Document:

exv10w10

 

Exhibit 10.10

THIRD SUPPLEMENT

TO THE MASTER LOAN AGREEMENT

(REVOLVING LINE OF CREDIT LOAN)

     THIS THIRD SUPPLEMENT TO THE MASTER LOAN AGREEMENT (this “Third Supplement”), dated as of
September 26, 2006, is between F & M BANK-IOWA, a bank chartered under the laws of Iowa (the
“Lender”) and CENTRAL IOWA ENERGY, LLC, an Iowa limited liability company (the “Borrower”), and
supplements and incorporates all of the provisions of that certain Master Loan Agreement, dated as
of even date herewith, between the Lender and the Borrower (as the same may be amended, modified,
supplemented, extended or restated from time to time, the “MLA”).

     1. Definitions. As used in this Supplement, the following terms shall have the
following meanings. Capitalized terms used and not otherwise defined in this Supplement shall have
the meanings attributed to such terms in the MLA. Terms not defined in either this Supplement or
the MLA shall have the meanings attributed to such terms in the Uniform Commercial Code, as enacted
in the State of Iowa and as amended from time to time.

“Accounts” means all of the Borrower’s “Accounts”, as such term is defined in the
UCC, including, without limitation, the aggregate unpaid obligations of customers and other
account debtors to Borrower arising out of the sale or lease of goods or rendition of
services by Borrower on an open account or deferred payment basis.

“Availability Date” shall have the meaning specified in Section 5 of this Supplement.

“Borrowing Base” means, at any time, the lesser of: (a) $2,000,000.00; or (b)
commencing sixty days after start-up of operations, the sum of: (i) 75% of Borrower’s
Eligible Accounts Receivable; plus (ii) 75% of Borrower’s Eligible Inventory.

“Borrowing Base Certificate” means the certificate in the form of Exhibit A attached
hereto properly completed and duly executed by an authorized officer of the Borrower.

“Eligible Accounts Receivable” means all unpaid Accounts, net of any credits, except
the following shall not in any event be deemed Eligible Accounts:

(a) That portion of Accounts unpaid 30 days or more after the invoice date:

(b) That portion of Accounts that is disputed or subject to a claim of offset or a
contra account;

(c) That portion of Accounts not yet earned by the final delivery of goods or
rendition of services, as applicable, by any Borrower to the customer;

(d) Accounts owed by any unit of government, whether foreign or domestic except
Incentive Payments will be considered a part of Eligible Accounts as defined in this
Agreement;

 

 

(e) Accounts owed by an account debtor located outside the United States;

(f) Accounts owed by an account debtor that is insolvent, the subject of bankruptcy
proceedings or has gone out of business;

(g) Accounts owed by a member, Guarantor, Affiliate, officer or employee of any
Borrower. Notwithstanding the foregoing and subject to all other exclusions listed
in the Eligible Accounts Receivable definition, Accounts owed to Borrower by REG,
Inc. arising out of the sale of biodiesel, glycerin and fatty acids produced by
Borrower at its bio-diesel production facility in Newton, Iowa, and sold to REG,
Inc. pursuant to that certain Management and Operational Services Agreement dated
August 22, 2006, as amended by that certain First Amendment to Management and
Operational Services Agreement dated on or before September 26, 2006 by and between
REG, Inc. and Borrower, will be deemed to be Eligible Accounts;

(h) Accounts not subject to a duly perfected security interest in the Lender’s
favor or which are subject to any lien, security interest or claim in favor of any
Person other than the Lender, including, without limitation, any payment or
performance bond;

(i) That portion of Accounts that has been restructured, extended, amended or
modified;

(j) That portion of Accounts that constitutes advertising, finance charges,
service charges or sales or excise taxes; and

(k) Accounts, or portions thereof, otherwise deemed ineligible by the Lender, in
its sole discretion, exercised reasonably.

“Eligible Inventory” means all inventory held for ultimate sale or lease, or which
has been or will be supplied under contracts of service, or which are raw materials, work in
process, or materials used or consumed in the Borrower’s business and that has been
specifically identified and accepted by the Lender, excluding all of the following
inventory:

	 	(a)	 	Covered by documents of title, instruments, or chattel paper
when these documents, instruments and paper are not owned and held by the
Borrower or are subject to competing claims, liens or encumbrances.
	 
	 	(b)	 	Intended to be sold outside of the ordinary course of business.
	 
	 	(c)	 	Consigned, sold or leased to others or on consignment or lease
from others or subject to a bailment.
	 
	 	(d)	 	Subject to a competing claim, lien or encumbrance.

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	 	(e)	 	Paid for in advance with progress payments or any other sums to
the Borrower in anticipation of the sale and delivery of inventory.
	 
	 	(f)	 	Obsolete or unusable in the ordinary course of business.
	 
	 	(g)	 	Inventory of work in progress.
	 
	 	(h)	 	Inventory that the Lender, in its reasonable discretion,
disqualifies as Eligible Inventory.

“Incentive Payments” means any and all federal or state governmental subsidies,
payments, transfers or other benefits, whether now or hereafter established, received by the
Borrower in any fiscal year aged less than 120 days.

“Maximum Rate” shall have the meaning specified in Section 8 of this Supplement.

“Monthly Payment Date” means the first (1st) day of each calendar month.

“Outstanding Credit” means, at any time of determination, the aggregate amount of
Advances then outstanding under this Supplement and the Revolving Line of Credit Note.

“Outstanding Revolving Advance” means the total Outstanding Credit under this
Supplement and the Revolving Line of Credit Note.

“Request for Advance” shall have the meaning specified in Section 6(a) of this
Supplement.

“Revolving Advance” means an advance under this Supplement and the Revolving Line of
Credit Note.

“Revolving Letters of Credit” shall have the meaning specified in Section 7.

“Revolving Letter of Credit Liabilities” means, at any time, the aggregate maximum
amount available to be drawn under all outstanding Revolving Letters of Credit (in each
case, determined without regard to whether any conditions to drawing could then be met) and
all unreimbursed drawings under Revolving Letters of Credit.

“Revolving Line of Credit Loan” shall have the meaning specified in Section 2 of
this Supplement.

“Revolving Line of Credit Commitment” shall have the meaning specified in Section 2
of this Supplement.

“Revolving Line of Credit Loan Maturity Date” shall have the meaning specified in
Section 2 of this Supplement.

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“Revolving Line of Credit Loan Termination Date” shall have the meaning specified in
Section 2 of this Supplement.

“Unused Commitment Fee” shall have the meaning specified in Section 6(d) of this
Supplement.

     2. Revolving Line of Credit Commitment. On the terms and conditions set forth in the
MLA and this Third Supplement, Lender agrees to make one or more advances (collectively, the
“Revolving Line of Credit Loan”) to the Borrower, during the period beginning on the Availability
Date (as defined in Section 5 of this Third Supplement) and ending on the Business Day immediately
preceding the Revolving Line of Credit Loan Maturity Date (as hereinafter defined in this Section
2) (the “Revolving Line of Credit Termination Date”), in an aggregate principal amount outstanding
at any one time not to exceed $2,000,000.00 (the “Revolving Line of Credit Commitment”) provided,
however, that at no time shall the Outstanding Revolving Advance exceed the Borrowing Base. The
Revolving Loan Commitment shall expire at 12:00 noon Central time on the 364th day from the
Conversion Date (the “Revolving Line of Credit Loan Maturity Date”). Subject to Section 7 of this
Third Supplement, under the Revolving Loan Commitment amounts borrowed and repaid or prepaid may be
re-borrowed at any time prior to and including the Revolving Line of Credit Termination Date.

     3. Purpose. The purposes for which advances under the Loan may be used are for
general corporate and operating purposes of the Borrower and its subsidiaries, including closing
costs and fees associated with the Revolving Line of Credit Loan. The Borrower agrees that the
proceeds of the Loan are to be used only for the purposes set forth in this Section 3.

     4. Repayment of the Revolving Line of Credit Loan. The Borrower will pay accrued
interest on the Revolving Line of Credit Loan on the first (1st) day of each month,
commencing on the first (1st) Monthly Payment Date following the date on which the first
Advance is made on the Revolving Line of Credit Loan, and continuing on each Monthly Payment Date
thereafter until the Revolving Line of Credit Loan Maturity Date. On the Revolving Line of Credit
Loan Maturity Date, the amount of the then unpaid principal balance of the Revolving Line of Credit
Loan and any and all other amounts due and owing hereunder or under any other Loan Document
relating to the Revolving Line of Credit Loan will be due and payable. If any Payment Date is not
a Business Day, then the principal installment then due shall be paid on the next Business Day and
shall continue to accrue interest until paid.

     5. Availability. Subject to the provisions of the MLA and this Third Supplement,
during the period commencing on the date on which all conditions precedent to the initial advance
under the Revolving Line of Credit Loan are satisfied (the “Availability Date”) and ending on the
Revolving Line of Credit Loan Termination Date, advances under the Revolving Line of Credit Loan
will be made as provided in this Third Supplement.

     6. Making the Advances. 

          (a) Revolving Advances. Each Revolving Advance shall be made, on notice from the
Borrower (a “Request for Advance”) to the Lender delivered before 12:00 Noon

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(Minneapolis, Minnesota time) on a Business Day which is at least three (3) Business Days prior to
the date of such Revolving Advance specifying the amount of such Revolving Advance, provided that,
no Revolving Advance shall be made while an Event of Default exists or if the interest rate for
such LIBOR Rate Loan would exceed the Maximum Rate. Any Request for Advance applicable to a
Revolving Advance received after 12:00 Noon (Minneapolis, Minnesota time) shall be deemed to have
been received and be effective on the next Business Day. The amount so requested from the Lender
shall, subject to the terms and conditions of this Third Supplement, be made available to the
Borrower by: (i) depositing the same, in same day funds, in an account of the Borrower; or (ii)
wire transferring such funds to a Person or Persons designated by the Borrower in writing.

          (b) Requests for Advances Irrevocable. Each Request for Advance shall be irrevocable
and binding on the Borrower and the Borrower shall indemnify the Lender against any loss or expense
it may incur as a result of any failure to borrow any Advance after a Request for Advance
(including any failure resulting from the failure to fulfill on or before the date specified for
such Advance the applicable conditions set forth in this Third Supplement and the MLA), including,
without limitation, any loss (including loss of anticipated profits) or expense incurred by reason
of the liquidation or reemployment of deposits or other funds acquired by the Lender to fund such
Advance when such Advance, as a result of such failure, is not made on such date.

          (c) Minimum Amounts. Each Revolving Advance shall be in a minimum amount equal to
$50,000.00.

          (d) Unused Commitment Fee. In addition to fees payable on the Closing Date, Borrower
agrees to pay to the Lender an Unused Commitment Fee on the average daily unused portion of such
Lender’s commitment under the Revolving Line of Credit Loan from the Availability Date until the
Revolving Line of Credit Loan Maturity Date at the rate of 0.35% per annum, payable in arrears in
quarterly installments payable on the first (1st) day of each third month after the
Availability Date.

          (e) Conditions Precedent to All Advances. The Lender’s obligation to make each
Advance under the Revolving Line of Credit Note shall be subject to the terms, conditions and
covenants set forth in the MLA and this Third Supplement, including, without limitation, the
following further conditions precedent:

                         (i) Completion of Project. The Project shall have been completed per the Plans and
Specifications and a Completion Certificate shall have been obtained;

                         (ii) Repayment of Construction Loan. All obligations of the Borrower for the
Construction Loan shall have been paid in full (whether through conversion to a Term Loan pursuant
to MLA and the First Supplement or otherwise);

                         (iii) Representations and Warranties. The representations and warranties set forth in
the MLA and this Third Supplement are true and correct in all material respects as of the date of
the request for any Advance, except as disclosed in writing to the

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Lender, to the same extent and with the same effect as if made at and as of the date thereof
except as disclosed in writing to the Lender;

                         (iv) No Defaults. The Borrower is not in default under the terms of the MLA, the
Related Documents or any other Material Contracts to which the Borrower is a party and which
relates to the construction of the Project or the operation of the Borrower’s business;

                         (v) Government Action. No license, permit, permission or authority necessary for the
construction or operation of the Project has been revoked or challenged by or before any
Governmental Authority; and

                         (vi) Marketing Agreements. The Borrower has executed marketing agreements for all
biodiesel and glycerin to be produced at the Project and provided Lender with collateral
assignments of all such agreements in form and content which is satisfactory to Lender and its
counsel and acknowledged by the non-Borrower party to all such agreements.

     7. Letters of Credit.

          Commitment to Issue. The Borrower may request Revolving Advances by the Lender, and
the Lender, subject to the terms and conditions of this Third Supplement, may, in its sole
discretion, issue letters of credit for any Borrower’s account (such letters of credit, being
hereinafter referred to collectively as the “Revolving Letters of Credit”); provided, however,
that:

                         (i) the aggregate amount of outstanding Revolving Letter of Credit Liabilities shall not at
any time exceed the amount of $500,000.00;

                         (ii) the sum of the outstanding Revolving Letters of Credit plus the Outstanding Revolving
Advances shall not at any time exceed the Borrowing Base;

                         (iii) the expiration date of a Revolving Letter of Credit advanced under the Revolving Line of
Credit Loan shall be no later than the Revolving Line of Credit Loan Maturity Date.

     Any Revolving Letters of Credit issued under this Section 7 are subject to the provisions of
Section 2.06 of the MLA.

     8. Interest Rate. Subject to the provisions of Sections 2.07 and 2.08 of the MLA and
Section 9 and 11 of this Third Supplement, the Revolving Line of Credit Loan shall bear interest at
a rate equal to the LIBOR Rate plus 325 basis points. The computation of interest, amortization,
maturity and other terms and conditions of the Revolving Line of Credit Loan shall be as provided
in the Revolving Line of Credit Note, provided, however, in no event shall the applicable rate
exceed the maximum nonusurious interest rate, if any, that at any time, or from time to time, may
be contracted for, taken, reserved, charged, or received under applicable state or federal laws
(the “Maximum Rate”).

     9. Default Interest. In addition to the rights and remedies set forth in the MLA:
(i) if the Borrower fails to make any payment to Lender when due, then at Lender’s option in each

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instance, such obligation or payment shall bear interest from the date due to the date paid at 2%
per annum in excess of the rate of interest that would otherwise be applicable to such obligation
or payment; (ii) upon the occurrence and during the continuance of an Event of Default beyond any
applicable cure period, if any, at Lender’s option in each instance, the unpaid balances of the
Revolving Line of Credit Loan shall bear interest from the date of the Event of Default or such
later date as Lender shall elect at 2% per annum in excess of the rate(s) of interest that would
otherwise be in effect on the Revolving Line of Credit Loan under the terms of the Revolving Line
of Credit Note; (iii) after the maturity of the Revolving Line of Credit Loan, whether by reason of
acceleration or otherwise, the unpaid principal balance of the Revolving Line of Credit Loan
(including without limitation, principal, interest, fees and expenses) shall automatically bear
interest at 2% per annum in excess of the rate of interest that would otherwise be in effect on the
Revolving Line of Credit Loan under the terms of the Revolving Line of Credit Note. Interest
payable at the Default Rate shall be payable from time to time on demand or, if not sooner
demanded, on the last day of each calendar month.

     10. Late Charge. If any payment of principal or interest due under this Supplement or
the Revolving Line of Credit Note is not paid within ten (10) days of the due date thereof, the
Borrower shall pay, in addition to such amount, a late charge equal to five percent (5%) of the
amount of such payment.

     11. Changes in Law Rendering Certain LIBOR Rate Loans Unlawful. In the event that any
change in any applicable law (including the adoption of any new applicable law) or any change in
the interpretation of any applicable law by any judicial, governmental or other regulatory body
charged with the interpretation, implementation or administration thereof, should make it (or in
the good-faith judgment of the Lender should raise a substantial question as to whether it is)
unlawful for the Lender to make, maintain or fund LIBOR Rate Loans, then: (a) the Lender shall
promptly notify each of the other parties hereto; and (b) the obligation of the Lender to make
LIBOR rate loans of such type shall, upon the effectiveness of such event, be suspended for the
duration of such unlawfulness. During the period of any suspension, Lender shall make loans to
Borrower that are deemed lawful and that as closely as possible reflect the terms of the MLA.

     12. Maximum Amount Limitation. Anything in this MLA, this Third Supplement, or the
other Loan Documents to the contrary notwithstanding, Borrower shall not be required to pay
unearned interest on the Revolving Line of Credit Note or any of the Loan Obligations, or ever be
required to pay interest on the Revolving Line of Credit Note or any of the Loan Obligations at a
rate in excess of the Maximum Rate, if any. If the effective rate of interest which would
otherwise be payable under the MLA, this Supplement, the Revolving Line of Credit Note, or any of
the other Loan Documents would exceed the Maximum Rate, if any, then the rate of interest which
would otherwise be contracted for, charged, or received under the MLA, this Supplement, the
Revolving Line of Credit Note, or any of the other Loan Documents shall be reduced to the Maximum
Rate, if any. If any unearned interest or discount or property that is deemed to constitute
interest (including, without limitation, to the extent that any of the fees payable by Borrower for
the Loan Obligations to the Lender under the MLA, this Supplement, the Revolving Line of Credit
Note, or any of the other Loan Documents are deemed to constitute interest) is contracted for,
charged, or received in excess of the Maximum Rate, if

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any, then such interest in excess of the Maximum Rate shall be deemed a mistake and canceled, shall
not be collected or collectible, and if paid nonetheless, shall, at the option of the holder of the
Revolving Line of Credit Note, be either refunded to the Borrower, or credited on the principal of
the Revolving Line of Credit Note. It is further agreed that, without limitation of the foregoing
and to the extent permitted by applicable law, all calculations of the rate of interest or discount
contracted for, charged or received by the Lender under the Revolving Line of Credit Note, or under
any of the Loan Documents, that are made for the purpose of determining whether such rate exceeds
the Maximum Rate applicable to the Lender, if any, shall be made, to the extent permitted by
applicable laws (now or hereafter enacted), by amortizing, prorating and spreading during the
period of the full terms of the Advances evidenced by the Revolving Line of Credit Note, and any
renewals thereof all interest at any time contracted for, charged or received by Lender in
connection therewith. This section shall control every other provision of all agreements among the
parties to the MLA pertaining to the transactions contemplated by or contained in the Loan
Documents, and the terms of this section shall be deemed to be incorporated in every Loan Document
and communication related thereto.

     13. Mandatory Prepayments or Collateralization. The Borrowers shall, within five (5)
days following the earlier of the delivery of each Borrowing Base Certificate hereof or the day
upon which such Borrowing Base Certificate was due, either (i) prepay the Advances in the amount,
if any, by which the Outstanding Credit on the date of prepayment under this Section 15 exceeds the
Borrowing Base at such time, together with accrued interest to the date of such prepayment on the
amount prepaid, or (ii) pledge and assign to the Lender additional collateral acceptable to the
Lender, in the Lender’s sole discretion, and deliver all documentation that the Lender, in its sole
discretion, may require in connection with such pledge and assignment and the perfection of a
first-priority security interest in such additional collateral, so that the Borrowing Base plus the
value assigned by the Lender, in its sole discretion, to such additional collateral equals or
exceeds the Outstanding Credit.

     14. Reporting Requirements. In addition to the reporting requirements under Section
5.01(c) in the MLA, the Borrower will furnish to the Lender as soon as available and in any event
within 30 days after the end of each month (or at such other times or with such greater frequency
as is requested by the Lender), a duly completed Borrowing Base Certificate, setting forth the
Borrowing Base as of the last day of such month calculated based upon collateral value criteria and
advance rates which do not exceed those set forth in the Borrowing Base Certificate, and including
such other information, representation and warranties contemplated therein, certified by the
appropriate authorized officer of the Borrower.

     15. Security. The Borrower’s obligations hereunder and, to the extent related
thereto, the MLA, shall be secured as provided in the MLA.

     IN WITNESS WHEREOF, the parties have caused this Third Supplement to the Master Loan Agreement
to be executed by their duly authorized officers as of the date shown above.

{SIGNATURE PAGE TO FOLLOW THIS PAGE}

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SIGNATURE PAGE TO

THIRD SUPPLEMENT

TO

MASTER LOAN AGREEMENT

BY AND BETWEEN

CENTRAL IOWA ENERGY, LLC

AND

F & M BANK-IOWA

DATED: September 26, 2006

	 	 	 	 	 	 	 
	 	 	CENTRAL IOWA ENERGY, LLC

an Iowa limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James Johnston	 	 
	 

	 	 	 	 	 	 
	 	 	Name: James Johnston

Title: Chairman	 	 
	 
	 	 	 	 	 	 
	 	 	F & M BANK-IOWA, a bank chartered under the laws of Iowa	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Daniel J. Hassman	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Daniel J. Hassman

Its: President	 	 

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EXHIBIT A

BORROWING BASE CERTIFICATE

Detailed Calculation

Date: _________________ ____,______

	 	 	 	 	 	 	 	 	 	 	 
	1	 	Accounts Receivable:
	 	 	 	 	 	 	 	 
	 	 	                     (biodiesel)
	 	$	 	 	 	 	 	 
	 	 	                     (glycerin)
	 	$	 	 	 	 	 	 
	 	 	Other
	 	$	 	 	 	 	 	 
	 	 	Other
	 	$	 	 	 	 	 	 
	 	 	Total
	 	$	 	 	 	 	 	 
	 	 	Deduct Ineligible Accounts (31 days or more from invoice date)
	 	$	 	 	 	 	 	 
	 	 	Deduct Ineligible Accounts (as determined by Bank)
	 	$	 	 	 	 	 	 
	 	 	Eligible Accounts Receivable
	 	$	 	 	 	 	 	 
	 	 	Multiply by Borrowing Base Factor
	 	 	75.00	%	 	 	 	 
	 	 	Accounts Receivable Loan Availability
	 	 	 	 	 	$	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	2	 	Glycerin (current value)
	 	 	 	 	 	 	 	 
	 	 	Ending soybean oil Inventory
	 	$	 	 	 	 	 	 
	 	 	Ending Glycerin & other bi-products Inventory
	 	$	 	 	 	 	 	 
	 	 	Total Inventory
	 	 	 	 	 	 	 	 
	 	 	Multiply by Borrowing Base Factor
	 	 	75.00	%	 	 	 	 
	 	 	Inventory Loan Availability
	 	 	 	 	 	$	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	3	 	Biodiesel Inventories (lower of cost or market)
	 	 	 	 	 	 	 	 
	 	 	Ending Biodiesel Inventory
	 	$	 	 	 	 	 	 
	 	 	Ending                      Inventory
	 	$	 	 	 	 	 	 
	 	 	Other Inventory
	 	 	 	 	 	 	 	 
	 	 	Total Inventory
	 	$	 	 	 	 	 	 
	 	 	Multiply by Borrowing Base Factor
	 	 	75.00	%	 	 	 	 
	 	 	Inventory Loan Availability
	 	 	 	 	 	$	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	4	 	Total Borrowing Base (Totals from #1, #2, & #3)
	 	 	 	 	 	$	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	5	 	Outstanding Loan Balance (as of month end)
	 	$	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	6	 	Margin (Line 4 minus Line 5)
	 	 	 	 	 	$	 	 

10exv10w11

 

Exhibit 10.11

AGREEMENT FOR PRIVATE REDEVELOPMENT

By and Between

JASPER COUNTY, IOWA

AND

CENTRAL IOWA ENERGY, LLC

 

 

AGREEMENT FOR

PRIVATE REDEVELOPMENT

     THIS AGREEMENT FOR PRIVATE REDEVELOPMENT (hereinafter called “Agreement”), is made on or as of
the 21st day of November, 2006, by and among the COUNTY OF JASPER, IOWA, a political subdivision
(hereinafter called “County”) of the State of Iowa acting under the authorization of Chapter 403 of
the Code of Iowa, 2005, as amended (hereinafter called “Urban Renewal Act”) and CENTRAL IOWA
ENERGY, LLC, an Iowa limited liability company having an office for the transaction of business at
3426 East 28th Street North, Newton, Iowa (the “Developer”).

     WITNESSETH:

     WHEREAS, in furtherance of the objectives of the Urban Renewal Act, the County has undertaken
a program for the clearance and reconstruction or rehabilitation of an economic development area in
the County and, in this connection, is engaged in carrying out urban renewal project activities in
an area known as the Amended Jasper County Urban Renewal Area, which area is described in Amendment
No. 3 to the Urban Renewal Plan approved for such area by Resolution No. 06-87 on September 12,
2006; and

     WHEREAS, a copy of the foregoing Urban Renewal Plan has been recorded among the land records
in the office of the Recorder of Jasper County, Iowa; and

     WHEREAS, the Developer owns or has the right to occupy certain real property located in the
foregoing Amended Jasper County Urban Renewal Area as more particularly described in Exhibit A
annexed hereto and made a part hereof (which property as so described is hereinafter referred to as
the “Development Property”); and

     WHEREAS, the Developer is willing to cause certain improvements to be constructed on the
Development Property and thereafter to cause the same to be operated in accordance with this
Agreement; and

     WHEREAS, the County believes that the development of the Development Property pursuant to this
Agreement and the fulfillment generally of this Agreement, are in the vital and best interests of
the County and in accord with the public purposes and provisions of the applicable State and local
laws and requirements under which the foregoing project has been undertaken and is being assisted.

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     NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties
hereto, each of them does hereby covenant and agree with the other as follows:

ARTICLE I. DEFINITIONS

     Section 1.1. Definitions. In addition to other definitions set forth in this
Agreement, all capitalized terms used and not otherwise defined herein shall have the following
meanings unless a different meaning clearly appears from the context:

     Agreement means this Agreement and all appendices hereto, as the same may be from time
to time modified, amended or supplemented.

     Assessment Agreement means the Minimum Assessment Agreement, substantially in the form
of the agreement contained in Exhibit D attached hereto and hereby made a part of this Agreement,
among the Developer, the County and the Assessor for the County, entered into pursuant to Section
6.8 of this Agreement.

     Assessor’s Minimum Actual Value means the agreed minimum actual value of the
Development Property for calculation and assessment of real property taxes, as set forth in the
Assessment Agreement.

     Certificate of Completion means a certification in the form of the certificate
attached hereto as Exhibit C and hereby made a part of this Agreement, provided to the Developer
pursuant to Section 3.4 of this Agreement.

     Code means the Code of Iowa, 2005, as amended.

     Construction Plans means the plans, specifications, drawings and related documents
reflecting the construction work to be performed by the Developer on the Development Property; the
Construction Plans shall be as detailed as the plans, specifications, drawings and related
documents which are submitted to the building inspector of the County as required by applicable
County codes.

     County means the County of Jasper, Iowa.

     Developer means Central Iowa Energy, LLC, an Iowa limited liability company, and its
successors and assigns.

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     Development Property means that portion of the Amended Jasper County Urban Renewal
Area of the County described in Exhibit A hereto.

     Event of Default means any of the events described in Section 10.1 of this Agreement.

     First Mortgage means any Mortgage granted to secure any loan made pursuant to either a
mortgage commitment obtained by the Developer from a commercial lender or other financial
institution to fund any portion of the construction costs and initial operating capital
requirements of the Minimum Improvements, or all such Mortgages as appropriate.

     Full Time Employment Unit means either (i) a “full time” employee who works at least
37.5 hours per week or 1,950 hours per year or (ii) any combination of “part time” employees, who,
in the aggregate, work at least 1,950 hours per year.

     Minimum Improvements shall consist of the construction of a thirty (30) million gallon
annual production biodiesel processing plant, together with all related site improvements described
in the Construction Plans, as outlined in Exhibit B hereto.

     Mortgage means any mortgage or security agreement in which the Developer has granted a
mortgage or other security interest in the Development Property, or any portion or parcel thereof,
or any improvements constructed thereon.

     Net Proceeds means any proceeds paid by an insurer to the Developer under a policy or
policies of insurance required to be provided and maintained by the Developer, as the case may be,
pursuant to Article V of this Agreement and remaining after deducting all expenses (including fees
and disbursements of counsel) incurred in the collection of such proceeds.

     Project shall mean the construction of the Minimum Improvements on the Development
Property, as described in this Agreement.

     Public Improvements means the sanitary sewer improvements to be constructed by the
County to provide service to the Minimum Improvements, which improvements have been designated by
the County as the NE Service Area Sanitary Sewer Improvements Phase 4.

     State means the State of Iowa.

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     Termination Date means the date of termination of this Agreement, as established in
Section 10.8 of this Agreement.

     Unavoidable Delays means delays resulting from acts or occurrences outside the
reasonable control of the party claiming the delay including but not limited to storms, floods,
fires, explosions or other casualty losses, unusual weather conditions, strikes, boycotts, lockouts
or other labor disputes, delays in transportation or delivery of material or equipment, litigation
commenced by third parties, or the acts of any federal, State or local governmental unit (other
than the County).

     Urban Renewal Plan means Amendment No. 3 to the Urban Renewal Plan approved in respect
of the Amended Jasper County Urban Renewal Area, described in the preambles hereof.

ARTICLE II. REPRESENTATIONS AND WARRANTIES

     Section 2.1. Representations and Warranties of the County. The County makes the
following representations and warranties:

     (a) The County is a political subdivision organized under the provisions of the Constitution
and the laws of the State and has the power to enter into this Agreement and carry out its
obligations hereunder.

     (b) The execution and delivery of this Agreement, the consummation of the transactions
contemplated hereby, and the fulfillment of or compliance with the terms and conditions of this
Agreement are not prevented by, limited by, in conflict with, or result in a breach of, the terms,
conditions or provisions of any contractual restriction, evidence of indebtedness, agreement or
instrument of whatever nature to which the County is now a party or by which it is bound, nor do
they constitute a default under any of the foregoing.

     Section 2.2. Representations and Warranties of Developer. The Developer makes the
following representations and warranties:

     (a) The Developer is an Iowa limited liability company duly organized and

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validly existing under the laws of the State of Iowa, is authorized to conduct business in the
State of Iowa and has all requisite power and authority to own and operate its properties, to carry
on its business as now conducted and as presently proposed to be conducted, and to enter into and
perform its obligations under the Agreement.

     (b) This Agreement has been duly and validly authorized, executed and delivered by the
Developer and, assuming due authorization, execution and delivery by the County, is in full force
and effect and is a valid and legally binding instrument of the Developer enforceable in accordance
with its terms, except as the same may be limited by bankruptcy, insolvency, reorganization or
other laws relating to or affecting creditors’ rights generally.

     (c) The execution and delivery of this Agreement, the consummation of the transactions
contemplated hereby, and the fulfillment of or compliance with the terms and conditions of this
Agreement are not prevented by, limited by, in conflict with, or result in a violation or breach
of, the terms, conditions or provisions of the articles of organization or operating agreement of
the Developer or of any contractual restriction, evidence of indebtedness, agreement or instrument
of whatever nature to which the Developer is now a party or by which it or its property is bound,
nor do they constitute a default under any of the foregoing.

     (d) There are no actions, suits or proceedings pending or threatened against or affecting the
Developer in any court or before any arbitrator or before or by any governmental body in which
there is a reasonable possibility of an adverse decision which could materially adversely affect
the business (present or prospective), financial position or results of operations of the Developer
or which in any manner raises any questions affecting the validity of the Agreement or the
Developer’s ability to perform its obligations under this Agreement.

     (e) The Developer will cause the Minimum Improvements to be constructed in accordance with the
terms of this Agreement, the Urban Renewal Plan and all local, State and federal laws and
regulations, except for variances necessary to construct the Minimum Improvements contemplated in
the Construction Plans.

     (f) The Developer will use its best efforts to obtain, or cause to be obtained, in a timely
manner, all required permits, licenses and approvals, and will meet, in a timely manner, all
requirements of all applicable local, State, and federal laws and regulations which must be
obtained or met before the Minimum Improvements may be lawfully constructed.

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     (g) The acquisition of the Development Property and the construction of the Minimum
Improvements will require a total investment of not less than $38,000,000.

     (h) The Developer has not received any notice from any local, State or federal official that
the activities of the Developer with respect to the Development Property may or will be in
violation of any environmental law or regulation (other than those notices, if any, of which the
County has previously been notified in writing). The Developer is not currently aware of any State
or federal claim filed or planned to be filed by any party relating to any violation of any local,
State or federal environmental law, regulation or review procedure applicable to the Development
Property, and the Developer is not currently aware of any violation of any local, State or federal
environmental law, regulation or review procedure which would give any person a valid claim under
any State or federal environmental statute with respect thereto.

     (i) The Developer has firm commitments for construction or acquisition and permanent financing
for the Project in an amount sufficient, together with equity commitments, to successfully complete
the Minimum Improvements in accordance with the Construction Plans contemplated in this Agreement.

     (j) The Developer will cooperate fully with the County in resolution of any traffic, parking,
trash removal or public safety problems which may arise in connection with the construction and
operation of the Minimum Improvements.

     (k) The Developer expects that, barring Unavoidable Delays, the Minimum Improvement will be
substantially completed by March 31, 2007.

     (l) The Developer would not undertake its obligations under this Agreement without the
construction by the County of the Public Improvements described in this Agreement.

ARTICLE III. CONSTRUCTION OF MINIMUM IMPROVEMENTS

     Section 3.1. Construction of Minimum Improvements. The Developer agrees that it will
cause the Minimum Improvements to be constructed on the Development Property in conformance with
the Construction Plans submitted to the County. The Developer agrees that the scope and scale of
the Minimum Improvements to be constructed shall not be significantly less than the scope and scale
of the Minimum Improvements as detailed and outlined in the Construction Plans, and shall in no
event require a total investment of less than $38,000,000.

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     Section 3.2. Construction Plans. The Developer shall cause Construction Plans to be
provided for the Minimum Improvements which shall be subject to approval by the County as provided
in this Section 3.2. The Construction Plans shall be in conformity with the Urban Renewal Plan,
this Agreement, and all applicable State and local laws and regulations. The County shall approve
the Construction Plans in writing if: (a) the Construction Plans conform to the terms and
conditions of this Agreement; (b) the Construction Plans conform to the terms and conditions of the
Urban Renewal Plans; (c) the Construction Plans conform to all applicable federal, State and local
laws, ordinances; rules and regulation and County permit requirements; (d) the Construction Plans
are adequate for purposes of this Agreement to provide for the construction of the Minimum
Improvements and (e) no Event of Default under the terms of this Agreement has occurred; provided,
however, that any such approval of the Construction Plans pursuant to this Section 3.2 shall
constitute approval for the purposes of this Agreement only and shall not be deemed to constitute
approval or waiver by the County with respect to any building, fire, zoning or other ordinances or
regulation of the County, and shall not be deemed to be sufficient plans to serve as the basis for
the issuance of a building permit if the Construction Plans are not as detailed or complete as the
plans otherwise required for the issuance of a building permit. The site plans submitted to the
building official of the County for the Development Property and the surrounding areas where the
Minimum Improvements are to be constructed by the Developer shall be adequate to serve as the
Construction Plans, if such site plans are approved by the building official.

     Approval of the Construction Plans by the County shall not relieve the Developer of any
obligation to comply with the terms and provisions of this Agreement, or the provision of
applicable federal, State and local laws, ordinances and regulations, nor shall approval of the
Construction Plans by the County be deemed to constitute a waiver of any Event of Default.

     Approval of Construction Plans hereunder is solely for purposes of this Agreement, and shall
not constitute approval for any other County purpose nor subject the County to any liability for
the Minimum Improvements as constructed.

     Section 3.3. Commencement and Completion of Construction. Subject to Unavoidable
Delays, the Developer shall cause construction of the Minimum Improvements to be undertaken and
completed (i) by no later than March 31, 2007 or (ii) by such other date as the parties shall
mutually agree upon in writing. Time lost as a result of Unavoidable Delays shall be added to
extend this date by a number of days equal to the number of days lost as a result of Unavoidable
Delays. All work with respect to the Minimum Improvements to be constructed or provided by the
Developer shall be in

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conformity with the Construction Plans approved by the building official or any amendments thereto
as may be approved by the building official.

     The Developer agrees that it shall permit designated representatives of the County, upon
reasonable notice to the Developer (which does not have to be written), to enter upon the
Development Property during the construction of the Minimum Improvements to inspect such
construction and the progress thereof.

     Section 3.4. Certificate of Completion. Upon written request of the Developer after
issuance of an occupancy permit for the Minimum Improvements, the County will furnish the Developer
with a Certificate of Completion in the recordable form, in substantially the form set forth in
Exhibit C attached hereto. Such Certificate of Completion shall be conclusive determination of
satisfactory termination of the covenants and conditions of this Agreement with respect to the
obligations of the Developer to construct the Minimum Improvements.

     The Certificate of Completion may be recorded in the proper office for the recordation of
deeds and other instruments pertaining to the Development Property at the Developer’s sole expense.
If the County shall refuse or fail to provide a Certificate of Completion in accordance with the
provisions of this Section 3.4, the County shall, within twenty (20) days after written request by
the Developer, provide the Developer with a written statement indicating in adequate detail in what
respects the Developer has failed to complete the Minimum Improvements in accordance with the
provisions of this Agreement, or is otherwise in default under the terms of this Agreement, and
what measures or acts it will be necessary, in the opinion of the County, for the Developer to take
or perform in order to obtain such Certificate of Completion.

ARTICLE IV. INSURANCE

     Section 4.1. Insurance Requirements.

     (a) The Developer will provide and maintain or cause to be maintained at all times during the
process of constructing the Minimum Improvements (and, from time to time at the request of the
County, furnish the County with proof of payment of premiums on ):

          (i) Builder’s risk insurance, written on the so-called “Builder’s Risk — Completed Value
Basis”, in an amount equal to one hundred percent (100%) of the insurable value of the Minimum
Improvements at the date of completion, and with

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coverage available in nonreporting form on the so-called “all risk” form of policy;

          (ii) Comprehensive general liability insurance (including operations, contingent liability,
operations of subcontractors, completed operations and contractual liability insurance) together
with an Owner’s Contractor’s Policy with limits against bodily injury and property damage of not
less than $500,000 for each occurrence (to accomplish the above-required limits, an umbrella excess
liability policy may be used); and

          (iii) Worker’s compensation insurance, with statutory coverage.

     (b) Upon completion of construction of the Minimum Improvements and at all times prior to the
Termination Date, the Developer shall maintain, or cause to be maintained, at its cost and expense
(and from time to time at the request of the County shall furnish proof of the payment of premiums
on) insurance as follows:

          (i) Insurance against loss and/or damage to the Minimum Improvements under a policy or
policies covering such risks as are ordinarily insured against by similar businesses, including
(without limitation the generality of the foregoing) fire, extended coverage, vandalism and
malicious mischief, explosion, water damage, demolition cost, debris removal, and collapse in an
amount not less than the full insurable replacement value of the Minimum Improvements. No policy
of insurance shall be so written that the proceeds thereof will produce less than the minimum
coverage required by the preceding sentence, by reason of co-insurance provisions or otherwise,
without the prior consent thereto in writing by the County. The term “full insurable replacement
value” shall mean the actual replacement cost of the Minimum Improvements (excluding foundation and
excavation costs and costs of underground flues, pipes, drains and other uninsurable items) and
equipment, and shall be determined from time to time at the request of the County, but not more
frequently than once every three years, by an insurance consultant or insurer selected and paid for
by the Developer and approved by the County.

          (ii) Comprehensive general public liability insurance, including personal injury liability
for injuries to persons and/or property, including any injuries resulting from the operation of
automobiles or other motorized vehicles on or about the Development Property, in the minimum amount
for each occurrence and for each year of $1,000,000.

          (iii) Such other insurance, including worker’s compensation insurance respecting all
employees of the Developer, in such amount as is customarily carried by

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like organizations engaged in like activities of comparable size and liability exposure; provided
that the Developer may be self-insured with respect to all or any part of its liability for
worker’s compensation.

     (c) All insurance required by this Article to be provided prior to the Termination Date shall
be taken out and maintained in responsible insurance companies selected by the Developer which are
authorized under the laws of the State to assume the risks covered thereby. The Developer will
deposit annually with the County copies of policies evidencing all such insurance, or a certificate
or certificates or binders of the respective insurers stating that such insurance is in force and
effect. Unless otherwise provided in this Article, each policy shall contain a provision that the
insurer shall not cancel or modify it without giving written notice to the Developer and the County
at least thirty (30) days before the cancellation or modification becomes effective. Not less than
fifteen (15) days prior to the expiration of any policy, the Developer shall furnish the County
evidence satisfactory to the County that the policy has been renewed or replaced by another policy
conforming to the provisions of this Article, or that there is no necessity therefor under the
terms hereof. In lieu of separate policies, the Developer may maintain a single policy, or blanket
or umbrella policies, or a combination thereof, which provide the total coverage required herein,
in which event the Developer shall deposit with the County a certificate or certificates of the
respective insurers as to the amount of coverage in force upon the Minimum Improvements.

     (d) The Developer agrees to notify the County immediately in the case of damage exceeding
$50,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting
from fire or other casualty. Net Proceeds of any such insurance shall be paid directly to the
Developer, and the Developer will forthwith repair, reconstruct and restore the Minimum
Improvements to substantially the same or an improved condition or value as they existed prior to
the event causing such damage and, to the extent necessary to accomplish such repair,
reconstruction and restoration, the Developer will apply the Net Proceeds of any insurance relating
to such damage received by the Developer to the payment or reimbursement of the costs thereof.

     (e) The Developer shall complete the repair, reconstruction and restoration of the Minimum
Improvements, whether or not the Net Proceeds of insurance received by the Developer for such
purposes are sufficient.

ARTICLE V. COVENANTS OF THE DEVELOPER

     Section 5.1. Maintenance of Properties. The Developer will maintain, preserve

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and keep its properties (whether owned in fee or a leasehold interest), including but not limited
to the Minimum Improvements, in good repair and working order, ordinary wear and tear accepted, and
from time to time will make all necessary repairs, replacements, renewals and additions.

     Section 5.2. Maintenance of Records. The Developer will keep at all times proper
books of record and account in which full, true and correct entries will be made of all dealings
and transactions of or in relation to the business and affairs of the Developer in accordance with
generally accepted accounting principles, consistently applied throughout the period involved, and
the Developer will provide reasonable protection against loss or damage to such books of record and
account.

     Section 5.3. Compliance with Laws. The Developer will comply with all laws, rules and
regulations relating to the Minimum Improvements, other than laws, rules and regulations the
failure to comply with which or the sanctions and penalties resulting therefrom, would not have a
material adverse effect on the business, property, operations, or condition, financial or
otherwise, of the Developer.

     Section 5.4. Non-Discrimination. In operating the Minimum Improvements, the Developer
shall not discriminate against any applicant, employee or tenant because of race, creed, color,
sex, national origin, age or disability. The Developer shall ensure that applicants, employees and
tenants are considered and are treated without regard to their race, creed, color, sex, national
origin, age or disability.

     Section 5.5. Employment Commitment. The Developer agrees to create at least twenty
(20) new Full Time Employment Units at the completed Minimum Improvements and to maintain all such
Full Time Employment Units at said location until at least the Termination Date set forth in
Section 10.8 hereof.

     Section 5.6. Annual Certification. To assist the County in monitoring and
performance of the Developer hereunder, a duly authorized officer of the Developer shall annually
certify to the County (a) the number of Full Time Employment Units at the Minimum Improvements as
of January 1, 2009 and as of the first day of each of the preceding eleven (11) months, and (b) to
the effect that such officer has re-examined the terms and provisions of this Agreement and that at
the date of such certificate, and during the preceding twelve (12) months, the Developer is not, or
was not, in default in the fulfillment of any of the terms and conditions of this Agreement and
that no Event of Default (or event which, with the lapse of time or the giving of notice, or both,
would become an Event of Default) is occurring or has occurred as of the date of such certificate
or during such period, or if the signer is aware of any such default, event or Event of

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Default, said officer shall disclose in such statement the nature thereof, its period of existence
and what action, if any, has been taken or is proposed to be taken with respect thereto. Such
certificate shall be provided not later than January 10 of each year, commencing January 10, 2009
and ending on January 10, 2015, both dates inclusive.

     Section 5.7. Real Property Taxes. The Developer shall pay, when due and before
delinquency, all real property taxes and assessments payable with respect to all and any parts of
the Development Property until the Developer’s obligations have been assumed by another party
pursuant to the provisions of this Agreement. The Developer agrees that prior to the Termination
Date:

	 	(a)	 	It will not protest or otherwise seek through the exercise of legal or
administrative remedies any reduction in the actual value assigned by the Assessor of
the County for property tax purposes of the Minimum Improvements or any part of the
Development Property; and
	 
	 	(b)	 	It will not seek administrative or judicial review of the applicability or
constitutionality of any tax statute relating to the taxation of property contained on
the Development Property determined by any tax official to be applicable to the
Development Property, the Minimum Improvements or the Developer, or raise the
inapplicability or constitutionality of any such tax statute as a defense in any
proceedings, including delinquent tax proceedings; and
	 
	 	(c)	 	It will not seek any tax deferral or abatement, either presently or
prospectively authorized under Chapters 403 or 404 of the Code, or any other state or
federal law, of the taxation of real property contained on the Development Property.

     Section 5.8. Execution of Assessment Agreement. The Developer agrees to enter
into an Assessment Agreement with the County, as of the date of this Agreement, pursuant to the
provisions of Section 403.6(19) of the Code of Iowa, specifying the Assessor’s Minimum Actual Value
for the Development Property and the Minimum Improvements for calculation of real property taxes.
Specifically, the Developer shall agree to a minimum actual value for the Development Property and
the Minimum Improvements which will result in a minimum actual value as of January 1, 2008 of not
less than $4,500,000 (such minimum actual value is herein referred to as the “Assessor’s Minimum
Actual Value”). Nothing in the Assessment Agreement shall limit the discretion of the Assessor to
assign an actual value to the property in excess of such Assessor’s Minimum Actual Value nor
prohibit the Developer from seeking through the

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exercise of legal or administrative remedies a reduction in such actual value for property tax
purposes; provided, however, that the Developer shall not seek a reduction of such actual value
below the Assessor’s Minimum Actual Value in any year so long as the Assessment Agreement shall
remain in effect. The Assessment Agreement shall remain in effect until the Termination Date. The
Assessment Agreement shall be certified by the Assessor for the County as provided in Iowa Code
Section 403.6(19) and shall be filed for record in the office of the County Recorder of the County,
and such filing shall constitute notice to any subsequent encumbrancer or purchaser of the
Development Property (or part thereof), whether voluntary or involuntary, and such Assessment
Agreement shall be binding and enforceable in its entirety against any such subsequent purchaser or
encumbrancer, and against the holder of any prior Mortgage consenting thereto.

     Section 5.9. No Voluntary Annexation. The Developer agrees that prior to the
Termination Date it will not, under any circumstances, seek to have the Development Property
annexed into or otherwise to become located within the corporate limits of the City of Newton, or
consent in any manner to any such annexation of the Development Property, either as presently or as
may prospectively be authorized under Chapter 368 of the Code or any other State law.

ARTICLE VI. ASSIGNMENT AND TRANSFER

     Section 6.1. Status of the Developer; Transfer of Substantially All Assets. As
security for the obligations of the Developer under this Agreement, the Developer represents and
agrees that, prior to the issuance of the Certificate of Completion and prior to the Termination
Date, the Developer will maintain its existence as a limited liability company and will not wind up
or otherwise dispose of all or substantially all of its assets or assign its interest in this
Agreement to any other party unless (i) the transferee partnership, corporation, limited liability
company or individual assumes in writing all of the obligations of the Developer under this
Agreement and (ii) the County consents thereto in writing in advance thereof.

ARTICLE VII. PUBLIC IMPROVEMENTS

     Section 7.1. Construction of Public Improvements. The parties recognize and agree
that the Public Improvements shall be undertaken and constructed pursuant to contracts let by the
County for that purpose. Subject to Unavoidable Delays and to compliance with all public bidding
requirements applicable thereto, the County shall

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cause construction of the Public Improvements to be undertaken and completed by the County by no
later than December 31, 2006, or by such other date as the parties shall mutually agree upon in
writing, all in accordance with the prevailing technical specifications, standards and practices of
the County. In each instance, time lost as a result of Unavoidable Delays shall be added to extend
these dates by a number of days equal to the number of days lost as a result of Unavoidable Delays.

     Section 7.2. Financing of Public Improvements. The County shall finance the costs of
construction of the Public Improvements to be undertaken and completed by it on such terms and
conditions as it shall determine to be satisfactory. The Developer recognizes that the Public
Improvements to be undertaken and completed by the County will be financed largely from the
proceeds of the sale of general obligation bonds or notes by the County, and agrees that such
bonds or notes may be sold on such terms and conditions, bear such interest rates, mature at such
times and in such amounts as the County shall determine to be reasonably acceptable to it. The
County’s obligation to issue said bonds or notes for such purposes shall be subject in all respects
to Unavoidable Delays and to satisfaction of all conditions required (in the judgment of bond
counsel for the County) by the Code with respect to the issuance of general obligation bonds or
notes for such purposes.

ARTICLE VIII. INDEMNIFICATION

     Section 8.1. Release and Indemnification Covenants.

     (a) The Developer releases the County and the governing body members, officers, agents,
servants and employees thereof (hereinafter, for purposes of this Article VIII, the “indemnified
parties”) from, covenant and agree that the indemnified parties shall not be liable for, and agree
to indemnify, defend and hold harmless the indemnified parties against, any loss or damage to
property or any injury to or death of any person occurring at or about or resulting from any defect
in the Minimum Improvements.

     (b) Except for any willful misrepresentation or any willful or wanton misconduct or any
unlawful act of the indemnified parties, the Developer agrees to protect and defend the indemnified
parties, now or forever, and further agree to hold the indemnified parties harmless, from any
claim, demand, suit, action or other proceedings whatsoever by any person or entity whatsoever
arising or purportedly arising from (i) any violation of any agreement or condition of this
Agreement (except with respect to any suit, action, demand or other proceeding brought by the
Developer against the County to enforce its rights under this Agreement), (ii) the acquisition and
condition of the

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Development Property and the construction, installation, ownership, and operation of the Minimum
Improvements or (iii) any hazardous substance or environmental contamination located in or on the
Development Property.

     (c) The indemnified parties shall not be liable for any damage or injury to the persons or
property of the Developer or its officers, agents, servants or employees or any other person who
may be about the Minimum Improvements due to any act of negligence of any person, other than any
act of negligence on the part of any such indemnified party or its officers, agents, servants or
employees.

     (d) All covenants, stipulations, promises, agreements and obligations of the County contained
herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of
the County, and not of any governing body member, officer, agent, servant or employee of the County
in the individual capacity thereof.

     (e) The provisions of this Article shall survive the termination of this Agreement.

ARTICLE IX. REMEDIES

     Section 9.1. Events of Default Defined. The following shall be “Events of Default”
under this Agreement and the term “Event of Default” shall mean, whenever it is used in this
Agreement, any one or more of the following events:

     (a) Failure by the Developer to cause the construction of the Minimum Improvements to be
commenced and completed pursuant to the terms, conditions and limitations of Article III of this
Agreement;

     (b) Transfer of any interest in this Agreement or the assets of the Developer in violation of
the provisions of Article VI of this Agreement;

     (c) Failure by the Developer to substantially observe or perform any covenant, condition,
obligation or agreement on its part to be observed or performed under this Agreement;

     (d) The holder of any Mortgage on the Development Property, or any improvements thereon, or
any portion thereof, commences foreclosure proceedings as a result of any default under the
applicable Mortgage documents;

     (e) The Developer shall:

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          (A) file any petition in bankruptcy or for any reorganization, arrangement, composition,
readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Act of
1978, as amended, or under any similar federal or state law; or

          (B) make an assignment for the benefit of its creditors; or

          (C) admit in writing its inability to pay its debts generally as they become due; or

          (D) be adjudicated a bankrupt or insolvent; or if a petition or answer proposing the
adjudication of the Developer as a bankrupt or its reorganization under any present or future
federal bankruptcy act or any similar federal or state law shall be filed in any court and such
petition or answer shall not be discharged or denied within ninety (90) days after the filing
thereof; or a receiver, trustee or liquidator of the Developer or the Minimum Improvements, or part
thereof, shall be appointed in any proceedings brought against the Developer, and shall not be
discharged within ninety (90) days after such appointment, or if the Developer shall consent to or
acquiesce in such appointment; or

     (f) Any representation or warranty made by the Developer in this Agreement, or made by the
Developer in any written statement or certificate furnished by the Developer pursuant to this
Agreement, shall prove to have been incorrect, incomplete or misleading in any material respect on
or as of the date of the issuance or making thereof.

     Section 9.2. Remedies on Default. Whenever any Event of Default referred to in
Section 9.1 of this Agreement occurs and is continuing, the County, as specified below, may take
any one or more of the following actions after (except in the case of an Event of Default under
subsections (e) or (f) of said Section 9.1) the giving of thirty (30) days’ written notice by the
County to the Developer and the holder of the First Mortgage (but only to the extent the County has
been informed in writing of the existence of a First Mortgage and been provided with the address of
the holder thereof) of the Event of Default, but only if the Event of Default has not been cured
within said thirty (30) days, or if the Event of Default cannot reasonably be cured within thirty
(30) days and the Developer does not provide assurances reasonably satisfactory to the County that
the Event of Default will be cured as soon as reasonably possible:

          (a) The County may suspend its performance under this Agreement until it receives assurances
from the Developer, deemed adequate by the County, that the Developer will cure its default and
continue its performance under this Agreement;

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          (b) The County may terminate this Agreement;

          (c) The County may withhold the Certificate of Completion;

          (d) The County may take any action, including legal, equitable or administrative action, which
may appear necessary or desirable to enforce performance and observance of any obligation,
agreement, or covenant of the Developer, as the case may be, under this Agreement; or

          (e) The County shall be entitled to recover from the Developer, and the Developer shall re-pay
to the County, an amount equal to the sum of all costs incurred by the County in connection with
the construction of the Public Improvements under Article VII hereof, and the County may take any
action, including any legal action it deems necessary, to recover such amount from the Developer.

     Section 9.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the
County is intended to be exclusive of any other available remedy or remedies, but each and every
remedy shall be cumulative and shall be in addition to every other remedy given under this
Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to
exercise any right or power accruing upon any default shall impair any such right or power or shall
be construed to be a waiver thereof, but any such right and power may be exercised from time to
time and as often as may be deemed expedient.

     Section 9.4. No Implied Waiver. In the event any agreement contained in this
Agreement should be breached by any party and thereafter waived by any other party, such waiver
shall be limited to the particular breach so waived and shall not be deemed to waive any other
concurrent, previous or subsequent breach hereunder.

     Section 9.5. Agreement to Pay Attorneys’ Fees and Expenses. Whenever any Event of
Default occurs and the County shall employ attorneys or incur other expenses for the collection of
payments due or to become due or for the enforcement or performance or observance of any obligation
or agreement on the part of the Developer herein contained, the Developer agrees that it shall, on
demand therefor, pay to the County the reasonable fees of such attorneys and such other expenses as
may be reasonably and appropriately incurred by the County in connection therewith.

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ARTICLE X. MISCELLANEOUS

     Section 10.1. Conflict of Interest. The Developer represents and warrants that, to
its best knowledge and belief after due inquiry, no officer or employee of the County, or its
designees or agents, nor any consultant or member of the governing body of the County, and no other
public official of the County who exercises or has exercised any functions or responsibilities with
respect to the Project during his or her tenure, or who is in a position to participate in a
decision-making process or gain insider information with regard to the Project, has had or shall
have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for
work or services to be performed in connection with the Project, or in any activity, or benefit
therefrom, which is part of the Project at any time during or after such person’s tenure.

     Section 10.2. Notices and Demands. A notice, demand or other communication under
this Agreement by any party to the other shall be sufficiently given or delivered if it is
dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered
personally, and

-19-

 

     (a) In the case of the Developer, is addressed or delivered personally to the Developer
at 3426 East 28th Street North, Newton, Iowa 50208; Attn: Jim Johnston, Chairman;
and

     (b) In the case of the County, is addressed to or delivered personally to the County at
Courthouse, P.O. Box 944, Newton, Iowa 50208; Attn: Chairperson, Board of Supervisors

or to such other designated individual or officer or to such other address as any party shall have
furnished to the other in writing in accordance herewith.

     Section 10.3. Titles of Articles and Sections. Any titles of the several parts,
Articles, and Sections of this Agreement are inserted for convenience of reference only and shall
be disregarded in construing or interpreting any of its provisions.

     Section 10.4. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument.

     Section 10.5. Governing Law. This Agreement shall be governed and construed in
accordance with the laws of the State of Iowa.

     Section 10.6. Entire Agreement. This Agreement and the exhibits hereto reflect the
entire agreement between the parties regarding the subject matter hereof, and supersedes and
replaces all prior agreements, negotiations or discussions, whether oral or written. This
Agreement may not be amended except by a subsequent writing signed by all parties hereto.

     Section 10.7. Successors and Assigns. This Agreement is intended to and shall inure
to the benefit of and be binding upon the parties hereto and their respective successors and
assigns.

     Section 10.8. Termination Date. This Agreement shall terminate and be of no further
force or effect on and after June 30, 2015.

     IN WITNESS WHEREOF, the County has caused this Agreement to be duly executed in its name and
behalf by its Chairperson and its seal to be hereunto duly affixed and attested by its Auditor, the
Developer has caused this Agreement to be duly executed in its name and behalf by its Chairman, all
on or as of the day first above written.

-20-

 

	 	 	 	 	 
	(SEAL) 	JASPER COUNTY, IOWA

 	 
	 	By:  	/s/ Max Worthington
 	 
	 	 	Chairperson, Board of Supervisors 	 
	 	 	 	 
	 

	 	 	 	 	 
	ATTEST:

 	 	 
	By:  	/s/ Dennis Parrott
 	 	 
	 	County Auditor 	 	 
	 	 	 	 

	 	 	 	 	 
	 	CENTRAL IOWA ENERGY, LLC

 	 
	 	By:  	/s/ James Johnston
 	 
	 	 	Its:              Chairman 	 
	 	 	 	 

-21-

 

	 	 	 	 	 	 	 	 	 
	STATE OF IOWA

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	SS	 	 
	COUNTY OF JASPER

	 	 	)	 	 	 	 	 

     On this 21st day of November, 2006, before me a Notary Public in and for said
County, personally appeared Max Worthington and Dennis Parrott to me personally known, who being
duly sworn, did say that they are the Chairperson and County Auditor, respectively of Jasper
County, Iowa, a political subdivision, created and existing under the laws of the State of Iowa,
and that the seal affixed to the foregoing instrument is the seal of said political subdivision,
and that said instrument was signed and sealed on behalf of said political subdivision by authority
and resolution of its Board of Supervisors and said Chairperson and County Auditor acknowledged
said instrument to be the free act and deed of said political subdivision by it voluntarily
executed.

	 	 	 	 	 	 	 	 
	SEAL

	 	CONNIE L. RARIDON	 	 	 	/s/ Connie L. Raridon
	 

	 	Commission Number 190481	 	 	 	Notary Public in and for Jasper County, Iowa
	 
	 	My Commission Expires	 	 	 	 
	 

	 	6-03-09	 	 	 	 

	 	 	 	 	 	 	 	 	 
	STATE OF Iowa

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	SS	 	 
	COUNTY OF Jasper

	 	 	)	 	 	 	 	 

     On this 20th day of November, 2006, before me the undersigned, a Notary Public
in and for said County, in said State, personally appeared Jim Johnston, to me personally known,
who, being by me duly sworn, did say that he is the Chairman of Central Iowa Energy, LLC, and that
said instrument was signed on behalf of said limited liability company; and that the said Jim
Johnston as such officer acknowledged the execution of said instrument to be the voluntary act and
deed of said company, by him voluntarily executed.

	 	 	 	 	 	 	 	 
	SEAL

	 	CONNIE L. RARIDON	 	 	 	/s/ Connie L. Raridon
	 

	 	Commission Number 190481
	 	 
	 	Notary Public in and for said County and State
	 

	 	My Commission Expires
	 	 	 	 
	 

	 	6-03-09	 	 	 	 

-22-

 

EXHIBIT A

DEVELOPMENT PROPERTY

     The Development Property is described as consisting of all that certain parcel or parcels of
land located in the County of Jasper, State of Iowa, more particularly described as follows:

Part of the Southwest Quarter of the Southwest Quarter of Section 13 and part of the
Northwest Quarter of the Northwest Quarter of Section 24, all in Township 80 North, Range 19
West of the 5th P.M., Jasper County, Iowa, described as:

Beginning at the Northwest corner of said Southwest Quarter of the Southwest Quarter of
Section 13; thence North 90°00’00” East, 667.16 feet along the North line of said Southwest
Quarter of the Southwest Quarter of Section 13; thence South 42°48’40” East, 837.64 feet;
thence South 47°11’20” West, 1705.05 feet to the West line of said Northwest Quarter of the
Northwest Quarter of Section 24; thence North 00°45’35” East, 460.65 feet along said West
line to the Southwest corner of said Southwest Quarter of the Southwest Quarter of Section
13; thence North 00°21’45” East, 1312.63 feet along the West line of said Southwest Quarter
of the Southwest Quarter of Section 13 to the point of beginning. Containing 29.92 acres
subject to highway.

-1-

 

EXHIBIT B

MINIMUM IMPROVEMENTS

     The Minimum Improvements shall consist of the construction of a thirty (30) million gallon
annual production biodiesel processing plant, all as set forth in the Construction Plans and being
as more particularly shown and in substantially the same configuration and scope as the Site Plan
attached hereto and made a part hereof.

     All construction, signage (if any) and landscaping shall be in accordance with said Site Plans
and with the Construction Plans and the Urban Renewal Plan.

-2-

 

EXHIBIT C

CERTIFICATE OF COMPLETION

     WHEREAS, the Jasper County, Iowa (the “County”) and Central Iowa Energy, LLC, an Iowa limited
liability company having an office for the transaction of business at 3426 East 28th
Street North, Newton, Iowa (the “Developer”), did on or about the 21st day of
November, 2006, make, execute and deliver, each to the other, an Agreement for Private
Redevelopment (the “Agreement”), wherein and whereby the Developer agreed, in accordance with the
terms of the Agreement, to develop and maintain certain real property located within the County and
as more particularly described as follows:

Part of the Southwest Quarter of the Southwest Quarter of Section 13 and part of the
Northwest Quarter of the Northwest Quarter of Section 24, all in Township 80 North, Range 19
West of the 5th P.M., Jasper County, Iowa, described as:

Beginning at the Northwest corner of said Southwest Quarter of the Southwest Quarter of
Section 13; thence North 90°00’00” East, 667.16 feet along the North line of said Southwest
Quarter of the Southwest Quarter of Section 13; thence South 42°48’40” East, 837.64 feet;
thence South 47°11’20” West, 1705.05 feet to the West line of said Northwest Quarter of the
Northwest Quarter of Section 24; thence North 00°45’35” East, 460.65 feet along said West
line to the Southwest corner of said Southwest Quarter of the Southwest Quarter of Section
13; thence North 00°21’45” East, 1312.63 feet along the West line of said Southwest Quarter
of the Southwest Quarter of Section 13 to the point of beginning. Containing 29.92 acres
subject to highway.

(together, the “Development Property”); and

     WHEREAS, the Agreement incorporated and contained certain covenants and restrictions with
respect to the development of the Development Property, and obligated the Developer to construct
certain Minimum Improvements (as defined therein) in accordance with the Agreement; and

     WHEREAS, the Developer has to the present date performed said covenants and conditions insofar
as they relate to the construction of said Minimum Improvements in a manner deemed by the County to
be in conformance with the approved building plans to permit the execution and recording of this
certification.

     NOW, THEREFORE, pursuant to Section 3.4 of the Agreement, this is to certify

-3-

 

that all covenants and conditions of the Agreement with respect to the obligations of the
Developer, and its successors and assigns, to construct the Minimum Improvements on the Development
Property have been completed and performed by the Developer and are hereby released absolutely and
forever terminated insofar as they apply to the land described herein. The County Recorder of
Jasper County is hereby authorized to accept for recording and to record the filing of this instrument, to be a conclusive
determination of the satisfactory termination of the covenants and conditions of said Agreement
with respect to the construction of the Minimum Improvements on the Development Property.

     All other provisions of the Agreement shall otherwise remain in full force and effect until
termination as provided therein.

	 	 	 	 	 
	(SEAL) 	JASPER COUNTY, IOWA

 	 
	 	By:  	/s/ Max Worthington
 	 
	 	 	Chairperson 	 
	 	 	 	 
	 

ATTEST:

	 	 	 	 	 
	By:

	 	/s/ Dennis Parrott
 

County Auditor
	 	 

-4-

 

	 	 	 	 	 
	STATE OF IOWA

COUNTY OF JASPER

	 	)

)

)
	 	

SS

     On this 21st day of November, 2006, before me a Notary Public in and for said
County, personally appeared Max Worthington and Dennis Parrott to me personally known, who being
duly sworn, did say that they are the Chairperson and County Auditor, respectively of Jasper
County, Iowa, a political subdivision, created and existing under the laws of the State of Iowa,
and that the seal affixed to the foregoing instrument is the seal of said political subdivision,
and that said instrument was signed and sealed on behalf of said political subdivision by authority
and resolution of its Board of Supervisors and said Chairperson and County Auditor acknowledged
said instrument to be the free act and deed of said political subdivision by it voluntarily
executed.

	 	 	 	 	 	 	 
	SEAL

	 	CONNIE L. RARIDON

Commission Number 190481

My Commission Expires

6-03-09
	 	 
	 	/s/ Connie L. Raridon
 
Notary Public in and for Jasper County, Iowa

-5-

 

EXHIBIT D

MINIMUM ASSESSMENT AGREEMENT

          THIS MINIMUM ASSESSMENT AGREEMENT, dated as of this 21st day of November, 2006, by and among
JASPER COUNTY, IOWA, (the “County”), CENTRAL IOWA ENERGY, LLC (the “Developer”), and the COUNTY
ASSESSOR for the County of Jasper, Iowa (the “Assessor”).

WITNESSETH:

     WHEREAS, on or before the date hereof the County and Developer have entered into an Agreement
for Private Redevelopment dated as of 21st day of November, 2006 (the “Agreement”)
regarding certain real property located in the County legally described as follows:

Part of the Southwest Quarter of the Southwest Quarter of Section 13 and part of the
Northwest Quarter of the Northwest Quarter of Section 24, all in Township 80 North, Range 19
West of the 5th P.M., Jasper County, Iowa, described as:

Beginning at the Northwest corner of said Southwest Quarter of the Southwest Quarter of
Section 13; thence North 90°00’00” East, 667.16 feet along the North line of said Southwest
Quarter of the Southwest Quarter of Section 13; thence South 42°48’40” East, 837.64 feet;
thence South 47°11’20” West, 1705.05 feet to the West line of said Northwest Quarter of the
Northwest Quarter of Section 24; thence North 00°45’35” East, 460.65 feet along said West
line to the Southwest corner of said Southwest Quarter of the Southwest Quarter of Section
13; thence North 00°21’45” East, 1312.63 feet along the West line of said Southwest Quarter
of the Southwest Quarter of Section 13 to the point of beginning. Containing 29.92 acres
subject to highway.

(the “Development Property”); and

          WHEREAS, it is contemplated that pursuant to said Agreement, the Developer will undertake the
development of the Development Property, which is within the “Amended Jasper County Urban Renewal
Area”; and

-1-

 

          WHEREAS, pursuant to Section 403.6 of the Code of Iowa, as amended, the County and the
Developer desire to establish a minimum actual value for the land and improvements thereon to be
constructed by the Developer pursuant to the Agreement (defined therein as the “Minimum
Improvements”); and

          WHEREAS, the County and the Assessor have reviewed the preliminary plans and specifications
for the Minimum Improvements which it is contemplated will be erected.

          NOW, THEREFORE, the parties to this Minimum Assessment Agreement, in consideration of the
promises, covenants and agreements made by each other, do hereby agree as follows:

          1. Upon substantial completion of construction of the above-referenced Minimum Improvements,
but no later than January 1, 2008, the minimum actual taxable value which shall be fixed for
assessment purposes for the Development Property and the Minimum Improvements to be constructed
thereon shall be not less than $4,500,000 (the “Minimum Actual Value”) until termination of this
Minimum Assessment Agreement. The parties hereto expect that the construction of the
above-referenced Minimum Improvements will be substantially completed on or before March 31, 2007.

          Nothing herein shall be deemed to waive the rights of the Developer under Iowa Code Section
403.6(19) to contest that portion of any actual value assignment made by the Assessor in excess of
the Minimum Actual Value established herein. In no event, however, shall the Developer seek to
reduce the actual value assigned below the Minimum Actual Value established herein during the term
of this Agreement.

          2. The Minimum Actual Value herein established shall be of no further force and effect and
this Minimum Assessment Agreement shall terminate on June 30, 2015.

          3. This Minimum Assessment Agreement shall be promptly recorded by the Developer with the
Recorder of Jasper County, Iowa. The Developer shall pay all costs of recording.

          4. Neither the preambles nor provisions of this Minimum Assessment Agreement are intended
to, or shall be construed as, modifying the terms of the Agreement between the County and the
Developer.

          5. This Minimum Assessment Agreement shall inure to the benefit of and be binding upon the
successors and assigns of the parties.

-2-

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	JASPER COUNTY, IOWA	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	/s/ Max Worthington	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Chairperson	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Dennis Parrott
 

County Auditor
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	CENTRAL IOWA ENERGY, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	/s/ James Johnston	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Its:
	 	Chairman	 	 

-3-

 

	 	 	 	 	 
	STATE OF IOWA
	 	)	 	 
	 
	 	)	 	SS
	COUNTY OF JASPER
	 	)	 	 

          On this 21st day of November, 2006, before me a Notary Public in and for said
County, personally appeared Max Worthington and Dennis Parrott to me personally known, who being
duly sworn, did say that they are the Chairperson and County Auditor, respectively of Jasper
County, Iowa, a political subdivision, created and existing under the laws of the State of Iowa,
and that the seal affixed to the foregoing instrument is the seal of said political subdivision,
and that said instrument was signed and sealed on behalf of said political subdivision by authority
and resolution of its Board of Supervisors and said Chairperson and County Auditor acknowledged
said instrument to be the free act and deed of said political subdivision by it voluntarily
executed.

	 	 	 	 	 	 	 	 
	SEAL
	 	CONNIE L. RARIDON	 	 	 	/s/ Connie L. Raridon
	 
	 	Commission Number 190481	 	 	 	Notary Public in and for Jasper County, Iowa
	 
	 	My Commission Expires	 	 	 	 
	 
	 	6-03-09	 	 	 	 

	 	 	 	 	 
	STATE OF
Iowa
	 	)	 	 
	 
	 	)	 	SS
	COUNTY OF
Jasper
	 	)	 	 

          On this 20th day of November, 2006, before me the undersigned, a Notary Public
in and for said County, in said State, personally appeared Jim Johnston, to me personally known,
who, being by me duly sworn, did say that he is the Chairman of Central Iowa Energy, LLC, and that
said instrument was signed on behalf of said limited liability company; and that the said Jim
Johnston as such officer acknowledged the execution of said instrument to be the voluntary act and
deed of said company, by him voluntarily executed.

	 	 	 	 	 	 	 	 
	SEAL

	 	CONNIE L. RARIDON

Commission Number 190481

My Commission Expires

6-03-09
	 	 	 	/s/ Connie L. Raridon

Notary Public in and for said County and State

-4-

 

CERTIFICATION OF ASSESSOR

          The undersigned, having reviewed the plans and specifications for the Minimum Improvements to
be constructed and the market value assigned to the land upon which the Minimum Improvements are to
be constructed, and being of the opinion that the minimum market value contained in the foregoing
Minimum Assessment Agreement appears reasonable, hereby certifies as follows: The undersigned
Assessor, being legally responsible for the assessment of the property described in the foregoing
Minimum Assessment Agreement, upon completion of Minimum Improvements to be made on it and in
accordance with the Minimum Assessment Agreement, certifies that the actual value assigned to such
land and improvements upon completion shall not be less than $4,500,000 until termination of this
Minimum Assessment Agreement pursuant to the terms hereof.

	 	 	 	 	 
	 	 	 
	 	                                         /s/ John M. Deegan
 	 
	 	Jasper County Assessor for Jasper County, Iowa 	 
	 	 	 
	 
	 	11/21/06

Date

 	 
	 

	 	 	 	 	 
	STATE OF IOWA
	 	)	 	 
	 
	 	)	 	SS
	COUNTY OF JASPER
	 	)	 	 

          Subscribed
and sworn to before me by John M. Deegan, County Assessor for Jasper
County, Iowa.

	 	 	 	 	 	 	 	 	 
	 	 	/s/ Connie L. Raridon	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Notary Public in and for Jasper County, Iowa	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	11/21/06	 	 	 	 
	 	 	Date	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SEAL	 	CONNIE L. RARIDON	 	 	 	 
	 
	 	 	 	Commission Number 190481	 	 	 	 
	 
	 	 	 	My Commission Expires	 	 	 	 
	 
	 	 	 	6-03-09	 	 	 	 

-5-

 

CONSENT

          The undersigned, as holder of a Mortgage (as defined in the Agreement) on the Development
Property, hereby consents to the foregoing Minimum Actual Value and agrees to be bound by the terms
of this Minimum Assessment Agreement.

	 	 	 	 	 
	 	F & M Bank

 	 
	 	By:  	/s/ Daniel J. Hassman
 	 
	 	 	Its:      President 	 
	 	 	 	 
	 

	 	 	 	 	 
	STATE OF
Iowa
	 	)	 	 
	 
	 	)	 	SS
	COUNTY OF
Marshall
	 	)	 	 

          On this 20th day of November, 2006, before me the undersigned, a Notary
Public in and for said County, in said State, personally appeared Daniel J. Hassman, to me
personally known, who, being by me duly sworn, did say that he/she is the President of
F & M Bank, and that said instrument was signed on behalf of said Corporation; and
that said Daniel J. Hassman as such person acknowledged the execution of said instrument to
be the voluntary act and deed of himself/herself, by him/her voluntarily executed.

	 	 	 	 	 	 	 	 
	SEAL
	 	MARSHA GASKILL	 	 	 	/s/ Marsha Gaskill
	 
	 	Notarial Seal - Iowa	 	 	 	Notary Public in and for said County and State
	 
	 	Commission #154296	 	 	 	 
	 
	 	My
Commission Expires 12-14-07	 	 	 	 

-6-

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