Document:

Exhibit 10

Exhibit 10.1

OPTION TO PURCHASE REAL ESTATE

 

 

1.             For and in

consideration of the sum of One Dollar and no/100 ($1.00), the receipt and

sufficiency of which is acknowledged, the undersigned James H. Jibben and

Judith A. Jibben, (“Sellers”), give and grant to Great Plains Ethanol, LLC, a limited

liability company, with an address of P.O. Box 217, Lennox, South Dakota 57039, its

successors and assigns ( “Grantee”) for a term of twelve (12) months from the

date of this Option, the exclusive and irrevocable right and option to purchase

the following described real estate, or any portion thereof:

 

A parcel of land, approximately 5.45 acres in size, located in the

Northeast Quarter (NE) of Section 26, Township 99 North, Range 52 West of the

Fifth P.M., Turner County, South Dakota, together with all easements, rights,

and appurtenances attached thereto (the “Parcel”) Specifically, the Parcel is

the area north of the 50 foot

right-of-way of the South Dakota Central Railroad extending to a line between

the following points; (1) Approximately 569.8 feet north of the Center Section

Post; (2) Approximately 1,289.4 feet east of the Center Section Post

 

The Parcel is depicted in a drawing contained in the attached Exhibit A

and is incorporated hereto,

 

2.             The purchase price for

the Parcel shall be $2,400.00 per acre, as determined by future survey (not

including, for purposes only of computing the purchase price, any portions of

the Parcel which lie within public highways, rights-of-way, streets, roads and

roadways).

 

3.             Grantee may

exercise this option by sending via certified mail written notice of such

exercise to the following:

 

James and Judith Jibben

46285 277th Street

Chancellor, SD 51015

 

within or prior to twelve (12) months from the date of this option or

prior to the expiration of any extended period as Sellers shall grant. The

written notice of exercise shall identify the number of acres that Grantee or

its assignee desires to purchase.

 

4.             After execution of

this agreement by Sellers, and either before or after the exercise of this

option by Grantee, Grantee may enter upon the Parcel and do and perform all

surveying, zoning, platting, engineering, soil borings and other tests and acts

deemed necessary by Grantee to satisfy Grantee that the Parcel is suitable for

the uses and purposes intended by Grantee. Any such tests and acts shall be at

Grantee’s cost and expense.

 

 

5.             If

Grantee fails to exercise this option at any time herein permitted, Sellers

shall retain all sums paid by Grantee to Sellers for this option and any

extension and this agreement shall terminate with neither party having any

further rights or obligations hereunder.

 

6.             During the option

period, Sellers shall not sell, encumber, or otherwise transfer or dispose of

the Parcel to any individual or entity other than the Grantee.

 

7.             Grantee’s

obligation to purchase the Parcel after the exercise of the option is subject

to the satisfaction, or written waiver by Grantee of the following conditions

precedent:

 

a.             Sellers’ title to

the Parcel must be good, merchantable and marketable fee simple title, free and

clear of any liens or encumbrances.

 

b.             The Parcel must be

finally and unconditionally zoned for Grantee’s intended uses and purposes,

with all necessary classifications, variances, permissions, conditional uses

and exceptions required for Grantee’s intended development, improvement and use

of the Parcel. Sellers shall cooperate fully with Grantee and assist Grantee in

obtaining any necessary rezoning, variances or conditional use permits. Grantee

shall be responsible for paying all costs associated with obtaining such

approvals. If any applications for rezoning, conditional use permits or

variances are filed during the term of this option or any extension, this

option shall be automatically extended to a date which is 30 days after such

rezoning, variance or conditional use permit is finally granted and all time

for appeals or a referendum has expired. If such rezoning, conditional use

permit or variance is denied, this option shall terminate.

 

c.             The Parcel must be

surveyed and platted.

 

8.             Within 15 days

following the receipt of Grantee’s notice of the exercise of the option,

Sellers will deliver to the Grantee for examination a commitment for title

insurance issued by a qualified title insurer. Grantee shall have 15 days

following receipt of the commitment for title insurance to identify and

disclose to Sellers any title defect or encumbrance which is not acceptable to

Grantee. Sellers shall then attempt to resolve any title defect or encumbrance by

the closing date. Grantee or its assignee shall receive on the closing date a

policy of title insurance insuring marketable title in the Grantee as purchaser

of the property. Grantee shall pay the cost of the title insurances.

 

2

 

9.             Sellers shall convey

the Parcel to Grantee in fee simple, free and clear of all liens and

encumbrances, by good and sufficient deed of conveyance, in the usual form of a

warranty deed, subject to all restrictions and easements of record, if any.

Sellers shall pay the real estate transfer fee imposed by SDCL § 43-4-21.

Grantee shall pay the recording fee and all closing fees. Each party shall pay

their respective attorneys’ fees.

 

10.           Closing shall occur

no later than 60 days following the later of (i) the date that Grantee gives

notice of exercise of the option to purchase, (ii) the date that Sellers have

corrected any legal and valid objections to title, (iii) the date that Grantee

has obtained a plat of the Parcel or (iv) the date that Grantee has obtained

all final and non-appealable zoning, variances and conditional use permits

identified in paragraph 7(b).

 

11.           The purchase price

shall be paid in cash at closing.

 

12.           Sellers shall pay

all unpaid real estate taxes and assessments, if any, for the year 2001 due in

2002 and for prior years. The real estate taxes and assessments, if any, which

are assessed in 2002 shall paid by Grantee.

 

13.           Grantee may freely

assign its rights under this option to a third party, without the prior consent

of Sellers.

 

14.           This Option shall be

binding upon and inure to the benefit of the parties and their respective

heirs, personal representatives, successors and assigns.

 

15.           This Option shall be

executed in recordable form, and, if Grantee elects, may be recorded at its

expense with the Turner County, South Dakota, Register of Deeds.

 

16.           This Option shall be

governed by the laws of the State of South Dakota. The parties consent to the

jurisdiction of the courts of the State of South Dakota and agree that any

action arising out of or to enforce this option must be brought and maintained

in the circuit court sitting in Turner County, South Dakota.

 

17.           Grantee will fence

with 4 Barb Fence.

 

Dated this 12th, day of April,  2002.

 

	

   

  	

  GREAT PLAINS ETHANOL, LLC

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

    /s/ Darrin Ihnen

  
	

   

  	

    Its 

  	

   

  	

    President

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  /s/ James H. Jibben

  
	

   

  	

  James H. Jibben

  
	

   

  	

   

  
	

   

  	

  /s/ Judith A. Jibben

  
	

   

  	

  Judith A. Jibben

  

 

3

 

	

  STATE OF SOUTH DAKOTA

  	

  )

  
	

   

  	

  :

  
	

  COUNTY OF TURNER

  	

  )

  

 

On this the 12th day of April,  2002, before me,

the undersigned officer, personally appeared Darrin Ihnen  known to me to

be the President of Great Plains Ethanol, LLC, a limited liability company,

that is described in and that executed the within instrument and acknowledged

to me that such corporation executed the same.

 

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

 

	

   

  	

  /s/ Danelle Luden

  
	

   

  	

  Notary Public - South Dakota

  

 

My Commission Expires: November 7, 2002

 

	

  STATE OF SOUTH DAKOTA

  	

  )

  
	

   

  	

  :SS

  
	

  COUNTY OF TURNER

  	

  )

  

 

On this the 12th day of April, 2002, before me personally

appeared James H. Jibben and Judith A. Jibben, known to me to be the persons

who are described in,

and who executed the within instrument and acknowledged to me that they

executed the same.

 

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

 

	

   

  	

  /s/ Danelle Luden

  
	

   

  	

  Notary Public - South Dakota

  

 

My Commission Expires: November 7, 2002

 

4

 

EXHIBIT A

 

[DIAGRAM OF

OPTIONED PARCEL]

 

5Exhibit 10

Exhibit 10.2

OPTION TO PURCHASE REAL ESTATE

 

1.             For and in consideration of the sum of One and no/100

Dollars ($1.00) , the receipt and sufficiency of which is

acknowledged, the undersigned Wayne M. Kock and Berdine G. Kock, (“Sellers”), give and grant

to Great Plains Ethanol, LLC, a South Dakota limited liability company, with an

address of P.O. Box 217, Lennox, South Dakota 57039, its successors and assigns (“Grantee”) for a term of

twelve (12) months from the date of this Option, the exclusive and irrevocable

right and option to purchase the following described real estate, or any

portion thereof:

 

A parcel of land,

approximately 9.9 acres in size, located in the Southeast Quarter (SE1⁄4) of

Section 25, Township 99 North, Range 52 West of the 5th  P.M., Turner

County, South Dakota, together with all easements, rights and appurtenances

attached thereto (the “Parcel”). Specifically, the Parcel is the area north of

the 50  foot right-of-way of the

South Dakota Central Railroad which intersects the quarter.

 

The Parcel is depicted in a drawing contained

in the attached Exhibit A and is incorporated hereto.

 

2.             The purchase price for the Parcel shall be Two Thousand

Four Hundred and no/100 Dollars ($2,400.00) per acre, as determined by future

survey (not including, for purposes only of computing the purchase price, any

portions of the Parcel which lie within public highways, rights-of-way,

streets, roads and roadways).

 

3.             The Grantee may exercise this option by sending via

certified mail written notice of such exercise to the following:

 

Wayne and Berdine Kock

27781 463rd

Avenue

Lennox, SD 57039

 

within or prior to twelve (12) months from

the date of this option or prior to the expiration of any extended period as

Seller shall grant.

 

4.             After execution of this agreement by the Sellers, and

either before or after the exercise of this option by the Grantee, the Grantee

may enter upon the Parcel and do and perform all surveying, platting, zoning,

engineering, soil borings and other tests and acts deemed necessary by Grantee to satisfy

Grantee that the Parcel is suitable for the uses and purposes intended by the

Grantee. Any such tests and acts shall be at the Grantee’s cost and expense.

 

5.             If Grantee fails to exercise this option at any time

herein permitted, Sellers shall retain all sums paid by Grantee to Sellers for

this option and any extension and

this agreement shall terminate with neither party having any further rights or

obligations hereunder.

 

 

6.             During the option period, Sellers shall not sell,

encumber, or otherwise transfer or dispose of the Parcel to any individual or

entity other than the Grantee.

 

7.             Grantee’s obligation to purchase the Parcel after the

exercise of the option is subject to the satisfaction, or written waiver by

Grantee of the following conditions precedent:

 

a.             Sellers’ title to the Parcel must

be good, merchantable and marketable fee simple title, free and clear of any

liens or encumbrances.

 

b.             The Parcel must be finally and

unconditionally zoned for Grantee’s intended uses and purposes, with all

necessary classifications, variances, permissions, conditional uses and

exceptions required for Grantee’s intended development, improvement and use of

the Parcel. Sellers shall cooperate fully with Grantee and assist Grantee in

obtaining any necessary rezoning, variances or conditional use permits. Grantee

shall be responsible for paying all costs associated with obtaining such

approvals. If any applications for rezoning, conditional use permits or

variances are filed during the term of this option or any

extension, this option shall be automatically extended to a date which is 30

days after such rezoning, variance or conditional use permit is finally granted

and all time for appeals or a referendum has expired. If such rezoning,

conditional use permit or variance is denied, this option shall terminate.

 

c.             The Parcel must be surveyed and

platted.

 

8.               Within 15 days following the receipt of

Grantee’s notice of the exercise of the option, Sellers will deliver to the

Grantee for examination a commitment for title insurance issued by a qualified

title insurer. Grantee shall have 15 days following receipt of the commitment

for title insurance to identify and disclose to Sellers any title defect or

encumbrance which is not acceptable to Grantee, Sellers shall then attempt to

resolve any title defect or encumbrance by the closing date. Grantee or its

assignee shall receive on the closing date a policy of title insurance insuring

marketable title in the Grantee as purchaser of the property. Grantee and Sellers

shall each pay one-half (1⁄2) of the cost of the title insurance and one-half (1⁄2)

of the closing costs.

 

9.             Sellers shall convey the Parcel to Grantee in fee

simple, free and clear of all liens and

encumbrances, by good and sufficient deed of conveyance, in the usual form of a

warranty deed, subject to all restrictions and easements of record, if any.

Sellers shall pay the real estate transfer fee imposed by SDCL § 43-4-21.

Grantee shall pay the recording fee and all closing fees. Each party shall pay their

respective attorneys’ fees.

 

10.           Closing shall occur no later than 60 days following

the later of (i) the date that Grantee gives notice of exercise of the option

to purchase, (ii) the date that Sellers have corrected any legal and valid

objections to title, (iii) the date that Grantee has obtained a plat of the real estate or (iv)

the date that Grantee has obtained all final and non-appealable zoning,

variances or conditional use permits identified in paragraph 7(b).

 

11.           The purchase price shall be paid in cash at closing.

 

2

 

12.           Seller shall pay all unpaid real estate taxes and

assessments, if any, for the year 2001 due in 2002 and for prior years. The

real estate taxes and assessments, if any, which are assessed in 2002 shall be paid by Grantee.

 

13.           Grantee may freely assign its rights under this option to

a third party, without the prior consent of Sellers.

 

14.           Sellers retain the right until December 31, 2002, to

harvest hay from portions of the Parcel not occupied by Grantee.

 

15.           This Option shall be binding upon and inure to the benefit

of the parties and their respective heirs, personal representatives, successors

and assigns.

 

16.           This Option shall be executed in recordable form, and, if

Grantee elects, may be recorded at its expense with the Turner County, South

Dakota, Register of Deeds.

 

17.           This Option shall be governed by the laws of the State of

South Dakota. The parties consent to the jurisdiction of the courts of the

State of South Dakota and agree that any action arising out of or to enforce

this option must be brought and maintained in the circuit court sitting in

Turner County, South Dakota.

 

Dated this 30th day of April, 2002.

 

	

   

  	

  GREAT PLAINS ETHANOL, LLC

  
	

   

  	

  By

  	

       /s/ Darrin Ihnen

  	

   

  	

   

  
	

   

  	

  Its 

  	

     President

  	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  /s/ Wayne M. Kock

  	

   

  	

   

  
	

   

  	

  Wayne M. Kock

  
	

   

  	

   

  
	

   

  	

  /s/ Berdine G. Kock

  	

   

  	

   

  
	

   

  	

  Berdine G. Kock

  
						

 

3

 

 

	

  STATE OF SOUTH DAKOTA

  	

  )

  
	

   

  	

  :SS

  
	

  COUNTY OF TURNER

  	

  )

  

 

On this the 7th day of May, 2002, before

me, the undersigned officer, personally appeared Darrin Ihnen, known to me to

be the President  of Great Plains Ethanol, LLC, a limited

liability company, that is described in and that executed the within instrument

and acknowledged to me that such corporation executed the same.

 

IN WITNESS WHEREOF, I hereunto set my hand

and official seal.

 

	

   

  	

  /s/ Calvin Hubregtse

  	

   

  	

   

  
	

   

  	

  Notary Public - South Dakota

  

 

My Commission Expires: March 6, 2003

 

	

  STATE OF SOUTH DAKOTA

  	

  )

  
	

   

  	

  :SS

  
	

  COUNTY OF TURNER

  	

  )

  

 

On this the 30th day of April, 2002, before me

personally appeared Wayne M. Kock and Berdine G. Kock, known to me to be the

persons who are described in,

and who executed the within instrument and acknowledged to me that they

executed the same.

 

IN WITNESS WHEREOF, I hereunto set my hand

and official seal.

 

 

	

   

  	

  /s/ Gary B. Ward

  	

   

  	

   

  
	

   

  	

  Notary Public - South Dakota

  

 

My Commission Expires: June 8, 2007

 

4

 

EXHIBIT

A

 

[DIAGRAM OF OPTIONED

PARCEL]

 

5

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