OPTION TO PURCHASE REAL ESTATE
EXHIBIT 10.4
OPTION
TO PURCHASE REAL ESTATE
TO PURCHASE REAL ESTATE
Xxxxxx X. Xxxxxxx and Xxxxxx X. Xxxxxxx, husband and wife, GRANTOR, whether one or more, for
valuable consideration, hereby give and grant unto NEK-SEN Energy, LLC, GRANTEE, the option to
purchase the following described real estate situated in Xxxxxxxxxx County, Nebraska:
That part of the Northwest Quarter of the Northwest Quarter (NW1/4 NW1/4) lying
North of the CB&O Railroad Right of Way in Section 17, Township 1 North, Range 16
East of the 6th P.M., Xxxxxxxxxx County, Nebraska, containing 4.5 acres more or
less;
SUBJECT to the rights of owners of severed mineral interest shown of record;
and,
The South 20.5 acres more or less of the W1/2 SW1/4, Section 8, Township 1 North,
Range 16, East of the 6th P.M., Xxxxxxxxxx County, Nebraska;
on the following terms and conditions:
1. Term. XXXXXXX has paid to GRANTOR the sum of $1,000.00, the receipt of which is
hereby acknowledged for an option to purchase the above real estate until August 31, 2007. The
option payments shall be credited against the purchase price if the option is exercised.
2. Exercise of Option. GRANTEE shall exercise the option by giving GRANTOR written
notice of its intent to purchase to Grantor, no later than August 31, 2007. Closing shall be
within 60 days of the exercise of the option but not later than October 31, 2007 unless otherwise
agreed to by the parties in writing.
3. Purchase Price. The purchase price shall be the sum of $7,500.00 per acre as
surveyed. GRANTEE shall pay the balance of the purchase price, less credits for all option
payments to GRANTOR at closing, concurrently with delivery of the deed of conveyance from GRANTOR
to GRANTEE.
4. Survey. GRANTEE shall at its expense have the property surveyed prior to the
exercise of the option and such
NEK-SEN Energy, LLC Option to Purchase Real Estate: 1
surveyed description shall be substituted for the above description
of the real estate. Total purchase price shall be based upon the acres shown on said survey.
5. Conveyance. GRANTOR shall convey the real estate with marketable title to GRANTEE
by good and sufficient warranty deed,
subject to existing roads and existing easements and rights of way of record and visible easements.
Grantee shall pay the cost of title work and deed preparation. GRANTOR shall pay the cost of any
document transfer tax. XXXXXXX shall pay the cost of recording the Deed.
6. Possession. GRANTEE shall receive possession of the subject premises from GRANTOR
effective at closing.
7. Taxes and Crop Expenses. GRANTOR shall pay all real estate taxes assessed for the
year immediately prior to the date of closing of the option and all prior years. The GRANTEE shall
pay all of real estate taxes on the optioned portion of the property for the year in which the
closing occurs unless closing is after Grantor received the crop or arrangements are made for
Grantor to receive the crop in which case Grantor shall pay the real estate taxes for that year.
If closing is at a time during the year such that GRANTOR has incurred expenses for the crop, but
has not received its crop at the time of closing, GRANTEE shall reimburse GRANTOR for all such
expenses, and shall pay all real estate taxes for the year in which closing occurs. Cost shall be
reimbursed at actual expense paid per acre on said land plus cost for field work per acre based on
the most recent edition of Nebraska Farm Custom Rates published by the University of Nebraska
Cooperative extension service.
8. Title. GRANTEE shall obtain title insurance on the real estate at its expense. If
GRANTOR is unable to provide marketable title within a reasonable time GRANTEE may elect to accept
title in the condition it is in or cancel the contract and receive a complete refund of all option
payments made.
9. Failure of Option. Failure of GRANTEE to give notice of exercising option to
purchase shall result in all payments made being retained by GRANTOR and all terms of this option
regarding future obligations of GRANTOR will expire under the terms of this option.
10. No Encumbrance. GRANTEE will not encumber the land in anyway, so long as title is
in the GRANTOR.
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11. Notices. Any notice required hereunder shall be given to the parties hereto as
follows:
| (a) To GRANTOR: | Xxxxxx X. Xxxxxxx and Xxxxxx X. Xxxxxxx | |||
| 2003 Lane Street | ||||
| Falls City, Nebraska 68355 |
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| (b) To GRANTEE: | NEK-SEN Energy, LLC | |||
| Xxxx Xxxxxxx | ||||
| R.R. 4, Box 20 | ||||
| Sabetha, Kansas 66534 |
Either party may change the address for notice by written notice to the other party under the
provisions of this paragraph, and thereafter such amended address shall apply to any notices
hereunder.
12. Access to Grantee During Option Period. GRANTOR hereby grants to GRANTEE, its
agents, representatives, contractors, and assigns access to the option property and so much of
GRANTOR’s adjoining property as is reasonably necessary during the option period for the purposes
of conducting surveys, soil borings and testing, test xxxxx, engineering and architectural studies,
environmental studies, and any other test or study as may be needed by GRANTEE to determine whether
the site is suitable for the intended use. GRANTEE shall pay to GRANTOR reasonable damages to any
growing crops caused by such actions for the benefit of GRANTEE.
13. CRP Program Reimbursement. A portion of the real estate to be conveyed by GRANTOR
to GRANTEE is presently in the Conservation Reserve Program. XXXXXXX agrees to pay the U.S.
Department of Agriculture the sum needed to buy out such real estate from the Conservation Reserve
Program and to hold GRANTOR harmless for the same.
14. Benefit. This option shall benefit and bind the parties hereto, their respective
heirs, personal representative and assigns. This option is assignable.
Executed this 17 day of April, 2006.
| NEK-SEN Energy, LLC | ||||||||
/s/ Xxxxxx X. Xxxxxxx
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By: | /s/ Xxxx Xxxxxxx
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Xxxxxx X. Xxxxxxx, Grantor
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Title: President | |||||||
/s/ Xxxxxx X. Xxxxxxx |
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Xxxxxx X. Xxxxxxx, Grantor |
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STATE OF NEBRASKA
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COUNTY
OF XXXXXXXXXX
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The
foregoing instrument was acknowledged before me on April 18,
2006, by Xxxxxx X. Xxxxxxx and Xxxxxx X. Xxxxxxx, husband and wife, Grantor.
[Notary Seal] |
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GENERAL NOTARY — State of Nebraska |
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XXXX X. XXXXXXXXX |
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My Comm. Expires May 29, 2006
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/s/ Xxxx X. Xxxxxxxxx
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My Commission Expires:
29 May 2006
STATE OF KANSAS )
) ss
COUNTY OF NEMAHA )
) ss
COUNTY OF NEMAHA )
The foregoing instrument was acknowledged before me on April 17, 2006, by Xxxx
Xxxxxxx, President of NEK-SEN Energy, LLC.
[Notary Seal] |
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NOTARY PUBLIC — State of Kansas |
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XXXXXX X. XXXXXX |
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My Appt. Exp. 5 Apr. 2010
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/s/ Xxxxxx X. Xxxxxx
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My Commission Expires: |
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5 Apr 2010 |
NEK-SEN
Energy, LLC Option to Purchase Real Estate: 5
