Document:

exv10w3

 

Exhibit 10.3

[Handwritten: scan # 636]

CONSULTING AGREEMENT

     This Consulting Agreement (the “Agreement") is made this 19 day of
August , 2005 (the “Effective Date”), by and between BioEnergy Capital Consultants, LLC, a
South Dakota limited liability company, with an address of 44095 212th Street, Lake
Preston, South Dakota 57249 (“BioEnergy”), and Mitchell County Research Group, LLC, a Georgia
limited liability company, with an address of P.O. Box 107, Camilla, Mitchell County, Georgia 31730
(“Client”).

RECITALS:

	 	A.	 	Client intends to develop, finance and construct an ethanol plant in or near
[Handwritten: Camilla, GA] (the “Project”).
	 
	 	B.	 	BioEnergy has a background in the development of value-added agriculture
projects and is willing to provide services to Client based on this background.

	 	NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein,
Client engages BioEnergy, and BioEnergy accepts engagement, upon the terms and conditions
hereinafter set forth.

	 	1.	 	Term. BioEnergy’s engagement with Client shall commence as of the
Effective Date and shall continue at least through the first day after the Loan
Closing Date (as defined in section 3), unless properly terminated as provided herein.
BioEnergy may terminate this Agreement with or without cause upon fourteen (14) days
prior written notice to Client. Client may terminate BioEnergy’s services, with or
without “Cause” upon fourteen (14) days prior written notice to BioEnergy. For
purposes of this Agreement, “Cause” for termination by BioEnergy means the Client’s
failure to timely pay BioEnergy compensation pursuant to the terms of this Agreement.
For purposes of this Agreement, “Cause” for termination by Client means BioEnergy’s
gross negligence or intentional misconduct in the performance of its duties under this
Agreement, a known violation of the law, or a material breach of this Agreement by
BioEnergy.

	 	Upon termination, neither Client nor BioEnergy shall have any further rights or obligations
under the terms of this Agreement other than delivery of payments for services and/or bonus
payments to which BioEnergy may be entitled through the date of termination.

	 	2.	 	Services. BioEnergy shall serve as Client’s Project consultant.
BioEnergy’s service providers (described in section 7 of this Agreement) shall perform
the following duties incident to that service subject to Client’s approval:

 

 

	 	a.	 	Assist negotiations of contracts with various service and product
providers;

	 	b.	 	Assist the planning of the Clients’ equity marketing effort,
including, without limitation, preparation of written and visual equity
marketing materials (including, but not limited to, a power point
presentation), and training Client’s officers and directors to conduct Client’s
equity marketing effort;

	 	c.	 	Assist the securing of debt financing for the commencement of
construction of the Project;

	 	d.	 	Assist the education of local lenders including, without
limitation, the preparation of a “banker’s book” tailored to the
Project; and

	 	e.	 	Perform such other reasonably necessary duties as Client may
request for the timely and successful securing of debt financing and
commencement of construction of the Project, including without limitation,
cooperating with the Client’s personnel similarly engaged. Notwithstanding the
forgoing, neither BioEnergy, its members, managers, officers, employees, nor
agents shall itself or themselves be asked to, or actually, solicit an offer to
buy, or accept an offer to sell, any equity security to be issued by Client.

For purposes of this Agreement, the parties agree that the figures set forth in Schedule A to this
Agreement represent the equity goal and debt financing goal of Client for the Project. Client may
adjust the equity goal and debt financing goal downward upon notice to BioEnergy. Any increase in
the equity goal and debt financing goal is subject to the mutual written consent of both parties.

Subject to Client’s approval, BioEnergy shall determine the manner in which the services are to be
performed and the specific hours to be worked by BioEnergy. BioEnergy shall work as many hours as
are reasonably necessary to fulfill BioEnergy’s commitments under this Agreement.

	 	3.	Payment.

	 	a.	 	Client shall pay to BioEnergy a one-time commitment fee of
Fifty Thousand Dollars ($50,000.00) on the Effective Date.

	 	b.	 	Client shall pay to BioEnergy One Thousand Five Hundred Dollars
($1,500.00) per week as payment for services, during the period commencing upon
the Effective Date and continuing through the first date after Client’s equity
drive for the Project has been closed and the parties mutually agree that all
administrative details related thereto have been concluded (the “Equity Drive
Closing Date”), for each week or partial week that Paul Casper or other
BioEnergy personnel assist, through personal attendance in Camilla, Georgia and
the relevant surrounding 

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	 	 	 	communities with the preparation and facilitation of
equity drive meetings conducted in Camilla and the relevant surrounding
communities. The Equity Drive Closing Date shall be at least two full weeks
following the end of the week in which Client receives the subscription
agreement that achieves the equity goal necessary for the successful completion
of the Project, as set forth in Schedule A.

	 	c.	 	After the Equity Drive Closing Date and continuing through the
first date after Client closes a loan transaction to finance construction of
the Project (the “Loan Closing Date”), Client shall pay BioEnergy Three Hundred
Seventy Five Dollars ($375.00) per day for specifically identified services
rendered on certain days, not to exceed One Thousand Five Hundred Dollars
($1,500.00) per week (Sunday through Saturday). Payments shall be payable
within fourteen (14) days of Client’s receipt of a detailed invoice from
BioEnergy which outlines the services provided during the pay period. Upon
termination of this Agreement, payments under this subsection shall cease;
provided, however, that BioEnergy shall be entitled to payments for periods or
partial periods that occurred prior to the date of termination for which
BioEnergy has not been paid, and for any bonus payment or portion thereof due
to Client pursuant to subsection 3d of this Agreement.

	 	d.	 	Client shall pay to BioEnergy a one-time conditional bonus of
Six Hundred Fifty Thousand Dollars ($650,000.00) (the “Bonus”) on the Loan
Closing Date. In the event of an early termination of this Agreement, the
following shall apply with respect to the Bonus:

	 	(i)	 	If (a) Client terminates this Agreement for
Cause at any time, or (b) BioEnergy terminates this Agreement without
Cause at any time, Client shall pay to BioEnergy only those fees set
forth in Sections 3b and 3c above earned through the date of
termination plus that portion of the Bonus calculated by multiplying
the Bonus by a percentage equal to the percentage of the Equity Goal
that has been subscribed to as of the date of termination.

	 	(ii)	 	If (a) at any time, Client terminates this
Agreement without Cause, or (b) BioEnergy terminates this Agreement for
Cause, Client shall pay BioEnergy those fees set forth in Sections 3b
and 3c above earned through the date of termination and 100% of the
Bonus on the Loan Closing Date.

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Notwithstanding the foregoing, Client shall have sole discretion in determining whether to accept a
loan commitment or close a loan such that a Loan Closing Date would occur, and Client shall not
become liable to pay the Bonus, or any portion thereof, if it elects in good faith to not accept a
loan commitment or close a loan.

	4.	 	Expenses. Client shall reimburse BioEnergy for all reasonable, ordinary and necessary
expenses incurred by BioEnergy in performance of its duties hereunder, including without
limitation, reimbursement for automobile mileage at the rate periodically set by the Internal
Revenue Service. However, in no case shall any such expense reimbursements exceed two thousand
five hundred dollars ($2,500) in any single week without the prior written consent of the
Client.

	5.	 	Support Services. Client shall provide the following support services for the benefit
of BioEnergy, as approved by Client: office space, secretarial support, and office supplies.

	6.	 	Relationship of the Parties. The parties understand that BioEnergy is an independent
contractor with respect to Client, and not an employee of Client. Client will not provide
fringe benefits, including health insurance benefits, paid vacation, or any other employee
benefits for the benefit of BioEnergy

	7.	 	Service Providers. Paul Casper shall provide the majority of BioEnergy’ s services
under this Agreement. Paul Casper’s duties shall include assisting in the development of the
Project and the organization of investor meetings. Notwithstanding the foregoing, BioEnergy
may substitute its other personnel to provide BioEnergy’s services under this Agreement on a
limited basis as needed, with Client’s consent. BioEnergy’s employees, members, or agents who
perform services for Client under this Agreement shall be bound by the terms of this
Agreement.

	8.	 	Insurance. BioEnergy and Client shall each obtain, maintain and keep in full force
and effect during the term of this Agreement the following insurance coverages

	 	a.	Commercial general liability insurance with policy limits that have a combined
single limit of One Million Dollars ($1,000,000.00); and

	 	b.	Business automobile liability insurance, covering owned, non-owned and hired
vehicles with a combined single limit of One Million Dollars ($1,000,000.00).

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All insurance provided for in this section 8 shall be effective under valid and enforceable
policies issued by insurers of recognized responsibility, licensed to do business in states where
the respective parties currently conduct business. Each party shall name the other as an additional
insured with respect to each policy. Each party shall furnish the other with proof of the payment
of all premiums due on said policies of insurance and that the policies of insurance are in full
force and effect. Each policy or certificate of insurance shall contain an agreement by the insurer
that coverages shall not be cancelled for any reason without at least 30 days prior written notice
to the other party.

	9.	 	Indemnification. Client shall indemnify and defend BioEnergy and its employees,
members, managers, officers, and agents against expenses actually and reasonably incurred in
connection with the defense of any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative, arbitrative or investigative (a
“Proceeding”), in which BioEnergy and/or its employees, members, managers, officers or agents
are made a party by reason of performing services for Client or acting in any manner pursuant
to this Agreement, except that Client shall have no obligation to indemnify and defend
BioEnergy and/or its employees, members or agents for its and/or their act or omission that
involve gross negligence, intentional misconduct or a known violation of the law. BioEnergy
shall indemnify and defend Client and its employees, members, directors, officers and agents
against expenses actually and reasonably incurred in connection with the defense of any
Proceeding in which Client and/or its employees, members, directors, officers or agents are
made a party by reason of BioEnergy and/or its employees, members, managers, officers or
agents commit an act or omission that involves gross negligence, intentional misconduct or a
known violation of the law.
	 
	10.	 	Licenses. BioEnergy represents and warrants to Client that it has all licenses and
qualifications that it may be required to have by applicable law or any governmental entity in
order to perform the services hereunder.
	 
	11.	 	Taxes. Client shall be solely responsible for payment of all taxes and charges, now
or hereafter imposed (whether by federal, state, municipal or other public authority), by
reason of this Agreement or its performance, including but not limited to, sales or use taxes,
but excluding any income tax imposed upon the net profits of BioEnergy.
	 
	12.	 	Copyright License. BioEnergy will author written and visual equity marketing
materials, Power Point presentations, advertisements, “banker’s book”, training materials and
other literary works and audio visual works (the “Proprietary Information”) in fulfillment of
its duties hereunder. BioEnergy hereby grants Client a non-exclusive, perpetual right and
license, royalty free, to use the Proprietary Information for the development, financing and
construction of the Project only. Client shall not have or acquire any proprietary or other
right whatsoever in the Proprietary Information, except as provided herein, all of which
rights belong exclusively to BioEnergy. Client shall not use the Proprietary Information for
any purpose other than the development, financing and construction of the Project. Client
shall not without BioEnergy’s prior written consent use the Proprietary Information for the
development, financing and/or construction of additional ethanol plants. Client shall not
sell, assign, gift, sublicense or otherwise transfer to any third party any rights in the
Proprietary Information without the prior written consent of BioEnergy,

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	 	 	 	with the granting of
said consent to be in BioEnergy’s sole discretion.

	13.	 	Successors and Assigns. This Agreement shall be binding upon Client and BioEnergy,
their respective heirs, executors, administrators, successors in interest or assigns,
including without limitation any partnership, corporation or other entity into which Client
may be merged or by which it may be acquired (whether directly, indirectly or by operation of
law) or to which it may assign its rights under this Agreement. Notwithstanding the
foregoing, any assignment by BioEnergy of this Agreement or of any interest herein, or of any
money due to or to become due by reason of the terms hereof without the prior written consent
of Client shall be void, unless such assignment is made to Paul Casper or Jack Porter, or any
entity in which either Paul Casper, Jack Porter or BioEnergy own a majority ownership
interest.
	 
	14.	 	Waiver. The waiver by either party of its rights under this Agreement or the failure
of a party to promptly enforce any provision hereof shall not be construed as a waiver of any
subsequent breach of the same or any other covenant, term or provision.
	 
	15.	 	Notices. Any notice required to be given hereunder shall be in writing
and shall be deemed to be sufficiently served by either party on the other party if such
notice is delivered personally or is sent by certified or first class mail addressed as
follows, or such substitute street addresses as the parties may provide in writing:

	 	 	 	 	 
	 

	 	To BioEnergy:
	 	BioEnergy Capital Consultants, LLC
	 

	 	 	 	Attn: Paul Casper
	 

	 	 	 	44095 212th Street
	 

	 	 	 	Lake Preston, SD 57249
	 
	 	 	 	 
	 

	 	To Client:
	 	Mitchell County Research Group, LLC
	 

	 	 	 	P.O. Box 107
	 

	 	 	 	Mitchell County
	 

	 	 	 	Camilla, GA 31730

	16.	 	Applicable Law. This Agreement and all obligations created hereunder or
required to be created hereby shall be governed by and construed and enforced in accordance
with the laws of the State of Georgia, and the parties hereby consent to and agree that
jurisdiction and venue of any disputes relating to this Agreement shall be in a state or
federal court with proper jurisdiction in or nearest to Mitchell County, Georgia.
	 
	17.	 	Defaults. In the event of the failure of either of the parties to comply with any of
the terms and provisions of this Agreement, or in the event either party has violated any of
the warranties and representations made herein by that party, then such party shall be deemed
to be in default hereunder and the other party shall be given written notice of such
noncompliance and shall give the defaulting party seven (7) days from the date of such notice
within which to correct such noncompliance. If such default has not been corrected, or an
arrangement satisfactory to the complaining party has not been made by the end of the notice
period, then the complaining party may take whatever action is necessary, and exercise all
remedies available in order to protect the complaining party’s

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	 	 	rights under the terms and
conditions of this Agreement. The parties agree that the remedies set forth in this section 15
shall not be exclusive, but they shall be cumulative with all other rights and remedies
available, at law or in equity, to the parties. In the event of any dispute between the
parties resulting from this Agreement or any provisions hereunder, the prevailing party in any
such dispute shall be entitled to recover reasonable attorneys’ fees and such other costs
incurred therewith.

	18	 	Severability. In the event that any term, condition, or provision of this Agreement
is held to be invalid by any court of competent jurisdiction, such holding or holdings shall
not invalidate or make unenforceable any other term, condition or provision of this Agreement.
The remaining terms, conditions and provisions shall be fully severable, and shall be
construed and enforced as if such invalid term, condition or provision had never been inserted
in this Agreement initially.

	19.	 	Entire Agreement. This Agreement constitutes the entire Agreement between the parties
hereto with regard to the subject matter hereof, and there are no agreements, understandings,
specific restrictions, warranties or representations relating to said subject matter between
the parties other than those set forth herein or herein provided for. No amendment or
modification of this Agreement shall be valid or binding unless in writing and signed by the
party against whom such amendment or modification is to be enforced.

	20.	 	Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be considered an original document, but all of which shall be considered one and
the same agreement and shall become binding when one or more counterparts have been signed by
each of the parties.

(Signature Page Follows)

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the Effective Date.

	 	 	 	 	 	 	 
	 

	 	 	 	[Handwritten: Mitchell County Research Group]	 
	 

	 	BIOENERGY CAPITAL
	 	           (Company Name)        
	 
	 

	 	CONSULTANTS, LLC	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By /s/ Paul Casper
	 	 	By /s/ Illegible Signature	 
	 

	 	 
	 	 	 	 
	 

	 	Paul Casper, Member
	 	 	Its [Illegible]	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	And	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	John T. Porter, Member	 	 	 	 

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SCHEDULE A

	 	 	 	 	 
	Equity goal
	 	$	58,950,000.00	 
	 
	 	 	 	 
	Debt financing goal
	 	$	71,900,790.00	 
	 
	 	 	 	 
	Total project goal
	 	$	130,850,790.00	 

9exv10w4

 

Exhibit 10.4

OPTION TO PURCHASE REAL PROPERTY

     
Option given this 6th day of December,
2005, by Mitchell County
Development Authority, Optioner, to First United Ethanol, LLC, a Georgia limited liability
company, Optionee.

SECTION 1

Grant of Option

     Optioner,
in consideration of $5,000 paid by Optionee to Optioner, receipt of which is
acknowledged by Optioner, grants to Optionee the exclusive right and option to purchase, on the
following terms and conditions, any portion of, or all of, that real property known as “Pinecrest
Farm” in Land Lots 290, 310, and 311 in the 10th  Land District of Mitchell
County, Georgia, described as follows:

A tract of land known as “Pinecrest
 Farm”, and being an aggregate four separate tracts, more
particularly described as follows:

Tract 1. 57.745 acres of land,
 more or less, on Lot 290 in the 10th Land District of
Mitchell County, Georgia, being all of a tract of 93.12 acres in said lot and district acquired by
Robert Culpepper, Jr. under foreclosure deed from James Jordan and Ethalee Jordan, recorded in the
Land Records of Mitchell County, Georgia, in Deed Book 91, page 247 and 248, EXCEPT two tracts -
one of 22 acres conveyed by Robert Culpepper; Jr. to Ross Edwin Nesmith, and the other a tract of
13.375 acres conveyed by Robert Culpepper, Jr. On July 30, 1980, to his six children, the tract of
57.745 being shown as Tract Two in deed from Robert Culpepper, Jr. to his six children, dated
December 20, 1980, and recorded in the Land Records of Mitchell County, Georgia in Deed Book 236,
page 466, 467, and 468, and such deed and description of Tract Two therein is by reference
expressly made a part of this description. The 57.745 acres herein described being bounded on
north partly by lands sold to Ross Edwin Nesmith and partly by land sold to Cagle’s on the east
partly by lands of Busy Hicks, partly by lands of Surprise Maples, or his successors in title, and
partly by lands sold to Cagle’s on the west by lands of Robert Culpepper, Jr. separated by road
running north and south, and on the south by dirt road running east and west.

Tract 2 25.4 acres of land in Lot 310 in the 10th Land District of
Mitchell County, Georgia known as Gabe Cooper Place, bounded on north by county dirt road, on the
east by right-of-way of Seaboard Coastline Railroad Company, on the west by dirt road and lands
now or formerly of C. D. May and Fowler Estate, on the south by lands now or formerly owned by Joe
Gooden, being the same lands conveyed by Robert Culpepper, Jr. to Helen C. Stacey, et al. In deed
dated May 7, 1979, and recorded in the Land Records of Mitchell County, Georgia, in Deed Book 215,
page 644, and by reference made a part hereof.

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Tract 3. 35.115 acres of land
in Lot 311 in the 10th
 Land district of Mitchell
County, Georgia, being bounded on north by lands of Mitchell County, Georgia, used as landfill, on
the east right-of-way of Seaboard Coastline Railroad, on south by dirt road running east and west,
and west by county dirt road running north and south and separating this tract from land now or
formerly owned by Fowler Estate. This was originally a 56.25-acre tract, from which 20 acres were
sold to the County on the north, and by 1.135 acres was conveyed to the County on the west for road
purposes.

Tract 4 149.19 acres of land,
more or less, in Lot 311 in the 10th
 Land District
of Mitchell County, Georgia, more particularly described in deed from United States of America for
Farmers Home Administration, dated April 6, 1954 and recorded in Office of the Clerk of the
Superior Court of Mitchell County, Georgia in Deed Book 100, page 176 and 177, the description
therein being by referenced made a part hereof. Bounded on north by Nesmith lands, west by SCL
Railroad right-of-way, on south by public road, and on east by Tract 1, above and the 22 acres
tract sold to Ross Nesmith.

The above four tracts constituting
one body of land being 268 acres, more or less.

Said property being a portion of the
 property awarded to Emaly C. Conerly, Robert Culpepper, III,
India C. Dennis, and James F. Culpepper in Civil. Action No. 99-V-121 in the Superior Court of
Mitchell County, Georgia. A copy of said Order being recorded at Deed Book 748, page 283 in the
office of the Clerk of Superior Court of Mitchell County, Georgia.

SECTION 2

Option Period

     The
term of this option shall be three hundred (300) days,
commencing on December 6, 2005, and
continuing until 5:00 P. M. on October 2, 2006.

SECTION 3

Purchase Price of Property

     The
 full purchase price of the property is (a) if the Optionee elects to purchase less than
the entirety of the property described above, the greater of $7,500.00 per acre or the sum
necessary to pay in full that certain note from Optioner to Flint River National Bank, dated June
3, 2005, in the original principal amount of $570, 263.50, which note is secured by the above
described property; or (b) if the Optionee elects to purchase the entirety of the property
described above, $1,000,000.00. In either event, the purchase price shall be payable as provided in
this agreement if optionee elects to exercise this option.

SECTION 4

Application of Consideration to Purchase Price

     If Optionee
 purchases the property described in this option, and under the terms and
conditions of this agreement the consideration paid for this option shall be applied to the
purchase price.

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SECTION 5

Exercise of Option

     Optionee may
 exercise this option by giving Optioner written notice, signed by Optionee,
before the time set for expiration. Within 30 days after receipt of such notice, Optioner shall
deliver to Optionee, against payment of the purchase price, a warranty deed to the property.
Tender of a bank certified or cashier’s check for the purchase price, less any amount already paid
by Optionee and to be credited to Optionee, shall constitute a sufficient tender.

SECTION 6

Title

Title
to the property shall be conveyed free and clear of all encumbrances except the
following:

	(1)	 	All easements whether visible or not, in writing or not, encroachments, measurements,
party walls or any other facts which a correct survey of the property described herein
would disclose.
	 
	(2)	 	Rights of tenants in possession, if any.
	 
	(3)	 	Any action by any municipal, county or other governmental entity or agency (heretofore
or hereafter taken) for the purpose of regulating the use, occupancy or zoning of the
property described above, or any building, structure or improvement thereon.
	 
	(4)	 	The exact location of boundary lines, possible encroachments and other facts which
would be disclosed by an accurate survey and inspection of the property; possible liens of
architects, laborers, materialmen for improvement of the property, not filed of record at
the effective date of this Certificate of title; and rights, if any, of persons who may be
in possession under claims not appearing of record.
	 
	(5)	 	Title to that portion of the above described property embraced within the bounds of
roads, highways, easements and rights-of way.
	 
	(6)	 	Matters of record subsequent to the date of this Certificate of Title.
	 
	(7)	 	The rights of others in and to any stream running though the property or along any of
the property lines.
	 
	(8)	 	Any violation of consumer credit protection, truth-in-lending, or similar laws, and the
Real Estate Settlement Procedures Act of 1974, as amended.
	 
	(9)	 	Any bankruptcy proceedings or any orders of any court arising from said proceedings
directly or indirectly effecting said property.
	 
	(10)	 	Any and all effects of the proximity of the above described property to a tract
identified by the Georgia Environmental Protection Division as a Hazardous Site
	 
	(11)	 	Other Liens and encumbrances: (a) Right of way easement for road purposes to Mitchell
County, Georgia, dated September 23, 1981 and recorded at Deed Book 229, Page 301 in the
office of the Clerk of the Superior Court of Mitchell County, Georgia; (b) Right of way
easement for utility purposes to Georgia Power Company, dated December 19, 1967 and
recorded at Deed Book 147, Page 202 in the office of the Clerk of the Superior Court of
Mitchell County, Georgia; (c) Right of way easement for utility purposes to Georgia Power
Company, dated December 29, 1955 and recorded at Deed Book 105, Page 295 in the office of

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	 	 	the Clerk of the Superior Court of Mitchell County, Georgia; (d) Right of way
easement for utility purposes to Georgia Power Company, dated December 29, 1955 and
recorded at Deed Book 105, Page 296 in the office of the Clerk of the Superior Court of
Mitchell County, Georgia; (e) Right of way grant for utility pipeline to South Georgia
Natural Gas Company, dated March 16, 1955 and recorded at Deed Book 101, Page 368 in the
office of the Clerk of the Superior Court of Mitchell County, Georgia; (f) Right of way
grant for utility pipeline to South Georgia Natural Gas Company, dated May 18, 1955 and
recorded at Deed Book 101, Page 472 in the office of the Clerk of the Superior Court of
Mitchell County, Georgia.
	 
	 	 	Any ad valorum taxes on the property, whether a lien or not, assessed or to be
assessed for the year in which this transaction is finally consummated shall be paid by the
Optionee.

     If at
any time before the consummation of the purchase and sale under this option it appears
from laws, regulations, and/or ordinances, either national, state, or local, or for any other
reason, that Optionee is unable to obtain necessary consents and permits to construct, install,
and maintain buildings, driveways, approaches, and equipment in accordance with optionee’s plans
and to operate and carry on its business on or at the property, or that the property cannot for
any reason be used for Optionee’s business, then Optionee may terminate this option and be under
no obligation to complete the purchase.

SECTION 7

Failure to Exercise Option

     If Optionee
 does not exercise this option in accordance with its terms and within the option
period, this option and the rights of Optionee shall automatically and immediately terminate
without notice. In the event Optionee fails to exercise this option, Optioner shall retain the sum
paid as consideration for this option.

SECTION 8

Notices

     All notices
provided for in this agreement shall be deemed to have been duly given if and
when deposited in the United States mail with proper and sufficient postage affixed, properly
addressed with regard to the party for whom intended at the party’s address listed below, or when
delivered personally to such party:

As
to Optioner:   Mitchell County
Development Authority 

C/o Marilyn Royal

P. O. Box 692

Camilla, GA 31730

As
to Optionee:  First United
Ethanol, LLC

Murray Campbell

P. O. Box 386

Camilla, GA 31730

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Section 9

Road Access, Water, and Sewer

     
This option is granted by optioner and obtained by optionee with the understanding that the
property will have paved road access, and water and sewer services.

Section 10

Time Essence

      Time is of the essence of this
option.

Section 11

Binding Effect

     This
option shall be binding upon and inure to the benefit of the parties to it, and
respective heirs, successors, or assigns.

     In
witness, the parties have caused their duly authorized agent to set their hands and seals
on behalf of their respective principals, at Camilla, Georgia, the day and year first above
written.

	 	 	 	 	 	 	 
	Signed, sealed and delivered	 	 	 	 
	        
  in the presence of:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Jimmy Daivs
	 	(LS)
	 

	 	 	 	 

	 
	 

	 	 	 	Jimmy Davis, Vice Chairman	 	 
	/s/ Illegible Signature	 	Mitchell County Development Authority
	
 

	 	 
	 	 	 	 
	Witness	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Illegible Signature	 	 	 	 
	
 

	 	 
	 	 	 	 
	Notary Public	 	 	 	 
	[Stamped: Notary Public, Mitchell County, Georgia	 	 
	My
 Commission Expires July 8, 2008.]
	 	 
	 
	 	 	 	 	 	 
	Signed, sealed and delivered

in the presence of:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Murray Campbell
	 	(LS)
	 

	 	 	 	 

	 
	 	 	 	 	Murray Campbell, President
	/s/ Illegible Signature	 	First United Ethanol, LLC
	
 

	 	 
	 	 	 	 
	Witness	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Marla C. Miner	 	 	 	 
	Notary Public	 	 	 	 
	[Stamped: Notary Public, Mitchell County Georgia	 	 
	My
 commission expires July 11, 2006.]
	 	 

5

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