United States Department of Agriculture









Exhibit

10.12




 




United

States Department of Agriculture




Rural

Development




 




Rural

Business-Cooperative Service - Rural Housing Service - Rural Utilities Service




Washington,

DC  20250




 




VALUE-ADDED

AGRICULTURAL PRODUCT SET DEVELOPMENT GRANT




AGREEMENT

(VADG)




 




This Grant Agreement (Agreement) dated September 20, 2001, between

Dakota Corn Growers Cooperative d/b/a Great Plains Ethanol LLC (Grantee), and

the United States of America, acting through the Rural Business-Cooperative

Service of the Department of Agriculture (Grantor), for $401,704 in grant funds

under the VADG program, delineates the agreement of the parties.  NOW, THEREFORE, in consideration of the

grant;




 




The parties agree that:




 




1.                                       All the terms and provisions of the

application submitted by the Grantee for this VADG grant, including any

attachments or amendments, are incorporated and included as part of this

Agreement.  Any changes to these

documents or this agreement must be approved in writing by the Grantor.




 




2.                                       As a condition of the Agreement,

the Grantee certifies that it is in compliance with and will comply in the

course of the Agreement with all applicable laws, regulations, Executive

Orders, and other generally applicable requirements, which are incorporated

into this agreement by reference, and such other statutory provisions as are

specifically contained herein.  The

Grantee will comply with title VI of the Civil Rights Act of 1964, section 504

of the Rehabilitation Act of 1973, and Executive Order 12250;




 




3.                                       The provisions of 7 CFR part 3015,

“Uniform Federal Assistance Regulations,” part 3016, “Uniform Administrative

Requirements for Grants and Cooperative Agreements to State and Local

Governments” or part 3019, “Uniform Administrative Requirements for Grants and

Agreements with Institutions of Higher Education, Hospitals, and Other

Nonprofit Organizations,” as applicable are incorporated herein and made a part

hereof by reference.




 




FURTHER, the Grantee agrees that it will:




 




1.                                       Not use grant funds to plan,

repair, rehabilitate, acquire, or construct a building or facility (including a

processing facility); or to purchase, rent, or install fixed equipment.




 





























 




2.                                       Use grant funds only for the

purposes and activities specified in the proposal approved by the Agency

including the approved budget.  Any uses

not provided for in the approved budget must be approved in writing by the

Agency in advance of obligation by the Grantor.




 




3.                                       Submit a feasability study,

business operations plans, and other studies and plans required by the Grantor

if any part of the grant will be used to establish a working capital account.




 




4.                                       Deliver the results of a study or

activity to the Grantor upon completion of each task outlined in the

proposal.  These include, but are not

limited to, feasibility studies, marketing plans, business operations plans,

articles of incorporation and bylaws, and accounting of how working capital

funds were spent.  All items delivered

to the Grantor will be held in confidence to the extent provided by law.




 




5.                                       Request any cash advances in the

minimum amount needed and timed to the actual, immediate cash requirements for

carrying out the grant purpose. 

Standard Form 270, “Request for Advance or Reimbursement,” will be used

for this purpose.




 




6.                                       Submit a Standard Form 269,

“Financial Status Report” and list expenditures according to agreed upon budget

categories on a semi-annual basis. 

Reports are due by April 30 and October 30 after the grant is awarded.




 




7.                                       Provide periodic reports as

required by the Grantor.  A financial

status report and a project performance report will be required on a

semi-annual basis (due April 30 and October 30).  The financial status report must show how grant funds and

matching funds have been used to date and project the funds needed and their

purposes for the next quarter.  A final

report may serve as the last performance report.  The Grantee shall constantly monitor performance to ensure that

time schedules are being met and projected goals by time periods are being

accomplished.  The project performance

reports shall include the following:




 




a.                                       A comparison of actual

accomplishments to the objectives for that period.




 




b.                                      Reasons why established objectives

were not met, if applicable.




 




c.                                       Reasons for any problems, delays,

or adverse conditions which will affect attainment of overall program

objectives, prevent meeting time schedules or objectives, or preclude the

attainment of particular objectives during established time periods.  This disclosure shall be accomplished by a

statement of the action taken or planned to resolve the situation.




 




d.                                      Objectives and timetables

established for the next reporting period.




 




e.                                       The final report will also address

the following:




 




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(i)                                     What have been the most challenging

or unexpected aspects of this program?




 




(ii)                                  What advice you would give to other

organizations planning a similar program. 

These should include strengths and limitations of the program.  If you had the opportunity, what would you

have done differently?




 




(iii)                               If an innovative approach was used

successfully, the grantee should describe their program in detail so that other

organizations might consider replication in their areas.




 




8.                                       Collect and maintain data on

producer-members by race, sex, and national origin.  As required by the Grantor, the Grantee must ensure that their

recipients also collect and maintain data on beneficiaries by race, sex, and

national origin as required by title VI of the Civil Rights Act of 1964 and

must be provided to the Agency for compliance review purposes.




 




9.                                       Provide Financial Management

Systems which will include:




 




a.                                       Records that identify adequately

the source and application of funds for grant-supported activities.  Those records shall contain information

pertaining to grant awards and authorizations, obligations, unobligated

balances, assets, liabilities, outlays, and income;




 




b                                         Effective control over and

accountability for all funds, property, and other assets.  Grantees shall adequately safeguard all such

assets and shall ensure that they are used solely for authorized purposes;




 




c.                                       Accounting records supported by

source documentation; and




 




d.                                      Grantee tracking of fund usage and

records that show matching funds and grant funds are used in equal

proportions.  The grantee will provide

verifiable documentation regarding matching fund usage, i.e., bank statements

or copies of funding obligations from the matching source.




 




10.                                 Retain financial records,

supporting documents, statistical records, and all other records pertinent to

the grant for a period of at least 3 years after grant closing, except that the

records shall be retained beyond the 3-year period if audit findings have not

been resolved.  Microfilm or photocopies

or similar methods may be substituted in lieu of original records.  The Grantor and the Comptroller General of

the United States, or any of their duly authorized representatives, shall have

access to any books, documents, papers, and records of the Grantee’s which are

pertinent to the specific grant program for the purpose of making audits,

examinations, excerpts, and transcripts.




 




11.                                 Not encumber, transfer or dispose

of the equipment or any part thereof, acquired wholly or in part with grant

funds without the written consent of the Grantor.




 




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12.                                 Not duplicate other program

purposes for which monies have been received, are committed, or are applied to

from other sources (public or private).




 




Grantor agrees to make available to Grantee for the purpose of this

Agreement funds in an amount not to exceed the Grant Funds.  The funds will be reimbursed or advanced

based on submission of Standard Form 270.




 




IN WITNESS WHEREOF, Grantee has this day authorized and caused this

Agreement to be executed by




 




	

  Attest


  
	

   


  
	

  By


  	

  /s/ Darrin Ihnen


  	

   


  
	

   


  	

  (Grantee)


  	

   


  
	

   


  	

   


  
	

  (Title)


  	

  President - Dakota Corn Processors Coop

  d/b/a Great Plains Ethanol, LLC


  
	

   


  	

   


  
	

  UNITED STATES OF AMERICA


  	

   


  
	

  RURAL BUSINESS-COOPERATIVE SERVICE


  	

   


  
	

   


  	

   


  
	

  By


  	

  /s/ Lynn D. Jensen


  	

   


  
	

   


  	

  (Grantor) 

  Lynn D. Jensen


  	

   


  
	

   


  	

   


  	

   


  
	

  (Title)


  	

  State Director Rural Development


  
				





 




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