exv10w36



 





Exhibit 10.36




OPTION TO PURCHASE




     For and in consideration of the sum of Ten Dollars and other good and valuable consideration
paid by Red Trail Energy, LLC, of 3754 Highway 8, Richardton, ND 58652, hereinafter referred to as
“Optionee” (whether one or more), to the North Dakota Development Fund and Stark County,
hereinafter referred to as “Owner” (whether one or more), and for and in consideration of the terms
and conditions herein contained, Owner does hereby give, grant and convey unto the Optionee the
option to purchase up to 200,000 units at any time within one year from date of this Option.



     The terms and conditions of this Option to Purchase are as follows:



     1. PURCHASE
PRICE: The purchase price for the heretofore described property shall be
the sum of One Dollar ($1.00) per unit plus a dividend equal to
81⁄4% interest from the date of the investment to date of closing on the transfer of the
units to Red Trail Energy, LLC.



     2. CONDITIONS OF OPTION: Optionee shall have the right to repurchase those units
solely for the purpose of funding its bonus plan for management. This option can only be exercised
for that purpose. If this option is exercised, Owner will sell units on a pro rata basis based upon
their respective ownership interests. The Option can be exercised at any time during the next year
and the total of shares available to Optionee shall not exceed 200,000 units.



     3. UNITS: Upon payment of the purchase price, the Owner shall execute and deliver
unto the Optionee a transfer document assigning the units to Optionee, free and clear of all liens
and encumbrances, excepting such liens and encumbrances as created by Optionee.



     4. EXERCISE OF OPTION: This Option may be exercised by the Optionee notifying Owner in
writing of its intent to exercise the Option to Purchase, specifying the number of units it wishes
to purchase and certifying to Owner that the units are being purchased to fund Optionee’s employee
bonus plan.



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     IN WITNESS WHEREOF, the parties hereto have hereunto set their hands this 11th day
of December, 2006.



	 	 	 	 	 	 	 
	 	 	OWNER:	 	 
	 
	 	 	 	 	 	 
	 	 	NORTH DAKOTA DEVELOPMENT FUND,

an agency of the state of North Dakota	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ Dean Reese
 

Dean Reese
	 	 
	 

	 	Its:
	 	CEO	 	 
	 
	 	 	 	 	 	 
	 	 	STARK COUNTY on behalf of the Community

Development Block Grant Program	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:
	 	/s/ George Nodland
 

George Nodland
	 	 
	 

	 	Its:
	 	Chairman	 	 
	 
	 	 	 	 	 	 
	 	 	OPTIONEE:	 	 
	 
	 	 	 	 	 	 
	 	 	RED TRAIL ENERGY, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:

Its:
	 	/s/ Ambrose R. Hoff
 

Chairman
	 	 






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	STATE OF NORTH DAKOTA

	 	)	 	 
	 

	 	ss.

	COUNTY OF BURLEIGH

	 	)	 	 






     On this 12th day of December, 2006, before me personally appeared Dean Reese,
known to me to be the CEO of the North Dakota Development Fund, who acknowledged to me that he
executed the foregoing instrument on behalf of said governmental entity.



	 	 	 	 	 
	(Seal)

	 	/s/ SCOT G. LONG
 

Notary Public
	 	 
	 

	 	State of North Dakota	 	 
	 

	 	My commission expires: 12/7/07	 	 






	 	 	 	 	 
	STATE OF NORTH DAKOTA

	 	)	 	 
	 

	 	ss.

	COUNTY OF Stark

	 	)	 	 






     On this 11 day of December, 2006, before me personally appeared George Nodland, known to me
to be the Chairman of Stark County on behalf of the Community
Development Block Grant Program, who
acknowledged to me that he executed the foregoing instrument on
behalf of said organization.



	 	 	 	 	 
	(Seal)

	 	/s/ JULIE FRITZ
 

Notary Public
	 	 
	 

	 	State of North Dakota	 	 
	 

	 	My commission expires: 10-12-2012	 	 






	 	 	 	 	 
	STATE OF NORTH DAKOTA

	 	)	 	 
	 

	 	ss.

	COUNTY OF Stark

	 	)	 	 






     On this 18 day of December, 2006, before me personally appeared Ambrose Hoff, known
to me to be the Chairman of Red Trail Energy, LLC, who acknowledged to me that he
executed the foregoing instrument on behalf of said company.



	 	 	 	 	 
	(Seal)

	 	/s/ DEELL HOFF
 

Notary Public
	 	 
	 

	 	State of North Dakota	 	 
	 

	 	My commission expires: 10-21-2011	 	 







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