Document:

SOUTHERN
                IOWA BIOENERGY, LLC

              115
                S. LINDEN

              LAMONI,
                IA 50140

               

               

              BORROWER'S
                NAME AND ADDRESS

              "I"
                includes each borrower above, jointly and severally.

            	
              AMERICAN
                STATE BANK-OSCEOLA

              P.O.
                BOX 463

              OSCEOLA,
                IA 50213

               

               

              LENDER'S
                NAME AND ADDRESS

              "You"
                means the lender, its successors and assigns.

            	
              Line
                of Credit No. 272102

              Date
                08-16-2007

              Max.
                Credit Amt. 100,040.00

              Loan
                Ref. No. 272102

            

    

    

    You
      have
      extended to me a line of credit in the 

    AMOUNT
      of
ONE
      HUNDRED THOUSAND FORTY AND NO/100                 $100,040.00    
      .

     

    You
      will
      make loans to me from time to tome until 12:00
      P.m. on 02-16-2008               
      .
      Although
      the line of credit expires on that date, I will remain obligated to perform
      all
      my duties under this agreement so long as I owe you any money advanced according
      to the terms of this agreement, as evidenced by any note or notes I have signed
      promising to repay these amounts.

     

    This
      line
      of credit is an agreement between you and me. It is not intended that any third
      party receive any benefit from this agreement, whether by direct payment,
      reliance for future payment or in any other manner. This agreement is not a
      letter of credit.

     

    
      	1.	
              AMOUNT:
                This line of credit is:

            

    

    
      	
            	 ̈	
              OBLIGATORY:
                You may not refuse to make a loan to me under this line of credit
                unless
                one of the following occurs:

            

    

    
      	
            	a.	
              I
                have borrowed the maximum amount available to
                me;

            

    

    
      
        
          	
                	b.	
                  This
                    line of credit has
                    expired;

                

        

      

    

    
      
        
          	
                	c.	
                  I
                    have defaulted on the not (or notes) which show my indebtedness
                    under this
                    line of credit;

                

        

      

    

    
      
        
          	
                	d.	
                  I
                    have violated any term of this line of credit or any note or
                    other
                    agreement entered into in connection with this line of
                    credit;

                

        

      

    

    
      
        
          	
                	e.	
                   

                

          	 	 	 

          	 	 	 .

        

        
        

      

    

    
      	
            	
              x

            	
              DISCRETIONARY:
                You may refuse to make a loan to me under this line of credit once
                the
                aggregate outstanding advances equal or exceed ZERO
                AND NO/100`       $0.00.

            

    

    Subject
      to the obligatory or discretionary limitations above, this line of credit
      is:

    
      	
            	x	
              OPEN-END
                (Business or Agricultural only): I may borrow up to the maximum amount
                of
                principal more than one time.

            

    

    
      	
            	 ̈	
              CLOSED-END:
                I may borrow up to the maximum only one.
                time.

            

    

     

    
      	2.	
              PROMISSORY
                NOTE:
                I
                will repay any advances made according to this line of credit agreement
                as
                set out in the promissory note, I signed on 08-16-2007 ,
                or any note(s) I sign at a later time which represent advances under
                this
                agreement. The note(s) set(s) out the terms relating to maturity,
                interest
                rate, repayment and advances. If indicated on the promissory note,
                the
                advances will be made as follows:

            

    

    
      
      

       

      
        
          
            	
                  	 	
                    AS
                      NEEDED FOR OPERATING 

                  

            	 	 	 

            	 	 	 .

          

                  
            

        

      

    

    
      	
              3.

            	
              RELATED
                DOCUMENTS:
                I
                have signed the following documents in connection with this line
                of credit
                and note(s) entered into in accordance with this line of
                credit:

            

    

     

    
      	 ̈	security
              agreement dated	 	 	 ̈	 
	 ̈	mortgage
              dated	 	 	 ̈ 	 
	 ̈	guaranty
              dated 	 	 	
               ̈

            	 

    

     

    
      	4.	
              REMEDIES:
                If
                I am in default on the note(s) you may:

            

    

    
      	
            	a.	
              take
                any action as provided in the related
                documents;

            

    

    
      	
            	b.	
              without
                notice to me, terminate this line of credit.

            

    

     

    By
      selecting any of these remedies you do not give up your right to later use
      any
      other remedy. By deciding not to use any remedy should I default, you do not
      waive your right to later consider the event a default, if it happens again.
      

     

    
      	5.	
              COSTS
                AND FEES:
                If
                you hire an attorney to enforce this agreement I will pay your reasonable
                attorney's fees, where permitted by law. I will also pay your court
                costs
                and costs of collection, where permitted by
                law.

            

    

     

    
      	6.	
              COVENANTS:
                For as long as this line of credit is in effect or I owe you money
                for
                advances made in accordance with the line of credit, I will do the
                following: 

            

    

    
      	
            	a.	
              maintain
                books and records of my operations relating to the need for this
                line of
                credit;

            

    

    
      	
            	b.	
              permit
                you or any of your representatives to inspect and/or copy these
                records;

            

    

    
      	
            	c.	
              provide
                to you any documentation requested by you which support the reason
                for
                making any advance under this line of
                credit;

            

    

    
      	
            	d.	
              permit
                you to make any advance payable to the seller (or seller and me)
                of any
                items being purchased with that advance;

            

      	 	e.	SEE
              PROMISSORY NOTE FOR
              COVENANTS

      	 	 	 

      	 	 	 

    

    
    

      .

    
      	7.	
              NOTICES:
                All notices or other correspondence with me should be sent to my
                address
                stated above. The notice or correspondence shall be effective when
                deposited in the mail, first class, or delivered to me in
                person.

            

    

     

    
      	8.	
              MISCELLANEOUS:
                This line of credit may not be changed except by a written agreement
                signed by you and me. The law of the state in which you are located
                will
                govern this agreement. Any term of this agreement which is contrary
                to
                applicable law will not be effective, unless the
                law permits you and me to agree to such a variation.
                

            

    

     

    
      	FOR THE
              LENDER	 	SIGNATURES:
              I
              AGREE TO THE TERMS OF THIS LINE OF CREDIT. I HAVE RECEIVED A COPY ON
              TODAY'S DATE. 
	 	 	 
	s/s
              Kevin W. Klemesrud	 	s/s
              Alan Elefson          
s/s
              Leon
              Kessel
	KEVIN W. KLEMESRUD	 	ALAN ELEFSON, TREASURER; LEON
              KESSEL,
              PERSONALLY
	 	 	 
	Title
PRESIDENT	 	s/s
              William Higdon      
s/s
              J.R.
              Cornett
	 	 	WILLIAM HIGDON, PERSONALLY;
              J.R.
              CORNETT, PERSONALLY
	 	 	 
	 	 	s/s
              Jack Cooley            
              s/s
              William Morain
	 	 	JACK COOLEY, PERSONALLY; WILLIAM
              MORAIN, PERSONALLY

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
 

    

    
      	
              SOUTHERN
                IOWA BIOENERGY, LLC

              115
                S. LINDEN

              LAMONI,
                IA 50140

               

               

              BORROWER'S
                NAME AND ADDRESS

              "I"
                includes each borrower above, jointly and severally.

            	
              AMERICAN
                STATE BANK-OSCEOLA

              P.O.
                BOX 463

              OSCEOLA,
                IA 50213

               

               

              LENDER'S
                NAME AND ADDRESS

              "You"
                means the lender, its successors and assigns.

            	
              Loan
                Number 272102

              Date
                08-16-2007

              Maturity
                Date 02-16-2008

              Loan
                Amount $ 100,040.00

              Renewal
                Of ____________________

            

    

    

    For
      value
      received, I promise to pay to you, or your order, at your address listed above
      the PRINCIPAL
      sum of
ONE
      HUNDRED THOUSAND FORTY AND
      NO/100
      Dollars
      $ 100,040.00      

    
      	 ̈	
              Single
                Advance:
                I
                will receive all of this principal sum
                on                            
                .
                No additional advances are contemplated under this note.
                

            

    

    
      	x	
              Multiple
                Advance:
                The principal sum shown above is the maximum amount of principal
                I can
                borrow under this note. On 08-16-2007  

            

    

    I
      will
      receive the amount of $0.00 and
      future principal advances are contemplated. 

    Conditions:
      The
      conditions for future advances are 

    
      
        
          
            	
                  	 	
                    AS
                      NEEDED FOR OPERATING 

                  

            	 	 	 

            	 	 	 .

        

      

    

    
      	
            	
              x

            	
              Open
                End Credit:
                You and I agree that I may borrow up to the maximum amount of principal
                more than one time. This feature is subject to all other conditions
                and
                expires on 02-16-2008   .
                

            

    

    
      	
            	 ̈	
              Closed
                End Credit:
                You and I agree that I may borrow up to the maximum only one time
                (and
                subject to all other conditions). 

            

    

     

    INTEREST:
      I agree
      to pay interest on the outstanding principal balance from 08-16-2007
      at the
      rate of  8.250
      % per
      year until 08-17-2007   .
      

    
      	x	
              Variable
                Rate:
                This rate may then change as stated
                below.

            

    

    
      	
            	x	
              Index
                Rate:
                The future rate will be EQUAL
                TO 
                THE FOLLOWING INDEX RATE: THE
                BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75% OF THE NATION'S
                30
                LARGEST BANKS KNOWN AS THE WALL STREET JOURNAL PRIME RATE. THE RESULT
                OF
                THIS CALCULATION WILL BE ROUNDED TO THE NEAREST
                0.250      

            

    

    
      	
            	 ̈	
              No
                Index:
                The future rate will not be subject to any internal or external index.
                It
                will be entirely in your control. 

            

    

    
      	
            	x	
              Frequency
                and Timing:
                The rate on this note may change as often as EVERY
                DAY BEGINNING 08-17-2007.

            

    

    A
      change
      in the interest rate will take effect ON
      THE SAME DAY.

    
      	
            	 ̈	
              Limitations:
                During the term of this loan, the applicable annual interest rate
                will not
                be more than _______ %
                or less than ______%.
                The rate may not change more than _______% each
                   .
                

            

    

    Effect
      of Variable Rate:
      A change
      in the interest rate will have the following effect on the payments:

    
       

      
        	 ̈	The
                amount of each scheduled payment will change.	 	x	The
                amount of the final payment will change.
	 ̈	 	 	 	 

      

       

    

    ACCRUAL
      METHOD:
      Interest
      will be calculated on a ACTUAL/360 basis.
      

     

    POST
      MATURITY RATE:
      I agree
      to pay interest on the unpaid balance of this note owing after maturity, and
      until paid in full, as stated below: 

     

    
      	
            	
               ̈

            	
              on
                the same fixed or variable rate basis in effect before maturity (as
                indicated above).

            

    

    
      	
            	x	
              at
                a rate equal to RATE
                AT MATURITY PLUS 5%.

            

    

    
      	x	
              LATE
                CHARGE:
                If
                a payment is made more than 10
                days
                after it is due, I agree to pay a late charge of 1.500%
                OF THE LATE AMOUNT
                WITH A MIN OF $15.00 AND A MAX OF $50.00 .

            

    

    
      	x	
              ADDITIONAL
                CHARGES:
                In
                addition to interest, I agree to pay the following charges which
                x
                are  ̈
                are not included in the principal amount above:
                ________________________________________________.

            

    

    PAYMENTS:
      I agree
      to pay this note as follows: 

    INTEREST
      ON THE AMOUNT OF CREDIT OUTSTANDING DUE AT MATURITY AND PRINCIPAL DUE ON
      02-16-2008.

     

    
      	 ̈	
              Unpaid
                Interest:
                Any accrued interest not paid when due (whether due by reason of
                a
                schedule of payments or due because of Lender's demand) will become
                part
                of the principal thereafter, and will bear interest at the interest
                rate
                in effect from time to time as provided for in this
                agreement.

            

    

     

    ADDITIONAL
      TERMS: NO ADVANCES ON LOAN UNTIL RECEIVE PERSONAL BALANCE SHEETS OF INDIVIDUALS
      EXECUTING 

     

    NOTE
      HEREIN; NO ADVANCES UNTIL RECEIVE MEETING MINUTES, RESOLUTION, AND OPERATING
      AGREEMENT OF LLC

    

    
      	x	
              If
                checked, this note is a credit agreement subject to Iowa Code § 635.17 and
                the following notice is applicable to this note.
                

            

    

     

    IMPORTANT:
      READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY
      BECAUSE ONLY THESE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL
      PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU
      MAY
      CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN
      AGREEMENT. 

    
      	 	 	 
	
               ̈ 
                SECURITY:
                This note is separately secured by (describe separate document by
                type and
                date): 

               

               

               

              (This
                action is for our internal use. Failure to list a separate security
                document does not mean the agreement will not secure this
                note.)

            	 	
              PURPOSE:
                The purpose of this loan is OPERATING .

               

              SIGNATURES:
                I AGREE TO THE TERMS OF THIS NOTE INCLUDING THOSE ON PAGE
                2).
                I
                have received a copy on today's date.

               

              SOUTHERN
                IOWA BIOENERGY, LLC

            
	 	 	s/s
              Alan Elefson
	 	 	ALAN
              ELEFSON, TREASURER
	 	 	 
	Signature
              for Lender	 	s/s
              William Higdon 
	 	 	WILLIAM
              HIGDON, PERSONALLY
	 	 	 
	s/s
              Kevin W. Klemesrud,
              President	 	s/s
              Jack Cooley     s/s J.R.
              Cornett
	KEVIN
              W.
              KLEMESRUD, PRESIDENT	 	JACK
              COOLEY,
              PERSONALLY; J.R. CORNETT, PERSONALLY
	 	 	 
	 	 	s/s
              Leon Kessel    s/s William
              Morain
	 	 	LEON
              KESSEL, PERSONALLY; WILLIAM MORAIN,
              PERSONALLY

    

           

    
      
        
        

      

      
        (page
          1 of 2)

        
          

        

      

      
        
        

      

    

     

    
      	
              DEFINITIONS:
                As
                used on page 1, "x"
                means the terms that apply to this loan. "I," "me" or "my" means
                each
                Borrower who signs this note and each other person or legal entity
                (including guarantors, endorsers, and sureties) who agrees to pay
                this
                note (together referred to as "us"). "You" or "your" means the Lender
                and
                its successors and assigns. 

              APPLICABLE
                LAW:
                The law of the state of Iowa will govern this note. Any term of this
                note
                which is contrary to applicable law will not be effective, unless
                the law
                permits you and me to agree to such a variation. If any provision
                of this
                agreement cannot be enforced according to its terms, this fact will
                not
                affect the enforceability of the remainder of this agreement. No
                modification of this agreement may be made without your express written
                consent. Time is of the essence in this agreement. 

              COMMISSIONS
                OR OTHER REMUNERATION:
                I
                understand and agree that any insurance premiums paid to insurance
                companies as part of this note will involve money retained by you
                or paid
                back to you as commissions or other remuneration.

              In
                addition, I understand and agree that some other payments to third
                parties
                as part of this note may also involve money retained by you or paid
                back
                to you as commissions or other remuneration.

              PAYMENTS:
                Each payment I make on this note will first reduce the amount I owe
                you
                for charges which are neither interest nor principal. The remainder
                of
                each payment will then reduce accrued unpaid interest, and then unpaid
                principal. If you and I agree to a different application of payments,
                we
                will describe our agreement on this note. I may prepay a part of,
                or the
                entire balance of this loan without penalty, unless we specify to
                the
                contrary on this note. Any partial prepayment will not excuse or
                reduce
                any later scheduled payment until this note is paid in full (unless,
                when
                I make the prepayment, you and I agree in writing to the
                contrary).

              INTEREST:
                Interest accrues on the principal remaining unpaid from time to time,
                until paid in full. If I receive the principal in more than one advance,
                each advance will start to earn interest only when I receive the
                advance.
                The interest rate in effect on this note at any given time will apply
                to
                the entire principal advanced at that time. You and I may provide
                in this
                agreement for accrued interest not paid when due to be added to principal.
                Notwithstanding anything to the contrary, I do not agree to pay and
                you do
                not intend to charge any rate of interest that is higher than the
                maximum
                rate of interest you could charge under applicable law for the extension
                of credit that is agreed to here (either before or after maturity).
                If any
                notice of interest accrual is sent and is in error, we mutually agree
                to
                correct it, and if you actually collect more interest than allowed
                by law
                and this agreement, you agree to refund it to me.

              INDEX
                RATE:
                The index will serve only as a device for setting the rate on this
                note.
                You do not guarantee by selecting this index, or the margin, that
                the rate
                on this note will be the same rate you charge on any other loans
                or class
                of loans to me or other borrowers.

              ACCRUAL
                METHOD:
                The amount of interest that I will pay on this loan will be calculated
                using the interest rate and accrual method stated on page 1 of this
                note.
                For the purpose of interest calculation, the accrual method will
                determine
                the number of days in a year. If no accrual method is stated, then
                you may
                use any reasonable accrual method for calculating-interest.

              POST
                MATURITY RATE:
                For purposes of deciding when the "Post Maturity Rate" (shown on
                page 1)
                applies, the term "maturity" means the date of the last scheduled
                payment
                indicated on page 1 of this note or the date you accelerate payment
                on the
                note, whichever is earlier.

              SINGLE
                ADVANCE LOANS:
                If
                this is a single advance loan, you and I expect that you will make
                only
                one advance of principal. However, you may add other amounts to the
                principal if you make any payments described in the "PAYMENTS BY
                LENDER"
                paragraph below, or if we have, agreed that accrued interest not
                paid when
                due may be added to principal.

              MULTIPLE
                ADVANCE LOANS:
                If
                this is a multiple advance loan, you and I expect that you will make
                more
                than one advance of principal. If this is closed end credit, repaying
                a
                part of the principal will not entitle me to additional
                credit.

              PAYMENTS
                BY LENDER:
                If
                you are authorized to pay, on my behalf, charges I am obligated to
                pay
                (such as property insurance premiums), then you may treat those payments
                as advances and add them to the unpaid principal under this note,
                or you
                may demand immediate payment of the charges.

              SET-OFF:
                I
                agree that you may set off any amount due and payable under this
                note
                against any right I have to receive money from you.

              "Right
                to receive money from you" means:

              (1) any
                deposit account balance I have with you;

              (2) any
                money owed to , me on an item presented to you or in your possession
                for
                collection or exchange; and

              (3) any
                repurchase agreement or other nondeposit obligation.

              "Any
                amount due and payable under this note" means the total amount of
                which
                you are entitled to demand payment under the terms of this note at
                the
                time you set off. This total includes any balance the due date for
                which
                you properly accelerate under this note.

              If
                my right to receive money from you is also owned by someone who has
                not
                agreed to pay this note, your right of set-off will apply to my interest
                in the obligation and to any other amounts I could withdraw on my
                sole
                request or endorsement. Your right of set-off does not apply to an
                account
                or other obligation where my rights are only as a representative.
                It also
                does not apply to any Individual Retirement Account or other tax-deferred
                retirement account.

              You
                will not be liable for the dishonor of any check when the dishonor
                occurs
                because you set off this debt against any of my accounts. I agree
                to hold
                you harmless from any such claims arising as a result of your exercise
                of
                your right of set-off. 

              REAL
                ESTATE OR RESIDENCE PROPERTY:
                If
                this note is secured by real estate or a residence that is personal
                property, the existence of a default and your remedies for such a
                default
                will be determined by applicable law, by the terms of any separate
                instrument creating the security interest and, to the extent not
                prohibited by law and not contrary to the terms of the separate security
                instrument, by the "Default" and "Remedies" paragraphs herein.
                

            	 	
              DEFAULT:
                I
                will be in default if any one or more of the following occur: (1)
                I fail
                to make a payment on time or in the amount due; (2) I fail to keep
                the
                property insured, if required; (3) I fail to pay, or keep any promise,
                on
                any debt or agreement I have with you; (4) any other creditor of
                mine
                attempts to collect any debt I owe him through court proceedings;
                (5) I
                die, am declared incompetent, make an assignment for the benefit
                of
                creditors, or become insolvent (either because my liabilities exceed
                my
                assets or I am unable to pay my debts as they become due); (6) I
                make any
                written statement or provide any financial information that is untrue
                or
                inaccurate at the time it was provided; (7) I do or fail to do something
                which causes you to believe that you will have difficulty collecting
                the
                amount I owe you; (8) any collateral securing this note is used in
                a
                manner or for a purpose which threatens confiscation by a legal authority;
                (9) I change my name or assume an additional name without first notifying
                you before making such a change; (10) I fail to plant, cultivate
                and
                harvest crops in due season; (11) any loan proceeds are used for
                a purpose
                that will contribute to excessive erosion of highly erodible land
                or to
                the conversion of wetlands to produce an agricultural commodity,
                as
                further explained in 7 C.F.R. Part 1940, Subpart G,
                Exhibit M.

              REMEDIES:
                Except as provided in the next paragraph, if this note is secured
                by
                agricultural land (as defined in Iowa Code § 172C.1) and I am in default
                on this note, you will give me notice of my right to cure. You may
                exercise your remedies only if I fail to cure my default within 45
                days
                after you mail the notice (or 45 days after actual delivery if you
                use a
                means other than certified mail).

              A
                notice of right to cure is not necessary and you may immediately
                exercise
                your remedies if you have: a) given me the notice with respect to
                two
                prior defaults, b) you have given me the notice with respect to a
                default
                occurring within 12 months before the current default, or I voluntarily
                surrender the agricultural land and you accept it in full satisfaction
                of
                the debt.

              Subject
                to the above limitations and any limitations imposed by Iowa Code
                Chapter
                654A, if I am in default on this note you have, but are not limited
                to,
                the following remedies:

              (1) You
                may demand immediate payment of all I owe you under this note (principal,
                accrued unpaid interest and other accrued charges).

              (2) You
                may set off this debt against any right t have to the payment of
                money
                from you, subject to the terms of the set-off paragraph
                herein.

              (3) You
                may demand security, additional security, or additional parties to
                be
                obligated to pay this note as a condition for not using any other
                remedy.

              (4) You
                may refuse to make advances to me or allow purchases on credit by
                me.

              (5) You
                may use any remedy you have under state or federal law.

              By
                selecting any one or more of these remedies you do not give up your
                right
                to later use any other remedy. By waiving your right to declare an
                event
                to be a default, you do not waive your right to later consider the
                event
                as a default if it continues or happens again.

              COLLECTION
                COSTS AND ATTORNEY'S FEES:
                I
                agree to pay all costs of collection, replevin or any other or similar
                type of cost if I am in default. In addition, if you hire an attorney
                to
                collect this note, I also agree to pay any fee you incur with such
                attorney plus court costs (except where prohibited by law). To the
                extent
                permitted by the United States Bankruptcy Code, I also agree to pay
                the
                reasonable attorney's fees and costs you incur to collect this debt
                as
                awarded by any court exercising jurisdiction under the Bankruptcy
                Code.

              WAIVER:
                I
                give up my rights to require you to do certain things. I will not
                require
                you to:

              (1) demand
                payment of amounts due (presentment);

              (2) obtain
                official certification of nonpayment (protest); or

              (3) give
                notice that amounts due have not been paid (notice of
                dishonor).

              I
                waive any defenses I have based on suretyship or impairment of
                collateral.

              OBLIGATIONS
                INDEPENDENT:
                I
                understand that I must pay this note even if someone else has also
                agreed
                to pay it (by, for example, signing this form or a separate guarantee
                or
                endorsement). You may sue me alone, or anyone else who is obligated
                on
                this note, or any number of us together, to collect this note. You
                may do
                so without any notice that it has not been paid (notice of dishonor).
                You
                may without notice release any party to this agreement without releasing
                any other party. If you give up any of your rights, with or without
                notice, it will not affect my duty to pay this note. Any extension
                of new
                credit to any of us, or renewal of this note by all or less than
                all of us
                will not release me from my duty to pay it. (Of course, you are entitled
                to only one payment in full.) I agree that you may at your option
                extend
                this note or the debt represented by this note, or any portion of
                the note
                or debt, from time to time without limit or notice and for any term
                without affecting my liability for payment of the note. I will not
                assign
                my obligation under this agreement without your prior written approval.
                

              FINANCIAL
                INFORMATION:
                I
                agree to provide you, upon request, any financial statement or information
                you may deem necessary. I warrant that the financial statements and
                information I provide to you are or will be accurate, correct and
                complete. 

              NOTICE:
                Unless otherwise required by law, any notice to me shall be given
                by
                delivering it or by mailing it by first class mail addressed to me
                at my
                last known address. My current address is on page 1. I agree to inform
                you
                in writing of any change in my address. I will give any notice to
                you by
                mailing it first class to your address stated on page 1 of this agreement,
                or to any other address that you have designated. 

              CREDIT
                AGREEMENT:
                A
                "credit agreement" under Iowa Code §535.17 means any contract made or
                acquired by a lender to loan money or extend credit for any purpose.
                A
                "credit agreement" does not mean a contract to extend credit by means
                of a
                credit card, or open end credit, or a home equity line of credit.
                

              This
                note is not subject to Iowa Code § 535.17 if it is a "credit agreement"
                made primarily for a personal, family, or household purpose where
                the
                credit extended is twenty thousand dollars or
                less.

            

 

    
      	
               

              DATE
                OF

              TRANSACTION

            	
               

              PRINCIPAL

              ADVANCE

            	
               

              BORROWER'S

              INITIALS

              (not
                required)

            	
               

              PRINCIPAL

              PAYMENTS

            	
               

              PRINCIPAL

              BALANCE

            	
               

              INTEREST

              RATE

            	
               

              INTEREST

              PAYMENTS

            	
               

              INTEREST

              PAID

              THROUGH

            
	 	
              $

            	 	
              $

            	
              $

            	
              %

            	
              $

            	 
	 	
              $

            	 	
              $

            	
              $

            	
              %

            	
              $

            	 
	 	
              $

            	 	
              $

            	
              $

            	
              %

            	
              $

            	 
	 	
              $

            	 	
              $

            	
              $

            	
              %

            	
              $

            	 

    

    

    
      
        
        

      

      
        (page
          2 of 2)CHANGE
      IN TERMS AGREEMENT

    

    
      	
              Principal

              $2,2000,000.00

            	
              Loan
                Date

              07-17-2006

            	
              Maturity

              10-17-2006

            	
              Loan
                No.

              108002938

            	
              Call/Coll

              1E/150

            	
              Account

            	
              Officer

              TLG

            	
              Initials

            
	
              References
                in the shaded area are for Lender's use only and do not limit the
                applicability of this document to any particular loan or
                item.

              Any
                item above containing "***" has been omitted due to text length
                limitations.

            

    

    

    
      	Borrower:	
              Southern
                Iowa BioEnergy LLC 

            	Lender:	
              Great
                Western Bank

            
	 	
              115
                So Linden

            	 	
              Leon

            
	 	
              Lamoni,
                IA 50140

            	 	
              111
                N. Main

            
	 	 	 	
              PO
                Box 171

            
	 	 	 	
              Leon,
                IA 50144

            

    

    

    
      
        

      

    

     

    
      	
              Principal
                Amount: $2,200,000.00

            	
              Interest
                Rate: 12.000%

            	
              Date
                of Agreement: 8-17-07

            

    

    

    DESCRIPTION
      OF CHANGE IN TERMS. The
      current balance of this loan is $685,000.00. This agreement will extend the
      maturity date of the loan to 2-17-2008. All other terms remain unchanged.

    

    CONTINUING
      VALIDITY.
      Except as
      expressly changed by this Agreement, the terms of the original obligation or
      obligations, including all agreements evidenced or securing the obligation(s),
      remain unchanged and in full force and effect. Consent by Lender to this
      Agreement does not waive Lender’s right to strict performance of the
      obligation(s) as changed, nor obligate Lender to make any future change in
      terms. Nothing in this Agreement will constitutes a satisfaction of the
      obligation(s). It is the intention of Lender to retain as liable parties all
      makers and endorsers of the original obligation(s), including accommodation
      parties, unless a party expressly released by Lender in writing. Any maker
      or
      endorser, including accommodation makers, will not be released by virtue of
      this
      Agreement. If any person who signed the original obligation does not sign this
      Agreement below, then all persons signing below acknowledge that this Agreement
      is given conditionally, based on the representation to Lender the non-signing
      party consents to the changes and provisions of this Agreement or otherwise
      will
      not be released by it. This waiver applies not only to any initial extension,
      modification or release, but also to all such subsequent actions.

    

    PRIOR
      TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS
      OF
      THIS AGREEMENT. BORROWER AGREES TO THE TERMS OF THIS
      AGREEMENT.

    

    BORROWER
      ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS CHANGE IN TERMS AGREEMENT
      AND
      ALL OTHER DOCUMENTS RELATING TO THIS DEBT.

    

    BORROWER:

    

    SOUTHERN
      IOWA BIOENERGY LLC    

     

    
      
        	By:	
                /s/
                  William T. Higdon

              	 	By:
                	
                /s/
                  Alan Elefson

              
	 	
                William
                  T. Higdon, President of Southern Iowa

              	 	 	
                Alan
                  Elefson, Treasurer of Southern Iowa BioEnergy

              
	 	
                BioEnergy
                  LLC

              	 	 	
                LLC

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