Exhibit 10.4
OPTION TO PURCHASE
Agreement made this 14th day of March, 2002, by and between Xxxxxxxx X.
Xxxxx and Xxxxxxxx X. Xxxxx, husband and wife, hereinafter "Owner" and East
Kansas Agri-Energy, L.L.C., a Kansas Limited Liability Company, hereinafter
"Purchaser".
In consideration of the sum 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 Xxxxxxxx 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, and, that Purchaser shall receive
credit against the purchase price for the amount paid for this option.
(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
Garnett, Kansas, no later than five o'clock p.m. (5:00 p.m.) on March 31, 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
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Option to Purchase
provide access from Purchaser's anticipated Ethanol Plant to the existing
railroad track located in the city of Xxxxxxx, 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 boundary
fence at Purchaser's expense with a fence approximately equal to the new fence
constructed by City of Xxxxxxx 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 xxxx 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.
(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 LLC
By
---------------------------- -------------------------------------
Xxxxxxxx X. Xxxxx Xxxxxxx X. Xxxxxx
Chairperson
----------------------------
Xxxxxxxx X. Xxxxx
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Option to Purchase
STATE OF KANSAS )
)
COUNTY OF XXXXXXXX )
The foregoing instrument was acknowledged before me this 29th day of March,
2002, by Xxxxxxxx X. Xxxxx and Xxxxxxxx X. Xxxxx, husband and wife.
Term Expires:
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----------------------------- Notary Public
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Option to Purchase
STATE OF KANSAS )
) SS:
COUNTY OF XXXXXXXX )
The foregoing instrument was acknowledged before me this 27th day of March,
2002, by Xxxxxxx X. Xxxxxx, Chairperson of East Kansas Agri-Energy, L.L.C., a
Kansas Limited Liability Company, on behalf of the limited liability company.
Term Expires:
-------------------------------------
----------------------------- Notary Public
