Document:

Exhibit 10.4

 

[Kennedy and Coe, LLC Logo]

 

May 17, 2005

 

East Kansas Agri-Energy, LLC

Board of Directors

210 1⁄2 East 4th, P.O. Box 225

Garnett, Kansas 66032

 

We appreciate the opportunity to propose to be of service to East
Kansas Agri-Energy, LLC.  Below is our
understanding of the services we are proposing to provide.

 

Preparation of Federal and Kansas Income Tax Returns:

 

We will prepare the 2005 federal and Kansas partnership income tax
returns including schedules K-1 for each member, Kansas Franchise tax return
and the Kansas annual report.  It is our
understanding all adjustments will be made and the books closed prior to our
beginning the preparation of the tax returns; and we will provide all member
information in electronic format.  We
have an excel spreadsheet we will provide East Kansas Agri-Energy, LLC to
facilitate this process.

 

	
  Our fees for preparation of the federal and Kansas partnership
  returns

  	
  $

  	
  13,500

  	
   

  
	
  Preparation of federal and Kansas K-1’s if number of members exceeds
  650

  	
  $

  	
  20 per K-1

  	
   

  

 

ADDITIONAL SERVICE OFFERINGS

 

Kansas Income Tax Credits

 

We will prepare the Investment Credit Application, investment and
training credit calculations and preparation of schedules and attachments for
East Kansas Agri-Energy, LLC and each member. 
East Kansas Agri-Energy, LLC is required to file a schedule K-59
with the Kansas partnership tax return and to provide the information to each
member to allow them to complete a schedule K-59 to be filed with their
Kansas tax return.  Our experience has
been members have fewer problems completing their tax return if the partnership
provides them their schedule K-59.

 

The first year will require an application as well as the related
schedules for East Kansas Agri-Energy, LLC and all members.  Subsequent years 2 and 3, the related
schedules for EKAE and all members are required but an application should not
be required.

 

	
  Initial year, based on 650 members

  	
   

  	
  $

  	
  25,000

  	
   

  
	
  Year 2, based on 650 members

  	
   

  	
  $

  	
  15,000

  	
   

  
	
  Year 3, based on 650 members

  	
   

  	
  $

  	
  15,000

  	
   

  

 

We will prepare the Kansas Employment Credit Forms and schedules for
East Kansas Agri-Energy, LLC and each member.

 

 

	
  Initial and each subsequent year

  	
   

  	
  $

  	
  3,000

  	
   

  

 

The parties agree that if an unanticipated need arises (such as, but
not limited to, an audit by a taxing agency, or any other service not
anticipated in this agreement by the parties), Kennedy and Coe, LLC hereby
agrees to perform this additional work at a mutually agreed upon price before the service is provided.  This service will be billed separately, and will
be payable within 30 days of presentation.

 

If you agree that the above adequately sets forth your understanding of
our mutual responsibilities, please authorize this Agreement and return it to
our office.  A copy of provided for your
records.

 

We would like to take this opportunity to express our appreciation for
the opportunity to serve you.

 

	
  Very truly yours,

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ David H. Burger

  	
   

  	
   

  
	
   

  	
  David H. Burger, Member

  	
   

  
	
   

  	
  Kennedy and Coe, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ William R. Pracht

  	
   

  	
  Date:

  	
  6-13-05

  	
   

  
	
   

  	
  Board Member

  	
   

  
	
   

  	
  East Kansas Agri-Energy, LLCExhibit 10.5

 

[Kennedy and Coe, LLC Logo]

 

May 17, 2005

 

East Kansas Agri-Energy, LLC

Board of Directors

210 1⁄2 East 4th, P.O. Box 225

Garnett, Kansas 66032

 

We appreciate the opportunity to propose to be of service to East
Kansas Agri-Energy, LLC.  Below is our
understanding of the services we are proposing to provide.

 

Assist in Monthly and Quarterly Financial Reporting:

 

We will provide accounting assistance to East Kansas Agri-Energy, LLC
staff and management, our services will include:

 

•                  Assistance with
inventory valuation and costing

•                  Assistance with
Balance Sheet account reconciliations

•                  Assistance with
preparation of monthly financial statements

•                  Assist with
maintenance of fixed asset living and depreciation schedule

•                  Comparison and
analysis of actual results to budget

•                  Review loan
covenants compared to actual results

 

We do not anticipate our services including the following:

 

•                  Reconciliation
of bank accounts

•                  Maintenance of
the accounts receivable ledgers

•                  Maintenance of
the accounts payable ledgers

•                  Maintenance of
inventory transaction register

•                  Other items of a
similar nature

 

The items excluded above are those activities that must be accounted
for on a daily basis as required for cash management, grain procurement and
plant operating efficiency purposes.

 

Our fees will be based on our standard hourly rates which we estimate
to be $2,500 a month, plus out of pocket expenses.  It is reasonable to expect the fees to be
more the first couple of months due to plant start-up and several accounting
and costing measures that must be setup.

 

The parties agree that if an unanticipated need arises (such as, but
not limited to, an audit by a taxing agency, or any other service not
anticipated in this agreement by the parties), Kennedy and Coe, LLC hereby
agrees to perform this additional work at a mutually agreed upon price before the service is provided.  This service will be billed separately, and
will be payable within 30 days of presentation.

 

 

If you agree that the above adequately sets forth your understanding of
our mutual responsibilities please authorize this Agreement and return it to
our office.  A copy is provided for your
records.

 

We would like to take this opportunity to express our appreciation for
the opportunity to serve you.

 

	
  Very truly yours,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ David H. Burger

  	
   

  	
   

  
	
   

  	
  David H. Burger, Member

  	
   

  
	
   

  	
  Kennedy and Coe, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ William R. Pracht

  	
   

  	
  Date:

  	
  6-13-05

  	
   

  
	
   

  	
  Board Member

  	
   

  
	
   

  	
  East Kansas Agri-Energy, LLCExhibit
10.6

 

Diane Allen

East Kansas Agri-Energy, LLC

Garnett, Kansas 66032

 

Dear Diane,

 

It is with pleasure that I present this
correspondence to confirm the decision of William Pracht, The East Kansas the
Board of Directors President, and myself, the offer of employment as our
corporate Administrative, Accounting, and Office Manager. Your employment will
commence on May 01, 2005. You will be paid on a salary basis, on our
normal payroll intervals, at the annual rate of Forty-seven Thousand
Five-hundred Dollars ($47,500.00). During your initial year of employment, you
will be eligible for pay increases/increments based on formal individual
performance appraisals from William Pracht and myself, one (1) performance
every six (6) months of employment. You will also be eligible for payment
of an annual bonus based on performance overall financial performance of the
corporation based on budgeted guidelines. We look forward to your addition of
as a team member of the East Kansas Agri-Energy family. Please let me know if
you need any additional information from Bill Pracht or me.

 

 

	
  Sincerely,

  
	
   

  
	
  /s/ Michael D. Goblirsch

  	
   

  
	
  Michael D. Goblirsch

  
	
   

  
	
  General Manager – East
  Kansas Agri-Energy, LLC

  
	
   

  
	
  For The President of the
  Board of Directors – East Kansas Agri – Energy, LLC

  
	
   

  
	
  /s/ Diane Allen

  	
   

  
	
  Diane AllenExhibit
10.8

 

Mr. Thomas Leitnaker

 

Dear Tom,

 

It is with pleasure that I present this
correspondence to confirm the decision of William Pracht, The East Kansas the
Board of Directors President, and myself, the offer of employment as our
Facility Controller. Your employment will commence on June 29, 2005.
You will be paid on a salary basis, on our normal payroll intervals, at the
annual rate of Seventy-seven Thousand Five-Hundred Dollars ($77,500.00). During
your initial year of employment, you will be eligible for pay
increases/increments based on formal individual performance appraisals from
William Pracht and myself, one (1) performance every six (6) months
of employment. You will also be eligible for payment of an annual bonus based
on performance overall financial performance of the corporation based on
budgeted guidelines. We look forward to your addition of as a team member of
the East Kansas Agri-Energy family. The standard benefits package previously
described by Diane Allen, will be sent to your attention. We look forward to
you joining the East Kansas Agri-Energy team. Please let me know if you need
any additional information from Bill Pracht or me.

 

 

	
  Sincerely,

  
	
   

  
	
  /s/ Michael D. Goblirsch

  	
  6/23/2005

  	
   

  
	
  Michael D. Goblirsch

  
	
   

  
	
  General Manager – East Kansas
  Agri-Energy, LLC

  
	
   

  
	
  For The President of the
  Board of Directors — East Kansas Agri – Energy, LLC

  
	
   

  
	
  /s/ Thomas Leitnaker

  	
  6/21/05

  	
   

  
	
  Thomas LeitnakerExhibit 10.9

 

[East
Kansas Agri-Energy Logo]

 

May 5, 2005

 

Via
Fax # (520) 323-9177

Mr. Scott
Brittenham

Ethanol
Capital Management, LLC

Rockefeller
Center, 7th Floor

1230
Avenue of the Americas

New
York, New York 10020

 

Re:                               East Kansas Agri-Energy, LLC/Ethanol Capital Partners, L.P.

 

Dear
Mr. Brittenham:

 

Ethanol
Capital Partners, L.P. has subscribed for the purchase of 4,550 Membership
Units in East Kansas Agri-Energy, LLC (“EKAE”). 
Contingent upon fulfillment by Ethanol Capital Partners, L.P. of all outstanding
obligations owed under the subscription agreement and the promissory note, EKAE
will accept the subscription by Ethanol Capital Partners, L.P. for the purchase
of the 4,550 Membership Units in EKAE. 
Following final acceptance of such subscription, EKAE will accept the
appointment by Ethanol Capital Partners, L.P. of two directors to EKAE’s board
of directors.  Such directors will have
to stand for re-election under the terms of EKAE’s operating agreement.  We understand that Ethanol Capital Partners,
L.P. is making independent arrangements with certain EKAE members to provide
for the re-election of Ethanol Capital Partners, L.P.’s directors.  We cannot assure you of their re-election.

 

Please
let me know if you have any questions regarding the foregoing.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  /s/
  William R. Pracht

  	
   

  
	
   

  	
   

  
	
   

  	
  William
  R. Pracht

  

 

 

	
  P.O. Box
  225

  	
   

  	
  210
  1⁄2 E. 4th Ave.

  	
   

  	
  Garnett,
  KS 66032

  	
   

  	
  Phone:
  785-448-2888

  	
   

  	
  Fax:
  785-448-288

  	
   

  	
  Web
  Site: www.ekaellc.com

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