AMENDMENT TO THE CONSTRUCTION AND TERM LOAN SUPPLEMENTConstruction Loan Agreement |
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Exhibit 10.2
Amendment No. RIO291T01B
AMENDMENT
TO THE
CONSTRUCTION AND TERM LOAN SUPPLEMENT
TO THE
CONSTRUCTION AND TERM LOAN SUPPLEMENT
THIS AMENDMENT is entered into as of May 30, 2007, between FARM CREDIT SERVICES OF AMERICA,
FLCA (Farm Credit) and WESTERN IOWA ENERGY, LLC, Wall Lake, Iowa (the Company).
BACKGROUND
Farm Credit and the Company are parties to a Construction and Term Loan Supplement dated June
6, 2005 (such agreement, as previously amended, is hereinafter referred to as the Supplement).
Farm Credit and the Company now desire to amend certain sections of the Supplement. For that
reason, and for valuable consideration (the receipt and sufficiency of which are hereby
acknowledged). Farm Credit and the Company agree that the following sections of the Supplement are
hereby amended to read as follows:
1. Section 6 of the Supplement is hereby amended and restated to read as follows:
SECTION 6. Promissory Note. The Company promises to repay the loans as follows: (i) in 20
equal, consecutive quarterly installments of $450,000.00 with the first such installment due on
December 20, 2006, and the last such installment due on September 20, 2011; and (ii) followed by a
final installment in an amount equal to the remaining unpaid principal balance of the loans on
December 20, 2011. If any installment due date is not a day on which Agent is open for business,
then such installment shall be due and payable on the next day on which Agent is open for business.
In addition to the above, the Company promises to pay interest on the unpaid principal balance
hereof at the times and in accordance with the provisions set forth in Section 5 hereof.
In addition, for each fiscal year end, beginning with the fiscal year ending in 2006, and ending
with the fiscal year ending in 2012, the Company shall also, within one-hundred twenty (120) days
after the end of such fiscal year, make a special payment of an amount equal to 50% of the Free
Cash Flow (as defined below) of the Company; provided, however, that: (i) if such payment would
result in a covenant default under this Supplement or the MLA, the amount of the payment shall be
reduced to an amount which would not result in a covenant default; (ii) if such payment would
result in a breakage of a fi






