NEK-SEN ENERGY, LLC SUBSCRIPTION AGREEMENT Limited Liability Company Membership Units $1,000.00 per Unit Minimum Investment of 25 Units ($25,000) 1 Unit Increments Thereafter ($1,000)

Exhibit 4.2

NEK-SEN ENERGY, LLC
SUBSCRIPTION AGREEMENT

Limited Liability Company Membership Units

$1,000.00 per Unit

Minimum Investment of 25 Units ($25,000)
1 Unit Increments Thereafter ($1,000)

The undersigned subscriber (hereafter sometimes referred to as “you” or the “Subscriber”), desiring to become a member of NEK-SEN Energy, LLC, a Kansas limited liability company, with its principal place of business at 000 Xxxxx 0^xx Xxxxxx, Xxxxx 0, Xxxxxxx, Xxxxxx 00000 (hereafter sometimes referred to as “we” or “NEK-SEN”), hereby subscribes for the purchase of the membership interests of NEK-SEN, and agrees to pay the related purchase price, identified below.

A. SUBSCRIBER INFORMATION. Please print your individual or entity name and address. Joint subscribers should provide their respective names. Your name and address will be recorded exactly as printed below.


1.		Subscriber’s Printed Name:

2.		Title, if applicable:

3.		Subscriber’s Address:

		Street

		City, State, Zip Code

4.		Telephone:

4.		E-mail Address:

B. NUMBER OF UNITS PURCHASED. Indicate the number of Units you are purchasing. You must purchase at least 25 units.

C. PURCHASE PRICE. Indicate the dollar amount of your investment (minimum investment is $25,000).


1. Total Purchase Price	=	2. 1^st Installment	+	3. 2^nd Installment
($1,000.00 Per Unit multiplied by the number in box B above.)		(10% of the Total Purchase Price)		(90% of the Total Purchase Price)
	=		+

D. GENERAL INSTRUCTIONS FOR SUBSCRIBERS:

You should read the Prospectus dated [Date of Effectiveness] (the “Prospectus”) in its entirety, including exhibits, for a complete explanation of an investment in NEK-SEN. To subscribe, you must follow the applicable instructions below.

INSTRUCTIONS IF YOU ARE SUBSCRIBING PRIOR TO RELEASE OF FUNDS FROM ESCROW: If you are subscribing prior to the Company’s release of funds from escrow, you must follow Steps 1 through 5 below:

Complete all information required in this Subscription Agreement, and date and sign the Subscription Agreement on page 6 and the Member Signature Page to our Operating Agreement attached to this Subscription Agreement as EXHIBIT “A”.

	2.		Immediately provide your personal (or business) check for the first installment of ten percent (10%) of your investment amount made payable to United Bank and Trust, escrow agent for NEK-SEN Energy, LLC. You will determine this amount in box C.2 on page 1 of this Subscription Agreement.

	3.		Execute the Promissory Note and Security Agreement attached as page 7 evidencing your commitment to pay the remaining ninety percent (90%) due for the Units and granting NEK-SEN a security interest in your Units.

	4.		Deliver the original executed subscription agreement and Promissory Note and Security Agreement referenced in numbered Items 1 and 3 of these instructions, together with your personal or business check described in Item 2 of these instructions to either of the following:


		NEK-SEN Energy, LLC		United Bank and Trust
		Attention: Xxxx Xxxxxxx		000 Xxxx Xxxxxx
		000 Xxxxx 0^xx Xxxxxx, Xxxxx 0		Xxxxxxx, XX 00000
		Xxxxxxx, XX 00000

	5.		Upon written notice from NEK-SEN stating that its sales of Units have exceeded the Minimum Offering amount of $29,500, you must, within thirty (30) days, deliver an additional personal (or business) check for the second installment of ninety percent (90%) of your investment amount made payable to United Bank and Trust, escrow agent for NEK-SEN in satisfaction of the Promissory Note and Security Agreement. You will determine this amount in box C.3 on page 1 of this Subscription Agreement. You must deliver this check to the same address set forth above in Instruction 4 within thirty (30) days of the date of NEK-SEN’s written notice. If you fail to pay the second installment pursuant to the Promissory Note and Security Agreement, NEK-SEN shall be entitled to retain your first installment and to seek other damages, as provided in the Promissory Note and Security Agreement.

			Your funds will be placed in NEK-SEN’s escrow account at United Bank and Trust. The funds will be released to NEK-SEN or returned to you in accordance with the escrow arrangements described in the Prospectus. NEK-SEN may, in its sole discretion, reject or accept any part or all of your subscription. If NEK-SEN rejects your subscription, your Subscription Agreement and investment will be promptly returned to you, plus nominal interest, minus escrow fees. It is possible that NEK-SEN may not consider the acceptance or rejection of your subscription until a future date near the end of this offering.

INSTRUCTIONS IF YOU ARE SUBSCRIBING AFTER RELEASE OF FUNDS FROM ESCROW: If you are subscribing after the Company’s release of funds from escrow, you must follow Steps 1 through 3 below:

	1.		Complete all information required in this Subscription Agreement and date and sign the Subscription Agreement on page 6 and the Member Signature Page to our Operating Agreement attached to this Subscription Agreement as EXHIBIT “A”.

	2.		Immediately provide your personal (or business) check for the entire amount of your investment (as determined in Box C.1 on page 1) made payable to “NEK-SEN Energy, LLC.”

	3.		Deliver the original executed documents referenced in Item 1 of these Instructions, together with your personal (or business) check described in Item 2 of these instructions to the following:

NEK-SEN Energy, LLC
Attention: Xxxx Xxxxxxx
000 Xxxxx 0^xx Xxxxxx, Xxxxx 0
Xxxxxxx, Xxxxxx 00000

If you are subscribing after we have released funds from escrow and we accept your investment, your funds will be immediately at risk as described in the Prospectus. NEK-SEN may, in its sole discretion, reject or accept any part or all of your subscription. If NEK-SEN rejects your subscription, your Subscription Agreement and investment will be returned to you promptly, plus nominal interest, minus escrow fees. It is possible that NEK-SEN may not consider the acceptance or rejection of your subscription until a future date near the end of this offering.

You may direct your questions to one of our directors listed below or to NEK-SEN at (000) 000-0000.


Director	Position	Phone Number
Xxxx Xxxxxxx	Chairman	(000) 000-0000
Xxxx Xxxxxxx	Director	(000) 000-0000
Xxxxxx Xxxx	Vice President	(000) 000-0000
Xxxxxx (Xxxxx) Xxxxxx	Treasurer	(000) 000-0000
Xxx Xxxxxx	Director	(000) 000-0000
Xxxx Xxxxx	Director	(000) 000-0000
Xxxxxxx Xxxx	Director	(000) 000-0000
Xxxxxxx Xxxxxxx	Director	(000) 000-0000
Xxxxx Xxxxx	Secretary	(000) 000-0000
Xxxxx Xxxxxxxxx	Director	(000) 000-0000

E. Additional Subscriber Information. The subscriber, named above, certifies the following under penalties of perjury:

Form of Ownership. Check the appropriate box (one only) to indicate form of ownership. If the subscriber is a Custodian, Corporation, Partnership or Trust, please provide the additional information requested.


		o		Individual
		o		Joint Tenants with Right of Survivorship (Both signatures must appear on Page 6.)
		o		Corporation, Limited Liability Company or Partnership (Corporate Resolutions, Operating Agreement or Partnership Agreement must be enclosed.)
		o		Trust
				Trustee’s Name:

				Trust Date:

		o		Other: Provide detailed information in the space immediately below.

Subscriber’s Taxpayer Information. Check the appropriate box if you are a non-resident alien, a U.S. Citizen residing outside the United States or subject to backup withholding. All individual subscribers should provide their Social Security Number. Custodians should provide the minor’s Social Security Number. Trusts should provide their taxpayer identification number. Other entities should provide their taxpayer identification number.


		o	Check box if you are a non-resident alien
		o	Check box if you are a U.S. citizen residing outside of the United States
		o	Check this box if you are subject to backup withholding

		Subscriber’s Social Security No.

		Joint Subscriber’s Social Security No.

		Taxpayer Identification No.

Member Report Address. If you would like duplicate copies of member reports sent to an address that is different than the address identified in Section A, please complete this section.


		Address:


			4.			State of Residence.
						State of Principal Residence:

						State where driver’s license is issued:

						State where resident income taxes are filed:

State(s) in which you have maintained your principal residence during the past three years:


a	b.	c.

Suitability Standards. You cannot invest in NEK-SEN unless you meet one or more of the following suitability tests (a or b) set forth below. Please review the suitability tests and check the box(es) next to the following suitability test(s) that you meet. For husbands and wives purchasing jointly, the tests below will be applied on a joint basis.


a.	o	I (We) have annual income from whatever source of at least $45,000 and a net worth of at least $45,000, exclusive of home, furnishings and automobiles; or

b.	o	I (We) have a net worth of at least $100,000, exclusive of home, furnishings and automobiles.

	6.		Subscriber’s Representations and Warranties. You must read and certify your representations and warranties and sign and date this Subscription Agreement.

			By signing below the subscriber represents and warrants to NEK-SEN that he, she or it:

	a.		has received a copy of NEK-SEN’s Prospectus dated [effective date] and all exhibits thereto;

	b.		has been informed that the Units of NEK-SEN are offered and sold in reliance upon a federal securities registration; Iowa, Kansas, Missouri, Nebraska and South Dakota securities registrations; and exemptions from securities registrations in various other states, and understands that the Units to be issued pursuant to this Subscription Agreement can only be sold to a person meeting requirements of suitability;

	c.		has been informed that the Units purchased pursuant to this Subscription Agreement have not been registered under the securities laws of any state other than the states of Iowa, Kansas, Missouri, Nebraska and South Dakota, and that NEK-SEN is relying in part upon the representations of the undersigned Subscriber contained herein;

	d.		has been informed that the securities subscribed for have not been approved or disapproved by the Iowa, Kansas, Missouri, Nebraska or South Dakota Securities Departments or any other regulatory authority, nor has any regulatory authority passed upon the accuracy or adequacy of the Prospectus;

	e.		intends to acquire the Units for his/her/its own account without a view to public distribution or resale and he/she/it has no contract, undertaking, agreement or arrangement to sell or otherwise transfer or dispose of any Units or any portion thereof to any other person;

	f.		understands that there is no present market for NEK-SEN’s membership Units, that the membership Units will not trade on an exchange or automatic quotation system, that no such market is expected to develop in the future and that there are significant restrictions on the transferability of the membership Units;

	g.		has been encouraged to rely upon the advice of his legal counsel and accountants or other financial advisers with respect to the tax and other considerations relating to the purchase of Units;

	h.		has received a copy of NEK-SEN’s Operating Agreement dated October 7, 2005, and all amendments thereto, and understands that upon closing the escrow by NEK-SEN, the Subscriber and the membership Units will be bound by the provisions of the Operating Agreement, which contains, among other things, provisions that restrict the transfer of membership Units;

	i.		understands that the Units are subject to substantial restrictions on transfer under state securities laws along with restrictions contained in NEK-SEN’s Operating Agreement, and

			agrees that if the membership Units or any part thereof are sold or distributed in the future, the Subscriber shall sell or distribute them only pursuant to the terms of NEK-SEN’s Operating Agreement, the requirements of the Securities Act of 1933, as amended, and applicable state securities laws;

	j.		meets the suitability test marked in Item 5 above and is capable of bearing the economic risk of this investment, including the possible total loss of the investment;

	k.		understands that NEK-SEN will place a restrictive legend on any certificate representing any Unit containing substantially the following language as the same may be amended by NEK-SEN’s Board of Directors in its sole discretion:

THE TRANSFERABILITY OF THE MEMBERSHIP UNITS REPRESENTED BY THIS CERTIFICATE IS RESTRICTED. SUCH UNITS MAY NOT BE SOLD, ASSIGNED, OR TRANSFERRED, AND NO ASSIGNEE, VENDEE, TRANSFEREE OR ENDORSEE THEREOF WILL BE RECOGNIZED AS HAVING ACQUIRED ANY SUCH UNITS FOR ANY PURPOSES, UNLESS AND TO THE EXTENT SUCH SALE, TRANSFER, HYPOTHECATION, OR ASSIGNMENT IS PERMITTED BY, AND IS COMPLETED IN STRICT ACCORDANCE WITH, APPLICABLE FEDERAL AND STATE LAW AND THE TERMS AND CONDITIONS SET FORTH IN THE OPERATING AGREEMENT OF THE COMPANY, AS AMENDED FROM TIME TO TIME.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, OFFERED FOR SALE OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND UNDER APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND UNDER APPLICABLE STATE SECURITIES LAWS.

	l.		understands that, to enforce the above legend, NEK-SEN may place a stop transfer order with its registrar and stock transfer agent (if any) covering all certificates representing any of the membership units;

	m.		has knowledge and experience in business and financial matters so as to be able to evaluate the merits and risks of an investment in the Units, believes that the investment in Units is suitable for the Subscriber and that the Subscriber can bear the economic risk of the purchase of Units, including the total loss of the undersigned’s investment;

	n.		may not transfer or assign this Subscription Agreement, or any of the Subscriber’s interest herein;

	o.		has written his, her, or its correct taxpayer identification number under numbered paragraph E.2 of this Subscription Agreement;

	p.		is not subject to back up withholding either because he, she or it has not been notified by the Internal Revenue Service (“IRS”) that he, she or it is subject to backup withholding as a result of a failure to report all interest or dividends, or the IRS has notified him, her or it that he is no longer subject to backup withholding (Note this clause (p) should be crossed out if the backup withholding box in numbered paragraph E.2 is checked);

	q.		understands that execution of the attached Promissory Note and Security Agreement will allow NEK-SEN or its assigns to pursue the obligor for payment of the amount due thereon by any legal means, including, but not limited to, acquisition of a judgment against the obligor in the event that the Subscriber defaults on the Promissory Note and Security Agreement; and

acknowledges that NEK-SEN may retain possession of certificates representing the Subscriber’s Units to perfect its security interest in those Units.

Signature of Subscriber/ Joint Subscriber:


Date:


*Individuals:*		*Entities:*



Name of Individual Subscriber (Please Print)		Name of Entity (Please Print)



Signature of Individual		Print Name and Title of Officer



Name of Joint Individual Subscriber (Please Print)		Signature of Officer



Signature of Joint Individual Subscriber

ACCEPTANCE OF SUBSCRIPTION BY NEK-SEN ENERGY, LLC:

NEK-SEN Energy, LLC hereby accepts the subscription for the above Units.

Dated this day of , 200 .

NEK-SEN ENERGY, LLC


By:


Its:

PROMISSORY NOTE AND SECURITY AGREEMENT

Date of Subscription Agreement: , 200___.

$1,000.00 per Unit

Minimum Investment of 25 Units ($25,000), 1 Unit Increments Thereafter ($1,000)


		Number of Units subscribed


		Total Purchase Price ($1,000.00 per Unit multiplied by number of Units subscribed)


( )		Less Initial Payment (10% of Principal Amount)


		Principal Balance

FOR VALUE RECEIVED, the undersigned hereby promises to pay to the order of NEK-SEN Energy, LLC, a Kansas limited liability company (“NEK-SEN”), at its principal office located 000 Xxxxx 0xx Xxxxxx, Xxxxx 0, Xxxxxxx, Xxxxxx 00000, or at such other place as required by NEK-SEN, the Principal Balance set forth above in one lump sum to be paid without interest within 30 days following the call of the NEK-SEN Board of Directors, as described in the attached Subscription Agreement. In the event the undersigned fails to timely make any payment owed, the entire balance of any amounts due under this full recourse Promissory Note and Security Agreement shall be immediately due and payable in full with interest at the rate of 12% per annum from the due date and any amounts previously paid in relation to the obligation evidenced by this Promissory Note and Security Agreement may be forfeited at the discretion of NEK-SEN.

The undersigned agrees to pay to NEK-SEN on demand, all costs and expenses incurred to collect any indebtedness evidenced by this Promissory Note and Security Agreement, including, without limitation, reasonable attorneys’ fees. This Promissory Note and Security Agreement may not be modified orally and shall in all respects be governed by, construed, and enforced in accordance with the laws of the State of Kansas.

The provisions of this Promissory Note and Security Agreement shall inure to the benefit of NEK-SEN and its successors and assigns, which expressly reserve the right to pursue the undersigned for payment of the amount due thereon by any legal means in the event that the undersigned defaults on obligations provided in this Promissory Note and Security Agreement.

The undersigned waives presentment, demand for payment, notice of dishonor, notice of protest, and all other notices or demands in connection with the delivery, acceptance, performance or default of this Promissory Note and Security Agreement.

The undersigned grants to NEK-SEN, and its successors and assigns (“Secured Party”), a purchase money security interest in and to all of the undersigned’s Membership Units of NEK-SEN now owned or hereafter acquired. This security interest is granted as non-exclusive collateral to secure payment and performance on the obligation owed Secured Party from the undersigned evidenced by this Promissory Note and Security Agreement. The undersigned further authorizes Secured Party to retain possession of certificates representing such Membership Units and to take any other actions necessary to perfect the security interest granted herein.

Dated: , 200___.


OBLIGOR/DEBTOR:		JOINT OBLIGOR/DEBTOR:


Printed or Typed Name of Joint Obligor/Debtor		Printed or Typed Name of Obligor/Debtor

By:		By:

	(Signature)		(Signature)


Officer Title if Obligor/Debtor is an Entity





Address of Obligor/Debtor

MEMBER SIGNATURE PAGE

ADDENDUM TO THE
OPERATING AGREEMENT
OF NEK-SEN ENERGY, LLC

The undersigned does hereby represent and warrant that the undersigned, as a condition to becoming a Member in NEK-SEN Energy, LLC, has received a copy of the Operating Agreement, dated October 7, 2005, and, if applicable, all amendments and modifications thereto, and does hereby agree that the undersigned, along with other parties to the Operating Agreement, shall be subject to and comply with all terms and conditions of said Operating Agreement in all respects, as if the undersigned had executed said Operating Agreement on the original date thereof; and that the undersigned is and shall be bound by all of the provisions of said Operating Agreement from and after the date of execution hereof.


*Individuals:*		*Entities:*



Name of Individual Member (Please Print)		Name of Entity (Please Print)



Signature of Individual		Print Name and Title of Officer



Name of Joint Individual Member (Please Print)		Signature of Officer



Signature of Joint Individual Member

Agreed to and Accepted on Behalf of the
Company and its Members:

NEK-SEN ENERGY, LLC


By:


Its:

EXHIBIT “A”

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NEK-SEN ENERGY, LLC SUBSCRIPTION AGREEMENT Limited Liability Company Membership Units $1,000.00 per Unit Minimum Investment of 25 Units ($25,000) 1 Unit Increments Thereafter ($1,000)

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