Document:

exv10w7

 

EXHIBIT 10.7

Prepared by and upon recordation return to Christopher Sackett, 666 Grand Avenue, Suite 2000, Des Moines, Iowa 50309; (515) 242-2400.

OPTION AGREEMENT

     THIS OPTION AGREEMENT (the “Agreement”) is executed as of April  18 , 2006, by
and between One Earth Energy, LLC, an Illinois limited liability company (“One Earth Energy”), and
the City of Gibson, Illinois, an Illinois municipal corporation (“Grantor”).

W I T N E S S E T H :

     WHEREAS, Grantor owns certain property located in Gibson City, Ford County, Illinois, as
legally described in attached EXHIBIT A (the “Real Estate”), and desires to grant One Earth
Energy an option to purchase approximately thirty-five (35) acres (subject to survey) of such Real
Estate (the “Option Property”) upon the general terms and conditions set forth herein.

     NOW, THEREFORE, for good and valuable consideration, the parties agree as follows:

     1. Option; Term; Exercise. Grantor hereby grants One Earth Energy an option (the
“Option”) to purchase the Option Property upon the terms and conditions set forth herein. The term
of the Option shall be for a period of one (1) year, commencing on the date hereof. The Option may
be exercised by One Earth Energy by written notice to Grantor at any time during the Option Period.
In the event that One Earth Energy does not timely exercise the Option, the Option shall become
null and void, and except as hereafter set forth, the parties shall have no continuing obligations
hereunder.

     2. Option Price; Termination. The option price (the “Option Price”) is Ten Thousand
Dollars ($10,000.00), and shall be paid to Grantor upon Grantor’s execution of this Agreement. If
One Earth Energy exercises the Option, the Option Price shall be applied to the Purchase Price. If
the Option is not exercised, except as otherwise provided herein, the Option Price shall be
forfeited by One Earth Energy.

     3. Purchase Price. The purchase price (the “Purchase Price”) for the Option Property
shall be six thousand four hundred dollars ($6,400.00) per acre, and shall be payable at Closing
(as hereinafter defined), with adjustments and prorations for customary closing costs such as real
estate taxes, transfer taxes, utilities and other matters. One Earth Energy shall bear
responsibility for the costs of title insurance and transfer taxes at Closing.

     4. Right to Access Property. Grantor shall permit One Earth Energy and its designees
access to the Real Estate and the Option Property to prepare the survey referred to in Section 5
below and to perform soil borings and other due diligence during the Option Period. One Earth
Energy and its designees shall provide Grantor with satisfactory evidence of liability insurance
and shall hold Grantor harmless from and against any claim for property damage (including, without
limitation, crop or tile damage) or personal injury resulting therefrom.

 

 

     5. Survey. Upon One Earth Energy’s exercise of the Option, One Earth Energy, at its
sole expense, shall have the Real Estate surveyed to precisely describe the Option Property.

     6. Taxes and Assessments; Risk of Loss. Grantor shall pay all real estate taxes that
are a lien on the Option Property and all those that are due and payable in the fiscal year of
Closing. Grantor shall give One Earth Energy a credit at Closing for Grantor’s prorated share of
the real estate taxes for the fiscal year in which Closing occurs, based upon the Closing Date and
the last known actual real estate taxes payable according to public record. One Earth Energy shall
pay all other real estate taxes. Grantor shall pay all special assessments which are a lien on the
Option Property as of the Closing Date. One Earth Energy shall pay all other special assessments.
Risk of loss shall remain with Grantor until Closing. Grantor agrees to maintain existing
insurance until Closing.

     7. Title. Within fifteen (15) days of One Earth Energy’s exercise of the Option,
Grantor shall deliver to One Earth Energy a preliminary Land Title Association owner’s title
insurance commitment, and at Closing Grantor shall cause the title insurance company to issue an
owner’s policy of title insurance to One Earth Energy, in the amount of the Purchase Price, issued
by a title company reasonably acceptable to One Earth Energy with respect to the Option Property.
Such title insurance commitment and policy shall show marketable fee simple title in Grantor in
conformity with this Agreement and Illinois law, free and clear of all liens, mortgage and
encumbrances. Grantor shall cure/remove prior to Closing any title objections raised by One Earth
Energy. If Grantor fails to remove any title objections prior to Closing, One Earth Energy may, in
its discretion: (a) terminate this Agreement without liability, in which case the Option Fee shall
be returned to One Earth Energy, without limiting any other remedies that One Earth Energy may
have; or (b) take title subject to the objection.

     8. Representations and Warranties; Termination of Farm Tenancy. Grantor warrants and
represents to One Earth Energy that Grantor will, on the Closing Date, convey to One Earth Energy
good and marketable title to the Option Property free and clear of any and all liens, mortgages and
encumbrances, subject only to real estate taxes and assessments which are One Earth Energy’s
responsibility under Section 6 above, easements, rights-of-way, streets, and any other matters
affecting title which One Earth Energy agrees to take title subject to pursuant to Section 7 above,
and the rights of existing tenant, Jerry Oyer, to farm the property during the 2006 crop year.

     In the event One Earth Energy exercises the Option, Grantor agrees to cooperate with One Earth
Energy in providing whatever notices are legally required to terminate the farm tenancy of Jerry
Oyer with respect to the Option Property at the conclusion of the 2006 crop year.

     9. Acts Prior to Closing. From the date hereof until Closing: (i) One Earth Energy
and its designees shall have the right to enter the Real Estate and the Option Property to conduct
inspections, studies and investigations; (ii) Grantor shall keep and preserve the Option Property
in its present condition; and (iii) Grantor shall not enter into, modify or terminate any agreement
relating to or affecting the Option Property which will extend in force beyond the Closing Date.

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     10. Closing. The consummation of the transactions contemplated by this Agreement (the
“Closing”) shall take place at a date (the “Closing Date”), time and place mutually agreeable to
the parties, but in no event later than ninety (90) days from the later of: (i) One Earth Energy’s
exercise of the Option; or (ii) Grantor’s delivery of the title insurance commitment pursuant to
Section 7 above.

     11. Closing Obligations. At Closing: (i) Grantor shall execute and deliver to One
Earth Energy a Warranty Deed conveying the Option Property to One Earth Energy in accordance with
the terms of this Agreement, along with any other documents necessary to convey marketable title of
the Option Property or to effectuate a closing of the transaction contemplated by this Agreement;
and (ii) One Earth Energy shall deliver to Grantor the Purchase Price and any documents reasonably
necessary to effectuate a closing of the transaction contemplated by this Agreement.

     12. Default; Remedies. If either party breaches this Agreement, the other party shall
be entitled to exercise any and all remedies or actions at law or in equity available to it,
including, but not limited to, specific performance.

     13. Effectiveness. This Agreement shall become effective only upon execution by
Grantor and return of an executed original hereof to One Earth Energy on or before April 18
, 2006. Upon execution by Grantor prior to such date, Grantor shall insert the date of
Grantor’s execution hereof in the first line hereof, which shall be deemed the effective date of
this Agreement. In the event this Agreement has not been executed and delivered by Grantor to One
Earth Energy on or prior to such date, it shall be null and void and of no force or effect.

     14. Recordable Form; Additional Documents. Either party may record this document or a
memorandum hereof, and both parties agree to execute such other instruments or agreements in
recordable form as the other party may request (including, without limitation, a Contract For Sale
of Real Estate) to effectuate the terms of this Agreement.

     15. Miscellaneous. This Agreement, including the recitals set forth above and any
exhibits attached hereto, constitutes the entire understanding between the parties concerning the
subject matter hereof. This Agreement shall be governed by and construed in accordance with
Illinois law, and shall not be modified except in a writing signed by all parties. All notices
hereunder shall be in writing. This Agreement is binding upon the parties and their heirs,
representatives, agents, successors and permitted assigns. Time is of the essence with respect to
this Agreement and all dates and timelines set forth herein. This Agreement may be assigned by One
Earth Energy upon written notice to Grantor. Except as provided in the preceding sentence, neither
this Agreement nor any parties’ rights or obligations shall be assigned without the prior written
consent of the other party. If any provision herein is held to be invalid or unenforceable, the
remaining provisions shall not be affected. No omission or delay by either party in enforcing any
right or remedy or in requiring any performance hereunder shall constitute a waiver. The remedies
herein are cumulative and in addition to all other remedies available at law and in equity. The
headings contained herein are for convenience only and shall not be considered in interpreting this
Agreement. All covenants, warranties, representations and indemnification obligations set forth in
this Agreement shall survive the termination or expiration hereof.

     16. Repurchase. As a condition of the within Agreement, the parties acknowledge that
One

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Earth Energy has made representations to Grantor that it will be constructing an ethanol
production plant which will employ approximately forty (40) employees in the area. In the event
that One Earth Energy has failed to commence and actively continue construction of said ethanol
production plant within twenty-four (24) months of final closing and settlement between the parties
as contemplated under this Agreement, then Grantor shall have the option to repurchase the Option
Property at the original purchase price under the same purchase terms of this Agreement (except for
the within Repurchase provision). In such event, Grantor’s option to repurchase the property shall
extend commencing with the first day after the expiration of the twenty-four (24) month term
described above and continuing for twelve (12) months thereafter.

     17. Easements. The parties further acknowledge that there is an existing sanitary
sewer line within the Option Property and Grantor intends to install a new water main immediately
along and adjacent to the existing tracts. The parties agree prior to closing to negotiate in good
faith to allow Grantor to retain an exclusive public sanitary sewer and water main easement.

     IN WITNESS WHEREOF, the parties hereto have duly executed this OPTION AGREEMENT effective as
of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	ONE EARTH ENERGY, L.L.C.	 	 	 	CITY OF GIBSON, ILLINOIS	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/Steven Kelly
 

     Steve Kelly, President
	 	 	 	By:
	 	/s/Daniel Dickey
 

          Mayor Daniel Dickey
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	ATTEST:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	/s/Vickie Lorenzen	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	          Vickie Lorenzen, City Clerk	 	 

	 	 	 
	STATE OF ILLINOIS

	 	)
	 

	 	) ss.
	COUNTY OF FORD

	 	)

     On this 18th day of April , 2006, before me, the undersigned, a Notary Public
in and for the State of Illinois, personally appeared Steve Kelly, as President of One Earth
Energy, L.L.C., to me known to be the identical persons named in and who executed the foregoing
instrument on behalf of One Earth Energy, L.L.C., and acknowledged that he executed the same as his
voluntary act and deed.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	/s/Sarah R. Sarantkos	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	     Notary Public In and For the State of Illinois	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	STATE OF ILLINOIS

	 	)
	 	 	 	 	 	[Notary Seal]	 	 
	 

	 	) ss.
	 	 	 	 	 	“OFFICIAL SEAL”	 	 
	COUNTY OF FORD

	 	)
	 	 	 	 	 	Sarah R. Sarantkos	 	 
	 

	 	 	 	 	 	 	 	Notary Public, State of Illinois	 	 
	 

	 	 	 	 	 	 	 	My Commission Expires 01-15-10	 	 

     On this 18th  day of April , 2006, before me, the undersigned, a Notary Public
in and for the State of Illinois, personally appeared Daniel Dickey, Mayor of the City of Gibson,
to me known

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to be the identical person named in and who executed the foregoing instrument, and
acknowledged that he executed the same as his voluntary act and deed.

	 	 	 	 	 	 	 
	 	 	/s/Sarah R. Sarantakos	 	 
	 	 	 	 	 
	 	 	     Notary Public In and For the State of Illinois	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	[Notary Seal]	 	 
	 

	 	 	 	“OFFICIAL SEAL”	 	 
	 

	 	 	 	Sarah R. Sarantkos	 	 
	 

	 	 	 	Notary Public, State of Illinois	 	 
	 

	 	 	 	My Commission Expires 01-15-10	 	 

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EXHIBIT A

[Attach legal description of Real Estate]

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EXHIBIT A

TRACT 2:

A part of the Northwest Quarter of Section 10, Township 23 North, Range 7 East of the Third
Principal Meridian, Gibson City, Ford County, Illinois, more particularly described as follows:
Beginning at the Northeast Corner of Lot 4 in the First Addition to Jordan Industrial Park
Subdivision in the City of Gibson City, Illinois, according to the Plat recorded as Document No.
205053 in the Ford County Recorder’s Office. From said Point of Beginning, thence west 1146.34
feet along the North Line of said Lot 4 to the Northwest Corner thereof; thence north 543.85 feet
along the East Right-of-Way Line of Jordan Drive according to the Dedication thereof recorded as
Document No. 212435 in Said Recorder’s Office which forms an angle to the left of 90 — 00’ — 00”
with the last described course; thence east 20.00 feet along said Right-of-Way Line which forms an
angle to the left of 89 — 39’ — 36” with the last described course; thence north 60.00 feet along
said Right-of-Way Line which forms an angle to the left of 270 — 20’ – 24” with the last described
course to the Northeast Corner of said Jordan Drive, said corner being on the South Line of a Tract
of Land Conveyed by Special Warranty Deed recorded as Document No. 216254 in said Recorder’s
Office; thence east 150.85 feet along said South Line which forms an angle to the left of 89 — 39’
- 36” with the last described course to the Southeast Corner thereof; thence north 550.00 feet
along the East Line of said Tract which forms an angle to the left of 269 — 57’ — 50” with the
last described course to the Northeast Corner thereof, said corner being on the North Line of the
Northwest Quarter of said Section 10; thence east 979.71 feet along said North Line which forms an
angle to the left of 90- 02’ — 10” with the last described course to the Northeast Corner of the
Northwest Quarter of said Section 10; thence south 1147.04 feet along the East Line of the
Northwest Quarter of said Section 10 which forms an angle to the left of 89 — 57’ — 15” with the
last described course to the Point of Beginning containing 28.17 acres, more or less.

TRACT 3:

Lot 4 in the First Addition to Jordan Industrial Park Subdivision in the City of Gibson City, Ford
County, Illinois according to the Plat recorded as Document No. 205053 in the Ford County
Recorder’s Office excepting therefrom the East 100 Feet of even width thereof.

Said Tract 3 contains 15.49 acres, more or less.

 

 

TRACT 4:

A part of Lot 2 in the First Addition to Jordan Industrial Park Subdivision in the City of Gibson
City, Ford County, Illinois, according to the Plat recorded as Document No. 205053 in the Ford
County Recorder’s Office, more particularly described as follows: Beginning at the Southeast Corner
of said Lot 2 being a point on the North Right-of-Way Line of Illinois Route 9. From said Point of
Beginning, thence northwest 26.26 feet along the South Line of said Lot 2 to the Southeast Corner
of a Parcel of Land Conveyed by Deed recorded as Document No. 216831 in said Recorder’s Office;
thence north 210.85 feet along the East Line of said Parcel which forms an angle to the left of 93
- 33’ — 30” with the last described course to the Northeast Corner thereof; thence west 449.44 feet
along the North Line of said Parcel and the North Line of a Parcel of Land Conveyed by Deed
recorded as Document No. 215689 in said Recorder’s Office which lines form an angle to the left of
270 — 56’ — 03” with the last described course to the Northwest Corner of said Parcel recorded as
Document No. 215689; thence north 399.53 feet along the West Line of said Lot 2 which forms an
angle to the left of 90 — 00’ — 00” with the last described course to the Southwest Corner of
Outlot 5 in said First Addition; thence east 50.00 feet along the South Line of said Outlot 5 which
forms an angle to the left of 90 — 00’ — 00” with the last described course to the Southeast
Corner thereof; thence north 50.00 feet along the East Line of said Outlot 5 which forms an angle
to the left of 270 — 00’ — 00” with the last described course to the Northeast Corner thereof,
said Northeast Corner being on the North Line of said Lot 2; thence east 432.96 feet along the
North Line of said Lot 2 which forms an angle to the left of 90 — 00’ — 00” with the last
described course to the Northeast Corner thereof; thence south 662.20 feet along the East Line of
said Lot 2 which forms an angle to the left of 89 — 03’ — 57” with the last described course to
the Point of Beginning, containing 5.02 acres, more or less.

Notwithstanding the foregoing legal descriptions in tracts 2, 3, 4, said conveyance will not
include the following parcels 1, 2, 3, and 4:

Parcel 1: A part of the Northwest Quarter of Section 10, Township 23, North, Range 7 East
of the Third Principal Meridian, Gibson City, Ford County, Illinois, being a strip of land 30 feet
in width lying south of an adjacent to the South Line of a Tract of Land conveyed to Ameren Energy
Generating Company by Special Warranty Deed, recorded September 11, 2000 as Document No. 216254 in
Ford county Recorder’s Office. Said strip is bounded on the west by the West Line of the Northwest
Quarter of said Section 10 and on the east by the West Line of Lot 8 in Jordan Industrial Park
Subdivision Third Addition in said City, according to the Plat recorded as Document No. 226871 in
said Recorder’s Office. Said Parcel 1 contains 0.824 acres, more or less.

Parcel 2: A part of the Northwest Quarter of Section 10, Township 23 North, Range 7 East of
the Third Principal Meridian, Gibson City, Ford County, Illinois, being a strip of land 30 feet in
width lying south of and adjacent to the South Line of a Tract of Land conveyed to Ameren Energy
Generating Company by Special Warranty Deed, recorded September 11, 2000 as

 

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Document No. 216254 in
Ford county Recorder’s Office. Said strip is bounded on the west by the West Line of
Lot 8 in Jordan Industrial Park Subdivision Third Addition in said City, according to the Plat
recorded as Document No. 226871 in said Recorder’s Office and on the east by the East Line of said
Lot 8. Said Parcel 2 contains 0.126 acres, more or less.

Parcel 3: A part of the Northwest Quarter of Section 10, Township 23 North, Range 7 East of
the Third Principal Meridian, Gibson City, Ford County, Illinois, being a strip of land 30 feet in
width lying south of and adjacent to the South Line of a Tract of Land conveyed to Ameren Energy
Generating Company by Special Warranty Deed, recorded September 11, 2000 as Document No. 216254 in
Ford county Recorder’s Office. Said strip is a part of the 120-foot wide portion of the Jordan
Drive Right-of-Way in said City according to the Dedication recorded as Document No. 212435 in said
Recorder’s Office and is bounded on the west by the West Right-of-Way Line thereof and on the east
by the East Right-of-Way line thereof. Said Parcel 3 contains 0.082 acre, more of less.

Parcel 4: A part of the Northwest Quarter of Section 10, Township 23 North, Range 7 East of
the Third Principal Meridian, Gibson City, Ford County, Illinois, being a strip of land 30 feet in
width lying south of and adjacent to the South Line of a Tract of Land conveyed to Ameren Energy
Generating Company by Special Warranty Deed, recorded September 11, 2000 as Document No. 216254 in
Ford county Recorder’s Office. Said strip is bounded on the west by the East Right-of-Way Line of
the 120-foot wide portion of Jordan Drive in said City according to the Dedication recorded as
Document No. 212435 in said Recorder’s Office and on the east by the Southerly Extension of the
East Line of said tract conveyed to Ameren Energy Generating Company. Said Parcel 4 contains 0.104
acre, more of less.

 

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RESOLUTION NO. 2006 R-04

RESOLUTION AUTHORIZING SALE OF MUNICIPALLY

OWNED REAL ESTATE IN

JORDAN INDUSTRIAL PARK

CITY OF GIBSON CITY

FORD COUNTY, ILLINOIS

PASSED BY

THE CITY COUNSEL

AND APPROVED BY

THE MAYOR

ON THE 18TH DAY OF APRIL, 2006

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CITY OF GIBSON CITY

FORD COUNTY, ILLINOIS

			
	 	 	 
	Resolution No. 2006 R-04
	 	April 18, 2006

RESOLUTION AUTHORITY SALE OF MUNICIPALLY

OWNED REAL ESTATE IN

JORDAN INDUSTRIAL PARK

     WHEREAS, the City of Gibson City owns the following M-2 Manufacturing District zoned real
estate in the City of Gibson City:

     Property commonly known as Jordan Industrial Park situation in Gibson City legally described
on Exhibit A attached hereto and by reference incorporated herein; and

     WHEREAS, the purpose of the City’s acquisition and subdivision of said property is to
encourage private ownership and development of this property and the City having previously
determined it surplus property and authorized its sale by resolution and otherwise having marketed
it for sale to public for a number of years; and

     WHEREAS, a contemplated sale of property to One Earth Energy, LLC, pursuant to the attached
Option Agreement would result in an ethanol plant which would generate high paying jobs for the
community; and

     WHEREAS, the City of Gibson City has procured an appraisal by Appraisal Services of Central
Illinois, Rick Bowen (a licensed appraiser) confirming that the value of said premises is
$8,000.00; and

     WHEREAS, Illinois Statutes, 65 ILCS 5/11-76-4.1 permits the sale of surplus municipal real
estate based upon such an appraisal, at a price not less than 80% of such appraisal; and

     WHEREAS, the Mayor and City Council find and determine that said property has been publicly
for sale for many years and that the best interests of the City and its residents will be served by
the sale of said property to One Earth Energy, LLC, for the sum of $6,400.00 per acre, as provided
herein, which sale is agreeable to said Purchaser all pursuant to an Option Agreement attached
hereto and by reference incorporated herein and identified as Exhibit B.

     NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of the City of Gibson City, Ford
County, Illinois, as follows:

	 	1.	 	The real estate described on Exhibit A remains surplus real estate
owned by the City which should be sold by City staff.
	 
	 	2.	 	The sales price provided for in the Option Agreement is equal to at least 80%
of the appraised value thereof pursuant to a current appraisal and the sale of said
property is

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	 	 	 	accordingly authorized by Illinois Complied Statutes, Chapter 65, Section
5/11-76-4.1. Said appraisal is available for public inspection at the City Clerk’s
office.
	 
	 	3.	 	The sale of said real estate proposed by One Earth Energy, LLC is for $6,400.00
per acre cash with a closing as soon as is convenient as provided in the Option
Agreement.
	 
	 	4.	 	The attached Option Agreement is hereby approved, and the Mayor is authorized
and directed to sign and the City Clerk is authorized and directed to attest said
Option Agreement in substantially the same form presented to the City Council.
	 
	 	5.	 	Upon satisfaction of the terms of the aforesaid Option Agreement and upon
payment of the monies due therein, the Mayor is hereby authorized and directed to
convey and transfer the aforesaid real estate by a proper deed of conveyance, stating
therein the aforesaid consideration, and the City Clerk is hereby authorized to attest
such deed and to affix thereto the seal of the City of Gibson City.
	 
	 	6.	 	In such case, The Mayor and the Clerk are also authorized to execute and attest
such other documents as may be necessary to the said sale and the City Attorney is
directed to facilitate the sale.
	 
	 	7.	 	This Resolution shall be in full force and effect from and after its passage,
by a vote of at least three fourths of the corporate authorities now holding office,
and approval in the manner provided by law.

     Presented, passed and approved at a regular meeting of the Mayor and City Council of the City
of Gibson City, Illinois, on April 18, 2006.

	 	 	 	 	 
	 

	 	APPROVED:
	 	 
	 
	 	 	 	 
	 

	 	/s/Daniel Dickey	 	 
	 

	 	 	 	 
	 

	 	Daniel Dickey	 	 
	 

	 	City Mayor	 	 

	 	 	 	 	 
	ATTEST:
	 	 	 	 
	 
	 	 	 	 
	/s/Vickie Lorenzen
 

City Clerk

	 	 	 	 

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CERTIFICATE

     I, VICKIE LORENZEN, certify that I am the duly appointed and acting municipal clerk of the
City of Gibson City, Ford County, Illinois.

     I further certify that on April 18, 2006, the Corporate Authorities of such municipality
passed and approved Resolution No. 2006-R-04 ENTITLED RESOLUTION AUTHORIZING SALE OF
MUNICIPALLY OWNED REAL ESTATE IN JORDAN INDUSTRIAL PARK.

     DATED at Gibson City, Illinois, this 18th day of April 2006.

	 	 	 	 	 
	 

	 	/s/Vickie Lorenzen
	 	 
	 

	 	 	 	 
	 

	 	VICKIE LORENZEN	 	 
	 

	 	City Clerkexv10w8

 

EXHIBIT 10.8

CONSULTING AGREEMENT

     This Consulting Agreement (the “Agreement”) is made this  22  day of  May
, 2006 (the “Effective Date”), by and between Above Zero Media, LLC, a North Dakota limited
liability company, with an address of 3049 24th Avenue SW Fargo, North Dakota 58103,
(Above Zero Media), and One Earth Energy, LLC, an Illinois limited liability company, with an
address of 1306 West 8th Street, Gibson City, IL 60936 (“Client”).

RECITALS:

     WHEREAS, Client intends to develop, finance and construct a 100 million gallon dry mill
ethanol plant in or near Gibson City, Illinois (the “Project”); and

     WHEREAS, Client wishes to engage Above Zero Media to provide certain services related to the
Project.

     NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein,
Client engages Above Zero Media, and Above Zero Media accepts engagement, upon the terms and
conditions hereinafter set forth.

1. Term; Termination. Above Zero Media’s engagement with Client shall commence as
of the Effective Date and shall continue, unless extended by mutual agreement of the
parties or sooner terminated as provided herein, until the actual closing (execution and
delivery of all required documents) by Client with its project lender(s) for debt
financing, including senior and subordinated debt and any other Project financing
characterized by debt obligations and repayable as debt which is required by the Project
lender(s) or which is deemed necessary or prudent in the sole discretion of Client’s board
of directors (“Financial Close”). Notwithstanding the foregoing, either party may
terminate the Agreement, at any time with or without cause, upon thirty (30) days prior
written or oral notice to the other party.

2. Services. Above Zero Media shall serve as Client’s Project consultant. Above
Zero Media’s service providers (described in section 9 of this Agreement) shall perform the
following duties incident to that service subject to Client’s approval (“Services”):

	 	a.	 	Assist negotiations of contracts with various service and
product providers;
	 
	 	b.	 	Assist the planning of the Clients’ equity marketing effort,
including, without limitation, preparation of written and visual equity
marketing materials (including, but not limited to, a power point presentation
and informational video), and training Client’s officers and directors to
conduct Client’s equity marketing effort;

 

 

	 	c.	 	Assist the education of local lenders including, without
limitation, the preparation of a “banker’s book” tailored to the Project; and
	 
	 	d.	 	Assist in graphic design of the Client’s marketing materials;
	 
	 	e.	 	Assist in placement of print and electronic media;
	 
	 	f.	 	Assist in planning of the Client’s local marketing efforts;
	 
	 	g.	 	Assist in recommendation of equipment needs for presentation;
and
	 
	 	h.	 	Perform such other services as Client may from time to time
reasonably request, provided that such other services are reasonably within
the scope of the Services the parties anticipate will be provided as set forth
in this Agreement.

Notwithstanding the foregoing, neither Above Zero, nor its members, managers, officers,
employees or agents shall be asked to, nor will actually solicit an offer to buy, or accept
an offer to sell, any equity security to be issued by Client.

Subject to Client’s approval, Above Zero Media shall determine the manner in which Services
are to be performed and the specific hours to be worked by Above Zero Media. Above Zero
Media acknowledges and agrees to work as many hours as may be reasonably necessary to
fulfill Above Zero Media’s commitments under this Agreement, in the sole discretion of
Client.

3. Payment. Payment for Services shall be as follows:

	 	a.	 	Client shall pay to Above Zero Media a one-time commitment
fee of Fifteen Thousand Dollars ($15,000.00) upon the Effective Date (the
“Commitment Fee”).
	 
	 	b.	 	Client shall pay to Above Zero Media Sixty Thousand Dollars
($60,000) which shall earned and payable upon receipt by Client from Above
Zero Media of satisfactory written and visual equity marketing materials
(including, but not limited to, a power point presentation and informational
video) for use in its equity marketing effort (the “Payment for Materials”).
	 
	 	c.	 	Client shall pay to Above Zero Media an additional Sixty
Thousand Dollars ($60,000), which shall earned and payable thirty (30) days
following the date upon which the amount required by section 3(b) above is
earned and payable (the “Interim Payment”).

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	 	d.	 	At least one of Above Zero Media’s representatives will be
physically present to provide necessary technical assistance to Client at the
first equity marketing meeting of Client and shall thereafter continue to be
available to be present at various locations as needed and in Client’s sole
discretion. In consideration, Client shall pay Three Hundred Dollars ($300)
per day as additional payment for each day Above Zero Media is physically
present and on location. In no event shall Client be required to pay more
than Fifteen Hundred Dollars ($1,500) for any weekly period. This payment
shall not be increased even if more than one Above Zero Media representative
is present and on location pursuant to this section 3(d).
	 
	 	e.	 	Within 14 days following Financial Close, Client shall pay to
Above Zero Media Fifteen Thousand Dollars ($15,000) for the completion of
Services, which shall be earned and payable upon and subject to Financial
Close (the “Bonus”).

4. Expenses. Upon Above Zero Media providing to Client proper documentation,
Client shall reimburse Above Zero Media for all reasonable, ordinary and necessary expenses
incurred by Above Zero Media in performance of its duties hereunder, including without
limitation, reimbursement for automobile mileage at the rate periodically set by the
Internal Revenue Service, air fare, meals and lodging. However, in no case shall the
aggregate total of any such expense reimbursements exceed One Thousand Dollars ($1,000.00)
for any one (1) week period without prior approval by Client.

5. Termination of Agreement. If Client terminates Above Zero Media with Cause (as
hereafter defined), upon such termination Above Zero Media shall have no further rights
under the terms of this Agreement other than to payment for Services to which Above Zero
Media may be entitled through the date of termination as provided by this Agreement. For
purposes of this Agreement, termination for Cause shall mean termination of Above Zero
Media after failure to correct an Event of Default by Above Zero Media pursuant to section
18. If Client terminates Above Zero Media without Cause at any time before the Payment for
Materials becomes due and payable pursuant to section 3(b), Above Zero Media shall have no
further rights under the terms of this Agreement other than to payment for Services to
which Above Zero media may be entitled through the date of termination as provided by this
Agreement. If Client terminates Above Zero Media without Cause at any time after the
Payment for Materials becomes due and payable, Client shall still be obligated to pay the
Interim Payment and the Final Payment to Above Zero Media when and as due under sections
3(c) and 3(e) above.

If Above Zero Media terminates the Agreement for any reason, upon such termination neither
Client nor Above Zero Media shall have any further rights or obligations under the terms of
this Agreement other than those provided by

3

 

Sections 6, 10, 12 and 13 or for delivery of
payments for Services to which Above Zero Media may be entitled through the date of
termination as provide by this Agreement.

6. Confidentiality. In providing Services hereunder, Above Zero Media may have
access to documents and information relating to Client and its properties and business
operations (hereafter referred to as “Confidential Information”). All such Confidential
Information shall at all times during the term of this Agreement and for a period of two
(2) years thereafter, be treated as confidential and sensitive proprietary business
information. Above Zero Media shall not, unless compelled by legal process, except in
accordance with the express terms of this Agreement or with the prior written consent of
Client, disclose or permit the disclosure of any Confidential Information to any person or
entity whatsoever, unless such information is otherwise readily available in the public
domain. This section shall survive the termination of this Agreement.

7. Support Services. Client shall provide the following support services for the
benefit of Above Zero Media, as approved by Client: office space, secretarial support
(phone callers), and office supplies. These support services will be coordinated through
the project coordinator at Client’s office location.

8. Relationship of the Parties. The parties understand that Above Zero Media is an
independent contractor with respect to Client, and not an employee of Client. Except as
provide in section 7 above, Above Zero Media, at its sole expense, shall be responsible for
providing all equipment, materials, supplies and other items necessary or useful in
fulfilling its obligations hereunder, and shall retain the right to control and direct the
manner in which Services are to be performed. Notwithstanding the foregoing, Client agrees
that it will be responsible for providing the equipment it uses in presentations made as
part of its equity marketing effort.

9. Service Providers. Douglas Anderson, Dawn Hebert and Lynn Synhorst shall
provide the majority of Services under this Agreement. Notwithstanding the foregoing,
Above Zero Media may substitute its other personnel to provide Services under this
Agreement on a limited basis as needed, with Client’s prior consent. Above Zero Media’s
employees, members, or agents who perform Services for Client under this Agreement shall be
bound by the terms of this Agreement.

10. Taxes; Benefits. Above Zero Media shall be solely liable for, and shall
indemnify and hold the Client harmless from and against, all taxes on any compensation
earned as an independent contractor hereunder, including federal and state income taxes,
self-employment taxes, FICA and FUTA taxes, etc. Above Zero Media shall be solely
responsible for all insurance, including but not limited to medical, disability, workers
compensation, and unemployment insurance.

4

 

Above Zero Media shall not be entitled to
participate in any benefits maintained by Client. This section shall survive the
termination of this Agreement.

11. Insurance. Above Zero Media and Client shall each obtain, maintain and keep in
full force and effect during the term of this Agreement such insurance coverages and in
such amounts as Client may reasonably require, including, without limitation, the
following:

	 	a.	 	Commercial general liability insurance with policy limits
that have a combined single limit of One Million Dollars ($1,000,000.00); and
	 
	 	b.	 	Business automobile liability insurance, covering owned,
non-owned and hired vehicles with a combined single limit of One Million
Dollars ($1,000,000.00).

All insurance provided for in this section 10 shall be effective under valid and
enforceable policies issued by insurers of recognized responsibility, licensed to do
business in states where the respective parties currently conduct business. Each party
shall name the other as an additional insured with respect to each policy. Each party
shall furnish the other with proof of the payment of all premiums due on said policies of
insurance and that the policies of insurance are in full force and effect. Each policy or
certificate of insurance shall contain an agreement by the insurer that coverages shall not
cancelled for any reason without at least 30 days prior written notice to the other party.

12. Indemnification. Client shall indemnify and defend Above Zero Media and its
employees, members, managers, officers, and agents against expenses actually and reasonably
incurred in connection with the defense of any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative, arbitrative or investigative
(a “Proceeding”), in which Above Zero Media and/or its employees, members, managers,
officers or agents are made a party by reason of performing services for Client or acting
in any manner pursuant to this Agreement, except that Client shall have no obligation to
indemnify and defend Above Zero Media and/or its employees, members or agents for its
and/or their act or omission that involve negligence, intentional misconduct or a violation
of the law. Above Zero Media shall indemnify and defend Client and its employees, members,
directors, officers and agents against expenses actually and reasonably incurred in
connection with the defense of any Proceeding in which Client and/or its employees,
members, directors, officers or agents are made a party by reason of Above Zero Media’s
and/or its employees’, members’, managers’, officers’ or agents’ negligence, intentional
misconduct or violation of the law. The parties expressly agree that the commission of an
act or an omission by Above Zero Media and/or its employees, members, managers, officers or
agents that gives rise to an indemnity claim under this paragraph shall be deemed to be an
Event of Default under section 18. Either party may set off against any amount otherwise
owing to the other the amount of any indemnity

5

 

obligation pursuant to this section. This
section shall survive the termination of this Agreement.

13. Copyright License. Above Zero Media will author written and visual equity
marketing materials, Power Point presentations, advertisements, a “banker’s book”, training
materials and other literary works and audio visual works (the “Proprietary Information”)
in fulfillment of its duties hereunder. Above Zero Media hereby grants Client a
non-exclusive right and license to use the Proprietary Information for its and its
affiliates business and operations only. Client shall not have or acquire any proprietary
or other right whatsoever in the Proprietary Information, except as provided herein, all of
which rights belong exclusively to Above Zero Media. Client shall not sell, assign, gift,
sublicense or otherwise transfer to any third party (other than an affiliate of Client) any
rights in the Proprietary Information without the prior written consent of Above Zero
Media, with the granting of said consent to be in Above Zero Media’s sole discretion. This
section shall survive the termination of this Agreement.

14. Successors and Assigns. This Agreement shall be binding upon Client and Above
Zero Media, their respective heirs, executors, administrators, successors in interest or
assigns, including without limitation any partnership, corporation or other entity into
which Client may be merged or by which it may be acquired (whether directly, indirectly or
by operation of law), or to which it may assign its rights under this Agreement.
Notwithstanding the foregoing, Above Zero Media shall not assign the Agreement without
prior written consent of Client.

15. Waiver. The waiver by either party of its rights under this Agreement or the
failure of a party to promptly enforce any provision hereof shall not be construed as a
waiver of any subsequent breach of the same or any other covenant, term or provision.

16. Notices. Any notice required to be given hereunder shall be in writing and
shall be deemed to be sufficiently served by either party on the other party if such notice
is delivered personally or is sent by certified or first class mail addressed as follows,
or such substitute street addresses as the parties may provide in writing:

	 	 	 	 	 	 	 
	 

	 	To Above Zero Media:
	 	Above Zero Media, LLC	 	 
	 

	 	 	 	Attn: Lynn Synhorst	 	 
	 

	 	 	 	3049 24th Ave. SW
	 	 
	 

	 	 	 	Fargo, ND 58103	 	 
	 
	 	 	 	 	 	 
	 

	 	To Client:
	 	One Earth Energy, LLC	 	 
	 

	 	 	 	Attn: Steven P. Kelly	 	 
	 

	 	 	 	1306 West 8th Street	 	 
	 

	 	 	 	Gibson City, IL 60936	 	 

6

 

17. Applicable Law. This Agreement and all obligations created hereunder or
required to be created hereby shall be governed by and construed and enforced in accordance
with the laws of the State of Illinois, and the parties hereby consent that the District
Court situated in Champaign County, Illinois, shall be the exclusive jurisdiction and venue
of any disputes relating to this Agreement.

18. Defaults. In the event of the failure of either of the parties to comply with
any of the terms and provisions of this Agreement, or in the event either party has
violated any of the warranties and representations made herein by that party, then such
party shall be deemed to be in default hereunder. In such event, the non-defaulting party
may provide written notice of such noncompliance, and in such case, the defaulting party
shall have seven (7) days from the date of such notice within which to correct such
noncompliance. If such default has not been corrected, or an arrangement satisfactory to
the complaining party has not been made by the end of the notice period, then the
complaining party may take whatever action is necessary, and exercise all remedies
available in order to protect the complaining party’s rights under the terms and conditions
of this Agreement. The parties agree that the remedies set forth in this section 17 shall
not be exclusive, but they shall be cumulative with all other rights and remedies
available, at law or in equity, to the parties. In the event of any dispute between the
parties resulting from this Agreement or any provisions hereunder, the prevailing party in
any such dispute shall be entitled to recover reasonable attorneys’ fees and such other
costs incurred therewith.

19. Severability. In the event that any term, condition, or provision of this
Agreement is held to be invalid by any court of competent jurisdiction, such holding or
holdings shall not invalidate or make unenforceable any other term, condition or provision
of this Agreement. The remaining terms, conditions and provisions shall be fully
severable, and shall be construed and enforced as if such invalid term, condition or
provision had never been inserted in this Agreement initially.

20. Entire Agreement. This Agreement constitutes the entire Agreement between the
parties hereto with regard to the subject matter hereof, and there are no agreements,
understandings, specific restrictions, warranties or representations relating to said
subject matter between the parties other than those set forth herein or herein provided
for. No amendment or modification of this Agreement shall be valid or binding unless in
writing and signed by the party against whom such amendment or modification is to be
enforced.

21. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be considered an original document, but all of which shall be considered one
and the same agreement and shall become binding when one or more counterparts have been
signed by each of the parties.

(Signature Page Follows)

7

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the Effective Date.

	 	 	 	 	 	 	 	 	 	 	 
	ABOVE ZERO MEDIA,

LLC	 	 	 	ONE EARTH ENERGY,

LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	/s/Douglas Anderson
 

     Douglas Anderson
	 	 	 	By

Its
	 	/s/Steven Kelly
 

President
	 	 
	Its
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	And
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	/s/Dawn Hebert
 

     Dawn Hebert
	 	 	 	 	 	 	 	 
	Its
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	And
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	/s/Lynn Synhorst	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	     Lynn Synhorst	 	 	 	 	 	 	 	 
	Its
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

8

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