Document:

exv4w5

 

Exhibit 4.5

APPENDIX A

FORM OF NOTICE OF ELECTION

[One Earth LLC Letterhead]

RESCISSION
OFFER ELECTION FORM _________ , 2007

     ___
I accept this rescission offer. Please refund the initial payment I made for
subscription of the membership units, plus interest at the statutory rate.

     ___
I decline this rescission offer and will continue my investment. I understand that my
right to sue under the securities laws of ___, with respect to the material changes
to One Earth Energy’s initial public offering extinguished with this offer of rescission.

     Note
for Indiana investors: According to Indiana State law, if you do
not return your election form, you will be deemed to have accepted
the rescission offer and your subscription will be cancelled.

	 	 	 
	                                                            

	 	                                        
	(Subscriber’s name and signature)

	 	(Date)

In order to register your election, you must return this completed Rescission Offer Election Form
to us at the following address:

One Earth Energy, LLC

1306 West 8th Street

Gibson City, Illinois 60936

IF YOU WISH TO CONFIRM YOUR SUBSCRIPTION, YOU MUST CHECK THE BOX AS INDICATED ABOVE AND RETURN THIS
FORM TO US. YOU MAY CHANGE YOUR ELECTION AT ANYTIME PRIOR TO EXPIRATION OF THE RESCISSION OFFER.
THE RESCISSION OFFER EXPIRES ON ___, 2007. ONCE YOU RETURN THE COMPLETED FORM AND THE
RESCISSION OFFER EXPIRES, YOUR ELECTION TO CONFIRM IS IRREVOCABLE, AND YOUR INVESTMENT WILL NOT BE
RETURNED, UNLESS WE REJECT YOUR SUBSCRIPTION. IF THIS FORM IS NOT COMPLETED AND RECEIVED BY US
BEFORE 5:00 p.m. CST on ___, 2007, YOUR RESCISSION RIGHTS ARE WAIVED, AND YOU WILL NOT BE
ABLE TO WITHDRAW YOUR INVESTMENT.exv4w3

 

 

Exhibit 4.3

ONE EARTH ENERGY, LLC

FARMERS ENERGY ONE EARTH, LLC

SUBSCRIPTION AGREEMENT

Limited Liability Company Membership Units

$5,000.00 per Unit

Minimum Investment of 7,011 Units for a minimum purchase price of $35,055,000 and up

to a maximum of 12,491 Units for a maximum purchase amount of $62,455,0001.

Farmers Energy One Earth, LLC, an Ohio limited liability company with its principal place of
business at 2875 Needmore Road, Dayton, OH 45414 (“Farmers Energy”), desiring to become a member of
One Earth Energy, LLC, an Illinois limited liability company, with its principal place of business
at 1306 West 8th Street, Gibson City, Illinois (“One Earth”), hereby subscribes for the
purchase of membership units (“Units”) of One Earth, and agrees to pay the related purchase price,
identified below.

A. NUMBER OF UNITS PURCHASED. Pursuant to that certain Terms Sheet executed by Farmers Energy and
One Earth dated May 15, 2007 (the “Terms Sheet”), a copy of which is attached hereto, Farmers
Energy agrees to purchase a minimum of 7,011 Units for a minimum purchase price of $35,055,000 and
a maximum of 12,491 Units for a maximum purchase amount of $62,455,000, with the actual number of
Units to be purchased by Farmers Energy being dependent upon the number and amount of rescissions
resulting from the rescission offer being undertaken by One Earth and the total number of new
investors accepted by One Earth pursuant to the post-effective amendment and rescission documents
filed with the SEC and the relevant state securities regulators as of the date hereof. The Units
for which Farmers Energy is subscribing hereunder will be purchased pursuant to One Earth’s
federally registered offering on Form SB-2 originally filed with the Securities and Exchange
Commission on July 12, 2006 (as amended, the “Registered Offering”), and not pursuant to the
private placement described in the Terms Sheet. After Farmers Energy’s purchase of the Units
subscribed for hereunder Farmers Energy will own, on a fully diluted basis, not less than a
majority of the issued and outstanding units of One Earth.

B. PURCHASE PRICE. The per unit purchase price for the Units shall be $5,000 per Unit.

C. CONDITIONS TO SUBSCRIPTION. Farmers Energy’s obligation to pay the purchase price for the Units
is subject to the following conditions:

1.   One Earth and Farmers Energy hereby acknowledge and agree that the following conditions have
been satisfied as of the date hereof:

	 	a.	 	One Earth has amended its Amended And Restated Operating Agreement, as required
under the Terms Sheet.
	 
	 	b.	 	Farmers Energy has obtained the approval of the Board of Directors of REX
Stores Corporation for the consummation of the transactions contemplated hereby.
	 
	 	c.	 	One Earth has obtained and provided evidence to Farmers Energy of the approval
by One Earth’s Board of Directors to consummate the transactions contemplated hereby,
together with the unanimous approval and the written affirmation of the current Class A
Members to the consummation of such transactions and their agreement to take all
reasonable actions to support the furtherance of such transactions.

 

			
	1	 	The actual number of Units to be
purchased by Farmers Energy is dependent upon the number and amount of
rescissions resulting from the rescission offer being undertaken by One Earth
and the total number of new investors accepted by One Earth pursuant to the
post-effective amendment and rescission documents filed with the SEC and the
relevant state securities regulators as of the date hereof.

 

 

	 	d.	 	One Earth has entered into a binding EPC contract with Fagen, Inc for the
construction of One Earth’s proposed ethanol facility in Gibson City, Illinois (the
“Facility”) with a construction commencement date no later than October 19, 2007.
	 
	 	e.	 	One Earth has provided Farmers Energy with the names and addresses of the
current subscribers in One Earth and evidence of the funds currently held in escrow
which were submitted by the current subscribers with their subscription agreements.
	 
	 	f.	 	One Earth has delivered to Farmers Energy a written re-affirmation from Fagen,
Inc. and the current Class A Members which states that Fagen, Inc. and the current
Class A Members, respectively, will not accept the rescission offer described herein
and in the Terms Sheet and otherwise supports the actions set forth in the Terms Sheet.

	 	2.	 	One Earth and Farmers Energy hereby acknowledge and agree that the following conditions
shall be satisfied prior to October 19, 2007 (unless extended by Farmers Energy in its sole
discretion).

	 	a.	 	One Earth will provide all documents and other information which Farmers Energy
may reasonably request in connection with the transactions contemplated hereby,
including all documents and information relating to the purchase of real property upon
which the Facility will be constructed.
	 
	 	b.	 	Upon One Earth’s receipt of the full subscription amount from Farmers Energy,
One Earth will terminate its Registered Offering.
	 
	 	c.	 	One Earth shall have entered into a committed credit facility for a
construction/permanent loan with a commercial bank or other lender of recognized
standing pursuant to which such lender(s) has/have made a binding commitment, subject
only to customary and reasonable conditions for disbursement, to provide
construction/permanent debt financing in an amount which, along with the net proceeds
from the sale of Units in accordance with the Registered Offering, and Farmers Energy’s
secured debt financing, will be sufficient to complete construction of the Facility, as
well as to provide necessary working capital.
	 
	 	d.	 	One Earth shall have obtained all necessary air permits to construct and
operate the Facility (other than any operating permits that are required to be
obtained after completion of construction, which shall be obtained when appropriate).
	 
	 	e.	 	After Farmers Energy’s purchase of the Units subscribed for hereunder Farmers
Energy will own, on a fully diluted basis, not less than a majority of the issued and
outstanding units of One Earth.
	 
	 	f.	 	Farmers Energy’s approval in its sole discretion of: (i) the Post-Effective
Amendment to be filed by One Earth with the Securities and Exchange Commission (the
“SEC”) and various states securities regulators in accordance with the Terms Sheet;
and (ii) all letters and documents related to the accompanying rescission offer.
	 
	 	g.	 	The SEC having approved the Post-Effective Amendment in a manner by which the
transactions described herein may proceed on the basis described herein.
	 
	 	h.	 	During the period beginning on the date hereof and ending on the closing date
for the purchase of the Units described in Paragraph A, no event or set of facts or
circumstances has arisen which has resulted in, or with the passage of time could
result in, in the reasonable opinion of Farmers Energy, a Material Adverse Effect. For
purposes of this Agreement, “Material Adverse Effect” shall mean any effects,
individually or in the aggregate, that would be materially adverse to the Company’s
financial condition, assets, liabilities, business, property or prospects in an amount
of $250,000 or more.

D. REPRESENTATIONS AND WARRANTIES. By signing below Farmers Energy represents and warrants to One
Earth that it:

 

 

	 	1.	 	has received a copy of One Earth’s registration statement on Form SB-2,
originally filed with the SEC on July 12, 2006 and all exhibits and amendments thereto;
	 
	 	2.	 	has been informed that the Units are offered and sold in reliance upon: (i) a
federal securities registration; (ii) Illinois, Indiana, Iowa, Missouri and Wisconsin
(and, potentially, various other states) securities registrations; and (iii) exemptions
from securities registrations in Minnesota and various other states.
	 
	 	3.	 	understands that the Units subscribed for pursuant to this Subscription
Agreement can only be sold to a person meeting requirements of suitability;
	 
	 	4.	 	has been informed that the Units subscribed for pursuant to this Subscription
Agreement have not been registered under the securities laws of any state other than
the States of Illinois, Indiana, Iowa, Missouri and Wisconsin (and, potentially,
various other states), and that One Earth is relying in part upon the representations
of the undersigned Subscriber contained herein;
	 
	 	5.	 	intends to acquire the Units for its own account without a view to public
distribution or resale and that 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 or entity;
	 
	 	6.	 	understands that: (i) there is no present market for One Earth’s Units; (ii)
the Units will not trade on an exchange or automatic quotation system; (iii) no such
market is expected to develop in the future; and (iv) there are significant
restrictions on the transferability of the Units;
	 
	 	7.	 	has been encouraged to rely upon the advice of its legal counsel and
accountants or other financial advisers with respect to the tax and other
considerations relating to the purchase of Units;
	 
	 	8.	 	has received a copy of One Earth’s Second Amended And Restated Operating
Agreement, dated June 5, 2007, has signed a counterpart Member Signature Page thereto
in the form of EXHIBIT “A” attached hereto and understands that Farmers Energy and the
Units are bound by the provisions of the Second Amended And Restated Operating
Agreement, including, among others, provisions restricting the transfer of Units;
	 
	 	9.	 	understands that the Units are subject to substantial restrictions on transfer
under federal and state laws in addition to the restrictions contained in One Earth’s
Second Amended And Restated Operating Agreement, and agrees that if the Units or any
part thereof are sold or distributed in the future, Farmers Energy shall sell or
distribute them only in strict accordance with 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 as well as the publicly traded
partnership rules;
	 
	 	10.	 	understands that One Earth will place a restrictive legend on any certificate
representing Units, containing substantially the following language as the same may be
amended by One Earth’s Directors in their sole discretion:

THE TRANSFERABILITY OF THE MEMBERSHIP UNITS REPRESENTED BY THIS
CERTIFICATE IS RESTRICTED. SUCH UNITS MAY NOT BE SOLD, ASSIGNED,
OR TRANSFERRED, AND NO ASSIGNEE, VENDEE, TRANSFEREE OR ENDORSEE
THEREOF WILL 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, APPLICABLE FEDERAL AND STATE LAW AND THE
TERMS AND CONDITIONS SET FORTH IN THE OPERATING AGREEMENT OF THE
COMPANY, AS AMENDED FROM TIME TO TIME.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD,
OFFERED FOR SALE OR TRANSFERRED IN THE ABSENCE

 

 

OF AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, AND UNDER APPLICABLE STATE SECURITIES LAWS, OR AN OPINION
OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH TRANSACTION IS
EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, AND UNDER APPLICABLE STATE SECURITIES LAWS.

	 	11.	 	understands that, to enforce the above legend, One Earth may place a stop
transfer order with its registrar and stock transfer agent (if any) covering all
certificates representing Units;
	 
	 	12.	 	has sufficient knowledge and experience in business and financial matters so as
to be able to evaluate the merits and risks of an investment in the Units;
	 
	 	13.	 	believes that the investment in Units is suitable for the Subscriber and that
it can bear the economic risk of the purchase of Units, including the total loss of its
investment;
	 
	 	14.	 	may not transfer or assign this Subscription Agreement, or any interest herein;
	 
	 	15.	 	is not subject to back up withholding, either because Farmers Energy has not
been notified by the Internal Revenue Service (“IRS”) that he/she/it is subject to
backup withholding as a result of a failure to report all interest or dividends, or
because the IRS has notified Farmers Energy that it is no longer subject to backup
withholding;
	 
	 	16.	 	understands that execution of the Promissory Note and Security Agreement on
page 6 of this Subscription Agreement will allow One Earth and its successors and
assigns to pursue Farmers Energy for payment of the amount due thereon by any legal
means, including, but not limited to, acquisition of a judgment against Farmers Energy
in the event that Farmers Energy defaults on that Promissory Note and Security
Agreement; and
	 
	 	17.	 	acknowledges that One Earth may retain possession of certificates representing
Farmers Energy’s Units to perfect its security interest in those Units.

E. INCORPORATION OF THE DEFINITIVE DOCUMENTS AND THE TERMS SHEET; CONTROLLING PROVISION. The
parties hereby agree that the terms of the “Definitive Documents” executed pursuant to the Terms
Sheet are incorporated herein by reference. The parties further agree that the terms of the Terms
Sheet are incorporated herein by reference, subject to the following:

1. The terms of the Terms Sheet are hereby amended to be binding obligations of the parties.

2. The parties hereby waive the timing requirements set forth in Sections 6 and 10 of the
Terms Sheet, and in lieu thereof, agree to use commercially reasonable efforts to complete
and consummate the transactions described herein and in the Terms Sheet as soon as
reasonably practicable.

In the event there is a conflict between the terms of this Subscription Agreement and the terms of
the Terms Sheet, this Subscription Agreement shall control. In the event there is a conflict
between the terms of this Subscription Agreement or the Terms Sheet and the terms of any of the
Definitive Documents executed pursuant to the Terms Sheet, the Definitive Documents shall control.

F. PROSPECTIVE TERMINATION OF LETTER AGREEMENT AND REGISTRATION AGREEMENT. The parties hereby
agree that, upon receipt by One Earth of the total purchase price due from Farmers Energy for the
Units to be purchased hereunder, the Letter Agreement and that certain Registration Agreement dated
July 11, 2006 shall be terminated and shall no longer be of any force or effect.

G. REX GUARANTY. Rex Stores Corporation is hereby executing and delivering to One Earth together
with this Subscription Agreement a Guaranty in the form of EXHIBIT “B” attached hereto.

H. EXECUTION; ACCEPTANCE AND ISSUANCE OF UNITS. One Earth is executing this Subscription Agreement
immediately below for the purpose of confirming the parties’ contractual obligations hereunder. One

 

 

Earth shall be bound to accept Farmers Energy’s subscription and issue Farmers Energy such Units
only upon One Earth’s receipt of the full purchase price and Farmers Energy’s satisfaction of its
obligations hereunder and under the Definitive Documents. By signing this Agreement, the
undersigned officer of One Earth acknowledges that the Board of Directors of One Earth has approved
the consummation of the transactions contemplated by this Agreement.

	 	 	 	 	 	 	 	 	 	 	 
	FARMERS ENERGY ONE EARTH, LLC	 	 	 	ONE EARTH ENERGY, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	Its:

	 	 

	 	 
	 	Its:
	 	 

	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 

ACCEPTANCE OF SUBSCRIPTION BY ONE EARTH ENERGY, LLC:

One Earth Energy, LLC hereby accepts the subscription for the above Units.

Dated
this           
          day of  
            
           
            
    , 200        
            
..

	 	 	 	 	 
	ONE EARTH ENERGY, LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Its:

	 	 

	 	 
	 

	 	 

	 	 

 

 

PROMISSORY NOTE AND SECURITY AGREEMENT

Date of Subscription Agreement:                                         , 2007.

$5,000.00 per Unit

Minimum Investment of 7,011 Units for a minimum purchase price of $35,055,000 and up to a

maximum of 12,491 Units for a maximum purchase amount of $62,455,000.

	 	 	 
	12,491
 

	 	Maximum Number of Units subscribed 
	 
	 	 
	$62,455,000
 

	 	Maximum Total Purchase Price 
	 
	 	 
	$0
 

	 	Less Initial Payment 
	 
	 	 
	$62,455,000
 

	 	Maximum Principal Balance 

UPON THE TERMS AND SUBJECT TO THE CONDITIONS SET FORTH IN THE ATTACHED SUBSCRIPTION AGREEMENT, FOR
VALUE RECEIVED, the undersigned hereby promises to pay to the order of One Earth Energy, LLC, an
Illinois limited liability company (“One Earth”), at its principal office located at 1306 West
8th Street, Gibson City, IL 60936, or at such other place as required by One Earth, up
to the Maximum Principal Balance set forth above in one lump sum to be paid without interest within
30 days following the call of the One Earth Energy Board of Directors, as described in the attached
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 One Earth.

The undersigned agrees to pay to One Earth 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 Illinois.

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

Dated                     , 2007

	 	 	 	 	 
	FARMERS ENERGY ONE EARTH, LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Its:

	 	 

	 	 
	 

	 	 

	 	 

 

 

EXHIBIT “A”

MEMBER SIGNATURE PAGE

ADDENDUM TO THE SECOND AMENDED AND RESTATED

OPERATING AGREEMENT

OF ONE EARTH ENERGY, LLC

          The undersigned does hereby warrant, represent, covenant and agree that: (i) the undersigned,
as a condition to becoming a Member in One Earth Energy, LLC, has received a copy of the Operating
Agreement dated June 5, 2007, and, if applicable, all amendments and modifications thereto; (ii)
the undersigned shall be subject to and comply with all terms and conditions of such Operating
Agreement in all respects, as if the undersigned had executed said Operating Agreement on the
original date thereof; and (iii) the undersigned is and shall be bound by all of the provisions of
said Operating Agreement from and after the date of execution of this Addendum.

	 	 	 	 	 	 	 
	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 to and Accepted on Behalf of the

Company and its Members:
	 
	 	 	 	 
	ONE EARTH ENERGY, LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Its:
	 	 	 	 
	 

	 	 

	 	 

 

 

EXHIBIT “B”

[Attach Guaranty of Rex Stores Corporation]

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