Document:

exv10w3

 

Exhibit 10.3

CLARKE COUNTY; IOWA

Entered upon transfer of books

and for tax, on this 8th

day of August, 2005.

	 	 	 
	/s/ Judy Purle

	 	Auditor
	 
	 
	 	 
	/s/ Susan Failor

	 	Deputy
	 

Filed

No. 051926

STATE OF
IOWA CLARKE COUNTY

	 
	2005 JUL 29 AM 11 22

	Book 96 PAGE 191-195

	PENNIE SONSETH

	RECORDER

	 	 	 
	REC

	 	5/$32
	 

	 	 

	 	 	 
	AUD

	 	 

	 	 	 
	TRNS

	 	 

	 	 	 
	E-COM

	 	 

	 	 	 
	REL

	 	 

	 	 	 
	COPY

	 	 

	 	 	 
	INDEX

	 	 

	 	 	 
	SCAN

	 	 

	 
	RETURN Green

REAL ESTATE CONTRACT INSTALLMENTS

THE IOWA STATE BAR ASSOCIATION

Official form No. 142

Recorder’s Cover Sheet

SEAL

Preparer Information : (Name, address and phone number)

Brian M. Green, 666 Grand Avenue, Suite 2000, Des Moines, IA 50309, Phone: (515) 242-2400

Taxpayer Information: (Name and complete address)

Southern Iowa BioEnergy LLC

207 N. Main Street

Leon, IA 50144

Return Document To: (Name and complete address)

Brian M. Green

666 Grand Avenue, Suite 2000 DCS

Moines, IA 50309

	 	 	 
	GRANTORS:

	 	GRANTEES:
	Jack Cooley
	 	 
	Jane Redman

	 	Southern Iowa BioEnergy, LLC

Legal Description: See Page 2

Document or instrument number of previously recorded documents:

C The Iowa State Bar Association 2005

  IOWADOCSO

 

 

					
	THE IOWA STATE BAR ASSOCIATION
	 	Brian M. Green ISBA # PK0015397	 	FOR THE LEGAL EFFECT OF THE USE OF
	Official Form No. 142
	 	 
	 	THIS FORM, CONSULT YOUR LAWYER

					
	 SEAL
	 	REAL ESTATE CONTRACT- INSTALLMENTS
	 	 

     IT
IS AGREED this 29th day of June  , 2005 by and between Jack Cooley and Jane Redman
of the County of Clarke, State of Iowa, Sellers; and
Southern Iowa BioEnergy LLC. an Iowa limited liability company                          
               
of the County of Decatur, State of Iowa, Buyers;

     That the Sellers, as in this contract provided, agree to sell to the Buyers, and the Buyers in consideration of the premises, hereby
agree with the Sellers to purchase the following described real estate situated in the County of Clarke

State of Iowa, to-wit:

See Exhibit A attached hereto

together
with any easements and servient estates appurtenant thereto, but with such reservations and exceptions of title as may be
below stated, and certain personal property if and as may be
herein described or if and
as
an itemized list
is
attached hereto and
marked “Exhibit A” all upon the terms and conditions following:

     1. TOTAL
PURCHASE PRICE. The Buyers agree to pay for said property the
total of $130,000.00, due and payable at   County, Iowa, as follows:

          (a) DOWN PAYMENT of $ 30,000.00 RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED: and

          (b) BALANCE OF PURCHASE PRICE. $ 100,000.00 , as follows:

          Due and payable on October 3, 2005.

     2. POSSESSION. Buyers, concurrently with due performance on their part shall be entitled to possession of said premises on the
3rd day of October 2005 ; and thereafter so long as they shall perform the
obligations of this contract. If Buyers are taking subject to the rights of lessees and are entitled to rentals therefrom on and after date of
possession, so indicate by “yes” in the space following

     3. TAXES. Sellers shall pay

and any unpaid taxes thereon payable in prior years, Buyers shall pay any taxes not assumed by Sellers and all subsequent taxes before
same become delinquent. Whoever may be responsible for the payment of said taxes, and the special assessments, if any, each year, shall
furnish to the other parties evidence of payment of such items not later than July 15 of each year. Any proration of taxes shall be based
upon the taxes for the year currently payable unless, the parties state otherwise.

(Decide, for yourself, if that formula is fair if Buyers are purchasing a lot with newly built improvements).

     4. SPECIAL ASSESSMENTS. Sellers shall pay the special assessments against this property:

	 	 	 	 	 
	 

	 	(a)
	 	 
	 

	 	(b)
	 	 
	 

	 	 
	(Date)	 

          (c) Including all sewage disposal assessments for overage charge heretofore assessed by any municipality having jurisdiction as of date of
possession. Buyers, except as above stated, shall pay all subsequent special assessments-and charges before they become delinquent.

	 	 	 
	The Iowa State Bar Association 2005

	 	142 REAL ESTATE CONTRACT — INSTALLMENTS
	IOWADOCS

	 	Revised January, 2005

 

 

     5. MORTGAGE. Any mortgage or encumbrance of a similar nature against the said property
shall be timely paid by Sellers so as not to prejudice the Buyers’ equity herein. Should Sellers
fail to pay, Buyers may pay any such sums in default and shall receive credit on this contract
for such sums so paid. MORTGAGE BY SELLERS. Sellers, their successors in interest or assigns
may, and hereby reserve the right to at any time mortgage their right, title or interest in such
premises or to renew or extend any existing mortgage
for any amount not exceeding                      % of the then unpaid balance of the purchase price herein provided.
The interest rate and
amortization thereof shall be no more onerous than the installment requirements of this
contract. Buyers hereby expressly consent to such a mortgage and agree to execute and deliver
all necessary papers to aid Sellers in securing such a mortgage which shall be prior and
paramount to any of Buyers’ then rights in said property. DEED FOR BUYERS SUBJECT TO MORTGAGE.
If Buyers have reduced the balance of this contract to the amount of any existing mortgage
balance on said premises, they may at their option, assume and agree to pay said mortgage
according to Its terms, and subject to such mortgage shall receive a deed to said premises; or
Sellers, at their option, any time before Buyers have made such a mortgage commitment, may
reduce or pay off such mortgage. ALLOCATED PAYMENTS. Buyers, in the event of acquiring this
property from an equity holder instead of a holder of the fee title, or in the event of a
mortgage against said premises, reserve the right, if reasonably necessary for their protection
to divide or allocate the payments to the interested parties as their interests may appear.
SELLERS AS TRUSTEES. Sellers agree that they will collect no money hereunder in excess of the
amount of the unpaid balance under the terms of this contract less the total amount of the
encumbrance on the interest of Sellers or their assigns in said real estate; and if Sellers
shall hereafter collect or receive any moneys hereunder beyond such amount, they shall be
considered and held as collecting and receiving said money as the agent and trustee of the
Buyers for the use and benefit of the Buyers.

     6. INSURANCE. Except as may be otherwise included in the last sentence of paragraph 1(b)
above, Buyers as and from said date of possession, shall constantly keep in force insurance,
premiums therefore to be prepaid by Buyers (without notice or demand) against loss by fire,
tornado and other hazards, casualties and contingencies as Sellers may reasonably require on all
buildings and improvements, now on or hereafter placed on said premises and any personal property
which may be the subject of this contract, in companies to be reasonably approved by Sellers in an
amount not less than the full insurable value of such improvements and personal property or not
less than the unpaid purchase price herein whichever amount is smaller with such insurance payable
to Sellers and Buyers as their interests may appear. Sellers’ interest shall be protected in
accordance with a standard of union-type loss payable clause. BUYERS SHALL PROMPTLY DEPOSIT SUCH
POLICY WITH PROPER RIDERS WITH SELLERS for the further security for the payment of the sums herein
mentioned. in the event of any such casualty loss, the insurance proceeds may be used under the
supervision of the Sellers to replace or repair the loss if the proceeds be adequate; if not, then
some other reasonable application of such funds shall be made; but in any event such proceeds
shall stand as security for the payment of the obligations herein.

     7. CARE OF PROPERTY. Buyers shall take good care of this property; shall keep the buildings
and other improvements now or hereafter placed on the said premises in good and reasonable repair
and shall not injure, destroy or remove the same during the life of this contract. Buyers shall
not make any material alteration in said premises without the written consent of the Sellers.
Buyers shall not use or permit said premises to be used for any illegal purpose.

     8. LIENS. No mechanics’ lien shall be imposed upon or foreclosed against the real estate
described herein.

     9. ADVANCEMENT BY SELLERS. If Buyers fail to pay such taxes, special assessments and
insurance and effect necessary repairs, as above agreed, Sellers may, but need not, pay such
taxes, special assessments, insurance and make necessary repairs, and all sums so advanced shall
be due and payable on demand or such sums so advanced may, at the election of Sellers, be added to
the principal amount due hereunder and so secured (For Buyers’ rights to make advancements, see
paragraph 5 above.)

     10. JOINT TENANCY IN PROCEEDS AND SECURITY RIGHTS IN REAL ESTATE. if and only if, the Sellers
immediately preceding this sale, hold the title to the above described property in joint tenancy,
and such joint tenancy has not later been destroyed by operation of law or by acts of the Sellers,
this sale shall not constitute such destruction and the proceeds of this contract, and any
continuing and/or recaptured rights of Sellers in said real estate, shall be and continue in
Sellers as joint tenants with rights of survivorship and not as tenants in common; and Buyers, in
the event of the death of one of such joint tenants, agree to pay any balance of the proceeds of
this contract to the surviving Seller (or Sellers) and to accept deed solely from him or them
consistent with paragraph 14 below unless and except this paragraph is stricken from this
agreement

     11. SELLERS. Spouse, if not titleholder immediately preceding this sale, shall be presumed
to have executed this instrument only for the purpose at relinquishing all rights of dower,
homestead and distributive share and/or in compliance with section 561.13 Code of Iowa; and the
use of the word “Sellers” in the printed portion of this contract, without more, shall not rebut
such presumption, nor in any way enlarge or extend the previous interest of such spouse in said
property, or in the sale proceeds, nor bind such spouse except as aforesaid, to the terms and
provisions of this contract.

     12. TIME IS OF THE ESSENCE. Time is of the essence in this Agreement. Failure to promptly
assert rights of Sellers herein shall not, however, be waiver of such rights or a waiver of
any existing or subsequent default.

     13. EXCEPTIONS TO WARRANTIES OF TITLE. The warranties of title in any Deed made pursuant to
this contract (See paragraph ‘14) shall be without reservation or qualification EXCEPT: (a)
Zoning ordinances; (b) Such restrictive covenants as may be shown of record; (c) Easements of
record, if any; (d) As limited by paragraphs 1, 2, 3 and 4 of this contract; (e) Sellers shall
give Special Warranty as to the period after equitable title passes to Buyers; (f) Spouse if not
titleholder, need not join in any warranties of the deed unless otherwise stipulated:

	 	 	 
	(g)

	 	 
	 

	 	(Mineral reservations of record?)

	 	 	 	 	 	 	 	 	 
	 	 	 
	(h)

	 	(Liens?)
	 	(Easements not recorded?)
	 	(Interests of other parties?)
	 	(Lessees?)

     14. DEED AND ABSTRACT BILL OF SALE. If all said sums of money and interest are paid to Sellers
during the life of this contract, and all other agreements for performance by Buyers have been
complied with, Sellers will execute and deliver to Buyers a                                          Warranty
Deed conveying said premises in fee simple pursuant to and in conformity with this contract and
Sellers will at this time deliver to Buyers an abstract showing merchantable title in conformity
with this contract Such abstract shall begin with the government patent (unless pursuant to the
Iowa State Bar Association title standards there is lesser requirement as to period of abstracting)
to said premises and shall show title thereto in Sellers as of the date of this contract; or as of
such earlier date if and as designated in the next sentence. This contract supersedes the previous
written offer of Buyers to buy the above described property which was accepted by Sellers on the
                    
day of
                    . Sellers shall also pay the costs of any abstracting due to any act
or change in the personal affairs of Sellers resulting in a change of title by operation of law or
otherwise. If any personal property is a part of this agreement, then upon due performance by
Buyers, Sellers shall execute and deliver a Bill of Sale consistent with the terms of this
contract. Sellers shall pay all taxes on any such personal property payable in                     , and
all taxes thereon payable prior thereto.

     15. APPROVAL OF ABSTRACT. Buyers have                      examined the abstract of title to this property and such abstract is
accepted.

     16. FORFEITURE. If Buyers (a) fail to make the payments aforesaid, or any part thereof, as
same become due; or (b) fail to pay the taxes or special assessments or charges, or any part
thereof, levied upon said property, or assessed against it, by any taxing body before any of such
items become delinquent; or (c) fail to keep the property insured; or (d) fail to keep it in
reasonable repair as herein required; or (e) fail to perform any of the agreements as herein made
or required; then Sellers, in addition to any and all other legal and equitable remedies which they
may have, at their option, may proceed to forfeit and cancel this contract as provided by law
(Chapter 656 Code of Iowa). Upon completion of such forfeiture Buyers shall have no right of
reclamation or compensation for money paid, or improvements made; but such payments and/or
improvements if any shall be retained and kept by Sellers as compensation for the use of said
property, and/or as liquidated damages for breach of this contract ; and upon completion of such
forfeiture, if the Buyers, or any other person or persons shall be in possession of said real
estate or any part thereof, such party or parties in possession shall at once peacefully remove
therefrom, or failing to do so may be treated as tenants holding over, unlawfully after the
expiration of lease, and may accordingly be ousted and removed as such as provided by law.

 

 

     17. FORECLOSURE AND REDEMPTION. If Buyers fail to timely perform this contract, Sellers, at
their option, may elect to declare the entire balance immediately due and payable after such
notice, if any, as may be required by Chapter 654, The Code. Thereafter this contract may be
foreclosed in equity and the court may appoint a receiver to take immediate possession of the
property and of the revenues and income accruing therefrom and to rent or cultivate the same as
the receiver may deem best for the interest of all parties concerned, and such receiver shall be
liable to account to Buyers only for the net profits, after application of rents, issues and
profits from the costs and expenses of the receivership and foreclosure and upon the contract
obligation,

     It is agreed that if this contract covers less than ten (10) acres of land, and in the event
of the foreclosure of this contract and sale of the property by sheriffs sale in such foreclosure
proceedings, the time of one year for redemption from said sale provided by the statutes of the
State of Iowa shall be reduced to six (6) months provided the Sellers, in such action file an
election to waive any deficiency judgment against Buyers which may arise out of the foreclosure
proceedings: all to be consistent with the provisions of Chapter 628 of the Iowa Code. If the
redemption period is so reduced, for the first three (3) months after sale such right of redemption
shall be exclusive to the Buyers, and the time periods in Sections 628.5, 628.15 and 628.16 of the
Iowa Code shall be reduced to four (4) months.

     It is further agreed that the period of redemption after a foreclosure of this contract shall
be reduced to sixty (60) days if all of the three following contingencies develop: (1) The real
estate is less than ten (10) acres in size; (2) the Court finds affirmatively that the said real
estate has been abandoned by the owners and those persons personally liable under this contract at
the time of such foreclosure; and (3) Sellers in such action file an election to waive any
deficiency judgment against Buyers or their successor in interest in such action. If the redemption
period is so reduced, Buyers or their successor in interest or the owner shall have the exclusive
right to redeem for the first thirty (30) days after such sale, and the time provided for
redemption by creditors as provided in Sections 628.5, 628.15 and 628.16 of the Iowa Code shall be
reduced to forty (40) days. Entry of appearance by pleading or docket entry by or on
behalf of Buyers shall be presumption that the property is not abandoned. Any such redemption
period shall be consistent with all of the provisions of Chapter 628 of the Iowa Code. This
paragraph shaft not be construed to limit or otherwise affect any other redemption provisions
contained in Chapter 628 of the Iowa Code.

     18. ATTORNEY’S FEES. In case of any action, or in any proceedings in any Court to collect any
sums payable or secured herein, or to protect the lien or title herein of Sellers, or in any other
case permitted by law in which attorney‘s fees may be collected from Buyers, or imposed
upon them, or upon the above described property, Buyers agree to pay reasonable attorneys’ fees.

     19. INTEREST ON DELINQUENT AMOUNTS. Either party will pay interest at the highest legal
contract rate applicable to a natural person to the other on all amounts herein as and after they
become delinquent, and/or on cash reasonably advanced by either party pursuant to the terms of this
contract, as protective disbursements.

     20. ASSIGNMENT. In case of the assignment of this contract by either of the parties, prompt
notice shall be given to the other parties, who shall at the time of such notice be furnished with
duplicate of such assignment by such assignors. Any such assignment shall not terminate the
liability of the assignor to perform, unless a specific release in writing is given and signed by
the other party to this contract.

     21. PERSONAL PROPERTY. If this contract includes the sale of any personal property, then in
the event of the forfeiture or foreclosure of this contract, such property shall be considered
indivisible with the real estate above described; and any such termination of Buyers‘
rights in said real estate shall concurrently operate as the forfeiture or foreclosure hereof
against all such personal property.

     22. CONSTRUCTION. Words and phrases herein, including acknowledgements hereof, shall be construed
as in the singular or plural number, and as
masculine, feminine or neuter gender, according to the context. See paragraph 11 above, for
construction of the word “Sellers.”

     23. RELEASE OF RIGHTS. Each of the Buyers hereby relinquishes all rights of dower, homestead and
distributive share in and to the property and waives all rights of exemption- as to any of the
property.

     24. LEAD-BASED PAINT NOTICE. If applicable, see attached Disclosure of Information on Lead-Based
and/or Lead-Based Paint Hazards.

     25. SPECIAL PROVISIONS.

I UNDERSTAND THAT HOMESTEAD PROPERTY IS IN MANY CASES PROTECTED FROM THE CLAIMS OF
CREDITORS AND EXEMPT FROM JUDICIAL SALE; AND THAT BY SIGNING THIS CONTRACT, I VOLUNTARILY
GIVE UP MY RIGHT TO THIS PROTECTION FOR THIS PROPERTY WITH RESPECT TO CLAIMS BASED UPON
THIS CONTRACT.

	 	 	 	 	 
	 

	 	Dated: June 29, 2005
	 	 
	 
	 	 	 	 
	 

	 	Dated: June 29, 2005
	 	 

	 	 	 
	Executed in duplicate or triplicate
	 	 
	/s/ Jack Cooley
	 	 
	 

	 	 
	Jack Cooley

	 	Southern Iowa BioEnergy, LLC
	 
	 	 
	/s/ Jane Redman

	 	/s/ William Higdon
	 

	 	 
	Jane Redman            SELLERS

	 	William Higdon, President            BUYERS
	 
	 	 
	1610 240th Avenue

	 	207 N. Main Street
	 
	Osceola, IA 50213

	 	Leon, IA 50144
	 
	SELLERS’ ADDRESS

	 	BUYERS’ ADDRESS

STATE OF IOWA, DECATUR COUNTY, ss:

This instrument was acknowledged before me on June 29, 2005
by Jack Cooley and Jane Redman, Sellers and William Higdon, President of Southern
BioEnergy LLC, Buyers.

	 	 	 	 	 
	 	 	 
	 

	 	Michelle Rumley
	 	, Notary Public
	 

	 	 	 	 
	 

	 	[SEAL] MICHELLE RUMLEY	 	 
	 

	 	Commission Number 731788	 	 
	 

	 	My Commission Expires	 	 
	 

	 	December 2, 2007	 	 

 

 

EXHIBIT A

Legal Description

Lots Two (2) and Three (3) located in the Northeast Quarter of the Southwest Quarter (NE
1/4
SW 1/4) of Section Eight (8), Township Seventy-two (72)
North, Range Twenty-five (25) West of the 5th P.M., Clarke County, Iowa, more
particularly described as follows: A tract of land bounded by a line described as commencing at the
Northwest Corner of the SW 1/4 of Section 8, Township 72 North, Range 25 West of the 5th P.M.;
thence East along the Northern boundary of said SW
1/4, a distance of 1411.5 feet to the
point of beginning, the same being the East right-of-way line of a spur-line of the Burlington
Northern Railroad; thence East 568.5 feet along the Northern boundary
of said SW 1/4  thence South
1285 feet; thence West 300 feet to a point on the East right-of-way line of a spur-line of the
Burlington Northern Railroad; thence Northwesterly along the Eastern right-of-way line of said
spur-line of the Burlington Northern Railroad, a distance of 1317.6 feet to the point of beginning.

 

 

REAL ESTATE TRANSFER — GROUNDWATER HAZARD STATEMENT

Please read the filing instructions on the reverse side BEFORE completing this form.

PART I — TO BE COMPLETED BY TRANSFEROR

	 	 	 	 	 	 	 	 	 	 	 
	29
	 	 	 	 	 	 	 	 	 	 
	TRANSFEROR Name Jack
Cooley and Jane Redman
	 	 	Address 1610 240th Avenue, Osceola, IA 50213            
                    
                
                
                
                
                
   
	 

	 	 	 	Number and Street or RR
	 	City, Town or P.O.
	 	State
	 	Zip
	 
	 	 	 	 	 	 	 	 	 	 
	TRANSFEREE Name Southern Iowa BioEnergy LLC
	 	 	Address 207 N. Main, Leon, IA 50144                                                                
                      
                                              
	 

	 	 	 	Number and Street or RR
	 	City, Town or P.O.
	 	State
	 	Zip
	 
	 	 	 	 	 	 	 	 	 	 
	Address of
Property Transferred               
                
                
                                                                                                                                   
	 

	 	 	 	Number and Street or RR
	 	City, Town or P.O.
	 	State
	 	Zip
	 
	 	 	 	 	 	 	 	 	 	 
	Legal Description of Property See Attached Exhibit A.
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 
	1.	 	Wells (check one)
	 

	 	þ
	 	There are no known wells situated on this property.
	 

	 	o
	 	There is a well or wells situated on this property. The type(s), location(s) and legal
status are stated below.
	 
	 	 	 	 
	2.	 	Solid Waste Disposal (check one)
	 

	 	þ
	 	There is no known solid waste disposal site on this property.
	 

	 	o
	 	There is a solid waste disposal site on this property, but no notice has been
received from the Department of Natural Resources that the site is deemed to
be potentially hazardous.
	 

	 	o
	 	There is a solid waste disposal site on this property which has been deemed to be
potentially hazardous by the Department of Natural Resources. The location(s) of the site(s)
is stated below.
	 
	 	 	 	 
	3.	 	Hazardous Wastes (check one)
	 

	 	þ
	 	There is no known hazardous waste on this property.
	 

	 	o
	 	There is hazardous waste on this property and it is being managed in
accordance with Department of Natural Resources rules.
	 
	 	 	 	 
	4.	 	Underground Storage Tanks (check one)
	 

	 	þ
	 	There are no known underground storage tanks on this property. (Note exclusions such as
small farm and residential motor fuel tanks, most heating oil tanks,
cisterns and septic tanks, in instructions.)
	 

	 	o
	 	There is an underground storage tank on this property. The type(s), size(s) and any
known substance(s) contained are described below.
	 
	 	 	 	 
	5.	 	Private Burial Site (check one)
	 

	 	þ
	 	 There are no known private burial sites on this property.
	 

	 	o
	 	There is a private burial site on this property. The location(s) of the site(s) is
stated below. The known identifying information of the decedent is stated below.

Information, if any, required by statements checked above :

Attachment
for Additional Information? Y N If so, number of pages                     

I HEREBY DECLARE THAT THE INFORMATION CONTAINED IN PART I OF THIS STATEMENT IS TRUE AND CORRECT.

Signature: /s/ Jack Cooley                                                                 
       Telephone Number:  (641) 342-3597

                
              Transferor or Agent

PART II — TO BE COMPLETED BY RECORDER

Dated of Instrument  6-29-05                                         Book/I.D. 96                      Page/I.D. 191-195

Dated of Recording 7-29-05                                          
City or Township Osceola

Deed o            Contract þ            County Clarke                                  
                
                
                
                
                
      

DNR form (November 02)                                                   FILE WITH RECORDER                                         542-0960

 

 

EXHIBIT A

Legal Description

Lots Two (2) and Three (3) located in the Northeast Quarter of the Southwest Quarter (NE
1 /4 SW 1/4) of Section Eight (8), Township Seventy-two (72) North, Range
Twenty-five (25) West of the 5th P.M., Clarke County, Iowa, more particularly
described as follows: A tract of land bounded by a line described as commencing at the Northwest
Corner of the SW 1 /4 of Section 8, Township 72 North, Range 25 West of the
5th P.M.; thence Eastalong the Northern boundary of said SW
1 /4, a distance of 1411.5 feet to the point of beginning, the same being the
‘East right-of-way line of a spur-line of the Burlington Northern Railroad; thence East 568.5 feet
along the Northern boundary of said SW 1 /4; thence South 1285 feet; thence West
300 feet to a point on the East right-of-way line of a spur-line of the Burlington Northern
Railroad; thence Northwesterly along the Eastern right-of-way line of said spur-line of the
Burlington Northern Railroad, a distance of 1317.6 feet to the point of beginning.exv10w4

 

Exhibit 10.4

REAL ESTATE CONTRACT

     IT IS AGREED between Fonda Brodsack, a widow and single person,
(“Seller”), and Southern Iowa BioEnergy, LLC, by J.R. Cornett, Second
Vice-President, (‘Buyer”).

     Seller agrees to sell and Buyer agrees to buy real estate in Clarke,
County, Iowa, described as:

Lot Four (4) located in the Northeast Quarter of the Southwest Quarter of
Section Eight (8), Township Seventy-two (72) North, Range Twenty-five (25)
West of the 5th P.M., Clarke County, Iowa, more specifically described as
follows: Commencing at the Northwest Corner of said Southwest Quarter;
thence East 1980.0 feet to the point of beginning; thence South 1285.0
feet; thence East 658.5 feet to a point on the East line of the said
Southwest Quarter; thence Northerly 1285.6 feet to the Northeast Corner of
the said Southwest Quarter; thence West 677.5 feet to the point of
beginning, containing 19.71 acres more or less.

with any easements and appurtenant servient estates, but subject to any zoning and other
ordinances; any covenants of record; any easements of record for public utilities, roads and
highways; and all other liens, mineral rights, easements or interest of others.

     1. PRICE: The total purchase price for the Real Estate is Sixty Thousand Dollars
($60,000.00) of which $10,000.00 down payment is being paid upon the signing of this
contract. Buyer shall pay the balance of the purchase price to Seller at 324 North H
Street, Oskaloosa, IA 52577, or as directed by Seller, as follows: The balance of the
purchase price of $50,000.00 shall be payable to Seller in annual payments in the amount of
$10,000.00 plus interest. The first annual payment of $10,000.00 plus interest shall be
paid on August 20, 2006; $10,000.00 plus interest to be paid on August 20, 2007, and a
balloon payment of the entire contract balance due plus interest to be paid on August 20,
2008. All of said payments shall be applied to interest first with the balance to
principal, until the balloon payment date of August 20, 2008 when the principal balance due
plus interest is to be paid in full.

     2. INTEREST: Buyer shall pay interest from August 20, 2005, on the unpaid balance, at
the rate of 8% per annum, payable annually. Buyer shall pay interest in the amount of 10%
per annum upon any delinquent amounts and any sum reasonably advanced by Seller to protect
their interest in this contract, computed from the date of the delinquency or advance.

 

 

	 	3.	 	REAL ESTATE TAXES: Seller shall pay taxes for the 2004-2005
fiscal year and any unpaid real estate taxes payable in prior years; taxes for
the 2005-2006 fiscal year pro-rated to August 20, 2005. Buyer shall pay all
subsequent real estate taxes. Any proration of real estate taxes on the Real
Estate shall be based upon such taxes for the year currently payable unless the
parties state otherwise.

     4. SPECIAL ASSESSMENTS: Seller shall pay all special assessments which are a lien on
the Real Estate as of the date of this contract. All other special assessments shall be paid
by Buyer.

     5. POSSESSION: Seller shall give Buyer possession of the Real Estate on August 20,
2005, provided Buyer is not in default under this contract.

     6. ABSTRACT AND TITLE: Seller, at her expense, shall promptly obtain an abstract of
title to the Real Estate continued through the date of this contract, and deliver it to Buyer
for examination. It shall show merchantable title in Seller in or conformity with this
contract, Iowa law and the Title Standards of the Iowa State Bar Association. The abstract
shall become the property of the Buyer when the purchase price is paid in full, however,
Buyer reserves the right to occasionally use the abstract prior to full payment of the
purchase price. Seller shall pay the costs of any additional abstracting and title work due
to any act or omission of Seller, including transfers by or the death of Seller or their
assignees.

     7. CARE OF PROPERTY: Buyer shall take good care of the property, shall keep the
improvements now or later placed on the Real Estate in good and reasonable repair and
shall not injure, destroy or remove the property during the term of this contract.

     8. DEED: Upon payment of purchase price, Seller shall convey the Real Estate to Buyer
or their assignees, by Warranty Deed, free and clear of all liens, restrictions, and
encumbrances except as provided herein. Any general warranties of title shall extend only to
the date of this contract, with special warranties as to acts of Seller continuing up to
time of delivery of the deed.

     9. REMEDIES OF THE PARTIES:

     a. If Buyers (a) fail to make the payments aforesaid, or any part thereof,
as same become due; or (b) fail to pay the taxes or special assessments or charges,
or any part thereof, levied upon said property or assessed against it, by any
taxing body before any of such items become delinquent; or (c) fail to keep
the property insured; or (d) fail to keep it in reasonable repair as herein
required; or (e) fail to perform any of the agreements as herein made or required;
then Sellers, in addition to any and all other legal and equitable remedies which
they may have, at their option, may proceed to forfeit and cancel this contract as
provided by law (Chapter 656 Code of Iowa). Upon completion of such

 

 

forfeiture, Buyers shall have not right of reclamation or compensation for money
paid or improvements made; but such payments and/or improvements if any, shall be
retained and kept by Sellers as compensation for the use of said property, and/or
as liquidated damages for breach of this contract; and upon completion of such
forfeiture, if the Buyers, or any other person or persons shall be in possession of
said real estate or any part thereof, such party or parties in possession shall at
once peacefully remove therefrom, or failing to do so may be treated as tenants
holding over, unlawfully after the expiration of lease, and may accordingly be
ousted and removed as such provided by law.

     b. If Buyers fail to timely perform this contract, Sellers, at their
option, may elect to declare the entire balance immediately due and payable
after such notice, if any, as may be required by Chapter 654, The Code.
Thereafter this contract may be foreclosed in equity and the court may appoint
a received to take immediate possession of the property and of the revenues
and income accruing therefrom and to rent or cultivate the same as the
receiver may deem best for the interest of al parties concerned, and such
received shall be liable to account to Buyers only for the net profits, after
application of rents, issues and profits from the costs and expenses of the
receivership and foreclosure and upon the contract obligation.

     It is agreed that if this contract covers less than ten (10) acres of
land, and in the event of the foreclosure of this contract and sale of the
property sheriffs sale in such foreclosure proceedings, the time of one year
for redemption from said sale provided by the statutes of the State of Iowa
shall be reduced to six (6) months provided the Sellers, in such action file
an election to waive any deficiency judgment against Buyers which may arise
out of the foreclosure proceedings; all to be consistent with the provisions
of Chapter 628 of the Iowa Code. If the redemption period is so reduced, for
the first three (3) months after sale such right of redemption shall be
exclusive to the Buyers, and the time periods in Sections 628.5, 628.15, and
628.16 of the Iowa Code shall be reduced to four (4) months.

     It is further agreed that the period of redemption after a foreclosure of
this contract shall be reduced to sixty (60) days if all of the three
following contingencies develop: (1) The real estate is less than ten (10)
acres in size; (2) the court finds affirmatively that the said real estate has
been abandoned by the owners and those persons personally liable under this
contract at the time of such foreclosure; and (3) Sellers in such action file
an election to waive any deficiency judgment against Buyers or their successor
in interest in such action. If the redemption period is so reduced, Buyers or
their successors in interest or the owner shall have the exclusive right to
redeem for the first thirty (30) days after such sale, and the time provided
for redemption by creditors as provided in Sections 628.5, 628.15 and 628.16
of the Iowa Code shall be reduced to forty (40) days. Entry of appearance by
pleading or docket entry by or on behalf of Buyers shall be presumption that
the property is not abandoned. Any such redemption period shall be consistent
with all of the provisions of Chapter 628 of the Iowa Code. This paragraph
shall not be construed to limit or otherwise affect any other redemption
provisions contained in Chapter 28 of the Iowa Code. Upon completion of such
forfeiture Buyers shall have no right of reclamation or compensation for money
paid, or improvements made; but such payments and for improvements if any
shall be retained and kept by Sellers as compensation for the use of
said property, and/or as liquidated damages for breach

 

 

of this contract; and upon completion of such forfeiture, if Buyers, or any
other person or persons shall be in possession of said real estate or any part
thereof, such party or parties in possession shall at once peacefully remove
therefrom, or failing to do so may be treated as tenants holding over,
unlawfully after the expiration of a lease, and may accordingly be ousted and
removed as such as provided by law.

	 	c.	 	If Seller fails to timely perform their obligations under this
contract, Buyer shall have the right to terminate this contract and have
all payments made returned to them.
	 
	 	d.	 	Buyer and Seller are also entitled to utilize any and all
other remedies or actions at law or in equity available to them.
	 
	 	e.	 	In any action or proceeding relating to this contract the
successful party shall be entitled to receive reasonable attorney’s fees
and costs as permitted by law.

     10. TIME IS OF THE ESSENCE. Time is of the essence in this contract.

     11. CONSTRUCTION. Words and phrases in this contract shall be construed as in the
singular or plural number, and as masculine, feminine or neuter gender, according to the
context.

     12. RELEASE OF RIGHTS. The Buyer hereby relinquishes all rights of dower, homestead and
distributive share in and to the property and waives all rights of exemption as to any of the
property.

     13. ADDITIONAL PROVISIONS. The property is presently subject to a farm rental agreement and
Buyer shall be entitled to one-half of said farm payment at the time of closing; however, in the
event said payment has not been paid to Seller by the tenant at or prior to the time of closing,
said payment shall be reimbursed to Seller upon receipt thereof by the Buyer.

	 	 	 	 	 
	Dated this 18th day of August, 2005.
	 	 	 	 
	 
	 	 	 	 
	 

	 	/s/Southern Iowa BioEnergy, LLC	 	 
	/s/ Fonda Brodsack
 

Fonda Brodsack, SELLER

	 	by /s/ J.R. Cornett, 2nd Vice Pres.
 

Southern Iowa BioEnergy, LLC,
	 	 
	 

	 	By: J.R. Cornett, Second Vice-Pres.,	 	 
	 

	 	SELLER	 	 

 

 

STATE OF IOWA, COUNTY OF Clarke, ss:

     On this 18 day of August, 2005, before me, the undersigned, a Notary Public
in and for said State, personally appeared Fonda Brodsack, a widow and single person, “Seller”,
to me known to be the identical person named in and who executed the foregoing instrument, and
acknowledged to me that she executed the same as her voluntary act and deed

	 	 	 	 	 
	BETTY A. CRAIG
	 	 	 	 
	Commission Number 150046

My Commission Expires

	 	/s/ Betty A. Craig
 

NOTARY PUBLIC
	 	 
	January 26, 2007
	 	 	 	 

     STATE OF IOWA, COUNTY OF Clarke, ss:

     On this 18 day of August, 2005, before me, the undersigned, a Notary Public in
and for said State, personally appeared J. R. Cornett, to me personally known, who being by me duly
sworn, did say that he is the Second Vice-President of said corporation; that said instrument was
signed and sealed on behalf of said corporation by authority of its Board of Directors; and that
the said Second Vice-President as such officer, acknowledged the execution of said instrument to be
the voluntary act and deed of said corporation, by it and by them voluntarily executed.

	 	 	 	 	 
	BETTY A. CRAIG
	 	 	 	 
	Commission Number 150046

My Commission Expires

	 	/s/ Betty A. Craig
 

NOTARY PUBLIC
	 	 
	January 26, 2007
	 	 	 	 

 

 

REAL
ESTATE TRANSFER — GROUNDWATER HAZARD STATEMENT

Please read the filing instructions on the reverse side BEFORE completing this form.

PART I — TO BE COMPLETED BY TRANSFEROR

	 	 	 	 	 	 	 	 	 
	TRANSFEROR	 	Name Fonda Brodsack
	 	 	 
	 

	 	Address
	 	324 North H Street
	 	Oskaloosa
	 	Iowa 52577
	 	 	 	 	 
	 

	 	 	 	Number or Street or RR
	 	City, Town or P.O.
	 	State Zip
	 
	 	 	 	 	 	 	 	 
	TRANSFEREE	 	Name Southern Iowa BioEnergy LLC
	 

	 	Address
	 	207 N. Main
	 	Leon
	 	Iowa 50144
	 	 	 	 	 
	 

	 	 	 	Number or Street or RR
	 	City, Town or P.O.
	 	State Zip

	 	 	 	 	 	 	 
	Address of Property Transferred

	 	see attached sheet	 	 	 	 
	 	 	 
	 

	 	Number or Street or RR
	 	City, Town or P.O.
	 	State Zip

	 	 	 
	Legal Description of Property

	 	see attached sheet
	 

	 	 
	 
	 	 
	 

	 	 	 	 	 
	1.	 	Wells (check one)
	 
	 

	 	þ
	 	There are no known wells situated on this property.
	 

	 	o
	 	There is a well or wells situated on this property. The type(s), location(s) and legal status are stated below.
	 
	 	 	 	 
	2.	 	Solid Waste Disposal (check one)
	 
	 

	 	þ
	 	There is no known solid waste disposal site on this property.
	 

	 	o
	 	There is a solid waste disposal site on this property, but no notice has been received from the Department of Natural

	 

	 	o
	 	Resources that the site is deemed to be potentially hazardous.
	 

	 	o
	 	There is a solid waste disposal site on this property which has been deemed to be potentially hazardous by the Department of Natural Resources. The location(s) of the site(s) is stated below.
	 
	 	 	 	 
	3.	 	Hazardous Wastes (check one)
	 
	 

	 	þ
	 	There is no known hazardous waste on this property.
	 

	 	o
	 	There is hazardous waste on this property and it is being managed in accordance with Department of Natural Resources rules.
	 
	 	 	 	 
	4.	 	Underground Storage Tanks (check one)
	 
	 

	 	o
	 	There are no known underground storage tanks on this property. (Note exclusions such as small farm and residential motor fuel tanks, most heating oil tanks, cisterns and septic tanks, in instructions.)
	 

	 	o
	 	There is an underground storage tank on this property. The type(s), size(s) and any known substance(s) contained are described below.
	 
	 	 	 	 
	5.	 	Private Burial Site (Check one)
	 
	 

	 	o
	 	There are no known private burial sites on this property.
	 

	 	o
	 	There is a private burial site on this property. The location(s) of the site(s) is stated below. The known identifying information of the decedent is stated below.

Information, if any, required by statements checked above:

Attachment for Additional Information? Y / N If so, number of pages                     

I HEREBY DECLARE THAT THE INFORMATION CONTAINED IN PART 1 OF THIS STATEMENT IS TRUE AND
CORRECT.

	 	 	 	 	 	 	 
	Signature:

	 	/s/ Fonda Brodsack
	 	Telephone Number
	 	(  )
	 

	 	 
	 	 	 	 
	 

	 	      Fonda Brodsack	 	 	 	 

 

PART II — TO BE COMPLETED BY RECORDER

	 	 	 	 	 	 	 	 	 	 	 
	Date of Instrument

	 	 

	 	Book/I.D.
	 	 

	 	Page/I.D.
	 	 

	 	 	 	 	 	 	 
	Date of Recording

	 	 

	 	City or Township
	 	 

Deed o            Contract o            County

	 	 	 	 	 
	 

	DNR form (November 02)

	 	FILE WITH RECORDER
	 	542-0960

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