Document:

EXHIBIT 10

EXHIBIT 10.2 

FORM OF SUBSCRIPTION AGREEMENT 

Elderwatch, Inc.

2881 North Pine Island Road, Building 65,

Suite 203, Sunrise FL 33322

Gentlemen: 

1. Pursuant to the terms of the offer made by Elderwatch, Inc. (the "Company"), the undersigned hereby tenders this subscription and applies for the purchase of the number of shares ("Shares") of the Company set forth on the signature page hereto, at a purchase price of US$50,000 per 200,000 shares of common stock of Elderwatch, Inc. ($0.25  per share). 

The Company is offering a minimum of two hundred thousand Shares ($50,000) and a maximum of sight hundred thousand Shares ($200,000) (the "Offering"). 

The subscriber is sending: (1) an executed copy of this Subscription Agreement; and (2) EITHER A CHECK IN US FUNDS made out to "Joseph I. Emas as Escrow Agent"  (the “Escrow Agent”) for the full amount of the purchase price for the Shares for which the undersigned is subscribing to: 

Joseph I. Emas

1224 Washington Avenue 

Miami Beach, Florida 33139 

Reference: (Your Name) for Elderwatch, Inc. 

OR 

The subscriber may WIRE TRANSFER immediately available U.S. funds for the full amount of the purchase price of the Shares for which the undersigned is subscribing plus all wire transfer fees to: 

Wachovia Bank

Surfside, Florida

 Account:  Joseph I. Emas, P.A.

                Attorney-at-Law

Account Number:  2000015545590

Reference: (Your Name) for Elderwatch, Inc. 

The Escrow Agent shall deposit all subscription funds received into a non-interest bearing attorney’s trust account in accordance with the requirements of the Florida Bar.

If the Company does not complete the Minimum Offering within 90 days from the Effective Date, the Escrow Agent shall forthwith return each subscriber’s respective subscription funds.

If the Company completes the Minimum Offering within 90 days from the Effective Date and provides the Escrow Agent with certificates representing the shares of common stock subscribed for by the Subscribers, the Escrow Agent shall forthwith release the subscription funds to the Company

3. The Company has filed, a registration statement on Form SB-2 (the "Registration Statement") or such other form as shall be available registering the common shares and sales may be made pursuant to an effective prospectus, a copy of which has been made available to the investor to be used in accordance with the Plan of Distribution instructions in the prospectus.

4. The undersigned understands that the Company may, in its sole discretion, reject this subscription, in whole or in part, and/or reduce this subscription in any amount and to any extent, whether or not pro rata reductions are made of any other investor's subscription. 

5. Neither this Subscription Agreement nor any of the rights of the undersigned hereunder may be transferred or assigned by the undersigned. 

6. Except as otherwise provided herein, this Subscription Agreement (i) may only be modified by a written instrument executed by the undersigned and the Company; (ii) sets forth the entire agreement of the undersigned and the Company with respect to the subject matter hereof; (iii) shall be governed by the laws of the State of Florida applicable to contracts made and to be wholly performed therein; and (iv) shall inure to the benefit of, and be binding upon the Company and the undersigned and their respective heirs, legal representatives, successors and permitted assigns. 

7 Unless the context otherwise requires, all personal pronouns used in this Subscription Agreement, whether in the masculine, feminine or neuter gender, shall include all other genders. 

8. All notices or other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered personally or mailed by certified or registered mail, return receipt requested, postage prepaid, as follows: if to the undersigned, to the address set forth on the signature page hereto; and if to the Company, to the address listed above or to such other address as the Company or the undersigned shall have designated to the other by like notice. 

SIGNATURE PAGE 

IN WITNESS WHEREOF, the undersigned has executed this Subscription Agreement this ______ day of _________________ 2004. 

 Number of Shares Subscribed for _________________________________ 

	ORGANIZATION SIGNATURE:                 INDIVIDUAL SIGNATURE:

__________________________________      ______________________________________

Print name of Organization                        Signature

By: _______________________________     ______________________________________

      Name:                                       Print Name

      Title:

                                        ______________________________________

                                        Additional Signature of Joint Owner

                                        _______________________________________

                                                  Print Name

(ALLSUBSCRIBERS SHOULD PLEASE PRINT INFORMATION BELOW EXACTLY   

AS YOU WISH IT TO APPEAR IN THE RECORDS OF 

	                                  THE COMPANY)

____________________________________    ______________________________________

Name                                    Social Security Number of Individual

                                        or other Taxpayer I.D. Number

Address:                                Address for notices if different:

____________________________________    ______________________________________

Number and Street                       Number and Street

____________________________________    ______________________________________

  

City State Zip Code City State Zip Code 

Please check the box to indicate form of ownership (if applicable): 

	TENANTS-IN-COMMON    JOINT TENANTS WITH RIGHT OF       COMMUNITY PROPERTY

(Both Parties must   SURVIVORSHIP                      (Both Parties must sign

sign above)          (Both Parties must sign above)    above)

The subscriber is sending: (1) an executed copy of this Subscription Agreement; and (2) EITHER A CHECK IN US FUNDS made out to "Joseph I. Emas as Escrow Agent"  (the “Escrow Agent”) for the full amount of the purchase price for the Shares for which the undersigned is subscribing to: 

Joseph I. Emas

1224 Washington Avenue 

Miami Beach, Florida 33139 

Reference: (Your Name) for Elderwatch, Inc. 

OR 

The subscriber may WIRE TRANSFER immediately available U.S. funds for the full amount of the purchase price of the Shares for which the undersigned is subscribing plus all wire transfer fees to: 

Wachovia Bank

Surfside, Florida

 Account:  Joseph I. Emas, P.A.

                Attorney-at-Law

Account Number:  2000015545590

Reference: (Your Name) for Elderwatch, Inc. 

ACCEPTANCE OF SUBSCRIPTION 

The foregoing subscription is hereby accepted by Elderwatch, Inc. this ____ day of __________________, 2004, for __________________________ Shares. 

ELDERWATCH, INC. 

By: _____________________________ 

Name: 

Title:Exhibit
10.1

 

TRADING SERVICE AGREEMENT

 

THIS AGREEMENT, is made and
entered into this 31st day of December, 2004 by and between Great
Plain Ethanol, LLC a South Dakota limited liability company with its principal
offices located at 27716 462nd Avenue, Chancellor, South Dakota
57015 (hereinafter “Great Plains”), and Alerus Securities Corporation, with its
principal offices located at 2300 Columbia Road South, Grand Forks, North
Dakota 58201 (hereinafter “Alerus”).

 

WITNESSETH:

 

WHEREAS, Great Plains
desires to establish a service to facilitate the trading of capital units among
members and non-members of Great Plains; and

 

WHEREAS, to provide an
orderly trading market for its securities, Great Plains desires that its
members and non-members purchase, sell and transfer their capital units in
Great Plains through an “alternative trading system” (ATS) as defined by Rule
300(a) of Regulation ATS established pursuant to the Securities Exchange Act of
1934 (the “Exchange Act”); and

 

WHEREAS, Alerus is a
broker-dealer registered with the Securities and Exchange Commission (SEC), the
National Association of Securities Dealers (NASD), and the State of South
Dakota, among others, and has established an ATS to trade certain securities;
and

 

WHEREAS, Alerus has offered
to trade the capital units of Great Plains on its ATS (the “Trading Service”)
which Alerus represents will comply with all applicable state and federal
securities laws; and

 

WHEREAS, Great Plains has
agreed to engage the services of Alerus to provide the Trading Service and
Alerus desires to provide such services under the terms and conditions
hereinafter described;

 

NOW, THEREFORE, in
consideration of the mutual covenants contained herein, the parties agree as
follows:

 

1)                                      Appointment and Acceptance. 
Great Plains appoints Alerus as its sole and exclusive agent for the
operation and administration of the Trading Service and Alerus accepts such
appointment.

 

2)                                      Operation of the Trading Service. 
Alerus shall operate the Trading Service in accordance with the terms
and conditions set forth in the Operational Manual attached hereto as Exhibit “A,”
and shall at all times comply with all applicable

 

1

 

requirements for registered
broker-dealers and alternative trading systems under the Exchange Act and state
securities laws.

 

3)                                      Escrow Account. Alerus shall establish an escrow account
(the “Escrow Account”) with a reputable bank (the “Escrow Agent”) where all
funds contributed toward the purchase of Great Plains’ capital units will be
deposited by the buyer of capital units. 
Alerus shall provide Great Plains with all relevant information
describing the Escrow Account so that Great Plains may coordinate and, if
necessary, contract with the Escrow Agent the completion of all transactions in
a timely and efficient manner.

 

4)                                      Transfer Agent.  Great
Plains shall designate a transfer agent (the “Transfer Agent”) for the transfer
of the capital unit certificates and other necessary documents of Great
Plains.   Great Plains shall provide
Alerus and the Escrow Agent with all relevant information required to complete
the transfer of capital units on Great Plains’ books and records, including,
but not limited to, the authorized contact person and the mailing and e-mail
address of the Transfer Agent, so that the Escrow Agent may obtain from the
Transfer Agent all information and authorizations necessary to complete sales
transactions and specifically to inform the Escrow Agent when and to whom
payment is to be made.

 

5)                                      Fees Payable to Alerus.  For
its operation of the Trading Service, Alerus shall be compensated as follows:

 

a)                                      Initial Set-up Fee.  Upon
execution of the parties’ original Trading Service Agreement, Great Plains
shall pay Alerus an initial set-up fee of Five Thousand and No/Dollars
($5,000.00).

 

b)                                     Annual
Maintenance Fees.  During the term of
this Agreement, except for the 2005 year, Great Plains shall pay Alerus, an
annual maintenance fee of Five Thousand and no/100 Dollars ($5,000.00), the
total sum due on or before January 1, 2006.

 

c)                                      Transaction Fee.  The
seller of capital units will be assessed a fee of three percent (3.0%) of the
sale price for each transaction of capital units, the minimum fee per listing
being Two Hundred Fifty and no/100 Dollars ($250.00) and the maximum fee per
listing being Two Thousand Five Hundred and no/100 Dollars ($2,500.00).

 

6)                                      Term of Agreement.  This
Agreement shall become effective on January 1, 2005 and the term shall expire
on December 31, 2006.

 

7)                                      Termination.  Great Plains and Alerus
expressly agree that this Agreement may be terminated by either party (i) 
at the end of the term, with or without cause, upon written notice given to the
other party not less than four months (one trimester)

 

2

 

prior
to the end of such term, or (ii) upon the material breach of this Agreement by
the other party provided that the non-breaching party has given the breaching
party not less than thirty (30) days written notice describing the breach and
its intent to terminate, and such breach is not cured prior to the noticed
termination date.  If, however, the
Trading Service becomes inoperable for an unreasonable period of time, or is
suspended for any period of time by a state or federal securities regulator or
other government agency, Great Plains and Alerus expressly agree that this
Agreement may be terminated at any time upon five (5) days written notice of
termination from Great Plains to Alerus.

 

8)                                      Trading Service Operating Expenses.  All
operating costs and expenses arising out of the operation of the Trading
Service shall be borne by Alerus.  All
services of Alerus’ officers, directors, or all persons employed by Alerus
shall be provided at Alerus’ own expense and not charged to Great Plains.

 

9)                                      Representations of Alerus. 
Alerus represents, warrants, and agrees that:

 

a)             Alerus is a member in good standing
with the NASD.

 

b)                                     Alerus, and its officers, directors, control
persons, and all persons associated with Alerus who will be operating the Trading
Service, have the necessary registrations, licenses and permissions to allow
Alerus and such persons to operate the Trading Service in accordance with all
applicable state and federal securities laws and regulations and the rules of
the NASD.

 

c)                                      Alerus shall maintain its registration with
the SEC as an alternative trading system at all times during the term of this
Agreement.

 

d)                                     Alerus shall comply at all times with all
legal requirements for an alternative trading system, as set forth under the
Exchange Act, at all times during the term of this Agreement.

 

e)                                      Alerus shall comply with all federal and
state securities laws for purposes of maintaining its registration as a
broker-dealer with the SEC, NASD and applicable states.

 

f)                                        Alerus agrees to become registered as a
broker-dealer in any state requested by Great Plains, provided the registration
is mutually agreed to between Alerus and Great Plains and cost effective for
both parties.

 

g)                                     Alerus shall promptly notify Great Plains in
writing of any inquiry by any securities regulator regarding any aspect of the
Trading Service.

 

h)                                     In the event Alerus’ Trading Service becomes
temporarily inoperable, Alerus will make every effort to the best of its
ability to correct the

 

3

 

problem
associated with the Trading Service and make every effort to the best of its
ability to facilitate the trading of capital units among members and
non-members of Great Plains.

 

i)              Alerus shall, in good faith, comply with all
terms and conditions of this Agreement.

 

10)                                Representations of Great Plains. 
Great Plains represents, warrants, and agrees that:

 

a)                                      Great Plains is duly organized, validly
existing and in good standing under the laws of the State of South Dakota:

 

b)                                     All outstanding capital units are validly
issued and fully paid.

 

c)                                      Great Plains shall, in good faith, comply
with the terms and conditions of this Agreement.

 

11)                                Alerus’ Interaction with Service Users. 
Alerus’s interaction with members of Great Plains, other persons and
other entities using the Trading Service (“Service Users”) shall be to provide
a medium by which Great Plains’ members and non-members may sell, purchase and
transfer capital units of Great Plains. 
Alerus, however, shall not engage in any of the following activities
associated with the operation of the Trading Service:

 

a)                                      Alerus shall not directly or indirectly
provide to Service Users investment, tax, accounting or other advice regarding
transactions conducted through the Trading Service unless the Service User is
an actual client of Alerus as evidenced by the execution of a new account form;

 

b)                                     Alerus shall not arrange financing for any
Service Users for the purchase of capital units through the Trading Service
unless the Service User is an actual client of Alerus as evidenced by the
execution of a new account form;

 

c)                                      Alerus
shall not receive, transfer, hold or handle any funds paid by or due to Service
Users as a result of a sale or exchange of capital units through the Trading
Service.

 

12)                                Confidentiality.  The
parties acknowledge that each shall come into possession of information that
comprises valuable trade secrets and other confidential information (“Confidential
Information”) which is exclusively owned by the conveying party.  Both parties expressly recognize that
Confidential Information is being conveyed to them under conditions of
confidentiality, and agree that they shall not disclose Confidential
Information to any third party during the term of the Agreement, and for a
period of two (2) years following the termination or

 

4

 

expiration
of this Agreement.  The parties may,
however, disclose Confidential Information to their employees when it is
necessary to assure compliance with other terms and conditions of this
Agreement, and nothing herein shall prevent either party from complying with
any applicable law, regulation, or court order when required.

 

13)                                Limitation of Liability.  Each
party shall be independently and severally liable for each and every liability,
loss, claim, demand, expense and damage including, without limitation,
reasonable attorney’s fees, which may arise out of the use, administration and
operation of the Trading Service hereunder, resulting from such party’s failure
to exercise the proper degree of care to whom it owes the duty of such care.

 

14)                                Limitation of Responsibilities.  The
parties specifically acknowledge and agree that the responsibilities of Alerus
are set forth solely in this Agreement, Operational Manual and Regulation ATS
and that Alerus is not responsible in any way for enforcing the provisions of
Great Plains’ Capital Units Transfer System. 
In addition, nothing in this Agreement or the Operational Manual shall
be construed to prevent a subscriber (as such term is defined in Regulation
ATS) from trading outside the ATS.

 

15)                                Miscellaneous Provisions.

 

a)                                      Benefit.  This Agreement shall bind the
parties hereto and shall inure to and be binding upon the respective legal
representatives, successors, heirs and assigns.

 

b)                                     Entire Agreement; Waiver.  This
instrument contains the entire agreement of the parties.  It may not be changed orally but only by an
agreement in writing signed by both parties. 
A waiver of any term or provision shall not be construed as a waiver of
any other term or provision or as a waiver of subsequent performance of the
same provision in this Agreement.

 

c)                                      Severability.  The parties agree that if any part, term,
paragraph or provision of this Agreement is in any manner held to be invalid,
illegal, void or in any manner unenforceable, or to be in conflict with any law
of the State of South Dakota, then the validity of the remaining portions or
provisions of this Agreement shall not be affected, and such part, term,
paragraph or provision shall be construed and enforced in a manner designed to
effectuate the intent expressed in this Agreement to the maximum extent
permitted by law.

 

d)                                     Assignment.  Except as otherwise provided
in this Agreement, this Agreement is made for the personal benefit of the
parties hereto, and neither party may assign this Agreement, or any part
thereof, or delegate

 

5

 

any
duty or obligation imposed by this Agreement without the express written
consent of the other party hereto.

 

e)                                      Captions.  The captions and titles
utilized in this Agreement are for convenience of reference only, and shall not
be deemed to define or limit any of the terms, conditions, or provisions of
this Agreement.

 

f)                                        Governing Law; Forum.  This
Agreement and all obligations created hereunder or required to be created
hereby shall be governed by and construed and enforced in accordance with the
laws of the State of South Dakota, and the parties hereby consent that the
State Circuit Court situated in Minnehaha County, South Dakota, shall be the
exclusive jurisdiction and venue of any disputes relating to the Agreement.

 

g)                                     Notices.  Any notice, statement or
demand required or permitted to be given under this Agreement shall be in
writing, sent by first class mail or hand delivered, addressed, as the case may
be to Great Plains or Alerus at their respective addressees set forth above, or
to such other address as Great Plains or Alerus shall designate and, unless
earlier received, shall be deemed to have been received on the date five (5)
days after it shall have been mailed, as aforesaid, in any post office or
branch post office regularly maintained by the United States Government.

 

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

 

	
   

  	
  GREAT PLAINS ETHANOL, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Rick Serie

  	
   

  
	
   

  	
  Its:

  	
  General Manager

  
	
   

  	
   

  
	
   

  	
  ALERUS SECURITIES
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  Dale Weston

  	
   

  
	
   

  	
  Its: 

  	
  Registered
  Representative

  
					

 

6

 

Effective: December 31, 2004

 

EXHIBIT A

 

OPERATIONAL MANUAL

GREAT PLAINS ETHANOL, LLC

 

Pursuant to the Trading Service Agreement, Great
Plains, LLC (formerly, Whetstone Ethanol, LLC) (“Great Plains”) and Alerus
Securities Corporation (“Alerus”), hereby agree to the following rules and
procedures for the trading of capital units, payment for capital units, and
delivery of all necessary agreements for the effective trading of capital
units.

 

I.                                         Trading Periods

 

Sellers may post offers
to sell capital units and purchasers may post offers to purchase capital units
on the Trading Service (the “TS”) during any business day of the first 60 days
of any trimester. Offers to sell will be posted following the submission of a
Listing Agreement, discussed below.  Offers
to sell will be matched with offers to purchase on a daily basis after the
Offer to sell has been posted for 15 days. 
Trades will be completed three times a year on the first day of each
trimester beginning on January 1, May 1, and September 1.  Trades will be coordinated upon final
notification of acceptance from Great Plains’ transfer agent (the “Transfer
Agent”).

 

II.                                     Trading Rules

 

1.                     Non-firm
quotes. All offers to sell and purchase posted to the TS shall be
considered non-firm.

 

2.                     Access to
Offers to Sell. Alerus shall provide, orally or in writing, to persons that
inquire all offers to sell posted to the TS as of the day of the inquiry.
Alerus shall provide such information, either orally or in writing, within a
reasonable period of time following such request.

 

3.                     Access to
Offers to Purchase.  Alerus shall
provide, orally or in writing, to persons who inquire, all offers to purchase
posted to the TS as of the date of the inquiry. 
Alerus shall provide such information, either orally or in writing,
within a reasonable amount of time following such request.

 

If Alerus
receives multiple offers to purchase, which exceed a posted asking price, and
Alerus had not yet been able to contact the eligible seller

 

7

 

to describe
the multiple offers, Alerus shall make reasonable efforts to contact each of
the prospective purchasers, such obligation to contact purchasers terminating
at the end of the next business day. 
Upon contacting each of the prospective purchasers, Alerus shall
disclose to each of the purchasers, the following information:

 

a.                                       There
are multiple bids posted to the TS which are eligible to matching with a seller’s
offer to sell;

 

b.                                      The
bid price and quantity of capital units in the offer to purchase;

 

c.                                       The
ask price and quantity of capital units in the offer to sell; and

 

d.                                      The
prospective purchasers opportunity to submit to Alerus a higher bid price by
the end of the next business day or, in the event Alerus contacts the
prospective purchaser on the 60th day of the trimester, by the end
of the 60th day of the trimester. 
The prospective purchaser who then submits the highest bid price within
the applicable time period shall be first eligible for matching with the offer
to sell.

 

4.                     Increments.
Offers to sell and offers to purchase capital units must be made in whole
units, in increments of at least one capital unit (e.g. 1, 2, 3, etc. capital
units) and a purchase price per capital unit in whole dollars and cents.  No offer to sell or purchase of partial or
fractionalized capital units may be posted to the TS.

 

5.                     Selection
of Offers to Purchase. Offers to purchase may be submitted to the TS for or
against any offers to sell posted to the TS. 
Offers to purchase shall not be eligible for matching and acceptance by
the seller prior to the 15th day after which an offer to sell is
posted to the TS.  If multiple offers to
purchase are submitted between and including the 15th calendar day
of an offer to sell being posted to the TS, the offer to purchase for the
highest bid price as of the 16th calendar day, shall be given the first
opportunity to purchase.

 

6.                     Waiting
Period. An offer to purchase may not be accepted by the seller prior to the
16th calendar day after the offer to sell is posted to the TS.

 

7.                     Modification
of Offers.  An offer to sell may be
modified by the seller at any time, subject however to the restriction that an
offer to purchase cannot be accepted by a seller prior to the 16th
day after the modified offer to sell is posted to the TS.  Said modification shall not alter or extend
the 60-day maximum period the capital units can be posted for sale by the TS.

 

8

 

If Alerus communicates to a seller an offer to
purchase and the offer to purchase is at a bid price that is equal to or in
excess of the seller’s ask price, and if the seller declines to accept the
offer to purchase for the bid price, seller shall either set a new ask price
(non-firm) or request cancellation of the offer to sell.  If the seller sets a new ask price
(non-firm), the seller’s ask price shall not be eligible for acceptance until
the 16th day after which the modified offer to sell is communicated
to Alerus and posted to the TS.

 

8.                     Cancellation
of Offers.   Sellers may cancel an
offer to sell at any time prior to the acceptance of an offer to purchase.  All offers to purchase (bids) may be
cancelled by contacting Alerus by telephone or in writing at any time prior to
an agreement for sale being reached by seller and purchaser (communication of
an offer and acceptance).

 

9.                     Matching order rules. Matching of offers to sell and offers
to purchase shall be governed according to the following principles and order
of priority — Price, Priority, Precedence, and Parity — using the following
methodology.

 

a.               For multiple
sellers, seller who posted the lowest asking price in the offer to sell for
readily available capital units is offered the first opportunity to sell.  For multiple purchasers, a purchaser who
posted the highest bid price in the offer to purchase has first opportunity to
purchase, except in the case of multiple purchasers who post a bid price
exceeding an eligible offer to sell, in which case Section II (3) shall
control.

 

b.              For multiple sellers
at same asking price, seller who posted the offer to sell capital units first
in time has priority.  For multiple
purchasers at same bid price, a purchaser who posted an offer to purchase first
in time has priority.

 

c.               After price and
priority, precedence is given to the seller or purchaser with the largest
order.

 

d.              If neither priority
nor precedence can be established (parity), prevailing seller or purchaser is
selected randomly.

 

10.               Closing date;
Purchase Price. Closing of the sale, at which time the net proceeds will be
forwarded to the seller, shall not take place prior to 45 days after the offer
to sell is posted to the TS.  The
purchase price for each sale shall be the bid price stated in the offer to
purchase that is matched with the offer to sell.

 

9

 

11.               Removal.
Offers to sell and offers to purchase may be posted to and listed on the TS for
a maximum of 120 days.  Any offer to sell
or purchase that has not been matched at the end of the 120-day period shall be
removed from the TS.

 

12.               Eligibility for
future posting. A seller whose offer to sell has not been matched within
120 days and consequently whose offer to sell has been removed from the TS will
not be eligible to post a new or subsequent offer to sell unless and until 60
days have expired from the date of the previous offer to sell’s removal from
the TS. Purchasers will be eligible to repost any offer to purchase immediately
after it is removed.

 

III.                                 Trading, Payment and
Transfer Procedures

 

1.                     Listing
Agreement. To be eligible to sell capital units, the seller and Alerus must
sign a Listing Agreement authorizing Alerus to seek a purchaser for capital
units. The Listing Agreement will specify and include:

 

•          Number
of capital units offered for sale;

•          Price
per capital unit;

•          Expiration
date;

•          Listing
date;

•          Responsibilities
and obligations of seller and Alerus;

•          Obligation
of Alerus to secure 100% of purchase price;

•          Sales
commission rate and minimum.

 

2.                     Placing
offers to purchase. Prospective purchasers who desire to place an offer to
purchase may contact Alerus in person, or by telephone, e-mail, or the
Internet, for capital unit availability and prices. An offer to purchase may be
made at the lowest listed asking price or any other price.

 

3.                     Communication
of offer to purchase to seller. Once an offer to purchase is made that
equals or exceeds the asking price of one or more posted offers for sale, the
eligible offer to purchase is communicated to the seller having the lowest
asking price for readily available capital units in accordance with the
matching order rules as described above. 
Alerus will use its best efforts to contact eligible sellers; however,
if Alerus is unable to make contact with a seller within a reasonable time
according to its best judgment, Alerus will communicate said offer to next
eligible seller.  After communication of
offer to purchase to seller, if offer to purchase is at or above the posted
asking price, seller has option to accept or reject offer to purchase.

 

4.                     Contract
for sale.  Upon verbal agreement for
sale between a purchaser and seller, Alerus will generate and send to purchaser
a Contract for Sale,

 

10

 

plus a
counterpart signature page to the Operating Agreement and, if the contract
involves a Class A Capital Unit, a Corn Delivery Agreement, if applicable.

 

a.               Purchaser shall be
obligated to fully execute and return to Alerus within ten (10) day of the date
of the Contact for Sale, said Contract for Sale, 100% of the accepted purchase
price (check made payable to “Bremer Bank, Escrow Agent”), an executed
Operating Agreement, and, if applicable, an executed Corn Delivery Agreement.

 

b.              Upon receipt of the purchaser’s executed
Contract for Sale and purchase price, Alerus will immediately deposit said
monies into a non-interest bearing escrow account at Bremer Bank, N.A. (“Escrow
Agent”) and forward the Contract for Sale to the seller for signature.

 

c.               Seller shall be obligated to execute and
return to Alerus said Contract for Sale and the seller’s capital unit
certificates (or a satisfactory lost certificate affidavit) within ten (10)
days of the date it is sent by Alerus.

 

5.                     Completion of Sale. 
Upon receipt of the full purchase price and all required documents,
Alerus will forward to the Transfer Agent all Contracts for Sale and other
documents relating to each match of capital units listed for sale, together
with proof of purchaser’s 100% remittance, for issuance of the capital units
certificate to the purchaser.

 

Upon Alerus’ receipt of
notice from the Transfer Agent that the seller’s capital units certificate is
being issued to the purchaser on the effective date, Alerus shall direct the
Escrow Agent to transfer the sale proceeds (purchase price minus commission) to
the seller on the effective date (see below). On or shortly following the
effective date, the Transfer Agent will send the issued certificate to the
purchaser, and new members may also receive additional documentation.  If any liens or restrictions on the capital
units prevent the Transfer Agent from processing the sale, Alerus shall direct
the Escrow Agent to refund the entire amount deposited to the purchaser within
ten (10) business days of receipt of notification of such determination.

 

6.                     Alerus’ commission. Prior to the Escrow Agent’s transfer of
the sale proceeds to the seller, the Escrow Agent shall deduct an amount
representing the sales’ commission and transfer such commission to Alerus.  The commission will be 3% of the purchase
price, with a minimum commission of $250.00 and a maximum commission of
$2,500.00.

 

11

 

7.                     Trade effective date. All sales and transfers shall be
effective upon the first day of each calendar trimester – January 1, May 1,
September 1 – following the trimester in which the sale occurred.

 

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]