Document:

EXHIBIT
10.13

 

AMENDED AND RESTATED

GROUND LEASE AGREEMENT

 

 

BUNGE MILLING, INC.,

AS LANDLORD

 

-and-

 

BIOFUELS COMPANY OF AMERICA, LLC,

AS TENANT

 

FOR THE PROJECT SITE OF A

BIODIESEL PRODUCTION FACILITY

TO BE CONSTRUCTED IN DANVILLE, IL

 

 

November 3, 2006

 

 

AMENDED
AND RESTATED GROUND LEASE AGREEMENT

 

This
AMENDED AND RESTATED GROUND LEASE AGREEMENT (this “Lease”) is made and entered into as of November 3, 2006
(the “Effective Date”) by
and between BUNGE MILLING, INC., an Illinois
corporation (“Landlord”), and BIOFUELS
COMPANY OF AMERICA, LLC, an Illinois limited liability company (“Tenant”).

 

RECITALS

 

A.                                   Landlord is the owner of fee
simple title to that certain real property consisting of approximately 5.924
acres of land (the “Land”) located in Danville, Illinois, and legally
described on Exhibit A attached
hereto.

 

B.                                     Landlord desires to lease
the Land to and Tenant desires to lease the Land from Landlord.

 

C.                                     Tenant, at Tenant’s sole
cost, shall construct, or cause to be constructed, on the Land a biodiesel
production facility capable of producing forty-five (45) million gallons of
biodiesel fuel per year (the “Plant”). 
The Plant, together with all improvements to be constructed on the Land,
or offsite, in connection with the Plant are sometimes collectively referred to
herein as the “Improvements”). 
The Land and the Improvements are sometimes collectively referred to
herein as the “Premises”.

 

D.                                    Landlord and Tenant
previously entered into a Ground Lease, dated as of September 5, 2006,
with respect to the Land (the “Prior Lease”), and Landlord and Tenant desire to
amend and restate the terms thereof as set forth herein.

 

E.                                      The parties desire to enter
into this Lease, on the terms and conditions set forth below.

 

NOW, THEREFORE, in
consideration of the monetary consideration, mutual covenants, conditions and
promises and other good and valuable consideration herein set forth, the
receipt and sufficiency of which are hereby acknowledged, the parties agree
that the foregoing Recitals are true and correct and are incorporated herein by
this reference, and further agree as follows:

 

ARTICLE I – DEFINITIONS

 

The following capitalized terms shall have the meaning indicated for
each below.

 

“ADA” means the
Americans with Disabilities Act of 1990 and all regulations promulgated
thereunder, as the same may be amended from time to time.

 

“Alterations”
means any improvements, renovations, construction, demolition, or other changes
to the Land or the Plant, or both, after completion of the Project.

 

“Base Rent” is defined in Section 4.1.2.

 

“Builder’s Risk Insurance” is defined in Section 10.5.

 

“Certificate of Occupancy” means a certificate of occupancy
issued by the appropriate governmental authority upon completion of the Plant.

 

 “City”
means Danville, Illinois.

 

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“Compensation” is
defined in Section 8.1.

 

“Construction Contract” means that certain Construction
Management Services Agreement between Tenant and Fagen, Inc.

 

“Default Interest Rate”
means, as of any day, a rate of interest per annum equal to the lesser of (i) five
percent (5%) over the Prime Rate , or (ii) the maximum interest rate
allowable under applicable Law.

 

 “Effective
Date” means the first date on which this Lease has been fully executed and
delivered by both Landlord and Tenant.

 

“FEMA Lots” is defined in Section 2.1.1.

 

“Fiscal Year” means the twelve (12) month period selected by the
Tenant as its fiscal year for accounting purposes.

 

“Force Majeure” means
any act or occurrence beyond the reasonable control of the parties which
reasonably causes a delay in the Project, including, without limitation, the
following:  fire or unavoidable
casualties; windstorm, earthquake or unusually adverse weather conditions;
unanticipated subsurface conditions; strikes, lockouts or other labor disputes;
shortages of materials, equipment or labor; acts of vandalism or terrorism; or
acts or omissions of governmental or political bodies.

 

“Improvements” is
defined in Recital C above.

 

“Insurance Proceeds” means the insurance proceeds paid pursuant
to the Required Insurance as a result of any insured loss or damage to the
Improvements.

 

“Land” is defined in Recital A above.

 

“Landlord and Mortgagee Agreement”
means the agreement so entitled between Landlord and Leasehold Lender of even
date herewith.

 

“Landlord Caused Liens” means any liens, claims of liens or
other claims against the Premises caused by the wrongful acts or omissions of
Landlord.

 

“Landlord Indemnified Parties” means, collectively, Landlord and
its officers, directors, shareholders, employees, agents, contractors,
affiliated entities and attorneys.

 

“Laws” means,
collectively, any and all federal, state or local governmental laws, rules,
regulations, codes and orders, including, without limitation, those relating to
building and life safety, the environment, zoning, land use and land divisions.

 

“Leasehold Lender” means Fifth Third Bank and its successors and
assigns.

 

“Leasehold Mortgage”
means that certain Leasehold Mortgage, Security Agreement and fixture filing by
and between Tenant and Fifth Third Bank, and any other mortgage, deed to secure
debt or similar instrument granting a mortgage or lien against Tenant’s
leasehold interest hereunder.

 

“Lease Term” means the period
commencing on the Effective Date and terminating on the Termination Date.

 

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“Lease Term Expiration Date” means the
date which is (i) thirty (30) years after the Effective Date subject to
extension pursuant to Section 3.2
hereof.

 

“Major Alteration” means any
Alteration which is not a Minor Alteration.

 

“Minor Alteration” means any
Alteration which satisfies all of the following conditions: (a) the
total cost of such Alteration does not exceed $100,000; (b) Tenant has
available funds in a reasonably sufficient amount to pay for the entire cost of
such Alteration as and when such costs become due and payable; (c) the
production quality, capacity and efficiency of the Plant will not be decreased
as a result of the proposed alteration by more than one percent (1%); (d) the
footprint of the Plant will not be materially changed by such Alteration; (e) the
location, quality, and design of the access drives, parking, landscaping, and
other outdoor amenities of the Premises will not be materially changed by such
Alteration; (f) the value of the Premises, as completed, will not be
diminished by such Alteration; (g) neither the foundation, roof nor
structural members of the Plant will be affected by such Alteration; (h) the
architectural features of the Plant shell will not be impaired or materially
changed by such Alteration; (i) the design, exterior material, type of
roof, color, windows, and other architectural features of any portion of the
exterior of the Premises will not be materially changed by such Alteration; (j) Tenant
has received a Plant permit for, and all other requisite governmental approvals
of, such Alteration; (k) Tenant’s mortgage lender has approved the
proposed alteration (to the extent such approval is required); (l) after
completion of the proposed alteration, the Plant will comply with all
applicable Laws; (m) written notice of such Alteration is promptly given
to Landlord; and (n) such Alteration will not violate any other provision
of this Lease.

 

 “Permitted Exceptions” means those exceptions listed on Exhibit B attached hereto and
any other exception which satisfies all of the following conditions: (i) the
same is approved by Landlord and Tenant in writing after the date hereof, and (ii) the
same is recorded in the Real Estate Records.

 

“Person” means an individual, proprietorship, trust,
corporation, partnership, limited liability company, foundation or other entity
or organization, whether for profit or otherwise.

 

“Plant” is defined in Recital C above.

 

“Premises” is defined in Recital C above.

 

                                                “Prime Rate” means the prime rate
reported in the “Money Rates” column or any successor column of The Wall Street Journal, currently defined therein as the
base rate on corporate loans posted by at least 75% of the nation’s 30 largest
banks.  If The Wall
Street Journal ceases publication of the Prime Rate, the “Prime Rate”
shall mean the ‘prime rate’ or “base rate” announced by Bank of America, N.A.,
or any successor thereto.

 

“Project” means the work, labor,
material and services required to construct the Plant and the other
Improvements on the Land, as provided in the Construction Contract.

 

“Project Agreements” means,
collectively, all agreements relating to the design, construction and equipping
of the Project, including, without limitation, all agreements between Tenant or
its agents and the following: 
architects, engineers, contractors, equipment lessors, material
suppliers, equipment vendors and the like.

 

“Property Insurance” means Special Perils Insurance, Flood
Insurance, Earthquake Insurance, Boiler and Machinery Insurance, and Builder’s
Risk Insurance.

 

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“Qualified Appraiser” means an appraiser who is not an
affiliate, employee, relative or partner of any party to this Lease, who is a
member in good standing of the Appraisal Institute and has not less than ten (10) years
of experience in appraising industrial properties.

 

“Real Estate Records” means the
official real estate records for the County and State in which the Land is
located.

 

“Rent” means all Base Rent and all
other amounts Tenant is required to pay herein.

 

“Rental Commencement Date”
means the date on which the Plant first becomes fully operational.

 

“Required Completion Date” means December 31, 2008, as the
same may be extended due to any delays caused by Force Majeure and as the same
may be extended for each day during the pendency of any foreclosure proceedings
diligently conducted by Leasehold Lender under the Leasehold Mortgage.

 

“Required Insurance” means the insurance coverage that Tenant is
obligated to maintain under this Lease, including, without limitation, the
insurance described in Article 10
below.

 

“Restoration Work” is defined in Section 11.1.1.

 

“State” means the State of Illinois.

 

“Sublessee” means any Person who
leases all or any portion of the Premises from Tenant.

 

“Tenant Indemnified Parties” means, collectively, Tenant and its
officers, directors, members, managers, employees, agents, contractors,
affiliated entities and attorneys.

 

“Termination Date”
means the first to occur of (i) the
Lease Term Expiration Date or (ii) such earlier date as this Lease
terminates in accordance with the provisions hereof.

 

ARTICLE II - DEMISE AND GRANT

 

2.1                                 Demise.  Landlord and Tenant hereby
terminate the Prior Lease.  Landlord does
hereby lease to Tenant, and Tenant does hereby lease from Landlord, the Land;
to have and to hold the Land, together with all rights, privileges,
appurtenances, easements, and other rights appertaining to the Land, unto
Tenant, Tenant’s successors and assigns, for the Lease Term (as herein defined)
upon the terms and conditions set forth in this Lease.

 

2.1.1                        Sublicense of City Lots.                 Landlord has no ownership interest in lots 7,
8, 9, 10 and 11 as shown on Plat Record 1, Page 161 of the Recorder’s
Office of Vermillion County, IL (the “City Lots”) and its sole rights
thereto, if any, are as set out in that certain “Five Parcel License Agreement”
(the “License Agreement”) between the City and Landlord.  The License Agreement in paragraph 10 thereof
expressly provides for the right of Landlord to sublicense its rights
thereunder.  Landlord hereby sublicenses
the City Lots to Tenant, subject to the terms and conditions of the License
Agreement.  Tenant hereby assumes and
agrees to observe and perform all of Landlord’s obligations under the License
Agreement.  Landlord shall not be liable
to Tenant for any matter arising out of use of the City Lots by Tenant, its
agents, employees, contractors, representatives and invitees (the “Tenant
Parties”).  Tenant hereby releases
Landlord from any liability for any loss or damage of any kind or for any
injury or death of persons or damages to property of any of the Tenant Parties
from any cause whatsoever by reason of the use of the City Lots or violation of
the License Agreement by the Tenant Parties. 
Tenant agrees to, 

 

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and does hereby, indemnify, defend and save harmless the Landlord, its
directors, officers, employees and representatives from all claims, actions,
demands, damages, costs, expenses and liabilities whatsoever, including
reasonable attorneys fees, on account of any real or claimed loss, damage or
liability occurring in or at the City Lots which is the result of, or arises
out of, the use of the City Lots by Tenant. 
Except as provided in this Section 2.1.1,
all other provisions and terms of the Lease shall be applicable to the City
Lots and Tenant rights and obligations with respect thereto.

 

2.2                                 Title.  The Land is leased to Tenant
subject to the Permitted Exceptions.
Neither Landlord nor Tenant shall create or permit the creation of any further
easement, covenant, condition, lien, encumbrance or other exception to fee
simple title to the Premises, or any part thereof, without the prior written
consent of the other party hereto and all leasehold lenders.  Landlord acknowledges and agrees that during
the term of this Lease and any license pursuant to Section 7
of the Landlord and Mortgagee Agreement, Tenant is the sole owner of the Improvements.

 

2.3                                 Quiet Enjoyment. 
Landlord covenants and agrees that so long as this Lease is in full
force and effect and so long as Tenant is not in default hereunder beyond any
applicable notice and cure periods, Tenant, shall lawfully and quietly hold, occupy
and enjoy the Land during the Lease Term without hindrance of Landlord or any
person claiming by, through, or under Landlord, except as otherwise
specifically provided herein.

 

2.4                                 Reservation of Development Rights. 
Tenant agrees that Landlord, and any entity which owns Landlord, is
owned by Landlord, is under common ownership with Landlord, or is otherwise
affiliated with Landlord (collectively, “Landlord Parties”) shall retain
control over the general use, organization and layout of all property (other
than the Land) which any Landlord Party from time to time owns, leases, or
otherwise has or acquires any right to or interest in (the “Other Properties”),
and shall have the sole, exclusive and absolute right to apply for, obtain or
attempt to obtain new or different zoning, subdivision, permits, variances,
development plans, conditional use permits, building and other permits and
other governmental authorizations (collectively, and without limitation, “Governmental
Authorizations”) with respect to the Other Properties, and to develop or
subdivide and use the Other Properties in any manner, provided, however,
any such development, subdivision or use of the Other Properties shall be at
Landlord’s sole cost and expense and any such subdivision shall not materially
adversely affect Tenant’s use of the Land, including, but not limited to, any
ingress and egress, utilities or any existing right of Tenant.  Landlord reserves the right, at any time and
from time to time to further subdivide, construct, reconstruct, develop,
redevelop, alter, remove or replace any and all improvements and buildings upon
the Landlord Parties’ Other Properties and any other lands owned by Landlord
(but not the Land).  Tenant agrees to
cooperate with Landlord in connection with any such subdivision and agrees that
Tenant will not directly or indirectly oppose or undermine or contest Landlord
Parties’ use or development of the Other Properties.  Tenant has no rights to any easement for
light, air or view which would restrict Landlord’s rights reserved herein.  Notwithstanding anything to the contrary in
the foregoing, if the exercise by Landlord of any rights reserved herein will
have a material adverse affect on the access of the Leased Premises to public
roads, then Landlord shall be obligated, at Landlord’s expense, to provide
reasonable access between the Leased Premises and a public road.

 

2.5                                 “As Is” Condition of Premises.  Tenant acknowledges and agrees that, except
as otherwise specifically set forth herein, the Land is being leased to Tenant
in its “AS IS” condition, with all faults. 
Landlord hereby disclaims any and all express or implied warranties as
to the condition of the Land.  Without
limiting the generality of the foregoing, Landlord hereby disclaims any and all
express or implied warranties of merchantability or fitness for any particular
purpose relative to the Land or any part thereof. Tenant acknowledges and
agrees that, except as otherwise specifically set forth herein, no
representations or warranties have been made by Landlord, or by any person,
firm or agent acting or 

 

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purporting to act on behalf of Landlord, as
to (i) the presence or absence on or under the Land of any particular
materials or substances (including, without limitation, asbestos, hydrocarbons
or hazardous or toxic substances), (ii) the condition or repair of the
Land or any portion thereof, (iii) the value, expense of operation or
income potential of the Land or the Premises, (iv) the accuracy or completeness
of any title, survey or other third party information provided by Landlord to
Tenant relative to the Land, the Project or the Premises, or (v) any other
fact or condition which has or might affect the Land, the Project or the
Premises. Tenant agrees that Tenant will be relying solely on Tenant’s
inspections of the Land in entering into this Lease.  Tenant represents and warrants to Landlord
that Tenant has had full opportunity to carefully (A) inspect, measure and
test the Land, (B) test the subsurface conditions and environmental
conditions at or affecting the Land, (C) examine the public records
relating to the Land, and (D) otherwise perform all due diligence with
respect to the Land and the Project.

 

2.6                                 Obligation to Construct the Plant.  Landlord
has reviewed and approved detailed plans and specifications for the
construction of the Improvements (the “Plans and Specifications”). Tenant shall
cause construction of the Improvements to be diligently prosecuted.  Tenant shall cause the Improvements to be
substantially completed and fully paid for on or before the Required Completion
Date. For purposes of the foregoing, construction of the Improvements shall be
deemed to have been substantially completed when any and all governmental
permits, licenses, approvals and authorizations necessary for the occupancy and
operation of the Plant have been issued and the Plant is capable of being fully
operational.  If Tenant fails to cause
construction of the Improvements to be substantially completed by the Required
Completion Date, Landlord shall have the rights and remedies set forth in this Section in
addition to any other rights and remedies available under this Lease or
applicable Law:

 

2.6.1                        Landlord shall have the right to terminate
this Lease by giving Tenant written notice thereof.  If Landlord terminates this Lease as
aforesaid, then Landlord shall have the right to pursue all available rights
and remedies under applicable Law as a result of Tenant’s breach of its
obligations under this Lease.  In addition
to, and without limiting the generality of the foregoing, Tenant shall be
deemed to have assigned and transferred to Landlord all of Tenant’s right,
title and interest in and to all of the following (to the extent designated in
writing by Landlord at such time):  all
Project Agreements; all plan and specifications developed with respect to or
for the benefit of the Project; all assignable permits, licenses and other
governmental approvals and consents; all assignable consents or approvals of
utility companies, sewer districts, subdivision trustees and other
quasi-governmental entities; and all assignable insurance policies.  Landlord shall not be deemed to have assumed
any of Tenant’s obligations under any of the foregoing, except and to the
extent that Landlord has expressly agreed to assume such obligations in writing
at such time. Landlord is hereby authorized and directed by Tenant to deliver a
copy of this Lease to any other Person to confirm Tenant’s assignment to
Landlord of such rights.

 

2.6.2                        Landlord shall have the right to specifically
enforce Tenant’s obligation to complete construction of the Improvements.
Tenant shall reimburse Landlord for all of Landlord’s expenses incurred in
connection with any action in which Landlord prevails to specifically enforce
such obligation, including, without limitation, Landlord’s reasonable attorneys’
fees, court costs and other customary costs of litigation.

 

2.6.3                        Landlord shall have the right to perform
Tenant’s obligations under this Lease and to be reimbursed by Tenant for all of
Landlord’s expenses incurred in performing such obligations upon demand.  If Tenant fails to pay any such expenses on
demand, then interest shall accrue on the amounts owed at the Default Interest
Rate together with all of Landlord’s costs of enforcing such obligation,
including, without limitation, reasonable attorneys’ fees, court costs and
other customary expenses of litigation. 
If Landlord exercises its rights under this Section 2.6.3,
then the parties agree that Tenant shall be deemed to have granted to Landlord
the exclusive right (as Tenant’s agent and under 

 

6

 

Tenant’s power of attorney hereby granted) to exercise all of Tenant’s
rights to and under each of the following (to the extent designated in writing
by Landlord at such time):  all Project
Agreements; all plan and specifications developed with respect to or for the
benefit of the Project; all assignable permits, licenses and other governmental
approvals and consents; all assignable consents or approvals of utility
companies, sewer districts, subdivision trustees and other quasi-governmental
entities; and all assignable insurance policies.  Landlord shall not be deemed to have assumed
any of Tenant’s obligations under any of the foregoing, except and to the
extent that Landlord expressly agrees to in writing at such time.  Landlord is hereby authorized and directed by
Tenant to deliver a copy of this Lease to any other Person to confirm Landlord’s
right to exercise such rights on behalf of Tenant.

 

2.6.4                        Landlord shall execute and deliver upon
request of Tenant any instruments which may be required by any public or
quasi-public authority for the purpose of obtaining any and all governmental
licenses, permits, approvals and authorizations necessary for the construction,
alteration, and installation of the Improvements and any equipment required in
connection therewith.  Landlord hereby
constitutes and appoints Tenant as Landlord’s attorney-in-fact to execute such
instruments for and on behalf of Landlord in the event Landlord fails to
promptly execute and deliver any such instrument, provided that such
instruments shall not impose any obligations or liabilities on Landlord.

 

ARTICLE III - LEASE TERM

 

3.1                                 Lease Term.  The Lease Term shall commence
on the Effective Date and shall terminate on the Lease Term Expiration Date,
unless terminated prior to such date in accordance with the provisions of this
Lease.

 

3.2                                 Extension of Lease Term. 
Tenant may elect to extend the Lease Term for four (4) additional
terms of five (5) years each upon the terms, covenants, conditions,
conditional limitations, and agreements herein contained, in accordance with
and subject to the following conditions:

 

3.2.1                        Each extension of the Lease Term shall be for
a period of five (5) years commencing on the date of termination of the
original Lease Term or then current extended Lease Term and expiring on the
fifth anniversary of the date of commencement of such extension period.  The Lease Term may be extended a maximum of
four (4) times so that the final termination date of this Lease, in any
event, shall be no later than September 1, 2056.

 

3.2.2                        The election to extend shall be exercised, if
at all, at least ninety (90) days prior to the date of commencement of the
extension period so elected.  The
election to extend shall be exercised only by written notice to Landlord, which
notice shall be executed and acknowledged by Tenant in form proper for
recording.  During each extended term,
all of the terms and conditions of this Lease shall continue in full force and
effect, except that the annual Base Rent for each extended term shall be
payable in the amounts and at the times set forth in Section 3.2.3
below.

 

3.2.3                        The Base Rent for each extended term shall be
annual rental at the rate of $1.00 per year, payable on January 1 of each
year of the extended term, without set-off or abatement.  The notice of election to extend the Lease
Term given in accordance with the provisions of this Section shall
automatically extend the Lease Term for the extended term without further
writing.  However, either party, upon
request of the other, will execute and acknowledge, in form proper for
recording, an instrument confirming said extension, which shall have been
properly elected by Tenant.

 

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3.2.4                        All references in this Lease to the “Lease
Term”, or to the “term” hereof, shall be deemed to include the original Lease
Term of thirty (30) years and each extended term thereof elected pursuant to
the provisions of this Section.

 

3.2.5                        The notice of election to extend the Lease
Term given in accordance with the provisions of this Section shall have no
effect, and the extension period shall not become effective, if Landlord has
delivered to Tenant a written notice of default under the terms of this Lease
at the time the notice is given or immediately prior to the Lease Term
Expiration Date, and neither Tenant nor the holder of any Leasehold Mortgage
has cured, or taken steps to cure, such default within the time permitted under
this Lease.

 

3.2.6                        A termination of this Lease pursuant to Article XIII hereof, or any other provision hereof, or
pursuant to present or future law, shall extinguish all extension periods
theretofore elected and all rights of election of extension periods not
theretofore exercised.

 

3.3                                 Reversion.  On the Termination Date, the
parties agree that the following shall be deemed to have occurred without the
necessity of any further action other than as expressly provided below:

 

3.3.1                        The Premises shall become the sole property
of the then owner of fee simple title to the Land, free and clear of all rights
of Tenant and any person claiming by, through, or under Tenant, but subject
only to the Permitted Exceptions;

 

3.3.2                        All rights of Tenant with respect to the
Premises (including, without limitation, any right of possession) shall be
deemed to have terminated, and Landlord shall be entitled to possession of the
Premises;

 

3.3.3                        Tenant shall be deemed to have assigned to
Landlord and Landlord shall be deemed to have assumed, effective as of the
Termination Date all assignable licenses, permits, warranties, and guarantees
then in effect and which are desirable with respect to the ownership or
operation of the Premises; and

 

3.3.4                        The parties shall apportion all taxes,
utility charges, and other expenses of operating the Premises as of the
Termination Date.

 

ARTICLE IV
- RENT, TAXES AND UTILITIES

 

4.1                                 Base Rent.

 

4.1.1                        Within a
reasonable period after the Rental Commencement Date and at any time thereafter
upon the request of either party, and without either party receiving
consideration therefor, the parties shall execute, acknowledge and deliver
duplicate original recordable counterparts of a Rental Commencement Date declaration,
specifying the Rental Commencement Date.

 

4.1.2                        As used in this
Lease, “Base Rent” means:

 

(a)                                  during all such
times as the Tenant hereunder is Biofuels Company of America, LLC, the sum of
One Dollar ($1.00) per annum, payable on the Rent Commencement Date and on each
anniversary of the Rent Commencement Date during each year of the Lease Term;

 

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(b)                                 in the event
that Leasehold Lender delivers written notice to Landlord that Leasehold Lender
has notified Tenant that Tenant has defaulted in its obligations under the
Leasehold Mortgage, the sum of One Dollar ($1.00) per annum during the one (1) year
period following the delivery of such notice, payable on each anniversary of
the Rent Commencement Date during each year of the Lease Term;

 

(c)                                  except as set
forth in Section 4.1.2(b) hereof,
during all such times as the Tenant hereunder is Leasehold Lender or an entity
controlled by Leasehold Lender and the Plant is not being operated, the sum of
Six Thousand Dollars ($6,000.00) per annum, payable in equal monthly
installments in advance and without demand on the first day of each and every
calendar month throughout the Lease Term; provided that Base Rent payable with
respect to any partial calendar month
during the Lease Term shall be prorated based on the number of days of the
Lease Term in such month; and

 

(d)                                 except as set forth in Section 4.1.2(c) hereof, during all such times as
the Tenant hereunder is any person or entity other than Biofuels Company of
America, LLC (a “Successor Tenant”), the fair market rent for the Land,
determined and payable as follows:

 

(i)                                     If Landlord and
Successor Tenant agree on the fair market rent for the Land, they shall
immediately execute an amendment to this Lease stating the annual Base Rent for
the remainder of the Lease Term.  In the
event that Landlord and Successor Tenant are unable to agree upon the amount of
the fair market rent for the Land, either party shall have the right to cause
the fair market rent for the Land to be determined by appraisal in accordance
with the procedures set forth herein. 
Either party may exercise such right by delivering written notice
thereof to the other party (a “Rent Appraisal Notice”), which Rent
Appraisal Notice shall designate Qualified Appraiser who has been appointed by
the party delivering such notice.  The
party to whom the Rent Appraisal Notice was delivered shall then have the right
to appoint an additional Qualified Appraiser by delivering written notice
thereof to the other party within ten (10) days following the delivery of
the Rent Appraisal Notice.  If the party
to whom the Rent Appraisal Notice was delivered does not appoint a Qualified
Appraiser within such ten (10) day period, the single appraiser appointed
shall be the sole appraiser and shall determine the yearly fair market rent for
the Land.

 

(ii)                                  If both
Qualified Appraisers are appointed by the parties as aforesaid, they shall
jointly select a third Qualified Appraiser within twenty (20) days following
the delivery of the Rent Appraisal Notice. 
If they are unable to agree on the third appraiser, either of the
parties to this Lease, by giving ten (10) days’ notice to the other party,
can file a petition with the American Arbitration Association solely for the
purpose of selecting a third appraiser who meets the aforesaid qualifications.

 

(iii)                               Each party shall bear the cost of the
appraiser that it appointed and one-half of the cost of the third appraiser and
of the cost of the appointment of the third appraiser by the American
Arbitration Association, if any.  The
third appraiser, however selected, shall be a person who has not previously
acted in any capacity for either party.

 

(iv)                              Within thirty (30) days after the selection
of the third appraiser, a majority of the appraisers shall determine the yearly
fair market rent for the land.  If a
majority of the appraisers are unable to agree on such yearly fair market rent
within said period of time, the three appraisals shall be added together; their
total shall be divided by three; and the resulting quotient shall be the yearly
fair market rent for the Land.  If,
however, the lowest appraisal and/or the highest appraisal is more than ten
percent (10%) lower and/or higher than the middle appraisal such lowest
appraisal and/or highest appraisal shall be disregarded.  If only one appraisal is disregarded, the
remaining two appraisals shall be added together and their total divided by
two; and the resulting quotient shall be the yearly fair 

 

9

 

market rent for the
Land.  If both the lowest appraisal and
the highest appraisal are disregarded, the middle appraisal shall be the yearly
fair market rent for the Land.  Notwithstanding
any provision to the contrary contained herein, in no event shall the yearly
fair market rent for the Land be less than $6,000.00 or more than $100,000.00;
provided that both such amounts shall hereafter increase by the same percentage
as the percentage increase, if any, in the Consumer Price Index from November 2006
to the month in which the Rent Appraisal Notice is delivered.  For purposes of this Agreement, the term “Consumer
Price Index” means the Consumer Price Index-All Urban Consumers, U.S. All Items
(1982-84=100) as published by the United States Department of Labor, Bureau of
Labor Statistics.  In the event that the
United States Department of Labor, Bureau of Labor Statistics discontinues the
publication of the present Consumer Price Index, the index to be used for
computing increases in Base Rent will be such index as may be published by any
other United States government bureau or department to replace the present
Consumer Price Index.

 

(v)                                 The Base Rent for the Land, determined as
aforesaid, shall be payable in equal monthly installments in advance and
without demand on the first day of each and every calendar month throughout the
Lease Term; provided that, beginning on March 1 of the year following the
first full calendar year after the Base Rent for the Land has been so
determined, the amount of the Base Rent shall be increased by the same
percentage as the percentage increase, if any, in the Consumer Price Index for
the previous calendar year.  Base Rent
payable with respect to any partial calendar
month during the Lease Term shall be prorated based on the number of
days of the Lease Term in such month.

 

(vi)                              Notwithstanding any provision to the contrary
contained herein, the obligation to pay Base Rent hereunder shall be waived
during the period that the yearly fair market rent is being determined
hereunder.  However, within thirty (30)
days following such determination, Successor Tenant shall be obligated to pay
to Landlord the amount of the Base Rent with respect to such period in order to
bring current the payment of Base Rent.

 

4.1.3                        The term “Rent”
means Base Rent and all other sums payable by Tenant to Landlord pursuant to
the provisions of this Lease.

 

4.1.4                        Tenant promises
and agrees to pay to the order of Landlord, at the address of Landlord set
forth in Section 21.4 hereof (or at such
other address in as Landlord from time to time designates in writing to
Tenant), in lawful currency of the United States of America, all Rent without
demand, deduction, abatement or set-off.

 

4.2                                 Taxes; Utilities; Net Lease.

 

4.2.1                        From and after the Rental Commencement Date, Tenant shall pay or cause
to be paid, without abatement, deduction or offset, all real and personal
property taxes, general and special assessments, and all other charges,
assessments, and taxes of every description (other than municipal, state and
federal income, inheritance, estate succession, transfer or gift taxes of
Landlord), levied on or assessed against the Premises or any part thereof;
Tenant’s personal property located on or in the Premises; and Tenant’s
leasehold estate in the Land. Tenant shall make all such payments directly to
the appropriate charging or taxing authority before any fine, interest, or
penalty shall become due or be imposed by operation of law for nonpayment; provided,
however, that if the law expressly permits the payment of any or all of
the above items in installments (whether or not interest accrues on the unpaid
balance), Tenant may, at Tenant’s election, utilize the permitted installment
method, but shall pay each installment with any interest before delinquency and
before any fine or penalty shall become due or be imposed by operation of law
for nonpayment.  All payments of taxes or
assessments or both, including 

 

10

 

permitted
installment payments, shall be prorated between Landlord and Tenant for the
year in which the Rental Commencement Date occurs and for the year in which the
Termination Date occurs.

 

4.2.2                        Tenant shall
furnish to Landlord, upon written request by Landlord, receipts or other
appropriate evidence establishing payment of any tax, assessment or charge for
which Tenant is responsible hereunder. 
In the event of Tenant’s failure to make any tax payment required by
this Section 4.2, if any such tax
payment is not made by Tenant within fifteen (15) days after Tenant’s receipt
of written notice from Landlord that Landlord intends to make such payment,
Landlord may (but is not obligated to) pay all such amounts.  Any sums expended by Landlord in making such
tax payments shall be repaid by Tenant, together with interest thereon at the
Default Interest Rate from the time of payment by Landlord until fully paid by
Tenant, immediately upon written demand therefor by Landlord.

 

4.2.3                        Tenant shall
have the right to contest or review by legal proceedings, as permitted under
applicable Laws, any assessed valuation, real estate tax, or assessment with
respect to the Premises; and Tenant shall indemnify Landlord against all loss,
cost, damage, and expense arising in connection with such contest. Nothing herein
contained, however, shall be construed to allow any taxes to remain unpaid for
such length of time as shall permit the Premises, or any part thereof, to be
sold or advertised for sale by any governmental authority or shall permit a
lien with respect thereto to be foreclosed. Landlord shall, if it determines it
is reasonable to do so, and if so requested by Tenant, join in any proceeding
for contest or review of such taxes or assessments. Any amount already paid by
Tenant and subsequently recovered as the result of such contest or review shall
belong to Tenant.

 

4.2.4                        Tenant shall
contract directly with the supplier of any utility services to the Premises,
and from and after the Effective Date, Tenant shall pay or cause to be paid all
charges for water, heat, steam, gas, electricity, cable, telephone, trash
disposal, sewer and any and all other utilities used at the Premises throughout
the Lease Term.  Subject to Section 13.3.2, no failure or interruption of any
utility or other service being furnished to Tenant or the Premises shall
entitle Tenant to terminate this Lease or cause any abatement of Rent.

 

4.3                                 Security Deposit.  No
security deposit is required hereunder.

 

4.4                                 Absolute Net Rent.  All
Rent payable hereunder shall be paid as “net” rent without deduction or
offset.  It is the intent of the parties,
except as is otherwise provided in this Lease, that, from and after the Rental
Commencement Date, Tenant shall pay all costs, charges, insurance premiums,
taxes (other than municipal, state and federal income, inheritance, estate
succession, transfer or gift taxes of Landlord), utilities, expenses and
assessments of every kind and nature incurred for, against, or in connection
with the Premises and the Project.  Tenant
acknowledges and agrees that the Land may consist of multiple parcels of
property, each of which is a separate tax parcel.  All such costs, charges, taxes,
utilities, expenses and assessments covering the Premises shall be prorated
between Landlord and Tenant as of the Rental Commencement Date and the
Termination Date, except for any expenses such as insurance premiums which are
not being assumed by or transferred for the benefit of Landlord.

 

ARTICLE V
- USE OF PREMISES AND COMPLIANCE 

WITH LAWS AND AGREEMENTS

 

5.1                                 Permitted and Prohibited
Uses; Generally.  Use of the
Premises by Tenant shall be subject to all of the following restrictions on
use:  (a) the Premises may only be
used for the construction and operation of the Plant; and (b) all use of
the Premises must comply with all applicable zoning, land use or other
applicable Laws.

 

11

 

                                                                                                5.1.1                        Notwithstanding anything to
the contrary in this Lease, Tenant acknowledges and agrees that, from and after
the Required Completion Date, its continuous operation of the Plant and the
Plant’s continuous production of biodiesel fuel during the Lease Term is a
material consideration to Landlord in agreeing to enter into this Lease, and
Tenant agrees that if it shall fail to operate the Plant for two (2) consecutive
years or if it shall fail to cause the Plant to produce at least ten (10) million
gallons of biodiesel fuel per year for two (2) consecutive years, then
Landlord shall have the right to terminate this Lease upon delivery of written
notice to Tenant.  Notwithstanding the
foregoing, in the event Leasehold Lender delivers
written notice to Landlord that Leasehold Lender has notified Tenant that
Tenant has defaulted in its obligations under the Leasehold Mortgage and
diligently proceeds thereafter to file, prosecute and complete such foreclosure
in a commercially reasonable manner, Landlord agrees that this
obligation to continuously operate and produce in this Section shall be
tolled from the date of delivery of such notice to Landlord until (i) the
conclusion of such foreclosure proceedings if the successor to the Tenant’s
interest hereunder pursuant to such foreclosure proceedings is any party other
than Leasehold Lender or an entity controlled by Leasehold Lender, or (ii) the
transfer of Tenant’s interest hereunder to any other party if the successor to
the Tenant’s interest hereunder pursuant to such foreclosure proceedings is
Leasehold Lender or an entity controlled by Leasehold Lender.  Following the conclusion of the tolling
period, the two (2) year period shall recommence and be extended by an
additional three (3) months in order to give the successor to the Tenant’s
interest under the Lease additional time in which to comply with the foregoing
production requirements.  For purposes
hereof,  a “year” means any period of twelve (12) consecutive months.

 

5.2                                 Compliance with Laws. 
During the Lease Term, Tenant shall comply with (i) all present and
future Laws, including (without limitation) the ADA, relating to the Project,
the Premises, or the construction, use or operation thereof, regardless of
whether any such Law imposes the duty of compliance on Landlord or Tenant, and
all other matters of record relating to the Project, the Premises or any part
thereof or both.  Tenant shall not use,
occupy or knowingly permit the Premises to be used or occupied, nor do or
knowingly permit anything to be done in or on the Premises in a manner which
would (a) violate any certificate of occupancy or other governmental
permit, license, approval or authorization affecting the Premises, (b) constitute
a public or private nuisance or waste or (c) be contrary to the provision
of any Required Insurance policies.

 

5.3                                 Right to Enter. 
Landlord shall have the right to enter the Premises during the normal
business hours (or, in an emergency, at any hour) to inspect the Premises. All
rights of Landlord hereunder shall be exercised in a reasonable manner, upon
reasonable prior notice to Tenant (except in an emergency), and so as to
minimize any interference with the permitted use of the Premises.

 

5.4                                 Signs.  Except as provided for in the
Plans and Specifications, Tenant shall not erect or maintain any sign visible
from the exterior of the Premises without the prior written consent of
Landlord, which consent shall not be unreasonably withheld, delayed or
conditioned.

 

ARTICLE VI - MAINTENANCE AND ALTERATIONS

 

6.1                                 Maintenance of Premises. 
Tenant shall maintain, or cause to be maintained, the Premises in good
repair.  Tenant shall cause all trash,
refuse and garbage generated by construction or its operations of the Premises
to be promptly removed from the Premises. 
If Tenant fails to maintain or keep and maintain the Premises in a
first-class manner as required herein and such failure continues for thirty
(30) days after written notice from Landlord (which notice shall not be
required in the event of an emergency), in addition to all other remedies it
may have, then Landlord may (without obligation) perform such required
maintenance and repairs, and any sums expended by Landlord in performing such
maintenance and repairs shall be repaid by Tenant to Landlord, together with
interest thereon at the Default Interest 

 

12

 

Rate from the time of payment by Landlord
until fully paid by Tenant.  Landlord
shall not be obligated to maintain or make repairs of any kind upon the
Premises, or upon any equipment, facilities or fixtures contained therein.

 

6.2                                 Major Alterations. 
Without the prior written consent of Landlord in each instance, which
consent shall not be unreasonably withheld, delayed or conditioned, Tenant
shall not commence, or cause to be constructed, any Major Alterations.  If Tenant commences work on a Minor
Alteration and, during the course thereof, any one or more of the conditions to
the same constituting a Minor Alteration ceases to be satisfied, then Tenant
shall immediately stop all work thereon and shall obtain Landlord’s prior
written approval thereof, which approval shall not be unreasonably withheld,
delayed or conditioned, prior to performing any further work.

 

6.3                                 Alterations Generally.

 

6.3.1                        Tenant shall cause all work in connection
with any Alteration to satisfy all of the following requirements:  (a) such work shall be performed in a
good and workmanlike manner with new materials; (b) Tenant shall pay, or
cause to be paid, all costs of such Alteration as and when due and in a manner
to prevent the filing of any mechanic’s liens or claims of liens; (c) such
work shall be performed in compliance with all applicable Laws, including
without limitation, the ADA; and (d) the contractor and each subcontractor
providing labor, material or services with respect thereto shall provide
insurance which satisfies Landlord’s then-current insurance requirements for
contractors.

 

6.3.2                        Tenant shall pay, discharge and cause the
release of any and all mechanic’s, materialman’s or other like liens against
the Premises in accordance with Article 7
of this Lease.

 

6.3.3                        Upon completion of any Alterations, Tenant,
at Tenant’s expense, shall obtain certificates of final approval of such
Alterations required by any governmental or quasi-governmental authority, or,
if not required, a completion certificate of Tenant, and shall furnish Landlord
with copies thereof, together with “as built” Plans and Specifications for the
Alterations.

 

6.3.4                        If the Alteration is a Major
Alteration, any other conditions to Landlord’s approval thereof shall be
satisfied by Tenant at Tenant’s sole expense.

 

ARTICLE VII - MECHANICS’ LIENS

 

7.1                                 Tenant Caused Liens Prohibited. 
Except for Landlord Caused Liens, Tenant covenants that it will not
cause or permit any lien to be filed, asserted or otherwise exist against the
Premises or any part thereof as a result of (a) nonpayment for, or
disputes with respect to, labor, material, services or equipment furnished to
the Premises or the Project, or both, for or on behalf of Tenant, or any party
acting by, through, or under Tenant or (b) any judgment, lien or
attachment against the Premises or any part thereof caused by the wrongful acts
or omissions of Tenant or any party acting by, through, or under Tenant.  If Tenant fails to pay off and discharge any
such lien, or to provide a cure therefor as provided in Section 7.2
below, then Landlord shall have the right, but not the obligation, to obtain
the release of such lien by paying off the amount claimed due, or otherwise
settling or compromising the amount claimed. 
In such event, Tenant shall reimburse Landlord for the entire cost thereof,
on demand, together with interest on the amount paid at the Default Interest
Rate until paid.  Notwithstanding
anything to the contrary in this Lease, in no event shall Landlord be deemed to
have agreed or consented to any mechanic’s lien (or other lien for material,
labor or services) against Landlord’s interest in the Premises whether pursuant
to the provisions of this Lease, by implication or otherwise; it being agreed
that if any mechanic’s liens (or 

 

13

 

other comparable liens) are claimed or arise
out of the Project, or otherwise, the same shall attach only to the leasehold
interest of Tenant in the Premises and not to Landlord’s fee simple interest
therein.

 

7.2                                 Tenant’s Limited Cure Right.  If (a) any
lien of any nature, including but not limited to liens of the nature described
in Section 7.1 above, is filed
against the Premises or any part thereof or is asserted against Landlord, and (b) Tenant
in good faith disputes the claimant’s right to such lien, then Tenant shall
have the right to contest the filing of such lien without the same constituting
a Default if Tenant causes all of the following conditions to be satisfied with
respect to such lien at all times until the same is fully released and
discharged as a lien or potential lien against the Premises, any part thereof
or Landlord:

 

7.2.1                        Tenant gives Landlord notice of the claim of
such lien within ten (10) days after Tenant’s receipt of any written claim
or notice of filing of such lien together with the basis for Tenant’s dispute thereof,
and Tenant shall promptly furnish to Landlord such other information as
Landlord may request from time to time with respect thereto;

 

7.2.2                        Within thirty (30) days after the filing or
assertion of any such lien in the Real Estate Records (or such other
governmental office as may be appropriate for the filing of such a lien),
Tenant causes one or more of the following to occur (each at no cost or expense
to Landlord):  (a) the lien claimant
duly executes, acknowledges and delivers a full waiver and release of such lien
together with such other documents as may be required under applicable law to
cause such lien to be released and discharged as a lien against the Premises,
any part thereof or Landlord; (b) a bond is provided in accordance with
applicable Law, in the requisite amount and in form, which causes such lien to
be released and discharged as a lien against the Premises, any part thereof or
Landlord as a matter of law; (c) Landlord is provided with a title
insurance policy, or an endorsement to a title insurance policy previously
issued to Landlord, insuring Landlord against any loss, damage or expense
(including attorneys’ fees and all other costs of defense) arising out of such
lien; and

 

7.2.3                        Tenant causes such lien to
be diligently contested in good faith by appropriate legal proceedings and
promptly reimburses Landlord for any reasonable cost or expense, including,
without limitation, reasonable attorneys’ fees, suffered or incurred by
Landlord as a result thereof.

 

7.3                                 Tenant’s Indemnity. Tenant hereby agrees to indemnify, defend
(by counsel reasonably acceptable to Landlord) and hold harmless Landlord and
the Premises from and against, any and all claims, causes of action, liens,
claims of liens, liabilities, losses, damages, judgments, settlements, demands,
penalties and expenses (including reasonable attorneys’ fees and expenses)
suffered or incurred by Landlord or the Premises as a result of any lien or
claim of lien of the nature described in Section 7.1
above.

 

7.4                                 Landlord Caused Liens Prohibited. 
Landlord covenants that it will not cause or permit any lien to be
filed, asserted of otherwise exist against the Premises or any part thereof as
a result of (a) nonpayment for, or disputes with respect to, labor,
material, services or equipment otherwise furnished to, for or on behalf of
Landlord, or (b) any judgment, lien or attachment against the Premises or
any part thereof caused by the wrongful acts or omissions of Landlord.  If Landlord fails to pay off and discharge
any such lien, or to provide a cure therefor as provided in Section 7.5 below, then Tenant shall have the right,
but not the obligation, to obtain the release of such lien by paying off the
amount claimed due, or otherwise settling or compromising the amount
claimed.  In such event, Landlord shall
reimburse Tenant for the entire cost thereof, on demand, together with interest
on the amount paid at the Default Interest Rate until paid.

 

14

 

7.5                                 Limited Cure Right. If (a) any
Landlord Caused Lien is filed, asserted or otherwise exists against the
Premises or any part thereof or is asserted against Landlord or Tenant, and (b) Landlord
in good faith disputes the claimant’s right to such lien, then Landlord shall
have the right to contest the filing of such lien if Landlord causes all of the
following conditions to be satisfied with respect to such lien at all times
until the same is fully released and discharged as a lien or potential lien against
the Premises, any part thereof, Landlord or Tenant :

 

7.5.1                        Landlord gives Tenant notice of the claim of such lien within ten (10) days
after Landlord’s receipt of any written claim or notice of filing of such lien
together with the basis for Landlord’s dispute thereof, and Landlord shall
promptly furnish to Tenant such other information as Tenant may request from
time to time with respect thereto;

 

7.5.2                        Within thirty (30) days after the filing of any such lien in the Real
Estate Records (or such other governmental office as may be appropriate for the
filing of such a lien), Landlord causes one or more of the following to occur
(each at no cost or expense to Tenant):  (a) the
lien claimant duly executes, acknowledges and delivers a full waiver and release
of such lien together with such other documents as may be required under
applicable law to cause such lien to be released and discharged as a lien
against the Premises, any part thereof, Landlord or Tenant; (b) a bond is
provided in accordance with applicable Law, in the requisite amount and in
form, which causes such lien to be released and discharged as a lien against
the Premises, any part thereof, Landlord or Tenant as a matter of law; (c) Tenant
is provided with a title insurance policy, or an endorsement to a title
insurance policy previously issued to Tenant, insuring Tenant against any loss,
damage or expense (including attorneys’ fees and all other costs of defense)
arising out of such lien; and

 

7.5.3                        Landlord  causes such lien to be diligently
contested in good faith by appropriate legal proceedings and promptly
reimburses Tenant for any cost or expense, including, without limitation,
reasonable attorneys’ fees, suffered or incurred by Tenant, as a result
thereof.

 

7.6                                 Landlord Indemnity. Landlord hereby agrees
to indemnify, defend (by counsel reasonably acceptable to Tenant) and hold
harmless Tenant and the Premises from and against, any and all claims, causes
of action, liens, claims of liens, liabilities, losses, damages, judgments,
settlements, demands, penalties and expenses (including reasonable attorneys’
fees and expenses) suffered or incurred by Tenant or the Premises as a result
of any Landlord Caused Lien or claim thereof.

 

ARTICLE
VIII - CONDEMNATION

 

8.1                                 Interests of Parties on Condemnation. If
the Premises or any part thereof is taken by condemnation as a result of any
action or proceeding in eminent domain, or is transferred in lieu of
condemnation to any authority entitled to exercise the power of eminent domain,
the interests of Landlord and Tenant in the award or consideration for such
transfer (the “Compensation”),
and the allocation of the Compensation and the other effects of the taking or
transfer upon this Lease, shall be as provided by this Article.

 

8.2                                 Total Taking - Termination. If
the entire Premises is taken or so transferred, this Lease and all right, title
and interest of Landlord and Tenant hereunder shall cease and terminate on the
date title to the Premises vests in the condemning authority.

 

8.3                                 Partial Taking - Termination. In
the event of the taking or transfer of only a part of the Premises, leaving the
remainder of the Premises in such location, or in such form, shape or reduced
size as to be not suitable, in the reasonable opinion of Tenant, for the
continued feasible and economic 

 

15

 

operation
thereon for use as a biodiesel production facility, Tenant may terminate this
Lease, such termination to be effective as of the date title to the portion of
the Premises being taken is transferred to the condemning authority, if Tenant
gives Landlord written notice thereof on or before the effectiveness of such
condemnation.

 

8.4                                 Partial Taking - Continuation. In
the event of such taking or transfer of only a part of the Premises and this
Lease is not terminated pursuant to Section 8.3,
this Lease shall terminate only as to the portion of the Premises so taken or
transferred as of the date title to such portion vests in the condemning
authority or the date possession of such portion is taken by the condemning
authority, whichever occurs first, and shall continue in force and effect as to
the portion of the Premises not so taken or transferred, and the rent and other
obligations of Tenant hereunder shall be equitably abated.

 

8.5                                 Allocation of Award. Any Compensation
awarded or payable because of the taking of all or any portion of the Premises
by eminent domain shall be divided as follows in the following order of
priority:

 

8.5.1                        first, Landlord
and Tenant shall be entitled to receive their respective costs and expenses,
including, without limitation, reasonable attorney’s fees, in connection with
the taking; and

 

8.5.2                        next, any
remainder of the Compensation shall be allocated between Landlord and Tenant
based upon the present values of their respective interests in the Premises,
taking into account Landlord’s reversionary interest in the Premises and the
number of years remaining until the Lease Term Expiration Date.

 

8.6                                 Voluntary Conveyance. A voluntary conveyance
to a public or governmental utility, agency or authority under threat of a
taking under the power of eminent domain in lieu of formal proceedings shall be
deemed a taking within the meaning of this Article 8.

 

8.7                                 Temporary Taking. In the event of a
taking of all or any portion of the Premises for temporary use during the Lease
Term, the foregoing provisions of this Article 8
shall be inapplicable thereto; this Lease shall continue in full force and
effect without reduction or abatement of rent; and Tenant alone shall be
entitled to make claim for, recover, and retain any Compensation recoverable in
respect of such temporary use, whether in the form of rent or otherwise. If the
award is made in a lump sum covering a period after the Lease Term Expiration
Date, then Landlord also shall be entitled to make claim for and participate in
the award proportionately.

 

8.8                                 Assignments. Each of Landlord and Tenant
hereby assigns to the other such interest in all Compensation for any taking as
is necessary to accomplish the division of such awards as provided in this Article 8. To the extent possible, Landlord and Tenant
shall separately prosecute their respective claims for damage arising as a
result of any taking.

 

ARTICLE
IX - ASSIGNMENT AND SUBLETTING

 

9.1                                 Assignment Prohibited Without Consent. Except
as provided below, Tenant shall not voluntarily or involuntarily assign,
mortgage or encumber or otherwise transfer Tenant’s right, title or interest
under this Lease without Landlord’s prior written consent in each instance, which
consent may be granted, withheld, delayed or conditioned in Landlord’s sole and
absolute discretion. If Tenant executes an instrument which purports to assign,
mortgage or encumber or otherwise transfer Tenant’s right, title or interest
under this Lease without the requisite consent of Landlord, then (a) such
instrument shall be null and void and without any force or effect, and (b) the
execution of such instrument shall constitute a 

 

16

 

Default
on the part of Tenant under this Lease. Notwithstanding the foregoing, Tenant
may assign, mortgage, encumber and/or otherwise transfer this Lease to
Leasehold Lender without Landlord’s consent; provided, however,
that Tenant shall deliver to Landlord, at least ten (10) Days prior to any
such assignment, (i) written notice of such assignment and (ii) a
copy of the instrument of assignment. Any leasehold lender or any successor or
assignee of such leasehold lender may assign, mortgage, encumber or otherwise
transfer its right, title or interest under this Lease to any person or entity,
subject to Landlord’s right of first offer set forth in Article XVIII
and the terms and conditions of the Landlord and Mortgagee
Agreement.

 

9.2                                 Subleases. Tenant shall not enter into any
sublease of all or any part of the Premises without the prior written consent
of Landlord, which consent may be granted, withheld, delayed or conditioned in
Landlord’s sole and absolute discretion. Any sublease entered into by Tenant
shall be expressly subject to the terms and conditions of this Lease and shall
obligate the Sublessee thereunder to observe and perform all of the covenants
and obligations of Tenant hereunder. Notwithstanding the provision of any such
sublease, Tenant shall remain fully and primarily liable to Landlord for of all
of the covenants and obligations of Tenant under this Lease.

 

9.3                                 Enforcement of Subleases. If
any Sublessee breaches any provision of this Lease, then, at the request of
Landlord, Tenant shall terminate such Sublessee’s right to possession of the
Premises or portion thereof occupied by such Sublessee, and shall pursue all
available remedies for the eviction of such Sublessee. Such remedies shall be
pursued diligently and in good faith and shall further be conducted at Tenant’s
sole expense.

 

9.4                                 Landlord’s Right to Mortgage. Landlord shall have the right at any time
and from time to time to place one or more mortgages on all or any part of the
Land and to assign the Rents as further collateral for any such mortgage loan. Any
such mortgage shall be subject and subordinate to the provisions of this Lease
and the Leasehold Mortgage.

 

9.5                                 Landlord’s Right to Sell or Convey. Nothing contained in this Lease shall be
deemed in any way to limit or restrict or otherwise affect Landlord’s absolute
right at any time to convey its interest in the Land to any Person at any time
and from time to time. In the event of any such conveyance (whether pursuant to
a consensual sale or pursuant to a foreclosure sale under a mortgage affecting
Landlord’s interest in the Land), (a) the transferor shall be relieved
from and after the date of such conveyance of all liability relative to
obligations of the Landlord to be performed under this Lease after the
effectiveness of such conveyance, (b) Tenant shall attorn to the
transferee as the new Landlord under this Lease, and (c) Tenant shall
thereafter pay the Rent payable by Tenant to the new Landlord.

 

9.6                                 Subordination. Unless agreed upon by Landlord in writing,
Landlord’s interest in this Lease shall not be subject to or subordinate to (a) any
mortgage affecting Tenant’s leasehold interest in the Land, or (b) any
other liens or encumbrances hereafter affecting Tenant’s interest in the
Premises.

 

ARTICLE
X - INSURANCE

 

10.1                           Special Perils Insurance. From and after the Rental Commencement
Date, Tenant shall maintain property insurance against all risks of loss to the
Premises customarily covered by so-called “All Risk” or “Special Perils Form”
policies as available in the insurance market as of the Effective Date
(collectively, the “Special Perils Insurance”). Special Perils Insurance
shall cover at least the following perils: 
fire, lightening, flood, water damage, impact of vehicles and aircraft,
tsunami, mudslide, subsidence, building collapse, windstorm, hurricane,
vandalism, and malicious mischief. Special Perils Insurance shall also cover
such other insurable perils as, under good insurance practices, other 

 

17

 

commercial property owners from time to time
insure against for property and improvements similar to the Premises in nature,
use, location, height, and type of construction, as evidenced by written advice
from Landlord’s insurance advisor (“Comparable Properties”). Each
Special Perils Insurance policy shall cover: 
(a) additional expense of demolition and increased cost of
construction, , including increased costs that arise from any changes in Laws
regulating any Restoration; and (b) at least 100% of the replacement cost
value of the Improvements. Any Special Perils Insurance policy shall contain an
agreed amount endorsement or a coinsurance waiver and replacement cost value
endorsement without reduction or depreciation. If Tenant’s Special Perils
Insurance does not otherwise cover damage caused by the acts of terrorists,
then Tenant shall provide such coverage under a separate policy that complies
with all requirements that would apply to Special Perils Insurance.

 

10.2                           Flood Insurance. If any Improvements are located in an area
designated as “flood prone” or a “special flood hazard area” under the
regulations for the National Flood Insurance Act of 1968 and the Flood Disaster
Protection Act of 1973, Tenant shall maintain at least the maximum coverage for
the Premises available under the federal flood insurance plan. Landlord may
require additional flood insurance coverage, including related Rent Loss
Insurance. Any insurance this paragraph requires is referred to as “Flood
Insurance.”

 

10.3                           Earthquake Insurance. If required by Landlord, Tenant shall
maintain earthquake insurance (the “Earthquake Insurance”). Landlord may
change its requirements for Earthquake Insurance from time to time based
on:  (a) Landlord’s review of a
current probable maximum loss seismic study, to be prepared at Tenant’s
expense; (b) actual and potential losses at any other locations the same
Earthquake Insurance covers and sharing the policy’s occurrence and annual
aggregate limits of available coverage; and (c) the amount of lost
business or rental income to be expected during Restoration. Deductibles shall
be satisfactory to Landlord, but never more than 5% of the location insurable
values.

 

10.4                           Boiler and Machinery Insurance. From and after the Rental Commencement
Date, Tenant shall maintain comprehensive boiler and machinery insurance
covering all mechanical and electrical equipment against physical damage, rent
loss, extra expense, and expediting expense covering Tenant’s property (the “Boiler
and Machinery Insurance”). Tenant shall provide Boiler and Machinery Insurance
on a replacement cost value basis.

 

10.5                           Builder’s Risk Insurance. During the construction of the Project and
any other construction by or on behalf of Tenant, Tenant shall maintain, or
cause to be maintained, builder’s risk insurance for not less than the full
completed project insurable value of the Improvements, covering the same risks
and otherwise complying with the same requirements as Special Perils Insurance,
to such limits and with such coverage extensions as Landlord may require (the “Builder’s
Risk Insurance”), except to the extent included in Tenant’s Special Perils
Insurance. Any Builder’s Risk Insurance shall be written on a “completed value”
form (100% non-reporting) or its equivalent and shall include an endorsement
granting permission to occupy. Builder’s Risk Insurance shall cover:  (a) the same perils that Special Perils
Insurance must cover; (b) loss of materials, equipment, machinery, and
supplies whether on-site, in transit, or stored off-site, or of any temporary
structures, hoists, sidewalks, retaining walls, and underground property; (c) soft
costs, plans, specifications, blueprints and models; and (d) demolition
and increased cost of construction, including increased costs arising from
changes in Laws at the time of Restoration and coverage for operation of
building Laws, all subject to a sublimit satisfactory to Landlord.

 

10.6                           Rent Loss Insurance. Intentionally Omitted.

 

18

 

10.7                           Liability Insurance. Tenant shall maintain the following
insurance for personal injury, bodily injury, death, accident and property
damage (collectively, the “Liability Insurance”): (a)  public
liability insurance, including commercial general liability insurance, (b) owned
(if any), hired, and non-owned automobile liability insurance; and (c) umbrella
liability insurance. Liability Insurance shall provide coverage of at least
$3,000,000 million per occurrence and $10,000,000 million in the annual
aggregate, per location. If any Liability Insurance also covers other location(s) with
an aggregate limit, then the minimum Liability Insurance shall be increased to
$20,000,000 million. Liability Insurance shall include coverage for liability
arising from premises and operations, elevators, escalators, independent
contractors, contractual liability (including liability assumed under contracts
and leases), and (from and after the Rental Commencement Date) products and
completed operations. All Liability Insurance shall name Landlord and all
leasehold lenders as “Additional Insured Parties” by an endorsement
satisfactory to Landlord and such leasehold lenders.

 

10.8                           Statutory Employees’ Insurance. Tenant shall maintain workers’ compensation
and disability insurance as Law requires.

 

10.9                           Other Insurance. Tenant shall maintain such other types and
amounts of insurance for the Premises and its operations as Landlord shall from
time to time require, consistent with insurance commonly maintained for
reasonably comparable properties. Wherever any Required Insurance specifies any
dollar amount, Landlord may increase that dollar amount periodically to reflect
Landlord’s reasonable estimate of inflation.

 

10.10                     Documentation. Tenant shall cause Landlord and all
leasehold lenders to be named as Additional Insured Parties on all Property
Insurance and Liability Insurance.

 

10.11                     Policy Requirements. Tenant shall secure all Required Insurance
from domestic insurer(s) authorized to do business in the State and
reasonably satisfactory to Landlord with: (a) a claims paying ability of not
less than “AA-” (or the equivalent) by S&P and one other Rating Agency
satisfactory to Landlord; and (b) “A- IX” or better financial strength
rating by AM Best. Tenant shall obtain Landlord’s reasonable approval of the
form, substance, amounts, risk coverage, sublimits, deductibles, loss payees,
and insureds for all Required Insurance. Required Insurance shall contain such
provisions as Landlord deems reasonably necessary or desirable to protect its
interest, including an endorsement stating that neither Tenant, Landlord, nor
any other party shall be deemed a co-insurer. Tenant shall pay the premiums for
all Required Insurance when due and payable. Tenant shall not finance insurance
premiums under any arrangement that could result in the premature cancellation
of any Required Insurance. Tenant shall deliver to Landlord, immediately upon
issuance, copies of the insurance policies for all Required Insurance,
certified as true and complete by the carrier or its authorized representative.
At least 30 days before any policy expires, Tenant shall deliver evidence of
renewal in compliance with this Lease. If Tenant fails to do so by such date,
then without limiting Landlord’s remedies, Landlord may (but shall have
absolutely no obligation to) procure any Required Insurance, and Tenant shall
reimburse Landlord for the cost thereof on demand, together with interest
thereon accruing from the date such expense was incurred at the Default
Interest Rate. Tenant’s obligation to reimburse Landlord for such insurance
shall constitute additional rent due hereunder.

 

10.12                     Protection of Landlord’s Interest. In each insurance policy (or an endorsement
thereto), the carrier shall:  (a) agree
not to cancel, terminate, or non-renew such policy without giving Landlord
thirty (30) days prior written notice (10 days notice for nonpayment of
premium); (b) agree not to change the deductible, coverage limit(s), or
other term(s) of such policy, if the policy would thereafter cease to
comply with this Lease; (c) waive any right to claim any premiums and
commissions against Landlord, provided that the policy need not waive the
requirement that the premium be paid in order for a claim to 

 

19

 

be paid to the insured; and (d) allow
Landlord to pay premiums to continue such policy upon notice of cancellation
for nonpayment. If Landlord pays any such premiums, then Tenant shall
immediately reimburse Landlord for the cost thereof, with interest thereon at
the Default Interest Rate, and such reimbursement obligation shall constitute
additional rent due hereunder. Every Property Insurance policy shall provide
that as to Landlord’s interest, such policy shall remain valid and shall insure
Landlord regardless of any:  (a) named
insured’s act, failure to act, negligence, or violation of warranties,
declarations, or conditions; (b) occupancy or use of the Premises for
purposes more hazardous than those permitted; or (c) Landlord’s exercise
of any Landlord’s remedies under this Lease for Default.

 

10.13                     No Separate Property Insurance. Tenant shall not carry any separate
property insurance that would raise co-insurance issues with respect to any
Required Insurance. Landlord acknowledges and agrees that Leasehold Lender may
be the first loss payee on any such insurance.

 

10.14                     Landlord’s Rights; No Liability. Notwithstanding anything to the contrary in
this Lease, if at any time Landlord has not received satisfactory written
evidence that Tenant maintains all Required Insurance in full force and effect
in full compliance with this Agreement and has paid all required premiums, then
Landlord may at its option take such action as Landlord deems necessary to
protect Landlord’s interests, including obtaining such insurance coverage(s) as
Landlord shall deem appropriate. Any sums expended by Landlord in procuring
such insurance shall be repaid by Tenant, together with interest thereon at the
Default Interest Rate, from the time of payment by Landlord until fully paid by
Tenant immediately upon written demand therefor by Landlord. Tenant irrevocably
authorizes Landlord, at any time, to communicate directly with Tenant’s
insurance carrier(s), broker(s), and Tenant(s) regarding any Required
Insurance. Tenant shall promptly upon demand deliver to Landlord further
written authorizations addressed to such Persons, and authorizes and directs
all such Persons to communicate directly with Landlord at Landlord’s request. The
procuring of such Required Insurance shall not be construed to limit Tenant’s
liability hereunder, nor to fulfill the indemnification provisions and
requirements of this Lease. Any direct communications by Landlord shall
not:  (a) impose any obligation or
liability on Landlord: or (b) entitle Tenant to any defense, offset, or
counterclaim against the Rent. If at any time Landlord makes any determination
or request regarding the amount, scope, or terms of any Required Insurance, any
such determination or request shall impose no obligation or liability on
Landlord. Tenant shall not rely upon any such determination or request. Tenant
acknowledges that any such determination or request would be made solely for
Landlord’s own benefit and not for Tenant’s benefit. Tenant shall retain sole
responsibility for the adequacy and appropriateness of its insurance program
without relying on Landlord. Notwithstanding said policies of insurance, Tenant
shall be obligated for the full and total amount of any damage, injury, or loss
caused by Tenant’s negligence connected with this Lease or with the use or
occupancy of the Premises.

 

10.15                     Waiver of Subrogation,  Each of Landlord and Tenant hereby waives any
rights it may have against the other on account of any loss or damage
occasioned to Landlord or Tenant, as the case may be, their respective
property, the Premises or the contents of the Premises arising from any risk
covered by casualty insurance carried or required to be carried in this Article 10, when and to the extent, that such loss or
damage is actually compensated pursuant to such insurance. Landlord and Tenant
also agree that any insurance policies obtained by each of them pursuant to
this Lease shall contain endorsements waiving any right of subrogation which
the insurer may otherwise have against the noninsuring party. The foregoing
release and the foregoing requirement for waivers of subrogation shall be
operative only so long as the same shall neither preclude the obtaining of such
insurance nor diminish, reduce or impair the liability of any insurer.

 

20

 

ARTICLE
XI - DAMAGE AND DESTRUCTION

 

11.1                           Tenant’s Restoration. Subject to the
provisions of Section 11.2 below, if a loss
by fire or other casualty occurs which causes destruction or damage to the
Improvements, then the parties agree as follows:

 

11.1.1                  Tenant shall diligently pursue the reconstruction, restoration and repair
of the Premises (the “Restoration Work”) in compliance with all
applicable Laws and shall cause the Improvements to be completely restored to
their condition immediately prior to such casualty as expeditiously as
possible.

 

11.1.2                  If no Default
has occurred and is continuing, Tenant shall have the right to adjust, and
shall pay the entire cost of adjusting, such loss with the Property Insurance
provider, subject to the approval of Landlord as to amount (such approval not
to be unreasonably withheld or delayed), and provided that the same are
deposited with Landlord or title company or disbursing agent reasonably
acceptable to Landlord.

 

11.1.3                  All Insurance Proceeds, together with such additional amounts as Tenant
may be required to contribute to pay for all Restoration Work shall be
deposited with Landlord or an escrow agent reasonably satisfactory to Landlord
(the “Escrow Agent”), pursuant to an construction escrow disbursing
agreement reasonably satisfactory to Landlord. Tenant shall pay the fees and
expenses of the Escrow Agent .

 

11.1.4                  To the extent any Insurance Proceeds are paid to Tenant, the same shall be
held by Tenant in trust solely for the purpose of paying the cost of the
Restoration Work until such time as the same are deposited into escrow as
required herein.

 

11.1.5                  Tenant shall cause the Improvements to be fully restored to that condition
existing immediately prior to such casualty (or such other condition as
Landlord may approve in Landlord’s sole and absolute discretion) not later than
one year following the date of damage.

 

11.1.6                  Tenant shall pay all costs of the Restoration Work, regardless of whether
the available Insurance Proceeds are sufficient to pay such costs.

 

11.1.7                  The Base Rent
shall not abate, it being agreed that Tenant shall be entitled to insure such
obligation.

 

11.2                           Casualty During Last Two Years of Lease Term. Notwithstanding the foregoing, if (a) a fire or other casualty
occurs, which causes destruction or damage to the Improvements, within the last
two (2) years of the Lease Term, (b) the damage or destruction is
material, and (c) no Default has occurred and is continuing as of the date
such casualty occurred, then Tenant shall have the right to terminate this Lease
by giving Landlord written notice thereof within sixty (60) days after the date
such casualty occurred. If this Lease is terminated as aforesaid, then the
parties agree as follows:

 

11.2.1                  Tenant shall have no obligation to perform any Restoration Work, provided
that Tenant performs its other obligations hereunder;

 

11.2.2                  Tenant shall take any and all actions requested to Landlord to cause the
Insurance Proceeds to be made available for reconstruction of the Improvements
(including, without limitation, 

 

21

 

assigning
any Required Insurance to Landlord (to the extent assignable) or contracting
for such reconstruction (to the extent the Insurance Proceeds are not
assignable)); and

 

11.2.3                  Tenant shall cooperate with Landlord in causing an orderly transition of
ownership of the Improvements to occur.

 

ARTICLE
XII - HAZARDOUS MATERIALS

 

12.1                           Definitions. As used in this Article, the following definitions shall apply:

 

12.1.1                  The term “Hazardous Substance” means quantities
of any substances or materials which are categorized or defined as hazardous or
toxic under any present or future local, state or federal law, rule or
regulation pertaining to environmental regulation, contamination, cleanup or
disclosure, including, without limitation, the Comprehensive Environmental
Response, Compensation and Liability Act (“CERCLA”, 42 U.S.C. Sect. 9601, et.
seq.), as amended, the Resource Conservation and Recovery Act (42 U.S.C.
Sect. 6901, et. seq.), as amended, the Clean Water Act (33 U.S.C. Sect.
1251, et. seq.), as amended, the Clean Air Act (42 U.S.C. Sect. 7401, et.
seq.), as amended, Superfund Amendments and Reauthorization Act, or state
super lien or environmental cleanup or disclosure statutes (all such laws and
regulations being referred to herein collectively as “Environmental Laws”).

 

12.1.2                  “Release” means any releasing,
spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, leaching, disposing or dumping.

 

12.1.3                  “Notice” means any summons, citation,
directive, order, claim, litigation, investigation, proceeding, judgment,
letter or other communication, written or oral, actual or threatened, from any
federal, state or local governmental agency or authority or any other entity or
individual (including, without limitation, any owner of property adjacent to or
near the Premises or any other entity or individual suffering or alleging
property damage or personal injury) concerning any intentional or unintentional
act or omission that has resulted in or may result in the Release of a
Hazardous Substance into the “environment” as such term is defined in CERCLA,
from or on the Premises or Project, or any actual or constructive knowledge,
after due inquiry and investigation, of any fact that could give rise to any of
the above.

 

12.1.4                  “Environmental Condition” means any
condition with respect to the air, soil, surface, surface water, groundwater,
stream sediments and any similar condition that currently or in the future
could require investigative or remedial action and/or may result in claims,
demands or liabilities against or to Tenant by third parties, including,
without limitation, any federal, state or local governmental agency or
authority, any owner of property adjacent to or near the Premises or any other
entity or individual suffering or alleging property damage or personal injury.

 

12.2                           Tenant’s Obligations with respect to
Hazardous Substances. Tenant
shall not cause or permit, and shall not permit its agents, employees or
contractors to cause or permit, any Release at or on the Premises of any
Hazardous Substances in violation of, or in a manner which is reasonably likely
to result in a violation of or liability under any Environmental Laws. Tenant
shall exercise, and shall cause its subtenants and its and their respective
agents, employees and contractors to exercise due care in the handling, storage
or transportation of any Hazardous Substances. Tenant shall not permit the
Premises to be used or operated in a manner that may cause the Premises to be
contaminated by any Hazardous Substances in violation of, or in a manner which
is reasonably likely to result in a violation of or liability under, any
Environmental Laws. Tenant covenants that it shall cause any maintenance,
repairs or alterations of the Premises undertaken by, through or under the
Tenant to be done in a way so as not to 

 

22

 

violate Environmental Laws or expose persons
working on or visiting the Premises to Hazardous Substances in excess of safety
levels established by applicable Environmental Laws.

 

12.3                           Tenant’s Indemnification with respect to
Hazardous Substances. Tenant
shall be solely responsible for and shall defend, indemnify and hold harmless
Landlord and all other Landlord Indemnified Parties from and against all
claims, liability and expenses of any kind (including without limitation
reasonable expenses of investigation by engineers, environmental consultants
and similar technical personnel and reasonable fees and disbursements of
counsel), arising out of, in respect of or in connection with (i) Tenant’s
breach of its obligations in this Article, (ii) the occurrence of any
Environmental Condition not caused by Landlord at, on or under the Premises at
any time during the Lease Term, (iii) the Release, threatened Release or
presence of any Hazardous Substances not caused by Landlord at, on or under the
Premises at any time during the Lease Term, or (iv) any matters arising
under or relating to any Environmental Law and relating to the Tenant or the
Premises.

 

12.4                           Notices of Environmental Issues. Immediately upon obtaining knowledge
thereof, Tenant shall give to the Landlord notice of the occurrence of any of
the following events: (i) the failure of the Tenant or the Premises to
comply with any Environmental Law in any manner whatsoever; (ii) the
issuance to the Tenant or any assignee thereof of any Notice with regard to the
Premises or the use thereof; (iii) any notice (written or oral) of a
pending or threatened investigation as to whether the Premises or the Tenant’s
(or its assignees’) operations on the 
Premises are in compliance with or may lead to liability to the Tenant
or the Landlord under any Environmental Law; or (iv) the occurrence of an
event or the existence of a situation which is reasonably likely to result in a
violation of or liability under an Environmental Law with respect to the
Premises or which is likely to result in the Tenant being liable to the
Landlord by virtue of the indemnity given by the Tenant pursuant to this
Article.

 

12.5                           Landlord’s Right to Inspect. If Landlord believes that Environmental
Laws are being violated on the Premises, or at the request of any prospective
purchaser of the Premises or any prospective lender, Landlord and its agents
shall have the right, but not the duty, to inspect the Premises and conduct
tests thereon at any time to determine whether or the extent to which there is
Hazardous Substances or toxic or infectious waste on the Premises. Landlord
shall have the right to immediately enter upon the Premises to remedy any
contamination found thereon. In exercising its rights herein, any interference
with Tenant’s business shall not constitute an eviction of Tenant, in whole or
in part, and Landlord shall not be liable for any interference, loss, or damage
to Tenant’s property or business caused thereby. If Landlord performs any
testing or other investigation to ascertain whether there has been a Release of
Hazardous Substances in violation of any Environmental Laws, then Landlord’s
reasonable costs incurred in connection with such testing shall be reimbursed
by Tenant to Landlord upon demand, as additional Rent, together with interest
thereon at the Default Interest Rate from the date of Landlord’s disbursement
until paid. At Landlord’s request, Tenant shall execute affidavits,
representations and estoppels from time to time, concerning Tenant’s knowledge
and belief regarding the presence of any Hazardous Substance on the Premises. The
covenants and obligations of Tenant hereunder shall survive any termination or
expiration of the Lease Term.

 

12.6                           Survival. The indemnity obligations of the Tenant and the rights and remedies
of the Landlord under this Article shall survive the termination of this
Lease.

 

ARTICLE
XIII - DEFAULTS AND REMEDIES

 

13.1                           Tenant’s Default. The occurrence of any one or more of the
following events shall constitute a “Default” on the part of the Tenant:

 

23

 

13.1.1                  Intentionally Omitted;

 

13.1.2                  The failure by Tenant to observe, pay or
perform any covenant or obligation under this Lease (excluding, however, the
obligation to cause construction of the Plant to be substantially completed on
or before the Required Completion Date as set forth in Section 2.6  and the obligations of Tenant under Section 5.1.1) not covered by the other provisions of
this Section 13, as and when required,
and such failure is not cured within thirty (30) days after Landlord gives
Tenant written notice thereof, provided, however, that if the
nature of such failure is such that more than thirty (30) days are reasonably
required to cure the same, then a Default shall not be deemed to have occurred
if (1) Tenant promptly commences such cure within the aforesaid thirty
(30) day period, (2) Tenant diligently and in good faith pursues such cure
until fully cured, and (3) Tenant completes such cure in any event within
one hundred twenty (120) days after Landlord gave such notice; provided,
however, notwithstanding the foregoing, Landlord shall have no right to
terminate the Lease until the expiration of Leasehold Lender’s cure rights set
forth in that certain Landlord and Mortgagee Agreement by and between Landlord
and Leasehold Lender;

 

13.1.3                  Intentionally Omitted;

 

13.1.4                  The purported subletting of the Premises or
any part thereof or purported assignment of this Lease by Tenant without the
prior written consent of Landlord;

 

13.1.5                  Tenant shall (i) apply for or consent to
the appointment of a receiver, trustee, custodian or liquidator of itself for
all or a substantial part of its assets, (ii) be unable, or admit in
writing its inability, to pay its debts as they mature, (iii) make a
general assignment for the benefit of creditors, (iv) be adjudicated a
bankrupt or insolvent, (v) file a voluntary petition in bankruptcy, or
seek an arrangement with creditors, or take advantage of any insolvency law or
file an answer admitting the material allegations of a petition filed against
itself in any bankruptcy, reorganization or insolvency proceedings, (vi) take
any action to effectuate any of the foregoing, or (vii) become insolvent, (viii) have
filed against it a petition in bankruptcy which is not dismissed within sixty
(60) days after the filing thereof; or (ix) suffer any material adverse
change to its financial condition from such condition on the date hereof;

 

13.1.6                  The leasehold interest of Tenant is levied
upon under execution or is attached by process of law; or

 

13.1.7                  Intentionally Omitted.

 

13.2                           Remedies. If a Default occurs, then Landlord may exercise any one or more of
the following remedies, to the extent permitted by law, or any other legal or
equitable remedy permitted under applicable Laws:

 

13.2.1                  Landlord may terminate this Lease (and
accelerate the Lease Term Expiration Date) upon the delivery of notice thereof
to Tenant and Landlord shall have the right to immediate possession of the
Premises and Tenant shall peacefully surrender possession of the Premises to
Landlord. Tenant hereby waives any and all rights it may have, at law or in
equity, to the receipt of notice of default or demand for forfeiture, except as
expressly provided herein. In the event Tenant holds the Premises over beyond
the termination of the Lease Term, Landlord shall have the right to recover
Landlord’s cost in recovering possession of the Premises (including, without
limitation, attorneys’ fees and litigation costs and expenses), such amounts as
may be permitted under applicable law and any other amounts due and payable to
Landlord hereunder (including, without limitation, past-due Rent). In addition
to the foregoing, if the Lease is terminated as aforesaid, then Landlord shall
also have the right to recover from Tenant all damages allowable to Landlord
under applicable Law as a result of a Default under this Lease.

 

24

 

Landlord shall have no obligation to mitigate
such damages, notwithstanding any obligation which may be implied under
applicable Laws, and the parties agree that such agreement is a material part
of the consideration for this Lease.

 

13.2.2                  Landlord, without terminating this Lease,
shall have the right to terminate Tenant’s right to possess the Premises and to
recover possession thereof and Tenant shall peacefully surrender the Premises
to Landlord. Tenant hereby waives any and all rights it may have, at law or in
equity, to the receipt of notice of default or demand for forfeiture, except as
expressly provided herein. Landlord, at Landlord’s option and without any
obligation, may cause the Premises to be prepared for reletting, and may relet
the Premises or any part thereof as agent of Tenant, for a term to expire prior
to, at the same time as, or subsequent to the expiration of the Lease Term, at
Landlord’s option. In the event of such reletting, Landlord shall receive the
rents therefor, applying the same first, to the repayment of reasonable
expenses as Landlord may have incurred in connection with said resumption of
possession, preparing for reletting and reletting (including, without
limitation, remodeling costs, brokerage and attorneys’ fees), and, second, to
the payment of damages and amounts equal to the Rent due hereunder and to the
cost of performing the other obligations of Tenant as herein provided. Tenant,
regardless of whether Landlord has relet the Premises, shall pay to Landlord
damages equal to the  Rent herein agreed
to be paid by Tenant less the proceeds of the reletting, if any, and such Rent
shall be due and payable by Tenant on the days on which Rent is due hereunder. Landlord
shall have no obligation to mitigate damages, notwithstanding any obligation
which may be implied under applicable Laws, and the parties agree that such
agreement is a material part of the consideration for this Lease.

 

13.2.3                  Landlord may perform for Tenant any of the
obligations Tenant has agreed to perform hereunder if Tenant has defaulted in
the performance of such obligations. Upon demand, Tenant shall reimburse
Landlord for Landlord’s cost of performing for Tenant together with an
administrative charge equal to five percent (5%) of Landlord’s cost of
performance as aforesaid. Any amounts so expended by Landlord shall be
immediately due and payable and the failure of Tenant to pay such amounts shall
entitle Landlord to all of the rights and remedies available to it as if Tenant
had defaulted in the payment of Rent.

 

13.2.4                  Tenant shall pay to Landlord, upon demand,
interest at the Default Interest Rate, compounded monthly, on any past-due
payments of Rent, which interest shall commence to accrue on the first day
after the due date of any such payment regardless of any cure or grace periods
which may be granted hereunder or with respect thereto.

 

13.2.5                  If a Default relates to the failure of Tenant
to pay an installment of Rent, then Tenant shall pay to Landlord, upon demand,
a late fee equal to five percent (5%) of the amount not paid. The payment of
any such late fee shall not cure any Default caused by the failure to make such
payment within the applicable cure period.

 

13.2.6                  Landlord shall have the right at any time
after a Default, and without demand or notice, to bring an action for forcible
entry, forcible detainer or forcible entry and forcible detainer or other legal
proceedings as Landlord may elect.

 

13.2.7                  If a Default causes Landlord to be in default
under the provisions of any loan agreement secured by a mortgage against
Landlord’s interest in the Premises, then Tenant shall, in addition to any
other rights or remedies available to Landlord under this Lease or applicable
law, pay to Landlord any and all losses, damages and expenses suffered or
incurred by Landlord as a result thereof.

 

25

 

13.2.8                  If Landlord
elects to file suit to enforce this Lease or otherwise to protect its rights
hereunder, in addition to the other remedies provided in this Lease and by law,
Landlord may have the appointment of a receiver of the Premises.

 

13.2.9                  Suits for the
recovery of other damages may be brought by Landlord from time to time at its
election, and nothing contained herein shall be deemed to require Landlord to
postpone suit until the date when the Lease Term would have expired. All
remedies of Landlord pursuant to this Section 13.2
and all rights and remedies of Landlord at law or in equity are non-exclusive,
cumulative and concurrent.

 

13.3                           Limitation of Landlord’s Liability.

 

13.3.1                  The
term “Landlord” as used herein means only the current owner or owners of fee
title to the Fee Parcel and the current owner or owners of leasehold title to
the Leasehold Parcel. Notwithstanding anything to the contrary in this Lease,
Tenant shall look solely to the estate and property of the Landlord in the
Premises for the satisfaction of the Tenant’s remedies in the event of any
breach by the Landlord relative to this Lease and no other property or assets
of Landlord shall be subject to levy, execution or other enforcement procedure
for the satisfaction of any liability of Landlord to Tenant. If any Landlord
conveys its interest in the Premises to a third party, then the transferor shall
be relieved of any further liability under this Lease for any matters
attributable to the period after the effectiveness of such conveyance.

 

13.3.2                  Neither Landlord nor its property manager,
nor any of their respective employees, owners, agents or contractors, shall be
liable to Tenant or its employees, agents, contractors or invitees for any
interruption of services to or unavailability of materials at the Premises
(including, without limitation, utilities, trash removal, maintenance and
elevators service) or for any denial of access thereto caused by Force Majeure
Causes or other circumstances not within the reasonable control of Landlord or
its property manager, provided, however, Landlord or its property
managers shall do all things commercially reasonable to enable Tenant to
restore services, availability of materials and access promptly and without
delay.

 

13.3.3                  Neither Landlord nor its property manager,
nor any of their respective employees, owners, agents or contractors, shall be
liable to Tenant or its employees, agents, contractors or invitees for injury
or damage to persons or property caused by the theft, vandalism or other
criminal or tortious conduct of others (except for Landlord) and Tenant hereby
acknowledges that Tenant’s occupancy of the Premises and use of the same is at
Tenant’s own risk.

 

13.4                           Tenant’s Liability After Default. If
there exists any uncured Default by Tenant, without thereby waiving such
Default, Landlord may (but is not obligated to) perform the same for the
account and at the expense of Tenant. If Landlord elects to perform such
obligation for the account of Tenant, upon Landlord’s written demand, Tenant
shall reimburse Landlord for the full amount paid by Landlord together with
Landlord’s expenses incurred in connection therewith, including, without
limitation, reasonable attorneys’ fees and interest at the Default Interest
Rate from the date of Landlord’s disbursement until paid.

 

13.5                           Tenant Bankruptcy. Should Tenant file, or have filed against
it, a petition under Bankruptcy Code (11 U.S.C. § 101 et. seq., as from
time to time amended) and such petition is not dismissed within sixty (60) days
of such filing, then a Default shall be deemed to have occurred hereunder, and
Landlord shall be entitled to all rights and remedies hereunder and otherwise.

 

26

 

13.5.1                  If Tenant becomes a debtor under Chapter 7 or
Chapter 11 of the Bankruptcy Code and Tenant’s trustee or Tenant, as
debtor-in-possession (such trustee or debtor-in-possession being referred to
herein as “Tenant’s Trustee”), shall elect to assume this Lease for its
own use or for the purpose of assigning the same or otherwise, then such
election or assignment may be made only if all of the provisions of this
paragraph are satisfied. If Tenant’s Trustee shall fail to elect to assume this
Lease within sixty (60) days after the filing of a petition or such additional
time as provided by the Bankruptcy Court within such 60-day period, then this
Lease shall be deemed to have been rejected. Immediately thereupon, Landlord
shall be entitled to possession of the Premises without further obligation to
Tenant or Tenant’s trustee and this Lease shall terminate, but Landlord’s right
to be compensated for damages in any such proceeding shall survive

 

13.5.2                  If a petition for reorganization or
adjustment of debts is filed concerning Tenant under Chapter 11, then Tenant’s
Trustee must elect to assume this Lease within the earlier of (i) confirmation
of the plan, or (ii) one hundred twenty (120) days from the date of the
filing of the petition under Chapter 11 or such transfer thereto, or this Lease
shall be deemed to have been rejected. If Tenant’s Trustee has failed to
perform all of Tenant’s obligations under this Lease within the time periods
(excluding grace periods) required for such performance, then no election to
assume this Lease, whether under Chapter 7 or Chapter 11, shall be effective
unless each of the following conditions have been satisfied:

 

(a)                                  Tenant’s Trustee has cured or has provided
Landlord with Assurance (as defined below) that it will cure, (1) all
monetary defaults under this Lease within ten (10) days from the date of
such assumption, and (2) all non-monetary defaults under this Lease within
thirty (30) days from the date of such assumption;

 

(b)                                 Tenant’s Trustee has compensated, or has
provided Landlord with Assurance that within ten (10) days from the date
of such assumption it will compensate Landlord for any pecuniary loss incurred
by Landlord arising from the default of Tenant or Tenant’s Trustee indicated in
any statement of pecuniary loss sent by Landlord to Tenant’s Trustee;

 

(c)                                  Tenant’s Trustee has provided Landlord with
Assurance of the future performance of each of the obligations under this Lease
of Tenant or Tenant’s Trustee and has deposited with Landlord, as security
for the timely payment of Rent hereunder, an amount equal to three (3) monthly
installments of Base Rent; and the obligations imposed upon Tenant’s Trustee
shall continue with respect to Tenant or any assignee of Tenant’s interests in
this Lease after the completion of bankruptcy proceedings; and

 

(d)                                 Such assumption will not breach or cause a
default under any provision of any other lease, mortgage, financing agreement
or other agreement by which Landlord is bound relating to the Premises.

 

For purposes of this paragraph, Landlord and
Tenant acknowledge that “Assurance” shall mean no less than: (i) Tenant’s
Trustee has and will continue to have sufficient unencumbered assets after the
payment of all secured obligations and administrative expenses to assure
Landlord that sufficient funds will be available to fulfill the obligations of
Tenant under this Lease, and (ii) the Bankruptcy Court shall have entered
an order segregating sufficient cash payable to Landlord, and/or Tenant’s
Trustee shall have been granted a valid and perfected priority lien and
security interest and/or mortgage in property of Tenant or Tenant’s Trustee,
subject only to the Leasehold Mortgage, acceptable as to value and kind to
Landlord to 

 

27

 

secure to Landlord the obligation of Tenant’s
trustee to cure the defaults under this Lease, monetary and non-monetary,
within the time periods set forth above.

 

13.5.3                  If Tenant’s Trustee has assumed this Lease pursuant to the terms and
provisions of this paragraph for the purpose of assigning (or elects to assign)
this Lease, this Lease may be so assigned only if the proposed assignee has
provided adequate assurance of future performance of all of the terms,
covenants and conditions of this Lease to be performed by Tenant. Landlord
shall be entitled to receive all cash proceeds of any such assignment. As used
herein, “adequate assurance of future performance” shall mean that no less than
each of the following conditions have been satisfied:

 

(a)                                  The proposed assignee has furnished Landlord
with (1) a current financial statement audited by a certified public
accountant indicating a net worth and working capital in amounts which Landlord
reasonably determines to be sufficient to assure the future performance by such
assignee of Tenant’s obligations under this Lease, and/or (2) a guarantee
or guarantees in form and substance satisfactory to Landlord for one or more
persons with aggregate net worth equal to or in excess of Tenant’s net worth as
of the date hereof Tenant hereby acknowledges Landlord’s reliance upon the
provisions of this subparagraph;

 

(b)                                 Said assignment shall be subject to Landlord’s
receipt from said assignee of Assurance, as defined above, along with a prior
finding by the Bankruptcy Court of compliance with all provisions of § 365
of the Bankruptcy Code; and

 

(c)                                  Any such assignment shall be specifically
subject to all the provisions hereof.

 

ARTICLE
XIV - HOLDOVER, SURRENDER AND REMOVAL

 

14.1                           Holdover. Tenant shall not remain in
possession of the Premises or any part thereof after the Termination Date. If
Tenant fails to peacefully surrender possession of the Premises after Tenant’s
right to possession has terminated, then Tenant shall indemnify and hold
harmless Landlord for any and all claims, actions, causes of action,
liabilities, penalties, forfeitures, damages, losses or expenses (including,
without limitation, attorneys’ fees and consequential damages) resulting from
Tenant’s holdover of possession of the Premises. In no event, however, will
Tenant be liable to Landlord for less than double the Base Rent for any period
of holdover, plus any additional Rent which may become due and payable.

 

14.2                           Surrender of Possession. Upon
the Termination Date, Tenant shall surrender to Landlord possession of the
Premises, subject only to the Permitted Exceptions. All alterations,
improvements, additions and utility installations which may be made on the
Premises shall thereupon become the property of Landlord and shall remain upon
and be surrendered with the Premises. Tenant agrees to surrender the Plant and
the other Improvements in good condition.

 

14.3                           Tenant’s Quitclaim. Upon the expiration of
the Lease Term, or any sooner termination of this Lease, Tenant shall be deemed
to have conveyed, without the necessity of any further act or deed to Landlord
all right, title and interest of Tenant in and to the Plant and the other
Improvements. If requested by Landlord, Tenant agrees to execute, acknowledge
and deliver to Landlord a proper instrument in writing, releasing and
quitclaiming the Plant and the other Improvements to Landlord and acknowledging
the termination of this Lease (except for those rights and obligations
hereunder intended to survive the 

 

28

 

termination
hereof), but the failure of Tenant to take any such action shall not affect the
rights of the parties hereunder.

 

ARTICLE
XV - REPRESENTATIONS AND WARRANTIES

 

15.1                           Other Representations and Warranties by
Landlord. Landlord
represents and warrants to Tenant as of the Effective as follows:

 

15.1.1                  Landlord is a corporation, duly organized,
validly existing, and in good standing under the laws of the State;

 

15.1.2                  To the extent required by applicable Laws,
Landlord is qualified to do business in the State;

 

15.1.3                  Landlord has all requisite power and
authority, has taken all actions required by its organizational documents and
applicable law, and has obtained all necessary consents, to execute and deliver
this Lease and to perform Landlord’s obligations pursuant to this Lease;

 

15.1.4                  Landlord’s execution of this Lease does not (a) conflict
with, result in a breach of the terms, conditions, or provisions of, constitute
a default under, or result in a termination of, any trust, agreement, or
instrument to which Landlord is a party or by which Landlord is bound; (b) violate
any restriction to which Landlord is subject; (c) constitute a violation
of any code, resolution, law, statute, regulation, ordinance, judgment, rule,
decree, order, agreement, organizational document, or bylaw applicable to
Landlord or any portion of the Premises; or (d) other than pursuant to
this Lease, result in the creation of any lien, charge, or encumbrance upon any
portion of the Premises;

 

15.1.5                  Landlord is not a “foreign person” as defined
in Section 1445(f)(3) of the Internal Revenue Code; and

 

15.1.6                  This Lease is the legal, valid, and binding
agreement of Landlord, enforceable against Landlord in accordance with its
terms.

 

15.2                           Representations and Warranties by Tenant. Tenant represents and warrants to Landlord
as of the Effective Date and throughout the Lease Term as follows:

 

15.2.1                  Tenant is a 
limited liability company, duly organized, validly existing, and in good
standing under the laws of the State of Illinois;

 

15.2.2                  To the extent required by applicable Laws,
Tenant is qualified to do business in the State;

 

15.2.3                  Tenant has all requisite power and authority,
has taken all actions required by its organizational documents and applicable
Law, and has obtained all necessary consents, to execute and deliver this Lease
and to perform Tenant’s obligations pursuant to this Lease;

 

15.2.4                  Tenant’s execution of this Lease does not (a) conflict
with, result in a breach of the terms, conditions, or provisions of, constitute
a default under, or result in a termination of, any trust, agreement, or
instrument to which Tenant is a party or by which Tenant is bound; (b) violate
any restriction to which Tenant is subject; (c) constitute violation of
any code, resolution, law, statute, regulation, ordinance, judgment, rule,
decree, order, agreement, organizational document, or bylaw applicable to
Tenant; or (d)

 

29

 

other than Tenant’s (i) leasehold estate
in the Premises and (ii) interest in the Easements, result in the creation
of any lien, charge, or encumbrance upon any portion of the Premises;

 

15.2.5                  this Lease is the legal, valid, and binding
agreement of Tenant, enforceable against Tenant in accordance with its terms.

 

ARTICLE
XVI - PROJECT DEVELOPMENT

 

16.1                           Easements and Dedications. In
order to facilitate the development of the Premises, the parties understand and
agree that it may be necessary, desirable, or required that street, water,
sewer, drainage, gas, power lines, and other utilities, easements, dedications,
and similar rights be granted or dedicated to, over, or within portions of the
Premises or other land owned by Landlord in the vicinity of the Premises. From
time to time during the Lease Term, Landlord agrees to execute, acknowledge,
and deliver such reasonable documents as Landlord and Tenant mutually determine
are appropriate, necessary, or required by any governmental agencies, public
utilities, or private companies for the purpose of granting such easements,
rights, and dedications.

 

16.2                     Zoning. In the event that it is
necessary or appropriate to obtain use permits, zoning classifications, zoning
variances, subdivision approval, plan approval, 
permits, or the like with respect to the Premises or any Improvements,
Landlord shall execute such reasonable documents, petitions, applications, and
authorizations as Landlord and Tenant mutually determine are appropriate or
required with respect to the Premises, or any part of the Premises, for the
purposes of obtaining such use permits, zoning classifications, rezoning,
variances, tentative and/or final tract approval, plan approval, and further,
for the purposes of annexation to or the creation of districts and governmental
subdivisions.

 

16.3                           Expenses. Tenant shall pay all costs
and expenses with respect to the provisions of this Section 16.

 

16.4                           Ownership of Plants, Improvements, and Fixtures. Any and all Improvements located, constructed, placed, maintained,
repaired, or altered on any part of the Premises during the Lease Term shall be
owned by Tenant during the Lease Term. At the Termination Date, all such
Improvements (excluding Tenant’s and any Sublessee’s personal property) shall
remain on the Premises and become the property of Landlord.

 

ARTICLE
XVII - INDEMNITY  PROVISIONS

 

17.1                           Indemnity by Tenant. Tenant hereby agrees
to indemnify, defend (by counsel reasonably acceptable to Landlord) and hold
harmless all of the Landlord Indemnified Parties from and against, any and all
liabilities, losses, damages, expenses (including reasonable attorneys’ fees
and expenses), causes of action, suits, claims, demands or judgments of any
nature resulting from or arising out of any injury to or death of any person or
damage to or loss of property to the extent caused by the negligence or willful
misconduct of Tenant or any Tenant Indemnified Party; provided, however,
that Tenant shall have no obligation to indemnify, defend or hold harmless any
Landlord Indemnified Party to the extent the any liability, loss, damage,
expense, suit, demand or judgment is attributable to negligence or willful
misconduct of any Landlord Indemnified Party.

 

17.2                           Indemnity by Landlord. Landlord
hereby agrees to indemnify, defend (by counsel reasonably acceptable to Tenant)
and hold harmless all of the Tenant Indemnified Parties from and 

 

30

 

against,
any and all liabilities, losses, damages, costs, expenses (including reasonable
attorneys’ fees and expenses), causes of action, suits, claims, demands or
judgments of any nature resulting from or arising out of any injury to or death
of any person or damage to or loss of property to the extent caused by the
negligence or willful misconduct of Landlord or any Landlord Indemnified Party;
provided, however, that Landlord shall have no obligation to
indemnify, defend or hold harmless any Tenant Indemnified Party to the extent
the any liability, loss, damage, expense, suit, demand or judgment is
attributable to negligence or willful misconduct of any Tenant Indemnified
Party.

 

ARTICLE  XVIII – LANDLORD’S RIGHT OF FIRST OFFER

 

18.1                           Landlord’s Right of First Offer. In the event that at any time during the
term of this Lease, Tenant shall desire to sell the Improvements or any portion
of Tenant’s right, title and interest in, to and under this Lease (“Tenant
Offer Property”), either singularly or in conjunction with other property,
Landlord is hereby given the right of first offer to purchase the same in
accordance with the procedures hereinafter set forth. Tenant shall notify
Landlord in writing of the terms (none of which shall be inconsistent with the
terms set forth in this Article XVIII), including the purchase price, on
which Tenant is willing to sell the Tenant Offer Property (the “Tenant Offer”).
Landlord shall have thirty (30) days (the “Offer Period “) after receipt
of the Tenant Offer within which to notify Tenant in writing that Landlord
accepts the Tenant Offer. If Landlord fails to timely accept such Tenant Offer,
Tenant shall be, subject to the provision of Article IX, entitled for a
period of one (1) year after the expiration of the Offer Period, to sell
the Tenant Offer Property to any other person or entity at a purchase price
that is not less than the purchase price set forth in such Tenant Offer and on
such other terms as are no more favorable to the purchaser than the other terms
set forth in the Tenant Offer. If Tenant fails to sell the Tenant Offer
Property to a third party prior to the first anniversary of the Offer Period,
Landlord’s right of first offer shall remain applicable to subsequent offers.

 

18.2                           Closing Regarding Tenant Offer Property. In the event that Landlord elects to accept
the Tenant Offer, the closing of the transaction shall take place at a time and
date (not more than sixty (60) days after Landlord’s notice of acceptance)
specified in the aforesaid notice from Landlord at the offices of a title
company, bank or attorney in the county in which the Land is located as
specified by Landlord in such notice. On the closing date, Tenant shall convey
to Landlord all of Tenant’s right, title and interest in and to the Tenant
Offer Property. Such conveyance shall be made by a special warranty deed and
shall be made free and clear of any lien or encumbrance created or suffered by
Tenant other than the Permitted Exceptions. At the closing, Tenant shall
deliver to Landlord, in addition to the aforesaid special warranty deed,
appropriate resolutions, affidavits or certificates confirming the authority of
Tenant to make the contemplated conveyance to Tenant or which are reasonably
and customarily required by the title company. Landlord’s obligation to close
the purchase contemplated hereby is conditioned upon the issuance to Landlord
of an owner’s title insurance policy in the amount of the purchase price
consistent with the state of title described above. Simultaneously with said
conveyance, Landlord shall pay the purchase price to Tenant by wire transfer of
good funds in accordance with Tenant’s wire transfer instructions. At closing,
any and all title insurance premiums, survey charges, escrow charges,
transaction taxes and closing costs shall be allocated between Landlord and
Tenant in accordance with the local custom with respect to the closing of sales
of commercial properties in the county in which the Tenant Offer Property is
located.

 

18.3                           Default Regarding Tenant Offer Property. If Landlord accepts a Tenant Offer and
either party thereafter defaults in the performance of its obligations pursuant
to this Article XVIII,
then the other party shall have the right to (A) specifically enforce the
defaulting party’s obligations under this Article XVIII,
and (B) exercise any other right or remedy available to it under
applicable law or in equity.

 

31

 

ARTICLE XIX-LANDLORD’S PURCHASE OPTIONS

 

19.1                           Intentionally Omitted.

 

ARTICLE XX-FINANCING

 

20.1                           Tenant’s Financing. Tenant shall have the right, at any time
and from time to time, in addition to any other rights herein granted and
without any requirement to obtain Landlord’s consent, to encumber any or all of
the improvements and Tenant’s leasehold interest hereunder. Tenant and Landlord
acknowledge and agree that so long as any Leasehold Mortgage shall remain
unsatisfied of record or until written notice of satisfaction is given by the
Leasehold Lender to Landlord, the following provisions shall apply in respect
of such Leasehold Lender notwithstanding any other provisions of this Lease to
the contrary:

 

20.1.1                  There shall be no cancellation, termination,
surrender, acceptance of surrender, amendment or modification of this Lease by
joint action of Landlord and Tenant, nor shall Landlord recognize any such
action by Tenant alone, without in each case the prior consent in writing of
Leasehold Lender. No merger shall result from the acquisition by, or devolution
upon, any person or entity of both the fee estate in the Land and the leasehold
estate created by this Lease. Any such attempted cancellation, termination,
surrender, amendment, modification or merger of this Lease without the prior
written consent of Leasehold Lender shall be of no force or effect.

 

20.1.2                  Leasehold Lender shall be given notice of any
arbitration or action, suit or other proceeding or dispute between the parties
and shall have the right to intervene therein and be made a party thereto if
Tenant fails to do so. In any event, Leasehold Lender shall receive notice, and
a copy, of any award, decision or judgment rendered in such arbitration,
action, suit or other proceeding.

 

20.1.3                  If there is a condemnation or taking by
eminent domain in respect of the Premises, any award or payment which is to be
paid to Tenant shall be paid instead to the Leasehold Lender. If a condemnation
or taking by eminent domain results in a termination of this Lease, Tenant’s
portion of the award or payment shall be paid to the Leasehold Lender.

 

20.1.4                  No payment made to Landlord by Leasehold
Lender shall constitute agreement that such payment was, in fact, due under the
terms of this Lease; and the Leasehold Lender having made any payment or
portion thereof to Landlord pursuant to Landlord’s wrongful, improper or
mistaken notice or demand shall be entitled to the return of any such payment
or portion thereof.

 

20.1.5                  In connection with the rights of Leasehold
Lender to cure Tenant’s defaults under this Lease and to protect its security,
Landlord and Tenant hereby expressly grant to Leasehold Lender, and agree that
Leasehold Lender shall have, the absolute and immediate right to enter in and
upon the Premises or any part thereof to such extent and as often as the
Leasehold Lender, in its sole discretion, deems necessary or desirable in order
to prevent or to cure any such default by Tenant, without any obligation to do
so.

 

20.1.6                  Intentionally Omitted.

 

20.1.7                  In the event Leasehold Lender or its designee
(by foreclosure, conveyance in lieu of foreclosure or otherwise), or the
purchaser at a foreclosure sale or the assignee or designee of such purchaser,
acquires Tenant’s interest in this Lease, the Leasehold Lender or its designee
shall not be 

 

32

 

bound by any modification or amendment to
this Lease occurring after the granting of such Leasehold Mortgage unless
approved by the Leasehold Lender in writing.

 

20.1.8                  In the event Leasehold Lender or its designee
(by foreclosure, conveyance in lieu of foreclosure or otherwise), or the
purchaser at a foreclosure sale or the assignee or designee of such purchaser
or Leasehold Lender, acquires Tenant’s interest herein, such party shall
thereupon become Tenant under this Lease and hereby agrees to perform each and
all of Tenant’s obligations and covenants hereunder; provided, however,
that any defaults by Tenant under this Lease which do not involve the payment
of money and which cannot, due to the nature thereof, be satisfied or cured by
such party shall be deemed waived.

 

20.1.9                  Nothing in this Section 20.1 shall be deemed or construed to create
or impose any obligation, covenant or liability, whatsoever, upon Leasehold
Lender: (a) for the payment of any Rent or any additional monetary sums
due under this Lease; (b) for the performance of any of Tenant’s covenants
and agreements hereunder; or (c) to cure any default by the Tenant under
this Lease, and neither Tenant nor Landlord shall have any claims against
Leasehold Lender for its failure to make any payment or take any action which
it is entitled to take under this Section 20.1 until
such time as Leasehold Lender assumes possession of the Premises or acquires
the Tenant’s interest in the Lease, and then only for as long as it remains in
possession or the owner of the leasehold estate created thereby.

 

20.1.10  The liability of
Leasehold Lender, its successors and assigns, shall be limited in all respects
to its interest in this Lease and the leasehold estate created hereby and
Leasehold Lender shall have no personal liability hereunder and no judgment or
decree shall be enforceable beyond the interest of Leasehold Lender in the
leasehold estate created under this Lease or shall be sought or entered in any
action or proceeding brought in connection with this Lease.

 

20.1.11  Intentionally Omitted.

 

20.1.12  Subject to the terms of
its Leasehold Mortgage and to the extent permitted therein, should Leasehold
Lender be entitled to the appointment of a receiver for all or any part of the
Premises (a “Receiver”), without regard to whether Leasehold Lender has
commenced an action to foreclose the lien of its Leasehold Mortgage and without
regard to the nature of the action in which the appointment of a receiver is
sought, Landlord agrees that it will not oppose any such appointment, whether
or not entitled by the terms of this Lease to do so. Notwithstanding anything to
the contrary contained in this Lease, the appointment of a Receiver for the
Premises or any part thereof by any court at the request of Leasehold Lender or
by agreement between Tenant and Leasehold Lender, or the entering into
possession thereof by such Receiver, shall not be deemed to make Leasehold
Lender a “mortgagee-in-possession” or otherwise liable in any manner with
respect to the Premises and shall not, in and of itself, constitute default
under this Lease.

 

20.1.13  Tenant and Landlord agree
that the provisions of this Section 20.1 are
for the benefit of and shall be enforceable by Leasehold Lender and its
respective successors and assigns who comply with the provisions of this Section 20.1.

 

20.2                           Tenant Bankruptcy. If Tenant becomes the subject of a
bankruptcy or insolvency proceeding, then the parties agree as follows (subject
to the provisions of applicable bankruptcy law):

 

20.2.1                  Landlord and Tenant shall immediately notify
Leasehold Lender thereof;

 

20.2.2                  Intentionally Ommitted;

 

33

 

20.2.3                  If this Lease is rejected in such a
proceeding, then, within thirty (30) days after a written demand from Leasehold
Lender, Landlord shall enter into a new lease with Leasehold Lender on the same
terms as this Lease for the balance of the term of this Lease, effective upon
such termination of this Lease (provided
that such obligation will terminate and expire on the date 20 years and 11
months following the death of the last to die of those lineal descendants of
George W. Bush, the President of the United States, now living on the date of
this Lease); subject to the
obligation of the Leasehold Lender to cure any outstanding and reasonably
curable defaults on the part of the Tenant under this Lease; and

 

20.2.4                  Leasehold Lender will have the right to apply
for an extension of the 60-day period under Bankruptcy Code Section 365(d) or
any successor provision.

 

20.3                           Foreclosure
Sale. In the event that the Leasehold
Mortgage is foreclosed, Tenant agrees not to oppose the inclusion in the
judgment of foreclosure of the right of first refusal in favor of Landlord that
is set forth in Section 8 of the
Landlord and Mortgagee Agreement.

 

ARTICLE
XXI - GENERAL PROVISIONS

 

21.1                           Conditions and Covenants. All
of the provisions of this Lease shall be deemed as running with the Land, and
construed to be “conditions” as well as “covenants” as though the words
specifically expressing or imparting covenants and conditions were used in each
separate provision.

 

21.2                           Survival. All representations,
warranties and indemnities of Tenant and Landlord under this Lease shall
survive the expiration or sooner termination of this Lease.

 

21.3                           No Waiver of Breach. No failure by either
Landlord or Tenant to insist upon the strict performance by the other of any
covenant, agreement, term or condition of this Lease, or to exercise any right
or remedy consequent upon a breach or default thereof, shall constitute a
waiver of any such breach or of such covenant, agreement, term or condition. No
waiver of any breach shall affect or alter this Lease, but each and every
covenant, condition, agreement and term of this Lease shall continue in full
force and effect with respect to any other then existing or subsequent breach.

 

21.4                           Notices. Unless otherwise specifically
provided in this Lease or by applicable Law, any and all notices or other
communications required or permitted by this Lease or by applicable Law to be
served on, given to, or delivered to or from any party to this Lease shall be
writing and shall be effective for all purposes if the same is sent by mailing
the same by postage prepaid registered or certified mail, return receipt
requested, or by overnight courier service (provided that a receipt is required
at the notice address set forth below). The date of the delivery of the notice
or demand shall be deemed the date of the addressee’s receipt thereof (unless
the notice or demand is not accepted, in which case the date of refusal of
delivery shall be deemed the date of receipt thereof).

 

	
   

  	
  LANDLORD:

  	
  Bunge
  Milling, Inc.

  
	
   

  	
   

  	
  11720
  Borman Drive

  
	
   

  	
   

  	
  P.O. Box
  28500

  
	
   

  	
   

  	
  St.
  Louis, MO 63146

  
	
   

  	
   

  	
  Attn:
  General Manager

  
	
   

  	
   

  	
  Facsimile:
  (314) 292-2533

  
	
   

  	
   

  	
   

  
	
   

  	
  With a copy to:

  	
  Bunge North
  America, Inc.

  
	
   

  	
   

  	
  11720
  Borman Drive

  
	
   

  	
   

  	
  P.O. Box
  28500

  

 

34

 

	
   

  	
   

  	
  St. Louis, MO 63146

  
	
   

  	
   

  	
  Attn: Legal Department

  
	
   

  	
   

  	
  Facsimile: (314) 292-2521

  
	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  	
  Biofuels Company of
  America, LLC

  
	
   

  	
   

  	
  1661 International Drive,
  Suite 400

  
	
   

  	
   

  	
  Memphis, Tennessee 38120

  
	
   

  	
   

  	
  Attn: Mark A. Burke

  
	
   

  	
   

  	
  Facsimile: (901) 818-3000

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
  Wyatt, Tarrant & Combs, LLP

  
	
   

  	
   

  	
  500 West Jefferson Street

  
	
   

  	
   

  	
  Suite 2800

  
	
   

  	
   

  	
  Louisville, Kentucky  40202

  
	
   

  	
   

  	
  Attn: Robert A. Heath

  
	
   

  	
   

  	
  Facsimile:  (502) 589-0309

  
	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
  Fifth Third Bank

  
	
   

  	
   

  	
  8000 Maryland Avenue, Suite 1400

  
	
   

  	
   

  	
  St. Louis, Missouri 63105

  
	
   

  	
   

  	
  Attn: Shawn Hagan and Mary Ann Lemonds

  
	
   

  	
   

  	
  Facsimile: (314) 889-3377

  
	
   

  	
   

  	
   

  
	
   

  	
  and also:

  	
  Husch & Eppenberger, LLC

  
	
   

  	
   

  	
  190 Carondelet Plaza, Suite 600

  
	
   

  	
   

  	
  St. Louis, Missouri 63105

  
	
   

  	
   

  	
  Attn: Edward J. Lieberman

  
	
   

  	
   

  	
  Facsimile: (314) 480-1505

  

 

Any party may change its address for the
purpose of this Lease by giving written notice of such change to the other
party in the manner provided in this Section. Notice given by counsel for a
party shall be deemed notice by such party.

 

21.5                           Gender. The use herein of any gender
includes all others, and the singular number includes the plural and
vice-versa, whenever the context so requires.

 

21.6                           Captions. Captions in this Lease are
inserted for convenience of reference only and do not define, describe or limit
the scope or the intent of this Lease or any of the terms hereof.

 

21.7                           Entire Agreement. This Lease and any
other agreements referred to herein contain the entire agreement between the
parties regarding the subject matter hereof. Any prior or contemporaneous oral
representations, agreements, understandings and/or statements shall be of no
force and effect.

 

21.8                           Waiver; Amendment. No modification,
waiver, amendment, discharge or change of this Lease shall be valid unless the
same is in writing and signed by the party against whom the enforcement of such
modification, waiver, amendment, discharge or change is or may be sought.

 

21.9                           Attorney’s Fees. If either party retains an
attorney to enforce this Lease, the prevailing party shall be entitled to
recover, in addition to all other items of recovery permitted by law,
reasonable attorneys’ fees and costs incurred through litigation, bankruptcy
proceedings and all appeals.

 

35

 

21.10                     Time. Time is of the essence of
each obligation of each party hereunder.

 

21.11                     Governing Law. This Lease shall be construed
and enforced in accordance with the laws of the State of Illinois, without
regard to its rules relating to conflicts of laws.

 

21.12                     Binding Effect. Subject to any provision of
this Lease that may prohibit or curtail assignment of any rights hereunder,
this Lease shall bind and inure to the benefit of the parties and their
respective successors and permitted assigns.

 

21.13                     Severability. If any term, provision,
covenant or condition of this Lease is held by a court of competent
jurisdiction to be invalid, void or unenforceable, the remainder of the
provisions shall remain in full force and effect and shall in no way be
affected, impaired or invalidated.

 

21.14                     Counterparts. This Lease is executed in
multiple counterparts, each of which shall be deemed an original and when taken
together will constitute one instrument, and may be executed and delivered by
facsimile signature, which shall be considered an original.

 

21.15                     Estoppel Certificates. Each
party shall execute, acknowledge and deliver to the other party, within twenty
(20) days after requested by the other party, a statement in writing
certifying, if such is the case, that this Lease in unmodified and in full
force and effect (or if there have been modifications that the same is in full
force and effect as modified); the Effective Date; the dates for which the rent
and other charges have been paid; any alleged defaults and claims against the
other party and providing such other factual information as shall be reasonably
requested.

 

21.16                     Broker. Landlord and Tenant each
represent and warrant that it has had no dealings or conversations with any
real estate broker in connection with a negotiation and execution of this
Lease. Landlord and Tenant each agree to defend, indemnify and hold harmless
the other against all liabilities arising from any claim of any real estate
brokers, including cost of counsel fees, resulting from their respective acts.

 

21.17                     Financial Statements. Tenant hereby agrees, from time to time and
within ten (10) days of receipt of a request therefor, to furnish to
Landlord, its lender or proposed lender, or all of the foregoing, copies of
Tenant’s most recent financial statements including a balance sheet and a
statement of income and expense prepared as of the end of the most recent full
fiscal year of Tenant, which financial statements shall be audited by a firm of
certified public accountants or shall be certified by Tenant’s chief financial
officer as being prepared in accordance with generally accepted accounting
principles consistently applied and fairly representing the financial condition
of Tenant as the date thereof. Without the necessity of a request by Landlord,
Tenant will deliver to Landlord copies of all financial statements, reports,
notices and proxy statements sent by Tenant to its stockholders; provided,
however, that if such statements and reports do not include the
following information, Tenant will deliver within ninety (90) days after the
end of each fiscal year of Tenant, a balance sheet of Tenant and its
consolidated subsidiaries as at the end of such year and a statement of profits
and losses of Tenant and its consolidated subsidiaries for such year setting
forth in each case, in comparative form, the corresponding figures for the
preceding fiscal year in reasonable detail and scope and certified by
independent certified public accountants of recognized national standing
selected by Tenant; and within sixty (60) days after the end of each fiscal
quarter of Tenant a balance sheet of Tenant and its consolidated subsidiaries
as at the end of such quarter and statements of profits and losses of Tenant
and its consolidated subsidiaries for such quarter setting forth in each case,
in comparative form, the corresponding figures for the similar quarter of the
preceding year, in reasonable detail and scope, and certified by a financial
officer of Tenant, as 

 

36

 

applicable, having knowledge thereof; the
foregoing financial statements all being prepared in accordance with generally
accepted accounting principles, consistently applied.

 

21.18                     Memorandum of Lease. Contemporaneously with
the execution of this Lease, Landlord and Tenant shall execute and acknowledge
a Memorandum of this Lease (the “Memorandum”)
for purpose of recordation. The Memorandum shall be in the form attached hereto
as Exhibit C. Either party may
record the Memorandum in the appropriate public records. Upon termination of
this Lease, Tenant agrees, upon demand, to execute a release of the Memorandum
in recordable form.

 

21.19                     Waiver of Jury Trial. To the extent permitted by law and
applicable policies of insurance, each party hereto hereby waives any right it
may have to a jury trial in the event of litigation between Tenant and Landlord
pertaining to this Lease.

 

[See next page for signatures.]

 

37

 

SIGNATURE PAGE FOR

GROUND LEASE AGREEMENT

 

IN WITNESS WHEREOF, this Lease has been executed by
Landlord and Tenant, through their respective duly authorized representatives,
on the dates set forth below.

 

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  
	
   

  	
  BUNGE MILLING, INC., an Illinois corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /S/ David A. Kabbes

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
  David A. Kabbes

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
  BIOFUELS COMPANY OF AMERICA, LLC, an

  Illinois limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /S/ Mark A. Burke

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
      Mark A. Burke

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
        President

  
							

 

 

Schedule of Exhibits

 

A                                      Legal Description of Land

B                                        Permitted Exceptions

C                                        Form of Memorandum of
Lease

 

38

 

EXHIBIT A

 

LEGAL DESCRIPTION OF LAND

 

A tract of land being part of the Northwest Quarter of Section 9,
Township 19 North, Range 11 West of the Second Principal Meridian, Vermilion
County, Illinois and also part of Chs’ Leverenz First Addition to the City of
Danville, Vermilion County, Illinois, Edward C. Lamm’s Addition to Danville,
Illinois and Fred Stebe’s Addition to the City of Danville, Vermilion County,
Illinois as all 3 subdivisions are recorded in the Vermilion County Recorder’s
Office, and also the vacated public Right-of-Ways for Section Street,
Short Street, Anderson Street, Harrison Street and the public alleys per City
of Danville, Illinois Ordinance Number 8499, recorded as Document Number
06-12386 in said Vermilion County Recorder’s Office, described as follows, with
bearings on a local datum:

 

Beginning at the Northeast corner of Lot 1 in said Chs’ Leverenz First
Addition, proceed North 88°
26' 08" East along an Easterly extension of the North line of said Lot,
24.06 feet to the Westerly Right-of-Way line of the former C. & E. I.
Railroad; thence South 23° 16' 43" East
along said Westerly Right-of-Way line of the former C. & E. I.
Railroad, 96.74 feet to the East Right-of-Way line of Anderson Street; thence
South 2° 27' 08" West along said East Right-of-Way
line of Anderson Street, 75.37 feet to an Easterly extension of the South line
of said Lot 1; thence South 88° 25' 51" West
along said extension of the South line, 66.16 feet to the Southeast corner of
said Lot 1; thence South 2° 27' 08" West
along a Southerly extension of the East line of said Lot, 50.12 feet to the
Northeast corner of Lot 1 in Christ Evert’s 1st Addition to the City
of Danville, Illinois, as recorded in said Vermilion County Recorder’s Office,
said corner also being on the South Right-of-Way line of Harrison Street;
thence South 88° 25' 51" West along said South Right-of-Way
line of Harrison Street, 280.15 feet; thence South 88°
31' 59" West along said South Right-of-Way line of Harrison Street, 443.13
feet; thence North 2° 35' 14" East
along said South Right-of-Way line of Harrison Street, 25.15 feet; thence South
88°
31' 59" West along said South Right-of-Way line of Harrison Street, 220.89
feet to the West Right-of-Way line of Section Street; thence North 2°
48' 17" East along said West Right-of-Way line of Section Street,
305.28 feet to a line being a Westerly extension of the North line of Lot 12 in
said Edward C. Lamm’s Addition; thence North 88°
33' 27" East along said Westerly extension of the North line and along
said North line, 66.54 feet to the Northeast corner of said Lot 12; thence
South 2° 45' 04" West along the East line of said
Lot, 124.94 feet to the Southeast corner of said Lot 12; thence North 88°
32' 47" East along the South lines of Lots 11, 10, 9, 8 and 7 in said
Edward C. Lamm’s Addition, 250.60 feet to the Southeast corner of said Lot 7;
thence North 2° 28' 42" East along the East line of said
Lot, 124.85 feet to the Northeast corner of said Lot 7; thence North 88°
33' 27" East along an Easterly extension of the North line of said Lot 7
and along the North lines of Lots 6, 5, 4, 3, 2 and 1 in said Edward C. Lamm’s
Addition and along an Easterly extension of said North lines, 344.04 feet to
the West line of Lot 9 in said Fred Stebe’s Addition; thence North 2°
09' 08" East along said West line, 30.56 feet to the Northwest corner of
said Lot 9; thence North 88° 29' 47" East
along the North line of said Lot, 56.31 feet to the Northeast corner of said
Lot 9; thence South 2° 11' 37" West
along the East line of said Lot, 128.36 feet to the Southeast corner of said
Lot 9; thence South 88° 26' 08" West
along the South 

 

39

 

line of said Lot, 56.22 feet to the Southwest corner of said Lot 9;
thence South 2° 09'06" West
along a Northerly extension of the West line of Lot 4 in said Chs’ Leverenz
First Addition, 16.50 feet to the Northwest corner of said Lot 4; thence North
88°
26' 08" East along the North line of said Lot 4 and along the North lines
of Lots 3 and 2 and said North line of Lot 1, all in said Chs’ Leverenz First
Addition, 281.02 feet to the Point of Beginning, encompassing 5.924 acres more
or less.

 

40

 

EXHIBIT B

 

PERMITTED EXCEPTIONS

 

1.              Leasehold Mortgage between Tenant and Fifth Third
Bank.

 

2.              Easement recorded August 25, 1971 as Document No. 833649
made to Danville Sanitary District to lay, operate, construct, maintain, etc.,
a sanitary sewer line, etc.

 

3.              Easement recorded August 30, 1971 as Document No. 833795
made to Danville Sanitary District to lay, operate, construct, maintain, etc.,
a sanitary sewer line, etc.

 

4.              Easement recorded August 30, 1971 as Document No. 833794
made to Danville Sanitary District, to lay, operate, construct, maintain, etc.,
a sanitary sewer line, etc.

 

5.              Easement recorded August 30, 1971 as Document No. 833793
made to Danville Sanitary District, to lay, operate, construct, maintain, etc.,
a sanitary sewer line, etc.

 

6.              Easement recorded August 30, 1971 as Document No. 833813
made to Danville Sanitary District to lay, operate, construct, maintain, etc.,
a sanitary sewer line, etc.

 

7.              Rights of the public and quasi-public utilities, if
any, that may fall within the boundaries of vacated alleys and streets. As per
An Ordinance Vacating Streets and Alleys approved by the City Council of the
City of Danville September 19, 2006 as Ordinance No. 8499 and
recorded September 20, 2006, as Document No. 06-12386.

 

8.              Rights of way for drainage ditches, drain tiles,
feeders, laterals, and underground pipes, if any.

 

9.              Ordinance No. 5624 of the City of Danville,
recorded in Book 789 page 784 as Document 817299, and Ordinance No. 6283
recorded in Book 890 page 294 as Document 890321, and Ordinance #150 of
Danville Sanitary District recorded as Document 81-7072, providing for a lien
for delinquent sewerage services, subject to rights arising prior to the filing
of a notice of lien in the Office of the Recorder of Deeds of Vermilion County,
Illinois, and all amendments thereto.

 

41

 

EXHIBIT C

 

FORM OF MEMORANDUM OF LEASE

 

	
  STATE OF ILLINOIS

  	
  §

  	
   

  
	
   

  	
  §

  	
  MEMORANDUM
  OF LEASE

  
	
  COUNTY OF
                                         

  	
  §

  	
   

  

 

This is a memorandum of that
certain unrecorded Amended and Restated Ground Lease Agreement (as the same may
be amended or restated from time to time, the “Lease”) dated as of November 3,
2006, by and between BIOFUELS COMPANY OF
AMERICA, LLC (“Tenant”) and BUNGE
MILLING, INC. (“Landlord”), concerning the land described in Exhibit A attached hereto (the “Premises”).

 

Under the Lease, Landlord
leases the Premises to Tenant, and Tenant leases the same from Landlord, for
the term and under the provisions contained in the Lease. Reference is made to
the Lease for a complete statement of the terms, conditions and provisions
thereof. The purposes of this Memorandum is to provide notice of the Lease and
certain provisions thereof. In the event of any conflict between this
Memorandum and the Lease, the Lease shall govern.

 

The term of the Lease is to
commence on the date hereof and will continue for a term of thirty  (30) years thereafter, as stated in the Lease,
and is subject to extension by Tenant for four (4) additional terms of
five (5) years each.

 

The Lease contains a right
of first offer in favor of Landlord with respect to the purchase of the
interest of Tenant under the Lease or the improvements located on the Premises.

 

This Memorandum is not a
complete summary of the Lease. Provisions in this Memorandum shall not be used
in interpreting the Lease.

 

[See next page for signatures.]

 

42

 

IN WITNESS WHEREOF, the parties hereto have caused this
Memorandum of Lease to be executed by their respective duly authorized
officers, effective as of the 3rd day of November, 2006.

 

	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  BIOFUELS COMPANY OF
  AMERICA, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Print Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  STATE OF
                

  	
  §

  
	
   

  	
  §

  	
  ACKNOWLEDGMENT

  
	
  COUNTY OF
             

  	
  §

  
							

 

The foregoing instrument was acknowledged
before me this            day
of
                                ,
2006 by          , the                               of Biofuels Company of America, an Illinois
limited liability company, on behalf of the limited liability company.

 

 

	
   

  	
   

  
	
   

  	
  Notary Public

  

 

 

My commission expires on
                              ,
        

 

 

	
  IMPRESS SEAL HERE

  	
   

  

 

 

[Signature page continues below.]

 

43

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  BUNGE MILLING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Print Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  STATE OF
                

  	
  §

  
	
   

  	
  §

  	
  ACKNOWLEDGMENT

  
	
  COUNTY OF
             

  	
  §

  
							

 

The foregoing instrument was acknowledged
before me this            day
of
                           ,
2006 by
                                                 ,
the                               of Biofuels Company of America, an Illinois
limited liability company, on behalf of the limited liability company.

 

	
   

  	
   

  
	
   

  	
  Notary Public

  

 

 

My commission expires on
                              ,
        

 

 

	
  IMPRESS SEAL HERE

  	
   

  

 

44EXHIBIT 10.14

 

FIRST AMENDMENT,
ASSIGNMENT AND ASSUMPTION

AND CONSENT TO
ASSIGNMENT OF GROUND LEASE

AND CONVEYANCE OF
LEASEHOLD IMPROVEMENTS

 

This First Amendment, Assignment and Assumption and
Consent to Assignment of Ground Lease Conveyance of Leasehold Improvements
(this “First Amendment”) is made as of May 9, 2008 by and among BUNGE MILLING, INC., an Illinois corporation (“Landlord”),
BIOFUELS COMPANY OF AMERICA, LLC, an
Illinois limited liability company (“Assignor”), and BLACKHAWK BIOFUELS, LLC, a Delaware limited liability
company (“Assignee”) and is effective as of the closing (the “Assignment
Date”) of the Asset Purchase Agreement dated March 14, 2008 (the “Asset
Purchase Agreement”) by and among, Assignor, Assignee, Renewable Energy
Group, Inc., Biodiesel Investment Group, LLC and Bunge North America, Inc.

 

RECITALS

 

A.            Landlord
leased certain real property to Assignor pursuant to that certain Amended and
Restated Ground Lease Agreement dated November 3, 2006 by and between
Landlord and Assignor (the “Lease “) covering that real property (the “Real
Property”) legally described on Exhibit A attached hereto and made a
part hereof and located in the City of Danville, Vermilion County, Illinois, a
Memorandum of which Lease dated November 3, 2006, was recorded November 22,
2006, as Document No. 2006-15109, files of the Vermilion County Recorder.

 

B.            Assignor
desires to assign its lessee’s interest in the Lease to Assignee, and Assignee
desires to assume all of Assignor’s future obligations under the Lease, and
Landlord agrees to consent to the assignment to Assignee, subject to the terms
and conditions contained herein, including, without limitation, amendments to
the Lease as set forth in this First Amendment.

 

C.            Assignee
further desires to convey its interest in the Improvements to Assignee.

 

In consideration of the mutual covenants and
agreements contained herein, and other valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Landlord, Assignor and Assignee
do hereby agree as follows:

 

1.             Terms.  Capitalized terms that are used but not
defined in this First Amendment shall have the meanings specified or
incorporated by reference in the Lease.

 

2.             Assignment and Assumption. 
Assignor hereby sells, assigns, transfers and conveys to Assignee all of
Assignee’s right, title and interest in, to and arising under the Lease
effective as of the Assignment Date. 
Assignee hereby assumes and agrees to perform all of Assignor’s future
obligations under the Lease and assumes and agrees to make all payments and
observe and perform all of the terms and conditions of the Lease to be observed
and performed by Assignor after the Assignment Date except liabilities or 

 

 

obligations accrued on or
before the Assignment Date.  Assignor
shall remain liable for and shall observe and perform all liabilities and
obligations of Assignor under the Lease that arose on or before the Assignment
Date and relate to the period prior to the Assignment Date.

 

3.             Consent.  Subject to the terms and conditions contained
in this First Amendment, Landlord hereby consents to the assignment of the
Lease by Assignor to Assignee and the assumption by Assignee of the future
obligations of Assignor under the Lease.

 

4.             Notice.   Except as provided in that certain Landlord
and Mortgagee’s Agreement dated as of the date hereof between Landlord and
Fifth Third Bank, Landlord shall have no obligation to give notice of any
default under the Lease except to Assignee and Fifth Third Bank (and only to
the extent required under the Lease) and shall have no obligation to deal with
any party other than Assignee with respect to the Lease or the Real
Property.  Any notice to Assignee shall
be given to it at the following address as provided in the Lease:

 

	
  Tenant:

  	
  Blackhawk
  Biofuels, LLC

  
	
   

  	
  22
  Chicago Avenue

  
	
   

  	
  Freeport,
  IL 61032-4230

  
	
   

  	
  Attention:

  	
  Ron
  Mapes, Chair

  
	
   

  	
  Telephone:

  	
  815-235-2461

  
	
   

  	
  Fax:

  	
  815-235-4727

  

 

	
  with
  a copy to:

  	
  Lindquist &
  Vennum, PLLP

  
	
   

  	
  4200
  IDS Center

  
	
   

  	
  80
  South Eight Street

  
	
   

  	
  Minneapolis,
  MN 55402-2274

  
	
   

  	
  ttention:

  	
  Dean
  R. Edstrom

  
	
   

  	
  elephone:

  	
  612-371-3955

  
	
   

  	
  ax:

  	
  612-371-3207

  

 

5.             Required Completion Date.  Notwithstanding anything contained
in the Lease and this First Amendment, Landlord acknowledges and agrees that
for all purposes under the Lease, including without limitation Section 2.6
of the Lease, Tenant has caused construction of the Improvements to be
substantially completed and, except for existing retainage amounts, fully paid
for by the Required Completion Date, which Improvements for these purposes
shall not include the Project Addition (as defined below).

 

6.             Agreement
on Base Rent.  Effective
as of the Assignment Date, Section 4.1.2 of the Lease Agreement is hereby
deleted in its entirety and replaced with the following:

 

4.1.2        As
used in this Lease, “Base Rent” means:

 

2

 

(a)           During
the “Term” of and as defined in that certain Oil Feedstock Supply Agreement
dated April     , 2008 by and between Bunge North
America, Inc., Renewable Energy Group, Inc. and Assignee (the “Oil
Feedstock Supply Agreement”), whether the Tenant hereunder is Blackhawk
Biofuels, LLC, Leasehold Lender, or any of their respective successors and
assigns, and during any extensions thereof, the sum of One Dollar ($1.00) per
annum, payable on the Rent Commencement Date and on each anniversary of the
Rent Commencement Date during each year of such “Term” of the Oil Feedstock
Supply Agreement, including any extensions thereof.

 

(b)           Upon
the expiration of the “Term” of the Oil Feedstock Supply Agreement, including
any extensions thereof, whether upon early termination, subject to the terms of
that certain Oil Supply Cure Rights Agreement dated on or about the Assignment
Date between Landlord and Leasehold Lender, whether the Tenant hereunder is Blackhawk
Biofuels, LLC, Leasehold Lender, any of their respective successors and
assigns, or any other person or entity acting as Tenant hereunder (each
individually, including Blackhawk Biofuels, LLC, a “Successor Tenant”),
the sum of Seventy Two Thousand Dollars ($72,000) per annum payable in equal
monthly installments in advance and without demand on the first day of each and
every calendar month throughout the Lease Term (prorated for any partial
calendar month); provided, that beginning on March 1 of the year following
the first full calendar year after the Base Rent for the Land pursuant to this Section 4.1.2(b) is
applicable and each year thereafter, the amount of the Base Rent shall be
increased by the same percentage as the percentage increase, if any, in the
Consumer Price Index (as defined below) for the previous calendar year; and
provided, however, that, although the Base Rent shall never be decreased below
the sum of Seventy Two Thousand Dollars ($72,000) per annum, in no event shall the Base Rent be increased
by the foregoing provision to an amount which exceeds the fair market rent for
the Land (excluding all Improvements thereon) determined as follows:

 

(i)            If Landlord and Successor Tenant
agree on the fair market rent for the Land, they shall immediately execute an
amendment to this Lease stating the annual Base Rent (but which shall continue
to increase annually thereafter based on the Consumer Price Index pursuant to
the provisions of Section 4.1.2(b) above).  In the event that Landlord and Successor
Tenant are unable to agree upon the fair market rent for the Land, either party
shall have the right to cause the fair market rent for the Land to be
determined by appraisal in accordance with the procedures set forth herein.  Either party may exercise such right by
delivering written notice thereof to the other party (a “Rent Appraisal
Notice”), which Rent Appraisal Notice shall designate a Qualified Appraiser
who has been appointed by the party delivering such notice. The party to whom
the Rent Appraisal Notice was delivered shall then have the right to appoint an
additional Qualified Appraiser by delivering written notice thereof to the
other party within ten (10) days following the delivery of the Rent
Appraisal Notice.  If the party to whom
the Rent Appraisal Notice was 

 

3

 

delivered does not
appoint a Qualified Appraiser within such ten (10) day period, the single
appraiser appointed shall be the sole appraiser and shall determine the yearly
fair market rent for the Land.

 

(ii)           If both Qualified Appraisers are
appointed by the parties hereto as aforesaid, then the parties hereto shall
jointly select a third Qualified Appraiser within twenty (20) days following
the delivery of the Rent Appraisal Notice. If the parties hereto are unable to
mutually agree on the third appraiser, then any of the parties hereto, by
giving ten (10) days’ notice to the other party, may file a petition with
the American Arbitration Association solely for the purpose of selecting a
third appraiser who meets the aforesaid qualifications.

 

(iii)          Each party shall bear the full cost of
the appraiser that it appointed, one-half of the cost of the third appraiser
and one-half of the American Arbitration Association’s costs, if any, with
respect to the appointment of the third appraiser. The third appraiser, however
selected, shall be a person who has not previously acted in any capacity for
either party.

 

(iv)          Within thirty (30) days after the
selection of the third appraiser, a majority of the appraisers shall determine
the yearly fair market rent for the land. If a majority of the appraisers are
unable to agree on such yearly fair market rent within said period of time, the
three appraisals shall be added together, their total shall be divided by
three, and the resulting quotient shall be the yearly fair market rent for the
Land. If, however, the lowest appraisal and/or the highest appraisal is more
than ten percent (10%) lower and/or higher than the middle appraisal, such
lowest appraisal and/or highest appraisal shall be disregarded. If only one
appraisal is disregarded, the remaining two appraisals shall be added together
and their total divided by two, and the resulting quotient shall be the yearly
fair market rent for the Land.   If both
the lowest appraisal and the highest appraisal are disregarded, the middle
appraisal shall be the yearly fair market rent for the Land.  Notwithstanding any provision to the contrary
contained herein, in no event shall the yearly fair market rent for the Land be
less the $72,000.00 or more than $100,000.00; provided that the maximum amount
of $100,000 shall hereafter increase by the same percentage as the percentage
increase, if any, in the Consumer Price Index from November 2006, to the
month in which the Rent Appraisal Notice is delivered.  For purposes of this Agreement, the term “Consumer
Price Index” means the Consumer Price Index-All Urban Consumers, U.S.  All Items (1982-84=100) as published by the
United States Department of Labor, Bureau of Labor Statistics.  In the event that the United States
Department of Labor, Bureau of Labor Statistics discontinues the publication of
the present Consumer Price Index, the index to be used for computing increases
in Base Rent will be such index as may be published 

 

4

 

by any other United
States government bureau or department to replace the present Consumer Price
Index.

 

(v)           Notwithstanding any provision to the
contrary contained herein, the obligation to pay Base Rent hereunder shall be
waived during the period that the yearly fair market rent is being determined
hereunder. However, within thirty (30) days following such determination,
Successor Tenant shall be obligated to pay to Landlord the amount of the Base
Rent with respect to such period in order to bring current the payment of Base
Rent.

 

7.            Right of
First Offer. Landlord waives and relinquishes its right of first
offer under Section 18.1 of the Lease with respect to the transactions
contemplated by the Asset Purchase Agreement, but not otherwise.

 

8.            Amendment
to 5.1.1 of the Lease.  Section 5.1.1
of the Lease is hereby amended by deleting “ten (10) million gallons” in
the fifth line and inserting “five (5) million gallons” in lieu thereof.

 

9.            Consent
to Project Addition.  Landlord understands that Assignee
will perform or cause to be performed additional work on and upgrades to the
Plant as described on Exhibit B attached hereto (the “Project
Addition”). Landlord hereby consents to the Project Addition.  The Lease is hereby amended to include the
Project Addition in the definitions of the “Plant” and the “Improvements” set
forth in the Lease except with respect to the Required Completion Date as
provided above.

 

10.          Additional
Clarifications.

 

(a)           All references to Biofuels Company of
America, LLC in the Lease are hereby deleted and replaced with references to
Blackhawk Biofuels, LLC.

 

(b)           The Construction Contract referenced
in the Lease has been assigned to Assignee on or about the Assignment Date,

 

(c)           The definition of “Landlord and
Mortgagee Agreement” is amended to refer to that certain agreement so entitled
between Landlord and Leasehold Lender entered into on or about the Assignment
Date.

 

(d)           The definition of “Project Agreements”
is amended by substituting the following new definition in lieu thereof: “‘Project
Agreements’ means, collectively, the Construction Contract, all agreements
with respect to the Project Addition, all agreements relating to the design,
construction and equipping of the Project, including, without limitation, all
agreements between Assignor (assigned to Assignee) or Assignee or their agents
and the following: architects, engineers, contractors, equipment lessors,
material suppliers, equipment vendors and the like.”

 

5

 

(e)           The definition of “Project” is
amended by substituting the following new definition in lieu thereof: “‘Project’
means the work, labor, material and services required to construct the Plant
and the Improvements on the Land, as provided in the Construction Contract and
other Project Agreements.”

 

11.          Leasehold Mortgages.  Landlord hereby consents to (i) the
Mortgage of Leasehold, Security Agreement, Assignment of Rents and Leases and
Fixture Filing to be executed by Assignee in favor of Fifth Third Bank on or
about the Assignment Date and (ii) the Subordinated Mortgage of Leasehold,
Security Agreement, Assignment of Rents and Leases and Fixture Filing to be
executed by Assignee in favor of REG Ventures, LLC on or about the Assignment
Date.

 

12.          Conveyance of Assignor’s Interest in Improvements.  Incident to the assignment and transfer of
Assignor’s interest under the Lease, Assignor also hereby grants, bargains,
conveys and sells to Assignee, and its successors and assigns, all right, title
and interest of Assignor in and to the following:

 

(a)           The Improvements, including the
Plant, and all fixtures, equipment, and personal property therein or thereon,
located on the Real Property; and

 

(b)           The offsite Improvements more
particularly enumerated on Exhibit D attached hereto and made a
part hereof and located within easement areas legally described in
(collectively, the “Easements”):

 

(i)           An
Access Right-of-Way Easement over real property legally described in Exhibit E-1
attached hereto and made a part hereof;

 

(ii)          A
Biodiesel Pipeline Easement over real property legally described in Exhibit E-2
attached hereto and made a part hereof;

 

(iii)         A
Soybean Oil Pipeline Easement over real property legally described in Exhibit E-3
attached hereto and made a part hereof; and

 

(iv)        A Gas Pipeline Easement over real property legally described
in Exhibit E-4 attached hereto and made a part hereof.

 

(c)           Assignor, for itself, and its
successors, does covenant, promise and agree, to and with Assignee, and its
successors and assigns, that Assignor has not made, done or suffered any act or
thing whereby the Improvements are or may become subject to any lien, claim,
encumbrance or security interest other than as set forth on Exhibit C
attached hereto, and the Landlord’s right of reversion, as set forth in
Sections 3.3 and 16.4 of the Lease and the Easements, and will warrant and
defend title thereto against all persons claiming from or through Assignor as a
result of such act or thing.

 

(d)           Nothing herein shall be deemed to
convey any title or interest of Landlord, or of Landlord’s successors in
interest, in the Real Property, or in any easement area above-described, it
being intended that the Improvements described herein and in the Lease are and
shall be deemed severed from such title or interest of Landlord, or its 

 

6

 

successors, but shall
nevertheless be subject to Landlord’s aforesaid right of reversion under the
Lease and the Easements.

 

13.          Agreement.
The Lease as amended by this First Amendment remains in full force and effect
and is in all respects ratified and confirmed. The Lease, as so amended by this
First Amendment, shall be read, taken and construed as one and the same instrument.

 

14.          Counterparts.
This First Amendment may be executed by any one or more of the parties hereto
in any number of counterparts, each of which shall be deemed to be an original,
but all such respective counterparts shall together constitute one and the same
instrument.

 

15.          Memorandum
of First Amendment.  Contemporaneously with the execution of this
First Amendment, Landlord, Assignor and Assignee shall execute and acknowledge
a Memorandum of this First Amendment (the “Memorandum”) for purpose of
recordation.  The Memorandum shall be in
the form attached hereto as Exhibit F.  Any party may record the Memorandum in the
appropriate public records.  Upon
termination of the Lease, as amended, Tenant agrees, upon demand, to execute a
release of the Memorandum in recordable form.

 

[REMAINDER
OF PAGE LEFT BLANK, SIGNATURE PAGE TO FOLLOW]

 

7

 

IN WITNESS WHEREOF, the undersigned have caused this First
Amendment to be duly executed as of the date first above written.

 

	
  LANDLORD:

  	
  BUNGE MILLING, INC, an Illinois
  

  
	
   

  	
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
       /S/
  Todd A. Bastean

  
	
   

  	
  Name:

  	
   Todd A. Bastean

  
	
   

  	
  Title:

  	
   V.P. &
  General Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
  ASSIGNOR:

  	
  BIOFUELS COMPANY OF
  AMERICA, 

  
	
   

  	
  LLC, an Illinois limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /S/ Mark A.
  Burke

  
	
   

  	
   

  	
   Mark A. Burke,
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
  ASSIGNEE:

  	
  BLACKHAWK BIOFUELS, LLC, a 

  
	
   

  	
  Delaware limited liability
  company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
      /S/
  Ronald L. Mapes

  
	
   

  	
   

  	
   Ronald L. Mapes,
  Chair

  
					

 

	
  Exhibit A:

  	
   

  	
  Legal
  Description of Real Property

  
	
   

  	
   

  	
   

  
	
  Exhibit B:

  	
   

  	
  Description of
  Project Addition

  
	
   

  	
   

  	
   

  
	
  Exhibit C:

  	
   

  	
  Permitted
  Exceptions to Title to On-Site Improvements

  
	
   

  	
   

  	
   

  
	
  Exhibit D:

  	
   

  	
  Offsite
  Improvements in Easement Areas

  
	
   

  	
   

  	
   

  
	
  Exhibit E-1:

  	
   

  	
  Legal
  Description of Access Right-of-Way Easement Area

  
	
   

  	
   

  	
   

  
	
  Exhibit E-2:

  	
   

  	
  Legal
  Description of Biodiesel Pipeline Easement Area

  
	
   

  	
   

  	
   

  
	
  Exhibit E-3:

  	
   

  	
  Legal
  Description of Soybean Oil Pipeline Easement Area

  
	
   

  	
   

  	
   

  
	
  Exhibit E-4:

  	
   

  	
  Legal
  Description of Gas Pipeline Easement Area

  
	
   

  	
   

  	
   

  
	
  Exhibit F:

  	
   

  	
  Form of
  Memorandum of Lease

  

 

8

 

EXHIBIT
A

 

LEGAL DESCRIPTION OF REAL PROPERTY

 

A
tract of land being part of the Northwest Quarter of Section 9, Township
19 North, Range 11
West of the Second Principal Meridian, Vermilion County, Illinois and also part
of Chs’ Leverenz First Addition to the City of Danville, Vermilion County,
Illinois, Edward C. Lamm’s Addition to Danville, Illinois and Fred Stebe’s
Addition to the City of Danville, Vermilion County, Illinois as all 3
subdivisions are recorded in the Vermilion County Recorder’s Office, and also
the vacated public Right-of-Ways for Section Street, Short Street,
Anderson Street, Harrison Street and the public alleys per City of Danville,
Illinois Ordinance Number 8499, recorded as
Document Number 06-12386 in said Vermilion County Recorder’s Office, described
as follows, with bearings on a local
datum:

 

Beginning at the Northeast
corner of Lot 1 in said Chs’ Leverenz First Addition, proceed North 88° 26' 08"
East along an Easterly extension of the North line of said Lot, 24.06 feet to
the Westerly Right-of-Way line of the former C. & E. I. Railroad;
thence South 23° 16' 43" East along said Westerly Right-of-Way line of the
former C. & E. I. Railroad, 96.74 feet to the East Right-of-Way line
of Anderson Street; thence South 2° 27' 08" West along said East
Right-of-Way line of Anderson Street, 75.37 feet to an Easterly extension of
the South line of said Lot 1; thence South
88° 25' 51" West along said extension of the South line, 66.16 feet to the
Southeast corner of said Lot 1; thence South 2° 27' 08" West along
a Southerly extension of the East line of
said Lot, 50.12 feet to the Northeast corner of Lot 1 in Christ Evert’s 1st Addition to the City of Danville,
Illinois, as recorded in said Vermilion County Recorder’s Office, said corner
also being on the South Right-of-Way line of Harrison Street; thence South 88°
25' 51" West along said South Right-of-Way line of Harrison Street, 280.15
feet; thence South 88° 31' 59" West along
said South Right-of-Way line of Harrison Street, 443.13 feet; thence North 2°
35' 14" East along said South Right-of-Way line of Harrison Street,
25.15 feet; thence South 88° 31' 59" West along said South Right-of-Way
line of Harrison Street, 220.89 feet to the West Right-of-Way line of Section Street;
thence North 2° 48' 17" East along said West Right-of-Way line of Section Street, 305.28 feet to a line being a Westerly
extension of the North line of Lot 12 in said Edward C. Lamm’s Addition;
thence North 88° 33' 27" East along said Westerly extension of the North
line and along said North line, 66.54 feet to the Northeast corner of said Lot
12; thence South 2° 45' 04" West along the East line of said Lot, 124.94
feet to the Southeast corner of said Lot 12; thence North 88° 32' 47" East
along the South lines of Lots 11, 10, 9, 8 and 7 in said Edward C. Lamm’s
Addition, 250.60 feet to the Southeast corner of said Lot 7; thence North 2 
28' 42" East along the East line of said Lot, 124.85 feet to the Northeast
corner of said Lot 7; thence North 88° 33' 27" East along an Easterly
extension of the North line of said Lot 7 and along the North lines of Lots 6,
5, 4, 3, 2 and 1 in said Edward C. Lamm’s Addition and along an Easterly
extension of said North lines, 344.04 feet to the West line of Lot 9 in said
Fred Stebe's Addition; thence North 2° 09' 08" East along said West line,
30.56 feet to the Northwest corner of said Lot 9; thence North 88° 29' 47"
East along the North line of said Lot, 56.31 feet to the Northeast corner of
said Lot 9; thence South 2° 11' 37" West along the East line of said Lot,
128.36 feet to the Southeast corner of said Lot 9; thence South 88° 26' 08"
West along the South line of said Lot, 56.22
feet to the Southwest corner of said Lot 9; thence South 2° 09' 06" West along a Northerly extension of the West line of Lot
4 in said Chs’ Leverenz First Addition, 16.50 feet to the Northwest corner of said Lot 4; thence North 88° 26' 08"
East along the North line of said Lot
4 and along the North lines of Lots 3 and 2 and said North line of Lot 1, all
in said Chs’ Leverenz First Addition, 281.02 feet to the Point of
Beginning, encompassing 5.924 acres more  or less.

 

9

 

EXHIBIT B

 

DESCRIPTION OF
PROJECT ADDITION

 

The new work to be performed
by Assignee is to upgrade the 45 million gallon per year De Smet and Fagen
built Danville plant to include a cold filtration process, additional receiving
capability for feedstocks other than degummed oil, with required heat and heat
trace of all applicable tanks and piping, additional biodiesel storage to allow
compliance with BQ-9000 requirements, a fatty acid stripping system and the
capability to blend separate lots of biodiesel to load-out.

 

10

 

EXHIBIT
C

 

PERMITTED
EXCEPTIONS TO TITLE TO IMPROVEMENTS

 

11

 

EXHIBIT
D

 

DESCRIPTION OF OFFSITE IMPROVEMENTS IN EASEMENT AREAS

 

1. 
The following offsite Improvements located within the easement area for the
Access Right-of-Way described in Exhibit E-1: None.

 

2. 
The following offsite Improvements located within the easement area for the
Biodiesel Pipeline Easement described on

Exhibit E-2:  A four inch (4”) uninsulated
pipeline for biodiesel; a four inch (4”) insulated pipeline for glycerin,
together with structural supports for both pipelines, truss systems, two (2) loading
arms and related valving, and electrical wires within a conduit.

 

3. 
The following offsite Improvements located within the easement area for the
Soybean Oil Pipeline Easement described in Exhibit E-3: A
pump, that portion of an uninsulated three inch (3”) raw
material pipeline which begins at the pump and ends where the pipeline crosses
onto the Real Property leased under the Lease, supports for that portion
of the pipeline and electrical wires within a conduit.

 

4. 
The following offsite Improvements located within the easement area for the Gas
Pipeline Easement described in Exhibit E-4: That portion of the gas
supply pipeline running above and below ground and related supports, which
begins at the Ameren-owned meter and ends where the pipeline crosses onto the
Real Property leased under the Lease.

 

12

 

EXHIBIT
E-1

 

LEGAL DESCRIPTION
OF ACCESS RIGHT OF WAY EASEMENT AREA

 

A
tract of land being a part of the North one-half of Section 9, Township 19
North, Range 11 West of the Second Principal Meridian, Vermilion County,
Illinois, described as follows, with bearings on a local datum:

 

Commencing
at the Northeast corner of Lot 1 in Christ Evert’s 1st Addition to
the City of Danville, Illinois, as recorded in the Vermilion County recorder’s
office, said corner also being on the South Right-of-Way line of vacated
Harrison Street (platted as Madison Street), proceed South 88° 25' 51"
West along said South Right-of-Way line, 280.15 feet; thence South 88° 31' 59"
West along said South Right-of-Way line, 184.85 feet to the True Point of
Beginning; thence continue South 88° 31' 59" West along South Right-of-Way
line, 50.30 feet; thence South 33° 31' 40" East, 42.68 feet; thence South
00° 57'  00" West, 405.00 feet;
thence South 20° 47' 53" East, 210.22 feet; thence North 74° 55' 37"
East, 42.68 feet, thence South 15° 19' 21" East, 136.89 feet; thence South
02° 33' 00" West, 16.14 feet to the North Right-of-Way line of North
Street; thence South 87° 27' 00" East along said North Right-of-Way line,
180.54 feet; thence North 02° 23' 00" East, 351.45 feet; thence South 88°
09' 07" West, 130.15 feet; thence North 02° 27' 08" East, 138.58
feet; thence South 88° 16' 50" West, 195.96 feet; thence North 00° 57' 00"
East, 300.00 feet; thence North 16° 15' 59" East, 4.15 feet to the True
Point of Beginning, encompassing 2.922 acres more or less.

 

13

 

EXHIBIT
E-2

 

LEGAL DESCRIPTION
OF BIODIESEL PIPELINE EASEMENT AREA

 

A
tract of land being 20.00 feet in width and being centered upon the following
described center line and being part of the North one-half of Section 9,
Township 19 North, Range 11 West of the Second Principal Meridian, Vermilion
Country, Illinois, described as follows, with bearing on a local datum:

 

Commencing
at the Northeast corner of Lot 1 in Christ Evert’s 1st Addition to
the City of Danville, Illinois, as recorded in the Vermilion County recorder’s
office, said corner also being on the South Right-of-Way line of vacated
Harrison Street (platted as Madison Street), proceed South 88° 25' 51"
West along said South Right-of-Way line, 280.15 feet; thence South 88° 31' 59"
West along said South Right-of-Way line, 443.13 feet; thence North 02° 34' 14"
East along said South Right-of-Way line, 25.15 feet; thence South 88° 31' 59"
West along said Right-of-Way line, 41.61 feet to the True Point of Beginning of
said center line; thence South 44° 44' 27" West, 318.70 feet; thence North
78° 26' 57" West, 107.90 feet; thence South 66° 39' 16" West, 59.97
feet; thence South 19° 59' 46" West, 10.00 feet to the point of the ending
of said center line.

 

14

 

EXHIBIT
E-3

 

LEGAL DESCRIPTION
OF SOYBEAN OIL PIPELINE EASEMENT AREA

 

A
tract of land being 20.00 feet in width and being centered upon the following
described center line and being part of the North one-half of Section 9,
Township 19 North, Range 11 West of the Second Principal Meridian, Vermilion
Country, Illinois, described as follows, with bearing on a local datum:

 

Commencing
at the Northeast corner of Lot 1 in Christ Evert’s 1st Addition to
the City of Danville, Illinois, as recorded in the Vermilion County recorder’s
office, said corner also being on the South Right-of-Way line of vacated
Harrison Street (platted as Madison Street), proceed South 88° 25' 51"
West along said South Right-of-Way line, 280.15 feet; thence South 88° 31' 59"
West along said South Right-of-Way line, 161.63 feet to the True Point of
Beginning of said center line; thence South 00° 05' 56" West, 116.68 feet;
thence South 45° 14' 48" East, 46.13 feet; thence South 81° 16' 37"
East, 58.62 feet; thence North 50° 05' 48" East, 34.72 feet to the point
of ending of said center line.

 

15

 

EXHIBIT
E-4

 

LEGAL DESCRIPTION
OF GAS PIPELINE EASEMENT AREA

 

A
tract of land being 12.00 feet in width and being centered upon the following
described center line and being part of the North one-half of Section 9,
Township 19 North, Range 11 West of the Second Principal Meridian, Vermilion
Country, Illinois, described as follows, with bearing on a local datum:

 

Commencing
at the Northeast corner of Lot 1 in Christ Evert’s 1st Addition to
the City of Danville, Illinois, as recorded in the Vermilion County recorder’s
office, said corner also being on the South Right-of-Way line of vacated
Harrison Street (platted as Madison Street), proceed South 88° 25' 51"
West along said South Right-of-Way line, 6.00 feet to the True Point of
Beginning of said center line; thence South 02° 27' 08" West along a line
being parallel with the West Right-of-Way line Anderson Street, 309.50 feet;
thence South 88° 33' 32" West, 477.00 feet; thence South 02° 03' 14"
East, 133.94 feet; thence South 08° 49' 38" East, 50.50 feet; thence South
68° 39' 13" West, 109.57 feet; thence South 21° 14' 31" East, 70.33
feet; thence South 12° 47' 11" East, 46.53 feet; thence South 19° 46' 04"
West, 140.44 feet; thence South 01° 35' 19" West, 204.49 feet; thence
North 87° 48' 14" West, 801.27 feet; thence North 67° 37' 59"  West, 48.04 feet; thence North 46° 31' 27"
West, 33.50 feet to the point of ending of said center line.

 

16

 

EXHIBIT F

 

FORM OF
MEMORANDUM OF FIRST AMENDMENT

 

The above space for
Recorder’s use only

 

MEMORANDUM OF  FIRST AMENDMENT, ASSIGNMENT AND ASSUMPTION AND CONSENT TO
ASSIGNMENT OF GROUND LEASE AND CONVEYANCE OF LEASEHOLD IMPROVEMENTS

 

This Memorandum of First Amendment, Assignment and Assumption and
Consent to Assignment of Ground Lease and Conveyance of Leasehold Improvements,
dated as of May 9, 2008, shall serve as notice that BUNGE
MILLING, INC., an Illinois corporation (“Landlord”), BIOFUELS COMPANY OF AMERICA, LLC, an Illinois limited
liability company (“Assignor”), and BLACKHAWK BIOFUELS, LLC,
a Delaware limited liability company (“Assignee”) have entered into an
First Amendment, Assignment and Assumption and Consent to Assignment of Ground
Lease and Conveyance of Leasehold Improvements (“Amendment, Assignment, Consent
and Conveyance Agreement”) of even date herewith, pursuant to which the parties
have agreed, among other things, (i) to the assignment by Assignor to
Assignee, (to which Landlord has consented in such Amendment, Assignment,
Consent and Conveyance Agreement), of Assignor’s interest under that certain
Amended and Restated Ground Lease Agreement dated November 3, 2006, by and
between Landlord and Assignor (the “Lease”), which Lease covers the real
property (the “Real Property” legally described on Exhibit A attached
hereto and made a part hereof and located in the City of Danville, Vermilion
County, Illinois, a Memorandum of which Lease, dated November 3, 2006 was
recorded November 22, 2006 as Document No. 2006-15109, files of the
Vermilion County Recorder; (ii) to the amendment of the Lease, as
assigned; and (iii) the conveyance (as more particularly described below)
of the interest of Assignor in certain Improvements (as described in  the Lease and in said Amendment, Assignment,
Consent and Conveyance Agreement) from Assignor to Assignee subject to Landlord’s
right of reversion in such Improvements as set forth in the Lease and the
Amendment, Assignment, Consent and Conveyance Agreement.

 

Without limiting the foregoing, and incident to the assignment and
transfer of Assignor’s interest under the Lease, as above-described, Assignor
has granted, bargained, 

 

17

 

sold, and conveyed to Assignee, and its successors and
assigns, all right, title and interest of Assignor in and to the following
(collectively, the “Easements”):

 

The Improvements, including the Plant (as defined in the Lease), and
all fixtures, equipment, and personal property therein or thereon, located on
the Real Property; and

 

The offsite Improvements more particularly enumerated on Exhibit B
attached hereto and made a part hereof and located within easement areas
legally described in:

 

(i)                                     An Access Right-of-Way Easement over real
property legally described in Exhibit C-1 attached hereto and made
a part hereof;

 

(ii)                                  A Biodiesel Pipeline Easement over real
property legally described in Exhibit C-2 attached hereto and made
a part hereof;

 

(iii)                               A Soybean Oil Pipeline Easement over real
property legally described in Exhibit C-3 attached hereto and made
a part hereof; and

 

(iv)                              A Gas Pipeline Easement over real
property legally described in Exhibit C-4 attached hereto and made
a part hereof.

 

Assignor, for itself, and its successors, has covenanted, promised and
agreed, to and with Assignee, and its successors and assigns, that Assignor has
not made, done or suffered any act or thing whereby the Improvements are or may
become subject to any lien, claim, encumbrance or security interest other than
as set forth on Exhibit D attached hereto, and the Landlord’s right
of reversion, as set forth in Sections 3.3 and 16.4 of the Lease and the
Easements, and will warrant and defend title thereto against all persons
claiming from or through Assignor as a result of such act or thing.

 

Nothing herein shall be deemed to convey any title or interest of
Landlord, or of Landlord’s successors in interest, in the Real Property, or in
any of the four (4) easement areas herein described, it being intended
that the Improvements described herein and in the Lease have been and shall be
deemed severed from such title or interest of Landlord, or its successors, but
shall nevertheless be subject to Landlord’s aforesaid right of reversion under
the Lease and the Easements.

 

The purpose of this Memorandum is to give notice to parties hereafter
claiming any right, title or interest in and to the Real Property of the
rights, claims and interests of the parties to the Amendment, Assignment,
Consent and Conveyance Agreement and in and to the Real Property, pursuant
thereto.

 

IN WITNESS WHEREOF, the
parties hereto have caused this Memorandum of First Amendment, Assignment and
Assumption and Consent to Assignment of Ground Lease and Conveyance of
Leasehold Improvements to be executed and delivered by their respective duly
authorized officers, effective as of the day and year first above-written.

 

[Signature pages to
follow.]

 

18

 

[Signature Page of
Landlord, Bunge Milling, Inc.]

 

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  BUNGE MILLING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ACKNOWLEDGMENT

  	
   

  
	
   

  	
   

  
	
  STATE
  OF MISSOURI  

  	
  )

  	
   

  
	
   

  	
  )
  SS

  	
   

  
	
  COUNTY
  OF ST. LOUIS

  	
  )

  	
   

  
						

 

Be it known, that on this
       day of
                          ,
2008, personally appeared before me
                                  ,
who, being by me duly sworn did depose and say that he/she is the
                          
of BUNGE MILLING, INC, an Illinois corporation, that the foregoing instrument
was signed on behalf of said corporation.

 

In Testimony Whereof, I have hereunto set my hand
and affixed my official seal in the State and County aforesaid on the day and
year first above written.

 

	
   

  	
   

  
	
   

  	
  Notary
  Public

  
	
   

  	
   

  
	
  My
  commission expires on:

  	
   

  

 

19

 

[Signature page of
Assignor, Biofuels Company of America, LLC]

 

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  BIOFUELS COMPANY OF 

  
	
   

  	
  AMERICA, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
     Mark A.
  Burke, President

  
	
   

  	
   

  
	
   

  	
   

  
	
  ACKNOWLEDGMENT

  	
   

  
	
   

  	
   

  
	
  STATE
  OF                   

  	
  )

  	
   

  
	
   

  	
  )
  SS

  	
   

  
	
  COUNTY
  OF               

  	
  )

  	
   

  

 

Be it known, that on this
       day of
                          ,
2008, personally appeared before me
                              ,
who, being by me duly sworn did depose and say that he/she is the
                        
of BIOFUELS COMPANY OF AMERICA, LLC, an Illinois limited liability company,
that the foregoing instrument was signed on behalf of said limited liability
company by authority of its members, and said person acknowledged the within
instrument to be the free act and deed of said limited liability company.

 

In Testimony Whereof, I have hereunto set my hand
and affixed my official seal in the State and County aforesaid on the day and
year first above written.

 

	
   

  	
   

  
	
   

  	
  Notary
  Public

  
	
   

  	
   

  
	
  My
  commission expires on:

  	
   

  

 

20

 

[Signature Page of
Assignee, Blackhawk Biofuels, LLC]

 

 

	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  BLACKHAWK BIOFUELS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Ronald
  L. Mapes, Chair

  
	
   

  	
   

  
	
   

  	
   

  
	
  ACKNOWLEDGMENT

  	
   

  
	
   

  	
   

  
	
  STATE
  OF                   

  	
  )

  	
   

  
	
   

  	
  )
  SS

  	
   

  
	
  COUNTY
  OF               

  	
  )

  	
   

  

 

Be it known, that on this
       day of
                          ,
2008, personally appeared before me
                              ,
who, being by me duly sworn did depose and say that he/she is the
                          
of BLACKHAWK BIOFUELS, LLC, a Delaware limited liability company, that the
foregoing instrument was signed on behalf of said limited liability company by
authority of its members, and said person acknowledged the within instrument to
be the free act and deed of said limited liability company.

 

In Testimony Whereof, I have hereunto set my hand
and affixed my official seal in the State and County aforesaid on the day and
year first above written.

 

	
   

  	
   

  
	
   

  	
  Notary
  Public

  
	
   

  	
   

  
	
  My
  commission expires on:

  	
   

  

 

 

This instrument was
drafted by:

Lindquist &
Vennum P.L.L.P. (JPS)

Suite 4200 IDS Tower

80 South Eighth Street

Minneapolis, MN 55402

612-371-3211

 

21

 

EXHIBIT
A

 

LEGAL DESCRIPTION OF REAL PROPERTY

 

A tract of land being
part of the Northwest Quarter of Section 9, Township 19 North, Range 11
West of the Second Principal Meridian, Vermilion County, Illinois and also part
of Chs’ Leverenz First Addition to the City of Danville, Vermilion County,
Illinois, Edward C. Lamm’s Addition to Danville, Illinois and Fred Stebe’s
Addition to the City of Danville, Vermilion County, Illinois as all 3
subdivisions are recorded in the Vermilion County Recorder’s Office, and also
the vacated public Right-of-Ways for Section Street, Short Street,
Anderson Street, Harrison Street and the public alleys per City of Danville,
Illinois Ordinance Number 8499, recorded as Document Number 06-12386 in said
Vermilion County Recorder’s Office, described as follows, with bearings on a
local datum:

 

Beginning at the
Northeast corner of Lot 1 in said Chs’ Leverenz First Addition, proceed North
88° 26' 08" East along an Easterly extension of the North line of said
Lot, 24.06 feet to the Westerly Right-of-Way line of the former C. &
E. I. Railroad; thence South 23° 16' 43" East along said Westerly
Right-of-Way line of the former C. & E. I. Railroad, 96.74 feet to the
East Right-of-Way line of Anderson Street; thence South 2° 27' 08" West
along said East Right-of-Way line of Anderson Street, 75.37 feet to an Easterly
extension of the South line of said Lot 1; thence South 88° 25' 51" West
along said extension of the South line, 66.16 feet to the Southeast corner of
said Lot 1; thence South 2° 27' 08" West along a Southerly extension of
the East line of said Lot, 50.12 feet to the Northeast corner of Lot 1 in
Christ Evert’s 1st Addition to the City of Danville, Illinois, as recorded in
said Vermilion County Recorder’s Office, said corner also being on the South
Right-of-Way line of Harrison Street; thence South 88° 25' 51" West along
said South Right-of-Way line of Harrison Street, 280.15 feet; thence South 88°
31' 59" West along said South Right-of-Way line of Harrison Street, 443.13
feet; thence North 2° 35' 14" East along said South Right-of-Way line of
Harrison Street, 25.15 feet; thence South 88° 31' 59" West along said
South Right-of-Way line of Harrison Street, 220.89 feet to the West
Right-of-Way line of Section Street; thence North 2° 48' 17" East
along said West Right-of-Way line of Section Street, 305.28 feet to a line
being a Westerly extension of the North line of Lot 12 in said Edward C. Lamm’s
Addition; thence North 88° 33' 27" East along said Westerly extension of
the North line and along said North line, 66.54 feet to the Northeast corner of
said Lot 12; thence South 2° 45' 04" West along the East line of said Lot,
124.94 feet to the Southeast corner of said Lot 12; thence North 88° 32' 47"
East along the South lines of Lots 11, 10, 9, 8 and 7 in said Edward C. Lamm’s
Addition, 250.60 feet to the Southeast corner of said Lot 7; thence North

2° 28' 42" East along the East line of said Lot, 124.85 feet to the
Northeast corner of said Lot 7; thence North 88° 33' 27" East along an
Easterly extension of the North line of said Lot 7 and along the North lines of
Lots 6, 5, 4, 3, 2 and 1 in said Edward C. Lamm’s Addition and along an
Easterly extension of said North lines, 344.04 feet to the West line of Lot 9
in said Fred Stebe’s Addition; thence North 2° 09' 08" East along said
West line, 30.56 feet to the Northwest corner of said Lot 9; thence North 88°
29' 47" East along the North line of said Lot, 56.31 feet to the Northeast
corner of said Lot 9; thence South 2° 11' 37" West along the East line of
said Lot, 128.36 feet to the Southeast corner of said Lot 9; thence South 88°
26' 08" West along the South line of said Lot, 56.22 feet to the Southwest
corner of said Lot 9; thence South 2° 09' 06" West along a Northerly
extension of the West line of Lot 4 in said Chs’ Leverenz First Addition, 16.50
feet to the Northwest corner of 

 

22

 

said Lot 4; thence North
88° 26' 08" East along the North line of said Lot 4 and along the North
lines of Lots 3 and 2 and said North line of Lot 1, all in said Chs’ Leverenz
First Addition, 281.02 feet to the Point of Beginning, encompassing 5.924 acres
more or less.

 

23

 

EXHIBIT
B

 

DESCRIPTION OF OFFSITE IMPROVEMENTS IN EASEMENT AREAS

 

1. 
The following offsite Improvements located within the easement area for the
Access Right-of-Way described in Exhibit C-1: None.

 

2. 
The following offsite Improvements located within the easement area for the
Biodiesel Pipeline Easement described on

Exhibit C-2:  A four inch (4”) uninsulated
pipeline for biodiesel; a four inch (4”) insulated pipeline for glycerin,
together with structural supports for both pipelines, truss systems, two (2) loading
arms and related valving, and electrical wires within a conduit.

 

3. 
The following offsite Improvements located within the easement area for the
Soybean Oil Pipeline Easement described in Exhibit C-3: A
pump, that portion of an uninsulated three inch (3”) raw
material pipeline which begins at the pump and ends where the pipeline crosses
onto the Real Property leased under the Lease, supports for that portion
of the pipeline and electrical wires within a conduit.

 

4. 
The following offsite Improvements located within the easement area for the Gas
Pipeline Easement described in Exhibit C-4: That portion of the gas
supply pipeline running above and below ground and related supports, which
begins at the Ameren-owned meter and ends where the pipeline crosses onto the
Real Property leased under the Lease.

 

24

 

EXHIBIT C-1

 

LEGAL DESCRIPTION OF ACCESS RIGHT OF WAY
EASEMENT AREA

 

A
tract of land being a part of the North one-half of Section 9, Township 19
North, Range 11 West of the Second Principal Meridian, Vermilion County,
Illinois, described as follows, with bearings on a local datum:

 

Commencing
at the Northeast corner of Lot 1 in Christ Evert’s 1st Addition to
the City of Danville, Illinois, as recorded in the Vermilion County recorder’s
office, said corner also being on the South Right-of-Way line of vacated
Harrison Street (platted as Madison Street), proceed South 88° 25' 51"
West along said South Right-of-Way line, 280.15 feet; thence South 88° 31' 59"
West along said South Right-of-Way line, 184.85 feet to the True Point of
Beginning; thence continue South 88° 31' 59" West along South Right-of-Way
line, 50.30 feet; thence South 33° 31' 40" East, 42.68 feet; thence South
00° 57'  00" West, 405.00 feet;
thence South 20° 47' 53" East, 210.22 feet; thence North 74° 55' 37"
East, 42.68 feet, thence South 15° 19' 21" East, 136.89 feet; thence South
02  33' 00" West, 16.14 feet to the North Right-of-Way line of North
Street; thence South 87° 27' 00" East along said North Right-of-Way line,
180.54 feet; thence North 02° 23' 00" East, 351.45 feet; thence South 88°
09' 07" West, 130.15 feet; thence North 02° 27' 08" East, 138.58
feet; thence South 88° 16' 50" West, 195.96 feet; thence North 00° 57' 00"
East, 300.00 feet; thence North 16° 15' 59" East, 4.15 feet to the True
Point of Beginning, encompassing 2.922 acres more or less.

 

25

 

EXHIBIT C-2

 

LEGAL DESCRIPTION OF BIODIESEL PIPELINE
EASEMENT AREA

 

A
tract of land being 20.00 feet in width and being centered upon the following
described center line and being part of the North one-half of Section 9,
Township 19 North, Range 11 West of the Second Principal Meridian, Vermilion
Country, Illinois, described as follows, with bearing on a local datum:

 

Commencing
at the Northeast corner of Lot 1 in Christ Evert’s 1st Addition to
the City of Danville, Illinois, as recorded in the Vermilion County recorder’s
office, said corner also being on the South Right-of-Way line of vacated
Harrison Street (platted as Madison Street), proceed South 88° 25' 51"
West along said South Right-of-Way line, 280.15 feet; thence South 88° 31' 59"
West along said South Right-of-Way line, 443.13 feet; thence North 02° 34' 14"
East along said South Right-of-Way line, 25.15 feet; thence South 88° 31' 59"
West along said Right-of-Way line, 41.61 feet to the True Point of Beginning of
said center line; thence South 44° 44' 27" West, 318.70 feet; thence North
78° 26' 57" West, 107.90 feet; thence South 66° 39' 16" West, 59.97
feet; thence South 19° 59' 46" West, 10.00 feet to the point of the ending
of said center line.

 

26

 

EXHIBIT C-3

 

LEGAL DESCRIPTION OF SOYBEAN OIL PIPELINE EASEMENT AREA

 

A
tract of land being 20.00 feet in width and being centered upon the following
described center line and being part of the North one-half of Section 9,
Township 19 North, Range 11 West of the Second Principal Meridian, Vermilion Country,
Illinois, described as follows, with bearing on a local datum:

 

Commencing
at the Northeast corner of Lot 1 in Christ Evert’s 1st Addition to
the City of Danville, Illinois, as recorded in the Vermilion County recorder’s
office, said corner also being on the South Right-of-Way line of vacated
Harrison Street (platted as Madison Street), proceed South 88° 25' 51"
West along said South Right-of-Way line, 280.15 feet; thence South 88° 31' 59"
West along said South Right-of-Way line, 161.63 feet to the True Point of
Beginning of said center line; thence South 00° 05' 56" West, 116.68 feet;
thence South 45° 14' 48" East, 46.13 feet; thence South 81° 16' 37"
East, 58.62 feet; thence North 50° 05' 48" East, 34.72 feet to the point
of ending of said center line.

 

27

 

EXHIBIT C-4

 

LEGAL DESCRIPTION OF GAS PIPELINE EASEMENT AREA

 

A
tract of land being 12.00 feet in width and being centered upon the following
described center line and being part of the North one-half of Section 9,
Township 19 North, Range 11 West of the Second Principal Meridian, Vermilion
Country, Illinois, described as follows, with bearing on a local datum:

 

Commencing
at the Northeast corner of Lot 1 in Christ Evert’s 1st Addition to
the City of Danville, Illinois, as recorded in the Vermilion County recorder’s
office, said corner also being on the South Right-of-Way line of vacated
Harrison Street (platted as Madison Street), proceed South 88° 25' 51"
West along said South Right-of-Way line, 6.00 feet to the True Point of
Beginning of said center line; thence South 02° 27' 08" West along a line
being parallel with the West Right-of-Way line Anderson Street, 309.50 feet;
thence South 88° 33' 32" West, 477.00 feet; thence South 02° 03' 14"
East, 133.94 feet; thence South 08° 49' 38" East, 50.50 feet; thence South
68° 39' 13" West, 109.57 feet; thence South 21° 14' 31" East, 70.33
feet; thence South 12° 47' 11" East, 46.53 feet; thence South 19° 46' 04"
West, 140.44 feet; thence South 01° 35' 19" West, 204.49 feet; thence
North 87° 48' 14" West, 801.27 feet; thence North 67° 37' 59"  West, 48.04 feet; thence North 46° 31' 27"
West, 33.50 feet to the point of ending of said center line.

 

28

 

EXHIBIT D

 

PERMITTED EXCEPTIONS TO TITLE TO IMPROVEMENTS

 

29

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