Document:

ASSIGNMENT
      AND ASSUMPTION AGREEMENT

    

    THIS
      ASSIGNMENT AND ASSUMPTION AGREEMENT
      is made
      and effective the 26th
      of May,
      2006 by and between Gold-Eagle Cooperative (Gold-Eagle) (the Assignor) and
      Prairie Creek Ethanol, LLC (Assignee).

    

    RECITAL:

    

    The
      Assignor, Gold-Eagle is desirous of Assigning and Transferring to the
 Assignee,
      Prairie Creek Ethanol, LLC an Option Agreement for the purchase of  real
      estate In Kossuth County, Iowa. 

    

    NOW,
      THEREFORE, in consideration of the Recitals and the mutual agreement set forth
      in this Agreement, and in further consideration for the Option Agreement

    Assignor
      and Assignee agree as follows:

    

    1.
       Assignment
      of Option Agreement.
      Gold-Eagle hereby sells, assigns, transfers and conveys to Assignee all of
      Gold-Eagle’s right, title and interest in, to and arising out of an Option
      Agreement dated May 26, 2006 to purchase real estate from David Kirsch and
      Darrell Kirsch, a copy of which is marked Exhibit “A” attached hereto and made a
      part hereof.

    

    2. Assumption
      of Option Agreement.
      Assignee
      hereby accepts the Assignment of the Option Agreement to purchase real estate
      from David Kirsch and Darrell Kirsch in Kossuth County, Iowa and hereby assumes
      and agrees to perform all of Gold-Eagle’s obligations under the Option Agreement
      that arise or relate to the date of this Agreement together with the obligations
      that arise subsequent to date of this Agreement and which relate to the period
      subsequent to the date of this Agreement. In consideration for this Assignment
      Assignee further agrees that it shall reimburse Gold-Eagle for all expenses,
      costs, fees, engineering and any other related expenses advanced by Gold-Eagle
      in obtaining and or exercising the Option above described. 

    

    3.
       Legal
      Description.
      The real
      estate which is the subject matter of the Option Agreement to be assigned to
      Assignee is the following described property to wit:

    

    The
      South
      28 acres of the following described property:

     

    The
      Northeast Quarter of the Northeast Quarter (NE 1⁄4 NE 1⁄4) and all of the South Half
      of the Northeast Quarter (S 1⁄2 NE 1⁄4) lying North of the right of way of the
      Chicago, Milwaukee and St. Paul Railway Company in Section Thirty-six (36),
      Township Ninety-six (96) North, Range Twenty-seven (27), West of the
      5th
      P.M.,
      Kossuth County, Iowa.

     

    EXCEPT
      land conveyed to the State of Iowa for Highway purposes by Deeds recorded in
      Book 91 of Land Deeds at page 601, and in Book 91 of Land deeds at page 599,
      and

     

    EXCEPT
      a
      tract of land in the Southeast corner of the Northeast Quarter (NE 1⁄4) beginning
      at the intersection of the West right of way line of Iowa Highway 60 and the
      North right of way line of the Chicago, Milwaukee, St. Paul and Pacific Railway
      Company,

     

    Thence
      North along the highway right of way line 475 feet; 

     

    Thence
      West at right angles 200 feet;

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    Thence
      South parallel to the highway right of way line 498.23 feet to the North line
      of
      the railroad right of way;

     

    Thence
      Northeasterly along the railroad right of way line 201.4 feet to the point
      of
      beginning; and

     

    EXCEPT
      a
      tract of land commencing at the Northwest corner of the Northeast Quarter of
      the
      Northeast Quarter (NE 1⁄4 NE 1⁄4), thence East 414 feet, thence South 447 feet,
      thence West 414 feet, thence North 447 feet to the point of beginning, all
      in
      Section Thirty-six (36), Township Ninety-six (96) North, Range Twenty-seven
      (27), West of the 5th
      P.M.,
      Kossuth County, Iowa.

     

    4. Indemnification:
      Assignee
      shall defend, indemnify and hold Gold-Eagle harmless from and against any claim,
      demand, loss, liability, damage, cost or expense including but not limited
      to
      attorney’s fess, arising in connection with or resulting from any breach of the
      Option Agreement, misrepresentation or non-fulfillment of any agreement on
      the
      part of Assignee under this agreement.

    

    5.  Amendment;
      Waiver.
      No
      amendment, modification, supplement, termination or waiver of or to any
      provision of this Agreement, or consent to any departure therefrom, shall be
      effective unless the same shall be in writing and signed on behalf of the party
      or parties, as applicable. Any amendment modification or supplement of or to
      any
      provision of this Agreement, any waiver of any provision of this Agreement,
      and
      any departure from the terms of any provision of this Agreement shall be
      effective only in the specific instance and for the specific purpose for which
      made or given. 

    

    6. Successor
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successor and assigns. 

    

    7. Counterparts.
      This
      Agreements may be executed in any number of counterparts (including by facsimile
      transmission), each of which shall be deemed an original shall be taken together
      shall be deemed to constitute one and the same Agreement. 

    

    8. Entire
      Agreement.
      This
      Agreement and the Option Agreement constitute the entire agreement between
      the
      parties hereto pertaining to the subject matters hereof and supersede all
      negotiations preliminary agreement and all prior or contemporaneous discussions
      and understandings of the parties hereto with respect to the subject matter
      hereof.

    

    9. Effective
      Date.
      This
      agreement is effective May 26, 2006

     

    In
      witness whereof, the parties have executed this Agreement as of the date first
      above written.

    
      	 	 	 	 
	
              “ASSIGNOR”

            	 	 	
              “ASSIGNEE”

            
	 	 	 	 
	GOLD-EAGLE
              COOPERATIVE	 	 	PRAIRIE CREEK ETHANOL,
              LLC
	 	 	 	 
	 	 	 	 
	By: /s/
              Mark Wigans	 	 	By: /s/
              Clay Hansen
	
              
                

              

               
                

            	 	 	
              
                

              

               
                

            

         

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Exhibit
      “A”

    

    OPTION
      AGREEMENT

    

    Option
      agreement made 26th
      day of
      May, 2006, between David
      Kirsch and Susan Kirsch, husband and wife and Darrell Kirsch and Dawn Kirsch,
      husband and wife,
      of
      Wesley, Iowa (the "Seller"), and Gold-Eagle
      Cooperative,
      of 415
      N Locust Street, PO Box 280, Goldfield, Iowa (the "Buyer").

    

    SECTION
      ONE

    

    GRANT
      OF OPTION

    

    
      	A.  	
              In
                consideration of the mutual promises of the parties, the Seller does
                hereby give and grant to the Buyer the exclusive and irrevocable
                right,
                privilege and option to purchase, under the conditions hereinafter
                provided, all of the Seller's right title and interest in the real
                property which is located in Kossuth County, State of Iowa, and more
                particularly described as follows: 

            

    

    

    The
      South
      28 acres of the following described property:

     

    The
      Northeast Quarter of the Northeast Quarter (NE 1⁄4 NE 1⁄4 ) and all of the South
      Half of the Northeast Quarter (S 1⁄2 NE 1⁄4 ) lying North of the right of way of the
      Chicago, Milwaukee and St. Paul Railway Company in Section Thirty-six (36),
      Township Ninety-six (96) North, Range Twenty-seven (27), West of the
      5th
      P.M.,
      Kossuth County, Iowa, 

     

    EXCEPT
      land conveyed to the State of Iowa for Highway purposes by Deeds recorded in
      Book 91 of Land Deeds at page 601, and in Book 91 of Land Deeds at page 599,
      and

     

    EXCEPT
      a
      tract of land in the Southeast corner of the Northeast Quarter (NE 1⁄4) beginning
      at the intersection of the West right of way line of Iowa Highway 60 and the
      North right of way line of the Chicago, Milwaukee, St. Paul and Pacific Railway
      Company,

     

    Thence
      North along the highway right of way line 475 feet;

     

    Thence
      West at right angles 200 feet;

     

    Thence
      South parallel to the highway right of way line 498.23 feet to the North line
      of
      the railroad right of way; 

     

    Thence
      Northeasterly along the railroad right of way line 201.4 feet to the point
      of
      beginning; and 

     

    EXCEPT
      a
      tract of land commencing at the Northwest corner of the Northeast Quarter of
      the
      Northeast Quarter (NE 1⁄4 NE 1⁄4 ), thence East 414 feet, thence South 447 feet,
      thence West 414 feet, thence North 447 feet to the point of beginning, all
      in
      Section Thirty-six (36), Township Ninety-six (96) North, Range Twenty-seven
      (27), West of the 5th
      P.M.,
      Kossuth County, Iowa. 

    

    (the
      "Property").

    

    B.
      All
      deposits and payments made by the Buyer to the Seller pursuant to this Agreement
      prior to the Closing (either directly or through an escrow agent, if any) shall
      be applied towards the Purchase Price of the Property with the exception of
      $4,200.00 which shall be paid to Seller at the time of execution of this
      Agreement This payment shall be non-refundable and shall not apply to the
      purchase price. The Seller fully agrees and acknowledges that the consideration
      given by the Buyer constitutes legal, adequate, and valuable consideration
      for
      the purposes of this Agreement.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    C.
      The
      purchase price for the Property shall be $5,000 per acre, (the "Purchase Price")
      for acres purchased. Total consideration shall be $140,000.00 for approximately
      28 acres, more or less. If more acres are required, additional consideration
      shall be at the rate of $5,000 per acre. Buyer shall pay a $4,200.00
      non-refundable payment which has been paid by the Buyer, receipt of which is
      acknowledged by the Seller upon execution of this Agreement. The Purchase Price
      shall be paid by the Buyer at closing to be determined by the number of acres
      Buyer shall option. 

    

    Sellers
      at their option may require that Buyer at closing, in lieu of payment of the
      Purchase Price, convey to Sellers the Northwest Quarter of the Northeast Quarter
      (NW1/4 NE1/4) of Section Thirty-six (36), Township Ninety-six (96) North, Range
      Twenty-seven (27), West of the 5th
      P.M.,
      Kossuth County, Iowa. In the event that the tillable acres sold to Buyer
      pursuant to this Agreement is less than the tillable acres in the Northwest
      Quarter of the Northeast Quarter (NW1/4 NE1/4) of Section Thirty-six (36),
      Township Ninety-six (96) North, Range Twenty-seven (27), West of the
      5th
      P.M.,
      Kossuth County, Iowa conveyed to Sellers, Sellers shall pay to Buyer as boot
      $4,000.00 per tillable acre for the additional acres conveyed to Sellers. This
      purchase shall be structured as a simultaneous exchange resulting in deferral
      of
      recognition capital gain tax to the Sellers.

    

    D.
      The
      "Effective Date" shall be the date that the last of the parties to this
      Agreement signs and executes below.

    

    SECTION
      TWO

    

    OPTION
      TERMS

    

    A.
      The
      Seller, in consideration for the payment of the Option Deposit and other
      consideration, does hereby give to the Buyer the exclusive right and option
      to
      purchase the Property described above (the "Option").

    

    B.
      The
      Buyer shall have the right to exercise this Option during a period of time
      beginning at execution of this Agreement on the Effective Date and lasting
      until
      noon on the 10th
      day of
      April, 2008. The Buyer shall exercise this option by giving written notice
      by
      registered mail to the Seller at the address indicated above (the letter must
      be
      delivered to Seller by the time and date indicated above) or by hand delivering
      written notice to the Seller (with the Seller giving the Buyer a written receipt
      indicating the time and date of receipt). The date that the Seller receives
      this
      notice shall be known as the "Date of Commencement."

    

    SECTION
      THREE

    

    PROMISES
      OF PARTIES FOLLOWING EXERCISE OF OPTION

    

    Subject
      to the Buyer exercising this Option, the Seller and the Buyer agree that the
      Seller shall sell and the Buyer shall buy the Property upon the following terms
      and conditions. 

    

    A.
      Representations and Warranties

     

    To
      induce
      the Buyer to enter into this Agreement, the Seller makes the following
      representations, warranties, and covenants:

    

    1.
      Seller
      has good and marketable fee simple title to the Property, free and clear of
      all
      liens, property taxes, encumbrances, and restrictions, except for those
      restrictions appearing of record, taxes for the year of closing, encumbrances
      that will be cleared prior to closing, and encumbrances that will be cleared
      at
      the closing out of the Seller's proceeds from the Purchase Price.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    2.
      There
      are no condemnations or similar proceedings affecting any part of the Property
      and no such proceeding shall be pending on the Closing Date. To the best of
      the
      Seller's knowledge, no such condemnations or other proceeds are threatened
      or
      planned.

    

    3.
      There
      are no toxic wastes on, in or around the Property and the Property has not
      been
      used to manufacture, store, or dispose of environmentally hazardous
      materials

    

    4.
      There
      are no service contracts or agreements relating to the operation, maintenance,
      or security of the property under which the Seller is bound and which will
      survive the closing.

    

    5.
      All
      encroachments, reservations, limitations, road right of ways, or servitudes
      affecting the Property are disclosed in the Public Records.

    

    6.
      The
      Seller is not subject to any commitment, obligation, or agreement, including,
      but not limited to, any right of first refusal or option to purchase, granted
      to
      a third party, which would or could prevent the Seller from completing the
      sale
      of the Property as contemplated by this Agreement.

    

    7.
      Seller
      shall be in sole and exclusive possession of the Property and will deliver
      possession of the Property free of all leases on the Closing Date.

    

    B.
      Conditions Precedent

     

    The
      obligations of the Buyer to close this transaction are subject to the Buyer
      having given Notice to Purchase and subject to the following:

    

    1.
      All
      representations and warranties of the Seller shall be true and correct as of
      the
      Closing Date as if such representations and warranties were being made on such
      date.

    

    2.
      Seller
      shall have performed all covenants to be performed by the Seller as is herein
      provided.

    

    3.
      The
      Property shall be vacant and any tenant relocation costs shall be incurred
      by
      the Seller.

    

    4.
      If any
      of such conditions are not fulfilled on or as of the Closing Date, and
      notwithstanding anything to the contrary in this Agreement, the Buyer shall
      have
      the right to terminate this Agreement and to obtain a full refund of any
      deposits made to the Seller or escrow agent whereupon all parties shall be
      relieved of any further obligations hereunder.

    

    C.
      Clear
      Title

    

    1.
      Within
      90 days of the execution of this Agreement by the Seller, the Seller shall
      deliver to the Buyer any abstracts of title and surveys for the Property that
      are in the Seller's possession or which the Seller might obtain possession
      of by
      reasonable efforts. The Buyer shall return to these items to the Seller if
      the
      closing never occurs and this Contract is terminated. At closing, the Seller
      shall pay for any update of the abstract of title information that might be
      necessary so as to enable the Buyer to obtain clear title for the
      Property.

    

    2.
      Seller
      shall convey a marketable title, subject only to liens, encumbrances,
      exceptions, or qualifications set forth in this Agreement and those which shall
      be discharged by Seller at or before closing. Marketable title shall be
      determined according to applicable title standards adopted by authority of
      the
      Iowa State Bar Association and in accordance with law.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    3.
      If the
      Buyer discovers that the title is defective, the Buyer shall notify the Seller
      in writing specifying the defect(s). If the defect(s) render the title
      unmarketable or uninsurable the Seller will have 120 days from receipt of notice
      within which to remove the defect(s), and if the Seller is unsuccessful in
      removing them within such time, the Buyer shall have the option of either
      accepting the title as it then is, or demanding a refund of all monies paid
      hereunder which shall forthwith be returned to the Buyer and thereupon the
      Buyer
      and the Seller shall be released as to one another of all further obligations
      under this Agreement. All expenses to clear title defects shall be paid by
      the
      Seller.

    

    D.
      Closing

    

    1.
      This
      transaction shall be closed and the deed and other closing papers delivered
      within 90 days following the Date of Commencement of this Agreement (the
      "Closing Date") unless extended by other provisions of this Contract or by
      the
      mutual consent of both parties. The closing date shall be set by mutual
      agreement after Buyer notifies Seller that it will exercise its option. The
      closing shall be held in Goldfield, Wright County, Iowa, at the office of the
      attorney or other closing agent designated by the Buyer.

    

    2.
      At
      closing the Buyer shall pay the cash portion of the Purchase Price by bank
      cashier's check or certified check either of which shall be issued by and drawn
      on a local institution and the Seller shall furnish the deed, an absence of
      lien
      affidavit, non-foreign status affidavit, and any corrective instruments that
      may
      be required in connection with perfecting the title. The Buyer shall furnish
      the
      closing statement.

    

    3.
      The
      Seller shall pay the following closing costs: state documentary stamps, the
      cost
      of recording any corrective instruments and continuation of abstract of title.
      The Buyer shall pay the cost of recording the deed, abstracting and the cost
      for
      recording the purchase money mortgage (if any).

    

    E.
      Restrictions; Easements; Limitations

     

    The
      Buyer
      shall take title subject to: zoning, restrictions, prohibitions, and other
      requirements imposed by governmental authority; restrictions and matters
      appearing on the plat or otherwise common to the subdivision; public utility
      easements of record; taxes for year of closing and subsequent years; assumed
      mortgages and purchase money mortgages, and the following other exceptions
      (if
      any): provided, however, that there exists at closing no violation of the
      foregoing and the same does not prevent the use of the property for
      manufacturing and refining purposes.

    

    F.
      Survey

     

    The
      Buyer, at the Buyer's expense, within 120 days following the Date of Notice
      of
      Exercising its Option, shall have the Property surveyed and certified by a
      registered Iowa surveyor. 

    

    G.
      Liens

     

    The
      Seller shall furnish to the Buyer at time of closing an affidavit attesting
      to
      the absence, unless otherwise provided for herein, of any financing statements,
      claims of lien or potential lienors known to the Seller and further attesting
      that there have been no improvements or repairs to the Property for 90 days
      immediately preceding the date of closing in a form satisfactory to the Buyer.
      If the Property has been improved, or repaired within such time, the Seller
      shall deliver releases or waivers of mechanic's liens, executed by all general
      contractors, subcontractors, suppliers, and materialmen, in addition to the
      Seller's lien affidavit setting forth the names of all such general contractors,
      subcontractors, suppliers, and materialmen and further reciting that in fact
      all
      bills for work to the Property or personalty which could serve as a basis for
      a
      mechanic's lien or a claim for damages have been paid or will be paid at
      closing.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    H.
      Prorations

     

    Taxes
      and
      assessments (if any) shall be prorated through the day to the closing. Cash
      at
      closing shall be increased or decreased as may be required by said prorations.
      All prorations will be made through the day prior to occupancy if occupancy
      occurs before closing. Taxes shall be prorated based on the current year's
      tax
      with due allowance made for maximum allowable discount and homestead or other
      exemptions if allowed for said year. 

    

    I.
      Special Assessment Liens

     

    Certified,
      confirmed, and ratified special assessment liens as of the date of closing
      (and
      not as of Effective Date) are to be paid by the Seller. Pending liens as of
      the
      date of closing shall be assumed by Buyer, provided, however, that if the
      improvement has been substantially completed as of the Effective Date, such
      pending lien shall be considered as certified, confirmed, and ratified and
      the
      Seller shall, at closing, be charged an amount equal to the last estimate by
      the
      public body of assessment for the improvement.

    

    J.
      Attorney's Fees; Costs

     

    In
      connection with any litigation arising out of this Agreement, the prevailing
      party shall be entitled to recover reasonable attorney's fees and
      costs.

    

    K.
      Contract Not Recordable; Persons Bound; Notice

     

    Neither
      this Agreement nor any notice thereof shall be recorded in any public records.
      This Agreement shall bind and inure to the benefit of the parties hereto and
      their successors in interest. Whenever the context permits, singular shall
      include plural and one gender shall include all. Notice given by or to the
      attorney for any party shall be as effective as if given by or to the
      party.

    

    L.
      Occupancy

     

    Seller
      represents that there are no parties in occupancy other than the Seller. Seller
      agrees to deliver occupancy of the property at the time of closing unless
      otherwise stated herein. If occupancy is to be delivered prior to closing,
      Buyer
      assumes all risk of loss to the Property and personalty for the date of
      occupancy, and shall be responsible and liable for maintenance thereof from
      such
      date, and shall be deemed to have accepted the Property and personalty in their
      existing condition as of the time of taking occupancy unless otherwise stated
      herein or in a separate writing.

    

    M.
      Conveyance

     

    Seller
      shall convey title to the Property by statutory warranty, trustee, personal
      representative, or guardian deed, as appropriate to the status of the Seller,
      subject only to matters contained in Section C hereof and those otherwise
      accepted by Buyer.

    

    N.
      Other
      Agreements

     

    a.
       In
      the
      event this option is exercised where growing crops are damaged or removed,
      Buyer
      shall reimburse Seller for the fair and reasonable value of such crops. Fair
      and
      reasonable value shall be determined and calculated by the estimated lost yield
      times the average price at the Wesley elevator for the month of March following
      the destruction of the crop.

     

    b.
       Buyer
      will cooperate and help facilitate for the Seller simultaneously an Internal
      Revenue Service 1031 Tax Free Exchange for other farmland within the area.
      Specifically, Seller would like to exchange for land located on the west side
      of
      Ann Studer’s acreage along Highway 18. If the Seller elects to pursue an IRS
      1031 Tax Free Exchange. 

     

    c.
       Seller
      will provide to Buyer a copy of the existing tile map for the entire Kirsch
      farm
      to be used in designing of the drainage system for the ethanol plant. This
      will
      facilitate Buyer in planning and providing a good outlet for drainage tile
      from
      the Kirsch property. It is agreed by Buyer to provide an adequate drainage
      outlet over and across the land to be acquired by Buyer to drain Buyer’s land
      and to drain the land retained by the Sellers and the land to be acquired by
      the
      Sellers in the simultaneous 1031 Exchange. Buyer shall pay for the cost of
      the
      outlet. Seller shall pay for the cost to connect the drainage lines to drain
      their land to the main drainage outlet to be installed by the Buyer. Sellers
      shall be granted and easement over and across the land to be acquired to Buyer
      for Sellers’ drainage lines. Buyer will maintain and repair such drain lines
      that are located on Buyer’s property. Sellers shall be granted an access
      easement to Buyer’s property to have access from the south edge of Sellers’
property to deliver grain and for ingress and egress from Sellers’ property
      subject to any regulatory requirements or restrictions including but not limited
      to, the Department of Natural Resources environmental requirements.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    d.
       Currently,
      this option contemplates that Buyer will utilize 28 acres for the ethanol plant.
      It is understood between the parties since the ethanol plant is in the initial
      stages, the actual amount of acres are not known at this time. The number of
      actual acres purchased may be more or less depending upon the needs of the
      ethanol plant. 

     

    e.
       Any
      farmland that is not utilized by the ethanol plant or the construction of the
      ethanol plant that remains tillable farmland will be offered to David Kirsch
      and
      Darrel Kirsch for a fair and reasonable cash rent. Fair and reasonable rent
      shall be determined by the average cash rent medium grade land as published
      by
      the Iowa State University Extension for Kossuth County for tillable acres.
      

     

    f.
       No
      prior
      or present agreements or representations shall be binding upon Buyer or Seller
      unless included in this Agreement. No modifications or changes in this Agreement
      shall be valid or binding upon the parties unless in writing and executed by
      the
      party or parties to be bound thereby.

    

    O.
      Typewritten or Handwritten Provisions

     

    Typewritten
      or handwritten provisions inserted herein or attached hereto as addenda shall
      control all printed provisions of this contract in conflict
      therewith.

     

    The
      parties have executed this agreement at their respective addresses the day
      and
      year first above written.

     

    THIS
      IS
      INTENDED TO BE A LEGALLY BINDING CONTRACT. DO NOT SIGN IF THERE ARE BLANK SPACES
      NOT FILLED IN. IF NOT FULLY UNDERSTOOD, SEEK THE ADVICE OF AN ATTORNEY PRIOR
      TO
      SIGNING.

     

    Dated:
      5/26/06

    
      	 	 	 	
            
	BUYER	 	 	SELLER
	 	 	 	 
	GOLD-EAGLE
              COOPERATIVE	 	 	 
	
            	 	 	/s/
              David Kirsch
	By:
              /s/ Mark Wigans	 	 	
              
David
              Kirsch
	
              
                

              

              Its:
                President

            	 	 	
               

            
	 	 	 	
              /s/
                Susan Kirsch

            
	
            	 	 	
              
                

              
Susan
              Kirsch
	 	 	 	 
	 	 	 	 
	 	 	 	/s/ Darrell Kirsch
	 	 	 	
              
Darrell
              Kirsch
	 	 	 	 
	 	 	 	 
	 	 	 	/s/ Dawn Kirsch
	 	 	 	
              
                

              
Dawn Kirsch

    

     

    
      
        	
                STATE
                  OF IOWA

              	
                )

              	 
	 	
                )
                  SS:

              	 
	
                COUNTY
                  OF Wright

              	
                )

              	 

      

    

    

          

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    On
      this
30th
      day of
      May 2006,
      before
      me, the undersigned, a Notary Public in and for said County and State,
      personally appeared Mark Wigans, to me personally known, who, being by me duly
      sworn, did say that he/she is the  he 
      of said
      corporation; that said instrument was signed on behalf of said corporation
      by
      its authority; and that the said ______________ as
      such
      officer acknowledged the execution of said instrument to be the voluntary act
      and deed of said corporation, by it and by him/her voluntarily
      executed.

     

    
      	 	 	 	 
	
              7-31-07

            	 	 	
              /s/
                Janis Douglas

            
	
            	 	 	
              
                
Notary
                Public in and for the
                State

            

    

    

      
        	
                STATE
                  OF IOWA

              	
                )

              	 
	 	
                )
                  SS:

              	 
	
                COUNTY
                  OF Hancock

              	
                )

              	 

      
  

    On
      this
      26th
      day of
      May 2006, before me, the undersigned, a Notary Public in and for said State,
      personally appeared David
      Kirsch and Susan Kirsch, husband and wife, known
      to
      be the identical persons named in and who executed the foregoing instrument
      and
      acknowledged that they executed the same as their voluntary act and deed.

     

    
      
        	
                [SEAL]

              	
                DAVID
                  J. SIEGRIST

                
                  COMMISSION
                    NO. 123331

                  MY
                    COMMISSION EXPIRES

                  May
                    12, 2009

                

              	 	 	
                /s/
                  David J. Siegrist

                
                  

                

                Notary
                  Public in and for Said State

              

      

    

    
       

    

    
      
        	
                STATE
                  OF IOWA

              	
                )

              	 
	 	
                )
                  SS:

              	 
	
                COUNTY
                  OF Hancock

              	
                )

              	 

      

    

    On
      this
      26 day of May 2006, before me, the undersigned, a Notary Public in and for
      said
      State, personally appeared Darrell
      Kirsch and Dawn Kirsch, husband and wife, known
      to
      be the identical persons named in and who executed the foregoing instrument
      and
      acknowledged that they executed the same as their voluntary act and deed.

     

    
      	
              [SEAL]

            	
              
                DAVID
                  J. SIEGRIST

                COMMISSION
                  NO. 123331

                MY
                  COMMISSION EXPIRES

                May
                  12, 2009

              

            	 	 	
              /s/
                David J. Siegrist 
                

              

              Notary
                Public in and for Said State

            

    

     

    
       

      
        
          
          

        

        
          9OPTION
      AGREEMENT

    

    Option
      agreement made 25th 
      day of
      May, 2006, between Rasmussen
      Family, LLC,
      of 160
      Running Spring Drive, Palm Desert, California (the "Seller"), and Gold-Eagle
      Cooperative,
      of 415
      N Locust Street, PO Box 280, Goldfield, Iowa (the "Buyer").

    

    SECTION
      ONE

    

    GRANT
      OF OPTION

     

    
      A.
        In
        consideration of the mutual promises of the parties, the Seller does hereby
        give
        and grant to the Buyer the exclusive and irrevocable right, privilege and
        option
        to purchase, under the conditions hereinafter provided, all of the Seller's
        right title and interest in the real property which is located in Kossuth
        County, State of Iowa, and more particularly described as follows:

    

    

    That
      part
      of the Northwest Quarter (NW 1⁄4) and the Northwest Quarter (NW 1⁄4) of the
      Southwest Quarter (SW 1⁄4) lying North of Railroad Right-of-way and the Northwest
      Quarter (NW 1⁄4) of the Northeast Quarter (NE 1⁄4) all in Section Thirty-six (36),
      Township Ninety-six (96) North, Range Twenty-seven (27) West of the
      5th
      P.M.,
      Kossuth County, Iowa, EXCEPT public highways,

    

    AND

    

    The
      South
      Half of the Northwest Quarter (S 1⁄2 NW 1⁄4) of Section Thirty-five (35), Township
      Ninety-five (95) North, Range Twenty-seven (27), West of the 5th
      P.M.,
      Kossuth County, Iowa AND the North Half of the Northwest Quarter (N 1⁄2 NW 1⁄4) of
      Section Thirty-five (35), Township Ninety-five (95) North, Range Twenty-seven
      (27), West of the 5th
      P.M.,
      Kossuth County, Iowa, EXCEPT a tract described as: commencing 2 rods South
      and 2
      rods East of the Northwest corner of said Section 35, thence South 4 rods,
      thence East 66 rods, thence North 4 rods, thence West 66 rods to point of
      beginning,

    

    (the
      "Property").

     

    
      
        	
              	6-13-06 MSW	
                5/31/06
                  JDR

              

      

    

     

    B.
      All
      deposits and payments made by the Buyer to the Seller pursuant to this Agreement
      prior to the Closing (either directly or through an escrow agent, if any) shall
      be applied towards the Purchase Price of the Property subject to Section
      2D.
      The
      Seller fully agrees and acknowledges that the consideration given by the Buyer
      constitutes legal, adequate, and valuable consideration for the purposes of
      this
      Agreement.

    

    C.
      The
      total purchase price for the Property shall be $1,500,000.00 for 200 acres,
      more
      or less. The consideration for the purchase option shall be $45,000.00 which
      will be paid by the Buyer upon execution of this agreement. The remaining
      consideration of the Purchase Price shall be paid by the Buyer at
      closing.

    

    D.
      The
      "Effective Date" shall be the date that the last of the parties to this
      Agreement signs and executes below.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    SECTION
      TWO

    

    OPTION
      TERMS

     

    A.
      The
      Seller, in consideration for the payment of the Option consideration and other
      consideration, does hereby give to the Buyer the exclusive right and option
      to
      purchase the Property described above (the "Option").

    

    B.
      The
      Option consideration shall be delivered to the Seller. 

    

    C.
      If the
      Buyer exercises this Option, the Option consideration shall be applied towards
      the Purchase Price of the Property.

    

    D.
      The
      Buyer shall have the right to exercise this Option for a period of six months
      from execution of this agreement on the effective date. The Buyer may either
      exercise such option or extend the option for an additional six month period.
      In
      order to extend the Option for an additional six month period, Buyer shall
      pay
      an additional $45,000.00 to Seller. Buyer shall then have the right to exercise
      such Option during this six month period of time or renew and extend the Option
      an additional six months. Again, the Seller shall retain the $45,000.00 for
      each
      six month period for which the Option is not exercised. Buyer can continue
      to
      have additional six month Option periods under the same terms as above as long
      as the Buyer pays $45,000.00 for each additional period. The Buyer shall
      exercise this Option by giving written notice by Registered Mail to the Seller
      at the address indicated above. The date that Seller receives the Notice, shall
      be known as the “Date of Commencement”. 

    

    E.
      It is
      understood and agreed that time is of essence as to the payment of the Purchase
      Price under this provision. If the Buyer does not exercise the terms of this
      Option by the ending date as specified above, then the right and option set
      forth herein shall immediately terminate and all deposits paid shall be kept
      by
      the Seller.

    

    SECTION
      THREE

    

    PROMISES
      OF PARTIES FOLLOWING EXERCISE OF OPTION

    

    Subject
      to the Buyer exercising this Option, the Seller and the Buyer agree that the
      Seller shall sell and the Buyer shall buy the Property upon the following terms
      and conditions. 

    

    A.
      Representations and Warranties

     

    To
      induce
      the Buyer to enter into this Agreement, the Seller makes the following
      representations, warranties, and covenants:

    

    1.
      Seller
      has good and marketable fee simple title to the Property, free and clear of
      all
      liens, property taxes, encumbrances, and restrictions, except for those
      restrictions appearing of record, taxes for the year of closing, encumbrances
      that will be cleared prior to closing, and encumbrances that will be cleared
      at
      the closing out of the Seller's proceeds from the Purchase Price. Seller is
      in
      sole possession of the above described real property.

    

    2.
      There
      are no condemnations or similar proceedings affecting any part of the Property
      and no such proceeding shall be pending on the Closing Date. To the best of
      the
      Seller's knowledge, no such condemnations or other proceeds are threatened
      or
      planned.

    

    3.
      There
      are no toxic wastes on, in or around the Property and the Property has not
      been
      used to manufacture, store, or dispose of environmentally hazardous
      materials

    

    4.
      There
      are no service contracts or agreements relating to the operation, maintenance,
      or security of the property under which the Seller is bound and which will
      survive the closing.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
5.
      All
      encroachments, reservations, limitations, road right of ways, or servitudes
      affecting the Property are disclosed in the Public Records.

    

    6.
      The
      Seller is not subject to any commitment, obligation, or agreement, including,
      but not limited to, any right of first refusal or option to purchase, granted
      to
      a third party, which would or could prevent the Seller from completing the
      sale
      of the Property as contemplated by this Agreement.

    

    7.
      Seller
      shall be in sole and exclusive possession of the Property and will deliver
      possession of the Property free of all leases on the Closing Date.

    

    B.
      Conditions Precedent

     

    The
      obligations of the Buyer to close this transaction are subject to the Buyer
      having given Notice to Purchase and subject to the following:

    

    1.
      All
      representations and warranties of the Seller shall be true and correct as of
      the
      Closing Date as if such representations and warranties were being made on such
      date.

    

    2.
      Seller
      shall have performed all covenants to be performed by the Seller as is herein
      provided.

    

    3.
      The
      Property shall be vacant and any tenant relocation costs shall be incurred
      by
      the Seller. Seller shall be responsible to deliver possession free of any
      claims, leases, management agreements or such other possessory rights.

    

    4.
      If any
      of such conditions are not fulfilled on or as of the Closing Date, and
      notwithstanding anything to the contrary in this Agreement, the Buyer shall
      have
      the right to terminate this Agreement and to obtain a full refund of any
      deposits made to the Seller or escrow agent whereupon all parties shall be
      relieved of any further obligations hereunder.

    

    C.
      Clear
      Title

    

    1.
      Within
      90 days of the execution of this Agreement by the Seller, the Seller,
      at
      their expense, shall obtain an abstract of title to the Real Estate continued
      through the date of acceptance of this offer, and deliver it to Buyers for
      examination. It shall show merchantable title in Sellers in conformity with
      this
      agreement, Iowa law and Title Standards of the Iowa State Bar Association.
      The
      abstract shall become the property of the 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. Seller shall also provide any
      existing surveys for the Property that are in the Seller's possession or which
      the Seller might obtain possession of by reasonable efforts. The Buyer shall
      return to these items to the Seller if the closing never occurs and this
      Contract is terminated. 

    

    2.
      Seller
      shall convey a marketable title, subject only to liens, encumbrances,
      exceptions, or qualifications set forth in this Agreement and those which shall
      be discharged by Seller at or before closing. Marketable title shall be
      determined according to applicable title standards adopted by authority of
      the
      Iowa State Bar Association and in accordance with law.

    

    3.
      If the
      Buyer discovers that the title is defective, the Buyer shall notify the Seller
      in writing specifying the defect(s). If the defect(s) render the title
      unmarketable or uninsurable the Seller will have 120 days from receipt of notice
      within which to remove the defect(s), and if the Seller is unsuccessful in
      removing them within such time, the Buyer shall have the option of either
      accepting the title as it then is, or demanding a refund of all monies paid
      hereunder which shall forthwith be returned to the Buyer and thereupon the
      Buyer
      and the Seller shall be released as to one another of all further obligations
      under this Agreement. All expenses to clear title defects shall be paid by
      the
      Seller.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    D.
      Closing

    

    1.
      The
      closing date shall be set by mutual agreement after Buyer notifies Seller that
      it will exercise its option, which date shall be not less than 60 days and
      no
      later than 90 days after the exercise of the purchase option by the buyer,
      unless extended by other provisions of this Contract or by the mutual consent
      of
      both parties. The closing shall be held in Goldfield, Wright County, Iowa,
      at
      the office of the attorney or other closing agent designated by the
      Buyer.

    

    2.
      At
      closing the Buyer shall pay the cash portion of the Purchase Price by bank
      cashier's check or certified check either of which shall be issued by and drawn
      on a local institution and the Seller shall furnish the deed, an absence of
      lien
      affidavit, non-foreign status affidavit, and any corrective instruments that
      may
      be required in connection with perfecting the title. The Buyer shall furnish
      the
      closing statement.

    

    3.
      The
      Seller shall pay the following closing costs: state documentary stamps and
      surtax charges, the cost of recording any corrective instruments and the title
      update charges necessary for the title insurance. The Buyer shall pay the cost
      of recording the deed, title insurance premiums and the cost for recording
      the
      purchase money mortgage (if any).

    

    E.
      Restrictions; Easements; Limitations

     

    The
      Buyer
      shall take title subject to: zoning, restrictions, prohibitions, and other
      requirements imposed by governmental authority; restrictions and matters
      appearing on the plat or otherwise common to the subdivision; public utility
      easements of record; taxes for year of closing and subsequent years; assumed
      mortgages and purchase money mortgages, and the following other exceptions
      (if
      any): provided, however, that there exists at closing no violation of the
      foregoing and the same does not prevent the use of the property for
      manufacturing and refining purposes.

    

    F.
      Survey

     

    The
      Buyer, at the Buyer's expense, within 120 days following the Date of Notice
      of
      Exercising its Option, may have the Property surveyed and certified by a
      registered Iowa surveyor. If the survey shows any encroachment on the Property
      or that improvements intended to be located on the Property in fact encroach
      on
      setback lines, easements, lands of others, or violate any restrictions,
      Agreement covenants, or applicable governmental regulations, the same shall
      be
      treated as a title defect.

    

    G.
      Liens

     

    The
      Seller shall furnish to the Buyer at time of closing an affidavit attesting
      to
      the absence, unless otherwise provided for herein, of any financing statements,
      claims of lien or potential lienors known to the Seller and further attesting
      that there have been no improvements or repairs to the Property for 90 days
      immediately preceding the date of closing in a form satisfactory to the Buyer.
      If the Property has been improved, or repaired within such time, the Seller
      shall deliver releases or waivers of mechanic's liens, executed by all general
      contractors, subcontractors, suppliers, and materialmen, in addition to the
      Seller's lien affidavit setting forth the names of all such general contractors,
      subcontractors, suppliers, and materialmen and further reciting that in fact
      all
      bills for work to the Property or personalty which could serve as a basis for
      a
      mechanic's lien or a claim for damages have been paid or will be paid at
      closing.

    

    H.
      Prorations

     

    Taxes
      and
      assessments (if any) shall be prorated through the day to the closing. Cash
      at
      closing shall be increased or decreased as may be required by said prorations.
      All prorations will be made through the day prior to occupancy if occupancy
      occurs before closing. Taxes shall be prorated based on the current year's
      tax
      with due allowance made for maximum allowable discount and homestead or other
      exemptions if allowed for said year. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    I.
      Special Assessment Liens

     

    Certified,
      confirmed, and ratified special assessment liens as of the date of closing
      (and
      not as of Effective Date) are to be paid by the Seller. Pending liens as of
      the
      date of closing shall be assumed by Buyer, provided, however, that if the
      improvement has been substantially completed as of the Effective Date, such
      pending lien shall be considered as certified, confirmed, and ratified and
      the
      Seller shall, at closing, be charged an amount equal to the last estimate by
      the
      public body of assessment for the improvement.

    

    J.
      Attorney's Fees; Costs

     

    In
      connection with any litigation arising out of this Agreement, the prevailing
      party shall be entitled to recover reasonable attorney's fees and
      costs.

    

    K.
      Contract Not Recordable; Persons Bound; Notice

     

    Neither
      this Agreement nor any notice thereof shall be recorded in any public records.
      This Agreement shall bind and inure to the benefit of the parties hereto and
      their successors in interest. Whenever the context permits, singular shall
      include plural and one gender shall include all. Notice given by or to the
      attorney for any party shall be as effective as if given by or to the
      party.

    

    L.
      Occupancy

     

    Seller
      represents that there are no parties in occupancy other than the Seller. Seller
      agrees to deliver occupancy of the property at the time of closing unless
      otherwise stated herein. If occupancy is to be delivered prior to closing,
      Buyer
      assumes all risk of loss to the Property and personalty for the date of
      occupancy, and shall be responsible and liable for maintenance thereof from
      such
      date, and shall be deemed to have accepted the Property and personalty in their
      existing condition as of the time of taking occupancy unless otherwise stated
      herein or in a separate writing.

    

    M.
      Conveyance

     

    Seller
      shall convey title to the Property by statutory warranty, trustee, personal
      representative, or guardian deed, as appropriate to the status of the Seller,
      subject only to matters contained in Section C hereof and those otherwise
      accepted by Buyer.

    

    N.
      Other
      Agreements

     

    No
      prior
      or present agreements or representations shall be binding upon Buyer or Seller
      unless included in this Agreement. No modifications or changes in this Agreement
      shall be valid or binding upon the parties unless in writing and executed by
      the
      party or parties to be bound thereby.

    

    O.
      Typewritten or Handwritten Provisions

     

    Typewritten
      or handwritten provisions inserted herein or attached hereto as addenda shall
      control all printed provisions of this contract in conflict
      therewith.

     

    P.
Repayment
      of Crop Expenses

     

    Regardless
      of the closing date and the date upon which Buyer would take possession of
      the
      land, Buyer agrees to reimburse the Seller for any and all crop expenses that
      Seller has incurred prior to the exercising of the Option and the Closing.
      These
      expenses would include but not be limited to all payments made to individuals
      or
      corporations to prepare the ground for planting, the cost of all seed and
      machine hire to plant it, the cost of all chemicals, herbicides and fertilizer
      and the cost to have it applied and the premiums paid for any crop insurance.
      Buyer may reasonably request any invoice for any of these expenses if Buyer
      so
      desires.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      
         

        Q.
          Access
          to
          Land

         

      

    

    Buyer
      would be allowed access to the land for all legitimate purposes once the Option
      Agreement is signed and the $45,000.00 Option payment has been made. The Buyer
      would have the right to conduct all tests that it felt was reasonably necessary.
      However, Buyer agrees to do so with the minimal amount of interference with
      the
      farming operation and any damage to any growing crop. Further, the Buyer would
      be responsible for any damage done to any tile or drainage or other assets
      of
      Seller’s land which occurred during the testing.

    

    
      
        R.
          Indemnification

         

      

    

    Buyer
      will defend, indemnify and hold the Sellers harmless from any and all liability,
      demands and claims including attorneys fees which might arise from employees
      or
      representatives of the Buyer while on the real estate which is subject to this
      Option.

    

    
      
        S.
          Tax
          Free
          Exchange

         

      

    

    Seller
      shall have the right to make this sale part of a tax-free exchange pursuant
      to
      Section 1031 of the Internal Revenue Code. The Buyer will reasonably cooperate
      in effectuating any tax-free exchange arranged by Seller.

    

    The
      parties have executed this agreement at their respective addresses the day
      and
      year first above written.

    

    THIS
      IS
      INTENDED TO BE A LEGALLY BINDING CONTRACT. DO NOT SIGN IF THERE ARE BLANK SPACES
      NOT FILLED IN. IF NOT FULLY UNDERSTOOD, SEEK THE ADVICE OF AN ATTORNEY PRIOR
      TO
      SIGNING.

    

    Dated: 5/31/06.

    
      	 	 	 	 
	
              BUYER

            	 	 	
              SELLER

            
	 	 	 	 
	GOLD-EAGLE COOPERATIVE	 	 	RASMUSSEN FAMILY, LLC
	 	 	 	 
	 	 	 	 
	By: /s/Mark
              Wigans	 	 	By: /s/John
              D.
              Rasmussen
	
              
                

              

              Mark
                Wigans

            	 	 	
              
                

              

              Its:
Asset
                Manager

            
	
              Its:
                President

            	 	 	
              
                

              

              Member

            

    

     

     

    
      
        
          
          

        

        
          6

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