CORN OIL EXTRACTION TERM
NOTE
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$
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3,600,000.00
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Maturity Date:
April 8, 2014
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FOR VALUE
RECEIVED, CARDINAL
ETHANOL, LLC, an Indiana limited liability company
(“BORROWER”), promises to pay to the order of FIRST
NATIONAL BANK OF OMAHA (“BANK”), at its principal
office or such other address as BANK or holder may designate from
time to time, the principal sum of Three Million Six Hundred
Thousand and 00/100 Dollars ($3,600,000.00), or the amount shown on
BANK’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, BANK’s records
shall be conclusive evidence of the principal and accrued interest
owing hereunder.
This CORN OIL
EXTRACTION TERM NOTE is executed pursuant to a Construction Loan
Agreement between BORROWER and BANK dated as of December 19,
2006, (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 until maturity or the
occurrence of an EVENT OF DEFAULT based on the greater of
(i) the three month LIBOR RATE plus 300 basis points or
(ii) five percent (5%) as provided for in the AGREEMENT, and
at a rate equal to the three month LIBOR RATE plus 900 basis points
from time to time after maturity or the occurrence of an EVENT OF
DEFAULT, whether by acceleration or otherwise. Interest shall be
calculated on the basis of a 360-day year, counting the actual
number of days elapsed.
INCENTIVE
PRICING. The interest
rate applicable to this CORN OIL EXTRACTION TERM NOTE is subject to
reduction after a date six months subsequent to the 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 2.4 of the
AGREEMENT, as amended by that certain Fourth Amendment of
Construction Loan Agreement dated December 17, 2008. Any
remaining principal balance, plus any accrued but unpaid interest,
shall be fully due and payable on the Maturity Date listed above,
if not sooner paid.
PREPAYMENT. BORROWER may prepay this CORN OIL EXTRACTION
TERM NOTE in full or in part as may be permitted and provided for
in the AGREEMENT, provided, however, that any prepayment fees
pr
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