Document:

﷡﷡﷡﷡﷡

Exhibit

10.1

INDUSTRIAL LEASE

NET LEASE

 

 

	

  1.

  	

   

  	

  LEASE

  PROVISIONS.

  	

   

  	

   

  
	

  Tenant:

  	

   

  	

  The Order People

  Company,

  	

   

  	

   

  
	

   

  	

   

  	

  a Delaware

  corporation

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Landlord:

  	

   

  	

  New West Michigan Industrial Investors, L.L.C.

  	

   

  	

   

  
	

   

  	

   

  	

  a Delaware Limited Liability Company

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Address of Premises:

  	

   

  	

  2640 Northridge Dr., N.W.

  	

   

  	

   

  
	

   

  	

   

  	

  Walker, MI 

  49544

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Rentable Area of Premises:

  	

   

  	

  Office Area:

  	

   

  	

  6,561 square

  feet

  	

   

  	

   

  
	

   

  	

   

  	

  Warehouse Area:

  	

   

  	

  203,439 square

  feet

  	

   

  	

   

  
	

   

  	

   

  	

  TOTAL:

  	

   

  	

  210,000 square

  feet

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  As further described in the Legal Description

  attached hereto as Exhibit D

  	

   

  	

   

  
	

  Commencement Date:

  	

   

  	

  January 1, 2002, or upon the date Landlord (i) has

  	

   

  	

   

  
	

   

  	

   

  	

  substantially completed the improvements to be

  	

   

  	

   

  
	

   

  	

   

  	

  constructed or installed by Landlord, and (ii) has

  	

   

  	

   

  
	

   

  	

   

  	

  obtained a temporary or permanent Certificate of

  	

   

  	

   

  
	

   

  	

   

  	

  Occupancy, which date is later.

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Termination Date:

  	

   

  	

  10 years after Commencement Date

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Net Rent:

  	

   

  	

  Annual

  	

   

  	

  Monthly

  
	

   

  	

   

  	

  $686,700

  	

   

  	

  $57,225

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  To begin upon Commencement Date

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Rent Increase:

  	

   

  	

  3% per year on each anniversary of Commencement Date

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Tenant’s Address for Notices:

  	

   

  	

  2200 East Golf Road

  	

   

  	

   

  
	

   

  	

   

  	

  Des Plaines, IL 

  60016

  	

   

  	

   

  
	

  Landlord’s Address for Notices:

  	

   

  	

  7377 Expressway Dr. SW

  	

   

  	

   

  
	

   

  	

   

  	

  Suite B

  	

   

  	

   

  
	

   

  	

   

  	

  Grand Rapids, MI 

  49548

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Broker:

  	

   

  	

  Grubb & Ellis — Tenant

  	

   

  	

   

  
	

   

  	

   

  	

  S. J. Wisinski & Company — Landlord

  	

   

  	

   

  
															

 

 

 

	

  Tenant’s Proportionate Share:

  	

   

  	

  100%

  
	

  Tenant’s Construction Contribution:

  	

   

  	

  Tenant shall be responsible for 100% of the cost for

  the additional 3,605 square feet of office space (“Office Build Out”) to be

  constructed by Landlord at Tenant’s request, pursuant to the description of

  same including all costs thereof contained in Exhibit C, and as drawn in

  Attachment 1 to Exhibit A (Site Plan). 

  The total cost shall not exceed $35.00 per square foot unless

  requested by Tenant and approved by Landlord.  At Tenant’s option, Tenant’s Construction Contribution for the

  Office Built Out shall be either (i) paid in equal monthly installments over

  the term of the Lease as described in Section 3 herein, each such installment

  to include interest at the rate of 10.5%, or (ii), paid on the Commencement

  Date.  Tenant shall exercise its

  option as to method of payment no later than December 1, 2001.

  

 

	

  Landlord Improvements:

  	

   

  	

  None

  
	

   

  	

  This Information Page is incorporated into and made

  a part of the Lease.  The Lease

  includes Exhibit A (Site Plan), Exhibit B (Environmental Requirements) and

  Exhibit C (Work Letter).

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  2.

  	

   

  	

  PREMISES & USE.                  Tenant leases the “Premises” shown on

  Exhibit A and the Information Page from Landlord.  The Premises and contiguous or related property, which are

  managed jointly, are referred to as the “Property.”  The Premises are to be used solely for warehousing and related

  offices and shall not include any use that would cause the Premises to be a

  “place of public accommodation” under the Americans with Disabilities Act of

  1990.  Tenant shall not permit

  anything to interfere with the rights of other tenants or injure, annoy or

  disturb them.  Tenant shall not permit

  any waste or illegal act nor anything that will increase the Property

  insurance rate.  Tenant shall promptly

  comply with all laws, statutes, ordinances and governmental rules,

  regulations or requirements now in force or which may hereafter be in force,

  with any occupancy certificate or directive issued pursuant to any law by any

  public officer or officers.  Tenant

  shall be financially responsible for its failure to observe any covenant or

  condition of this Article.  Landlord

  warrants and represents, to the best of its knowledge, that as of the

  Commencement Date, the Property complies with all applicable laws, rules and

  regulations, whether local, State or Federal, for the Tenant’s intended use

  of the Property for warehousing and related office use.

  
	

   

  	

   

  
								

 

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  3.

  	

   

  	

  TERM.                  This Lease shall begin on the “Commencement Date”

  and end on the “Termination Date” as set forth on the Information Page.  If possession cannot be delivered on the

  Commencement Date, Landlord shall not be liable for damages, but Rent shall

  be equitably abated.  Such delay shall

  not affect the obligations of Tenant hereunder nor change the Termination

  Date.  Occupancy prior to the

  Commencement Date shall be subject to all the provisions of this Lease.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  4.

  	

   

  	

  RENT.                  Tenant shall pay the “Net Rent” as set forth on the

  Information Page, plus other sums due hereunder (“Additional Rent”), together

  known as “Rent,” on the first of each month. 

  Should the Lease commence on any date other than the first of the

  month, the Rent for the first and last months shall be prorated, and shall be

  due on the first and last dates of occupancy for those months, and the Rent

  for all other months shall be due on the first day of the month.  Rent shall be paid to Landlord without any

  set-off, deduction or notice.  Each

  Rent payment not received by the fifth of the month (or, if the Commencement

  Date is other than the first day of the month, within five (5) days of the

  Commencement Date) shall bear interest at the highest lawful rate not to

  exceed 1.5 percent per month plus a one-time bookkeeping charge of five

  percent of the amount due.  All

  payment of rent monies by Tenant, pursuant to the terms and conditions of

  this Lease, shall be guaranteed, by the parent legal entity of Tenant.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  5.

  	

   

  	

  OPERATING EXPENSES.                  “Operating Expenses” of the Property

  shall include all costs, expenses and obligations of operating, managing and

  maintaining, repairing and replacing the Property, including without

  limitation, real estate taxes, fees, rents or assessments paid to any

  governmental or taxing authority whether general or specific, ordinary or

  extraordinary, foreseen or unforeseen, and sales, rental, use and occupancy

  tax levied upon Landlord, snow removal, insurance (including casualty, rent

  loss and liability insurance), common fire protection, common area utilities

  (subject to the limitations of Article 14 herein), landscaping, clean-up, the

  cost of maintaining, repairing, replacing and operating the parking areas and

  drives upon the Property, reasonable depreciation of capital equipment used

  in the maintenance and operation of the Property and the cost of any capital

  improvements made to the Property by Landlord that are intended to reduce

  other Operating Expenses and/or are required under any governmental law or

  regulation that was not applicable to the Property at the time it was

  constructed.  Operating Expenses of

  the Property shall also include the cost of maintaining building exteriors,

  roof repairs and preventative maintenance work, fees incurred for tax appeal

  or insurance purposes and security, but shall not include any capital items

  other than those referred to above.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Tenant’s “Proportionate Share” as shown on the

  Information Page was determined by dividing the Rentable Area of the Premises

  by the Rentable Area of the Property and rounding the quotient to the next

  highest thousandth.  Each

  

 

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  December Landlord shall estimate Tenant’s

  Proportionate Share of Operating Expenses for the next calendar year.  Tenant shall pay such estimated amount to

  Landlord in advance in equal monthly installments.  Landlord may adjust such estimate from time to time.  Within ninety (90) days after the end of

  each calendar year, Landlord will furnish a detailed statement of the actual

  amount of Tenant’s Proportionate Share of Operating Expenses for such

  calendar year and Landlord or Tenant shall make such payment necessary to

  adjust Tenant’s estimated payments to the amount actually due within thirty

  (30) days after Tenant’s receipt of such statement.  Partial years will be equitably prorated.  Landlord shall make each year’s Operating

  Expenses records available for review until December 31st of the following

  year.

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Landlord shall, at its expense, maintain and keep in

  good repair the foundations and structure of the Property.  Landlord shall also be responsible for the

  major replacement of the roof system as determined by Landlord (in accordance

  with industry standards) so that their structural integrity is

  maintained.  Landlord shall also, at

  its expense, be responsible for the replacement of the outside walls of the

  Property, if determined necessary, in accordance with industry standards;

  however, if Tenant’s negligence is responsible for the necessity of

  replacement, Tenant shall bear the cost for same.  Normal wear and tear, and the normal aging process do not

  constitute negligence.  Tenant shall

  give notice of the need for any repair after which Landlord shall have a

  reasonable opportunity to correct the same. 

  Landlord’s liability with respect to any repair or replacement shall

  be limited to the cost of such repair or replacement.  Tenant is responsible for paying all costs

  associated with the installation of a fire protection monitoring system for

  its Premises including but not limited to the fire alarm panel, strobe

  lights, horns, monthly monitoring fees and interconnecting communications

  cable in accordance to NFPA and the local governing fire marshal.

  	

   

  
	

   

  	

   

  	

   

  	

   

  

 

	

  6.

  	

   

  	

  ASSIGNMENT AND SUBLETTING.                  Tenant shall not assign this Lease or

  sublet the Premises without Landlord’s prior written consent, with the

  exception of assigning or subletting to any affiliated or related legal

  entity of Tenant (e.g., parent, sibling, or subsidiary).  Any assignment to an affiliate or related

  legal entity other than the parent of Tenant shall require a guaranty by the

  parent for any and all monies due under the Lease by the assignee.  If the proposed tenant does not represent

  an environmental  risk, such consent

  shall not be unreasonably withheld. 

  Tenant’s sole remedy shall be specific performance with respect to any

  assertion that Landlord’s consent was unreasonably withheld.  Landlord may terminate this Lease in the

  event of a proposed assignment of this Lease or a subletting of materially

  all of the Premises or elect to receive fifty percent of all future profits

  from such assignment or subletting. 

  Regardless of Landlord’s consent, no assignment or subletting shall

  release Tenant of Tenant’s obligation or alter the primary liability of

  Tenant to pay Rent and to perform all other obligations under this Lease.

  	

   

  

 

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  7.

  	

   

  	

  ALTERATIONS.                     Tenant shall not permit any material

  alterations or improvements, defined as those alterations or improvements

  with a cost greater than $10,000.00 (“Alterations”) without the written

  consent of Landlord.  Such consent

  shall not be unreasonably withheld if the 

  Alteration is non-structural and does not reduce the value of the

  Property.  Notwithstanding such

  consent, Landlord may require Tenant to remove any Alteration upon termination

  of this Lease and restore the Premises to good condition.  Tenant agrees to design and construct all

  Alterations in accordance with all applicable laws, codes, and ordinances,

  including without limitation, State and Federal Accessibility Guidelines.

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
					

 

	

  8.

  	

   

  	

  REPAIRS.                    By taking possession, Tenant accepts the Premises as

  being in good order and repair and in the condition in which Landlord is

  obligated to deliver the Premises. 

  Tenant shall maintain the Premises in good condition, regularly

  servicing and promptly making all repairs and replacements, whether ordinary

  or extraordinary, with high quality materials and workmanship in compliance

  with all laws and regulations.The obligation to maintain shall include,

  without limitation, the windows, office entries, walls, floors, electrical

  systems, sprinkler systems, fire alarm monitoring, dock seals, dock bumpers,

  dock doors, plumbing fixtures, heating, ventilation and air conditioning

  systems that serve the Premises. 

  Tenant shall also repair any Property damage caused by its agents,

  employees or visitors within thirty days. 

  Tenant shall not take or allow any action that would void roof or

  other similar warranties or overload any building component including

  mezzanines.

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
						

 

	

  9.

  	

   

  	

  LIENS.                Tenant shall keep the Property free from liens,

  including, without limitation, construction liens.  If Tenant does not, within ten (10) business days following the

  receipt of notice of the filing of a lien, cause the lien to be released,

  Landlord may cause it to be released by such means as it shall deem proper,

  including payment of the claim.Such sums advanced shall be considered

  Additional Rent.  Notwithstanding the

  foregoing, Tenant shall not be responsible for the release of any liens or

  encumbrances on the Property on account of any action or inaction by Landlord

  or its contractors and agents, nor shall Tenant be responsible for the

  release of any liens or encumbrances in existence prior to the commencement

  of the Lease, other than those caused by Tenant.

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
						

 

	

  10.

  	

   

  	

  ENTRY AND INSPECTION.             Landlord or Landlord’s agent may re-enter the

  Premises at reasonable times and upon reasonable notice (i.e., not less than

  twenty-four (24) hours), to inspect, provide service, alter or repair the

  Property.  Landlord may at any time

  within six (6) months prior to the expiration of this Lease, install “For

  Lease” signs and permit persons desiring to lease the space to inspect the

  Premises, and may at any reasonable time permit inspection by proposed buyers

  or lenders, upon at least twenty-four (24) hours notice.  In the event of an emergency, reasonable

  notice may be less than twenty-four (24) hours.

  	

   

  

 

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  11.

  	

   

  	

  INDEMNIFICATION.             Except for Landlord’s gross negligence or willful

  misconduct, Tenant waives all claims against Landlord for damage to any

  property or injury to any person connected with Tenant.  Tenant shall hold Landlord harmless from,

  and defend Landlord against, all claims, liability or costs for property damage

  or personal injury when such damage or injury shall arise from (a) the

  wrongful act or neglect of Tenant’s agents, employees or visitors; (b) any

  work done or not done by or on behalf of Tenant; or (c) Tenant’s

  default.  Notwithstanding the previous

  sentence, in the event that both Landlord and Tenant are grossly negligent,

  or both have committed willful misconduct, then Tenant’s indemnity obligation

  shall be limited to Tenant’s relative degree of fault.  This Article shall survive the termination

  of this Lease.  Notwithstanding any

  provision of this Article, indemnification in connection with any and all

  environmental claims shall be governed solely by Exhibit B.

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  12.

  	

   

  	

  INSURANCE.              Tenant and Tenant’s contractors, at its

  expense, shall continuously maintain Worker’s Compensation insurance for all

  personnel, automobile liability insurance for all vehicles and commercial

  general liability insurance covering all third-party claims including bodily

  injury, property damage and personal injury with a combined single limit of

  five million dollars per occurrence. 

  Tenant’s policy shall name Landlord and its affiliates, management

  company, ground owner and mortgages as additional insureds (on a primary and

  non-contributory basis) on such policies. 

  In addition, Tenant shall procure and keep in effect fire insurance

  (including standard extended coverage endorsement perils and leakage from

  fire protective devices) for the full replacement cost of Tenant’s trade

  fixtures, equipment, personal property and leasehold improvements.  All such insurance policies required to be

  carried by Tenant hereunder shall provide thirty days notice of

  cancellation.  A certificate of

  insurance relative to each such insurance policy shall be delivered to

  Landlord prior to the Commencement Date and maintained on a current basis at

  all times during the term.

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  13.

  	

   

  	

  WAIVER OF SUBROGATION.            To the maximum extent permitted by insurance

  policies which may be owned by Landlord (or any other party having an

  ownership interest in the Property, either legal or equitable) or Tenant,

  Landlord (and any other party having an ownership interest in the Property,

  either legal or equitable) and Tenant for the benefit of each other, hereby

  waive their rights of recovery against each other for any loss normally covered

  by fire, extended coverage or all risk insurance.  Each party shall obtain necessary endorsements from its

  insurer.

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  14.

  	

   

  	

  UTILITIES.               Tenant agrees that it shall be

  responsible for the timely payment of all utilities, including water, gas,

  electricity, fire alarm/riser monitoring charges and other services delivered

  to the Premises, including a fair portion (as allocated by Landlord) of

  services shared with other tenants, if any. 

  Landlord shall not be liable for any interruption or diminution of

  utility services.  In the event of

  utility “deregulation,” Landlord shall choose the service provider.

  	

   

  

 

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  Notwithstanding the foregoing, if Tenant does not

  share any utility services with any other Tenant, Tenant shall choose its

  service providers, and payment of utilities shall be excluded from

  calculation of the Operating Expenses due and payable to Landlord under

  Article 5.

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	 

								

 

	

  15.

  	

  PARKING.                 Tenant shall be entitled to the exclusive use of

  parking spaces in the parking area adjacent to the building in which the

  Premises are situated.  There shall be

  no parking outside designated parking areas. 

  Tenant shall not allow outside storage or the parking of inoperative

  vehicles or inoperative trailers on the Property.  Tenant shall be responsible for such exclusive lots and shall

  repair and maintain and surrender them to Landlord in comparable condition to

  that at the time of the Commencement Date (to be determined and documented,

  on or about the Commencement Date, weather permitting) when this Lease

  terminates.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  16.

  	

  CONDEMNATION.              If any part of the Premises shall be

  taken or condemned for public use, and a part remains, which is suitable for

  occupation by Tenant, this Lease shall, as to the part taken, terminate as of

  the date the condemnor acquired possession. 

  Thereafter Tenant shall be required to pay such proportion of the Rent

  for the remaining Lease term as the rentable area of the Premises remaining

  bears to the total rentable area of the Premises at the date of

  condemnation.  However, Landlord may,

  at its option, terminate this Lease as of the date the condemnor acquires

  possession of the Premises or any part of the Premises.  In the event that the Premises are

  condemned in whole, or the portion condemned is such that the remainder is

  not suitable for Tenant’s intended use under this Lease, this Lease shall

  terminate upon the date upon which the condemnor acquires possession.  All sums which may be payable on account

  of any condemnation shall belong in the Landlord, except that Tenant shall be

  entitled to retain any amount awarded to Tenant for Tenant’s trade fixtures

  and moving expenses.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  17.

  	

  SURRENDER OF PREMISES.             Upon termination of this Lease, Tenant will deliver

  to Landlord possession of the Premises in good condition, broom clean and

  free of debris and damage, ordinary wear and tear excepted.  All obligations of Tenant hereunder not

  fully performed shall survive termination of this Lease.  Any and all improvements made to the

  Premises during this Lease shall belong to the Landlord except for trade

  fixtures of the Tenant, which shall be removed, and the Premises returned to

  original condition at the expense of the Tenant.  Tenant shall pay Landlord to remove any alterations or signage

  and to repair, restore and paint the Premises, if necessary.  If Tenant abandons or vacates the

  Premises, or be dispossessed by process of law, or otherwise, any personal

  property remaining in the Premises shall be deemed to be abandoned.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  18.

  	

  DESTRUCTION OF PREMISES.                If the Premises are damaged by

  casualty, and insured under the casualty insurance policy carried by Landlord

  covering the Property, Landlord shall promptly repair the same and the Rent

  shall

  

 

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  be equitably abated.  If restoration cannot be made within ninety (90) days, or if

  such casualty is not insured under such casualty insurance policy carried by

  Landlord and Landlord elects not to restore, Landlord shall notify Tenant and

  either party may terminate this Lease within thirty days.  Landlord shall not repair or replace

  Tenant’s property.  Upon Tenant’s

  written request, Landlord must supply Tenant a copy of its current Certificate

  of Insurance for its casualty insurance policy in full force and effect

  throughout the term of this Lease in such amounts as are standard for the

  rental of similar properties for a use similar to that intended by Tenant.

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	 

	

  19.

  	

  DEFAULT.                 If Tenant shall default (a) in the

  payment of Rent; or (b) in the observance of any ordinance, law or regulation

  or any material term covenant or condition of this Lease or other agreement

  with Landlord and fail to remedy, or commence to remedy (and diligently

  pursue until completion) such default within twenty (20) days after notice;

  or (c) in subletting or assigning this Lease without consent (with the

  exception of an assignment or sublet to those parties specified in Article 6

  hereunder); then, Landlord may give Tenant the statutorily required notice of

  Lease termination and Tenant shall remain liable for damages and Rent due

  hereunder.  If Tenant defaults three

  times in any six (6)-month period, Landlord may serve notice of Lease

  termination without giving Tenant an opportunity to cure such default.  Landlord’s failure to enforce one or more

  of its rights under this Lease, in law, or in equity, shall not be construed

  as a waiver or limitation of Landlord’s ability to subsequently enforce any of

  its rights.  Upon the appointment of a

  receiver or an assignment of assets for the benefit of creditors, or action

  taken by Tenant under any bankruptcy or other debtor relief act, this Lease

  shall automatically terminate without notice.  If, as a matter of law, Landlord has no right on Tenant’s

  bankruptcy to terminate this Lease, then if Tenant, as debtor, or its

  trustee, wishes to assume or assign this Lease, in addition to curing or

  adequately assuring the cure of all defaults existing under this Lease on

  Tenant’s part on the date of filing, Tenant, as debtor, or its trustee, must

  furnish adequate assurance of future performance.  Adequate assurance of curing defaults means, with regard to the

  foregoing sentence, the posting with Landlord of a sum in cash sufficient to

  defray the costs of curing all existing defaults.  Adequate assurance of future performance means, with regard to

  the foregoing, posting a deposit equal to three (3) months’ rent and

  additional rent payable by Tenant hereunder and, in the case of an assignee,

  assuring Landlord that the assignee is financially capable of assuming this

  Lease.  In reorganization under the

  Bankruptcy Code or equivalent successor law, the debtor or trustee must

  assume this Lease or assign it within sixty (60) days following the date of

  filing the proceeding or it shall be deemed to have rejected and terminated

  this Lease.  In no event shall the

  reasonable rental value of the Premises be deemed to be less than the Monthly

  Net Rent and Additional Rent specified in this Lease.

  	 

	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Notwithstanding anything herein contained to the

  contrary, if Tenant shall be in default in the performance of any of the

  terms or provisions of this Lease and if Landlord shall give Tenant notice in

  writing of such default specifying the nature

  	

   

  
							

 

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  thereof, and if Tenant shall fail to cure such

  default within the time provided above or immediately if such default

  requires emergency action, Landlord may, in addition to its other legal and

  equitable remedies, cure such default for the account of and at the cost and

  expense of Tenant, and the sums so expended by Landlord, including reasonable

  legal fees, shall be deemed Rent and shall be paid by Tenant on the day when

  rent shall next become due and payable.

  	 

	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	 

	

  20.

  	

   

  	

  REMEDIES.                     If this Lease shall terminate due to a default by

  Tenant, then Tenant shall pay all Rent until termination and, as damages, any

  deficiency between the future Rent herein and the rent collected under any

  re-letting, net of all expenses. 

  Landlord may elect not to terminate this Lease but to recover the  Rent, as the same becomes due or, in

  advance, the present value of the future Rent.  After default, Landlord may re-enter the Premises, dispossess

  Tenant and remove all property without releasing  Tenant from any obligation, including payment of Rent.  Tenant and Tenant’s creditors waive all

  rights to file claims for damages resulting from such re-entry and expulsion,

  or to re-enter or repossess the Premises, after Tenant shall have been

  dispossessed by any judgment.

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	 

	

  21.

  	

   

  	

  QUIET ENJOYMENT.             Landlord warrants that it has the authority to enter

  into this Lease and that Tenant, while paying Rent and performing its other

  covenants and agreements shall peaceably and quietly have, hold and enjoy the

  Premises without hindrance from Landlord.

  	 

	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	 

	

  22.

  	

   

  	

  WAIVER OF JURY TRIAL.               Landlord and Tenant hereby waive trial

  by jury in any proceeding brought against each other.  Any legal proceeding shall be governed by

  the laws of the State in which the Property is located and tried in the court

  system.  The prevailing party shall be

  entitled to all costs incurred in connection with the action, including

  reasonable attorney’s fees.

  	 

	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  23.

  	

   

  	

  WAIVER.                     No failure of Landlord to enforce any terms of this

  Lease shall be deemed to be a waiver unless in writing signed by Landlord.

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  24.

  	

   

  	

  NOTICES.                  Notices shall be given by hand delivery, or sent by

  overnight courier, Certified Mail, or by fax with a confirmation of delivery

  followed by a copy sent by regular mail, using the addresses set forth on the

  Information Page or at such other place as may be designated by the parties

  from time to time, and shall be deemed given upon delivery or refusal to

  accept delivery.

  	 

	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	 

	

  25.

  	

   

  	

  HOLDING OVER.                 Landlord may charge one hundred fifty

  percent (150%) of the Rent due hereunder if Tenant retains possession of the

  Premises after the Termination Date. 

  Any holding over shall create no more than a month-to-month tenancy.

  	 

	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	 

	

  26.

  	

   

  	

  SALE BY LANDLORD.                   If the Property is sold, Landlord shall

  be released from any future liability under this Lease and Tenant shall look

  solely to Landlord’s successor. 

  Landlord shall remain responsible to Tenant for any existing liability

  	 

											

 

9

 

	

   

  	

   

  	

  at the time of sale, except to the extent the new

  owner assumes same.  Except as set

  forth in this Article, this Lease shall not be affected by any such sale,

  including all terms and provisions herein, and Landlord shall not consummate

  any sale to any third party without notice to the third party of the

  existence of this Lease, and the assumption, by the third party, of all

  confidentiality provisions contained herein.

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  27.

  	

   

  	

  ESTOPPEL CERTIFICATE.                   Within ten (10) business days of

  written notice from Landlord, Tenant shall deliver to Landlord or any

  prospective purchaser or mortgagee a statement certifying (a) that this Lease

  is unmodified except as specified (b) the amount of any security deposit; and

  (c) the date to which the Rent has been paid, (d) acknowledging that there

  are not, to Tenant’s knowledge, any uncured defaults on the part of Landlord,

  or specifying the defaults if any are claimed, and (e) financial,

  environmental and other information as reasonably requested.

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  28.

  	

   

  	

  SUBORDINATION.                     This Lease shall be subordinate to any

  Property mortgage or ground lease.  In

  the event of attornment by Tenant, the ground owner or mortgagee shall not be

  (a) liable for any act or omission of 

  Landlord; or (b) subject to any offsets or defenses Tenant has against

  Landlord; or (c) bound by prepayment of more than one month’s Rent.  Tenant shall execute a subordination,

  non-disturbance and attornment 

  agreement upon ten (10) days notice, provided that such agreement is

  mortgagee’s standard form.  In the

  event Tenant fails to provide said subordination the Landlord shall have the

  right to execute the subordination on the Tenant’s behalf.  Tenant shall be entitled to receive a copy

  of said Landlord executed subordination.

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  29.

  	

   

  	

  OUTSIDE STORAGE.              With the exception of its vehicles and

  trailers, Tenant shall not store any personal property including, but not

  limited to, equipment and supplies outside the Premises without Landlord’s

  prior written consent, which, if granted, shall not be unreasonably delayed.  Landlord shall provide  Tenant three (three) business days to cure

  any violation of this Article after providing Tenant with written notice of

  same.

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  30.

  	

   

  	

  FINANCIAL INFORMATION.                    At the request of Landlord, Tenant and

  guarantor (if any) shall submit financial statements with the submission of

  this Lease and/or for use in a refinancing or sale of the Property.  Notwithstanding the foregoing, such

  financial statements shall be limited to the most recent annual report and

  similar public documentation, or such other documentation as may be agreed

  upon by Landlord and Tenant. All information provided pursuant to this

  Article shall be considered confidential, and shall be protected by the

  provisions of  Article 37 hereunder.

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  31.

  	

   

  	

  LIMITED LANDLORD LIABILITY.                 No personal liability of any kind shall

  attach to Landlord or its partners, members, shareholders, directors or

  officers.  If the Landlord shall fail

  to perform an obligation of Landlord under this Lease and if

  

 

10

 

	

   

  	

   

  	

  Tenant shall recover a money judgment against

  Landlord as a result thereof, such judgment may be satisfied only out of the

  proceeds of sale received upon execution and levy of such judgment against

  Landlord’s interest in the Property, out of the rents from the Property

  receivable by Landlord and/or out of payments receivable by Landlord upon the

  sale or other disposition of all or any part of Landlord’s interest in the

  Property.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Landlord shall not be responsible or liable to

  Tenant for any loss or damage that may be occasioned by or through the acts

  or omissions of persons occupying adjoining areas or any part of the area

  adjacent to or connected with the Premises or any part of the Property of for

  any loss or damage resulting to Tenant or his property from theft or for any

  damage or loss of property within the Premises from any cause other than by

  reason of the gross negligence or willful act of Landlord, and no such

  occurrence shall be deemed to be an actual or constructive eviction from the

  Premises or result in a abatement of rent. 

  In the event that Landlord and other third parties are grossly

  negligent, or have committed willful misconduct resulting in such damage or

  loss to Tenant as described in this Article, then Landlord’s liability shall

  be limited to Landlord’s relative degree of fault.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  32.

  	

   

  	

  TENANT’S TAXES.              Tenant shall pay when due all personal

  property taxes attributable to Tenant’s personal property or leasehold

  improvements or its leasehold interest under this Lease.  Any personal property tax or other tax

  payable by Landlord which is attributable to the value of Landlord’s interest

  under this Lease shall be deemed to constitute “real estate taxed” for the

  purposes of this Lease, except that Tenant shall be obligated to reimburse

  Landlord for 100% thereof as part of Operating Expenses.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  33.

  	

   

  	

  MISCELLANEOUS.               The headings herein are for convenience

  and in no way describe the scope or intent of any Article.  Any indemnification or insurance for the

  benefit of Landlord shall include Landlord’s lenders, trustees, directors,

  beneficiaries, shareholders, agents, affiliates, members, partners, employees

  and ground owner.  The terms person,

  Tenant and Landlord or any pronoun used in place thereof shall include the

  masculine or feminine, the singular or plural number, individuals, firms, and

  corporations according to the context hereof.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  If any one of the provisions herein is judged

  unenforceable, all other provisions shall remain in full force and

  effect.  Time is of the essence for

  this Lease and all of its provisions. 

  This Lease has been freely negotiated between the parties and in any

  controversy over the interpretation of anything contained herein, there shall

  be no presumption or conclusion drawn against either party by virtue of that

  party having drafted that section of the Lease.  All options to extend this Lease or expand the Premises are

  personal to Tenant and may not be exercised if the Lease has been assigned or

  sublet (with the exception of an assignment or sublease to any affiliated or

  related legal entity of Tenant, e.g., parent, sibling or subsidiary, as

  permitted under Article 6 herein), or Tenant is in default.  This

  

 

11

 

	

   

  	

   

  	

  Lease contains the entire agreement of the parties,

  supersedes any previous understanding or agreement of the parties oral or

  written, and may not be modified except in writing.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Landlord shall revise the Rentable Area of the Property

  (and therefore Tenant’s Proportionate Share of the Property) if there is a

  change for any reason including sale or casualty without reconstruction.  In projects with multiple buildings,

  Landlord may elect to calculate Expenses on a building basis or a

  Property-wide basis in which case Tenant’s Proportionate Share shall be

  adjusted equitably.  The Premises is

  not reserved nor is this Lease effective until fully executed by Landlord and

  Tenant.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
								

 

	

  34.

  	

   

  	

  BROKER.                  Each party warrants that it has not dealt with any

  broker in connection with this Lease, except as noted on the Information

  Page, and indemnifies and holds the other harmless from all liability and

  expense as a result of any alleged breach of such warranty.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  35.

  	

   

  	

  RULES.                             Tenant shall comply with the Environmental

  Requirements (Exhibit B) and Property rules reasonably set forth by

  Landlord.  Tenant may install signs of

  lettering and advertising in compliance with governmental regulation and

  Property standards after obtaining Landlord’s written consent, which shall

  not be unreasonably withheld.  Tenant

  shall hold and keep current all permits and licenses required by any law or

  regulation.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  36.

  	

   

  	

  DELAYS.                     In the event that either party hereto shall be

  delayed in the performance of any provision of this Lease required to be

  performed by it, by reason of governmental laws, strikes, lockouts, labor

  troubles, extreme weather conditions or any other reasons beyond its

  reasonable control, then such performances shall be excused for the period of

  the delay and the period for the performance of any such act shall be

  extended for a period equivalent to the period of such delay.  The provisions of this Article 36 shall

  not operate to excuse Tenant from payment of Rent or any other payments

  required under the terms of this Lease.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  37.

  	

   

  	

  CONFIDENTIALITY.                             Landlord, its employees, accountants,

  attorneys and other agents shall not, except as permitted under the immediately

  following sentence, reveal the identify of Tenant or any assignee or

  sublessee of Tenant, or any guarantor of the foregoing, or any information in

  the possession of Landlord, its employees, accountants, attorneys and other

  agents to any other third person which would indirectly reveal the identify

  of same, or any confidential information such as that described in Article

  30, to any third person.  In addition,

  the identify of Tenant or Tenant’s assignee or sublessee, or any guarantor of

  the foregoing, as appropriate, and the release of any other information that

  might reveal the identify, and the release of any other confidential

  information, such as that described in Article 30, shall not be revealed to

  any third party without that person or person(s) executing confidentiality

  agreement, the terms and

  

 

12

 

	

   

  	

   

  	

  conditions of which shall be subject to Tenant

  reasonable approval.  Employees and

  attorneys of the Landlord shall be responsible for any breach by its

  employees or attorneys.  All of the

  foregoing restrictions shall remain in effect until May 31, 2002, or until

  identity of Tenant is publicly disclosed, or until Tenant commences business

  operations within the Premises, whichever occurs first.  Landlord expressly agrees not to record

  this Lease, nor any memorandum of the terms and conditions of same, without

  prior written permission of Tenant or Tenant’s assignee or sublessee, and any

  guarantor.  Notwithstanding the

  foregoing, Landlord shall not be responsible for the inadvertent disclosure

  of the identity of Tenant or any assignee or sublessee of Tenant, or any

  guarantor of the foregoing, or any information in the possession of Landlord,

  its employees, accountants, attorneys and other agents which would indirectly

  reveal the identify of same if all steps to preserve the confidentiality and

  non-disclosure of same that are commercially reasonable have been taken.  Notwithstanding Tenant’s limitations as to

  remedies for breach of any other provision of this Lease, Tenant may pursue

  any and all remedies available under law or equity against Landlord for any

  breach of any provision under this Article. 

  This paragraph shall not apply if Tenant is in default and is beyond

  the notice and cure periods to rectify same.

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  38.

  	

   

  	

  INFORMATIONAL TITLE

  COMMITMENT.                    Landlord shall provide to Tenant,

  within ten (10) business days of the execution of this Lease by Tenant, an

  informational title commitment from a title company of its own choosing, said

  commitment to show any and all encumbrances, liens, and restrictions of

  record on the Property.  It is

  expressly understood and agreed by the parties hereto that Tenant’s

  acceptance of the terms and conditions of this Lease, and Tenant’s agreement

  to be bound hereby is contingent upon Tenant’s review and acceptance of all

  encumbrances, liens and restrictions of record on the Property as set forth

  in the informational title commitment provided by Landlord.  Tenant may raise such objections to the

  encumbrances, liens and restrictions of record shown on the commitment as may

  impair materially its ability to use the Property as intended for the conduct

  of its business within five (5) business days of receiving the commitment by

  giving notice to Landlord.  If Tenant

  raises an objection, unless the objection is cured by Landlord within thirty

  (30) days of the execution of Lease by Tenant, this Lease shall be null and

  void with no penalty to either Landlord or Tenant.

  

 

13

 

	

  Landlord:

  	

   

  	

  Tenant:

  
	

   

  	

   

  	

   

  
	

  New West Michigan Industrial Investors, L.L.C.

  	

   

  	

  The Order People Company,

  
	

  a Delaware Limited Liability Company

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  BY:  KOJAIAN

  INDUSTRIAL INVESTORS, L.L.C.,

  	

   

  	

   

  
	

  a Michigan Limited Liability Company

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  BY:  KOJAIAN

  INDUSTRIAL INVESTORS MM, INC.,

  	

   

  	

   

  
	

  Managing Member

  	

   

  	

   

  

 

 

	

  By:

  	

   

  	

  /s/ C. Michael Kojaian

  	

   

  	

  By:

  	

  /s/ Brian S. Cooper

  	

   

  
	

  C. Michael Kojaian

  	

  Printed

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Its:

  	

   

  	

  Vice President

  	

   

  	

  Name:

  	

  Brian S. Cooper

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

  Title:

  	

  Treasurer

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

  Commencement Date:

  	

  1/16/02

  	

   

  
								

 

14

 

 

Exhibit

“A”

Site

Plan

 

 

EXHIBIT

“B”

ENVIRONMENTAL

REQUIREMENTS

 

 

 

Tenant shall operate its business on the Property and

maintain the Premises in compliance with all federal, state and local laws,

regulations and requirements relating to the discharge of air pollutants, water

pollutants or wastewater or otherwise relating to the environment or “Hazardous

Substances” (“Environmental Laws”).  The

term “Hazardous Substances” means all hazardous or toxic substances, materials

or wastes, including but not limited to, those substances identified as

“hazardous substances” under the Comprehensive Environmental Response,

Compensation and Liability Act of 1980, as amended from time to time; any oil or

petroleum products; asbestos; PCBs; and any substances, materials or wastes

that are or become regulated under Environmental Laws.  Tenant shall use, keep, store and dispose of

all Hazardous Substances in compliance with all Environmental Laws.

 

Tenant shall give Landlord prompt written notice of

any instituted or threatened action, proceeding or claim alleging a violation

of Environmental Laws or Hazardous Substances contamination at or affecting the

Property.  Tenant shall also give

Landlord prompt written notice of any condition or occurrence at the Property

which constitutes a violation of Environmental Laws or would justify a demand

for removal or remediation under Environmental Laws.

 

Within ten (10) days of request, Tenant shall make

available to Landlord or any prospective purchaser or mortgagee: (1) copies of

any and all Material Safety Data Sheets for all products which require same;

(2) copies of all permits and approvals required under Environmental Laws for

the conduct of Tenant’s business at the Property; (3) a statement that Tenant

has no notice or knowledge of the presence of Hazardous Substances on the

Property that could form the basis for cleanup, remedial, removal or

restoration work under Environmental Laws, and (4) such other environmental or

related information as reasonably requested.

 

If Tenant breaches its obligations under this Article, or if the

presence of Hazardous Substances on the Property caused or permitted by Tenant

which results in contamination of the Property or increases Landlord’s cost of

renovating and/or repairing the Property, or if contamination of the Property

by Hazardous Substances otherwise occurs for which Tenant is legally

responsible, then Tenant shall indemnify, defend and hold Landlord, its

officers, directors, shareholders, members, partners, employees and trustees or

its agents harmless from and against any and all claims, judgments, damages,

penalties, fines, costs, liabilities or losses (including, without limitation,

sums paid in settlement or defense of claims, attorneys’ fees, consultant fees

and expert fees) which arise before or after the Lease termination as a result

of such contamination.  This

indemnification of Landlord by Tenant includes, without limitation, 

 

15

costs incurred in connection with any investigation of site conditions

or any cleanup, remedial, removal or restoration work required by any federal,

state or local government agency or political subdivision or private party.

 

Without limiting the foregoing, if the presence of any

Hazardous Substances on the Property caused or permitted by Tenant results in

any contamination of the Property, Tenant, at its sold expense, shall promptly

take all actions necessary to return the Property to the condition existing

prior to the introduction of any such Hazardous Substances to the Property.

 

Landlord shall not cause or intentionally allow the presence of

Hazardous Substances in the Premises that would be in violation of

Environmental Laws.  Landlord agrees to

indemnify, defend and hold Tenant, its officers, directors, partners,

shareholders, employees and agents harmless from and against any and all

claims, judgments, damages, penalties, fines, costs, liabilities or losses

which arise from the presence of Hazardous Substances in the Premises, which

exists as of the Commencement Date of this Lease, (including, without

limitation, sums paid in settlement or defense of claims, attorney fees,

consultant fees and expert fees) or which is caused or intentionally allowed on

the Property by Landlord, with the exception of the presence of any Hazardous

Substances placed or intentionally allowed by Tenant.  This indemnification of Tenant by Landlord includes, without limitation,

costs in connection with any investigation of site condition on any cleanup,

remedial, removal or restoration work required by any federal, state or local

government agency or political subdivision or private party.

 

The foregoing indemnity and obligations shall survive the expiration or

earlier termination of this Lease. 

Landlord and its agents shall have the right, but not the duty, to

inspect the Property at any time to determine whether Tenant is complying with

the terms of this Lease.

 

Exhibit

“C”

Work

Letter.

 

Tenant to accept space as is.

 

 

16

 

 

 

 

 

EXHIBIT

“D”

 

LEGAL

DESCRIPTION

 

 

 

17United States Department of Agriculture

Exhibit

10.12

 

United

States Department of Agriculture

Rural

Development

 

Rural

Business-Cooperative Service - Rural Housing Service - Rural Utilities Service

Washington,

DC  20250

 

VALUE-ADDED

AGRICULTURAL PRODUCT MARKET DEVELOPMENT GRANT

AGREEMENT

(VADG)

 

This Grant Agreement (Agreement) dated September 20, 2001, between

Dakota Corn Growers Cooperative d/b/a Great Plains Ethanol LLC (Grantee), and

the United States of America, acting through the Rural Business-Cooperative

Service of the Department of Agriculture (Grantor), for $401,704 in grant funds

under the VADG program, delineates the agreement of the parties.  NOW, THEREFORE, in consideration of the

grant;

 

The parties agree that:

 

1.                                       All the terms and provisions of the

application submitted by the Grantee for this VADG grant, including any

attachments or amendments, are incorporated and included as part of this

Agreement.  Any changes to these

documents or this agreement must be approved in writing by the Grantor.

 

2.                                       As a condition of the Agreement, the

Grantee certifies that it is in compliance with and will comply in the course

of the Agreement with all applicable laws, regulations, Executive Orders, and

other generally applicable requirements, which are incorporated into this

agreement by reference, and such other statutory provisions as are specifically

contained herein.  The Grantee will

comply with title VI of the Civil Rights Act of 1964, section 504 of the

Rehabilitation Act of 1973, and Executive Order 12250;

 

3.                                       The provisions of 7 CFR part 3015,

“Uniform Federal Assistance Regulations,” part 3016, “Uniform Administrative

Requirements for Grants and Cooperative Agreements to State and Local

Governments” or part 3019, “Uniform Administrative Requirements for Grants and

Agreements with Institutions of Higher Education, Hospitals, and Other

Nonprofit Organizations,” as applicable are incorporated herein and made a part

hereof by reference.

 

FURTHER, the Grantee agrees that it will:

 

1.                                       Not use grant funds to plan,

repair, rehabilitate, acquire, or construct a building or facility (including a

processing facility); or to purchase, rent, or install fixed equipment.

 

 

2.                                       Use grant funds only for the

purposes and activities specified in the proposal approved by the Agency

including the approved budget.  Any uses

not provided for in the approved budget must be approved in writing by the

Agency in advance of obligation by the Grantor.

 

3.                                       Submit a feasability study,

business operations plans, and other studies and plans required by the Grantor

if any part of the grant will be used to establish a working capital account.

 

4.                                       Deliver the results of a study or

activity to the Grantor upon completion of each task outlined in the

proposal.  These include, but are not

limited to, feasibility studies, marketing plans, business operations plans,

articles of incorporation and bylaws, and accounting of how working capital

funds were spent.  All items delivered

to the Grantor will be held in confidence to the extent provided by law.

 

5.                                       Request any cash advances in the

minimum amount needed and timed to the actual, immediate cash requirements for

carrying out the grant purpose. 

Standard Form 270, “Request for Advance or Reimbursement,” will be used

for this purpose.

 

6.                                       Submit a Standard Form 269,

“Financial Status Report” and list expenditures according to agreed upon budget

categories on a semi-annual basis. 

Reports are due by April 30 and October 30 after the grant is awarded.

 

7.                                       Provide periodic reports as

required by the Grantor.  A financial

status report and a project performance report will be required on a

semi-annual basis (due April 30 and October 30).  The financial status report must show how grant funds and

matching funds have been used to date and project the funds needed and their

purposes for the next quarter.  A final

report may serve as the last performance report.  The Grantee shall constantly monitor performance to ensure that

time schedules are being met and projected goals by time periods are being

accomplished.  The project performance

reports shall include the following:

 

a.                                       A comparison of actual

accomplishments to the objectives for that period.

 

b.                                      Reasons why established objectives

were not met, if applicable.

 

c.                                       Reasons for any problems, delays,

or adverse conditions which will affect attainment of overall program

objectives, prevent meeting time schedules or objectives, or preclude the

attainment of particular objectives during established time periods.  This disclosure shall be accomplished by a

statement of the action taken or planned to resolve the situation.

 

d.                                      Objectives and timetables

established for the next reporting period.

 

e.                                       The final report will also address

the following:

 

2

 

 

 

(i)                                     What have been the most challenging

or unexpected aspects of this program?

 

(ii)                                  What advice you would give to other

organizations planning a similar program. 

These should include strengths and limitations of the program.  If you had the opportunity, what would you

have done differently?

 

(iii)                               If an innovative approach was used

successfully, the grantee should describe their program in detail so that other

organizations might consider replication in their areas.

 

8.                                       Collect and maintain data on

producer-members by race, sex, and national origin.  As required by the Grantor, the Grantee must ensure that their

recipients also collect and maintain data on beneficiaries by race, sex, and

national origin as required by title VI of the Civil Rights Act of 1964 and

must be provided to the Agency for compliance review purposes.

 

9.                                       Provide Financial Management

Systems which will include:

 

a.                                       Records that identify adequately

the source and application of funds for grant-supported activities.  Those records shall contain information

pertaining to grant awards and authorizations, obligations, unobligated

balances, assets, liabilities, outlays, and income;

 

b                                         Effective control over and

accountability for all funds, property, and other assets.  Grantees shall adequately safeguard all such

assets and shall ensure that they are used solely for authorized purposes;

 

c.                                       Accounting records supported by

source documentation; and

 

d.                                      Grantee tracking of fund usage and

records that show matching funds and grant funds are used in equal

proportions.  The grantee will provide

verifiable documentation regarding matching fund usage, i.e., bank statements

or copies of funding obligations from the matching source.

 

10.                                 Retain financial records,

supporting documents, statistical records, and all other records pertinent to

the grant for a period of at least 3 years after grant closing, except that the

records shall be retained beyond the 3-year period if audit findings have not

been resolved.  Microfilm or photocopies

or similar methods may be substituted in lieu of original records.  The Grantor and the Comptroller General of

the United States, or any of their duly authorized representatives, shall have

access to any books, documents, papers, and records of the Grantee’s which are

pertinent to the specific grant program for the purpose of making audits,

examinations, excerpts, and transcripts.

 

11.                                 Not encumber, transfer or dispose

of the equipment or any part thereof, acquired wholly or in part with grant

funds without the written consent of the Grantor.

 

3

 

12.                                 Not duplicate other program

purposes for which monies have been received, are committed, or are applied to

from other sources (public or private).

 

Grantor agrees to make available to Grantee for the purpose of this

Agreement funds in an amount not to exceed the Grant Funds.  The funds will be reimbursed or advanced

based on submission of Standard Form 270.

 

IN WITNESS WHEREOF, Grantee has this day authorized and caused this

Agreement to be executed by

 

	

  Attest

  
	

   

  
	

  By

  	

  /s/ Darrin Ihnen

  	

   

  
	

   

  	

  (Grantee)

  	

   

  
	

   

  	

   

  
	

  (Title)

  	

  President - Dakota Corn Processors Coop

  d/b/a Great Plains Ethanol, LLC

  
	

   

  	

   

  
	

  UNITED STATES OF AMERICA

  	

   

  
	

  RURAL BUSINESS-COOPERATIVE SERVICE

  	

   

  
	

   

  	

   

  
	

  By

  	

  /s/ Lynn D. Jensen

  	

   

  
	

   

  	

  (Grantor) 

  Lynn D. Jensen

  	

   

  
	

   

  	

   

  	

   

  
	

  (Title)

  	

  State Director Rural Development

  
				

 

4

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