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Exhibit 4(a)

 

EXECUTION COPY

 

 

SEVENTH AMENDMENT TO CONSTRUCTION AND TERM

LOAN AGREEMENT  

THIS SEVENTH AMENDMENT TO CONSTRUCTION AND TERM LOAN AGREEMENT (this " Amendment "), dated as of September 4, 2009, is executed by and among LEVELLAND/HOCKLEY COUNTY ETHANOL, LLC, a Texas limited liability company (the " Borrower "), each of the Lenders or other lending institutions which is a signatory hereto or any successor or assignee thereof, and GE BUSINESS FINANCIAL SERVICES INC. (in its capacity as administrative agent for the Lenders, together with its successors in such capacity, the " Administrative Agent ").

R E C I T A L S:

A.           The Borrower, the Lenders, and the Administrative Agent are parties to that certain Construction and Term Loan Agreement, dated as of September 27, 2006, as amended by (a) that certain First Amendment to Construction and Term Loan Agreement and other Loan Documents dated as of August 10, 2007, (b) that certain Second Amendment to Construction and Term Loan Agreement dated as of February 15, 2008, (c) that certain Third Amendment to Construction and Term Loan Agreement dated as of February 19, 2008, (d) that certain Fourth Amendment to Construction and Term Loan Agreement dated as of May 31, 2008, (e) that certain Fifth Amendment to Construction and Term Loan Agreement dated as of May 31, 2008, and (f) that certain Sixth Amendment to Construction and Term Loan Agreement dated as of January 29, 2009 (as has been and may be amended, modified, supplemented or restated from time to time, the " Loan Agreement ").

B.           The Borrower, the Administrative Agent and the Required Lenders desire to amend the Loan Agreement and agree to the other matters as described herein, subject to the terms and conditions contained herein.

NOW, THEREFORE, in consideration of the premises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows intending to be legally bound:

ARTICLE I

 

Definitions

Section 1.1         Definitions . Capitalized terms used in this Amendment, to the extent not otherwise defined herein, shall have the same meanings as in the Loan Agreement, as amended hereby.

ARTICLE II

 

Amendments and Agreements

Section 2.1        Amendment to "Calculation Start Date" Definition . The definition of "Calculation Start Date" found in Section 1.1 of the Loan Agreement is amended and restated in its entirety to read as follows:

 

 

 

 


 

 

" Calculation Start Date " means July 1, 2009.

Section 2.2        EBITDAR Coverage Ratio . Section 6.10(a) of the Loan Agreement is amended by adding the following sentence thereto:

For clarity and avoidance of doubt, prior to the end of the Borrower's second quarter in fiscal year 2010, the term "annualized" means for the third quarter of fiscal year 2009, the applicable financial information for such quarter times four; for the fourth quarter of fiscal year 2009, the applicable financial information for such quarter and for the prior quarter times two; and for the first quarter of fiscal year 2010, the applicable financial information for such quarter and the two prior quarters times 1.33.

Section 2.3        Leverage Ratio . Section 6.10(b) of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

"(b)         Leverage Ratio . Beginning April 1, 2010,


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