Document:

exv4w4

 

Exhibit 4.4

ESCROW AGREEMENT

PART II

     THIS ESCROW AGREEMENT PART II (this “Agreement” or “Escrow Agreement Part II”) is made this
           day of                     , 2008, by and between Amaizing Energy Holding Company, LLC, an Iowa
limited liability company (the “Company”), and Smith Hayes Financial Services Corporation, a
Nebraska corporation and registered broker dealer (“SHFSC”), and Bank Iowa and The Security
National Bank of Sioux City, Iowa, together serving as the escrow agent (the “Escrow Agent”).

W I T N E S S E T H:

     WHEREAS, the Company proposes to offer a minimum of $50,000,000 and a maximum of $120,000,000
of its Membership Units (the “Units”), in an offering (the “Offering”) conducted pursuant to a
registration statement (the “Registration Statement”) filed or to be filed with the Securities and
Exchange Commission (the “Commission”) and various states, including, without limitation, the
states of Illinios, Iowa, Kansas, Nebraska, New York, Missouri, South Dakota, and Wisconsin, and
potentially pursuant to exemptions in other states;

     WHEREAS, SHFSC has been engaged by the Company to sell the Units to retail purchasers pursuant
to a Placement Agent Agreement dated October 3, 2007;

     WHEREAS, SHFSC intends to sell the units as the Company’s agent on a minimum maximum
best-efforts basis in a public offering (the “Offering”);

     WHEREAS, the Company and SHFSC desire to establish an escrow account in which funds received
from subscribers will be deposited pending completion of the escrow period;

     WHEREAS, the Company will allow investors in the Offering to deliver the purchase price of the
subscribed Units in installments;

     WHEREAS, the Company desires to comply with the requirements of federal and state securities
laws and regulations, and desires to protect the investors (collectively referred to herein as the
“Subscribers” or individually referred to herein as a “Subscriber”) in the Offering by providing,
under the terms and conditions herein set forth, for the return to Subscribers of the money which
they may pay on account of purchases of Units in the Offering if the “Minimum Escrow Deposit” (as
hereinafter defined) is not deposited with the Escrow Agent in accordance with the terms of this
Agreement; and

     WHEREAS, the Company intends to use this Escrow Agreement Part II for subscription proceeds of
no less than $50,000,000 raised to capitalize the construction of the Company’s Denison, Iowa
ethanol plant expansion project.

     NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good
and valuable consideration, the receipt and sufficiency of which is acknowledged, the

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parties agree as follows:

     1. Acceptance of Appointment. Escrow Agent hereby agrees to act as the Escrow Agent
under this Agreement. The Escrow Agent shall have no duty to enforce any provision hereof
requiring performance by any other party hereunder.

     2. Establishment of Escrow Account. An escrow account (the “Escrow Account”) is
hereby established with the Escrow Agent for the benefit of the Subscribers in the Offering.
Except as specifically provided in this Agreement, the Escrow Account shall be created and
maintained subject to the customary rules and regulations of the Escrow Agent pertaining to such
accounts.

     3. Ownership of Escrow Account. Until such time as the funds deposited in the Escrow
Account (the “Escrow Funds”) shall equal the Minimum Escrow Deposit (as hereinafter defined) and
this Agreement is terminated pursuant to Section 6 and Section 7 below, the funds deposited in the
Escrow Account by the Company shall not become the property of the Company or be subject to the
debts of the Company or any other person, but shall be held by the Escrow Agent solely for the
benefit of the Subscribers.

     4. Deposit of Proceeds. Once the Company has elected to stop depositing Offering
proceeds into escrow pursuant to Escrow Agreement Part I and to begin depositing Offering proceeds
into escrow pursuant to this Escrow Agreement Part II, all proceeds and notes from subscriptions in
the Offering shall, upon receipt by the Company or SHFSC, be promptly delivered by the Company to
the Escrow Agent, endorsed (if appropriate) to the order of the Escrow Agent, together with an
appropriate written statement setting forth the name, address and social security number of each
Subscriber, the number of Units subscribed for, and the amount paid by each such Subscriber. Any
such proceeds deposited with the Escrow Agent in the form of uncollected checks shall be promptly
presented by the Escrow Agent for collection through customary banking and clearing house
facilities. SHFSC shall promptly transmit to the Escrow Agent upon receipt any and all checks,
drafts, and money orders received from prospective purchasers of Units together with a copy of the
executed Subscription Agreement. In transmitting such checks, drafts, orders and Subscription
Agreements, to the Escrow Agent, SHFSC shall provide a notice to the Company stating among other
things, the name of the purchaser, current address, the date of the subscription Agreement and the
amount of the investment to the Company, on either the day of receipt or before noon of the day
after receipt, for the purpose of obtaining the Company’s acceptance of the Subscription Agreement
and for transmittal of such checks, drafts, money orders.

     5. Investment of Escrow Funds. The Escrow Funds shall be credited by the Escrow Agent
and recorded in the Escrow Account. The Escrow Agent shall be permitted, and is hereby authorized
and directed to deposit, transfer, hold and invest all Escrow Funds, including principal and
interest, in deposit accounts, bank money market accounts, bank certificates of deposit, short term
Federal Government Obligations or obligations issued and/or guaranteed as to principal and interest
by agencies or instrumentalities of the U.S. Government or such other securities as may be
permitted by the Financial Industry Regulatory Authority (FINRA) pursuant to NASD Notices to
Members 84-7, 87-64, 87-61, 98-4 and any subsequent notices issued by FINRA, or No Action Letters
or interpretations regarding the investment of subscription proceeds in pubic or private

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offerings subject to 10b-9 and 15c2-4 under the Securities Exchange Act of 1934. Any interest
received by Escrow Agent with respect to the Escrow Funds shall be paid pursuant to the terms of
this Agreement.

     6. Termination of Escrow. Unless sooner terminated pursuant to Section 7 below, this
Agreement and the Escrow Account created hereunder shall terminate as of the date, which is one
year and one day following the date upon which the Commission authorizes the Offering (the
“Offering Effective Date”) or later if the Commission, upon the request of the Company, extends the
effectiveness of the Offering beyond the initial one year and one day period of effectiveness (the
“Termination Date”); provided, however, that if prior to the Termination Date, the Company has
accepted subscriptions for Units equal to the Minimum Escrow Deposit, and the Company has advised
the Subscribers for those Units to remit to the Escrow Agent the balance of the purchase price,
then the Escrow Account may continue beyond the Termination Date until all amounts payable by such
Subscribers have been paid and the conditions for releasing the Escrow Funds have been satisfied.
In no event shall this date be later than three (3) months following the Termination Date.

     7. Disposition of Escrow Funds. The Escrow Agent shall have the following duties and
obligations under this Agreement:

     A. The Escrow Agent shall send to the Company and SHFSC every seven (7) days a written
itemized notice acknowledging the receipt and amount of the Escrow Funds.

     B. The Escrow Agent shall give the Company and SHFSC prompt written notice when the
Escrow Funds, exclusive of interest, equal or exceed ten percent (10%) of the Minimum Escrow
Deposit, which is defined below. Following receipt of such notice, the Company will advise
the Subscribers for Units to remit to the Escrow Agent the balance of the purchase price.
The Subscriber shall have thirty (30) days from the time the Subscriber receives notice from
the Company to remit to the Escrow Agent the balance of the purchase price. The Escrow
Agent shall give the Company and SHFSC prompt written notice when the Escrow Funds,
exclusive of interest, equal or exceed the Minimum Escrow Deposit.

     C. The Escrow Funds shall only be disbursed to the Company in the event that each and
every condition of this paragraph shall have been met. At the time that: (a) the Escrow
Funds, exclusive of interest, equal or exceed $50,000,000 (the “Minimum Escrow Deposit”);
(b) the Company has received a written debt financing commitment sufficient for the
financing of the expansion of the Denison Plant; (c) the Escrow Agent shall have received
written confirmation from the Company and SHFSC that the Company has affirmatively elected
in writing to terminate this Agreement; (d) the Escrow Agent shall have provided to SHFSC
and each state securities department in which the Company has registered its securities, as
communicated to the Escrow Agent by the Company, an affidavit stating that the requirements
of this Subsection 7.C to Escrow Agreement Part II have been satisfied; and (e) in each
state in which consent is required, the state securities commissioners have consented to
release of the funds on deposit, and (f) SHFSC has provided to the Escrow Agent and the
Company a written notice that SHFSC approves of

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the release of the Escrow Funds to the Company, then this Agreement shall terminate,
and the Escrow Agent shall promptly disburse the Escrow Funds, including interest as
provided in this Agreement to the Company to be used in accordance with the provisions set
out in the Registration Statement. Upon completing such disbursement, the Escrow Agent
shall be completely discharged and released of any and all further responsibilities under
this Escrow Agreement Part II.

     D. In the event the Escrow Funds do not equal or exceed the Minimum Escrow Deposit on
or before the Termination Date, the Escrow Agent shall return to each of the Subscribers in
the Offering as promptly as possible after the Termination Date and on the basis of its
records pertaining to the Escrow Account: (a) the sum which each Subscriber initially paid
on account of such Subscriber’s subscription for Units, and (b) each Subscriber’s portion of
the total interest earned on the Escrow Account as of the Termination Date. Computation of
any Subscriber’s share of the net interest earned on the Escrow Account will be a weighted
average based on the ratio of such Subscriber’s deposit in the Escrow Account to all such
Subscribers’ deposits therein, and upon the length of time that such deposit was held in the
Escrow Account as compared to all such deposits. All computations with respect to each
Subscriber’s allocable share of net interest shall be made by the Escrow Agent, which
determinations shall be final and conclusive. Any amount paid or payable to a Subscriber
pursuant to this Section shall be deemed to be the property of such Subscriber, free and
clear of any and all claims of the Company or its agents or creditors; and any further
purchase obligation of such Subscriber in connection with the Offering shall thereupon be
deemed, ipso facto, to be cancelled without any further liability. At such time as the
Escrow Agent shall have made all of the payments called for in this Section, the Escrow
Agent shall be completely discharged and released of any and all further responsibilities
hereunder, except that the Escrow Agent shall be required to prepare and issue an IRS Form
1099 to each Subscriber.

     E. In the event the Company offers its Subscribers the right to withdraw and terminate
their subscription agreements pursuant to a rescission offer (“Rescission Offer”) the Escrow
Agent shall return to each rescinding Subscriber, as promptly as possible on the basis of
its records pertaining to the Escrow Account: (a) the sum which each rescinding Subscriber
initially paid in on account of subscriptions for the Units in the Offering and (b) each
rescinding Subscriber’s portion of the total interest earned on the Escrow Account as of the
Termination Date. Computation of any rescinding Subscriber’s share of the net interest
earned will be a weighted average based on the proportion of such rescinding Subscriber’s
deposit in the Escrow Account from the Offering to all such Subscribers’ deposits held by
the Escrow Agent and upon the length of time in days such deposit was held in the Escrow
Account as compared to all such deposits. All computations with respect to each rescinding
Subscriber’s allocable share of net interest shall be made by the Escrow Agent, which
determinations shall be final and conclusive. Any amount paid or payable to a rescinding
Subscriber pursuant to this paragraph shall be deemed to be the property of such rescinding
Subscriber, free and clear of any and all claims of the Company or its agents or creditors;
and the respective purchases of the Units made and entered into in the Offering shall
thereupon be deemed, ipso facto, to be cancelled without any further liability of the
rescinding Subscribers or any of them to pay for the Units. At such time as

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the Escrow Agent shall have made all the payments called for in this paragraph, the
Escrow Agent shall continue to be bound by the other provisions of this Agreement, except
that Escrow Agent shall be required to prepare and issue a single IRS Form 1099 to each
rescinding Subscriber.

     8. Agreement with Escrow Agent. To induce the Escrow Agent to act hereunder, it is
agreed by the Company that:

     A. The Company will deliver a copy of the Registration Statement to the Escrow Agent
upon notice of the Securities and Exchange Commission’s declaration of effectiveness. The
Escrow Agent will have no responsibility to examine the Registration Statement with regard
to the Escrow Account or otherwise.

     B. The sole duty of the Escrow Agent, other than as herein specified, shall be to
receive the Escrow Funds and hold them subject to disbursement in accordance herewith. The
Escrow Agent shall be under no duty to determine whether the Company is complying with the
requirements of this Agreement in tendering to the Escrow Agent proceeds from sales of or
subscriptions for Units. The Escrow Agent may conclusively rely upon and shall be protected
in acting in reliance upon, any statement, certificate, notice, request, consent, order or
other document believed by it to be genuine and to have been signed or presented by the
proper party or parties. The Escrow Agent shall have no duty or liability to verify any
such statement, certificate, notice, request, consent, order or other document, and its sole
responsibility shall be to act only as expressly set forth in this Agreement. The Escrow
Agent shall be under no obligation to institute or defend any action, suit or proceeding in
connection with this Agreement unless first indemnified to its satisfaction. The Escrow
Agent may consult counsel in respect of any question arising under this Agreement, and the
Escrow Agent shall not be liable for any action taken or omitted in good faith upon advice
of such counsel.

     C. The Company hereby indemnifies and holds harmless the Escrow Agent from and against
any and all loss, liability, cost, damage and expense, including, without limitation,
reasonable counsel fees, which the Escrow Agent may suffer or incur by reason of any action,
claim or proceeding brought against the Escrow Agent arising out of or relating to this
Agreement or any transaction to which this Agreement relates, unless such action, claim or
proceeding is the result of the gross negligence or willful misconduct of the Escrow Agent.

     9. Resignation and Removal of Escrow Agent; Successors. The Escrow Agent may resign
upon thirty (30) days advance written notice to the Company. If a successor Escrow Agent is not
appointed within the 30-day period following such notice, the Escrow Agent may petition any court
of competent jurisdiction to name a successor Escrow Agent. Any commercial banking institution or
trust company with which the Escrow Agent may merge or consolidate, and any commercial banking
institution or trust company to which the Escrow Agent transfers all or substantially all of its
corporate trust business shall be the successor Escrow Agent without further act.

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     10. Fees and Expenses of Escrow Agent. The Company agrees to pay the Escrow Agent the
fees specified in the Escrow Agent’s fee schedule attached hereto as EXHIBIT A, in the
manner set forth therein, unless otherwise agreed to by the parties in writing. The parties
further agree that such fees shall be paid from interest on the Escrow Account and not from the
principal. In the event the interest on the Escrow Account is insufficient to satisfy the full
amount of fees payable hereunder, the Company shall be solely responsible for the payment of such
fees, and the Escrow Agent shall not seek payment of the fees from SHFSC or subscribers or apply
any principal deposited by subscribers in the Escrow Account against such fees. The fee agreed
upon herein is intended as full consideration for the Escrow Agent’s services as contemplated by
this Agreement; provided, however, that in the event (a) the Escrow Agent renders
any material service not contemplated in this Agreement, (b) any material controversy arises
hereunder, or (c) the Escrow Agent is made a party to any litigation pertaining to this Agreement,
or the subject matter hereof, then the Escrow Agent shall be reasonably compensated for such
extraordinary services and reimbursed for all costs and expenses, including reasonable attorney’s
fees, occasioned by any delay, controversy, litigation or event, and the same shall be recoverable
from the Company, but not from the Escrow Account. The Company agrees to pay these sums upon
demand and the Escrow Agent may deduct such sums from the interest on the Escrow Account only and
not from the principal deposited in the Escrow Account.

     11. Notices. All notices, requests, demands, and other communications under this
Agreement shall be in writing and shall be deemed to have been duly given (a) on the date of
service if served personally on the party to whom notice is to be given, (b) on the day of
transmission if sent by facsimile transmission to the facsimile number given below, and telephonic
confirmation of receipt is obtained promptly after completion of transmission, (c) on the next day
on which such deliveries are made in Denison, Iowa, when delivery is to Federal Express or similar
overnight courier or the Express Mail service maintained by the United States Postal Service, or
(d) on the fifth day after mailing, if mailed to the party to whom notice is to be given, by first
class mail, registered or certified, postage prepaid, and properly addressed, return receipt
requested, to the party as follows:

If to Escrow Agent:

Bank Iowa

Attn: Scot Brus

P.O. Box 40

Denison, IA 51442

Fax: (712) 263-6807

Phone: (712) 263-9361

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Security National Bank of Sioux City, Iowa

Attn: Joe Twidwell

601 Pierce Street

Sioux City, IA 51101

Fax: (712) 277-6713

Phone: (712) 277-6500

If to the Company:

Amaizing Energy Holding Company, LLC

2404 West Highway 30

Denison, IA 51442

Attn: Sam Cogdill, CEO

Fax: 712-263-4134

Phone: 712-263-2676

with a required copy to:

Brown, Winick, Graves, Gross, Baskerville and Schoenebaum, P.L.C.

666 Grand Avenue, Suite 2000

Des Moines, IA 50309

Attention: Catherine Cownie

Fax: (515) 283-0231

Phone: (515) 242-2490

If to SHFSC:

Cindee Devall, or President

SMITH HAYES FINANCIAL SERVICES CORPORATION

Suite 200

Centre Terrace

1225 L Street

Lincoln, Nebraska 68508

Fax: (402) 476-6909

Phone: (402) 476-3000

     12. Governing Law. This Agreement shall be construed, performed, and enforced in
accordance with, and governed by, the internal laws of the State of Iowa, without giving effect to
the conflicts of laws provisions.

     13. Successors and Assigns. Except as otherwise provided in this Agreement, no party
hereto shall assign this Agreement or any rights or obligations hereunder without the prior written
consent to the other parties hereto, and any attempted assignment without such prior written
consent shall be void and of no force and effect. This Agreement shall inure to the benefit of,
and shall be binding upon, the successors and permitted assigns of the parties hereto.

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     14. Severability. In the event that any part of this Agreement is declared by any
court or other judicial or administrative body to be null, void, or unenforceable, said provision
shall survive to the extent it is not so declared, and all of the other provisions of this
Agreement shall remain in full force and effect.

     15. Further Assurances. Each of the parties shall execute such documents and other
papers and take such further actions, as may be reasonably required or desirable to carry out the
provisions hereof and the transactions contemplated hereby.

     16. Amendments. This Agreement may be amended or modified, and any of the terms,
covenants, representations, warranties, or conditions hereof may be waived, only by a written
instrument executed by the parties hereto, or in the case of a waiver, by the party waiving
compliance. Any waiver by any party of any condition, or of the breach of any provision, term,
covenant, representation, or warranty contained in this Agreement, in any one or more instances,
shall not be deemed to be nor construed as a further or continuing waiver of any such conditions,
or of the breach of any other provision, term, covenant, representation or warranty of this
Agreement.

     17. Entire Agreement. This Agreement contains the entire understanding among the
parties hereto with respect to the transactions contemplated hereby and supersedes and replaces all
prior and contemporaneous agreements and understandings, oral or written, with regard to such
Escrow Account.

     18. Section Headings. The section headings in this Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this Agreement.

     19. Counterparts. This Escrow Agreement Part II may be executed in two or more
counterparts, each of which shall be deemed an original but all of which together shall constitute
one and the same instrument.

     IN WITNESS WHEREOF, the parties hereto have hereunto affixed their signatures as of the day
and year first written above.

	 	 	 	 	 	 	 	 	 	 	 
	THE COMPANY:	 	 	 	ESCROW AGENT:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	AMAIZING ENERGY HOLDING 

COMPANY, LLC	 	 	 	BANK IOWA	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 

     Sam Cogdill, CEO
	 	 	 	 	 

     Scot Brus, President
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	SHFSC	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	SMITH HAYES FINANCIAL SERVICES 

CORPORATION	 	 	 	SECURITY NATIONAL
BANK	 	 

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	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 
	 	 	 	 	 	 	 
	 

	 	     Alan Moore, President
	 	 	 	 	 	     Joe Twidwell, Senior Vice President
	 	 
	 

	 	 	 	 	 	 	 	                                & Trust Officer	 	 

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EXHIIBT A

[Attach Escrow Agent’s Fee Schedule]

10exv10w39

 

Exhibit 10.39

September 24, 2007

Mr. Sam Cogdill

Chairman

Amaizing Energy Holding Company, LLC

2404 West Highway 30

Denison, IA 51442

Dear Sam:

This is to confirm the engagement of William Blair & Company, L.L.C. (“Blair”) by Amaizing Energy
Holding Company, LLC (the “Company”) to render certain investment banking services in connection
with a possible sale by the Company of securities (the “Offering”) which could include, without
limitation, equity securities of the Company; options, warrants or rights to acquire equity
securities or securities convertible into or exchangeable for equity securities of the Company.

	 	1.	 	Services to Be Rendered. Blair will perform such of the following
services in connection with the Offering as the Company may reasonably request:

	 	a.	 	Blair will familiarize itself to the extent it deems appropriate with
the business, operations, financial condition and prospects of the Company;
	 
	 	b.	 	Blair will identify a number of possible investors, which might have an
interest in evaluating participation in the Offering;
	 
	 	c.	 	Upon authorization from the Company, Blair will contact one or more of
such possible investors;
	 
	 	d.	 	Blair will assist the Company and its Board of Directors in evaluating
proposals received from any such possible investors;
	 
	 	e.	 	Blair will participate with the Company and its counsel in negotiations
relating to the Offering; and
	 
	 	f.	 	Blair will participate in meetings of the Board of Directors of the
Company (such participation to be in person or by telephone, as appropriate) at
which the Offering is to be considered and, as appropriate, will report to the
Board of Directors with respect thereto.

In connection with Blair’s activities on the Company’s behalf, the Company agrees to
cooperate with Blair and will furnish to, or cause to be furnished to, Blair all
information and data concerning the Company (the “Information”) which Blair reasonably
deems appropriate for purposes of its involvement in the Offering or otherwise and will
provide Blair with access to the Company’s officers, directors, employees and advisors.
The Company represents and warrants that all Information made available to Blair by the
Company with respect to a Offering will be complete and correct and that any
projections, forecasts or other Information provided by the Company to Blair will have
been prepared in good faith and will be based upon reasonable assumptions. The Company
agrees to promptly notify Blair if the Company believes that any Information, which was
previously provided to Blair, has become materially misleading. The Company
acknowledges and agrees that, in rendering its services hereunder, Blair will be using
and relying on the Information (and information available from public sources and other
sources deemed reliable by Blair) without

 

 

	 	 	 	 	 
	Amaizing Energy Holding Company, LLC

	 	-2-
	 	September 24, 2007

independent verification thereof or independent appraisal or evaluation of the Company,
or any party to the transaction. Blair does not assume responsibility for the accuracy
or completeness of the Information, any offering documents or any other information
regarding the Company. If all or any portion of the business of the Company is engaged
in through subsidiaries or other affiliates, the references in this paragraph to the
Company will, when appropriate, be deemed also to include such subsidiaries or other
affiliates.

It is further understood that any advice rendered by Blair during the course of
participating in negotiations and meetings of the Board of Directors of the Company, as
well as any written materials provided by Blair, are intended solely for the benefit and
confidential use of the Board of Directors and will not be reproduced, summarized,
described or referred to or given to any other person for any purpose without Blair’s
prior written consent.

Blair acknowledges that no sales of securities may be made pursuant to the Company’s
registration statement as filed with the SEC, and as may be amended from time to time,
until the SEC and each state securities bureau declares the registration statement
effective. Blair is a registered broker-dealer under the Securities Exchange Act of
1934, as amended.

	 	2.	 	Fees. The Company agrees to pay Blair a retainer fee of $50,000 upon
execution of this letter agreement. In addition, in the event that the Offering is
consummated the Company will pay or cause to be paid to Blair a fee (the “Placement
Fee”) equal to a percentage of the total consideration received by the Company and its
stockholders as a result of such consummation (the “Transaction Consideration”) as
outline below, less the amount of the retainer previously paid:

	 	 	 
	Placement Fee Calculation Table
	Transaction	 	 
	Consideration	 	 
	(in millions)	 	Cash Fee
	$0 to $20.0

	 	6.0% of Transaction Consideration
	 
	 	 
	$20.1 to $30.0

	 	$1.2 million plus 5% on amounts between $20.1 and $30.0
million
	 
	 	 
	$30.1 to $40.0

	 	$1.7 million plus 4.0% on amounts between $30.1 and $40.0
million
	 
	 	 
	Amounts in excess
of $40.0 million

	 	$2.1 million plus 3.5% on amounts in excess of $40.0 million

For purposes of this letter agreement, the term “Transaction Consideration” will mean
the total amount of cash and the fair market value of the other property paid or payable
directly or indirectly to the Company, any of its security holders or any of its
directors or executive officers in connection with the Offering. Transaction
Consideration will exclude cash raised by the Company from non-institutional investors
pursuant to the Company’s retail equity offering, all as more fully described in the
Company’s S-1 registration statement on file with the Securities and Exchange Commission
and the investors listed on Schedule A of this engagement agreement (the “Schedule A
Investors”). Accordingly, Transaction Consideration for the purpose of computing the
Placement Fee will exclude equity raised by Smith Hayes Financial Services Corporation
pursuant to its agreement to render certain investment banking services on behalf of the
Company for the purpose of raising equity from non-institutional investors in the
Company’s retail equity offering described between the Company and Smith Hayes Financial
Services Corporation dated September ___, 2007.

The exclusion of Transaction Consideration purchased by Schedule A investors shall apply
to the first $5.0 million of Transaction Consideration provided by such investors and
only to the extent the

 

 

	 	 	 	 	 
	Amaizing Energy Holding Company, LLC

	 	-3-
	 	September 24, 2007

Company elects to forego Transaction Consideration sourced pursuant to Blair’s
engagement hereunder from other investors. For the purposes of this letter agreement,
“non-institutional investors” shall mean any investor that based its decision to invest
in the Company on information received at a retail equity drive meeting conducted by the
Company and Smith Hayes Financial Services Corporation.

The Placement Fee will be payable in full upon the closing of the Offering; provided,
however, that if the Transaction Consideration includes consideration the receipt of
which is contingent upon the passage of time or the occurrence of some future event or
circumstance (“Contingent Value”), the portion of the Placement Fee attributable to such
Contingent Value will be paid to Blair at the earlier of (x) the date on which payment
of such Contingent Value is due or (y) the time that such Contingent Value can be
determined or reasonably estimated.

If any portion of the Transaction Consideration is received in the form of securities
for which a public trading market existed prior to consummation of the Offering, the
value of such securities, for purposes of calculating the Transaction Consideration,
will be determined by the closing or last sales price for such securities on the last
trading day prior to the consummation of the Offering. If such securities do not have
an existing public trading market, the value of the securities will be the mutually
agreed upon fair market value thereof provided that promissory notes or other debt
obligations will be valued at the face amount thereof.

	 	3.	 	Expenses. The Company will reimburse Blair for all out-of-pocket
expenses (including fees and expenses of its counsel and any other independent experts
retained by Blair) reasonably incurred by it in connection with its engagement
hereunder. Such reimbursement will be payable promptly upon submission by Blair of
statements to the Company.
	 
	 	4.	 	Indemnification. Blair and the Company have entered into a separate
indemnity agreement, dated the date hereof (the “Indemnity Agreement”), providing among
other things for the indemnification of Blair by the Company in connection with Losses
and Expenses (as defined in the Indemnity Agreement) in connection with Blair’s
engagement hereunder. The terms of the Indemnity Agreement are incorporated by
reference into this letter agreement.
	 
	 	5.	 	Termination. Blair’s engagement hereunder may be terminated by either
the Company or Blair at any time with or without cause, upon written notice to the
other party; provided, however, that (a) no such termination will affect Blair’s right
to expense reimbursement under Section 3, the payment of any accrued and unpaid fees
pursuant to Section 2 or the indemnification contemplated by Section 4 or the Indemnity
Agreement referred to therein and (b) if the Company, directly or indirectly,
consummates the Offering within twenty-four months following such termination with any
party (i) which Blair has identified, (ii) in respect of which Blair has rendered
advice, or (iii) with which the Company has directly or indirectly held discussions or
furnished information regarding the Company prior to such termination, then Blair will
be entitled to the full amount of the fee contemplated by Section 2.
	 
	 	6.	 	Governing Law; Jurisdiction; Waiver of Jury Trial. This letter
agreement and the Indemnity Agreement will be deemed made in New York and will be
governed by the laws of the State of New York. The Company irrevocably submits to the
jurisdiction of any court of the State of New York or the United States District Court
of the Northern District of the State of New York for the purpose of any suit, action
or other proceeding arising out of this letter agreement or the Indemnity Agreement, or
any of the agreements or transactions contemplated hereby, which is brought by or
against the Company. Each of the Company (and, to the extent permitted by law, on
behalf of the Company’s equity holders and creditors) and Blair hereby knowingly,
voluntarily and irrevocably waives any right it may have to a trial by jury in respect
of any claim based upon, arising out of or in connection with the Indemnity agreement,
this letter agreement and the transactions contemplated hereby (including, without
limitation, any Offering).

 

 

	 	 	 	 	 
	Amaizing Energy Holding Company, LLC

	 	-4-
	 	September 24, 2007

	 	7.	 	No Rights in Equityholders, Creditors. This letter agreement does not
create, and will not be construed as creating, rights enforceable by any person or
entity not a party hereto, except those entitled thereto by virtue of the indemnity
Agreement. The Company acknowledges and agrees that (a) Blair will act as an
independent contractor and is being retained solely to assist the Company in its
efforts to effect a Offering and that, Blair is not being retained to advise the
Company on, or to express any opinion as to, the wisdom, desirability or prudence of
consummating a Offering, (b) Blair is not and will not be construed as a fiduciary of
the Company or any affiliate thereof and will have no duties or liabilities to the
equityholders or creditors of the Company, any affiliate of the Company or any other
person by virtue of this letter agreement and the retention of Blair hereunder, all of
which duties and liabilities are hereby expressly waived and (c) nothing contained
herein shall be construed to obligate Blair to purchase, as principal, any of the
securities offered by the Company in the Offering. Neither equityholders nor creditors
of the Company are intended beneficiaries hereunder. The Company confirms that it will
rely on its own counsel, accountants and other similar expert advisors for legal,
accounting, tax and other similar advice.
	 
	 	8.	 	Blair; Other Activities. It is understood and agreed that Blair may,
from time to time, make a market in, have a long or short position, buy and sell or
otherwise affect transactions for customer accounts and for their own accounts in the
securities of, or perform investment banking or other services for, the Company and
other entities which are or may be the subject of the engagement contemplated by this
letter agreement. This is to confirm that possible investors identified or contacted
by Blair could include entities in respect of which Blair may have rendered or may in
the future render services.
	 
	 	9.	 	Other. This letter agreement may not be modified or amended except in
writing executed in counterparts, each of which will be deemed an original and all of
which will constitute one and the same instrument. The Company agrees that this
engagement letter will be replaced with a Placement Agency Agreement that provides for
such Offering and that contains standard representative, warranties and
indemnifications that are typical for such agreements; provided that the economic and
business provisions set for herein will be reflected in the Placement Agency Agreement.

If the foregoing correctly sets forth our agreement, please so indicate by signing below and
returning an executed copy to us. We look forward to working with you.

	 	 	 	 	 
	 	Very truly yours,

WILLIAM BLAIR & COMPANY, L.L.C.

 	 
	 	By:  	/s/ Kelly J. Martin
 	 
	 	 	Name:  	Kelly J. Martin 	 
	 	 	Title:  	Principal 	 
	 

ACCEPTED AND AGREED AS OF :

THE DATE FIRST ABOVE WRITTEN

AMAIZING ENERGY HOLDING COMPANY, LLC

	 	 	 	 	 
	By:

	 	/s/ Sam J. Cogdill
 

Name: Sam Cogdill
	 	 
	 

	 	Title: Chairman	 	 

 

 

	 	 	 	 	 
	Amaizing Energy Holding Company, LLC

	 	-5-
	 	September 24, 2007

Schedule A

Schedule A Investors include the following:

1. Amaizing Energy Cooperative

2. Capitaline Renewable Energy, LP

3. Energy Partners, LLC

4. ICM, Inc.

5. NEK-SEN Energy, LLC

6. Atlantic Energy, LLC

7. Fagen, Inc. or any of its affiliates

 

 

Amaizing Energy Holding Company, LLC

2404 West Highway 30

Denison, IA 51442

September 24, 2007

William Blair & Company, L.L.C.

222 West Adams Street

Chicago, IL 60606

Gentlemen:

In connection with your engagement by Amaizing Energy Holding Company, LLC (the “Company”) pursuant
to the letter agreement of even date herewith (the “Engagement Letter”), as the same may be
modified or amended from time to time hereafter, the Company hereby agrees to indemnify and hold
harmless William Blair & Company, L.L.C. (“Blair”) and each of the Other Indemnified Parties (as
defined below) to the fullest extent permitted by law, from and against any and all losses, claims,
damages, obligations, penalties, judgments, awards, costs, disbursements and liabilities (including
amounts paid in settlement) (collectively, “Losses”) and expenses (including, without limitation,
all fees and expenses of Blair’s and each of the Other Indemnified Parties’ counsel and all of
Blair’s and each of the Other Indemnified Parties’ reasonable travel and other out-of-pocket
expenses incurred at the Company’s request or otherwise incurred in connection with the
investigation of any pending or threatened claims or the preparation for, the defense of, or the
furnishing of evidence in, any pending or threatened litigation, investigation or proceedings,
whether or not Blair or any Other Indemnified Party is a party thereto) (collectively, “Expenses”)
based upon, arising out of or in any way relating to any Offering (as such term is defined in the
Engagement Letter) or Blair’s engagement under the Engagement Letter; provided that the Company
will have no obligation to indemnify and hold harmless Blair or any of the Other Indemnified
Parties in respect of any Losses or Expenses which are finally judicially determined to have
resulted primarily and directly from the gross negligence or bad faith of Blair in fulfilling its
duties under the Engagement Letter. The Company also agrees that neither Blair nor any of the
Other Indemnified Parties shall have any liability (whether direct or indirect, in contract or tort
or otherwise) to the Company for or in connection with such engagement, except for any Losses or
Expenses which are finally judicially determined to have resulted primarily from Blair’s gross
negligence or bad faith in fulfilling its duties under the Engagement Letter. Expenses will be
reimbursed or advanced when and as incurred promptly upon submission by Blair of statements to the
Company. The Other Indemnified Parties will mean and include (i) Blair’s affiliates, (ii) the
respective members, principals, partners, directors, officers, agents and employees of and counsel
to Blair and its affiliates, (iii) each other person, if any, controlling Blair or any of its
affiliates and (iv) the successors, assigns, heirs and personal representatives of any of the
foregoing.

If any litigation, investigation or proceeding is commenced as to which Blair proposes to demand
indemnification, Blair will notify the Company with reasonable promptness; provided,
however, that any failure by Blair to notify the Company will relieve the Company from its
obligations hereunder only to the extent the Company has been prejudiced by such failure or delay.
The Company will assume the defense of such action or proceeding, including the employment of
counsel reasonably satisfactory to

 

 

	 	 	 	 	 
	Amaizing Energy Holding Company, LLC

	 	-7-
	 	September 24, 2007

Blair or such Other Indemnified Party and the payment of the fees and expenses of such counsel. In
the event (i) Blair or such Other Indemnified Party reasonably determines that having common
counsel would present such counsel with a conflict of interest, (ii) the defendants in or targets
of any such action or proceeding include both Blair or Other Indemnified Party and the Company and
Blair or such Other Indemnified Party reasonably concludes that there may be legal defenses
available to it or Other Indemnified Parties that are different from or in addition to those
available to the Company, or (iii) the Company fails to assume the defense of the action or
proceeding or to employ counsel reasonably satisfactory to Blair or such Other Indemnified Party in
a timely manner, then Blair or such Other Indemnified Party may employ separate counsel to
represent or defend it in any such action or proceeding, and the Company will pay the reasonable
and customary fees and disbursements of such separate counsel (in addition to local counsel, as
needed) for Blair and such Other Indemnified Parties. and the Company will pay the reasonable
fees, expenses and disbursements of such counsel. The Company retains the right to participate in
the defense of such litigation, investigation or proceeding as to which Blair seeks indemnification
through counsel of the Company’s choice (the cost of which will be paid by the Company) and Blair
will reasonably cooperate with such counsel and the Company (including, to the extent possible and
consistent with its own interests, keeping the Company reasonably informed of such defense). The
Company will be liable for any settlement of any claim against Blair made with the Company’s
written consent, which consent will not be unreasonably withheld.

If, for any reason, the foregoing indemnification is unavailable to Blair or any of the Other
Indemnified Parties or is insufficient to hold them harmless in respect of any Losses or Expenses,
then the Company will contribute to the amount paid or payable by Blair or any of the Other
Indemnified Parties as a result of such Losses and Expenses in such proportion as is appropriate to
reflect the relative benefits (or anticipated benefits) to the Company and its stockholders on the
one hand and Blair and the Other Indemnified Parties on the other hand from the Offering, or if
such allocation is not permitted by applicable law, then in such proportion as is appropriate to
reflect not only the relative benefits received by the Company and its stockholders on the one hand
and Blair and the Other Indemnified Parties on the other hand, but also the relative fault of the
Company, its directors, officers, employees, agents and advisers (other than Blair) on the one hand
and Blair and the Other Indemnified Parties on the other hand, as well as any other relevant
equitable considerations. The relative benefits received (or anticipated to be received) by the
Company and its stockholders on the one hand and by Blair and the Other Indemnified Parties on the
other hand will be deemed to be in the same proportion as the Transaction Consideration (as defined
in the Engagement Letter) bears to the total fees paid to Blair pursuant to the Engagement Letter.
The relative fault of any party or other person will be determined by reference to such party’s or
person’s knowledge, access to information and opportunity to prevent or correct any misstatement,
omission, misconduct or breach of duty. In no event will the amount required to be contributed by
Blair and the Other Indemnified Parties hereunder exceed the total amount of fees paid to Blair
pursuant to the Engagement Letter. You and we agree that it would not be just and equitable if
contribution were determined by pro rata allocation or by any other method of allocation which does
not take account of the equitable considerations referred to above.

The reimbursement, indemnity and contribution obligations of the Company hereunder will (i) be in
addition to any liability which the Company may otherwise have, (ii) survive the completion or
termination of Blair’s engagement under the Engagement Letter and (iii) shall be binding upon any
successors and assigns of the Company.

In the event that any litigation, investigation or proceeding relating to the transaction
contemplated by the Engagement Letter is commenced or threatened against the Company, the Company
will not settle any such pending or threatened litigation, investigation or proceeding without
Blair’s consent (which consent will not be unreasonably withheld) unless (i) Blair, by name, and
the Other Indemnified Parties, by description, are included in any release or settlement agreement,
whether or not Blair and the Other

 

 

	 	 	 	 	 
	Amaizing Energy Holding Company, LLC

	 	-8-
	 	September 24, 2007

Indemnified Parties are named as defendants in such litigation or proceeding, (ii) Blair and the
Other Indemnified Parties are unconditionally released from all claims and liabilities asserted or
which could have been asserted in such litigation, investigation or proceeding and (iii) there is
no statement in any such release or settlement agreement as to an admission of fault, culpability
or failure to act by or on behalf of Blair or the Other Indemnified Parties.

This Indemnity Agreement will be deemed made in Illinois. The validity and interpretation of this
Indemnity Agreement will be governed by, and construed and enforced in accordance with, the laws of
the State of Illinois applicable to agreements made and to be fully performed therein (excluding
the conflicts of laws rules). The Company irrevocably submits to the jurisdiction of any court of
the State of Illinois or the United States District Court of the Northern District of the State of
Illinois for the purpose of any suit, action or other proceeding arising out of this Indemnity
Agreement which is brought by or against the Company. Each of the Company (and, to the extent
permitted by law, on behalf of the Company’s equity holders and creditors) and Blair hereby
knowingly, voluntarily and irrevocably waives any right it may have to a trial by jury in respect
of any claim based upon, arising out of or in connection with this Indemnity Agreement.

This Indemnity Agreement may not be modified or amended except in writing executed by the parties
hereto. This Indemnity Agreement, and any modification or amendment thereto, may be executed in
counterparts, each of which will be deemed an original and all of which will constitute one and the
same instrument.

	 	 	 	 	 
	 	Very truly yours,

Amaizing Energy Holding Company, LLC

 	 
	 	By:  	/s/ Sam J. Cogdill
 	 
	 	 	Name:  	Sam Cogdill 	 
	 	 	Title:  	Chairman 	 
	 

Agreed and accepted as of

the date above.

WILLIAM BLAIR & COMPANY, L.L.C.

	 	 	 	 	 
	By:

	 	/s/ Kelly J. Martin
 

Name: Kelly J. Martin
	 	 
	 

	 	Title: Principal

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