this 1st day of July, 2004, 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”.
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
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:
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.
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 options dated
March 14, 2002, March 14, 2003, and the one dated March 15, 2004.
(3) The term
of this option shall run from July 1, 2004, to September 1, 2004.
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 September 1, 2004. 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.
contract for the sale of this real estate shall contain the following
(A) The cost
of surveying the tract to be purchased together with all title insurance shall
be paid by Purchaser.
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.
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 of Garnett Sewer Project, which is also
located on property formerly owned by Owner.
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 wall be provided with water and
Option to Purchase cannot be assigned by Purchaser without the written consent
(7) Time is of
the essence in the performance of this agreement.
agreement shall be binding upon the heirs, successors and assigns of Owner and
WHEREOF, the parties hereto have set their hands on the day and date above
/s/ Clarence T. White
/s/ William R. Pracht
Clarence T. White
William R. Pracht, Chairperson
/s/ Berniece F. White
Berniece F. White
The foregoing instrument was acknowledged
before me this 30th day of June, 2004, by Clarence L. White and Berniece F.
White, husband and wife.
/s/ Monica M. Wilper
Notary Public Monica M. Wilper
The foregoing instrument was
acknowledged before me this 1st day of July, 2004, 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.