AMENDMENT TO CREDIT AGREEMENT
Exhibit 10.1
COBANK
Amendment No. 00031748SLA-D
AMENDMENT TO CREDIT AGREEMENT
THIS AMENDMENT is entered into as of June 23, 2019, between LINCOLNWAY ENERGY, LLC Nevada,
Iowa, a limited liability company (the "Borrower"), and FARM CREDIT SERVICES OF AMERICA, FLCA and FARM CREDIT SERVICES OF AMERICA, PCA, a federally-chartered instrumentality of the United States ("Lender"). Capitalized terms used and not defined herein shall have the meanings assigned to
such terms in the Agreement (as defined below).
RECITALS
The Borrower and Lender are parties to Credit Agreement Number 00031748SLA dated as of July 3, 2017 (such agreement, as may be amended, hereinafter referred to as the "Agreement"). The Borrower and Lender now desire to amend the Agreement. For that reason, and for valuable consideration (the receipt and sufficiency of which are hereby
acknowledged), the Borrower and Lender agree as follows:
1. Article 7 of the Agreement is amended and restated to read as follows:
ARTICLE 7 Financial Covenants. Unless otherwise agreed to in
writing by Agent, while this Agreement is in effect:
7.1 Working Capital. The Borrower will have at the end of each period for which financial
statements are required to be furnished pursuant to this Agreement an excess of current assets over current liabilities of not less than $7,500.000.00, except that in determining current assets: (a) the note receivable related to the REI dryer
guarantee is to be excluded; and (b) any amount available under any revolving term promissory note with Lender (less the amount that would be considered a current liability if fully advanced hereto) may be included (all as determined in accordance
with the Accounting Standards).
7.2 Net Worth. The Borrower will have at the end of each period for which financial statements are required to be furnished pursuant to this Agreement an excess of total assets over total liabilities of not less than $25,000,000.00, except that in determining total assets, the note receivable related to
the REI dryer guarantee is to be excluded (all as determined in accordance with the Accounting Standards).
7.3 Debt Service Coverage Ratio. The Borrower
will have at the end of each fiscal year of the Borrower a Debt Service Coverage Ratio (as defined below) for such year of not less than 1.70 to 1.00. For purposes hereof, "Debt Service
Coverage Ratio" means: (a) net income (after taxes), plus depreciation and amortization, minus non-cash income from patronage/investments, minus extraordinary gains (plus losses), minus gains (plus losses) on
asset sales; divided by (b) 53,600,000.00 (all as determined in accordance with the Accounting Standards).
2. Except as expressly amended hereby, all of the representations, warranties, terms, covenants and
conditions contained in the Agreement and each other Loan Document shall remain un-amended and otherwise unmodified and in full force and effect.
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3. This Amendment may be executed in counterparts, each of which will constitute an original, but all of which when taken together will constitute a single contract. Delivery of an executed counterpart of a
signature page of this Amendment by facsimile or other electronic means will be as effective as delivery of a manually executed counterpart of this Amendment.
SIGNATURE PAGE FOLLOWS
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SIGNATURE PAGE TO AMENDMENT TO CREDIT AGREEMENT
IN WITNESS WHEREOF, the parties hereto, by their duly authorized officers, have executed this Agreement.
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By:
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/s/ Xxxxxxx X. Xxxxxxxxxx
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Name:
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Xxxxxxx X. Xxxxxxxxxx
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Title:
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President/CEO
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SIGNATURE PAGE TO AMENDMENT TO CREDIT AGREEMENT
IN WITNESS WHEREOF, the parties hereto, by their duly authorized officers, have executed this Agreement.
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FARM CREDIT SERVICES OF AMERICA, FLCA
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By:
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/s/ Xxx Xxxxxx
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Name:
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Xxx Xxxxxx
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Title:
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Vice President
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FARM CREDIT SERVICES OF AMERICA, PCA
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By:
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/s/ Xxx Xxxxxx
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Name:
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Xxx Xxxxxx
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Title:
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Vice President
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