On March 30, 2022, Cardinal Ethanol, LLC and its primary lender, First National Bank of Omaha, executed an Eighteenth Amendment of First Amended and Restated Construction Loan Agreement, to be effective as of February 28, 2022, which amends the First Amended and Restated Construction Loan Agreement dated June 10, 2013. The primary purposes of the Amendment are to provide additional financing to fund the construction and installation of a system to produce high protein feed at the plant and extend the termination date of the Revolving Credit Loan to February 28, 2023. The Amendment increases the maximum availability of the Declining Revolving Credit Loan from $5,000,000 to $36,000,000 and provides for an interest rate based on the prime rate minus five basis points (0.05%) subject to a floor of 2.85%.

The Company will be required to make monthly interest payments on the Declining Revolving Credit Loan during the draw period. The principal balance of the Declining Revolving Credit Loan is expected to be converted to term debt on or before February 1, 2024, to be repaid in 60 equal monthly installments based on a ten year amortization period. In addition, the Company will be required to make mandatory annual prepayments on the term debt within 120 days following the end of each fiscal year beginning with the fiscal year ended September 30, 2024.

The annual prepayment will be in the amount of the lesser of 40% of Excess Cash Flow (as defined in the Amendment) or $7,200,000, up to an aggregate amount paid of $18,000,000.