Document:

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                                                                    Exhibit 10.5

[US Energy Services, Inc. Logo]

                              Minneapolis Office       Kansas City Office
                              1000 Superior Blvd.      9200 Indian Creek Parkway
                              Wayzata, MN 55391-1810   Overland Park, KS 66210
                              Office 952-745-4300      Office 913-754-3050
                              Fax 952-473-1224         Fax 913-754-3060

October 11, 2004

Tom Lynch
President
Siouxland Ethanol, LLC.
1221 Monona Blvd.
Jackson, NE 68743

Re: Agency Authorization Agreement

Dear Mr. Lynch:

Siouxland Ethanol, LLC. (Siouxland Ethanol) desires to engage the services of
U.S. Energy Services, Inc. (U.S. Energy) to manage Siouxland Ethanol's energy
supplies for its facilities.

Siouxland Ethanol and U.S. Energy agree on the following terms and conditions:

     1.   APPOINTMENT OF U.S. ENERGY AS SIOUXLAND ETHANOL'S AGENT. Siouxland
          Ethanol agrees to appoint U.S. Energy as its agent, for purposes of
          managing Siouxland Ethanol's energy supplies for its facilities
          referred to above. U.S. Energy accepts its appointment as Siouxland
          Ethanol's agent for these purposes.

     2.   LIMITATIONS ON THE AUTHORITY OF U.S. ENERGY. U.S. Energy has the
          authority to deal with third parties on behalf of Siouxland Ethanol,
          in connection with energy related matters, in its capacity as
          Siouxland Ethanol's agent.

     3.   COMMUNICATION AND INFORMATION SHARING. U.S. Energy shall keep
          Siouxland Ethanol fully informed on a regular basis with regard to
          U.S. Energy's activities as the manager of Siouxland Ethanol's energy
          supplies. At the request of Siouxland Ethanol, U.S. Energy shall
          immediately provide Siouxland Ethanol with any and all or other
          information related to U.S. Energy's activities as the manager of
          Siouxland Ethanol's energy supplies.

     4.   TERM OF THE AGREEMENT. This Agreement shall begin upon execution of
          this Agreement. Either party may terminate this Agreement for any
          reason, without recourse to the other party, by giving a thirty (30)
          day prior written notice to the other party.

     5.   SERVICES. U.S. Energy shall perform the following services for
          Siouxland Ethanol:

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                                                      U.S. Energy Initials______

                                                Siouxland Ethanol Initials______

          (a)  Solicit bits for, negotiate, execute and administer energy supply
               contracts. Administration of said contracts shall include:

               -    Placing daily and monthly nominations

               -    Reviewing invoices for accuracy, approving for payment, and
                    making payment

               -    Providing timely notices

          (b)  Negotiate, execute and administer interstate transportation
               contracts. Administration of said contracts shall include:

               -    Providing daily and monthly nominations

               -    Receiving curtailment notifications

               -    Managing daily and monthly imbalances

               -    Requesting and negotiating pipeline taps

               -    Reviewing invoices for accuracy, approving for payment, and
                    making payment

               -    Providing timely notices

          (c)  Negotiate, execute and administer LDC transportation contracts.
               Administration of said contracts shall include:

               -    Providing daily and monthly nominations

               -    Receiving curtailment notifications

               -    Managing daily and monthly imbalances

               -    Reviewing invoices for accuracy, approving for payment, and
                    making payment

               -    Negotiating and resolving all discrepancies including
                    imbalances

               -    Providing timely notices

          (d)  Perform other related services requested by Siouxland Ethanol.

     6.   CONFIDENTIALITY.

          (a)  NONDISCLOSURE: U.S. Energy shall not divulge to any other person
               or party any information developed by U.S. Energy hereunder or
               revealed to U.S. Energy pursuant to this Agreement, unless such
               information is (a) already in U.S. Energy's possession if such
               information is not known by U.S. Energy to be subject to another
               Confidentiality Agreement, or (b) is or becomes generally
               available to the public other than as a result of an unauthorized
               disclosure by U.S. Energy, its officers, employees, directors,
               agents or its advisors, or (c) becomes available to U.S. Energy
               on a non-confidential basis from a source which is not known to
               be prohibited from disclosing such information to U.S. Energy by
               legal, contractual or fiduciary obligation to the supplier, or
               (d) is required by U.S. Energy to be disclosed by court order, or
               (e) is permitted by Siouxland Ethanol. All such information shall
               be and remain the property of Siouxland Ethanol unless such
               information is subject to another Confidentiality Agreement,

                                      -2-

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                                                      U.S. Energy Initials______

                                                Siouxland Ethanol Initials______

               and upon the termination of this Agreement, U.S. Energy shall
               return all such information upon Siouxland Ethanol's request.

          (b)  PROTECTION OF INFORMATION ABOUT SIOUXLAND ETHANOL
               U.S. Energy agrees to inform its employees who work with
               Siouxland Ethanol of the requirements of this Section 6. U.S.
               Energy also agrees to protect information about Siouxland Ethanol
               with the same degree of diligence that U.S. Energy uses to
               protect its own confidential information.

     7.   INDEMNIFICATION. U.S. Energy agrees to indemnify Siouxland Ethanol for
          and against all liabilities, losses, damages, penalties, actions,
          judgments, costs, expenses or disbursements of any kind or nature that
          may be imposed on, incurred by, or asserted against Siouxland Ethanol,
          in any way relating to or arising out of Siouxland Ethanol's
          execution, delivery or performance of this agreement or the
          consummation of the transactions contemplated hereby to the extent
          that such liabilities, losses, etc. arise from actions of U.S. Energy
          exceeding the scope of the agency provided in this agreement.

If the above meets with your understanding of our agreement, please execute both
of the originals in the space below and return both signed originals to U.S.
Energy. U.S. Energy will execute both originals and return one fully signed
original to Siouxland Ethanol and keep one fully signed original for U.S.
Energy's files.

U.S. ENERGY SERVICES, INC.                SIOUXLAND ETHANOL, LLC

BY: /s/ Gail McMinn              (Sign)   BY: /s/ Tom Lynch               (Sign)
    -----------------------------------       ----------------------------------
NAME: Gail McMinn               (Print)   NAME: Tom Lynch                (Print)
TITLE: Vice President                     TITLE: President and Chairman

DATE: 10-20-04                            DATE: 10-13-04

ACCEPTED AND DATED TO THIS ________ DATE OF ____________________, 2004

                                       -3-

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[US Energy Services, Inc. Logo]

                              Minneapolis Office       Kansas City Office
                              1000 Superior Blvd.      9200 Indian Creek Parkway
                              Wayzata, MN 55391-1810   Overland Park, KS 66210
                              Office 952-745-4300      Office 913-754-3050
                              Fax 952-473-1224         Fax 913-754-3060

October 11, 2004

Tom Lynch
President
Siouxland Ethanol, LLC.
1221 Monona Blvd.
Jackson, NE 68743

Dear Mr. Lynch:

The purpose of this letter is to set forth the understanding and agreement
between U.S. Energy Services, Inc. ("U.S. Energy") and Siouxland Ethanol, LLC.
("Siouxland Ethanol").

PROJECT DESCRIPTION: Siouxland Ethanol is developing a 50 million gallon per
year ethanol plant ("Plant") to be located in Dakota County, NE. The Plant will
have approximately a four MW peak usage in electricity and will consume either
approximately 4,500 MMBtu of natural gas per day or approximately 300 tons of
Powder River Basin Coal per day.

U.S. ENERGY RESPONSIBILITIES: U.S. Energy will provide consulting and energy
management services for supplies of natural gas or coal and electricity for the
Plant. These services will be provided during the construction of the Plant
("Construction Period"), and after the Construction Period when the Plant has
been placed in service ("Completion Date"). The Completion Date shall be
determined when the Plant begins producing ethanol. These services will include
but not be limited to following:

A.   ENERGY INFRASTRUCTURE ADVISORY SERVICES DURING THE CONSTRUCTION PERIOD

1.   Provide an analysis and comparison of fuel choices for the plant. U.S.
     Energy will compare and analyze the total delivered cost of coal and
     natural gas to be used for combustion and steam generation.

2.   Provide an economic comparison of receiving natural gas distribution
     service. U.S. Energy will provide preliminary engineering cost estimates,
     route drawings, and project timeline related to constructing pipeline
     facilities.

     In the event that a direct connect gas pipeline option is selected, U.S.
     Energy will submit a tap request to the pipeline. In addition, U.S. Energy
     will also attempt to negotiate an option for Siouxland Ethanol to minimize
     interconnect costs through the purchase of firm transportation to the
     Plant.

                                      -2-

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                                                        U.S. Energy Initials ___

                                                  Siouxland Ethanol Initials ___

3.   Determine whether firm, interruptible, or a blend of gas transportation
     entitlement will provide the lowest burnertip cost. Factors that will be
     considered include pipeline credits for the new interconnect, cost of an
     alternate fuel system, and availability of specific receipt point capacity.

4.   Evaluate the economics and feasibility of using coal as a fuel source
     rather than natural gas. Negotiate the acquisition, transportation, storage
     and other logistics necessary in managing the cost of coal if used as a
     fuel source.

5.   Provide advisory services to Siouxland Ethanol regarding electric pricing
     and service agreements.

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

     b.   Negotiate final electric service agreements that meet the pricing and
          reliability requirements of Siouxland Ethanol, including options for
          third party access to electric metering.

     c.   Prepare and implement a regulatory strategy, if required and if an
          alternative power supplier is selected. Any attorney fees required for
          the specific purpose of obtaining regulatory approval for an
          alternative power supplier, if any, will be over and above U.S.
          Energy's monthly fee herein, and must be pre-approved by Siouxland
          Ethanol.

6.   Evaluate the proposed electric distribution infrastructure (substation) for
     reliability, future growth potential and determination of the division of
     ownership of facilities between the utility and the Plant.

7.   Investigate economic development rates, utility grants, equipment rebates
     and other utility programs that may be available.

B. ON-GOING ENERGY MANAGEMENT SERVICES FOLLOWING THE COMPLETION PERIOD

U.S. Energy will provide the following services at Siouxland Ethanol's request:

1.   If natural gas is the fuel selected, provide natural gas supply information
     to minimize the cost of natural gas purchased. This will include acquiring
     multiple supply quotes and reporting to Siouxland Ethanol the various
     supply index and fixed prices. U.S. Energy will not take title to Siouxland
     Ethanol gas supplies, but will communicate supply prices and potential
     buying strategies.

2.   Negotiate with gas pipelines, utilities, other shippers, and suppliers to
     provide transportation, balancing, and supply agreements that meet
     Siouxland Ethanol's performance criteria at the lowest possible cost.

                                      -3-

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                                                        U.S. Energy Initials ___

                                                  Siouxland Ethanol Initials ___

3.   Develop and implement a price risk management plan that is consistent with
     Siouxland Ethanol's pricing objectives and risk profile.

4.   Provide daily nominations to the gas suppliers, pipeline, and other
     applicable shippers for natural gas deliveries to the Plant. This will
     include daily electronic confirmations to Siouxland Ethanol of all
     nominations and actual daily gas usage. U.S. Energy will utilize customer
     or utility supplied telemetering to obtain actual usage data.

5.   Provide a consolidated monthly invoice to Siouxland Ethanol that reflects
     all applicable natural gas, coal and electric energy costs. U.S. Energy
     will be responsible for reviewing, reconciling and paying all shipper,
     supplier and utility invoices.

6.   Provide a monthly usage report of electric energy consumption and costs.
     Also, where applicable and available from the utility, obtain monthly
     interval electric load data and provide monthly load profile graphs.

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

     a.   Completing and evaluating annual proposals to identify the most
          reliable and economic third party electric energy supply.

     b.   Identifying new service tariffs or opportunities to renegotiate the
          service agreement to provide lower costs.

     c.   Identifying on-site generation opportunities as market conditions
          change.

     d.   Provide a monthly projection of energy (natural gas or coal and
          electricity) and annual summaries.

8.   Evaluate the economics and feasibility of using coal as a fuel source
     rather than natural gas. Negotiate the acquisition, transportation, storage
     and other logistics necessary in managing the cost of coal if used as a
     fuel source.

9.   Provide natural gas or coal and electric energy operating budgets for the
     Plant.

10.  Perform initial sales tax exemption audits for energy consumption costs as
     required and allowed by Nebraska tax laws.

TERM: The initial term of this Agreement shall commence on November 1, 2004 and
continue until twelve (12) months after the Plant's Completion Date. The
Agreement shall be month-to-month after the initial term. This Agreement may be
terminated by either party effective after the initial term upon thirty (30)
days prior written notice. Siouxland Ethanol shall remain responsible for
payment and performance associated with any and all transportation, supply, and

                                      -4-

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                                                        U.S. Energy Initials ___

                                                  Siouxland Ethanol Initials ___

storage transactions entered into by U.S. Energy and authorized by Siouxland
Ethanol, prior to termination.

FEES: U.S. Energy's fee for services described above described above during the
term of this Agreement shall be $2,900 per month, plus pre-approved travel
expenses. Siouxland Ethanol may defer payment on the invoiced amounts until
financing for the plant has been secured. Deferred invoice amounts shall not
bear interest. Plant financing shall be deemed to be secured at the time
Siouxland Ethanol and its project lender(s) actually execute and deliver all
required documents for closing the loans necessary to finance the complete
construction of the Siouxland Ethanol. In the event that plant financing is not
secured, this Agreement shall become null and void and both parties will be
relieved of professional and/or financial obligations due the other party.
Payment of pre-approved travel expenses shall not be deferred. If Siouxland
Ethanol experiences significant delays in its project timeline and it is
necessary for U.S. Energy to delay work on Siouxland Ethanol's energy management
activities, upon mutual agreement by both parties, U.S. Energy will suspend its
activities and suspend invoicing Siouxland Ethanol until U.S. Energy's
activities resume.

BILLING AND PAYMENT: On the first of the month, U.S. Energy shall invoice
Siouxland Ethanol for the work to be completed that month. Siouxland Ethanol
shall pay U.S. Energy within then (10) days of receipt of invoice, unless
payments are deferred until financing for the plant has been secured as outlined
above. U.S. Energy will also provide to Siouxland Ethanol each month a
consolidated invoice of the Plant's energy costs.

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

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

NOTICES: Any formal notice, request or demand which a party hereto may desire to
give to the other respecting this Agreement shall be in writing and shall be
considered as duly delivered

                                      -5-

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                                                        U.S. Energy Initials ___

                                                  Siouxland Ethanol Initials ___

as of the postmark date when mailed by ordinary, registered or certified mail by
said party to the addresses listed below. Either party may, from time-to-time,
identify alternate addresses at which they may receive notice during the term of
this Agreement by providing written notice to the other party of such alternate
addresses.

Siouxland Ethanol:   Siouxland Ethanol, LLC.
                     Attn: Tom Lynch-President
                     1221 Monona Blvd.
                     Jackson, NE 68743

U.S. Energy:         U.S. Energy Services, Inc.
   (Payment)         c/o US Bank SDS 12-1449
                     Account #: 173100561153
                     P.O. Box 86
                     Minneapolis, MN 55486

(Notices):           U.S. Energy Services, Inc.
                     1000 Superior Blvd
                     Wayzata, MN 55391
                     Attn: Gail McMinn

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

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

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

If the above correctly sets forth Siouxland Ethanol's understanding of the
Agreement, please so indicate in the spaces below and return both originals to
U.S. Energy, Attention: Gail McMinn

Sincerely,

U.S. ENERGY SERVICES, INC.

BY: /s/ Gail McMinn              (Sign)
    -----------------------------------
NAME: Gail McMinn               (Print)
TITLE: Vice President

DATE: 10-20-04

                                      -6-

<PAGE>

                                                        U.S. Energy Initials ___

                                                  Siouxland Ethanol Initials ___

ACCEPTED AND DATED TO THIS ________ DAY OF _____________________, 2004

SIOUXLAND ETHANOL, LLC.

BY: /s/ Tom Lynch                (Sign)
    -----------------------------------
NAME: Tom Lynch                 (Print)
TITLE: President and Chairman

DATE: 10-13-04

                                       -7-<PAGE>
                                                                    Exhibit 10.6

                         OPTION TO PURCHASE REAL ESTATE

     This AGREEMENT is hereby entered in to this 16th day of February, 2005, by
and between CHARLES WENTHER, of 1505 Knox Blvd. Jackson, Nebraska 68743;
hereinafter referred to as "Owner" and SIOUXLAND ETHANOL, LLC, hereinafter
referred to as "Optionee".

     WHEREAS, Owner is the lawful title holder and owner of certain real
     property which includes Owner's residence and a farm building site best
     described as a tract of land as highlighted on an aerial photo attachment;
     and, such land is located in the south half of Sec. 27 Twp. 9N, Range 7
     East in St. Johns Township, Dakota County, Nebraska; and, expected to be
     approximately seven acres more or less:

                                (SEE ATTACHMENT)

     hereinafter referred to as the "Subject Property"; and

     WHEREAS, Optionee desires the right to obtain title to the Subject
Property, at prices and under terms and conditions hereinafter provided, for the
purpose of industrial or commercial expansion and development,

     NOW THEREFORE, in consideration for the sum of $2,500.00 as option fee
hereby acknowledged as hand in paid, and other good and valuable consideration,
receipt of which is hereby acknowledged, the parties hereto agree as follows:

     1. DEFINITION OF TERMS AND DESCRIPTION OF PROPERTY. Subject Property
hereinafter refers to the entire parcel of real estate heretofore described.
Furthermore, it is understood that no personal property is included in this
Option, and the grain bins on said property shall be for the purpose of this
agreement considered personal property and are not included in this option
agreement, and if Optionee shall exercise this Option, said bins must be removed
from the property by the Owner.

     Furthermore, the well located on said property is not included in this
agreement, and at time of survey to describe the exact parcel of the land to be
sold by Owner to Optionee, the parties may agree to exclude a small piece of
land containing said well which shall be retained by the Owner.

     For the purposes of this agreement the term "gross acres" shall include any
portion of Subject Property titled in Owners' name but subject to road use or
right of way.

     2. PURCHASE TERMS AND CONDITIONS. The Optionee shall have the right and
option to acquire all portions of the Subject Property upon the terms and
conditions hereinafter set forth:

          a.   Minimum Parcel Requirements. The right and option to acquire the
               Subject Property requires the Optionee to purchase the parcel.

          b.   Initial Option Period and Price. This initial option shall
               continue for a period of time extending from the execution of
               this agreement to and including

<PAGE>

               December 31, 2005. During said period, Optionee shall have the
               right to purchase Subject Property as follows: Optionee will pay
               Owner $175,000.00 for the residence and one acre of land, and an
               additional $75,000.00 for the buildings and remaining land
               totally approximately six additional acres for a total purchase
               price of $250,000.00. If said option to purchase is exercised,
               the $2,500.00 option fee shall be applied to the purchase price.
               If said option is not exercised within the initial option period,
               and no extension is requested, said option fee shall be retained
               by the Owner. Right to Extend Option. The Optionee shall have the
               right and option to extend the initial option for up to two (2)
               additional ninety (90) day terms and each extended option shall
               include an additional option fee of $2,000.00. Said extension
               request shall be in writing and submitted to Owners no later than
               seven (7) days prior to the expiration of the option in place. If
               the right to extend the option is exercised, the option fee(S)
               shall be applied to the purchase price if the Option is
               exercised, and all such option fee(s) paid shall be retained by
               the Owner if said option(s) expire and a purchase is not made.

          c.   Possession. If the Optionee timely performs all obligations in
               connection with the exercise of any option pursuant to this
               agreement, possession of the real estate shall be delivered to
               the Optionee within 60 days following notice of exercise of
               option by Optionee.

          d.   Real Estate Taxes. If Optionee exercises its option to purchase
               Subject Property, then the Owners shall pay all real estate taxes
               accrued pro-rata prior to date of possession by the Optionee,
               including any unpaid real estate taxes payable in prior years.
               The Optionee shall pay all subsequent real estate taxes. Any
               proration of real estate taxes shall be based upon such taxes
               payable for the year of sale, or prior year if the current year
               is not known.

          e.   Special Assessments. The Owners shall pay all installments of
               special assessments which are a lien on the real estate and, if
               not paid, would become delinquent during the calendar year that
               the option is exercised, and all prior installments thereof. All
               other special assessments shall be paid by the Optionee.

          f.   Abstract of Title. In the event of notice of exercise of an
               option contained herein by the Optionee, Owners, at their
               expense, shall promptly obtain an Title Insurance to the real
               estate in an amount equal to the purchase price herein
               established, and Owner shall deliver to the Optionee at Title
               Commitment for examination as soon as possible upon receiving
               Notice of intent to purchase. It shall show merchantable title in
               the Owners in conformity with this agreement, Nebraska law and
               the Title Standards.

          g.   Deed. Upon payment of the purchase price, Owners shall convey the
               real estate to the Optionee, by Warranty Deed, free and clear of
               all liens and encumbrances but subject to easements and
               restrictions of record.

<PAGE>

          h.   Joint Tenancy in Proceeds and in Real Estate. If the Owners,
               immediately preceding the exercise of any option herein, hold
               title to the Subject Property in joint tenancy with full right of
               survivorship, and the joint tenancy is not later destroyed by
               operation of law or by acts of the Owners, then the proceeds of
               thus sale, and any continuing or recaptured rights of the Owners
               in Subject Property, shall belong to the Owners as joint tenants
               with full rights of survivorship and not as tenants in common;
               and Optionee; in the event of death of either Owner, agree to pay
               any balance of the price due Owners under this contract to the
               surviving Owner and to accept a deed from the surviving Owner
               consistent with paragraph 2.

          i.   Method of Exercise of Option. Exercise of the option to purchase
               the Subject Property shall be made by the Optionee delivering to
               the Owners at the address to which notices are to be sent, a
               written notice of exercise of the option as provided herein.
               Written notice shall be given in compliance with paragraph 10
               below.

          j.   Notice of Exercise of Option. The written notice of exercise of
               the option to acquire the Subject Property shall be made in the
               manner described herein but shall only be effective if given on
               or before the end of the last day of the last exercised option.

          k.   Reimbursement for Unharvested Crops/Expenses. In the event
               Optionee takes possession of the Subject Property after a crop is
               planted thereon but before said crop is harvested, the Optionee
               shall reimburse the Owners for seed, fertilizer, and pesticides,
               if Optionee takes possession of Subject Property after spring
               planning work has started. The reimbursement cost shall be
               mutually agreed upon by both parties.

          l.   Opportunity for Like-Kind Exchange. If, within 30 days from when
               the Optionee serves notice to the Owners of its intent to
               exercise its purchase option, the Owners find a third party
               willing to enter into a multiparty like-kind exchange agreement;
               the Optionee agrees to fully cooperate and enter into such
               agreement for the purpose of effecting a multiparty like-kind
               exchange pursuant to Section 1031 of the Internal Revenue Code,
               as amended, whereby the third party will sell like-kind real
               estate to the Optionee and execute a Warranty Deed in favor of
               the Owners; concurrently the Owners will convey their interest in
               Subject Property to the Optionee; concurrently the Optionee shall
               pay the third-party the lesser of the agreed upon value of the
               Subject Property and the agreed upon value of the acquisition
               property; concurrently the difference between the agreed upon
               value of the Subject Property and the agreed upon value of the
               exchange property shall be paid to the Owners by the Optionee, or
               to the third-party by the Owners, as circumstances dictate.

<PAGE>

               In the event the Owners fail to find a third party willing to
               enter into a multiparty like-kind exchange agreement within 30
               days of the Optionee's notice, but give notice to the Optionee of
               their intent to effect a deferred like-kind exchange pursuant to
               Section 1031 of the IRC of 1986, as amended, after such period,
               the Optionee agrees to deposit the purchase price of the Subject
               Property in an escrow or other account pursuant to terms enabling
               the Owners to effect such an exchange. In the event that Owners
               have not designated the property to be acquired by Section 1031
               of the Internal Revenue Code, as amended, to effect like-kind
               exchange treatment, then the Optionee shall direct the closing
               agent to pay the balance of the purchase price to the Owners. In
               the event that the Owners have designated the property to be
               acquired by them within the identification period as required by
               Section 1031 of the Internal Revenue Code, as amended, to effect
               like-kind exchange treatment, then the Optionee shall direct the
               escrow agent to pay the third party the amount necessary to
               effect such an exchange and the balance, if any, of the escrow
               account to the Owners.

     3. CLOSING DATE. If Optionee exercises its option to purchase Subject
Property, the Owners and Optionee shall appear at a mutually convenient closing
date as agreed upon by the parties. The Parties agree to equally share the costs
of closing. The Parties shall split equally the cost of the title insurance
premium.

     4. RIGHT TO FARM PROPERTY DURING TERM OF AGREEMENT. The Owners shall have
the exclusive use and possession of the Subject Property including but not
limited to the right to farm the same during the term of this agreement, or
until the Subject Property is sold, whichever occurs first.

     5. RIGHT TO FARM PROPERTY PURCHASED. In the event that Optionee exercises
its option to purchase all or any portions of Subject Property and in the event
that row crops are cultivated upon said property, Owners shall have the first
right to farm said property under terms and conditions customary in the area.

     6. SUBSURFACE DRAINAGE. Optionee acknowledges its understanding that the
Subject Property may contain certain drainage lines providing surface and
subsurface water drainage from other real property. Optionee agrees to preserve
such subsurface drainage or to provide suitable alternative surface or
subsurface drainage at Optionee's cost on any property purchased pursuant to the
terms of this agreement.

     7. LICENSE TO OPTIONEE TO ENTER PROPERTY. The Owners hereby grant the
Optionee a nonexclusive license to enter the Subject Property from time to time
during the option period for the sole and exclusive purpose of allowing the
Optionee to perform boundary and topographic survey work, and conduct soil,
engineering, and other tests on such land. The Optionee agrees to indemnify and
hold the Owners harmless from any and all damage caused by the Optionee or its
agents on the land or crops thereon. After performing its test and engineering
work, the Optionee shall restore the land to substantially the same condition as
existed prior to the Optionee's conduct thereon, and shall be liable to the
Owners for any damage remaining on

<PAGE>

the land, or crops or fixtures thereon. Such license to go on the Subject
Property shall be limited to the purpose of performing such survey work and soil
tests, engineering and other tests by the Optionee, and such license shall
automatically terminate and be of no further force and effect after the
expiration of the term of this option agreement.

     8. RIGHT OF ASSIGNMENT. The Optionee shall have the full and unrestricted
right to assign its interest in this agreement or any other interest hereunder
at any time. Optionee agrees that in the event of an assignment, the Optionee
shall assume responsibility for all of the rights, obligations and duties
contained herein which shall survive any such assignment.

     9. TIME IS OF THE ESSENCE. Time is of the essence of each and every term
and provision of this agreement

     10. REMEDIES. In any action between the parties seeking enforcement of any
of the terms and provisions of this agreement or in connection with the Subject
Property, the prevailing party in such action shall be awarded, in addition to
damages, injunctive or other relief, its reasonable costs and expense, not
limited to taxable costs, and reasonable attorneys fees.

     11. NOTICES. Any notice to either party that may be required hereunder or
which either party is permitted or may desire to give to the other party must be
in writing and may be given by personal delivery or by mailing the same by
registered or certified mail, return receipt requested, to the party to whom the
notice is directed at the address of such party as hereinafter set forth or such
other address as the parties may hereinafter designate:

               Owners:     Charles Wenther
                           1505 Know Blvd.
                           Jackson, NE 68743

               Optionee:   ATTN: Tom Lynch, President
                           Siouxland Ethanol, LLC
                           P.O. Box 146
                           Jackson, NE 68743

     Any notice given by mail shall be deemed given on the day after that on
which the same is deposited in the United States mail, properly addressed with
postage fully prepaid, if mailed in Jackson, NE, or on the 2nd day after mailing
if mailed elsewhere.

     IN WITNESS THEREOF, this Agreement has been executed in the State of
NEBRASKA, by the parties as of the day and year first above written.

By: /s/ Charles Wenther
    ---------------------------------
    Charles Wenther, Owner

By: /s/ Thomas Lynch                    Its: President
    ---------------------------------
    Thomas Lynch

<PAGE>

STATE OF NEBRASKA   )
                    )ss.
COUNTY OF DAKOTA    )

     On this 16th day of February, 2005; before me, the undersigned, a Notary
Public, personally appeared CHARLES WENTHER, Owner, who executed the foregoing
instrument, and acknowledged the execution of the foregoing Option to Purchase
Real Estate.

     [Seal]                             /s/ John F. Kingsbury
                                        ----------------------------------------
                                        Notary Public

STATE OF NEBRASKA   )
                    )ss.
COUNTY OF DAKOTA    )

     On this 17 day of February, 2005; before me, the undersigned, a Notary
Public, personally appeared Thomas Lynch, as President for Siouxland Ethanol,
LLC on behalf of the Optionee, who executed the foregoing instrument, and
acknowledged the execution of the foregoing Option to Purchase Real Estate.

     [Seal]                             /s/ John F. Kingsbury
                                        ----------------------------------------
                                        Notary Public

<PAGE>

                          [Aerial photo appears here.]

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