Document:

[For
      the Southern Iowa BioEnergy LLC Letterhead]

    

    RESCISSION
      OFFER ELECTION FORM

     

    ____________,
      2007

    

      _______ I
        accept
        this rescission offer. Please refund the purchase price of the membership
        units
        to me plus interest.

     

      _______ I
        decline
        this rescission offer and will continue my investment. I understand that
        my
        right to sue under the securities laws of ___________________, with respect
        to
        the material changes to Southern Iowa BioEnergy LLC’s initial public offering is
        extinguished with this offer of rescission.

    

      
        	 
	 	 

	
                (Investor’s
                  name and signature)

              	 	
                (Date)

              

      

    

     

    In
      order
      to register your election, you must return this completed Rescission Offer
      Election Form to us at the following address:

    

    SOUTHERN
      IOWA BIOENERGY LLC

    Attn:
      William T. Higdon

    115
      S.
      Linden Street

      Lamoni,
        Iowa 50140

     

    IF
      YOU WISH TO CONFIRM YOUR SUBSCRIPTION, YOU MUST CHECK THE BOX AS INDICATED
      ABOVE
      AND RETURN THIS FORM TO US. YOU MAY CHANGE YOUR ELECTION AT ANYTIME PRIOR TO
      EXPIRATION OF THE RESCISSION OFFER. THE RESCISSION OFFER EXPIRES ON
      ______________, 2007. ONCE YOU RETURN THE COMPLETED FORM AND THE RESCISSION
      OFFER EXPIRES, YOUR ELECTION TO CONFIRM IS IRREVOCABLE, AND YOUR INVESTMENT
      WILL
      NOT BE RETURNED, UNLESS WE REJECT YOUR SUBSCRIPTION. IF THIS FORM IS NOT
      COMPLETED AND RECEIVED BY US WITHIN THIRTY (30) DAYS OF RECEIPT, YOUR RESCISSION
      RIGHTS ARE WAIVED, AND YOU WILL NOT BE ABLE TO WITHDRAW YOUR
      INVESTMENT.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: April
                17, 2006

            

    

    

    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 8-17-2007 and change the interest rate to 10.24%.
      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

              BioEnergy
                LLC

            	 	 	
              
                

              

              Alan
                Elefson, Treasurer of Southern Iowa 

              BioEnergy
LLCMay
      9,
      2007

    

    Mr.
      Bill
      Higdon

    Southern
      Iowa BioEnergy

    115
      S.
      Linden Street

    Lamoni,
      Iowa 50140

    

      
        	
                Subject:

              	
                Proposal
                  to Provide Professional Services

              
	 	
                Bio-Diesel
                  Plant Construction - Environmental Permitting
                  Assistance

              

      

    

     

    Dear
      Mr.
      Higdon:

    

    Thank
      you
      for the opportunity to submit a proposal to assist with environmental issues
      associated with the construction of a new bio-diesel plant in Osceola,
      Iowa.

    

    This
      proposal is for assistance with environmental permitting and compliance issues
      associated with the initial construction and operation of a 30,000,000-gallon
      bio-diesel facility. The anticipated services will include:

    

    
      	·  	
              Obtain
                required environmental pre-construction permits for the proposed
                facility.
                The anticipated permits include:

            

    

     

    
      	
            	·	
              Air
                Quality Permits - TEC has assumed that Prevention of Significant
                Deterioration (PSD) regulations will not apply. We anticipate that
                NSPS
                requirements associated with boilers, tanks, and equipment leaks
                will
                apply. 

            

    

    

    In
      addition, if the proposed facility has the potential to emit more than 10 tons
      of a hazardous air pollutant (classified as a major HAP facility), a number
      of
      air quality regulations will affect the construction and operation of the
      facility. If this is true, one or more NESHAP requirements will apply, including
      Subparts FFFF (Miscellaneous Organic NESHAPS) and DDDDD (Boiler NESHAP). TEC
      is
      familiar with these Subparts. We can also provide dispersion modeling analysis
      if requested by IDNR.

     

    
      Environmental
        Engineering, Permitting and Compliance
        Services 

      
        

      

      4950
        Pleasant Street ● West Des Moines, Iowa 50266-1783 ● Tel: 515-225-4303 ● Fax:
        515-225-4193

      http://www.tecenv.com

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	
            	
              
                TEC
                  can also prepare applicable Air Quality Operating Permits applications
                  (under Title V regulations assuming that the facility is major
                  for HAPs).
                  NOTE: the balance of this proposal assumed that the facility is
                  MINOR for
                  HAPS. The cost and complexity of the environmental regulations
                  will be
                  significantly reduced if the facility is minor for
                  HAPs.

              

            

    

    
      	 	 	 

    

    
      	 	·	Water Quality Pre-Construction Permits
              - NPDES
              discharge permits, storm water construction permits along with the
              associated pollution prevention plan are required prior to
              construction.

    

    
      	 	 	 

    

    
      	 	·	Wetlands Jurisdictional
              Review

    

    
      	 	 	 

    

    
      	 	·	AST Fire Code
              Review

    

    

    
      	·  	
              Develop
                environmental regulatory plans or documents prior to the facility
                start-up. These include:

            

    

     

    
      	
            	·	
              
                Spill
                  Prevention Control and Countermeasures Plans
                  (SPCC)

              

            

      	 	 	 

      	
            	·	
              
                Fire
                  Marshall AST Registration

              

            

      	 	 	 

      	 	·	Storm Water Operating Permits and Pollution
              Prevention Plans (if applicable for these
              facilities)

      	 	 	 

      	 	·	NPDES Discharge Permits (if
              required)

      	 	 	 

      	 	·	NSPS initial notification and related
              activities

    

     

    
      	·  	
              Assist
                with post-start up requirements. Plan and budget will be submitted
                prior
                to start up. It is anticipated that these services will
                include:

            

    

     

    
      	
            	·	
              
                Set
                  up monitoring and recordkeeping requirements as required by applicable
                  permits including Tier II and Form R reporting, if
                  needed.

              

            

    

    
      	 	 	 

    

    
      	
            	·	
              
                Assist
                  with stack testing
                  requirements.

              

            

    

    
      	 	 	 

    

    
      	 	·	Storm Water
              reporting.

    

    
      	 	 	 

    

    
      	 	·	NPDES discharge
              reporting.

    

    
      	 	 	 

    

    
      	 	·	Wastewater discharge analysis and
              reporting.

    

    
      	 	 	 

    

    
      	
            	·	
              
                Solid
                  waste disposal assistance.

              

            

    

    
      	 	 	 

    

    
      	
            	·	
              
                Alternative
                  fuels registration.

              

            

    

     

    
      
        
        

      

      
        Page2

        
          

        

      

      
        
        

      

    

     

    
      	 	·	Low sulfur fuel
              registration.

    

    
      	 	 	 

    

    
      	 	·	2007 Renewable Fuels Standards
              (RFS).

    

    
      	 	 	 

    

    
      	 	·	RCRA registration and reports. 

      	 	 	 

      	 	·	Assist with ongoing NSPS compliance
              such as
              Leak Detection and Repair (LDAR) program, annual stack testing, annual
              compliance reporting, etc.

    

     

    The
      following table summarizes estimated costs for each regulatory area. TEC will
      bill for actual costs based on the attached billing rate schedule.

    

      
        	
                Air
                  Quality Permitting

              	 	
                $

              	
                10,000

              	 
	
                Storm
                  Water Construction Permit and SWPP

              	 	
                $

              	
                2,500

              	 
	
                Wetlands
                  Jurisdictional Review

              	 	
                $

              	
                1,000

              	 
	
                AST
                  Fire Code Review

              	 	
                $

              	
                1,000

              	 
	
                SPCC
                  Plan

              	 	
                $

              	
                2,500

              	 
	
                Fire
                  Marshall AST Registration

              	 	
                $

              	
                1,000

              	 
	
                Storm
                  Water Operating Permit and SWPP

              	 	
                $

              	
                3,500

              	 
	
                NPDES
                  Permitting

              	 	
                $

              	
                7,500

              	 
	
                NSPS
                  Initial Notification Issues

              	 	
                $

              	
                500

              	 
	
                Set
                  up facility monitoring, recordkeeping and compliance
                  checklist

              	 	
                $

              	
                3,500

              	 
	
                On-going
                  LDAR assistance, if required

              	 	 	 	 
	
                (annual,
                  less monitoring)

              	 	
                $

              	
                5,000

              	 
	Stack
                Testing	
                 Based
                  on permits

              	 
	 	 	 	 	 

      

    

    *
      travel,
      if required, would be billed on a time and material basis

    

    Should
      you have any questions or require further information, please don’t hesitate to
      call.

     

    
      	
              Sincerely,

            	 	 	 
	 	 	 	 
	
              /s/
                David W. Thompson, Sr.

            	 	 	
            
	
              

              David
                W. Thompson, Sr., P.E.

              President

            	 	 	
            

    

    

      Accepted
        this 17th
        day
        of May 2007

    

    SOUTHERN
      IOWA BIOENERGY

      
        	 	 	 	 
	
                By      
                  /s/ William T. Higdon

                
                  

                

                Signature 

              	 	 	
              

    
      
        
        

      

      
        Page3

        
          

        

      

      
        
        

      

    

          

    THOMPSON
      ENVIRONEMTNAL CONSULTING, INC.

    

    HOURLY
      BILLING RATES

    Effective
      through 12/31/2007

    

      
        	
                Clerical

              	 	
                $

              	
                61.00/hr

              	 
	 	 	 	 	 
	
                Project
                  Technician

              	 	
                $

              	
                78.00

              	 
	 	 	 	 	 
	
                Engineer

              	 	
                $

              	
                87.00

              	 
	 	 	 	 	 
	
                Project
                  Engineer

              	 	
                $

              	
                92.00

              	 
	 	 	 	 	 
	
                Project
                  Manager

              	 	
                $

              	
                99.00

              	 
	 	 	 	 	 
	
                Vice
                  President

              	 	
                $

              	
                107.00

              	 
	 	 	 	 	 
	
                President

              	 	
                $

              	
                112.00

              	 
	 	 	 	 	 
	
                Reimbursable
                  Expenses

              	 	 	 	 
	 	 	 	 	 
	
                Travel
                  by Engineer’s Vehicle

              	 	
                $

              	
                0.70

              	 per
                mile
	 	 	 	 	 
	
                Duplicating

              	 	
                $

              	
                0.10

              	 per
                copy
	 	 	 	 	 
	
                Outside
                  Sub-Consultants

              	
                 Cost
                  plus 10

              	
                %

              

      

    

    

    Other
      costs incurred on the Project such as commercial travel, lodging, subsistence,
      and printing shall be at cost.

    

    The
      amount of any excise tax, value added tax, or sales tax that may be imposed
      shall be added to the compensation rate above.

     

    
      
        
        

      

      
        Page4

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