Document:

Exhibit
10.5

 

OPTION TO  PURCHASE

 

Agreement made this 14th day of March, 2003, by and
between Clarence L. White and Berniece F. White, husband and wife, hereinafter
“Owner” and East Kansas Agri-Energy, L.L.C., a Kansas Limited Liability
Company, hereinafter “Purchaser”.

 

In consideration of the
sung of $5,000.00 cash in hand paid from Purchaser to Owner, the receipt
of which is hereby acknowledged, the parties hereto agree as follows:

 

(1) Owner grants, bargains and conveys to Purchaser
the option to purchase a tract consisting of approximately ten (10) acres
located in the following described tract of real property situated in Anderson
County, Kansas, to-wit:

 

The Southwest Quarter (SW/4) of the Southeast Quarter
(SE/4) of Section Thirty (30), Township Twenty (20) South, Range Twenty (20)
East of the Sixth Principal Meridian.

 

(2) The purchase price shall be $9,000.00 per acre,
based upon the size of the tract as to be determined by survey, with Purchaser
to receive credit against the purchase price for the amount paid for this
option as well as the option dated March 14, 2002..

 

(3) The term of this option shall be for twelve (12)
months from the date hereof.

 

(4) Purchaser shall exercise this option to purchase
by delivering a written notice of intent to exercise the option to the Owner at
his residence in Gannett, Kansas, no later than five o’clock p.m. (5:00 p.m.)
on March 13, 2003. Owner and Purchaser shall thereafter enter into a binding
contract for the sale and purchase of the tract of real estate describes
herein, which contract shall provide for a closing date and other essential
terms to the contract.

 

(5)  The
contract for the sale of this real estate shall contain the following
provisions:

 

(A) The cost of surveying
the tract to be purchased together with all title
insurance shall be paid by Purchaser.

 

(B) The purpose of this
option to purchase is to provide Purchaser with a tract of sufficient size to
allow the placement of a railroad spur over and across the tract to provide
access from Purchaser’s anticipated Ethanol Plant to the existing railroad
track located in the city of Garnett, Kansas. It is anticipated that this will
require approximately ten (10) acres of ground from Owner, however, after
Purchaser determines the amount of ground required, it will through its survey
cause the boundaries of the tract to be squared off, such that the Western
boundary of Owner’s remaining property will be a straight line running due
North and South,

 

(C) Purchaser will be responsible for replacing the Owner’s West
boundary fence at Purchaser’s expense with a fence approximately equal to the new fence constructed by City o£ Gannett
Sewer Project, which is also located on property formerly owned by Owner.

 

(D) Purchaser will also
pay to replace the current loafing barn and concrete pad, together with a
potable water hydrant and a dusk to dawn pole light. The barn will be moved to
the East of its present site and will be provided with water and electric
utilities.

 

(6) This Option to Purchase cannot be assigned by
Purchaser without the written consent of Owner.

 

(7) Time is of the essence in the performance of this
agreement.

 

 

Option to Purchase

 

(8) This agreement shall be binding upon the heirs,
successors and assigns of Owner and Purchaser.

 

IN WITNESS WHEREOF, the parties hereto have set their hands on the day and date above
written.

 

	
  OWNER:

  	
  PURCHASER: EAST

  KANSAS AGRI-ENERGY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Clarence L. White

  	
   

  	
  By:

  	
  /s/ William R. Pracht

  	
   

  
	
  Clarence L. White

  	
  William R. Pracht, Chairperson

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Berniece F. White

  	
   

  	
   

  	
   

  
	
  Berniece F. White

  	
   

  	
   

  

 

 

STATE OF
KANSAS             )

SS:

COUNTY OF ANDERSON  )

 

The foregoing  instrument
was acknowledged before me this 13th day of March, 2003, by Clarence
L. White and Berniece F. White, husband and wife.

 

	
   

  	
  /s/ Daniel D. Schulte

  	
   

  
	
  Term Expires

  	
  Notary Public

  	
   

  
	
  03-01-07

  	
   

  

 

	
  STATE OF KANSAS

  
	
  SS:

  	
  DANIEL
  D. SCHULTE

  Notary Public - State (1f Kan¢as

  my Appt.   03-01-07

  
	
  COUNTY OF ANDERSON   )

  

 

The foregoing instrument
was acknowledged before me this 13th day of March, 2003, by William
R. Pracht, Chairperson of East Kansas Agri-Energy, L.L.C., a Kansas Limited
Liability Company, on behalf of the limited liability company.

 

 

	
   

  	
  /s/ Daniel D. Schulte

  	
   

  
	
  Term Expires

  	
  Notary Public

  	
   

  
	
  03-01-07

  	
   

  
	
   

  	
   

  
	
   

  	
  [SEAL]

  

 

2Exhibit
10.6

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into
as of the 10th day of February, 2003, by and between EAST KANSAS AGRI-ENERGY, LLC (“EKAE”) and
JILL A. ZIMMERMAN (“Zimmerman”).

 

WHEREAS,
EKAE intends to develop, finance and construct an ethanol
plant in or near Garnett, Kansas (the “Project”); and

 

WHEREAS,
Zimmerman has valuable experience in the Kansas corn and grain sorghum
industries, and related industries;

 

WHEREAS,
EKAE wishes to employ Zimmerman in connection with the
Project, and Zimmerman desires to accept such employment by EKAE, upon the
terms and conditions herein set forth.

 

NOW,
THEREFORE, in consideration of the mutual promises and
covenants contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

 

1.                                       Employment.  EKAE hereby employs Zimmerman to provide
ethanol project development services (the “Services”) and Zimmerman hereby
accepts such employment upon the terms and conditions hereinafter set forth.

 

2.                                       Term;
Termination.  The term of employment
under this Agreement shall commence effective February 10, 2003 and shall
continue, unless sooner terminated as provided herein, until March 31,
2004.  Either party may terminate this
Agreement at any time, with or without cause, upon delivery of oral or written
notice to the other party indicating an intention to terminate the Agreement.  In the event either party exercises its
right to terminate this Agreement, Zimmerman shall be entitled to payment for
Services actually rendered and completed prior to such notice to terminate.

 

3.             Compensation. 
For all services rendered to EKAE during the term of this agreement,
Zimmerman shall be paid an annual salary of $37,700.00, which shall be paid in
accordance with EKAE’s normal payroll practices.

 

4.                                       Benefits.  During the term of this Agreement, EKAE
shall pay to Zimmerman the amount of $101.75 per month as a regular stipend
intended to offset health insurance costs.

 

5.                                       Confidentiality.  In providing Services hereunder, Zimmerman
may have access to documents and information relating to EKAE and its
properties and business operations (hereafter referred to as “Confidential
Information”).  All such Confidential
Information shall at all times during the term of this Agreement and for a
period of two (2) years thereafter, be treated as confidential and sensitive
proprietary business information. 
Zimmerman shall not, unless compelled by legal process, except in
accordance with the express terms of this Agreement or with the prior written
consent of EKAE, disclose or permit the disclosure of any Confidential
Information to any person or entity whatsoever, unless such information is
otherwise readily available in the public domain.

 

6.                                       Related
Services and Compensation.  Nothing
in this Agreement shall prohibit Zimmerman from otherwise serving as an officer
or director of EKAE during or following the term of this Agreement and
receiving and accepting compensation or reimbursements related to her services
as an officer or director.

 

 

7.                                       Miscellaneous.  Except as otherwise provided herein, any and
all notices and reports required or contemplated hereunder shall be in writing
and shall be sent in a commercially reasonable manner under the circumstances,
addressed to the parties at their respective addresses in Garnett, Kansas.  This Agreement shall be governed by and
construed in accordance with Kansas law, and shall not be modified except in a
writing signed by the parties.  This
Agreement is binding upon the parties and their heirs, representatives, agents,
successors and permitted assigns. 
Neither this Agreement or any parties’ rights, duties, responsibilities
or obligations shall be assigned by either party, in whole or in part, without
the prior written consent of the other party hereto.  If any provision herein is held to be invalid or
unenforceable,  in whole or in part, the
remaining provisions shall not be affected. 
No omission or delay by either party in enforcing any right or remedy or
in requiring any performance hereunder shall constitute a waiver of any such
right, remedy or required performance, nor shall it affect the right of either
party to enforce such provision thereafter. 
The headings contained herein are for convenience only and shall not be
considered in interpreting or construing this Agreement.  This Agreement may be executed in
counterparts.

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this EMPLOYMENT AGREEMENT as of the date first
above written.

 

	
  EAST KANSAS
  AGRI-ENERGY, LLC

  	
  JILL A. ZIMMERMAN

  
	
   

  	
   

  
	
  By:

  	
  /s/ William R. Pracht

  	
   

  	
   /s/ Jill
  Zimmerman

  	
   

  
	
   

  	
  William
  R. Pracht

  	
   

  	
  Jill Zimmerman

  
	
  Its:

  	
  Chairman/President

  	
   

  	
   

  
	
   

  	
   

  
						

 

2

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