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Maturity Date:
April 8, 2014
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$
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31,500,000.00
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FOR VALUE
RECEIVED, C ARDINAL
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 Thirty-One Million Five Hundred
Thousand and 00/100 Dollars ($31,500,000.00), 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 VARIABLE
RATE NOTE is executed pursuant to a Construction Loan Agreement
between BORROWER and BANK dated as of December 19
th , 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 based on
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, 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 VARIABLE RATE NOTE is subject to reduction
after a date six months subsequent to the COMPLETION 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.
PREPAYMENT. BORROWER may prepay this VARIABLE RATE NOTE in
full or 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. Any prepayment may be applied in inverse
orde
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