Document:

exv10w30

 

Exhibit 10.30

IRREVOCABLE CONFIRMATION NO. SE446848W

$53,500,000

Mitchell County Development Authority

Variable Rate Demand Taxable Economic Development

Revenue Bonds, Series 2006

(First United Ethanol, LLC Project)

	 	 	 
	Date of Issue:

	 	November 30, 2006
	Stated Expiration Date:

	 	November 30, 2007

	 	 	 	 	 
	 

	 	To:
	 	Wells Fargo Bank, National Association
	 

	 	 	 	Corporate Trust Department
	 

	 	 	 	1300 SW Fifth Avenue, 11th Floor
	 

	 	 	 	MAC P6101-114
	 

	 	 	 	Portland, OR 97201

Ladies and Gentlemen:

     We hereby confirm at the request of and for the account of Southwest Georgia Farm Credit, ACA,
a federally chartered instrumentality organized and existing under the laws of the United States of
America (the “LOC Bank”), the Letter of Credit No. 050-011-574509-01 issued by the LOC Bank on
November 30, 2006 as extended from time to time (as amended, modified or supplemented from time to
time, the “Letter of Credit”). We hereby irrevocably authorize Wells Fargo Bank, National
Association, as Trustee (the “Trustee”) under the terms and conditions more fully set forth in
Trust Indenture, dated as of October 1, 2006 (as amended, modified or supplemented from time to
time, the “Indenture”), by and between the Mitchell County Development Authority (the “Issuer”) and
the Trustee, pursuant to which $53,500,000 in aggregate principal amount of the Issuer’s Variable
Rate Demand Taxable Economic Development Revenue Bonds, Series 2006 (First United Ethanol, LLC
Project) (the “Bonds”) were issued by the Issuer, $53,500,000 principal amount of which are
currently outstanding, to draw on us at sight up to a maximum aggregate amount of Fifty Five
Million Ninety-Seven Thousand Six Hundred Seventy-One Dollars and Twenty Four Cents
($55,097,671.24) (the “Stated Amount”), upon the terms and conditions hereinafter set forth, in the
event that the Trustee’s drawing presented to the LOC Bank is dishonored (“dishonored draw”) for
the reasons indicated below. Of the Stated Amount:

	 	(1)	 	an amount not exceeding fifty three million five hundred thousand dollars
($53,500,000) may be drawn upon for payment of the unpaid principal amount of the
Bonds (the “Principal Portion”); and
	 
	 	(2)	 	an amount not exceeding One Million Five Hundred Ninety-Seven Thousand Six
Hundred Seventy-One Dollars and Twenty Four Cents ($1,597,671.24) may be drawn upon
for the payment of up to one hundred and nine days (109) days’ accrued interest on the
Bonds at the maximum interest rate of ten percent (10%) calculated on the basis of the
actual number of days elapsed over a year of 365 or 366 days, as applicable (the
“Interest Portion”), all effective immediately and expiring on the Stated Expiration Date set forth above. This
Confirmation is irrevocable.

 

 

     In the event a properly made request for a draw under the Letter of Credit is dishonored by
the LOC Bank (other than a dishonored draw due to discrepant documents presented), or prior to a
properly made draw request to the LOC Bank you have knowledge that the LOC Bank or any governmental
authority having jurisdiction over the LOC Bank has repudiated the Letter of Credit (any such event
described above, a “Dishonored Draw”), you shall be entitled to make a draw hereunder as provided
below.

     Funds under this Confirmation are available to the Trustee against its sight draft presented
to Wachovia Bank, National Association, in the form attached hereto as Exhibit A,
accompanied by a Certificate in the form attached hereto as Exhibit B, each signed by a
duly authorized officer or signer of the Trustee and accompanied by a copy of any draft and
certificate submitted (or, if the Letter of Credit has been repudiated, which would have been
submitted) to the LOC Bank for payment and refused. Presentation of such draft and certificate
shall be made at our offices located at: Wachovia Bank, National Association, 401 Linden Street 1st
Floor Winston-Salem, North Carolina 27101 Attention: Standby Letter of Credit Department. Any
draws made by facsimile will be made to (336) 735-0950/ 0952 and will be promptly followed by an
original, executed draft and certificate to our offices (such draft and certificate shall provide
the date when its facsimile copy was sent to us). We will honor drawings hereunder with our own
funds.

     Drafts drawn under and in compliance with the terms of this Confirmation must be presented to
us before the close of business on the Stated Expiration Date; provided, however, that this
Confirmation shall be automatically renewed without amendment for successive one (1) year periods
from the Stated Expiration Date and each successive expiration date thereafter (each an “Expiration
Date”) to a final Expiration Date of November 30, 2013, unless at least sixty (60) days prior to
the applicable Expiration Date we shall notify the Trustee by certified mail, return receipt
requested or courier mail, that we are not renewing this Confirmation for any additional period.
Notwithstanding the foregoing, this Confirmation shall be renewed only (a) upon the renewal of the
Letter of Credit and (b) to an Expiration Date which is not later than the scheduled expiration
date of the renewed Letter of Credit.

     Multiple draws are not permitted under this Confirmation.

     As used herein, “Business Day” means any day other than (1) a Saturday or Sunday, (2) a day on
which commercial banks in (a) New York, New York, or (b) the city or cities in which the (i)
corporate trust office of the Trustee responsible for administration of the Indenture, or (ii) the
office of the LOC Bank or our office at which demands for payment under the Letter of Credit or
this Confirmation, respectively, are to be presented, or (iii) our branch through which we wire
funds, are authorized or required by law to close or (3) a day on which the New York Stock Exchange
is closed.

     If a drawing is made by the Trustee hereunder on a Business Day, and provided that such
drawing and the documents presented in connection therewith conform to the terms and conditions
hereof and are presented at such office at or prior to 4:00 p.m., Eastern Time, payment shall be
made to the Trustee of the amount specified, in immediately available

- 2 -

 

funds, no later than 2:00 p.m., Eastern Time, on the next succeeding Business Day. If a
drawing is made by the Trustee hereunder on a Business Day, and provided that such drawing and the
documents presented in connection therewith conform to the terms and conditions hereof and are
presented to such office after 4:00 p.m., Eastern Time, payment shall be made to the Trustee of the
amount specified, in immediately available funds, no later than 2:00 p.m., Eastern Time, on the
second succeeding Business Day.

     This Confirmation and the Stated Amount available to be drawn by the Trustee shall be
automatically, immediately and permanently reduced by an amount equal to any permanent reduction of
the “Stated Amount” under the Letter of Credit. You will promptly communicate any and all
reductions to us with a telephonic notification to (800) 776-3862 followed by an original completed
reduction certificate, in the form attached hereto as Exhibit D, via courier service. Upon
such presentation, we will either reissue this Confirmation in the maximum amount available
hereunder or otherwise amend this Confirmation to reflect such maximum amount then available.

     This Confirmation will cease upon the earliest of: (a) the Expiration Date of this
Confirmation or any extended date hereof; (b) the expiration date of the Letter of Credit or any
extended date thereof; (c) the occurrence of any automatic termination event described in the
Letter of Credit; or (d) the discharge of all of the LOC Bank’s obligations under the Letter of
Credit.

     To the extent not inconsistent with the express terms hereof, this Confirmation shall be
subject to the International Standby Practices 1998, International Chamber of Commerce Publication
No. 590 (“ISP98”).

     We will honor a drawing under this Confirmation made on the fifth (5th) Business
Day upon which we resume our business following an interruption of business due to acts of God,
riots, civil commotions, insurrections, wars or any other causes beyond our control if the Stated
Expiration Date occurs during such interruption, provided such documents conform to the terms of
this Confirmation in all other respects.

     This Confirmation is transferable in its entirety to any transferee whom you certify to us as
having succeeded you as Trustee in accordance with, and meeting all the requirement of, the terms
of the Indenture and as beneficiary of this Confirmation and the Letter of Credit, and may be
successively transferred. Transfer of this Confirmation to such transferee shall be effected by
the presentation to us of this Confirmation accompanied by a certificate in the form attached
hereto as Exhibit C and after we have received satisfactory notification that LOC Bank has
agreed to the transferee on their books. Upon such presentation we shall forthwith transfer the
same to the transferee by endorsing the transfer on the reverse of this Confirmation and forwarding
the same directly to the transferee together with our customary notice of transfer or, if so
requested by the transferee, issue a confirmation to the transferee with provisions therein
consistent with this Confirmation.

     This Confirmation sets forth in full the terms of our undertaking, and such undertaking shall
not in any way be modified or amplified by any agreement in which this Confirmation is referred to
or to which this Confirmation relates except ISP98, and any such reference shall not be deemed to
incorporate herein by reference any agreement except ISP98.

- 3 -

 

     This Irrevocable Confirmation will become operative on November 30, 2006. Any claims or
drawings presented before November 30, 2006 will not be accepted.

	 	 	 	 	 	 	 	 	 
	 	 	Sincerely,	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	     /s/ Brian Perryman	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	          Brian Perryman	 	 
	 

	 	 	 	Title:
	 	Banking Officer	 	 

- 4 -

 

EXHIBIT A

Wachovia Bank, National Association

401 Linden Street, 1st Floor

Winston-Salem, North Carolina 27101

Attention: Standby Letter of Credit Department

Date:                     

     Pay to
the order of                      the amount of                              
            ($   
                
 ) drawn on Wachovia
Bank, National Association, as issuer of its Irrevocable Confirmation No. SE446848W, dated November
30, 2006.

	 	 	 	 	 	 	 
	 	 	                    , as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT B

CERTIFICATE

Wachovia Bank, National Association

401 Linden Street, 1st Floor

Winston-Salem, North Carolina 27101

Attention: Standby Letter of Credit Department

	 	 	 	 	 
	 

	 	Re:
	 	Wachovia Bank, National Association
	 

	 	 	 	Irrevocable Confirmation No. SE446848W

Date:                     

     The undersigned, a duly authorized officer or signer of the Trustee, certifies to Wachovia
Bank, National Association as issuer of the above-referenced Confirmation:

	 	1.	 	All terms defined in the Confirmation are used in this certificate with the
same meanings.
	 
	 	2.	 	The Trustee has duly presented a compliant drawing to LOC Bank for payment
pursuant to its Letter of Credit and such drawing was not honored (we further certify
that we have not received any notice/communication from the LOC Bank that our drawing
was non-conforming) or the LOC Bank has repudiated the Letter of Credit. We attach
herewith a copy of our original draw certificate and draft drawn on and presented (or
which would have been presented except for the repudiation of the Letter of Credit) to
the LOC Bank on the respective due date.
	 
	 	3.	 	The total amount being requested hereunder is $                     , being equal to the
sum of (a) $
                     constituting the current Principal Portion and (b) $                     
constituting the current Interest Portion.
	 
	 	4.	 	Please wire funds as follows:         
              
               
             
             
            
             
         
            
             
               
              
         .

	 	 	 	 	 	 	 
	 	 	                                         as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT C

INSTRUCTION TO TRANSFER

Wachovia Bank, National Association

401 Linden Street, 1st Floor

Winston-Salem, North Carolina 27101

Attention: Standby Letter of Credit Department

	 	 	Re: Your Irrevocable Confirmation No. SE446848W

Ladies and Gentlemen:

For value received, the undersigned beneficiary hereby irrevocably transfers to [Insert Name and
Address of Transferee], all rights of the undersigned beneficiary to draw under the
above-referenced Confirmation (the “Confirmation”). The transferee has succeeded the undersigned
as Trustee under the Indenture and as beneficiary under the Letter of Credit (as such terms are
defined in the Confirmation).

     By this transfer, all rights of the undersigned beneficiary in the Confirmation are
transferred to the transferee and the transferee shall hereafter have the sole rights as
beneficiary thereof, provided, however, that no right shall be deemed to have been transferred to
the transferee until such transfer complies with the requirements of the Confirmation pertaining to
transfers. The Confirmation is returned herewith and in accordance therewith we ask that this
transfer be effective and that you transfer the Confirmation to our transferee by endorsing the
transfer on the reverse of the original Confirmation and forwarding the same directly to the
transferee together with your customary notice of transfer or that, if so requested by the
transferee, you issue a new irrevocable confirmation in favor of the transferee with provisions
consistent with the Confirmation. We have already communicated our request to the LOC Bank and
understand that this confirmation transfer will not be effective until you receive instructions
from the LOC Bank that they have effected the transfer on their books. Once the transferred credit
is received by the LOC Bank we will effect the transfer of our confirmation herewith.

	 	 	 	 	 	 	 
	Date:                     	 	                                        , as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT D

CERTIFICATE AS TO REDUCTION

OF CONFIRMATION COMMITMENT

Wachovia Bank, National Association

401 Linden Street, 1st Floor

Winston-Salem, North Carolina 27101

Attention: Standby Letter of Credit Department

	 	 	 	RE: Wachovia Bank, National Association Irrevocable Confirmation No. SE446848W

Ladies and Gentlemen:

     The undersigned, a duly authorized officer or signer of                     , a national banking
association, as Trustee (the “Trustee”), hereby certifies to you, with reference to your
Irrevocable Confirmation No. SE446848W (the “Confirmation”) issued by you in favor of the Trustee
that:

	 	1.	 	The Trustee is the Trustee under the Indenture for the holders of the Bonds.
	 
	 	2.	 	The Confirmation is entitled to a reduction in the Stated Amount as a result
of a permanent reduction of the “Stated Amount” under and as defined in the Letter of
Credit. The Stated Amount shall be reduced, effective as of                                         , as
follows:

	 	A.	 	The Principal Portion shall be reduced to $                                         .
	 
	 	B.	 	The Interest Portion shall be reduced to $                                         .

	 	3.	 	The undersigned officer or signer and representative is duly authorized to
sign this certificate on behalf of the Trustee.
	 
	 	4.	 	Capitalized terms used herein and not defined shall have their respective
meanings as set forth in the Confirmation.

 

 

IN WITNESS WHEREOF, the duly authorized officer or signer of the Trustee has executed and delivered
this Certificate as to Reduction of Confirmation Commitment on this
___ day of                     ,
200_.

	 	 	 	 	 	 	 	 	 
	 	 	TRUSTEE:   	 	                                         as Trustee	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:exv10w31

 

Exhibit 10.31

REMARKETING AGREEMENT

by and between

FIRST UNITED ETHANOL, LLC

and

W.R. TAYLOR & COMPANY, LLC,

Dated as of October 1, 2006

 

 

REMARKETING AGREEMENT

     This REMARKETING AGREEMENT, dated as of October 1, 2006 (the “Remarketing Agreement”), is by
and between First United Ethanol, LLC (the “Borrower”) and W.R. Taylor & Company, LLC (“Taylor”),
as the remarketing agent (the “Remarketing Agent”), and is entered into in connection with
$53,500,000 Mitchell County Development Authority Variable Rate Demand Taxable Economic Development
Revenue Bonds (First United Ethanol, LLC Project), Series 2006 (the “Bonds”), issued by the
Mitchell County Development Authority (the “Issuer”) for the benefit of the Borrower.

ARTICLE I

Definitions

     Section 1.01. Capitalized Terms.

     Capitalized terms used in this Remarketing Agreement, unless otherwise defined herein, shall
have the meanings assigned to them in the Trust Indenture (“Indenture”) dated as of October 1,
2006, between the Issuer and Wells Fargo Bank, National Association, as trustee (the “Trustee”).

     Section 1.02. Rules of Interpretation.

     (a) This Remarketing Agreement shall be interpreted in accordance with and governed by the
laws of the State of Georgia.

     (b) The words “herein” and “hereof” and words of similar import, without reference to any
particular Article, Section or subsection, refer to this Remarketing Agreement as a whole rather
than to any particular Article, Section or subsection hereof.

     (c) The headings of Articles and Sections herein are for convenience only and shall not affect
the construction hereof.

ARTICLE II

Remarketing Agent

     Section 2.01. Remarketing Agent’s Acceptance and Qualification.

     (a) Taylor hereby accepts the appointment pursuant to the Indenture of Taylor to be the
Remarketing Agent for the Bonds.

     (b) Taylor hereby represents that it is a member of the National Association of Securities
Dealers, Inc., and is authorized to perform all of the duties of the Remarketing Agent imposed by
the Indenture and this Remarketing Agreement.

1

 

     (c) The Remarketing Agent shall have the right in its sole discretion to refuse to remarket
the Bonds (i) if any Event of Default under the Indenture or the Agreement shall have occurred and
be continuing, (ii) if any Event of Default under the Reimbursement Agreement shall have occurred
and be continuing which gives the Bank the right to exercise any of the remedies referred to in
Article 13 of the Reimbursement Agreement, or (iii) if the Bank’s obligations to pay under the
Letter of Credit or to purchase or redeem Bonds under the Reimbursement Agreement shall have been
suspended or terminated (or notice of such suspension or termination given) and no Alternate Letter
of Credit shall have been issued and delivered to the Trustee and then be in effect, or (iv) if it
shall have determined in its sole discretion, after consultation with its counsel, that a
Disclosure Statement (as defined in Section 3.01 hereof), or an amendment or supplement thereto, is
required for distribution to prospective purchasers and that such a Disclosure Statement or an
amendment or supplement thereto, is not available, or if available, is not reasonably satisfactory
to it and its counsel in form or substance, or (v) if it shall receive (x) an opinion of its
counsel, after consultation with Bond Counsel, that a substantial legal basis exists
upon which the exclusion of interest on the Bonds from gross income of the owner can be challenged,
or (y) an opinion of its counsel that a substantial legal basis exists upon which either the
exemption from registration of the Bonds, the Reimbursement Agreement or the Letter of Credit,
either individually or collectively, under the Securities Act of 1933, as amended, or the exemption
from qualification of the Indenture under the Trust Indenture Act of 1939, as amended, can be
challenged.

     (d) Nothing contained herein or in the Indenture shall be construed to obligate Taylor to
purchase, sell, hold or deal in the Bonds as a principal. Taylor shall not be required to use any
of its own funds, or otherwise incur financial liability, in carrying out its duties hereunder;
provided, however, that Taylor may, at its sole discretion, purchase, sell, hold or deal in the
Bonds for its own account.

     Section 2.02. Remarketing Agent’s Obligations.

     The Remarketing Agent, shall:

     (a) hold all moneys delivered to it as Remarketing Agent for the purchase of Bonds, in
remarketing transactions pursuant to the Indenture, as agent and bailee of, and in escrow for the
benefit of, (i) the person or entity which has so delivered those moneys, until the Bonds purchased
with those moneys have been delivered to or for the account of that person or entity and (ii)
thereafter, the person or entity which has so tendered the Bonds for purchase until those moneys
have been delivered to or for the account of that person or entity;

     (b) keep such books and records with respect to its activities as Remarketing Agent hereunder
as is consistent with prudent industry practice, which books and records shall be available for
inspection, upon reasonable notice, by the Trustee and the Borrower;

     (c) subject to Section 2.01(c) hereof, use its best efforts to remarket Bonds tendered for
purchase pursuant to the Indenture (whether at the option of the owners thereof or pursuant to
mandatory tender for purchase);

     (d) (i) determine the Variable Rate in accordance with the provisions therefor in the form of
Bond and the Indenture, (ii) determine the Fixed Interest Rate in accordance with the provisions
therefor in Section 4.02 of the Indenture and the form of Bond, and (iii) give notice to the Tender
Agent, the Borrower and the Trustee of such rates and the terms in accordance with the provisions
therefor in the form of Bond and the Indenture; and

2

 

     (e) assume all other obligations, duties and rights of the Remarketing Agent in accordance
with the Indenture, including, in particular, Article III, Article IV, Section 10.11, and Section
10.12 thereof.

ARTICLE III

Disclosure

     Section 3.01. Provision of Disclosure Materials.

     If the Remarketing Agent determines that it is necessary or desirable to use a disclosure
statement (a “Disclosure Statement”) in connection with any remarketing of Bonds, the Remarketing
Agent will so notify the Borrower. The Borrower agrees to provide for the use of the Remarketing
Agent in connection with remarketing of the Bonds a Disclosure Statement reasonably satisfactory to
the Remarketing Agent. The Borrower agrees to supply to the Remarketing Agent such number of
copies of the Disclosure Statement and documents related thereto as are reasonably requested from
time to time by the Remarketing Agent and further agrees to amend the Disclosure Statement (and/or
any documents incorporated by reference therein) so that at all times the Disclosure Statement and
documents related thereto will not contain any untrue statement of a material fact relating to the
Borrower or the Project or omit to state a material fact relating to the Borrower or the Project
necessary to make the statements contained therein, in the light of the circumstances under which
they were made, not misleading. The Borrower agrees to promptly advise the Remarketing Agent of
any information concerning any event with respect to the Borrower which may be required to be
included in a Disclosure Statement or an amendment or supplement thereto. In addition, the
Borrower agrees to take all steps, at their own expense, reasonably requested by the Remarketing
Agent to (a) either (i) register the Bonds for sale under the applicable federal or state
securities laws or to qualify the Indenture under the Trust Indenture Act of 1939, as amended, if
required, or (ii) cause the Bonds required to be so registered to cease to be outstanding within
the meaning of the Indenture and to cause the Indenture required to be so qualified to be
discharged in accordance with its terms, or (b) enable the Remarketing Agent to establish a “due
diligence” defense to any action commenced against the Remarketing Agent in respect of a Disclosure
Statement.

ARTICLE IV

General

     Section 4.01. Indemnification of Remarketing Agent.

     The Borrower agrees to indemnify and hold harmless the Remarketing Agent and each member,
trustee, partner, officer, official or employee thereof and any person who controls the Remarketing
Agent within the meaning of the Securities Act of 1933, against any and all losses, claims, damages
and liabilities arising out of (i) the failure to provide to the Remarketing Agent information
concerning the Borrower or the Project which should have been included in a Disclosure Statement or
which would have caused the Remarketing Agent, in the exercise of its reasonable judgment, to
request that the Borrower prepare a Disclosure Statement, or amend or supplement an existing
Disclosure Statement, for use by the

3

 

Remarketing Agent in the remarketing of the Bonds or (ii) any statement or information concerning
the Borrower or the Project contained in the Disclosure Statement provided pursuant to Section 3.01
hereof that is untrue in any material respect, or the omission therefrom of any information
concerning the Borrower or the Project which should be contained therein which is necessary to make
the statements therein, in light of the circumstances under which they are made, not misleading in
any material respect, and to the extent of the aggregate amount paid in settlement of any
litigation commenced or threatened arising from a claim based upon any such untrue statement or
omission if such settlement is effected with the written consent of the Borrower; provided that,
the Borrower shall not be liable in any case if a court of competent jurisdiction has rendered a
final judgment to the effect that the loss, claim, damage or liability has been asserted by a
person who purchased one or more Bonds from the Remarketing Agent and resulted solely from the
failure of the Remarketing Agent to deliver or cause to be delivered to that person the Disclosure
Statement or any amendment or supplement thereto that had been timely prepared and was then
available to the Remarketing Agent, and that such delivery to such person would have been a valid
and complete defense to the action from which such loss, claim, damage or liability arose. In case
any claim shall be made or action brought against the Remarketing Agent or any indemnified person
(as aforesaid) in respect of which indemnity may be sought against and the Borrower, the
Remarketing Agent shall promptly notify the Borrower in writing, setting forth the particulars such
claim or action, and the Borrower shall assume the defense thereof including the retaining of
counsel (who shall be reasonably satisfactory to the Remarketing Agent) and the payment, as
incurred, of all expenses reasonably incurred by the Remarketing Agent or such other indemnified
person; provided, however, that if the Remarketing Agent is advised in an opinion of counsel that
there may be legal defenses available to the Remarketing Agent which are adverse to or in conflict
with those available to the Borrower, or that the defense of the Borrower should be handled by
separate counsel, the Borrower shall not assume such defense of the Remarketing Agent, the Borrower
shall be responsible for the payment, as incurred, of the reasonable fees and expenses of counsel
retained by the Remarketing Agent in assuming its own defense and for all other expenses reasonably
incurred by the Remarketing Agent in connection with such defense, and provided also that if the
Borrower shall have failed to assume the defense of such action or to retain counsel reasonably
satisfactory to the Remarketing Agent within a reasonable time after notice of the commencement of
such action, the reasonable fees and expenses of counsel retained by the Remarketing Agent and all
other expenses reasonably incurred by the Remarketing Agent in connection with such defense shall
be paid, as incurred, by the Borrower. Notwithstanding, and in addition to, any of the foregoing,
the Remarketing Agent or any such indemnified person (as aforesaid) shall have the right to retain
separate counsel in any such action and to participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of the party retaining such counsel unless the
retaining of such counsel has been specifically authorized by the Borrower in writing. The
Remarketing Agent agrees to indemnify and hold harmless the Borrower and each member, trustee,
officer, official or employee thereof and any person who controls the Borrower within the meaning
of the Securities Act of 1933, against any and all losses, claims, damages and liabilities arising
out of any statement or information relating to the Remarketing Agent or based upon information
provided by the Remarketing Agent contained in the Disclosure Statement that is untrue in any
material respect, or the omission therefrom of any information relating to the Remarketing Agent or
which should have been provided by the Remarketing Agent which should be contained therein which is
necessary to make the statements therein, in light of the circumstances under which they are made,
not misleading in any material respect, and for any liability arising from failure of the
Remarketing Agent to comply with any “blue sky” laws in any jurisdiction (unless such failure to
comply is a result of the unwillingness or inability of the Borrower or the Issuer to provide
information or to take steps required for such compliance, as reasonably requested by the
Remarketing Agent) applicable to the remarketing of Bonds by the Remarketing Agent, but only to the
extent that the Borrower or the Issuer also would be liable for such failure in whole or in part in
such

4

 

jurisdiction. The indemnity agreements contained in this Section 4.01 shall remain operative and
in full force and effect regardless of any investigation made by or on behalf of the Remarketing
Agent (or any controlling person) or the Borrower (or any controlling person) and shall survive the
termination of this Remarketing Agreement.

     Section 4.02. Payment of Remarketing Agent.

     The Borrower shall pay Taylor for its services as Remarketing Agent for the Bonds (i) during
the time that interest is borne on the Bonds at the Variable Rate, an annual fee equal to .125% of
the average aggregate principal amount of Bonds outstanding during the period since the date of the
immediately preceding payment (or the date of the initial delivery of the Bonds) but not less than
$2,500 annually, payable as directed by the Remarketing Agent, quarterly in advance, commencing on
November 30, 2006 and on the first day of each January, April, July and October thereafter through
and including the Conversion Date; and (ii) after the Conversion Date, such fee as shall be
negotiated by the Remarketing Agent and the Borrower. Such fee payable pursuant to clause (i) of
the preceding sentence shall be calculated based on the actual number of days elapsed since the
immediately preceding payment date, with a year of 365 or 366 days, as applicable. The Borrower
also will pay all reasonable expenses in connection with the preparation of any Disclosure
Statement and the registration of the Bonds under any state securities laws and will reimburse the
Remarketing Agent for all of its reasonable direct out-of-pocket expenses incurred by it as
Remarketing Agent under this Remarketing Agreement, including reasonable counsel fees and
disbursements and the costs of notices, mailings and other activities required under this
Remarketing Agreement. The Remarketing Agent acknowledges that it has no legal right or interest
under this Remarketing Agreement to any proceeds received from the remarketing of Bonds other than
those Bonds which it has purchased for its own account.

     Section 4.03. Term.

     This Remarketing Agreement will terminate upon the earlier of (i) the effective date of the
resignation or removal of Taylor as Remarketing Agent, (ii) 30 days following such date, if any,
that all outstanding Bonds first bear interest at the Fixed Interest Rate, or (iii) the first date
on which no Bonds are outstanding. The Borrower may remove Taylor as Remarketing Agent under this
Remarketing Agreement, at any time upon not less than sixty (60) days’ written notice from the
Borrower to such removed Remarketing Agent, upon satisfaction of the requirements of the Indenture.
Taylor may resign as Remarketing Agent at any time, upon notice to the Borrower, the Issuer, the
Trustee and the Bank and provided that the resignation shall not be effective until the earlier of
(i) the 30th day following receipt of the notice of resignation, or (ii) either the assumption,
subject to the provisions of the Indenture, by the non-resigning Remarketing Agent of sole
responsibility for the performance of all duties and obligations of the Remarketing Agent under
this Remarketing Agreement or the appointment by the Borrower of a successor remarketing agent.
Upon the termination of this Remarketing Agreement, the provisions of Section 4.01 hereof will
continue to remain in effect and any Bonds or moneys then held by the Remarketing Agent will be
delivered to the Tender Agent, who will deliver those Bonds and moneys to the successor Remarketing
Agent or, if no successor has been designated, to the Trustee.

     Section 4.04. Amendments.

     This Remarketing Agreement may not be amended so as to adversely affect the right of the
owners of Bonds to tender their Bonds for purchase pursuant to the Indenture, without the prior
written consent of the Issuer and the Trustee (with notice to the owner of each such Bond so
affected).

5

 

     Section 4.05. Remarketing Agent’s Performance; Duty of Care.

     The Remarketing Agent consents and agrees to perform and comply with all of the terms and
provisions on its part to be performed or complied with in this Remarketing Agreement and the
Indenture. In performing its duties and obligations hereunder and under the Indenture, the
Remarketing Agent shall exercise the same degree of skill and care as a prudent person would use
under the same circumstances in the conduct of his or her own affairs.

     The duties and obligations of the Remarketing Agent shall be determined solely by the express
provisions of this Remarketing Agreement and the Indenture, and the Remarketing Agent shall not be
liable except for the performance of such duties and obligations as are specifically set forth in
this Remarketing Agreement and the Indenture, and no implied covenants or obligations shall be read
into this Remarketing Agreement or the Indenture against the Remarketing Agent; and in the absence
of bad faith on the part of the Remarketing Agent, the Remarketing Agent may conclusively rely, as
to the truth of the statements expressed therein, upon any notice or document furnished to the
Remarketing Agent and conforming to the requirements of this Remarketing Agreement or the Indenture
and shall be protected in acting upon any such notice or document reasonably believed by it to be
genuine and to have been given, signed or presented by the proper party or parties.

     Section 4.06. Notices.

     Unless otherwise specified, any notices, requests or other communications given or made
hereunder or pursuant hereto shall be made in writing and shall be deemed to have been validly
given or made when delivered or mailed, registered or certified mail, return receipt requested, and
postage prepaid, addressed as follows:

	 	 	 	 	 
	 

	 	if to Borrower:
	 	First United Ethanol, LLC
	 

	 	 	 	2 West Broad Street
	 

	 	 	 	Camilla, Georgia 31730
	 

	 	 	 	Attention: Mr. Murray Campbell
	 

	 	 	 	Fax: (229) 522-2824
	 
	 	 	 	 
	 

	 	if to Remarketing Agent:
	 	W.R. Taylor & Company, LLC
	 

	 	 	 	1420 I-85 Parkway
	 

	 	 	 	Montgomery, Alabama 36106
	 

	 	 	 	Attn: Mr. Robbins Taylor

          Section 4.07. Counterparts.

          This Remarketing Agreement may be executed in any number of counterparts all of which taken
together shall constitute one and the same instrument.

6

 

          IN WITNESS WHEREOF, the parties hereto have cause this Remarketing Agreement to be executed by
their duly authorized officers or agents, as the case may be, as of the date first above written.

	 	 	 	 	 	 	 
	 	 	W.R. TAYLOR & COMPANY, LLC,

as Remarketing Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Robbins Taylor	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     Robbins Taylor	 	 
	 

	 	 	 	     President	 	 

7

 

	 	 	 	 	 	 	 
	 	 	FIRST UNITED ETHANOL, LLC,

a Georgia limited liability company

as Borrower	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	     /s/ Murray Campbell	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     Murray Campbell	 	 
	 

	 	 	 	     Chairman of the Board	 	 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]