Document:

hlb_Current_Folio_Ex_107

		

			 

		

		

			 

		

		
			COBANK, ACB
		

		
			COMPEER FINANCIAL, FLCA AND COMPEER FINANCIAL, PCA
		

		
			AMENDED AND RESTATED
		

		
			SECURITY AGREEMENT
		

		
			 
		

		
			THIS AMENDED AND RESTATED SECURITY AGREEMENT (the “Security Agreement”) is executed and delivered by HLBE PIPELINE COMPANY, LLC (the “Debtor”), a Minnesota limited liability company, having its place of business (or chief executive office if more than one place of business) and its mailing address at 91246 390th Avenue Heron Lake, MN 56137 to COBANK, ACB, in its capacity as Administrative Agent on behalf of COMPEER FINANCIAL, FLCA, COMPEER FINANCIAL, PCA and COBANK, ACB (collectively the “Secured Party”), a federally-chartered instrumentality of the United States, whose mailing address is P.O. Box 5110, Denver, CO 80217.  This Security Agreement amends, restates, consolidates and supersedes that certain Security Agreement dated as of July 29, 2014 by HLBE PIPELINE COMPANY, LLC, reflecting AgStar Financial Services, FLCA as the secured party.
		

		
			 
		

		
			SECTION 1.  GRANT OF SECURITY INTEREST.  For valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Debtor hereby grants to the Secured Party a security interest in all of the personal property of the Debtor, wherever located and whether now existing or hereafter acquired, together with all accessions and additions thereto, and all products and proceeds thereof, including:
		

		
			 
		

		
			accounts; inventory (including without limitation, returned or repossessed goods); goods; as-extracted collateral; chattel paper; electronic chattel paper; instruments; investment property (including, without limitation, certificated and uncertificated securities, security entitlements, securities accounts, commodity contracts, and commodity accounts); letters of credit; letter-of-credit rights; documents; equipment; farm products; fixtures; general intangibles (including, without limitation, payment intangibles, choses or things in action, litigation rights and resulting judgments, goodwill, patents, trademarks and other intellectual property, tax refunds, miscellaneous rights to payment, investments and other interests in entities not included in the definition of investment property (including, without limitation, all equities and patronage rights in all cooperatives and all interests in partnerships and joint ventures), margin accounts, computer programs, software, invoices, books, records and other information relating to or arising out of the Debtor’s business); and, to the extent not covered by the above, all other personal property of the Debtor of every type and description, including without limitation, supporting obligations, interests or claims in or under any policy of insurance, commercial tort claims, deposit accounts, money, and judgments (the “Collateral”).
		

		
			 
		

		
			Where applicable, all terms used herein shall have the same meaning as presently and as hereafter defined in the Uniform Commercial Code (the “UCC”).
		

		
			 
		

		
			SECTION 2.  THE OBLIGATIONS.  The security interest granted hereunder shall secure the payment of all indebtedness and the performance of all obligations of the Debtor to the Secured Party of every type and description, whether now existing or hereafter arising, fixed or contingent, as primary obligor or as guarantor or surety, acquired directly or by assignment or otherwise, liquidated or unliquidated, regardless of how they arise or by what agreement or instrument they may be evidenced, including without limitation all loans, advances and other extensions of credit and all covenants, agreements, and provisions contained in all loan and other agreements between the parties, including Interest Rate Agreements (the “Obligations”).  As used in this agreement, “Interest Rate Agreement” means any interest rate swap, hedge, cap, collar or similar agreement, including any master agreement published by the International Swap and Derivatives Association, Inc., between the Debtor and CoBank, designed to protect the Debtor from fluctuations in interest rates.
		

		
			 
		

		
			

		 

		

			 

		

		

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			SECTION 3.  REPRESENTATIONS, WARRANTIES AND COVENANTS.  The Debtor represents, warrants and covenants as follows:
		

		
			 
		

		
			A.Title to Collateral.  Except as permitted by any other written agreement between the parties, and except for any security interest in favor of the Secured Party, the Debtor has clear title to all Collateral free of all adverse claims, interests, liens, or encumbrances.  Without the prior written consent of the Secured Party, or as authorized in any other agreement between the Debtor and the Secured Party, the Debtor shall not create or permit the existence of any adverse claims, interests, liens, or other encumbrances against any of the Collateral.  The Debtor shall provide prompt written notice to the Secured Party of any future adverse claims, interests, liens, or encumbrances against all Collateral, and shall defend diligently the Debtor’s and the Secured Party’s interests in all Collateral.
		

		
			 
		

		
			B.Validity of Security Agreement; Corporate Authority.  This Security Agreement is the valid and binding obligation of the Debtor, enforceable in accordance with its terms.  The Debtor is duly formed, validly existing and in good standing under the laws of its jurisdiction of formation.  The Debtor has the full corporate power to execute, deliver and carry out the terms and provisions of this Security Agreement and all related documents and to grant to the Secured Party a security interest in, and a lien on, the Collateral, has taken all necessary action to authorize the execution, delivery and performance of this Security Agreement and all related documents, and such execution, delivery and performance do not and will not (i) violate any of the terms or provisions of the organizational documents of the Debtor or any provision of any law, order, writ, judgment, injunction, decree, determination or award presently in effect having applicability to the Debtor, (ii) result in a breach of, or constitute an Event of Default under, any indenture or loan or credit agreement or any other agreement, document or instrument to which the Debtor is a party or by which the Debtor or any of the Debtor’s property may be bound or affected or (iii) result in or require the creation or imposition of any lien or other encumbrance of any nature upon or with respect to any of the property of the Debtor (except for any security interest in favor of the Secured Party).
		

		
			 
		

		
			C.Location of the Debtor.  The Debtor’s place of business (or chief executive office if more than one place of business) is located at the address shown above.  The Debtor’s state of incorporation or formation is as shown above.
		

		
			 
		

		
			D.Location of Fixtures.  All fixtures are now at the location or locations specified on Schedule A attached hereto and made a part hereof.
		

		
			 
		

		
			E.Name, Identity, and Corporate Structure.  The Debtor’s exact legal name is as set forth above.  Except as set forth on Schedule B, the Debtor has not within the past ten years changed its name, identity or corporate structure through incorporation, merger, consolidation, joint venture or otherwise.
		

		
			 
		

		
			F.Change in Name, State of Debtor’s Location, Location of Collateral, Etc.  Without giving at least thirty days’ prior written notice to the Secured Party, the Debtor shall not change its name, identity or corporate structure, the location of its place of business (or chief executive office if more than one place of business), its state of incorporation or formation, or the location of the Collateral.
		

		
			 
		

		
			G.Further Assurances.  Upon the request of the Secured Party, the Debtor shall do all acts and things as the Secured Party may from time to time deem necessary or advisable to enable it to perfect, maintain, and continue the perfection and priority of the security interest of the Secured Party in the Collateral, or to facilitate the exercise by the Secured Party of any rights or remedies granted to the Secured Party hereunder or provided by law.  Without limiting the foregoing, the Debtor agrees to execute, in form and substance satisfactory to the Secured Party, such financing statements, amendments thereto, supplemental agreements, assignments, notices of assignments, and other instruments and documents as the Secured Party 

		 

		

			 

		

		

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may from time to time request.  In addition, in the event the Collateral or any part thereof consists of instruments, documents, chattel paper, or money (whether or not proceeds of the Collateral), the Debtor shall, upon the request of the Secured Party, deliver possession thereof to the Secured Party (or to an agent of the Secured Party retained for that purpose), together with any appropriate endorsements and/or assignments.  Where Collateral is in the possession of a third party, the Debtor will join with the Secured Party in notifying the third party of the Secured Party’s security interest and obtaining an acknowledgment from the third party that it is holding the Collateral for the benefit of the Secured Party.  The Debtor will cooperate with the Secured Party in obtaining control with respect to Collateral consisting of deposit accounts (that are not held by the Secured Party as depositary institution), investment property, letter-of-credit rights and electronic chattel paper.  The Secured Party shall use reasonable care in the custody and preservation of such Collateral in its possession, but shall not be required to take any steps necessary to preserve rights against prior parties.  All costs and expenses incurred by the Secured Party to establish, perfect, maintain, determine the priority of, or release the security interest granted hereunder (including the cost of all filings, recordings, and taxes thereon and the fees and expenses of any agent retained by Secured Party) shall become part of the Obligations secured hereby and be paid by the Debtor on demand.
		

		
			 
		

		
			H.Insurance.  The Debtor shall maintain such property and casualty insurance with such insurance companies, in such amounts, and covering such risks, as are at all times satisfactory to the Secured Party.  All such policies shall provide for loss payable clauses or endorsements and other terms and conditions in form and content acceptable to the Secured Party.  Upon the request of the Secured Party, all policies (or such other proof of compliance with this Section as may be satisfactory to the Secured Party) shall be delivered to the Secured Party.  The Debtor shall pay all insurance premiums when due.  In the event of loss, damage, or injury to any insured Collateral, the Secured Party shall have full power to collect any and all insurance proceeds due under any of such policies (and the Debtor hereby agrees, upon request by the Secured Party, to promptly forward to the Secured Party all such insurance proceeds received directly by the Debtor), and may, at its option, apply such proceeds to the payment of any of the Obligations secured hereby, or may apply such proceeds to the repair or replacement of such Collateral.
		

		
			 
		

		
			I.Taxes, Levies, Etc.  The Debtor has paid and shall continue to pay when due all taxes, levies, assessments, or other charges which may become an enforceable lien against the Collateral.
		

		
			 
		

		
			J.Disposition and Use of Collateral by the Debtor.  Without the prior written consent of the Secured Party, the Debtor shall not at any time sell, transfer, lease, abandon, or otherwise dispose of any Collateral, except that, so long as no Event of Default exist hereunder, the Debtor may sell, transfer, lease, abandon, or otherwise dispose of equipment and inventory in the ordinary course of Debtor’s business.  The Debtor shall not use any of the Collateral in any manner which violates any statute, regulation, ordinance, rule, decree, order, or insurance policy.
		

		
			 
		

		
			K.Receivables.  The Debtor shall preserve, enforce, and collect all accounts, chattel paper, electronic chattel paper, instruments, documents and general intangibles, whether now owned or hereafter acquired or arising (the “Receivables”), in a diligent fashion and, upon the request of the Secured Party, the Debtor shall execute an agreement in form and substance satisfactory to the Secured Party by which the Debtor shall direct all account debtors and obligors on Receivables to make payment to a lock box deposit account under the exclusive control of the Secured Party.
		

		
			 
		

		
			L.Condition of Collateral.  All tangible Collateral is now in good repair and condition and the Debtor shall at all times hereafter, at its own expense, maintain all such Collateral in good repair and condition.
		

		
			 
		

		
			

		 

		

			 

		

		

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			M.Condition of Books and Records.  The Debtor has maintained and shall maintain complete, accurate and up-to-date books, records, accounts, and other information relating to all Collateral in such form and in such detail as may be satisfactory to the Secured Party, and shall allow the Secured Party or its representatives at any reasonable time to examine and copy such books, records, accounts, and other information.
		

		
			 
		

		
			N.Right of Inspection.  At all reasonable times upon the request of the Secured Party, the Debtor shall allow the Secured Party or its representatives to visit any of the Debtor’s properties or locations so that the Secured Party or its representatives may confirm, inspect and appraise any of the Collateral.  The Debtor will reimburse the Secured Party upon demand for all cost and expenses incurred by the Secured Party in connection with any such inspection or examination conducted by the Secured Party.
		

		
			 
		

		
			SECTION 4.  DEFAULT.  The breach of any of the Obligations secured hereby, and/or the breach of any representation, warranty, covenant, or agreement contained in this Security Agreement, shall constitute an “Event of Default” hereunder.
		

		
			 
		

		
			SECTION 5.  RIGHTS AND REMEDIES.  Upon the occurrence of any Event of Default under this agreement and at any time thereafter, the Secured Party may declare all Obligations to be immediately due and payable and may exercise any and all rights and remedies of the Secured Party in the enforcement of its security interest under the UCC, this Security Agreement, or any other applicable law.  Without limiting the foregoing:
		

		
			 
		

		
			A.Disposition of Collateral.  The Secured Party may sell, lease, or otherwise dispose of all or any part of the Collateral, in its then present condition or following any commercially reasonable preparation or processing thereof, whether by public or private sale or at any brokers’ board, in lots or in bulk, for cash, on credit or otherwise, with or without representations or warranties, and upon such other terms as may be acceptable to the Secured Party, and the Secured Party may purchase at any public sale.  At any time when advance notice of sale is required, the Debtor agrees that ten days’ prior written notice shall be reasonable.  In connection with the foregoing, the Secured Party may:
		

		
			 
		

		
			1.require the Debtor to assemble the Collateral and all records pertaining thereto and make such Collateral and records available to the Secured Party at a place to be designated by the Secured Party which is reasonably convenient to both parties;
		

		
			 
		

		
			2.enter the premises of the Debtor or premises under the Debtor’s control and take possession of the Collateral;
		

		
			 
		

		
			3.without charge, use or occupy the premises of the Debtor or premises under the Debtor’s control, including without limitation, warehouse and other storage facilities;
		

		
			 
		

		
			4.without charge, use any patent, trademark, tradename, or other intellectual property or technical process used by the Debtor in connection with any of the Collateral; and
		

		
			 
		

		
			5.rely conclusively upon the advice or instructions of any one or more brokers or other experts selected by the Secured Party to determine the method or manner of disposition of any of the Collateral and, in such event, any disposition of the Collateral by the Secured Party in accordance with such advice or instructions shall be deemed to be commercially reasonable.
		

		
			 
		

		
			B.Collection of Receivables.  The Secured Party may, but shall not be obligated to, take all actions reasonable or necessary to preserve, enforce or collect the Receivables, including without limitation, the right to notify account debtors and obligors on Receivables to make direct payment to the Secured Party, to permit any 

		 

		

			 

		

		

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extension, compromise, or settlement of any of the Receivables for less than face value, or to sue on any Receivable, all without prior notice to the Debtor.
		

		
			 
		

		
			C.Proceeds.  The Secured Party may collect and apply all proceeds of the Collateral, and may endorse the name of the Debtor in favor of the Secured Party on any and all checks, drafts, money orders, notes, acceptances, or other instruments of the same or a different nature, constituting, evidencing, or relating to the Collateral.  The Secured Party may receive and open all mail addressed to the Debtor and remove therefrom any cash or non-cash items of payment constituting proceeds of the Collateral.
		

		
			 
		

		
			D.Insurance Adjustments.  The Secured Party may adjust, settle, and cancel any and all insurance covering any Collateral, endorse the name of the Debtor on any and all checks or drafts drawn by any insurer, whether representing payment for a loss or a return of unearned premium, and execute any and all proofs of claim and other documents or instruments of every kind required by any insurer in connection with any payment by such insurer.
		

		
			 
		

		
			The net proceeds of any disposition of the Collateral may be applied by the Secured Party, after deducting its reasonable expenses incurred in such disposition, to the payment in whole or in part of the Obligations in such order as the Secured Party may elect.  The enumeration of the foregoing rights and remedies is not intended to be exhaustive, and the exercise of any right and/or remedy shall not preclude the exercise of any other rights or remedies, all of which are cumulative and non-exclusive.
		

		
			 
		

		
			SECTION 6.  OTHER PROVISIONS.
		

		
			 
		

		
			A.Amendment, Modification, and Waiver.  Without the prior written consent of the Secured Party, no amendment, modification, or waiver of, or consent to any departure by the Debtor from, any provision hereunder shall be effective.  Any such amendment, modification, waiver, or consent shall be effective only in the specific instance and for the specific purpose for which given.  No delay or failure by the Secured Party to exercise any remedy hereunder shall be deemed a waiver thereof or of any other remedy hereunder.  A waiver on any one occasion shall not be construed as a bar to or waiver of any remedy on any subsequent occasion.
		

		
			 
		

		
			B.Costs and Attorneys’ Fees.  Except as prohibited by law, if at any time the Secured Party employs counsel in connection with the creation, perfection, preservation, or release of the Secured Party’s security interest in the Collateral or the enforcement of any of the Secured Party’s rights or remedies hereunder, all of the Secured Party’s reasonable attorneys’ fees arising from such services and all expenses, costs, or charges relating thereto shall become part of the Obligations secured hereby and be paid by the Debtor on demand.
		

		
			 
		

		
			C.No Obligation to Make Loans.  Nothing contained herein or in any financing statement or other document executed or filed in connection herewith shall be construed to obligate the Secured Party to make any loans or advances to the Debtor, whether pursuant to a commitment or otherwise.
		

		
			 
		

		
			D.Revival of Obligations.  To the extent the Debtor or any third party makes a payment or payments to the Secured Party or the Secured Party enforces its security interest or exercises any right of setoff, and such payment or payments or the proceeds thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, and/or required to be repaid to a trustee, receiver, or any other party under any bankruptcy, insolvency or other law or in equity, then, to the extent of such recovery, the Obligations or any part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment or payments had not been made, or such enforcement or setoff had not occurred.
		

		
			 
		

		
			

		 

		

			 

		

		

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			E.Performance by the Secured Party.  In the event the Debtor shall at any time fail to pay or perform punctually any of its duties hereunder, the Secured Party may, at its option and without notice to or demand upon the Debtor, without obligation and without waiving or diminishing any of its other rights or remedies hereunder, fully perform or discharge any of such duties.  All costs and expenses incurred by the Secured Party in connection therewith, together with interest thereon at four percent per annum in excess of the rate(s) of interest that would otherwise be in effect on that loan, shall become part of the Obligations secured hereby and be paid by the Debtor upon demand.
		

		
			 
		

		
			F.Indemnification, Etc.  The Debtor hereby expressly indemnifies and holds the Secured Party harmless from any and all claims, causes of action, or other proceedings, and from any and all liability, loss, damage, and expense of every nature, arising by reason of the Secured Party’s enforcement of its rights and remedies hereunder, or by reason of the Debtor’s failure to comply with any environmental or other law or regulation.  As to any action taken by the Secured Party hereunder, the Secured Party shall not be liable for any error of judgment or mistake of fact or law, absent gross negligence or willful misconduct on its part.
		

		
			 
		

		
			G.Power of Attorney.  The Debtor hereby appoints the Secured Party or the Secured Party’s designee as its attorney-in-fact, which appointment is irrevocable, durable, and coupled with an interest, with full power of substitution, in the name of the Debtor or in the name of the Secured Party, to take any action which the Debtor is obligated to perform hereunder or which the Secured Party may deem necessary or advisable to accomplish the purposes of this Security Agreement.  In taking any action in accordance with this Section, the Secured Party shall not be deemed to be the agent of the Debtor.  The powers conferred upon the Secured Party in this Section are solely to protect its interest in the Collateral and shall not impose any duty upon the Secured Party to exercise any such powers.
		

		
			 
		

		
			H.Continuing Effect.  This Security Agreement, the Secured Party’s security interest in the Collateral, and all other documents or instruments contemplated hereby shall continue in full force and effect until all of the Obligations have been satisfied in full, the Secured Party has no commitment to make any further advances to the Debtor, and the Debtor has sent a valid written demand to the Secured Party for termination of this Security Agreement.
		

		
			 
		

		
			I.Binding Effect.  This Security Agreement shall be binding upon and inure to the benefit of the Debtor and the Secured Party and their respective successors and assigns.
		

		
			 
		

		
			J.Security Agreement as Financing Statement and Authorization to File.  A photographic copy or other reproduction of this Security Agreement may be used as a financing statement.  In addition, the Debtor authorizes the Secured Party to prepare and file financing statements describing the Collateral, amendments thereto, and continuation statements and file any financing statement, amendment thereto or continuation statement electronically.  In addition, the Debtor authorizes the Secured Party to file financing statements describing any agricultural liens or other statutory liens held by the Secured Party.
		

		
			 
		

		
			K.Governing Law.  Subject to any applicable federal law, this Security Agreement shall be construed in accordance with and governed by the laws of the State of Colorado, except to the extent that the UCC provides for the application of the law of another state.
		

		
			 
		

		
			L.Notices.  All notices, requests, demands, or other communications required or permitted hereunder shall be in writing and shall be deemed to have been given when sent by registered or certified mail, return receipt requested, addressed to the other party at the respective addresses given above, or to such other person or address as either party designates to the other in the manner herein prescribed.
		

		
			 
		

		
			

		 

		

			 

		

		

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			M.Severability.  The determination that any term or provision of this Security Agreement is unenforceable or invalid shall not affect the enforceability or validity of any other term or provision hereof.
		

		
			 
		

		
			N.Marshalling.  Secured Party shall not be required to marshal any present or future collateral security (including, without limitation, this Agreement and the Collateral) for, or other assurances of payment of, any or all of the Obligations or to resort to such collateral security or other assurances of payment in any particular order, and all of their respective rights and remedies under this Security Agreement and in respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights and remedies, however existing or arising.  To the extent not prohibited by applicable law, the Debtor hereby agrees that it will not invoke any law relating to marshalling of collateral which might cause delay or impede the enforcement of any of the rights and/or remedies of the Secured Party under this Security Agreement or under any other agreement, document or instrument creating or evidencing any of Obligations or under which any of the Obligations is outstanding or by which any of the Obligations is secured or payment thereof is otherwise assured, and, to the extend not prohibited by applicable law, the Debtor hereby irrevocably waives the benefits of such laws.
		

		
			 
		

		
			SECTION 7.  Eligible Contract Participant.  Notwithstanding anything in this agreement to the contrary, if, and to the extent the guarantee by Debtor of the HERON LAKE BIOENERGY, LLC obligations under Interest Rate Agreements is or becomes illegal under the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute (the “Commodity Exchange Act”), or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Debtor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act, amounts received from Debtor or its assets shall not be applied to such Interest Rate Agreement obligations, and such obligations shall not constitute Indebtedness for purposes of this agreement.  If an obligation arises under an Interest Rate Agreement governing more than one transaction, this exclusion shall apply only to the portion of such obligation that is attributable to transactions for which this guarantee and/or grant of security interest is or becomes illegal.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

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			IN WITNESS WHEREOF, the Debtor has executed this Amended and Restated Security Agreement by its duly authorized officer as of the day and year shown below.
		

		
			 
		

		
			Date:  March 29, 2018
		

		
			 
		

		
			 
		

		
			Debtor:  HLBE PIPELINE COMPANY, LLC,  a
		

		
			 Minnesota limited liability company
		

		
			 
		

		
			 
		

		
			By:/s/ Stacie Schuler
		

		
			 
		

		
			Name:Stacie Schuler
		

		
			 
		

		
			Title:CFO
		

		
			 
		

		
			3/22/18
		

		
			
		

		
			

		 

		

			 

		

		

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			SCHEDULE A
		

		
			 
		

		
			To Amended and Restated Security Agreement dated March 29, 2018
		

		
			 
		

		
			Executed by:  HLBE PIPELINE COMPANY, LLC
		

		
			 
		

		
			Set forth below are the present locations (by county and state) of the Debtor’s fixtures.
		

		
			 
		

		
			 
		

		
			 
		

		
			County: Jackson State:MN
		

		
			 
		

		
			County:  State:
		

		
			 
		

		
			County:  State:
		

		
			 
		

		
			County:  State:
		

		
			 
		

		
			County:  State:
		

		
			 
		

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

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			SCHEDULE B
		

		
			 
		

		
			To Amended and Restated Security Agreement dated March 29, 2018
		

		
			 
		

		
			Executed by:  HLBE PIPELINE COMPANY, LLC
		

		
			 
		

		
			Set forth below is an explanation of changes, if any, within the past ten (10) years to the Debtor’s name, identity or corporate structure through incorporation, merger, consolidation, joint venture or otherwise.  The omission of any changes below shall be construed as an affirmative representation by the Debtor that it has not within the past ten (10) years changed its name, identity or corporate structure through incorporation, merger, consolidation, joint venture or otherwise.
		

		
			 
		

		
			 
		

		 

		

			 

		

		

			Page 10hlb_Current_Folio_Ex_108

		
			COMMODITY ACCOUNT CONTROL AGREEMENT
		

		
			 
		

		
			This Commodity Account Control Agreement (this “Agreement”), dated as of _______________________, is entered into by and among HERON LAKE BIOENERGY, LLC, a Minnesota limited liability company (the “Debtor”), COBANK, ACB, a federally-chartered instrumentality of the United States (“CoBank”), in its capacity as administrative agent for and on behalf of itself and other lenders (the “Secured Party”), and ADM INVESTOR SERVICES, INC. (together with its successors and assigns, the “Commodity Intermediary”).
		

		
			 
		

		
			WHEREAS, the Debtor currently has certain accounts, and in the future may have additional or replacement accounts opened with the Commodity Intermediary (each and every account maintained by the Debtor with the Commodity Intermediary, whether now existing or hereafter created or established, together with any replacement accounts and/or subaccounts thereof, shall be collectively referred to as the “Accounts”), for trading in commodity futures contracts and options on commodity futures contracts as contemplated in, and pursuant to the terms and conditions of, the Debtor’s customer agreement (or agreements) with the Commodity Intermediary entered into from time to time (each, a “Customer Agreement”); and
		

		
			 
		

		
			WHEREAS, the Debtor has entered into certain loan and security documents with, or for the benefit of, the Secured Party, as borrower, guarantor or accommodation party, as the case may be, and pursuant thereto has, or may in the future have, certain financial obligations to the Secured Party (the “Loan Documents”);
		

		
			 
		

		
			NOW, THEREFORE, in consideration of the agreements set forth herein and in the Loan Documents and in order to induce the Secured Party (and any lender for whom the Secured Party acts as agent, if any) to make loans and extend other credit and financial accommodations to the Debtor or to an affiliate of the Debtor, and for other good and valuable consideration, the receipt and sufficiency of which are hereby expressly acknowledged, the parties hereto hereby agree as follows:
		

		
			 
		

		
			1.Definitions.  Terms used and not otherwise defined herein shall have the meanings given them in the Uniform Commercial Code as in effect from time to time in the state of Colorado (the “UCC”).
		

		
			 
		

		
			2.Secured Party Lien.  To secure payment and performance of all present and future indebtedness, obligations and liabilities of every nature of the Debtor arising out of or in connection with the Loan Documents and the other documents, agreements and instruments executed from time to time in connection therewith, the Debtor has granted to the Secured Party, for the benefit of the Secured Party, a continuing lien and security interest (the “Secured Party Lien”) in all right, title and interest of the Debtor in and to the Accounts, all assets therein and all proceeds thereof, including without limitation all commodity futures contracts and options on commodity future contracts, commodity options and other commodity contracts, interests and positions that the Commodity Intermediary transacts for the benefit of the Debtor (collectively, the “Commodity Contracts”), together with all security entitlements, securities, investment property, securities accounts, commodity accounts, financial assets, instruments, general intangibles and other assets credited to an Account, warehouse receipts resulting from delivery 

		 

		

			 

		

		

			00090497P a g e  1

		

		

			 

		

		

			Form agreed upon by CoBank and ADM Investor Services, Inc on October 26, 2001

		

 

under a Commodity Contract and any cash, U.S. Treasuries and other monies and funds that may accumulate in or become withdrawable from or payable out of, an Account, including any balance that may remain to the credit of an Account upon the closing thereof, and all rights with respect to any claim or cause of action affecting or relating to any of the foregoing and all proceeds thereof (collectively, whether now existing or hereafter arising, the “Account Collateral”).  To the extent not inconsistent with the U.S. Commodity Exchange Act, all property (other than Commodity Contracts) credited to or otherwise held in any Account is intended to be a “financial asset” for purposes of the UCC.
		

		
			 
		

		
			3.Limitation and Subordination of Commodity Intermediary Lien.  The Commodity Intermediary hereby acknowledges and agrees that any lien, pledge, security interest, mortgage, deed of trust or other charge or encumbrance of any kind whatsoever granted by the Debtor to the Commodity Intermediary (herein, a “Commodity Intermediary Lien”) or right of setoff that the Commodity Intermediary may have in, on or against assets or property of the Debtor, whether now existing or hereafter arising, (a) shall in no event extend to or cover any assets or property of the Debtor other than Account Collateral, and (b) shall be subject and subordinate to the Secured Party Lien in and to all Account Collateral and all other assets and property of the Debtor; provided,  however, that any such right of setoff or Commodity Intermediary Lien shall not be subject to and shall be superior to the Secured Party Lien to the extent such Commodity Intermediary Lien secures or provides for payment of fees, commissions, margin, payment and settlement obligations, deficits or losses or any other amounts owed by Debtor to the Commodity Intermediary and incurred in connection with an Account that are due and owing from the Debtor to the Commodity Intermediary pursuant to a Customer Agreement (herein, the “Customer Obligations”).  In no event shall Commodity Intermediary loan or advance any funds or extend other credit accommodations to the Debtor with respect to an Account of Debtor (each, a “Commodity Intermediary Loan”), and Commodity Intermediary hereby agrees that in the event Commodity Intermediary does make a Commodity Intermediary Loan, any such amounts loaned, advanced or extended to Debtor shall be subject and subordinate to the Secured Party Lien in and to all Account Collateral and all other assets and property of the Debtor.
		

		
			 
		

		
			4.Access to Accounts and other Account Collateral.  Until the Commodity Intermediary receives a Notice of Sole Control from the Secured Party substantially in the form of Exhibit A hereto (a “Notice of Sole Control”) (subject to Section 8(c) below), subject to the terms of this Agreement, the Debtor shall be entitled to take any action permissible under the Customer Agreements between the Commodity Intermediary and the Debtor.  Upon the Commodity Intermediary’s receipt of a Notice of Sole Control from the Secured Party, (a) the Commodity Intermediary will honor all instructions from the Secured Party in respect of the Account Collateral and will apply any value distributed or available on account of the Account Collateral as directed by the Secured Party (net of any Customer Obligations then due and owing to the Commodity Intermediary with respect to the Accounts), without further consent by the Debtor, and (b) the Secured Party and no other person (including the Debtor or any affiliate thereof), shall be entitled to direct the Commodity Intermediary with respect to any and all transactions relating to any Account Collateral, including without limitation the establishment, maintenance or liquidation of Commodity Contracts and the payment of funds in any or all of the Accounts.  If, upon delivery of a Notice of Sole Control by the Secured Party, the Secured Party 

		 

		

			 

		

		

			00090497P a g e  2

		

		

			 

		

		

			Form agreed upon by CoBank and ADM Investor Services, Inc on October 26, 2001

		

 

directs the Commodity Intermediary to liquidate all Commodity Contracts and other commodity positions in the Accounts and to pay and deliver to the Secured Party all funds and other monies in the Accounts and the other Account Collateral (net of any Customer Obligations then due and owing to the Commodity Intermediary with respect to such Accounts), the Secured Party shall have no liability or responsibility whatsoever to the Commodity Intermediary as a result of any past activity in the Accounts.  Notwithstanding anything to the contrary within this Agreement, the Commodity Intermediary shall have the right to exercise its commercially reasonable discretion in complying with any order to liquidate an Account upon receipt by the Commodity Intermediary of a Notice of Sole Control.  Any liquidation, sale, purchase and/or cancellation may be made at the Commodity Intermediary’s discretion on any exchange or other market or through any clearing organization where such business is transacted, at public auction or private sale, without prior tender, demand or call upon the Debtor or the Secured Party, and without liability to Debtor or the Secured Party, provided that any such private sale must be conducted in a commercially reasonable manner, under market conditions existing at the time of such sale.  If the Secured Party directs the Commodity Intermediary to liquidate the Accounts, upon completion of such liquidation and the payment of any remaining funds or other monies in the Accounts to the Secured Party, the Accounts will be closed and no additional funding or trading activity will occur in them.
		

		
			 
		

		
			If, however, upon delivery of a Notice of Sole Control by the Secured Party, the Secured Party directs the Commodity Intermediary to establish or maintain Commodity Contracts in, or to take other action with respect to, the Accounts (other than the liquidation of Commodity Contracts therein and payment and delivery of funds and other monies therein to the Secured Party), the Secured Party shall assume full and complete responsibility for the activity in the Accounts occurring subsequent to the delivery of a Notice of Sole Control by the Secured Party, same as if the Secured Party were the Debtor and the Secured Party shall thereafter be bound by and comply with all terms and conditions of the Customer Agreements for the Accounts, including the margin or collateral obligations of the Debtor with respect to the Accounts, and Secured Party shall thereafter be fully liable to the Commodity Intermediary for any losses incurred in the Accounts following delivery of a Notice of Sole Control by the Secured Party, including any resultant debit balances that may occur in the Accounts, and Secured Party shall remit payment to Commodity Intermediary for all obligations to Commodity Intermediary with respect to the Accounts that Debtor fails to pay which arose subsequent to the delivery of a Notice of Sole Control by Secured Party; provided however, that the Debtor shall be liable to the Secured Party for any amounts so advanced and all such amounts shall constitute indebtedness due and owing from the Debtor to the Lender Parties pursuant to the Loan Documents and shall bear interest at the highest rate provided therein for obligations in default.  Neither the Commodity Intermediary’s receipt of any Notice of Sole Control nor the Commodity Intermediary’s acceptance of direction from the Secured Party will in any way affect the liability of the Debtor for Customer Obligations or any other obligations of the Debtor to the Commodity Intermediary.
		

		
			 
		

		
			5.Authorization by Debtor.  The Debtor hereby irrevocably authorizes and directs the Commodity Intermediary to comply with each Notice of Sole Control with respect to any or all of the Account Collateral and any and all instructions and notifications, whether written or oral, communicated to the Commodity Intermediary by the Secured Party, in each case without any further notice to, or consent by, the Debtor or any other person.  The Debtor hereby 

		 

		

			 

		

		

			00090497P a g e  3

		

		

			 

		

		

			Form agreed upon by CoBank and ADM Investor Services, Inc on October 26, 2001

		

 

irrevocably agrees that the Debtor will not, and will not attempt to, execute, instruct or direct any payment, withdrawal, transfer, liquidation, redemption, entitlement order or other action with respect to any Account Collateral after the Secured Party has given a Notice of Sole Control to the Commodity Intermediary.  The Commodity Intermediary shall have no duty to inquire or determine whether the Secured Party is entitled, under the Loan Documents or otherwise, to send a Notice of Sole Control, and may conclusively presume (without any inquiry) that the person delivering the same is authorized to do so.  Without limiting the foregoing, the Debtor agrees that the Commodity Intermediary shall be entitled to comply with the instructions and demands of the Secured Party following receipt of a Notice of Sole Control, including any such instructions that are contrary to instructions or demands given by the Debtor to the Commodity Intermediary.
		

		
			 
		

		
			6.Limitation on Futures Contracts and Other Assets in Accounts.  The Debtor hereby acknowledges, covenants and agrees that notwithstanding anything in a Customer Agreement to the contrary, without the Secured Party’s prior written consent, (a) the Debtor shall not place for the Debtor’s Account any trades or other transactions in respect of Commodity Contracts other than exchange traded commodity futures contracts and exchange traded options on commodity futures contracts (each, a “Permitted Commodity Contract”), and (b) the Debtor shall neither request, cause or permit to be credited to any Account any asset other than a Permitted Commodity Contract, warehouse receipts resulting from delivery under a Permitted Commodity Contract, cash and U.S. Treasury bills.
		

		
			 
		

		
			7.Indemnity and Expense Reimbursement.
		

		
			 
		

		
			(a)The Debtor agrees that the Commodity Intermediary and the Secured Party shall have no liability to the Debtor for any loss or damage that the Debtor may claim to have suffered or incurred, either directly or indirectly, by reason of this Agreement or any actions taken or not taken by the Commodity Intermediary or the Secured Party pursuant to the terms of this Agreement, unless the same is determined by a final non-appealable judgment of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of the Commodity Intermediary or the Secured Party, respectively.
		

		
			 
		

		
			(b)The Debtor agrees to indemnify the Secured Party and the Commodity Intermediary from and against any and all claims, losses and liabilities arising out of or resulting from this Agreement (including, without limitation, enforcement of this Agreement), except claims, losses or liabilities determined by a final non-appealable judgment of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of the Secured Party or the Commodity Intermediary, as the case may be.
		

		
			 
		

		
			(c)The Debtor will upon demand pay to the Secured Party and the Commodity Intermediary, as the case may be, the amount of any and all reasonable fees and expenses, including the reasonable fees and disbursements of legal counsel and of any experts and agents, which the Secured Party or the Commodity Intermediary, as the case may be, may incur in connection with (i) the administration of this Agreement, (ii) the exercise or enforcement of any of the rights of the Secured Party or the Commodity Intermediary hereunder or (iii) the failure by the Debtor to perform or observe any of the provisions hereof.
		

		
			 
		

		
			

		 

		

			 

		

		

			00090497P a g e  4

		

		

			 

		

		

			Form agreed upon by CoBank and ADM Investor Services, Inc on October 26, 2001

		

 

		

		
			8.Secured Party Actions.
		

		
			 
		

		
			(a)The Debtor hereby irrevocably appoints the Secured Party as the Debtor’s attorney-in-fact, with full authority in the place and stead of the Debtor and in the name of the Debtor or otherwise, from time to time in the Secured Party’s discretion after the delivery to the Commodity Intermediary of a Notice of Sole Control, to execute any instrument which the Secured Party may deem necessary to accomplish the purposes of this Agreement, including, without limitation, to (i) ask, demand, collect, sue for, recover, compromise, receive and give acquittance and receipt for moneys due and to become due under or in respect of any of the Account Collateral, (ii) receive, endorse, and collect any drafts or other instruments, documents and chattel paper, (iii) file any claims or take any action or institute any proceedings which the Secured Party may deem necessary or desirable to enforce the rights of the Secured Party with respect to any of the Account Collateral, and (iv) perform the affirmative obligations of the Debtor hereunder.  The Debtor hereby acknowledges, consents and agrees that the power of attorney granted pursuant to this Section is irrevocable and coupled with an interest.
		

		
			 
		

		
			(b)The powers conferred to the Secured Party hereunder are solely to protect its interest in the Account Collateral and shall not impose any duty on it to exercise any such powers.  Except for reasonable care of any Account Collateral in its possession and the accounting for moneys actually received by it hereunder, the Secured Party shall have no duty as to any Account Collateral or as to the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining to any Account Collateral.
		

		
			 
		

		
			(c)Secured Party agrees that it will not deliver a Notice of Sole Control to Commodity Intermediary unless an Event of Default (as defined in the Loan Documents) has occurred and is continuing.
		

		
			 
		

		
			9.Effect of Payment.  Any sums paid by the Commodity Intermediary to the Secured Party from the Account Collateral under this Agreement shall satisfy any and all obligations of the Commodity Intermediary to the Debtor under the applicable Customer Agreement with respect thereto as fully and as completely as if such sums had been paid to the Debtor in person and receipted for by the Debtor.
		

		
			 
		

		
			10.Statements; Customer Agreements.  The Secured Party is hereby authorized and entitled to receive from the Commodity Intermediary, and the Commodity Intermediary is authorized to deliver and agrees to deliver to the Secured Party, upon the Secured Party’s request, copies of confirmations with respect to all Commodity Contracts executed for the account of the Debtor and copies of monthly position and ledger accounts of the Debtor pertaining to the Accounts.  In the event of a conflict between this Agreement and any Customer Agreement, the terms of this Agreement will prevail.
		

		
			 
		

		
			11.Termination.  This Agreement shall remain in full force and effect until canceled in writing by the Secured Party; provided that any cancellation of this Agreement shall be without effect as to the Commodity Intermediary until the Commodity Intermediary is notified in writing of such cancellation by the Secured Party.
		

		
			 
		

		
			

		 

		

			 

		

		

			00090497P a g e  5

		

		

			 

		

		

			Form agreed upon by CoBank and ADM Investor Services, Inc on October 26, 2001

		

 

		

		
			12.Representations, Warranties and Agreements of Debtor.  The Debtor hereby represents, warrants and agrees that (a) the Debtor has all requisite power and authority to execute and deliver this Agreement and to perform its obligations hereunder, and that such execution, delivery and performance shall not constitute or cause a breach of or default under its organizational documents or any material contract to which it is bound, (b) this Agreement is legally valid and binding on the Debtor, enforceable against it in accordance with its terms, except as limited by bankruptcy or other comparable laws affecting creditors’ rights generally, and except as limited by the availability of equitable remedies, (c) no portion of the Account Collateral is subject to any claim, security interest or other lien and has not heretofore been alienated or assigned, other than to or in favor of the Secured Party or the Commodity Intermediary, and (d) the Debtor has not entered into, and until the termination of this Agreement will not enter into, any arrangements granting or purporting to grant control over, or granting or purporting to grant any other rights or interests to any person in or to any Account Collateral except the Commodity Intermediary and the Secured Party.
		

		
			 
		

		
			13.Representations, Warranties and Agreements of Commodity Intermediary.  The Commodity Intermediary hereby represents, warrants and agrees that (a) all profits, proceeds, cash and other property derived or in any way attained by the Commodity Intermediary for or on behalf of the Debtor will be promptly credited to the applicable Account, (b) regardless of any provision in any other agreement, for purposes of the UCC, Illinois shall be the Commodity Intermediary’s jurisdiction (as defined in Section 8-110 of the UCC) and the Accounts, as well as all the other Account Collateral, shall be governed by the laws of the State of Illinois, (c) the Commodity Intermediary has all requisite power and authority to execute and deliver this Agreement and to perform its obligations hereunder, and that such execution, delivery and performance shall not constitute or cause a breach of or default under its organizational documents or any material contract to which it is bound, (d) this Agreement is legally valid and binding on the Commodity Intermediary, enforceable against it in accordance with its terms, except as limited by bankruptcy or other comparable laws affecting creditors’ rights generally, and except as limited by the availability of equitable remedies, (e) the Commodity Intermediary has no knowledge of any claim to, security interest in or other lien upon any of the Account Collateral, except the Secured Party Lien and the Commodity Intermediary Lien, and (f) the Commodity Intermediary has not entered into, and until the termination of this Agreement will not enter into, any arrangements granting or purporting to grant control over, or granting or purporting to grant any other rights or interests to any person except the Debtor or the Secured Party in or to any Account Collateral without the specific consent of the Debtor and Secured Party, and the Commodity Intermediary will notify the Secured Party if any other person asserts any right or interest in or claim against the Account Collateral.
		

		
			 
		

		
			14.Governing Law; Waiver of Jury Trial.  This Agreement shall be governed by, and construed in accordance with, the law of the State of Illinois (other than its conflicts of laws rules).  The parties hereby irrevocably agree that any dispute arising under or in any way relating to this Agreement shall be litigated solely and exclusively in a state or federal court sitting in Chicago, Illinois and in no other.  EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR 

		 

		

			 

		

		

			00090497P a g e  6

		

		

			 

		

		

			Form agreed upon by CoBank and ADM Investor Services, Inc on October 26, 2001

		

 

COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY INSTRUMENT OR DOCUMENT DELIVERED HEREUNDER.
		

		
			 
		

		
			15.Notices.  All notices, requests, demands and other communications provided for hereunder shall be in writing (including facsimile transmission or email) and shall be sent to the applicable party at its address, email address or facsimile number set forth below, or as to each party, at such other address, email address or facsimile number as shall be designated by such party in a written notice to the other party complying as to delivery with the terms of this Section.  All such notices, requests, demands and other communications shall be effective (a) when received, if sent by facsimile, email, hand delivery or overnight courier, or (b) three business days after the date when sent by registered or certified mail, postage prepaid.
		

		
			 
		

		
			Debtor:Heron Lake BioEnergy, LLC
		

		
			91246 390th Avenue
		

		
			Heron Lake, MN 56137-0077
		

		
			Attention:CFO
		

		
			Facsimile:(507) 793-0078
		

		
			Email:
		

		
			 
		

		
			Secured Party:CoBank, ACB
		

		
			6340 South Fiddlers Green Circle
		

		
			Greenwood Village, CO 80111
		

		
			Attention:Collateral
		

		
			Facsimile:(303) 740-4002
		

		
			 
		

		
			 
		

		
			Commodity Intermediary:ADM Investor Services, Inc.
		

		
			141 West Jackson Boulevard, Suite 1600-A
		

		
			Chicago, IL 60604
		

		
			Attention:  Greg Hostetler
		

		
			Facsimile:
		

		
			Email:
		

		
			 
		

		
			16.Miscellaneous.  This Agreement shall be binding upon, and inure to the benefit of, the parties and their respective successors and assigns.  This Agreement comprises the final and complete integration of all prior expressions by the parties hereto with respect to the subject matter hereof and shall constitute the entire agreement among the parties hereto with respect to such subject matter, superseding all prior oral or written understandings.  Any provision of this Agreement which is prohibited or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof.  Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.  This Agreement may be executed in any number of counterparts, including by facsimile, email or other electronic transmission, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts of this Agreement, taken together, shall constitute but one and the same instrument.  

		 

		

			 

		

		

			00090497P a g e  7

		

		

			 

		

		

			Form agreed upon by CoBank and ADM Investor Services, Inc on October 26, 2001

		

 

Unless the context of this Agreement otherwise clearly requires, references to the plural include the singular, and vice versa.
		

		
			 
		

		
			 
		

		
			Signature Page Follows
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

			00090497P a g e  8

		

		

			 

		

		

			Form agreed upon by CoBank and ADM Investor Services, Inc on October 26, 2001

		

 

		

		
			IN WITNESS WHEREOF, the Commodity Intermediary, the Debtor and the Secured Party have executed this Agreement by their respective officers who are duly authorized as of the date set forth above.
		

		
			 
		

		
			 
		

		
			ADM INVESTOR SERVICES, INC.,
		

		
			as Commodity Intermediary
		

		
			 
		

		
			 
		

		
			By:     /s/ Greg Hostetler
		

		
			Name:  Greg Hostetler
		

		
			Title:  CCO
		

		
			 
		

		
			COBANK, ACB,
		

		
			as Secured Party
		

		
			 
		

		
			 
		

		
			By:     /s/ Tom B. Houser
		

		
			Name:  Tom B. Houser
		

		
			Title:  Vice President
		

		
			 
		

		
			HERON LAKE BIOENERGY, LLC,
		

		
			as Debtor
		

		
			 
		

		
			 
		

		
			By:     /s/ Stacie Schuler
		

		
			Name:  Stacie Schuler
		

		
			Title:  CFO
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			Signature Page to Commodity Account Control Agreement
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			00090497P a g e  9

		

		

			 

		

		

			Form agreed upon by CoBank and ADM Investor Services, Inc on October 26, 2001

		

 

		

		
			Exhibit A
		

		
			 
		

		
			 
		

		
			FORM OF NOTICE OF SOLE CONTROL
		

		
			 
		

		
			[Secured Party’s Letterhead]
		

		
			 
		

		
			[Date]
		

		
			 
		

		
			VIA []:
		

		
			ADM Investor Services, Inc.
		

		
			141 West Jackson Boulevard, Suite 1600-A
		

		
			Chicago, IL 60604
		

		
			 
		

		
			Re:Notice of Sole Control
		

		
			 
		

		
			Pursuant to the Commodity Account Control Agreement dated as of ____________, 20__ (as amended, restated, supplemented or otherwise modified from time to time, the “Agreement”) among HERON LAKE BIOENERGY, LLC (the “Debtor”), COBANK, ACB, a federally-chartered instrumentality of the United States (“CoBank”), in its capacity as administrative agent for and on behalf of itself and other lenders (the “Secured Party”), and ADM INVESTOR SERVICES, INC. (the “Commodity Intermediary”), the Secured Party gives notice of its sole control over all account(s) of the Debtor with the Commodity Intermediary (the “Accounts”).  Pursuant to Sections 4 and 5 of the Agreement, the undersigned shall have the sole and exclusive authority to direct the Commodity Intermediary with respect to any and all transactions in or with respect to the Accounts, and the Debtor shall have no right to issue instructions or entitlement orders or give any direction whatsoever with respect thereto.
		

		
			 
		

		
			Capitalized terms used and not otherwise defined herein shall have the meanings given them in the Agreement.
		

		
			 
		

		
			Please check one:
		

		
			 
		

			
	
			
				 q
			The Secured Party hereby directs the Commodity Intermediary to liquidate all Commodity Contracts and other positions in the Accounts, and to pay and deliver all proceeds thereof and all other funds and other monies in such Accounts and the other Account Collateral to the Secured Party, net of any Customer Obligations then due and owing to the Commodity Intermediary, at the following wire instructions: ______________________________________.

		
			 
		

			
	
			
				 q
			The Secured Party hereby directs the Commodity Intermediary to take the following actions with respect to the following Accounts and Account Collateral: ____________ _____________________________________________________________________________.

		
			 
		

		
			 
		

		
			Signature Page Follows
		

		
			
		

		
			

		 

		

			 

		

		

			A- 1

		

 

		

		
			Regards,
		

		
			 
		

		
			CoBANK, ACB, as Secured Party
		

		
			 
		

		
			By: 
		

		
			Name: 
		

		
			Title: 
		

		
			 
		

		
			cc:Heron Lake BioEnergy, LLC
		

		
			 
		

		
			 
		

		 

		

			 

		

		

			A- 2

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