Document:

10.22 - First Amendment to Credit Agmt

Farm Credit Services of America

FIRST AMENDMENT TO CREDIT AGREEMENT

This First Amendment to Credit Agreement ("Amendment") is made and entered into effective the 20th day of November, 2013, by and between Farm Credit Services of America, PCA and Farm Credit Services of America, FLCA (collectively "Lender") and Dakota Ethanol, L.L.C., a South Dakota limited liability company ("Borrower) to amend and modify the Credit Agreement dated May 15, 2013 (hereinafter referred to as the "Credit Agreement"). The Credit Agreement and underlying Loan Documents are modified only to the extent necessary to give effect to the terms of this Amendment, and the remaining terms of said Loan Documents, not otherwise inconsistent herewith, are ratified by the parties. Capitalized terms used but not otherwise defined herein have the respective meanings given to them in the Credit Agreement.

In consideration of the mutual agreements, provisions and covenants herein contained, and furthermore to induce Lender to consider financial accommodations for the Borrower under the terms and provisions of the Credit Agreement, the parties hereby agree as follows:

1.    The following section is hereby added to the Credit Agreement, to read:

Section 2.1.3 Loan Facility C. Lender agrees to advance sums to Borrower up to the aggregate amount of $10,000,000.00 (Maximum Principal Balance) until December 31, 2013 (Final Advancement Date). Repayments of principal will not be available for subsequent Advances. The commitment under said Loan will be used by Borrower to make a one-time distribution to Lake Area Corn Processors, LLC. Borrower agrees not to request or use such proceeds for any other purpose.

(a)    Interest. Borrower hereby promises to pay interest on the principal indebtedness outstanding from time to time on each Advance from and including the date of such Advance and otherwise in accordance with statements issued by Lender. Interest shall be payable on the following dates, provided that interest accruing at the Default Rate, if applicable, shall be payable on demand.

Interest shall accrue from the date of each Advance at a variable rate per annum equivalent to the one-month Libor Rate, plus 3.35% until December 1, 2018, when interest shall accrue at a variable rate per annum announced from time to time by the Lender in Omaha, Nebraska ('Farm Credit Managed Variable Rate'), plus 3.35%, which Farm Credit Managed Variable Rate is not tied to any external interest rate.

The Libor Rate shall be adjusted higher or lower on December 15, 2013, and on the 15th of every month thereafter to reflect any change in the Libor Rate and the Farm Credit Managed Variable Rate shall be adjusted higher or lower with any change in this managed rate. Any higher or lower rate will thereafter apply to the outstanding principal indebtedness and remain in effect until the different rate of interest becomes effective. The amount of any subsequent payments will be increased or decreased accordingly to reflect the different rate of interest without in any manner changing the due date of the payments. There is no limitation on the amount of the change in the interest rate.

The Libor Rate is the London InterBank Offered Rate for deposits in the London market based on the Libor rate published on the last Business Day of the month as published in the Wall Street Journal, rounded to the nearest 0.05%.

The Farm Credit Managed Cost of Funds Rate is a variable rate per annum designed to reflect Lender's cost of funds, announced monthly by Lender in Omaha, Nebraska, and is not tied to any external interest rate.

(b)    Principal. Borrower hereby promises to pay 31 principal installments of $312,500.00 plus accrued interest commencing on March 1, 2014 and continuing on the 1st day of each quarter thereafter, up to and including September 1, 2021; and one final payment due on December 31, 2021 ('Maturity Date'), when the entire unpaid 

principal, plus all accrued interest and any unpaid fees, costs or expense shall be due and payable in full. The amount of the first payment may be larger or smaller depending on the actual number of days between loan closing and the first payment due date. The actual payment amount of all other payments may vary according to the interest rate then in effect and the outstanding principal balance.

2.    The following sections are hereby revised and amended, to read:

Section 7.11 Capital Spending. Borrower will not make Capital Expenditures during any fiscal year from any source of funds available, which exceed $3,000,000.00 in the aggregate, except for 2014 fiscal year, when Borrower may make Capital Expenditures which do not exceed $9,000,000.00 in the aggregate. Capital Expenditures shall include capital leases.

Section 6.10 Financial Covenants. Borrower agrees to maintain sufficient capital resources, as determined by Lender's valuation of Borrower's assets in accordance with GAAP and full disclosure of Borrower's liabilities such as to maintain the following financial covenants at all times. In the event that Borrower fails to comply with said covenants and said failure continues for 30 days from the date financial statements become due under this Agreement, Lender may deem said failure an Event of Default.

Section 6.10.1 Working Capital. Borrower agrees to maintain continuous Working Capital (Current Assets minus Current Liabilities) of not less than $5,000,000.00 at all times.

Notwithstanding the foregoing, in the event that Working Capital falls below the allowed covenant level provided under this section, then any un-advanced commitment under Loan Facility B will be included in the calculation of Working Capital.

Section 6.10.2 Local Net Worth. Borrower agrees to maintain minimum Local Net Worth (defined as Total Assets minus Total Liabilities minus Investments) of not less than $18,000,000.00.

Section 6.10.3 Debt Service Coverage Ratio. Borrower agrees to maintain a Debt Service Coverage Ratio of 1.25:1:00, measured at fiscal year-end. Debt Service Coverage Ratio is defined as [Net Profit + Depreciation & Amortization-Extraordinary Gain/(Loss)-After Tax Income/(Expense)-Gain/(Loss) on Fixed Asset Sale] divided by $1,250,000.00.

3.    The following paragraph is added to Section 2.3.4 (Origination Fee), with said fee being due and payable to Lender on the date of this Amendment:

In connection with Loan Facility C, Borrower agrees to pay Lender an Origination Fee in the amount of $20,000.00.

4. Exhibit B (Compliance Certificate) is hereby replaced by the new Exhibit 'B' attached hereto.

Borrower hereby represents and warrants to the Lender that, after giving effect to this Amendment, (r) no Default or Event of Default exists under the Credit Agreement or any of the other Loan Documents and (ii) the representations and warranties set forth in the Credit Agreement are true and correct in all material respects as of the date hereof (except for those which expressly relate to an earlier date).

Borrower hereby ratifies the Credit Agreement as amended and acknowledges and reaffirms (i) that it is bound by all terms of the Credit Agreement applicable to it and (it) that it is responsible for the observance and full performance of its respective obligations.

Borrower hereby certifies that the person(s) executing this Amendment on behalf of Borrower is/are duly authorized to execute such document on behalf of Borrower and that there have been no changes in the name, ownership, control, organizational documents, or legal status of the Borrower since the last application, loan, or loan servicing action; that 

all resolutions, powers and authorities remain in full force and effect, and that the information provided by Borrower is and remains true and correct.

This Amendment may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original and all of which shall constitute one and the same agreement. Delivery of executed counterparts of this Amendment by telecopy shall be effective as an original and shall constitute a representation that an original shall be delivered.

THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEBRASKA. A CREDIT AGREEMENT MUST BE IN WRITING TO BE ENFORCEABLE UNDER NEBRASKA LAW. TO PROTECT YOU AND US FROM ANY MISUNDERSTANDINGS OR ISAPPOINTMENTS, ANY CONTRACT, PROMISE, UNDERTAKING OR OFFER TO FOREBEAR REPAYMENT OF MONEY OR TO MAKE ANY OTHER FINANCIAL ACCOMMODATION IN CONNECTION WITH THIS AMENDMENT MUST BE IN WRITING TO BE EFFECTIVE.

This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

[Signature page follows]

IN WITNESS WHEREOF, the parties hereto have set their hand effective the day and year first above written.

	
		
	BORROWER:
	 

	 
	 

	Dakota Ethanol, L.L.C.
	 

	a South Dakota limited liability company
	 

	 
	 

	By: /s/ Scott Mundt
	 

	      Scott Mundt, Chief Executive Officer
	 

	 
	 

	Address for Notice: P.O. Box 100, Wentworth, South Dakota 57075
	 

	 
	 

	LENDER:
	 

	 
	 

	Farm Credit Services of America, PCA
	 

	Farm Credit Services of America, FLCA
	 

	 
	 

	By: /s/ Kathryn J. Frahm,
	 

	      Kathryn J. Frahm, Vice President
	 

	 
	 

	Address for Notice: P.O. Box 2409, Omaha, Nebraska 68103-9935a50809562ex10_32.htm

Exhibit 10.32

Chemed Corporation

Form of Performance-Based Restricted Stock Unit Award

November 8, 2013

Name

Address

Dear __________________:

I am pleased to inform you that the Compensation/Incentive Committee (the “Committee”) of Chemed Corporation (the "Company"), has granted you a target number of  ________ share units, which are the equivalent of one share of the Company's Capital Stock ("Capital Stock"), par value $1.00 per share (“Performance Share Units”), under the 2010 Stock Incentive Plan (the "Plan").  Subject to the terms and conditions of this Agreement and the Plan and depending on the Company’s performance, as set forth below, you may earn between zero percent (0%) to two hundred percent (200%) of the target number of Performance Share Units.  Capitalized terms used in this Agreement without definition shall have the meanings set forth in the Plan, unless otherwise stated herein.

1.  The Performance Share Units (and any additional Dividend Share Units with respect to such Performance Share Units, as set forth in Section 3) shall vest and be earned based on the achievement of the three-year compound average growth rate in the Company’s adjusted earnings per share (“3-Year Adjusted EPS CAGR”) and the Company’s three-year total shareholder return percentile ranking as compared to the Peer Companies, as defined below (“3-Year TSR Percentile”) for the performance period beginning January 1, 2013 and ending December 31, 2015 (the “Performance Period”) as set forth below (collectively, the “Performance Goals”) and your continued employment with the Company or one of its Subsidiaries (as defined below) through the date on which the Committee determines the actual number of shares of Capital Stock to be delivered to you (the “Settlement Date”). Fifty percent (50%) of your Performance Share Unit award will be determined by 3-Year Adjusted EPS CAGR and, fifty percent (50%) will be determined by 3-Year TSR Percentile.

2.  No later than March 15, 2016, the Committee shall determine the extent to which each Performance Goal has been achieved and shall determine the number of Performance Share Units, if any, that has been earned by you. The number of Performance Share Units to be vested and earned shall be based on the degree of achievement of the Performance Goals, in accordance with the following tables.

	  	 	
3-Year Adjusted EPS

CAGR

	 	 	
Percentage of

Target Shares

	 
	
Maximum

	 	 	15	%	 	 	100.0	%
	
Maximum

	 	 	15	%	 	 	100.0	%
	
Target

	 	 	7	%	 	 	50.0	%
	
Minimum

	 	 	3	%	 	 	0.0	%
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	  	 	
3-Year TSR Percentile

	 	 	
Percentage of Target Shares

	 
	
Maximum

	 	
Greater than 90th

	 	 	 	100.0	%
	  	 	
75th

	 	 	 	75.0	%
	  	 	
60th

	 	 	 	62.5	%
	
Target

	 	
50th

	 	 	 	50.0	%
	  	 	
40th

	 	 	 	37.5	%
	  	 	
25th

	 	 	 	25.0	%
	
Minimum

	 	
Less than 25th

	 	 	 	0.0	%

 

  

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For performance levels between those appearing in the above tables, the number of Performance Share Units to be vested and earned shall be interpolated between the next closest performance levels appearing in the tables.  The Committee has the discretion to reduce (but not increase) some or all of the number of shares of Capital Stock that would otherwise be earned as a result of the satisfaction of the Performance Goals. In making this determination, the Committee may take into account any such factor or factors it determines are appropriate.

 

3-year Adjusted EPS CAGR is equal to the Company’s fiscal year 2015 Adjusted EPS divided by the fiscal year 2012 Adjusted EPS raised to the 1/3 power, minus one (1), where Adjusted EPS means the Company’s diluted earnings per share from continuing operations for a fiscal year, excluding non-cash stock option and interest expenses and other items not indicative of ongoing operations, as determined by the Committee.

 

3-Year TSR Percentile means the percentile ranking of the Company’s 3-Year TSR as compared to the 3-Year TSR of each of the Peer Companies, where 3-Year TSR means, for the Company and each of the Peer Companies, a company’s total shareholder return, which is equal to Closing Average Stock Price divided by the Opening Average Stock Price raised to the 1/3 power, minus one (1).

 

Closing Average Stock Price means the average of a company’s closing stock price over the thirty (30) trading days ending on the last day of the Performance Period, or in the case of a Change in Control (as defined in the Chemed Corporation Change in Control Severance Plan, the “CIC Severance Plan”), ending on the date of the Change in Control or some earlier date, as determined by the Committee, where such price takes into account dividends paid on a company’s stock during the Performance Period, assuming same day reinvestment of the dividends into shares of the company’s stock at the closing stock price on the ex-dividend date.

 

Opening Average Stock Price means the average of a company’s closing stock price over the thirty (30) trading days ending on the first day of the Performance Period.

 

Peer Companies means the list of companies appearing in Exhibit A of this Agreement. In the event of a merger, acquisition, or other similar business combination of a Peer Company during the Performance Period where the Peer Company is not the surviving entity or a Peer Company is taken private or is no longer publicly traded in the United States during the Performance Period, the company shall no longer be a Peer Company.  In the event of a bankruptcy, liquidation, or dissolution of a Peer Company or a Peer Company otherwise ceases to conduct operations during the Performance Period, its 3-Year TSR shall be deemed to be -100%.

 

Any fractional shares resulting from the determination of the number of Performance Share Units to be earned and vested shall be rounded to the nearest whole number of shares of Capital Stock.

 

3.  If the Company pays a cash dividend during the Performance Period, your number of target Performance Share Units, including any such previous Dividend Share Units (as defined below), will increase on the dividend payment date by a number of units equal to the per share cash dividend amount multiplied by such number of target Performance Share Units divided by the Company’s closing stock price on the dividend payment date (“Dividend Share Units”).

 

4.  As long as you are employed by the Company or a Subsidiary and until the Settlement Date, you will not, except as otherwise specifically required or permitted by this Agreement, sell, exchange, transfer, pledge, hypothecate or otherwise dispose of any of the Performance Share Units or any interest therein.

 

5.  If your employment with the Company or a Subsidiary shall terminate prior to the Settlement Date for any reason other than death, disability (as determined by the Committee), or retirement under a retirement plan of the Company or a Subsidiary, all Performance Share Units shall be forfeited by you upon such termination of employment.  If your employment with the Company or a subsidiary shall terminate during the Performance Period by reason of death, disability (as determined by the Committee), or retirement under a retirement plan of the Company or a Subsidiary, you will vest and earn a pro-rated number of Performance Share Units on the Settlement Date based on the degree of achievement of the Performance Goals during the Performance Period, where the pro-ration shall be determined by multiplying such number of Performance Share Units by a fraction, the numerator of which is the number of completed months in the Performance Period during which you were employed by the Company and the denominator of which is thirty-six (36).

6.  Any provision of this Agreement to the contrary, the Company may take such steps as it believes necessary or desirable to obtain sufficient funds from you to pay all taxes, if any, required by law to be withheld in respect of the Performance Share Units including, but not limited to, requiring payments to the Company by you or on your behalf and/or taking deductions from amounts payable by the Company to you or on your behalf.

 

  

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7.  As used in this Agreement, the term "Subsidiary" shall mean the Company’s divisions and units, and all corporations or other forms of business association of which shares (or other ownership interests) having 50% or more of the voting power regularly entitled to vote for directors (or equivalent management) or regularly entitled to receive 50% or more of the dividends (or their equivalents) paid on the Capital Stock (or its equivalent) are owned or controlled, directly or indirectly, by the Company.

8.  Each of the parties hereto agrees to execute and deliver all consents and other instruments and to take all other action deemed necessary or desirable by counsel for the Company to carry out each term of this Agreement.    Each party recognizes that the other party has no adequate remedy at law for breach of this Agreement and recognizes consents and agrees that the other party shall be entitled to an injunction or decree of specific performance directed to the other party that the provisions of this Agreement be carried out.

	
  

	
9.

	
(a)  Any notice to the Company under or pursuant to this Agreement shall be deemed to have been given if and when delivered in person to the Secretary of the Compensation/Incentive Committee or if and when mailed by certified or registered mail to the Secretary of the Compensation/Incentive Committee at Suite 2600, 255 East Fifth Street, Cincinnati, Ohio 45202, or such other address as the Company may from time to time designate in writing by notice to you given pursuant to paragraph 9(b) hereof.

	
  

	
(b)  Any notice to you under or pursuant to this Agreement shall be deemed to have been given if and when delivered to you in person or if and when mailed by certified or registered mail to you at your address hereinabove given or such other address as you may from time to time designate in writing by notice to the Company given pursuant to paragraph 9(a) above.

10.  Notwithstanding any remedy provided for in this Agreement, nothing in this Agreement shall preclude the Company from taking any other action or enforcing any other remedy available to the Company.

11.  This Agreement has been executed pursuant to the Plan of the Company, and the Plan is hereby incorporated herein by reference.

12.  The Company may cancel, forfeit or recoup any rights or benefits of, or payments to, you hereunder, including but not limited to any Capital Stock issued by the Company or the proceeds from the sale of any such Capital Stock, under any current or future compensation recovery policy that it may establish and maintain from time to time to meet listing requirements that may be imposed in connection with the Dodd-Frank Wall Street Reform and Consumer Protection Act or otherwise.

13.  This Agreement shall be binding upon and inure to the benefit of (a) the Company, its successors and assigns, and (b) you, and to the extent applicable, any beneficiary in the event of your death.

14.  This Agreement has been executed, and it and any shares of Capital Stock that are to be delivered, in accordance with the laws of the State of Ohio, the state in which the Company maintains its principal executive offices, and the validity, interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of Ohio.

 

15.  Upon the occurrence of a Change in Control (as defined in the CIC Severance Plan) during the Performance Period, the number of Performance Share Units to be vested and earned shall be based on the greater of (i) the degree of achievement of the Performance Goals as of the date of the Change in Control or some earlier date, as determined by the Committee, in accordance with the tables set forth in Section 2 of this Agreement; or (ii) the target number of Performance Share Units; provided, however, that the date on which these Performance Share Units shall become vested and earned will be January 1, 2016, subject to the terms of Section 5 of this Agreement where such date is to be considered the Settlement Date and your employment is with the surviving or successor entity; provided, however, that upon a termination of your employment (i) for reasons other than Cause; or (ii) for Good Reason (as defined in the CIC Severance Plan), the Performance Share Units shall become immediately vested and earned.  Upon the Change in Control, the Company shall cause the surviving entity to issue replacement Performance Share Units (“Replacement Award”), which units shall be the equivalent of one share of common stock of the surviving entity.  The number of Performance Share Units subject to such Replacement Award shall be determined based on the Company’s stock price immediately before the Change in Control and the stock price of the surviving entity immediately after the Change in Control, such that the total value of the Performance Share Units immediately prior to the Change in Control is equal to the value of the Replacement Award immediately after the Change in Control.  Such Replacement Award shall vest immediately prior to any subsequent transaction with respect to the surviving entity (or parent or subsidiary company thereof) of substantially similar character to a Change in Control.  Notwithstanding anything to the contrary contained herein, if the surviving entity is no longer publicly traded on a United States exchange at the date of the Change in Control or the conversion into a Replacement Award is not properly executed, then such Performance Share Units shall become vested and earned immediately following the Change in Control.  By accepting this grant and Agreement, you explicitly agree that, to the extent there is a conflict between the terms of this Section 15 and the CIC Severance Plan, the terms of this Section 15 shall control.

 

  

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	  	  	 	  	Very truly yours,
	  
	  	  	 	  	CHEMED CORPORATION
	  
	  
	  
	Executed and agreed to	
By:

	 	 	  
	as of:	  	 	Naomi C. Dallob
	  	  	 	  	 	Vice President and Secretary
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
Date:

	  	 	
Date:

	 	 	  

  

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EXHIBIT A:  Peer Companies List

	
ABM Industries, Inc.

	
Acadia Healthcare Co., Inc.

	
Alliance Healthcare Services, Inc.

	
Almost Family, Inc.

	
Amedisys, Inc.

	
Bioscrip, Inc.

	
Brookdale Senior Living, Inc.

	
Capital Senior Living Corp.

	
Clean Harbors, Inc.

	
Comfort Systems USA, Inc.

	
Emeritus Corp.

	
Ensign Group, Inc.

	
Five Star Quality Care, Inc.

	
Gentiva Health Services, Inc.

	
Hanger, Inc.

	
Healthcare Services Group

	
Healthways, Inc.

	
LHC Group, Inc.

	
Mednax, Inc.

	
National Healthcare Corp.

	
Radnet, Inc.

	
Rollins, Inc.

	
Skilled Healthcare Group, Inc.

	
Team, Inc.

	
Tetra Tech, Inc.

 

 

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