East Kansas Agri-Energy, LLC

East Kansas Agri-Energy was started as a steering committee formed by farmers and business people interested in building a value-added ethanol production facility in Eastern Kansas. The process started with the Agriculture Sub-Committee of the Anderson County Economic Development (ACED) organization. In the Fall of 2000 they worked through the Ethanol Pre-Feasibility Matrix provided by Bryan & Bryan International (BBI) to communities interested in ethanol.

The ACED Ag Sub-Committee determined through the BBI matrix that many of the pieces were in place to support an ethanol plant. A group of progressive farmers and businesspeople met over breakfast one morning in early January 2001 to discuss this possibility. With the blessing and a financial grant from ACED these farmers and businesspeople formed a steering committee and raised enough money to fund a full feasibility study.

After determining that BBI was the best and correct consulting firm to conduct our feasibility study, BBI President and Founder Mike Bryan presented his firm's findings at meeting of the steering committee and all interested parties in May of 2001. In his words, he was "not here to promote the project, but to provide a calloused study." He concluded his presentation by saying the feasibility of our project was "quite favorable."

The month of June was spent evaluating ethanol plant builders and designers. After interviewing the top ethanol design/builders in the country, the steering committee entered into a letter of intent with Fagan, Inc. on July 23, 2001. After interviewing and researching law firms the steering committee retained the firm of Brown, Winick, Graves, Gross, Baskerville and Schoenebaum, P.L.C, with Bill Hanigan as our lead counsel on September 24, 2001.

On October 2, the steering committee hired the CPA firm of Christianson & Associates. With a builder, legal counsel and accountant on board, the steering committee voted on October 10, 2001 to form a Limited Liability Company (LLC). On October 15, 2001 East Kansas Agri-Energy, LLC. was formed as a legal entity.

In January 2002 EKAE held a seed capital drive to raise enough money to take our organization through the final stock sale. An enormous amount of planning, financial, and legal work has occurred from January 2002 until now.

On January 22, 2003 East Kansas Agri-Energy, LLC received written approval to sell membership units (stock) in Kansas and Missouri. This offering was successfully closed in the first half of 2005.

A ceremonial groundbreaking was held on October 24, 2004. The plant was completed in an industry record eight months time. On June 10, 2005 the first load of corn was delivered to the plant by Glenn Caldwell.

The first gallon of ethanol was produced on June 22, 2005.

A second industry record was set when the EKAE plant went on-line to full production status in three days.

• New Member Signature Page
• Private Transfer Application
• Unit Classification Terms
• Unit Transfer Trading System

• Minimum Ownership: 1 Unit
• Minimum Sale or Purchase: The minimum sale or purchase for Class A and Class C Units is 1 Unit; the minimum sale or purchase for Class B Units is 10 Units.
• Incremental Sale or Purchase: Class A and Class C Units may be sold and purchased in increments of 1 Unit; Class B Units must be sold and purchased in increments of 10 units.
• Any transfer of Class A or Class B Units that does not constitute a "One-for-One Transfer" will be subject to the Companys transfer policy requiring a Seller to elect to convert the Seller's Class A or Class B Units into an equal number of Class C Units before effecting any transfer of Units pursuant to a match made on the AgStockTrade system. Accordingly, all Sellers must post ask quotes for their Class A or Class B Units as offers for the sale of Class C Units (rather than Class A or Class B Units, as applicable). Only if any transfer completed pursuant to a match made with respect to that post constitutes a "One-for-One Transfer" will the Units posted retain their original status as Class A or Class B Units, as applicable, in the transfer to the Buyer. Otherwise, the Buyer will acquire Class C Units from the Seller. A One-for-One Transfer means a transfer of Units to only one transferee and which will not result in an increase in the number of holders of Class A or Class B Units, as determined in EKAE's sole discretion.
• The Seller will be required to pay Variable Investment Advisors, Inc. a fee of two percent (2%) of the gross sales price, with a minimum fee per transaction equal to one hundred seventy-five dollars ($175.00), to be paid out of the Seller?s proceeds at the time of closing.
• Match Effective Dates
• January, February and March Matches effective no sooner than April 1^st
• April, May and June Matches effective no sooner that July 1^st
• July, August and September Matches effective no sooner than October 1^st
• October, November and December Matches effective no sooner than January 1^st
• An offer to sell cannot be matched unless it has been posted for at least 15 days.
• A transfer of Units to a new owner cannot occur prior to 45 days after the offer to sell such Units werebeen posted by the Seller.
• Offers to sell that have not been matched within 120 days after being posted will be removed, and the Seller may not post additional offers to sell any Units for a period of 60 days after such removal.

• Minimum Ownership: 1 Unit
• Minimum Sale or Purchase: The minimum sale or purchase for Class A and Class C Units is 1 Unit; the minimum sale or purchase for Class B Units is 10 Units.
• Incremental Sale or Purchase: Class A and Class C Units may be sold and purchased in increments of 1 Unit; Class B Units must be sold and purchased in increments of 10 units.
• Any transfer of Class A or Class B Units that does not constitute a "One-for-One Transfer" will be subject to the Companys transfer policy requiring a Seller to elect to convert the Seller's Class A or Class B Units into an equal number of Class C Units before effecting any transfer of Units pursuant to a match made on the AgStockTrade system. Accordingly, all Sellers must post ask quotes for their Class A or Class B Units as offers for the sale of Class C Units (rather than Class A or Class B Units, as applicable). Only if any transfer completed pursuant to a match made with respect to that post constitutes a "One-for-One Transfer" will the Units posted retain their original status as Class A or Class B Units, as applicable, in the transfer to the Buyer. Otherwise, the Buyer will acquire Class C Units from the Seller. A One-for-One Transfer means a transfer of Units to only one transferee and which will not result in an increase in the number of holders of Class A or Class B Units, as determined in EKAE's sole discretion.
• The Seller will be required to pay Variable Investment Advisors, Inc. a fee of two percent (2%) of the gross sales price, with a minimum fee per transaction equal to one hundred seventy-five dollars ($175.00), to be paid out of the Sellers proceeds at the time of closing.
• Match Effective Dates
• January, February and March Matches effective no sooner than April 1^st
• April, May and June Matches effective no sooner that July 1^st
• July, August and September Matches effective no sooner than October 1^st
• October, November and December Matches effective no sooner than January 1^st
• An offer to sell cannot be matched unless it has been posted for at least 15 days.
• A transfer of Units to a new owner cannot occur prior to 45 days after the offer to sell such Units werebeen posted by the Seller.
• Offers to sell that have not been matched within 120 days after being posted will be removed, and the Seller may not post additional offers to sell any Units for a period of 60 days after such removal.

• Minimum Ownership: 1 Units
• Minimum Sale or Purchase: 1 Unit
• Incremental Sale or Purchase: 1 Unit
• The Seller will be required to pay Variable Investment Advisors, Inc. a fee of two percent (2%) of the gross sales price or a minimum of fee per transaction being one hundred seventy-five ($175.00) dollars to be paid out of the Sellers proceeds at the time of closing.
• Match Effective Dates
• January, February and March Matches effective no sooner than April 1st
• April, May and June Matches effective no sooner than July 1st
• July, August and September Matches effective no sooner than October 1st
• October, November and December Matches effective no sooner than January 1st
• Matches can not transfer to new owner prior to 45 days after they have been posted.