Document:

exv10w9

 

Exhibit 10.9

[U.S. Energy]

ENERGY MANAGEMENT AGREEMENT

(Site Development and Operations)

The purpose of this Agreement is to set forth the understanding and agreement between U.S. Energy
Services, Inc. (“U.S. Energy”) and Cardinal Ethanol (“Client”) related to the provision of
energy management services.

PROJECT DESCRIPTION: Client is developing a 100 million gallon per year ethanol
plant (“Plant”) to be located in Eastern Indiana. The Plant will have a peak electric load
of approximately 10 MW and will consume approximately 9,000 MMBtu of natural gas per day.

U.S. ENERGY RESPONSIBILITIES: U.S. Energy will provide consulting and energy management
services for supplies of natural gas and electricity for the Plant. These services will be
provided during the construction of the Plant (“Construction Period”), and after the Construction
Period when the Plant has been placed in service (“Completion Date”). The completion Date shall be
determined when the Plant begins producing ethanol. These services will be provided to Client upon
request:

A. Energy Infrastructure Advisory Services During the Construction Period

	1.	 	Provide an economic comparison of distribution service options. Such options will include
service from area distribution utilities, interstate pipelines and third party contractors.
U.S. Energy will provide preliminary engineering cost estimates, route drawings, and project
timelines related to constructing pipeline facilities.
	 
	 	 	In the event that a direct connect pipeline option is selected, U.S. Energy will submit a
tap request to the pipeline. In addition, U.S. Energy will also attempt to negotiate an
option for Client to minimize interconnect costs through the purchase of firm
transportation to the Plant.
	 
	2.	 	Determine whether firm, interruptible, or a blend of transportation entitlement will provide
the lowest burnertip cost. Factors that will be considered include pipeline credits for the
new interconnect, cost of an alternate fuel system, and availability of specific receipt point
capacity.
	 
	3.	 	Provide advisory services to Client regarding electric pricing and service agreement.

	 	a.	 	Analyze the electric service proposals along with primary, secondary
and generation options and recommend an electric sourcing strategy and plan. The
plan may include a combination of electric supplier agreement and/or installation
of on-site generation.

 

 

	 	b.	 	Negotiate final electric service agreements that meet the pricing and
reliability requirements of Client, including options for third party access to
electric metering.
	 
	 	c.	 	Prepare and implement a regulatory strategy, if required and if an
alternative power supplier is selected. Any attorney fees required for the
specific purpose of obtaining regulatory approval for an alternative power
supplier, if any, will be over and above U.S. Energy’s monthly fee herein, and
must be pre-approved by Client.

	4.	 	Evaluate the proposed electric distribution infrastructure (substation) for reliability,
future growth potential and determination of the division of ownership of facilities between
the utility and the Plant.
	 
	5.	 	Investigate economic development rates, utility grants, equipment rebates and other utility
programs that may be available.

B. On-Going Energy Management Services Following the Completion Period

U.S. Energy will provide the following services as Client’s request:

	1.	 	Provide natural gas supply information to minimize the cost of natural gas purchased. This
will include acquiring multiple supply quotes and reporting to Client the various supply index
and fixed prices. U.S. Energy will not take title to Client gas supplies, but will
communicate supply prices and potential buying strategies.
	 
	2.	 	Negotiate with pipelines, utilities, other shippers, and suppliers to provide transportation,
balancing, and supply agreements that meet Client’s performance criteria at the lowest
possible cost.
	 
	3.	 	Develop and implement a price risk management plan that is consistent with Client’s pricing
objectives and risk profile.
	 
	4.	 	Provide daily nominations to the suppliers, pipeline, and other applicable shippers for
natural gas delivers to the Plant. This will include daily electronic confirmations to Client
of all nominations and actual daily usage. U.S. Energy will utilize customer or utility
supplied telemetering to obtain actual usage data.
	 
	5.	 	Provide a consolidated monthly invoice to Client that reflects all applicable natural gas and
electric energy costs. U.S. Energy will be responsible for reviewing, reconciling and paying
all shipper, supplier and utility invoices.
	 
	6.	 	Provide a monthly usage report of electric energy consumption and costs. Also, where
applicable and available from the utility, obtain monthly interval electric load data and
provide monthly load profile graphs.

 

 

	7.	 	On-going review and renegotiation of electric service costs, as required. This may include:

	 	a.	 	Completing and evaluating annual proposals to identify the most reliable and
economic third party electric energy supply.
	 
	 	b.	 	Identifying new service tariffs or opportunities to renegotiate the service
agreement to provide lower costs.
	 
	 	c.	 	Identifying on-site generation opportunities as market conditions change.
	 
	 	d.	 	Provide a monthly projection of energy (natural gas and electricity) and
annual summaries.

	8.	 	Provide natural gas and electric energy operating budgets for the Plant.
	 
	9.	 	Perform initial sales tax exemption audits for energy consumption costs as required and
allowed by Indiana tax laws.

TERM: The initial term of this Agreement shall commence on January 1, 2006 and
continue until twelve (12) months after the Plant’s Completion Date. The Agreement shall be
month-to-month after the initial term. This Agreement may be terminated by either party effective
after the initial term upon sixty (60) days prior written notice. Client shall remain responsible
for payment and performance associated with any and all transportation, supply, and storage
transactions entered into by U.S. Energy and authorized by Client, prior to termination.

FEES: U.S. Energy’s fee for services described above during the term of this Agreement
shall be $3,500 per month, plus pre-approved travel expenses. Client may defer payment on
the invoiced amounts until financing for the plant has been secured. Deferred invoice amounts
shall not bear interest. Plant financing shall be deemed to be secured at the time Client and its
project lender(s) actually execute and deliver all required documents for closing the loans
necessary to finance the complete construction of the Client. In the event that plant financing is
not secured, this Agreement shall become null and void and both parties will be relieved of
professional and/or financial obligations due the other party. Payment of pre-approved travel
expenses shall not be deferred. If Client experiences significant delays in its project timeline
and it is necessary for U.S. Energy to delay work on Client’s energy management activities, U.S.
Energy will suspend its activities and suspend invoicing Client until U.S. Energy’s activities
resume.

U.S. Energy’s fee with increase 4% per year on the annual anniversary date of the effective date of
this Agreement.

BILLING AND PAYMENT: On the first of the month, U.S. Energy shall invoice Client for
appropriate energy costs from the previous month and for the U.S. Energy

 

 

retained for the current month. Client shall pay U.S. Energy within ten (10) days of receipt of
invoice.

TAXES: Client will be responsible for payment of all taxes including, but not limited to,
all sales, use, excise, BTU, heating value and other taxes associated with the purchase and/or
transport of natural gas or electricity and the provision of services hereunder.

CONFIDENTIALITY: U.S. Energy shall not divulge to any other person or party any
information developed by U.S. Energy hereunder or revealed to U.S. energy pursuant to this
Agreement, unless such information is (a) already in U.S. Energy’s possession and such information
is not known by U.S. Energy to be subject to another Confidentiality Agreement, of (b) is or
becomes generally available to the public other than as a result of an unauthorized disclosure by
U.S. Energy, its officers, employees, directors, agents or its advisors or (c) becomes available to
U.S. Energy on a non-confidential basis from a source which is not known to be prohibited from
disclosing such information to U.S. Energy by legal, contractual or fiduciary obligation to the
supplier, or (d) is required by U.S. Energy to be disclosed by court order, or (e) is permitted by
client. All such information shall be and remain the property of Client unless such information is
subject to another Confidentiality Agreement, and upon the termination of this Agreement, U.S.
Energy shall return all such information upon Client’s request. Notwithstanding anything to the
contrary herein, U.S. Energy shall not disclose any information which is in any way related to this
Agreement U.S. Energy’s services hereunder without first discussing such proposed disclosure with
Client.

NOTICES: Any formal notice, request or demand which a party hereto may desire to give to
the other respecting this Agreement shall be in writing and shall be considered as duly delivered
as of the postmark date when mailed by ordinary, registered or certified mail by said party to the
addresses listed below. Either party may, from time-to-time, identify alternate addresses at which
they may receive notice during the term of this Agreement by providing written notice to the other
party of such alternate addresses.

	 	 	 
	Client:

	 	Cardinal Ethanol
	 

	 	 
	 

	 	Attn: /s/ Troy Prescott, President
	 

	 	 
	 

	 	          P.O. Box 501
	 

	 	 
	 

	 	          2 OMCO Square, Suite 201
	 

	 	          Winchester, IN 47394
	 

	 	 
	 
	 	 
	U.S. Energy:

	 	U.S. Energy Services, Inc.
	          (Payment)

	 	c/o US Bank SDS 12-1449
	 

	 	Account #: 173100561153
	 

	 	P.O. Box 86
	 

	 	Minneapolis, MM 55486
	 
	 	 
	          (Notices):

	 	U.S. Energy Services, Inc.
	 

	 	1000 Superior Blvd, Suite 201
	 

	 	Wayzata, MM 55391

 

 

	 	 	 
	 

	 	Attn: Contract Administration

ASSIGNMENT OR AMENDMENT: The Agreement may not be assigned or amended without the written
consent of U.S. Energy and Client.

APPLICABLE LAW: The Agreement shall be construed in accordance with the laws of the State
of Minnesota.

ENTIRE AGREEMENT: This Agreement constitutes the entire Agreement among the parties
pertaining to the subject matter hereof and supersedes all prior Agreements and understanding
pertaining hereto.

Agreed to and Accepted by:

Cardinal Ethanol

	 	 	 	 	 
	B:

	 	/s/ Troy Prescott
	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name: Troy Prescott	 	 
	(Print)	 	 
	 
	 	 	 	 
	Title: President	 	 
	 
	 	 	 	 
	Date: 1/13/06	 	 
	 
	 	 	 	 
	U.S. Energy Services, Inc.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Gail McMinn 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Name:
	 	Gail McMinn	 	 
	 
	 	 	 	 
	(Print)	 	 
	 
	 	 	 	 
	Title:	 	Vice President	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Date:
	 	1-23-06exv10w10

 

Exhibit 10.10

OPTION TO PURCHASE REAL ESTATE

     This option made and entered by and between Rodgers Farms LLC, 2952 South 1100 West, Dunkirk,
IN 47336, hereinafter referred to as SELLER, and Cardinal Ethanol, LLC, 2 ONTO Square, P.O. Box
501, Winchester, Indiana 47394, hereinafter referred to as BUYER, WITNESSETH:

     SELLER owns the real estate described at Exhibit “A” attached hereto and incorporated herein
by reference.

     SELLER desires to grant BUYER an option to purchase the real estate described at Exhibit “A”.

     For and in consideration of the sum of Five Thousand ($5,000.00) Dollars paid to SELLER by
BUYER, receipt of said sum being acknowledged by SELLER with the execution of this option, SELLER
gives and grants to BUYER the exclusive option, under the following terms and conditions, to
purchase the real estate described at Exhibit “A”, said real estate to be surveyed, together with
the buildings and all improvements thereon, the real estate described at Exhibit “A” as surveyed,
together with the buildings and improvements thereon, hereinafter referred to as PROPERTY.

     1. Term of Option. BUYER shall exercise this option on or before July 1, 2006. BUYER
may extend the time to exercise this option to January 1, 2007, provided on or before July, 1,
2006, BUYER gives to SELLER written notice of BUYER’S desire to extend the time to exercise this
option and pays to BUYER an additional Five Thousand ($5,000.00) Dollars. BUYER may extend the time
to exercise this option to July I, 2007, provided on or before January, 1, 2007, BUYER gives to
SELLER written notice of BUYER’S desire to extend the time to exercise this

 

 

option and pays to BUYER an additional Five Thousand. ($5,000.00) Dollars. BUYER may extend the
time to exercise this option to January 1, 2008, provided on or before July, 1, 2007, BUYER gives
to SELLER written notice of BUYER’S desire to extend the time to exercise this option and pays to
BUYER an additional Five Thousand ($5,000.00) Dollars. BUYER may extend the time to exercise this
option to July 1, 2008, provided on or before January, 1, 2008, BUYER gives to SELLER written
notice of BUYER’S desire to extend the time to exercise this option and pays to BUYER an additional
Five Thousand ($5,000,00) Dollars. If BUYER has not exercised this option on or before July 1,
2006, or on or before the extension date, this option shall terminate, be of no further force and
effect, and SELLER shall be entitled to keep all sums paid under this agreement.

     2. Exercise of Option. This option may be exercised by giving written notice to
SELLER, at SELLER’S address as set forth above, by certified mail, return receipt requested or by
personal service, on or before midnight of July 1, 2006, or on or before midnight of the extension
date and by including with said written option the sum of Twenty-Five Thousand ($25,000.00) Dollars
as earnest money.

     3. Purchase Price. The purchase price for the PROPERTY shall be Seven Thousand Seven
Hundred ($7,700.00) Dollars per surveyed acre less the sum paid for this option and any extension
thereof and the earnest money,

     4. Survey. At any time after the execution of this option and during the option
period or after the exercise of this option, BUYER shall cause an ALTA/ACSM survey of the PROPERTY
by Beals Surveying Corporation, Richmond, IN. The cost of the survey shall initially be paid by the
BUYER. Provided, that if BUYER objects to any material matter disclosed by the survey and SELLER is
not able to cure the defect as provided

 

 

herein and BUYER cancels this agreement because of such material defect, then SELLER shall pay
one-half (1/2) of cost of the survey to BUYER. Provided, further, that if this transaction closes,
SELLER shall pay one-half (1/2) of the cost of the survey by BUYER. being credited with one-half
(1/2) of the cost at the closing. BUYER shall have fourteen (14) days after the delivery of said
survey to object to any material matter disclosed by the Survey. SELLER shall be able to cure any
matter objected to by BUYER on or before fifteen (15) days prior to closing. In the event SELLER is
unable to cure any material matter disclosed by the survey and objected to by BUYER, this option
shall become null and void and all sums paid by BUYER to SELLER under this option, shall be
retained by SELLER.

     5. Deed. Upon payment in full by BUYER to SELLER of the purchase price as herein
stated, SELLER agrees to convey the PROPERTY to BUYER by warranty deed, which warranty deed will
convey the PROPERTY to the BUYER free and clear of any and all liens and encumbrances except
easements and restrictions of record acceptable to BUYER, real estate taxes and assessments, those
liens and encumbrances that may possibly attach to the PROPERTY by reason of the acts of omission
or commission of the BUYER, and those liens and encumbrances as herein set forth and specified.

     6. Property Taxes. SELLER shall pay all installments of property taxes which become
due prior to the Closing. Property taxes and assessments relating to the PROPERTY for the calendar
year of the Closing shall be prorated between SELLER and BUYER as of the Closing date. If the
actual amount of taxes for the calendar year of the Closing is not known at the time of the Closing
date, the proration shall be based on the amount of taxes due and payable with respect to the
PROPERTY for the calendar year

 

 

immediately preceding the calendar year of the closing, and BUYER. shall be credited on the
closing statement at the Closing SELLER’S pro rata portion of those taxes.

     7. Evidence of Title. At any time after the execution of this option and during the
option period or after the exercise of this option and after, the completion of the survey and the
request of BUYER, SELLER shall furnish BUYER a commitment for title insurance to be issued by a
title company acceptable to BUYER certified to a date within thirty (30) days of delivery to BUYER,
showing merchantable title to the PROPERTY in the name of SELLER. The cost of the commitment shall
initially be paid by BUYER. Provided, that if BUYER objects to any material defect and SELLER is
not able to cure the material defect as provided hereafter and BUYER cancels this transaction
because of such material defect, then SELLER shall pay to BUYER the cost of said title commitment.
Provided, further, that if this transaction closes, then SELLER shall pay for the title insurance
by BUYER being credited with such cost at the closing. The cost of updates to the title insurance
commitment shall be paid by BUYER (with no credit) unless the updates are required because of
material defeats noted in the original commitment, in which case, SELLER shall pay for said
updates. BUYER shall have fourteen (14) days after the delivery of said commitment for title
insurance to notify SELLER of the acceptance of title or of any material defects therein. It is
agreed by SELLER and BUYER that the following shall not be considered material defects in title:
easements, covenants and restrictions of record acceptable to BUYER; real estate taxes and
assessments; liens and encumbrances as set forth and mentioned in this agreement; any liens and
encumbrances that may possibly attach to the PROPERTY by reason of the acts of omission or
commission of the BUYER; and those liens and encumbrances that will be

 

 

paid at the time of closing. SELLER shall be able to cure any material defects in title on or
before fifteen (15) days prior to closing. In the event SELLER. is unable to cure said material
title defects, this option shall become null and void and all sums paid by BUYER to SELLER under
this option shall be retained by SELLER.

     On or before thirty (30 days after the closing of this transaction, SELLER. shall deliver to
BUYER a title insurance policy which shall show merchantable title to the PROPERTY in the name of
BUYER and show said real estate to be free and clear of any and all liens and encumbrances except
as set forth above.

     8. Right of Inspection and Investigation. At any time after the execution of this
option and during the option period or after the exercise of this option, BUYER shall have the
right, at BUYER’S expense, to conduct such inspections and investigations of the PROPERTY as BUYER
may desire at BUYER’S absolute discretion. BUYER shall pay to SELLER any damages caused by BUYER or
BUYER’S agents, independent contractors or employees for damages to the PROPERTY as a result of
BUYER’S inspections or investigations. In the event BUYER’S inspections and investigations reveal
that the property is not satisfactory for BUYER’S purposes, such determination to be in BUYER’S
sole and absolute discretion, this option shall become null and void and all sums paid by BUYER to
SELLER under this option shall be retained by SELLER.

     9. Vacation of Public Road. After the exercise of this option, BUYER shall, at
BUYER’S expense, vacate the public road known as 1150 West, Jay County, Indiana, which runs through
the PROPERTY. SELLER shall execute such documents as are necessary and shall assist BUYER to vacate
such public way. In the event that said road is not vacated, this option shall become null and void
and all sums paid by BUYER to

 

 

SELLER under this option shall be retained by SELLER.

     10. Permits to Allow Use of PROPERTY for BUYER’S Intended Purposes. At any time
after the execution of this option, and during the option period, or after the exercise of this
option, BUYER shall, at BUYER’S expense, pursue and obtain from all governmental authorities and
nongovernmental entities, approvals which are necessary to permit the use of the PROPERTY for BUYER
intended purposes. SELLER shall execute such documents as are necessary and shall assist BUYER to
obtain such approvals. In the event BUYER cannot obtain such approvals, this option shall become
null and void and all sums paid by BUYER to SELLER under this option shall be retained by SELLER.
Provided, that such approvals shall allow agricultural use of the PROPERTY or shall be subject to
this transaction closing, it being the intent that the current agricultural use of the PROPERTY
shall not be affected if this transaction does not close.

     11. Lease to SELLER. In the event BUYER obtains title to the real estate, BUYER
shall negotiate a cash rental lease with either SELLER or Gary Rodgers or Dennis Rodgers or any
entity which is owned 100% by either or both of Gary Rodgers or Dennis Rodgers for that part of the
tillable acreage of the PROPERTY not required. by BUYER for BUYER’S intended use. Such lease shall
contain the normal terms and provisions of a cash rental lease and the cash rent shall be One
Hundred ($100.00) Dollars per tillable acre. The term of the lease shall end upon termination by
lessee (SELLER herein) or until the death of both Gary Rodgers and Dennis Rodgers, whichever event
occurs first.

     12. Assignment. This option may not be assigned by BUYER to any individual,

 

 

limited partnership, corporation or other entity unless the consent of the SELLER is first
obtained in writing, however such written consent of the SELLER shall not be unreasonably withheld.

     13. Real Estate Agent. The parties agree that. BUYER has no responsibility for the
payment of any real estate agent or brokerage fees incurred in the sale of the PROPERTY.

     14. Recording. A memorandum of this option may be recorded in the public records of
Jay County, State of Indiana.

     15. Time. Time is of the essence of this option.

     16. Attorney’s Fees. After the exercise of this option by BUYER, in the event that
either party shall fail or refuse to complete the transaction as provided for in this option, the
non-prevailing party shall pay the prevailing party all reasonable expenses incurred by the
prevailing party including, but not limited to, Attorneys fees and Court costs, incurred by the
prevailing party in any litigation, negotiation or transactions relating to, or arising out of, the
enforcement of this option by the prevailing party.

     17. Expenses. SELLER shall pay for the cost of deed preparation; the cost of an
Owner’s Policy of Title Insurance (as provided in paragraph 7 herein); the cost of curing title
defects; and one-half (1/2) the cost of survey (as provided in paragraph 4 herein). BUYER, shall
pay the cost of any inspections of the real estate under paragraph 8, the settlement fee and
one-half (1/2) of the cost of the survey (subject to paragraph 4 herein). Any other costs of this
transaction will be paid by the party incurring the same.

     18. Closing. This transaction shall close at the law office of Robert G. Cook, 116
E. Washington Street, Winchester, IN 47394, or such other place as may be agreed

 

 

upon by the parties, thirty (30) days after the conditions of paragraphs 4, 8, 9, 10, and 11
have been met. Provided, that this transaction shall, in any event, close no later than six (6)
months after the date the option is exercised.

     19. SELLER’S Default. After the exercise of this option by BUYER, in the event that
SELLER shall refuse or fail to complete the transaction as provided for in this option, SELLER
shall pay to BUYER all sums paid to SELLER under this option and this option shall he considered
null and void or, at the option of BUYER, BUYER may pursue such remedies as are available to BUYER
at either law or equity.

     20. BUYER’S Default. After the exercise of this option by BUYER, in the event that
BUYER shall refuse or fail to complete the transaction as provided for in this option, SELLER’S
sole and only remedy shall be to retain all sums paid under this option as liquidated damages and
this option shall be considered null and void.

     21. Severability. If any provision of this option is held invalid by a Court of
competent jurisdiction, it shall be considered deleted from this option, but such invalidity shall
not affect the other provisions that can be given effect without the invalid provisions.

     22. Entire Agreement. This option constitutes the entire agreement between the
parties. This option shall not be amended except by written agreement signed by both parties.

     23. Headings. Headings or titles to said sections or paragraphs of this option are
solely for the convenience of the parties and shall have no effect whatsoever on the interpretation
of the provisions of this agreement.

     24. Law Governing. This option shall be governed by the laws of the State of
Indiana.

 

 

     25. Authority. The undersigned person executing this agreement for and on behalf of
SELLER represents and certifies that he is a Member of SELLER and he has authority to execute this
agreement for and on behalf of SELLER.

     25. Headings. Headings or titles to said sections or paragraphs of this option are
solely for the convenience of the parties and shall have no affect whatsoever on the interpretation
of the provisions of this agreement

     26. Law Governing. This option shall be governed by the laws of the State of
Indiana.

     27. Authority. The undersigned person executing this agree for and on behalf of
SELLER represents and certifies that he is a Member of SELLER and he has authority to execute this
agreement for and on behalf of SELLER.

     28. Authority. The undersigned person executing this agreement for and on behalf of
BUYER represents and certifies that he is the President of BUYER and he has authority to execute
this agreement for and on behalf of BUYER.

     29. Binding on Successors and Assigns. Provisions of this agreement will bind the
successors and assigns of the respective parties.

IN WITNESS WHEREOF, SELLER. has caused this option to be executed this 21st day of
December, 2005 and BUYER has caused this option to be executed this 21st
day of December, 2005.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rodgers Farms LLC	 	 	 	Cardinal Ethanol, LLC
	By:

	 	/s/ Dennis Rodgers

	 	 	 	By:
	 	/s/ Troy A Prescott
	 	 	 	 	 	 
	Printed Name: Dennis Rodgers

Member

          SELLER	 	 	 	 	 	Troy A. Prescott

President

          BUYER	 	 	 	 	 	 

 

 

State of Indiana

County of Jay, SS:

     Personally appeared before me, the undersigned Notary Public in and for Jay County,
State of Indiana, this 21st day of December, 2005, Dennis
Rodgers, personally known to me to be a Member of Rodgers Farm LLC, and after first being duly
sworn upon their oaths, acknowledged the execution of the, above and foregoing instrument for and
on behalf of Rodgers Farm LLC, and stated that the representations contained therein are true.

	 	 	 	 	 
	 

	 	/s/ Marsha J. Medler
 

Notary Public
	 	 
	 

	 	Printed Name: Marsha J. Medler

County of Residence: Jay	 	 

My Commission expires:

10/10/07

State of Indiana

County of Jay, SS:

     Personally appeared before me, the undersigned Notary Public in and for JayCounty,
State of Indiana, this 21stday of December, 2005, Troy A. Prescott,
personally known to me to be President of Cardinal Ethanol, LLC, and after first being duly sworn
upon their oaths, acknowledged the execution of the, above and foregoing instrument for and on
behalf of Cardinal Ethanol, LLC, and stated that the representations contained therein are true.

	 	 	 	 	 
	 

	 	/s/ Marsha J. Medler
 

Notary Public
	 	 
	 

	 	Printed Name: Marsha J. Medler

County of Residence: Jay	 	 

My Commission expires:

10/10/07

This instrument prepared by Robert G, Cook, Attorney, Winchester, IN

 

 

The following described real estate situate in Jay County, State of Indiana, to-wit:

TRACT 1:

The South part of the Southeast Quarter of Section 9, Township 22 North, Range 12 East, lying South
of the right of way of the Pennsylvania Railroad as follows: Beginning at the Southwest comer of
the Southeast Quarter of Section 9, Township 22 North, Range 12 East and running thence North along
the half section line which is the center of the North and South road for a distance of 1638 feet
to a point on the South line of the right of way of the P.C.C. & St. L. RR, (witnessed as follows:
Center of the North and South road and 24 feet 4 inches South at rilat angles to the South rail of
the South and Eastbound tract of the Pennsylvania R.R.); thence East long the south right of way
line 3039 feet to a point on the South section line of Section 9, Township 22 North, Range 12 East,
this South right of way line being marked by concrete markers of the old traction line (witnessed
as follows: 24 feet 4 inches at right angles to the south rail of the South, or East bound tract of
the Pennsylvania Railroad and 91 feet East of a mile post on South side of Pennsylvania right of
way and marked “127“j: and thence West along the South section line, being the center of the East
and West highway a distance of 2569 feet to the place of beginning; but EXCEPTING THEREFROM, a
tract of land approximately 0.172 acres described as follows:

Beginning at the point of intersection of the Southerly line of what was formerly the
Muncie-Portland Traction Company’s right away with the North line of public highway the middle lane
of which is a boundary between Sections 9 and 16 in Township 22 North, Range 12 East, running
thence in a Northwesterly direction on and along said southerly line of right of way, a distance of
230 feet to a point; thence in a Northeasterly direction and at right angles to last line of the
Northerly line of said right of way (Muncie-Portland Traction Company); thence Southeasterly on and
along the said Northerly line or said right of way a distance of 272 feet, more or less, to the
intersection of the said Northerly line of said right of way with the North line of said public
road; thence in a Westerly direction on and along the North line of said public road to the place
of beginning, and being a part of said Section 9, Township 22 North, Range 12 East, and a part of
lands heretofore conveyed by quit-claim deed by the Midland Utilities Company to the Hart Glass
Manufacturing Company.

ALSO EXCEPTING THEREFROM: A part of the South part of the Southeast Quarter of Section 9, Township
22 North, Range 12 East, described as follows: Beginning at the Southwest corner of the Southeast
Quarter of said Section 9, Township and Range aforesaid running thence North on and along the
center of the North and South road, which is the half section line of said section, a distance of
1132 feet and 4 inches to a paint, which point is the place of beginning; thence East 120 feet and
6 inches; thence South 10 feet; thence East 174 feet; thence North. 83 feet; thence West 174 feet;
thence North 15 feet; thence West 120 feet and 6 inches; thence South 88 feet, more or less to the
place of beginning, containing after both of said exceptions, 45 acres, more or less,

EXHIBIT “A”

 

 

TRACT II:

Commencing at the Southeast corner of the Southwest Quarter of Section 9, Township 22 :North, Range
12 East and running thence North on the East line of the Southwest Quarter of Section 9, Township
and Range aforesaid 56 rods 2 feet and 6 inches; thence West parallel with the South line of said
Section 9 to a point 715 feet East of the East side of Broad Street, or to an established Northeast
corner of Albert J. Diener’s land; thence South on the East line of Albert Diener’s established
line 575 feet to a point; thence West 325 feet to a point which is 415 feet east of the west line
of said southwest quarter; thence South to the South line of said section; thence East to the place
of beginning, containing 45 acres, more or less, including all vacated streets and alleys
pertaining thereto (said tract now disannexed from the City of Dunkirk, Indiana) and being a part
of the Southwest Quarter of Section 9, Township 22 North, Range 12 East, Richland Township.

ALSO, Commencing at a point 335 feet East of the Southwest corner of the Southwest Quarter. of
Section 9, Township 22 North, Range 12 East, running thence North. a distance of 150 feet to a
point; thence East a distance of 80 feet to a point; thence South a distance of 150 feet; thence
West a distance of 80 feet to the place of beginning, being a part of the Southwest Quarter of the
Southwest Quarter of Section 9, Township 22 North, Range 12 East; but excepting therefrom the
following described real estate: Commencing at a point 335 feet East of the Southwest corner of
Section 9, Township 22 North, Range 12 East; thence east on the South line of said Section 651
feet; thence running North parallel with the West line of said section 158 feet: thence West
parallel with the South line of said section 300 feet; thence in a Southwesterly direction 371.7
feet to a point 34 feet North of the place of beginning; thence South parallel to the West line of
said Section to the place of beginning, containing after said exception 43.505 acres, more or less.

EXCEPT: Part of the SW ‘A of Section 9, T22N, R12E, Second Principal Meridian, Richland Township,
Jay County, Indiana, more particularly described as follows;

Commencing at a corner stone at the southwest corner of the SW ‘A of Section 9, T22N, R12E; thence
east along the south line of the SW ‘a distance of four hundred fifteen (415.00) feet to an iron
pin; thence N 00° 30’ 17” East a distance of sixty two (62.00) feet to an iron pin; thence N 00°
30’ 17” East a distance of two hundred eighty nine and forty three hundredths (289.43)feet to an
iron pin; thence S 89° 54’ 11” East a distance of three hundred twenty one and four hundredths
(32L04) feet to an iron pin, the point of beginning; thence S 89° 54’ 11” East two hundred fifty
(250) feet to an iron pin; thence S 00° 29’ 44” West a distance of one hundred ninety three and
fifty five hundredths (193.55) feet to an iron pin; thence N 89° 55’ 49” West a distance of two
hundred fifty (250) feet, thence north to the point of beginning. Containing 1.11 acres, more or
less.

 

 

ALSO EXCEPT: Part of the SW 1/4: of Section 9, T22N, R12E, Second Principal Meridian, Richland
Township, Jay County, Indiana, more particularly described as follows:

Commencing at a cornerstone at the southwest corner of the SW V4 of Section 9, T22N, R12E, thence
east along the south line of the SW 14 a distance of four hundred fifteen. (415.00) feet to an iron
pin; thence N 00°.30’ 17” East a distance of sixty-two (62.00) feet to an iron pin to the point of
beginning; thence N 00° 30’ 17” East a distance of two hundred eighty-nine and forty___throe
hundredths (289.43) feet to an iron pin; thence S 89° 54’ 11” East a. distance of three
hundred twenty-one and four hundredths (321.04) feet to an iron pin; thence S 00° 29’ 44” West a
distance of one hundred ninety-three and fifty-five hundredths (193.55) feet; thence N 55’ 49” West
a distance of forty-nine and ninety-eight hundredths (49.98) feet to an iron pin; thence S 70° 41’
28” West; a distance of two hundred eighty-eight and fifteen hundredths (288,15) feet to an iron
pin to the point of beginning. Containing 1,73 acres more or less.

TRACT III:

All that part and parcel of the Southwest Quarter of Section 9, Township 22 North, Range 12 East,
platted and desipated on Plat Book of Richland Civil Township in the Office of the Auditor of Jay
County, Indiana, as Outlots 23 and 24.

ALSO, All that part and parcel of the West half of the Southwest Quarter of said Section 9 in
Township and Range aforesaid, lying and being South of the South line of the right of way of what
was formerly the Muncie arid Portland Traction Company over and across said quarter section, but
excepting therefrom the following described real estate:

Commencing at a point 40 feet East of the Southeast corner of Lot 1433 in the Dunkirk Land
Company’s First Addition to Dunkirk (said lot and so much of said addition and the plat thereof was
heretofore included and embraced within the boundary lines thereof having since been vacated) and
mining thence East 600 feet; thence North at right angles 103 feet to a point in the South line of
the right of way of the Pittsburgh, Cincinnati, Chicago and St. Louis Railway Company; thence
Northwesterly along the South line of said right of way 698-1/3 feet to a point of intersection
thereof with the East line of E. Fourth Street, in Dunkirk; thence South on the East line of said
E. Fourth Street 467 feet to the place of beginning; which said exception is commonly known as the
Gem window Glass Factory lot.

ALSO EXCEPTING THEREFROM, the following described real estate: Commencing at a point in the East
line of E. Fourth Street in Dunkirk aforesaid, where the South line of South “I)” Street in Dunkirk
aforesaid would, if extended due East in the direction as originally laid out and platted,
intersect the same; thence due East on a prolongation of said line of South “D” Street, so
extended, 340 feet; thence North at right angles 325 feet; thence West at right angles 340 feet to
a point in the East line of E. Fourth Street aforesaid; thence South on said East line 325 feet to
the place of beginning, which said exception is commonly known as the Bates Window Glass

 

 

Factory Lot.

ALSO EXCEPTING THEREFROM the following described real estate: A part of the Southwest Quarter of
Section 9, Township 22 North, Range 12 East, bounded as follows:

Commencing at the Northwest corner of the land conveyed to the Bates Window Glass Company and
running thence East 340 feet; thence North 196 feet; thence West 340 feet; thence South 196 feet to
the place of beginning containing 1,55 acres, more or less.

ALSO EXCEPTING THEREFROM the following described real estate: Part of the Southwest Quarter of
Section 9, Township 22 North, Range 12 East, bounded and described as follows: Commencing at the
northeast earner of land heretofore conveyed to Bates Window Glass Company and running thence east
340 feet; thence north 196 feet; thence west 340 feet; thence south 196 feet to the place of
beginning, containing L55 acres.

ALSO EXCEPTING THEREFROM the following described real estate: Part of Outlot 24 commencing at the
Northeast corner of Lot 1350 in Dunkirk Land Company’s First Addition to the City of Dunkirk, and
running thence East 135 feet; thence South 93-1/3 feet; thence West: 135 feet; thence North 93-1/3
feet to the place of beginning.

ALSO EXCEPTING THERFROM the following described real estate: Part of the Southwest Quarter of
Section 9, Township 22 North, Range 12 East, more particularly described as follows: Commencing at
a point 190 feet East and 632.5 feet South of the Northwest corner of the Southwest Quarter of
Section 9, Township 22 North, Range 12 East; thence South on a line parallel with the center line
of Broad Street in City of Dunkirk, 540 feet; thence East at right angles to said center line 163.2
feet; thence North on a line parallel to said center line 540 feet; thence West 163.2 feet to the
place of beginning, containing 2 acres, more or less.

ALSO EXCEPTING THEREFROM the following described real estate:

Commencing at the Northeast corner of Lot 730 of Dunkirk Land Company First Addition to the town
now City of Dunkirk, and now disannexed from said City and being a part of Richland Township;
thence East 20 feet to an iron stake the point of beginning; thence East 206.79 feet parallel to
the South line of vacated “E” Street to un iron stake, thence south 73,16 feet parallel with the
East line of Broad Street to an iron stake; thence West 206.79 feet parallel to the South line of
vacated “E” Street to an iron stake; thence North 73.16 feet parallel with the East line of Broad
Street to the point of beginning, containing 0.35 acres, more or less.

ALSO EXCEPTING THEREFROM the following described real estate:

Commencing at the Northeast. corner of Lot 727 of Dunkirk Land Company First Addition to the town
now City of Dunkirk, now disannexed from said City and being a part of Richland Township; thence
East 20 feet on and along South line of vacated “E” Street to the point of beginning; thence East
206.79 feet on and along South line of

 

 

vacated “E” Street to an iron stake; thence South 137.49 feet parallel with the East line of Broad
Street to an iron stake; thence West 206.79 feet parallel to the South line of vacated “E” Street
to an iron stake; thence North 137.49 feet parallel with the South line of Broad Street to the
point of beginning, containing 0.65 acres, more or less.

TRACT IV:

A part of the Southwest Quarter of Section Nine (9), Township Twenty-two (22) North, Range Twelve
(12) East, more particularly described as follows:

Beginning at a point in the Eats line of East Fourth Street as platted in C.P. Cole’s Addition to
the City of Dunkirk, Indiana, Four hundred twenty and seventy-four hundredths (420.74) feet South
of the intersection of the East line of said East Fourth Street and the Southerly right-of-way of
the P.C.C. & St. L. Railroad, said point being the point of beginning; thence South 89 degrees 39
minutes 00 seconds East a distance of Three hundred thirty-nine and eighty-six hundredths (339.86)
feet to an iron pin; thence South 00 degrees 35 minutes 20 seconds West a distance of Five hundred
sixty-three and twenty-five hundredths (563.25) feet to an iron pin; thence North 89 degrees 24
minutes 10 seconds West a distance of Three hundred thirty-nine and eighty-six hundredths (339.86)
feet to an iron pin; thence North 00 degrees 35 minutes 20 seconds east a distance of Five hundred
sixty-four and seventy-one hundredths (564.71) feet to the point of beginning and containing 4.40
acres, more or less.

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