Document:

PRAIRIE
      CREEK ETHANOL, LLC

    

    SUBSCRIPTION
      AGREEMENT

    

    Limited
      Liability Company Membership Units 

     

    $5,000
      per Unit

     

    Minimum
      Investment of 2 Units ($10,000)

    1
      Unit Increments Thereafter ($5,000)

    

    The
      undersigned subscriber ("Subscriber"), desiring to become a member of Prairie
      Creek Ethanol, LLC (“Prairie Creek”), an Iowa limited liability company, with
      its principal place of business at 415 N. Locust Street, PO Box 280, Goldfield,
      Iowa 50542 hereby subscribes for the purchase of membership units of Prairie
      Creek, and agrees to pay the related purchase price, identified
      below.

     

    A. SUBSCRIBER
      INFORMATION. Please
      print your individual or entity name and address. If we accept your
      subscription, the units will be titled in the name of the subscriber as it
      appears below. Joint subscribers should provide both names. Your name and
      address will be recorded exactly as printed below. Please provide your home,
      business and/or mobile telephone number. If desired, please also provide your
      e-mail address. 

    

    
      	
              1.

            	
              Subscriber's
                Printed Name 

            	
              _________________________________________________________
                

            
	
              2.

            	
              Title,
                if applicable

            	
              _________________________________________________________

            
	
              3.

            	
              Subscriber's
                Address

            	 
	 	
              Street
                

            	
              _________________________________________________________

            
	 	
              City,
                State, Zip Code

            	
              _________________________________________________________

            
	
              4.

            	
              E-mail
                Address (optional)

            	
              _________________________________________________________

            
	
              5.

            	
              Home
                Telephone Number

            	
              _________________________________________________________

            
	
              6.

            	
              Business
                Telephone Number

            	
              _________________________________________________________

            
	
              7.

            	
              Mobile
                Telephone Number

            	
              _________________________________________________________

            

    

    

    B. NUMBER
      OF UNITS PURCHASED. You
      must
      purchase at least 2 units. Your ownership interest may not exceed 30% of our
      outstanding membership units. We currently have 1,523 units outstanding.
      Accordingly, assuming that we sell the minimum number of 11,800 units in this
      offering, you may not purchase more than 3,996 units. The maximum number of
      units to be sold in the offering is 27,600.

                 

      	
               

              units  
                

            

    

    

    C. PURCHASE
      PRICE. Indicate
      the dollar amount of your investment (minimum investment is
      $10,000).

    

    
      	
              1.
                Total
                Purchase Price

              ($5,000
                per unit multiplied 

              by
                number of units)

            	
              =

            	
              2.
                1st
                Installment

              (10%
                of Total Purchase Price)

            	
              +

            	
              3.
                2nd
                Installment

              (90%
                of Total Purchase Price)

            
	 	 	 	 	 
	 	 	 	 	 
	 	
              =

            	 	
              +

            	 

    

    

    D. GENERAL
      INSTRUCTIONS FOR SUBSCRIBERS: 

    

    You
      should read the Prospectus dated [DATE OF EFFECTIVENESS] (the "Prospectus")
      in
      its entirety including the exhibits for a complete explanation of an investment
      in Prairie Creek. 

    

    INSTRUCTIONS
      IF YOU ARE SUBSCRIBING PRIOR
      TO THE COMPANY’S RELEASE OF FUNDS FROM ESCROW: If
      you
      are subscribing prior to the Company’s release of funds from escrow, you must
      follow the instructions contained in paragraphs 1 through 5 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.

    
      
        
        

      

      
        1

        
          

        

      

       

    

     

    2. Immediately
      provide a personal (or business) check for the first installment of ten percent
      (10%) of your investment amount. The check should be made payable to
“Iowa
      State Bank of Algona, escrow agent for Prairie Creek Ethanol,
      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 on page 7 of
      this
      Subscription Agreement evidencing your commitment to pay the remaining ninety
      percent (90%) due for the units. The Promissory Note and Security Agreement
      is
      attached to this Subscription Agreement and grant Prairie Creek Ethanol, LLC
      a
      security interest in your units.

    

    4.
       Deliver
      the original executed documents referenced in paragraphs 1 and 3 of these
      instructions, together with a personal or business check as described in
      Paragraph 2 of these instructions to:

     

    Prairie
      Creek Ethanol, LLC   

    415
      N.
      Locust Street, PO Box 280

    Goldfield,
      Iowa 50542  

    

    5. Within
      20
      days of written notice from Prairie Creek that your subscription has been
      accepted, you must remit an additional personal (or business) check for the
      second installment of ninety percent (90%) of your investment amount made
      payable to “Iowa
      State Bank of Algona, escrow agent for Prairie Creek Ethanol,
      LLC”
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 paragraph 4 within twenty (20) days of the date of Prairie
      Creek's written notice. If you fail to pay the second installment pursuant
      to
      the Promissory Note and Security Agreement, Prairie Creek shall be entitled
      to
      retain your first installment and to seek other damages, as provided in the
      Promissory Note and Security Agreement. This means that if you are unable to
      pay
      the 90% balance of your investment amount within 20 days of our notice, you
      may
      have to forfeit the 10% cash deposit.

    

    Your
      funds will be placed in Prairie Creek’s escrow account at Iowa State Bank of
      Algona. The funds will be released to Prairie Creek or returned to you in
      accordance with the escrow arrangements described in the Prospectus. Prairie
      Creek may, in its sole discretion, reject or accept any part or all of your
      subscription. If Prairie Creek rejects your subscription, your Subscription
      Agreement and investment will be promptly returned to you, plus any nominal
      interest. Prairie Creek 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
      THE COMPANY’S RELEASE OF FUNDS FROM ESCROW: If
      you
      are subscribing after the Company’s release of funds from escrow, you must
      follow the instructions contained in paragraphs 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 “Prairie
      Creek Ethanol, LLC.”

    

    3.
       Deliver
      the original executed documents referenced in paragraph 1 of these instructions,
      together with your personal or business check as described in paragraph 2
      to:

     

    Prairie
      Creek Ethanol, LLC   

    415
      N.
      Locust Street, PO Box 280

    Goldfield,
      Iowa 50542 

    

    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. Prairie Creek may, in its sole discretion, reject or accept any
      part
      or all of your subscription. If Prairie Creek rejects your subscription, your
      Subscription Agreement and investment will be returned to you promptly, plus
      any
      nominal interest. Prairie Creek 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 either of our directors listed below or to Prairie
      Creek at (515)
      825-3161.

     

    
      	
              NAME

            	 	
              POSITION

            	 	
              PHONE
                NUMBER

            
	
              Brad
                Davis

            	 	
              Senior
                Vice President of Project Development

            	 	
              (515)-293-2730

            
	
              Clay
                Hansen

            	 	
              Chairman,
                President and Director

            	 	
              (515)-368-1795

            
	
              Mervin
                Krauss

            	 	
              Vice
                Chairman, Vice President and Director 

            	 	
              (641)-512-9083

            
	
              Duane
                Madoerin

            	 	
              Vice
                President of Commodities

            	 	
              (515)-293-1434

            
	
              Mike
                Nail

            	 	
              Vice
                President of Marketing

            	 	
              (515)-293-1966

            
	
              Lynn
                Ostendorf

            	 	
              Vice
                President of Development

            	 	
              (641)-425-9500

            
	
              John
                Rohrer

            	 	
              Vice
                President of Transportation

            	 	
              (515)-293-1270

            
	
              John
                Stelzer

            	 	
              Treasurer

            	 	
              (515)-293-1710

            
	
              Mark
                Wigans 

            	 	
              Secretary
                and Director

            	 	
              (515)-368-1135

            

    

    

    
      
        
        

      

      
        2

        
          

        

      

       

    

    

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

    

    
      	 	
              1.

            	
              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.

    

    
      	 	 	 _______________________________________________________

    

    
      	 	 	 _______________________________________________________

    

     

    
      	 	
              2.

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

              	___________________________________

      

     

    
      	 	
              3.

            	
              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.

               

            

    

    

    
      	 	
              5.

            	
              Suitability
                Standards.
                You cannot invest in Prairie Creek unless you meet one of the following
                suitability tests (a or b) set forth below. Please review the suitability
                tests and check the box next to the following suitability test 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

            

    

    
      
        
        

      

      
        3

        
          

        

      

       

    

    

    
      	 	
              b. o 

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

            

    

    

    
      	 	
              c. o 

            	
              I
                (We) have a net worth of $150,000, exclusive of home, home furnishings,
                and automobiles;

            

    

    

    
      	 	
              d.
                o 

            	
              I
                (We) reside in Iowa and I (we) have a net worth of $60,000 (exclusive
                of
                home, auto and furnishings) and annual income of $60,000 or, in the
                alternative, a net worth of $150,000 (exclusive of home, auto and
                furnishings); or

            

    

    

    
      	 	
              e.
                o 

            	
              I
                (We) reside in Kansas and I (we) have a net worth of $60,000 (exclusive
                of
                home, auto and furnishings) and annual income of $60,000 or, in the
                alternative, a net worth of $225,000 (exclusive of home, auto and
                furnishings).

            

    

    

    
      	 	
              6.

            	
              Agricultural
                Producer.
                Please indicate below whether the subscribing person or entity meets
                the
                following definition of an Agricultural Producer: Persons or entities,
                including farmers, ranchers, loggers, agricultural harvesters and
                fishermen, that engage in the production or harvesting of an agricultural
                product. Producers may or may not own the land or other production
                resources, but must have majority ownership interest in the agricultural
                product to which value is added as a result of the project. Examples
                of
                agricultural producers include but are not limited to: a cattle or
                hog
                feeder that has a majority interest in the livestock that is fed,
                slaughtered and sold as beef or pork products or corn grower that
                has a
                majority interest in the corn produced that is then converted into
                corn
                meal. 

            

    

    

    
      	 	
              a. o 

            	
              I
                (we) qualify as an Agricultural Producer based on the above definition.
                

            

    

    

    
      	 	
              b. o 

            	
              I
                (we) do
                not
                qualify as an Agricultural Producer based on the above definition.
                

            

    

    

    
      	 	
              7.

            	
              Subscriber's
                Representations and Warranties.
                You must read and certify your representations and warranties by
                placing
                your initials where indicated and by signing and dating this Subscription
                Agreement. Joint
                subscribers are also required to initial and sign as
                indicated.
                

            

    

    

    (Initial
      here) (Joint initials) By signing below the subscriber represents and warrants
      to Prairie Creek that he, she or it:

    

    
      	 _____	
               _____

            	
               

            	
              a.

            	
              has
                received a copy of Prairie Creek's Prospectus dated [DATE OF
                EFFECTIVENESS] and the exhibits thereto or has received notice that
                this
                sale has been made pursuant to a registration statement in which
                a final
                prospectus would have been required to have been delivered in the
                absence
                of Rule 172;

            

    

    
      	 	 	 	 	 

      	  _____	
               _____

            	
               

            	
              b.

            	
              has
                been informed that the units of Prairie Creek are offered and sold
                in
                reliance upon a federal securities registration; state registrations
                in
                Florida, Illinois, Iowa, Kansas, Missouri, Nebraska, South Dakota
                and
                Wisconsin; 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 securities purchased pursuant to this Subscription
                Agreement have not been registered under the securities laws of any
                state
                other than Florida, Illinois, Iowa, Kansas, Missouri, Nebraska, South
                Dakota and Wisconsin and that Prairie Creek 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 SEC, or the Florida, Illinois, Iowa, Kansas, Missouri,
                Nebraska, South Dakota and Wisconsin 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 that 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 Prairie Creek'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 seek the advice of his legal counsel and accountants
                or
                other financial advisers with respect to investor-specific tax and/or
                other considerations relating to the purchase and ownership of
                units;

            

    

    
      	 	 	 	 	 

      	  _____	 _____	
               

            	
              h.

            	
              has
                received a copy of the Prairie Creek Amended and Restated Operating
                Agreement, dated March 13, 2007, and understands that upon closing
                the
                escrow by Prairie Creek, the subscriber and the membership units
                will be
                bound by the provisions of the Amended and Restated Operating Agreement
                which contains, among other things, provisions that restrict the
                transfer
                of membership units; 

            

    

    
      
        
        

      

      
        4

        
          

        

      

       

    

    

    
      	  _____	
               _____

            	
               

            	
              i.

            	
              understands
                that the units are subject to substantial restrictions on transfer
                under
                certain tax and securities laws along with restrictions in the Prairie
                Creek 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 pursuant to the terms of the Amended and
                Restated
                Operating Agreement, and the requirements of the Securities Act of
                1933,
                as amended, and applicable tax and securities laws;
                

            

    

    
      	 	 	 	 	 

      	  _____	 _____	
               

            	
              j.

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

            

    

    
      	 	 	 	 	 

      	  _____	
               _____

            	
               

            	
              k.

            	
              understands
                that Prairie Creek will place a restrictive legend on any certificate
                representing any unit containing substantially the following language
                as
                the same may be amended by the Directors of Prairie Creek in their
                sole
                discretion:

            

    

    

    THE
      TRANSFERABILITY OF THE MEMBERSHIP UNITS REPRESENTED BY THIS DOCUMENT IS
      RESTRICTED. SUCH UNITS MAY NOT BE SOLD, ASSIGNED, OR TRANSFERRED, NOR WILL
      ANY
      ASSIGNEE, VENDEE, TRANSFEREE OR ENDORSEE THEREOF 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, THE TERMS AND CONDITIONS SET FORTH IN THE OPERATING
      AGREEMENT OF THE COMPANY, AS AMENDED FROM TIME TO TIME.

    

    THE
      UNITS
      REPRESENTED BY THIS DOCUMENT MAY NOT BE SOLD, OFFERED FOR SALE, OR TRANSFERRED
      IN 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, Prairie
              Creek 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.

            	
              may
                not transfer or assign this Subscription Agreement, or any of the
                subscriber's interest herein without the prior written consent of
                Prairie
                Creek; 

            

    

    
      	 	 	 	 	 

      	 _____	 _____	
               

            	
              n.

            	
              has
                written his, her, or its correct taxpayer identification number under
                Item
                E.2 on this Subscription Agreement;

            

    

    
      	 	 	 	 	 

      	  _____	 _____	
               

            	
              o.

            	
              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 Item E.2 is checked);
                

            

    

    
      	 	 	 	 	 

      	  _____	
               _____

            	
               

            	
              p.

            	
              understands
                that execution of the attached Promissory Note and Security Agreement
                will
                allow Prairie Creek 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 that Promissory Note and Security Agreement;
                and

            

    

    
      	 	 	 	 	 

      	  _____	
               _____

            	
               

            	
              q.

            	
              acknowledges
                that Prairie Creek may retain possession of certificates representing
                subscriber’s units to perfect its security interest in those
                units.

            

    

    

    
      
        
        

      

      
        5

        
          

        

      

       

    

     

    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 PRAIRIE CREEK ETHANOL, LLC:

     

    Prairie
      Creek Ethanol, LLC hereby accepts Subscriber's subscription
      for  __________
      units.

    

    Dated
      this ______ day
      of
      ________________________________,
      200____.

     

    

      
        	
                PRAIRIE
                  CREEK ETHANOL, LLC

              	 	 
	 	 	 
	By: 	 	 
	
                
                  

                

              	 	 
	Its:
	 	 
	
                
                  

                

              	 	 

      

    

    

      
        
          
          

        

        
          6

          
            

          

        

         

      

    

     

    PROMISSORY
      NOTE
      AND SECURITY AGREEMENT

    

    Date
      of
      Subscription Agreement: ___________________________________, 200__.

     

    $5,000
      per Unit

     

    Minimum
      Investment of 2 Units ($10,000); Units Sold in 1 Unit Increments Thereafter
      ($5,000 each)
 

    
      	
               

            	 	
              Number
                of Units Subscribed

            
	 	 	
               

              Total
                Purchase Price ($5,000 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 Prairie Creek
      Ethanol, LLC, an Iowa limited liability company ("Prairie Creek"), at its
      principal office located at 415 N. Locust Street, PO Box 280, Goldfield, Iowa
      50542, or at such other place as required by Prairie Creek, the Principal
      Balance set forth above in one lump sum to be paid without interest within
      20
      days following the call of the Prairie Creek Board of Directors, as described
      in
      the 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
      Prairie Creek. 

     

    The
      undersigned agrees to pay to Prairie Creek 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 Iowa. 

     

    The
      provisions of this Promissory Note and Security Agreement shall inure to the
      benefit of Prairie Creek and its successors and assigns, which expressly
      reserves 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 Prairie Creek, and its successors and assigns (“Secured
      Party”), a purchase money security interest in all of the undersigned’s
      membership units of Prairie Creek 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 Obligor

              	 	 

                
Printed
                or Typed Name of Joint Obligor
	 	 	 
	 	 	 
	
                By:

              	 	 By:
	
                
                  

                

                (Signature)

              	 	
                
                  
(Signature)

              
	 	 	 
	 	 	 
	 

                
Officer
                Title if Obligor is an Entity	 	 
	 	 	 
	
                

              	 	 
	 	 	 
	
                
 	 	 

      

     

    Address
      of Obligor        

    
      
        
        

      

      
        7

        
          

        

      

       

    

    Exhibit
      A

    

    MEMBERS
      SIGNATURE PAGE

    

    ADDENDA
      

    TO
      THE 

    AMENDED
      AND RESTATED OPERATING AGREEMENT OF 

    PRAIRIE
      CREEK ETHANOL, LLC

    

    The
      undersigned does hereby represent and warrant that the undersigned, as a
      condition to becoming a Member of Prairie Creek Ethanol, LLC, has received
      a
      copy of the Amended and Restated Operating Agreement of Prairie Creek Ethanol,
      LLC (“Operating Agreement”), dated March 13, 2007, and, if applicable, all
      amendments and modifications thereto, and does hereby agree that the
      undersigned, along with the 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
      and accepted on behalf of the 

    Company
      and its Members:

    

    PRAIRIE
      CREEK ETHANOL, LLC

    

    BY:______________________________________

    

    ITS:______________________________________ESCROW
      AGREEMENT

    

    THIS
      ESCROW AGREEMENT
      (this
      "Agreement") is made this _______ day of _____________, 20____, by and between
      Prairie Creek Ethanol, LLC an Iowa limited liability company (“Prairie Creek”)
      and ____________________ as escrow agent (the “Escrow Agent”). 

     

    WITNESSETH: 

    

    WHEREAS,
      Prairie
      Creek proposes to offer a minimum of 11,800 and a maximum of 27,600 of its
      Membership Units (the “Units”) at a price of $5,000 per Unit, in minimum blocks
      of two (2) Units in an offering registered with the Securities and Exchange
      Commission and in the states of Florida, Illinois, Iowa, Kansas, Missouri,
      Nebraska, South Dakota, Wisconsin, and possibly offered in other states pursuant
      to state securities registration exemptions and under the provisions of the
      Securities Act of 1933, as amended; 

    

    WHEREAS,
      Prairie
      Creek will file a registration statement to register the Units with the
      Securities and Exchange Commission, the States of Florida,
      Illinois, Iowa, Kansas, Missouri, Nebraska, South Dakota and
      Wisconsin,
      and
      possibly other states; 

    

    WHEREAS,
      Prairie
      Creek will allow investors in the Offering to deliver the purchase price of
      the
      subscribed Units in installments; and 

    

    WHEREAS,
      Prairie
      Creek desires to comply with the requirements of federal and state securities
      laws and regulations, and desires to protect the investors in the Offering
      by
      providing, under the terms and conditions herein set forth, for the return
      to
      subscribers of the money which they may pay on account of purchases of Units
      in
      the Offering if the Minimum Escrow Deposit (hereinafter defined) is not
      deposited with the Escrow Agent.

    

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants herein contained and for other good and
      valuable consideration, the receipt and sufficiency of which is acknowledged,
      the parties agree as follows:

    

    1. Acceptance
      of Appointment.
      ___________________ hereby agrees to act as Escrow Agent under this Agreement.
      The Escrow Agent shall have no duty to enforce any provision hereof requiring
      performance by any other party hereunder.

    

    

    2. Establishment
      of Escrow Account.
      An
      escrow account (the "Escrow Account") is hereby established with the Escrow
      Agent for the benefit of the investors in the Offering. Except as specifically
      provided in this Agreement, the Escrow Account shall be created and maintained
      subject to the customary rules and regulations of the Escrow Agent pertaining
      to
      such accounts.

    

    3. Ownership
      of Escrow Account.
      Until
      such time as the funds deposited in the Escrow Account (the "Deposited Funds")
      shall equal the Minimum Escrow Deposit (as hereinafter defined), all funds
      deposited in the Escrow Account by Prairie Creek shall not become the property
      of Prairie Creek or be subject to the debts of Prairie Creek or any other person
      but shall be held by the Escrow Agent solely for the benefit of the investors
      who have purchased Units in the Offering.

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

    

    4. Deposit
      of Proceeds.
      All
      proceeds from sales of Units in the Offering shall be delivered by Prairie
      Creek
      to the Escrow Agent, within forty-eight hours of the receipt thereof from
      investors, endorsed (if appropriate) to the order of the Escrow Agent, together
      with an appropriate written statement setting forth name, address and social
      security number of each person purchasing Units, the number of Units purchased,
      and the amount paid by each such purchaser. Any such proceeds deposited with
      the
      Escrow Agent in the form of uncollected checks shall be promptly presented
      by
      the Escrow Agent for collection through customary banking and clearing house
      facilities. As the proceeds of each sale are deposited with the Escrow Agent,
      Prairie Creek shall reserve the number of Units confirmed to the purchaser
      thereof in connection with such sale. All such deposited proceeds are referred
      to herein as the "Escrow Funds".

    

    5. Investment
      of Escrow Account.
      The
      Escrow Funds shall be credited by the Escrow Agent and recorded in the Escrow
      Account. The Escrow Agent shall be permitted, and is hereby authorized to
      deposit, transfer, hold and invest all funds received under this Agreement,
      including principal and interest, in those investments directed, in writing
      by
      Prairie Creek. The Escrow Agent is hereby authorized to invest Escrow Funds
      in
      an ____________________ Deposit Account that is collateralized by United States
      Government Agency Securities for temporary investment without written direction.
      Any interest received by the Escrow Agent on this Deposit Account shall be
      paid
      to Prairie Creek, or the investors, as indicated elsewhere in this
      Agreement.

    

    6. Termination
      of Escrow.
      This
      Agreement and the Escrow created hereunder shall be terminated as provided
      in
      paragraph 7 hereof or as of the date in calendar year 2008 (the "Termination
      Date"), which is one year and one day following the date in calendar year 2007
      upon which the Securities and Exchange Commission authorizes the Offering (the
      "Offering's Effective Date"). The Company shall notify Escrow Agent of the
      Offering's Effective Date within thirty (30) days of the receipt of notice
      of
      the Offering's Effective Date from the Securities and Exchange Commission.
      

     

    7. Disposition
      of Escrow Funds.
      The
      Escrow Agent shall have the following duties and obligations under this
      Agreement:

    

    A. The
      Escrow Agent shall send a written notice acknowledging the receipt of the
      Deposited Funds every seven days to the Company. 

    

    B. The
      Escrow Agent shall give the Company prompt written notice when the Deposited
      Funds equal $5,900,000 (exclusive of interest). Following receipt of such
      notice, the Company will advise the purchasers of Units to remit to the Escrow
      Agent the balance of the purchase price within twenty (20) days. Thereafter,
      Escrow Agent shall give the Company written notice acknowledging the receipt
      of
      the Deposited Funds every seven days. The Escrow Agent shall give the Company
      prompt written notice when the Deposited Funds total $59,000,000 (exclusive
      of
      interest). 

    

    C. At
      the
      time (and in the event) that: (a) the Deposited Funds shall, during the term
      of
      this Agreement, equal $59,000,000 in subscription proceeds (exclusive of
      interest) (the "Minimum Escrow Deposit"); (b) the Escrow Agent
      shall
      have received written confirmation from the Company that the Company has
      obtained a written debt financing commitment for debt financing ranging from
      a
      minimum of $56,670,000 to a maximum of $135,670,000; (c) the Company has
      affirmatively elected in writing to terminate this Agreement; (d)
      the
      Escrow Agent shall have provided to each state securities department in which
      the Company has registered its securities for sale, as communicated to the
      Escrow Agent by the Company, an affidavit stating that the foregoing
      requirements (a), (b) and (c) of this subsection 7C have been
      satisfied;
      and
      (d)
      in each state in which consent is required, the state securities commissioners
      have consented to release of the funds on deposit, then
      this
      Agreement shall terminate, and the Escrow Agent shall promptly disburse the
      funds on deposit, including interest, to the Company to be used in accordance
      with the provisions set out in the Registration Statement. Notwithstanding
      any
      other provision of this Agreement, under no circumstances shall the South Dakota
      Division of Securities be required or requested by the Company or the Escrow
      Agent to (i) consent to the disbursement of Deposited Funds; or (ii) recognize
      the Company's fulfillment of its obligations pursuant to the terms of this
      Agreement. The Company will deliver a copy of the Registration Statement to
      the
      Escrow Agent upon execution of this Agreement. The Escrow Agent will have no
      responsibility to examine the Registration Statement with regard to the Escrow
      Account or otherwise and the Registration Statement shall contain a provision
      to
      such effect. Upon the making of such disbursement, the Escrow Agent shall be
      completely discharged and released of any and all further responsibilities
      hereunder.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    D. In
      the
      event the Deposited Funds do not equal or exceed the Minimum Escrow Deposit
      on
      or before the Termination Date or if the Company has not received a written
      debt
      financing commitment as described herein on or before the Termination Date,
      the
      Escrow Agent shall return to each of the purchasers of the Units in the
      Offering, as promptly as possible after such Termination Date and on the basis
      of its records pertaining to the Escrow Account: (a) the sum which each
      purchaser initially paid in on account of purchases of the Units in the Offering
      and (b) each purchaser's portion of the total interest earned on the Escrow
      Account as of the Termination Date. Computation of any purchaser's share of
      the
      net interest earned will be a weighted average based on the proportion of such
      purchaser's deposit in the Escrow Account from the Offering to all such
      purchasers' deposits held by the Escrow Agent and upon the length of time in
      days such deposit was held in the Escrow Account as compared to all such
      deposits. All computations with respect to each purchaser's allocable share
      of
      net interest shall be made by the Escrow Agent, which determinations shall
      be
      final and conclusive. Any amount paid or payable to a purchaser pursuant to
      this
      paragraph shall be deemed to be the property of such purchaser, free and clear
      of any and all claims of the Company or its agents or creditors; and the
      respective purchases of the Units made and entered into in the Offering shall
      thereupon be deemed, ipso facto, to be cancelled without any further liability
      of the purchasers or any of them to pay for the Units purchased. At such time
      as
      the Escrow Agent shall have made all the payments called for in this paragraph,
      the Escrow Agent shall be completely discharged and released of any and all
      further responsibilities hereunder, and the Units reserved (as provided in
      paragraph 5) shall be released from such reservation, except that Escrow Agent
      shall be required to prepare and issue a single IRS Form 1099 to each investor
      in the event that funds are returned to investors.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    8. Agreement
      with Escrow Agent.
      To
      induce Escrow Agent to act hereunder, it is agreed by Prairie Creek
      that:

    

    A. The
      sole
      duty of the Escrow Agent, other than as herein specified, shall be to receive
      the Escrow Funds and hold them subject to release, in accordance herewith,
      and
      the Escrow Agent shall be under no duty to determine whether Prairie Creek
      is
      complying with the requirements of this Agreement in tendering to the Escrow
      Agent said proceeds of the sale of said Units. The Escrow Agent may conclusively
      rely upon and shall be protected in acting upon any statement, certificate,
      notice, request, consent, order or other document believed by it to be genuine
      and to have been signed or presented by the proper party or parties. The Escrow
      Agent shall have no duty or liability to verify any such statement, certificate,
      notice, request, consent, order or other document, and its sole responsibility
      shall be to act only as expressly set forth in this Agreement. The Escrow Agent
      shall be under no obligation to institute or defend any action, suit or
      proceeding in connection with this Agreement unless first indemnified to its
      satisfaction. The Escrow Agent may consult counsel in respect of any question
      arising under this Agreement and the Escrow Agent shall not be liable for any
      action taken or omitted in good faith upon advice of such counsel.

    

    B. Prairie
      Creek hereby indemnifies and holds harmless the Escrow Agent from and against
      any and all loss, liability, cost, damage and expense, including, without
      limitation, reasonable counsel fees, which the Escrow Agent may suffer or incur
      by reason of any action, claim or proceeding brought against the Escrow Agent
      arising out of or relating in any way to this Agreement or any transaction
      to
      which this Agreement relates unless such action, claim or proceeding is the
      result of the gross negligence or willful misconduct of the Escrow Agent.

    

    9. Resignation
      and Removal of Escrow Agent Successors.
      The
      Escrow Agent may resign upon thirty (30) days advance written notice to Prairie
      Creek. If a successor Escrow Agent is not appointed within the 30-day period
      following such notice, Escrow Agent may petition any court of competent
      jurisdiction to name a successor Escrow Agent. Any commercial banking
      institution or trust company with which Escrow Agent may merge or consolidate,
      and any commercial banking institution or trust company to which Escrow Agent
      transfers all or substantially all of its corporate trust business shall be
      the
      successor Escrow Agent without further act.

    

    10. Fees
      and Expenses of Escrow Agent.
      Prairie
      Creek agrees to pay the Escrow Agent the fees specified in the Escrow Agent’s
      fee schedule attached hereto as Exhibit A, in the manner set forth therein,
      unless otherwise agreed to by the parties in writing. Prairie Creek shall be
      solely responsible for the payment of such fees and the Escrow Agent shall
      not
      seek payment of the fees from investors or apply any principal deposited by
      investors in the escrow account or interest on the escrow account against such
      fees. The fee agreed upon herein is intended as full consideration for the
      Escrow Agent's services as contemplated by this Agreement; provided,
      however,
      that in
      the event the Escrow Agent renders any material service not contemplated in
      this
      Agreement or there is any assignment of interest in the subject matter of this
      Agreement, or any material modification hereof; or if any material controversy
      arises hereunder, or the Escrow Agent is made a party to any litigation
      pertaining to this Agreement, or the subject matter hereof, then the Escrow
      Agent shall be reasonably compensated for such extraordinary services and
      reimbursed for all costs and expenses, including reasonable attorney's fees,
      occasioned by any delay, controversy, litigation or event, and the same shall
      be
      recoverable from Prairie Creek, but not from the escrow account.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    11. Notices.
      All
      notices, requests, demands, and other communications under this Agreement shall
      be in writing and shall be deemed to have been duly given (a) on the date of
      service if served personally on the party to whom notice is to be given, (b)
      on
      the day of transmission if sent by facsimile transmission to the facsimile
      number given below, and telephonic confirmation of receipt is obtained promptly
      after completion of transmission, (c) on the next day on which such deliveries
      are made in Goldfield, Iowa, when delivery is to Federal Express or similar
      overnight courier or the Express Mail service maintained by the United States
      Postal Service, or (d) on the fifth day after mailing, if mailed to the party
      to
      whom notice is to be given, by first class mail, registered or certified,
      postage prepaid, and properly addressed, return receipt requested, to the party
      as follows:

    

    If
      to
      Escrow Agent:

    

    ______________________________

    ______________________________

    ______________________________

    Attn:
      __________________________

    Fax:
      ___________________________

    Phone:
      _________________________

     

    If
      to
      Prairie Creek:

    

    Prairie
      Creek Ethanol, LLC

    415
      N.
      Locust Street

    PO
      Box
      280

    Goldfield,
      Iowa 50542

    Attn:
      Clay
      Hansen,
      President

    Fax:
      (515) 825-3732

    Phone:
      (515)
      825-3161

    

    with
      a
      required copy to:

    

    Brown,
      Winick, Graves, Gross, Baskerville and Schoenebaum, P.L.C.

    666
      Grand
      Avenue, Suite 2000

    Des
      Moines, IA 50309

    Attention:
      Valerie D. Bandstra

    Fax:
      (515) 323-8559

    Phone:
      (515)-242-2400

    

    12. Governing
      Law.
      This
      Agreement shall be construed, performed, and enforced in accordance with, and
      governed by, the internal laws of the State of Iowa, without giving effect
      to
      the principles of conflict of laws thereof. 

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    13. Successors
      and Assigns.
      Except
      as otherwise provided in this Agreement, no party hereto shall assign this
      Agreement or any rights or obligations hereunder without the prior written
      consent to the other parties hereto and any such attempted assignment without
      such prior written consent shall be void and of no force and effect. This
      Agreement shall inure to the benefit of and shall be binding upon the successors
      and permitted assigns of the parties hereto.

    

    14. Severability.
      In the
      event that any part of this Agreement is declared by any court or other judicial
      or administrative body to be null, void, or unenforceable, said provision shall
      survive to the extent it is not so declared, and all of the other provisions
      of
      this Agreement shall remain in full force and effect.

    

    15. Further
      Assurances.
      Each of
      the parties shall execute such documents and other papers and take such further
      actions, as may be reasonably required or desirable to carry out the provisions
      hereof and the transactions contemplated hereby.

    

    16. Amendments.
      This
      Agreement may be amended or modified, and any of the terms, covenants,
      representations, warranties, or conditions hereof may be waived, only by a
      written instrument executed by the parties hereto, or in the case of a waiver,
      by the party waiving compliance. Any waiver by any party of any condition,
      or of
      the breach of any provision, term, covenant, representation, or warranty
      contained in the Agreement, in any one or more instances, shall not be deemed
      to
      be nor construed as further or continuing waiver of any such conditions, or
      of
      the breach of any other provision, term, covenant, representation, or warranty
      of this Agreement.

    

    17. Entire
      Agreement.
      This
      Agreement contains the entire understanding among the parties hereto with
      respect to the escrow contemplated hereby and supersedes and replaces all prior
      and contemporaneous agreements and understandings, oral or written, with regard
      to such escrow.

    

    18. Section
      Headings.
      The
      section headings in this Agreement are for reference purposes only and shall
      not
      affect the meaning or interpretation of this Agreement.

    

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

    

    IN
      WITNESS WHEREOF, the parties hereto have hereunto affixed their signatures
      as of
      the day and year first written above.
 

    
      	 PRAIRIE
              CREEK:	 	 ESCROW
              AGENT
	 	 	 
	PRAIRIE
              CREEK ETHANOL, LLC	 	 
	 	 	
              

            
	 	 	 
	
              By: 

              
                

              

              Clay
                Hansen, President

            	 	
              By:  

              
                

              

              Printed
                Name:

              Title:

            

    

         

    
      
        
        

      

      
        6

        
          

        

      

       

    

     

    Exhibit
      A

     

    
      
        

      

       

    

    Escrow
      Agent Fee Schedule

    

    Escrow
      Agreement

    Prairie
      Creek Ethanol, LLC

    

      
        	
                Administration

              	 	$	   
	 
	 	 	 	 	 
	
                Transaction
                  Fees

              	 	 	 	 
	
                Subscriber

              	 	$	   
	 
	
                Disbursement/Each

              	 	$	  
	 
	 	 	 	 	 
	
                1099
                  Filing

              	 	$	  
	 
	
                Subscriber/Filing

              	 	$	  
	 

      

    

    
All
      out
      of pocket costs and expenses, including postage, supplies, long distance
      telephone charges, wires and reasonable attorney’s fees will be in addition
      hereto. 

     

    We
      reserve the right to revise fees, including establishing new minimums, as
      necessitated by changing economic conditions. 

    

    All
      fees
      are charged in arrears and are quoted on an annualized basis; however we reserve
      the right to bill in advance, or on a more frequent basis.

     

    
      
        
        

      

      
        7

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