Amendment dated February 23, 2018 to the Credit Agreement dated July 3, 2017 between the Company and Farm Credit Services of America, FLCA and Farm Credit Services of America, PCA

 

THIS AMENDMENT is entered into as of  February 23, 2018, 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 (collectively, "Lender"), a federally-chartered instrumentality of the United States. Capitalized terms used and not defined herein shall have the meanings assigned to such terms in the Agreement (as defined below).

1.             Article 7 of the Agreement will be amended by adding Subsection 7.3 as follows:

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 1.50 to 1.00.  For purposes hereof, “Debt Service Coverage Ratio” means: (a) net income (after taxes), plus depreciation and amortization, minus non-cash investment income (plus loss), minus extraordinary gains (plus losses), minus gain (plus loss) on asset sale; divided by (b) $3,600,000.00 (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 unamended and otherwise unmodified and in full force and effect.

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.