Document:

Exhibit 10.7

 

AMENDED AND RESTATED

CORN SUPPLY AGREEMENT

 

THIS AMENDED AND RESTATED CORN
SUPPLY AGREEMENT, is made and entered into effective as of September 1,
2009 by and between GOLDEN GROWERS COOPERATIVE,
a Minnesota cooperative association (“the
Cooperative”), and CARGILL, INCORPORATED
(“Cargill”).

 

WHEREAS, the Cooperative
has completed a reorganization by which it has changed its domicile from North
Dakota to Minnesota, and in connection therewith has converted its operation to
be governed by Minnesota Statutes Chapter 308B (the “Conversion”);

 

WHEREAS, the Cooperative
continues to own a 49% interest in ProGold Limited Liability Company, a
Minnesota limited liability company (“ProGold”);

 

WHEREAS, ProGold has leased
its corn wet milling facility located in Wahpeton, North Dakota (the “Facility”)
to Cargill by lease agreement dated effective January 1, 2008 (the “Lease
Agreement”);

 

WHEREAS, Cargill desires to
have access to and receive an adequate supply of corn at the Facility;

 

WHEREAS, the Cooperative
desires to facilitate the lease of the Facility to Cargill by facilitating the
supply of corn to Cargill at the Facility pursuant to the terms and conditions
of this Agreement;

 

WHEREAS, there are currently
15,458,987 of the Cooperative’s units outstanding and held by the Cooperative’s
members;

 

WHEREAS, the Cooperative
intends to meet its delivery obligations hereunder through delivery of corn by
its member producers, or directly by the Cooperative to the extent of the
delivery obligations of any member producer who fails to fulfill their
obligation to the Cooperative to deliver corn; and

 

WHEREAS, in connection with
the Conversion, the parties desire to amend and restate the Corn Supply
Agreement dated January 1, 2008 (the “2008 Corn Supply Agreement”), as
provided herein.

 

NOW, THEREFORE, in consideration
of the foregoing and the mutual terms and conditions, Cargill and the
Cooperative agree as follows:

 

1.                                      COMMITMENT
TO SELL AND DELIVER CORN.  The
Cooperative hereby agrees to sell, and Cargill agrees to purchase, the
following quantities of corn during the term of this Agreement, which corn will
either be delivered on behalf of the Cooperative by its members or their
agents, or by the Cooperative or its agents, to the extent of the delivery
obligations of any member who fails to fulfill its obligation to the
Cooperative to deliver corn:

 

 

(a)                                  5,152,996 bushels of corn for the period of September 1, 2009 through December 31,
2009 (the “Transition Period”); and

 

(b)                                  One bushel of corn annually for each outstanding unit of the Cooperative held
by the Cooperative’s members at the end of such period, for each 12-month
period beginning on January 1, 2010 and ending on December 31, 2017
(8 annual delivery periods).

 

If this Agreement is extended
beyond its initial term, then the quantity of corn that the Cooperative shall
sell and deliver to Cargill and Cargill shall purchase under this Agreement
during such extended term shall be determined pro rata based on an annual
obligation of one bushel of corn for each unit of
the Cooperative held by the Cooperative’s members at the end of such period.

 

2.                                      DELIVERY OF
CORN.  The Cooperative shall cause to be
delivered by its members, or deliver on their behalf, the corn committed to
Cargill under Section l as follows:

 

(a)                                  Transition
Period Deliveries.  The corn to be
delivered during the Transition Period shall be delivered by the Cooperative on
behalf of its members.  The Cooperative
hereby appoints Cargill as the Cooperative’s agent, and Cargill hereby accepts
such appointment, to purchase and arrange for delivery of said corn on behalf
of the Cooperative.  The cost incurred by
Cargill to purchase said corn shall be offset against the payment to be made by
Cargill to the Cooperative for the corn pursuant to Section 4 hereof, such
that no payment shall be due by either party. 
The parties have mutually agreed that no fee will be charged by Cargill
for services related to procuring corn during the Transition Period.

 

(b)                                  Direct
Deliveries by Member Producers of the Cooperative.  The amount of corn committed to Cargill under
Section l(b) shall be delivered to Cargill at the Facility by members
of the Cooperative or their agents, in fulfillment of such member’s delivery
obligation to the Cooperative, whether such obligation is fulfilled by the
member through “Method A” or through “Method B” described in the Grain Services
Agreement between Cargill and the Cooperative of even date herewith (“Grain
Services Agreement”).

 

(c)                                  Delivery
Timing and Procedures.            The Cooperative will deliver the corn committed to
Cargill under Section 1 of this Agreement during the delivery period
indicated without further notice. 
Delivery of all corn committed to Cargill under this Agreement shall be
made annually.  Deliveries of the
quantities of corn may occur at any time during the year. Except as otherwise
provided for herein, the Cooperative shall be deemed to have delivered the corn
committed to Cargill under this Agreement upon the delivery of corn by members
of the Cooperative or their agents, at the Facility (or at another location
mutually agreed upon by Cargill and the member or agent) in fulfillment of such
member’s delivery obligation to the Cooperative, whether such obligation is
fulfilled by Method A or Method B, or delivery made by the Cooperative or its
agents, to the extent of the delivery obligations of any member who fails to
fulfill its delivery obligation.  Cargill
shall provide the Cooperative weekly reports of all corn credited against the Cooperative’s
delivery obligations under this Agreement. 
All costs and risk of loss prior to delivery of the corn to Cargill
shall not be the responsibility of Cargill, unless otherwise agreed to by
Cargill and the Cooperative’s member.

 

2

 

3.                                      ACCEPTANCE
OF CORN; PRODUCT QUALITY STANDARDS. 
The quality of corn delivered shall be determined at the time and place
of delivery.  Cargill’s weights and
grades shall govern all deliveries under this Agreement.  All corn delivered by the Cooperative, or its
members, to Cargill shall be (a) certified to be of U.S. origin, of
merchantable quality, unadulterated, and unrestricted from movement in
interstate commerce within the meaning of the federal Food, Drug and Cosmetics
Act, Environmental Protection Agency tolerances, the U.S. Grain Standards Act
and applicable state law, and (b) shall be of such grade, shall meet such
specifications, and shall be subject to such allowances, deductions and
premiums, as may from time to time be reasonably determined by Cargill. Corn of
substandard quality, as reasonably determined by Cargill, shall be either (a) rejected
and returned to the Cooperative, with all costs relating to the rejection and
return charged to the Cooperative; or (b) accepted with Cargill’s scale
discounts and allowances made and charged against the Cooperative because of
the inferior grade, quality or condition at the time of delivery.  Cargill may credit the Cooperative for
certain premiums to be paid on the basis of quality standards which may from time
to time be reasonably established by Cargill. 
The rejection of corn tendered for delivery under this Agreement shall
not release the Cooperative from the obligation to deliver the quantity of corn
required under this Agreement.  Cargill
agrees to use customary and accepted grading standards consistent with its
requirements for corn used in its wet milling process on corn delivered by the
Cooperative.  The Cooperative agrees to
observe any rules and regulations and to accept the grading reasonably
established by Cargill.  The Cooperative
agrees that the risk of loss for the corn shall remain with the Cooperative
until the corn is delivered to and accepted by Cargill pursuant to this
Agreement.  Cargill shall be deemed to
have accepted the corn delivered hereunder upon its unload at Cargill’s
receiving site.

 

4.                                      PURCHASE
TERMS AND PAYMENT.

 

(a)                                  Cargill
Payment.

 

(1)                                  The price per bushel
of all corn delivered to Cargill under this
Agreement through Method A shall be the contract price agreed to between
a member and Cargill, or in the absence of such a contract, the market price
per bushel at the delivery location on the day on which the corn is delivered
to and accepted by Cargill, less applicable discounts and inspection fees.

 

(2)                                  The price per bushel
of all corn delivered to Cargill by the Cooperative under Method B shall be
equal to the price per bushel paid by Cargill to acquire said corn as the
Cooperative’s agent as set forth in the Grain Services Agreement.

 

(3)                                  On or within one (1) business day following Cooperative issuing checks
to Growers for a Method A delivery, but in no event later than seven (7) days
following delivery, or as soon thereafter if prevented from doing so by
equipment failure or an event of Force Majeure, Cargill shall wire transfer
100% of the purchase price for all corn delivered to Cargill under Method A to
a bank account designated from time to time by the Cooperative.  The purchase price for Method B corn shall be
offset against the payment to be 

 

3

 

made by the Cooperative to Cargill for the cost of
Cargill purchasing said corn as the agent for the Cooperative under the Grain
Services Agreement, such that no payment shall be due by either party with
respect to the Method B corn.

 

(b)                                  Other Terms.  The terms and conditions of Cargill’s
standard corn purchase contract then in effect and which are consistent with
industry standards and practices shall govern all purchases of corn by Cargill
hereunder, except those that are inconsistent with the express provisions of
this Agreement.

 

5.                                      TERM AND
TERMINATION.

 

(a)                                  Term.  The initial term of this Agreement shall
commence on the date hereof and shall continue through December 31, 2017
(the “Initial Term”), subject to the termination provision below.  At the end of the Initial Term, this
Agreement shall terminate without further notice, unless the term of the Lease
Agreement is renewed or extended, in which case the term of this Agreement shall be renewed or extended for the same period of time.

 

(b)                                  Termination.  If the term of the Lease Agreement is
terminated for any reason during the Initial Term of this Agreement or any
renewal term thereof, this Agreement shall automatically terminate, without
notice.  The Cooperative may terminate
this Agreement, for any reasons, upon 90 days written notice to Cargill.

 

(c)                                  Effect of
Termination.  Upon termination
of this Agreement, all obligations of the Cooperative to sell and deliver corn
to Cargill shall cease, regardless of whether the Cooperative has delivered a
pro rata quantity of the corn committed for the period, up to the termination
date.  Provided, however, that the rights
and obligations of the parties with respect to corn delivered to Cargill by the
Cooperative prior to such termination date shall continue and be unaffected by
the termination.

 

6.                                      FORCE MAJEURE.

 

In case of fire, explosions,
interruption of power, strikes or other labor disturbances, lack of
transportation facilities, shortage of labor or supplies, floods, action of the
elements, riot, interference of civil or military authorities, enactment of
legislation or any unavoidable casualty or cause beyond the control of Cargill
affecting the conduct of Cargill’s business at the Facility to the extent of
preventing or unreasonably restricting the receiving, handling, production,
marketing, or other operations at the Facility, Cargill shall be excused from
performance during the period that Cargill’s business or operations are so
affected. Cargill in its judgment may, during such period, accept such portion
of corn as Cargill has informed the Cooperative it can economically
handle.  Cargill shall give written
notice to the Cooperative of its inability to perform in the specific cause or causes for the nonperformance.  In
any event, Cargill shall pay for all corn it accepts pursuant to this
Agreement.

 

4

 

7.                                      MISCELLANEOUS
PROVISIONS.

 

(a)                                  Assignment.  Neither The Cooperative nor Cargill may
assign this Agreement without the prior written consent of the other party.

 

(b)                                  Waiver of
Breach.  No waiver of a breach of any of the
agreements or provisions contained in this Agreement shall be construed to be a
waiver of any subsequent breach of the same or of any other provision of this
Agreement.

 

(c)                                  Notices.  Whenever notice is required by the terms
hereof, it shall be given in writing by facsimile,
delivery or by certified or registered mail addressed to the other party at
address noted in the caption of this Agreement or such other address as a party
shall designate by appropriate notice. 
If notice is given by mail, it shall be effective five (5) days
after mailing.

 

(d)                                  Construction
of Terms of Agreement; Modification. 
The language in all parts of this Agreement shall be constructed as a
whole according to its fair meaning and not strictly for or against any party
hereto.  Headings in this Agreement are
for convenience only and are not construed as a part of this Agreement or in
any defining, limiting or amplifying the provisions hereof. This Agreement
contains the entire agreement, and supersedes and replaces any prior agreements
(either written or oral), between the parties with respect to the subject
matter hereof including, but not limited to, the 2008 Corn Supply Agreement.  This Agreement shall not be modified in any
manner except by an instrument in writing executed by the parties hereto.  In the event any term, covenant or condition
herein contained is held to be invalid or void by any court of competent
jurisdiction, the invalidity of any such term, covenant or condition shall in
no way affect any other term, covenant or condition herein contained.

 

(e)                                  Successors
and Assigns.  Subject to the
other provision of this Agreement, all of the terms, covenants and conditions
of this Agreement shall inure to the benefit of and shall bind the parties
hereto and their permitted successors and assigns.

 

(f)                                    Dispute
Resolution.  The parties agree
that the sole remedy for resolution of all disagreements or disputes between
the parties arising under this Agreement shall be arbitration proceedings under
NGFA Arbitration Rules.  The decision and
award determined by such arbitration shall be final and binding upon both
parties.

 

IN WITNESS
WHEREOF, Cargill and the Cooperative have executed this Agreement effective
the day and year first above written.

 

	
  GOLDEN GROWERS COOPERATIVE

  	
   

  	
  CARGILL, INCORPORATED

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Mark Dillon

  	
   

  	
   

  	
  /s/ Richard A. Geurts

  
	
  By

  	
  Mark Dillon

  	
   

  	
  By

  	
  Richard A. Geurts

  
	
  Its

  	
  Executive Vice President

  	
   

  	
  Its

  	
  Assistant Vice President

  

 

5Exhibit
4.2

 

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS OF CERTAIN STATES AND MAY NOT
BE SOLD, TRANSFERRED, ASSIGNED, OFFERED, PLEDGED OR OTHERWISE DISTRIBUTED FOR VALUE
UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT COVERING SUCH SECURITIES.

 

WARRANT

TO PURCHASE

SHARES OF COMMON STOCK

OF

ANTE4, INC.

 

	
  shares of Common Stock

  	
  April 16, 2010

  

 

ante4, Inc.,
a Delaware corporation (the “Company”), hereby agrees that, for value received,
                                              
(the “Holder”) or its assigns, is entitled, subject to the terms set
forth below, to purchase from the Company at any time or from time to time on
or prior to December 1, 2019 (the “Expiration Date”), up to                                                     
(                )
shares of the Company’s common stock, par value $0.001 per share (the “Shares”),
at an exercise  price of $0.98 per share.

 

1.             Exercise of Warrant.

 

(a)           Vesting.  The Holder shall have no right to exercise
this Warrant to purchase the Shares until this Warrant vests as provided
herein.  The rights represented by this
Warrant shall vest and become exercisable in a single lump sum on the earliest
to occur of the following events:

 

(i)            at the open of business on December 31,
2011;

 

(ii)           immediately upon the
occurrence of any event constituting a Change in Control (as defined below); or

 

(iii)          immediately in the event
Holder’s employment with the Company and Plains Energy Investments, Inc.,
a Nevada corporation (“Plains Energy”) is terminated for any reason other than “For
Cause” (as specified in Section 1(b) below).

 

Any of the following shall constitute a “Change in
Control” for the purposes hereof:

 

(iv)          The consummation of a reorganization, merger, share exchange, consolidation or similar transaction, or the sale or disposition of all or substantially all of the assets of the Company, unless, in any case, the persons beneficially owning the voting securities of the Company immediately before that

 

 

transaction beneficially own, directly or indirectly, immediately after the transaction, at least fifty percent (50%) of the voting securities of the Company or any other corporation or other entity resulting from or surviving the transaction in substantially the same proportion as their respective ownership of the voting securities of the Company immediately prior to the transaction; or
 

(v)           The Company’s shareholders approve a complete
liquidation or dissolution of the Company.

 

(b)          Termination of Warrant “For Cause”.
This Warrant shall automatically terminate and the Holder shall forfeit any and
all unexercised rights hereunder in the event that the Holder’s employment with
the Company and Plains Energy is terminated for any of the following reasons
(each of which reasons shall be considered “For Cause”):

 

(i)            an intentional act of fraud,
embezzlement, theft or any other material violation of law;

 

(ii)           grossly negligent or
intentional damage to the Company’s or Plains Energy’s reputation or assets;

 

(iii)          grossly negligent or
intentional disclosure of Confidential Information and Materials set forth in
the Holder’s Employment Agreement with the Company and Plains Energy;

 

(iv)          the
willful and continued failure to substantially perform required duties for the
Company or Plains Energy (other than as a result of incapacity due to physical
or mental illness); or

 

(v)           a
material breach of the Holder’s Employment Agreement with the Company and
Plains Energy that is not cured within 14 days of receiving notice from the
Company or Plains Energy of such breach.

 

(c)           Exercise Procedures.  The party exercising this Warrant shall
deliver a completed notice of any exercise (in the form attached hereto) to the
Company at its principal office at least three business (3) days prior to
the intended date of exercise.  Such
notice shall be accompanied by the surrender of this Warrant and payment to the
Company of the purchase price for the Shares. 
Certificates for the Shares so purchased, bearing the restrictive legend
shall be delivered to the address requested by the Holder within three (3) business
days after the rights represented by this Warrant have been so exercised, and,
unless this Warrant has expired, a new warrant representing the number of
Shares, if any, with respect to which this Warrant has not been exercised shall
also be delivered to the Holder within such time.  No fractional shares shall be issued upon the
exercise of this Warrant.

 

(d)           The
Company covenants and agrees that all Shares that may be issued upon the
exercise of the rights represented by this Warrant shall, upon issuance, be
duly authorized and issued, fully paid and non-assessable shares of Common
Stock.  The Company further covenants and
agrees that during the period within which the rights

 

2

 

represented by this Warrant may be exercised,
the Company will at all times have authorized and reserved for the purposes of
issue or transfer upon exercise of the rights evidenced by this Warrant a
sufficient number of shares of Common Stock to provide for the exercise of the
rights represented by this Warrant.  The
Company may require that such certificate or certificates contain on the face
thereof a legend indicating that such shares must be sold under appropriate
federal and state laws.

 

2.             Adjustment of Purchase
Price, Reorganization, etc.  In the event the Company shall at any time
hereafter subdivide or combine its outstanding shares of Common Stock, or
declare a stock dividend, the exercise price and number of Shares into which this
Warrant may convert in effect immediately prior to the subdivision, combination
or dividend shall be adjusted to maintain the pro rata
amounts for this Warrant.  In the event
of any capital reorganization or any reclassification of the shares of Common
Stock of the Company, or in the case of any consolidation with or merger of the
Company into or with another corporation, or the sale of all or a majority of
its assets to another corporation effected in such a manner that the holders of
Common Stock shall be entitled to receive stock, securities or assets with
respect to or in exchange for Common Stock, then, as a part of such
reorganization, reclassification, consolidation, merger or sale, as the case
may be, lawful provision shall be made so that the Holder of the warrant shall
have the right thereafter to receive, upon the exercise hereof, the kind and
amount of stock, securities or assets which the Holder would have been entitled
to receive if, immediately prior to such reorganization, reclassification,
consolidation, merger or sale, the Holder had held the number of Shares which
were purchasable upon the exercise of the warrant.  In any such event, an appropriate adjustment
(as determined in good faith by the Board of Directors of the Company) shall be
made in the application of the provisions set forth herein with respect to the
rights and interest thereafter of the Holder of the warrant, such that the
provisions set forth herein (including provisions with respect to adjustments
of the exercise price) shall thereafter be applicable, as nearly as reasonably
may be, in relation to any shares of stock or other property thereafter
deliverable upon the exercise of the warrant.

 

3.             Right to Call and Redeem.  If (a) the average closing bid price of
the Company’s Common Stock on NASDAQ (or other national market, exchange or
listing service) is above $2.00 per share (as appropriately adjusted for stock
splits, stock dividends, stock combinations or the like) for a period of thirty
(30) consecutive trading days, (b) there is an effective registration
statement for the resale of Common Stock underlying the Warrants on the date
the Warrants are called, and (c) the Holder is not subject to a lockup
agreement with the Company on the date the Warrants are called, then the
Company shall have the right, at any time upon thirty (30) days’ prior written
notice, to call and redeem all or any portion of this Warrant (in any such
case, the “Call Right”).  The Company shall
exercise the Call Right by delivering written notice to the Holder, indicating
the Company’s exercise of the Call Right described herein and the date such
redemption shall take place absent a valid exercise of the Warrant (the “Redemption
Date”).  Upon the Company’s exercise of
the Call Right, the purchase price for such redemption shall equal one-tenth of
One Cent ($0.001) per share issuable hereunder and redeemed pursuant to the
Call Right.  Notwithstanding the
foregoing, the Holder shall be entitled to exercise all or any portion of the
Warrant, pursuant to the terms set forth in this Warrant, prior to the
Redemption Date.

 

3

 

4.             Transferability.  This Warrant and all rights hereunder are
non-transferable without the Company’s the express written consent.

 

5.             Voting.  This Warrant shall not entitle the Holder
hereof through the use of this Warrant to any voting rights or other rights as
a shareholder of the Company.

 

6.             Reservation of Common Stock.  A number of shares of Common Stock sufficient
to provide for the exercise of this Warrant upon the basis herein set forth
shall at all times be reserved for the exercise thereof.

 

7.             Relationship to Previous
Warrant.  This Warrant is issued in
connection with that certain merger transaction by and among the Company,
Plains Energy, and Plains Energy Acquisition Corp.  This Warrant supersedes and replaces that
certain warrant issued to the Holder by Plains Energy dated January 25,
2010 (the “Original Warrant”), in its entirety, and the Holder hereby waives
any and all rights set forth in the Original Warrant and any other warrants
issued by Plains Energy.  Holder agrees
and acknowledges that the Merger was not a Change in Control for purposes of
the vesting of the Original Warrant.

 

8.             Miscellaneous.  The Company will not by amendment of its Certificate
of Incorporation or through reorganization, consolidation, merger, dissolution
or sale, or by any other voluntary act or deed, avoid or seek to avoid the
observance or performance of any of the conditions to be observed or performed
hereunder by the Company, but will at all times in good faith assist, insofar
as it is able, in the carrying out of all provisions hereof and in the taking
of all other action which may be necessary in order to protect the rights of
the Holder hereof.

 

The representations, warranties and agreements
herein contained shall survive the exercise of this Warrant.  All Shares of Common Stock or other
securities issued upon the exercise of the warrant shall be validly issued,
fully paid and non-assessable.

 

[Signature Page Follows]

 

4

 

IN WITNESS WHEREOF, this
Warrant has been duly executed by the undersigned, as of the date first set
forth above.

 

	
   

  	
  ante4, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  Steven Lipscomb

  
	
   

  	
  Its:
  President, Chief Executive Officer, and Secretary

  

 

SIGNATURE PAGE TO

WARRANT TO PURCHASE

SHARES OF COMMON STOCK

OF ANTE4, INC.

ISSUED TO                                

 

5

 

NOTICE OF

WARRANT EXERCISE

 

(To be signed upon exercise of warrant)

 

The undersigned, the holder of the foregoing
warrant, hereby irrevocably elects to exercise the purchase right represented
by such warrant for, and to purchase thereunder                                     
shares of common stock of ante4, Inc., to which such warrant relates and
herewith makes payment of $                      
therefore in cash or by certified check and requests that the certificate for
such share be issued in the name of, and be delivered to                                 ,
whose address is set forth below the signature of the undersigned.

 

 

	
  Dated:
                                      ,
  20

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Print Name)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Address)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Social Security
  or Tax Identification No.

  

 

 

Accepted
this          day of                           ,
20      .

 

	
  ante4, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  
	
  Its

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