Document:

Exhibit
10.10

April 24, 2006

Brian Kletscher

Highwater Ethanol, LLC

30427 County Highway 10

Vesta, Minnesota 56292

RE:                         Ethanol
Plant Design Survey

Highway Ethanol, LLC

Vesta,
Minnesota

Dear Brian:

Thank you for the
opportunity to submit this proposal for design survey services for your ethanol
plant project.  As you may be aware,
Yaggy Colby Associates has been involved with almost all Fagen, Inc., ethanol
plants in Minnesota and Iowa in some manner. 
In many instances, Yaggy Colby Assoicates has performed the design
survey and site civil design.  In
addition, Yaggy Colby Associates has provided such civil services for large
development projects for over thirty-five (35) years.

It is our
understanding that Highwater Ethanol intends to construct an ethanol production
facility on land shown on the attached map. 
It is further understood that the total land parcels involved is not
exactly known at this time.  Therefore,
the proposal will account for this.

The scope of
services for your project will be broken into two phases: design survey and
land survey.  The design survey includes
gathering detailed topographic surface and utility features to provide the
basis of design for the project.  The
land survey leads to the legal documents which described the boundaries of the
property.  More specifically, the scope
of work for the above is as follows:

1.                                       Design
Survey

·                  Detailed survey
of land surface features including roads, railroad tracks, fences, culverts,
vegetation and structures.

·                  Detailed survey
of utilities as located by the locating services.

·                  Drafting of
survey data.

·                  Electronic
file package to be sent to Fagen for design.

2.                                       Land
Survey

·                  Property
research.

·                  Determination of
property boundaries.

·                  Setting property
pins.

·                  Developing
plat of survey.

All above work is
performed with state of the art equipment including GPS.

 

Equal Opportunity
Employer

yaggy.com

 

Yaggy Colby Associates proposes the above scope of services on an
hourly rate basis with estimated fees as follows:

1.                                       Design
survey of Parcel 1 and 2 - $10,100

2.                                       Design
survey of all 3 - $12,100

3.                                       Land
survey of all parcels - $6,500

The above fees are
based on minimal difficulty finding section corners and access with an
ATV.  Should conditions arise or a change
in scope of work be requested by the owner, a fee proposal will be submitted
for approval.  Additional work will no
proceed without authorization.

The firm’s
standard terms and conditions have been included as part of this proposal.  Authorization of this proposal is for
approval of costs only.  Yaggy Colby
Associates will only perform the work requested by Highwater Ethanol.  Please feel free to call with any questions.

Sincerely,

YAGGY
COLBY ASSOCIATES

	
  /s/ Thomas K. Madden

  	
   

  
	
   

  	
   

  
	
  Thomas K. Madden, PE

  
	
  Project Engineer

  

 

Enclosure

TKM/jmw

Highwaterethanol.doc

 

AUTHORIZATION

I hereby authorize
Yaggy Colby Associates to proceed with the work identified herein.

	
  /s/ Brian Kletscher

  	
   

  	
  May 4, 2006

  	
   

  
	
  Authorized Signature

  	
   

  	
  Date

  

 

 

 

YAGGY
COLBY ASSOCIATES (YCA)

TERMS AND CONDITIONS

ARTICLE 1 – PAYMENT TO YCA

1.01                        Other
Provisions Concerning Payments

A.                                   Preparation of Invoices. 
Invoices will be prepared monthly in accordance with YAGGY COLBY
ASSOCIATES’ standard invoicing practices and will be submitted to OWNER by YCA,
unless otherwise agreed.  The amount
billed in each invoice will be calculated as set forth in Proposal.

B.                                     Payment of Invoices. 
Invoices are due and payable upon receipt.  If OWNER fails to make any payment due YCA for
services and expenses within 30 days after receipt of their invoice therefore,
the amounts due YCA will be increased at the rate of 1.5% per month (or the
maximum rate of interest permitted by law, if less.)  In addition, YCA may after giving seven days written
notice to OWNER, suspend services under this Agreement until YCA has been paid
in full all amounts due for services, expenses, and other related charges.  Design professionals shall not have any
liability whatsoever to the client for any costs or damages as a result of such
suspension caused by any breach of this Agreement by the Client.  Payments will be credited first to interest
and then to principal.

C.                                     As
required by the Construction Lien Law, YCA hereby notifies Owner that persons
or companies furnishing labor or materials for the construction on Owner’s land
may have lien rights on Owner’s land and buildings if not paid.

D.                                    Disputed Invoices.  If
the Client objects to any portion of an invoice, the Client shall so notify the
Design Professional in writing within 30 calendar days of receipt of the
invoice.  The Client shall identify the
specific cause of the disagreement and shall pay when due that portion of the
invoice not in dispute.  Interest as
stated shall be paid by the client on all disputed invoiced amounts resolved in
the Design Professional’s favor and unpaid for more than 30 calendar days after
date of submission.

E.                                      Payments Upon Termination. 
In the event of any termination under Paragraph 2.04, YCA will be
entitled to invoice OWNER and will be paid in accordance with Proposal for all
services performed or furnished and all Reimbursable Expenses incurred through
the effective date of termination.

ARTICLE 2 – GENERAL
CONSIDERATIONS

2.01                        Standards
of Performance

A.                                   The
standard of care for all professional services and related services performed
or furnished by YAGGY COLBY ASSOCIATES under this Agreement will be the care
and skill ordinarily used by members of their profession practicing under
similar circumstances at the same time and in the same locality.  YCA makes no warranties, expressed or
implied, under this Agreement or otherwise, in connection with their services.

B.                                     YCA
shall perform or furnish professional services and related services in phases
of the Project to which this Agreement applies. 
YCA shall serve as OWNER’s prime professional for the Project.  YCA may employ such Subconsultants as they
deems necessary to assist in the performance or furnishing of the
services.  YCA shall not be required to
employ any Subconsultant unacceptable to them.

C.                                     YCA
and OWNER will endeavor to comply with applicable Laws or regulations.  This Agreement is based on these requirements
as of its Effective Date.  Changes to
these

 

	
  

  	
  YCA Terms &
  Conditions

  	
  YCASTND

  

 

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requirements after
the Effective Date of this Agreement may be the basis for modifications to
OWNER’s responsibilities or to YCA’s scope of services, times of performance,
or compensation.

E.                                      OWNER
shall be responsible for, and YCA may rely upon, the accuracy and completeness
of all requirements, programs, instructions, reports, data, and other
information furnished by OWNER to TCA pursuant to this Agreement.  YCA may use such requirements, reports, data,
and information in performing or furnishing services under this Agreement.

F.                                      OWNER
shall make decisions and carry out its other responsibilities in a timely
manner and shall bare all costs incident thereto so as not to delay the
services of YCA.

2.02                        Use of
Documents

A.                                   All
Documents are instruments of service in respect to this Project, and YAGGY
COLBY ASSOCIATES shall retain an ownership and property interest therein
(including the right of reuse at the discretion of YCA) whether or not the
Project is completed.

B.                                     Copies
of Documents that may be relied upon by OWNER are limited to the printed copies
(also known as hard copies) that are signed or sealed by YCA.  Files in electronic media format of text,
data, graphics, or of other types that are furnished by YCA or OWNER are only
for convenience of OWNER.  Any conclusion
or information obtained or derived from such electronic files will be at the
user’s sole risk.

C.                                     OWNER
may make, and retain, and reuse copies of Documents for information and
reference in connection with use on the Project by OWNER with written
permission from YCA.  Such Documents are
not intended or represented to be suitable for reuse by OWNER or others on
extensions of Project or on any other project. 
Any such reuse or modification without written verification or
adaptation by YCA, as appropriate for the specific purpose intended, will be at
OWNER’s sole risk and without liability or legal exposure to YCA or to its
Subconsultants.  OWNER shall indemnify
and hold harmless YCA and its Subconsultants from all claims, damages, losses,
and expenses, including attorneys’ fees arising out of or resulting therefrom.

D.                                    If
there is a discrepancy between the electronic files and the hard copies, the
hard copies govern.

2.03                        Insurance

A.                                   YAGGY
COLBY ASSOCIATES shall procure and maintain Professional Liability, General
Liability, Workers Compensation, and Automotive Liability which are applicable
to the Project.

B.                                     OWNER
shall procure and maintain General Liability or Property Insurance policies
which are applicable to the Project.

2.04                        Termination

A.                                   The
obligation to provide further services under this Agreement may be terminated.

1.                                       For cause, by either party upon 30 days written notice in
the event of substantial failure by the other party to perform in accordance
with the terms hereof through no fault of the terminating party.

2.                                       For convenience, by OWNER effective upon the receipt of
notice by YCA.

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2.05                        Dispute
Resolution

A.                                   OWNER
and YAGGY COLBY ASSOCIATES agree to negotiate all disputes between them in good
faith for a period of 30 days from the date of notice, prior to exercising
their rights under provisions of this Agreement, or under law.

B.                                     Mediation
– In an effort to resolve any conflicts that arise during the design or
construction of the project or following the completion of the project, the
Client and the Design Professional agree that all disputes between them arising
out of or relating to this Agreement shall be submitted to nonbonding mediation
unless the parties mutually agree otherwise. 
The Client and the Design Professional further agree to include a
similar mediation provision in all agreements with independent contractors and
consultants retained for the project and to require all independent contractors
and consultants also to include a similar mediation provision in all agreements
with subcontractors, subconsultants, suppliers or fabricators so retained,
thereby providing mediation as the primary method for dispute resolution
between the parties to those agreements.

2.05                        Hazardous
Environmental Condition

A.                                   OWNER
represents to YAGGY COLBY ASSOCIATES that to the best of its knowledge, a
Hazardous Environmental Condition does not exist.

B.                                     OWNER
has disclosed to the best of its knowledge to YCA the existence of all
Asbestos, PCB’s Petroleum, Hazardous Waste, or Radioactive Material located at
or near the Project site, including type, quantity, and location.

C.                                     It
is acknowledged by both parties that YCA’s scope of services does not include
any services related to asbestos or hazardous or toxic materials.  In the event the Design Professional or any
other party encounters asbestos or hazardous or toxic materials at the jobsite,
or should it become known in any way that such materials may be present at the
jobsite or any adjacent areas that may affect the performance of the Design
Professional’s services, the Design Professional may, at his or her option and
without liability for consequential or any other damages, suspend performance
of services on the project until the Client retains appropriate specialist
consultants or contractors to identify, abate and/or remove the asbestos or
hazardous toxic materials, and warrant that the jobsite is in full compliance
with applicable laws and regulations.

D.                                    The
Client agrees, notwithstanding any other provision of this Agreement, to the
fullest extent permitted by law, defend, to indemnify and hold harmless the
Design Professional, his or her officers, partners, employees, agents and
consultants from and against any and all claims, suits, demands, liabilities,
losses, or costs, including reasonable attorneys’ fees and defense costs,
resulting or accruing to any and all persons, firms, and any other legal
entity, caused by, arising out of or in any way connected with the detection,
presence, handling, removal, abatement, or disposal of any asbestos or
hazardous toxic substances, products or materials that exist on, about or
adjacent to the jobsite, whether liability arises under breach of contract or
warranty, tort, including negligence, strict liability or statutory liability
or any other cause of action.

2.07                        Allocation
of Risk

A.                                   Indemnification

1.                                       To
the fullest extent permitted by law, YAGGY COLBY ASSOCIATES shall indemnify and
hold harmless OWNER, OWNER’s officers, directors, partners, and employees from
and against any and all costs, losses, and damages (including but not limited
to all fees and charges of engineers, architects, attorneys, and other
professions, and all court or arbitration or other dispute resolution costs)
caused solely by the negligent acts or omissions of YCA or its officers,

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directors,
partners, employees in the performance and furnishing of YCA’s services under
this Agreement.

2.                                       To
the fullest extent permitted by law, OWNER shall indemnify and hold harmless
YCA, its officers, directors, partners, employees, and Subconsultants from and
against any and all costs, losses, and damages (including but not limited to
all fees and charges of engineers, architects, attorneys, and other
professionals, and all court or arbitration or other dispute resolution costs)
caused solely by the negligent acts or omissions of OWNER or OWNER’s officers,
directors, partners, employees, and OWNER’s Consultants with respect to this
Agreement or the Project.

3.                                       To
the fullest extent permitted by law, YCA’s total liability to OWNER and anyone
claiming by, through, or under OWNER for any cost, loss, or damages caused in
part by the negligence of YCA and in part by the negligence of OWNER or any
other negligent entity or individual, shall not exceed the percentage share
that YCA’s negligence bears to the total negligence of OWNER, YCA, and all
other negligent entities and individuals.

 4Exhibit
10.11

OPTION
AGREEMENT

THIS OPTION AGREEMENT (the “Agreement”)
is made this 8th day
of August, 2006, by and between Highwater Ethanol, LLC a Minnesota limited
liability company (the “Buyer”) and David Geis and                           
Gies, husband and wife, and Steven Geis and Kathleen Gies, husband and wife
(the “Seller”).

WITNESSETH:

WHEREAS, Seller is the owner of
certain real property legally described on Exhibit “A” attached hereto (which
real property, together with all easements and other rights appurtenant
thereto, shall be defined herein as the “Property”);

WHEREAS, Buyer desires to
acquire an option to purchase the Premises (as defined in paragraph 1 hereof)
from Seller in accordance with the terms and conditions of this Agreement (the “Option”);
and

WHEREAS, the parties hereto
desire to set forth their agreement concerning the terms and conditions of such
Option.

NOW, THEREFORE, in consideration
of the foregoing, the mutual promises of the parties hereto and the mutual
benefits to be gained by the performance hereof, and for other valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:

1.                                      Grant
and Exercise of Option.  Buyer shall
have the option to purchase: i) Seller’s right, title and interest in and to at
least a six (6) acre and up to a twelve (12) acre portion of the Property,
consisting of one or more contiguous six (6) acre parcels to be more accurately
located and described following Buyer’s completion of well digging and water
exploration on the property; and ii) a permanent easement over such other
portions of the Property as may be necessary to accommodate the construction
and maintenance of a pipeline to transport water produced on the Premises to an
ethanol production facility proposed by Buyer at or near Lamberton, Minnesota,
and in and to any easements, hereditaments and other rights appurtenant thereto
in accordance with the terms and conditions of this Agreement (the “Premises”).  The parties acknowledge that the Premises
shall be contiguous with the township right-of-way touching the property.  The first six (6) tract shall begin at the
Southeast corner of the property and then 300 feet North and then a sufficient
number of feet West to make six (6) acres. 
If an additional six (6) acres is purchased it shall be correspondingly
300 feet in width, located along the township road, and contiguous with the
prior or first six (6) acres purchased. 
The measurement shall begin the middle of the road to determine the six
(6) acres for each tract.  The Premises
shall include any wells completed by Buyer under a contemporaneous License
Agreement between the parties hereto. 
This option shall continue in full force and effect for a period
commencing upon the date hereof and continuing until earlier of the date of
Buyer’s delivery to Seller of the “Option Notice” (as defined in Paragraph 8
hereof), or December 31, 2008, whichever occurs first.

 

2.                                      Purchase
Price.  The purchase price for the
Premises (the “Purchase Price”) shall be Seven Thousand and No/100 Dollars
($7,000.00) per purchased acre.  Said
acreage shall be described and depicted by a boundary survey to be completed at
the expense of the Buyer.  Said Purchase
Price, subject to adjustments and prorations as provided herein, shall be paid
as follows:

(a)                                  A
non-refundable deposit of One Thousand and No/100 Dollars ($1,000.00) (the “Option
Fee”) shall be paid to Seller upon execution of this Agreement and disbursed in
accordance with the terms hereof.  Except
as otherwise designated herein, the principal amount of the Option Fee shall be
credited against the Purchase Price payable at “Closing” (as the term is
defined in Paragraph 3 hereof);

(b)                                 The
balance of the Purchase Price, subject to prorations and adjustments as provided
herein, shall be payable by Buyer to Seller in cash or immediately available
funds at Closing.

3.                                      Closing
Date.  The closing (the “Closing”) of
this purchase and sale shall take place at a mutually agreeable location, on
the business day designated by Buyer in the Option Notice (as defined in
Paragraph 8 hereof), which day of Closing shall be defined herein as the “Date
of Closing”.

4.                                      Deliveries
by Seller at Closing.  If Buyer shall
have exercised its option in a timely manner and shall have performed all of
its obligations hereunder to the Date of Closing, then Seller shall, on the
Date of Closing, execute, where necessary, and deliver to Buyer the following:

(a)                                  A
general warranty deed in recordable form executed by Seller and conveying
marketable fee titled to the Premises to Buyer, free and clear of all
liabilities, liens, encroachments, encumbrances, easements, obligations,
charges and options of any kind whatsoever, except those disclosed by the
abstract or Commitment to be delivered pursuant to Paragraph 6 hereof;

(b)                                 An
easement, if requested by Buyer, in recordable form executed by Seller and
conveying a right of way over and across the Property, in a width to be
negotiated by the parties hereto, for the purpose of constructing, maintaining and
operating thereon a water pipeline as further described in Paragraph 1 hereof;

(c)                                  An
affidavit indicating that on the Date of Closing there are no outstanding,
unsatisfied judgments, tax liens or bankruptcies against or involving the
Seller, that there has been no skill, labor, or material furnished to the
Premises by Seller for which mechanics’ liens could be filed, and that there
are no other unrecorded interests in the Premises of

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any kind, including, but
not limited to, any leasehold interest in the Premises;

(d)                                 A
Well Certificate in the form required by Minn. Stat. § 103I.235, or a
designation on the deed that otherwise satisfies said statutory requirements;
and

(e)                                  Such
additional documents that are reasonable in form as shall reasonably be necessary
to carry out the intent of this Agreement.

5.                                      Deliveries
by Buyer at Closing.  If Seller shall
have performed all of its obligations hereunder to the Date of Closing, the
Buyer shall, on the Date of Closing, execute, where necessary, and deliver the following:

(a)                                  The
Purchase Price;

(b)                                 The
reasonable value of any crops growing on the Premises if Closing occurs
following planting but prior to harvest; and

(c)                                  Such
additional documents as shall reasonably be necessary to carry out the intent
of this Agreement.

At closing, Seller
shall pay the state deed tax payable upon recording the above warranty deed and
easement and Buyer shall pay the recording fees for the filing of said warranty
deed and easement.  Each party shall be
responsible for the payment of any attorneys’ fees that it may incur in this
transaction.  Any closer’s fee incurred
in the closing of this sale transaction shall be paid by Buyer.

6.                                      Title
Examination.  Within forty-five (45)
days after the date of the delivery by Buyer of an Option Notice, Seller, as
its sole cost and expense, shall deliver to buyer, for Buyer’s examination, an
updated abstract of title for the Premises. 
In the alternative, in lieu of providing the Abstract of Title, the
Seller may provide a commitment (the “Commitment”) for the issuance of an ALTA
owner’s policy of the insurance, with extended coverage issued by Title
Company, in the amount of the Purchase Price, committing to insure that Buyer
will have good and marketable title to the Premises and its appurtenances on
the Date of Closing free and clear of any liens and exceptions to title and
including relevant tax lien, special assessment, judgment and bankruptcy
searches.

In the event Buyer
does not timely receive the updated abstract or Commitment within the time
specified, Buyer may obtain such document, at Seller’s cost and expense.  Title to the Premises and its appurtenances
shall be subject to Buyer’s approval and all objections to the status of title
shall be delivered to Seller in writing within ten (10) business days
after receipt of the abstract or Commitment. 
Seller shall correct all such objections within sixty (60) days of
Seller’s receipt thereof, it being understood that marketable fee title and not
insurable title to the Premises an is appurtenances is to be conveyed by Seller
to Buyer; provided, in the event such objection cannot be corrected

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within said sixty
(60) day period, such period shall be extended to the ext3nt reasonably
necessary to complete such correction so long as Seller commences an effective
cure thereof within said sixty (60) day period and prosecutes such cure
diligently to completion.  If title to
the Premises and its appurtenances is not marketable and is not made so by
Seller within sixty (60) days of the delivery of said objections, or such
longer period as may be available to Seller hereunder, Buyer shall have the
option, in addition to other remedies available at law or in equity, to:

(a)                                  Declare
this Agreement null and void; or

(b)                                 Waive
any defect in title and, in such event, proceed to close the transaction
contemplated by this Agreement; provided, Buyer shall have the option, at
Closing, to pay directly any liens, mortgages, charges or similar encumbrances
against the Premises that are liquidated in amount, and Buyer may deduct the
amount so paid from the Purchase Price.

7.                                      Prorations.  Real estate taxes, if any, that are levied or
assessed against the Premises and that are currently payable in the year in
which Closing occurs shall be prorated as of the Date of Closing.  Seller shall pay the entirety of all special
assessments and deferred taxes, if any, that are levied against the Premises as
of the Date of Closing.

8.                                      Option
Notice.  Seller acknowledges that
Buyer and other third-parties are seeking, or will seek, at their sole expense,
various approvals from governmental or private authorities having jurisdiction
over the Premises necessary to develop the Premises and nearby properties as
desired by Buyer and such third-parties (collectively, the “Required Approvals”).  Upon Buyer or such third-parties’ receipt of
all Required Approvals, Buyer may provide Seller written notice to that effect
(the “Option Notice”).  The Option Notice
shall designate the Date of Closing; provided, however, the Date of Closing
shall occur within sixty (60) days of the date the Option Notice is delivered
to Seller. Upon the delivery of the Option Notice, Buyer shall be obligated to
close upon its purchase of the Premises in accordance with the terms
hereof.  Seller acknowledges that Buyer
has made no representation or warranty that an Option Notice will be delivered
by Seller hereunder.  Notwithstanding any
contrary provision herein, the event that, for whatever reason, Buyer fails to
deliver the Option Notice to Seller on or before December 31, 2008, this
Agreement shall be deemed expired and all of Buyer’s rights hereunder shall be
deemed waived and of no further force and effect.  In the event of any expiration or earlier
termination of this Agreement, either party shall, upon the request of the
other, execute and deliver an instrument that is reasonable in form and that
memorializes the occurrence and effect of such expiration or termination.

9.                                      Assignment.  Seller acknowledges that Buyer may not be the
party that will be developing this Premises, and that Buyer may assign its
rights under this contract to a third party. 
The parties acknowledge and agree that Buyer shall have the right to
sell, assign and transfer this Option, and all rights, title and interests
created herein, without Seller’s prior approval.  Buyer shall provide copies of any and all
documentation to Seller contemporaneous with any such assignment.

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10.                               Seller’s
Option to Rent Back Tillable Acres. 
If Buyer rents out any tillable acres that is purchases hereby, Seller
shall have the first right to rent such at $50 per tillable acre.

11.                               Miscellaneous.

(a)                                  Notices.  Any notice required herein shall be deemed
effective if it is personally delivered, delivered prepaid to a
nationally-recognized overnight air courier for overnight delivery, to Seller
or Buyer at the following addresses:

To Seller:                                              David
and                   Geis

To
Buyer:                                           Highwater
Ethanol, LLC

c/o
Kevin Stroup

300
O’Connell Street

Marshall, MN  56258

Either party may designate an additional or another
address upon giving notice to the other party pursuant to this paragraph.  Notice given in any manner other than as
stated herein, shall be deemed effective only upon receipt by the party to whom
such notice is given.

(b)                                 Interpretation.  This Agreement constitutes the entire
understanding between the parties.  It
may be amended or modified only in a writing signed by Seller and Buyer.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Minnesota.

(c)                                  Waivers.  Neither the extension of time nor payment of
any sum of money to be paid hereunder nor any waiver by Seller of its right to
declare this Agreement forfeited by reasons of any breach hereof, shall in any
manner affect the right of Seller to terminate this Agreement because of a
subsequent default.  No extension of time
or waiver shall be effective unless given in writing signed by Seller.

(d)                                 Additional
Documents.  After the Closing, each
of the parties, without further consideration, agrees to execute such
additional documents as may reasonably be necessary to carry out the purposes
and intent of this Agreement and to fulfill the obligations of the respective
parties hereunder.  Upon the expiration
or earlier termination of this Agreement and upon Sellers written request
therefore, Buyer shall execute and deliver to Seller a quit claim deed to the
Premises or other instrument that is

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reasonable in form and
that memorializes the occurrence and effect of any such expiration or
termination.

(e)                                  Commissions.  Seller hereby warrants to Buyer and Buyer
hereby warrants to Seller that no broker, agent or finder has been retained by
either party and that no broker’s commissions, finder’s fees or like charges
have been incurred in connection with this transaction.

(f)                                    Headings.  The headings in this Agreement are inserted
for convenience only and shall not constitute a part hereof.

(g)                                 Parties.  This Agreement shall bind and inure to the
benefit of the parties hereto and their respective successors and permitted
assigns.

(h)                                 Survival.  The covenants contained herein shall survive
Closing of this transaction.

(i)                                     Use
of Premises.  To the extent permitted
by applicable law, and without waiving the provisions of Minn. Stat. Chapter
466, Buyer hereby agrees to indemnify and hold Seller and the Premises harmless
from and against any and all liens, losses, claims, causes of action,
liabilities and costs of defense incurred by Seller arising out of the actions
of Buyer, its agents, employees, contractors o invitees upon the Premises prior
to closing, except to the extent caused by the negligence or willful misconduct
of Seller or its agents, employees or contractors.

(j)                                     Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original, but all of which
shall constitute one and the same instrument.

12.                               REPAIR
TILE.  Buyer shall repair any tile
damage by its exercise of this option (or the corresponding License Agreement)
and/or use of this property.

13.                               USE
OF FIELD ROAD.  Seller shall have the
right to use the field road for access to their remaining property.  Seller shall also be granted a permanent
easement for ingress and egress across any property sold hereby as access to
Seller’s remaining property, subject to the limitation that such use shall not
affect any wells or the use thereof as placed on said property by Buyer.

THIS OPTION AGREEMENT has been
executed and delivered as of the date first above written.

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  SELLER:

  	
   

  	
  BUYERS:

  
	
   

  	
   

  	
  Highwater Ethanol, LLC

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ David Geis

  	
   

  	
  By:

  	
   

  	
  /s/ Brian
  Kletscher

  
	
   

  	
   

  	
  David Geis

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Its: 

  	
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Warren
  Pankonin

  
	
   

  	
   

  	
   

  	
   Geis

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Its:

  	
  Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Steven Geis

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Steven Geis

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Kathleen
  Geis

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Geis

  	
   

  	
   

  	
   

  	
   

  
										

 7
 

 

EXHIBIT “A”

Legal
Description of Premises

The Southwest Quarter
(SW1/4) of Section 29, Township 109 North, Range 37 West, Redwood County,
Minnesota.

 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]