**Exhibit10.5**

 

OPTION TOPURCHASE

 

Agreement made this 14th day of March, 2003, by andbetween Clarence L. White and Berniece F. White, husband and wife, hereinafter“Owner” and East Kansas Agri-Energy, L.L.C., a Kansas Limited LiabilityCompany, hereinafter “Purchaser”.

 

In consideration of thesung of $5,000.00 cash in hand paid from Purchaser to Owner, the receiptof which is hereby acknowledged, the parties hereto agree as follows:

 

(1) Owner grants, bargains and conveys to Purchaserthe option to purchase a tract consisting of approximately ten (10) acreslocated in the following described tract of real property situated in AndersonCounty, Kansas, to-wit:

 

The Southwest Quarter (SW/4) of the Southeast Quarter(SE/4) of Section Thirty (30), Township Twenty (20) South, Range Twenty (20)East of the Sixth Principal Meridian.

 

(2) The purchase price shall be $9,000.00 per acre,based upon the size of the tract as to be determined by survey, with Purchaserto receive credit against the purchase price for the amount paid for thisoption as well as the option dated March 14, 2002..

 

(3) The term of this option shall be for twelve (12)months from the date hereof.

 

(4) Purchaser shall exercise this option to purchaseby delivering a written notice of intent to exercise the option to the Owner athis residence in Gannett, Kansas, no later than five o’clock p.m. (5:00 p.m.)on March 13, 2003. Owner and Purchaser shall thereafter enter into a bindingcontract for the sale and purchase of the tract of real estate describesherein, which contract shall provide for a closing date and other essentialterms to the contract.

 

(5)  Thecontract for the sale of this real estate shall contain the followingprovisions:

 

(A) The cost of surveyingthe tract to be purchased together **with**all titleinsurance shall be paid by Purchaser.

 

(B) The purpose of thisoption to purchase is to provide Purchaser with a tract of sufficient size toallow the placement of a railroad spur over and across the tract to provideaccess from Purchaser’s anticipated Ethanol Plant to the existing railroadtrack located in the city of Garnett, Kansas. It is anticipated that this willrequire approximately ten (10) acres of ground from Owner, however, afterPurchaser determines the amount of ground required, it will through its surveycause the boundaries of the tract to be squared off, such that the Westernboundary of Owner’s remaining property will be a straight line running dueNorth and South,

 

(C) Purchaser **will**be responsible for replacing the Owner’s Westboundary fence at Purchaser’s expense with a fence approximately equal to the new fence constructed by City o£ GannettSewer Project, which is also located on property formerly owned by Owner.

 

(D) Purchaser will alsopay to replace the current loafing barn and concrete pad, together with apotable water hydrant and a dusk to dawn pole light. The barn will be moved tothe East of its present site and will be provided with water and electricutilities.

 

(6) This Option to Purchase cannot be assigned byPurchaser without the written consent of Owner.

 

(7) Time is of the essence in the performance of thisagreement.

 

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Option to Purchase

 

(8) This agreement shall be binding upon the heirs,successors and assigns of Owner and Purchaser.

 

IN WITNESS WHEREOF, the parties hereto **have**set their hands on the day and date abovewritten.

 
| OWNER:                | PURCHASER: EAST  KANSAS AGRI-ENERGY |
|-----------------------|-------------------------------------|
|                  |                                |   |
|                  |                                |   |
| /s/ Clarence L. White |                                | By: | /s/ William R. Pracht |   |
| Clarence L. White     | William R. Pracht, Chairperson      |
|                  |                                |   |
|                  |                                |   |
| /s/ Berniece F. White |                                |   |   |
| Berniece F. White     |                                |   |

 

 

STATE OFKANSAS             )

SS:

COUNTY OF ANDERSON  )

 

The foregoing**instrumentwas acknowledged before me this 13th day of March, 2003, by ClarenceL. White and Berniece F. **White, husband and wife.**

 
|         | /s/ Daniel D. Schulte |   |
|--------------|-----------------------|--------|
| Term Expires | Notary Public         |   |
| 03-01-07     |                  |

 
| STATE OF KANSAS                       |
|---------------------------------------|
| SS:                                   | **DANIEL  D. SCHULTE  Notary Public - State (1f Kan¢as  my Appt.   **03-01-07 |
| COUNTY OF ANDERSON   ) |

 

The foregoing instrumentwas acknowledged before me this 13th day of March, 2003, by WilliamR. Pracht, Chairperson of East Kansas Agri-Energy, L.L.C., a Kansas LimitedLiability Company, on behalf of the limited liability company.

 

 
|         | /s/ Daniel D. Schulte |   |
|--------------|-----------------------|--------|
| Term Expires | Notary Public         |   |
| 03-01-07     |                  |
|         |                  |
|         | [SEAL]                |

 

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