EXHIBIT 10.18


 


	
  THE IOWA STATE
  BAR ASSOCIATION

  Official Form No. 136

  	
  Miranda L. Hughes

  	
  FOR THE LEGAL EFFECT OF THE USE OF

  THIS FORM, CONSULT YOUR LAWYER

  
	
   

  	
   

  	
   

  
	
  

  	
  PROMISSORY NOTE

  	
   

  
	
   

  
	
   

  
	
   

  	
   

  	
   

  
	
  $3,100,000.00 

  	
   

  	
  May 21, 2007

  



 


FOR
VALUE RECEIVED, the undersigned, each as principal, jointly and severally,
promise(s) to pay to the order of Rawhide Management, L.L.C. at 3500 S.
Phillips Avenue, Suite 241, Sioux Falls, SD 57105, Iowa, the sum of THREE
MILLION ONE HUNDRED THOUSAND AND 0/100 ($3,100,000.00) DOLLARS with interest
thereon from above date, payable as below at the rate of 4.85% per cent per
annum until payment hereof as follows:


 


In the event the
Amended and Restated Capitalization Agreement executed by the parties on February 14,
2007, is terminated for any reason prior to the date that Rawhide subscribes
for units in the Illini Offering or that Rawhide does not subscribe for units
in the Illini Offering for any reason, the aggregate amount loaned by Rawhide
to Illini pursuant to this note, together with interest accrued thereon, shall
be repaid to Rawhide on the earlier of the Escrow Closing Date, the date upon
which Illini or its unit holders receive alternate financing in the event that
the Illini Offering does not succeed, or March 1, 2008. This note is subject
to all the terms and conditions of the Amended and Restated Capitalization
Agreement and specifically paragraph 2.4.


 


Interest
shall first be deducted from the payment and any balance shall be applied on
principal.


 


Principal
and interest not paid when due shall draw interest at the rate of 4.85% per
annum. Upon default in payment of any interest, or any installment of
principal, the whole amount then unpaid shall become immediately due and
payable at the option of the holder without notice. The undersigned, in case of
suit on this note, agrees to pay attorney’s fees.


 


Makers,
endorsers and sureties waive demand of payment, notice of non-payment, protest
and notice. Sureties, endorsers and guarantors agree to all of the provisions
of this note, and consent that the time or times of payment of all or any part hereof
may be extended after maturity, from time to time, without notice.


 


Important.
Read Before Signing:  The terms of this
Agreement should be read carefully because only those terms in writing are
enforceable. No other terms or oral promises not contained in this written
contract may be legally enforced. You may change the terms of this
Agreement only by another written agreement. Borrower acknowledges the receipt
of a copy of this document at the time it was signed.


 


 


	
  Address:

  	
  3600 Wabash
  Avenue, Suite C

  	
   

  	
  /s/  Ernest D.
  Moody

  	
   

  
	
   

  	
  Springfield, IL
  62711

  	
   

  	
  Illini Bio-Energy,
  L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
  Chairman

  	
   

  
	
  Phone:

  	
  217-726-9523

  	
   

  	
   

  	
   

  



 


 


	
  Caveat:  This form not
  to be used for a Consumer Credit Transaction.

  
	
   

  	
   

  
	
  © 

  	
  The Iowa State Bar Association 2005

  IOWADOCS®

  	
  136 PROMISSORY NOTE

  Revised January 2005