Exhibit 10.1


 


AGREEMENT


 


Agreement
made October 11, 2005, between Mike Burns, 12 Lakeridge Drive, Garnett,
Anderson County, Kansas, here referred to as seller, whether one or more, and
East Kansas Agri-Energy, L.L.C., a limited liability company organized under
the laws of the State of Kansas, doing business at 1304 South Main, Garnett,
Anderson County, Kansas, here referred to as buyer.


 


SECTION ONE

MATERIALS SOLD


 


Seller
shall sell to buyer, and buyer shall buy from seller, all earth and granular
materials that buyer desires to excavate and remove from the locations
described in this agreement, for the total sum of $300,000.00, to be credited
to seller in the manner set forth below.


 


The
amount of earth and granular materials to be so removed shall consist of
approximately 720,000 cubic yards, more or less.


 


SECTION TWO

PAYMENTS


 


Buyer
will pay to seller the sum of $300,000.00 for the earth and granular material
to be removed from the site described below for use by the buyer for use on
various construction projects that buyer is presently involved in constructing
an ethanol plant and railroad spur to the plant in Garnett, Kansas. Prior to
the date of this agreement, buyer has removed approximately 50,000 to 70,000
cubic yards of fill material from the Lake Site located on seller’s property,
and has removed 400,000 to 450,000 cubic yards of material from the Beanfield
Site located on seller’s property. Buyer estimates that it will need to a total
of approximately 200,000 additional cubic yards of material from these sites in
order to complete its projects, however, it is the agreement and understanding
of the parties that under the terms of this Agreement, Buyer is purchasing
sufficient additional fill material to finish its railroad spur project it is
constructing in conjunction with its processing plant located in Garnett,
Kansas, and Buyer shall not be limited to taking any fixed amount of material
under this agreement.


 


The
parties have agreed that the value of the material to be removed is
$300,000.00. Buyer will cause this amount to be paid to seller or to seller’s
credit in the following fashion.


 


A.            Buyer will transfer the sum of
$100,000.00 to Patriots Bank, Garnett, Kansas, for credit to Account No. 170453
maintained in the names of Seller and Stephen E. Lynch upon the execution of
this agreement.   [Handwritten: MB]


 


B.            Buyer will transfer
an additional sum of $100,000.00 to Patriots Bank, Garnett, Kansas for credit
to Account No. 170453 maintained in the names of Seller and Stephen E.
Lynch on November 15, 2005.     [Handwritten: MB]


 


C.            Buyer will transfer the final sum of
$ 100,000.00 to Patriots Bank, Garnett,


 


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Kansas,
for credit to Account No. 170453 maintained in the names of Seller and Stephen
E. Lynch on December 15, 2005          [Handwritten:
MB]


 


SECTION THREE

CONTROL OF CONTRACTOR’S WORK


 


It
is Buyer’s understanding that Seller intends to utilize the above monies,
through Stephen E. Lynch, to reclaim and or finish the Lake Site and to
construct a lake at the Beanfield Sites, provided, however, that Seller shall
be solely responsible for any plans, permits, and operations to be conducted
for such purposes by the contractor or contractors selected by Seller on Seller’s
property. Buyer has made no representations to Seller as to the suitability of
either of Seller’s sites for the construction of any lakes or other
impoundments of water on Seller’s property, has provided no plans, nor
specifications for the construction of such impoundments, and makes no
representations to Seller with respect to the suitability of the sites and/or
the construction of these impoundments desired by Seller on them.


 


SECTION FOUR

INDEMNIFICATION


 


Seller
agrees to indemnify and hold Buyer harmless with respect to any claims which
may be made against Buyer as a result of the construction of these impoundments
on Seller’s property, whether such claims be made by third parties, or by
Seller.


 


SECTION FIVE

ACREAGE


 


Buyer
shall move and set aside the topsoil above the granular fill materials over an
area of approximately 15 acres in seller’s bean field, more particularly
described below, and, shall cut down and remove granular fill materials from
the existing lake site, also more particularly described below, directed and
approved by seller.


 


SECTION SIX

DESCRIPTION OF AREA


 


The
Beanfield Site referred to herein is located in the following described tract
of real property in Anderson County, Kansas, to-wit:


 


A
tract of land in the Northeast Quarter (NE/4) of Section Five (5),
Township Twenty-one (21) South, Range Twenty (20) East.


 


The
Lake Site as referred to herein, is located in the following described tract of
real property in Anderson County, Kansas, to-wit:


 


The
Southwest Quarter (SWI4) of Section Five (5), Township


 


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Twenty-one
(21) South, Range Twenty (20) East.


 


In
witness whereof, the parties hereto have executed this agreement at Garnett,
Kansas, this 11th day of October, 2005.


 


 


	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Mike Burns

  	
   

  
	
   

  	
   

  	
  Mike
  Burns

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BUYER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Willam R. Pracht

  	
   

  
	
   

  	
   

  	
  William
  R. Pracht, Chairperson

  



 


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