Document:

exv10w5

 

Exhibit 10.5

AMENDMENT NUMBER ONE

To

LETTER OF INTENT (“LOI”)

DATED APRIL 19, 2005

by and between

FAGEN, INC. (“FAGEN”)

and

E ENERGY ADAMS, LLC (“OWNER”)

This Amendment Number One is entered into this 12th day of July, 2005, by and between
Fagen, Inc., a Minnesota Corporation (“Fagen”) and E Energy Adams, LLC, a Nebraska Limited
Liability Company (“Owner”).

Anything to the contrary contained in the LOI between the parties hereto, and in consideration of
the mutual promises, covenants, and conditions contained in the LOI and contained herein, and for
other good valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto covenant and agree that the terms and conditions of this Amendment Number One
shall prevail.

The parties hereto agree as follows:

	 	1.	 	The first paragraph of the LOI is amended and replaced as follows:
	 
	 	 	 	Owner is an entity organized to facilitate the development and building of a
locally-owned 50 MGY gas-fired fuel ethanol plant with dry fractionation in Adams,
Nebraska (the “Facility” or “Project”);
	 
	 	2.	 	Section 3 of the LOI is amended and replaced as follows:
	 
	 	 	 	Fagen agrees to Design-Build the Facility, utilizing ICM, Inc. technology in the plant
process, for a lump sum price of $76,619,000.00. This lump sum price shall remain firm
by Fagen to Owner until December 31, 2005, and may be subject to revision and/or
escalation by Fagen after such date.

The other provisions of the LOI shall remain unchanged and in full force and effect.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment Number One on the date set
forth above.

	 	 	 
	FAGEN, INC.

	 	E ENERGY ADAMS, LLC (Owner)
	 
	 	 
	By /s/ Ron Fagen

	 	By /s/ Jack L. Alderman
	 
	 	 
	Title CEO & President

	 	Title Presidentexv10w6

 

Exhibit 10.6

ASSIGNMENT OF OPTION AGREEMENT

     THIS AGREEMENT is made and entered into on this 19th day of July, 2005, by and
between Gage County Economic Development, Inc., a Nebraska corporation (hereinafter referred to as
“Assignor”), and E Energy Adams, LLC, a Nebraska limited liability company (hereinafter referred to
as “Assignee”).

     FOR VALUE RECEIVED, Assignor hereby sells, assigns, transfers and conveys to Assignee all of
Assignor’s right, title and interest in and to one certain option agreement (“Option Agreement”),
wherein Assignor is named as optionee and Robert L. and Peggy S. Snyder are named as optionors of
the following described real property, to wit:

East Half of the Northwest Quarter of the Northeast Quarter (E 1/2 NW 1/4 NE 1/4 );
Southwest Quarter of the Northeast Quarter (SW 1/4 NE 1/4 ); Northwest Quarter of the
Southeast Quarter (NW 1/4 SE 1/4 ); Northeast Quarter of the Southwest Quarter (NE 1/4 SW
1/4); and the Southeast Quarter of the Northwest Quarter (SE 1/4 NW 1/4), all in Section
Seventeen (S17), Township Six North (T6N), Range Eight East (R8E) of the
6th P.M., Gage County, Nebraska, except the railroad right-of-way of
record,

Consisting of 172.42 acres, more of less (herein “Premises”); and

A certain Easement of Record executed by M. James Platt, Trustee and individually,
and Bernice R. Platt, Trustee and individually, and Abbie Wood, Trustee and
individually, on or about the 1st day of November, 1995, and filed for
record in Book 78, Page 769, in the Register of Deeds’ Office, Gage County, Nebraska
on the 16th day of January, 1996 wherein a perpetual easement was granted
over the East Twenty feet (20’) of the Southwest Quarter (SW 1/4) of the Southeast
Quarter (SE 1/4) of Section Seventeen (S17), Township Six North (T6N), Range Eight
East (R8E) of the 6th P.M., Gage County, Nebraska, for use as a driveway
for ingress and egress in and to the Premises.

     This assignment is made subject to all of the terms and conditions of said Option Agreement
and pursuant to the express consent of the optionors as evidenced hereafter. By its signature
hereon, Assignee agrees to fulfill all of the terms and conditions of said Option Agreement.

     This Assignment, together with all of the terms, agreements, covenants and warranties
contained herein, shall inure to and become binding upon the successors and assigns of the parties
hereto.

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

 

 

	 	 	 	 	 
	 	ASSIGNOR:

Gage County Economic Development, Inc.

 	 
	 	By:  	/s/ Paul D. Garrett
 	 
	 	 	 	 
	 	Its:  	 	 
	 

Subscribed and sworn to before me this 19th day of July, 2005.

	 	 	 	 	 	 	 
	[

	Marlene Vetrovsky
	]
	 	/s/ Marlene Vetrovsky
	

	 	 	 	 
	[ [seal]

	My Commission Expires
	]

	 	Notary Public in and for the State of Nebraska
	[	April 28, 2009	]
	 	
	 	 

	 	 	 	 	 
	 	ASSIGNEE:

E Energy Adams, LLC

 	 
	 	By:  	/s/ Jack Alderman
 	 
	 	 	Jack Alderman, President 	 
	 	 	 	 
	 

Subscribed and sworn to before me this 21st day of July ,2005.

	 	 	 	 	 	 	 
	[

	General Notary – State of Nebraska
	]
	 	/s/ Karl W. Gramann
	

	 	 	 	 
	[ [seal]

	Karl W. Gramann
	]
	 	Notary Public in and for the State of Nebraska
	[

	My Comm. Exp. May 17, 2007
	]	 	 

CONSENT TO ASSIGNMENT

     COMES NOW Robert L. Snyder and in accordance with his signature hereafter, hereby consents to
the above assignment of Option Agreement dated 7-21, 2005.

     Dated
this 21st day of July, 2005.

	 	 	 	 	 
	 	 	 
	 	 /s/ Robert L. Snyder	 
	 	Robert L. Snyder 	 
	 	 	 
	 

Subscribed and sworn to before me this 21st day of July, 2005.

2

 

	 	 	 	 	 	 	 
	[

	General Notary – State of Nebraska
	]
	 	/s/ Donna M. Dorn
	

	 	 	 	 
	[ [seal]

	Donna M. Dorn
	]
	 	Notary Public in and for the State of Nebraska
	[

	My Comm. Exp. July 21, 2009
	]	 	 

CONSENT TO ASSIGNMENT

     COMES NOW Peggy S. Snyder and in accordance with her signature hereafter, hereby consents to
the above assignment of Option Agreement dated 7-21, 2005.

     Dated this 21st day of July, 2005.

	 	 	 	 	 
	 	 	 
	 	      /s/ Peggy S. Snyder
 	 
	 	Peggy S. Snyder 	 
	 

Subscribed and sworn to before me this 21st day of July, 2005.

	 	 	 	 	 	 	 
	[

	General Notary – State of Nebraska
	]
	 	/s/ Donna M. Dorn
	

	 	 	 	 
	[ [seal]

	Donna M. Dorn
	]
	 	Notary Public in and for the State of Nebraska
	[

	My Comm. Exp. July 21, 2009
	]	 	 

3exv10w7

 

Exhibit 10.7

OPTION AGREEMENT

This Option Agreement is made and entered into on this 29th day of July 2005, by and
between “Jean G. TenHulzen Revocable Trust” (the “Seller”), and E Energy Adams a Nebraska Limited
Liability Company (the “Buyer”). For valuable consideration received, the receipt and sufficiency
of which is hereby acknowledged, the Seller grants to the Buyer an option to purchase under the
following terms and conditions.

SECTION ONE

GRANT OF OPTION

A. In consideration of the mutual promises of the parties, the Seller does hereby give and grant to
the Buyer the exclusive and irrevocable right, privilege and option to purchase, under the
conditions hereinafter provided, all of the Seller’s right title and interest in the real property
which is located in Gage County, State of Nebraska, and more particularly described as follows:

A strip of Land 200 Ft wide running the full length of the railroad line on those lands belonging
to Jean G. TenHulzen Revocable Trust in Sections 17 and 20 of Township 6 North, Range 8 East of the
6th P.M. Gage County Nebraska. Said strip to be along the south west side of the BNSF
railroad running adjacent and parallel to it. Parcel estimated to be approximately 15 acres.
Exact legal description and acreage to be determined by a licensed Surveyor.

(the “Property”)

B. The nonrefundable Option Deposit of $1,000.00 to be paid by the Buyer to the Seller pursuant to
this Agreement shall be applied towards the Purchase Price of the Property. The Seller fully
agrees and acknowledges that the consideration given by the Buyer constitutes legal, adequate, and
valuable consideration for the purposes of this Agreement.

C. The purchase price for the Property shall be the sum of $5,000.00 per acre (the “Purchase
Price”)

D. The “Effective Date” shall be the date that the last of the parties hereto signs and
acknowledges this Option Agreement.

SECTION TWO

OPTIONS TERMS

A. The Seller, in consideration for the payment of the nonrefundable Option Deposit and other
consideration, does hereby give to the Buyer the exclusive right and option to purchase the
Property described above (the “Option”).

 

 

B. The nonrefundable Option Deposit shall be paid by the Buyer to the Seller within five (5)
business days after all parties have executed this Option Agreement.

C. The Buyer shall have the right to exercise this Option during a period of time beginning at
12:00 o’clock noon on the Effective Date and lasting until 12:00 o’clock noon on the same day and
calendar month and two full years after the Effective Date (the “Ending Date”). The Buyer shall
exercise this option by giving written notice by certified or registered mail to the Seller at the
address indicated above, by hand delivering written notice to the Seller, or by providing other
written notice (with the Seller giving the Buyer a written receipt indicating the time and date of
receipt). The date that the Seller receives this notice shall be known as the “Date of
Commencement.”

D. It is understood and agreed that time is of essence of this agreement with regard to the closing
of this transaction after the option is exercised by the Buyer. If the Buyer does not exercise
this Option by the ending date as specified above, then the right and option set forth herein shall
immediately terminate.

SECTION THREE

PROMISES OF PARTIES FOLLOWING EXERCISE OF OPTION

Subject to the Buyer exercising this Option, the Seller and the Buyer agree that the Seller shall
sell and the Buyer shall buy the Property upon the following terms and conditions:

A. Representations and Warranties

     To induce the Buyer to enter to enter into this Agreement, the Seller makes the following
representation, warranties, and covenants:

          1. Seller has good and marketable fee simple title to the Property, free and clear of all
liens, property taxes, encumbrances, and restrictions, except for those restrictions appearing of
record, taxes for the year of closing, encumbrances that will be cleared prior to closing, and
encumbrances that will be cleared at closing out of the Seller’s proceeds from the Purchase Price.

          2. There are no condemnations or similar proceedings affecting any part of the Property and
no such proceeding shall be pending on the Closing Date. To the best of the Seller’s knowledge, no
such condemnations or other proceeds are threatened or planned.

          3. To the best of the Seller’s knowledge, there are no toxic wastes on, in or around the
Property and the Property has not been used to manufacture, store, or dispose of environmentally
hazardous materials.

          4. There are no leases, service contracts or agreements relating to the operation,
maintenance, or security of the property under which the Seller is Bound and which will survive the
closing, except the existing lease to Gary Kroese currently in effect for the crop year 2005.

 

 

          5. All encroachments, reservations, limitations, road right of ways, or servitudes affecting
the Property are disclosed in the Public Records.

          6. The Seller is not subject to any commitment, obligation, or agreement, including, but not
limited to, any right of first refusal or option to purchase, granted to a third party, which would
or could prevent the Seller from completing the sale of the Property as contemplated by this
Agreement.

          7. Seller shall be in sole and exclusive possession of the Property and will deliver
possession of the Property free of all leases (except the existing lease identified above) on the
Closing Date; provided, however, in the event that Buyer exercises this Option and the transaction
is closed during the calendar year, the total rent for such calendar year shall be prorated between
the parties.

          8. The Seller shall maintain the property in its present condition on the Effective Date
through the date of the Buyer’s exercise of its option and the closing of this transaction. Risk
of loss from fire or other casualty shall remain with the Seller until the property is conveyed to
the Buyer.

B. Conditions Precedent

     The obligations of the Buyer to close this transaction are subject to the Buyer having given
Notice of its exercise of this Option to Purchase and subject to the following:

          1. All representations and warranties of the Seller shall be true and correct as of the
Closing Date as if such representations and warranties were being made on such date.

          2. Seller shall have performed all covenants to e performed by the Seller as is herein
provided.

          3. The Seller shall grant full possession of the real estate to the Buyer at the time of
closing, subject only to the existing Lease to Gary Kroese for the calendar year 2005 and any
annual renewals of said Lease entered into between Seller and the Tenant prior t the time of
Buyers’ exercise of the option to purchase.

          4. If any of such conditions are not fulfilled on or as of the Closing Date, and
notwithstanding anything to the contrary in this Agreement, the Buyer shall have the right to
terminate this Agreement.

C. Marketable Title

          1. Seller shall convey a marketable title, subject only to liens, encumbrances, exceptions, or
qualifications set forth in this Agreement and those which shall be discharged by Seller at or
before closing. Marketable title shall be determined according to applicable title standards
adopted by authority of the Nebraska State Bar Association and in accordance the law.

 

 

          2. The Buyer shall secure and pay the cost of an owner’s title insurance policy through a
carrier of the Buyer’s choice.

          3. If the Buyer discovers that the title is defective, the Buyer shall notify the Seller in
writing specifying the defect(s). If the defect(s) render the title unmarketable or uninsurable
the Seller will have 30 days from the receipt of notice within which to remove the defect(s). All
expenses to clear title defects shall be paid by the Seller.

D. Closing

          1. This transaction shall be closed and the deed and other closing papers delivered on or
before the 30th day following the Date of Commencement of this Agreement (the “Closing
Date”) unless extended by other provisions of this Contract or by the mutual consent of both
parties. The closing shall be held in the county in which the Property is located, at the office
of the title insurance company providing the title insurance policy to the Buyer. It is our
understanding that Mrs. TenHulzen will sing in front of a notary at her place of residence.

          2. At closing the Buyer shall pay the cash portion of the Purchase Price by bank cashier’s
check or certified check either of which shall be issued by and drawn on a local institution and
the Seller shall furnish the deed, an absence of lien affidavit, non-foreign status affidavit, and
any corrective instruments that may be required in connection with perfecting the title.

          3. Except as otherwise specifically provided herein, the Buyer shall pay all of the costs of
the closing of this transaction, including Seller’s Attorney fee.

E. Conveyance

     The Seller shall convey marketable title in the property to the Buyer by Warranty Deed,
subject only to easements and restrictions of record.

F. Survey

     The Buyer, at the Buyer’s expense, at anytime within the Option period, may have the property
surveyed.

G. Ingress and Egress

     The Seller warrants that there is ingress and egress to the Property from the public road or
highway adjacent to the property.

H. Liens

     The Seller shall furnish to the Buyer at time of closing an affidavit attesting to the
absence, unless otherwise provided for herein, of any financing statements, claims of lien or
potential lienors known to the Seller and further attesting that there have been on improvements or
repairs

 

 

to the Property for 120 days immediately preceding the date of closing in a form
satisfactory to the Buyer. If the Property has been improved, or repaired within such time, the
Seller shall deliver releases or waivers of mechanic’s liens, executed by all general contractors,
subcontractors, suppliers, and materialmen, in addition to the Seller’s lien affidavit setting
forth the names of all such general contractors, subcontractors, suppliers, and materialmen and
further reciting that in fact all bills for work to the Property or personalty which could serve as
a basis for a mechanic’s lien or a claim for damages have been paid or will be paid at closing.

I. Prorations

     The Seller shall pay all real estate taxes and assessments (if any) levied and assessed for
all years prior to the date of closing. The real estate taxes for the year of closing shall be
prorated to the date of closing. In the event that the amount of the taxes for the year of closing
is not known at the time of closing, such real estate taxes shall be prorated on the basis of the
taxes levied and assessments for the prior calendar year. The Buyer shall assume and pay any and
all recapture of real estate taxes levied as a result of the property having greenbelt designation.

J. License to Enter

          1. The Seller grants to the Buyer and its employees, representatives, agents, contractors and
subcontractors, a license to enter upon the premises for the purposes of inspection, evaluation and
investigation of the physical characteristics and legal and regulatory status of the Property, as
well as any other physical inspections and other investigations of and concerning the Property as
Buyer, in its sole discretion, may deem appropriate, including but not limited to environmental
assessment, soil boring tests, surveys and appraisals to determine the feasibility of using the
property for the construction and operation of an ethanol plant.

          2. The Seller shall permit the Buyer and its representatives, agents, employees, lenders,
contractors, appraisers, architects and engineers, access to and entry on the Property, and the
Buyer’s consultants may examine, inspect, measure and test the Property for the purposes set forth
herein and for all other reasonable purposes, until this Option Agreement terminates.

          3. The Buyer shall notify the Seller’s existing Tenant in advance of its intention to enter
upon the premises for such purposes. The Buyer shall reimburse the Seller’s Existing Tenant for
any damages caused to such Tenant’s crops as a result of the Buyer’s entry upon, or inspection,
evaluation and investigation of the property.

K. Attorney’s Fees: Costs

     In connection with any litigation arising out of this Agreement, the prevailing party shall be
entitled to recover reasonable attorney’s fees and costs.

L. Persons Bound: Notice

     This Agreement shall bind and inure to the benefit of the parties hereto and their successors
and assigns. Whenever the context permits, singular shall include plural and one gender shall
include

 

 

all. Notice given by or to the attorney for any party shall be as effective as if given by
or to the party.

M. Possession

     Except as expressly noted herein, Seller represents that there are no parties in possession
other than the Seller. Seller agrees to deliver full possession of the property at the time of
closing except as specifically provided herein.

N. Other Agreements

     No prior or present agreements or representations shall be binding upon Buyer or Seller unless
included in this Agreement. No modifications or changes in this Agreement shall be valid or
binding upon the parties unless in writing and executed by the party or parties to be bound
thereby.

O. Notice to Parties

     Notices shall be effective for all purposes pursuant to the Agreement if sent by First Class
United States Mail with postage prepaid to the parties at the following addresses:

1. To the Seller. Notice shall be mailed to the Seller at the following address:

Gaylen TenHulzen

4425 Greyhawk Ridge Drive

Sioux City, Iowa 51106

2. To the Buyer. Notice shall be mailed to the Buyer at the following address:

E Energy Adams, LLC

105 East Veterans Street

Tomah, WI 54660

P. Default: Remedies

     In the event that either party defaults in the performance of its obligations under this
Agreement, the other party shall be entitled to pursue any and all legal and equitable remedies
available under Nebraska Law, including but not limited to specific performance of this Option
Agreement.

 

 

IN WITNESS WHEREOF, the parties have executed this Option Agreement as of the day and year first
above written.

	 	 	 	 
	By:

	 	/s/ Jean G. TenHulzen	 
	

	 	 	 
	 
	 	 	 
	Title:
	 	 	 
	

	 	 	 
	 
	 	 	 
	Social Security #

	 	XXX-XX-XXXX	 
	

	 	 	 

E ENERGY ADAMS, LLC

By: /s/ Jack L. Alderman

Title: President

	 	 	 	 	 	 	 	 	 	 	 
	STATE OF NEBRASKA               

	 	 	)	 	 	 	 	[ General Notary – St. of Nebraska
	 	]
	

	 	 	)	 	 	ss.
	 	[ [seal]
        Diane K. Nieveen
	 	]
	COUNTY OF GAGE                       

	 	 	)	 	 	 	 	[ My Comm. Exp. March 31, 2006
	 	]

     The foregoing instrument was acknowledged before me  on July 29
2005, by /s/ Diane K. Nieveen

	 	 	 	 	 
	 	 	 
	 	  	  /s/ Diane K. Nieveen
 	 
	 	 	Notary Public 	 
	 	 	 	 
	 

My Commission Expires: March 31, 2006

	 	 	 	 	 	 	 
	STATE OF WISCONSIN

	 	 	)	 	 	 
	

	 	 	)	 	 	ss.
	COUNTY OF MONROE

	 	 	)	 	 	 

The foregoing instrument was acknowledged before me on Aug 1st, 2005

By Jack L. Alderman, President of E Energy Adams, LLC, a Nebraska LLC, on behalf of the Corporation

	 	 	 	 	 
	

	 	/s/ Diane M. Batten	 	 
	

	 	 	 	 
	My Commission Expires: 5/3/09

	 	Notary Public	 	 
	

	 	[ Diane M. Batten
	 	]
	

	 	[ [seal] Notary Public
	 	]
	

	 	[ State of Wisconsin
	 	]

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