Document:

Exhibit 10.18

 

[YORK COUNTY TITLE CO.]

 

	
  402-362-4405

  	
   

  	
  Title Insurance

  	
  –

  	
  Abstracts of Title

  	
   

  	
  608 N. Grant Avenue

  
	
  402-362-4421

  	
   

  	
  Real Estate Closings

  	
  –

  	
  Escrow Services

  	
   

  	
  P.O. Box 572

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  York, NE 68467

  

 

	
  Date – 

  	
  January 10, 2006

  
	
   

  	
   

  	
   

  
	
  Buyer – 

  	
  Advanced BioEnergy, LLC

  	
   

  
	
   

  	
  137 N. 8th St., P.O. Box 424

  	
   

  
	
   

  	
  Geneva, NE 68361

  	
   

  
	
   

  	
   

  	
   

  
	
  Seller – 

  	
  (A)

  	
   Doris Gwen Ogden

  	
   

  
	
   

  	
   

  	
  c/o Thomas P. Boyer

  	
   

  
	
   

  	
   

  	
  P.O. Box 488, Fairmont, NE 68354

  	
   

  
	
   

  	
   

  	
   

  
	
  Seller – 

  	
  (B) 

  	
  WBD, Inc.

  	
   

  
	
   

  	
   

  	
  816 N. Street

  	
   

  
	
   

  	
   

  	
  Geneva, NE 68361

  	
   

  
	
   

  	
   

  
	
  Description – 

  	
  (A) 

  	
  SE1/4 of Section 36, Township 8 North, Range 3 West of the 6th P.M.,
  in Fillmore County, Nebraska, except highway and Railroad r-o-w.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (B) 

  	
  W1/2 NE1/4 & NE1/4 of Section 36, Township 8 North,
  Range 3 West of 6th P.M., in Fillmore County, Nebraska, except
  highway.

  
						

 

Our
File No: 7672-CT2893

 

Funds
were disbursed as follows:

 

(A)                              Buyer, Advanced BioEnergy, LLC agreed to pay
to Seller, Doris Gwen Ogden the Purchase price of $740,000.00.  Seller paid Option Money of $10,000.00 and
Down Payment of $64,000.00 for a total of $74,000.00 directly to Seller, Doris
Gwen Ogden.  Balance of $666,000.00 +
interest to be paid at the end of contract on or before April 15, 2006.

 

Seller to pay 2005 real estate taxes on or before April 15,
2006, including the Documentary stamps in the amount of $1,665.00 will be paid
by Selelr by personal check payable to the Fillmore County Clerk, and their
portion of the title insurance in the amount of $790.70 by personal check
payable to York County Title Co.

 

(B)                                Buyer, Advanced BioEnergy, LLC agreed to pay
to Seller, WDB, Inc. the Purchase price of $672,000.00.  Seller paid Option Money of $10,000.00,
directly to Seller, WDB, Inc., and Down payment of $57,000.00 directly to

 

 

Exchanger, York County Title
Co., for the purpose of a 1031 exchange, for a total of $87,200.00.  Balance of $604,800.00 + interest to be paid
at the end of contract on or before April 15, 2006, to the Exchange, York
County Title Co.

 

Seller to pay 2005 real estate taxes on or before April 15,
2006, including the Documentary stamps in the amount of $1,512.00 will be paid
by Seller by personal check payable to the Fillmore County Clerk, and their
portion of the title insurance in the amount of $673.55 by personal check
payable to York County Title Co.

 

Total
amount of Title Insurance - $2,928.50 – 1⁄2 = $1,464.25 by buyer, and the other 1⁄2
by Sellers according to their percentages.

 

Title
Insurance of $1,464.25 (One-half), Escrow fee, fax and courier fees of $150.00,
and filing fees of $5.50 for Notice of Agreement, for a total of $1,619.75,
will be paid outside of closing by Buyer.

 

Filing
Fees for the deeds held in escrow will be paid by buyer upon completion of the
contract, including other fees, if any.

 

Deeds
held in escrow with York County Title Co. will be released upon evidence of
payment made to both Sellers.

 

	
  YORK COUNTY TITLE CO.

  
	
   

  
	
  /s/ Linda Duerksen

  	
   

  
	
  Linda Duerksen

  
	
  Escrow Agent

  

 

 

	
   

  	
  STATE OF NEBRASKA, County of Fillmore

  
	
   

  	
  Filed For Record on January 27 2006

  
	
   

  	
  At 10:25 O’Clock A M and Recorded In

  
	
  Cottonwood Title

  	
  Book 49 Of Misc On Page 95

  
	
  Geneva NE 68361

  	
  Amy Nelson County Clerk

  
	
  PD: $5.50

  	
  /s/ Illegible - Deputy

  	
   

  

 

NOTICE OF REAL ESTATE AGREEMENTS

 

Notice is hereby given that an Agreement for Sale
dated October 6, 2005 has been executed, wherein WDB, Inc., a
Nebraska Corporation, is the Seller, and Advanced BioEnergy, LLC, a Delaware
Limited Liability Company, is the Buyer. 
Said agreement covers real estate described as follows:

 

West Half of the Northwest Quarter (W1/2 NE1/4); and
the Northeast Quarter of the Northeast Quarter (NE1/4 NE1/4) of Section Thirty-six
(36), Township Eight (8) North, Range Three (3) West of the 6th P.M.,
IN Fillmore County, Nebraska, EXCEPT that part along the East side thereof,
conveyed to The State of Nebraska for highway purposes, by Warranty Deed filed September 24,
1998, recorded in Book 81 at page 331 of deed records.

 

AND
Notice is hereby given that an Agreement for Sale dated October 18, 2005,
has been executed, wherein Doris Gwen Ogden, Is the Seller, and Advanced BioEnergy,
LLC, a Delaware Limited Liability Company, Is the Buyer.  Said agreement covers real estate described
as follows:

 

Southeast Quarter (SE1/4) of Section Thirty-six
(36), Township Eight (8), North, Range Three (3) West of the 6th P.M.,
In Fillmore County, Nebraska, EXCEPT that part along the East side thereof
conveyed to the State of Nebraska for highway purposes and EXCEPT that part
along the West side thereof conveyed to the Nebraska and Colorado Railroad
Company for railroad purposes.

 

The
2006 and all subsequent real estate taxes statement should be sent to:

 

	
   

  	
   

  	
  Advanced BioEnergy, LLC

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  137 N. 8th
  Street, P.O. Box 424

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Geneva, NE 68361

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Dated this 20 day of
  January, 2006.

  	
   

  	
   

  	
   

  	
   

  
	
  [NOTARY SEAL – Illegible]

  	
  ]

  	
   

  	
  Advanced BioEnergy, LLC,
  Buyer

  	
   

  	
   

  
	
  [

  	
  Illegible – Minnesota

  	
  ]

  	
   

  	
   

  	
   

  	
   

  
	
  [

  	
  MY COMMISSION

  	
  ]

  	
   

  	
  /s/ Revis L. Stephenson, III

  	
   

  	
   

  	
   

  
	
  [

  	
  EXPIRES JAN. 31, 2007

  	
  ]

  	
   

  	
  By It’s Manager

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STATE OF MINNESOTA       

  	
   

  	
  )

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  )ss,

  	
   

  	
   

  	
   

  	
   

  
	
  County of Ramsey

  	
   

  	
  )

  	
   

  	
   

  	
   

  	
   

  
												

 

The foregoing instrument was acknowledged before me
on this 20 day of January, 2006, by Revis Stephenson, Manager of Advanced
BioEnergy, LLC.

 

	
   

  	
   

  	
   

  	
   

  	
  /s/ Illegible WhiteExhibit 10.19

 

	
  [OPPENHEIMER]

  	
  Oppenheimer & Co. Inc.

  
	
   

  	
  50 S. Sixth Street

  
	
   

  	
  Suite 1300

  
	
   

  	
  Minneapolis, MN 55402

  
	
   

  	
  612-337-2700

  
	
   

  	
   

  
	
   

  	
  Member of All Principal Exchanges

  

 

November 22, 2005

 

Mr. Revis
Stephenson, III Chairman,

Board
of Directors

Advanced
BioEnergy, LLC

137
N. 8th Street

Geneva,
NE 68361

 

RE: Advanced BioEnergy, LLC — Exempt Facility Revenue Bonds - Engagement
Letter

 

Dear
Mr. Stephenson and Members of the Board of Directors:

 

This
letter agreement confirms our understanding that Advanced BioEnergy, LLC, a
Delaware limited liability company (the “Borrower”) has engaged Oppenheimer &
Co. Inc., a New York Stock Exchange publicly traded company headquartered in
New York, New York (“Oppenheimer”) to act as investment
banker/placement agent on the aforeferenced project, and specifically, to act
as agent (“Placement Agent”) for the structuring and sale of the Exempt
Facility Revenue Bonds (the “Bonds”). Oppenheimer’s services will be on a best
efforts basis in connection with the sale of the Bonds, the proceeds of which
will provide a part of the required capital for the development and
construction of a new 100 MGY “Dry Mill” Ethanol Plant to be located in the
Village of Fairmont; Nebraska (the “Project”). The
financing anticipates the issuance of tax-exempt Exempt Facility Revenue Bonds
in an amount approximately equal to $5,000,000. The terms of the Bond issuance
will generally be consistent with the attached terms sheet (the “Terms Sheet”).
The Bonds will be issued simultaneous to the closing of a first secured Senior
Debt financing in an amount approximately equal to 574,000,000 (the “Loan”).
The Bonds will be sold to accredited investors as defined by and in accordance
with the Securities Act of 1933 as amended. The Bonds will be sold on a
negotiated sale basis in minimum denominations of 525,000.

 

Relative
to Oppenheimer’s role as placement Agent, this letter agreement
shall cover the structuring and
sale of the Bonds on the terms and conditions as set forth below:

 

(1)                                  Oppenheimer shall have the exclusive right
for 120 days from the date of execution of this letter agreement
(the “Exclusivity Period”) to act on a best efforts basis, as the placement
agent of not less than 100% of the principal amount of the Bonds when, and if,
issued_ Thereafter, Oppenheimer may continue on a non-exclusive basis.

 

(2)                                  Oppenheimer will (a) advise the Borrower
concerning the elements of the structure, terms and condition of the Bonds; (b) assist
the Borrower in the preparation of any credit enhancement presentations and Bond
offering materials; (c) facilitate
communication between the Borrower
and any potential Bond purchaser(s), including the planning, arranging and
conduct of presentations and due diligence; (d) receive and respond to inquiries from potential Bond
purchaser(s); (e) direct the

 

 

preparation
of any rating agency presentation which may be a part of the sale of the Bonds,
(f) advise the Borrower in
connection with the negotiations relating to the Bonds to be offered; and (f) take
such incidental or related actions on behalf of the Borrower as Oppenheimer may
deem appropriate or Borrower may reasonably request.

 

(3)                                  The Borrower shall make available to
Oppenheimer all financial or other information concerning the Borrower which
Oppenheimer reasonably requests as well as any other information relating to
the Project or the Borrower prepared by the Borrower or any of its advisors.
The Borrower will be responsible for all information concerning its operations
and financial condition which may be provided in the Bond offering materials.
The Borrower understands that Oppenheimer is not obligated to undertake any
independent verification of such information, and Oppenheimer assumes no
responsibility for the accuracy, fairness or completeness of such information.
Oppenheimer will maintain the confidentiality of non-public information
provided to it unless such information becomes publicly available through no breach by Oppenheimer (including
its affiliates, employees and agents) of its confidentiality obligations. The Borrower acknowledges that
Oppenheimer has and may continue to pursue business with other companies that operate a similar business to this
Project

 

(4)                                  At the time of and as evidence of Oppenheimer’s
successful sale of the Bonds, the Borrower and Oppenheimer shall have
negotiated and will execute a Bond Purchase Agreement (the “Agreement”)
appropriate for the circumstances
containing provisions for, among other things, indemnification, representations
and warranties, which are customary for similar agreements entered into by
investment banking firms of national reputation and issuers of securities in
similar transactions.

 

(5)                                  The fee to be paid to Oppenheimer for its services
hereunder will be contingent upon a successful
completion of the sale and closing of the Bonds and will be 3.0% multiplied by
the principal amount of the Bonds in the initial bond offering sold by Oppenheimer.

 

Third
party costs, which are normally incurred in arranging the sale and/or placement
of the Bonds, are to be borne by, and axe a direct responsibility of the
Borrower. All of these such costs and expenses shall be approved by and under
the control of, the Borrower prior to actual expenditure.

 

(6)                                  Oppenheimer acknowledges that Borrower has
paid Oppenheimer a non-refundable retainer of $10,000 as a result of a separate
letter agreement between Borrower and Oppenheimer for the placement of Tax
Increment Notes dated November 20,
2005. This aforeferenced deposit will cover Oppenheimer’s out-of-pocket and due
diligence expenses related to both the Bond and Tax Increment Note
transactions. This non-refundable retainer will be credited against the fee due
to Oppenheimer at the closing of this transaction.

 

(7)                                  Oppenheimer shall be responsible for all of
Oppenheimer’s out-of-pocket expenses related to this transaction, except that
the Borrower shall be directly responsible for the fees and expenses of Briggs &
Morgan, P.A., Oppenheimer’s counsel. Prior to the incurrence of any fees and
expenses of Oppenheimer’s counsel, Borrower shall have

 

2

 

approved
of a maximum limit of expense for Oppenheimer’s counsel which shall be the
subject of a separate engagement agreement between the Borrower and Briggs &
Morgan, P.A. Furthermore, the Borrower shall be directly responsible for, but
not limited to, the fees and
expenses of Bond Counsel and any special tax counsel which may be required in
order to successfully structure and sell the Bonds

 

(8)                                  Nothing contained herein shall be construed
as an offer by Oppenheimer or any of its affiliates to extend credit to the
Borrower or provide a guarantee of
the sale of the Bonds. Oppenheimer shall have no obligation to place or
purchase any securities of the Borrower, except to the extent that such
obligations arise out of the Agreement with respect to the placement of the
Bonds executed and delivered by Oppenheimer and the Borrower.

 

(9)                                  This letter agreement shall become effective
upon the Borrower’s acceptance of this letter
agreement. If at any time prior to December 31, 2006, this letter agreement is
terminated by the Borrower for reasons
other than for cause, or the Borrower or any of its affiliates consummates a
similar financing transaction to this type
of financing for this Project with
any other party, Oppenheimer will be entitled to payment of the compensation
described in paragraph (5).

 

(10)                            Oppenheimer will comply with all applicable federal and state
securities laws in its role as Placement Agent in connection with any
distribution of bonds issued and sold.
Nothing in the foregoing sentence shall be construed as an assumption by
Oppenheimer of any obligation of the Borrower or any of its directors,
officers, shareholders or employees to comply with federal or state securities
laws or any liability of the Borrower or
any of its directors, officers, shareholders or employees for violation
of federal or state securities laws arising from the Bonds other than liability
caused by Oppenheimer’s conduct.

 

(11)                            This letter agreement and the services
provided hereunder shall be governed and construed by the laws of the State of New York, without regard to any
principles of conflicts of law.

 

(12)                            This letter agreement may be executed in counterparts, each of which
when so executed and delivered shall be deemed an original, but all such
counterparts together shall constitute but one and the same agreement.

 

(13)                            This letter agreement constitutes the entire agreement of the parties
with respect to the subject matter herein. This letter agreement may not be
amended other than, by a writing signed by the parties hereto.  Please indicate the Borrower’s agreement with
the terms and conditions of this letter agreement by signing and returning to
Oppenheimer the enclosed copy of this letter agreement.

 

3

 

Please
indicate the Borrower’s agreement with the terms and conditions of this letter
agreement by signing and returning to Oppenheimer the enclosed copy of this
letter agreement.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  OPPENHEIMER &
  CO. INC.

  
	
   

  	
   

  
	
   

  	
  /s/
  Ralph L. McGinley

  	
   

  
	
   

  	
   

  
	
   

  	
  Ralph
  L. McGinley

  
	
   

  	
  Senior
  Vice President

  
	
   

  	
   

  
	
  RLM/rls

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted
  and Agreed to as of

  	
   

  
	
  This
  23 day of Nov., 2005:

  	
   

  
	
   

  	
   

  
	
  By:
  ADVANCED BIOENERGY, LLC/on behalf of the Board of Directors

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Robert Holmes

  	
   

  	
   

  
	
   

  	
  Mr. Robert
  Holmes

  	
   

  
	
   

  	
  Treasurer

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