Document:

Filed by Bowne Pure Compliance

Exhibit 10.3

 [Space Above This Line For Recording Data]

FIRST AMENDMENT OF CONSTRUCTION LOAN MORTGAGE,

SECURITY AGREEMENT,

ASSIGNMENT OF LEASES AND RENTS

AND FIXTURE FINANCING STATEMENT

THIS FIRST AMENDMENT OF CONSTRUCTION LOAN MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF LEASES
AND RENTS AND FIXTURE FINANCING STATEMENT (“Amendment”) is made as of July 31, 2008, between
CARDINAL ETHANOL, LLC, an Indiana limited liability company (“Mortgagor”), whose address is 1554 N,
600 E., Union City, Indiana 47390 and FIRST NATIONAL BANK OF OMAHA, a National Banking Association
(“Mortgagee”), whose address is 1620 Dodge Street, Stop 1050, Omaha, Nebraska 68197-1050, and
amends that certain Construction Loan Mortgage, Security Agreement, Assignment of Leases and Rents
and Fixture Financing Statement dated December 19, 2006 (“Mortgage”) executed and delivered by
Mortgagor in favor of Mortgagee and recorded in the mortgage records of Randolph County, Indiana as
Instrument No. 2006-6145 on December 21, 2006.

RECITALS

A. Mortgagor and Mortgagee have entered into that certain Construction Loan Agreement dated
December 19, 2006 (as the same may be modified or amended from time to time, the “Loan Agreement”),
pursuant to which Mortgagee has extended to Mortgagor the Loans and financial accommodations
described therein and in the Mortgage.

B. Pursuant to that certain Third Amendment of Construction Loan Agreement dated of even date
herewith and the documents executed in connection therewith, Mortgagee extended to Mortgagor the
Oil Extraction Loan in the maximum principal amount of $3,600,000,00. The Oil Extraction Loan is
secured by the Mortgage. The Mortgage provides that it secures the total
principal amount of $101,602,500, or so much thereof as may have been advanced and/or
readvanced now or in the future at variable and/or fixed rates of interest to or for the benefit of
the Mortgagee and remains unpaid from time to time, plus the amount of any protective advances made
by Mortgagee as provided for in this Mortgage or any other Loan Document.

 

 

 

C. The Mortgage encumbers the real property and improvements described in
Exhibit A attached hererto and incorporated herein by reference.

D. Mortgagor and Mortgagee agree to amend the Mortgage to reflect the increase in the maximum
principal amount of the Loans and otherwise as set forth below.

NOW, THEREFORE, in consideration of the foregoing Recitals, which are hereby made an integral
part of this Mortgage, the mutual covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree to
amend the Mortgage as follows:

1. Capitalized terms not otherwise defined in this Amendment shall have the meaning given to
such terms in the Mortgage. The term. “Mortgage”, as defined in the Mortgage and the other Loan
Documents, shall be deemed to mean the Mortgage as amended by this Amendment and as the Mortgage
may he hereafter further amended, supplemented, restated or modified from time to time.

2. The definition of the term “Loans” in Recital A of the Mortgage is hereby amended to
include the Oil Extraction Loan in the principal amount of up to $3,600,000,00.

3. The reference in Recital A to S101,602,500,00 as the total principal amount secured by the
Mortgage is hereby deleted and $105,202,500.00 is hereby inserted in lieu thereof, and hereafter
Mortgage shall secure the principal amount of $50,846,000.00, or so much thereof as may have been
advanced and/or readvanced now or in the future at variable and/or fixed rates of interest to or
for the benefit of the Mortgagee and remains unpaid from time to time, plus the amount of any
protective advances made by Mortgagee as provided for in this Mortgage or any other Loan Document.

4. Mortgagor’s notice address in Section 5.3 and Mortgagor’s address in Section 5.9 of the
Mortgage is hereby amended to 1554 N. 600 E., Union City, Indiana 47390, Fax. No. (765) 964-3349.

5. The Mortgage, as amended by this Amendment, shall remain in full force and effect as
originally executed and delivered by Mortgagor, except as expressly modified and amended herein.
Mortgagor hereby confirms and reaffirms all of its obligations under the Mortgage, as modified and
amended by this Amendment.

6. Mortgagor certifies and reaffirms by its execution hereof that the representations and
warranties set forth in the Mortgage and the other Loan Documents are true as of this date, and
that no Event of Default under the Mortgage or any other Loan Document, and no event which, with
the giving of notices or passage of time or both, would become such an Event of
Default, has occurred as of execution hereof.

 

 

 

7. This Amendment may he executed simultaneously in several counterparts, each of which shall
be deemed an original but which together shall constitute one and the same Instrument.

IN WITNESS WHEREOF, the parties have executed and delivered this Amendment on the date
first written above.

	 	 	 	 	 	 	 
	 	 	FIRST NATIONAL BANK OF OMAHA,
a national 
banking association	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ Fallon Savage
 

	 	 
	 

	 	
	 	TITLE: Second Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	CARDINAL ETHANOL, LLC,
an Indiana
 Limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ Troy Prescott	 	 
	 

	 	 	 	 	 	 
	 

	 	
	 	TITLE: President	 	 

Prepared by and Return to:

James M. Pfeffer

Stinson Morrison Becker LLP 

1299
Farnam St. Suite 1500 

Omaha,
Nebraska 68102

 

 

 

CERTIFICATE OF ACKNOWLEDGEMENT

	 	 	 	 	 	 	 
	STATE OF INDIANA

	 	 	)	 	 	 
	 

	 	) ss,
	 	 
	COUNTY OF Grant

	 	 	)	 	 	 

Before me, a Notary Public in and for said County and State, personally appeared Troy
Prescott, known to me to be the President of Cardinal Ethanol, LLC, an Indiana limited
liability company, and acknowledged the execution of the foregoing Note for and on behalf of such
limited liability company.

	 	 	 	 	 
	 

	 	/s/ Techia K. Brewer
 

Notary Pubic — Signature
	 	 
	 
	 	 	 	 
	 

	 	Techia K. Brewer	 	 
	 

	 	 	 	 
	 

	 	Notary Public — Printed Name	 	 
	 
	 	 	 	 
	 

	 	Date: July 31, 2008	 	 

My Commission Expires:

12/27/2009

My County of Residence: Grant County, Indiana

 

 

 

EXHIBIT A

LEGAL DESCRIPTION

Tract I, containing 207.623 acres

Situated in the Northeast and. Southeast Quarters, both being in Section 17, Township 20 North,
Range 15 East, Wayne Township, Randolph County, Indiana, being more particularly described as
follows:

Beginning at a mag nail found at the southeast corner of the Southeast Quarter in Indiana State
Highway No. 32;

Thence
North 89o50'43" West 1993.12 feet (bearing base established from State Plan Coordinates)
along the south line of said Southeast Quarter, Indiana State Highway No. 32, to a mag nail set,
witness an iron. rod set North 00o09'17" East 30.00 feet (all
iron rods set are 5/8" rebar with
plastic cap stamped “RLS 20400025”);

Thence
North 00o09'17" East 332.46 feet, to an iron rod set;

Thence
North 89°50'43" West 298.90 feet, to art iron rod set;

Thence
South 00o09'17" West 332.46 feet, to a mag nail set on the south line of said Southeast
Quarter, witness an iron rod set North 00o09'17" East 30.00 feet;

Thence
North, 89o50'3" West 502.27 feet, along said south line, in said highway, to a mag nail
found at said southwest corner of said Southeast Quarter, witness a concrete post found North
01o31'35" East 30.52 feet;

Thence
North 01o31'35" East 2649.53 feet along the west line of said Southeast Quarter, to an.
iron rod set at the northwest corner of said Quarter (all iron rods
set are 5/8" rebar with
plastic cap stamped “RLS 20400025”);

Thence
North. 01o31'35" East 378.81 feet along the west line of said Northeast Quarter, to an
iron rod set on the south right-of-way of the New ‘1°c-irk Central Lines Railroad;

Thence
North 77o15'15' East 2775.43 feet along said south right-of-way, to a mag nail set on
the east line of said Northeast Quarter, in Randolph County Road 600 East, witness a concrete
end post found South 77o15'15" West 21.33 feet;

Thence
South 00o40'05" West 1012.22 feet along the east line of said Northeast Quarter, in said
County Road to an iron rod found at the southeast comer of said Northeast Quarter;

Thence
South 00°23'58" West 2635.04 feet along the east line of said Southeast Quarter, in said
road, to the point of beginning, containing 207.623 acres, more or less, there being 43.128
acres, more or less, in the Northeast Quarter and 164.495 acres, more or less, in the Southeast Quarter.

 

 

 

Tract II, containing 87.598 acres

Situated in the Northwest and Southwest Quarters, both in Section 17, Township 20 North, Range 15
East, Wayne Township, Randolph County, Indiana, being more particularly described as follows:

Beginning at a mag nail found at the southeast corner of the Southwest Quarter, in Indiana State
Highway No.32, witness a concrete end post found North 01o31’35” East 30.52 feet;

Thence
North 89o42'11' West 1320.67 feet (bearing base established from State Plan Coordinates)
along the south line of said Southwest Quarter, in said State Highway, to a mag nail set at the
Southeast corner of a 63.39 acre tract as recorded in instrument 0002247, witness a concrete end
post found North 01o12'42" East 30.49 feet;

Thence
North 01o12'42" East 2652.77 feet along the east line of said 63.39 acre tract, to an iron
rod set on the North line of said Southwest Quarter;

Thence
North 01o12'42" East 64.26 feet, entering into the Northwest Quarter, to an iron rod set
on the south right-of-way of the New York Central Lines Railroad (al( iron rods set with plastic
cap stamped 7955);

Thence
North 77o15'15" East 1377.82 feet along said right-of-way, to at; iron rod set on the east
line of said Northwest Quarter;

Thence
South 01o31'35" West 378.81 feet along the east line of said Northwest Quarter, to an
iron rod set at the southeast corner of said carter;

Thence
South 01o31'35" West 2649.53 feet along the east line of said Southwest Quarter, to the
point of beginning, containing 87.598 acres, more in less, there being 80.807 acres, more or less,
in the Southwest Quarter and 6.791 acres, more or less, in the Northwest Quarter.Filed by Bowne Pure Compliance

Exhibit 10.4

THIRD AMENDMENT OF

CONSTRUCTION LOAN AGREEMENT

THIS THIRD AMENDMENT OF CONSTRUCTION LOAN AGREEMEN’T (“Amendment”) is made this 31st day of
July, 2008 between FIRST NATIONAL BANK OF OMAHA, a national banking association (“Bank”) and
CARDINAL ETHANOL, LLC, an Indiana limited liability company (“Borrower”). This Amendment amends
that certain Construction Loan Agreement dated December 19, 2006 between Bank and Borrower (“Loan
Agreement”).

WHEREAS, pursuant to the Loan Agreement and the other Loan Documents, Bank extended the
Construction Loan, Revolving Loan and other financial accommodations and extensions of credit
described in the Loan Agreement to Borrower, all as more fully described in the Loan Agreement;

WHEREAS, pursuant to that certain that certain First Amendment of Construction Loan
Agreement dated August 22, 2007, a revised Total. Project Cost Statement was attached to the
Loan Agreement as Exhibit G and the Loan Agreement was otherwise amended as provided for
therein;

WHEREAS, pursuant to that certain Second Amendment of Construction Loan Agreement dated
December 18, 2007, the Loan Termination Date applicable to the Revolving Note was extended to
December 17, 2008 and the Loan Agreement was otherwise amended as provided for therein; and

WHEREAS, the Borrower has requested, and under the terms of this Amendment Bank has agreed,
to extend a new loan in the amount of $3,600,000.00 to be used for the installation of a corn oil
extraction system and the purchase of related equipment (the “Corn Oil Extraction Loan”); and

WHEREAS, the parties hereto agree to amend the Loan Agreement as provided for in this
Amendment.

NOW, THEREFORE, in consideration of the mutual covenants herein and other good and valuable
consideration, the sufficiency and receipt of which is hereby acknowledged, the parties agree to
amend the Loan Agreement as follows:

1. Capitalized terms used herein shall have the meaning given to such terms in the Loan
Agreement, unless specifically defined herein.

2. The Recital to the Loan Agreement is hereby amended by inserting the following at the end
of the first sentence of such Recital: “and a construction loan in the amount of up to
$3,600,000,00 for the purchase of equipment relating to and the installation of a corn oil
extraction system on the Project (the “Corn Oil Extraction Loan”). In addition, the term Loans is
hereby amended to include the Corn Oil Extraction Loan.

 

 

 

3. Section 1 of the Loan Agreement is hereby amended by adding the following
definitions at the end of such Section:

	 	1.42	 	“Corn Oil Extraction Loan Termination Date” means the earlier of (i) April 8,
2009 or (ii) such earlier date upon which BANK’s commitment to make a disbursement
under the Corn Oil Extraction Loan is terminated in accordance with the terms elf .this
AGREEMENT.
	 
	 	1.43	 	“Corn Oil Extraction Note” means the promissory note of BORROWER evidencing
borrowings under the Corn Oil Extraction Loan of up to a maximum amount of
$3,600,000.00.

4. The definition of “DRAW REQUEST” in Section 1.10 of the Loan Agreement is hereby amended by
inserting the following at the end thereof: “or the Corn Oil Extraction Note”.

5. The definition of “INTEREST PERIOD” in Section 1.18 of the Loan Agreement is hereby
amended by inserting “Corn Oil. Extraction. Note,” between the terms CONSTRUCTION NOTE and
LONG TERM- REVOLVING NOTE.

6. Subsection (i) of the definition of the term “LOAN TERMINATION DATE” in Section 1.21 of
the Loan Agreement is hereby amended by inserting “, as to the Corn Oil Extraction Note, the Com
Oil Extraction Loan Termination Date,” after the term CONSTRUCTION LOAN TERMINATION DATE.

7. Section 1.28.1 of the Loan Agreement is hereby amended by inserting “the
Corn Oil Extraction Note,” after CONSTRUCTION NOTE.

8. The definition of “TERM NOTES” in Section 1.38 of the Loan Agreement is hereby amended by
inserting “, the Corn Oil Extraction Term Note” after VARIABLE RATE NOTE.

9. Section 2.1 of the Loan Agreement is hereby amended to add the following as a new paragraph
at the end of such Section:

“BANK agrees, on the terms and subject to the conditions hereinafter set forth, to make, from
time to time during the period horn the date of execution of this AGREEMENT to and including
the Corn Oil Extraction Loan Termination Date disbursements to BORROWER pursuant to the
DISBURSING AGREEMENT, in an aggregate principal amount not to exceed the amount of the Corn
Oil Extraction Loan for the sole purpose of paying approved equipment, installation and
construction costs of the corn oil extraction system installed at the PROJECT. If, prior to
the COMPLETION DATE, there is paid to BANK a third party payment (a grant payment, for
example), which is applied to the Corn Oil Extraction Loan, BANK will advance such amount, or
a lesser sum, as in BANK’s reasonable discretion is necessary to complete the corn oil
extraction system installation at the PROJECT. Approved construction costs are costs
actually incurred in connection with the construction of the corn oil extraction system
associated with the PROJECT, which
shall include bet not be limited to costs of PERMITS, licenses, labor, supplies, materials,
services, equipment, and interest on disbursements, and BANK approved operating costs of the
corn oil extraction system.”

 

 

 

10. Section 2.2 of the Loan Agreement is hereby amended to add the following as a
new paragraph at the end of such Section:

“The obligation of BORROWER to repay the Corn Oil Extraction Loan shall be evidenced by the
Corn Oil Extraction Note. Notwithstanding any provisions of the Corn Oil Extraction Note,
interest shall be payable at the rate provided therein only on such portions of the Corn Oil
Extraction Loan proceeds as actually have been disbursed pursuant to this AGREEMENT and the
DISBURSING AGREEMENT.”

11. Section 2.3 of the Loan Agreement is hereby amended to add following as a new paragraph at
the end of such Section:

“Prior to maturity, interest on the principal balance outstanding on the Corn Oil Extraction
loan shall accrue at a rate equal to the one month LIBOR RATE plus 300 hundred basis points.
The interest rate on the Corn Oil Extraction Loan shall initially be set two (2) EURODOLLAR
BUSINESS DAYS prior to the date of the Corn Oil Extraction Loan, and shall adjust on the 8th
day of each month thereafter. After maturity, whether by acceleration or otherwise, interest
shall accrue on the Corn Oil Extraction Loan at a rate equal to the one month LIBOR RATE plus
nine hundred (900) basis points.”

12. Section 2.4 of the Loan Agreement is hereby amended to add the following as a new
paragraph at the cod of such Section:

“Interest only shall be payable quarterly on the Corn Oil Extraction Note as more
particularly provided for in the Corn Oil Extraction Note. All outstanding principal and
accrued but unpaid interest shall be payable on the Corn Oil Extraction Loan Termination
Date. On the Corn Oil Extraction Loan Termination. Date, provided no EVENT OF DEFAULT has
occurred and is continuing, the Corn Oil Extraction Note shall convert to the Corn Oil
Extraction Term Note. Prior to maturity, the Corn Oil Extraction Term Note shall accrue
interest at the three month LIBOR RAT.E plus 300 basis points and interest, shall be payable
quarterly, in arrears, on the same days that principal installments are due. .After the
occurrence of an EVENT OF DEFALT or after the maturity date of the Corn Oil Extraction Term
Note, interest shall accrue at a rate equal to the one month LIBOR Rate plus 900 basis
points. The principal balance of the Corn Oil Extraction Term Note shall be payable in equal
quarterly installments of $90,000.00 payable on the 8th day of every third (3rd) month,
commencing three (3) months after the Corn Oil Extraction Loan Termination Date. All unpaid
principal and accrued interest under the Corn Oil Extraction Term Loan shall be due and
payable in full on the LOAN TERMINATION DATE applicable to the Corn Oil Extraction Term Note,
if not sooner paid,”

13. Borrower shall pay the Bank a commitment fee on the Corn Oil. Extraction Loan equal to
$45,000.00, which fee is earned and shall be payable upon the execution of this
Amendment.

 

 

 

14. The Corn Oil Extraction Note shall be disbursed in accordance with the draw procedures
set forth in Section 3 of the Loan Agreement for the CONSTRUCTION LOAN and the Disbursing
Agreement. Each DRAW REQUEST shall specify if it is a draw on the CONSTRUCTION LOAN or the Corn
Oil Extraction Loan. In addition, draws on the Corn Oil Extraction Loan shall be subject to the
conditions contained in Sections 422, 4.3 and 4.4 of the Loan Agreement.

15. Borrower’s notice address in Section 8.7 of the Loan Agreement is hereby
amended to 1554 N. 600 E., Union City, Indiana 47390, Fax. No. (765) 964-3349.

16. This Amendment shall not be effective until Bank shall have received each of the following
(each in form and substance acceptable to Bank) or the following conditions have been satisfied:

	 	(a).	 	This Amendment, duly executed by Borrower.

	 	(b).	 	The Corn Oil Extraction Note duly executed by Borrower.

	 	(c).	 	A First Amendment of Construction Loan Mortgage, Security Agreement, Assignment
of Leases and Rents and Fixture Financing Statement, duly executed by Borrower and in
recordable form.

	 	(d).	 	An endorsement to the title commitment issued to Bank to reflect the increase in
the principal amount of the OBLIGATIONS.

	 	(e).	 	A copy of all PLANS and PERMITS in connection with the oil extraction system and
equipment and all budgets relating to the purchase and installation of the oil
extraction system on the PROTECT.
	 
	 	(f).	 	An assignment of any contracts relating to the installation of the oil
extraction system on the PROJECT.
	 
	 	(g).	 	Such other matters as Bank may reasonably require.

17. Except as modified and amended herein, all other terms, provisions, conditions and
obligations imposed under the terms of the Loan Agreement and the other Loan Documents shall remain
in full force and effect and are hereby ratified and affirmed by Borrower. To the extent
necessary, the other Loan Documents are hereby amended to be consistent with the terms of this
Amendment.

 

 

 

18. Borrower certifies and reaffirms by its execution hereof that the representations and
warranties set forth in the Loan Agreement and the other Loan Documents are true as of this date,
and that no Event of Default under the Loan. Agreement or any other Loan Document, and no event
which, with the giving of notices or passage of time or both, would
become such an Event of Default, has occurred as of execution hereof.

19. This Amendment may be executed simultaneously in several counterparts, each of which shall
be deemed an original but which together shall constitute one and the same instrument.

[SIGNATURE PAGES FOLLOW]

 

 

 

IN WITNESS WHEREOF, the parties have executed and delivered this Amendment on the
date first written above.

	 	 	 	 	 
	 	FIRST NATIONAL BANK OF OMAHA,

a national banking association

 	 
	 	By:  	/s/ Fallon Savage
 	 
	 	 	Title:  Second Vice President  	 
	 	

CARDINAL ETHANOL, LLC an

Indiana limited liability company

 	 
	 	By:  	/s/ Troy Prescott
 	 
	 	 	Title:  President

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