Document:

exv4w2

 

EXHIBIT 4.2

FIRST UNTED ETHANOL, LLC

SUBSCRIPTION AGREEMENT

Limited Liability Company Membership Units

$1,000 per Unit

Minimum Investment of 20 Units ($20,000)

5 Unit Increments Thereafter ($5,000)

The undersigned subscriber, desiring to become a member of First United Ethanol, LLC (“FUEL”), a
Georgia limited liability company, with its principal place of business 2 West Broad Street,
Camilla, Georgia 31730 hereby subscribes for the purchase of the membership interests of FUEL, and
agrees to pay the related purchase price, identified below.

A. SUBSCRIBER INFORMATION. Please print your individual or entity name and address. Joint
subscribers should provide their respective names. Your name and address will be recorded exactly
as printed below. Please provide your home, business and/or mobile telephone number. If desired,
please also provide your email address.

	 	 	 	 	 
	1.

	 	Subscriber’s Printed Name	 	 
	 

	 	 	 	 
	2.

	 	Title, if applicable	 	 
	 

	 	 	 	 
	3.

	 	Subscriber’s Address

      Street

	 	 
	 

	 	 	 	 
	 

	 	      City, State, Zip Code	 	 
	 

	 	 	 	 
	4.

	 	Email Address (optional)	 	 
	 

	 	 	 	 
	5.

	 	Home Telephone Number	 	 
	 

	 	 	 	 
	6.

	 	Business Telephone Number	 	 
	 

	 	 	 	 
	7.

	 	Mobile Telephone Number	 	 

B. NUMBER OF UNITS PURCHASED. You must purchase at least 20 units. Your ownership interest may
not exceed 40% of all our outstanding membership units.

	 	 	 	 	 	 	 
	 

	 	 	 

	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 

	 	 	 

C. PURCHASE PRICE. Indicate the dollar amount of your investment (minimum investment is
$20,000).

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	1. Total Purchase Price

	 	 	 	 	 	2. 1st Installment
	 	 	 	 	 	3. 2nd Installment	 
	 	($1,000 Per Unit
multiplied by the
number in box B
above.)

	 	 	=
	 	 	(10% of the Total Purchase
Price)
	 	 	+
	 	 	(90% of the Total Purchase
Price)	 
	 	 

	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 

	 	 	=
	 	 	 	 	 	+	 	 	 	 
	 	 

	 	 	 	 	 	 
	 	 	 	 	 	 	 

D. GENERAL INSTRUCTIONS FOR SUBSCRIBERS:

You should read the Prospectus dated [DATE] (the “Prospectus”) in its entirety including exhibits
for a complete explanation of an investment in FUEL. To subscribe, you must:

INSTRUCTIONS IF YOU ARE SUBSCRIBING PRIOR TO THE COMPANY’S RELEASE OF FUNDS FROM ESCROW:
If you are subscribing prior to the Company’s release of funds from escrow, you must follow Steps 1
through 5 below:

1

 

     1. Complete all information required in this Subscription Agreement, and date and sign the
Subscription Agreement on page 6 and the Member Signature Page to our Second Amended and Restated
Operating Agreement attached to this Subscription Agreement as Exhibit A.

     2. Immediately provide your personal (or business) check for the first installment of ten
percent (10%) of your investment amount made payable to Ameris Bank, escrow agent for FUEL. You
will determine this amount in box C.2 on page 1 of this Subscription Agreement.

     3. Execute the Promissory Note and Security Agreement on page 7 of this Subscription Agreement
evidencing your commitment to pay the remaining ninety percent (90%) due for the Units that is
attached to this Subscription Agreement and grant FUEL, LLC a security interest in your Units.

     4. Deliver each of the original executed documents referenced in Items 1 and 3 of these
Instructions, together with your personal or business check described in Item 2 of these
Instructions to the following:

First United Ethanol, LLC

2 West Broad Street

Camilla, Georgia 31730

     5. Upon written notice from FUEL stating that its sales of Units have exceeded the Minimum
Offering amount of $40,000,000 you must, within twenty (20) days remit an additional personal (or
business) check for the second installment of ninety percent (90%) of your investment amount made
payable to  Ameris Bank escrow agent for FUEL in satisfaction of the Promissory Note and
Security Agreement. You will determine this amount in box C.3 on page 1 of this Subscription
Agreement. You must deliver this check to the same address set forth above in Instruction 4 within
twenty (20) days of the date of FUEL’s written notice. If you fail to pay the second installment
pursuant to the Promissory Note and Security Agreement, FUEL shall be entitled to retain your first
installment and to seek other damages, as provided in the Promissory Note and Security Agreement.
This means that if you are unable to pay the 90% balance of your investment amount within 20 days
of our notice, you may have to forfeit the 10% cash deposit.

     Your funds will be placed in FUEL’s escrow account at Ameris Bank. The funds will be
released to FUEL or returned to you in accordance with the escrow arrangements described in the
Prospectus. FUEL may, in its sole discretion, reject or accept any part or all of your
subscription. If FUEL rejects your subscription, your Subscription Agreement and investment will
be promptly returned to you, plus nominal interest, minus escrow fees. FUEL may not consider the
acceptance or rejection of your subscription until a future date near the end of this offering.

INSTRUCTIONS IF YOU ARE SUBSCRIBING AFTER THE COMPANY’S RELEASE OF FUNDS FROM ESCROW: If
you are subscribing after the Company’s release of funds from escrow, you must follow Steps 1
through 3 below:

     1. Complete all information required in this Subscription Agreement, and date and sign the
Subscription Agreement on page 6 and the Member Signature Page to our Second Amended & Restated
Operating Agreement attached to this Subscription Agreement as Exhibit A.

     2. Immediately provide your personal (or business) check for the entire amount of your
investment (as determined in Box C.1 on page 1) made payable to “First United Ethanol, LLC.”

     3. Deliver the original executed documents referenced in Item 1 of these Instructions,
together with your personal or business check described in Item 2 of these Instructions to the
following:

First United Ethanol, LLC

2 West Broad Street

Camilla, Georgia 31730

     If you are subscribing after we have released funds from escrow and we accept your investment,
your funds will be immediately at-risk as described in the Prospectus. FUEL may, in its sole
discretion, reject or accept any part or all of your subscription. If FUEL rejects your
subscription, your Subscription Agreement and investment will be returned to you promptly, plus
nominal interest, minus escrow fees. FUEL may not consider the acceptance or rejection of your
subscription until a future date near the end of this offering.

2

 

   You may direct your questions to FUEL: at (229) 522-2822.

   Or, if you are a resident of, or an entity with its principal place of business in, the state
of GEORGIA, and you would like more information, please contact the following directors who have
been designated as our registered issuer-dealer agents in your state:

	 	 	 	 	 
	 	 	 	 	PHONE
	NAME	 	POSITION	 	NUMBER
	Murray Campbell

	 	Chairman and Director
	 	229-336-6560
	Bryant Campbell

	 	Director and Assistant Treasurer
	 	229-336-6255
	Thomas H. Dollar, II

	 	Director and Vice President of
Operations
	 	229-248-2750
	Miley Adams

	 	Director and Vice President of
Marketing
	 	229-328-7700
	Steve Collins

	 	Director and Treasurer
	 	229-336-3362
	Terry Hart

	 	Director and Secretary
	 	229-435-6629

   Or, if you are a resident of, or an entity with its principal place of business in, the state
of FLORIDA, and you would like more information, please contact the following directors who have
been designated as our registered issuer-dealer agents in your state:

	 	 	 	 	 
	 	 	 	 	PHONE
	NAME	 	POSITION	 	NUMBER
	Murray Campbell

	 	Chairman and Director
	 	229-336-6560
	Thomas H. Dollar, II

	 	Director and Vice President of
Operations
	 	229-248-2750
	Michael W. Harrell

	 	Director
	 	229-246-1553
	Miley Adams

	 	Director and Vice President of
Marketing
	 	229-328-7700
	J. Harris Morgan

	 	Director
	 	229-336-7758

	 	 	 	 	 
	 	 	 	 	PHONE 
	 	 	POSITION 	 	NUMBER
	Murray Campbell

	 	Chairman and Director
	 	229-336-6560
	John B. Johnson

	 	Director
	 	229-336-5783
	Bryant Campbell

	 	Director
	 	229-336-6255
	Thomas H. Dollar, II

	 	Director
	 	229-248-2750
	Michael W. Harrell

	 	Director
	 	229-246-1553
	Miley Adams

	 	Director
	 	229-328-7700

E. Additional Subscriber Information. The subscriber, named above, certifies the following under
penalties of perjury:

	 	1.	 	Form of Ownership. Check the appropriate box (one only) to indicate form of
ownership. If the subscriber is a Custodian, Corporation, Partnership or Trust, please
provide the additional information requested.

	 	o
	 	Individual
	 
	 	o
	 	Joint Tenants with Right of Survivorship (Both signatures must appear on Page 6.)
	 
	 	o
	 	Corporation, Limited Liability Company or Partnership
(Corporate Resolutions, Operating Agreement or Partnership Agreement must be
enclosed.)

3

 

	 	 	 	 	 	 	 
	o

	 	Trust	 	 	 	 
	 

	 	Trustee’s Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Trust Date:	 	 	 	 
	 

	 	 	 	 

	 	 
	o	 	Other: Provide detailed information in the space immediately below.	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

	 	2.	 	Subscriber’s Taxpayer Information. Check the appropriate box if you are a
non-resident alien, a U.S. Citizen residing outside the United States or subject to
backup withholding. Trusts should provide their taxpayer identification number.
Custodians should provide the minor’s Social Security Number. All individual
subscribers should provide their Social Security Number. Other entities should provide
their taxpayer identification number.

	 	o
	 	Check box if you are a non-resident alien
	 
	 	o
 	 	Check box if you are a U.S. citizen residing outside of the United States
	 
	 	o
	 	Check this box if you are subject to backup withholding

	 	 	 	 	 	 	 
	 

	 	Subscriber’s Social Security No.	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Joint Subscriber’s Social Security No.	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Taxpayer Identification No.	 	 	 	 
	 

	 	 	 	 

	 	 

	 	3.	 	Member Report Address. If you would like duplicate copies of member reports
sent to an address that is different than the address identified in section A, please
complete this section.

	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 

	 	4.	 	State of Residence.

	 	 	 	 	 	 	 
	 

	 	State of Principal Residence:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	State where driver’s license is issued:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	State where resident income taxes are filed:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	State(s) in which you have maintained your principal residence during the past three
years:

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 

	 	 	a.
	 	 	b.
	 	 	c.

	 
	 	 

	 	5.	 	Suitability Standards. You cannot invest in FUEL unless you meet one of the
following suitability tests (a or b) set forth below. Please review the suitability
tests and check the box next to the following suitability test that you meet. For
husbands and wives purchasing jointly, the tests below will be applied on a joint
basis.

	 	a. o	 	I (We) have annual income from whatever source of
at least $45,000 and a net worth of at least $45,000, exclusive of
home, furnishings and automobiles; or
	 
	 	b. o	 	I (We) have a net worth of at least $100,000,
exclusive of home, furnishings and automobiles.

	 	6.	 	Subscriber’s Representations and Warranties. You must read and certify your
representations and warranties by placing your initials where indicated and by signing
and dating this Subscription Agreement. Joint subscribers are also required to initial
and sign as indicated.

	 	 	 	 	 
	(Initial here)	 	By signing below the subscriber represents and warrants to FUEL that he, she or it:
	 
	 

	 	a. 

	 	has received a copy of FUEL’s Prospectus dated [DATE] and the
exhibits thereto;
	 

	 	b. 

	 	has been informed that the Units of FUEL are offered and sold
in reliance upon a federal securities registration; Florida and Georgia; and
exemptions from securities registrations in

4

 

	 	 	 	 	 
	 

	 	 	 	various other states, and understands that the Units to be issued pursuant to
this subscription agreement can only be sold to a person meeting requirements of
suitability;
	
 

	 	c.
	 	has been informed that the securities purchased pursuant to
this Subscription Agreement have not been registered under the securities laws
of any state other than the Florida and Georgia and that FUEL is relying in
part upon the representations of the undersigned Subscriber contained herein;
	
 

	 	d.
	 	has been informed that the securities subscribed for have not
been approved or disapproved by the Florida and Georgia Securities Departments
or any other regulatory authority, nor has any regulatory authority passed upon
the accuracy or adequacy of the Prospectus;
	
 

	 	e.
	 	intends to acquire the Units for his/her/its own account
without a view to public distribution or resale and that he/she/it has no
contract, undertaking, agreement or arrangement to sell or otherwise transfer
or dispose of any Units or any portion thereof to any other person;
	
 

	 	f.
	 	understands that there is no present market for FUEL’s
membership units, that the membership units will not trade on an exchange or
automatic quotation system, that no such market is expected to develop in the
future and that there are significant restrictions on the transferability of
the membership units;
	
 

	 	g.
	 	has been encouraged to rely upon the advice of his legal
counsel and accountants or other financial advisers with respect to the tax and
other considerations relating to the purchase of units;
	
 

	 	h.
	 	has received a copy of the FUEL’s Second Amended and Restated
Operating Agreement, dated April 5, 2006, and understands that upon closing the
escrow by FUEL, the subscriber and the membership units will be bound by the
provisions of the Second Amended and Restated Operating Agreement which
contains, among other things, provisions that restrict the transfer of
membership units;
	
 

	 	i.
	 	understands that the Units are subject to substantial
restrictions on transfer under state securities laws along with restrictions in
the FUEL’s Second Amended and Restated Operating Agreement and agrees that if
the membership units or any part thereof are sold or distributed in the future,
the subscriber shall sell or distribute them pursuant to the terms of the
Second Amended and Restated Operating Agreement, and the requirements of the
Securities Act of 1933, as amended, and applicable state securities laws;
	 

	 	j.
	 	meets the suitability test marked in Item 5 above and is
capable of bearing the economic risk of this investment, including the possible
total loss of the investment;
	 

	 	k.
	 	understands that FUEL will place a restrictive legend on any
certificate representing any unit containing substantially the following
language as the same may be amended by the Directors of FUEL in their sole
discretion:

THE TRANSFERABILITY OF THE COMPANY UNITS REPRESENTED BY THIS DOCUMENT
IS RESTRICTED. SUCH UNITS MAY NOT BE SOLD, ASSIGNED, OR TRANSFERRED,
NOR WILL ANY ASSIGNEE, VENDEE, TRANSFEREE, OR ENDORSEE THEREOF BE
RECOGNIZED AS HAVING ACQUIRED ANY SUCH UNITS FOR ANY PURPOSES, UNLESS
AND TO THE EXTENT SUCH SALE, TRANSFER, HYPOTHECATION, OR ASSIGNMENT
IS PERMITTED BY, AND IS COMPLETED IN STRICT ACCORDANCE WITH, THE
TERMS AND CONDITIONS SET FORTH IN THE SECOND AMENDED AND RESTATED
OPERATING AGREEMENT AND AGREED TO BY EACH MEMBER.

THE UNITS REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, OFFERED
FOR SALE, OR TRANSFERRED IN ABSENCE OF AN EFFECTIVE REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND UNDER APPLICABLE
STATE SECURITIES LAWS.

	 	 	 	 	 
	 

	 	l.
	 	understands that, to enforce the above legend, FUEL may place a
stop transfer order with its registrar and stock transfer agent (if any)
covering all certificates representing any of the membership units;
	
 

	 	m.
	 	may not transfer or assign this subscription agreement, or any
of the subscriber’s interest herein;
	
 

	 	n.
	 	has written his, her, or its correct taxpayer identification
number under Item E2 on this subscription agreement;

5

 

	 	 	 	 	 
	
 

	 	o.
	 	is not subject to back up withholding either because he, she or
it has not been notified by the Internal Revenue Service (“IRS”) that he, she
or it is subject to backup withholding as a result of a failure to report all
interest or dividends, or the IRS has notified him, her or it that he is no
longer subject to backup withholding (Note this clause (p) should be crossed
out if the backup withholding box in Item E2 is checked);
	
 

	 	p.
	 	understands that execution of the attached Promissory Note and
Security Agreement will allow FUEL or its assigns to pursue the obligor for
payment of the amount due thereon by any legal means, including, but not
limited to, acquisition of a judgment against the obligor in the event that the
subscriber defaults on that Promissory Note and Security Agreement; and
	
 

	 	q.
	 	acknowledges that FUEL may retain possession of certificates
representing subscriber’s Units to perfect its security interest in those
Units.

Signature of Subscriber/ Joint Subscriber:

	 	 	 	 	 
	Date:
	 	 	 	 
	 
	 	 	 	 
	Individuals:

	 	 	 	Entities:
	 
	 	 	 	 
	 	 	 
	          Name of Individual Subscriber (Please Print)	 	Name of Entity (Please Print)
	 
	 	 	 	 
	 	 	 
	          Signature of Individual	 	Print Name and Title of Officer
	 
	 	 	 	 
	 	 	 
	          Name of
Joint Individual Subscriber (Please Print)	 	Signature of Officer
	 
	 	 	 	 
	 	 	 
	          Signature of Joint Individual Subscriber	 	 

ACCEPTANCE OF SUBSCRIPTION BY FIRST UNITED ETHANOL, LLC:

First United Ethanol, LLC hereby accepts the subscription for the above Units.

     Dated this                      day of                                                             , 200___.

FIRST UNITED ETHANOL, LLC

	 	 	 	 	 
	By :
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Its :
	 	 	 	 
	 

	 	 

	 	 

6

 

PROMISSORY NOTE AND SECURITY AGREEMENT

Date of Subscription Agreement:                                                             , 200___.

$1,000 per Unit

	 	 	 
	 	 	Minimum Investment of 20 Units ($20,000), 5 Unit Increments Thereafter ($5,000)

	 	 	 

	 

	 	Number of Units subscribed

	 	 	 

	 

	 	Total Purchase Price ($1,000 per Unit multiplied by number of Units subscribed)

	 	 	 

	(               ) 

	 	Less Initial Payment (10% of Principal Amount)

	 	 	 

	 

	 	Principal Balance

FOR VALUE RECEIVED, the undersigned hereby promises to pay to the order of First United Ethanol,
LLC, a Georgia limited liability company (“FUEL”), at its principal office located 2 West Broad
Street, Camilla, Georgia 31730, or at such other place as required by FUEL, the Principal Balance
set forth above in one lump sum to be paid without interest within 20 days following the call of
the FUEL’s Board of Directors, as described in the Subscription Agreement. In the event the
undersigned fails to timely make any payment owed, the entire balance of any amounts due under this
full recourse Promissory Note and Security Agreement shall be immediately due and payable in full
with interest at the rate of 12% per annum from the due date and any amounts previously
paid in relation to the obligation evidenced by this Promissory Note and Security Agreement may be
forfeited at the discretion of FUEL.

The undersigned agrees to pay to FUEL on demand, all costs and expenses incurred to collect any
indebtedness evidenced by this Promissory Note and Security Agreement, including, without
limitation, reasonable attorneys’ fees. This Promissory Note and Security Agreement may not be
modified orally and shall in all respects be governed by, construed, and enforced in accordance
with the laws of the State of Georgia.

The provisions of this Promissory Note and Security Agreement shall inure to the benefit of FUEL
and its successors and assigns, which expressly reserves the right to pursue the undersigned for
payment of the amount due thereon by any legal means in the event that the undersigned defaults on
obligations provided in this Promissory Note and Security Agreement.

The undersigned waives presentment, demand for payment, notice of dishonor, notice of protest, and
all other notices or demands in connection with the delivery, acceptance, performance or default of
this Promissory Note and Security Agreement.

The undersigned grants to FUEL, and its successors and assigns (“Secured Party”), a purchase money
security interest in all of the undersigned’s Membership Units of FUEL now owned or hereafter
acquired. This security interest is granted as non-exclusive collateral to secure payment and
performance on the obligation owed Secured Party from the undersigned evidenced by this Promissory
Note and Security Agreement. The undersigned further authorizes Secured Party to retain possession
of certificates representing such Membership Units and to take any other actions necessary to
perfect the security interest granted herein.

	 	 	 
	Dated:                     , 200___.
	 	 
	 
	OBLIGOR/DEBTOR:

	 	JOINT OBLIGOR/DEBTOR:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Printed or Typed Name of Joint Obligor	 	 	 	Printed or Typed Name of Obligor
	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	(Signature)
	 	 	 	 	 	(Signature)
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Officer Title if Obligor is an Entity	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Address of Obligor	 	 	 	 	 	 

7

 

EXHIBIT “A”

MEMBER SIGNATURE PAGE

ADDENDA

TO THE

SECOND AMENDEND AND RESTATED

OPERATING AGREEMENT OF

FIRST UNITED ETHANOL, LLC

     The undersigned does hereby represent and warrant that the undersigned, as a condition to
becoming a Member in First United Ethanol, LLC, has received a copy of the Second Amended and
Restated Operating Agreement, dated April 5, 2006 (“Operating Agreement”), and, if applicable, all
amendments and modifications thereto, and does hereby agree that the undersigned, along with the
other parties to the Operating Agreement, shall be subject to and comply with all terms and
conditions of said Operating Agreement in all respects as if the undersigned had executed said
Operating Agreement on the original date thereof and that the undersigned is and shall be bound by
all of the provisions of said Operating Agreement from and after the date of execution hereof.

	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 

	 	 	 
	Individuals:

	 	Entities:
	 
	 	 
	 

	 	 
	          Name of Individual Member (Please Print)

	 	Name of Entity (Please Print)
	 
	 	 
	 

	 	 
	          Signature of Individual

	 	Print Name and Title of Officer
	 
	 	 
	 

	 	 
	          Name of Joint Individual Member (Please Print)

	 	Signature of Officer
	 
	 	 
	 

          Signature of Joint Individual Member

	 	 

Agreed and accepted on behalf of the

Company and its Members:

FIRST UNITED ETHANOL, LLC

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Its :
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 

	 	 

8exv4w3

 

EXHIBIT 4.3

ESCROW AGREEMENT

     THIS ESCROW AGREEMENT (this “Agreement”) made and entered into this 1st day of May, 2006, by
and among AMERIS, a federally-insured deposit organization located at 225 S. Main Street, Moultrie,
Georgia 31768 (hereinafter referred to as “Escrow Agent”) and First United Ethanol, LLC, a Georgia
limited liability company (hereinafter referred to as “Escrowor”).

WITNESSETH:

     WHEREAS, Escrowor proposes to engage in an offering of its Membership Units (hereinafter the
“Units”) in an offering registered with the Securities and Exchange Commission and in the states of
Florida, and Georgia, and possibly offered in other states pursuant to state securities
registration exemptions and under the provisions of the Securities Act of 1933, as amended
(hereinafter the “Offering”) in order to raise money for the construction and operation of an
ethanol plant;

     WHEREAS, Escrowor desires to comply with the requirements of federal and state securities laws
and regulations, and desires to protect the investors in the Offering by having all money raised as
part of said capital funds campaign held by an Escrow Agent until the Minimum Escrow Deposit
(hereinafter defined) is deposited with the Escrow Agent; and

     WHEREAS, Escrow Agent has agreed to hold all funds for Escrowor pursuant to the terms of this
Agreement.

     NOW THEREFORE, in consideration of Ten Dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows:

     1. Establishment of Escrow Account. An escrow account (hereinafter the “Escrow
Account”) is hereby established with the Escrow Agent for the benefit of the investors in the
Offering. Except as specifically provided in this Agreement, the Escrow Account shall be created
and maintained subject to the customary rules and regulations of the Escrow Agent pertaining to
such accounts.

     2. Ownership of Escrow Account. Until such time as the funds deposited in the Escrow
Account (hereinafter the “Deposited Funds”) shall equal the Minimum Escrow Deposit (as hereinafter
defined), all funds deposited in the Escrow Account by Escrower shall not become the property of
Escrower or be subject to the debts of Escrower or any other person but shall be held by the Escrow
Agent solely for the benefit of investors who have purchased Units in the Offering.

     3. Deposit of Proceeds. Upon execution of this Agreement, Escrowor shall deliver to
the Escrow Agent escrow funds to be held by Escrow Agent pursuant to the terms of this Agreement,
together with an appropriate written statement setting forth the name, address and social security
number of each person purchasing Units, the number of Units purchased, and the

Page 1 of 7

 

amount paid by each such purchaser. As the proceeds of each sale are deposited with the
Escrow Agent, FUEL shall reserve the number of Units confirmed to the purchaser thereof in
connection with such sale. Escrowor may make additional deposits of escrow funds into escrow at
any time at Escrowor’s discretion. All such deposited proceeds are referred to herein as the
“Escrow Funds”.

     4. Investment of Escrow Account. The Escrow Funds shall be credited by the Escrow
Agent and recorded in the Escrow Account. The Escrow Agent is hereby authorized to deposit,
transfer, hold and invest all funds received under this Agreement, including principal and
interest, in those investments directed in writing by Escrowor. Escrow Agent is hereby authorized
to invest Escrow Funds in the Federated Treasury Obligations Money Market Mutual Fund for temporary
investment without written direction until such time as the money is to be paid out according to
the terms of this Agreement. Any interest received by the Escrow Agent with respect to the Escrow
Funds shall be paid to Escrowor, or the investors, as indicated elsewhere in this Agreement .

     5. Limitation of Liability and Indemnification of Escrow Agent. The Escrow Agent
shall not be obligated to disburse the Escrow Funds except as provided herein. Without limiting
the generality of the foregoing, should any party claim that it is entitled to receive all of any
part of the Escrow Funds, then Escrow Agent shall not be obligated to disburse the Escrow Funds to
the party claiming the same without the prior written consent of the Escrowor. In performing any
of its duties with respect to the Escrow Account, the Escrow Agent shall not be liable for any
loss, costs, or damages which it may incur as a result of serving as escrow agent hereunder, except
for any loss, costs, or damages arising out of its willful default or gross negligence. Escrowor
agrees to indemnify and hold harmless the Escrow Agent from and against any and all losses, claims,
damages, liabilities and expenses, including without limitation, reasonable costs of investigation
and attorney’s fees and disbursements, which may be imposed upon or incurred by the Escrow Agent in
connection with the performance of its obligations under this Agreement. In the event of any
dispute between the parties to this Agreement, in the sole discretion of Escrow Agent to justify
its doing so, the Escrow Agent shall be entitled to tender into the registry or custody of any
court of competent jurisdiction all money or property in its hands held under the terms of this
Agreement, together with such legal pleadings as it deems appropriate, and thereupon the Escrow
Agent shall be discharged from any further obligation under this Agreement.

     6. Termination of Escrow. This Agreement and the Escrow created hereunder shall be
terminated as provided in paragraph 7 hereof or as of the date in calendar year 2007 (the
“Termination Date”), which is one year and one day following the date in calendar year 2006 upon
which the Securities and Exchange Commission declares the Offering effective (the “Offering
Effective Date”). Escrowor shall notify Escrow Agent of the Offering’s Effective Date within
thirty (30) days of the receipt of notice of the Offering’s Effective Date from the Securities and
Exchange Commission.

     7. Disposition of Escrow Funds. The Escrow Agent shall have the following duties and
obligations under this Agreement:

Page 2 of 7

 

     a. The Escrow Agent shall give the Escrowor prompt written notice when the Deposited
Funds equal $4,000,000 (exclusive of interest). Any time following receipt of such notice
and prior to the first day of the 11th month following the effective date of the
Escrowor’s registration statement, the Escrowor will advise the purchasers of Units to remit
to the Escrow Agent the balance of the purchase price within twenty (20) days. Thereafter,
Escrow Agent shall give the Escrowor written notice acknowledging the receipt of the
Deposited Funds every seven days. The Escrow Agent shall give the Escrowor prompt written
notice when the Deposited Funds total $40,000,000 (exclusive of interest).

     b. At the time (and in the event) that: (i) the Deposited Funds shall, during the term
of this Agreement, equal $40,000,000 in subscription proceeds (exclusive of interest) (the
“Minimum Escrow Deposit”); (ii) the Escrow Agent shall have received written confirmation
from the Escrowor that the Escrowor has obtained a written debt financing commitment for
debt financing ranging from a minimum of $52,300,000 to a maximum of $102,300,000; (iii)
the Escrowor has affirmatively elected in writing to terminate this Agreement; and (iv) the
Escrow Agent shall have provided to each state securities department in which the Escrowor
has registered its securities for sale, as communicated to the Escrow Agent by the Escrowor,
an affidavit stating that the foregoing requirements (i), (ii) and (iii) of this subsection
7b have been satisfied, then this Agreement shall terminate, and the Escrow Agent shall
promptly disburse the funds on deposit, including interest, to the Escrowor to be used in
accordance with the provisions set out in the Registration Statement. The Escrowor will
deliver a copy of the Registration Statement to the Escrow Agent upon execution of this
Agreement. The Escrow Agent will have no responsibility to examine the Registration
Statement with regard to the Escrow Account or otherwise and the Registration Statement
shall contain a provision to such effect. Upon the making of such disbursement, the Escrow
Agent shall be completely discharged and released of any and all further responsibilities
hereunder.

     c. In the event the Deposited Funds do not equal or exceed the Minimum Escrow Deposit
on or before the Termination Date or if the Escrowor has not received a written debt
financing commitment as described herein on or before the Termination Date, the Escrow Agent
shall return to each of the purchasers of the Units in the Offering, as promptly as possible
after such Termination Date and on the basis of its records pertaining to the Escrow
Account: (i) the sum which each purchaser initially paid in on account of purchases of the
Units in the Offering and (ii) each purchaser’s portion of the total interest earned on the
Escrow Account as of the Termination Date, (iii) reduced by the transaction fees provided in
paragraph 8 hereof. Computation of any purchaser’s share of the net interest earned will be
a weighted average based on the proportion of such purchaser’s deposit in the Escrow Account
from the Offering to all such purchasers’ deposits held by the Escrow Agent and upon the
length of time in days such deposit was held in the Escrow Account as compared to all such
deposits. All computations with respect to each purchaser’s allocable share of net interest
shall be made by the Escrow Agent, which determinations shall be final and conclusive. Any
amount paid or payable to a purchaser pursuant to this paragraph shall be deemed to be the
property of such purchaser, free and clear of any and all claims of the Escrowor or its
agents or creditors; and the respective purchases of the Units made and entered into in the
Offering shall thereupon be deemed, ipso facto, to be cancelled

Page 3 of 7

 

without any further liability of the purchasers or any of them to pay for the Units
purchased. At such time as the Escrow Agent shall have made all the payments called for in
this paragraph, the Escrow Agent shall be completely discharged and released of any and all
further responsibilities hereunder, and the Units reserved (as provided in paragraph 3)
shall be released from such reservation, except that Escrow Agent shall be required to
prepare and issue a single IRS Form 1099 to each investor in the event that funds are
returned to investors.

     8. Fees. Escrowor agrees to pay the Escrow Agent the fees specified in the Escrow
Agent’s fee schedule attached hereto as Exhibit A, in the manner set forth therein, unless
otherwise agreed to by the parties in writing. The parties further agree that such fees shall be
paid from interest on the Escrow Account only and not from principal. In the event the interest on
the Escrow Account is insufficient to satisfy the full amount of fees payable hereunder, Escrowor
shall be solely responsible for the payment of such fees and the Escrow Agent shall not seek
payment of the fees from investors or apply any principal deposited by investors in the Escrow
Account against such fees.

     9. Miscellaneous Provisions:

     a. Notice. All notices, requests, demands, tenders and other communications
required or permitted hereunder shall be made in writing and shall be deemed to be duly
given if delivered in person or mailed certified mail, return receipt requested, to the
addresses set forth herein. Either party hereto may change the address to which notices,
requests, demands, tenders and other communications to such party shall be delivered or
mailed by giving notice to the other party hereto in the manner herein provided.

If to AMERIS:

Ameris Bank

225 South Main Street

Moultrie, Georgia 31768

Attn: Tammy Ingle

Fax: 229-985-2222

Phone: 229-985-2828

If to FUEL:

First United Ethanol, LLC

2 West Broad Street

Camilla, Georgia 31730

Attn: Murray Campbell, President

Fax: (229) 522-2824

Phone: (229) 522-2822

with a required copy to:

Page 4 of 7

 

Brown, Winick, Graves, Gross, Baskerville and Schoenebaum, P.L.C.

666 Grand Avenue, Suite 2000

Des Moines, IA 50309

Attention: Valerie D. Bandstra

Fax: (515) 283-0231

Phone: (515) 242-2400

     b. Waiver. Any term or condition of this Agreement may be waived at any time
by the party which is entitled to the benefit thereof, but such waiver shall only be
effective if evidenced by a writing signed by such party. A waiver on one occasion shall
not be deemed to be a waiver of the same or any other breach on another occasion.

     c. Survival of Representations. All statements and agreements contained herein
shall be deemed representation, warranties, covenants and agreements made by the respective
parties to this Agreement and shall survive the consummation of the transactions
contemplated herein and the passing of title to any property.

     d. Amendments. This Agreement may be amended or modified only by a writing
signed by both of the parties hereto.

     e. Successors and Assigns. No party hereto shall assign this Agreement or any
rights or obligation hereunder without the prior written consent of the other parties
hereto. This Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and assigns.

     f. Governing Law. The validity and effect of this Agreement shall be governed,
construed and enforced under the laws of the State of Georgia.

     g. Entire Agreement.: This Agreement contains all of the terms agreed upon by
the parties with respect to the subject matter hereof and there are not representations or
understandings between the parties except as provided herein.

     h. Section Headings. Section headings contained in this Agreement are solely
for convenience of reference and shall not affect the meaning or interpretation of this
Agreement or of any term or provision hereof.

     i. Time. Time shall be of the essence in this Agreement.

     j. Invalid Provision to Affect No Other. If fulfillment of any provision
hereof or in any other agreement of even date or entered into in connection herewith or any
transaction related thereto, at the time performance of such provisions shall be due, shall
involve transcending that limit of validity presently prescribed by any applicable usury
statute or any other applicable law, with regard to obligations of like character and
amount, then ipso facto, the obligation to be fulfilled shall be reduced to the limit of
such

Page 5 of 7

 

validity; and if any clause or provision herein of therein contained operates or would
prospectively operate to invalidate this agreement, or any other agreement of even date
herewith entered into in connection herewith, in whole or in part, then such clause or
provision only shall be held for naught, as though not herein or therein contained, and the
remainder of this Agreement or such other agreements shall remain operative and in full
force and effect.

     k. Counterpart. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original and all of which together shall be considered one
and the same agreement.

     l. Construction of Agreement. No provision of this Agreement shall be
construed against or interpreted to the disadvantage of any party hereto or thereto by any
court or other governmental or judicial authority by reason of such party having or being
deemed to have structured or dictated such provision.

     IN WITNESS WHEREOF, the undersigned have executed this Agreement the day and year first above
written.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	ESCROWOR:	 	 	 	ESCROW AGENT:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	FIRST UNITED ETHANOL, LLC	 	 	 	AMERIS	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	  /s/ Murray Campbell	 	 	 	By:	 	/s/ Dennis Zember	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Murray Campbell	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Title: President	 	 	 	Title: EVP/CFO	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Notary Public:	 	 	 	Notary Public:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

	 	 
	Sworn to and subscribed before me
this 1stth day of May, 2006.	 	 	 	Sworn to and subscribed before me
this 1stth day of May, 2006	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	     /s/ Cara P Horne	 	 	 	          /s/ Cara P Horne	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	          [SEAL]	 	 	 	          [SEAL]	 	 

Page 6 of 7

 

EXHIBIT A

FEE SCHEDULE

Escrow Agreement

First United Ethanol, LLC

	 	 	 	 	 
	Administration
	 	$	100.00	 (aggregate flat fee)
	 
	 	 	 	 
	Transaction Fees
	 	 	 	 
	Subscriber
	 	$	5.00	 
	Disbursement/Each
	 	$	5.00	 
	 
	 	 	 	 
	1099 Filing
	 	$	100.00	 
	Subscriber/Filing
	 	$	5.00	 

Page 7 of 7

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