Document:

exv4w2

 

Exhibit 4.2

FIRST UNITED 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

	 	 	 	(10% of the Total Purchase
	 	 	 	(90% of the Total Purchase
	number in box B above.)

	 	 	 	Price)
	 	 	 	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 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___, 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 $28,400,000 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___ 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___. 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
Amended and 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 one of our directors listed below or to FUEL: at (229) 522-2822.

	 	 	 	 	 
	NAME	 	POSITION	 	PHONE 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
	J.
Harris Morgan

	 	Director
	 	229-336-7758

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.)
	 
	 	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:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

3

 

	 	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; Alabama, Florida and
Georgia; and exemptions from securities registrations in 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 Alabama, 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 Alabama, 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 Amended and Restated
Operating Agreement, dated____, 2005, and understands that upon closing the escrow
by FUEL, the subscriber and the membership units will be bound by the
provisions of the 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 Amended and Restated Operating Agreement and agrees that if the
membership units or any part thereof are sold or distributed

4

 

	 	 	 	 	 
	 

	 	 	 	in the future, the subscriber shall sell or distribute them pursuant to the
terms of the 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 UNITS REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED
UNDER ANY SECURITIES LAW AND THE TRANSFERABILITY OF SUCH 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 BY THE ISSUER FOR ANY
PURPOSES, UNLESS (i) A REGISTRATION UNDER THE SECURITIES ACT OF 1933
(as amended) WITH RESPECT TO SUCH UNITS SHALL THEN BE IN EFFECT AND
SUCH TRANSFER HAS BEEN QUALIFIED UNDER APPLICABLE STATE SECURITIES
LAWS, ESTABLISHED TO THE SATISFACTION OF COUSNESL TO THE COMPANY.

ADDITIONALLY, NO UNITS REPRESENTED BY THIS INSTRUMENT MAY BE SOLD,
ASSIGNED, PLEDGED, GIFTED, BEQUEATHED OR OTHERWISE TRANSFERRED EXCEPT
AS PROVIDED IN THE OPERATING AGREEMENT OF THE COMPANY. COPIES OF THE
OPERATING AGREEMENT ARE AVAILABLE FOR INSPECTION AT THE PRINCIPAL
OFFICE OF THE COMPANY.

	 	 	 	 	 
	                    

	 	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.
	 	has examined the information presented in the prospectus and
exhibits and is competent to evaluate and establish that the investment is
consistent with the subscriber’s risk tolerance and investment goals such that
the subscriber can bear the economic risk of the purchase of Units including
the total loss of the undersigned’s investment;
	                    

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

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

	 	p.
	 	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);
	                    

	 	q.
	 	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
	                    

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

5

 

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______ 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

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 Amended and Restated
Operating Agreement, dated December 14, 2005, and, if applicable, all amendments and modifications thereto,
and does hereby agree that the undersigned, along with the other parties to the Amended and
Restated Operating Agreement, shall be subject to and comply with all terms and conditions of said
Amended and Restated Operating Agreement in all respects as if the undersigned had executed said
Amended and Restated Operating Agreement on the original date thereof and that the undersigned is
and shall be bound by all of the provisions of said Amended and Restated 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”) is made this
___day of       , 2005, by and between First United Ethanol, LLC a Georgia limited liability
company (“FUEL”) and
      as escrow agent (the “Escrow Agent”).

W I T N E S S E T H:

     WHEREAS, FUEL proposes to offer a minimum of 28,400 and a maximum of 78,000 of its Membership
Units (the “Units”) at a price of $1,000 per Unit, with a minimum purchase of (20) Units in an
offering registered with the Securities and Exchange Commission and in the states of Alabama,
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 (the “Offering”);

     WHEREAS, FUEL will file a registration statement to register the Units with the Securities and
Exchange Commission, the States of Alabama, Florida and Georgia, and possibly other states;

     WHEREAS, FUEL will allow investors in the Offering to deliver the purchase price of the
subscribed Units in installments; and

     WHEREAS, FUEL desires to comply with the requirements of federal and state securities laws and
regulations, and desires to protect the investors in the Offering by providing, under the terms and
conditions herein set forth, for the return to subscribers of the money which they may pay on
account of purchases of Units in the Offering if the Minimum Escrow Deposit (hereinafter defined)
is not deposited with the Escrow Agent.

     NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good
and valuable consideration, the receipt and sufficiency of which is acknowledged, the parties agree
as follows:

     1. Acceptance
of Appointment.
                     hereby agrees to act as Escrow Agent under this
Agreement. The Escrow Agent shall have no duty to enforce any provision hereof requiring
performance by any other party hereunder.

     2. Establishment of Escrow Account. An escrow account (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.

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

1

 

     4. Deposit of Proceeds. All proceeds from sales of Units in the Offering shall be
delivered by FUEL to the Escrow Agent, within forty-eight hours of the receipt thereof from
investors, endorsed (if appropriate) to the order of the Escrow Agent, together with an appropriate
written statement setting forth name, address and social security number of each person purchasing
Units, the number of Units purchased, and the amount paid by each such purchaser. Any such
proceeds deposited with the Escrow Agent in the form of uncollected checks shall be promptly
presented by the Escrow Agent for collection through customary banking and clearing house
facilities. 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. All such
deposited proceeds are referred to herein as the “Escrow Funds”.

     5. Investment of Escrow Account. The Escrow Funds shall be credited by the Escrow
Agent and recorded in the Escrow Account. The Escrow Agent shall be permitted, and 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 FUEL. The Escrow Agent is
hereby authorized to invest Escrow Funds in the Federated Treasury Obligations Money Market Mutual
Fund for temporary investment without written direction. Any interest received by the Escrow Agent
with respect to the Escrow Funds shall be paid to FUEL, or the investors, as indicated elsewhere in
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 authorizes the Offering (the “Offering’s Effective
Date”), provided; however, that if prior to Termination Date, the Company has sold membership units
equal to the minimum offering amount and the Company has advised the purchasers of those membership
units to remit to the Escrow Agent the balance of the purchase price, then the Escrow may continue
beyond the Termination Date until all Funds have been paid and the conditions for releasing the
Funds have been satisfied. In no event shall this date be later than three (3) months following
the Termination Date. The Company 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:

          A. The Escrow Agent shall send a written notice acknowledging the receipt of the
Deposited Funds every seven days to the Company.

          B. The Escrow Agent shall give the Company prompt written notice when the Deposited
Funds equal $2,840,000 (exclusive of interest). Following receipt of such notice, the
Company 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 Company
written notice acknowledging the receipt of the Deposited Funds every seven days. The
Escrow Agent shall give the Company prompt written notice when the Deposited Funds total
$28,400,000 (exclusive of interest).

2

 

          C. At the time (and in the event) that: (a) the Deposited Funds shall, during the term
of this Agreement, equal $28,400,000 in subscription proceeds (exclusive of interest) (the
“Minimum Escrow Deposit”); (b) the Escrow Agent shall have received written confirmation
from the Company that the Company has obtained a written debt financing commitment for debt
financing ranging from a minimum of $52,800,000 to a maximum of $102,400,000; (c) the
Company has affirmatively elected in writing to terminate this Agreement; and (d) the Escrow
Agent shall have provided to each state securities department in which the Company has
registered its securities for sale, as communicated to the Escrow Agent by the Company, an
affidavit stating that the foregoing requirements (a), (b) and (c) of this subsection 7C
have been satisfied, then this Agreement shall terminate, and the Escrow Agent shall
promptly disburse the funds on deposit, including interest, to the Company to be used in
accordance with the provisions set out in the Registration Statement. The Company 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.

          D. In the event the Deposited Funds do not equal or exceed the Minimum Escrow Deposit
on or before the Termination Date or if the Company 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: (a) the sum which each purchaser initially paid in on account of purchases of the
Units in the Offering and (b) each purchaser’s portion of the total interest earned on the
Escrow Account as of the Termination Date, (c) reduced by the transaction fees provided in
paragraph 10 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
Company 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 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 5) 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.

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     8. Agreement with Escrow Agent. To induce Escrow Agent to act hereunder, it is agreed
by FUEL that:

          A. The sole duty of the Escrow Agent, other than as herein specified, shall be to
receive the Escrow Funds and hold them subject to release, in accordance herewith, and the
Escrow Agent shall be under no duty to determine whether FUEL is complying with the
requirements of this Agreement in tendering to the Escrow Agent said proceeds of the sale of
said Units. The Escrow Agent may conclusively rely upon and shall be protected in acting
upon any statement, certificate, notice, request, consent, order or other document believed
by it to be genuine and to have been signed or presented by the proper party or parties.
The Escrow Agent shall have no duty or liability to verify any such statement, certificate,
notice, request, consent, order or other document, and its sole responsibility shall be to
act only as expressly set forth in this Agreement. The Escrow Agent shall be under no
obligation to institute or defend any action, suit or proceeding in connection with this
Agreement unless first indemnified to its satisfaction. The Escrow Agent may consult
counsel in respect of any question arising under this Agreement and the Escrow Agent shall
not be liable for any action taken or omitted in good faith upon advice of such counsel.

          B. FUEL hereby indemnifies and holds harmless the Escrow Agent from and against any and
all loss, liability, cost, damage and expense, including, without limitation, reasonable
counsel fees, which the Escrow Agent may suffer or incur by reason of any action, claim or
proceeding brought against the Escrow Agent arising out of or relating in any way to this
Agreement or any transaction to which this Agreement relates unless such action, claim or
proceeding is the result of the gross negligence or willful misconduct of the Escrow Agent.

     9. Resignation and Removal of Escrow Agent Successors. The Escrow Agent may resign
upon thirty (30) days advance written notice to FUEL. If a successor Escrow Agent is not appointed
within the 30-day period following such notice, Escrow Agent may petition any court of competent
jurisdiction to name a successor Escrow Agent. Any commercial banking institution or trust company
with which Escrow Agent may merge or consolidate, and any commercial banking institution or trust
company to which Escrow Agent transfers all or substantially all of its corporate trust business
shall be the successor Escrow Agent without further act.

     10. Fees and Expenses of Escrow Agent. FUEL 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, FUEL 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. The fee agreed upon herein is intended as full consideration
for the Escrow Agent’s services as contemplated by this Agreement; provided,
however, that in the event the Escrow Agent renders any material service not contemplated
in this Agreement or there is any assignment of interest in the subject matter of this Agreement,
or any material modification hereof; or if any material controversy arises hereunder, or the Escrow
Agent is made a party to any

4

 

litigation pertaining to this Agreement, or the subject matter hereof,
then the Escrow Agent shall be reasonably compensated for such extraordinary services and
reimbursed for all costs and expenses, including reasonable attorney’s fees, occasioned by any
delay, controversy, litigation or event, and the same shall be recoverable from FUEL, but not from
the escrow account.

     11. Notices. All notices, requests, demands, and other communications under this
Agreement shall be in writing and shall be deemed to have been duly given (a) on the date of
service if served personally on the party to whom notice is to be given, (b) on the day of
transmission if sent by facsimile transmission to the facsimile number given below, and telephonic
confirmation of receipt is obtained promptly after completion of transmission, (c) on the next day
on which such deliveries are made in Camilla, Georgia, when delivery is to Federal Express or
similar overnight courier or the Express Mail service maintained by the United States Postal
Service, or (d) on the fifth day after mailing, if mailed to the party to whom notice is to be
given, by first class mail, registered or certified, postage prepaid, and properly addressed,
return receipt requested, to the party as follows:

          If to Escrow Agent:

	 	 	 	 	 	 	 	 
	 	 	 
	 	 
	 
	 	 
	 	 	 
	 	 
	 
	 	 
	 	 	 
	 	 
	 
	 	 
	 	 	 
	 	 
	 	 	Attn:
	 	 
	 

	 	 	 
	 	 	Fax:
	 	 
	 	 

	 	 
	 	 	Phone:
	 	 
	 	 

	 	 	 

          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:

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

5

 

     12. Governing Law. This Agreement shall be construed, performed, and enforced in
accordance with, and governed by, the internal laws of the State of Georgia, without giving effect
to the principles of conflict of laws thereof.

     13. Successors and Assigns. Except as otherwise provided in this Agreement, no party
hereto shall assign this Agreement or any rights or obligations hereunder without the prior written
consent to the other parties hereto and any such attempted assignment without such prior written
consent shall be void and of no force and effect. This Agreement shall inure to the benefit of and
shall be binding upon the successors and permitted assigns of the parties hereto.

     14. Severability. In the event that any part of this Agreement is declared by any
court or other judicial or administrative body to be null, void, or unenforceable, said provision
shall survive to the extent it is not so declared, and all of the other provisions of this
Agreement shall remain in full force and effect.

     15. Further Assurances. Each of the parties shall execute such documents and other
papers and take such further actions, as may be reasonably required or desirable to carry out the
provisions hereof and the transactions contemplated hereby.

     16. Amendments. This Agreement may be amended or modified, and any of the terms,
covenants, representations, warranties, or conditions hereof may be waived, only by a written
instrument executed by the parties hereto, or in the case of a waiver, by the party waiving
compliance. Any waiver by any party of any condition, or of the breach of any provision, term,
covenant, representation, or warranty contained in the Agreement, in any one or more instances,
shall not be deemed to be nor construed as further or continuing waiver of any such conditions, or
of the breach of any other provision, term, covenant, representation, or warranty of this
Agreement.

     17. Entire Agreement. This Agreement contains the entire understanding among the
parties hereto with respect to the escrow contemplated hereby and supersedes and replaces all prior
and contemporaneous agreements and understandings, oral or written, with regard to such escrow.

     18. Section Headings. The section headings in this Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this Agreement.

     19. Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which together shall constitute one and the same
instrument.

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IN WITNESS WHEREOF, the parties hereto have hereunto affixed their signatures as of the day and
year first written above.

	 	 	 	 	 	 
	FUEL:

	 	ESCROW AGENT
	 
	 	 	 	 
	 
	 	 	 	 
	FIRST UNITED ETHANOL, LLC
	 	 	 	 
	 
	 
	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	 	By:	 	 
	 	 

	 	 	 
	 	Murray Campbell, President

	 	 	(Name)
	 
	 	 	 	 	 	 
	 

	 	 	Title:	 	 
	 

	 	 	 	 

7

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