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DESIGN/BUILD
CONSTRUCTION CONTRACT
 21st August, 2007 Hogenson Construction Company, Cardinal Ethanol, LLC,
  ARTICLE I  SCOPE OF WORK
  ARTICLE 2  TIME OF COMPLETION
  ARTICLE 3  THE CONTRACT SUM
 Eight Hundred Sixty-Four Thousand Five Hundred U.S.
dollars and No cents ($864,500.00).
 ARTICLE 4  CHANGE ORDERS
  1.
    
    All Engineering costs (based on published hourly rates and direct expenses).2.
    
    All Material direct costs including Freight.3.
    
    All Labor direct costs including Supervision.4.
    
    All Subcontractor direct costs.5.
    
    All Construction Equipment Rental costs that the Contractor may incur in performing
the change.6.
    
    All Taxes and Insurance costs that the Contractor may incur on direct materials,
labor, subcontractors, or other areas.7.
    
    Any reasonable General Condition costs that the Contractor may incur in performing
the change.8.
    
    The Contractors Overheard of 10% on total costs.9.
    
    The Contractors Commission of 10% of total costs.




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ARTICLE 5  DOWN PAYMENT ADVANCES
  ARTICLE 6  PROGRESS PAYMENTS
    ARTICLE 7  ACCEPTANCE AND FINAL PAYMENT




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ARTICLE 8  NOTICE TO OWNER OF LIEN RIGHTSU
   ARTICLE 9  THE CONTRACT DOCUMENTS




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ACCEPTED BY:/s/ Shane Johnson

Shane Johnson 
Project Manager 
Hogenson Construction Company
    
    
    
    /s/ Troy Prescott

Title: President
Cardinal Ethanol, LLC




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SPECIFICATIONS
 AUGER CAST PILE SYSTEM TO SUPPORT
CORN AND DDGS SILOS
#0706
 1.
    
    PROJECT1-1
    
    GENERALIt is understood that where the word Owner appears, it shall mean the company known in these Specifications as CARDINALETHANOL LLC, of WINCHESTER, INbeing the party of the second part in the Contract and where the word Contractor appears,
it shall mean HOGENSON CONSTRUCTION COMPANYbeing the party of the first party of the Contract.The plans and specifications are intended to conform to each other. Errors, omissions, or transposition of figures and
descriptions in either the plans or specifications shall not relieve the Contractor from any part of this Contract
obligation or entitle him to claim for extra compensation. The Contractor, presumed to be sufficiently experienced and
familiar with Auger Cast Pile Systems, shall observe and correct any discrepancies in the figures and descriptions on
either the plans or specifications.In all cases, the figures on the scale drawings shall govern in preference to either scale, dimensions, or figures in the
Specifications.The Owner shall establish the plot lines and indicate the desired location of the piles.The Owner shall set a datum point for heights.The building will be located as per the Contractors plot plan and approved by the Owner before any construction activity
on the site begins. If a surveyor is required to locate the position of the building, the Contractor will coordinate the
survey, but the location will remain the responsibility of the Owner as if he had contracted the surveyor directly.1-2
    
    SCOPE OF WORKThis Specification covers the design, supply and installation of a complete auger cast pile
system to support the concrete grain storage and the concrete DDG storage. These
Specifications are not intended to specify all details of the design requirements and
construction. The Project is also subject to all the attachments of this Specification.The Contractor shall accept full responsibility for his work and for the work of his
subcontractors, including performance qualifications, specifications, documentation,
fabrication, testing, examination, inspection, cleaning, and compliance with this
Specification.The Contractor shall provide all labor, materials, equipment, incidentals, tools,
insurance, services, and skills in such quantities as may be necessary to complete the
Project within the intent of these Specifications.




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The Contractor has not included any sales and/or use taxes. If the tax exemption
certificate cannot be made available, a change order reflecting the costs will be added to
the owners account.The auger cast pile system will include approximately three hundred sixty-one (361) each
16 diameter piles placed to a depth of 50-0 below grade for the corn silo and
approximately one hundred eighteen (118) each 16 diameter piles placed to a depth of
50-0 for the DDG silo. All engineering and testing will be provided by Contractor as
well as material and labor to dewater and remove the spoils from the piling area.We have not included any costs associated with concealed conditions. Prices are given
going down to refusal, which is defined as a rate of penetration of 1-0 per minute or
less. Adding piles because of obstructions will be charged at the unit prices given below.Add: $21.60/LF for pile lengths in excess of base bid quantities.Deduct: $7.00/LF for pile lengths less than base bid quantitiesAdd: $15,000 for each additional static load test required. (One included in base bid)Add: $750/HR for lost time caused by natural or man-made obstructions, rock, boulders or
for delay time caused by others.1-3
    
    PERMITSThe Owner shall furnish at his own expense, all necessary permits required by city, county,
state, federal, and railroad authorities. The Contractor shall assist the Owner in
obtaining all necessary permits.1-4
    
    RESPONSIBILITYThe Contractor shall comply with all local, state, and federal laws and ordinances
governing this class of work, including OSHA.The Contractor shall confine its operations to the building site and shall not unreasonably
encumber the Owners premises or plant operations.The Contractor shall keep the building site reasonably clean and free from waste material
and rubbish. Upon final completion, the Contractor shall remove all temporary buildings,
all owned and rented equipment, and all unused materials from the building site.1-5
    
    CONTRACTORS INSURANCE AND INDEMNIFYThe Contractor shall carry public liability and property damage insurance, same to be paid
for by the Contractor. The Contractor agrees to protect, defend, hold harmless, and
indemnify the Owner, Owners officers, directors, and members from all such bodily injury
or property damage claims for which the Owner may be or may be claimed to be liable, and
legal fees and disbursements paid or incurred as a result of work done during the duration
of the Project. The Contractor further agrees to obtain, maintain, and pay for such
general liability insurance coverage as will insure the provision of this paragraph. The
Contractor shall also carry workmens compensation insurance, and submit contributions as
required by law for social security benefits and unemployment compensation, same to be paid
for by the Contractor. This section survives the termination or expiration of the
Specifications.




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1-6
    
    ACCESS TO THE PROJECTThe Owner or his authorized representative shall have access to the Project at all times
for the inspection of the whole Project or any part thereof. The Owner or his authorized
representatives shall conform to all safety regulations required by OSHA and the
Contractor.1-7
    
    BUILDING INSURANCEDuring the construction of the Project, the Owner shall carry builders risk insurance
covering the buildings and all materials and equipment used or about to be used in the
construction, which insurance shall be increased or renewed as required to cover the value
of the Project. Coverage shall include all formwork and the Contractors equipment.
Losses shall be payable to the Owner and the Contractor as their respective interests shall
appear at the time of the loss.Railroad protective liability insurance (if required) is an addition to this Contract.1-8
    
    ALTERATIONS AND/OR ADDITIONSIf the Owner desires to make any changes or additions, he may do so and in no way
invalidate the Contract, except that sufficient time shall be given to the Contractor in
which to perform the work. For construction related changes or additions, the Contractor
shall be reimbursed for all material, equipment, and labor costs plus 10% for overhead
expenses and 10% commission. Additional work shall be agreed to by both parties with the
scope of work and estimated costs thereof, if desired, documented in writing. One
representative of the Owner, JEFF PAINTER, and one representative of the Contractor, SHANE
JOHNSON, shall be authorized to sign additional work authorization forms.1-9
    
    CHARACTER OF WORKMENThe Contractor shall employ only competent and skillful men in the different trades to do
the work. Men who are unfaithful, incompetent, or disorderly shall be discharged from the
Project and not again employed upon it.1-10
    
    EARTHWORKExcavation from and backfilling to the existing grade in the immediate building area will
be by the Contractor.Any and all underground obstructions or overhead obstructions shall be moved at the Owners
expenses (telephone lines, electrical power lines, old foundations, tile, gas lines, water
lines, sewer lines, pump stations, etc).All temporary or finished roadwork, if required, shall remain the responsibility of the
Owner.1-11
    
    SOIL DATAThe Owner shall coordinate the soil test. The contents of the soils report will remain the
responsibility of the Owner and all associated costs will be for the Owners account. The
Contract will be based on the soil test. The Contractor shall remain not responsible for
any deviations, errors, or omissions in the soil test or soils report, which affect the
structure during or after construction. This includes, but is not limited to, high water
table, excessive vertical or differential settlement, and pockets of untested material.
The removal of soils disturbed by rainfall shall be for the Owners account.




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The Contractor will provide a standard de-watering pump (3 max). Any specialized
excavating or de-watering equipment, if required, will be an addition to the Contract
(draglines, well points, shoring, coffer dams, soil solidification, etc.).1-12
    
    SURFANCE DRAINAGEThe Contractor will be responsible for surface draining grading within the building
construction lines. The Owner will be responsible for all grading outside the building
construction lines and all associated expenses will be for the Owners account. All future
maintenance of grades within the building construction lines or outside shall be the
responsibility of the Owner.1-13
    
    SUBCONTRACTSNo subcontract entered into by the Contractor, as part of the Contractors direct Scope of
Work, shall under any circumstances relieve the Contractor from his liabilities and
obligations under this Contract.1-14
    
    GUARANTEE OF WORKThe Contractor guarantees that the plans and specifications are adequate and proper for the
construction of an auger cast pile system on the Owners site. Contractor agrees to
re-execute any work which does not conform to the plans or specifications. This guarantee
extends to defects resulting from faulty materials, non-conforming work or faulty
workmanship. The contractor agrees to re-execute any work which does not conform to plans
or specifications. The Contractor agrees that for a period of one year from the date of
completion or first use by the Owner, whichever occurs first, it will be responsible for
any failure in the structural components of the auger cast pile system, either partial or
complete, caused by faulty design. This section survives the termination or expiration of
the Specifications.1-15
    
    GUARANTEE AND WARRANTY WORKIf defects occur which fall within the guarantee or warranty period, the Contractor shall
be notified and shall be given sufficient time to make corrections.1-16
    
    ARBITRATIONAll claims, disputes, and other matters in question between the Owner and the Contractor
relating to the Contract Documents (except for claims which have been waived by the making
or acceptance of final payment as provided by the Contract) shall be decided by arbitration
in accordance with the Construction Industry Arbitration Rules of the American Arbitration
Association. This agreement to arbitrate and any other agreement or consent to arbitrate
will be specifically enforceable under the prevailing arbitration law of any court having
jurisdiction.Notice of the demand for arbitration shall be file in writing with the other party to the
Agreement and with the American Arbitration Association. The demand for arbitration shall
be made within a reasonable time after the claim, dispute, or other matter in question has
arisen, and in no event shall any such demand be made after institution of legal or
equitable proceedings based on such claim, dispute, or other matter in question would be
barred by the applicable statute of limitations.




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1-17
    
    DESIGN RESPONSIBILITYThe Contractor shall be responsible for all design associated with this Contracts direct
Scope of Work for the Project, including, but not limited to structures and material
handling systems.1-18
    
    CHANGES IN CODESThe Contractor is not responsible for costs that may result from code changes occurring
after the Contract date. This specifically includes, but is not limited to, the OSHA
Standards for Grain Facilities. Resulting changes in the Project due to code changes shall
be considered as an alteration and/or addition as noted in these Specifications.1-19
    
    STRUCTURAL DESIGNCODES:
 1.
    
    American Concrete Institute (ACI).
 
    
    Building Code Requirements for Reinforced Concreted (ACI 318-91).
 2.
    
    OSHA Safety and Health Standards
 1-20
    
    REINFORCING STEELAll reinforcing steel shall be new, deformed ASTM A615  Grade 60 (Fy-60,000 psi) bars.
All reinforcing steel shall be designed to conform to standards prescribed by the American
Concrete Institute (ACI 318-91). All reinforcing steel shall be placed as shown on the
final design drawings. Reinforcing steel shall be inspected prior to major pours,
including but not limited to, auger cast piles.1-21
    
    CONCRETEThe concrete mix design used by the supplier shall be approved by the Contractor. Cold
weather protection shall be sued when the mean daily temperature falls below 40 degrees F.
Heating of materials, protection temperature, curing methods, etc., shall comply with ACI
Standard, Recommended Practice of Col Weather Concreting, (ACI 306). Detailed
specifications will be made if required. Costs associated with cold weather protection are
not included in this Contract.Hot weather concrete production, delivery, placement, and protection shall comply with the
American Concrete Institute standard, Recommend Practice of Hot Weather Concreting, (ACI
305). Detailed specifications will be made if required. Costs associated with hot weather
production are not included in this Contract.1-22
    
    CONCRETE MIXING AND PLACEMENTConcrete will be mixed and placed by the standards for installation of auger cast pile
systems.1-23
    
    CONCRETE TESTINGThe Contractor will prepare test cylinders in sets of three for each 100 cubic yards in the
mat pour, or days pour for subsequent concreting. Slump tests are to be made at the time
the cylinders are cast. Care in preparation, storage, labeling, and subsequent
transportation of the test cylinders is required.
 ACCEPTED BY:/s/ Shane Johnson

Shane Johnson 
Project Manager
    
    
    
    /s/ Troy Prescott

Title: President
Cardinal Ethanol, LC
Date of Acceptance: 8-22-07