##### 



Exhibit 10.18
 REIMBURSEMENT AGREEMENT
 between
 FIRST UNITED ETHANOL, LLC
 and
 SOUTHWEST GEORGIA FARM CREDIT, ACA
 Dated as of November 30, 2006
 $53,500,000
Mitchell County Development Authority,
Variable Rate Demand Taxable Economic Development Revenue Bonds
Series 2006 (First United Ethanol, LLC Project)
 and
 $29,000,000
Mitchell County Development Authority,
Variable Rate Demand Solid Waste Disposal Revenue Bonds
Series 2006 (First United Ethanol, LLC Project )
 Prepared by:
    
    Patrick F. Brown, Esq.Nexsen Pruet Adams Kleemeier, PLLC201 South Tryon Street, Suite 1200Charlotte, North Carolina 28202(phone) 704-338-5314(fax) 704-338-5377




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TABLE OF CONTENTS
 PageARTICLE I DEFINITIONS AND OTHER TERMS
    
    
    6Section 1.01. Certain Defined Terms
    
    
    6Section 1.02. Accounting and Other Terms
    
    
    11ARTICLE II LETTERS OF CREDIT
    
    
    11Section 2.01. The Letters of Credit
    
    
    11Section 2.02. Reimbursement, Security and Other Payments
    
    
    11Section 2.03. Reduction and Termination of Letter of Credit Commitment
    
    
    13Section 2.04. Reimbursement Agreement Note
    
    
    13Section 2.05. Fees
    
    
    14Section 2.06. Interest
    
    
    15Section 2.07. Quarterly Free Cash Flow Payments and Redemption of Bonds
    
    
    15Section 2.08. Obligations Absolute; No Defense or Set-Off
    
    
    16Section 2.09. Pledged Bonds
    
    
    16ARTICLE III CONDITIONS OF ISSUING THE LETTERS OF CREDIT
    
    
    18Section 3.01. Conditions
    
    
    18Section 3.02. Equity Capital and Subordinate Bonds
    
    
    22ARTICLE IV DISBURSEMENT OF FUNDS FOR CONSTRUCTION
    
    
    23Section 4.01. Disbursement of Equity Capital, Bond Proceeds and Equity
Earnings for Construction of the Project
    
    
    23Section 4.02. Direct Advances
    
    
    26Section 4.03. Representations and Warranties
    
    
    26Section 4.04. Additional Information
    
    
    26Section 4.05. Delivery of Funds
    
    
    26ARTICLE V REPRESENTATIONS AND WARRANTIES
    
    
    26Section 5.01. Existence
    
    
    27Section 5.02. Authorization
    
    
    27Section 5.03. Validity
    
    
    27Section 5.04. Financial Condition
    
    
    27Section 5.05. Litigation
    
    
    27




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PageSection 5.06. Agreements and Orders
    
    
    27Section 5.07. Contingent Liabilities
    
    
    28Section 5.08. Taxes
    
    
    28Section 5.09. Ownership and Encumbrances
    
    
    28Section 5.10. Consents
    
    
    28Section 5.11. Permits and Approvals
    
    
    28Section 5.12. Disclosure
    
    
    28Section 5.13. Environmental Laws
    
    
    29Section 5.14. Margin Stock
    
    
    29Section 5.15. Other Agreements
    
    
    29Section 5.16. Labor Disputes and Casualties
    
    
    29Section 5.17. Contract or Restriction Affecting the Borrower
    
    
    30Section 5.18. Trademarks, Franchises and Licenses
    
    
    30Section 5.19 No Default
    
    
    30Section 5.20 ERISA Requirements
    
    
    30Section 5.21 Solvency
    
    
    30ARTICLE VI COVENANTS
    
    
    30Section 6.01. Covenants as to Corporate Existence
    
    
    30Section 6.02. The Project
    
    
    30Section 6.03. Insurance
    
    
    31Section 6.04 Reports
    
    
    31Section 6.05. Material Adverse Change
    
    
    31Section 6.06. Maintenance of Records
    
    
    31Section 6.07. Inspections
    
    
    31Section 6.08. Financial Statements
    
    
    32Section 6.09. Warranties
    
    
    32Section 6.10. Accuracy of Information
    
    
    32Section 6.11. Payment of Taxes, Assessments, etc.
    
    
    32Section 6.12. Compliance with Laws
    
    
    33Section 6.13. Environmental Covenants
    
    
    33Section 6.14. Negative Covenants
    
    
    33Section 6.15. Financial Ratio
    
    
    34Section 6.16. Working Capital
    
    
    34




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PageSection 6.17. Equity Percentage
    
    
    34Section 6.18. Member Distributions
    
    
    34Section 6.19. Additional Member Distributions
    
    
    34Section 6.20. Capital Expenditures
    
    
    34Section 6.21. Additional Borrowings
    
    
    34Section 6.22. Change of Control
    
    
    35Section 6.23. Material Changes
    
    
    35Section 6.24. Additional Information
    
    
    35Section 6.25. Incorporation of Certain Covenants
    
    
    35Section 6.26. Capital Calls
    
    
    35Section 6.27. Reserve Account
    
    
    35Section 6.28. Quarterly Deposits to Redemption Fund; Quarterly Redemption
of Bonds.
    
    
    36Section 6.29. Excess Bond Proceeds
    
    
    37ARTICLE VII DEFAULT AND REMEDIES
    
    
    37Section 7.01. Events of Default
    
    
    37Section 7.02. Remedies Upon Default
    
    
    39Section 7.03. Right of Set-Off
    
    
    40Section 7.04. Acceleration of Reimbursement
    
    
    40Section 7.05. Additional Remedies
    
    
    40Section 7.06. No Remedy Exclusive
    
    
    41Section 7.07. Agreement to Pay Attorneys Fees
    
    
    41Section 7.08. No Additional Waiver Implied by One Waiver
    
    
    41Section 7.09. Remedies Subject to Applicable Law
    
    
    41ARTICLE VIII INDEMNIFICATION
    
    
    42Section 8.01. General Matters
    
    
    42Section 8.02. Letter of Credit Matters
    
    
    42Section 8.03. Liability of the Credit Provider
    
    
    43ARTICLE IX MISCELLANEOUS
    
    
    43Section 9.01. No Waiver; Cumulative Remedies
    
    
    43Section 9.02. Marshalling
    
    
    44Section 9.03. Amendments and Waivers
    
    
    44




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PageSection 9.04. Notices
    
    
    44Section 9.05. Costs and Expenses
    
    
    44Section 9.06. Credit Provider Expenditures
    
    
    45Section 9.07. Miscellaneous Payment Provisions
    
    
    45Section 9.08. Participations
    
    
    46Section 9.09. Governing Law
    
    
    46Section 9.10. Headings and Table of Contents
    
    
    46Section 9.11. Rules of Construction
    
    
    46Section 9.12. Continuing Representations
    
    
    46Section 9.13. Binding Effect
    
    
    46Section 9.14. Records
    
    
    46Section 9.15. Severability
    
    
    47Section 9.16. Materiality
    
    
    47Section 9.17. Waiver of Jury Trial
    
    
    47Section 9.18. Integration
    
    
    47Section 9.19. Execution in Counterparts
    
    
    47Exhibit 2.01A Form of Irrevocable Letter of Credit (Tax-Exempt Bonds)
    
    
    50Exhibit 2.01B Form of Irrevocable Letter of Credit (Taxable Bonds)
    
    
    64Exhibit 2.04 Form of Reimbursement Agreement Note
    
    
    78Exhibit 2.07 Cash Sweep Percentage Matrix
    
    
    81Exhibit 5.05 Litigation and Claims
    
    
    82Exhibit 5.07 Contingent Liabilities
    
    
    83Exhibit 6.03 Insurance
    
    
    84Exhibit 6.28 Optional Redemption Schedule
    
    
    93Exhibit 6.28A Optional Redemption Schedule of Tax Exempt Bonds
    
    
    94Exhibit 6.28B Optional Redemption Schedule of Taxable Bonds
    
    
    95




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REIMBURSEMENT AGREEMENT
 First United Ethanol, LLC Borrower" Southwest Georgia Farm Credit,
ACA, Credit Provider"
 BACKGROUND
 Authority" Tax Exempt Bonds ( Taxable Bonds Bonds )
 Trustee Trust Indenture Trust Indentures
 Loan Agreement and together the Loan Agreements
 Project
 Letter of Credit A Letter of Credit B Letter
of Credit Letters of Credit




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ARTICLE I
 DEFINITIONS AND OTHER TERMS
 Certain Defined Terms
 2006 Financial Statements
 Action
 Advance Rate The Wall Street
Journal 1 2 .
 Agreement
 Audited Financial Statements
 Authority
 Bankruptcy Code et seq.
 Bond Documents
 Bonds
 Borrower
 7




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Business Day
 Closing Date
 Code
 Collateral
 Confirming Letter of Credit Confirming Bank
 Consolidated Audited Financial Statements
 Construction Contract Builder
 Credit Facility Agreement
 Credit Provider
 Deed to Secure Debt
 Default Rate
 8




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Drawing
 Environmental Indemnification Agreement
 Environmental Laws
 ERISA
 ERISA Affiliate
 Event of Default
 FASB
 Fiscal
 GAAP
 Governmental Authorities
 Hazardous Substances
 9




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Indebtedness
 Initial Expiry Date and Final Expiry Date
 Letter of Credit A, Letter of Credit B and Letters of Credit
 Letter of Credit Fee
 LIBOR Rate
 Licenses
 Line of Credit
 Loan Agreements
 Long Term Indebtedness
 Multi-employer Plan
 Official Statement
 PBGC
 Person
 Plan
 10




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Pledge and Security Agreement
 Pledged Bonds
 Potential Default
 Prohibited Transaction
 Project
 Project Fund
 Property
 Reimbursement Documents
 Reimbursement Agreement Note
 Reportable Event
 Stated Amount
  Subordinate Bonds
 Subsidiary
 11




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Trust Indenture(s)
 Trustee
 Unaudited Financial Statements
 Uniform Commercial Code
 Accounting and Other Terms.
   ARTICLE II
 LETTERS OF CREDIT
 The Letters of Credit Exhibit 2.01A Exhibit 2.01B Initial Expiry Date Final Expiry Date
 12




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Reimbursement, Security and Other Payments.
 plus
   13
        Reduction and Termination of the Letters of Credit.
     Reimbursement Agreement Note.
 14




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Reimbursement Agreement Note" Exhibit 2.04
 provided, however
 Fees.
      15




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Interest.
   Quarterly Free Cash Flow Payments and Redemption of Bonds
  plus minus 16
       minus minus
 Exhibit 2.07
    Obligations Absolute; No Defense or Set-Off.
 17




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provided however
 Pledged Bonds
     18
         Debt Service Reserve. Debt Service Reserve Account Reserve Requirement Reserve Shortfall
 ARTICLE III
 CONDITIONS OF ISSUING THE LETTERS OF CREDIT
 Conditions
 Resolutions 19
        Issuance of Bonds.
 Letter of Credit Fees.
 No Litigation
 Organizational Documents
 Opinion of Counsel
 Bond Purchase Agreement
 Insurance
 Title Policy 20
        Incumbency Certificate
 Survey
  Additional Evidence
 Documentation
 Environmental Audit
 21




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Appraisals.
 Project Documents.
 Site Plan: Plans and Specifications.
 Budget/Schedule.
 Construction Review Agent
 Engineering Reports
 Construction Contract
 [Reserved]
 22




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Builders Financial Statements; Payment and Performance Bonds.
 Access/Egress/Utilities.
 Zoning and Building Permits.
 Risk Management Plan
 UCC Search.
 Additional Documents
 Documents Satisfactory to Credit Provider
 23




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Additional Capital
 Equity Capital and Subordinate Bonds.
 $71,600,000 $10,000,000
  Additional Conditions Precedent.
  24




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ARTICLE IV
 DISBURSEMENT OF FUNDS FOR CONSTRUCTION
 Disbursement of Equity Capital, Bond Proceeds and Equity Earnings for
Construction of the Project
 Construction Review Agent
  25




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26




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2
 Direct Advances
 Representations and Warranties
 Additional Information
 27




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Delivery of Funds
 ARTICLE V
 REPRESENTATIONS AND WARRANTIES
  Existence
 Authorization.
 Validity.
 Financial Statements.
 28




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Litigation. Schedule 5.05 Action
 Agreements and Orders.
 Contingent Liabilities. Schedule 5.07
 Taxes.
 Ownership and Encumbrances.
 Consents.
 29




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Permits and Approvals. Licenses
 Disclosure.
 Environmental Laws.
   Margin Stock.
 30




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Other Agreements.
 Labor Disputes and Casualties.
 Contract or Restriction Affecting the Borrower
 Trademarks, Franchises and Licenses
 No Default
 ERISA Requirements
 31




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Solvency
 ARTICLE VI
 COVENANTS
  Covenants as to Corporate Existence.
   The Project
 Insurance. Schedule
6.03
 Reports.
   32




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Material Adverse Change
 Maintenance of Records.
 Inspections.
 Financial Statements.
  Monthly Reports
 33
         Warranties.
 Accuracy of Information.
 Payment of Taxes, Assessments, etc.
 Compliance with Laws.
 Environmental Covenants.
 34




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Negative Covenants.
     Financial Ratio. minus minus divided by
 Working Capital
 Equity Percentage divided by
 35




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Member Distributions
 Additional Member Distributions
 Capital Expenditures Exhibit 2.07
 Additional Borrowings
 Change of Control
 Material Changes
 Additional Information
 Incorporation of Certain Covenants.
 Capital Calls.
  36




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Reserve Account
 Deposits to Redemption Fund; Quarterly Redemption of Bonds
 Deposits to the Credit Provider
 Required Quarterly Bond Redemptions
 Lien and Investments
 37




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Excess Funds
 Cash Flow Redemptions
 Excess Bond Proceeds
  ARTICLE VII
 DEFAULT AND REMEDIES
 Events of Default.
  38




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39
             Remedies Upon Default.
   40




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Right of Set-Off
 41




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Acceleration of Reimbursement
 Additional Remedies
 No Remedy Exclusive
 42




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Agreement to Pay Attorneys Fees
 No Additional Waiver Implied by One Waiver
 Remedies Subject to Applicable Law
 ARTICLE VIII
 INDEMNIFICATION
 General Matters
 43




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Letter of Credit Matters
 Liability of the Credit Provider
 44




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ARTICLE IX
 MISCELLANEOUS
 No Waiver; Cumulative Remedies
 Marshalling.
 Amendments and Waivers.
 Notices.
  To Borrower:
    
    First United Ethanol, LLC2 West Broad StreetCamilla, Georgia 31730
 45




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Attention: Anthony Flag(229) 522-2822(229) 522-2824 faxflag@firstunitedethanol.comTo Credit Provider:
    
    Southwest Georgia Farm Credit411 West Broughton StreetBainbridge, Georgia 39818Attention: Ted Murkerson(229) 248-0048 ext 112(229) 248-0054 faxtmurkerson@swgafarmcredit.com
  Costs and Expenses.
 46




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Credit Provider Expenditures.
 Miscellaneous Payment Provisions.
    Participations.
 Governing Law.
 Headings and Table of Contents.
 47




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Rules of Construction.
 Continuing Representations.
 Binding Effect.
 Records.
 Severability.
 Materiality.
 Waiver of Jury Trial. FORUM NON
CONVENIENS
 48




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Integration.
 Execution in Counterparts.
  49




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FIRST UNITED ETHANOL, LLCBy:
    
    /s/ Murray CampbellName:
Title:
    
    Murray Campbell
ChairmanSOUTHWEST GEORGIA FARM CREDIT, ACABy:
Name:
    
    /s/ Ted R. Murkerson

Ted R. MurkersonTitle:
    
    Capital Markets Administrator
 50




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EXHIBIT 2.01A  FORM OF IRREVOCABLE LETTER OF CREDIT  (TAX-EXEMPT BONDS)
  
 th
   29,000,000
 29,000,000
 51




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52




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th th
 53




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54




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55




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th
   Yours very truly,Southwest Georgia Farm Credit, ACABy:Name:Title:
 56




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Certificate for A Drawing
 
  
  
 
 as TrusteeBy:Name:Title:
 57




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Certificate for B Drawing
 
  
  
 as TrusteeBy:Name:Title:
 58




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Certificate for C Drawing
 
  
   Certificate Number(if applicable)
    
    Principal Amount
 Total
    
    
    
    
    $
 59




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By:Name:Title:
 60




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Reimbursement Notice
 
   (if applicable)
    
    Principal Amount
 Total
    
    
    
    
    $
 
 
 
 
 By:Name:Title:
 61




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Certificate for Cancellation
 
     
 , as TrusteeBy:Name:Title:
 62




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Transfer Letter
  
 
  
     ,as TrusteeBy:Name:Title:
 63




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,City
    
    State
 TO:
    
    Southwest Georgia Farm Credit, ACA411 West Broughton StreetBainbridge, Georgia 39818
Attention:
 At sitePAY TO:
    
    Wells Fargo Bank, N.A., as Trustee(BENEFICIARYS NAME)
 
 Wells Fargo Bank, N.A.,Corporate Trust Agents11th FloorMAC P6101-114Portland, Oregon 97201
 Attention:ABA No:Account No:,As Trustee
 By:(Authorized Officer)
 64




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EXHIBIT 2.01B  FORM OF IRREVOCABLE LETTER OF CREDIT  (TAXABLE BONDS)
  
 th
   53,500,000
 53,500,000
 65




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66




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th th
 67




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68




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69




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th
     By:Name:Title:
 70




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Certificate for A Drawing
 
  
  
 
 as TrusteeBy:Name:Title: 71




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Certificate for B Drawing
 
  
  
 as TrusteeBy:Name:Title:
 72




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Certificate for C Drawing
 
  
   Certificate Number(if applicable)
    
    Principal Amount
 
 73




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By:Name:
Title:
 74




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Reimbursement Notice
 
   (if applicable)
    
    Principal Amount
 
 
 
 
 , as TrusteeBy:Name:
Title:
 75




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Certificate for Cancellation
 
   
  
 , as TrusteeBy:Name:
Title:
 76




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Transfer Letter
  
 
  
     
  By:Name:Title: 77




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,City
    
    State
 TO:
    
    Southwest Georgia Farm Credit, ACA
411 West Broughton Street
Bainbridge, Georgia 39818
Attention:
  PAY TO:
    
    Wells Fargo Bank, N.A., as Trustee
                (BENEFICIARYS NAME)
 
 Wells Fargo Bank, N.A.Corporate Trust Department1300 SW Fifth Avenue11th FloorMAC P6101-114Portland, Oregon 97201Attention:ABA No:Account No:As TrusteeBy:(Authorized Officer)
 78




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EXHIBIT 2.04
 FORM OF REIMBURSEMENT AGREEMENT NOTE
 REIMBURSEMENT AGREEMENT NOTE
 FIRST UNITED ETHANOL, LLC SOUTHWEST GEORGIA FARM CREDIT, ACA Bank" Principal Sum" Reimbursement Agreement"
   The
Wall Street Journal 1 2
 79




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80




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FIRST UNITED ETHANOL, LLC, a
Georgia limited liability company.By:Name:Title:By:Name:Title: 81




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EXHIBIT 2.07
  Level 1
    
    Level 2
    
    Level 3< 60%
    
    < 50%Equity Ratio
    

> 60%
    
    3 50%
    
    3 40%Cash Sweep Percentage
    
    
    20
    %
    
    
    40
    %
    
    
    60
    %Maximum Cash Sweep
    
    $
    1,000,000
    
    
    $
    2,000,000
    
    
    $
    2,000,000Maximum Capital Expenditures
    
    $
    3,000,000
    
    
    $
    1,500,000
    
    
    $
    800,000
 82




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EXHIBIT 5.05
 LITIGATION AND CLAIMS
  83




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EXHIBIT 5.07
 CONTINGENT LIABILITIES
  84




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EXHIBIT 6.03
 INSURANCE
         85




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Adjustment of Losses.
   86




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Application of Payments
 Evidence of Insurance
 No Duty to Verify
 Duty to Inform the Agent of Unavailability of Deductibles.
  Commercial General Liability
 87




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Automobile Liability.
 Workers Compensation
 Umbrella or Excess Liability
 Directors and Officers Insurance.
 Aircraft Liability
   88




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Builders Risk.
  Delay in Startup
 Marine Cargo (to the extent such transportation is used).
 Contractors Pollution Legal Liability.
 89




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Insurance Required of Contractors and Subcontractors
 (i)
    
    Include Borrower and Credit Provider as
additional insureds;(ii)
    
    Be primary as respects insurance provided
Borrower and Credit Provider as additional insured;(iii)
    
    Waive rights of subrogation against Borrower
and Credit Provider as additional insured;(iv)
    
    Continue in force until obligations of
contractor and subcontractor are fulfilled.
 Professional Liability
   Property / Machinery Breakdown
 90




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Business Interruption
  Subcontractors Insurance.
 (i)
    
    Except for the workers compensation insurance,
name Borrower and Credit Provider as additional insureds;(ii)
    
    Be primary as respects insurance provided
Borrower and Credit Provider;(iii)
    
    Waive rights of subrogation against Borrower
and Credit Provider;(iv)
    
    Continue in force until obligations of such
subcontractor is fulfilled.
    91




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92




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93




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EXHIBIT 6.28
 OPTIONAL REDEMPTION SCHEDULE
 94




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EXHIBIT 6.28A
 OPTIONAL REDEMPTION SCHEDULE OF TAX EXEMPT BONDS
 95




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EXHIBIT 6.28B
 OPTIONAL REDEMPTION SCHEDULE OF TAXABLE BONDS
 96