Exhibit
10.1


	
  [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 Corn
Processors

Attention: Mr. Steve Roe

4808 F Avenue

Marcus, IA 51035


Dear Steve,


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


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


Based on the information
we have received, Fagen Engineering proposes to perform the following scope of
work for the complete electrical and control design:


·                  Coordinate
electrical requirements with McCormick Construction.


·                  Field
verify existing conditions.


·                  Size
and specify all electrical gear.


·                  Size
all feeders.


·                  Create
one-line diagrams.


·                  Design
and develop grounding drawings.


·                  Design
and develop underground drawings.


·                  Design
and specify all lighting.


·                  Revise
existing grains P&ID to include new equipment.


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


·                  Design
and develop instrument loop drawings.


·                  Design
and develop motor control elementary drawings.


·                  Furnish
all electrical control panels containing the PLC controls hardware, reversing
contractors for the electric gates, and all communication hardware (excluding
cabling) to interface the new PLC control system to the existing system.  The complete system shall consist of the
following:


CP-100 is located in the process server or MCC
room.]


·                  CP-100
contains the following hardward:









 



 


o                 1-media converter
from CP-101 to DCS Ethernet.


o                 1-media converter
power supply.


o                 Fiber patch cable
from media converter to patch panel


o                 COM-100 a 12 port
fiber patch panel.


CP-101 will be a centrally located PLC to operate
the grains and DDG systems.  Each
FVR contractor shall have a light indicating position.  Panel gate indicators are green = open and
red = closed.  Diverter indicators are
green = A and green = B.  Spout
indicators are green = up and green = down. 
All I/O modules shall have terminals associated such that field wiring
does not land directly on I/O modules.


o                 CP-101 contains
the following hardware:


·                  1-17
slot rack with power supply


·                  1-L55
Allen Bradley Controllogix processor.


·                  1-ENBT
Ethernet module.


·                  1-CNB
Controlnet module.


·                  1-DHRIO
Remote I/O module


·                  7-IA16I
digital isolated input modules.


·                  4-OW16I
digital output modules.


·                  1-IF16
analog input module.


·                  1-power
supplies for Ethernet switch, media converters


·                  1-Controlnet
extender coax/fiber to CP-105.


·                  1-Power
supply for Controlnet extender.


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


·                  1-Panelview
Plus 1000 Ethernet communication.


·                  1-8
Port Ethernet switch.


·                  1-media
converter to DCS, Ethernet.


·                  1-media
converter to CP-104, Ethernet.


·                  Fiber
patch cables from media converters to patch panel


·                  Patch
cables from media converters to Ethernet switch.


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


·                  COM-101
a 24 port fiber patch panel.


·                  1-Anybus
communication module for leg monitoring system.


·                  2-speed
transmitters as specified on bid list.


·                  1-leg
monitor junction box CP-108.


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


·                  Enclosed
in CP-108 within CP-101.


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


·                  Enclosure
sized according to UL regulations.









 



 


Hardware to be installed in the existing grains
control panel


1-1747-ASB Remote I/O module


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


o                 CP-104
contains the following hardware:


·                  1-Allen
Bradley panelview plus 1000.


·                  1-panelview
power supply.


·                  1-media
converter from CP-104 to CP-101 Ethernet


·                  ~16
ft fiber patch cord


·                  Enclosure
sized according to UL regulations.


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


·                  CP-105
contains the following hardware:


·                  Flexlogix
Controlnet communication card.


·                  1-Controlnet
extender coax/fiber to CP-101.


·                  1-Power
supply for Controlnet extender.


·                  1-Pre-terminated
fiber cable to CP-101.


·                  1-Patch
coax cable from Controlnet extender to Flexlogix Controlnet port.


·                  Flexlogix
power supply


·                  1-IE8
analog input module


·                  1-IA8I
digital input modules


·                  1-OA8I
digital output modules.


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


·                  1-Enclosure
heater


·                  1-Enclosure
fan


·                  1-Temperature
sensor input ranged -30F to 150F


·                  Exterior
weather cover for switches and indicators.


·                  Enclosure
sized according to UL regulations.


·                  Develop
software programming for the new PLC hardware and existing hardware in support
of the new equipment integrating safety features, interlocks and operations of
the new equipment with the existing equipment.


·                  Provide
control narrative of control system.


·                  Provide
System Operating Procedures (SOP’s)


·                  Provide
Control Panel drawing.


·                  Update
O & M manuals.


·                  Perform
commissioning and testing of installed control system.









 



 


Start up:


·                  The
proposal is based on two(2), five (5) day startup and commissioning trips.  The first trip will startup the new grain
handling facilities, and the second trip will startup and re-integrate the
reviewed original grain handling system into the control system.  Each startup session will require a minimum
of one plant supplied electrician (of Contractor Electrician) and one
representative of the Mechanical Equipment Contractor to assist with check out
and start up.  Plant maintenance
personnel should be encouraged to help with startup.  Training will be scheduled after each
completed startup session for the new system and the revised existing
system.  The startup will be coordinated
with Little Sioux Corn Processors.  An
additional $1000.00 per day plus expenses will be charged if the systems are
not properly wired prior to each startup and each startup lasts beyond their
allocated five day period.  The entire
system may need to be shutdown to make some of the changes.


Clarifications:


·                  Fagen
Engineering will not be responsible for any permitting required for the
completion of this project.


·                  Fagen
Engineering has assumed the conveyor slack chain switches, conveyor plus
switches, the gate position limit switches are being supplied with the
equipment.


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


·                  Includes
panel drawing.


·                  Does
not include any Fiber optic cable termination.


·                  Does
not include mounting of any instruments or control panels.


·                  Does
not include any installation or cable.


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


·                  This
quote is valid for 30 days unless stated otherwise.


·                  Down
payment of 35% is required to begin project.


·                  Sales
Tax is included in this proposal.


·                  Progress
payments will be required on a monthly basis.


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


It was discussed that an
option to be presented to replace the Watchdog elevator leg monitoring systems
on the three existing bucket elevators that will remain.  The fee to supply the equipment and
incorporate the three elevator leg monitoring systems in the control system
would be $3,459.00.


We also discussed an
option to allow the control system to be connected to a Little Sioux Corn
Processor supplied DSL connection.  This
connection would allow parties with the secure passwords to access the control
system via the internet to trouble shoot, view alarms, make system updates,
etc.  The proposed hardware would consist
of:









 



 


CP-050 is located in a dedicated
space provided by the client in the office building.


·                  CP-050
contains the following hardware:


·                  1-media
converter from CP-050 to CP-104 Ethernet.


·                  1-firewall
module.


·                  1-media
converter, firewall module power supply


·                  ~16
ft fiber patch cord


·                  Enclosure
sized to UL regulations


Additional hardware to be installed in CP-104


·                  1-media
converter from CP-104 to CP-050 Ethernet


·                  1-media
converter power supply


·                  1-4
Port Ethernet switch


·                  ~16
ft fiber patch cord


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


It is our understanding
that Little Sioux Corn Processors would like the existing corn receiving,
storage, and hammermill area to reamin in operation until the new system is
operational.  After the new system is
commissioned, the modifications for the existing corn receiving facility will
commence.  However as the design for the
project proceeds, we may identify items that may require shutdown of the grain
handling system to perform tie-ins.  Once
these items are identified, we will work with Little Sioux to schedule these
shutdowns to minimize the downtime.


Please sign and date
below each option identifying acceptance of the option.  I have attached two copies, please return one
executed 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

  	
   

  



 









 



 


Please contact me with
any questions or comments.


Sincerely,


FAGEN ENGINEERING LLC


Tracey L. Olson, P.E.

Vice President


	
  Cc:

  	
   

  	
  Jeff Holcomb

  
	
   

  	
   

  	
  J.R. Austgen

  



 


Enclosure