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&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;Agrinatural obtained a line of credit with lending institution in September&amp;#160;2012 which provided up to $600,000 until March&amp;#160;31, 2013. Interest was charged at 5.43%. On January&amp;#160;1, 2013, this line of credit was replaced by a note payable which is included in Note 8 below.&lt;/font&gt;&lt;/p&gt;
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&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;On May&amp;#160;17, 2013, the Company renegotiated its revolving term loan with AgStar to extend the maturity date of the revolving term loan to September&amp;#160;2016. Amounts borrowed by the Company under the term revolving term loan can be repaid and may be re-borrowed at any time prior to maturity date of the term revolving loan, provided that outstanding advances may not exceed the amount of the term revolving loan commitment. Amounts outstanding on the term revolving loan bear interest at a variable rate equal to the greater of a LIBOR rate plus 3.50% or 5.0%, payable monthly.&amp;#160; At July&amp;#160;31, 2013, revolving term loan carried an interest rate of 5.00%.&amp;#160; The Company also pays an unused commitment fee on the unused portion of the term revolving term loan commitment at the rate of 0.35% per annum, payable in arrears in quarterly installments during the term of the evolving term loan.&amp;#160; At July&amp;#160;31, 2013, the Company had approximately $20.5 million available under the revolving term loan.&amp;#160; The amount available under the revolving term loan is reduced by $2 million at October&amp;#160;31&lt;/font&gt;&lt;font style="POSITION: relative; FONT-SIZE: 6.5pt; TOP: -3pt;" size="1"&gt;st&lt;/font&gt;&lt;font style="FONT-SIZE: 10pt;" size="2"&gt;&amp;#160;each year until September&amp;#160;2016 when the unpaid balance is due.&amp;#160; The revolving term loan is secured by substantially all business assets and is subject to various financial and non-financial covenants as described in Note 8.&lt;/font&gt;&lt;/p&gt;
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