Document:

Exhibit
10.6

ASSIGNMENT
OF REAL ESTATE OPTION AGREEMENT

THIS AGREEMENT is made and entered into on as of the   20th   day of   March  ,
2007 (the “Effective Date”) by and between LSCP, LLLP, an Iowa
limited liability limited partnership
(“Assignor”) and Akron
Riverview Corn Processors, LLC,
an Iowa limited liability company (“Assignee”).

FOR VALUE RECEIVED, Assignor
hereby sells, assigns, transfers and conveys to Assignee, and Assignee hereby
agrees to assume, all of Assignor’s right, title and interest in and to that certain Option to Purchase Real Estate
dated the 16th day of
June, 2006, a copy of which is attached
hereto as Exhibit “A” and by this reference incorporated herein (the “Assigned
Option”), wherein Assignor is named as optionee and Mary F. Wohlenberg, as
Trustee of the Mary Frances Wohlenberg Trust date the 5th of May, 1995 (“Optionor”) are named as
optionor(s) of that certain real property described in the Assigned Option; and

This
assignment is made subject to all of the terms and conditions of said Assigned
Option and pursuant to the express consent of the optionors as evidenced
hereafter.  By its signature hereon,
Assignee agrees to fulfill all of the terms and conditions of said Assigned
Option.

Nothing
herein shall operate to relieve Assignor from any duties or obligations to
Optionor under the Option to Purchase Real Estate.

This
Assignment, together with all of the terms, agreements, covenants and
warranties contained herein, shall inure to and become binding upon the
successors and assigns of the parties hereto.

IN WITNESS WHEREOF, Assignor and
Assignee have executed this Agreement on the day and year first written above.

ASSIGNOR:

LSCP, LLLP

By:  Little Sioux Corn
Processors, L.L.C.

Its:  General Partner

	
  By:

  	
  /s/ Steve Roe

  	
   

  
	
  Steve Roe, Its
  President and CEO

  	
   

  
	
   

  	
   

  
	
  Subscribed and sworn to before me this   20th     
  day of     March                ,
  2007.

  
	
   

  
	
   

  	
  /s/ Sonia Jones

  	
   

  
	
  [notary stamp]

  	
  Notary Public in and for the State of Iowa

  	
   

  
					

 

ASSIGNEE:

Akron Riverview Corn Processors,
LLC

	
  By:

  	
  /s/ Steve Roe

  	
   

  
	
  Steve Roe, Its
  President and CEO

  	
   

  
	
   

  	
   

  
	
  Subscribed and
  sworn to before me this   20th   day of   March                    , 2007.

  
	
   

  
	
   

  	
  /s/ Sonia Jones

  	
   

  
	
  [notary stamp]

  	
  Notary Public in
  and for the State of Iowa

  	
   

  
					

 

CONSENT
TO ASSIGNMENT

COMES NOW Mary F. Wohlenberg, as Trustee of the
Mary Frances Wohlenberg Trust date the 5th of May, 1995, and in accordance with
the signature hereafter, consents to the above assignment of the Assigned
Option.

Dated this 22nd
day of March          , 2007.

	
  s/s Mary F. Wohlenberg

  	
   

  
	
  Mary F. Wohlenberg,

  
	
  as Trustee of the Mary Frances

  
	
  Wohlenberg Trust date the 5th of May, 1995

  

 

Subscribed and
sworn to before me this 22nd  day of March                        , 2007.

	
   

  	
  s/s Donna Sattle

  	
   

  
	
   

  	
  Notary Public in and for the State of Iowa s/s South Dakota

  

 

EXHIBIT A

WHEN RECORDED RETURN TO:

William E. Hanigan

666 Grand Avenue, Suite 2000

Des Moines, IA  50309-2510

	
  Preparer

  	
   

  	
   

  	
   

  	
   

  
	
  Information

  	
  William E.
  Hanigan

  	
  666 Grand Ave., Ste. 2000

  	
  Des Moines

  	
  (515) 242-2473

  
	
   

  	
  Individual’s Name

  	
  Street Address

  	
  City

  	
  Phone

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SPACE
  ABOVE THIS LINE FOR RECORDER

  

 

REAL
ESTATE OPTION AGREEMENT

THIS AGREEMENT (hereinafter “Option
Agreement) is made this 16th day of June, 2006, by and between Mary F.
Wohlenberg, as Trustee of the Mary Frances Wohlenberg Trust date the 5th day of May 1995, (hereinafter collectively
referred to as “Optionor”) and LSCP, LLLP, an Iowa limited liability limited
partnership (hereinafter referred to as “Optionee”).

W I T N E
S S E T H:

WHEREAS, Optionor is the sole
owner of real estate (the “Property”) described in full at paragraph 1 below
and is desirous of securing a future purchaser of said real property under
defined terms; and

WHEREAS, Optionee desires to
acquire the Property from Optionor in accordance with the terms and conditions
set forth hereafter.

IN CONSIDERATION of the
covenants and promises contained hereafter, it is agreed:

1.               PREMISES:  That Optionor hereby grants to Optionee the
exclusive option to purchase the Property (as legally described on Exhibit A
attached hereto), together with all improvements thereon, if any.

2.               OPTION CONSIDERATION:  As consideration for the option grant
provided in Paragraph 1 above, Optionee agrees to pay to Optionor at the time
of the execution of this Option Agreement the sum of $15,000.00 (the “Option
Amount”).  Optionee shall make said
payment to Spence Title Services, Inc. (the “Escrow Agent”), who shall act as
the escrow agent for Optionor for
purposes of a possible Section 1031 Exchange, as set forth below, with said
payment to be credited against the Purchase Price.  The parties agree that there is valid and
sufficient consideration for this
Option Agreement based on this sum, the mutual obligations herein contained and
other good and valuable consideration. 
In addition, Optionor agrees not to enter into any other Purchase, Lease
or Agreement of any kind with any other party relating to the Property during
the term of this Option Agreement, except has permitted herein.

3.               TERM:  This
Option Agreement shall commence on the date of its execution and continue until
the 19th day of
December, 2006, (“Initial Term”).  If the
option to purchase will not be

exercised by midnight of the
final day of the Initial Term, this Option Agreement shall be renewable, at the
sole discretion of Optionee and with additional payment in the amount of
$10,000 (the “Extended Option Amount”), for period expiring on the 19th day of June, 2007, (the “Extended
Option Term”).  In the event Optionee
does not exercise the option to purchase within the term specified herein
(including the automatic term extension, if applicable), this Option Agreement
shall expire automatically and be null and void, except as to provisions
pertaining to the payment of option price to Optionor, indemnity and hold
harmless, crop damage, and lease to Optionee, if applicable.  If an option term expires without the
exercise of the option, then the option amount for that option term shall be
deemed to be irrevocably earned by Optionor and shall be paid to Optionor by
Escrow Agent upon the termination of this Option Agreement for any reason other
than the closing of the sale and conveyance of the Property and except as
provided in Subparagraph g of Paragraph 5. 
In the event that Optionee exercises the option in accordance with this
Option Agreement, all option amounts shall become “Earnest Money” as defined in
Paragraph 4.

4.               NOTICE OF EXERCISE OF OPTION: 
Optionee shall notify Optionor, in a manner specified in Paragraph 8
hereof, and prior to the expiration of the Initial Term or Extended Option
Term, as applicable, of its intention to exercise this option to purchase,
which notice must be received by Optionor prior to the expiration of the
respective option term as set forth above. 
Upon giving notice as provided in this Paragraph 4, the purchase of the
Property shall proceed pursuant to the terms and conditions set forth in
Paragraph 5 hereafter.  In the event of
the exercise of the option in any manner permitted herein, the Optionee shall
pay to the Escrow Agent, as Earnest Money, in addition to the Option Amount and
Extended Option Amount (if applicable) that shall, by virtue of the exercise of
the option, become Earnest Money, the additional sum of $15,000.

5.               PURCHASE TERMS:  Pursuant to the terms of this Option
Agreement, Optionor agrees to sell and Optionee agrees to purchase the Property
under the following terms and conditions:

a.               Purchase Price:  The purchase price shall be $15,000.00 per
acre (as determined by survey to be paid by Optionee), payable in cash at
closing.  Optionee shall be given a
credit against said purchase price for all Earnest Money and for all taxes and
special assessments to be prorated pursuant to Subparagraphs d and e of this
Paragraph 5.

b.              Title:  Optionor shall, within thirty (30) days from
the receipt of Optionee’s notice to exercise the option to purchase, furnish
Buyer with a Commitment, through Spence Title Services, Inc. for an Owner’s
Title Insurance Policy for the Property (the “Commitment”), with the Commitment
to be in the full amount of the Purchase Price, and showing marketable title to
be vested in Optionor in accordance with this Option Agreement, the land title
laws of the State of Iowa, and the Iowa Title Standards of the Iowa State Bar
Association.  Optionee shall notify
Optionor, within 7 days of receipt of the Commitment, in writing, of any
matters or exceptions to the title which are unacceptable to Optionee (the “Objection
Notice”).  If, any matters, conditions or
exceptions are unacceptable to Optionee (in Optionee’s reasonable discretion,
exercised in good faith) and Optionee notifies Optionor in writing of such fact
prior to the expiration of the 7 day period, Optionor shall exercise reasonable
efforts to cure such matters, conditions or exceptions at least five (5) days
prior to the scheduled Closing (as defined in “h” below), or if necessary

extend the scheduled Closing of up to ten (10) days to
complete such cure.  If Optionee fails to
notify Optionor in writing of any matters, conditions or exceptions which are
unacceptable to Optionee prior to the expiration of the 7 day period, such
exceptions shall be deemed accepted by Optionee and shall constitute permitted
exceptions (the “Permitted Exceptions”) and Optionee’s right to request
Optionor to cure such matters, conditions or exceptions shall be deemed waived
by Optionee.

If Optionor notifies Optionee in writing that Optionor
is unable to remove such unacceptable matters, conditions or exceptions, or if
Optionor fails or refuses to cure said unacceptable matters, conditions or exceptions
within the time period provided, Optionee may, as Optionee’s sole and exclusive
remedies, either (i) terminate this Agreement by giving Optionor written notice
thereof, in which event the Earnest Money shall be returned to Optionee, and
neither party shall have any further rights, duties, or obligations hereunder
and this Agreement shall thereafter be null and void for all purposes (with the
exception of provisions pertaining to the payment of option price to Optionor,
indemnity and hold harmless, crop damage, and lease to Optionee, if
applicable); or (ii) elect to purchase the Property subject to such
unacceptable items or objections not so eliminated, modified, or cured, in
which event the Purchase Price shall not be reduced.  Optionee shall make such election upon the
earlier of the time scheduled for Closing, or within five (5) business days of
receipt of Optionor’s written notice that it is unable to remove the exceptions
or that the exceptions cannot be removed or cured on commercially reasonable
terms.  Optionee’s failure to provide
written notice in timely manner shall constitute any election of (ii) above
within the meaning of this paragraph.

Costs for obtaining a standard owner’s policy shall be
split evenly between Optionor and Optionee. 
All additional endorsements requested by Optionee shall be at Optionee’s
cost.

c.               Warranty Deed:  Upon receipt of the full purchase price set
forth above, Optionor shall execute and deliver to Optionee an appropriate
Warranty Deed (subject to Permitted Exceptions), a Declaration of Value, and a
Groundwater Hazard Statement for recording by Optionee.  All costs, documentary taxes and fees and
filing fees associated with the closing of the sale shall be borne by Optionee.

d.              Taxes:  Optionor shall give Optionee a credit against
the purchase price for all unpaid real estate taxes that constitute a lien
against the Property prorated through the date of closing.  If the amount of any such tax to be prorated
cannot be ascertained, proration shall be computed on the amount for the
preceding year.  Optionee shall be
responsible for payment of all real estate taxes after the date of closing.

e.               Special Assessments:  Optionor shall give Optionee a credit against
the purchase price for all special assessments that constitute a lien against
the Property prorated through the date of closing.

f.                 Eminent Domain:  In the event the property or any part thereof
is taken or threatened to be taken pursuant to eminent domain after Optionee
give notice of intent to exercise of the option, but prior to closing, Optionee
shall have the right at its election to cancel and terminate this Option
Agreement, having all sums paid for the Option Amount and any

extensions returned to Optionee, or to complete the
purchase as set forth above with Optionee being entitled to receive all
condemnations proceeding against the Property.

g.              Closing:  Closing shall be held on a date agreeable to
the parties not later than 60 calendar days after receipt of Optionee’s notice
of intent to exercise the option.  The
parties contemplate that a related real estate purchase between Optionee and
Robert E. Lias and Margaret Lias, husband and wife, for the purchase of the
adjacent real property (the “Related Purchase”) shall close on the same day as
the purchase contemplated in this Agreement. 
The parties intend that both transactions close or neither close.  For this reason, neither party shall be
obligated to close this transaction unless all documents, payments and things
necessary to the closing of the Related Purchase are placed into the possession
of the Escrow Agent who shall serve as closing agent, and who shall be the same
for both transactions, together with irrevocable letters of instruction
directing the agent to close the Related Purchase and the purchase contemplated
herein, and further subject to the cancellation or unwinding of this Agreement
and its Closing, including but not limited to the reconveyance of the Property
from Optionee to Optionor, if necessary, to fulfill the intent of this
paragraph.  If the Related Purchase does
not close for any reason other than the default of the Optionee, Optionee may,
in its discretion terminate this Option Agreement without liability, in which
case this Option Agreement shall be null and void (with the exception of
provisions pertaining to the payment of option price to Optionor, indemnity and
hold harmless, crop damage, and lease to Optionee, if applicable), and all
Earnest Money (including amounts paid for the Option Amount and the Extended
Option Amount, if applicable) shall be returned to Optionee.  If the Related Purchase does not close for
any reason other than the default of Optionor, the Optionor may, in its
discretion, terminate this Option Agreement without liability, in which case
this Option Agreement shall be null and void (with the exception of provisions
pertaining to the payment of option price to Optionor, indemnity and hold
harmless, crop damage, and lease to Optionee, if applicable), and, except in
case of default by Optionee, all Earnest Money (including amounts paid for the
Option Amount and the Extended Option Amount, if applicable) shall be returned
to Optionee.

h.              Default:  In the event Optionor has fulfilled all of
its obligations hereunder and all conditions precedent and concurrent to closing
for which it is responsible, and Optionee fails to fulfill its obligations
hereunder and continues to fail and refuses to fulfill its obligations
hereunder for more than 30 calendar days after receipt of written notice of
such default from Optionor, then Optionor may either:  1) terminate this Option Agreement (in
which event it shall be entitled to retain the Option Amount and any other
monies paid hereunder, which shall be the sole remedy and damages available to
Optionor); or 2) pursue any other legal or equitable remedies available to
it.  In the event Optionee fulfills all
of its obligations hereunder and meets all conditions precedent and concurrent
to closing for which it is responsible, and Optionor is unable, fails or
refuses to meet its obligations hereunder for more than 30 calendar days after
receipt of written notice from Optionee of such default, Optionee may
either:  1) terminate this Option
Agreement (in which event it shall be entitled to receive refund of the Option
Amount and any other monies paid hereunder, which shall be the sole remedy and
damages available to Optionee); or 2) pursue any other legal or equitable
remedies available to it.  In the event
that this Option Agreement is terminated, both parties shall cooperate to take
any and all

actions necessary to cancel this Option Agreement,
including the execution and recording of a termination of this Option
Agreement, the costs of which shall be paid by the party causing the
termination of this Option Agreement.

i.                  Personal Property:  Optionee understands and agrees that Optionor
shall have the right under the Option
Agreement to retain and remove, at Optionor’s cost, personal property located
in the house and out buildings located on the Property.  Optionee further agrees that Optionor shall
have the right to retain, remove, and sell the irrigation systems located on
the Property at Optionor’s cost. 
Optionor shall have 30 days after the Closing to remove any such
personal property and irrigation systems from the Property.

j.                  Crop Damage:  In
the event the closing and conveyance of the Property to Optionee shall occur
after Optionor plants crops, but before harvest of those crops, the parties
hereto mutually agree that Optionor shall have the right, upon notice to the
Optionee and at the Optionee’s convenience, to harvest any crops not destroyed
by the Optionee in the process of its due diligence and/or its constructing of
the ethanol plant and related improvements thereto.

Damage
to crops shall be calculated for all purposes under this Option Agreement as
follows:  Optionee shall pay Optionor
additional $175.00 per tillable acre for corn and $175.00 per tillable acre for
soybeans for the actual number of acres, or fractional acres, of crop destroyed
on the Property by the Optionee prior to the harvest of such crop acres by the
Optionor in exchange for Optionor transferring all of its right, title, and
interest in and to such crops to Optionee. 
The number of such acres destroyed shall be measured by a surveyor
selected by Optionee and the fee for such measurement shall be borne by the
Optionee.  Optionee shall have no duty to
preserve any of such crops, and Optionor accepts the payment specified in this
Subparagraph (j) as liquidated damages (in lieu of any and all other damages)
in complete payment of all actual costs incurred by Optionor for seed,
fertilizer, and pesticides.

k.               Termination of Tenants and
Tenancy for 2007.  Regardless of when or if Optionee provides
notice of intent to exercise its option provided hereunder, Optionor agrees to
provide notice, on or before September 1, 2006, to any tenant of the Property
of the termination of such tenant’s tenancy. 
Such notice shall follow the form required for the termination of farm
tenancies under Iowa Code Chapter 562. 
Optionor also hereby constitutes and appoints Optionee as its
attorney-in-fact, with full power of substitution, for Optionee to sign and
deliver any and all notices required to terminate the tenancy of any tenant of
the Property on behalf of Optionor. 
Optionor hereby acknowledges, ratifies and conveys its authorization
unto Optionee to act as its attorney-in-fact, for purposes of terminating any
leasehold interests held or claimed by tenants in possession of the
Property.  Therefore, Optionee’s
signature on any documents utilized to terminate any such farm tenancy shall be
deemed fully authorized and treated as if signed by Optionor.

In the event that this
Option Agreement has not been terminated or expired on or before March 1, 2007,
then Optionee agrees to lease the Property from Optionor for the cash rent
amount of $175.00 per tillable acre, payable in advance.  If Optionee farms the Property during 2007,
it agrees to use the tenant now farming the Property.  In the further event that

the sale closes during 2007,
the cash rent shall be prorated to the date of closing and credited and debited
accordingly at closing.

l.                  Mineral Rights.  Optionor
understands and agrees that Optionee shall reserve and retain under the
Purchase Agreement an undivided 50% interest to Optionor and their heirs,
successors and assigns, in the minerals in, on or underlying the Property.  Optionor
waives any right to use the surface for any mineral activity and agrees
Optionor shall have no right to enter upon or pass over the Property to
bore, search, and excavate for any such minerals, nor to work the Property,
remove any minerals, or otherwise exploit the minerals in the Property.  Optionor’s retained interest in mineral
resources may only be claimed upon exploitation of any mineral resources underlying
the Property by, through or on undertaken in the sole discretion of
Optionee.  During the term of this Option
Agreement, Optionor agrees that Optionor shall not undertake any exploitation
or excavation of such minerals without the prior written consent of Optionee
and Optionee’s approval of all engineering plans regarding such
excavation.  Nothing in this Option
Agreement shall be construed to require Optionee to continue or undertake the
exploration or exploitation of any minerals on the Property after the exercise
of the option granted hereunder.

m.            Form of
Purchase Agreement.  Upon
exercise of the option, the parties agree to bound without further action to
the terms and conditions as set out in the Iowa State Bar Association form for
Offer to Buy Real Estate and Acceptance (Nonresidential), attached hereto as
Exhibit B (the “Purchase Agreement”). 
This Option Agreement survives the exercise of the option and shall
control in the event of any conflicts between the terms and provisions of this
Agreement and the Purchase Agreement.

6.               RECORDING OF OPTION:  The parties hereto agree that this Option
Agreement shall be recorded at the cost of the party desiring such recording.

7.               INSPECTION RIGHTS:  Optionee shall, during the term of this
Option Agreement, have the unrestricted rights (subject to the rights of
tenants in possession) to enter upon the Property for purposes of performing
any and all due diligence necessary for
Optionee’s determination to purchase the Property in its sole discretion including,
but not limited to, the taking of soil samples. 
Optionee understands and agrees that during the term of this Option
Agreement Optionor shall have the full and unrestricted right to plant crops on
the Property.  Should Optionee, as a part
of its inspection, damage any of the growing crops on the Property, Optionee
shall be responsible for the payment of the fair market value thereof to
Optionor as calculated under the terms of Subparagraph (j) of Paragraph
5 above.

Upon termination of this Option Agreement for any
reason other than sale and conveyance of the Property, Optionor shall have the
right to receive a copy of any and all studies done pertaining to the Property,
upon payment of one-half (1/2) the cost of the studies, as follows:  Survey, environmental Phase I or other
environmental studies, soil tests, borings or geotechnical.

Optionee hereby indemnifies and holds Optionor
harmless from and against any and all liabilities actually incurred, including,
without limitation, any damages or injury to persons or

property, resulting directly from studies, tests
and/or inspections of the Property by Optionee and/or its agents, employees,
invitees and/or licensees and their agents, employees, invitees and/or
licensees and any mechanics’ or other liens, losses, costs, expenses or claims
that may be filed or asserted against the Property or Optionor by such parties
in relation to such inspection (which indemnification shall survive termination
of this Agreement).

8.               NOTICES:  Any notice, demand, or other document which
either party is required or may desire to give to other party shall be given in
writing and served either personally, by Federal Express, United Parcel
Service, or other traceable delivery method, or given by prepaid United States
certified mail, return receipt requested, and addressed to the following
addresses:

	
  If to Optionor:

  	
  Mary F. Wohlenberg, as Trustee of the Mary Frances

  	
   

  
	
   

  	
  Wohlenberg Trust date the 5th of May, 1995

  	
   

  
	
   

  	
  c/o A. Jo Wohlenberg, CPA

  	
   

  
	
   

  	
  219 South Fifth Street

  	
   

  
	
   

  	
  PO Box 341

  	
   

  
	
   

  	
  Menno, S.D. 57045-0341

  	
   

  
	
   

  	
   

  	
   

  
	
  Copy to:

  	
  Dwyer, Smith,
  Garner, Lazer,

  Pohren, Rogers & Forrest, LLP

  	
   

  
	
   

  	
  8712 West Dodge Rd.

  	
   

  
	
   

  	
  Omaha, NE 68114

  	
   

  
	
   

  	
  Attention: H. Daniel Smith

  	
   

  
	
   

  	
  Facsimile: 402-392-1011

  	
   

  
	
   

  	
  E-mail: dsmith@dwyersmith.com

  	
   

  
	
   

  	
   

  	
   

  
	
  If to Optionee:

  	
  LSCP, LLLP

  	
   

  
	
   

  	
  4808 F Avenue

  	
   

  
	
   

  	
  Marcus, Iowa 51035

  	
   

  
	
   

  	
  Attention: Steve Roe

  	
   

  
	
   

  	
   

  	
   

  
	
  Copy to:

  	
  Brown, Winick, Graves, et al.

  	
   

  
	
   

  	
  666 Grand Ave., Ste. 2000

  	
   

  
	
   

  	
  Des Moines, Iowa, 50309

  	
   

  
	
   

  	
  Attention: William Hanigan

  	
   

  
	
   

  	
  Facsimile: 515-283-0231

  	
   

  
	
   

  	
  E-mail: Hanigan@ialawyers.com

  	
   

  

 

Copies of all notices shall be sent contemporaneously
to the party entitled to notice and to his, her or its attorney, and in the
case of the attorney, also by facsimile or E-mail, if then available.  Either party hereto may designate a different
address for itself, or additional persons to whom copies thereof are to be
sent, by notice similarly given.  Notice
shall be deemed to be effective upon the date that it is sent if sent in
accordance with this provision.

9.               REAL ESTATE BROKERS:  The parties hereto represent that, absent
specific disclosure in writing, no real estate brokers have been employed,
utilized or relied upon by either party in the granting of this option or the
real estate sale contemplated therein.

10.         TIME:  Time is of the essence as to the execution of
and the performance of all of the terms and conditions of this Option
Agreement.

11.         ATTORNEY
FEES:  Any action required
of either party hereunder to enforce its rights to this Option Agreement shall
entitle said party to the recovery of its reasonable attorney fees, costs, and expenses incurred and necessary to the
enforcement of said rights.  Except as
otherwise provided herein, each party shall be responsible for its own attorney’s
fees in connection with this Option Agreement.

12.         GENERAL:  This Option Agreement shall be deemed to have
been made and shall be construed and interpreted in accordance with the laws of
the State of Iowa.  This Option Agreement
shall be binding upon and inure to the benefit of the respective parties hereto
and their successors and assigns.  The
captions and titles herein are for reference only and are not to be considered
a part of this Option Agreement or in the interpretation hereof.  This Agreement shall not be valid until
signed by both parties.  The phrase “execution
and delivery hereof,” as used above, shall be the date the last party hereto
signs this Option Agreement and serves it upon the other party in the same
manner as set forth for notices.

13.         SECTION
1031 EXCHANGE:  It is
specifically understood and agreed between the parties hereto that Optionor, as
a part of this sale, is contemplating a 1031 Exchange as described by the
Internal Revenue Code, and each of the parties hereto agrees to perform such
acts in connection therewith and in connection with this sale as are required
and will cooperate with Optionor to complete said exchange at no cost,
detriment or imposition to the Optionee. 
Failure on the part of Optionor to locate a suitable replacement
property or otherwise be unable to complete a 1031 Exchange shall not affect
the enforceability of the remaining terms of this Option Agreement.  This Agreement shall be assignable to a
qualified intermediary of Optionor’s choosing.

[Signature Page Follows]

Signature
Page to Real Estate Option Agreement

IN WITNESS WHEREOF,
said parties hereto subscribe their names.

	
  OPTIONOR:

  	
  OPTIONEE:

  
	
   

  	
   

  
	
  MARY F.
  WOLHENBERG, AS

  	
  LSCP, LLLP

  
	
  TRUSTEE OF THE
  MARY FRANCES

  	
  By: Little Sioux
  Corn Processors, L.L.C.

  
	
  WOHLENBERG TRUST
  DATE THE

  	
  Its: General
  Partner

  
	
  5TH DAY OF MAY, 1995

  	
  EIN: 42-1510421

  
	
   

  	
   

  
	
  By /s/ Mary F.
  Wohlenberg, Trustee

  	
   

  	
  BY:

  	
  s/s Stephen G.
  Roe

  	
   

  
	
  Mary F.
  Wohlenberg, Trustee

  	
   

  
	
   

  	
   

  
	
  EIN:

  	
  xxx-xx-xxxx

  	
   

  	
   

  
	
   

  	
   

  
	
  DATE:

  	
  6/16/06

  	
   

  	
  DATE:

  	
  6-19-06

  	
   

  
									

 

 

	
  STATE
  OF SOUTH DAKOTA

  	
  )

  
	
   

  	
  )SS:

  
	
  COUNTY OF

  	
  Hutchinson

  	
  )

  
			

 

On this 16th day of June, 2006, before me, the undersigned, a Notary
Public in and for the State of South Dakota, personally appeared Mary F. Wohlenberg,
as Trustee of the Mary Frances Wohlenberg Trust date 5th date of May, 1995 to me personally known who being by me duly sworn, did say that
she is the Trustee of the Mary F. Wohlenberg, as Trustee of the March Frances Wohlenberg  Trust
date the 5th day of
May, 1995, executing the within and foregoing instrument to be the voluntary
act and deed of the limited liability company, by it and by him voluntarily
executed.

	
   

  	
  s/s Donna Sattle

  	
   

  
	
   

  	
  Notary Public in and for State of South Dakota

  

 

	
  STATE OF IOWA

  	
  )

  
	
   

  	
  )SS:

  
	
  COUNTY OF

  	
  Cherokee

  	
  )

  
			

 

On this 19 day of June, 2006, before me, the
undersigned, a Notary Public in and for the State of Iowa, personally appeared
Stephen Roe to me personally known, who being by me duly sworn, did say that he
is the President of Little Sioux Corn Processors, L.L.C., a limited liability
company, executing the within and foregoing instrument; that no seal has been
procured by the said limited liability company; that said instrument was signed
on behalf of the limited liability company by authority of its members; and
that Stephen Roe, as President, acknowledged the execution of the foregoing
instrument to be the voluntary act and deed of the limited liability company,
by it and by him voluntarily executed.

	
  [SEAL:
  Becky J Nothem]

  	
   

  
	
  [Commission Number 718168]

  	
  /s/ Becky J.
  Nothem

  	
   

  
	
  [My Commission Expires]

  	
  Notary Public in and for the State of Iowa

  
	
  [August 26, 2008]

  	
   

  

 

Exhibit A – Legal Description

Description:

The
Northwest Quarter (NW 1⁄4) of Section Twelve (12), Township Ninety-Two (92)
North, Range Forty-Nine (49) West of the 5th P.M.

Exhibit B –Form of Purchase Agreement

OFFER TO
BUY REAL ESTATE AND ACCEPTANCE

(NONRESIDENTIAL)

TO________________________________________________________________________________________(SELLERS)

The
undersigned BUYERS hereby offer to buy and the undersigned SELLERS by their
acceptance agree to sell the real property situated in ___________, Iowa,
locally known as _____________________________________________________ and
legally described as:

legally described on Exhibit A attached hereto

together with any easements and appurtenant servient estates, but
subject to any reasonable easements of record for public utilities or roads,
any zoning restrictions customary restrictive covenants and mineral
reservations of record, if any, herein referred to as the “Property,” upon the
following terms and conditions provided BUYERS, on possession, are permitted to
use the Property for development, construction and operation of a 100
million gallon per year commercial ethanol-production facility________________________.

1.  PURCHASE PRICE.  The Purchase Price shall be $SEE BELOW and the method of payment
shall be as follows:  $SEE BELOW
with this offer, to be deposited upon acceptance of this offer and held in
trust by SEE BELOW  as earnest
money, to be delivered to the SELLERS upon performance of SELLERS’ obligations
and satisfaction of BUYERS’ contingencies, if any, and the balance of the
Purchase Price, as follows:

Purchase price shall be $15,000.00 per acre (as determined by a final
survey to be paid by BUYER).  Purchase
price shall be paid cash at closing, after reduction for (i) amounts paid under
that certain Option Agreement entered into between the parties on May ____,
2006; (ii) prorated real estate taxes; (iii) special assessments; and (iv) any
other appropriate credits or reductions pursuant to this Offer and Acceptance
and the aforementioned Option Agreement.

2.  REAL ESTATE TAXES. 
Sellers shall pay all unpaid real estate taxes that constitute a lien
upon the Property prorated through the date of closing and any unpaid real
estate taxes payable in prior years. 
BUYERS shall pay all subsequent real estate taxes.

Unless otherwise provided in this Agreement, at
closing SELLERS shall pay BUYERS, or BUYERS shall be given a credit for, taxes
from the first day of July prior to possession to the date of possession based
upon the last known actual net real estate taxes payable according to public
records.  However, if such taxes are
based upon a partial assessment of the present improvements or a changed tax
classification as of the date of possession, such proration shall be based on
the current levy rate, assessed value, legislative tax rollbacks and real
estate tax exemptions that will actually be applicable as shown by the assessor’s
records on the date of possession.

3.  SPECIAL ASSESSMENTS.

  A.  SELLERS shall pay in full at time of closing
all special assessments which are a lien on the Property as of the date of
acceptance ___________________.

  B.  IF “A” is stricken, then SELLERS shall pay at
time of closing all installments of special assessments which are a lien on the
Property and, if not paid, would become delinquent during the calendar year
this offer is accepted, and all prior installments thereof.

  C.  All charges for solid waste removal, sewage
and maintenance that are attributable to SELLERS’ possession, including those
for which assessments arise after closing, shall be paid by SELLERS.

  D.  Any preliminary or deficiency assessment
which cannot be discharged by payment shall be paid by SELLERS through an
escrow account with sufficient funds to pay such liens when payable, with any
unused funds returned to SELLERS.

  E.  BUYERS shall pay all other special
assessments or installments not payable by SELLERS.

4.  RISK OF LOSS AND
INSURANCE.  SELLERS shall bear the risk of loss or damages
to the Property prior to closing or possession, whichever first occurs.  SELLERS agree to maintain existing insurance
and BUYERS may purchase additional insurance. 
In the event of substantial damage or destruction prior to closing, this
Agreement shall be null and void; provided, however, BUYERS shall have the
option to complete the closing and receive insurance proceeds regardless of the
extent of damages.  The property shall be
deemed substantially damaged or destroyed if it cannot be restored to its
present condition on or before the closing date.

 

5.  POSSESSION AND CLOSING.   If BUYERS timely perform all
obligations, possession of Property shall be deemed delivered to BUYERS
on _____________________, and any adjustments of rent, insurance, interest and
all charges attributable to the SELLERS’ possession shall be made as of the
date of possession.  Closing shall occur
after the approval of title by BYERS and vacation of the Property by SELLERS,
but prior to possession by BUYERS.  SELLERS
agree to permit BUYERS to inspect the Property within ____ hours prior to
closing to ensure that the premises are in the condition required by this
Agreement.  If possession is given on a
day other than closing, the parties shall make a separate agreement with
adjustments as of the date of possession. 
This transaction shall be considered closed:

  A.  Upon
the delivery of the title transfer documents to BUYERS and receipt of all funds
then due at closing from BUYERS under the Agreement.

  B.  (If “A” is Stricken) Upon the filing of the title
transfer documents and receipt of all funds due at closing from BUYERS under
the Agreement.

6.  FIXTURES. 
Included with
the Property shall be all fixtures that integrally belong to, are specifically
adapted to or are a part of the real estate, whether attached or detached.  Also included shall be the
following:_______________________________________________________________________________________________________________________________________________________________

The
following items shall not be included:  personal
property located in the house and out buildings located on the Property and
the______ irrigation systems located on the Property___________________________________________________

7.  CONDITION OF THE PROPERTY.  The property as of the date of this Agreement, including buildings,
grounds, an all improvements, will be reserved by the SELLERS in its present
condition until possession, ordinary wear and tear excepted.  SELLERS make no warranties, expressed or
implied, as to the condition of the property.

  A. 
BUYERS acknowledge that they have made a satisfactory inspection the
Property and are purchasing the Property in its existing condition.

  B.  (If “A” is stricken) Within  ____ days after the acceptance of this
Agreement, BUYERS may, at their sole expense, have the property inspected by a
person or persons of their choice to determine if there are any structural,
mechanical, plumbing, electrical, environmental, or other deficiencies.  Within this same period, the BUYERS may
notify in writing the SELLERS of any deficiency.  The SELLERS shall immediately notify the
BUYERS in writing of what steps, if any, the SELLERS will take to correct any
deficiencies before closing.  The BUYERS
shall then immediately in writing notify the SELLERS that (1) such steps are
acceptable, in which case this Agreement, as so modified, shall be binding upon
all parties; or (2) that such steps are not acceptable, in which case this
Agreement shall be null and void, and any earnest money shall be returned to
BUYERS.

8.  ABSTRACT AND TITLE.   SELLERS, at their expense, shall promptly obtain an abstract of title to
the Property continued through the date of acceptance of this Agreement,
_______________, and deliver it to BUYERS’ attorney for examination.  It shall show marketable title in SELLERS in
conformity with this Agreement, Iowa law, and title standards of the Iowa State
Bar Association.  The SELLERS shall make
every reasonable effort to promptly perfect title.  If closing is delayed due to SELLERS’
inability to provide marketable title, this Agreement shall continue in force
and effect until either party rescinds the Agreement after giving ten days
written notice to the other party.  The
abstract shall become the property of BUYERS when the Purchase Price is paid in
full.  SELLERS shall pay the costs of any
additional abstracting and title work due to any act or omission of SELLERS,
including transfers by or the death of SELLERS or their assignees.  Unless stricken, the abstract shall be
obtained from an abstracter qualified by the Guaranty Division of the Iowa
Housing Finance Authority.

9.  SURVEY.  If a survey is required under Iowa Code Chapter 354, or city or county
ordinances, SELLERS shall pay the costs thereof.  BUYERS may, at BUYERS’ expense prior to
closing, have the property surveyed and certified by a registered land
surveyor.
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

If the survey shows an encroachment on the Property or if any
improvements located on the Property encroach on lands of others, the
encroachments shall be treated as a title defect.

10.  ENVIRONMENTAL MATTERS.

  A.  SELLERS warrant to the best of their
knowledge and belief that there are no abandoned wells, solid waste disposal
sites, hazardous wastes or substances, or underground storage tanks located on
the Property, the Property does not contain levels of radon gas, asbestos, or
urea-formaldehyde foam insulation which require remediation under current
government standards, and SELLERS have done nothing to contaminate the Property
with hazardous wastes or substances. 
SELLERS warrant that the property is not subject to any local, state, or
federal judicial or administrative action, investigation or order, as the case
may be, regarding wells, solid waste disposal sites, hazardous wastes or
substances, or underground storage tanks. 
SELLERS shall also provide BUYERS with a properly executed GROUNDWATER
HAZARD STATEMENT showing no wells, solid waste disposal sites, hazardous wastes
and underground storage tanks on the Property unless disclosed
here:_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

  B.  BUYERS may at their expense, within ____ days
after the date of acceptance, obtain a report from a qualified engineer or
other person qualified to analyze the existence or nature of any hazardous
materials, substances, conditions or wastes located on the Property.  In the event any hazardous materials,
substances, conditions or wastes are discovered on the Property, BUYERS’
obligation hereunder shall be contingent upon the removal of such materials,
substances, conditions, wastes or other resolution of the matter reasonably
satisfactory to BUYERS.

 

However, in the event SELLERS are required to expend any sum in excess
of $________________ to remove any hazardous materials, substances, conditions
or wastes, SELLER shall have the option to cancel this transaction and refund
to BUYERS all earnest money paid and declare this Agreement null and void.  The expense of any inspection shall be paid
by BUYERS.  The expense of any action
necessary to remove or otherwise make safe any hazardous materials, substances,
conditions or waste shall be paid by SELLERS, subject to SELLERS’ right to
cancel this transaction as provided above.

11.  DEED.  Upon payment of the Purchase Price, SELLERS shall convey the Property to
BUYERS by Warranty deed, free and clear of all liens, restrictions, and
encumbrances except as provided in this Agreement.  General warranties of the title shall extend
to the time of delivery of the deed excepting liens and encumbrances suffered
or permitted by BUYERS.

12.  JOINT TENANCY IN PROCEEDS
AND IN REAL ESTATE.  If SELLERS, immediately preceding acceptance
of the offer, hold title to the Property 
in joint tenancy with full rights of survivorship, and the joint tenancy
is not later destroyed by operation of law or by acts of the SELLERS, then the
proceeds of this sale, and any continuing or recaptured rights of SELLERS in
the Property, shall belong to SELLERS as joint tenants with full rights of
survivorship and not as tenants in common; and BUYERS in the event of death of
any SELLER, agree to pay any balance of the price due SELLERS under this
contract to the surviving SELLERS and to accept a deed from the surviving
SELLERS consistent with Paragraph 15.

13.  JOINDER BY SELLERS’S
SPOUSE.  SELLERS spouse, if not a title holder
immediately preceding acceptance, executes this Agreement only for the purpose
of relinquishing all rights of dower, homestead and distributive share or in
compliance with Section 561.13 of the Code of Iowa and agrees to execute the
deed or real estate contract for this purpose.

14.  STATEMENT AS TO LIENS.  If Buyers intend to assume or take subject to a lien on the Property,
SELLERS shall furnish BUYERS with a written statement prior to closing from the
holder of such lien, showing the correct balance due.

15.  USE OF PURCHASE PRICE.  At
time of settlement, funds of the Purchase Price may be used to pay taxes and
other liens and to acquire outstanding interests, if any, of others.

16.  APPROVAL OF COURT.  If the Property is an asset of an estate, trust or conservatorship, this
Agreement is contingent upon Court approval unless Court approval is not
required under Iowa law and title standards of the Iowa State Bar Association.  If the sale of the Property is subject to
Court approval, the fiduciary shall promptly submit this Agreement for such
approval.  If this Agreement is not so
approved by __________________ either party may declare this Agreement null and
void, and all payments made hereunder shall be made to BUYERS.

17.  REMEDIES OF PARTIES.

  A.  If
BUYERS fail to timely perform this Agreement, SELLERS may forfeit it as
provided in the Iowa Code (Chapter 656), and all payments made shall be
forfeited; or, at SELLERS option, upon thirty days written notice of intention
to accelerate the payment of the entire balance due and payable.  Thereafter this Agreement may be foreclosed
in equity and the Court may appoint a receiver.

  B.  If SELLERS fail to timely perform this
Agreement, BUYERS have the right to have all payments made returned to them.

  C.  BUYERS and SELLERS are also entitled to
utilize any and all other remedies or actions at law or in equity available to
them, and the prevailing parties shall be entitled to obtain judgment for costs
and attorney fees.

18.  NOTICE.  Any
notice under this Agreement shall be in writing and be deemed served when it is
delivered by personal delivery or mailed by certified mail, addressed to the
parties at the addresses given below.

19.  GENERAL PROVISIONS.  In the performance of each part of this Agreement, time shall be of the
essence.  Failure to promptly assert
rights herein shall not, however, be a waiver of such rights or a waiver of any
existing or subsequent default.  This Agreement
shall apply to and bind the successors in interest of the parties.  This Agreement shall survive the
closing.  This Agreement contains the
entire agreement of the parties and shall not be amended except by a written
instrument duly signed by SELLERS and BUYERS. 
Paragraph headings are for convenience of reference and shall not limit
or affect the meaning of this Agreement. 
Words and phrases herein shall be construed as in the singular or plural
number, and as masculine, feminine or neuter gender according to the content.

20.  NO REAL ESTATE AGENT OR
BROKER.  Neither party has used the service of a real
estate agent or broker in connection with this transaction.

21.  ADDITIONAL PROVISIONS.  “Other Provisions”

  A.  This Offer and Acceptance is entered into
pursuant to the terms of a certain Option Agreement signed by the parties dated
May ____, 2006.  The terms of said Option
Agreement are incorporated herein by this reference.  In any conflict between the terms of said
Option Agreement and this Offer and Acceptance, the terms of said Option
Agreement shall prevail.

22.  ACCEPTANCE.  When
accepted, this Agreement shall become a binding contract.  If not accepted and delivered to BUYERS on or
before the ____ day of ______________________, this Agreement shall be null and
void and all payments made shall be returned immediately to BUYERS.  If accepted by SELLERS at a later date and
acceptance is satisfied in writing, then this contract shall be valid and
binding.

 

	
  Accepted

  	
   

  	
   

  	
  Dated

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SELLERS

  	
   

  	
  BUYERS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
   

  	
  Print Name

  	
  LSCP, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SS#

  	
   

  	
   

  	
  SS#

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
   

  	
  Print Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SS#

  	
   

  	
   

  	
  SS#

  	
  xx-xxxxxxx

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
  Address:

  	
  4808 F Avenue

  
	
   

  	
   

  	
  Marcus, Iowa 5103

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telephone:

  	
   

  	
   

  	
  Telephone

  	
  (712) 376-2800Exhibit
10.7

ASSIGNMENT
OF REAL ESTATE OPTION AGREEMENT

THIS AGREEMENT is made and entered into on as of the 20th day of March, 2007
(the “Effective Date”) by and between LSCP, LLLP, an Iowa
limited liability limited partnership
(“Assignor”) and Akron
Riverview Corn Processors, LLC,
an Iowa limited liability company (“Assignee”).

FOR VALUE RECEIVED, Assignor
hereby sells, assigns, transfers and conveys to Assignee, and Assignee hereby
agrees to assume, all of Assignor’s right, title and interest in and to that certain Option to Purchase Real Estate
dated the 16th day of
June, 2006, a copy of which is attached
hereto as Exhibit “A” and by this reference incorporated herein (the “Assigned
Option”), wherein Assignor is named as optionee and Robert E. Lias and Margaret
Lias (together “Optionor”) are named as
optionor(s) of that certain real property described in the Assigned Option; and

This
assignment is made subject to all of the terms and conditions of said Assigned
Option and pursuant to the express consent of the optionors as evidenced
hereafter.  By its signature hereon,
Assignee agrees to fulfill all of the terms and conditions of said Assigned
Option.

Nothing
herein shall operate to relieve Assignor from any duties or obligations to
Optionor under the Option to Purchase Real Estate.

This
Assignment, together with all of the terms, agreements, covenants and
warranties contained herein, shall inure to and become binding upon the
successors and assigns of the parties hereto.

IN WITNESS WHEREOF, Assignor and
Assignee have executed this Agreement on the day and year first written above.

ASSIGNOR:

	
  LSCP, LLLP

  	
   

  	
   

  
	
  By:

  	
  Little Sioux
  Corn Processors, L.L.C.

  	
   

  	
   

  
	
  Its:

  	
  General Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Steve Roe

  	
   

  	
   

  	
   

  
	
   

  	
  Steve Roe, Its
  President and CEO

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Subscribed and sworn to before me this 20th
  day of March                     ,
  2007.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Sonia Jones

  	
   

  
	
  [notary stamp]

  	
   

  	
  Notary Public in and for the State of Iowa

  
										

 

ASSIGNEE:

	
  Akron Riverview Corn
  Processors, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Stephen Roe

  	
   

  	
   

  	
   

  
	
   

  	
  Steve Roe, Its
  President and CEO

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Subscribed and
  sworn to before me this 20th day of March                   ,
  2007.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Sonia Jones

  	
   

  
	
  [notary stamp]

  	
   

  	
  Notary Public in
  and for the State of Iowa

  
									

 

CONSENT
TO ASSIGNMENT

COMES NOW
Robert E. Lias and Margaret Lias, and in accordance with the signature
hereafter, consents to the above assignment of the Assigned Option.

Dated this                 
day of                                                            ,
2007.

	
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Robert E. Lias

  	
   

  	
  Margaret Lias

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Subscribed and sworn to before me this                 
  day of                                            ,
  2007.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Notary Public in
  and for the State of Iowa

  	
   

  	
   

  	
   

  
								

 

EXHIBIT A

WHEN RECORDED RETURN TO:

William E. Hanigan

666 Grand Avenue, Suite 2000

Des Moines, IA  50309-2510

Preparer

	
  Information

  	
   

  	
  William E. Hanigan

  	
   

  	
  666 Grand Ave., Ste. 2000

  	
   

  	
  Des Moines

  	
   

  	
  (515) 242-2473

  
	
   

  	
   

  	
  Individual’s Name

  	
   

  	
  Street Address

  	
  City

  	
   

  	
  Phone

  

 

	
  

  	
   

  
	
  SPACE
  ABOVE THIS LINE FOR RECORDER

  	
   

  

 

REAL
ESTATE OPTION AGREEMENT

THIS AGREEMENT (hereinafter “Option
Agreement) is made this 19th day of June, 2006, by and between Robert E. Lias
and Margaret Lias, husband and wife (hereinafter collectively referred to as “Optionor”)
and LSCP, LLLP, an Iowa limited liability limited partnership (hereinafter
referred to as “Optionee”).

W I T N E
S S E T H:

WHEREAS, Optionor is the sole
owner of real estate (the “Property”) described in full at paragraph 1 below
and is desirous of securing a future purchaser of said real property under
defined terms; and

WHEREAS, Optionee desires to
acquire the Property from Optionor in accordance with the terms and conditions
set forth hereafter.

IN CONSIDERATION of the
covenants and promises contained hereafter, it is agreed:

1.               PREMISES:  That Optionor hereby grants to Optionee the
exclusive option to purchase the Property (as legally described on Exhibit A
attached hereto), together with all improvements thereon, if any.

2.               OPTION CONSIDERATION:  As consideration for the option grant
provided in Paragraph 1 above, Optionee agrees to pay to Optionor at the time
of the execution of this Option Agreement the sum of $15,000.00 (the “Option Amount”).  Optionee shall make said payment to Spence
Title Services, Inc. (the “Escrow Agent”), who shall act as the escrow agent for Optionor for purposes of a possible
Section 1031 Exchange, as set forth below, with said payment to be credited
against the Purchase Price.  The parties
agree that there is valid and sufficient consideration for this Option Agreement based on this sum, the
mutual obligations herein contained and other good and valuable
consideration.  In addition, Optionor
agrees not to enter into any other Purchase, Lease or Agreement of any kind
with any other party relating to the Property during the term of this Option
Agreement, except as permitted herein.

3.               TERM:  This
Option Agreement shall commence on the date of its execution and continue until
the 19th day of
December, 2006, (“Initial Term”).  If the
option to purchase will not be exercised by midnight of the final day of the
Initial Term, this Option Agreement shall be

renewable, at the sole
discretion of Optionee and with additional payment in the amount of $10,000
(the “Extended Option Amount”), for period expiring on the 19th day of June, 2007, (the “Extended
Option Term”).  In the event Optionee
does not exercise the option to purchase within the term specified herein
(including the automatic term extension, if applicable), this Option Agreement
shall expire automatically and be null and void, except as to provisions
pertaining to the payment of option price to Optionor, indemnity and hold
harmless, crop damage, and lease to Optionee, if applicable.  If an option term expires without the
exercise of the option, then the option amount for that option term shall be
deemed to be irrevocably earned by Optionor and shall be paid to Optionor by Escrow
Agent upon the termination of this Option Agreement for any reason other than
the closing of the sale and conveyance of the Property and except as provided
in Subparagraph g of Paragraph 5.  In the
event that Optionee exercises the option in accordance with this Option
Agreement, all option amounts shall become “Earnest Money” as defined in
Paragraph 4.

4.               NOTICE OF EXERCISE OF OPTION: 
Optionee shall notify Optionor, in a manner specified in Paragraph 8
hereof, and prior to the expiration of the Initial Term or Extended Option
Term, as applicable, of its intention to exercise this option to purchase,
which notice must be received by Optionor prior to the expiration of the
respective option term as set forth above. 
Upon giving notice as provided in this Paragraph 4, the purchase of the
Property shall proceed pursuant to the terms and conditions set forth in
Paragraph 5 hereafter.  In the event of
the exercise of the option in any manner permitted herein, the Optionee shall
pay to the Escrow Agent, as Earnest Money, in addition to the Option Amount and
Extended Option Amount (if applicable) that shall, by virtue of the exercise of
the option, become Earnest Money, the additional sum of $15,000.

5.               PURCHASE TERMS:  Pursuant to the terms of this Option
Agreement, Optionor agrees to sell and Optionee agrees to purchase the Property
under the following terms and conditions:

a.               Purchase Price:  The purchase price shall be $15,000.00 per
acre (as determined by survey to be paid by Optionee), payable in cash at
closing.  Optionee shall be given a credit
against said purchase price for all Earnest Money and for all taxes and special
assessments to be prorated pursuant to Subparagraphs d and e of this Paragraph 5.

b.              Title:  Optionor shall, within thirty (30) days from
the receipt of Optionee’s notice to exercise the option to purchase, furnish
Buyer with a Commitment, through Spence Title Services, Inc. for an Owner’s
Title Insurance Policy for the Property (the “Commitment”), with the Commitment
to be in the full amount of the Purchase Price, and showing marketable title to
be vested in Optionor in accordance with this Option Agreement, the land title
laws of the State of Iowa, and the Iowa Title Standards of the Iowa State Bar
Association.  Optionee shall notify Optionor,
within 7 days of receipt of the Commitment, in writing, of any matters or
exceptions to the title which are unacceptable to Optionee (the “Objection
Notice”).  If, any matters, conditions or
exceptions are unacceptable to Optionee (in Optionee’s reasonable discretion,
exercised in good faith) and Optionee notifies Optionor in writing of such fact
prior to the expiration of the 7 day period, Optionor shall exercise reasonable
efforts to cure such matters, conditions or exceptions at least five (5) days
prior to the scheduled Closing (as defined in “h” below), or if necessary
extend the scheduled Closing of up to ten (10) days to complete such cure.  If Optionee

fails to notify Optionor in writing of any matters,
conditions or exceptions which are unacceptable to Optionee prior to the expiration
of the 7 day period, such exceptions shall be deemed accepted by Optionee and
shall constitute permitted exceptions (the “Permitted Exceptions”) and Optionee’s
right to request Optionor to cure such matters, conditions or exceptions shall
be deemed waived by Optionee.

If Optionor notifies Optionee in writing that Optionor
is unable to remove such unacceptable matters, conditions or exceptions, or if
Optionor fails or refuses to cure said unacceptable matters, conditions or
exceptions within the time period provided, Optionee may, as Optionee’s sole
and exclusive remedies, either (i) terminate this Agreement by giving Optionor
written notice thereof, in which event the Earnest Money shall be returned to
Optionee, and neither party shall have any further rights, duties, or
obligations hereunder and this Agreement shall thereafter be null and void for
all purposes (with the exception of provisions pertaining to the payment of
option price to Optionor, indemnity and hold harmless, crop damage, and lease to
Optionee, if applicable); or (ii) elect to purchase the Property subject to
such unacceptable items or objections not so eliminated, modified, or cured, in
which event the Purchase Price shall not be reduced.  Optionee shall make such election upon the earlier
of the time scheduled for Closing, or within five (5) business days of receipt
of Optionor’s written notice that it is unable to remove the exceptions or that
the exceptions cannot be removed or cured on commercially reasonable
terms.  Optionee’s failure to provide
written notice in timely manner shall constitute any election of (ii) above
within the meaning of this paragraph.

Costs for obtaining a standard owner’s policy shall be
split evenly between Optionor and Optionee. 
All additional endorsements requested by Optionee shall be at Optionee’s
cost.

c.               Warranty Deed:  Upon receipt of the full purchase price set
forth above, Optionor shall execute and deliver to Optionee an appropriate
Warranty Deed (subject to Permitted Exceptions), a Declaration of Value, and a
Groundwater Hazard Statement for recording by Optionee.  All costs, documentary taxes and fees and
filing fees associated with the closing of the sale shall be borne by Optionee.

d.              Taxes:  Optionor shall give Optionee a credit against
the purchase price for all unpaid real estate taxes that constitute a lien
against the Property prorated through the date of closing.  If the amount of any such tax to be prorated
cannot be ascertained, proration shall be computed on the amount for the
preceding year.  Optionee shall be
responsible for payment of all real estate taxes after the date of closing.

e.               Special Assessments:  Optionor shall give Optionee a credit against
the purchase price for all special assessments that constitute a lien against
the Property prorated through the date of closing.

f.                 Eminent Domain:  In the event the property or any part thereof
is taken or threatened to be taken pursuant to eminent domain after Optionee
give notice of intent to exercise of the option, but prior to closing, Optionee
shall have the right at its election to cancel and terminate this Option
Agreement, having all sums paid for the Option Amount and any

extensions returned to Optionee, or to complete the
purchase as set forth above with Optionee being entitled to receive all
condemnations proceeding against the Property.

g.              Closing:  Closing shall be held on a date agreeable to
the parties not later than 60 calendar days after receipt of Optionee’s notice
of intent to exercise the option.  The
parties contemplate that a related real estate purchase between Optionee and
Mary F. Wohlenberg, as Trustee of the Mary Frances Wohlenberg Trust date the 5th day of May, 1995, for the purchase of the
adjacent real property (the “Related Purchase”) shall close on the same day as
the purchase contemplated in this Agreement. 
The parties intend that both transactions close or neither close.  For this reason, neither party shall be
obligated to close this transaction unless all documents, payments and things
necessary to the closing of the Related Purchase are placed into the possession
of the Escrow Agent who shall serve as closing agent, and who shall be the same
for both transactions, together with irrevocable letters of instruction
directing the agent to close the Related Purchase and the purchase contemplated
herein, and further subject to the cancellation or unwinding of this Agreement
and its Closing, including but not limited to the reconveyance of the Property
from Optionee to Optionor, if necessary, to fulfill the intent of this
paragraph.  If the Related Purchase does
not close for any reason other than the default of the Optionee, Optionee may,
in its discretion terminate this Option Agreement without liability, in which
case this Option Agreement shall be null and void (with the exception of
provisions pertaining to the payment of option price to Optionor, indemnity and
hold harmless, crop damage, and lease to Optionee, if applicable), and all
Earnest Money (including amounts paid for the Option Amount and the Extended
Option Amount, if applicable) shall be returned to Optionee.  If the Related Purchase does not close for
any reason other than the default of Optionor, the Optionor may, in its
discretion, terminate this Option Agreement without liability, in which case
this Option Agreement shall be null and void (with the exception of provisions
pertaining to the payment of option price to Optionor, indemnity and hold
harmless, crop damage, and lease to Optionee, if applicable), and, except in
case of default by Optionee, all Earnest Money (including amounts paid for the
Option Amount and the Extended Option Amount, if applicable) shall be returned
to Optionee.

h.              Default:  In the event Optionor has fulfilled all of
its obligations hereunder and all conditions precedent and concurrent to
closing for which it is responsible, and Optionee fails to fulfill its
obligations hereunder and continues to fail and refuses to fulfill its
obligations hereunder for more than 30 calendar days after receipt of written
notice of such default from Optionor, then Optionor may either:  1) terminate this Option Agreement (in
which event it shall be entitled to retain the Option Amount and any other
monies paid hereunder, which shall be the sole remedy and damages available to
Optionor); or 2) pursue any other legal or equitable remedies available to
it.  In the event Optionee fulfills all
of its obligations hereunder and meets all conditions precedent and concurrent
to closing for which it is responsible, and Optionor is unable, fails or refuses
to meet its obligations hereunder for more than 30 calendar days after receipt
of written notice from Optionee of such default, Optionee may either:  1) terminate this Option Agreement (in which
event it shall be entitled to receive refund of the Option Amount and any other
monies paid hereunder, which shall be the sole remedy and damages available to
Optionee); or 2) pursue any other legal or equitable remedies available to
it.  In the event that this Option Agreement
is terminated, both parties shall cooperate to take any and all

actions necessary to cancel this Option Agreement,
including the execution and recording of a termination of this Option
Agreement, the costs of which shall be paid by the party causing the
termination of this Option Agreement.

i.                  Personal Property:  Optionee understands and agrees that Optionor
shall have the right under the Option
Agreement to retain and remove, at Optionor’s cost, personal property located
in the house and out buildings located on the Property.  Optionee further agrees that Optionor shall
have the right to retain, remove, and sell the irrigation systems locates on
the Property at Optionor’s cost. 
Optionor shall have 30 days after the Closing to remove any such
personal property and irrigation systems from the Property.

j.                  Crop Damage:  In
the event the closing and conveyance of the Property to Optionee shall occur
after Optionor plants crops, but before harvest of those crops, the parties
hereto mutually agree that Optionor shall have the right, upon notice to the
Optionee and at the Optionee’s convenience, to harvest any crops not destroyed
by the Optionee in the process of its due diligence and/or its constructing of
the ethanol plant and related improvements thereto.

Damage
to crops shall be calculated for all purposes under this Option Agreement as
follows:  Optionee shall pay Optionor
additional $175.00 per tillable acre for corn and $175.00 per tillable acre for
soybeans for the actual number of acres, or fractional acres, of crop destroyed
on the Property by the Optionee prior to the harvest of such crop acres by the
Optionor in exchange for Optionor transferring all of its right, title, and
interest in and to such crops to Optionee. 
The number of such acres destroyed shall be measured by a surveyor selected
by Optionee and the fee for such measurement shall be borne by the
Optionee.  Optionee shall have no duty to
preserve any of such crops, and Optionor accepts the payment specified in this
Subparagraph (j) as liquidated damages (in lieu of any and all other damages)
in complete payment of all actual costs incurred by Optionor for seed,
fertilizer, and pesticides.

k.               Termination of Tenants and
Tenancy for 2007.  Regardless of when or if Optionee provides
notice of intent to exercise its option provided hereunder, Optionor agrees to
provide notice, on or before September 1, 2006, to any tenant of the Property
of the termination of such tenant’s tenancy. 
Such notice shall follow the form required for the termination of farm
tenancies under Iowa Code Chapter 562. 
Optionor also hereby constitutes and appoints Optionee as its
attorney-in-fact, with full power of substitution, for Optionee to sign and
deliver any and all notices required to terminate the tenancy of any tenant of
the Property on behalf of Optionor. 
Optionor hereby acknowledges, ratifies and conveys its authorization
unto Optionee to act as its attorney-in-fact, for purposes of terminating any
leasehold interests held or claimed by tenants in possession of the
Property.  Therefore, Optionee’s signature
on any documents utilized to terminate any such farm tenancy shall be deemed
fully authorized and treated as if signed by Optionor.

In the event that this
Option Agreement has not been terminated or expired on or before March 1, 2007,
then Optionee agrees to lease the Property from Optionor for the cash rent
amount of $175.00 per tillable acre, payable in advance.  If Optionee farms the Property during 2007,
it agrees to use the tenant now farming the Property.  In the further event that

the sale closes during 2007,
the cash rent shall be prorated to the date of closing and credited and debited
accordingly at closing.

l.                  Mineral Rights.  Optionor
understands and agrees that Optionee shall reserve and retain under the
Purchase Agreement an undivided 50% interest to Optionor and their heirs,
successors and assigns, in the minerals in, on or underlying the Property.  Optionor
waives any right to use the surface for any mineral activity and agrees
Optionor shall have no right to enter upon or pass over the Property to
bore, search, and excavate for any such minerals, nor to work the Property,
remove any minerals, or otherwise exploit the minerals in the Property.  Optionor’s retained interest in mineral
resources may only be claimed upon exploitation of any mineral resources
underlying the Property by, through or on undertaken in the sole discretion of
Optionee.  During the term of this Option
Agreement, Optionor agrees that Optionor shall not undertake any exploitation
or excavation of such minerals without the prior written consent of Optionee
and Optionee’s approval of all engineering plans regarding such
excavation.  Nothing in this Option
Agreement shall be construed to require Optionee to continue or undertake the
exploration or exploitation of any minerals on the Property after the exercise
of the option granted hereunder.

m.            Form of
Purchase Agreement.  Upon
exercise of the option, the parties agree to bound without further action to
the terms and conditions as set out in the Iowa State Bar Association form for
Offer to Buy Real Estate and Acceptance (Nonresidential), attached hereto as
Exhibit B (the “Purchase Agreement”). 
This Option Agreement survives the exercise of the option and shall
control in the event of any conflicts between the terms and provisions of this
Agreement and the Purchase Agreement.

6.               RECORDING OF OPTION:  The parties hereto agree that this Option
Agreement shall be recorded at the cost of the party desiring such recording.

7.               INSPECTION RIGHTS:  Optionee shall, during the term of this
Option Agreement, have the unrestricted rights (subject to the rights of
tenants in possession) to enter upon the Property for purposes of performing
any and all due diligence necessary for
Optionee’s determination to purchase the Property in its sole discretion
including, but not limited to, the taking of soil samples.  Optionee understands and agrees that during
the term of this Option Agreement Optionor shall have the full and unrestricted
right to plant crops on the Property. 
Should Optionee, as a part of its inspection, damage any of the growing
crops on the Property, Optionee shall be responsible for the payment of the
fair market value thereof to Optionor as calculated under the terms of
Subparagraph (j) of Paragraph 5 above.

Upon termination of this Option Agreement for any
reason other than sale and conveyance of the Property, Optionor shall have the
right to receive a copy of any and all studies done pertaining to the Property,
upon payment of one-half (1/2) the cost of the studies, as follows:  Survey, environmental Phase I or other
environmental studies, soil tests, borings or geotechnical.

Optionee hereby indemnifies and holds Optionor
harmless from and against any and all liabilities actually incurred, including,
without limitation, any damages or injury to persons or

property, resulting directly from studies, tests
and/or inspections of the Property by Optionee and/or its agents, employees,
invitees and/or licensees and their agents, employees, invitees and/or
licensees and any mechanics’ or other liens, losses, costs, expenses or claims
that may be filed or asserted against the Property or Optionor by such parties
in relation to such inspection (which indemnification shall survive termination
of this Agreement).

8.               NOTICES:  Any notice, demand, or other document which
either party is required or may desire to give to other party shall be given in
writing and served either personally, by Federal Express, United Parcel
Service, or other traceable delivery method, or given by prepaid United States
certified mail, return receipt requested, and addressed to the following
addresses:

	
  If to Optionor:

  	
   

  	
  Robert E. Lias and Margaret Lias

  
	
   

  	
   

  	
  600 South 5th Street

  
	
   

  	
   

  	
  Akron IA 
  51001-8533

  
	
   

  	
   

  	
   

  
	
  Copy to: 

  	
   

  	
  Dwyer, Smith, Garner, Lazer,

  Pohren, Rogers & Forrest, LLP

  
	
   

  	
   

  	
  8712 West Dodge Rd.

  
	
   

  	
   

  	
  Omaha, NE 
  68114

  
	
   

  	
   

  	
  Attention: H. Daniel Smith

  
	
   

  	
   

  	
  Facsimile: 402-392-1011

  
	
   

  	
   

  	
  E-mail: dsmith@dwyersmith.com

  
	
   

  	
   

  	
   

  
	
  If to Optionee:

  	
   

  	
  LSCP, LLLP

  
	
   

  	
   

  	
  4808 F Avenue

  
	
   

  	
   

  	
  Marcus, Iowa 51035

  
	
   

  	
   

  	
  Attention:  Steve
  Roe

  
	
   

  	
   

  	
   

  
	
  Copy to:

  	
   

  	
  Brown, Winick, Graves, et al.

  
	
   

  	
   

  	
  666 Grand Ave., Ste. 2000

  
	
   

  	
   

  	
  Des Moines, Iowa, 50309

  
	
   

  	
   

  	
  Attention: 
  William Hanigan

  
	
   

  	
   

  	
  Facsimile: 515-283-0231

  
	
   

  	
   

  	
  E-mail: Hanigan@ialawyers.com

  

 

Copies of all notices shall be sent contemporaneously
to the party entitled to notice and to his, her or its attorney, and in the
case of the attorney, also by facsimile or E-mail, if then available.  Either party hereto may designate a different
address for itself, or additional persons to whom copies thereof are to be
sent, by notice similarly given.  Notice
shall be deemed to be effective upon the date that it is sent if sent in
accordance with this provision.

9.               REAL ESTATE BROKERS:  The parties hereto represent that, absent
specific disclosure in writing, no real estate brokers have been employed,
utilized or relied upon by either party in the granting of this option or the
real estate sale contemplated therein.

10.         TIME:  Time is of the essence as to the execution of
and the performance of all of the terms and conditions of this Option
Agreement.

11.         ATTORNEY
FEES:  Any action required
of either party hereunder to enforce its rights to this Option Agreement shall
entitle said party to the recovery of its reasonable attorney fees, costs, and expenses incurred and necessary to the
enforcement of said rights.  Except as
otherwise provided herein, each party shall be responsible for its own attorney’s
fees in connection with this Option Agreement.

12.         GENERAL:  This Option Agreement shall be deemed to have
been made and shall be construed and interpreted in accordance with the laws of
the State of Iowa.  This Option Agreement
shall be binding upon and inure to the benefit of the respective parties hereto
and their successors and assigns.  The
captions and titles herein are for reference only and are not to be considered
a part of this Option Agreement or in the interpretation hereof.  This Agreement shall not be valid until
signed by both parties.  The phrase “execution
and delivery hereof,” as used above, shall be the date the last party hereto
signs this Option Agreement and serves it upon the other party in the same
manner as set forth for notices.

13.         SECTION
1031 EXCHANGE:  It is
specifically understood and agreed between the parties hereto that Optionor, as
a part of this sale, is contemplating a 1031 Exchange as described by the
Internal Revenue Code, and each of the parties hereto agrees to perform such
acts in connection therewith and in connection with this sale as are required
and will cooperate with Optionor to complete said exchange at no cost,
detriment or imposition to the Optionee. 
Failure on the part of Optionor to locate a suitable replacement
property or otherwise be unable to complete a 1031 Exchange shall not affect
the enforceability of the remaining terms of this Option Agreement.  This Agreement shall be assignable to a
qualified intermediary of Optionor’s choosing.

[Signature Page
Follows]

Signature
Page to Real Estate Option Agreement

IN WITNESS WHEREOF,
said parties hereto subscribe their names.

	
  OPTIONOR:

  	
   

  	
  OPTIONEE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LSCP, LLLP

  
	
   

  	
   

  	
  By:  Little
  Sioux Corn Processors, L.L.C.

  
	
   

  	
   

  	
  Its:  General
  Partner

  
	
   

  	
   

  	
  EIN: 42-1510421

  
	
   

  	
   

  	
   

  
	
  /s/ Robert El
  Lias

  	
   

  	
  BY:

  	
  s/s  Stephen G. Roe

  	
   

  
	
  Robert E. Lias

  	
   

  	
   

  	
   

  
	
  SS#:

  	
  xxx-xx-xxxx

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Margaret
  Lias

  	
   

  	
   

  	
   

  
	
  Margaret Lias

  	
   

  	
   

  	
   

  
	
  SS#:

  	
  xxx-xx-xxxx

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DATE:

  	
  6/16/06

  	
   

  	
  DATE:

  	
  6-19-06

  	
   

  
										

 

 

	
  STATE OF IOWA

  	
   

  	
  )

  
	
   

  	
   

  	
  )SS:

  
	
  COUNTY OF

  	
  Plymouth

  	
   

  	
  )

  
				

 

On this 16th day of June, 2006, before me, the undersigned, a Notary
Public in and for the State of Iowa, personally appeared Robert E. Lias, to me
know to be the identical person named in and who executed the within and
foregoing instrument and acknowledged that he executed the same as his
voluntary act and deed.

	
  [SEAL Thomas J. Schroeder]

  	
   

  	
   

  
	
  [Commission Number 18862]

  	
   

  	
  /s/ Thomas J.
  Schroeder

  	
   

  
	
  [My Commission Expires]

  	
   

  	
  Notary Public in and for the State of Iowa

  
	
  [February 5,
  2009]

  	
   

  	
   

  

 

	
  STATE OF IOWA

  	
   

  	
  )

  
	
   

  	
   

  	
  )SS:

  
	
  COUNTY OF

  	
  Plymouth

  	
   

  	
  )

  
				

 

On this 16th day of June, 2006, before me, the undersigned, a Notary
Public in and for the State of Iowa, personally appeared Margaret Lias to me
know to be the identical person named in and who executed the within and
foregoing instrument and acknowledged that he executed the same as his
voluntary act and deed.

	
  [SEAL Thomas J. Schroeder]

  	
   

  	
   

  
	
  [Commission Number 18862]

  	
   

  	
  /s/ Thomas J. Schroeder

  	
   

  
	
  [My Commission Expires]

  	
   

  	
  Notary Public in and for the State of Iowa

  
	
  [February 5, 2009]

  	
   

  	
   

  

 

	
  STATE OF IOWA

  	
   

  	
  )

  
	
   

  	
   

  	
  )SS:

  
	
  COUNTY OF

  	
  Cherokee

  	
   

  	
  )

  
				

 

On this 19 day of June, 2006, before me, the
undersigned, a Notary Public in and for the State of Iowa, personally appeared
Stephen Roe to me personally known, who being by me duly sworn, did say that he
is the President of Little Sioux Corn Processors, L.L.C., a limited liability
company, executing the within and foregoing instrument; that no seal has been
procured by the said limited liability company; that said instrument was signed
on behalf of the limited liability company by authority of its members; and
that Stephen Roe, as President, acknowledged the execution of the foregoing
instrument to be the voluntary act and deed of the limited liability company,
by it and by him voluntarily executed.

	
  [SEAL: 
  Becky J Nothem]

  	
   

  	
   

  
	
  [Commission Number 718168]

  	
   

  	
  /s/ Becky J.
  Nothem

  	
   

  
	
  [My Commission Expires]

  	
   

  	
  Notary Public in and for the State of Iowa

  
	
  [August 26, 2008]

  	
   

  	
   

  

 

Exhibit A – Legal Description

Description:

All
that part of the Northeast Quarter (NE1/4) of Section Twelve (12), Township
Ninety-Two (92) North, Range Forty Nine (49) West of the 5th P.M., lying West of Iowa Highway
No. 12.

AND

The
Southwest Quarter (SW1/4) OF Section Twelve (12), Township Ninety-Two (92)
North, Range Forty-Nine (49) West of the 5th P.M., subject to existing highway and railroad
right-of-way.

The
Optionor reserves the right to convey to Optionee at closing a separate parcel
within the described parcels to be described, and if necessary surveyed, prior
to closing and conveyed by separate Warranty Deed, for the purpose of conveying
a homestead parcel.

Exhibit B – Form of Purchase Agreement

OFFER TO
BUY REAL ESTATE AND ACCEPTANCE

(NONRESIDENTIAL)

TO                                                                                                                                                                               (SELLERS)

The
undersigned BUYERS hereby offer to buy and the undersigned SELLERS by their
acceptance agree to sell the real property situated in                       ,
Iowa, locally known as                                                                                                    
and legally described as: legally described on Exhibit A attached hereto

Together
with any easements and appurtenant servient estates, but subject to any
reasonable easements of record for public utilities or roads, any zoning restrictions
customary restrictive covenants and mineral reservations of record, if any,
herein referred to as the “Property,” upon the following terms and conditions
provided BUYERS, on possession, are permitted to use the Property for development,
construction and operation of a 100 million gallon per year commercial
ethanol-production facility                    
                                                                                                                     .

1.  PURCHASE PRICE.  The Purchase Price shall be $SEE BELOW and the method of payment
shall be as follows:  $SEE BELOW          
with this offer, to be deposited upon acceptance of this offer and held in
trust by  SEE BELOW               
as earnest money, to be delivered to the SELLERS upon performance of SELLERS’
obligations and satisfaction of BUYERS’ contingencies, if any, and the balance
of the Purchase Price, as follows:

Purchase price shall be $15,000.00 per acre (as determined by a final
survey to be paid by BUYER).  Purchase
price shall be paid cash at closing, after reduction for (i) amounts paid under
that certain Option Agreement entered into between the parties on May         ,
2006; (ii) prorated real estate taxes; (iii) special assessments; and (iv) any
other appropriate credits or reductions pursuant to this Offer and Acceptance
and the aforementioned Option Agreement.

2.  REAL ESTATE TAXES. 
Sellers shall pay all unpaid real estate taxes that constitute a lien
upon the Property prorated through the date of closing and any unpaid real
estate taxes payable in prior years. 
BUYERS shall pay all subsequent real estate taxes.

Unless otherwise provided in this Agreement, at
closing SELLERS shall pay BUYERS, or BUYERS shall be given a credit for, taxes
from the first day of July prior to possession to the date of possession based
upon the last known actual net real estate taxes payable according to public
records.  However, if such taxes are
based upon a partial assessment of the present improvements or a changed tax
classification as of the date of possession, such proration shall be based on
the current levy rate, assessed value, legislative tax rollbacks and real
estate tax exemptions that will actually be applicable as shown by the assessor’s
records on the date of possession.

3.  SPECIAL ASSESSMENTS.

  A.  SELLERS shall pay in full at time of closing
all special assessments which are a lien on the Property as of the date of
acceptance                                       .

  B.  IF “A” is stricken, then SELLERS shall pay at
time of closing all installments of special assessments which are a lien on the
Property and, if not paid, would become delinquent during the calendar year
this offer is accepted, and all prior installments thereof.

  C.  All charges for solid waste removal, sewage and
maintenance that are attributable to SELLERS’ possession, including those for
which assessments arise after closing, shall be paid by SELLERS.

  D.  Any preliminary or deficiency assessment
which cannot be discharged by payment shall be paid by SELLERS through an
escrow account with sufficient funds to pay such liens when payable, with any
unused funds returned to SELLERS.

  E.  BUYERS shall pay all other special
assessments or installments not payable by SELLERS.

4.  RISK OF LOSS AND
INSURANCE.  SELLERS shall bear the risk of loss or damages
to the Property prior to closing or possession, whichever first occurs.  SELLERS agree to maintain existing insurance
and BUYERS may purchase additional insurance. 
In the event of substantial damage or destruction prior to closing, this
Agreement shall be null and void; provided, however, BUYERS shall have the
option to complete the closing and receive insurance proceeds regardless of the
extent of damages.  The property shall be
deemed substantially damaged or destroyed if it cannot be restored to its
present condition on or before the closing date.

5.  POSSESSION AND CLOSING.   If BUYERS timely perform all
obligations, possession of Property shall be delivered to BUYERS on                                           ,
and any adjustments of rent, insurance, interest and all charges attributable
to the SELLERS’ possession shall be made as of the date of possession.  Closing shall occur after the approval of
title by BUYERS and vacation of the Property by SELLERS, but prior to
possession by BUYERS.  SELLERS agree
to permit BUYERS to inspect the Property within         
hours prior to closing to ensure that the premises are in the condition
required by this Agreement.  If
possession is given on a day other than closing, the parties shall make a
separate agreement with adjustments as of the date of possession.  This transaction shall be considered closed:

  A.  Upon
the delivery of the title transfer documents to BUYERS and receipt of all funds
then due at closing from BUYERS under the Agreement.

  B.  (If “A” is Stricken) Upon the filing of the the
title transfer documents and receipt of all funds due at closing from BUYERS under
the Agreement.

6.  FIXTURES. 
Included with
the Property shall be all fixtures that integrally belong to, are specifically
adapted to or are a part of the real estate, whether attached or detached.  Also included shall be the following:                                                                                                                                                                                                                                                                                                                                                                                                

The
following items shall not be included:  personal
property located in the house and out buildings located on the Property and the
irrigation systems located on the Property                                                                                                              
                                                                                                                                                                                                        

7.  CONDITION OF THE
PROPERTY.  The property as of the date of this Agreement,
including buildings, grounds, an all improvements, will be preserved by the
SELLERS in its present condition until possession, ordinary wear and tear excepted.  SELLERS make no warranties, expressed or
implied, as to the condition of the property.

  A. 
BUYERS acknowledge that they have made a satisfactory inspection the
Property and are purchasing the Property in its existing condition.

  B.  (If “A” is stricken) Within          
days after the acceptance of this Agreement, BUYERS may, at their sole expense,
have the property inspected by a person or persons of their choice to determine
if there are any structural, mechanical, plumbing, electrical, environmental,
or other deficiencies.  Within this same
period, the BUYERS may notify in writing the SELLERS of any deficiency.  The SELLERS shall immediately notify the
BUYERS in writing of what steps, if any, the SELLERS will take to correct any
deficiencies before closing.  The BUYERS
shall then immediately in writing notify the SELLERS that (1) such steps are
acceptable, in which case this Agreement, as so modified, shall be binding upon
all parties; or (2) that such steps are not acceptable, in which case this
Agreement shall be null and void, and any earnest money shall be returned to
BUYERS.

8.  ABSTRACT AND TITLE.   SELLERS, at their expense, shall promptly obtain an abstract of title to
the Property continued through the date of acceptance of this Agreement,                               ,
and deliver it to BUYERS’ attorney for examination.  It shall show marketable title in SELLERS in
conformity with this Agreement, Iowa law, and title standards of the Iowa State
Bar Association.  The SELLERS shall make
every reasonable effort to promptly perfect title.  If closing is delayed due to SELLERS’
inability to provide marketable title, this Agreement shall continue in force
and effect until either party rescinds the Agreement after giving ten days
written notice to the other party.  The
abstract shall become the property of BUYERS when the Purchase Price is paid in
full.  SELLERS shall pay the costs of any
additional abstracting and title work due to any act or omission of SELLERS,
including transfers by or the death of SELLERS or their assignees.  Unless stricken, the abstract shall be
obtained from an abstracter qualified by the Guaranty Division of the Iowa
Housing Finance Authority.

9.  SURVEY. 
If a survey is
required under Iowa Code Chapter 354, or city or county ordinances, SELLERS
shall pay the costs thereof.  BUYERS may,
at BUYERS’ expense prior to closing, have the property surveyed and certified
by a registered land surveyor.                                                                                                                                                                                                                                                                                                                                                                                                                   

If the survey shows an encroachment on the Property or if any
improvements located on the Property encroach on lands of others, the
encroachments shall be treated as a title defect.

10.  ENVIRONMENTAL MATTERS.

  A. 
SELLERS warrant to the best of their knowledge and belief that there are
no abandoned wells, solid waste disposal sites, hazardous wastes or substances,
or underground storage tanks located on the Property, the Property does not
contain levels of radon gas, asbestos, or urea-formaldehyde foam insulation
which require remediation under current government standards, and SELLERS have
done nothing to contaminate the Property with hazardous wastes or substances.  SELLERS warrant that the property is not
subject to any local, state, or federal judicial or administrative action,
investigation or order, as the case may be, regarding wells, solid waste
disposal sites, hazardous wastes or substances, or underground storage
tanks.  SELLERS shall also provide BUYERS
with a properly executed GROUNDWATER HAZARD STATEMENT showing no wells, solid
waste disposal sites, hazardous wastes and underground storage tanks on the
Property unless disclosed here:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

  B.  BUYERS may at their expense, within         
days after the date of acceptance, obtain a report from a qualified engineer or
other person qualified to analyze the existence or nature of any hazardous
materials, substances, conditions or wastes located on the Property.  In the event any hazardous materials,
substances, conditions or wastes are discovered on the Property, BUYERS’
obligation hereunder shall be contingent upon the removal of such materials,
substances, conditions, wastes or other resolution of the matter reasonably
satisfactory to BUYERS.  

However,
in the event SELLERS are required to expend any sum in excess of $                                
to remove any hazardous materials, substances, conditions or wastes, SELLER
shall have the option to cancel this transaction and refund to BUYERS all
earnest money paid and declare this Agreement null and void.  The expense of any inspection shall be paid
by BUYERS.  The expense of any action
necessary to remove or otherwise make safe any hazardous materials, substances,
conditions or waste shall be paid by SELLERS, subject to SELLERS’ right to
cancel this transaction as provided above.

11.  DEED.  Upon payment of the Purchase Price, SELLERS shall convey the Property to
BUYERS by Warranty deed, free and clear of all liens, restrictions, and
encumbrances except as provided in this Agreement.  General warranties of the title shall extend
to the time of delivery of the deed excepting liens and encumbrances suffered
or permitted by BUYERS.

12.  JOINT TENANCY IN PROCEEDS
AND IN REAL ESTATE.  If SELLERS, immediately preceding acceptance
of the offer, hold title to the Property 
in joint tenancy with full right of survivorship, and the joint tenancy
is not later destroyed by operation of law or by acts of the SELLERS, then the
proceeds of this sale, and any continuing or recaptured rights of SELLERS in
the Property, shall belong to SELLERS as joint tenants with full rights of
survivorship and not as tenants in common; and BUYERS in the event of death of
any SELLER, agree to pay any balance of the price due SELLERS under this
contract to the surviving SELLERS and to accept a deed from the surviving
SELLERS consistent with Paragraph 15.

13.  JOINDER BY SELLERS’S SPOUSE.  SELLERS spouse, if not a title holder immediately preceding acceptance,
executes this Agreement only for the purpose of relinquishing all rights of
dower, homestead and distributive share or in compliance with Section 561.13 of
the Code of Iowa and agrees to execute the deed or real estate contract for
this purpose.

14.  STATEMENT AS TO LIENS.  If Buyers intend to assume or take subject to a lien on the Property,
SELLERS shall furnish BUYERS with a written statement prior to closing from the
holder of such lien, showing the correct balance due.

15.  USE OF PURCHASE PRICE.  At
time of settlement, funds of the Purchase Price may be used to pay taxes and
other liens and to acquire outstanding interests, if any, of others.

16.  APPROVAL OF COURT.  If the Property is an asset of an estate, trust or conservatorship, this
Agreement is contingent upon Court approval unless Court approval is not
required under Iowa law and title standards of the Iowa State Bar
Association.  If the sale of the Property
is subject to Court approval, the fiduciary shall promptly submit this
Agreement for such approval.  If this
Agreement is not so approved by                                     
either party may declare this Agreement null and void, and all payments made
hereunder shall be made to BUYERS.

17.  REMEDIES OF PARTIES.

  A.  If
BUYERS fail to timely perform this Agreement, SELLERS may forfeit it as
provided in the Iowa Code (Chapter 656), and all payments made shall be
forfeited; or, at SELLERS option, upon thirty days written notice of intention
to accelerate the payment of the entire balance due and payable.  Thereafter this Agreement may be foreclosed
in equity and the Court may appoint a receiver.

  B.  If SELLERS fail to timely perform this
Agreement, BUYERS have the right to have all payments made returned to them.

  C.  BUYERS and SELLERS are also entitled to
utilize any and all other remedies or actions at law or in equity available to
them, and the prevailing parties shall be entitled to obtain judgment for costs
and attorney fees.

18.  NOTICE.  Any
notice under this Agreement shall be in writing and be deemed served when it is
delivered by personal delivery or mailed by certified mail, addressed to the
parties at the addresses given below.

19.  GENERAL PROVISIONS.  In the performance of each part of this Agreement, time shall be of the
essence.  Failure to promptly assert
rights herein shall not, however, be a waiver of such rights or a waiver of any
existing or subsequent default.  This
Agreement shall apply to and bind the successors in interest of the
parties.  This Agreement shall survive
the closing.  This Agreement contains the
entire agreement of the parties and shall not be amended except by a written
instrument duly signed by SELLERS and BUYERS. 
Paragraph headings are for convenience of reference and shall not limit
or affect the meaning of this Agreement. 
Words and phrases herein shall be construed as in the singular or plural
number, and as masculine, feminine or neuter gender according to the content.

20.  NO REAL ESTATE AGENT OR
BROKER.  Neither party has used the service of a real
estate agent or broker in connection with this transaction.

21.  ADDITIONAL PROVISIONS.  “Other Provisions”

  A.  This Offer and Acceptance is entered into
pursuant to the terms of a certain Option Agreement signed by the parties dated
May         , 2006.  The terms of said Option Agreement are
incorporated herein by this reference. 
In any conflict between the terms of said Option Agreement and this
Offer and Acceptance, the terms of said Option Agreement shall prevail.

22.  ACCEPTANCE.  When
accepted, this Agreement shall become a binding contract.  If not accepted and delivered to BUYERS on or
before the          day of                                             ,
this Agreement shall be null and void and all payments made shall be returned
immediately to BUYERS.  If accepted by
SELLERS at a later date and acceptance is satisfied in writing, then this
contract shall be valid and binding.

 

	
  Accepted

  	
   

  	
   

  	
  Dated

  	
   

  
	
   

  	
   

  	
   

  
	
  SELLERS

  	
   

  	
  BUYERS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
   

  	
  Print Name

  	
  LSCP, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SS#

  	
   

  	
   

  	
  SS#

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
   

  	
  Print Name

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SS#

  	
   

  	
   

  	
  SS#

  	
  xx-xxxxxxx

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
  Address:

  	
  4808 F Avenue

  
	
   

  	
   

  	
  Marcus, Iowa 5103

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telephone:

  	
   

  	
   

  	
  Telephone

  	
  (712) 376-2800

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]