Document:

Exhibit 10.2  

BIO-DIESEL MARKETING CONTRACT

THIS AGREEMENT is entered into by and among
Eco-Energy, Inc. (hereinafter “Eco”) a Tennessee Corporation with its main
office located at 730 Cool Springs Blvd, Suite 130, Franklin, Tennessee 37067,
and Soy Energy, (hereinafter SOY ENERGY) located with its main office at 222 N.
Main Street, Marcus, Iowa 51035.

RECITALS:

	
 

	
 

	
A.

	
SOY ENERGY, who is developing a
 bio-diesel plant facility producing approximately 30 million gallons per year
 of bio-diesel located in Marcus, Iowa that desires to establish an
 output-marketing contract.

	
 

	
 

	
B.

	
Eco is a reseller in bio-diesel
 and is experienced in the marketing and transportation of such bio-diesel,
 and is willing to agree to purchase the entire bio-diesel output of the
 plant.

	
 

	
 

	
NOW,
 THEREFORE, IT IS AGREED AS FOLLOWS BETWEEN THE PARTIES:

	
 

	
1.

	
Eco Services. Eco shall, during the term hereof, purchase
 the entire output of bio-diesel and to provide certain transportation
 services to SOY ENERGY (the “Eco Program”). The Eco services to be provided
 are set forth in Sections 2 and 3 and the exhibits attached hereto which are
 referred to therein.

	
 

	
 

	
2.

	
Eco Take or
 Pay Bio-diesel Purchases. SOY ENERGY agrees to sell to Eco, and Eco
 agrees to purchase from SOY ENERGY 100% of the production of bio-diesel
 during the term of the contract. Each potential Eco purchase will be
 presented to the SOY ENERGY representative by Eco for verbal approval. Upon
 such verbal approval and purchase, a confirmation of the purchase contract
 will be submitted to SOY ENERGY, by Eco, encompassing the details of each
 purchase.

	
 

	
 

	
 

	
Soy Energy agrees under the
 marketing contract to sell all of its biodiesel to Eco. Consequently, all of
 Soy Energy’s revenue will come from sales made from Eco. The company will
 have the right to consent to all purchases by Eco from Soy Energy of its
 biodiesel including terms relating to price, pick up schedule, volume and
 shipping instructions.

	
 

	
 

	
3.

	
Eco
 Transportation Services. Eco agrees to provide the transportation services set forth in Exhibit
 B.

	
 

	
 

	
4.

	
Fees. SOY
 ENERGY shall pay a fee for Eco services and materials provided hereunder of
 1.0% of the net purchase price per net gallon of bio-diesel purchased by Eco
 during the term of the contract. Such fees shall be payable monthly on actual
 gallons shipped from the prior month. Payment from SOY ENERGY shall be
 subtracted from Eco’s first weekly wire payment of the following month for
 bio-diesel purchases. 

	
 

	
 

	
5.

	
SOY ENERGY
 Representative. SOY
 ENERGY shall designate one or more persons who shall be authorized and
 directed to receive services hereunder and to make all merchandising,
 purchasing and sales decisions for SOY
 ENERGY. All directions, transactions and authorizations given by such
 representative to Eco shall be binding upon SOY
 ENERGY. Eco shall be entitled to rely on the authorization of such
 persons until it receives written notification from SOY ENERGY that such authorization has been revoked. The terms of such purchase
orders shall be
 consistent with the provisions of Exhibit A and may include, but shall not
 necessarily be limited to, price, volume, delivery schedule, and shipping
 instructions.

	
 

	
 

	 
	
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6.

	
Eco Limitations.

	
 

	
 

	
 

	
 

	
(a)

	
Eco assumes no responsibility for the completion or
 performance of any contracts between SOY ENERGY and SOY ENERGY’s customers
 and suppliers, and SOY ENERGY agrees they shall not bring any action or make
 any claim against Eco based on any act, omission or claim of any of SOY
 ENERGY’s customers or suppliers.

	
 

	
 

	
 

	
 

	
(b)

	
SOY ENERGY is
 responsible to cover all non-deliveries of any product that is contracted
 between Eco and SOY ENERGY in a
 timely manner in order to stay within the time parameters of the contract.
 Eco will assist in procuring product from other suppliers to cover these
 non-deliveries. 

	
 

	
 

	
 

	
 

	
(c)

	
If any party terminates this agreement for any
 reason, both parties will be responsible to complete any existing contracts.

	
 

	
 

	
 

	
7.

	
Separability and Non-liability.
 The services, contracts and relationships between SOY ENERGY and Eco are independent and separable.

	
 

	
 

	
8.

	
Confidentiality Agreement.
 The parties agree, to the extent permitted by law, to preserve and protect
 the confidentiality of the Agreement. Both parties recognize that federal or
 state law may require the filing of the Agreement with, or the furnishing of
 information to, governmental authorities or regulatory agencies. Both parties
 further recognize the need, from time to time, for the submission of the
 Agreement to affiliates, consultants, or contractors performing work on, or
 related to, the subject matter of the Agreement. Buyer and Seller agree to
 allow the submission of the Agreement to affiliates, consultants, or
 contractors if such affiliates, consultants, or contractors agree to protect
 the confidentiality of the Agreement. In the event either party is of the
 opinion that applicable law requires it to file the Agreement with, or to
 disclose information related to the Agreement (other than information
 required by laws and regulations in effect as of the date hereof to be
 furnished in periodic reports to governmental authorities) to, any judicial
 body, governmental authority or regulatory agency, that party shall so notify
 the other party in writing prior to the disclosure or filing of the
 Agreement.

	
 

	
 

	
9.

	
Public Disclosure.
 Any public announcements concerning the transaction contemplated by this
 letter shall be approved in advance by Eco and SOY ENERGY, except for disclosures required by law, in which
 case the disclosing party shall provide a copy of the disclosure to the other
 party prior to its public release.

	
 

	
 

	
10.

	
Solicitation.
 SOY ENERGY agrees not to contact or interfere with, solicit, disrupt or
 attempt to disrupt relationships, contractual or otherwise, between Eco and
 any of its’ customers, employees or vendors.

	
 

	
 

	
11.

	
Terms and Termination.

	
 

	
 

	
 

	
 

	
(a)

	
The initial term of this Agreement shall commence on
 the first day of bio-diesel production and shall continue for three years. This contract will automatically renew
 for an additional term of three years unless SOY ENERGY gives written notice
 at least four (4) months prior to the end of the initial term.

	
 

	
 

	
 

	
 

	
(b)

	
This agreement may be terminated by SOY ENERGY as to Eco in the event of
 material breach of any of the material terms hereof by such other party, by
 written notice specifying the breach, which notice shall be effective fifteen
 (15) days after it is given unless the receiving party cures the breach
 within such time. This agreement may be

	
 

	
 

	
 

	 
	
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 terminated
 by Eco as to SOY ENERGY in the
 event of material breach of any of the material terms hereof by SOY ENERGY, by written notice specifying
 the breach, which notice shall be effective fifteen (15) days after it is
 given unless the receiving party cures the breach within such time. Any
 material breach by SOY ENERGY as to Eco or by Eco as to SOY ENERGY that
 cannot be resolved within 15 days, both parties may mutually agree in writing
 to the length of time needed to resolve the material breach. 

	
 

	
 

	
 

	
 

	
(c)

	
This Agreement may also be terminated between either
 party by the mutual consent of both parties on such terms as the parties may
 agree.

	
 

	
 

	
 

	
 

	
(d)

	
In addition to any other method of terminating this
 Agreement, either party may unilaterally terminate this Agreement at any time
 if such termination shall be required by any regulatory authority, and such
 termination shall be effective on the 30th day following the
 giving of notice of intent to terminate.

	
 

	
 

	
 

	
12.

	
Licenses, Bonds, and Insurance.
 Each party represents that it now has and will maintain in full force and
 effect during the term of this Agreement, at its sole cost, all necessary
 state and federal licenses, bonds and insurance in accordance with applicable
 state or federal laws and regulations.

	
 

	
 

	
13.

	
Limitation of Liability.
 EACH PARTY UNDERSTANDS THAT NO OTHER PARTY MAKES ANY GUARANTEE, EXPRESS OR
 IMPLIED, TO ANY OTHER OF PROFIT, OR OF ANY PARTICULAR ECONOMIC RESULTS FROM
 TRANSACTIONS HEREUNDER. IN NO EVENT SHALL ANY PARTY BE LIABLE FOR SPECIAL,
 COLLATERAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES FOR ANY ACT OR OMISSION
 COMING WITHIN THE SCOPE OF THIS AGREEMENT, OR FOR BREACH OF ANY OF THE
 PROVISIONS OF THIS AGREEMENT, EVEN IF IT HAS BEEN ADVISED OF THE POSSIBILITY
 OF SUCH DAMAGES. SUCH EXCLUDED DAMAGES INCLUDE, BUT ARE NOT LIMITED TO, LOSS
 OF GOOD WILL, LOSS OF PROFITS, LOSS OF USE AND INTERRUPTION OF BUSINESS.

	
 

	
 

	
 

	
EXCEPT AS SPECIFICALLY STATED IN
 THIS AGREEMENT, SOY ENERGY MAKES NO WARRENTY OR REPRESENTATION, EXPRESS OR
 IMPLIED, INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR
 FITNESS FOR A PARTICULAR PURPOSE.

	
 

	
 

	
14.

	
Disclaimer. SOY ENERGY understands and agrees that
 Eco makes no warranty respecting legal or regulatory requirements and risks. SOY ENERGY shall obtain such legal and
 regulatory advice from third parties as it may deem necessary respecting the
 applicability of legal and regulatory requirements applicable to SOY ENERGY business.

	
 

	
 

	
15.

	
Indemnity. The
 Parties agree that they shall absolve, release and refrain from seeking
 remedies against each other and their officers, agents, employees,
 subcontractors and insurers for any and all losses, claims, damages, costs,
 suits and liabilities for damage, deterioration of quality, shrinkage in
 quantity, loss of grade or loss of Bio-diesel resulting from the inherent
 nature of transfer operations and the inherent nature of Bio-diesel provided
 that this in no way shall relieve the parties for their own negligence,
 willful misconduct or theft. Each party to this contract shall indemnify,
 defend and hold the other harmless from claims, demands and causes of action
 asserted against the other by any person (including without limitation
 employees of either party) for personal injury or death, or for loss of or damage to property resulting from the willful or
 negligent acts or omissions of the indemnifying party. Where personal injury,
 death or loss of

	
 

	
 

	 
	
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 or damage to property is the result of the joint negligence
 or misconduct or the Parties hereto, the Parties expressly agree to indemnify
 each other in proportion to their respective share of such joint negligence
 or misconduct.

	
 

	
 

	
16.

	
Nature of
 Relationship. Eco is an independent contractor providing
 services to SOY ENERGY. No employment relationship, partnership or
 joint venture is intended, nor shall any such relationship be deemed created
 hereby. Each party shall be solely and exclusively responsible for its own
 expenses and costs of performance.

	
 

	
 

	
17.

	
Notices. Any notices permitted or required hereunder
 shall be in writing, signed by an officer duly authorized of the party giving
 such notice, and shall either be hand delivered or mailed. If mailed, notice
 shall be sent by certified, first class, return receipt requested, mail to
 the address shown above, or any other address subsequently specified by
 notice from one party to the other.

	
 

	
 

	
18.

	
Compliance
 With Governmental Controls. To the extent applicable, the parties agree to
 comply with all laws, ordinances, rules, codes, regulations and lawful orders
 of any federal, state or local government authority applicable to the
 performance of the Agreement, including, without limitation, those pertaining
 to the environment, safety, health, social security, old age pension, wage
 hour laws, unemployment compensation, non-discrimination on the basis of
 race, religion, color, sex or national origin and affirmative action. 

	
 

	
 

	
19.

	
New Or Changed
 Regulations. The parties enter the Agreement in reliance
 upon the laws, rules, regulations, interpretations, decrees, agreements, and
 concessions of, and arrangements (hereafter called “Regulations”) with
 governments or governmental instrumentalities in effect on the date of the
 Agreement with respect to or directly or indirectly affecting the bio-diesel
 to be delivered, including without limitation, production, gathering,
 manufacturing, transportation, sale and delivery thereof insofar as said
 Regulations affect Eco and their customers. In the event that at any time
 subsequent to the date of the Agreement, any of said Regulations are changed
 or new Regulations are promulgated whether by law, decree, interpretation or
 regulation, or by response to the insistence or request of any governmental
 authority or person purporting to act therefore, and the effect of such
 changed or new Regulation (a) is or will not be covered by any other
 provisions of the Agreement, or (b) has or will have an adverse economic
 effect upon the parties to this Agreement or the suppliers or customers of
 said parties, the parties shall have the option to request renegotiation of
 the prices and other pertinent terms provided for in the Agreement and their
 respective effective dates. Said option may be exercised by either party at
 any time after such changed or new Regulation is promulgated by giving notice
 of the exercise of its option to renegotiate prior to the time of delivery of
 bio-diesel or any part thereof. Such notice shall contain the new prices and
 terms desired by agreement of Eco and SOY ENERGY. If the parties
 do not agree upon new prices and terms satisfactory to both parties within
 ten (10) days after such notice is given, Eco shall have the right to
 terminate the Agreement at the end of said ten (10) day period.

	
 

	
 

	
20.

	
General.

	
 

	
 

	
 

	
 

	
 

	
(a)

	
This agreement is the entire
 understanding of the parties concerning the subject matter hereof, and it may
 be modified only in writing signed by the parties. 

	
 

	
 

	
 

	 
	
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(b)

	
If any provision or provisions
 of this agreement shall be held to be invalid, illegal or unenforceable, the
 validity, legality and enforceability of the remaining provisions shall not
 in any way be affected or impaired thereby.

	
 

	
 

	
 

	
 

	
(c)

	
No party shall be liable for
 any failure to perform any or all of the provisions of this agreement if and
 to the extent that performance has been delayed or prevented by reason of any
 cause beyond the reasonable control of such party. The expression “cause
 beyond the reasonable control” shall be deemed to include, but not be limited
 to: acts, regulations, laws, or restraints imposed by any governmental body;
 wars, hostilities, sabotage, riots, or commotions; acts of God; or fires,
 frost, storms, or lightning.

	
 

	
 

	
 

	
 

	
(d)

	
This agreement is not intended
 to, and does not, create or give rise to any fiduciary duty on the part of
 any party to any other.

	
 

	
 

	
 

	
 

	
(e)

	
No action, regardless of its
 nature or form, arising from or in relation to this Agreement may be brought
 by either party more than two (2) years after the cause of action has arisen,
 or, in the case of an action for nonpayment, more than two (2) years from the
 date the last payment was due. Venue for any action arising from or in
 relation to this agreement shall be in Marcus, Iowa.

	
 

	
 

	
 

	
 

	
(f)

	
This agreement is governed by and
 shall be construed under the laws of the State of Iowa.

	
 

	
 

	
 

	
 

	
(g)

	
This Agreement shall be binding upon and inure to
 the benefit of the parties and their respective successors and permitted
 assigns. This Agreement shall not be assignable by either party, without the
 express written consent of the other party, except that ECO may assign its
 rights and duties under this Agreement in connection with the sale, merger,
 exchange or acquisition of all or substantially all of the assets or stock of
 ECO and ECO may assign its rights and duties under this Agreement to another
 company controlling, or controlled by, or under common control with ECO, all
 without having to obtain the express written consent of the other party.

	
 

	
 

	
 

	
 

	
(h)

	
This agreement shall be binding
 upon SOY ENERGY and this above referenced plant in the event
 that the name, SOY ENERGY is later changed to any name in the
 alternative. A change in name does not void, nor make this contract voidable.
 

DATED AND EXECUTED AS OF THIS
29th DAY OF AUGUST, 2006

Soy Energy

	
 

	
 

	
BY:

	
/s/ Charles Sand, Chairman

	
 

	

	
Eco-Energy Inc.

	
 

	
BY:

	
/s/ Jaime D. Dachelet

	
 

	

	 
	
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EXHIBIT A

Bio-diesel

Eco shall purchase 100% of the
production of bio-diesel of SOY ENERGY plant on the following terms:

	
 

	
 

	
1.

	
Eco will pay Friday of each
 week for the shipments made by Sunday of the previous week upon receipt of
 Invoice, Bill of Lading, Return Bill of Lading, and Certificate of Analysis. All
 paperwork for the previous week’s shipments must be received by 12:00 noon
 Sunday. 

	
 

	
 

	
2.

	
SOY ENERGY is responsible for any and all of their local,
 state and federal tax liabilities.

	
 

	
 

	
3.

	
Eco will provide scheduling
 and marketing for bio-diesel produced.

	
 

	
 

	
4.

	
Eco will be responsible for
 receivables risk on bio-diesel.

	
 

	
 

	
5.

	
Eco reserves the right to
 refuse business to anyone due to credit and market risk.

	
 

	
 

	
6.

	
SOY ENERGY shall meet or exceed all specifications for
 ASTM D6751 fuel bio-diesel as well as any changes in fuel bio-diesel industry
 standards that might occur after the execution of this agreement. 

	
 

	
 

	
7.

	
SOY ENERGY will keep Eco informed on production
 forecasts, as well as daily plant inventory balances.

	
 

	
 

	
8.

	
On all truck and rail
 shipments title and risk of loss of the bio-diesel will pass at the loading
 flange between the plant and the truck or railcar. Unless otherwise specified
 Eco is purchasing all bio-diesel on a FOB plant basis.

	
 

	
 

	
9.

	
SOY ENERGY will provide a minimum of 10 days storage on
 the SOY ENERGY site.

	
 

	
 

	
10.

	
Eco shall deduct all
 unavoidable costs such as government tariffs or assessment fees, sales taxes,
 import/export handling fees, assessments, inspection fees, or any other that
 has been approved by the appropriate member of the board of directors.

	
 

	 
	 
	 
	 
	
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EXHIBIT B

Eco Transportation Services

	
 

	
 

	
1.

	
Eco and SOY ENERGY will
 mutually agree as to the number of railcars needed and their respective lease
 rates. The leases of such railcars shall be in the name of Eco. 

	
 

	
 

	
2.

	
All lease charges will be
 passed through from Eco to SOY ENERGY upon receipt of invoice from the leasing
 company. 

	
 

	
 

	
3.

	
Upon SOY ENERGY’s receipt of
 invoice from Eco the amount of the invoice will be subtracted from Eco’s next
 Friday’s payment to SOY ENERGY for Bio-diesel purchases unless otherwise
 communicated by SOY ENERGY that the amount of the invoice will be remitted by
 wire transfer within five (5) business days from invoice date. 

	
 

	
 

	
4.

	
If this agreement is cancelled
 for any reason, SOY ENERGY will be responsible to take over all rail
 leases.

	
 

	
 

	
5.

	
Eco and SOY ENERGY will
 mutually negotiate with the rail lines on the SOY ENERGY rail rates. 

	
 

	
 

	
6.

	
All rail contracts will be in
 the name of SOY ENERGY, or any
 name later chosen in the alternative.

	
 

	
 

	
7.

	
SOY ENERGY will
 invoice Eco for rail freight along with a copy of the actual railroad
 invoice. (This amount will be paid the following Friday upon receipt of
 invoice.)

	
 

	
 

	
8.

	
Eco will purchase all truck
 and railcar gallons on an FOB plant basis.

	
 

	
 

	
9.

	
Eco will supply trucks needed to transport
 contracted truck volume for SOY ENERGY.

	
 

	
 

	 
	 
	 
	 
	
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 JDDExhibit 10.3  

MASTER CONTRACT 

BY AND BETWEEN 

Soy Energy, LLC 

AND THE 

IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT 

CONTRACT NUMBER: P0609M01093 

TABLE OF CONTENTS

	
 

	
 

	
 

	
 

	
ARTICLE 1. MASTER CONTRACT
  DURATION; FUNDING AGREEMENT DURATION

	
 

	
 

	
 

	
 

	
ARTICLE 2. FUNDING

	
 

	
Article
  2.1

	
 

	
Funding
  Sources

	
 

	
Article
  2.2

	
 

	
Reduction,
  Discontinuance or Alteration of Funding

	
 

	
 

	
 

	
 

	
ARTICLE 3. CONTRACT
  STRUCTURE AND DEFINITIONS; DOCUMENTS INCORPORATED BY REFERENCE; ORDER OF
  PRIORITY

	
 

	
Article
  3.1

	
 

	
Contract
  Structure and Definitions

	
 

	
Article
  3.2

	
 

	
Documents
  Incorporated by Reference

	
 

	
Article
  3.3

	
 

	
Business’s
  Financial Assistance Application on File

	
 

	
Article
  3.4

	
 

	
Order of
  Priority

	
 

	
 

	
 

	
 

	
ARTICLE 4. AWARD

	
 

	
Article
  4.1

	
 

	
Description
  of the Project and Award Budget

	
 

	
Article
  4.2

	
 

	
Job
  Obligations

	
 

	
Article
  4.3

	
 

	
Repayment
  Obligation

	
 

	
 

	
 

	
 

	
ARTICLE 5. CONDITIONS TO
  DISBURSEMENT OF FUNDS; DISBURSEMENT TERMS

	
 

	
Article
  5.1

	
 

	
Documents
  Submitted

	
 

	
Article
  5.2

	
 

	
Prior
  Costs

	
 

	
Article
  5.3

	
 

	
Cost
  Variation

	
 

	
Article
  5.4

	
 

	
Suspension
  of Disbursement

	
 

	
Article
  5.5

	
 

	
Investment
  of Award Proceeds

	
 

	
 

	
 

	
 

	
ARTICLE 6. SECURITY;
  CROSS-COLLATERALIZATION

	
 

	
Article
  6.1

	
 

	
Secured
  Property

	
 

	
Article
  6.2

	
 

	
Value of
  Collateral

	
 

	
Article
  6.3

	
 

	
Additional
  or Substitute Collateral

	
 

	
 

	
 

	
 

	
ARTICLE 7. REPRESENTATIONS
  AND WARRANTIES

	
 

	
Article
  7.1

	
 

	
Organization
  and Qualifications

	
 

	
Article
  7.2

	
 

	
Authority
  and Validity of Obligations

	
 

	
Article
  7.3

	
 

	
Use of
  Proceeds

	
 

	
Article
  7.4

	
 

	
Subsidiaries

	
 

	
Article
  7.5

	
 

	
Financial
  Reports

	
 

	
Article
  7.6

	
 

	
No
  Material Adverse Change

	
 

	
Article
  7.7

	
 

	
Full
  Disclosure; Business’s Financial Assistance Application

	
 

	
Article
  7.8

	
 

	
Trademarks,
  Franchises and Licenses

	
 

	
Article
  7.9

	
 

	
Governmental
  Authority and Licensing

	
 

	
Article
  7.10

	
 

	
Litigation
  and Other Controversies

	
 

	
Article
  7.11

	
 

	
Good
  Title

	
 

	
Article
  7.12

	
 

	
Taxes

	
 

	
Article
  7.13

	
 

	
Other
  Contracts

	
 

	
Article
  7.14

	
 

	
No
  Default

	
 

	
Article
  7.15

	
 

	
Compliance
  with Laws

	
 

	
Article
  7.16

	
 

	
Effective
  Date of Representations and Warranties

2

	
 

	
 

	
 

	
 

	
ARTICLE 8. COVENANTS

	
 

	
Article
  8.1

	
 

	
Maintain
  Existence in Iowa

	
 

	
Article
  8.2

	
 

	
Job
  Obligations

	
 

	
Article
  8.3

	
 

	
Performance
  Obligations

	
 

	
Article
  8.4

	
 

	
Maintenance
  of Properties

	
 

	
Article
  8.5

	
 

	
Taxes
  and Assessments

	
 

	
Article
  8.6

	
 

	
Insurance

	
 

	
Article
  8.7

	
 

	
Required
  Reports

	
 

	
Article
  8.8

	
 

	
Inspection
  and Audit

	
 

	
Article
  8.9

	
 

	
Mergers,
  Consolidations and Sales

	
 

	
Article
  8.10

	
 

	
Formation
  and Maintenance of Subsidiaries

	
 

	
Article
  8.11

	
 

	
Compliance
  with Laws

	
 

	
Article
  8.12

	
 

	
Use of
  Award Proceeds

	
 

	
Article
  8.13

	
 

	
Changes
  in Business Ownership, Structure or Control

	
 

	
Article
  8.14

	
 

	
Notice
  of Meetings

	
 

	
Article
  8.15

	
 

	
Notice
  of Proceedings

	
 

	
Article
  8.16

	
 

	
Accounting
  Records

	
 

	
Article
  8.17

	
 

	
Restrictions

	
 

	
Article
  8.18

	
 

	
No
  Changes in Business Operations

	
 

	
Article
  8.19

	
 

	
Indemnification

	
 

	
 

	
 

	
 

	
ARTICLE 9. EVENTS OF
  DEFAULT AND REMEDIES

	
 

	
Article
  9.1

	
 

	
Events
  of Default

	
 

	
Article
  9.2

	
 

	
Default
  Remedies

	
 

	
Article
  9.3

	
 

	
Default
  Interest Rate

	
 

	
Article
  9.4

	
 

	
Expenses

	
 

	
Article
  9.5

	
 

	
Notice
  of Default and Opportunity to Cure

	
 

	
 

	
 

	
 

	
ARTICLE 10. MISCELLANEOUS

	
 

	
Article
  10.1

	
 

	
Timely
  Performance

	
 

	
Article
  10.2

	
 

	
State of
  Iowa Recognition

	
 

	
Article
  10.3

	
 

	
Choice
  of Law and Forum

	
 

	
Article
  10.4

	
 

	
Governing
  Law

	
 

	
Article
  10.5

	
 

	
Master
  Contract/Funding Agreement Amendments

	
 

	
Article
  10.6

	
 

	
Notices

	
 

	
Article
  10.7

	
 

	
Headings

	
 

	
Article
  10.8

	
 

	
Final
  Authority

	
 

	
Article
  10.9

	
 

	
Waivers

	
 

	
Article
  10.10

	
 

	
Counterparts

	
 

	
Article
  10.11

	
 

	
Survival
  of Representations

	
 

	
Article
  10.12

	
 

	
Severability
  of Provisions

	
 

	
Article
  10.13

	
 

	
Successors
  and Assigns

	
 

	
Article
  10.14

	
 

	
Termination

	
 

	
Article
  10.15

	
 

	
Integration

3

	
 

	
 

	
 

	
MASTER CONTRACT

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
BUSINESS:

	
 

	
Soy Energy, LLC

	
MASTER CONTRACT NUMBER:

	
 

	
P0609M01093

	
AWARD DATE:

	
 

	
September 21, 2006

	
 

	
 

	
 

	 

          This
FINANCIAL ASSISTANCE CONTRACT (the “Master
Contract”) is made as of the CONTRACT EFFECTIVE DATE by and between
the Iowa Department of Economic Development(“IDED”), 200 East Grand Avenue,
Des Moines, IA 50309 and Soy Energy, LLC
an Iowa Limited Liability Company
(“Business”), 4832 G Avenue, PO Box 663, Marcus, Iowa 51035-0648.  

          WHEREAS,
the Business submitted an application to IDED requesting financial assistance in
the financing of its Project as more fully described in Exhibit C, Description
of the Project and Award Budget, (the “Project”);
and 

          WHEREAS,
the IDED found the Project to meet the requirements established to receive
financial assistance; and 

          WHEREAS,
the IDED and/or the Iowa Department of Economic Development Board (“IDED
Board”) have awarded the Business financial assistance from one or more
IDED-administered programs for the Project, all of which are subject to the
terms and conditions set forth herein and collectively referred to as the
“Award”; and  

          NOW
THEREFORE, in consideration of the mutual promises contained herein and
intending to be legally bound, the Business and IDED agree to the following
terms: 

ARTICLE 1 

MASTER CONTRACT DURATION; FUNDING AGREEMENTS DURATION

          This
Master Contract shall be in effect until all of Business’s obligations and
liabilities under this Master Contract and all of the Funding Agreements
executed in connection with this Master Contract have been satisfied. The
duration of each Funding Agreement will be as described in the Funding
Agreement. 

ARTICLE 2 

FUNDING

          2.1
Funding Sources. The sources of funding for this Award are
appropriations to IDED for financial assistance programs administered by the
IDED and tax credit programs that IDED is authorized to administer. 

          2.2
Reduction, Discontinuance or Alteration of Funding. Any termination,
reduction, or delay of funds available due, in whole or in part, to (i) lack
of, reduction in, or a deappropriation of revenues previously appropriated by
the legislature for this Award, or (ii) any other reason beyond the IDED’s
control may, in the IDED’s discretion, result in the termination, reduction or
delay of funds to the Business. 

4

ARTICLE 3 

CONTRACT STRUCTURE AND DEFINITIONS; 

DOCUMENTS INCORPORATED BY REFERENCE; AND ORDER OF PRIORITY

          3.1
Contract Structure and Definitions.  

          (a)
This Award shall be governed by this Master Agreement and the individual
funding agreements (the “Funding Agreements”)
for each source of program assistance for this Award. This Award has been
provided to the Business to fund the Project described in Exhibit C,
Description of the Project and Award Budget. The Articles of this Master
Contract apply to each Funding Agreement unless a Funding Agreement
specifically states otherwise. 

          (b)
The following terms apply to this Master Contract and each of the Funding
Agreements, unless otherwise specified in a Funding Agreement: 

          “Award Date” means the date first
stated in this Master
Contract and is the date the IDED and/or the IDED Board approved the awarding
of financial assistance to the Business for the Project. 

          “Business’ Employment Base”
means the number of jobs as stated in
Exhibit D, Job Obligations that the Business and IDED have established as the
job base for this Project. The number of jobs the Business has pledged to
create/retain shall be in addition to the Business’s Employment Base. 

          “Created Jobs” means the number
of new FTE Jobs the
Business will add over and above the Buisiness’s Employment Base and, if
applicable, Statewide Employment Base. 

          “Forgivable Loan” means a form of
an award made by the IDED to
the Business under a Funding Agreement(s) for which repayment is eliminated in
part or entirely if the Business satisfies the terms of this Contract and the
Funding Agreement(s). 

          “Full-time Equivalent (FTE) Job”
means the employment of one person: 

	
 

	
 

	
(a)

	
For 8 hours per day for a
  5-day, 40-hour workweek for 52 weeks per year, including paid holidays,
  vacations and other paid leave, or 

	
 

	
 

	
(b)

	
For the number of hours or
  days per week, including paid holidays, vacations and other paid leave,
  currently established by schedule, custom, or otherwise, as constituting a
  week of full-time work for the kind of service an individual performs for an
  employing unit. 

          “Job Maintenance Period” means
the date two (2) years from the
Project Completion Date as stated in Exhibit C, Description of the Project and
Award Budget. The Business shall maintain the Project, and the created/retained
jobs through the Job Maintenance Period.

          “Job Obligations” means the
Created Jobs, Retained Jobs,
Qualifying Jobs and Non-qualifying Jobs associated with the Project that pay
the wages and benefits, all as outlined in Exhibit D, Job Obligations. 

          “Loan” means form of an award
made by the IDED to
the Business under a Funding Agreement(s) for which full repayment is expected.

          “Non-qualifying
jobs” are those
jobs created or retained by the project that do not qualify for funding, but
would not be created or retained if the Project did not proceed. 

          “Project” means the description
of the work and
activities to be completed by the Business as outlined in Exhibit C,
Description of the Project and Award Budget, and Exhibit A, Business’s
Financial Assistance Application.

5

          “Project Completion Date” means
the date three (3) years from the
Award Date as stated in Exhibit C, Description of the Project and Award Budget.
The Project Completion Date is the date by which all Project activities shall
be satisfactorily completed. 

          “Statewide Employment Base” means
the number of jobs as stated in
Exhibit D, Job Obligations that the Business and IDED have determined as those
jobs that will be retained at other facilities in the state. The number of jobs
the Business has pledged to create/retain shall be in addition to the Statewide
Employment Base. 

          “Qualifying jobs” are those
created or retained jobs that
qualify for program funding. 

          “Retained Job” means an existing
job that would be
eliminated or moved to another state if the project did not proceed in Iowa. 

          3.2
Documents Incorporated by Reference. The following documents are
incorporated by reference and considered an integral part of this Master
Contract:

	
 

	
 

	
 

	
 

	
Exhibit A -

	
 

	
Business’s Financial
Assistance Application, Application # 07-EZ-010 and 07-VAP-009 

	
 

	
Exhibit B -

	
 

	
Funding Agreements:

	
 

	
 

	
 

	
B2- VAAPFAP Funding
  Agreement

	
 

	
 

	
 

	
B4- EZ Funding Agreement

	
Exhibit C -

	
 

	
Description of the Project
  and Award Budget 

	
Exhibit D -

	
 

	
Job Obligations 

          3.3
Business’s Financial Assistance Application on File. Due to its size,
Exhibit A will not be attached to this Master Contract, but will be kept on
file at the Iowa Department of Economic Development. It shall, nevertheless, be
considered an incorporated element of this Master Contract and the Funding Agreements.

          3.4
Order of Priority. In the case of any inconsistency or conflict between
the specific provisions of this document and the exhibits, the following order
of priority shall control: 

	
 

	
 

	
 

	
(a) Master Contract,
  Articles 1-10 

	
 

	
(b) Exhibit B - Funding
  Agreements 

	
 

	
(c) Exhibit C -
  Description of the Project and Award Budget 

	
 

	
(d) Exhibit D – Job
  Obligations 

	
 

	
(e) Exhibit A - Business’s
  Financial Assistance Application 

ARTICLE 4 

AWARD

          4.1
Description of the Project and Award Budget. The IDED and/or the IDED
Board have approved an Award to the Business from the programs and in the
amounts identified in Exhibit C, Description of the Project and Award Budget.
The Project Budget for this Award is as detailed in Exhibit C. 

          4.2
Job Obligations. The IDED and/or the IDED Board have approved an Award
to the Business and the Business’ obligations for FTE Created Jobs, Retained
Jobs, Qualifying Jobs and Non-qualifying Jobs are outlined in Exhibit D, Job
Obligations. 

          4.3
Repayment Obligation. The obligation to repay the direct financial
assistance components of this Award shall be evidenced by Promissory Notes
executed in connection with the Funding Agreements. 

6

ARTICLE 5 

CONDITIONS TO DISBURSEMENT OF FUNDS; DISBURSEMENT TERMS

          The
obligation of IDED to make, continue or disburse funds under this Master
Contract and the Funding Agreements shall be subject to the following
conditions precedent: 

          5.1
Documents Submitted. IDED shall have received each of the following documents,
properly executed and completed, and approved by IDED as to form and substance: 

	
 

	
 

	
(a)

	
Master
  Contract. Fully
  executed Master Contract. 

	
 

	
 

	
(b)

	
Funding
  Agreements.
  Fully executed Funding Agreements. 

	
 

	
 

	
(c)

	
Promissory
  Notes. The
  Promissory Notes required by the Funding Agreements. 

	
 

	
 

	
(d)

	
Articles
  of Incorporation.
  Copies of the articles of incorporation of the Business, certified in each
  instance by its secretary or assistant secretary. 

	
 

	
 

	
(e)

	
Certificate
  of Corporate Existence. A
  certificate of existence for the Business from the Office of the Secretary of
  State of Iowa. 

	
 

	
 

	
(f)

	
Results
  of Lien and Tax Search. Financing statement, tax and judgment lien search results, in the
  Business’s state of incorporation/organization, against the Business and
  Secured Property. 

	
 

	
 

	
(g)

	
Security
  Documents. The
  fully executed Security Documents required in Article 6.0. 

	
 

	
 

	
(h)

	
Other
  Required Documents. IDED shall have received such other contracts, instruments,
  documents, certificates and opinions as the IDED may reasonably request. 

	
 

	
 

	
(i)

	
Hazardous
  Waste Audit. To
  comply with Iowa Code section 15A.1(3)”b,” if the Business generates solid or
  hazardous waste, it must either: a) submit a copy of the Business’s existing
  in-house plan to reduce the amount of waste and safely dispose of the waste
  based on an in-house audit conducted within the past 3 years; or b) submit an
  outline of a plan to be developed in-house, or 3) submit documentation that
  the Business has authorized the Iowa Department of Natural Resources or Iowa
  Waste Reduction Center to conduct the audit. 

	
 

	
 

	
(j)

	
Release
  Form – Confidential Tax Information. A signed Authorization for Release of Confidential State Tax
  Information form to permit IDED to receive the Business’s state tax
  information directly from the Iowa Department of Revenue for purposes of
  annually updating the Iowa Public Return on Investment Analysis. 

	
 

	
 

	
(k)

	
Satisfactory
  Credit History.
  Documentation of satisfactory credit history of the Business and guarantors,
  as applicable, with no judgments or unsatisfied liens or similar adverse
  credit actions. 

	
 

	
 

	
(l)

	
Project
  Financial Commitments. The Business shall have submitted a letter from the funding sources
  identified in Exhibit C committing to the specified financial involvement in
  the Project and received the IDED’s approval of the letters of commitment.
  Each letter shall include the amount, terms and conditions of the financial
  commitment, as well as any applicable schedules. 

	
 

	
 

	
(m)

	
Requests
  for Disbursement. All
  disbursements of Award proceeds shall be subject to receipt by the IDED of
  requests for disbursement, in form and content acceptable to IDED, submitted
  by the Business. All requests 

7

	
 

	
 

	
 

	
shall include
  documentation of costs that have been paid or costs to be paid immediately
  upon receipt of Award proceeds.

	
 

	
 

	
(n)

	
Funding
  Agreements Disbursement Requirements. Satisfaction of all disbursement
  requirements outlined in the specific program Funding Agreements.

          5.2
Prior Costs. No expenditures made prior to the Award Date may be
included as Project costs. This restriction applies to the direct financial
assistance portions of this Award, not the tax credit benefits included in this
Award. 

          5.3
Cost Variation. In the event that the total Project cost is less than
the amount specified in the Exhibit C, the Funding Agreements shall be reduced
at the same ratio to the total Project cost reduction as the ratio of the
Funding Agreement amount to the total amount of funds provided by the Business
and all funding sources requiring a proportional reduction of their financial
contribution to the Project. Any disbursed excess above the reduced IDED
participation amount shall be returned immediately to IDED. 

          5.4
Suspension of Disbursement. Upon the occurrence of an Event of Default
(as defined in this Master Contract or any of the Funding Agreements) by the
Business, the IDED may suspend payments and tax credit program benefits to the
Business until such time as the default has been cured to IDED’s satisfaction.
Notwithstanding anything to the contrary in this Master Contract or the Funding
Agreements, upon a termination of this Master Contract on account of an Event
of Default by the Business, Business will no longer have the right to receive
any disbursements or any tax credit program benefits after the effective date
of default. All Award funds may also be suspended, in IDED’s sole discretion,
in the event the Business experiences a layoff within the state of Iowa or
closes any of its Iowa facilities. 

          5.5
Investment of Award Proceeds. 

          (a)
In the event that the Award proceeds are not immediately utilized, temporarily
idle Award proceeds held by the Business may be invested provided such
investments shall be in accordance with State law, including but not limited to
the provisions of Iowa Code chapter 12C concerning the deposit of public funds.
Interest accrued on temporarily idle Award proceeds held by the Business shall
be credited to and expended on the Project prior to the expenditure of other
Award proceeds. 

          (b)
All proceeds remaining, including accrued interest, after all allowable Project
costs have been paid or obligated shall be returned to the IDED within thirty
(30) days after the Project Completion Date. Within ten (10) days of receipt of
a written request from IDED, Business shall inform the IDED in writing of the
amount of unexpended Award funds in the Business’s possession or under the
Business’s control, whether in the form of cash on hand, investments, or
otherwise. 

ARTICLE 6 

SECURITY; CROSS-COLLATERALIZATION

          The
Business shall execute in favor of the IDED all security agreements, financing
statements, mortgages, personal and/or corporate guarantees (the “Security Documents”) as required by the
IDED. 

          6.1
Security. This Award shall be secured by: Irrevocable letter of credit
(the “Secured Property”) 

          6.2
Value of Collateral. The value, as reasonably determined by IDED, of the
Secured Property shall meet or exceed the amount of Award funds disbursed. 

          6.3
Additional or Substitute Collateral. In case of a decline in the market
value of the Secured Property, or any part thereof, IDED may require that
additional or substitute collateral of quality and value 

8

satisfactory
to IDED be pledged as Secured Property for this Award. The Business shall
provide such additional or substitute collateral Secured Property within 20
days of the date of the request for additional or substitute collateral to
secure this Award in an amount equal to or greater than the amount of
outstanding Award funds. 

ARTICLE 7

REPRESENTATIONS AND WARRANTIES

The Business
represents and warrants to IDED as follows: 

          7.1
Organization and Qualifications. The Business is duly organized, validly
existing and in good standing as a corporation under the state of its
incorporation. The Business has full and adequate power to own its property and
conduct its business as now conducted, and is duly licensed or qualified and in
good standing in each jurisdiction in which the nature of the business
conducted by it or the nature of the property owned or leased by it requires
such licensing or qualifying, except where the failure to so qualify would not
have a material adverse effect on the Business’s ability to perform its
obligations hereunder. 

          7.2
Authority and Validity of Obligations. The Business has full right and
authority to enter into this Master Contract and the Funding Agreements and to
make the borrowings herein provided for. The person signing this Master
Contract and the Funding Agreements has full authority to: 

	
 

	
 

	
 

	
 

	
a)

	
sign this
 Master Contract and the Funding Agreements, and 

	
 

	
 

	
 

	
 

	
b)

	
issue
 Promissory Notes on behalf of the Business, and 

	
 

	
 

	
 

	
 

	
c)

	
secure
 Business’s obligations under this Master Contract and the Funding Agreements,
 and 

	
 

	
 

	
 

	
 

	
d)

	
perform each
 and all of the obligations under the Master Contract and its Funding
 Agreement. 

The Master
Contract and Funding Agreement documents delivered by the Business have been duly
authorized, executed and delivered by the Business and constitute the valid and
binding obligations of the Business and enforceable against it in accordance
with their terms. This Master Contract, the Funding Agreements and related
documents do not contravene any provision of law or any judgment, injunction,
order or decree binding upon the Business or any provision of the articles of
organization or operating agreement of the Business, contravene or constitute a
default under any covenant, indenture or contract of or effecting the Business
or any of its properties. 

          7.3
Use of Proceeds. The Business hereby agrees to use Award proceeds only
for the Project and for the activities described in Exhibit C, Description of
the Project and Award Budget, this Master Contract and the Funding Agreements.
Use of Award proceeds shall conform to the Budget for the Project as detailed
in Exhibit C. The Business represents that there are legally enforceable
commitments in place from the funding sources identified for the Project in
Exhibit C. 

          7.4
Subsidiaries. The Business has no Subsidiaries on the Contract Effective
Date. 

          7.5
Financial Reports. The balance sheet of the Business furnished to IDED
as of the Contract Effective Date, fairly presents its financial condition as
at said date in conformity with GAAP applied on a consistent basis. The
Business has no contingent liabilities which are material to it, other than as
indicated on such financial statements or, with respect to future periods, on
the financial statements furnished to IDED. 

          7.6
No Material Adverse Change. Since the Award Date, there has been no
change in the condition (financial or otherwise) or business prospects of the
Business, except those occurring in the ordinary course of business, none of
which individually or in the aggregate have been materially adverse. To the
knowledge of the Business, there has been no material adverse change in the
condition of the Business (financial or otherwise) or the business prospects of
the Business 

9

          7.7
Full Disclosure; Business’s Financial Assistance Application. The
statements and other information furnished to the IDED by Business in its
Financial Assistance Application and in connection with the negotiation of this
Master Contract and the Funding Agreements do not contain any untrue statements
of a material fact or omit a material fact necessary to make the material
statements contained herein or therein not misleading. The IDED acknowledges
that as to any projections furnished to the IDED, the Business only represents
that the same were prepared on the basis of information and estimates it
believed to be reasonable. 

          7.8
Trademarks, Franchises and Licenses. The Business owns, possesses, or
has the right to use all necessary patents, licenses, franchises, trademarks,
trade names, trade styles, copyrights, trade secrets, know how and confidential
commercial and proprietary information to conduct its businesses as now
conducted, without known conflict with any patent, license, franchise,
trademark, trade name, trade style, copyright or other proprietary right of any
other Person. As used in this Master Contract, “Person” means an individual, partnership, corporation,
association, trust, unincorporated organization or any other entity or
organization, including a government or agency or political subdivision
thereof. 

          7.9
Governmental Authority and Licensing. The Business has received all
licenses, permits, and approvals of all Federal, state, local, and foreign
governmental authorities, if any, necessary to conduct its businesses, in each
case where the failure to obtain or maintain the same could reasonably be
expected to have a material adverse effect. No investigation or proceeding
which, if adversely determined, could reasonably be expected to result in
revocation or denial of any material license, permit, or approval is pending
or, to the knowledge of the Business threatened.

          7.10
Litigation and Other Controversies. There is no litigation or
governmental proceeding pending, nor to the knowledge of the Business
threatened, against the Business which if adversely determined would result in
any material adverse change in the financial condition, Properties, business or
operations of the Business, nor is the Business aware of any existing basis for
any such litigation or governmental proceeding. 

          7.11
Good Title. The Business has good and defensible title (or valid
leasehold interests) to all of its Property (including, without limitation, the
Secured Property) reflected on the most recent balance sheets furnished to the
IDED (except for sales of assets in the ordinary course business). 

          7.12
Taxes. All tax returns required to be filed by the Business in any
jurisdiction have, in fact, been filed, and all taxes, assessments, fees and
other governmental charges upon the Business or upon any of its property,
income or franchises, which are shown to be due and payable in such returns,
have been paid, except such taxes, assessments, fees and governmental charges,
if any, as are being contested in good faith and by appropriate proceedings
which prevent enforcement of the matter under contest and as to which adequate
reserves established in accordance with GAAP have been provided. The Business
knows of no proposed additional tax assessment against it for which adequate
provisions in accordance with GAAP have not been made on its accounts. Adequate
provisions in accordance with GAAP for taxes on the books of the Business have
been made for all open years, and for their current fiscal period. 

          7.13
Other Contracts. The Business is not in default under the terms or any
covenant, indenture or contract of or affecting either the Business or any of
its properties, which default, if uncured, would have a material adverse effect
on its financial condition, properties, business or operations. 

          7.14
No Default. No Default or Event of Default has occurred or is
continuing. 

          7.15
Compliance with Laws. The Business is in compliance with the
requirements of all federal, state and local laws, rules and regulations
applicable to or pertaining to the business operations of the Business and laws
and regulations establishing quality criteria and standards for air, water,
land and toxic or hazardous wastes or substances, non-compliance with which
could have a material adverse effect on the financial

10

condition,
properties, business or operations of the Business. The Business has not
received notice to the effect that its operations are not in compliance with
any of the requirements of applicable federal, state or local environmental or
health and safety statutes and regulations or are the subject of any
governmental investigation evaluating whether any remedial action is needed to
respond to a release of any toxic or hazardous waste or substance into the
environment, which non-compliance or remedial action could have a material
adverse effect on the financial condition, properties, business or operations
of the Business. 

          7.16
Effective Date of Representations and Warranties. The warranties and
representations of this Article are made as of the Contract Effective Date and
shall be deemed to be renewed and restated by the Business at the time each
request for disbursement of funds is submitted to the IDED. 

ARTICLE 8

COVENANTS

          The
Business agrees that, for the duration of this Master Contract and the Funding
Agreements: 

          8.1
Maintain Existence in Iowa. The Business shall at all times preserve and
maintain its existence as a corporation in good standing and maintain the
Project in Iowa. The Business will preserve and keep in force and affect all
licenses, permits, franchises, approvals, patents, trademarks, trade names,
trade styles, copyrights and other proprietary rights necessary to the proper
conduct of its respective business. 

          8.2
Job Obligations.

          (a)
Jobs and Wages. By the Project Completion Date, the Business shall
create/retain the number of FTE Created Jobs, Retained Jobs, Qualifying Jobs
and Non-qualifying Jobs above the Business’ Employment Base and, if applicable,
the Statewide Employment
Base, and maintain the jobs through the Job Maintenance Period,
all as detailed in Exhibit D. The Business shall pay the wage rates identified
in Exhibit D. 

          (b)
Benefits. The Business shall provide and pay for the eligible benefits
described in Exhibit A, Business’s Financial Assistance Application, with an Average Benefit Value
calculated by IDED and shown in Exhibit D. During the Contract period the
Business may adjust the benefit package provided the Average Benefit Value is
not decreased and provided the benefit package includes eligible benefits. For
purposes of this Contract, “Eligible
benefits” means, medical and dental insurance plans, pension and
profit–sharing plans, child care services, life insurance coverage, vision
insurance plan, and disability coverage. 

          8.3
Performance Obligations. By the Project Completion Date, Business shall
complete the Project, make the total investment pledged for the Project, and
comply with all other performance requirements described in this Master
Contract and the Funding Agreements. The Business shall promptly provide IDED
with written notice of any major changes that would impact the success of the
Project. 

          8.4
Maintenance of Properties. The Business shall maintain, preserve and
keep its properties in good repair, working order and condition (ordinary wear
and tear excepted) and will from time to time make all needful and proper
repairs, renewals, replacements, additions and betterments thereto so that at
all time the efficiency thereof shall be fully preserved and maintained in
accordance with prudent business practices. 

          8.5
Taxes and Assessments. The Business shall duly pay and discharge all
taxes, rates, assessments, fees and governmental charges upon or against it
against its properties, in each case before the same become delinquent and
before penalties accrue thereon, unless and to the extent that the same are
being contested in good faith and by appropriate proceedings and adequate
reserves are provided therefore. 

11

          8.6
Insurance. The Business shall insure and keep insured in good and
responsible insurance companies, all insurable property owned by it which is of
a character usually insured by Persons similarly situated and operating like
properties against loss or damage from such hazards or risks as are insured by
Persons similarly situated and operating like properties; and the Business
shall insure such other hazards and risks (including employers’ and public
liability risks) in good and responsible insurance companies as and to the
extent usually insured by Persons similarly situated and conducting similar
businesses. The Business will upon request of the IDED furnish a certificate
setting forth in summary form the nature and extent of the insurance maintained
pursuant to this Article. 

          8.7
Required Reports.

          (a)
Review of Disbursement Requests and Reports. The Business shall prepare,
sign and submit disbursement requests and reports as specified in this Master
Contract in the form and content required by IDED. The Business shall review
all reimbursement requests and verify that claimed expenditures are allowable
costs. The Business shall maintain documentation adequate to support the
claimed costs. 

          (b)
Reports. The Business shall prepare, sign and submit the following
reports to the IDED throughout the Contract period: 

	
 

	
 

	
 

	
 

	
 

	
Report

	
 

	
 

	
Due Date

	
 

	 

	
 

	
 

	 

	
 

	
 

	
 

	
 

	
Mid-Year
 Status Report

	
 

	
July 31st
 for the period ending June 30th

	
 

	
 

	
 

	
End-of-Year
 Status Report Includes:

	
 

	
January 31st
 for the period ending Dec. 31st

- Public
Return on Investment (ROI) Update

- Payroll Register with all created and/or 

  retained jobs highlighted and indicate 

  the Project Jobs paying the required wage 

- “Employer’s Contribution and Payroll Report” 

- For Enterprise Zone awards, annual certification of compliance 

  with the requirements of Iowa Code 15E.193, as required by

  15E.195(6). 

	
 

	
 

	
 

	
End of
 Project Report

	
 

	
Within 30
 days of Project Completion Date

	
Report
 content: same items as End-of-Year Report

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
End of Job
 Maintenance Period Report

	
 

	
Within 30
 days of the end of the Job

	
Report
 Content: same items as

	
 

	
    Maintenance Period

	
End-of-Year
 Report

	
 

	
 

          (c)
Additional Reports, Financials as Requested by IDED. The IDED reserves
the right to require more frequent submission of any of the above reports if,
in the opinion of the IDED, more frequent submissions would help improve the
Business’s Project performance, or if necessary in order to meet requests from
the Iowa General Assembly, the Department of Management or the Governor’s
office. At the request of IDED, Business shall submit its annual financial
statements completed by an independent CPA, or other financial statements
including, but not limited to, income, expense, and retained earnings
statements. 

          8.8
Inspection and Audit. The Business will permit the IDED and its duly
authorized representatives to visit and inspect any of the Business’s
properties, corporate books and financial records of the Business related to
the Project, to examine and make copies of the books of accounts and other
financial records of the Business, and to discuss the affairs, finances and
accounts of the Business with, and to be advised as to the

12

same by, its
officers, and independent public accountants (and by this provision the
Business authorizes such accountants to discuss with the IDED and the IDED’s
duly authorized representatives the finances and affairs of the Business) at
such reasonable time and reasonable intervals as the IDED may designate, but at
least annually. 

          8.9
Mergers, Consolidations and Sales. Without the written consent of the
IDED, which shall not be unreasonably withheld, the Business shall not be a
party to any merger or consolidation, or sell, transfer, lease or otherwise
dispose of all or any part of the Secured Property. 

          8.10
Formation and Maintenance of Subsidiaries. The Business will not form or
acquire any Subsidiary or transfer assets pledged as security for this Master
Contract to any subsidiary or affiliate without the written consent of the
IDED, which shall not be unreasonably withheld. 

          8.11
Compliance with Laws.

          (a)
The Business will comply in all material respects with the requirements of all
federal, state and local laws, rules, regulations and orders applicable to or
pertaining to its properties or business operations including, but not limited
to, all applicable environmental, hazardous waste or substance, toxic substance
and underground storage laws and regulations, and the Business will obtain any
permits, licenses, buildings, improvements, fixtures, equipment or its property
required by reason of any applicable environmental, hazardous waste or
substance, toxic substance or underground storage laws or regulations. 

          (b)
The Business shall comply in all material respects with all applicable federal,
state, and local laws, rules, ordinances, regulations and orders applicable to
the prevention of discrimination in employment, including the administrative
rules of the Iowa Department of Management and the Iowa Civil Rights Commission
which pertain to equal employment opportunity and affirmative action. 

          (c)
The Business shall comply in all material respects with all applicable federal,
state and local laws, rules, ordinances, regulations and orders applicable to
worker rights and worker safety. 

          (d)
The Business shall comply with IDED’s administrative rules for each program
funding source, as identified in the Funding Agreements. 

          8.12
Use of Award Proceeds. The Business will use the Award proceeds extended
under this Master Contract and the Funding Agreements solely for the purposes
set forth in Exhibit C. 

          8.13
Changes in Business Ownership, Structure and Control. The Business shall
not materially change the ownership, structure, or control of the Business if
it would adversely affect the Project. This includes, but is not limited to,
entering into any merger or consolidation with any person, firm or corporation
or permitting substantial distribution, liquidation or other disposal of
Business assets directly associated with the Project. Business shall provide
IDED with advance notice of any proposed changes in ownership, structure or
control. The materiality of the change and whether or not the change affects
the Project shall be as reasonably determined by IDED. 

          8.14
Notice of Meetings. The Business shall notify IDED at least two (2)
working days in advance of all meetings of the board of directors at which the
subject matter of this Master Contract, the Funding Agreements, or the Project
is proposed to be discussed. The Business shall provide IDED with copies if the
agenda and minutes of such meetings and expressly agrees that a representative
of IDED has a right to attend those portions of any and all such meetings where
the Project, this Master Contract or the Funding Agreements are discussed. 

          8.15
Notice of Proceedings. The Business shall promptly notify IDED of the
initiation of any claims, lawsuits, bankruptcy proceedings or other proceedings
brought against the Business which would adversely impact the Project.

13

          8.16
Accounting Records. The Business is required to maintain its books,
records and all other evidence pertaining to this Master Contract and it
Funding Agreements in accordance with generally accepted accounting principles
and such other procedures specified by IDED. These records shall be available
to IDED, its internal or external auditors, the Auditor of the State of Iowa,
the Attorney General of the State of Iowa and the Iowa Division of Criminal
Investigations at all times during the Master Contract’s and the Funding
Agreements’ duration and any extensions thereof, and for three (3) full years
from the Agreement Expiration Date. 

          8.17 Restrictions.
The Business shall not, without prior written disclosure to IDED and prior
written consent of IDED, which shall not be unreasonably withheld, directly or
indirectly: 

          (a)
Assign, waive or transfer any of Business’s rights, powers, duties or
obligations under this Master Contract or the Funding Agreements. 

          (b)
Sell, transfer, convey, assign, encumber or otherwise dispose of any of the
Secured Property or the Project. 

          (c)
Place or permit any restrictions, covenants or any similar limitations on the
Secured Property or the Project. 

          (d)
Remove from the Project site or the State all or substantially all of the
Secured Property. 

          (e)
Create, incur or permit to exist any Lien of any kind on the Secured Property. 

          8.18
No Changes in Business Operations. The Business shall not materially
change the Project or the nature of the Business and activities being
conducted, or proposed to be conducted by Business, as described in the
Business’s approved application for funding, Exhibit A of this Master Contract,
unless approved in writing by IDED prior to the change. 

          8.19
Indemnification. The Business shall indemnify, defend and hold harmless
the IDED, the State of Iowa, its departments, divisions, agencies, sections,
commissions, officers, employees and agents from and against all losses,
liabilities, penalties, fines, damages and claims (including taxes), and all
related costs and expenses (including reasonable attorneys’ fees and
disbursements and costs of investigation, litigation, settlement, judgments,
interest and penalties), arising from or in connection with any of the
following: 

	
 

	
 

	
 

	
 

	
a)

	
Any claim,
 demand, action, citation or legal proceeding arising out of or resulting from
 the Project; 

	
 

	
 

	
 

	
 

	
b)

	
Any claim,
 demand, action, citation or legal proceeding arising out of or resulting from
 a breach by the Business of any representation or warranty made by the
 Business in this Master Contract or the Funding Agreements; 

	
 

	
 

	
 

	
 

	
c)

	
Any claim,
 demand, action, citation or legal proceeding arising out of or related to
 occurrences that the Business is required to insure against as provided for
 in this Master Contract or the Funding Agreements; and 

	
 

	
 

	
 

	
 

	
d)

	
Any claim,
 demand, action, citation or legal proceeding which results from an act or
 omission of the Business or any of their agents in its or their capacity as
 an employer of a person. 

ARTICLE 9

EVENTS OF DEFAULT AND REMEDIES 

          9.1
Events of Default. Any one or more of the following shall constitute an “Event of Default” hereunder: 

14

          (a)
Nonpayment. In the event of a missed payment under a
Loan or in the event a Forgivable Loan is not forgiven and all or a portion of
the Forgivable Loan must be repaid by the Business, a default in the payment
when due (whether by lapse of time, acceleration or otherwise) of any principal
on the Promissory Note(s), or default in payment for more than ten (10)
Business Days of the due date thereof of any interest on the Promissory Note(s)
or any fee or other obligation payable by the Business shall be an Event of
Default; or 

          (b) Noncompliance with Covenants. Default
in the observance or performance of any covenant set forth in Article 8, for
more than five (5) Business Days; or  

          (c)
 Noncompliance with Security Documents. Default in the observance or performance
of any term of any Security Documents beyond any applicable grace period set
forth therein; or 

          (d)
Noncompliance with Master Contract.
Default in the observance or performance of any other provision of this Master
Contract; or 

          (e) Noncompliance with Funding Agreements;
Cross-Default. Default in the observance or performance of any
other provision of any of the Funding Agreements, including Events of Default
identified in any of the Funding Agreements; IDED may elect to declare the
Business in default of this Master Contract and any or all of the Funding
Agreements if there is a default under any one of the Funding Agreements; or 

          (f)
Material Misrepresentation.
Any representation or warranty made by the Business in this Master Contract or
the Funding Agreements or in any statement or certificate furnished by it
pursuant to this Master Contract or the Funding Agreements, or made in its
Financial Assistance Application, or in connection with any of the above,
proves untrue in any material respect as of the date of the issuance or making
thereof; or 

          (g)
Lien Deficiencies. Any of
the Security Documents shall for any reason fail to create a valid and
perfected priority Lien in favor of the IDED in any Secured Property pledged by
Business; or 

          (h)
Judgment Over $100,000.
Any judgment or judgments, writ or writs or warrant or warrants of attachment,
or any similar process or processes in an aggregate amount in excess of
$100,000 shall be entered or filed against the Business or against any of its
property and remains unvacated, unbonded or unstayed for a period of 30 days;
or 

          (i)
Adverse Change in Financial Condition.
Any change shall occur in the financial condition of the Business which
would have a material adverse effect on the ability of the Business to perform
under this Master Contract or the Funding Agreements; or 

          (j) Bankruptcy or Similar Proceedings
Initiated.
Either the Business shall (1) have entered involuntarily against it an order
for relief under the United States Bankruptcy Code, as amended, (2) not pay, or
admit in writing its inability to pay, its debts generally as they become due,
(3) make an assignment for the benefit of creditors, (4) apply for, seek,
consent to, or acquiesce in, the appointment of a receiver, custodian, trustee,
examiner, liquidator or similar official for it or any substantial part of its
Property, (5) institute any proceeding seeking to have entered against it an
order for relief under the United States Bankruptcy Code as amended, to
adjudicate it insolvent, or seeking dissolution, winding up, liquidation,
reorganization, arrangement, adjustment or composition of it or its debts under
any law relating to bankruptcy, insolvency or reorganization or relief of
debtors or fail to file an answer or other pleading denying the material
allegations of any such proceeding filed against it, or (6) fail to contest in
good faith any appointments or proceeding described in Article 9.l(k) below; or

          (k)
Appointment of Officials.
A custodian, receiver, trustee, examiner, liquidator or similar official shall
be appointed for either the Business or any substantial part of any of its
respective property, or a proceeding described in Article 9.1(j) shall be
instituted against either the Business and such appointment continues 

15

undischarged
or such proceeding continues undismissed or unstayed for a period of sixty (60)
days; or 

          (l) 
Insecurity. IDED
shall in good faith deem itself insecure and reasonably believes, after consideration
of all the facts and circumstances then existing, that the prospect of payment
and satisfaction of the obligations under this Master Contract and/or the
Funding Agreements, or the performance of or observance of the covenants in
this Master Contract and/or the Funding Agreements, is or will be materially
impaired. 

          (m)
Failure to Submit Required Reports.
The Business fails to submit complete reports by the required due dates as
outlined in Article 8.7. 

          (n)
Layoffs, Relocation, or Closure.
The Business experiences a substantial layoff, relocates a substantial portion
of its business or its offices outside of Iowa, or closes its operations during
the term of this Contract. 

          9.2
Default Remedies. When an Event of Default has occurred and is
continuing, the IDED may, by written notice to the Business: 

          (a) terminate this
Master Contract, the Funding Agreements and all of the obligations of IDED
under this Master Contract and the Funding Agreements on the date stated in
such notice, and 

          (b)
declare the principal and any accrued interest on the outstanding Promissory
Notes to be forthwith due and payable, including both principal and interest
and all fees, charges and other amounts payable under this Master Contract and
the Funding Agreements, shall be and become immediately due and payable without
further demand, presentment, protest or notice of any kind. 

          9.3
Default Interest Rate. If an Event of Default occurs and remains
uncured, a default rate of 6% shall apply to repayment of amounts due under
this Master Contract and the Funding Agreements. The default interest rate
shall accrue from the first date Award funds are disbursed. 

          9.4
Expenses. The Business agrees to pay to the IDED all expenses reasonably
incurred or paid by IDED including reasonable attorneys’ fees and court costs,
in connection with any Default or Event of Default by the Business or in
connection with the enforcement of any of the terms of this Master Contract and
the Funding Agreements. 

          9.5
Notice of Default and Opportunity to Cure. If IDED has reasonable cause
to believe that and Event of Default has occurred under this Master Contract
and/or the Funding Agreements, IDED shall issue a written Notice of Default to
the Business, setting forth the nature of the alleged default in reasonable
specificity, and providing therein a reasonable period time, which shall not be
fewer than thirty (30) days from the date of the Notice of Default, in which
the Business shall have an opportunity to cure, provided that cure is possible
and feasible. 

ARTICLE 10

MISCELLANEOUS.

          10.1
Timely Performance. The parties agree that the dates and time periods
specified in this Master Contract and the Funding Agreements, including the timelines
established for the Project and more fully described in Exhibit C, are of the
essence to the satisfactory performance of this Master Contract and the Funding
Agreements. 

          10.2
State of Iowa Recognition. The Project shall permanently recognize, in a
manner acceptable to IDED, the financial contribution to the Project made by
the State of Iowa. For example, a sign or plaque acknowledging that the Project
was funded in part by an Award from the State of Iowa, Iowa Department of Economic Development.

16

          10.3
Choice of Law and Forum.

          (a)
In the event any proceeding of a quasi-judicial or judicial nature is commenced
in connection with this Master Contract or the Funding Agreements, the
proceeding shall be brought in Des Moines, Iowa, in Polk County District Court
for the State of Iowa, if such court has jurisdiction. If however, such court
lacks jurisdiction and jurisdiction lies only in a United States District
Court, the matter shall be commenced in the United States District Court for
the Southern District of Iowa, Central Division. 

          (b)
This provision shall not be construed as waiving any immunity to suit or
liability, in state or federal court, which may be available to the IDED, the
State of Iowa or its members, officers, employees or agents. 

          10.4
Governing Law. This Master Contract and the Funding Agreements and the
rights and duties of the parties hereto shall be governed by, and construed in
accordance with the internal laws of the State of Iowa without regard to
principles of conflicts of laws. 

          10.5
Master Contract/Funding Agreement Amendments. Neither this Master
Contract nor any documents incorporated by reference in connection with this
Master Contract, including the Funding Agreements, may be changed, waived,
discharged or terminated orally, but only as provided below: 

          (a)
Writing required. The
Master Contract and the Funding Agreements may only be amended if done so in
writing and signed by the Business and IDED; and for those Funding Agreements
in which the Community is a signatory, by the Community, the Business and IDED.
Examples of situations requiring an amendment include, but are not limited to,
time extensions, budget revisions, and significant alterations of existing
activities or beneficiaries. No amendment will be valid until approved in
writing by IDED. 

          (b)
IDED review. IDED will
consider whether an amendment request is so substantial as to necessitate
reevaluating the IDED’s or IDED Board’s original funding decision. An amendment
may be denied by IDED if it substantially alters the circumstances under which
the Project funding was originally approved. 

          10.6
Notices. Except as otherwise specified herein, all notices hereunder
shall be in writing (including, without limitation by fax) and shall be given
to the relevant party at its address, e-mail address, or fax number set forth
below, or such other address, e-mail address, or fax number as such party may
hereafter specify by notice to the other given by United States mail, by fax or
by other telecommunication device capable of creating a written record of such
notice and its receipt. Notices hereunder shall be addressed: 

	
 

	
 

	
 

	
 

	
 

	
To the
 Business:

	
 

	
 

	
 

	
 

	
 

	
 

	
Soy Energy,
 LLC

	
 

	
 

	
Charles
 Sand, President

	
 

	
 

	
4832 G
 Avenue

	
 

	
 

	
PO Box 663

	
 

	
 

	
Marcus, Iowa
 51035-0648

	
 

	
 

	
 

	
 

	
 

	
 

	
E-mail:

	
soyenergy@midlands.net

	
 

	
 

	
Telephone:

	
712.376.2081

	
 

	
 

	
Facsimile:

	
712.376.2333

17

	
 

	
 

	
 

	
 

	
 

	
To the IDED
 at:

	
 

	
 

	
 

	
 

	
 

	
 

	
Iowa
 Department of Economic Development

	
 

	
 

	
Business
 Services

	
 

	
 

	
200 East Grand
 Avenue

	
 

	
 

	
Des Moines,
 Iowa 50309

	
 

	
 

	
Attention:
 Paul Stueckradt, Business Services Project Manager

	
 

	
 

	
 

	
 

	
 

	
 

	
E-mail:   paul.stueckradt@iowalifechanging.com

	
 

	
 

	
Telephone: 

	
515.242.4897

	
 

	
 

	
Facsimile: 

	
515.242.4832

Each such
notice, request or other communication shall be effective (i) if given by
facsimile, when such facsimile is transmitted to the facsimile number specified
in this Article and a confirmation of such facsimile has been received by the
sender, (ii) if given by e-mail, when such e-mail is transmitted to the e-mail
address specified in this Article and a confirmation of such e-mail has been
received by the sender, (iii) if given by mail, five (5) days after such
communication is deposited in the mail, certified or registered with return receipt
requested, addressed as aforesaid or (iv) if given by any other means, when
delivered at the addresses specified in this Article. 

          10.7
Headings. Article headings used in this Master Contract and the Funding
Agreements are for convenience of reference only and are not a part of this
Master Contract or the Funding Agreements for any other purpose. 

          10.8
Final Authority. The IDED shall have the authority to reasonably assess
whether the Business has complied with the terms of this Master Contract and
the Funding Agreements. Any IDED determinations with respect to compliance with
the provisions of this Master Contract and the Funding Agreements shall be
deemed to be final determinations pursuant to Section 17A of the Code of Iowa
(2005). 

          10.9
Waivers. No waiver by IDED of any default hereunder shall operate as a
waiver of any other default or of the same default on any future occasion. No
delay on the part of the IDED in exercising any right or remedy hereunder or
under the Funding Agreements shall operate as a waiver thereof. No single or
partial exercise of any right or remedy by IDED shall preclude future exercise
thereof or the exercise of any other right or remedy. 

          10.10
Counterparts. This Master Contract may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute but one and the same instrument. 

          10.11
Survival of Representations. All representations and warranties made
herein or in any other Master Contract/Funding Agreement document or in
certificates given pursuant hereto or thereto shall survive the execution and
delivery of this Master Contract and the Funding Agreements and the other
Master Contract/Funding Agreement documents and shall continue in full force
and effect with respect to the date as of which they were made until all of
Business’s obligations or liabilities under this Master Contract and the
Funding Agreements have been satisfied.

          10.12
Severability of Provisions. Any provision of this Master Contract or the
Funding Agreements, which is unenforceable in any jurisdiction, shall, as to
such jurisdiction, be ineffective to the extent of such unenforceability
without invalidating the remaining provisions hereof or affecting the validity
or enforceability of such provision in any other jurisdiction. All rights,
remedies and powers provided in this Master Contract and or the Funding
Agreements or any other Master Contract document may be exercised only to the
extent that the exercise thereof does not violate any applicable mandatory
provisions of law, and all the provisions of this Master Contract and the
Funding Agreements and any other Master Contract document are intended to be 

18

subject to all
applicable mandatory provisions of law which may be controlling and to be
limited to the extent necessary so that they will not render this Master
Contract or the Funding Agreements or any other Master Contract document
invalid or unenforceable. 

          10.13
Successors and Assigns. This Master Contract and the Funding Agreements
shall be binding upon the Business and its respective successors and assigns,
and shall inure to the benefit of the IDED and the benefit of their respective
successors and assigns. The Business may not assign its rights hereunder or
under any of the Funding Agreements without the written consent of the IDED,
which consent will not be unreasonably withheld. 

          10.14
Termination. This Master Contract and any of the Funding Agreements can
be terminated upon mutual, written agreement of the Business and IDED and, for
amendments to Funding Agreements to which the Community is a signatory, the
Community. 

          10.15
Integration. This Master Contract and the Funding Agreements contains
the entire understanding between the Business and IDED relating to the Project
and any representations that may have been made before or after the signing of
this Master Contract and the Funding Agreements, which are not contained
herein, are nonbinding, void and of no effect. None of the Parties have relied
on any such prior representation in entering into this Master Contract and its
Funding Agreement. 

          IN
WITNESS WHEREOF in consideration of the mutual covenants set forth above and
for other good and valuable consideration, the receipt, adequacy and legal
sufficiency of which are hereby acknowledged, the parties have entered into
this Master Contract and have caused their duly authorized representatives to
execute this Master Contract, effective as of the latest date stated below (the
“Contract Effective Date”). 

FOR THE IOWA DEPARTMENT OF ECONOMIC
DEVELOPMENT: 

	
 

	
 

	
 

	
 

	
BY:

	
 

	
/s/ Mike
 Blouin

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Mike Blouin,
 Director

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1-10-07

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Date

	
 

	
 

	
 

	
 

	
 

	
FOR THE BUSINESS:

	
 

	
 

	
 

	
 

	
 

	
BY:

	
 

	
/s/ Charles
 Sand, Chairman

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Signature

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Charles
 Sand, Chairman

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Typed Name
 and Title

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
12-26-06

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Date

	
 

19

LIST
OF EXHIBITS

	
 

	
 

	
Exhibit A -

	
Business’s Financial Assistance Application (on file
  with IDED), Application # 07-EZ-010 and 07-VAP-009

	
 

	
 

	
Exhibit B -

	
Funding Agreements 

	
 

	
B2-VAAPFAP Funding Agreement

	
 

	
B4-EZ Funding Agreement

	
 

	
 

	
Exhibit C -

	
Description of the Project and Award Budget

	
 

	
 

	
Exhibit D -

	
Job Obligations

VAAPFAP Funding Agreement Exhibit A1- Forgivable Loan Promissory Note 

PROMISSORY
NOTE

                    FOR
VALUE RECEIVED, the undersigned promises, in the event this Forgivable Loan is
not forgiven, to pay to the order of the IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT, at
its office at 200 East Grand, Des Moines, Iowa 50309, the sum of ONE HUNDRED
THOUSAND DOLLARS ($100,000) with interest at a rate of 0% unless an Event of Default occurs,
in which case interest shall be at the default rate set forth in Contract
number P0609M01093 (“Contract”).
The terms and conditions by which forgiveness of this Loan may occur are as
specified in the Contract.

Interest shall first be deducted from the payment and
any balance shall be applied on principal. Upon default in payment of any
interest, or any installment of principal, the whole amount then unpaid shall
become immediately due and payable at the option of the holder. 

The undersigned, in case of suit on this note, agrees
to pay on demand all costs of collection, maintenance of collateral, legal
expenses, and attorneys’ fees incurred or paid by the holder in collecting
and/or enforcing this Note on default.

This note shall be secured by the Security specified
in the Contract.

Makers, endorsers and sureties waive demand of
payment, notice of non-payment, protest and notice. Sureties, endorsers and
guarantors agree to all of the provisions of this note, and consent that the
time or times of payment of all or any part hereof may be extended after
maturity, from time to time, without notice.

	
 

	
 

	
 

	
 

	
 

	
Soy Energy, LLC

	
 

	
 

	
 

	
 

	
 

	
 

	
By: 

	
     /s/
 Charles Sand

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Charles Sand, President

	
 

	
 

	
 

	
 

	
 

	
 

	
Address:

	
4832 G
 Avenue

	
 

	
 

	
 

	
PO Box 663

	
 

	
 

	
 

	
Marcus,
 Iowa 0

	
 

	
 

	
 

	
 

	
 

	
 

	
Date

	
12-26-06

	
 

	
 

	
 

	 

	
 

VAAPFAP Funding Agreement Exhibit A2- Loan Promissory Note 

PROMISSORY
NOTE

                    FOR
VALUE RECEIVED, the undersigned promises to pay to the order of the IOWA
DEPARTMENT OF ECONOMIC DEVELOPMENT, at its office at 200 East Grand,
Des Moines, Iowa 50309, the sum of THREE HUNDRED THOUSAND DOLLARS ($300,000) with
interest thereon at ZERO PERCENT (0%) to be paid as follows:

          60
monthly payments of $5,000.00 beginning on the first day of the
fourth month from the date Award funds are disbursed. Final payment may vary
depending upon dates payments are received. 

 

Interest shall first be deducted from the payment and
any balance shall be applied on principal.

Upon default in payment of any interest, or any
installment of principal, the whole amount then unpaid shall become immediately
due and payable at the option of the holder. 

The undersigned, in case of suit on this note, agrees
to pay on demand all costs of collection, maintenance of collateral, legal
expenses, and attorneys’ fees incurred or paid by the holder in collecting
and/or enforcing this Note on default.

This note shall be secured by the Security specified in
the Contract.

Makers, endorsers and sureties waive demand of
payment, notice of non-payment, protest and notice. Sureties, endorsers and
guarantors agree to all of the provisions of this note, and consent that the
time or times of payment of all or any part hereof may be extended after
maturity, from time to time, without notice.

	
 

	
 

	
 

	
 

	
 

	
Soy Energy, LLC

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
     /s/
 Charles Sand

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Charles Sand, President

	
 

	
 

	
 

	
 

	
 

	
 

	
Address:

	
4832 G
 Avenue

	
 

	
 

	
 

	
PO Box 663

	
 

	
 

	
 

	
Marcus,
 Iowa 0

	
 

	
 

	
 

	
 

	
 

	
 

	
Date

	
12-26-06

	
 

	
 

	
 

	 

	
 

VAP Funding
Agreement Exhibit B

EXAMPLE:
Business
Job
Shortfall
Calculation

	
 

	
VAP

	
 

	
Soy Energy, LLC 

	
FUNDING AGREEMENT #: 07-VAPIVFGF-009 

	
$ 400,000 L/FL / September 21, 2006 

	
($300,000 0% Loan, $100,000 Forgivable Loan)

	
 

	
 

	
 

	
A.

	
FORGIVABLE
LOAN - JOB SHORTFALL CALCULATION

	
 

	
 

	
 

	
50 jobs
 pledged, 42 jobs attained;     84% of pledged jobs
 attained, 16% shortfall 

	
 

	
 

	
 

	
$75,000
 (forgivable loan amount) x 16% = $12,000

	
 

	
 

	
 

	
 

	
Forgivable Loan Job Shortfall Balance due = $12,000

	
 

	
 

	
B.

	
FORGIVABLE
LOAN – INTEREST PENALTY CALCULATION

	
 

	
 

	
 

	
 

	
CEBA funds
 disbursed on 11-1-00.     Project Completion Date
 was 6-30-03.

	
 

	
 

	
 

	
 

	
Interest penalty = job shortfall balance x
 6% x number of years from disbursement of funds to Project

 Completion Date

	
 

	
 

	
 

	
 

	
($12,000 x
 6% x 2.67 years) = $1,922.40

	
 

	
 

	
 

	
Forgivable Loan Net Interest Penalty due = $1,922.40

	
 

	
 

	
C.

	
LOAN BALANCE
– INTEREST PENALTY CALCULATIONS

	
 

	
 

	
 

	
Loan balance
 as of 7-21-05 = $15,797.58

	
 

	
 

	
 

	
 

	
 

	
84% of
 remaining loan balance stays at 0% interest = ($15,797.58 x .84) = $13,269.97

	
 

	
 

	
16% of
 remaining loan balance changes to 6% interest = ($15,797.58 x .16) = $2,527.61

	
 

	
 

	
 

	
 

	
Interest
 penalty = 16% of remaining loan balance x 6% x 2.67 years

	
 

	
 

	
 

	
 

	
($2,527.61 x
6% x 2.67 years) = $404.92 

	
 

	
 

	
 

	
 

	
Loan Net Interest Penalty due = $404.92

Master FA Exhibit B updated 12-30-05

	
 

	
 

	
D.

	
REPAYMENT
TERMS & SCHEDULE 

	
 

	
 

	
 

	
 

	
1.

	
 Total Net
 Interest Penalty due is $2,327.32
 ($1,922.40 + $404.92).

	
 

	
 

	
 

	
 

	
2.

	
 Total
 Forgivable Loan amount due is $12,000.

	
 

	
 

	
 

	
 

	
3.

	
 Remaining
 Loan Balance as of 7-21-05 will be $15,797.58
 and will be re-amortized to convert 16% of that balance  to 6% interest over
 remaining term of loan.

Master FA Exhibit B updated 12-30-05

EXIBIT B-2

	
 

	
 

	
VAAPFAP FUNDING AGREEMENT

	
 

	
BUSINESS:

	
Soy Energy,
 LLC

	
MASTER CONTRACT NUMBER:

	
#P0609M01093

	
FUNDING AGREEMENT NUMBER:

	
#07-VAPIVFGF-009

	
AWARD TYPE:

	
Loan/Forgivable
 Loan

	
AMOUNT:

	
$400,000

          THIS
VAAPFAP FUNDING AGREEMENT is made by and between the IOWA DEPARTMENT OF
ECONOMIC DEVELOPMENT, 200 East Grand Avenue, Des Moines, Iowa 50309 (“IDED”)
and the business identified above (“Business”), effective as of the effective
as of the latest date stated in the last page of the Master Contract identified
above.

          WHEREAS,
the Business has executed the Master Contract described above with the IDED
pursuant to an Award on the Award Date stated in the Master Contract to the
Business for the Project; and

          WHEREAS,
the Master Contract specifies that for each program funding source the IDED and
the Business shall enter into a Funding Agreement; and

          WHEREAS,
this Funding Agreement contains additional terms and conditions for the award
of VAAPFAP funds and

          NOW,
THEREFORE, the Business accepts the terms and conditions set forth in this Funding
Agreement and the Master Contract for the funding of the Project. In
consideration of the mutual promises contained in the Master Contract and this
VAAPFAP Funding Agreement and other good and valuable consideration, it is
agreed as follows:

1.0     Master Contract. Unless otherwise specified in this VAAPFAP
Funding Agreement, the definitions, terms, conditions, and provisions contained
in the Master Contract are applicable to this VAAPFAP Funding Agreement.

2.0     Definitions. As used in this Agreement, the following
terms shall apply:

          2.1
Agreement Expiration Date. Expiration of this VAAPFAP Funding Agreement
occurs upon the happening of one of the following events, whichever occurs
first:

	
 

	
 

	
 

	
          (a)
 IDED’s determination that the Business has fully met the requirements of the
 VAAPFAP Funding Agreement, including repayment of all amounts due hereunder,
 and IDED closes out this VAAPFAP Funding Agreement.

	
 

	
 

	
 

	
          (b)
 An Event of Default occurs that is not remedied within the time period
 allowed under the Master Contract.

	
 

	
 

	
 

	
          (c)
 If no disbursement of VAAPFAP funds has occurred within twenty-four (24)
 months of the Award Date (as defined in the Master Contract).

	
 

	
 

	
 

	
          (d)
 This VAAPFAP Funding Agreement is terminated upon mutual, written agreement
 of the Business and IDED.

          2.2
VAAPFAP. “VAAPFAP” means the Value-Added Agricultural Products and Processes
Financial Assistance Program established in Iowa Code section 15E.111. The
source of funding for this VAAPFAP Funding Agreement is an appropriation by the
State legislature. 

3.0     Terms of VAAPFAP Award. VAAPFAP funds have
been awarded to assist the Business with the Project. The terms of the VAAPFAP
Award are as follows:

          3.1
Loan. $300,000, 60 months, 0% interest rate

          3.2
Forgivable Loan. $100,000, 36 months

          3.3
Terms of Forgiveness. IDED will, in its sole discretion, determine if
the Business has satisfied the terms of this VAAPFAP Funding Agreement,
including fulfillment of the Job Obligations by the Project Completion Date as
shown in Master Contract Exhibit D, construction of 30 million gallon per year
soy diesel production facility, and production of at least 30 million gallons
of biodiesel. If IDED determines that the Business has satisfied said terms and
has continued to satisfy said terms through the Job Maintenance Period, then
barring any other default, repayment of principal and interest which would
otherwise have accrued for the time period beginning with the Award Date and
ending with the Project Completion Date shall be permanently waived. If IDED
does not waive repayment, the Forgivable Loan shall be repaid as described in
Article 5.2(b) of this VAAPFAP Funding Agreement.

          3.4
Maximum funds available for Project. It is expressly understood and
agreed that the maximum amounts to be paid to the Business by IDED for this
VAAPFAP Funding Agreement shall not exceed the amount stated on page one of
this VAAPFAP Funding Agreement.

          3.5
Promissory note(s). The obligation of the Business to repay the Loan and
Forgivable Loan shall be evidenced by a Promissory Note(s) executed by the
Business. 

          3.6
Business’ Job Obligation. The Business’ Job Obligations are as described in
Master Contract Exhibit D. These jobs shall be maintained through the Project
Maintenance Period. 

4.0     Conditions to Disbursement. In addition to the conditions to
disbursement described in the Master Contract, Business shall meet the
following conditions before IDED will release VAAPFAP funds:

          4.1
Funds to be released upon evidence of an acceptable benefit package that at a
minimum provides for 80% coverage for Health and Dental.

5.0     Default; Remedies upon
Default.

          5.1
The terms of the Master Contract regarding Events of Default and Remedies
govern this VAAPFAP Funding Agreement. The following are additional Events of Default
for this VAAPFAP Funding Agreement: 

	
 

	
 

	
Master Contract # P0609M01093

	
 

	
 

	
Funding Agreement # 07-EZ-010

	
Master FA updated 09-30-05 

          No
other specific default events

          5.2
The following are Default Remedies available to IDED in addition to those
specified in the Master Contract:

          (a)
Repayment of Loan - Failure to Meet Job Obligations. If the Business
meets less that 100% of its Job
Obligations, the IDED may require full repayment of the Loan, as permitted
under the Master Contract. IDED may also elect to allow repayment on a pro rata
basis as described below:

	
 

	
 

	
 

	
If the Business received a
 Loan at a rate below 6% (the annual interest rate for default set by the IDED
 Board), the unpaid principal amount of the Loan may be prorated between the
 percentage of FTE Jobs created/retained and the percentage of the shortfall. 

	
 

	
 

	
 

	
The shortfall principal
 portion may be amortized over the remaining term of the Loan, beginning at
 the Project Completion Date, at a default rate of 6% (the annual interest
 rate set by the IDED Board). Interest will be charged beginning from the date
 Loan proceeds were disbursed to the Community for the Business; interest
 accrued from this date will be due immediately. The pro rata portion of the
 Loan associated with the percentage of FTE Jobs created will be amortized at
 the original Loan rate and term.

          (b)
Repayment of Forgivable Loan - Failure to Meet Job Obligations. If the
Business has fulfilled 50% or more
of its Job Obligations, a pro rata percentage will be forgiven for each new FTE
job created/retained at the time the repayment amount is calculated (e.g. at
the Project Completion Date or the date an Event of Default occurred) Any
balance (shortfall) will be amortized over a two (2) year period (beginning at
the at the time the repayment amount is calculated (e.g. at the Project
Completion Date or the date an Event of Default occurred) at six (6%) percent
interest per annum with equal monthly payments, and, interest will be charged
at six (6%) percent per annum from the date of the first VAAPFAP disbursement
on the shortfall amount with that amount accrued as of the Project Completion Date
being due and payable immediately. 

          (c)
Repayment – Time Allowed. If the IDED has allowed repayment of the
Forgivable Loan on a pro rata basis as described in paragraph “b” above, that
amount is immediately due and payable. If the Business has a current Loan
balance, the amount owed on the Forgivable Loan may be combined with the amount
owed on the Loan to reflect a single monthly payment. This combined loan shall
be repaid over the time period remaining

          (d)
Example. VAAPFAP Funding Agreement Exhibit B is an example of how these
repayment calculations will be applied.

6.0     Reports.

          6.1
The terms of the Master Contract regarding Required Reports are applicable to
this VAAPFAP Funding Agreement.

7.0     Incorporated documents. The following documents are hereby
incorporated by this reference:

	
 

	
 

	
 

	
 

	
1.

	
The Master Contract and
 its Exhibits.

	
 

	
 

	
 

	
 

	
2.

	
VAAPFAP Funding Agreement
 Exhibit A1– Forgivable Loan Promissory Note, and VAAPFAP Funding Agreement
 Exhibit A2 – Loan Promissory Note

	
 

	
 

	
 

	
 

	
3.

	
VAAPFAP Funding Agreement
 Exhibit B - Example: Business Job Shortfall Calculation.

	
 

	
 

	
Master Contract # P0609M01093

	
 

	
 

	
Funding Agreement # 07-EZ-010

	
Master FA updated 09-30-05 

          IN
WITNESS WHEREOF, the parties have executed this VAAPFAP Funding Agreement:

BUSINESS:

	
 

	
 

	
 

	
 

	
BY:

	
/s/ Charles Sand, Chairman

	
 

	
 

	

	
 

	
 

	
Signature

	
 

	
 

	
 

	
 

	
 

	
Charles Sand, Chairman

	
 

	
 

	

	
 

	
 

	
Typed Name and Title

	
 

	
 

	
 

	
 

	
 

	
12-26-06

	
 

	
 

	

	
 

	
 

	
Date

	
 

	
 

	
 

	
IOWA
 DEPARTMENT OF ECONOMIC DEVELOPMENT:

	
 

	
 

	
 

	
 

	
BY:

	
/s/ Mike Blouin

	
 

	
 

	

	
 

	
 

	
Mike Blouin, Director

	
 

	
 

	
 

	
 

	
 

	
1-10-07

	
 

	
 

	

	
 

	
 

	
Date

	
 

	
 

	
Master Contract # P0609M01093

	
 

	
 

	
Funding Agreement # 07-EZ-010

	
Master FA updated 09-30-05 

EXHIBIT B-4

EX FUNDING AGREEMENT

	
 

	
 

	
BUSINESS:

	
Soy Energy,
  LLC

	
COMMUNITY:

	
Cherokee
  County

	
MASTER CONTRACT NUMBER:

	
P0609M01093

	
FUNDING AGREEMENT NUMBER:

	
07-EZ-010

	
ENTERPRISE ZONE NAME:

	
Marcus
  Enterprise Zone EZ-6

	
ZONE CERTIFICATION DATE:

	
April 20,
  2006

	
ZONE EXPIRATION DATE:

	
April 20,
  2016

          THIS
ENTERPRISE ZONE (EZ) FUNDING AGREEMENT is made by and among the IOWA DEPARTMENT
OF ECONOMIC DEVELOPMENT, 200 East Grand Avenue, Des Moines, Iowa 50309
(“IDED”), the business identified above (“Business”), and the community
identified above (“Community”), effective as of the Contract Effective Date
stated in the Master Contract identified above.

          WHEREAS,
the purpose of the EZ Program is to promote new economic development in
economically distressed areas; and

          WHEREAS,
the Community has designated and IDED has certified the Enterprise Zone
identified above; and

          WHEREAS,
eligible businesses locating or located in an Enterprise Zone are authorized
under this program to receive certain tax incentives and assistance and the
Business has located, or will locate, within the certified Enterprise Zone; and

          WHEREAS,
the Enterprise Zone Commission responsible for the above-identified Zone has
recommended approval and IDED has found the Business’ application to be
consistent with the EZ Program’s eligibility requirements; and

          WHEREAS,
the Business has executed the Master Contract described above with the IDED
pursuant to an Award on the Award Date stated in the Master Contract to the
Business for the Project; and

          WHEREAS,
the Master Contract specifies that for each program funding source the IDED and
the Business shall enter into a Funding Agreement; and

          WHEREAS,
this EZ Funding Agreement contains additional terms and conditions for the
award of EZ benefits and

          NOW,
THEREFORE, the Business and Community accept the terms and conditions set forth
in this EZ Funding Agreement and the Master Contract for the funding of the
Project. In consideration of the mutual promises contained in the Master
Contract and this EZ Funding Agreement and other good and valuable
consideration, it is agreed as follows:

1.0 Master Contract. Unless otherwise specified
in this EZ Funding Agreement, the definitions, terms, conditions, and
provisions contained in the Master Contract are applicable to this EZ Funding
Agreement. The following provisions in the Master Contract do not apply to this
EZ Funding Agreement: 

Article
3.1(b) – Definition of “Project Completion Date” and “Job Maintenance Period.”
[The EZ program has different time periods for these activities.]

Article 4.3 - Repayment obligation. [No promissory note required for tax credits.]

Article 5.1(c) – Promissory Notes.
[Execution of note is
not a condition precedent to receipt of tax credit benefits]

Article 5.1(g) – Security Documents. [Execution of Security
Documents is not a condition precedent to receipt of tax credit benefits].

Article 5.1(m) – Requests for disbursement. [Not required for
tax credit program benefits.]

Article 5.2 – Prior costs. [Not applicable to tax credit
program benefits.]

Article 5.3 – Cost variation. [Not applicable to tax credit
program benefits.]

Article 5.5 – Investment of Award Proceeds. [No proceeds in tax credit programs.]

Article 6 – Security, Cross-collateralization. . [Not applicable to tax credit
program benefits.]

Article 9.1(a) – Nonpayment as an Event of
Default. [Not
applicable because there are no loan payments in tax credit programs].

Article 9.1(c) – Noncompliance with Security
Documents as
an Event of Default. [Not applicable because there are no Security Documents
required in tax credit programs].

Article 9.1(g) – Lien Deficiencies as an
Event of Default.
[Not applicable because there are no Security Documents required in tax credit
programs.]

2.0 Definitions. As used in this EZ Funding
Agreement, the following terms shall apply:

          2.1
Agreement Expiration Date. Expiration of this EZ Funding Agreement
occurs upon the happening of one of the following events, whichever occurs
first:

	
 

	
 

	
 

	
(a) IDED’s determination
  that the Business has fully met the requirements of the EZ Funding Agreement,
  including meeting its Job Obligations, and IDED closes out this EZ Funding
  Agreement.

	
 

	
 

	
 

	
(b) An Event of Default
  occurs that is not remedied within the time period allowed under Article 5.0
  of this EZ Funding Agreement.

	
 

	
 

	
 

	
(c) This EZ Funding
  Agreement is terminated upon mutual, written agreement of the Business, the
  Community and IDED.

          2.2
EZ Program. “EZ Program” means the Enterprise Zone Program. The EZ
Program is authorized by Iowa
Code (2005) sections 15E.191 through 15E.196.

	
 

	
 

	
Master Contract # P0609M01093

	
 

	
 

	
Funding Agreement # 07-EZ-010

	
Master FA updated 09-30-05 

          2.3
EZ Award. “EZ Award” means IDED’s approval of the Business’s Financial
Assistance Application for the Project. This EZ Award authorizes the Business
to receive EZ Program benefits.

          2.4
“Annual Base Rent”. “Annual Base Rent” means the Business’ annual lease
payment minus taxes, insurance, and operating or maintenance expenses.

          2.5
“Commission” or
“Enterprise Zone Commission”
or “Enterprise Zone Commission” means the Enterprise Zone commission
established by the Community responsible for the certified Enterprise Zone.

          2.6
“Enterprise Zone.” “Enterprise Zone” means the site within the Community
certified by the IDED Board for the purpose of attracting private investment.

          2.7
Project Completion Date. “Project Completion Date” means: (1) the first
date upon which the average annualized production of finished product for the
preceding ninety-day period at the manufacturing facility operated by the
Business within the Enterprise Zone is at least fifty percent of the initial
design capacity of the facility; or (2) for existing or non-manufacturing
facilities, the date of completion of all improvements included in the Project.

          2.8
“Project Jobs” means the number of new Full-time Equivalent (FTE) Jobs created by the
location or expansion of the Business in the Enterprise Zone, as shown in
Master Contract Exhibit D. 

3.0 Enterprise Zone Benefits.

          3.1
Benefits
Available. The following Enterprise Zone benefits are available to
the Business under this EZ Funding Agreement: 

          (a)
Supplemental
New Jobs Credit. As provided in Iowa Code section 15.331, the
Business is eligible to claim a supplemental new jobs credit from withholding
in an amount equal to 11⁄2 percent of the gross wages paid by the Business. The
supplemental new jobs credit available under this program is in addition to and
not in lieu of the program and withholding credit of 11⁄2 percent authorized
under Iowa Code chapter 260E. 

          Additional
new jobs created by the project, beyond those that were agreed to in Article 4
of this Agreement, are eligible for the additional 1 1⁄2 percent withholding
credit as long as those additional jobs meet the local Enterprise Zone wage
eligibility criteria and are an integral part or a continuation of the Project.
Approval and administration of the supplemental new jobs credit shall follow
existing procedures established under Iowa Code chapter 260E. 

          (b)     
Investment
Tax Credit. 

	
 

	
 

	
 

	
(i) The Business may claim
  an investment tax credit as provided in Iowa Code section 15.333. An
  investment tax credit may be claimed of up to a maximum of ten percent (10%)
  of the new investment which is directly related to the Project Jobs created
  by the location or expansion of the Business in the Enterprise Zone. The
  Business may not claim an investment tax credit for capital expenditures
  above the amount stated in Article 4.3 of this EZ Funding Agreement. The
  credit is to be taken in the year the qualifying asset is placed in service.
  Any credit in excess of the tax liability for the tax

	
 

	
 

	
Master Contract # P0609M01093

	
 

	
 

	
Funding Agreement # 07-EZ-010

	
Master FA updated 09-30-05 

	
 

	
 

	
 

	
year may be credited to
  the tax liability for the following seven years or until depleted, whichever
  occurs earlier.

	
 

	
 

	
 

	
(ii)
  The tax credit shall be amortized equally over a five-year period which the
  department will, in consultation with the eligible business, define. The
  five-year amortization period is specified below:

	
 

	
 

	
 

	
     Amortization
  Schedule

	
 

	
 

	
 

	
July 1, 2007 – June 30, 2008

	
 

	
$907,480

	 

	
 

	 

	
July 1, 2008 – June 30, 2009

	
 

	
$907,480

	 

	
 

	 

	
July 1, 2009 – June 30, 2010

	
 

	
$907,480

	 

	
 

	 

	
July 1, 2010 – June 30, 2011

	
 

	
$907,480

	 

	
 

	 

	
July 1, 2011 – June 30, 2012

	
 

	
$907,480

	
 

	
 

	
 

	
(iii) EZ Funding Agreement
  Exhibit C, “Investment Tax Credit Amortization Schedule Examples,”
  illustrates how the 5-year amortization requirement will be applied.

	
 

	
 

	
 

	
(iv) The capital
  expenditures eligible for the investment tax credit are:

	
 

	
 

	
 

	
 

	
1.

	
 The purchase price of
  real property and any existing buildings and structures located on the real
  property.

	
 

	
 

	
 

	
 

	
2.

	
The cost of
  improvements made to real property which is used in operation of the
  Business.

	
 

	
 

	
 

	
 

	
3.

	
 The costs of
  manufacturing machinery and equipment and computers, as defined in Iowa Code
  section 427A.1(1) “e” and “j,” which are purchased for use in the operation
  of the Business and which the purchase price have been depreciated in
  accordance with generally accepted accounting principles.

	
 

	
 

	
 

	
 

	
4.

	
 Ten (10) years of
  Annual Base Rent payments provided the cumulative cost of these payments does
  not exceed the cost of the land and the third-party developer’s costs to
  build or renovate the building. Annual base rent shall only be considered
  when the project includes the construction of a new building or the major
  renovation of an existing building.

          (c)
Refund
of Sales, Service And Use Taxes Paid To Contractors Or Subcontractors.
The Business is eligible for a refund of sales, service and use taxes paid to contractors
and subcontractors as authorized in Iowa Code section 15.331A. 

	
 

	
 

	
 

	
 

	
(i)

	
The Business may apply for
  a refund of the sales and use taxes paid under Iowa Code chapters 422 and 423
  for gas, electricity, water or sewer utility services, goods, wares, or
  merchandise, or on services rendered, furnished, or performed to or for a
  contractor or subcontractor and used in the fulfillment of a written contract
  relating to the construction or equipping of a facility within the Enterprise
  Zone.

	
 

	
 

	
 

	
 

	
(ii)

	
Taxes attributable to
  intangible property and furniture and furnishings shall not be refunded. 

          To
receive a refund of the sales, service and use taxes paid to contractors or
subcontractors, the Business must, within one year after Project Completion,
make an application to the Department of Revenue. 

	
 

	
 

	
Master Contract # P0609M01093

	
 

	
 

	
Funding Agreement # 07-EZ-010

	
Master FA updated 09-30-05 

          3.2
Duration
Of Benefits. The Enterprise Zone designation shall remain in
effect for ten years following the date of certification. Any state or local
incentives or assistance that may be conferred must be conferred before the
designation expires. However, the benefits of the incentive or assistance may
continue beyond the expiration of the Enterprise Zone designation.

          3.3
Benefits
Not Available. The following Enterprise Zone benefits are not available to the Business under this agreement:  

	
 

	
 

	
 

	
 

	
(a)

	
Value-Added Property Tax Exemption.

	
 

	
 

	
 

	
 

	
(b)

	
Additional Research Activities Credit.

	
 

	
 

	
 

	
 

	
(c)

	
Refund of Taxes Attributable to
  Racks, Shelving, and Conveyor Equipment.

4.0 Conditions to Receipt of
Enterprise Zone Benefits.

The
Enterprise Zone Benefits authorized under this EZ Funding Agreement are
available to the Business provided the Business, (and where applicable, the
Community) satisfies each of the following conditions:

          4.1
Job Creation And Maintenance. The Business shall create the Project Jobs
within three (3) years of the Effective Date (defined in the Master Contract).
The Business shall maintain the Project Jobs for a period of ten (10) years
from the date the Business first meets its Job Obligations as shown in Master
Contract Exhibit D.

          4.2
Average Wage. The Business shall pay an average starting wage for the
Project Jobs, as shown in Master Contract Exhibit D.

          4.3
Investment. Within three (3) years of the Effective Date (as defined in
the Master Agreement), the Business shall make a capital investment of
$45,374,000 within the Enterprise Zone, as defined in 3.1(c).

          4.4
Medical And Dental Insurance. The Business provides all full-time employees
with the option of choosing one of the following:

(a)
The Business pays 80 percent of both of the following: 

	
 

	
 

	
 

	
 

	
(i)

	
the
  cost of a standard medical insurance plan, and 

	
 

	
 

	
 

	
 

	
(ii)

	
the
  cost of a standard dental insurance plan or an equivalent plan; 

(b)
The Business provides the employee with a monetarily equivalent plan to the
plan provided in “a.”

          4.5
Business Retention. The Business shall have and maintain Project
operations contemplated by this Agreement within the Community at least through
the Agreement Expiration Date.

5.0 Events of Default; Notice of
Default; Repayment Provisions.

          5.1
Events of Default. The terms of the Master Contract regarding Events of
Default and Remedies govern this EZ Funding Agreement. 

	
 

	
 

	
Master Contract # P0609M01093

	
 

	
 

	
Funding Agreement # 07-EZ-010

	
Master FA updated 09-30-05 

          5.2
Notice of Default. The
following Notice of Default and repayment provisions supersede the Notice of
Default and repayment provisions specified in the Master Contract:

          (a)
From
Department. If, through the Mid-Year Status Report, End-of-Year
Status Report, or other means, the IDED has reason to believe the Business is
in default of the terms of this Agreement, the IDED will issue a written Notice
of Default to the Business, setting forth the nature of the default in
reasonable specificity, and providing therein a reasonable period of time,
which shall not be less than 30 days from the date of the Notice of Default, in
which the Business shall have an opportunity to cure, provided that cure is
possible and feasible. A copy of any Notice of Default will also be provided to
the Community and Department of Revenue.

          (b)
From
Community. If, through monitoring, auditing or other means, the
Community has reason to believe the Business is in default of the terms of this
Agreement, the Community will issue a written Notice of Default to the
Business, setting forth the nature of the default in reasonable specificity,
and providing therein a reasonable period of time, which shall not be less than
30 days from the date of the Notice of Default, in which the Business shall
have an opportunity to cure, provided that cure is possible and feasible. A
copy of any Notice of Default will also be provided to the IDED and Department
of Revenue.

          5.3
Repayment Provisions. If the Business has received incentives or assistance under the EZ
Program and fails to meet and maintain any one of the requirements of the EZ
Program, the EZ Program Administrative Rules (261 IAC chapter 59) or any term
of this EZ Funding Agreement, the Business is subject to repayment of all or a
portion of the incentives and assistance that it has received, as detailed
below:

          (a)
Job
creation. If the Business does not meet its job creation and
maintenance requirement, repayment shall be calculated as follows:

	
 

	
 

	
 

	
 

	
(i)

	
If the Business has met 50
  percent or less of the requirement, the Business shall repay the same
  percentage in benefits as the Business failed to create in jobs.

	
 

	
 

	
 

	
 

	
(ii)

	
If the Business has met
  more than 50 percent but not more than 75 percent of the requirement, the
  Business shall repay one-half of the percentage in benefits as the Business
  failed to create in jobs.

	
 

	
 

	
 

	
 

	
(iii)

	
If the Business has met
  more than 75 percent but not more than 90 percent of the requirement, the
  Business shall repay one-quarter of the percentage in benefits as the
  Business failed to create in jobs.

	
 

	
 

	
 

	
 

	
(iv)

	
If the Business has not
  met the minimum job creation requirement of ten (10) new full-time jobs, the
  Business shall repay all of the incentives and assistance that it has
  received.

          (b)
Wages
and benefits. If the Business fails to comply with the wage or
benefit requirements, the Business shall not receive Enterprise Zone benefits
for each year during which the Business is not in compliance. 

          (c)
Capital
Investment. If the Business does not meet the capital investment
requirement, repayment shall be calculated as follows:

	
 

	
 

	
 

	
 

	
(i)

	
If the Business has met 50
  percent or less of the requirement, the Business shall repay the same
  percentage in benefits as the Business failed to invest.

	
 

	
 

	
Master Contract # P0609M01093

	
 

	
 

	
Funding Agreement # 07-EZ-010

	
Master FA updated 09-30-05 

	
 

	
 

	
 

	
 

	
(ii)

	
If the Business has met
  more than 50 percent but not more than 75 percent of the requirement, the
  Business shall repay one-half of the percentage in benefits as the Business
  failed to invest.

	
 

	
 

	
 

	
 

	
(iii)

	
If the Business has met
  more than 75 percent but not more than 90 percent of the requirement, the
  Business shall repay one-quarter of the percentage in benefits as the
  Business failed to invest.

	
 

	
 

	
 

	
 

	
(iv)

	
If the Business has not
  met the minimum investment requirement of $500,000, the Business shall repay
  all of the incentives and assistance that it has received.

          (d)
Department
of Revenue; Community Recovery. Once it has been established,
through the Business’ annual certification, monitoring, audit or otherwise,
that the Business is required to repay all or a portion of the incentives
received, the Department of Revenue and the Community shall collect the amount
owed. The Community has the authority, pursuant to the EZ Program, to take
action to recover the value of taxes not collected as a result of the exemption
provided by the Community to the Business. Department of Revenue has the
authority, pursuant to the EZ Program, to recover the value of state taxes or
incentives provided under the EZ Program. The value of state incentives
provided under the EZ Program includes applicable interest and penalties. 

6.0 Incorporated documents. The following
documents are hereby incorporated by this reference:

	
 

	
 

	
 

	
 

	
1.

	
The Master Contract number
  and its Exhibits.

	
 

	
 

	
 

	
 

	
2.

	
EZ Funding Agreement
  Exhibit A, “Enterprise Zone Commission Resolution Approving the Business’s
  Enterprise Zone Application.” 

	
 

	
 

	
 

	
 

	
3.

	
EZ Funding Agreement
  Exhibit C, “Investment Tax Credit Amortization Schedule Examples.” 

          IN
WITNESS WHEREOF, the parties have executed this EZ Funding Agreement:

BUSINESS:

	
 

	
 

	
 

	
 

	
 

	
BY:

	
/s/ Charles Sand, Chairman

	
 

	
 

	 

	
 

	
 

	
 

	
Signature

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Charles Sand, Chairman

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Typed Name and Title

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
12-26-06

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Date

	
 

	
 

	
 

	
Master Contract # P0609M01093

	
 

	
 

	
Funding Agreement # 07-EZ-010

	
Master FA updated 09-30-05 

IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT:

	
 

	
 

	
 

	
 

	
 

	
BY:

	
/s/ Mike Blouin

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Mike Blouin, Director

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1-10-07

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Date

	
 

COMMUNITY:

	
 

	
 

	
 

	
 

	
 

	
BY:

	
/s/ Dean Schmidt

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Signature

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Dean Schmidt, Chairman

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Typed Name and Title

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
01-03-2007

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
Date

	
 

	
 

	
 

	
Master Contract # P0609M01093

	
 

	
 

	
Funding Agreement # 07-EZ-010

	
Master FA updated 09-30-05 

EZ FUNDING AGREEMENT

EXHIBIT A

Enterprise Zone Commission Resolution

Approving the Business’s Enterprise Zone Application

RESOLUTION NUMBER #3 

RESOLUTION OF
THE CHEROKEE COUNTY ENTERPRISE ZONE COMMISSION (hereafter referred to as the
“Commission”) APPROVING SOY ENERGY’S APPLICATION TO THE IOWA DEPARTMENT OF
ECONOMIC DEVELOPMENT (hereafter referred to as the “Department”) FOR THE
PURPOSES OF RECEIVING BENEFITS UNDER THE ENTERPRISE ZONE PROGRAM as described
in 2001 Iowa Code Section 15E.191 through 15E.196 and all subsequent amendments
(hereafter referred to as the “Enterprise Zone Program” or the “Act”) 

WHEREAS, Soy
Energy, LLC proposes to locate a facility in Cherokee
County, Marcus Enterprise Zone EZ-6 (hereafter referred to as the
“Enterprise Zone”) to receive benefits authorized under the Enterprise Zone
Program; and 

WHEREAS, Soy
Energy has submitted an application to the Commission demonstrating that it
meets the requirements of the Enterprise Zone Program; and 

WHEREAS, Soy
Energy has supplied the Commission with information meeting the requirements of
the Act and applicable rules of Chapter 261 of the Iowa Administrative Code
which includes the long term strategic plan for the business showing labor and
infrastructure needs; the benefits the business will bring to the area;
examples of why the business should be considered a good business enterprise;
the impact the business will have on other Iowa businesses in competition with
it; and an affidavit that it has not violated state or federal environmental
and worker safety statutes, rules and regulations within the last five years;
and 

WHEREAS, The
Commission has reviewed the Soy Energy, LLC application and all supporting
documents. 

NOW THEREFORE
BE IT RESOLVED BY THE CHEROKEE COUNTY ENTERPRISE ZONE COMMISSION, that 

	
 

	
 

	
1.

	
The
  Commission certifies that the attached application from Soy Energy, LLC meets
  or exceeds the requirements of the Enterprise Zone Program and the Commission
  hereby approves the application based on the following representations by the
  Soy Energy, LLC:

	
 

	
 

	
 

	
 

	
a.

	
Soy Energy,
  LLC is not a retail business.

	
 

	
 

	
 

	
 

	
b.

	
Soy Energy,
  LLC will offer all of its full time project-related employees the option of
  selecting a health and dental insurance benefits plan, with 80% of the cost
  of those plans for single employee coverage to be paid for by the business,
  or a plan that is the monetarily equivalent of the aforementioned plan.

	
 

	
 

	
 

	
 

	
c.

	
Soy Energy,
  LLC will create at least 10 new project-related jobs within three years of
  the effective date of the agreement between the Department and Cherokee
  County.

	
 

	
 

	
 

	
 

	
d.

	
Soy Energy,
  LLC will pay an average starting wage per hour for the new project-related
  jobs and maintain these jobs for at least ten years. 

	
 

	
 

	
 

	
 

	
e.

	
Soy Energy,
  LLC will make a capital investment of at least $500,000 within three years of
  the effective date of the agreement between the Department and Cherokee
  County. 

	
 

	
 

	
2.

	
All other
  resolutions or actions on the part of this Enterprise Zone Commission that
  may conflict with previous approval of an application from Soy Energy, LLC or
  that may conflict with this resolution are herewith repealed. 

	
 

	
 

	
3.

	
The
  Chairperson of the Commission is hereby directed to execute said application
  and forward the application to the Iowa Department of Economic Development
  requesting approval by the State of Iowa. 

PASSED AND
APPROVED THIS 25TH DAY OF AUGUST, 2006 

	
 

	
 

	
/s/ Dean
  Schmidt

	
 

	 

	
 

	
Dean
  Schmidt, Cherokee County Enterprise Zone Chairman

	
 

EZ Funding Agreement

Exhibit C  

Investment Tax Credit Amortization Schedule
Examples

Background Information: 

Effective July 1, 2005,
Investment Tax Credits (or Insurance Premium Tax Credits) awarded to a Business
by the Iowa Department of Economic Development must be amortized equally over a
5-year period. The Department will determine the amortization schedule and
include it in the Business’ funding agreement. 

Please note Investment Tax
Credits (or Insurance Premium Tax Credits) are earned
when the corresponding asset (e.g. the building, a piece of machinery & equipment,
etc.) is placed in service. “Placed in service” typically corresponds with the
point in time when the Business can start depreciating the asset for tax
purposes. 

Earned Investment Tax
Credits (or Insurance Premium Tax Credits) which cannot be used because of the
amortization schedule or because the credits exceed the Business’ tax liability
for that tax year may be carried forward for up to seven additional tax years. 

Example #1

In this example, the
Business is eligible to receive an Investment Tax Credit (ITC) in the amount of
$100,000. The ITC is earned on December 15, 2005 and may be carried forward
until the tax year in which December 15, 2012 falls. The Business’ ITC
amortization schedule follows: 

	
 

	
 

	
 

	
Fiscal Year 2007 - July 1,
  2006 – June 30, 2007

	
$20,000

	
 

	
Fiscal Year 2008 - July 1,
  2007 – June 30, 2008

	
$20,000

	
 

	
Fiscal Year 2009 - July 1,
  2008 – June 30, 2009

	
$20,000

	
 

	
Fiscal Year 2010 - July 1,
  2009 – June 30, 2010

	
$20,000

	
 

	
Fiscal Year 2011 - July 1,
  2010 – June 30, 2011

	
$20,000

	
 

As the ITC was earned in the
first year, the Business may claim up to $20,000 on its tax return for that tax
year. The Business’ tax liability for that tax year is $15,000 therefore; the
Business will carry forward $5,000 of unused credits. 

	
 

	
 

	
 

	
ITC Earned - Total

	
$100,000

	
 

	
 

	
 

	
ITC Available to be Taken
  based on the Amortization Schedule

	
$20,000 (FY 2006)

	
Less ITC Claimed on Current Year’s Tax Return

	
$15,000

	
 

	 

	 

	
 

	
ITC to be Carried Forward into Future Tax Year

	
$  5,000

	
 

The following year the
Business may claim up to $25,000 in ITCs on its tax return; $5,000 being
carried forward from last year plus another $20,000 based on the amortization
schedule. The Business’ tax liability for the current tax year is $25,000. 

	
 

	
 

	
 

	
ITC Earned - Total

	
$100,000

	
 

	
Less ITC Claimed to Date

	
$  15,000

	
 

	 

	 

	
 

	
ITC Remaining - Total

	
$  85,000

	
 

September 14, 2005

	
 

	
 

	
 

	
 

	
ITC Available to be Taken
  based on the Amortization Schedule

	
$20,000

	
 (FY 2007)

	
 

	
Plus ITC Carried Forward from Previous Year

	
$  5,000

	
 

	
 

	
Less ITC Claimed on Current Year’s Tax Return

	
$25,000

	
 

	
 

	 

	 

	
 

	
 

	
ITC to be Carried Forward into Future Tax Year

	
$
          0

	
 

	
 

The Business would be able
to continue to take tax credits based on the amortization schedule and its tax
liability each year. If this example were to continue, the tax credits could
continue to be claimed until they are exhausted or until the carry forward
period expires in the tax year in which December 15, 2012 falls. 

Example #2

In this example, the
Business is eligible to receive an Investment Tax Credit (ITC) in the amount of
$500,000. The ITC is earned on February 15, 2008 and may be carried forward
until the tax year in which February 15, 2015 falls. The Business’ ITC
amortization schedule follows: 

	
 

	
 

	
 

	
Fiscal Year 2007 - July 1,
  2006 – June 30, 2007

	
$100,000

	
 

	
Fiscal Year 2008 - July 1,
  2007 – June 30, 2008

	
$100,000

	
 

	
Fiscal Year 2009 - July 1,
  2008 – June 30, 2009

	
$100,000

	
 

	
Fiscal Year 2010 - July 1,
  2009 – June 30, 2010

	
$100,000

	
 

	
Fiscal Year 2011 - July 1,
  2010 – June 30, 2011

	
$100,000

	
 

As the ITC was earned in the
third year of the amortization schedule, the Business may claim up to $300,000
on its tax return for that tax year ($100,000 per year for 3 years). The
Business’ tax liability for that tax year is $50,000 therefore; the Business will
carry forward $250,000 of unused credits. 

	
 

	
 

	
 

	
 

	
ITC Earned - Total

	
$500,000

	
 

	
 

	
 

	
 

	
 

	
 

	
ITC Available to be Taken
  based on the Amortization Schedule

	
$300,000 

	
 (FY 2006 – FY 2008)

	
Less ITC Claimed on Current Year’s Tax Return

	
$  50,000

	
 

	
 

	 

	 

	
 

	
 

	
ITC to be Carried Forward into Future Tax Year

	
$250,000

	
 

	
 

The following year the
Business may claim up to $350,000 in ITCs on its tax return; $250,000 being
carried forward from last year plus another $100,000 based on the amortization
schedule. The Business’ tax liability for the current tax year is $60,000. 

	
 

	
 

	
 

	
ITC Earned - Total

	
$500,000

	
 

	
Less ITC Claimed to Date

	
$  50,000

	
 

	 

	 

	
 

	
ITC Remaining - Total

	
$450,000

	
 

	
 

	
 

	
 

	
ITC Available to be Taken
  based on the Amortization Schedule

	
$100,000 

	
 (FY 2009)

	
Plus ITC Carried Forward from Previous Year

	
$250,000

	
 

	
Less ITC Claimed on Current Year’s Tax Return

	
$  60,000

	
 

	 

	 

	
 

	
ITC to be Carried Forward into Future Tax Year

	
$290,000

	
 

The following year the
Business may claim up to $390,000 in ITCs on its tax return; $290,000 being
carried forward from last year plus another $100,000 based on the amortization
schedule. The Business’ tax liability for the current tax year is $50,000. 

	
 

	
 

	
 

	
ITC Earned - Total

	
$500,000

	
 

	
Less ITC Claimed to Date

	
$110,000

	
 

	 

	 

	
 

	
ITC Remaining - Total

	
$390,000

	
 

	
 

	
 

	
 

	
ITC Available to be Taken
  based on the Amortization Schedule

	
$100,000 (FY 2010)

	
Plus ITC Carried Forward from Previous Year

	
$290,000

	
 

	
Less ITC Claimed on Current Year’s Tax Return

	
$  50,000

	
 

	
ITC to be Carried Forward into Future Tax Year

	
$340,000

	
 

	 

	 

	
 

September 14, 2005 

After FY 2010, the Business
is no longer subject to the amortization schedule and therefore, it would be
able to continue to take tax credits based on its tax liability each year. If
this example were to continue, the tax credits could continue to be claimed
until they are exhausted or until the carry forward period expires in the tax
year in which February 15, 2015 falls. 

September 14, 2005 

DESCRIPTION OF THE PROJECT AND AWARD BUDGET
(EXHIBIT C)

	
 

	
 

	
 

	
 

	
Name of
 Business:

	
Soy Energy, LLC

	
 

	
 

	
Contract
 Number:

	
P0609M01093

PROJECT DESCRIPTION

Soy Energy, LLC will
construct a 30 million gallon per year biodiesel facility in Marcus. The
project involves land acquisition, site preparation, building construction,
acquisition of machinery and equipment, furniture and fixture purchases, and
working capital including inventory. The Business will create 25 full time
equivalent positions as a result of this project. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
VAP-IVF

	
 

	
HQJC

	
 

	
 

	

	
 

	

	
Project Completion Date:

	
 

	
September 30, 2009

	
 

	
September 30, 2009

	
 

	
 

	
 

	
 

	
 

	
Job Maintenance Period:

	
 

	
September 30, 2011

	
 

	
Once the 25 new-jobs pledge
 has been achieved, the jobs will need to be maintained for an additional 10
 years.

AWARD BUDGET

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SOURCE OF FUNDS

	
 

	
Amount

	
 

	
 

	
 

	
USE OF FUNDS

	
 

	
Cost

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
 

	
 

	 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
IDED Programs

	
 

	
 

	
 

	
 

	
 

	
 

	
*Land Acquisition

	
 

	
$

	
250,000

	
 

	
VAAPFAP

	
 

	
$

	
400,000

	
 

	
loan/forgivable loan

	
 

	
*Site Preparation

	
 

	
$

	
1,605,000

	
 

	
EZ Program Benefits

	
 

	
 

	
1 See Note

	
 

	
 

	
 

	
*Building Acquisition

	
 

	
$

	
300,000

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
*Building Construction

	
 

	
$

	
29,000,000

	
 

	
Business/investors

	
 

	
$

	
31,475,400

	
 

	
equity

	
 

	
 

	
 

	
 

	
 

	
 

	
Private sources

	
 

	
$

	
22,283,600

	
 

	
loan

	
 

	
*Mfg Machinery and
 Equipment

	
 

	
$

	
12,874,000

	
 

	
Property Tax Rebate

	
 

	
$

	
1,950,000

	
 

	
equity

	
 

	
Other Machinery and
 Equipment

	
 

	
$

	
435,000

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
*Computer Hardware

	
 

	
$

	
25,000

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Computer Software

	
 

	
$

	
50,000

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Furniture and Fixtures

	
 

	
$

	
20,000

	
 

	
1 $5,269,900 (estimated value)

	
 

	
 

	
 

	
 

	
 

	
 

	
Working Capital

	
 

	
$

	
6,830,000

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Inventory

	
 

	
$

	
3,175,000

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Job Training

	
 

	
$

	
225,000

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Rail Improvements

	
 

	
$

	
1,320,000

	
 

	
 

	
 

	 

	 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SUB TOTAL

	
 

	
$

	
56,109,000

	
 

	
 

	
 

	
SUBTOTAL

	
 

	
$

	
56,109,000

	
 

	
 

	
 

	
 

	
 

	
 

	
*
 included as capital investment if awarded tax credit program

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SUB
TOTAL 

	
 

	
$

	
0

	
 

	
 

	
 

	
SUB
TOTAL 

	
 

	
$

	
0

	
 

	
TOTAL ALL
 FUNDS

	
 

	
$

	
56,109,000

	
 

	
 

	
 

	
 

	
 

	
$

	
56,109,000

	
 

EXHIBIT D – JOB OBLIGATIONS 

Soy Energy, LLC

This Project has been
awarded benefits from the Value-Added Agricultural Products and Processes
Financial Assistance Program (VAAPFAP) and Enterprise Zone (EZ) program(s). The
charts below outline the contractual job obligations related to this Project. 

Data in the “Employment
Base” column has been verified by the Department and reflects the employment
characteristics of the facility receiving funding before this award was made.
Jobs to be retained as a part of this Project must be included in these
calculations. 

Data in the “Jobs To Be
Created” column outlines the new full-time jobs (including their wage
characteristics) that must be added to the employment base and, if applicable,
statewide employment base as a result of this award. 

At the Project Completion
Date and through the Project Maintenance Date, the Business must achieve (at a
minimum) the numbers found in the “Total Job Obligations” column. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
VAAPFAP JOB OBLIGATIONS

	
 

	
Employment 

 Base

	
 

	
Jobs 

 To Be Created

	
 

	
Total

 Job

 Obligations

	
Project
 Completion Date: 09/30/2009

 Project Maintenance Date: 09/30/2011

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total employment at project location

	
 

	
0

	
 

	
25

	
 

	
25

	
Average Wage of total employment at project location

	
 

	
N/A

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Qualifying wage threshold requirement (per hr)

	
 

	
$16.20(130%)

	
 

	
 

	
 

	
 

	
Benefit value (per hr)

	
 

	
$3.47

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Number of jobs at or above qualifying wage

	
 

	
N/A

	
 

	
N/A

	
 

	
N/A

	
Average Wage of jobs at or above qualifying wage

	
 

	
N/A

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Number of jobs at or above qualifying wage w/benefits

	
 

	
0

	
 

	
25

	
 

	
25

	
Average wage of jobs at or above qualifying wage

 w/benefits

	
 

	
N/A

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
EZ JOB OBLIGATIONS

	
 

	
Employment

 Base

	
 

	
Jobs

 To Be Created

	
 

	
Total

 Job

 Obligations

	
Project
 Completion Date: 09/30/2009

 Project Maintenance Date: 09/30/2019

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total employment at project location

	
 

	
0

	
 

	
25

	
 

	
25

	
Average Wage of total employment at project location

	
 

	
N/A

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Qualifying wage (per hr)

	
 

	
$11.22(90%)

	
 

	
 

	
 

	
 

	
Benefit value (per hr)

	
 

	
N/A

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Number of jobs at or above qualifying wage

	
 

	
0

	
 

	
25

	
 

	
25

	
Average Wage of jobs at or above qualifying wage

	
 

	
N/A

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Number of jobs at or above qualifying wage w/benefits

	
 

	
N/A

	
 

	
N/A

	
 

	
N/A

	
Average wage of jobs at or above qualifying wage

 w/benefits

	
 

	
N/A

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Notes re: Qualifying Wages

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1.

	
If
 the Benefit Value was added to the base wage to meet program wage threshold
 eligibility requirements, then any reduction in the Benefit Value during the
 life of the Contract must be compensated for with salary to ensure that the
 Qualifying Wage rates are met. 

	
 

	
 

	
2.

	
Bonus or
 commission payments are not included when calculating the Qualifying Wage
 rate. 

	
 

	
 

	
Jobs Created or Retained through this Project

	
Soy Energy LLC

 Contract #: P0609M01093

Below is a
list of the jobs that must be retained and/or created as a result of this
Project. A “retained job” is an
existing job that would be eliminated or moved to another state if the project
did not proceed in Iowa. A “created job”
means the number of new FTE Jobs the Business will add over and above the Business’s Employment Base and, if
applicable, Statewide Employment Base.
“ Qualifying jobs” are those
created or retained jobs that qualify for program funding. “Non-qualifying jobs” are those jobs
created or retained by the project that do not qualify for funding, but would
not be created or retained if the Project did not proceed. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
PROJECT
JOBS 

	
  

	
VAAPFAP/IVF

$16.20 

	
  

	
Enterprise Zone

$11.22 

	
  

	 

	 

	 

	 

	 

	 

	
Job
Title 

	
  

	
#
of Jobs 

	
  

	
Type
of Job:

Created (C) or

Retained (R) 

	
  

	
Starting
or

Current Hourly

Wage 

	
  

	
Avg.
Benefit

Value 

	
  

	
Qualifying 

	
  

	
Non-Qualifying 

	
  

	
Qualifying 

	
  

	
Non-Qualifying 

	
  

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
General Manager

	
 

	
1

	
 

	
C

	
 

	
$56.69

	
 

	
$3.47

	
 

	
1

	
 

	
 

	
 

	
1

	
 

	
 

	
 

	
Plant Manager

	
 

	
1

	
 

	
C

	
 

	
$36.06

	
 

	
$3.47

	
 

	
1

	
 

	
 

	
 

	
1

	
 

	
 

	
 

	
Managers

	
 

	
3

	
 

	
C

	
 

	
$31.25

	
 

	
$3.47

	
 

	
3

	
 

	
 

	
 

	
3

	
 

	
 

	
 

	
Administrative & Tech

	
 

	
4

	
 

	
C

	
 

	
$17.79

	
 

	
$3.47

	
 

	
4

	
 

	
 

	
 

	
4

	
 

	
 

	
 

	
Production Leaders

	
 

	
2

	
 

	
C

	
 

	
$20.67

	
 

	
$3.47

	
 

	
2

	
 

	
 

	
 

	
2

	
 

	
 

	
 

	
Perators and Maint workers

	
 

	
  14

	
 

	
C

	
 

	
$17.79

	
 

	
$3.47

	
 

	
14

	
 

	
 

	
 

	
14

	
 

	
 

	
 

	
Total Jobs Created:

	
 

	
  25

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total Jobs Retained:

	
 

	
   0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Totals:

	
 

	
  25

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
25

	
 

	
0

	
 

	
25

	
 

	
0

	
 

	
 

	
 

	
Business
 Employment Base:

	
Statewide
 Employment Base:

Job Performance Obligations

VAP-IVF: As a
result of this project, Soy Energy LLC will create 25 new full-time equivalent
(FTE) jobs at the Marcus location. 25 of the created project jobs will have
starting wages including benefits that meet or exceed $16.20 (130%) per hour.
The Average wage, not including benefits, of the 25 qualifying project jobs
will be at least $21.96 per hour.

HQJC: By the
Project Completion Date, the project shall have created 25 new jobs, all of
which shall have an average wage equal to or greater than $21.96 per hour.

Oct-06

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