Document:

Exhibit 10.15

Contract No. 600104

NORTHERN LIGHTS EXPANSION – PHASE 2

PRECEDENT AGREEMENT

BETWEEN

NORTHERN NATURAL GAS COMPANY

AND

MILLENNIUM ETHANOL, LLC

This Precedent Agreement dated this 18th day of May, 2006, evidences the agreement
between Northern Natural Gas Company (Northern) and Millennium Ethanol, LLC
(Customer), upon fulfillment of the conditions precedent set forth herein, to
enter into a firm throughput service agreement as further described below under
which Northern proposes to provide firm transportation service for delivery in
the Market Area for Customer upon Northern’s installation of certain facilities
to expand the capacity of Northern’s system, including mainline and
branchlines, as necessary (Northern Lights Expansion – Phase 2). However,
before Northern can determine whether the project can be included in the
Northern Lights Expansion – Phase 1 or Phase 2 and apply for regulatory
approvals and permits to expand the facilities, Northern must evaluate the
capacity requested by customers. Accordingly, Northern is seeking a commitment
from Customers who are interested in using, on a firm basis, the proposed
expansion capacity in order for Northern to apply for the necessary regulatory
approvals and authorizations required for the Northern Lights Expansion – Phase
2.

In consideration of the above, Northern and Customer
hereby agree as follows:

1.                                                   Northern
and Customer propose to enter into a Firm Throughput Service Agreement
consistent with Northern’s TF or TFX Rate Schedule, or any successor firm
transportation rate schedule then in effect, which shall be subject to all of
the terms and conditions of Northern’s Federal Energy Regulatory Commission
(FERC) Gas Tariff, as may be revised from time to time (Northern’s Tariff), and
all rules and regulations of governmental authorities having jurisdiction. The
Firm Throughput Service Agreement shall provide for the transportation of
natural gas from the primary point(s) of receipt to the primary point(s) of
delivery set forth on Appendix A attached hereto and incorporated herein.

2.                                                   The
transportation rate to be paid by Customer to Northern under said Firm
Throughput Service Agreement shall be the maximum rates provided for in
Northern’s Tariff, as amended from time to time, which includes applicable

surcharges, plus applicable Annual Charge Adjustment, fuel use and unaccounted for,  electric compression charges and any
other FERC-approved reservation and/or  commodity surcharges, unless the parties
mutually agree to a  different
rate as set forth on Appendix A.

3.                                       The
Firm Throughput Service Agreement(s) shall have a term as set forth on Appendix
A.

4.                                       The
quantity of gas to be transported under the subject Firm Throughput Service
Agreement shall be as set forth on Appendix A unless the transportation quantity
set forth on Appendix A and/or the transportation quantities agreed to by
Northern in the Precedent Agreements entered into with Customers for use of the
facilities  contemplated
in the subject expansion are modified by any FERC decision, in which case said
firm quantities set forth in this paragraph 4 shall be modified to conform to
the FERC’s decision.

5.                                       Northern
will proceed with due diligence to apply for and attempt to obtain all
government and regulatory approvals, including, but not limited to,
authorizations from the FERC, which are necessary to construct, own and operate
(or cause to be constructed or operated) the facilities necessary to provide
the firm natural gas transportation service and to perform its obligations
contemplated in this Agreement. Customer shall support any Northern filing for
such approvals. Northern may file for regulatory approvals in a filing separate
from Phase 1 of the Northern Lights Expansion. Northern will promptly notify
Customer when all such approvals have been obtained.

6.                                       This
Precedent Agreement obligating Northern and Customer to enter into the
above-described Firm Throughput Service Agreement and obligating Northern to
render the proposed service is expressly subject to:

a.               Receipt
by Northern of all approvals required to construct the necessary facilities and
effectuate the proposed service at the rates agreed to hereunder including all
necessary authorizations from federal, state, local, and/or municipal agencies
or other governmental authorities. It is expressly understood that all such
approvals shall be in a form and substance satisfactory to Northern, and shall
be final before the respective governmental authority and no longer subject to
appeal or rehearing before such

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governmental authority unless Northern waives the requirement that the
approval be final; and

b.              Northern
shall have the right at any time to terminate this Precedent Agreement and any
resulting Firm Throughput Service Agreement and to withdraw any requests or
applications for regulatory approvals if Northern determines, in its sole
discretion, that the Northern Lights Expansion, or portion thereof, has become
uneconomical for Northern to pursue.

c.               Receipt
by Customer of all regulatory approvals and project financing arrangements
required to construct the necessary facilities for the ethanol plant by June 5,
2006; provided, however, in such event, Customer will reimburse Northern for
all out of pocket costs incurred, including tax gross up.

7.                                       It
is expressly understood by the parties that unless Northern receives Precedent
Agreements from Customers obligating such Customers to enter into Firm
Throughput Service Agreements upon the installation of the facilities for a
certain amount of capacity to be determined by Northern to economically justify
the Northern Lights Expansion, or portion thereof, Northern shall have no
obligation whatsoever to file for the related regulatory permits or approvals,
in which event this Precedent Agreement shall be terminated by Northern upon
written notice to Customer.

8.                                       Customer
must meet the creditworthiness requirements of Section 46 of Northern’s FERC
Gas Tariff. If at any time after the execution of this Precedent Agreement and
during the term of any Firm Throughput Service Agreement entered into pursuant
to this Precedent Agreement, Customer becomes non-creditworthy, Northern may
require security for the mainline and branchline facilities necessary to
provide the service set forth herein consistent with the types of security
Northern may require as set forth in Section 46(a) of the General
Terms and Conditions of its FERC Gas Tariff.

9.                                       This
Precedent Agreement and the Firm Throughput Service Agreement contemplated
herein and the terms and conditions thereof are subject to Northern’s Tariff,
all valid laws, rules and regulations of duly constituted authorities having
jurisdiction, and are subject to any and all receipts of such authorization as
may be required for the construction of the facilities and the service
contemplated herein.

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10.                                 Upon
Northern’s receipt of all approvals satisfactory to Northern, Northern will
install the facilities authorized to provide the service contemplated
hereunder.

11.                                 Except
as to the interpretation, applicability, or enforcement of this Precedent
Agreement before a trier of fact or as may be requested by administrative or
judicial action, Customer shall not reveal this Precedent Agreement or the
terms and conditions thereof to any other parties.

12.                                 This
Agreement may be signed in counterparts, each of which when signed shall be an
original, but all of which shall together constitute one and the same
instrument.

13.                                 AS
TO ALL MATTERS OF CONSTRUCTION AND INTERPRETATION, THIS PRECEDENT AGREEMENT
SHALL BE INTERPRETED, CONSTRUED AND GOVERNED BY THE LAWS OF THE STATE OF
NEBRASKA.

14.                                 If
Northern has not executed this Precedent Agreement by July 1, 2006, this
Precedent Agreement shall be null and void and of no further force or effect.

Subject to the terms and conditions of this Precedent
Agreement, Northern and Customer hereby agree to execute, no later than ninety
(90) days before actual service commences or earlier if required by FERC, the
Firm Throughput Service Agreement described above.

Notwithstanding any other provision herein to the
contrary, in order for Northern to evaluate the commitments that Customers are
willing to make and thus determine the feasibility of the Northern Lights
Expansion and the engineering design and size of any expansion facilities,
Northern is seeking a commitment from Customers, through Precedent Agreements,
similar to this Agreement. Additionally, these commitments will enable Northern
to allocate capacity, if necessary, among Customers who have signed such
Precedent Agreements. Accordingly, Customer recognizes and acknowledges that,
although Customer is obligated by this Agreement upon its execution and
delivery to Northern, said Agreement and the terms and conditions herein shall
be of no force and effect on Northern and Northern will have no obligations
whatsoever under this Precedent Agreement until Northern executes this
Agreement.

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The parties hereto have executed two duplicate
original copies of this Precedent Agreement to indicate their acceptance.

	
  Northern Natural Gas Company

  	
   

  	
   

  	
   

  	
  Millennium Ethanol, LLC

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Illegible

  	
   

  	
   

  	
  By:

  	
  /s/ Illegible

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  VP Bus Dev

  	
   

  	
   

  	
  Title:

  	
  CEO

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  6/7/06

  	
   

  	
   

  	
  Date:

  	
  5/18/06

  
											

 

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APPENDIX A

TO

PRECEDENT AGREEMENT

BETWEEN

NORTHERN NATURAL GAS COMPANY

AND

MILLENNIUM ETHANOL, LLC

Throughput Service
Quantities

Rate Schedule: TFX

Contract Term: 11/01/2007
through 10/31/2017

	
  Delivery Point 

  (TBS)

  	
   

  	
  Receipt Point

  	
   

  	
  Winter Volume

  (Dth/day)

  	
   

  	
  Summer Volume (Dth/day)

  	
   

  	
  Term

  
	
  New Harrisburg; SD TBS

  	
   

  	
  NBPL/NNG Ventura (POI #192)

  	
   

  	
  12,000

  	
   

  	
  12,000

  	
   

  	
  10 years

  

 

Winter includes November 1 to March 31. Summer includes April 1 to
October 31.

Rates

The rates shall be Northern’s maximum reservation and commodity rates
provided in Northern’s FERC Gas Tariff; as amended from time to time. In
addition, Customer shall pay fuel use and unaccounted for, electric compression
charges and any other FERC approved reservation and/or commodity surcharges.

The above rates are subject to change based on Northern’s capital
requirements, including changes resulting from other customers’ executed
precedent agreements. Northern shall notify Customer or any change to the rates
required for Northern to construct the facilities and provide the service.
Customer may terminate this Agreement on five (5) days written notice to
Northern from the date of Northern’s notification to Customer.

If additional compression is required at Northern’s Palmyra compressor
station to provide the service set forth herein, the term of the firm
throughput service agreement shall commence on the later of November 1, 2007 or
the in-service date of the facilities and shall extend for a period of ten (10)
years.

Security Requirements

Construction and reservation security shall be provided in a form and
pursuant to documentation acceptable to Northern.

I.         Construction
Security

Security equal to Customer’s estimated costs for the delivery point
facilities and 30% of the estimated costs of the Palmyra compressor station, if
applicable, will be required (Construction Security). Northern shall provide
written notice to Customer of the amount of the Construction Security and the
date the security is due. Customer shall provide the Full Construction Security
within 30 days following Northern’s written notice. Upon completion of the
expansion project, if Customer’s proportionate share of actual project costs
(Actual Costs) is lower than the estimated costs, Customer and Northern agree
to reduce the Construction Security to equal Customer’s proportionate share of
the Actual Costs. In the event Customer’s proportionate share of Actual Costs
are higher than estimated, Customer agrees to increase its Construction
Security with Northern for its proportionate share of the difference between
Actual Costs and estimated project cost.

Northern shall reduce the amount of Construction Security required by
one-tenth of the original balance on November 1, 2008 and each November 1
through October 31, 2017 (the term of Customer’s applicable firm throughput
service agreement(s)). Notwithstanding the above, in the event that Customer
obtains creditworthy status as defined by Northern’s Tariff, the remaining
balance of the Construction Security held by Northern shall be returned
promptly to Customer.

In the event any or all of the firm throughput service(s) is terminated
prior to October 3l, 2017 for any reason attributable to Customer, Customer
waives any and all claims to the balance of the Construction Security held by
Northern and agrees that such balance will be retained by Northern and applied
as payment for Actual Costs.

II.        Reservation
Security

Security equal to three months of reservation charges for the firm
transportation service will be required and will be provided 30 days prior to
the time firm throughput service is to commence (Reservation Security). In the
event Customer defaults on its obligation to pay any amounts due for the firm
throughput services, the Reservation Security and, at Northern’s option, the
Construction Security, shall be reduced by the amounts owed by Customer to
Northern and shall become payment for such services. Customer then shall be
required to provide Northern additional Reservation Security and Construction
Security in accordance with this Agreement and Northern’s Tariff in order to
continue to receive service.

Failure to remit the Construction Security or Reservation Security by
the due dates set forth above, in full, may at the discretion of Northern,
result in the termination of Northern’s obligations under this Precedent
Agreement or any firm throughput service agreement(s).

The Construction Security and the Reservation Security will be held by
Northern and at all times be the property of Northern.

In the event Customer is deemed creditworthy prior to the date such
Construction Security and Reservation Security is due, no security will be
required at that time.

Other

Customer agrees to limit hourly takes of natural gas to 5% (1/20 of the
MDQ) of the entitlement at the Primary delivery point and any Alternate
delivery points (including capacity release) during the term of the Agreement.Exhibit 10.16

NOTE PURCHASE AND
PURCHASE RIGHTS AGREEMENT

This
Note Purchase and Purchase Rights Agreement (this “Agreement”) is made and entered into as of March 17, 2006 (the “Execution Date”) by and between Millennium Ethanol, LLC, a South Dakota limited liability company (the “Company”), and Rex Radio and Television, Inc., an Ohio corporation (the “Lender”). Each of the Company and the
Lender may be referred to herein as a
“Party,” and collectively as the “Parties.”

WHEREAS,
the Company desires to; (i) borrow from the Lender, and the Lender desires to lend to the Company, up to $18 million, but not
less than $11 million pursuant to the terms of a note, on the terms and
conditions set forth in this Agreement, in the form attached to this Agreement as Exhibit A (the “Note”); and (ii) grant purchase rights, as
set forth in Section 5.01 of this
Agreement, for membership units in the Company in the amount of $18,000,000 to
the Lender (the “Purchase Rights”) and the Lender desires to
accept such Purchase Rights;

NOW,
THEREFORE, in consideration of the mutual promises and covenants set forth
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby
acknowledged, the Parties hereby agree as follows;

ARTICLE I

AGREEMENT TO PURCHASE AND
ISSUE NOTE

1.01         Agreement to Purchase and Issue the Note. The Company agrees to sell to the Lender, or the Lender’s designee (which designee
shall be controlled by an affiliate of the Lender or the Lender’s parent
holding company, Rex Stores Corporation, a Delaware corporation) at the Closing
(as defined below), and the Lender agrees to purchase from the Company at the
Closing, the Note, which Note shall be in a principal amount not more
than $18,000,000 nor less than $11,000,000
as the Company may designate by written notice on or prior to March 24, 2006
(the “Principal Notice Date” and the principal amount of the Note so
designated by the Company, the “Principal Amount”), in exchange for a
purchase price equal to the Principal Amount. If the Company has not designated the Principal Amount by
the Principal Notice Date, the Principal Amount shall be $18,000,000, unless otherwise mutually agreed by the
parties.

1.02     Lender’s
Obligations to be Secured by a Letter of Credit. The obligation of the Lender to purchase the Note from the Company
pursuant to the terms of this Agreement shall be secured by an
irrevocable letter of credit (the “Letter of
Credit”) issued to the Company by Bank of America in the face amount
of the Principal Amount. Such Letter of Credit shall be issued within 7
business days of the Principal Notice Date and shall expire on September 18,
2006, unless earlier terminated by: (i) the Closing; or (ii) the termination of this Agreement pursuant to Article VII
hereof. The Lender and the Company hereby agree that the bank fees actually charged to the Lender by Bank of America,
which are not in excess of 1% annually, to obtain the Letter of Credit, shall
be added to the Principal Amount of the Note. During the term of the Letter of Credit, the Company shall pay the
Lender a monthly amount equal to 1.3% of the bank fees actually charged by Bank of America to the Lender. If the
Lender does not become obligated to purchase the Note pursuant to this
Agreement, the Company shall reimburse the

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Lender for all bank fees charged
to the Lender in connection with the Letter of Credit within 30 days from the
termination of the Letter of Credit.

ARTICLE II

CLOSING CONDITIONS

2.01     The Closing. Subject to the terms
and conditions set forth herein (including the satisfaction of the conditions
set forth in this Article II and in Article VI), the closing of the transactions contemplated by this Agreement (the “Closing”, with the date on which the
Closing occurs being the “Closing Date”) will take place after the
Company satisfies the following conditions:

(a)       The Company: (i) has closed on a loan agreement, and provided evidence to the Lender of such agreement, with a qualified
senior debt lender of recognized financial capability, pursuant to which the senior
lender has made an irrevocable commitment
subject only to usual, customary and reasonable conditions for disbursement (e.g.,  lender
will not provide funds to the Company until the Company first uses the funds it
raised through subscriptions and subordinated debt), to provide the senior debt
financing required to complete construction
of the Company’s proposed 100 million gallon
ethanol facility located in Marion, South Dakota (the “Ethanol Plant”) as described in the Prospectus dated October 4, 2005
for the sale of 50,000,000 Class A Units
of the Company (the “Prospectus”),
as well as the necessary working capital, in an approximate principal amount of $96,400,000 (the “Senior Credit Facility”); and (ii) is in compliance with all covenants and is otherwise
in good standing under such Senior Credit
Facility and no default or event of default (or any event or circumstance with notice or lapse of time or both would constitute a
default or event of default) shall exist under the Senior Credit Facility.

(b)       The Company has provided reasonably
acceptable evidence to the Lender of the
receipt of: (i) subscription funds from other investors in the minimum amount
of $38,045,000 pursuant to its
offerings of its Class A units (the “Offerings”)
under the Prospectus; and (ii)
convertible debt financing from other investor(s) in the minimum principal amount of $2,000,000.

(c)       Delivery of a written opinion from the
Company’s legal counsel to the Lender that it is more likely than not
that pursuant to applicable federal and state securities
laws that: (i) the Lender’s purchase of the Note will not constitute the offer
and sale of securities of the same or similar class as the units offered in the
Prospectus dated October 4, 2005 for the sale of 50,000,000 Class A units; and (ii) the
Offerings described in and made
pursuant to the Prospectus were based on a valid intrastate offering exempt from federal registration.

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2.02     Section 2.01 Conditions and Right of
First Refusal.

(a)       Period from March 17, 2006 through September 18, 2006

If
the conditions set forth in subsections 2.01(a), (b) and (c) (the “Section 2.01 Conditions”) are all satisfied
on or before September 18, 2006, then the Lender, or its designee, shall
thereafter be irrevocably obligated to purchase the Note, and the Company shall
irrevocably be obligated to issue the Note, for the purchase price therefor. To
trigger the Lender’s obligation to purchase
the Note, the Company shall provide written notice to the Lender
immediately upon satisfying the Section 2.01 Conditions (the “Notice of
Satisfaction”), which notice shall request the Lender to purchase
the Note. The closing for the purchase
and sale of the Note shall take place no less than three (3) business days from the date of the Lender’s
receipt of the Notice of  Satisfaction
on a date and at a time and place
mutually satisfactory to the Company and the Lender.

(b)       After
September 18, 2006

If
the Section 2.01 conditions are not all satisfied on or before September 18, 2006, then the Letter of Credit shall terminate
pursuant to its terms and the Lender shall not be legally obligated thereafter to purchase the Note. However,
thereafter, the Lender shall retain
the right and option to purchase the Note, on the terms and conditions set forth in this Agreement, in its sole discretion,
which right shall continue unless and until the Company: (i) no longer pursues
the business plan set forth in the Prospectus; and (ii) has refunded the unexpended balance of investor
money received by the Company pursuant
to the Prospectus (subsections (i) and (ii) of this Section 2.02(b) shall
hereafter be referred to as the “Termination Conditions”).

Accordingly,
if after September 18, 2006, the Section 2.01 Conditions are satisfied by the Company, the Company shall
provide a Notice of  Satisfaction
to the Lender as soon as practical
after the satisfaction of such conditions, and which Notice of Satisfaction shall request the Lender to purchase
the Note. The Lender shall provide written
notice to the Company of its decision concerning whether it will purchase the Note, within five (5) business days of the
receipt of the Notice of Satisfaction and the closing for the purchase and sale of the Note shall take place within
ten (10) business days of the receipt
by the Lender of the Notice of Satisfaction on a date and at a time and place mutually satisfactory to the Company and the
Lender, if the Lender elects to purchase
the Note; if the Lender elects not to purchase the Note, neither the Lender nor
the Company shall have any further
rights or obligations under this Agreement.

(c)       Right of First Refusal

Additionally, if the
Company: (i) fails to satisfy the
Section 2.01 Conditions; (ii) satisfies the Termination Conditions set forth in
Section 2.02(b); and (iii) attempts to finance the transaction though an alternate financing proposal, the
Lender shall have a

 3
 

Right of First of Refusal to match any bona fide, arms
length offer that the Company intends to accept, from a third party, providing
for financing (be it debt or equity) to replace the Note, in whole or part. In
that regard, the Company shall provide written notice to the Lender (“ROFR Notice”)  that: (iv) describes the terms of such offer for any
replacement financing as soon as practical after receiving such offer: (v)
encloses a copy of any writing evidencing such offer (e.g., a commitment letter or letter of
intent or draft form of agreement), to the extent the same exists: and (vi)
affirmatively states that the Company has the authority to accept such offer.
The Lender shall provide written notice to the Company of its decision
concerning whether to exercise its Right of Right of First Refusal within five
(5) business days of the receipt of the ROFR Notice; the closing of such
transaction shall take place within ten (10) business days of the receipt by
the Lender of the ROFR Notice, on a date and at a time and place mutually
satisfactory to the Company and the Lender. If the Lender does not exercise its
Right of First Refusal, the Company shall thereafter be entitled for the next
sixty (60) days to sell replacement financing on terms no more favorable to the
investor than the terms set forth in the ROFR Notice. The Lender’s Right of
First Refusal provided for in this paragraph shall terminate upon five (5)
business days of the Lender’s receipt of written notice from the Company that
the Termination Conditions have occurred.

2.03     Closing
Deliverables. At the Closing, the Parties shall deliver or cause to be
delivered the following:

(a)       the
Company shall deliver or cause to be delivered to the Lender:

(i)         an executed Note;

(ii)        a Secretary’s Certificate in
substantially the form attached hereto as Exhibit B;

(iii)       an Officer’s Certificate in substantially
the form attached hereto as Exhibit C:

(iv)      an executed mortgage(s), deed(s) of trust,
a security agreement substantially in the form attached as Exhibit D and other
security documents (the “Security Agreements”)  that secures the Company’s obligations
under the Note with all of the assets of the Company. The Lender hereby
acknowledges that the indebtedness under the Note will be subordinate to the
Senior Credit Facility and subject to the “Subordination Agreements” (defined
in Section 2.03(b)(v) below), and that the Company may grant purchase money
security interests for equipment as long as such security interests are in
compliance with the Senior Credit Facility. The Company hereby acknowledges
that the Lender’s security interest is a second position security interest,
subordinate only to the Senior Credit Facility;

(v)       an opinion of the legal counsel to the
Company addressed to the Lender and dated as of the Closing Date in
substantially the form of Exhibit E;

 4
 

(vi)      a schedule of all of the issued and
outstanding Units in the Company, including all classes; and

(vii)     a current balance sheet of the Company.

(b)       the
Lender shall deliver to the Company:

(i)         an amount equal to the Principal
Amount, paid by: (A) a bank certified or cashier’s check payable to the Company’s
order; or (B) wire transfer of immediately available funds; or (C) any
combination of the foregoing; the Company may draw down on the Letter of
Credit, if then in effect, only if the Lender defaults in its payment
obligations under this subsection 2.03(b)(i);

(ii)        an Officer’s Certificate in
substantially the form attached hereto as Exhibit F;

(iii)       the executed Security Agreements; and

(iv)      such reasonable and customary
subordination and/or intercreditor agreements (the “Subordination Agreements”),
if any, as may be required in connection with the Senior Credit Facility.

ARTICLE III 

REPRESENTATIONS AND
WARRANTIES OF THE COMPANY

To induce the Lender to
enter into this Agreement and to consummate the transactions contemplated
hereby, the Company hereby represents and warrants to the Lender, as of the
date hereof (unless, otherwise stated) and as of the Closing Date, the
following:

3.01       Organization and Good Standing. The
Company is a limited liability company duly organized, validly existing, and in
good standing under the laws of the State of South Dakota, The Company has
provided the Lender with: (i) a true and complete copy of the Company’s
Articles of Organization and other organizational and constituent documents and
instruments and all amendments thereto, certified by the Secretary of State of
South Dakota; (ii) a true and complete copy of the Regulations or Operating
Agreement of the Company, as amended (the “Operating Agreement”) presently in
effect, certified as true and correct by the Company’s Secretary; and (iii)
true and complete copies of certificates of existence and good standing for the
Company, certified by the Secretary of State of South Dakota.

3.02     Authority; Qualification. The
Company has all requisite limited liability company power and authority to own
its property, to conduct its business as designated in the Prospectus, and to
execute and deliver this Agreement and the Note and any instruments and
agreements contemplated herein or therein that are required to be executed and
delivered by the Company pursuant to its obligations hereunder and thereunder
(the Note and such other instruments and agreements (including the Security
Agreements). the “Other Transaction

 5
 

Documents”), and to perform its obligations hereunder
and thereunder. This Agreement has, and the Other Transaction Documents when
executed will have, been authorized and approved by the Company’s Board of
Managers (and no other action on the part of the Company, its Board of Managers
or members is or will be required to authorize such execution, delivery or
performance) and this Agreement has been, and the Other Transaction Documents,
upon their execution and delivery, will be, duly authorized, executed, and
delivered by the Company. The Company is duly qualified to do business as a
foreign corporation in good standing in all jurisdictions in which it is required
to be qualified to do business as the Company’s business is currently conducted
or proposed to be conducted. All limited liability company action on the part
of the Company’s managers and members necessary for: (i) the authorization,
execution and delivery of, and the performance of all obligations of the
Company under, this Agreement and the Other Transaction Documents; and (ii) on
and after the date set forth in Section 5.01(f) hereof, the authorization,
issuance, reservation for issuance and delivery of all of the membership
interest units of the Company (“Units”)  issuable upon the exercise, if any, of the
Purchase Rights by the Lender has been properly authorized and executed. This
Agreement represents, and the Other Transaction Documents, upon their execution
and delivery, will represent, the legal valid and binding obligations of the
Company, enforceable in accordance with their terms, except as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, and similar laws
affecting the enforcement of creditors’ rights generally and the application of
general principles of equity and judicial discretion.

3.03     No Violation. The Company is not in
violation or default of any provisions of its organizational documents as
amended, and is, to the Knowledge (defined in Section 3.05(c) below) of
Company, in compliance with all applicable statutes, laws, regulations, court
orders, judgments, decrees, writs, injunctions, and executive orders of any
Governmental Authorities (as defined below) having jurisdiction over its
business or properties. The Company has not received any notice of any
violation of a default under any such statute, law, regulation, order,
judgment, decree, injunction, or execution order. Neither the execution and
delivery by the Company of this Agreement or the Other Transaction Documents
nor the consummation by the Company of the transactions contemplated hereby and
thereby will (i) violate any provision of the Uniform Limited Liability Company
Act of South Dakota, the Articles of Organization of the Company, or the
Regulations of the Company or other organizational document or instrument of
the Company; (ii) violate, or be in conflict with, or constitute a material
default (or an event or condition that, with notice or lapse of time, or both,
would constitute a material default) under, or result in the termination of, or
accelerate the performance required by, or cause the acceleration of the
maturity of any liabilities of the Company, or result in the creation or
imposition of any security interest, lien, charge, or other encumbrance upon
any of the assets of the Company under, any note, bond, mortgage, indenture,
deed of trust, license, lease, contract, commitment, understanding,
arrangement, agreement, or restriction of any kind or character to which the
Company is a party or by which the Company may be bound or affected or to which
any of the Company’s assets are subject; or (iii) to the Knowledge of Company,
violate any statute, law, judgment, decree, order, writ, injunction, regulation,
or rule of any court or Governmental Authority. For purposes of this Agreement “Governmental Authority”  means any nation or government, any state,
regional, local, or other political subdivision thereof, and any entity or
official exercising executive, legislative, judicial (including courts),
regulatory, or administrative functions of or pertaining to government.

 6
 

3.04   Brokers. The Company has not employed
any broker, agent, or finder in connection with any transaction
contemplated by this Agreement for
which the Lender may be liable or
responsible to pay any fee, commission, expense or other amount.

3.05     Capitalization. The capitalization of the Company
consists of the following:

(a)       Units. As of the date
hereof, and which will be the same on the Closing Date, the Company has 38,250,000 Class A Units
issued and outstanding and on or before
the Closing Date, will have issued an additional $2,000,000 in convertible debt
to another lender (the “Other
Subordinated Lender”) which will be convertible into a class of units of the Company (in a number of units not
to exceed 2,000,000) to be determined (such determination to take into
account compliance with applicable securities laws), but which Units will have
capital account crediting, profit and loss sharing, and financial and governance rights and preferences equivalent to
and/or no greater than the Company’s Class A Units. The Company has 1,000,000
Class B Units issued and outstanding. At the Closing, the Company shall provide
a schedule of all of the issued and outstanding Units in the Company, including all classes and a current balance sheet
of the Company. As of the date set forth in Section 5.01(f) hereof, the Company
will have duly reserved: (i) an
adequate amount of Class C Units for issuance upon the Lender’s exercise of the
Purchase Rights; and (ii) an adequate
amount of Class A Units for issuance upon the Lender’s conversion of such Class C Units into Class A Units.

(b)       Options, Warrants, Etc.
Except for the Purchase Rights, the Right of First Refusal set forth in Section 2.02(c) hereof, other
rights granted to the Lender in this Agreement
and in the Note, and the conversion rights of the Other Subordinated Lender (all  of
the foregoing, the “3.05(b) Exceptions”),  there are no outstanding options, warrants, rights (including conversion or
preemptive rights) or agreements for the purchase or acquisition from the Company of any shares or class of its
equity securities (including the
Units) or any securities convertible into or ultimately exchangeable or exercisable
for any of the Company’s equity securities. Except for the 3.05(b) Exceptions, no equity securities of the Company
are subject to any preemptive rights, rights
of first refusal or other rights to purchase such equity securities (whether in
favor of the Company or any other Person), pursuant to any agreement or
commitment of, or binding on, the
Company. For the purposes of this Agreement. “Person”
shall have the meaning given in Section 3(a)(9) of the Securities
Exchange Act of 1934, as amended, as modified
and used in Sections 13(d)(3) and 14(d)(2) of such act.

(c)       Valid Issuance. The
outstanding equity securities of the Company are duly authorized and validly issued and outstanding, fully paid and
nonassessable, and have been approved by all requisite action of the Board of
Managers, the members and the managers
of the Company. The offer and sale by the Company of all equity
securities, convertible securities,
rights, warrants, or options of the Company was conducted in compliance with, and such offers and sales were
otherwise in compliance with, all applicable
federal and state securities laws, and to the Knowledge (as defined below) of the Company, no holder of any such securities has
a right of rescission or has made or

 7
 

threatened to make a claim
for rescission or damages with respect thereto. For  purposes  of this Agreement, a Party shall be deemed to
have “Knowledge”  of a particular fact or other matter as follows: (i) if
the Party is an individual, if  such
individual is actually aware of such fact or other matter or a person serving
in the same capacity as such individual would be expected to discover or
otherwise become aware, after due inquiry, of
such fact or other matter in the course of performing the duties of such
individual; or (ii)  if the Party is a corporation, limited liability
company, or other form of business entity,
if (A) any executive officers of such Party are actually aware of such fact or
other matter, or (B) any person or
persons serving in the same capacities as such executive officers would
be expected to discover or otherwise become aware, after due inquiry, of such
fact or other matter in the course of performing the official duties of such
offices.

3.06     Valid Issuance of Note and Purchase Rights.

(a)       The Units will be duly reserved
for issuance upon the Lender’s exercise of its
Purchase Rights, and when issued upon such purchase in accordance with this Agreement, will be, duly and validly issued, fully
paid and non-assessable and will be free and clear of  any lien, charge or other encumbrance and will not be
subject to any preemptive rights, rights of first refusal or similar
rights.

(b)       Based
in part on the representations made by the Lender in Article IV hereof, the offer and sale of the Note to the
Lender in accordance with this Agreement and the issuance of the
Purchase Rights are exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”),  and from all other provisions of applicable securities
laws of states of the United States.

3.07     Governmental
Consents. No consent, approval,
order or authorization of, or registration, qualification, designation,
declaration or filing with, any federal, state or local Governmental Authority is required on the part of
the Company in order to enable the Company to execute, deliver and perform its obligations under this Agreement or
the Other Transaction Documents and the transactions contemplated hereby
and thereby, except for such qualifications or filings under applicable
securities laws as may be required in connection with the transactions
contemplated by this Agreement.

3.08     Litigation. Except for the Petition for Writ of Certiorari
and Review of a Decision of the Turner County Board of Adjustment dated
March 14, 2006 filed by Great Plains Ethanol,
LLC against the Turner County Board of Adjustment, a copy of which has been provided to the Lender, there are no Proceedings
in progress, pending, or, to the Company’s Knowledge, threatened against or affecting the Company, the Company’s
assets, or the transactions
contemplated hereby in any court or before any arbitration panel of any kind or
before or by any Governmental Authority. For purposes of this Agreement, “Proceeding”  shall
mean any action, arbitration, audit, hearing,
investigation, litigation, or suit (whether civil, criminal,
administrative, judicial, or investigative, whether formal or informal, whether
public or private) commenced, brought,
conducted, or heard by or before, or otherwise involving any Governmental
Authority or arbitrator.

 8
 

3.09     Full
Disclosure. The Company has
provided the Lender with all the information regarding the Company that the Lender has requested for deciding whether
to purchase the Note. No
representation or warranty regarding the Company made in this Agreement and the
Exhibits hereto, or the documents to be delivered by the Company at the Closing
pursuant to Article II, contains or will contain any untrue statement of a
material fact or omits to state a material fact necessary to make the statements or facts contained herein not
misleading in light of the circumstances
under which they were made. Without limiting the generality of the foregoing, the Prospectus does not contain any untrue
statements of material fact and does not omit to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they were made, not materially
misleading.

3.10     Agreements with Fremar. The Company has disclosed all
material transactions and agreements between the Company and Fremar Farmers
Cooperative. Inc. (“Fremar”), or any of
Fremar’s officers, directors, employees, stockholders or affiliate companies.

ARTICLE IV

REPRESENTATIONS AND
WARRANTIES OF THE LENDER

To
induce the Company to enter into this Agreement and to consummate the
transactions contemplated hereby, the Lender hereby represents and warrants to
the Company, as of the date hereof and as of the Closing Date, the following:

4.01     Organization
and Good Standing. The Lender is
a corporation, or other lawful entity,
duly organized, validly existing, and in good standing under the laws of the
State of Ohio.

4.02     Authority. The Lender has all requisite corporate power
and authority to execute and deliver
this Agreement and the Note and to consummate the transactions contemplated hereby and thereby. This Agreement has been
approved by the Lender’s Board of Directors and has been duly authorized, executed, and delivered by the Lender. All
corporate action on the part of the
Lender’s directors and shareholders necessary for the authorization, execution,
delivery of, and the performance of all
obligations of the Lender under this Agreement and the Note has been taken or will be taken prior to the
Closing. This Agreement and the Note represent
the valid and binding obligations of the Lender, enforceable in accordance with
their terms, except as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, and similar laws affecting the enforcement of
creditors’ rights generally and the application of general principles of equity and judicial
discretion.

4.03     Brokers. The Lender has not employed any broker, agent, or
finder in connection with any
transaction contemplated by this Agreement for which the Company may be liable
or responsible to pay any fee,
commission, expense or other amount.

4.04     Representations
Regarding the Acquisition of the Note and the Purchase Rights.

(a)       Purchase Entirely for Own Account.
This Agreement is made with the Lender
in reliance upon the Lender’s representation to the Company, which by the

 9
 

Lender’s execution of this
Agreement the lender hereby confirms, that the Note to be received by
the Lender and the Purchase Rights (collectively, the “Offered Securities”)  will be acquired for investment for the
Lender’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof,
and that the Lender has no present intention of selling, granting any
participation in or otherwise distributing the same.

(b)       Sophistication; Accredited Lender Status. The Lender is a Person who either alone or with its purchaser
representative(s) has sufficient knowledge and experience in financial and business matters to be capable of evaluating
the merits and risks of an investment in the Company. The Lender is an “accredited
investor” within the meaning of Regulation D
promulgated under the Securities Act.

(c)       Speculative Investment. The
Lender understands the speculative nature and risks of investments
associated with the Company and confirms that it is able to bear the risk of the investment, and that there may not
be any public market for the Offered Securities received herein.

(d)       Transfer Restrictions. The
Lender is not under an obligation to register or seek an exemption under
any federal and/or state securities acts for any sale or transfer of the Offered Securities by the Lender, and the
Lender hereby acknowledges that the Offered Securities constitute
restricted securities as that term is defined in Rule 144 under the Securities Act and that the Offered Securities
may not be sold, transferred, assigned or hypothecated unless there is an
effective registration statement under the Securities Act covering the Offered Securities, the sale is
made in accordance with Rule 144 under the
Securities Act, or the Company receives an opinion of counsel of the Lender reasonably satisfactory to the Company, stating
that such sale, transfer, assignment or hypothecation is exempt from the registration and prospectus delivery
requirements of the Securities Act.

(e)       Disclosure of Information.
The Lender further represents that it has had the opportunity to ask
questions of the Company and receive answers from the Company, to the extent that the Company possessed such
information or could acquire it without unreasonable effort or expense, necessary to evaluate the merits and
risks of any investment in the
Company. Further, the Lender has been given an opportunity to question
the appropriate executive officers of the Company.

(f)        Legends. It is understood
that the certificates evidencing the Offered Securities will bear a mutually agreed upon legend, substantially in the
form set forth below:

THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “ACT”), OR UNDER THE
SECURITIES LAWS OF ANY OTHER JURISDICTIONS. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON
TRANSFERABILITY AND RESALE AND MAY
NOT BE TRANSFERRED OR RESOLD EXCEPT AS

 10
 

PERMITTED UNDER
THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE
REQUIRED TO BEAR THE FINANCIAL RISKS
OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE
SECURITIES MAY REQUIRE AN OPINION OF
COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN
COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

The legend set forth above shall
be removed by the Company from any certificate evidencing Offered Securities upon delivery to the Company of an opinion
by counsel, reasonably satisfactory to the Company, that a registration
statement under the Securities Act is at that time in effect with respect to
the legended security or that such security can be freely transferred in a
public sale without such a registration statement being in effect and that such transfer will not jeopardize the
exemption or exemptions from registration pursuant to which the Company issued
the Offered Securities.

ARTICLE
V

ADDITIONAL
AGREEMENTS

5.01     Purchase Rights.

(a)       Purchase Rights; Price: Reserve. Effective as of the date hereof, the Lender shall be granted
Purchase Rights, which may be exercised from time to time, and at any time, to purchase (in one or more
installments): (i) 20,000,000 Class C Units, at 90 cents per Unit, if the Lender elects to exercise
the Purchase Rights; or (ii) 21,176,470 Units at 85 cents per Unit if
the Lender agrees to purchase the Units at the request of the Company, but in all events the Purchase Rights total
$18,000,000. Each Class C Unit shall be convertible into one Class A Unit and
the Class C Units shall include the same membership voting rights and
financial rights, including distribution rights and rights in the profits,
losses and capital of the Company, as the Class A Units and/or Class B Units. The Company shall have duly reserved as of the date
set forth below in Section 5.01(f) hereof: (i) an adequate amount of Class
C Units for issuance upon the Lender’s exercise of the Purchase Rights; and (ii) an
adequate amount of Class A Units for issuance upon the Lender’s
conversion of such Class C Units into Class A Units.

(b)       Expiration. The Purchase
Rights shall expire seven (7) years from the earlier of: (i) the date on which a qualified general
contractor certifies the Ethanol Plant as
having commenced operation and met its nameplate capacity; or (ii) April 1,
2008.

(c)       Exercise of Purchase Rights and Purchase of Units. To exercise its Purchase Rights, the Lender shall provide at least 30 days prior written
notice (a “Purchase Notice”) to
the Company of its intent to purchase Units and the number of Units it intends to purchase. The aggregate
purchase price of the Units upon the initial

 11
 

exercise of the Purchase Rights
shall not be less than the total of the remaining principal and accrued and
unpaid interest on the Note as of the Effective Date (as defined below), but in
no event greater than $18,000,000. Subsequent to the Lender’s initial
exercise of its Purchase Rights, if
the Lender did not initially exercise its Purchase Rights in full, it may thereafter exercise such Purchase Rights in an
amount no less than that needed to reach the $18,000,000 cap. The
effective date of any of the Lender’s purchases of Units hereunder shall be the date that is specified by
the Lender in the Purchase Notice (the “Effective Date”).

The
purchase price for the Units shall be paid by the Lender by surrendering the Note to  the
Company in exchange for the Units to be purchased. If the total of the remaining principal and accrued and unpaid interest
on the Note as of the Effective Date is not sufficient to cover the
purchase price for the Units, the Lender shall pay the balance by: (A) a bank certified or cashier’s check payable
to the Company’s order; (B) wire transfer of immediately available
funds; or (C) any combination of the foregoing. Upon receipt of the purchase price for the Units, the Company shall issue and
shall deliver to the Lender, or
otherwise in accordance with the Lender’s written instruction: (i) a certificate
or certificates for the number of Units issuable pursuant to the Purchase Notice; and (ii) if applicable, the Company shall
deliver a new Note in an amount equal to the excess of the remaining
principal and accrued and unpaid interest on the Note as of the Effective Date over the purchase price for the
Units (the “Remainder”).  Any Remainder shall be repaid by the Company in monthly installments equal to
the same amount that would have been due and payable to the Lender each month
pursuant to the Note had no exercise
of the Purchase Rights occurred, until such Remainder is paid in full.

All
Units delivered upon exercise of the Purchase Rights shall upon delivery be duly
and validly issued and fully paid and nonassessable. The Purchase Rights shall
be deemed detachable and separately
conveyable by the Lender; provided however, that any conveyance of such Purchase Rights shall be made
in strict compliance with (a) the Company’s
Operating Agreement then in effect, and (b) all applicable securities laws.

Notwithstanding any
provision to the contrary, the Lender shall not be entitled to exercise its Purchase Rights prior to November 1,
2006, provided, however, the Lender may
exercise the Purchase Rights prior to November 1, 2006 to purchase 20,000,000 Class C Units, at 90 cents per Unit, if the
Company intends to: (i) be a party to a merger, business combination or consolidation, or any sale of all or
substantially all of  the Company’s assets or the sale of any assets outside
of the ordinary course of business; or (ii)
liquidate, dissolve or recapitalize (all of
the foregoing being “Fundamental Changes”).  The
Company shall provide 10 business days written notice to the Lender if it intends to enter into an agreement or take any
other action that will result in a Fundamental
Change to the Company; and the Lender may exercise its Purchase Rights in no less than one (1) day written notice.

(d)     Non-Dilution. Notwithstanding any
provision to the contrary, (i) upon exercise of the Lender’s Purchase
Rights in full, the Units to be issued to the Lender shall

 12
 

constitute not less than a 32.65% equity interest in
the Company on a fully diluted basis (or a 33.92% equity interest in the
Company pursuant to Section 5.01(a)(ii) hereof); and (ii) upon any partial exercise of the Lender’s Purchase Rights,
the Units to be issued to the Lender shall
constitute a proportional percentage of such 32.65% equity interest in the Company.

(e)       Right to Participate in Future Offerings. After the Lender exercises its Purchase Rights in whole or in part, in the event
that the Company commences an offering
to sell Units, the Lender shall have the right, within 30 days of written
notice from the Company, on the most favorable terms given to any other
investor, including Fremar and Steve
Domm, to purchase 32.65% (or such other proportional percentage thereto
that reflects Lender’s then current total unit ownership in the Company) of
such Units offered.

(f)        The Company, through its Board of
Managers, agrees to: (i) execute a designation certificate pursuant to the
Operating Agreement; and/or (ii) take all
actions required, in the opinion of the
counsel to the Company, to cause the Company to make any required
amendment to the Operating Agreement of the Company or any other steps
necessary to effectuate the provisions of this Article V on or before April 14,
2006.

5.02     Restrictions on Company
Distributions. Until the earlier to occur of: (i) such time as the Lender has exercised its Purchase Rights in
full; or (ii) the Note is repaid in full, the Company shall not declare, or pay, any dividends
or other distributions to its members: (a) in excess of the Company’s “retained earnings”, from time to time, as
determined pursuant to generally
accepted accounting principles, consistently applied, by the certified public accountants then servicing the Company; and (b)
unless the Company is then current, and not otherwise in default, pursuant to its debt obligations, and covenants,
under the Senior Credit Facility
and/or the Note.

5.03     Board
Representation, Right to Consent, Tag-Along Rights and Non-Competitive
Activities.

The Company additionally
agrees to the following:

(a)       Upon
execution of this Agreement, the Company shall appoint one designee selected
by the Lender to the Company’s Board of Managers;

(b)       Upon the Lender’s exercise of its
Purchase Rights, the Lender shall have the right to appoint designees to the Company’s Board of Managers in an amount
proportional to the Lender’s ownership percentage of the aggregate
amount, including all classes, of Units, rounded up to the next whole number of board seats (e.g., if there are 7 seats on the Company’s Board of Managers
and the Lender owns more than 28.57% but less than 42.86% of all Units, the
Lender would be entitled to designate three (3) board
seats). Notwithstanding the foregoing, for any vote regarding the
removal of Fremar as Manager of the Company by the Board of Managers or any other vote of the Board of Managers pursuant
to the Operating Agreement whereby Fremar is precluded from casting a vote, if
the Lender has three (3) or more designees on the Board of

 13
 

Managers, the Lenders’ designees,
in total, shall cast one (1)  less
vote than they would normally be
entitled to cast under any other vote of the Board of Managers (i.e.,  if
the Lender has three (3) designees on the Board, they may cast two (2)
votes, if the Lender has four (4) designees on the Board, they may cast three (3) votes, etc.). If
the Lender has two or less designees on the Board, the Lender may at all times cast their full
complement of votes;

(c)       Prior
to November 1, 2006, and if the Lender has not otherwise exercised its Purchase Rights pursuant to the last paragraph of
Section 5.01(c) hereof (in which case the Lender shall be entitled to
exercise its rights to vote its Units), the Company shall not, without the
Lender’s written consent, which consent shall not be unreasonably withheld: (i) be a party to a merger, business combination or consolidation, or any sale of  all or substantially all of the Company’s assets or the sale of any assets outside
of the ordinary course of business; (ii) liquidate, dissolve or recapitalize; and (iii) engage in any business
other than the production of ethanol
and bio-refining;

(d)       The Lender has been granted tag-along
rights, i.e., the Lender has the
right to participate prorata in any sale of Units (whether made in one
transaction or a series of related transactions): (i) by a majority in interest
of the unitholders of the Company; or (ii) which results in a majority of the
Units being owned by one unitholder
or an affiliated group. The specific terms of the tag-along rights, as
to be adopted by the Board of Managers of the Company, shall be subject to the Lender’s consent, such consent
not to be unreasonably withheld.

(e)       For purposes of Sections 2.9 and 5.3(e)
of the Operating Agreement, no activities of
the Lender shall be deemed by the Board of Managers of the Company to be
competitive to the Company unless such activity relates to an investment by the
Lender in an ethanol facility that is
located within a 50 mile radius of the Company’s ethanol facility in Marion,
South Dakota.

5.04     Right of First Refusal to Participate in
Future Company Projects. From and after the date hereof, subject to the terms and conditions of this Section
5.04, the Company hereby grants to the Lender a right of first refusal
to participate in, up to an ownership percentage of 32.65% (or up to a 33.92% ownership percentage in the Company pursuant
to Section 5.01(a)(ii) hereof), any subsequent ethanol and/or bio-diesel
fuel projects developed by the Company (each, a
“Development”),  be it through the issuance of debt or
equity securities or otherwise (a “Subsequent
Financing”),  The
Company shall promptly notify the Lender of a Subsequent Financing in writing
(a “Financing Notice”),  such Financing Notice including a term
sheet (a “Term Sheet”)  setting
forth the Company’s proposal for the terms, conditions and pricing of such
Subsequent Financing and being no less favorable as any terms offered to any
principals of the Company, including Fremar or Steve Domm. The Lender shall
have 30 days from its receipt of  the
Financing Notice to exercise its right to participate in the Subsequent
Financing. If the Lender does not exercise
its right to participate, the Company shall thereafter be entitled for the next sixty (60) days to engage in a Subsequent
Financing with any other Person on terms no more favorable to the Person than the terms set forth in the Financing
Notice. If the Company does not close
on a Subsequent Financing with another Person within such 60-day period, the
Company shall repeat the procedures set forth in this Section 5.04.

 14
 

5.05     Procurement
of Financing. At the request of
the Company, the Lender agrees to use best efforts to aid in the procurement of
debt or equity financing for the Company. If the Lender is successful in procuring such financing for the Company, the
Lender shall be entitled to a fee for
such services in an amount mutually agreeable to the parties upon the closing
of such financing.

5.06     Transactions
with Fremar. The Company agrees
that any agreements entered into by
the Company with Fremar subsequent to this Agreement shall be arms length and
at fair market value as determined by the Board of Managers from time to time.

ARTICLE VI 

CONDITIONS TO THE PARTIES’ OBLIGATIONS AT CLOSING

6.01         Conditions to Obligations of the Company. The obligation of the Company to consummate the Closing is subject to the
satisfaction of the following conditions on or before the Closing Date unless waived in writing by the
Company:

(a)       Representations and Warranties. The
representations and warranties of the Lender
contained in Article IV shall be true and complete as of the Closing Date.

(b)       Deliverables. The Company shall have received the deliverables
from the Lender in accordance with the
provisions of Section 2.03(b).

6.02     Conditions to Obligations of the
Lender. The obligation of the Lender to consummate
the Closing is subject to the satisfaction of the following conditions on or
before the Closing Date unless waived
in writing by the Lender:

(a)       Representations
and Warranties. The
representations and warranties of the Company
contained in Article III shall be true and complete as of the Closing Date and the
Company shall have performed and complied with all agreements, obligations and conditions, including those set forth in Article V,
required by this Agreement to be performed
or complied with by the Company at or prior to the Closing.

(b)       Deliverables. The Lender shall have received the deliverables
from the Company in accordance with the provisions of Section 2.03(a).

(c)       No Material Adverse Effect. During the period
beginning on the Execution Date and ending
on the Closing Date, no event or set of facts or circumstances has arisen which has resulted in, or with the passage of time
could result in, in the reasonable opinion of the Lender, a Material Adverse
Effect. For purposes of this Agreement, “Material Adverse Effect”  shall mean any effects, individually or in
the aggregate, that would be
materially adverse to the Company’s financial condition, assets, liabilities, business, property or prospects.

 15
 

(d)       Agreement
with Promoting Parties. The execution of an agreement by March 31, 2006,
in a form substantially as set forth in Exhibit G, by and among the
Lender. Fremar and Steve Domm, in a form
satisfactory to the Parties, Fremar and Steve Domm, that the Lender shall be granted a Right of First Refusal to
participate in any ethanol and/or bio-diesel fuel projects directly or
indirectly founded, organized or sponsored by Fremar or Steve Domm, or any significant, non-passive (greater than 5% ownership)
investment by Frermar or Steve Domm in such projects; provided, however,
for the avoidance of doubt, any passive
investment (ownership of 5% or less) by Fremar or Steve Domm in any ethanol or bio-diesel projects shall not trigger
the Right of First Refusal set forth in this Section 6.02(d); provided, further, however, that Fremar and Steve Domm,
as applicable, shall be released from the restrictions set forth in such
agreement contemplated by this Section 6.02(d) if Company at any time (i)
removes Fremar as manager for cause and Fremar
no longer owns any units in Company and has no seats on the Board of Managers;
or (ii) removes Steve Domm as CEO
for cause and Steve Domm no longer owns any units in
Company and is not a member of the Board of Managers.

(e)       Registrations Rights
Agreement. The Company and the Lender shall have entered into a customary registration rights agreement, in
form and substance satisfactory to the Lender, at or prior to the Closing.

(f)        Operating
Agreement and Board of Manager Action. All of the amendments that may be
required to be made to the Company’s Operating Agreement or any action required
by the Board of Managers pursuant to this Agreement has been properly authorized
and executed and performed in accordance with this Agreement.

ARTICLE VII

TERMINATION

7.01.    Termination.
This Agreement may be terminated at any time prior to the Closing:

(a)       By the unanimous written consent of the Parties hereto;

(b)       By
the Lender if the Company shall fail to comply with its covenants and agreements
contained herein or if any representation or warranty made herein by the
Company shall be untrue or incorrect,
provided that this Agreement may only be terminated pursuant to this Section 7.01(b) if the Lender gives
written notice of such default to the Company and such default remains uncured for a further period of fifteen (15) days after
the giving of notice to cure such default;

(c)       By the Company if the Lender shall
fail to comply with its agreements contained herein or if any representation or
warranty made herein by the Lender shall be untrue, provided that this Agreement may only be terminated
pursuant to this Section 7.01(c) if the Company gives written notice of
such default to the Lender and such default remains uncured for a further period of fifteen (15) days after the giving of
notice to cure such default; and

 16
 

(d)       By either the Company or the Lender if
any permanent injunction or other order of a court or other Governmental Authority of competent jurisdiction
preventing the consummation of the transactions contemplated by this
Agreement shall have become final and non-appealable.

7.02     Effect of Termination. In  the event of termination of this
Agreement by either the Company or the Lender as provided in Section
7.01 of this Agreement, this Agreement shall forthwith
become void and there shall be no liability or obligation on the part of any
party hereto, with the exception of the obligation by the Company to reimburse
the Lender for any bank fees incurred in connection with the Letter of
Credit as set forth in Section l.02 of this Agreement. For purposes of this Agreement, “Termination Date’’ shall mean
the effective date of the termination
of this Agreement pursuant to Section 7.01 of this Agreement.

ARTICLE VIII

MISCELLANEOUS

8.01     Reformation
and Severability. If any provision
of this Agreement is held to be
illegal, invalid or unenforceable under present or future laws effective during
the term hereof: (a) in lieu of such illegal, invalid, or unenforceable
provision, there shall be added automatically as a part of this
Agreement a provision as similar in terms to such illegal, invalid, or
unenforceable provision as may be possible and be legal, valid, and
enforceable; and (b) the legality, validity,
and enforceability of the remaining provisions hereof shall not in any way be
affected or impaired thereby.

8.02     Further
Assurances. Each Party shall, from
time to time after the Closing Date, at the request of any other Party
and without further consideration, execute and deliver such other instruments of conveyance, assignments, transfer,
and assumption, and take such other actions, as such other Party may reasonably request to more effectively
consummate the transactions contemplated
by this Agreement and the Note.

8.03     Notices. Any notice or other communication required or
permitted to be given hereunder shall
be in writing and shall be sent by first class U.S. mail (certified mail –
return receipt requested), or by
facsimile transmission (if facsimile transmission is also sent by regular U.S. mail the same day), or delivered by hand or by
overnight or similar delivery service, fees prepaid, to the Party to
whom it is to be given at the address of such Party set forth below or to such other address for notice as such Party shall
provide in accordance with the terms of this Section 8.03. Except as otherwise specifically provided in this
Agreement, notice so given shall, in
the case of notice given by certified mail (or by such comparable method) be
deemed to be given and received three (3) business days after the time
of certification thereof (or comparable act), in the case of notice so given by
overnight delivery service, on the date of actual delivery, and, in the case of
notice so given by facsimile transmission or personal delivery, on the date of actual transmission or, as the case may be,
personal delivery.

 17
 

 

	
  If to the Company:

  	
  Millennium Ethanol, LLC

  
	
   

  	
  P.O. Box 357

  
	
   

  	
  Marion, SD 57043

  
	
   

  	
   

  
	
  With copies to:

  	
  Kevin R. Prohaska

  
	
   

  	
  Lindquist &  Vennum P. L.L..P.

  
	
   

  	
  4200 IDS Center

  
	
   

  	
  80 South Eighth Street

  
	
   

  	
  Minneapolis, MN 55402

  
	
   

  	
  Phone: (612) 371-2404

  
	
   

  	
  Fax: (612) 371-3207

  
	
   

  	
   

  
	
  If to the Lender:

  	
  Rex Radio and Television, Inc.

  
	
   

  	
  Attn: Zafar Rizvi, Vice-President

  
	
   

  	
  2875 Needmore Road

  
	
   

  	
  Dayton, Ohio 45414

  
	
   

  	
  Fax: (937) 276-8643

  
	
   

  	
  Email: zrizvi@rexstores.com

  
	
   

  	
   

  
	
  With copies to:

  	
  Chernesky, Heyman &  Kress, P.L.L.

  
	
   

  	
  Attn: Edward M. Kress, Esq.

  
	
   

  	
  1100 Courthouse Plaza SW

  
	
   

  	
  Dayton, OH 45402

  
	
   

  	
  Fax: (937) 449-2821

  
	
   

  	
  Email: emk@chklaw.com

  

 

8.04   Headings. The headings of sections
contained in this Agreement are for convenience only and shall not be
deemed to control or affect the meaning or construction of any provision of
this Agreement.

8.05     Waiver. The failure of any Party to insist,
in any one or more instances, upon performance
of any of the terms, covenants, or conditions of this Agreement shall not be construed
as a waiver or a relinquishment of any right or claim granted or arising
hereunder or of the future performance of any such term, covenant, or
condition, and such failure shall in no way affect
the validity of this Agreement or the rights and obligations of the Parties. No
waiver of any provision or condition of this Agreement shall be valid
unless executed in writing and signed by the
Party to be bound thereby, and then only to the extent specified in such
waiver. No waiver of any provision or
condition of this Agreement shall be construed as a waiver of any other
provision or condition of  this
Agreement, and no present waiver of any provision or condition of this Agreement shall be construed as
a future waiver of such provision or condition.

8.06   GOVERNING
LAW; VENUE. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF OHIO WITHOUT GIVING EFFECT TO
THE CONFLICT OF LAWS RULES OR CHOICE
OF LAWS RULES THEREOF OR OF ANY STATE. VENUE FOR ANY ACTION ARISING OUT
OF THIS AGREEMENT SHALL RESIDE

 18
 

EXCLUSIVELY IN THE COUNTY IN WHICH
THE RESPONDENT’S PRINCIPAL OFFICES ARE
LOCATED.

8.07     Court
Costs and Attorneys’ Fees. If any
action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the
provisions of this Agreement, the
prevailing party shall be entitled to recover costs of court and reasonable
attorneys’ fees from the other party
or parties to such action, which fees may be set by the court in the trial of
such action or may be enforced in a separate action brought for that purpose,
and which fees shall be in addition to
any other relief that may be awarded.

8.08     Assignability
and Binding Effect. This Agreement
shall inure to the benefit of and be
binding upon the Parties and their respective successors, heirs, and permitted
assigns. This Agreement and the rights and obligations hereunder shall not be
assignable without the express written consent of all Parties; provided,
however: (i) the Lender may assign this Agreement
to any entity controlled by an affiliate of the Lender or the Lender’s parent
holding company, Rex Stores
Corporation, a Delaware corporation; and (ii) the Purchase Rights shall
be deemed detachable and separately
conveyable by the Lender; provided however, that any conveyance of such Purchase Rights shall be made
in strict compliance with (a) the Company’s Operating Agreement then in effect, and (b) all
applicable securities laws.

8.09     Expenses,
Taxes, Etc. Except as otherwise
provided herein, the Company shall be solely
responsible for all fees, taxes, and expenses incurred by it in connection with
the transactions contemplated by this
Agreement.

8.10     Third
Parties. Nothing herein expressed
or implied is intended or shall be construed
to confer upon or give to any Person other than the Parties and their
successors, heirs or permitted
assigns, any rights or remedies under or by reason of this Agreement.

8.11   Number
and Gender of Words. When the context so requires in this Agreement, words of gender shall include either or both
genders and the singular number shall include the  plural.

8.12     Entire
Agreement. This Agreement together
with the Exhibits attached hereto, shall
constitute the entire agreement between the Parties with respect to the
transactions contemplated hereby and
shall supersede all prior or contemporaneous negotiations,
understandings and agreements with respect thereto. There are no
representations, agreements, arrangements,
or understandings, oral or written, between or among the Parties relating to
the subject matter of this
Agreement that are not fully expressed herein.

8.13     Survival
of Representations and Warranties.
All representations, warranties, covenants,
and obligations of the Parties shall survive the Closing.

8.14     Multiple
Counterparts. This Agreement may
be executed in multiple counterparts,
including by facsimile signature, each of which shall be deemed to be an
original but all of which together
shall constitute one and the same instrument.

 19
 

8.15     Amendment. This Agreement may not be
modified, amended, or supplemented except
by an agreement in writing signed by all of the Parties.

8.16   Indemnification. Each Party hereby indemnifies, defends and holds
harmless the other Party from and
against all losses, claims, damages, liabilities, costs and
expenses (including reasonable fees
and expenses of  counsel) imposed
upon or incurred by such other Party,
directly or indirectly, by reason of, on account of or arising or resulting
from: (i) a breach of
any representation or warranty of the indemnifying Party contained in or made
pursuant to this Agreement or the Other Transaction Documents; or (ii)
any failure by the indemnifying Party to perform or comply with any of the covenants or agreements set forth in
this Agreement or any of the Other Transaction Documents to be performed or
complied with by the indemnifying Party.

[The remainder of this page is intentionally left blank.]

 20
 

IN WITNESS WHEREOF, the Parties have caused this Agreement
to be executed as of the date first above written.

	
   

  	
   

  	
  THE COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MILLENNIUM ETHANOL, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Steve Domm, CEO

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Steve
  Domm

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Executive Officer

  

 

	
   

  	
   

  	
  THE LENDER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  REX RADIO AND TELEVISION, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Zafar Rizvi

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Zafar
  Rizvi

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 21

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