Document:

Exhibit 10.16

 

	
  Preparer Information 

  	
   

  	
  Michael J. Green

  	
   

  	
  4500 Westown Pkwy., Ste. 277 West

  	
   

  	
  Des Moines

  	
   

  	
  (515) 242-2431

  
	
   

  	
   

  	
  Individual’s Name

  	
   

  	
  Street Address

  	
   

  	
  City

  	
   

  	
  Phone

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  
	
  Address
  tax statements to:

  	
   

  	
  SPACE ABOVE THIS LINE

  FOR RECORDER

  
											

 

REAL ESTATE CONTRACT-INSTALLMENTS

 

IT
IS AGREED this 18th day of October, 2005, by and between Doris Gwen Ogden, a
resident of Fillmore County, State of Nebraska, Seller; and Advanced BioEnergy,
LLC, a Delaware limited liability company of the County of Fillmore, State of
Nebraska, Buyer;

 

That
the Seller, as in this contract provided, agrees to sell to the Buyer, and the
Buyer in consideration of the premises, hereby agrees with the Seller to
purchase the following described real estate situated in the County of Fillmore,
State of Nebraska, to-wit:

 

Southeast
quarter of Section 36-8-3, being 148 acres, Fillmore County, Nebraska,
including the well and pump operation located thereon.

 

together
with any easements and servient estates appurtenant thereto, but with such reservations
and exceptions of title as maybe below stated, all upon the terms and
conditions following:

 

1.
TOTAL PURCHASE PRICE. The Buyer
agrees to pay for said property the total of $740,000.00 due and payable at
Fillmore County, Nebraska, as follows:

 

(a)               DOWN PAYMENT of
$74,000.00 consisting of $10,000.00 option money paid to Seller and $64,000.00,
RECEIPT OF WHICH IS HEREBY
ACKNOWLEDGED; and

 

(b)              BALANCE OF PURCHASE PRICE. $666,000.00 plus interest at the rate of 7% per annum paid quarterly
until the date Buyer’s financing closes and is funded, but not later than April 15’h, 2006, at which time the entire
unpaid balance with interest shall be due and payable.

 

2.
POSSESSION. Buyer, concurrently
with due performance on its part shall be entitled to possession of said
premises on the 18th day of October, 2005; and thereafter so long as it shall
perform the obligations of this contract. The farm ground rent for the crop
harvested in 2005 belongs to the Seller. The house rent through October 31,
2005 belongs to the Seller. The house rent from November 1, 2005 going
forward, belongs to the Buyer.

 

3.
IMPROVEMENTS. Seller acknowledges
and agrees that Buyer shall have the unrestricted right to perform extensive
excavation and grading, in its sole discretion, on the subject property. All
top soil must be stored

 

 

on
the farm real estate until this contract is fulfilled. Buyer covenants that any
new concrete placed on the subject property shall, in the event of uncured
default, be completely removed so that the property will be returned to its
current tillable farm land condition.

 

4.               TAXES. Seller shall pay all real estate taxes
prorated to the closing date herein and any unpaid taxes thereon payable in
prior years. Buyer shall pay any taxes not assumed by Seller 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 16
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 Buyer is purchasing a lot with newly built
improvements).

 

5.               SPECIAL ASSESSMENTS. Seller shall pay the special assessments
against this property which are a lien thereon as of the date of closing.

 

Buyer,
except as above stated, shall pay all subsequent special assessments and
charges, before they become delinquent.

 

6.               MORTGAGE. Any mortgage or encumbrance of a similar
nature against the said property shall be timely paid by Seller so as not to
prejudice the Buyer’s equity herein. Should Seller fail to pay, Buyer may pay
any such sums in default and shall receive credit on this contract for such
sums so paid. MORTGAGE BY SELLER. Seller, its successors in interest or assigns
may, and hereby reserves the right to at any time mortgage its right, title or
interest in such premises or to renew or extend any existing mortgage for any
amount not exceeding 75% 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. Buyer hereby
expressly consents to such a mortgage and agree to execute and deliver all
necessary papers to aid Seller in securing such a mortgage which shall be prior
and paramount to any of Buyer’s then rights in said property. DEED FOR BUYER
SUBJECT TO MORTGAGE. If Buyer has reduced the balance of this contract to the
amount of any existing mortgage balance on said premises, it may at its 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 Seller, at its option,
any time before Buyer has made such a mortgage commitment, may reduce or pay
off such mortgage. Seller agrees that it 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 Seller or its
assigns in said real estate; and if Seller 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 Buyer for
the use and benefit of the Buyer.

 

7.               INSURANCE. Except as may be otherwise included in the
last sentence of paragraph 1(b) above, Buyer as and from said date of
possession, shall constantly keep in force insurance, premiums therefore to be
prepaid by Buyer (without notice or demand) against loss by fire, tornado and
other hazards, casualties and contingencies as Seller 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 Seller 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 Seller and Buyer as their interests may appear. In the event of any
such casualty loss, the insurance proceeds may be used under the supervision of
the Seller 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.

 

8.               CARE OF PROPERTY. Buyer 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. Buyer shall not make any
material alteration in said premises without the written consent of the Seller
subject to the provisions of Paragraph 3 above. Buyer shall not use or permit
said premises to be used for any illegal purpose.

 

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

 

2

 

10.         ADVANCEMENT BY SELLER. If Buyer fails to pay such taxes, special
assessments and insurance and effect necessary repairs, as above agreed, Seller
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 Seller, be added to the
principal amount due hereunder and so secured.

 

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

 

12.         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) Seller
shall give Special Warranty as to the period after equitable title passes to
Buyer; (f) Spouse if not titleholder, need not join in any warranties of
the deed unless otherwise stipulated.

 

13.         DEED AND TITLE INSURANCE,
BILL OF SALE. If all said sums of money and interest are paid to
Seller during the life of this contract, and all other agreements for
performance by Buyer has been complied with, Seller will execute and deliver to
Buyer a Warranty Deed conveying said premises in fee simple pursuant to and in
conformity with this contract and Seller will at this time deliver to Buyer a
title policy showing merchantable title, in conformity with this contract. Such
policy shall show title thereto in Seller as of the date of this contract,
subject only to permitted exceptions. This contract supersedes the previous
written o r of Buyer to buy the above described property which was accepted by
Seller on the 20th   day
of October,  2005. If any personal
property is a part of this agreement, then upon due performance by Buyer,
Seller shall execute and deliver a Bill of Sale consistent with the terms of
this contract. Seller shall pay all taxes on any such personal property payable
in 2005, and all taxes thereon payable prior thereto.

 

14.         FORFEITURE. If Buyer (a) fails to make the payments
aforesaid, or any part thereof, as same become due; or (b) fails 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) fails to keep the property insured; or (d) fails
to keep it in reasonable repair as herein required; or (e) fails to
perform any of the agreements as herein made or required; then Seller, in
addition to any and all other legal and equitable remedies which it may have,
at its option, may proceed to forfeit and cancel this contract as provided by
law. Upon completion of such forfeiture, Buyer 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 Seller 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 Buyer
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.

 

15.         FORECLOSURE AND REDEMPTION. If Buyer fails to timely perform this
contract, Seller, at its option, may elect to declare the entire balance
immediately due and payable after such notice, if any, as may be required by
law. 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 Buyer 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.

 

16.         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 Seller, or in any other case permitted by law in which
attorney’s fees may be collected from Buyer, or imposed upon it, or upon the
above described property, Buyer agrees to pay reasonable attorneys’ fees.

 

17.         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,

 

3

 

and/or
on cash reasonably advanced by either party
pursuant to the terms of this contract, as protective disbursements.

 

18.         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 a 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.

 

19.         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 personalty shall be considered indivisible with the real estate
above described; and any such termination of Buyer’s rights in said real estate
shall concurrently operate as the forfeiture or foreclosure hereof against all
such personal property.

 

20.         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 ‘Seller”.

 

21.         NOTICES. Any notice, demand or other document which
either party is required or may desire to give or deliver to or make upon the
other party shall be given in writing and served either personally or given by
prepaid United States certified mail, return receipt requested, and addressed
to the following addresses:

 

	
  If
  to Optionor:

  	
   

  	
  Doris Gwen Ogden c/o

  
	
   

  	
   

  	
  Thomas P. Boyer

  
	
   

  	
   

  	
  Farmers State Bank

  
	
   

  	
   

  	
  P.O. Box 16

  
	
   

  	
   

  	
    Fairmont, Nebraska 68354

  
	
   

  	
   

  	
   

  
	
  If to Optionee:

  	
   

  	
   Advanced BioEnergy, LLC

  
	
   

  	
   

  	
  c/o Brown, Winick, Graves, Gross, Baskerville

  
	
   

  	
   

  	
  and Schoenebaum, P.L.C. Attn: William E. Hanigan

  
	
   

  	
   

  	
  666 Grand Avenue, Suite 2000

  
	
   

  	
   

  	
  Des Moines, Iowa 50309-2510

  

 

Either
party hereto may designate a different address for itself, or additional
persons to whom copies thereof are to be sent, by notice similarly given.

 

22.         OPTION. The execution of this Contract is the
fulfillment of one certain Option Agreement between the parties hereto executed
on the               day
of                   ,
2005.

 

4

 

Executed
in duplicate or triplicate

 

	
  DORIS
  GWEN OGDEN

  	
  ADVANCED
  BIOENERGY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/
  Doris Gwen Ogden

  	
   

  	
  /s/
  Revis L. Stephenson

  	
   

  
	
   

  	
  SELLER

  	
   

  	
   

  	
  BUYER

  	
   

  
	
   

  	
   

  
	
  P.O. Box
  595

  	
  Chairman
  Advanced BioEnergy

  
	
   

  	
   

  
	
  /s/
  Fairmont, NE 68354

  	
   

  	
  137
  N. 8th St. Geneva, NE 68361

  	
   

  
	
  SELLER’S ADDRESS

  	
  BUYER’S ADDRESS

  
	
   

  	
   

  
	
  STATE
  OF Nebraska          )

  	
   

  
	
   

  	
  )SS:

  	
   

  
	
  COUNTY
  OF Fillmore       )

  	
   

  
								

 

On
this 18th day of October, 2005, before me, the undersigned, a Notary
Public in and for the State of Nebraska personally appeared Doris Gwen Ogden to
me known to be the identical person named in and who executed the within and
foregoing instrument and acknowledged that she executed the same as her voluntary
act and deed.

 

	
  [GENERAL
  NOTARY – State of Nebraska]

  	
   

  
	
  [

  	
  JEAN
  ENGLE

  	
  ]

  	
  /s/
  Jean Engle

  	
   

  
	
  [

  	
  My
  Comm. Exp. April 1, 2006

  	
  ]

  	
  Notary
  Public in and for the State of NE

  
	
   

  	
   

  	
   

  	
   

  
	
  STATE
  OF Nebraska          )

  	
   

  
	
   

  	
  )SS:

  	
   

  
	
  COUNTY
  OF Fillmore       )

  	
   

  
							

 

On
this 18th day of October, 2005, before me, the undersigned, a Notary
Public in and for the State of Nebraska, personally appeared Revis L.
Stephenson III to me personally known, who being by me duly sworn, did say that
he is the Chariman of Advanced BioEnergy, LLC, a limited liability company,
executing the within and foregoing instrument; that no seal has been procured
by the aid limited liability company; that said instrument was signed on behalf
of the limited liability company by authority of its members; and that Revis L.
Stephenson III as Chariman, acknowledged the execution of the foregoing
instrument to be the voluntary act and deed of the limited liability company,
by it and by him voluntarily executed.

 

 

	
  [GENERAL
  NOTARY – State of Nebraska]

  	
   

  
	
  [

  	
  JEAN
  ENGLE

  	
  ]

  	
  /s/
  Jean Engle

  	
   

  
	
  [

  	
  My
  Comm. Exp. April 1, 2006

  	
  ]

  	
  Notary
  Public in and for the State of NEExhibit 10.17

 

	
  Preparer Information 

  	
   

  	
  Michael J. Green

  	
   

  	
  4500 Westown Pkwy., Ste. 277 West

  	
   

  	
  Des Moines

  	
   

  	
  (515) 242-2431

  
	
   

  	
   

  	
  Individual’s Name

  	
   

  	
  Street Address

  	
   

  	
  City

  	
   

  	
  Phone

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  
	
  Address
  tax statements to:

  	
   

  	
  SPACE ABOVE THIS LINE FOR RECORDER

  
											

 

 

REAL ESTATE CONTRACT-INSTALLMENTS

 

IT
IS AGREED this 6th day of October, 2005, by and between WDB, Inc., a
Nebraska corporation of the County of Fillmore, State of Nebraska, Seller; and
Advanced BioEnergy, LLC, a Delaware limited liability company of the County of Fillmore,
State of Nebraska, Buyer;

 

That
the Seller, as in this contract provided, agrees to sell to the Buyer, and the
Buyer in consideration of the premises, hereby agrees with the Seller to
purchase the following described real estate situated in the County of Fillmore, State of Nebraska, to-wit:

 

[CHANGE
– RLS, WDB]

 

112
acres, further described as the North half of the Northeast quarter and
Southwest quarter of Northeast quarter of Section 36-8-3, less railroad
right-of-way and including the well and pump operation located thereon

 

together
with any easements and servient estates appurtenant thereto, but with such
reservations and exceptions of title as may be below stated, all upon the terms
and conditions following:

 

1. TOTAL PURCHASE PRICE. The Buyer agrees
to pay for said property the total of $672,000.00
due and payable at Fillmore County, Nebraska, as follows:

(a)                   DOWN
PAYMENT of $67,200.00 consisting of $10,000.00 option
money paid to Seller and $57,200.00, due and payable at Closing; and

 

(b)                  BALANCE OF PURCHASE PRICE. $604,800.00
plus interest at the rate of 7% per annum paid quarterly until the date Buyer’s financing closes and is funded,
or April 15, 2006, whichever occurs first, at which time the entire unpaid
balance with interest shall be due and payable.

 

2. POSSESSION AND CLOSING. Buyer, concurrently with due performance on its
part stall be entitled to possession of said premises at Closing which shall
occur on October 20, 2005; and thereafter so long as it shall perform the
obligations of this contract. Seller shall immediately terminate the current
lease burdening the subject property.

 

 

3.               IMPROVEMENTS. Seller acknowledges and agrees that Buyer
shall have the unrestricted right to perform extensive excavation and grading,
in its sole discretion, on the subject property. All top soil must be stored on
the farm real estate until this Contract is fulfilled. Buyer covenants that any
new concrete placed on the subject 5 property
shall, in the event of uncured default, be completely removed so that the
property will be returned to its current tillable farm land condition.

[CHANGE
– for 2005 and all prior years- RLS, WDB]

4.               TAXES. Seller shall pay all real estate taxes prorated to the closing date herein and any unpaid taxes thereon payable in prior years.  Buyer
shall pay any taxes not assumed by Seller 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 May 1 and September 1
of each year. Any proration of taxes shall be based upon the taxes for the year
currently payable unless the parties state otherwise.

 

5.               SPECIAL ASSESSMENTS. Seller shall pay the special assessments
against this property which are a lien thereon as of the date of closing.

 

Buyer,
except as above stated, shall pay all subsequent special assessments and
charges, before they become delinquent.

 

6.               MORTGAGE. Any mortgage or encumbrance of a similar
nature against the said property shall be timely paid by Seller so as not to
prejudice the Buyer’s equity herein. Should Seller fail to pay, Buyer may pay
any such sums in default and shall receive credit on this contract for such sums
so paid. MORTGAGE BY SELLER. Seller, its successors in interest or assigns may,
and hereby reserves the right to at any time mortgage its right, title or
interest in such premises or to renew or extend any existing mortgage for any
amount not exceeding 75% 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. Buyer hereby
expressly consents to such a mortgage and agree to execute and deliver all
necessary papers to aid Seller in securing such a mortgage which shall be prior
and paramount to any of Buyer’s then rights in said property.
DEED FOR BUYER SUBJECT TO MORTGAGE. If Buyer has reduced the balance of this
contract to the amount of any existing mortgage balance on said premises, it
may at its 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
Seller, at its option, any time before Buyer has made such a mortgage
commitment, may reduce or pay off such mortgage. Seller agrees that it 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 Seller or its assigns in said real estate; and if Seller 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 Buyer for the use and benefit of the Buyer.

 

7.               INSURANCE. Except as may be otherwise included in the
last sentence of paragraph 1(b) above, Buyer as and from said date of
possession, shall constantly keep in force insurance, premiums therefore to be
prepaid by Buyer (without notice or demand) against loss by fire, tornado and
other hazards, casualties and contingencies as Seller 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 Seller 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 Seller and Buyer as their interests may appear. In the event of any
such casualty loss, the insurance proceeds may be used under the supervision of
the Seller 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.

 

8.               CARE OF PROPERTY. Buyer 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. Buyer shall not make any
material alteration in said premises without the written consent of the Seller
subject to the provisions of Paragraph 3 above. Buyer shall not use or permit
said premises to be used for any illegal purpose.

 

2

 

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

 

10.         ADVANCEMENT BY SELLER. If Buyer fails to pay such taxes, special
assessments and insurance and effect necessary repairs, as above agreed, Seller
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 Seller, be added to the
principal amount due hereunder and so secured.

 

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

 

12.         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) Seller shall
give Special Warranty as to the period after equitable title passes to Buyer; (f) Spouse
if not titleholder, need not join in any warranties of the deed unless
otherwise stipulated.

 

13.         DEED AND TITLE INSURANCE, BILL OF SALE. If all said sums of money and interest are
paid to Seller during the life of this contract, and all other agreements for
performance by Buyer has been complied with, Seller will execute and deliver to
Buyer a Warranty Deed conveying said premises in fee simple pursuant to and in
conformity with this contract and Seller will at this time deliver to Buyer a
title policy showing merchantable title, in conformity with this contract. Such
policy shall show title thereto in Seller as of the date of this contract,
subject only to permitted exceptions. This contract supersedes the previous
written offer of Buyer to buy the above described property which was accepted
by Seller on the 18th day of February, 2005. If any personal property is a part
of this agreement, then upon due performance by Buyer, Seller shall execute and
deliver a Bill of Sale consistent with the terms of this contract. Seller shall
pay all taxes on any such personal property payable in 2005, and all taxes
thereon payable prior thereto.

 

14.         FORFEITURE. If Buyer (a) fails to make the payments
aforesaid, or any part thereof, as same become due; or (b) fails 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) fails
to keep the property insured; or (d) fails to keep it in reasonable repair
as herein required; or (e) fails to perform any of the agreements as
herein made or required; then Seller, in addition to any and all other legal
and equitable remedies which it may have, at its option, may proceed to forfeit
and cancel this contract after written notice of default is delivered to Buyer
and the passage of a thirty day grace period allowing Buyer to cure default
that Seller could elect to cancel the Contract, file the Quit Claim Deed
canceling any equitable interest created in the Buyer by virtue of the
installment contract, and be allowed to treat any payments made under the
installment contract as rent. Upon completion of such forfeiture, Buyer 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 Seller 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 Buyer 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.

 

15.         FORECLOSURE AND REDEMPTION. If Buyer fails to timely perform this
contract, Seller, at its option, may elect to declare the entire balance
immediately due and payable after such notice, if any, as may be required by
law. 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 Buyer 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.

 

3

 

16.         ATTORNEY’S FEES. In case of any action, or in any
proceedings in any Court to collect any slims payable or secured herein,
or to protect the lien or title herein of Seller, or in any other case
permitted by law in which attorney’s fees may be collected from Buyer, or
imposed upon it, or upon the above described property, Buyer agrees to pay
reasonable attorneys’ fees.

 

17.         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.

 

18.         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 a
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. Buyer
acknowledges Seller’s intent to participate in a 1031 reverse like kind
exchange at Seller’s sole cost and expense.

 

19.         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 personalty shall be considered
indivisible with the real estate above described; and any such termination of Buyer’s rights in said real estate shall
concurrently operate as the forfeiture or foreclosure hereof against all such
personal property.

 

20.         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 ‘Seller”.

 

21.         NOTICES. Any notice, demand or other document which
either party is required or may desire to give or deliver to or make upon the
other party shall be given in writing and served either personally or given by
prepaid United States certified mail, return receipt requested, and addressed
to the following addresses:

 

	
  If
  to Optionor:

  	
  WDB, Inc.

  
	
   

  	
  c/o Kelly Thomas

  
	
   

  	
  Svehla Law Offices

  
	
   

  	
  408 Platte Avenue, Suite A York, Nebraska 68467

  
	
   

  	
   

  
	
  If to Optionee:

  	
  Advanced BioEnergy, LLC

  
	
   

  	
  c/o Brown, Winick, Graves, Gross, Baskerville

  
	
   

  	
  and Schoenebaum, P.L.C.

  
	
   

  	
  Attn: William E. Hanigan

  
	
   

  	
  666 Grand Avenue, Suite 2000

  
	
   

  	
  Des Moines, Iowa 50309-2510

  

 

Either
party hereto may designate a different address for itself, or additional
persons to whom copies thereof are to be sent, by notice similarly given.

 

22.         OPTION. The execution of this Contract is the
fulfillment of one certain Option Agreement between the parties hereto executed
on the 18th day of February, 2005.

 

23.         ESCROW. Simultaneous with the execution of this
Contract, the Seller shall fully execute a Warranty Deed as required under the
Title Insurance Policy issued as to this transaction and the Buyer shall
execute a Quit Claim Deed in a form approved by Seller, both to be deposited in
escrow for release pursuant to paragraphs 13 and 14 above, all as set forth in
the duly executed Escrow Agreement attached hereto.

 

4

 

Executed
in duplicate or triplicate

 

	
  WDB
  Inc. by /s/ Wm. D. Bettger, President

  	
   

  	
  Advanced
  BioEnergy LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/
  Revis L. Stephenson III

  	
   

  
	
   

  	
  SELLER

  	
   

  	
   

  	
  BUYER

  	
   

  
	
   

  	
  Chairman
  of the Board/Manager

  
	
  816
  N St Geneva, NE 68361

  	
   

  	
   

  	
   

  
	
  SELLER’S ADDRESS

  	
  BUYER’S ADDRESS

  
	
   

  	
   

  
	
  STATE
  OF Nebraska, York County, ss;

  	
   

  
										

 

On
this 20 day of October, 2005, before me, the undersigned, a Notary Public in
and for said State, personally appeared Wm. D. Bettger, President of WDB, Inc.
and REvis Stephenson, Manager of Advanced BioEnergy, LLC to me known to be the
identical persons named in and who executed the within and foregoing
instrument, and acknowledged that they executed the same as their voluntary act
and deed.

 

	
  [GENERAL
  NOTARY – State of Nebraska]

  	
   

  
	
  [

  	
  Linda
  Duerksen

  	
  ]

  	
  /s/Linda
  Duerksen

  	
   

  
	
  [

  	
  My
  Comm. Exp. Oct. 25, 2005

  	
  ]

  	
  Notary
  Public in and for said State

  
						

 

5

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