Document:

Exhibit
10.6

 

FIRST
AMENDMENT TO CONSTRUCTION LOAN AGREEMENT

 

This first Amendment to Construction Loan Agreement is dated as of the
29th day of April 2003, and is by and between LSCP, L.P., an Iowa limited
partnership (“BORROWER”) and FIRST NATIONAL BANK OF OMAHA (“BANK”), a national
banking association established at Omaha, Nebraska.

 

WHEREAS, the BANK and BORROWER executed a written Construction Loan
Agreement dated as of July 25, 2002, which, together will all amendments
thereto, is collectively called the “AGREEMENT”.

 

Now, Therefore, in consideration of the AGREEMENT, and their mutual
promises made herein, BANK and BORROWER agree as follows:

 

1.                                       Terms which are
typed herein as all capitalized words and are not defined herein shall have
same meanings as when described in the AGREEMENT.

 

2.                                       As of the date
hereof, construction of the PROJECT has almost been accomplished, with the
exception of emissions testing and certification of same by ICM, Inc in form
reasonably acceptable to BANK, final retainage, balance of Fagen contract,
other budgeted items and change orders, in the form attached hereto as Exhibit
1 and are by this reference made a part hereof (jointly and severally, the
“REMAINING ITEMS”).

 

3.                                       BORROWER agrees
to diligently work to complete the REMAINING ITEMS, and requests BANK to
advance the sum of $1,449,960.28 of the CONSTRUCTION LOAN and to advance the
sum of $1,500,000.00 of the REVOLVING LOAN to fund such work.  BANK agrees to advance such amount, and to
deposit the same in an account at BANK for the benefit of BORROWER.  BANK will disburse funds from such account
to pay for the REMAINING ITEMS as described in the AGREEMENT.  On completion of the REMAINING ITEMS, the
remaining funds in such account shall be paid to BORROWER.  If the described amount is insufficient, for
any reason, to complete the REMAINING ITEMS, BORROWER shall pay such additional
costs as are necessary to complete the REMAINING ITEMS no later than
June 1, 2003.

 

4.                                       BORROWER
certifies by its execution hereof that the representations and warranties set
forth in Section 5 of the AGREEMENT are true as of this date, and that no
EVENT OF DEFAULT under the AGREEMENT, and no event which, with the giving of
notice or passage of time or both, would become such an EVENT OF DEFAULT, has occurred
as of this date.

 

5.                                       Except as
amended hereby the parties ratify and confirm as binding upon them all of the
terms of the AGREEMENT.

 

(signatures on next page)

 

 

In witness whereof the parties set their hands as of the date first
written above.

 

	
  First National Bank of Omaha

  	
   

  	
  LSCP, L.P. an Iowa Limited Partnership

  
	
   

  	
   

  	
  by Little Sioux Corn Processors, L.L.C.,

  
	
   

  	
   

  	
  Its General Partner

  

 

 

	
  By:

  	
   /s/ Brain D. Thome

  	
   

  	
  By:

  	
   /s/ Daryl J. Haack 

  	
   

  
	
   

  	
  Brain D. Thome

  	
   

  	
  Daryl J. Haack, President of Little

  
	
   

  	
  Second Vice President

  	
   

  	
  Sioux Corn Processors, L.L.C.

  

 

 

EXHIBIT 1

 

REMAINING ITEMS

(Final Retainage, Balance of
Fagen Contract, Change Orders)

 

Items listed below are budgeted on construction variance report:

 

	
  Fagen Construction Contract

  	
   

  	
  $

  	
  2,805,256.20

  	
   

  
	
  Working
  Capital – Organizational Costs

  	
   

  	
  $

  	
  28,843.13

  	
   

  
	
  Working
  Capital – Start up Costs

  	
   

  	
  $

  	
  19,296.66

  	
   

  
	
  Financing
  Costs – BBI Inspections

  	
   

  	
  $

  	
  9,472.96

  	
   

  
	
  Inventory –
  Spare Parts

  	
   

  	
  $

  	
  80,083.16

  	
   

  
	
  Land, Site
  Development, Office Building

  	
   

  	
   

  	
   

  
	
  Site
  Preparation

  	
   

  	
  $

  	
  100,000.00

  	
   

  
	
  Process
  Water System

  	
   

  	
  $

  	
  118,577.93

  	
   

  
	
  Grain acct
  software, phone, office eqt

  	
   

  	
  $

  	
  62,035.91

  	
   

  
	
  Fire Control
  Sprinklers

  	
   

  	
  $

  	
  1,292.00

  	
   

  
	
  Maintenance
  Tools

  	
   

  	
  $

  	
  34,248.83

  	
   

  
	
  Working
  Capital – Start up Inventory (Chemicals)

  	
   

  	
  $

  	
  91,536.00

  	
   

  
	
  Safety
  Equipment

  	
   

  	
  $

  	
  8,235.47

  	
   

  
	
  Construction
  Contingency/Working Capital

  	
   

  	
  $

  	
  77,468.93

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  $

  	
  3,436,347.18

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Sources of
  Funds Remaining:

  	
   

  	
   

  	
   

  
	
  Line of
  Credit Funds Budgeted for Construction

  	
   

  	
  $

  	
  1,500,000.00

  	
   

  
	
  Remaining
  Balance of Construction Loan

  	
   

  	
  $

  	
  1,449,960.28

  	
   

  
	
  New Jobs
  Training njtp-nicc

  	
   

  	
  $

  	
  86,386.90

  	
   

  
	
  Sales Tax
  Rebate njtp-nicc

  	
   

  	
  $

  	
  400,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  $

  	
  3,436,347.18Exhibit 10.7

 

Second Amendment to Construction Loan
Agreement

 

This
Second Amendment to Construction Loan Agreement is dated as of the 1st day of
June 2003, and is by and between LSCP, L.P., an Iowa limited partnership
(“BORROWER”) and FIRST NATIONAL BANK OF OMAHA (“BANK’), a national banking
association established at Omaha, Nebraska.

 

WHEREAS,
the BANK and BORROWER executed a written Construction Loan Agreement dated as
of July 25, 2002, which, together will all amendments thereto, is
collectively called the “AGREEMENT”.

 

Now,
Therefore, in consideration of the AGREEMENT, and their mutual promises made
herein, BANK and BORROWER agree as follows:

 

1.                                       Terms which are typed herein as all
capitalized words and are not defined herein shall have same meanings as when
described in the AGREEMENT.

 

2.                                       By execution hereof, the parties agree that
the initial principal amount of the TERM LOAN shall be $31,465,000.00, the
proceeds of which will retire the CONSTRUCTION LOAN.  The TERM NOTE will be in the form attached hereto as Exhibit A,
by this reference made a part hereof.

 

3.                                       Section 1.19 of the AGREEMENT is hereby
amended to read as follows, effective immediately:

 

1.19         “LOAN TERMINATION DATE” means the
earliest to occur of the following: (i) as to the REVOLVING NOTE, July 24,
2003 and as to  the TERM NOTE,
June 1, 2008, (ii) the date the OBLIGATIONS are accelerated pursuant to
this AGREEMENT, and (iii) the date BANK receives (a) notice in writing from
BORROWER of BORROWER’s election to terminate this AGREEMENT and (b)
indefeasible payment in full of the OBLIGATIONS.

 

4.                                       BORROWER certifies by its execution hereof
that the representations and warranties set forth in Section 5 of the
AGREEMENT are true as of this date, and that no EVENT OF DEFAULT under the
AGREEMENT, and no event which, with the giving of notice or passage of time or
both, would become such an EVENT OF DEFAULT, has occurred as of this date.

 

5.                                       Except as amended hereby the parties ratify
and confirm as binding upon them all of the terms of the AGREEMENT.

 

(signatures on next page)

 

 

Any
remaining principal balance, plus any accrued but unpaid interest, shall be
fully due and payable on Maturity Date.

 

PREPAYMENT.  The BORROWER may prepay this promissory note
in full or in part at any time. 
Provided, however, a condition of any prepayment is that a fee shall be
paid to BANK sufficient to make BANK whole for any expenses related to breaking
fixed interest rates.  Each  prepayment may be applied in inverse order
of maturity or as the BANK in its sole discretion may deem appropriate.  Such prepayment shall not excuse the
BORROWER from making subsequent payments each quarter until the indebtedness is
paid in full.

 

ADDITIONAL TERMS AND CONDITIONS.  The LOAN AGREEMENT, and any amendments or
substitutions, contains additional terms and conditions, including default and
acceleration provisions, which are incorporated into this promissory note by
reference.  The BORROWER agrees to pay
all costs of collection, including reasonable attorneys fees and legal expenses
incurred by the BANK if this promissory note is not paid as provided
above.  This promissory note shall be
governed by the substantive laws of the State of Nebraska.

 

WAIVER OF PRESENTMENT AND NOTICE OF DISHONOR.  BORROWER and any other person who signs, guarantees
or endorses this promissory note, to the extent allowed by law, hereby waives
presentment, demand for payment, notice of dishonor, protest, and any notice
relating to the acceleration of the maturity of this promissory note.

 

 

	
   

  	
  LSCP,
  L.P. an Iowa Limited Partnership

  
	
   

  	
  by
  Little Sioux Corn Processors, L.L.C., Its 

  
	
   

  	
  General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Daryl J. Haack

  	
   

  
	
   

  	
   

  	
  Daryl
  J. Haack, President of Little 

  
	
   

  	
   

  	
  Sioux
  Corn Processors, L.L.C.

  

 

	
  STATE
  OF IOWA

  	
  )

  
	
   

  	
  )
  ss.

  
	
  COUNTY
  OF Cherokee

  	
  )

  

 

On
this 28 day of May, 2003, before me, the undersigned, a Notary Public,
personally appeared Darryl J. Haack, President of Little Sioux Corn Processors,
LLC, General Partner of LSCP, L.P., on behalf of said entity, who executed the
foregoing instrument, and acknowledged that he executed the same as his
voluntary act and deed.

 

	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   /s/ Becky J. Nothem

  	
   

  
	
  [SEAL]

  	
   

  	
   

  	
  Notary Public

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