REVOLVING CREDIT
SUPPLEMENT
Letters of Credit
THIS
SUPPLEMENT to the Master Loan Agreement dated November 20,
2006 (the “MLA”), is entered into as of
December 24, 2008 between FARM CREDIT SERVICES OF AMERICA,
FLCA (“Farm Credit”) and ABE FAIRMONT, LLC,
Fairmont, Nebraska (the “Company”), and amends and
restates the Supplement dated February 17, 2006 and numbered
RI0340S01, as amended.
SECTION 1. The
Revolving Credit Facility. On the terms and conditions set
forth in the MLA and this Supplement, Farm Credit agrees to make
loans to the Company during the period set forth below in an
aggregate principal amount not to exceed $2,000,000.00 at any one
time outstanding (the “Commitment”). Within the limits
of the Commitment, the Company may borrow, repay and
reborrow.
SECTION 2.
Purpose. The purpose of the Commitment is to allow the Company
to open irrevocable letters of credit for its account. Each letter
of credit will be issued within a reasonable period of time after
Agent’s receipt of a duly completed and executed copy of
Agent’s then current form of Application and Reimbursement
Agreement or, if applicable, in accordance with the terms of any
CoTrade Agreement between the parties, and shall reduce the amount
available under the Commitment by the maximum amount capable of
being drawn thereunder. Any draw under a letter of credit issued
hereunder shall be deemed a loan under the Commitment and shall be
repaid in accordance with this Supplement. Each letter of credit
must be in form and content acceptable to Agent and must expire no
later than the maturity date of the Commitment.
SECTION 3.
Term. The term of the Commitment shall be from the date hereof,
up to and including February 1, 2012, or such later date as
Agent may, in its sole discretion, authorize in writing.
SECTION 4.
Interest. The Company agrees to pay interest on the unpaid
balance of the loan(s) in accordance with one or more of the
following interest rate options, as selected by the
Company:
(A) One-Month LIBOR Index Rate. At a rate (rounded
upward to the nearest 1/100th and adjusted for reserves required on
“Eurocurrency Liabilities” [as hereinafter defined] for
banks subject to “FRB Regulation D” [as
hereinafter defined] or required by any other federal law or
regulation) per annum equal at all times to 310 basis points above
the annual rate quoted by the British Bankers Association (the
“BBA”) at 11:00 a.m. London time for the offering
of one (1)-month U.S. dollars deposits, as published by Bloomberg
or another major information vender listed on BBA’s official
website on the first U.S. Banking Day (as hereinafter defined) in
each week with such rate to change weekly on such day. The rate
shall be reset automatically, without the necessity of notice being
provided to the Company or any other party, on the first U.S.
Banking Day of each succeeding week, and each change in the rate
shall be applicable to all balances subject to this option.
Information about the then-current rate shall be made available
upon telephonic request. For purposes hereof: (1) “U.S.
Banking Day” shall mean a day on which Agent is open for
business and banks are open for business in New York, New York; (2)
“Eurocurrency Liabilities” shall have the meaning as
set forth in “FRB Regulation D”; and (3)
“FRB Regulation D” shall mean Regulation D as
promulgated by the Board of Governors of the Federal Reserve
System, 12 CFR Part 204, as amended.
(B) Quoted Rate. At a fixed rate per annum to be quoted
by Agent in its sole discretion in each instance. Under this
option, rates may be fixed on such balances and for such periods,
as may be
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Revolving
Credit Supplement Letters of Credit RI0340T03
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-2-
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ABE FAIRMONT,
LLC
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Fairmont,
Nebraska
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agreeable to
Agent in its sole discretion in e
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