Document:

gfe_Current_Folio_10K_Ex_1040

		
			Amendment No. RI1080D
		

		
			 
		

		
			 
		

		
			AMENDMENT TO MASTER LOAN AGREEMENT
		

		
			 
		

		
			THIS AMENDMENT is entered into as of SEP 08 2017 between GRANITE FALLS ENERGY, LLC, Granite Falls, Minnesota, a limited liability company (the “Company”) and AGCOUNTRY FARM CREDIT SERVICES, PCA, successor by merger to UNITED FCS, PCA, a federally-chartered instrumentality of the United States (“Lead Lender”).  Capitalized terms used and not defined herein shall have the meanings assigned to such terms in the Agreement (as defined below).
		

		
			 
		

		
			RECITALS
		

		
			 
		

		
			The Company and United FCS, PCA are parties to Master Loan Agreement Number RI1080A dated as of August 30, 2013 (such agreement, as may be amended, is hereinafter referred to as the “Agreement”).  The Company and Lead Lender now desire to amend the Agreement.  For that reason, and for valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the Company and Lead Lender agree as follows:
		

		
			 
		

		
			1.The form of Compliance Certificate required by Section 9(H)(7) and attached as Exhibit A to the Agreement is hereby amended and restated by the form of Compliance Certificate attached as Exhibit A hereto.
		

		
			 
		

		
			2.Section(s) 10(A), (B), (E), and (I) of the Agreement are amended and restated to read as follows:
		

		
			 
		

		
			SECTION 10.  Negative Covenants.  Unless otherwise agreed to in writing by Agent, while this agreement is in effect the Company will not:
		

		
			 
		

		
			(A)Borrowings.  Create, incur, assume, or allow to exist, directly or indirectly, any indebtedness or liability for borrowed money (including trade or bankers’ acceptances), letters of credit, or the deferred purchase price of property or services (including capitalized leases), except for:  (1) debt to Lead Lender and/or Agent; (2) accounts payable to trade creditors incurred in the ordinary course of business; (3) current operating liabilities (other than for borrowed money) incurred in the ordinary course of business; (4) debt of the Company to Project Hawkeye, L.L.C. (“Hawkeye”), provided that such debt is or will be subordinated to all indebtedness of the Company to Lead Lender, pursuant to a subordination agreement (in form and content acceptable to Agent) between Lead Lender and Hawkeye, on terms and conditions satisfactory to Agent; and (5) debt of the Company to other lenders or finance companies in an aggregate amount not to exceed $750,000.00, with lien positions acceptable to Lead Lender and/or Agent.
		

		
			 
		

		
			(B)Liens.  Create, incur, assume, or allow to exist any mortgage, deed of trust, pledge, lien (including the lien of an attachment, judgment, or execution), security interest, or other encumbrance of any kind upon any of its property, real or personal (collectively, “Liens”).  The forgoing restrictions shall not apply to:  (1) Liens in favor of Lead Lender and/or Agent; (2) Liens for taxes, assessments, or governmental charges that are not past due; (3) Liens and deposits under workers’ compensation, unemployment insurance, and social security Laws; (4) Liens and deposits to secure the performance of bids, tenders, contracts (other than contracts for the payment of money), and like obligations arising in the ordinary course of business as conducted on the date hereof; (5) Liens imposed by Law in favor of mechanics, materialmen, warehousemen, and like persons that secure obligations that are not past due; (6) easements, rights-of-way, restrictions, and other similar encumbrances which, in the aggregate, do not materially interfere with the occupation, use, and enjoyment of the property or assets encumbered thereby in the normal course of its business or materially impair the value of the property subject thereto; (7) Liens in favor of Farm Credit Leasing Services Corporation; (8) Liens in favor of Hawkeye on the stock or other equities of Ring-neck Energy & Feed, LLC (“Ring-neck”), to secure indebtedness permitted hereunder, provided that, such security interests are subordinate to Lead Lender’s lien pursuant to a subordination agreement (in form and content acceptable to Agent) between Lead 

		 

		

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			GRANITE FALLS ENERGY, LLC

		

		

			Granite Falls, Minnesota

		

		

			Amendment No. RI1080D to Master Loan Agreement No. RI1080A

		

		

			 

		

Lender and such party on terms and conditions satisfactory to Agent; and (9) Liens, acceptable to Lead Lender and/or Agent in favor of other lenders or finance companies to secure indebtedness permitted hereunder.
		

		
			 
		

		
			(E)Loans and Investments.  Make any loan or advance to any person or entity, or purchase any capital stock, obligations or other securities of, make any capital contribution to, or otherwise invest in any person or entity, or form or create any partnerships or joint ventures except:  (1) trade credit extended in the ordinary course of business; (2) investments by the Company existing as of the date hereof in the stock or other equities of Heron Lake BioEnergy, LLC, plus future retained earnings; and (3) investments by the Company in the stock or other equities of Ring-neck, provided that the aggregate amount of all such investments may not exceed $7,500,000.00, plus future retained earnings.
		

		
			 
		

		
			(I)Operating/Capitalized Leases.  Create, incur, assume, or permit to exist any obligation as lessee under operating leases for the rental or hire of any real or personal property or under any leases that should be capitalized in accordance with GAAP, except (a) leases with Farm Credit Leasing Services Corporation; (b) leases existing as of the date hereof; (c) railcar leases, provided, however, such leases are not to exceed an initial or extended term of 120 months; and (d) other leases which do not in the aggregate require the Company to make scheduled payments to the lessors in any fiscal year of the Company in excess of $100,000.00.
		

		
			 
		

		
			3.Section(s) 11(A) of the Agreement is amended and restated to read as follows:
		

		
			 
		

		
			SECTION 11.  Financial Covenants.  Unless otherwise agreed to in writing, while this agreement is in effect:
		

		
			 
		

		
			(A)Working Capital.  The Company will have at the end of each period for which financial statements are required to be furnished pursuant to Section 9(H) hereof an excess of unconsolidated current assets over unconsolidated current liabilities (both as determined in accordance with GAAP consistently applied) of not less than $10,000,000.00.
		

		
			 
		

		
			4.Except as expressly amended hereby, all of the representations, warranties, terms, covenants and conditions contained in the Agreement and each other Loan Document shall remain unamended and otherwise unmodified and in full force and effect.
		

		
			 
		

		
			5.This Amendment, each Supplement and any other Loan Document may be executed in counterparts, each of which will constitute an original, but all of which when taken together will constitute a single contract.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile or other electronic means will be as effective as delivery of a manually executed counterpart of this Amendment.
		

		
			 
		

		
			 
		

		
			SIGNATURE PAGE FOLLOWS
		

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

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			GRANITE FALLS ENERGY, LLC

		

		

			Granite Falls, Minnesota

		

		

			Amendment No. RI1080D to Master Loan Agreement No. RI1080A

		

		

			 

		

		

		
			SIGNATURE PAGE TO AMENDMENT TO MASTER LOAN AGREEMENT
		

		
			 
		

		
			IN WITNESS WHEREOF, the parties hereto, by their duly authorized officer(s), have executed this agreement.
		

		
			 
		

		
			 
		

		
			GRANITE FALLS ENERGY, LLC
		

		
			 
		

		
			Name:/s/ Stacie Schuler
		

		
			 
		

		
			By:Stacie Schuler
		

		
			 
		

		
			Title:CFO
		

		
			 
		

		
			
		

		
			

		 

		

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			GRANITE FALLS ENERGY, LLC

		

		

			Granite Falls, Minnesota

		

		

			Amendment No. RI1080D to Master Loan Agreement No. RI1080A

		

		

			 

		

		

		
			SIGNATURE PAGE TO AMENDMENT TO MASTER LOAN AGREEMENT
		

		
			 
		

		
			IN WITNESS WHEREOF, the parties hereto, by their duly authorized officers, have executed this agreement.
		

		
			 
		

		
			 
		

		
			AGCOUNTRY FARM CREDIT SERVICES, PCA, successor by merger to UNITED FCS, PCA
		

		
			 
		

		
			By:/s/ Nicole Schwartz
		

		
			 
		

		
			Name:Nicole Schwartz
		

		
			 
		

		
			Title:Vice President
		

		
			 
		

		
			 
		

		
			 
		

		 

		

			4gfe_Current_Folio_10K_Ex_1041

		
			Loan No. RI1080S02
		

		
			 
		

		
			 
		

		
			REVOLVING CREDIT SUPPLEMENT
		

		
			 
		

		
			THIS REVOLVING CREDIT SUPPLEMENT (“Supplement”) to the Master Loan Agreement (as amended) dated August 30, 2013 (“MLA”), is entered into as of SEP 08 2017 between AGCOUNTRY FARM CREDIT SERVICES, PCA, successor by merger to UNITED FCS, PCA, a federally-chartered instrumentality of the United States (“Lead Lender”) and GRANITE FALLS ENERGY, LLC, Granite Falls, Minnesota, a limited liability company (together with its permitted successors and assigns, the “Company”).  Capitalized terms not otherwise defined in this Supplement will have the meanings set forth in the MLA.
		

		
			 
		

		
			SECTION 1.  REVOLVING CREDIT COMMITMENT.  On the terms and conditions set forth in the MLA and this Supplement Lead Lender agrees to make loans to the Company during the period set forth below in an aggregate principal amount not to exceed $6,000,000.00, at any one time outstanding (the “Commitment”).  Within the limits of the Commitment, the Company may borrow, repay and re-borrow.
		

		
			 
		

		
			SECTION 2.  PURPOSE.  The purpose of the Commitment is to finance the operating needs of the Company and to combine $6,000,000.00 of the loans made by United FCS, PCA to the Company under Revolving Term Loan Supplement numbered RI1080T01B, dated as of July 22, 2014, with and into this Supplement for a total Commitment amount stated in Section 1 hereto.  The combination of these loans with and into this Supplement shall not be considered a refinance or new debt for the purposes of Minnesota Mortgage Registration Tax.
		

		
			 
		

		
			SECTION 3.  TERM.  The term of the Commitment will be from the date hereof, up to and including October 1, 2018, or such later date as Agent may, in its sole discretion, authorize in writing (the “Term Expiration Date”).
		

		
			 
		

		
			SECTION 4.  LIMITS ON ADVANCES, AVAILABILITY, ETC.  The loans will be made available as provided in Section 3 of the MLA.
		

		
			 
		

		
			SECTION 5. INTEREST.  The Company agrees to pay interest on the unpaid balance of the loan(s) in accordance with the following interest rate option(s):
		

		
			 
		

		
			(A)  One-Month LIBOR Index Rate.  At a rate (rounded upward to the nearest 1/100th and adjusted for reserves required on Eurocurrency Liabilities (as hereinafter defined) for banks subject to FRB Regulation D (as hereinafter defined) or required by any other federal law or regulation) per annum equal at all times to 2.750% above the higher of:  (1) zero percent (0.000%); or (2) the rate reported at 11:00 a.m. London time for the offering of one (1)-month U.S. dollars deposits, by Bloomberg Information Services (or any successor or substitute service providing rate quotations comparable to those currently provided by such service, as determined by Agent from time to time, for the purpose of providing quotations of interest rates applicable to dollar deposits in the London interbank market) on the first U.S. Banking Day (as hereinafter defined) in each week, with such rate to change weekly on such day.  The rate will be reset automatically, without the necessity of notice being provided to Agent, the Company, or any other party, on the first U.S. Banking Day of each succeeding week, and each change in the rate will be applicable to all balances subject to this option.  Information about the then-current rate will be made available upon telephonic request.  For purposes hereof:  (a) “U.S. Banking Day” means a day on which Agent is open for business and banks are open for business in New York, New York; (b) “Eurocurrency Liabilities” will have the meaning as set forth in “FRB Regulation ID”; and (c) “FRB Regulation D” means Regulation D as promulgated by the Board of Governors of the Federal Reserve System, 12 CFR Part 20, as amended.
		

		
			

		 

		

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			00079054

		

 

		

			GRANITE FALLS ENERGY, LLC

		

		

			Granite Falls, Minnesota

		

		

			Supplement No. RI1080502

		

		

			 

		

		

		
			Interest will be calculated on the actual number of days each loan is outstanding on the basis of a year consisting of 360 days and will be payable monthly in arrears by the 20th day of the following month or on such other day as Agent will require in a written notice to the Company (“Interest Payment Date”).
		

		
			 
		

		
			SECTION 6.  PROMISSORY NOTE.  The Company promises to repay the unpaid principal balance of the loans on the Term Expiration Date.
		

		
			 
		

		
			In addition to the above, the Company promises to pay interest on the unpaid principal balance of the loans at the times and in accordance with the provisions set forth herein.
		

		
			 
		

		
			SECTION 7.  SECURITY.  The Company’s obligations hereunder and, to the extent related hereto, under the MLA, will be secured as provided in Section 6 of the MLA or in a closing instruction letter signed by the parties (an “Instruction Letter”).
		

		
			 
		

		
			SECTION 8.  FEES.
		

		
			 
		

		
			(A)  Commitment Fee.  In consideration of the Commitment, the Company agrees to pay to Agent a commitment fee on the average daily unused available portion of the Commitment at the rate of 0.250% per annum (calculated on a 360-day basis), payable monthly in arrears by the 20th day following each month.  Such fee will be payable for each month (or portion thereof) occurring during the original or any extended term of the Commitment.
		

		
			 
		

		
			SECTION 9.  LETTERS OF CREDIT.  If agreeable to Agent in its sole discretion in each instance, in addition to loans, the Company may utilize the Commitment to open irrevocable letters of credit for its account.  Each letter of credit will be issued within a reasonable period of time after Agent’s receipt of a duly completed and executed copy of Agent’s then current form of Application and Reimbursement Agreement or, if applicable, in accordance with the terms of any CoTrade Agreement between the parties, and will reduce the amount available under the Commitment by the maximum amount capable of being drawn under such letter of credit.  Any draw under any letter of credit issued hereunder will be deemed a loan under the Commitment and will be repaid in accordance with this Supplement.  Each letter of credit must be in form and content acceptable to Agent and must expire no later than the maturity date of the Commitment.
		

		
			 
		

		
			 
		

		
			SIGNATURE PAGE FOLLOWS
		

		
			
		

		
			

		 

		

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			GRANITE FALLS ENERGY, LLC

		

		

			Granite Falls, Minnesota

		

		

			Supplement No. RI1080502

		

		

			 

		

		

		
			SIGNATURE PAGE TO SUPPLEMENT
		

		
			 
		

		
			IN WITNESS WHEREOF, the parties have caused this Supplement to the MLA to be executed by their duly authorized officer(s).
		

		
			 
		

		
			 
		

		
			GRANITE FALLS ENERGY, LLC
		

		
			 
		

		
			Name:/s/ Stacie Schuler
		

		
			 
		

		
			By:Stacie Schuler
		

		
			 
		

		
			Title:CFO
		

		
			 
		

		
			
		

		
			

		 

		

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			GRANITE FALLS ENERGY, LLC

		

		

			Granite Falls, Minnesota

		

		

			Supplement No. RI1080502

		

		

			 

		

		

		
			SIGNATURE PAGE TO SUPPLEMENT
		

		
			 
		

		
			IN WITNESS WHEREOF, the parties have caused this Supplement to the MLA to be executed by their duly authorized officer(s).
		

		
			 
		

		
			 
		

		
			AGCOUNTRY FARM CREDIT SERVICES, PCA, successor by merger to UNITED FCS, PCA
		

		
			 
		

		
			By:/s/ Nicole Schwartz
		

		
			 
		

		
			Name:Nicole Schwartz
		

		
			 
		

		
			Title:Vice President
		

		
			 
		

		
			 
		

		
			 
		

		 

		

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