Document:

Exhibit
10.17

 

LONG
TERM REVOLVING NOTE

 

	
  Note
  Date: February 26, 2010

  	
  $198,412.70

  
	
  Maturity Date:
  February 26, 2015

  	
   

  

 

FOR VALUE RECEIVED, HIGHWATER ETHANOL, LLC, a
Minnesota limited liability company (“BORROWER”), promises to pay to the order
of United FCS in care of FIRST NATIONAL BANK OF OMAHA (“AGENT”),  at its principal office or such other address
as AGENT or holder may designate from time to time, the principal sum of One
Hundred Ninety Eight Thousand Four Hundred Twelve and 70/100 Dollars ($198,412.70)
or the amount shown on AGENT’s records to be outstanding, plus interest
(calculated on the basis of actual days elapsed in a 360-day year) accruing
each day on the unpaid principal balance at the annual interest rates defined
below.  Absent manifest error, AGENT’s
records shall be conclusive evidence of the principal and accrued interest
owing hereunder.

 

This
LONG TERM REVOLVING NOTE is executed pursuant to a Construction Loan Agreement
between BORROWER and BANKS dated as of April 24, 2008, (the Construction
Loan Agreement, together with all amendments, modifications and supplements
thereto and all restatements and replacements thereof is called the “AGREEMENT”).  All capitalized terms not otherwise defined
in this note shall have the meanings provided in the AGREEMENT.

 

INTEREST ACCRUAL. 
Interest on the principal amount outstanding shall accrue at the rate
provided for in the AGREEMENT, adjusted as provided for in the AGREEMENT.  Interest shall be calculated on the basis of
a 360-day year, counting the actual number of days elapsed.

 

REVOLVING FEATURE. 
Subject to the MAXIMUM AVAILABILITY, BORROWER may reborrow, on a
revolving basis, that principal amount repaid on this LONG TERM REVOLVING
NOTE.  Pursuant to this revolving loan
feature BANK will lend BORROWER, from time to time until maturity of this LONG
TERM REVOLVING NOTE such sums as BORROWER may request by reasonable same day
notice to BANK, received by BANK not later than 11:00 A.M. on Friday, or
the next BANKING DAY thereafter, each week but which shall not exceed in the
aggregate principal amount at any one time outstanding, the MAXIMUM
AVAILABILITY then applicable to this LONG TERM REVOLVING NOTE.  BORROWER may borrow, repay and reborrow
hereunder, from the date of this LONG TERM REVOLVING NOTE until the maturity of
this LONG TERM REVOLVING NOTE, said amount or any lesser sum.

 

INCENTIVE PRICING.  The interest rate applicable
to this LONG TERM REVOLVING NOTE is subject to reduction after a date six
months subsequent to CONSTRUCTION LOAN TERMINATION DATE, as provided for in Section 2.15
of the AGREEMENT.

 

 

REPAYMENT TERMS.  Interest and
principal shall be due and payable at the times, in the amounts and applied in
the manner provided for in Section 2.5 of the AGREEMENT.  Any remaining principal balance, plus any
accrued but unpaid interest, shall be fully due and payable on the Maturity
Date, if not sooner paid.  On each
REDUCTION DATE and EXCESS CASH FLOW REDUCTION DATE, BORROWER shall pay and
apply to the then outstanding principal balance of this LONG TERM REVOLVING
NOTE the amount necessary to reduce the outstanding principal balance of this
LONG TERM REVOLVING NOTE so that it is within the MAXIMUM AVAILABILITY
applicable on each such REDUCTION DATE and/or EXCESS CASH FLOW REDUCTION DATE.

 

PREPAYMENT.  BORROWER
may prepay this LONG TERM REVOLVING NOTE in full or in part at any time;
provided, however, that any prepayment fees provided for in the AGREEMENT shall
be due at the time of any such prepayment. 
No payment applied to this LONG TERM REVOLVING NOTE to bring the
outstanding principal balance within the MAXIMUM AVAILABILITY shall be the
cause of a payment to BANK for interest rate breakage fees or otherwise result
in any prepayment fee.

 

ADDITIONAL
TERMS AND CONDITIONS.  This LONG
TERM REVOLVING NOTE is executed pursuant to the AGREEMENT.  The AGREEMENT, and any amendments or
substitutions thereof or thereto, contains additional terms and conditions,
including default and acceleration provisions, which are incorporated into this
LONG TERM REVOLVING NOTE by reference.

 

The aggregate unpaid principal amount hereof plus interest shall become
immediately due and payable without demand or further action on the part of
BANK upon the occurrence of an EVENT OF DEFAULT as set forth under the
AGREEMENT or any other LOAN DOCUMENT.  If
the maturity date of this LONG TERM REVOLVING NOTE is accelerated as a
consequence of an EVENT OF DEFAULT, then BANK shall have all the rights and
remedies provided for in the AGREEMENT, the other LOAN DOCUMENTS or otherwise available
at law or in equity.  The rights, powers,
privileges, options and remedies of BANK provided in the AGREEMENT, the other
LOAN DOCUMENTS or otherwise available at law or in equity shall be cumulative
and concurrent, and may be pursued singly, successively or together at the sole
discretion of BANK, and may be exercised as often as occasion therefor shall
occur.  No delay or discontinuance in the
exercise of any right, power, privilege, option or remedy shall be deemed a
waiver of such right, power, privilege, option or remedy, nor shall the
exercise of any right, power, privilege, option or remedy be deemed an election
of remedies or a waiver of any other right, power, privilege, option or
remedy.  Without limiting the generality
of the foregoing, BANK’s waiver of an EVENT OF DEFAULT shall not constitute a
waiver of acceleration in connection with any future EVENT OF DEFAULT.  BANK may rescind any acceleration of this
LONG TERM REVOLVING NOTE without in any way waiving or affecting any
acceleration of this LONG TERM REVOLVING NOTE in the future as a consequence of
an EVENT OF DEFAULT.  BANK’s acceptance
of partial payment or partial performance shall not in any way affect or
rescind any acceleration of this LONG TERM REVOLVING NOTE made by BANK.

 

 

Unless prohibited by law, BORROWER will pay on demand all reasonable
costs of collection, reasonable legal expenses and reasonable attorneys’ fees
and costs incurred or paid by BANK in collecting and/or enforcing this LONG
TERM REVOLVING NOTE.  Furthermore, BANK
reserves the right to offset without notice all funds held by BANK against
debts owing to BANK by BORROWER.

 

WAIVER OF PRESENTMENT AND NOTICE OF DISHONOR.  BORROWER and any other
person who signs, guarantees or endorses this LONG TERM REVOLVING 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 LONG TERM REVOLVING NOTE.

 

[SIGNATURE PAGE FOLLOWS]

 

 

Executed as of the Note Date first above written.

 

 

	
   

  	
  HIGHWATER
  ETHANOL, LLC, a Minnesota limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian Kletscher

  
	
   

  	
  Title:

  	
  CEOExhibit
10.18

 

LONG
TERM REVOLVING NOTE

 

	
  Note
  Date: February 26, 2010

  	
  $992,063.49

  
	
  Maturity Date:
  February 26, 2015

  	
   

  

 

FOR VALUE RECEIVED, HIGHWATER ETHANOL, LLC, a
Minnesota limited liability company (“BORROWER”), promises to pay to the order
of Agstar Financial Services, PCA in care of FIRST NATIONAL BANK OF OMAHA (“AGENT”),
at its principal office or such other address as AGENT or holder may designate
from time to time, the principal sum of Nine Hundred Ninety Two Thousand Sixty
Three and 49/100 Dollars ($992,063.49) or the amount shown on AGENT’s records
to be outstanding, plus interest (calculated on the basis of actual days
elapsed in a 360-day year) accruing each day on the unpaid principal balance at
the annual interest rates defined below. 
Absent manifest error, AGENT’s records shall be conclusive evidence of
the principal and accrued interest owing hereunder.

 

This
LONG TERM REVOLVING NOTE is executed pursuant to a Construction Loan Agreement
between BORROWER and BANKS dated as of April 24, 2008, (the Construction
Loan Agreement, together with all amendments, modifications and supplements
thereto and all restatements and replacements thereof is called the “AGREEMENT”).  All capitalized terms not otherwise defined
in this note shall have the meanings provided in the AGREEMENT.

 

INTEREST ACCRUAL. 
Interest on the principal amount outstanding shall accrue at the rate
provided for in the AGREEMENT, adjusted as provided for in the AGREEMENT.  Interest shall be calculated on the basis of
a 360-day year, counting the actual number of days elapsed.

 

REVOLVING FEATURE. 
Subject to the MAXIMUM AVAILABILITY, BORROWER may reborrow, on a
revolving basis, that principal amount repaid on this LONG TERM REVOLVING
NOTE.  Pursuant to this revolving loan
feature BANK will lend BORROWER, from time to time until maturity of this LONG
TERM REVOLVING NOTE such sums as BORROWER may request by reasonable same day
notice to BANK, received by BANK not later than 11:00 A.M. on Friday, or
the next BANKING DAY thereafter, each week but which shall not exceed in the
aggregate principal amount at any one time outstanding, the MAXIMUM
AVAILABILITY then applicable to this LONG TERM REVOLVING NOTE.  BORROWER may borrow, repay and reborrow
hereunder, from the date of this LONG TERM REVOLVING NOTE until the maturity of
this LONG TERM REVOLVING NOTE, said amount or any lesser sum.

 

INCENTIVE PRICING.  The interest rate applicable
to this LONG TERM REVOLVING NOTE is subject to reduction after a date six
months subsequent to CONSTRUCTION LOAN TERMINATION DATE, as provided for in Section 2.15
of the AGREEMENT.

 

 

REPAYMENT TERMS.  Interest and
principal shall be due and payable at the times, in the amounts and applied in
the manner provided for in Section 2.5 of the AGREEMENT.  Any remaining principal balance, plus any
accrued but unpaid interest, shall be fully due and payable on the Maturity
Date, if not sooner paid.  On each
REDUCTION DATE and EXCESS CASH FLOW REDUCTION DATE, BORROWER shall pay and apply
to the then outstanding principal balance of this LONG TERM REVOLVING NOTE the
amount necessary to reduce the outstanding principal balance of this LONG TERM
REVOLVING NOTE so that it is within the MAXIMUM AVAILABILITY applicable on each
such REDUCTION DATE and/or EXCESS CASH FLOW REDUCTION DATE.

 

PREPAYMENT.  BORROWER
may prepay this LONG TERM REVOLVING NOTE in full or in part at any time;
provided, however, that any prepayment fees provided for in the AGREEMENT shall
be due at the time of any such prepayment. 
No payment applied to this LONG TERM REVOLVING NOTE to bring the
outstanding principal balance within the MAXIMUM AVAILABILITY shall be the
cause of a payment to BANK for interest rate breakage fees or otherwise result
in any prepayment fee.

 

ADDITIONAL
TERMS AND CONDITIONS.  This LONG TERM
REVOLVING NOTE is executed pursuant to the AGREEMENT.  The AGREEMENT, and any amendments or
substitutions thereof or thereto, contains additional terms and conditions,
including default and acceleration provisions, which are incorporated into this
LONG TERM REVOLVING NOTE by reference.

 

The aggregate unpaid principal amount hereof plus interest shall become
immediately due and payable without demand or further action on the part of
BANK upon the occurrence of an EVENT OF DEFAULT as set forth under the AGREEMENT
or any other LOAN DOCUMENT.  If the
maturity date of this LONG TERM REVOLVING NOTE is accelerated as a consequence
of an EVENT OF DEFAULT, then BANK shall have all the rights and remedies
provided for in the AGREEMENT, the other LOAN DOCUMENTS or otherwise available
at law or in equity.  The rights, powers,
privileges, options and remedies of BANK provided in the AGREEMENT, the other
LOAN DOCUMENTS or otherwise available at law or in equity shall be cumulative
and concurrent, and may be pursued singly, successively or together at the sole
discretion of BANK, and may be exercised as often as occasion therefor shall
occur.  No delay or discontinuance in the
exercise of any right, power, privilege, option or remedy shall be deemed a
waiver of such right, power, privilege, option or remedy, nor shall the
exercise of any right, power, privilege, option or remedy be deemed an election
of remedies or a waiver of any other right, power, privilege, option or
remedy.  Without limiting the generality
of the foregoing, BANK’s waiver of an EVENT OF DEFAULT shall not constitute a
waiver of acceleration in connection with any future EVENT OF DEFAULT.  BANK may rescind any acceleration of this
LONG TERM REVOLVING NOTE without in any way waiving or affecting any acceleration
of this LONG TERM REVOLVING NOTE in the future as a consequence of an EVENT OF
DEFAULT.  BANK’s acceptance of partial
payment or partial performance shall not in any way affect or rescind any
acceleration of this LONG TERM REVOLVING NOTE made by BANK.

 

 

Unless prohibited by law, BORROWER will pay on demand all reasonable
costs of collection, reasonable legal expenses and reasonable attorneys’ fees
and costs incurred or paid by BANK in collecting and/or enforcing this LONG
TERM REVOLVING NOTE.  Furthermore, BANK
reserves the right to offset without notice all funds held by BANK against
debts owing to BANK by BORROWER.

 

WAIVER OF PRESENTMENT AND NOTICE OF DISHONOR.  BORROWER and any other
person who signs, guarantees or endorses this LONG TERM REVOLVING 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 LONG TERM REVOLVING NOTE.

 

[SIGNATURE PAGE FOLLOWS]

 

 

Executed as of the Note Date first above written.

 

 

	
   

  	
  HIGHWATER
  ETHANOL, LLC, a Minnesota limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian Kletscher

  
	
   

  	
  Title:

  	
  CEO

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