will receive an account statement showing the new balance, the amount of any
new Advances, year to date interest charges, payments and other charges and
credits that have been registered or posted to the Credit Line Account.

 

h)         Each of the Loan Parties understands and agrees that
the Bank may, at any time, in its sole and absolute discretion, terminate and
cancel the Credit Line regardless of whether or not an Event has occurred. In
the event the Bank terminates and cancels the Credit Line the Credit Line
Obligations shall be immediately due and payable in full. If the Credit Line
Obligations are not paid in full, the Bank shall have the right, at its option,
to exercise any or all of its remedies described in Section 10 of this
Agreement.

 

3)         Terms of
Advances

 

a)          Advances made under this Agreement will be available
to the Borrower in the form, and pursuant to procedures, as are established
from time to time by the Bank in its sole and absolute discretion. The Borrower
and each Loan Party agree to promptly provide all documents, financial or other
information in connection with any Advance as the Bank may request. Advances
will be made by wire transfer of funds to an account as specified in writing by
the Borrower or by any other method agreed upon by the Bank and the Borrower. The Borrower
acknowledges and agrees that the Bank will not make any Advance to the Borrower
unless the collateral maintenance requirements that are established by the Bank
in its sole and absolute discretion have been satisfied.

 

b)         Each Advance made under a Premier Credit Line will be
a Variable Rate Advance unless otherwise designated as a Fixed Rate Advance in
an Advance Advice sent by the Bank to the Borrower. The Bank will not designate
any Advance as a Fixed Rate Advance unless it has been requested to do so by
the Borrower (acting directly or indirectly

 

3

 

 

	
   

  	
  UBS Bank
  USA

  
	
   

  	
  Variable
  Credit Line Account Number: (if
  applicable)

  
	
   

  	
  5V

  	
  54463

  	
  UJ

  
	
   

  	
  Fixed Credit
  Line Account Number: (if applicable)

  
	
   

  	
  5F

  	
   

  	
   

  
	
   

  	
  SS# / TIN

  	
   

  	
   

  
	
  Credit Line Agreement

  	
   

  	
  Internal Use Only

  

 

through
the Borrower’s UBS Financial Services Inc.  financial advisor or other agent designated by
the Borrower and acceptable to the Bank). Each Advance Advice will be
conclusive and binding upon the Borrower, absent manifest error, unless the
Borrower otherwise notifies the Bank in writing no later than the close of
business, New York time, on the third Business Day after the Advance Advice is
received by the Borrower.

 

c)              Each Advance made under a Prime Credit Line
will be a Variable Advance.

 

d)             Unless otherwise agreed by the Bank: (i) all
Fixed Rate Advances must be in an amount of at least $100,000; and (ii) all
Variable Rate Advances taken by wire transfer must be in an amount of at least $2,500.
If the Borrower is a natural person, the initial Variable Rate Advance under
the Credit Line must be in an amount equal to at least $25,001 (the “Initial
Advance Requirement”). If the initial Advance requested by the Borrower is made
in the form of a check drawn on the Credit Line that does not satisfy the
Initial Advance Requirement, then, in addition to and not in limitation of the
Bank’s rights, remedies, powers or privileges under this Agreement or
applicable law, the Bank may, in its sole and absolute discretion:

 

(i)                       pay the check drawn by the Borrower if, prior
to paying that check, the Bank makes another Advance to the Borrower, which
Advance shall be in an amount not less than $25,001; or

 

(ii)                    pay the check drawn by the Borrower; or

 

(iii)                 decline
to pay (bounce) the check.

 

If
the Bank elects option (ii), no interest shall accrue on the amount of the Advance
made by paying the check, and the amount of that Advance shall be due and
payable to the Bank immediately (with or without demand by the Bank).

 

4)        Interest

 

a)              Each Fixed Rate Advance will bear interest at
a fixed rate and for the Interest Period each as specified in the related
Advance Advice. The rate of interest payable on each Fixed Rate Advance will be
determined by adding a percentage rate to (i) LIBOR, if the Fixed Rate
Advance is for a period of one (1) year or less or (ii) the UBS Bank
USA Fixed Funding Rate, if the Fixed Rate Advance is for a period of greater
than one (1) year, as of the date that the fixed rate is determined.

 

b)             Each Variable Rate Advance under a Premier
Credit Line will bear interest at a variable rate equal to LIBOR, adjusted
daily, plus the percentage rate that (unless otherwise specified by the Bank in
writing) is shown on Schedule I below for the Approved Amount of the Credit
Line. For Premier Credit Lines, the rate of interest payable on Variable Rate
Advances is subject to change without notice in accordance with fluctuations in
LIBOR and in the Approved Amount.  On
each day that LIBOR changes or the Approved Amount crosses one of the
thresholds that is indicated on Schedule I (or that is otherwise specified by
the Bank in writing), the interest rate on all Variable Rate Advances will
change accordingly.

 

c)              Each Variable Rate Advance under a Prime
Credit Line will bear interest at a variable rate equal to the Prime Rate,
adjusted daily, plus the percentage rate that (unless otherwise specified by
the Bank in writing) is shown on the attached Schedule II and that corresponds
to the aggregate principal amount outstanding under the Prime Credit Line on
that day. For Prime Credit Lines, the rate of interest payable on Variable Rate
Advances is subject to change without notice in accordance with fluctuations in
the Prime Rate and in the aggregate amount outstanding under the Prime Credit
Line. On each date that the Prime Rate changes or the aggregate principal
amount outstanding under the Prime Credit Line crosses one of the thresholds
that is indicated on Schedule II (or that is otherwise specified by the Bank in
writing), the interest rate on all Variable Rate Advances will change
accordingly.

 

5)        Payments

 

a)              Each Fixed Rate Advance will be
due and payable in full ON DEMAND or, if not earlier demanded by the Bank, on
the last day of the applicable Interest Period. Any Fixed Rate Advance as to which the Bank
has not made a demand for payment and that is not paid in full or renewed,
which renewal is in the sole and absolute discretion of the Bank, (pursuant to
procedures as may be established by the Bank) as another Fixed Rate Advance on
or before the last day of its Interest Period, will be automatically renewed on
that date as a U.S. dollar denominated, Variable Rate Advance in an amount
(based, in the case of any conversion of a non-U.S. dollar denominated Fixed
Rate Advance, upon the applicable, spot currency exchange rate as of the
maturity date, as determined by the Bank) equal to the unpaid principal balance
of the Fixed Rate Advance plus any accrued but unpaid interest on the Fixed
Rate Advance, which Variable Rate Advance will then accrue additional interest
at a variable rate as provided in this Agreement.

 

b)             Each Variable Rate Advance will
be due and payable ON DEMAND.

 

	
  c)              The Borrower promises to pay the outstanding
  principal amount of each Advance, together with all accrued but unpaid
  interest on each Advance, any and all fees or other charges payable in
  connection with each Advance, on the date the principal amount becomes due
  (whether by reason of demand, the occurrence of a stated maturity date, by
  reason of acceleration or otherwise). The Borrower further promises to pay
  interest in respect of the unpaid principal balance of each Advance from the
  date the Advance is made until it is paid in full. All interest will be
  computed on the basis of the number of days elapsed and a 360-day year.
  Interest on each Advance will be payable in arrears as follows:

  
	
   

  	
   

  
	
   

  	
  (i)

  	
  for Fixed Rate Advances -
  on the last day of the Interest Period (or if the Interest Period is longer
  than three months, on the last day of each three month period following the
  date of the Advance) and on each date that all or any portion of the principal
  amount of the Fixed Rate Advance becomes due or is paid; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  for Variable Rate Advances
  - on the twenty-second day of each month other than December, and on the
  thirty-first day of December, and on each date that all or any portion of the
  principal amount of the Variable Rate Advance becomes due or is paid.

  

 

To
the extent permitted by law, and without limiting any of the Bank’s other
rights and remedies under the Agreement, interest charges on any Advance that
are not paid when due will be treated as principal and will accrue interest at
a variable rate from the date the payment of interest was due until it is
repaid in full.

 

d)             All payments of principal, interest or other
amounts payable under this Agreement will be made in immediately available
funds and in the same currency in which the Advance was made, which unless
otherwise agreed by the Bank, will be U.S. dollars. UBS Financial Services Inc.
or UBS International Inc., as applicable, may act as collecting and servicing
agent for the Bank for the Advances. All payments will be made by wire transfer
of funds to an account specified by the Bank or by another method agreed upon
by the Bank and the Borrower.  Upon
receipt of all payments, the Bank will credit the same to the Credit Line
Account. The Bank shall apply

 

4

 

 

	
   

  	
  UBS Bank
  USA

  
	
   

  	
  Variable
  Credit Line Account Number: (if
  applicable)

  
	
   

  	
  5V

  	
  54463

  	
  UJ

  
	
   

  	
  Fixed Credit
  Line Account Number: (if applicable)

  
	
   

  	
  5F

  	
   

  	
   

  
	
   

  	
  SS# / TIN

  	
   

  	
   

  
	
  Credit Line Agreement

  	
   

  	
  Internal Use Only

  

 

the
proceeds of any payments in the following order; first to any Breakage Costs,
Breakage Fee, other fees, costs of collection and expenses, second to the
outstanding principal amount of the related Advance and third to accrued interest.

 

e)              All payments must be made to the Bank free and
clear of any and all present and future taxes (including withholding taxes),
levies, imposts, duties, deductions, fees, liabilities and similar charges
other than those imposed on the overall net income of the Bank. If so requested
by the Bank, the Borrower will deliver to the Bank the original or a certified
copy of each receipt evidencing payment of any taxes or, if no taxes are
payable in respect of any payment under this Agreement, a certificate from each
appropriate taxing authority, or an opinion of counsel in form and substance
and from counsel acceptable to the Bank in its sole and absolute discretion, in
either case stating that the payment is exempt from or not subject to taxes. If
any taxes or other charges are required to be withheld or deducted from any
amount payable by the Borrower under this Agreement, the amount payable will be
increased to the amount which, after deduction from the increased amount of all
taxes and other charges required to be withheld or deducted from the amount
payable, will yield to the Bank the amount stated to be payable under this
Agreement. If any of the taxes or charges are paid by the Bank, the Borrower
will reimburse the Bank on demand for the payments, together with all interest
and penalties that may be imposed by any governmental agency. None of the Bank,
UBS Financial Services Inc., UBS-I or their respective employees has provided
or will provide legal advice to the Borrower or any Loan Party regarding compliance
with (or the implications of the Credit Line and the related guaranties and
pledges under) the laws (including tax laws) of the jurisdiction of the
Borrower or any Loan Party or any other jurisdiction.  The Borrower and each Loan Party are and shall
be solely responsible for, and the Bank shall have no responsibility for, the
compliance by the Loan Parties with any and all reporting and other
requirements arising under any applicable laws.

 

f)                In no event will the total interest and fees,
if any, charged under this Agreement exceed the maximum interest rate or total
fees permitted by law. In the event any excess interest or fees are
collected, the same will be refunded or credited to the Borrower. If the amount
of interest payable by the Borrower for any period is reduced pursuant to this Section 5(f),
the amount of interest payable for each succeeding period will be increased to
the maximum rate permitted by law until the amount of the reduction has been
received by the Bank.

 

6)        Prepayments; Breakage Charges

 

a)              The Borrower may repay any Variable Rate
Advance at any time, in whole or in part, without penalty.

 

b)             The Borrower may repay any Fixed Rate Advance,
in whole or in part. The Borrower agrees to reimburse the Bank, immediately
upon demand, for any loss or cost (“Breakage Costs”) that the Bank notifies the
Borrower has been incurred by the Bank as a result of (i) any payment of
the principal of a Fixed Rate Advance before the expiration of the Interest
Period for the Fixed Rate Advance (whether voluntarily, as a result of
acceleration, demand or otherwise), or (ii) the Customer’s failure to take
any Fixed Rate Advance on the date agreed upon, including any loss or cost
(including loss of profit or margin) connected with the Bank’s re-employment of
the amount so prepaid or of those funds acquired by the Bank to fund the
Advance not taken on the agreed upon date.

 

Breakage
Costs will be calculated by determining the differential between the stated
rate of interest (as determined in accordance with Section 4(a) of
the Agreement) for the Fixed Rate Advance and prevailing LIBOR and multiplying
the differential by the sum of the outstanding principal amount of the Fixed
Rate Advance (or the principal amount of Fixed Rate Advance not taken by the
Borrower) multiplied by the actual number of days remaining in the Interest
Period for the Fixed Rate Advance (based upon a 360-day year). The Borrower
also agrees to promptly pay to the Bank an administrative fee (“Breakage Fee”)
in connection with any permitted or required prepayment. The Breakage Fee will
be calculated by multiplying the outstanding principal amount of the Fixed Rate
Advance (or the principal amount of Fixed Rate Advance not taken by the
Borrower) by two basis points (0.02%) (with a minimum Breakage Fee of $100.00).
Any written notice from the Bank as to the amount of the loss or cost will be
conclusive absent manifest error.

 

7)        Joint Credit Line Account
Agreement; Suspension and Cancellation

 

a)              If more than one Person is signing this
Agreement as the “Borrower”, each party (a “Joint Borrower”) will be jointly
and severally liable for the Credit Line Obligations, regardless of any change
in business relations, divorce, legal separation, or other legal proceedings or
in any agreement that may affect liabilities between the parties. Except as
provided below for the reinstatement of a suspended or cancelled Credit Line,
and unless otherwise agreed by the Bank in writing, the Bank may rely on, and
each Joint Borrower will be responsible for, requests for Advances, directions,
instructions and other information provided to the Bank by any Joint Borrower.

 

b)             Any Joint Borrower may request the Bank to
suspend or cancel the Credit Line by sending the Bank a written notice of the
request addressed to the Bank at the address shown on the Borrower’s periodic
Credit Line Account statements. Any notice will become effective three Business
Days after the date that the Bank receives it, and each Joint Borrower will
continue to be responsible for paying: (i) the Credit Line Obligations as
of the effective date of the notice, and (ii) all Advances that any Joint
Borrower has requested but that have not yet become part of the Credit Line
Obligations as of the effective date of the notice. No notice will
release or in any other way affect the Bank’s interest in the Collateral.  All subsequent requests to reinstate credit
privileges must be signed by all Joint Borrowers comprising the Borrower,
including the Joint Borrower requesting the suspension of credit privileges.
Any reinstatement will be granted or denied in the sole and absolute discretion
of the Bank.

 

c)              All Credit Line Obligations will become
immediately due and payable in full as of the effective date of any suspension
or cancellation of the Credit Line. The borrower will be responsible for the
payment of all charges incurred on the Advances after the effective date.  The Bank will not release any Loan Party from
any of the obligations under this Agreement or any related agreement until the
Credit Line Obligations have been paid in full and this Agreement has been
terminated.

 

8)        Collateral; Grant of Security
Interest; Set-off

 

a)         To
secure payment or performance of the Credit Line Obligations, the Borrower
assigns, transfers and pledges to the Bank, and grants to the Bank a first
priority lien and security interest in the following assets and rights of the
Borrower, wherever located and whether owned now or acquired or arising in the
future; (i) each Collateral Account; (ii) any and all money, credit balances,
certificated and uncertificated securities, security entitlements, commodity
contracts, certificates of deposit, instruments, documents, partnership
interests, general intangibles, financial assets and other investment property
now or in the future credited to or carried, held or maintained in any
Collateral Account; (iii) any and all over-the- counter options, futures,
foreign exchange, swap or similar contracts between the Borrower and either UBS
Financial Services Inc. or any of its affiliates; (iv) any and all accounts of
the Borrower at the Bank or any of its affiliates; (v) any and all supporting
obligations and other

 

5

 

 

	
   

  	
  UBS Bank
  USA

  
	
   

  	
  Variable
  Credit Line Account Number: (if
  applicable)

  
	
   

  	
  5V

  	
  54463

  	
  UJ

  
	
   

  	
  Fixed Credit
  Line Account Number: (if applicable)

  
	
   

  	
  5F

  	
   

  	
   

  
	
   

  	
  SS# / TIN

  	
   

  	
   

  
	
  Credit Line Agreement

  	
   

  	
  Internal Use Only

  

 

rights
ancillary or attributable to, or arising in any way in connection with, any of
the foregoing; and (vi) any and all interest, dividends, distributions and
other proceeds of any of the foregoing, including proceeds of proceeds
(collectively, the “Collateral”).

 

b)             The Borrower and if applicable, any Pledgor on
the Collateral Account, will take all actions reasonably requested by the Bank
to evidence, maintain and perfect the Bank’s first priority security interest
in, and to enable the Bank to obtain control over, the Collateral and any
additional collateral pledged by the Pledgors, including but not limited to
making, executing, recording and delivering to the Bank (and authorizes the
Bank to file, without the signature of the Borrower and any Pledgor where
permitted by applicable law) financing statements and amendments thereto,
control agreements, notices, assignments, listings, powers, consents and other
documents regarding the Collateral and the Bank’s security interest in the
Collateral in such jurisdiction and in a form as the Bank reasonably may
require. Each Loan Party irrevocably authorizes and appoints each of the Bank
and UBS Financial Services Inc., as collateral agent, to act as their agent and
attorney-in-fact to file any documents or to execute any documents in their
name, with or without designation of authority. Each Loan Party acknowledges
that it will be obligated in respect of the documentation as if it had executed
the documentation itself.

 

c)              The Borrower (and, if applicable, any other
Pledgor on the Collateral Account) agrees to maintain in a Collateral Account,
at all times, Collateral having an aggregate lending value as specified by the
Bank from time to time.

 

d)             The Bank’s sole duty for the custody, safe
keeping and physical preservation of any Collateral in its possession will be
to deal with the Collateral in the same manner as the Bank deals with similar
property for its own account. The Borrower (and, if applicable, any other
Pledgor on the Collateral Account) agrees that the Bank will have no
responsibility to act on any notice of corporate actions or events provided to
holders of securities or other investment property included in the Collateral.
The Borrower (and, if applicable, any other Pledgor on the Collateral Account)
agrees to (i) notify the Bank promptly upon receipt of any communication
to holders of the investment property disclosing or proposing any stock split,
stock dividend, extraordinary cash dividend, spin-off or other corporate action
or event as a result of which the Borrower or Pledgor would receive securities,
cash (other than ordinary cash dividends) or other assets in respect of the investment
property, and (ii) immediately upon receipt by the Borrower or Pledgor of
any of these assets, cause them to be credited to a Collateral Account or
deliver them to or as directed by the Bank as additional Collateral.

 

e)              The Borrower (and, if applicable, any other
Pledgor on the Collateral Account) agrees that all principal, interest,
dividends, distributions, premiums or other income and other payments received
by the Bank or credited to the Collateral Account in respect of any Collateral
may be held by the Bank as additional Collateral or applied by the Bank to the
Credit Line Obligations. The Bank may create a security interest in any of the
Collateral and may, at any time and at its option, transfer any securities or
other investment property constituting Collateral to a securities
account maintained in its name or cause any Collateral Account to be
redesignated or renamed in the name of the Bank.

 

f)                The Borrower (and, if applicable, any other
Pledgor on the Collateral Account) agrees that if a Collateral Account has
margin features, the margin features will be removed by UBS Financial Services
Inc. or UBS International Inc., as applicable, so long as there is no
outstanding margin debit in the Collateral Account.

 

g)             If the Collateral Account permits cash
withdrawals in the form of check writing, access card charges, bill payment
and/ or electronic funds transfer services (for example, Resource Management
Account®, Business Services Account BSA®, certain Basic Investment Accounts and
certain accounts enrolled in UBS Financial Services Inc. Investment Consulting
Services programs), the Borrower (and, if applicable, any other Pledgor on the
Collateral Account) agrees that the “Withdrawal Limit” for the Collateral
Account, as described in the documentation governing the account will be
reduced on an ongoing basis so that the aggregate lending value of the
Collateral remaining in the Collateral Account following the withdrawal may not
be less than the amount required pursuant to Section 8(c).

 

h)             In addition to the Bank’s security interest,
the Borrower (and, if applicable, any other Pledgor on the Collateral Account)
agrees that the Bank will at all times have a right to set off any or all of
the Credit Line Obligations at or after the time at which they become due,
whether upon demand, at a stated maturity date, by acceleration or otherwise,
against all securities, cash, deposits or other property in the possession of
or at any time in any account maintained with the Bank or any of its affiliates
by or for the benefit of the Borrower, whether carried individually or jointly
with others. This right is in addition to, and not in limitation of, any right
the Bank may have at law or otherwise.

 

i)                 The Bank reserves the right to disapprove any
Collateral and to require the Borrower at any time to deposit into the Borrower’s
Collateral Account additional Collateral in the amount as the Bank requests or
to substitute new or additional Collateral for any Collateral that has
previously been deposited in the Collateral Account.

 

9)        Control

 

	
  For the purpose of giving
  the Bank control over each Collateral Account and in order to perfect the
  Bank’s security interests in the Collateral, the Borrower and each Pledgor on
  the applicable Collateral Account consents to compliance by UBS Financial
  Services Inc., UBS-I or any other securities intermediary (in any case, the
  “Securities Intermediary”) maintaining a Collateral Account with entitlement
  orders and instructions from the Bank (or from any assignee or successor of the
  Bank) regarding the Collateral Account and any financial assets or other
  property held therein without the further consent of the Borrower or any
  other Pledgor on the applicable Collateral Account. Without limiting the
  foregoing, the Borrower and each Pledgor on the Collateral Account
  acknowledges, consents and agrees that, pursuant to a control agreement
  entered into between the Bank and the Securities Intermediary:

  
	
   

  	
   

  
	
  a)

  	
  The Securities Intermediary
  will comply with entitlement orders originated by the Bank regarding any
  Collateral Account without further consent from the Borrower or any Pledgor.
  The Securities Intermediary will treat all assets credited to a Collateral
  Account, including money and credit balances, as financial assets for
  purposes of Article 8 of the Uniform Commercial Code.

  
	
   

  	
   

  
	
  b)

  	
  In order to
  enable the Borrower and any Pledgor on the applicable Collateral Account to
  trade financial assets that are from time to time credited to a Collateral
  Account, the Securities Intermediary may comply with entitlement orders
  originated by the Borrower or any Pledgor on the applicable Collateral
  Account (or if so agreed by the Bank, by an investment adviser designated by
  the Borrower or any Pledgor on the applicable Collateral Account and
  acceptable to the Bank and the Securities Intermediary) regarding the
  Collateral Account, but only until the time that the Bank notifies the
  Securities Intermediary, that the Bank is asserting exclusive control over
  the Collateral Account. After the Securities Intermediary has received a
  notice of exclusive control and has had a reasonable opportunity to comply,
  it will no longer comply with entitlement orders originated by the Borrower
  or any Pledgor (or by any investment adviser designated by the Borrower or
  any Pledgor)

  

 

6

 

 

	
   

  	
  UBS Bank
  USA

  
	
   

  	
  Variable
  Credit Line Account Number: (if
  applicable)

  
	
   

  	
  5V

  	
  54463

  	
  UJ

  
	
   

  	
  Fixed Credit
  Line Account Number: (if applicable)

  
	
   

  	
  5F

  	
   

  	
   

  
	
   

  	
    SS# /
  TIN

  	
   

  	
   

  
	
  Credit Line Agreement

  	
   

  	
  Internal Use Only

  

 

concerning
the Collateral Account. Notwithstanding the foregoing, however, and
irrespective of whether it has received any notice of exclusive control, the
Securities Intermediary will not comply with any entitlement order originated
by the Borrower or any Pledgor (or by any investment adviser designated by the
Borrower or any Pledgor) to withdraw any financial assets from a Collateral
Account or to pay any money, free credit balance or other amount owing on a
Collateral Account (other than cash withdrawals and payments not exceeding the “Withdrawal
Limit” as contemplated in Section 8 (g)) without the prior consent of the
Bank.

 

	
  10)

  	
  Remedies

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  a)

  	
  If any of the following
  events (each, an “Event”) occurs:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  the Borrower fails to pay
  any amount due under this Agreement;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  the Borrower and/or any
  other relevant Loan Party fails to maintain sufficient Collateral in a
  Collateral Account as required by the Bank or any Guarantor fails to maintain
  collateral as required by the Bank under its Guaranty Agreement;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)

  	
  the Borrower or any other
  Loan Party breaches or fails to perform any other covenant, agreement, term
  or condition that is applicable to it under this Agreement or any related
  agreement, or any representation or other statement of the Borrower (or any
  Loan Party) in this Agreement or in any related agreement is incorrect in any
  material respect when made or deemed made;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iv)

  	
  the Borrower or any other
  Loan Party dies or is declared (by appropriate authority) incompetent or of
  unsound mind or is indicted or convicted of any crime or, if not an
  individual, ceases to exist;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (v)

  	
  any voluntary or
  involuntary proceeding for bankruptcy, reorganization, dissolution or
  liquidation or similar action is commenced by or against the Borrower or any
  other Loan Party, or a trustee in bankruptcy, receiver, conservator or
  rehabilitator is appointed, or an assignment for the benefit of creditors is
  made, with respect to the Borrower or any other Loan Party or its property;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (vi)

  	
  the Borrower or any Loan
  Party is insolvent, unable to pay its debts as they fall due, stops, suspends
  or threatens to stop or suspend payment of all or a material part of its
  debts, begins negotiations or takes any proceeding or other step with a view
  to readjustment, rescheduling or deferral of all or any part of its
  indebtedness, which it would or might otherwise be unable to pay when due, or
  proposes or makes a general assignment or an arrangement or composition with
  or for the benefit of its creditors;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (vii)

  	
  a Collateral Account (or any
  account in which collateral provided by a Loan Party is maintained) or any
  portion thereof is terminated, attached or subjected to a levy;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (viii)

  	
  the Borrower or any Loan
  Party fails to provide promptly all financial and other information as the Bank
  may request from time to time;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ix)

  	
  any indebtedness of the
  Borrower or any other Loan Party in respect of borrowed money (including
  indebtedness guarantied by the Borrower or any other Loan Party) or in
  respect of any swap, forward, cap, floor, collar, option or other derivative
  transaction, repurchase or similar transaction or any combination of these
  transactions is not paid when due, or any event or condition causes the
  indebtedness to become, or permits the holder to declare the indebtedness to be, due and payable prior to its stated
  maturity;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (x)

  	
  final judgment for the
  payment of money is rendered against Borrower (or any Loan Party) and, within
  thirty days from the entry of judgment, has not been discharged or stayed
  pending appeal or has not been discharged within thirty days from the entry
  of a final order of affirmance on appeal;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (xi)

  	
  any legal proceeding is
  instituted or any other event occurs or condition exists that in the Bank’s
  judgment calls into question (A) the validity or binding effect of this
  Agreement or any related agreement or any of the Borrower’s (or any other
  Loan Party’s) obligations under this Agreement or under any related agreement
  or (B) the ability of the Borrower (or any Loan Party) to perform its obligations
  under this Agreement, or under any related agreement; or

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (xii)

  	
  the Bank otherwise deems
  itself or its security interest in the Collateral insecure or the Bank
  believes in good faith that the prospect of payment or other performance by any
  Loan Party is impaired.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  then, the Credit Line
  Obligations will become immediately due and payable (without demand) and the
  Bank may, in its sole and absolute discretion, liquidate, withdraw or sell
  all or any part of the Collateral and apply the same, as well as the proceeds
  of any liquidation or sale, to any amounts owed to the Bank, including any
  applicable Breakage Costs and Breakage Fee. The Bank will not be liable to
  any Loan Party in any way for any adverse consequences (for tax effect or otherwise)
  resulting from the liquidation of appreciated Collateral.  Without limiting the generality of the
  foregoing, the sale may be made in the Bank’s sole and absolute discretion by
  public sale on any exchange or market where business is then usually transacted
  or by private sale, and the Bank may be the purchaser at any public or
  private sale. Any Collateral that may decline speedily in value or that
  customarily is sold on a recognized exchange or market may be sold without
  providing any Loan Party with prior notice of the sale. Each Loan Party
  agrees that, for all other Collateral, two calendar days notice to the Loan
  Party, sent to its last address shown in the Bank’s account records, will be
  deemed reasonable notice of the time and place of any public sale or time
  after which any private sale or other disposition of the Collateral may
  occur. Any amounts due and not paid on any Advance following an Event will
  bear interest from the day following the Event until fully paid at a rate per
  annum equal to the interest rate applicable to the Advance immediately prior
  to the Event plus 2.00%. In addition to the Bank’s rights under this
  Agreement, the Bank will have the right to exercise any one or more of the
  rights and remedies of a secured creditor under the Utah Uniform Commercial
  Code, as then in effect, or under any other applicable law.

  
	
   

  	
   

  	
   

  
	
   

  	
  b)

  	
  Nothing contained in this Section 10 will limit the right of the Bank to demand full or partial payment of
  the Credit Line Obligations, in its sole and absolute discretion and without
  cause, at any time, whether or not an Event has occurred and is continuing.

  
	
   

  	
   

  	
   

  
	
   

  	
  c)

  	
  All rights and remedies of
  the Bank under this Agreement are cumulative and are in addition to all other
  rights and remedies that the Bank may have at law or equity or under any
  other contract or other writing for the enforcement of the security interest
  herein or the collection of any amount due under this Agreement.

  
	
   

  	
   

  	
   

  
	
   

  	
  d)

  	
  Any non-exercise of rights,
  remedies and powers by the Bank under this Agreement and the other documents
  delivered in connection with this Agreement shall not be construed as a
  waiver of any rights, remedies and powers. The Bank fully reserves its rights
  to invoke

  

 

7

 

 

	
   

  	
  UBS Bank
  USA

  
	
   

  	
  Variable
  Credit Line Account Number: (if
  applicable)

  
	
   

  	
  5V

  	
  54463

  	
  UJ

  
	
   

  	
  Fixed Credit
  Line Account Number: (if applicable)

  
	
   

  	
  5F

  	
   

  	
   

  
	
   

  	
    SS# / TIN

  	
   

  	
   

  
	
  Credit Line Agreement

  	
   

  	
  Internal Use Only

  

 

	
   

  	
   

  	
  any of its rights, remedies
  and powers at any time it may deem appropriate.

  
	
   

  	
   

  	
   

  
	
  11)

  	
  Representations,
  Warranties and Covenants by the Loan Parties

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Each Borrower and each
  other Loan Party (if applicable) makes the following representations,
  warranties and covenants (and each Borrower will be deemed to have repeated
  each representation and warranty each time a Borrower requests an Advance) to
  the Bank:

  
	
   

  	
   

  	
   

  
	
   

  	
  a)

  	
  Except for the Bank’s
  rights under this Agreement and the rights of the Securities Intermediary
  under any account agreement, the Borrower and each relevant Pledgor owns the
  Collateral, free of any interest,
  lien or security interest in favor of any third party and free of any
  impediment to transfer;

  
	
   

  	
   

  	
   

  
	
   

  	
  b)

  	
  Each
  Loan Party: (i) if a natural Person, is of the age of majority;
  (ii) is authorized to execute and deliver this Agreement and to perform its obligations under this Agreement and any related agreement;
  (iii) is not an employee benefit plan, as that term is defined by the
  Employee Retirement Income Security Act of 1974, or an Individual Retirement
  Credit Line Account (and none of the Collateral is an asset of a plan or
  account); and (iv) unless the Loan Party advises the Bank to the
  contrary, in writing, and provides the Bank with a letter of approval, where
  required, from its employer, is not an employee or member of any exchange or
  of any corporation or firm engaged in the business of dealing, either as a
  broker or as principal, in securities, bills of exchange, acceptances or
  other forms of commercial paper;

  
	
   

  	
   

  	
   

  
	
   

  	
  c)

  	
  Neither
  the Borrower nor any Pledgor on the Collateral Account has pledged or will
  pledge the Collateral or grant a security interest in the Collateral to any
  party other than the Bank or the Securities Intermediary, or has permitted or will permit the Collateral to become subject to any
  liens or encumbrances (other than those of the Bank and the Securities
  Intermediary), during the term of this Agreement;

  
	
   

  	
   

  	
   

  
	
   

  	
  d)

  	
  No
  Loan Party is in default under any material contract, judgment, decree or
  order to which it is a party or by which it or its properties may be bound;

  
	
   

  	
   

  	
   

  
	
   

  	
  e)

  	
  Each
  Loan Party has duly filed all tax and information returns required to be
  filed and has paid al! taxes, fees, assessments and other governmental
  charges or levies that have become due and payable, except to the extent such
  taxes or other charges are being contested in good faith and are adequately
  reserved against in accordance with GAAP.

  
	
   

  	
   

  	
   

  
	
   

  	
  f)

  	
  The
  Borrower and each relevant Pledgor (i) is and at all times will continue
  to be the legal and beneficial owner of all assets held in or credited to any
  Collateral Account or otherwise included in the Collateral, and
  (ii) does not hold any assets held in or credited to any Collateral Account or otherwise included in the
  Collateral in trust or subject to any contractual or other restrictions on
  use that would prevent the use of such assets to (a) repay the Bank or
  (b) be pledged as Collateral in favor of the Bank.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The
  provisions of this Section 11 will survive the termination of this
  Agreement or any related agreement and the repayment of the Credit Line
  Obligations.

  
	
   

  	
   

  	
   

  
	
  12)

  	
  Indemnification;
  Limitation on Liability of the Bank and the Securities Intermediary

  
	
   

  	
   

  
	
   

  	
  Borrower agrees to
  indemnify and hold harmless the Bank and the Securities Intermediary, their
  affiliates and their respective directors, officers, agents and employees
  against any and all claims, causes of action, liabilities, lawsuits, demands
  and damages, for example, any and all court costs and reasonable attorneys
  fees, in any way relating to or arising out of or in connection with this
  Agreement, except to the extent caused by the Bank’s or Securities
  Intermediary’s breach of its obligations under this Agreement. Neither the
  Bank nor the Securities Intermediary will be liable to any party for any
  consequential damages arising out of any act or omission by either of them
  with respect to this Agreement or any Advance or Collateral Account. The
  provisions of this Section 12 will survive the termination of this
  Agreement or any related agreement and the repayment of the Credit Line
  Obligations.

  
	
   

  	
   

  
	
  13)

  	
  Acceptance of Application
  and Agreement; Applicable Law

  
	
   

  	
   

  
	
   

  	
  THIS APPLICATION AND
  AGREEMENT WILL BE RECEIVED AND ACCEPTED BY BANK IN THE STATE OF UTAH, OR IF
  THIS APPLICATION AND AGREEMENT IS DELIVERED TO BANK’S AGENT, UBS FINANCIAL
  SERVICES INC., IT WILL BE RECEIVED AND ACCEPTED WHEN RECEIVED BY UBS
  FINANCIAL SERVICES INC.’S UNDERWRITING DEPARTMENT. DELIVERY OF THE
  APPLICATION AND AGREEMENT TO THE BORROWER’S FINANCIAL ADVISOR AT UBS
  FINANCIAL SERVICES INC. WILL NOT BE CONSIDERED RECEIPT OR ACCEPTANCE BY BANK.
  ALL DECISIONS MADE BY BANK REGARDING THE CREDIT LINE WILL BE MADE IN UTAH.

  
	
   

  	
   

  
	
   

  	
  THIS AGREEMENT WILL BE
  GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF UTAH
  APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY IN THE STATE OF
  UTAH AND, IN CONNECTION WITH THE CHOICE OF LAW GOVERNING INTEREST, THE
  FEDERAL LAWS OF THE UNITED STATES, EXCEPT THAT WITH RESPECT TO THE COLLATERAL
  ACCOUNT AND THE BANK’S SECURITY INTEREST THEREIN, THIS AGREEMENT SHALL BE
  GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
  YORK, INCLUDING, WITHOUT LIMITATION, THE NEW YORK UNIFORM COMMERCIAL
  CODE, AND FOR PURPOSES OF THIS AGREEMENT, THE COLLATERAL ACCOUNT AND THE
  BANK’S SECURITY INTEREST THEREIN, THE JURISDICTION OF UBS FINANCIAL SERVICES
  INC. AND UBS-I SHALL BE DEEMED TO BE THE STATE OF NEW YORK.

  
	
   

  	
   

  
	
  14)

  	
  Assignment

  
	
   

  	
   

  
	
   

  	
  This Agreement may not be
  assigned by the Borrower without the prior written consent of the Bank. This
  Agreement will be binding upon and inure to the benefit of the heirs,
  successors and permitted assigns of the Borrower. The Bank may assign this
  Agreement, and this Agreement will inure to the benefit of the Bank’s
  successors and assigns.

  
	
   

  	
   

  
	
  15)

  	
  Amendment

  
	
   

  	
   

  
	
   

  	
  This Agreement may be
  amended only by the Bank, including, but not limited to, (i) the addition or
  deletion of any provision of this Agreement and (ii) the amendment of the (x) “Spread
  Over LIBOR/UBS Bank USA Fixed Funding Rate” in Schedule I or (y) “Spread
  Over Prime” in Schedule II to this Agreement, at any time by sending written
  notice, signed by an authorized officer of the Bank, of an amendment to the
  Borrower. The amendment shall be effective as of the date established by the
  Bank. This Agreement may not be amended orally. The Borrower or the Bank may
  waive compliance with any provision of this Agreement, but any waiver must be
  in writing and will not be deemed to be a waiver of any other provision of
  this Agreement. The provisions of this Agreement constitute the entire
  agreement between the Bank and the Borrower with respect to the subject
  matter hereof and supersede all prior or contemporaneous agreements,
  proposals, understandings and representations, written or oral, between the
  parties with respect to the subject matter hereof.

  
	
   

  	
   

  
	
  16)

  	
  Severability

  
	
   

  	
   

  
	
   

  	
  If any provision of this
  Agreement is held to be invalid, illegal, void or unenforceable, by reason of
  any law, rule, administrative order or judicial

  

 

8

 

 

	
   

  	
  UBS Bank
  USA

  
	
   

  	
  Variable
  Credit Line Account Number: (if
  applicable)

  
	
   

  	
  5V

  	
  54463

  	
  UJ

  
	
   

  	
  Fixed Credit
  Line Account Number: (if applicable)

  
	
   

  	
  5F

  	
   

  	
   

  
	
   

  	
  SS# / TIN

  	
   

  	
   

  
	
  Credit Line Agreement

  	
   

  	
  Internal Use Only

  

 

	
   

  	
  or arbitral decision, the
  determination will not affect the validity of the remaining provisions of
  this Agreement.

  
	
   

  	
   

  
	
  17)

  	
  Choice of Forum; Waiver
  of Jury Trial

  
	
   

  	
   

  
	
   

  	
  a)

  	
  ANY SUIT, ACTION OR
  PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS
  CONTEMPLATED BY THIS AGREEMENT OR ANY JUDGMENT ENTERED BY ANY COURT REGARDING
  THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT WILL BE
  BROUGHT AND MAINTAINED EXCLUSIVELY IN THE THIRD JUDICIAL DISTRICT COURT FOR
  THE STATE OF UTAH OR IN THE UNITED STATES DISTRICT COURT FOR THE STATE OF UTAH.
  EACH OF THE LOAN PARTIES IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE
  COURTS OF THE THIRD JUDICIAL DISTRICT COURT FOR THE STATE OF UTAH AND OF THE
  UNITED STATES DISTRICT COURT FOR THE STATE OF UTAH FOR THE PURPOSE OF ANY
  SUCH ACTION OR PROCEEDING AS SET FORTH ABOVE AND IRREVOCABLY AGREES TO BE
  BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH ACTION OR
  PROCEEDING. EACH OF THE LOAN PARTIES IRREVOCABLY WAIVES, TO THE FULLEST
  EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE NOW OR IN THE
  FUTURE TO THE LAYING OF VENUE OF ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY
  SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH ACTION OR PROCEEDING
  HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

  
	
   

  	
   

  	
   

  
	
   

  	
  b)

  	
  EACH OF THE LOAN PARTIES
  (FOR ITSELF, ANYONE CLAIMING THROUGH IT OR IN ITS NAME, AND ON BEHALF OF ITS
  EQUITY HOLDERS) IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY
  JURY REGARDING ANY CLAIM BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY
  OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

  
	
   

  	
   

  	
   

  
	
   

  	
  c)

  	
  Any arbitration
  proceeding between the Borrower (or any other Loan Party) and the Securities
  Intermediary, regardless of whether or not based on circumstances related to
  any court proceedings between the Bank and  the Borrower (or the other Loan
  Party), will not provide a basis for any stay of the court proceedings.

  
	
   

  	
   

  	
   

  
	
   

  	
  d)

  	
  Nothing in this Section 17
  will be deemed to alter any agreement to arbitrate any controversies which
  may arise between the Borrower (or any other Loan Party) and UBS Financial
  Services Inc. or its predecessors, and any claims between the Borrower or the
  Loan Party, as applicable, and UBS Financial Services Inc. or its employees
  (whether or not they have acted as agents of the Bank) will be arbitrated as
  provided in any agreement between the Borrower or the Loan Party, as
  applicable, and UBS Financial Services Inc.

  
	
   

  	
   

  	
   

  
	
  18)

  	
  State Specific Provisions
  and Disclosures

  
	
   

  	
   

  	
   

  
	
   

  	
  a)

  	
  For residents of Ohio:

  
	
   

  	
   

  	
  The Ohio laws against
  discrimination require that all creditors make credit equally available to
  all creditworthy customers, and that credit reporting agencies maintain
  separate credit histories on each individual upon request. The Ohio civil
  rights commission administers compliance with this law.

  
	
   

  	
   

  	
   

  
	
   

  	
  b)

  	
  For residents of Oregon:

  
	
   

  	
   

  	
  NOTICE TO BORROWER: DO
  NOT SIGN THIS AGREEMENT BEFORE YOU READ IT. THIS AGREEMENT PROVIDES FOR THE
  PAYMENT OF A PENALTY IF YOU WISH TO REPAY A FIXED RATE ADVANCE PRIOR TO THE
  DATE PROVIDED FOR REPAYMENT IN THE AGREEMENT.

  
	
   

  	
   

  	
   

  
	
   

  	
  c)

  	
  For residents of Vermont:

  
	
   

  	
   

  	
  NOTICE TO BORROWER: THE
  ADVANCES MADE UNDER THIS AGREEMENT ARE DEMAND LOANS AND SO MAY BE
  COLLECTED BY THE LENDER AT ANY TIME. A NEW LOAN MUTUALLY AGREED UPON AND
  SUBSEQUENTLY ISSUED MAY CARRY A HIGHER OR LOWER RATE OF INTEREST.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE TO JOINT BORROWER:
  YOUR SIGNATURE ON THE AGREEMENT MEANS THAT YOU ARE EQUALLY LIABLE FOR
  REPAYMENT OF THIS LOAN. IF THE BORROWER DOES NOT PAY, THE LENDER HAS A LEGAL
  RIGHT TO COLLECT FROM YOU.

  
	
   

  	
   

  	
   

  
	
   

  	
  d)

  	
  For residents of
  California:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (i)

  	
  Any person, whether married,
  unmarried, or separated, may apply for separate credit.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)

  	
  As required by law, you
  are notified that a negative credit report reflecting on your credit record
  may be submitted to a credit reporting agency if you fail to fulfill the
  terms of your credit obligations.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iii)

  	
  The Borrower will notify
  the Bank, within a reasonable time, of any change in the Borrower’s name,
  address, or employment.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (iv)

  	
  The Borrower will not
  attempt to obtain any Advance if the Borrower knows that the Borrower’s
  credit privileges under the Credit Line have been terminated or suspended.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (v)

  	
  The Borrower will notify
  the Bank by telephone, telegraph, letter, or any other reasonable means that
  an unauthorized use of the Credit Line has occurred or may occur as the
  result of the loss or theft of a credit card or other instrument identifying
  the Credit Line, within a reasonable time after the Borrower’s discovery of
  the loss or theft, and will reasonably assist the Bank in determining the
  facts and circumstances relating to any unauthorized use of the Credit Line.

  
	
   

  	
   

  	
   

  	
   

  
	
  19)

  	
  Account Agreement

  
	
   

  	
   

  
	
   

  	
  Each Loan Party
  acknowledges and agrees that this Agreement supplements their account
  agreement(s) with the Securities Intermediary relating to the Collateral
  Account and, if applicable, any related account management agreement(s) between
  the Loan Party and the Securities Intermediary. In the event of a conflict
  between the terms of this Agreement and any other agreement between the Loan
  Party and the Securities Intermediary, the terms of this Agreement will
  prevail.

  
	
   

  	
   

  
	
  20)

  	
  Notices

  
	
   

  	
   

  
	
   

  	
  Unless otherwise required
  by law, all notices to a Loan Party may be oral or in writing, in the Bank’s
  discretion, and if in writing, delivered or mailed by the United States mail,
  or by overnight carrier or by telecopy to the address of the Loan Party shown
  on the records of the Bank. Each Loan Party agrees to send notices to the
  Bank, in writing, at such address as provided by the Bank from time to time.

  

 

9

 

	
  Credit Line Account:

  	
  5V54463

  
	
   

  	
   

  
	
  Collateral Account:

  	
  UJ53976

  

 

ADDENDUM TO CREDIT LINE ACCOUNT APPLICATION AND AGREEMENT

 

This
Addendum (this “Addendum”) is attached to, incorporated by reference into and
is fully a part of the Credit Line Account Application and Agreement between
UBS Bank USA (the “Bank”) and the borrower named in the signature area below
(the “Borrower”), dated as of the date hereof (as amended or otherwise modified
from time to time, the “Agreement”). This Addendum and the Agreement shall not
become effective and binding upon the Bank until this Addendum has been
executed by the Borrower and accepted by the Bank at its home office. Any
conflict between the terms of the Agreement and this Addendum shall be resolved
in accordance with the terms of this Addendum. Defined terms used herein to
have the respective meanings set forth in the Agreement unless otherwise
defined in this Addendum.

 

A.            The Bank and the Borrower
acknowledge and agree that:

 

1.   The Agreement is amended by adding the following
as Section 3 e):

 

“The Borrower acknowledges
that the Bank will not make an Advance against the Collateral in amounts equal
to the fair market or par value of the Collateral unless the Borrower arranges
for another person or entity to provide additional collateral or assurances on
terms and conditions satisfactory to the Bank. In requesting an Approved Amount
equal to the par value of the Collateral, the Borrower has arranged for UBS
Financial Services Inc. to provide, directly or through a third party, the
pledge of additional collateral and/or assurances to the Bank so that the Bank
will consider making Advances from time to time in accordance with the terms of
this Agreement and in amounts equal to, in the aggregate, the par value of the
Collateral at the date of an Advance. In addition, the Borrower, the Bank and
UBS Financial Services Inc. acknowledge and agree that if (a) the Bank is
repaid all of the Credit Line Obligations due to the Bank under the Agreement
and this Addendum and (b) as part of such repayment, the Bank realizes on
the additional collateral and/or assurances pledged or otherwise provided by
UBS Financial Services and/or any such third party to the Bank, then the
Agreement shall not terminate and the Bank shall automatically assign to UBS
Financial Services Inc. and any such third party, and UBS Financial Services
Inc. and any such third party shall automatically assume and be subrogated to,
all of the Bank’s rights, claims and interest in and under the Agreement and
this Addendum, including without limitation, the security interest in the
Collateral granted the Bank under the Agreement and this Addendum (further
including, without limitation, interest, dividends, distributions, premiums,
other income and payments received in respect of any Collateral) to the extent
of the amount that the Bank has realized on all or any part of the additional
collateral and/or assurances pledged or otherwise provided by UBS Financial
Services and/or any such third party to the Bank in order to effect the
repayment of the Credit Line Obligations due to the Bank under the Agreement.
Upon such automatic assignment and subrogation, UBS Financial Services Inc. and
any such third party shall he entitled to directly exercise any and all rights
and remedies afforded the Bank under the Agreement, this Addendum and any and
all other documents and agreements entered into in connection with the
Agreement and/or this Addendum.”

 

2.   Section 4 c) of the Agreement is deleted
in its entirety and replaced with the following:

 

“Each Variable Rate Advance
under a Prime Credit Line will bear interest at a variable rate equal to LIBOR,
adjusted daily, plus the percentage rate that (unless otherwise specified by
the Bank in writing) is shown on Schedule I below for the Approved Amount of
the Credit Line. For Prime Credit Lines, the rate of interest payable on
Variable Rate Advances is subject to change without notice in accordance with
fluctuations in

 

10

 

LIBOR. On each day that LIBOR
changes (or that is otherwise specified by the Bank in writing), the interest
rate on all Variable Rated Advances will change accordingly.”

 

3.   The Agreement is amended by adding the
following as Section 5 g):

 

“Borrower will make
additional payments (“Additional Payments”) as follows:

 

·                  The proceeds of
any liquidation, redemption, sale or other disposition of all or part of the
auction rate securities in the Collateral Account (the “Pledged ARS”) will be
automatically transferred to Bank as payments. The amount of these payments
will be determined by the proceeds received in the Collateral Account, and may
be as much as the total Credit Line Obligations.

 

·                  All other
interest, dividends, distributions, premiums, other income and payments that
are received in the Collateral Account in respect of any Collateral will be
automatically transferred to Bank as payments. These are referred to as “ARS
Payments.” The amount of each ARS Payment will vary, based on the proceeds
received in the Collateral Account. Bank estimates that the ARS Payments will
range from zero to fifteen ($15.00) dollars per month per $1,000 in par value
of Pledged ARS. Bank will notify Borrower at least ten (10) days in
advance of any ARS Payment that falls outside of this range. If Borrower would
prefer to have advance notice of each payment to be made to Advances, Borrower
may cancel ARS Payments as described below.

 

·                  Borrower agrees
that any cash, check or other deposit (other than a deposit of securities) made
to the Collateral Account is an individual authorization to have such amount
transferred to Bank as a payment. The amount of each payment is the amount of
the deposit.

 

Each Additional Payment will
be applied, as of the date received by Bank, in the manner set forth in the
last sentence of Section 5 d). Borrower acknowledges that neither Bank nor
UBS Financial Services Inc. sets or arranges for any schedule of Additional
Payments. Instead, Additional Payments will be transferred automatically from
the Collateral Account whenever amounts are received in the Collateral Account,
generally on the second Business Day after receipt.

 

Borrower may elect to stop
ARS Payments at any time, and this election will cancel all ARS Payments that
would occur three (3) Business Days or more after Bank receives such
notice. If Borrower stops ARS Payments, Borrower will continue to be obligated
to pay principal, interest, and other amounts pursuant to the Agreement. If
Borrower elects to cancel ARS Payments, all other Additional Payments will be
cancelled. Cancelling ARS Payments and Additional Payments may result in higher
interest charges by Bank because amounts received in the Collateral Account
will not be automatically transferred and credited. Any amounts received in the
Collateral Account will remain in the Collateral Account unless Bank permits
you to withdraw all or part of such amounts. Your notice to cancel must be sent
to: Attention: Head of Credit Risk Monitoring, UBS Bank USA, 299 South Main
Street, Suite 2275, Salt Lake City, Utah 84111, or call (801) 741-0331.

 

Important Disclosure
About Required Payments. If Additional Payments are sufficient to pay
all accrued interest on Advances on or before a due date, then Borrower need
not make an additional interest payment. Excess Additional Payments will be
applied against principal. However, if Additional Payments are not sufficient
to pay all accrued interest on Advances on or before a due date, then Bank may,
in its sole discretion (1) capitalize unpaid interest as an additional
Advance, although Bank generally will capitalize interest only if the total of
all Advances will be under the Credit Line, or (2) require Borrower to
make payment of all accrued and unpaid interest.”

 

4.   The Agreement is
amended by adding the following as Section 10 e):

 

“The Borrower agrees that in
the event the Bank determines to liquidate or sell any Collateral, the Bank
shall, to the fullest extent permitted by applicable law, have the right to do
so in any manner, including, without limitation, the sale of Collateral
individually or in a block, for cash or for credit, in a public or private
sale, with or without public notice, through the use of sealed bids or
otherwise, with the aid of any advisor or agent who may be an affiliate of the
Bank or in any other manner as the Bank in its sole discretion shall choose.
The Borrower acknowledges that the price the Bank obtains for Collateral in the
Bank’s chosen method of

 

11

 

sale may be lower than might
be otherwise obtained in another method of sale, and the Borrower hereby agrees
that any such sale shall not be considered to be not commercially reasonable
solely because of such lower price. The Borrower understands that there may not
be a liquid market for the Collateral and that, as a result, the price received
for the Collateral upon liquidation or sale by the Bank may be substantially
less than the Borrower paid for such Collateral or than the last market value
available for it, if any. The Borrower further agrees that any sale by the Bank
shall not be considered to be not commercially reasonable solely because there
are few (including only one) or no third parties who submit bids or otherwise
offer to buy the Collateral. The Borrower understands that the Bank’s sale of
any of the Collateral may be subject to various state and federal property
and/or securities laws and regulations, and that compliance with such laws and
regulations may result in delays and/or a lower price being obtained for the
Collateral. The Borrower agrees that the Bank shall have the right to restrict
any prospective purchasers to those who, in the Bank’s sole discretion, the
Bank deems to be qualified. The Borrower acknowledges that the Bank shall have
sole authority to determine, without limitation, the time, place, method of
advertisement and manner of sale and that the Bank may delay or adjourn any
such sale in its sole discretion. The Borrower expressly authorizes the Bank to
take any action with respect to the Collateral as the Bank deems necessary or
advisable to facilitate any liquidation or sale, and the Borrower agrees that
the Bank shall not be held liable for taking or failing to take any such
action, regardless if a greater price may have been obtained for the Collateral
if such action was or was not taken, as applicable. The Borrower hereby waives,
to the fullest extent permitted by law, any legal right of appraisal, notice,
valuation, stay, extension, moratorium or redemption that the Borrower would
otherwise have with respect to a sale of the Collateral.”

 

5.   The Agreement is amended by adding the
following as Section 11 f):

 

In connection with any
Collateral consisting of securities commonly referred to as “Auction Rate
Securities” (which for greater certainly, include, without limitation, debt
securities on which the interest rate payable is periodically re-set by an
auction process and/or equity securities on which any dividend payable is
periodically re-set by an auction process), if at any time any such Auction
Rate Securities may be sold, exchanged, redeemed, transferred or otherwise
conveyed by the Borrower for gross proceeds that are, in the aggregate, not
less than the par value of such securities (a “Par Value Liquidation”), the
Borrower agrees (i) to immediately effect such Par Value Liquidation and (ii) that
the proceeds of any such Par Value Liquidation so effected shall be immediately
and automatically used to pay down any and all outstanding Credit Line
Obligations to the extent of such proceeds. The Borrower hereby acknowledges
and agrees with the Bank and directs UBS Financial Services Inc. that to the
extent permitted by applicable law, this section shall constitute an
irrevocable instruction, direction and standing sell order to UBS Financial
Services Inc. to effect a Par Value Liquidation to the extent it is possible to
do so at any time during the term of this Agreement. The Borrower further
agrees with the Bank and UBS Financial Services Inc. to execute and deliver to
the Bank and/or UBS Financial Services Inc. such further documents and
agreements as may be necessary in the sole and absolute discretion of the Bank
and/or UBS Financial Services Inc. to effect the foregoing irrevocable instruction,
direction and standing sell order.”

 

6.   The Agreement is amended by adding the
following as Section 21:

 

“The Borrower hereby (i) acknowledges
and admits its indebtedness and obligations to the Bank under the Agreement;
and (ii) acknowledges, admits and agrees that it has no and shall assert
no defenses, offsets, counterclaims or claims in respect of its obligations
under the Agreement, in each case notwithstanding any claim or asserted claim
that it may have, or purport to have, against any affiliate of the Bank.”

 

12

 

7.     Schedules I
and II to the Agreement are deleted in their entirety and replaced with the
following Schedule

 

Schedule I to UBS Bank USA Credit Line Agreement

 

Schedule of Percentage Spreads Over LIBOR

 

	
  Aggregate Approved Amount

  	
   

  	
  Spread Over LIBOR

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $25,001 and over

  	
   

  	
  1.00%

  	
   

  

 

The
Bank reserves the right to change the Spread over LIBOR, in its sole and
absolute discretion and without notice to Borrower, if at any time the
Collateral which consists of securities commonly referred to as “Auction Rate
Securities” may be sold, exchanged, redeemed, transferred or otherwise conveyed
by Borrower for gross proceeds that are, in the aggregate, not less than the
par value of such securities.”

 

8.              The Bank and the
Borrower acknowledge and agree that notwithstanding anything to the contrary in
the Agreement, Borrower shall not request and the Bank shall not make a Fixed
Rate Advance.

 

9.              Section 8
f) of the Agreement is deleted in its entirety and replaced with the following:

 

“If
a Collateral Account has margin features, the margin features will be removed
by UBS Financial Services Inc. or UBS International Inc., as applicable, so
long as there is no outstanding margin debit in the Collateral Account. If a
Collateral Account has Resource Management Account® or Business Services
Account BSA® features, such as check writing, cards, bill payment, or
electronic funds transfer services, all such features shall be removed by UBS
Financial Services Inc. or UBS International Inc., as applicable.”

 

10.       The Bank and the
Borrower acknowledge and agree that notwithstanding anything to the contrary in
the Agreement, the Credit Line shall not have Credit Line checks.

 

11.  The Agreement
is amended by adding the following as Section 22:

 

“Each Loan Party also hereby grants the Bank a lien
on such Loan Party’s right to receive proceeds under any loan or financing
agreement entered into subsequent to the date hereof or under any issuance of
shares by such Loan Party subsequent to the date hereof under any primary or
secondary offering, or other financing arrangement that such Loan Party may
undertake. Each Loan Party agrees to promptly notify the Bank about the
occurrence of or its intention to conduct any transaction contemplated by the
prior sentence.”

 

12.  The Agreement
is amended by adding the following as Section 23:

 

“The Borrower understands, acknowledges and agrees that the Bank shall
have no obligation to extend any further credit to the Borrower.”

 

13

 

B.            This Addendum
may be signed in multiple original counterparts, each of which shall be deemed
an original and all of which together shall constitute one and the same
instrument.

 

IN WITNESS WHEREOF, each of the parties has signed this Addendum
pursuant to due and proper authority as of the date set forth below.

 

	
   

  	
  Borrower Name

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter Kies

  
	
   

  	
  Name:

  	
  Peter Kies

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  UBS BANK USA

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tim Kaspar 

  
	
   

  	
  Name:

  	
  Tim Kaspar 

  
	
   

  	
  Title:

  	
  AVP 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Clinton Newkirk 

  
	
   

  	
  Name:

  	
  Clinton Newkirk

  
	
   

  	
  Title:

  	
  AVP 

  
				

 

 

Date:       August 21, 2008

 

14Exhibit 10.1

 

August 22,
2008

 

BNP
Paribas, as Lender and Administrative Agent 

787
Seventh Avenue

New
York, NY 10019

 

Deutsche
Bank Trust Company Americas, as Collateral Agent and Depositary Agent 

60
Wall Street, 27th Floor

Mail
Stop: NYC60-2710

New
York, NY 10005

 

The Lender parties to the Credit 

Agreement
(as defined below)

 

Re:     Request for
Consent and Amendment pursuant to Section 9.12(a) of the Credit
Agreement (as defined below) and Section 10.1 of the Account Agreement (as  defined in such Credit Agreement)

 

Ladies
and Gentlemen:

 

1.             This Request
for Consent and Amendment (the “Consent”) is delivered
to you pursuant to (a) Section 9.12(a) of that certain Credit
Agreement, dated as of September 25, 2006 (as amended, supplemented and
modified from time to time, the “Credit Agreement”), among BFE
Operating Company, LLC (“Opco”), Buffalo Lake Energy, LLC (“Buffalo
Lake”), Pioneer Trail Energy, LLC (“Pioneer Trail” and, together
with Opco and Buffalo Lake, the “Borrowers”), Opco, as
Borrowers’ Agent (the “Borrowers’ Agent”), the Lenders
party thereto, BNP Paribas, as Administrative Agent and Arranger, and Deutsche
Bank Trust Company Americas, as Collateral Agent and (b) Section 10.1
of that certain Collateral Account Agreement, dated as of September 25,
2006 (as amended, supplemented and modified from time to time, the “Account
Agreement”), among the Borrowers, the Borrowers’ Agent, Deutsche
Bank Trust Company Americas, as Collateral Agent and Deutsche Bank Trust
Company Americas, as Depositary Agent and Securities Intermediary. All
capitalized terms used herein and not otherwise defined shall have the meanings
assigned to such terms in the Credit Agreement. The parties hereto agree that
this Consent may be executed in counterparts.

 

2.             The Borrowers
have requested that the Administrative Agent, the Collateral Agent and the
Lenders (a) amend the Credit Agreement to (i) make the full Working
Capital Loan Commitment available to the Borrowers prior to the Conversion
Date, and (ii) effect certain other modifications and (b) consent to
certain amendments to the Account Agreement, in each case upon the terms and
conditions set forth herein.

 

3.             The Borrowers
have further requested that the Collateral Agent and the Depositary Agent amend
the Account Agreement to (a) permit the Borrowers to withdraw funds from
the Project Revenues Collection Account on dates that are not Monthly Transfer
Dates solely for the purchase of corn, natural gas, chemicals, enzymes,
denaturant and electricity and (b) effect certain other modifications in
furtherance of the requested amendments to the Credit Agreement, in each case
upon the terms and conditions set forth herein.

 

 

4.             The parties
hereto agree that Section 2.2(c) of the Credit Agreement is hereby
amended and restated to read in its entirety as follows:

 

“(c) Subject
to and upon the terms and conditions set forth herein, each of the Working
Capital Lenders agrees to make, from time to time during the Working Capital
Availability Period, loans (each a “Working Capital Loan” and, collectively,
the “Working Capital Loans”) to the Borrowers, which
Working Capital Loans (i) shall at the option of the Borrowers’ Agent, be
Base Rate Loans or Eurodollar Loans (provided, however, that, except
as provided in Section 2.12, all Working Capital Loans comprising the same
Borrowing shall at all times be of the same Type), (ii) shall be made and
maintained in Dollars, (iii) may be repaid and reborrowed in accordance
with the provisions hereof, (iv) for any Working Capital Lender, in
aggregate principal amount, together with the product of (x) such Working
Capital Lender’s Letter of Credit Percentage, if any, and (y) the
aggregate amount of all Letter of Credit Outstandings, shall not exceed the
Working Capital Loan Commitment of such Lender and (v) shall mature on the
Working Capital Loan Maturity Date; provided, that (a) each
of the Working Capital Lenders agrees to make Working Capital Loans prior to
the Conversion Date to the Borrowers, which shall be subject to clauses (i) through
(v) above, for the sole purpose of purchasing corn directly from Cargill
pursuant to the relevant Corn Supply Agreement (or pursuant to any other
agreement or contract in form and substance acceptable to the Administrative
Agent) and purchasing enzymes, chemicals, denaturant, gas, water, electricity
and other utilities for the start-up, testing and operation of the Plants, in
each case subject to Section 5.31; and (b) the proceeds of any
Working Capital Loans to be made after August 15, 2008 shall be used for
purchasing corn, enzymes, chemicals, denaturant, gas, water, electricity and
other utilities that are delivered to the Borrowers not earlier than August 18,
2008 (for the avoidance of doubt, the proceeds of any Working Capital Loans
shall not be available for reimbursement of any payments made by the Sponsor
and/or any other Affiliates of the Borrowers for purchasing corn, enzymes,
chemicals, denaturant, gas, water, electricity and other utilities).”

 

5.             The parties
hereto agree that Section 3.5(e) of the Credit Agreement is hereby
amended and restated to read in its entirety as follows:

 

“(e) Certificates. (i) Except
in the case of any Borrowing of a Working Capital Loan for the purpose of
purchasing corn from Cargill pursuant to the relevant Corn Supply Agreement (or
pursuant to any other agreement or contract in form and substance acceptable to
the Administrative Agent) and purchasing enzymes, chemicals, denaturant, gas,
water, electricity and other utilities for the start-up, testing and operation
of the Plants, the Administrative Agent shall have received, no later than
three (3) Business Days before the date of the requested Borrowing or
Letter of Credit, a certificate from the Borrowers’ Agent, dated as of the date
of the requested Borrowing, demonstrating that all the Project Revenues
available to the Borrowers pursuant to the Account Agreement shall have been
fully utilized for working capital purposes by the Borrowers in respect of any
requested Borrowing or Letter of Credit prior to the Provisional Acceptance of
the earlier to occur of the Pioneer Trail Plant or the Buffalo Lake Plant. (ii) The
Administrative Agent shall have received, no later than three (3) Business
Days before the date of the requested Borrowing or Letter of Credit, a
certificate from the Borrowers’ Agent, dated as

 

2

 

of
the date of the requested Borrowing, certifying that (A) the proceeds of
the Working Capital Loans shall be used for the sole purpose of purchasing corn
directly from Cargill pursuant to the relevant Corn Supply Agreement (or
pursuant to any other agreement or contract in form and substance acceptable to
the Administrative Agent) and purchasing enzymes, chemicals, denaturant, gas,
water, electricity and other utilities for the start-up, testing and operation
of the Plants, in each case subject to Section 5.31; and (B) the
proceeds of any Working Capital Loans to be made after August 15, 2008
shall be used for purchasing corn, enzymes, chemicals, denaturant, gas, water,
electricity and other utilities that are delivered to the Borrowers not earlier
than August 18, 2008.”

 

6.             The parties
hereto agree that Section 5.19 of the Credit Agreement is hereby amended
by adding the following to the end thereof:

 

“Notwithstanding
the foregoing, Buffalo Lake and Pioneer Trail shall be permitted to purchase
from the Sponsor corn, natural gas and enzymes up to the quantities and for the
prices not exceeding the respective prices set forth on Appendix B
hereto, which corn, natural gas and enzymes in each case has been purchased by
the Sponsor with its own funds and delivered to the Borrowers prior to August 15,
2008, provided that the Borrowers shall have delivered to the
Administrative Agent at least one (1) Business Day prior to the date of
such proposed purchase all invoices, title transfer and other documents (the “Purchase
Documents”) evidencing such purchases and prices, in each case in form and
substance reasonably satisfactory to the Administrative Agent, provided,
further, that the Borrowers shall deliver to the Administrative Agent
within five (5) Business Days after the date of such purchases evidence
that each of Cargill, natural gas supplier and enzymes supplier has been paid
in full in respect of the invoices referred to in Appendix B.”

 

7.             The parties
hereto agree that Section 5.25(c)(i) of the Credit Agreement is
hereby amended and restated to read in its entirety as follows:

 

“(i) purchase
grain from Person(s) other than (x) prior to the Conversion Date and
subject to Sections 5.16 and 5.19, the Sponsor, or (y) Cargill or require
Cargill to purchase grain from Person(s) designated by such Borrower
(other than pursuant to a corn supply agreement entered into to obtain
replacement corn as a result of a default or breach by Cargill under the
relevant Corn Supply Agreement) or”

 

8.             The parties
hereto agree that Section 4.2 of the Account Agreement is hereby amended
by adding the following new clause (e) at the end thereof:

 

“(e) In
addition to the foregoing, the Borrower may request withdrawals and transfers
of monies available in the Project Revenues Collection Account on any Business
Day (other than the Monthly Transfer Date) selected by the Borrowers (each, an “Intra-Month
Transfer Date”), subject in each case to the terms and conditions of this
paragraph (e). The Depositary Agent shall make withdrawals and transfer of
monies to the extent then available in the Project Revenues Collection Account
in accordance with an Officer’s Certificate in the form attached hereto as Exhibit A-1
to be received by the Depositary Agent (with a copy to the Administrative
Agent) before 11:00 a.m. (New York City time)

 

3

 

on
the Intra-Month Transfer Date setting forth the amount to be withdrawn pursuant
to this Section 4.2(e) and the Persons to whom (which can only be
Cargill or (subject to Sections 5.16 and 5.19 of the Credit Agreement) the
Sponsor or any natural gas supplier pursuant to the respective Project
Document) and the address or wire transfer instructions required for such
withdrawal (with respect to such Intra-Month Transfer Date, the “Intra-Month
Transfer Certificate”), solely for the following purposes (so long as the
Depositary Agent shall not have received on or prior to such Intra-Month
Transfer Date a written objection from the Administrative Agent with respect to
such Intra-Month Transfer Certificate stating that such Intra-Month Transfer
Certificate does not comply with this Account Agreement or any other Financing
Document):

 

(i)            for purchasing
corn from (A) Cargill or (B) subject to Sections 5.16 and 5.19 of the
Credit Agreement, the Sponsor, for the start up, testing and operation of the
Plants as certified in such Intra-Month Transfer Certificate, provided
that Borrowers shall not purchase more than seven million (7,000,000) bushels
of corn (comprising of up to three million five hundred thousand (3,500,000)
bushels of corn for each of the Buffalo Lake Plant and the Pioneer Trail Plant)
in any calendar month;

 

(ii)           for purchasing
natural gas for the start up, testing and operation of the Plants as certified
in such Intra-Month Transfer Certificate, provided that Borrowers shall
not (x) purchase more than six hundred thousand (600,000) MMBTUs of
natural gas (comprising of up to three hundred thousand (300,000) MMBTUs of
natural gas for each of the Buffalo Lake Plant and the Pioneer Trail Plant) in
any calendar month and (y) make more than two purchases of natural gas in
any calendar month; and

 

(iii)          for purchasing
denaturant, enzymes, chemicals and electricity for the start up, testing and
operation of the Plants as certified in such Intra-Month Transfer Certificate, provided
that Borrowers shall not (x) spend more than $1,074,000 in the aggregate
for purchases of denaturant, $504,000 in the aggregate for purchases of
enzymes, $764,000 in the aggregate for purchases of chemicals and $901,000 in
the aggregate for purchases of electricity, in each case in any calendar month
and (y) make more than two purchases of electricity in any calendar month.”

 

9.             The parties
hereto agree that Exhibit A (Form of Transfer Date Certificate) to
the Account Agreement is hereby amended by adding the following new paragraph
16:

 

“16.         The
[corn][natural gas][enzymes] proposed to be purchased by the Borrowers pursuant
to this Transfer Date Certificate is permitted to be purchased pursuant to Section 5.19
of the Credit Agreement. After giving effect to [corn][natural gas][enzymes]
purchased pursuant to this Transfer Date Certificate, the aggregate quantity of
[corn purchased by the Borrowers from the Sponsor equals
[        ] bushels][natural gas purchased
by the Borrowers from the Sponsor equals [        ]
MMBTUs][enzymes purchased by the Borrowers from the Sponsor equals [        ]],
which is not in excess of

 

4

 

the
aggregate quantities of [corn][natural gas][enzymes] permitted to be purchased
pursuant to Section 5.19 of the Credit Agreement.”

 

10.           The parties
hereto agree that the Account Agreement is hereby amended by adding Exhibit A-1
“Form of Intra-Month Transfer Certificate” to the Account Agreement as set
forth on Appendix A hereto.

 

11.           In order to
induce the Administrative Agent and the Lenders to enter into this Consent,
each of the Borrowers:

 

(a)           represents and warrants
that no Default or Event of Default has occurred and is continuing on the date
hereof;

 

(b)           agrees that
this Consent constitutes a Financing Document;

 

(c)           agrees to take
any and all action as may be reasonably necessary promptly to enforce its rights
and to collect any and all sums due to it from Cargill pursuant to the Project
Documents (including by invoicing Cargill in accordance with the applicable
Project Documents and providing written notice to Cargill of Cargill’s failure
to pay any amount that is due to such Borrower) and, upon request of the
Administrative Agent, to submit to the Administrative Agent copies of
correspondence to and/or from Cargill relating to ethanol and distiller’s
grain; and

 

(d)           agree to pay or
cause to be paid by the Sponsor a consent fee (the “Consent Fee”) equal to
twenty-five thousand Dollars ($25,000) for each Lender that executes this
Amendment, which Consent Fee shall be paid to the Administrative Agent for
distribution to each such Lender. The Consent Fee shall be due and payable on
the first date on which any transfer is made from the Project Revenues
Collection Account after the date hereof.

 

12.           Pursuant to Section 9.12(a) of
the Credit Agreement, the Administrative Agent and the Lenders that are
signatories to this Consent hereby approve the amendments to the Credit
Agreement set forth in this Consent and the amendments to the Account Agreement
set forth in this Consent.

 

13.           Pursuant to Section 9.12(a) of
the Credit Agreement and Section 10.1 of the Account Agreement, the
Lenders hereby authorize and direct the Administrative Agent and the Collateral
Agent to execute and deliver this Consent and any other documents which may be
reasonably necessary to give effect to the amendments and consents contained in
this Consent.

 

14.           Pursuant to Section 10.1
of the Account Agreement, the Administrative Agent hereby authorizes and
directs the Collateral Agent to execute and deliver this Consent and any other
documents which may be reasonably necessary to give effect to the amendments
and consents contained in this Consent.

 

15.           Except as
expressly amended hereby, all terms and conditions contained in the Credit
Agreement and all other Financing Documents shall remain unchanged and in full
force and effect in accordance with their respective terms.

 

5

 

16.         The Lenders and
the Agents expressly reserve the option to exercise any and all rights and
remedies afforded to them (i) as a result of any Default or Event of
Default or (ii) that may otherwise be available to them under the Credit
Agreement or other Financing Documents or applicable law, and nothing in this
Consent, other than the matters specifically set forth in this Consent, shall
constitute a waiver of, or an agreement to forebear from the exercise of, any
of such rights and remedies. This Consent is limited as specified and shall not
constitute a modification, acceptance or waiver of any other provision of the
Credit Agreement (or of any provision beyond the specific waivers granted
hereby) or any other Financing Document.

 

17.         THIS CONSENT
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
NEW YORK WITHOUT REGARD TO THE CONFLICT OF LAW RULES THEREOF (OTHER THAN SECTION 5-1401
OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

18.         This Consent
shall become effective as of the date first written above (the “Effective
Date”) upon the following condition having been fully satisfied: each of the
parties hereto shall have executed and delivered (including by way of facsimile
or electronic “pdf” format) to the Administrative Agent duly executed
counterparts of this Consent.

 

6

 

Appendix A to Consent

 

EXHIBIT A-1

to

Collateral Account Agreement

 

[FORM OF INTRA-MONTH TRANSFER CERTIFICATE]

 

[DATE]

 

Deutsche Bank Trust Company Americas, 

as Depositary Agent under the

Account Agreement referred to below 

60 Wall Street, 27th Floor

Mail
Stop: NYC60-2710

New
York, New York 10005

Attention:
Manager, Project Finance Group

 

	
  cc:

  	
  BNP
  Paribas,

  
	
   

  	
  as
  Administrative Agent

  
	
   

  	
  787
  Seventh Avenue, 11th Floor

  
	
   

  	
  New
  York, New York 10019

  
	
   

  	
  Attention:
  Barette Palmer

  

 

Re:          Collateral Account
Agreement, dated as of September 25, 2006, among BFE Operating Company,
LLC (“Opco”), Buffalo Lake Energy, LLC (“Buffalo Lake”), Pioneer
Trail Energy, LLC (“Pioneer Trail” and together with Opco and Buffalo
Lake, the “Borrowers”), Opco, as the Borrowers’ Agent, Deutsche Bank
Trust Company Americas (the “Collateral Agent”), and Deutsche Bank Trust
Company Americas (the “Depositary Agent”) (such Collateral Account
Agreement, as amended, supplemented or modified and in effect from time to
time, the “Account Agreement”).

 

Ladies
and Gentlemen:

 

This
Certificate (the “Intra-Month Transfer Certificate”) is delivered to you
pursuant to Section 4.2(e) of the Account Agreement and covers the
amount of monies to be withdrawn and transferred from the Project Revenues
Collection Account on                   ,
20    (herein referred to as the “Intra-Month Transfer Date”)
to the extent available in accordance with the instructions set forth herein.
Capitalized terms used herein and not otherwise defined have the respective
meanings set forth in the Credit Agreement dated as of September 25, 2006,
among the Borrowers, Opco, as the Borrowers’ Agent, the various financial
institutions party thereto from time to time, as Lenders, Deutsche Bank Trust
Company Americas, as Collateral Agent, and

 

 

BNP
Paribas, as Administrative Agent and Arranger (as amended, supplemented or
modified and in effect from time to time, the “Credit Agreement”). With
respect to this Intra-Month Transfer Certificate, the Borrower hereby certifies
as follows(1):

 

1.     The aggregate amount to be
withdrawn and transferred from the Project Revenues Collection Account in
accordance with this Intra-Month Transfer Certificate on the Intra-Month
Transfer Date is $                     .

 

2.     Set forth on Annex A
attached hereto is the following information: (a) the name of each Person
to whom any payment is to be made from the amounts described in paragraph 1
above and the address or wire transfer instructions required for such payments,
(b) the amount of such payment or transfer and (c) the purpose of
such payment or transfer.

 

3.     Attached hereto as
Attachment I are copies of all invoices, payment applications and other written
information with respect to each item set forth on Annex A. The proposed
application of amounts to be withdrawn from the Project Revenues Collection
Account pursuant to this Intra-Month Transfer Certificate complies with the
applicable requirements contained in the Credit Agreement and the Account
Agreement.

 

4.     The amount of money
requested to be transferred under this Intra-Month Transfer Certificate from
the Project Revenues Collection Account does not exceed the amount permitted to
be expended for Operation and Maintenance Expenses during such Monthly Period
with respect to such Plant pursuant to the Credit Agreement, taking into
account, for this purpose, all other amounts requested to be transferred in
respect of such period pursuant to a Transfer Date Certificate or any other
Intra-Month Transfer Certificate.

 

5.     All Project Revenues
received by the Borrower since the date of the most recent  Monthly
Transfer Date Certificate or Intra-Month Transfer Certificate have been
deposited in the Project Revenues Collection Account in accordance with the
terms of the Credit Agreement and the Account Agreement.

 

6.     After giving effect to corn
purchased pursuant to this Intra-Month Transfer Certificate, the aggregate
quantity of corn purchased this calendar month for the Buffalo Lake Plant
equals [         ] bushels, which
is not in excess of the three million five hundred thousand (3,500,000) bushels
permitted to be purchased in respect of the Buffalo Lake Plant pursuant to Section 4.2(e) of
the Account Agreement.

 

7.     After giving effect to corn
purchased pursuant to this Intra-Month Transfer Certificate, the aggregate
quantity of corn purchased this calendar month for the Pioneer Trail Plant
equals [         ] bushels, which
is not in excess of the three million five hundred thousand (3,500,000) bushels
permitted to be purchased in respect of the Pioneer Trail Plant pursuant to Section 4.2(e) of
the Account Agreement.

 

(1) Insert appropriate bracketed
text and delete the bracketed text that is not relevant.

 

2

 

8.     The [corn][natural
gas][enzymes] proposed to be purchased by the Borrowers pursuant to this
Intra-Month Transfer Certificate is permitted to be purchased pursuant to Section 5.19
of the Credit Agreement. After giving effect to [corn][natural gas][enzymes]
purchased pursuant to this Intra-Month Transfer Certificate, the aggregate
quantity of [corn purchased by the Borrowers from the Sponsor equals [         ]
bushels][natural gas purchased by the Borrowers from the Sponsor equals [         ]
MMBTUs][enzymes purchased by the Borrowers from the Sponsor equals [         ]], which is not
in excess of the aggregate quantities of [corn][natural gas][enzymes] permitted
to be purchased pursuant to Section 5.19 of the Credit Agreement.

 

9.     After giving effect to this
Intra-Month Transfer Certificate, the Borrower has withdrawn money from the
Project Revenues Collection Account no more than two times this calendar month
(excluding any withdrawal pursuant to a Transfer Date Certificate) for the
purchase of (a) natural gas and (b) electricity.

 

10.   After giving effect to this
Intra-Month Transfer Certificate, the aggregate quantity of natural gas purchased
this calendar month for the Buffalo Lake Plant equals [         ]
MMBTUs, which is not in excess of the three hundred thousand (300,000)
MMBTUs permitted to be purchased in respect of the Buffalo Lake Plant pursuant
to Section 4.2(e) of the Account Agreement.

 

11.   After giving effect to this
Intra-Month Transfer Certificate, the aggregate quantity of natural gas
purchased this calendar month for the Pioneer Trail Plant equals [         ]
MMBTUs, which is not in excess of the three hundred thousand (300,000) MMBTUs  permitted to be
purchased in respect of the Buffalo Lake Plant pursuant to Section 4.2(e) of
the Account Agreement.

 

12.   After giving effect to this
Intra-Month Transfer Certificate, the aggregate amount spent this calendar
month for the purchases of denaturant equals $[         ], which is not
in excess of $1,074,000 permitted to be spent for the purchases of denaturant
pursuant to Section 4.2(e) of the Account Agreement.

 

13.   After giving effect to this
Intra-Month Transfer Certificate, the aggregate amount spent this calendar
month for the purchases of enzymes equals $[         ], which is not
in excess of $504,000 permitted to be spent for the purchases of enzymes
pursuant to Section 4.2(e) of the Account
Agreement.

 

14.   After giving effect to this
Intra-Month Transfer Certificate, the aggregate amount spent this calendar
month for the purchases of chemicals equals $[         ], which is not
in excess of $764,000 permitted to be spent for the purchases of chemicals
pursuant to Section 4.2(e) of the Account Agreement.

 

15.   After giving effect to this
Intra-Month Transfer Certificate, the aggregate amount spent this calendar
month for the purchases of electricity equals $901,000, which is not in excess
of $[         ] permitted to
be spent for the purchases of electricity pursuant to Section 4.2(e) of
the Account Agreement.

 

3

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  BFE OPERATING COMPANY, LLC, as 

  Borrowers’ Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

4

 

Annex A to Exhibit A-1

 

INTRA-MONTH TRANSFER
CERTIFICATE DATED             ,
20

 

INSTRUCTIONS

 

Transfer Date:
             ,
20

 

On
the Intra-Month Transfer Date, the Borrowers’ Agent instructs the Depositary
Agent to transfer monies on deposit in the Project Revenues Collection Account
in the aggregate amount of $                  as
follows:

 

	
  Payee(2) Name, Address and 

  Wire Transfer Instructions

  	
   

  	
  Amount

  	
   

  	
  Purpose

  
	
   

  	
   

  	
   

  	
   

  	
  [Purchase of corn from
  [Cargill] [the Sponsor]] [Purchase of natural gas from
  [         ] pursuant to
  [         ](3)][Purchase of denaturant
  from [         ] pursuant to [         ](4)][Purchase
  of enzymes from [         ]
  pursuant to [         ](5)][Purchase of chemicals from
  [         ] pursuant to [         ](6)][Purchase
  of electricity from [         ] pursuant to [         ](7)]

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

(2) Pursuant to Section 4.2(e) of
the Account Agreement, the payee can only be Cargill or (subject to Sections
5.16 and 5.19 of the Credit Agreement) the Sponsor or any natural gas supplier
pursuant to the respective Project Document.

(3) Specify the applicable Project Document.

(4) Specify the applicable Project Document

(5) Specify the applicable Project Document.

(6) Specify the applicable Project Document. 

(7) Specify the
applicable Project Document.

 

 

Attachment I

 

 

Appendix B to Consent

 

 

	
  BUFFALO LAKE AND PIONEER TRAIL

  	
   

  
	
  Purchases for August 2008

  	
  Appendix B

  

 

	
  Vendor

  	
   

  	
  Invoice #

  	
   

  	
  Description

  	
   

  	
  Load

  Date

  	
   

  	
  Paid

  Date

  	
   

  	
  Bushels

  	
   

  	
  Invoice Price

  Per Bushel

  	
   

  	
  Spot Price

  Per Bushel

  	
   

  	
  Subtotal

  	
   

  	
  Other

  Fees

  	
   

  	
  Project Entity

  Invoice Total

  	
   

  	
  Parent Company

  Invoice Total

  	
   

  	
  Comments

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cargill

  	
   

  	
  CFAI-AH 9272069

  	
   

  	
  BLE Corn Purchase

  	
   

  	
  8/5/2008

  	
   

  	
  8/8/2008

  	
   

  	
  145,674.37

  	
   

  	
  5.68

  	
   

  	
  4.99

  	
   

  	
  726,915.11

  	
   

  	
  8,115.51

  	
   

  	
  735,030.62

  	
   

  	
  1,045,818.39

  	
   

  	
  Already paid by Parent Company

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cargill

  	
   

  	
  CWOR-AH 9262074

  	
   

  	
  PTE corn purchases

  	
   

  	
  8/6/2008

  	
   

  	
   

  	
   

  	
  16,953.04

  	
   

  	
  5.89

  	
   

  	
  4.90

  	
   

  	
  83,069.90

  	
   

  	
  920.09

  	
   

  	
  83,989.99

  	
   

  	
  99,053.58

  	
   

  	
   

  	
   

  
	
  Cargill

  	
   

  	
  CFAI-AH 9272070

  	
   

  	
  BLE corn purchases

  	
   

  	
  8/6/2008

  	
   

  	
   

  	
   

  	
  170,272.86

  	
   

  	
  5.65

  	
   

  	
  4.82

  	
   

  	
  820,715.19

  	
   

  	
  10,115.51

  	
   

  	
  830,830.70

  	
   

  	
  1,025,026.10

  	
   

  	
   

  	
   

  
	
  Cargill

  	
   

  	
  CWOR-AH 9262075

  	
   

  	
  PTE corn purchases

  	
   

  	
  8/7/2008

  	
   

  	
   

  	
   

  	
  134,545.84

  	
   

  	
  5.68

  	
   

  	
  5.04

  	
   

  	
  678,111.03

  	
   

  	
  7,574.53

  	
   

  	
  685,685.56

  	
   

  	
  778,031.81

  	
   

  	
   

  	
   

  
	
  Cargill

  	
   

  	
  CFAI-AH 9272071

  	
   

  	
  BLE corn purchases

  	
   

  	
  8/7/2008

  	
   

  	
   

  	
   

  	
  157,261.78

  	
   

  	
  6.65

  	
   

  	
  4.96

  	
   

  	
  780,018.43

  	
   

  	
  9,382.76

  	
   

  	
  789,401.19

  	
   

  	
  1,071,904.49

  	
   

  	
   

  	
   

  
	
  Cargill

  	
   

  	
  CWOR-AH 9262076

  	
   

  	
  PTE corn purchases

  	
   

  	
  8/8/2008

  	
   

  	
   

  	
   

  	
  67,416.00

  	
   

  	
  7.03

  	
   

  	
  4.81

  	
   

  	
  324,270.96

  	
   

  	
  3,950.91

  	
   

  	
  328,221.87

  	
   

  	
  469,650.98

  	
   

  	
   

  	
   

  
	
  Cargill

  	
   

  	
  CFAI-AH 9272072

  	
   

  	
  BLE corn purchases

  	
   

  	
  8/8/2008

  	
   

  	
   

  	
   

  	
  164,635.98

  	
   

  	
  6.82

  	
   

  	
  4.73

  	
   

  	
  778,728.19

  	
   

  	
  9,602.41

  	
   

  	
  788,330.60

  	
   

  	
  1,134,078.29

  	
   

  	
   

  	
   

  
	
  BP Canada

  	
   

  	
  None

  	
   

  	
  BLE natural gas

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  728,632.50

  	
   

  	
  728,632.50

  	
   

  	
   

  	
   

  
	
  Novozymes

  	
   

  	
  8706766, 8706764, 8707127

  	
   

  	
  BLE & PTE enzymes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  291,064.76

  	
   

  	
  291,064.76

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  856,759.87

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5,261,187.78

  	
   

  	
  6,643,260.90

  	
   

  	
   

  	
   

  

 

Spot price per bushel is based
on CPBOT price for the load date then adjusted downward $.18 and $.26 for PTE
and BLE respectively for local basis adjustment.

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Date

  	
   

  	
  Spot

  	
   

  	
  PTE

  	
   

  	
  BLE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  08/01/08

  	
   

  	
  $

  	
  5.65

  	
   

  	
  $

  	
  5.47

  	
   

  	
  $

  	
  5.39

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  08/04/08

  	
   

  	
  $

  	
  5.36

  	
   

  	
  $

  	
  5.18

  	
   

  	
  $

  	
  5.10

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  08/05/08

  	
   

  	
  $

  	
  5.25

  	
   

  	
  $

  	
  5.07

  	
   

  	
  $

  	
  4.99

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  08/06/08

  	
   

  	
  $

  	
  5.08

  	
   

  	
  $

  	
  4.90

  	
   

  	
  $

  	
  4.82

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  08/07/08

  	
   

  	
  $

  	
  5.22

  	
   

  	
  $

  	
  5.04

  	
   

  	
  $

  	
  4.96

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  08/08/08

  	
   

  	
  $

  	
  4.99

  	
   

  	
  $

  	
  4.81

  	
   

  	
  $

  	
  4.73

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  08/11/08

  	
   

  	
  $

  	
  4.97

  	
   

  	
  $

  	
  4.79

  	
   

  	
  $

  	
  4.71

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  08/12/08

  	
   

  	
  $

  	
  5.09

  	
   

  	
  $

  	
  4.91

  	
   

  	
  $

  	
  4.83

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  08/13/08

  	
   

  	
  $

  	
  5.39

  	
   

  	
  $

  	
  5.21

  	
   

  	
  $

  	
  5.13

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  08/14/08

  	
   

  	
  $

  	
  5.58

  	
   

  	
  $

  	
  5.40

  	
   

  	
  $

  	
  5.32

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  08/15/08

  	
   

  	
  $

  	
  5.30

  	
   

  	
  $

  	
  5.12

  	
   

  	
  $

  	
  5.04

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]