**Exhibit10.1**
| [FAGEN           | 501 WEST HIGHWAY 212  P.O. BOX 159 GRANITE FALLS, MINNESOTA 56241 |
|------------------|-------------------------------------------------------------------|
| ENGINEERING LLC] | PHONE (320) 564-4573                                              |
|             | FAX (320) 564-4861                                                |

 

June 27, 2006

Little Sioux CornProcessorsAttention: Mr. Steve Roe4808 F AvenueMarcus, IA 51035

Dear Steve,

Thank you for requestinga proposal from Fagen Engineering LLC to perform the electrical design servicesfor grains area expansion at Little Sioux Corn Processors.

Our understanding is theproject will consist of installing two new concrete silos with integrated daybin, scalping floor, grinding day bin, four new hammermills, and MCC room to beconstructed west of the existing concrete corn storage silos.  In addition, the existing corn silos will bemodified to have a flat bottom, a new DDG receiving filter will be added alongwith the existing DDG building being expanded with an additional loadout pitand conveyors.  McCromick drawing F1,Revision 1dated 5/17/05 forms the basis for the proposal.

Based on the informationwe have received, Fagen Engineering proposes to perform the following scope ofwork for the complete electrical and control design:

·                  Coordinateelectrical requirements with McCormick Construction.

·                  Fieldverify existing conditions.

·                  Sizeand specify all electrical gear.

·                  Sizeall feeders.

·                  Createone-line diagrams.

·                  Designand develop grounding drawings.

·                  Designand develop underground drawings.

·                  Designand specify all lighting.

·                  Reviseexisting grains P&ID to include new equipment.

·                  Specifyand furnish 26 speed switches, 4 speed transmitters, 12 level switches, 4 leveltransmitters, and 2 elevator leg monitoring system.

·                  Designand develop instrument loop drawings.

·                  Designand develop motor control elementary drawings.

·                  Furnishall electrical control panels containing the PLC controls hardware, reversingcontractors for the electric gates, and all communication hardware (excludingcabling) to interface the new PLC control system to the existing system.  The complete system shall consist of thefollowing:

**CP-100 is located in the process server or MCCroom.]**

·                  CP-100contains the following hardward:

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o                 1-media converterfrom CP-101 to DCS Ethernet.

o                 1-media converterpower supply.

o                 Fiber patch cablefrom media converter to patch panel

o                 COM-100 a 12 portfiber patch panel.

**CP-101 will be a centrally located PLC to operatethe grains and DDG systems. **EachFVR contractor shall have a light indicating position.  Panel gate indicators are green = open andred = closed.  Diverter indicators aregreen = A and green = B.  Spoutindicators are green = up and green = down. All I/O modules shall have terminals associated such that field wiringdoes not land directly on I/O modules.

o                 CP-101 containsthe following hardware:

·                  1-17slot rack with power supply

·                  1-L55Allen Bradley Controllogix processor.

·                  1-ENBTEthernet module.

·                  1-CNBControlnet module.

·                  1-DHRIORemote I/O module

·                  7-IA16Idigital isolated input modules.

·                  4-OW16Idigital output modules.

·                  1-IF16analog input module.

·                  1-powersupplies for Ethernet switch, media converters

·                  1-Controlnetextender coax/fiber to CP-105.

·                  1-Powersupply for Controlnet extender.

·                  FVRIEC starters with overload protection as specified.  Each has a light indicating position and a **hand, off, auto** switch located on door front.

·                  1-PanelviewPlus 1000 Ethernet communication.

·                  1-8Port Ethernet switch.

·                  1-mediaconverter to DCS, Ethernet.

·                  1-mediaconverter to CP-104, Ethernet.

·                  Fiberpatch cables from media converters to patch panel

·                  Patchcables from media converters to Ethernet switch.

·                  1-Warningstrobe indicating DDG reclaim is operating to be supplied separate of CP-101and installed by others.

·                  COM-101a 24 port fiber patch panel.

·                  1-Anybuscommunication module for leg monitoring system.

·                  2-speedtransmitters as specified on bid list.

·                  1-legmonitor junction box CP-108.

·                  Legmonitors as specified are 1-power supply for the compuwatt and Anybus modules.

·                  Enclosedin CP-108 within CP-101.

·                  1-1000foot spool of cable for leg monitor system.

·                  Enclosuresized according to UL regulations.

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**Hardware to be installed in the existing grainscontrol panel**

1-1747-ASB Remote I/O module

**CP-104 will be a table top Allen Bradley panelviewplus 1000 remote panel located in the grains control room.**

o                 CP-104contains the following hardware:

·                  1-AllenBradley panelview plus 1000.

·                  1-panelviewpower supply.

·                  1-mediaconverter from CP-104 to CP-101 Ethernet

·                  ~16ft fiber patch cord

·                  Enclosuresized according to UL regulations.

**CP-105 will be a grains roof top located AllenBradley Flexlogic remote panel to operate the elevated grains system. **Gate indicators are green =open and red = closed.  All I/O modulesshall have terminals associated such that field wiring does not land directlyon I/O modules.

·                  CP-105contains the following hardware:

·                  FlexlogixControlnet communication card.

·                  1-Controlnetextender coax/fiber to CP-101.

·                  1-Powersupply for Controlnet extender.

·                  1-Pre-terminatedfiber cable to CP-101.

·                  1-Patchcoax cable from Controlnet extender to Flexlogix Controlnet port.

·                  Flexlogixpower supply

·                  1-IE8analog input module

·                  1-IA8Idigital input modules

·                  1-OA8Idigital output modules.

·                  FVRIEC starters with overload protection as specified.  Each has a light. indicated position and a **hand, off, auto** switch located on door front.

·                  1-Enclosureheater

·                  1-Enclosurefan

·                  1-Temperaturesensor input ranged -30F to 150F

·                  Exteriorweather cover for switches and indicators.

·                  Enclosuresized according to UL regulations.

·                  Developsoftware programming for the new PLC hardware and existing hardware in supportof the new equipment integrating safety features, interlocks and operations ofthe new equipment with the existing equipment.

·                  Providecontrol narrative of control system.

·                  ProvideSystem Operating Procedures (SOP’s)

·                  ProvideControl Panel drawing.

·                  UpdateO & M manuals.

·                  Performcommissioning and testing of installed control system.

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Start up:

·                  Theproposal is based on two(2), five (5) day startup and commissioning trips.  The first trip will startup the new grainhandling facilities, and the second trip will startup and re-integrate thereviewed original grain handling system into the control system.  Each startup session will require a minimumof one plant supplied electrician (of Contractor Electrician) and onerepresentative of the Mechanical Equipment Contractor to assist with check outand start up.  Plant maintenancepersonnel should be encouraged to help with startup.  Training will be scheduled after eachcompleted startup session for the new system and the revised existingsystem.  The startup will be coordinatedwith Little Sioux Corn Processors.  Anadditional $1000.00 per day plus expenses will be charged if the systems arenot properly wired prior to each startup and each startup lasts beyond theirallocated five day period.  The entiresystem may need to be shutdown to make some of the changes.

Clarifications:

·                  FagenEngineering will not be responsible for any permitting required for thecompletion of this project.

·                  FagenEngineering has assumed the conveyor slack chain switches, conveyor plusswitches, the gate position limit switches are being supplied with theequipment.

·                  Proposalincludes freight to Little Sioux Corn Processors in Marcus, Iowa.

·                  Includespanel drawing.

·                  Doesnot include any Fiber optic cable termination.

·                  Doesnot include mounting of any instruments or control panels.

·                  Doesnot include any installation or cable.

·                  Theabove prices do not include any equipment or drawings not listed above.

·                  Thisquote is valid for 30 days unless stated otherwise.

·                  Downpayment of 35% is required to begin project.

·                  SalesTax is included in this proposal.

·                  Progresspayments will be required on a monthly basis.

Fagen Engineeringproposes to perform the above mentioned scope of work for a fee of $258,895.00plus reimbursable expenses per the attached reimbursable schedule.

It was discussed that anoption to be presented to replace the Watchdog elevator leg monitoring systemson the three existing bucket elevators that will remain.  The fee to supply the equipment andincorporate the three elevator leg monitoring systems in the control systemwould be $3,459.00.

We also discussed anoption to allow the control system to be connected to a Little Sioux CornProcessor supplied DSL connection.  Thisconnection would allow parties with the secure passwords to access the controlsystem via the internet to trouble shoot, view alarms, make system updates,etc.  The proposed hardware would consistof:

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**CP-050 is located in a dedicatedspace provided by the client in the office building.**

·                  CP-050contains the following hardware:

·                  1-mediaconverter from CP-050 to CP-104 Ethernet.

·                  1-firewallmodule.

·                  1-mediaconverter, firewall module power supply

·                  ~16ft fiber patch cord

·                  Enclosuresized to UL regulations

**Additional hardware to be installed in CP-104**

·                  1-mediaconverter from CP-104 to CP-050 Ethernet

·                  1-mediaconverter power supply

·                  1-4Port Ethernet switch

·                  ~16ft fiber patch cord

The fee to provide theabove hardware for the DSL connection is $2725.00.

It is our understandingthat Little Sioux Corn Processors would like the existing corn receiving,storage, and hammermill area to reamin in operation until the new system isoperational.  After the new system iscommissioned, the modifications for the existing corn receiving facility willcommence.  However as the design for theproject proceeds, we may identify items that may require shutdown of the grainhandling system to perform tie-ins.  Oncethese items are identified, we will work with Little Sioux to schedule theseshutdowns to minimize the downtime.

Please sign and datebelow each option identifying acceptance of the option.  I have attached two copies, please return oneexecuted copy.
| **Base Proposal: $258,895.00**       |
|--------------------------------------|
|                                 |
| /s/ Steve Roe                        | 7-10-06 |   |
| Mr. Steve Roe                        | Date |   |
|                                 |
| **Leg Monitoring Option: $3,459.00** |
|                                 |
| /s/ Steve Roe                        | 7-10-06 |   |
| Mr. Steve Roe                        | Date |   |
|                                 |
| **DSL Option: $2725.00**             |
|                                 |
| /s/ Steve Roe                        | 7-10-06 |   |
| Mr. Steve Roe                        | Date |   |

 

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Please contact me withany questions or comments.

Sincerely,

FAGEN ENGINEERING LLC

Tracey L. Olson, P.E.Vice President
| Cc:    |   | Jeff Holcomb |
|--------|--------|--------------|
|   |   | J.R. Austgen |

 

Enclosure

 

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