Document:

exv4w3

 

Exhibit 4.3

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (the “Agreement”) is entered into as of April 28, 2006 by
and among US BIOENERGY CORPORATION, a South Dakota corporation (“US BioEnergy”), and PLATTE VALLEY
ENERGY, LLC, a Minnesota limited liability company (“PVE”).

     WHEREAS, US BioEnergy and Platte Valley Fuel Ethanol, LLC, a Nebraska limited liability
company (“PVFE”) have entered into that certain Transaction Agreement dated March 9, 2006 which
provides for the acquisition of PVFE by US BioEnergy (such agreement, including the exhibits and
schedules thereto and as amended, modified or supplemented from time to time, hereinafter referred
to as the “Transaction Agreement”);

     WHEREAS, PVE holds 328.65041 limited liability company units in PVFE and, as a consequence of
the acquisition provided in the Transaction Agreement, will receive approximately 29,000,112 shares
of Class A common stock of US BioEnergy (the “Shares”); and

     WHEREAS, US BioEnergy has agreed to provide to PVE certain rights to register 10,000,000 of
the Shares (the “Registrable Shares”) for sale pursuant to the Securities Act of 1933, as amended
(the “Act”) and to sell the Registrable Shares in accordance with a registration or registrations
of Class A common stock by US BioEnergy.

     NOW THEREFORE, in consideration of the foregoing and the mutual representations, warranties
and covenants herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

     1. Definitions.

          (a) Capitalized terms used herein which are not otherwise defined herein are
defined in the Transaction Agreement, attached hereto as Exhibit A.

          (b) In addition to the meaning set forth in the recitals, as used herein,
“Shares” means the shares of Class A common stock issued to PVE pursuant to the
terms of the Transaction Agreement and, except as otherwise set forth in this
Agreement, no other shares of Class A common stock or shares of any other class of
capital stock of US BioEnergy held by PVE, other than any shares issued in respect
of any of the Shares as a result of adjustments, stock splits, stock dividends,
reclassifications, recapitalizations or other events. Registrable Shares shall
cease to be Registrable Shares upon (i) any sale thereof pursuant to a registration
statement under the Act or (ii) any sale thereof pursuant to Rule 144 under the Act.

     2. Registration Rights

          (a) Registration Rights in Initial Public Offering. In the event that US
BioEnergy shall determine to file a registration statement under the

 

 

Act for an initial public offering of its Class A common Stock, US BioEnergy
shall, not less than sixty (60) days prior to the filing of such registration
statement, notify PVE of its intention to do so. PVE shall, within twenty (20)
days after such notice, notify US BioEnergy of its desire to include some or all of
the Registrable Shares in the registration statement and the number of Registrable
Shares that it desires to include therein. US BioEnergy shall, subject to the other
terms and provisions of this Agreement, use its best efforts to include the number
of Registrable Shares that PVE desires in such registration statement and, assuming
that the registration statement becomes effective under the Act, to allow PVE to
sell such Registrable Shares in accordance with the terms of the offering as set
forth in the registration statement.

          (b) Piggyback Registration Rights. At any time after US BioEnergy becomes
subject to reporting requirements under Section 12 or 15(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), US BioEnergy proposes to
register any Class A common stock under the Act for its own account or for the
account of shareholders of US BioEnergy other than PVE (other than a registration
relating to employee benefit plans or a registration solely relating to shares to be
sold under Rule 145 or a similar provision under the Act), US BioEnergy shall, not
less than sixty (60) days prior to the filing of such registration statement, notify
PVE of its intention to do so. PVE shall, within twenty (20) days after such
notice, notify US BioEnergy of its desire to include some or all of the Registrable
Shares in the registration statement and the number of Registrable Shares that it
desires to include therein. US BioEnergy shall, subject to the other terms and
provisions of this Agreement, use its best efforts to include the number of
Registrable Shares that PVE desires in such registration statement and, assuming
that the registration statement becomes effective under the Act, to sell such
Registrable Shares in accordance with the terms of the offering as set forth in the
registration statement.

     3. Limitations on Registration Rights.

          (a) If the managing underwriter for the offering, in either Section 2(a) or
(b), determines that, because the successful marketing or price of the number of shares offered by US Bio-Energy would be adversely affected, all of the Registrable
Shares requested to be registered should not be included in the offering, then the
number of Registrable Shares, to which PVE has requested registration, shall be
reduced to the number of Registrable Shares, if any, which the underwriter
determines may be so registered at such time. Notwithstanding the foregoing, no
such reduction shall eliminate or reduce any rights of the Registrable Shares which
are not registered.

          (b) In no event shall shares of Class A common stock or of capital stock of any
other class of US BioEnergy held by other shareholders of US BioEnergy be included
in such registration if such inclusion would (i) prevent PVE from registering all
Registrable Shares requested by PVE to be included or

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(ii) in the judgment of the underwriter, adversely affect the offering price of
the Registrable Shares in such registration.

          (c) Nothing in this Agreement is intended to affect any rights that PVE or its
affiliates may have in respect of any other equity securities of US BioEnergy.

     4. Conditions Applicable to Registration. The following conditions shall apply
to registrations under Section 2:

          (a) The underwriter(s) of any offering shall be selected by US BioEnergy in its
sole discretion.

          (b) Notwithstanding any notice by US BioEnergy or PVE given with respect to any
registration or the filing or effectiveness of such registration, US BioEnergy may
at any time elect not to file, to delay, to suspend or to withdraw such registration
or the offering made thereby.

          (c) In any underwritten offering, the Registrable Shares shall be offered on
the same terms and conditions on which other shares of Class A common stock are
being offered by US BioEnergy.

     5. Undertakings of US BioEnergy. Subject to the provisions of Section 4, if
and whenever US BioEnergy is required by the provisions of this Agreement to use its
best efforts to effect the registration of any of the Registrable Shares under the
Act, US BioEnergy shall:

          (a) Prepare and file with the Securities and Exchange Commission (the
“Commission”) a registration statement, in form and substance required by the Act,
with respect to such Registrable Shares and use its best efforts to cause that
registration statement to become effective;

          (b) Prepare and file with the Commission any amendments and supplements to the
registration statement and the prospectus included in the registration statement as
may be necessary to keep the registration statement effective, in the case of a firm
commitment underwritten public offering, until completion of the distribution of all
Registrable Shares described therein and, in the case of any other offering, until
the earlier of (i) the sale of all Registrable Shares covered thereby or (ii) 180
days after the effective date thereof;

          (c) Furnish to PVE such reasonable numbers of copies of the prospectus,
including a preliminary prospectus, in conformity with the requirements of the Act,
and such other documents as PVE may reasonably request in order to facilitate the
public sale or other disposition of the Registrable Shares;

          (d) Use its best efforts to register or qualify the Registrable Shares covered
by the registration statement under the securities or Blue Sky laws

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of such states as PVE shall reasonably request, and do any and all other acts
and things that may be necessary or desirable to enable PVE to consummate the public
sale or other disposition of the Registrable Shares in such states; provided,
however, that US BioEnergy shall not be required in connection with this paragraph
(d) to qualify as a foreign corporation or execute a general consent to service of
process in any jurisdiction;

          (e) In connection with each registration pursuant to Section 2 above covering
an underwritten public offering, enter into a written agreement with the managing
underwriter in such form and containing such provisions (including, if the
underwriter so requests, customary contribution provisions on the part of US
BioEnergy) as are customary in the securities business for such an arrangement
between such underwriter and companies of US BioEnergy’s size and investment
stature;

          (f) At the request of PVE, furnish to each underwriter, if any, and PVE, a
legal opinion of its counsel and a letter from its independent certified public
accountants, each in customary form and substance, at such time or times as such
documents are customarily provided in the type of offering involved;

          (g) Whenever US BioEnergy is registering any Class A common stock under the Act
and PVE is selling Registrable Shares under such registration or determines that PVE
may be a controlling person under the Act, keep PVE advised of the initiation,
progress and completion of such registration, allow PVE and PVE’s counsel to
participate in the preparation of the registration statement and to have access to
all relevant corporate records, documents and information, and take all such other
action as PVE may reasonably request; and

          (h) As of the effective date of any registration statement relating thereto,
cause all such Registrable Shares to be listed on each securities exchange on which
the Class A common stock of US BioEnergy is then listed.

     6. Undertakings of PVE. In the event of any registration of the Registrable
Shares by US BioEnergy under the provisions of this Agreement, PVE shall:

          (a) Furnish to US BioEnergy such information regarding PVE and the distribution
proposed by PVE as US BioEnergy may reasonably request in writing and as shall be
required in connection with the registration, qualification or compliance
contemplated by this Agreement, including, without limitation, information which may
be required to respond to comments by the Commission and state securities
authorities; and

          (b) Enter into the underwriting agreement described in Section 5(e); provided,
however, that PVE shall not be obligated to enter into any such underwriting
agreement if the indemnification provisions thereof are materially more burdensome
on PVE than those contained herein or if any standback or

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lockup requirement therein is for a period that exceeds the period required by
this Agreement.

     7. Expenses of Registration. US BioEnergy will pay all expenses incurred by US
BioEnergy in complying with this Agreement, including, without limitation, all
registration and filing fees, exchange listing fees, printing expenses, transfer
taxes, fees and expenses of counsel for US BioEnergy, state securities or Blue Sky
fees and expenses, and the expense of any special audits incident to or required by
any such registration, but excluding underwriting discounts and selling commissions
relating to the sale of the Registrable Shares.

     8. Notification. Each of the parties shall promptly notify the other party of
any event of which it becomes aware which results in the prospectus included in such
registration statement or such registration statement, as then in effect, containing
an untrue statement of a material fact or omitting to state a material fact required
to be stated therein or necessary to make the statements therein not misleading in
the light of the circumstances then existing.

     9. Indemnification and Contribution.

          (a) Indemnification by US BioEnergy. US BioEnergy shall indemnify and hold
harmless PVE, its officers, directors or managers and equity holders, each
underwriter of the Registrable Shares being sold by PVE, and each controlling person
of any of the foregoing, against any and all claims, losses, damages and liabilities
(or actions in respect thereof) arising out of or based on any untrue statement (or
alleged untrue statement) of a material fact contained in any prospectus, offering
circular or other document relating to such Registrable Shares (or in any related
registration statement, notification or the like) or any omission (or alleged
omission) to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, or any violation by US
BioEnergy of the Act, or the Securities Exchange Act or any applicable state
securities laws or other laws, or any rule or regulation promulgated thereunder,
applicable to US BioEnergy and relating to action or inaction required of US
BioEnergy in connection with any registration, qualification or compliance
contemplated by this Agreement, and will reimburse PVE, each of its officers,
directors or managers and equity holders, and each such underwriter and controlling
person, for any legal or any other expenses reasonably incurred in connection with
investigating or defending any such claim, loss, damage, liability or action,
whether or not resulting in liability; provided, however, that US
BioEnergy will not be liable in any such case to the extent that any such claim,
loss, damage or liability (i) arises out of or is based on any untrue statement or
omission based upon and in conformity with written information furnished to US
BioEnergy or any underwriter by or on behalf of PVE or any underwriter for use
therein, or (ii) results solely from the failure of PVE or any underwriter to
deliver a copy of the registration statement, prospectus or offering circular, or
any amendments or supplements thereto, after US BioEnergy has furnished PVE or such
underwriter with a sufficient number of copies thereof.

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          (b) Indemnification by PVE. PVE shall indemnify and hold harmless US
BioEnergy, its directors, each of its officers who has signed the registration
statement, each underwriter of the Registrable Shares, each other participating
selling security holder and its directors, officers and partners, and each
controlling person of any of the foregoing, against any and all claims, losses,
damages and liabilities (or actions in respect thereof) arising out of or based on
any untrue statement (or alleged untrue statement) of a material fact contained in
any prospectus, offering circular or other document relating to the Registrable
Shares (or in any related registration statement, notification or the like) or any
omission (or alleged omission) to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, or by the
failure of PVE to deliver a copy of the registration statement, prospectus, offering
circular, or any amendments or supplements thereto after US BioEnergy has furnished
PVE with a sufficient number of copies thereof, and will reimburse US BioEnergy, and
each such director, officer, partner, other participating selling security holder or
controlling person referred to above, for any legal or any other expenses reasonably
incurred in connection with investigating or defending any such claim, loss, damage,
liability or action, provided, however, that PVE will not be liable
in any such case except to the extent that any such claim, loss, damage or liability
arises out of any untrue statement or omission based upon and in conformity with
written information furnished to US BioEnergy by or on behalf of PVE for use therein
or results solely from the failure of PVE to deliver a copy of the registration
statement, prospectus or offering circular, or any amendments or supplements
thereto, provided US BioEnergy has supplied PVE with such materials in compliance
with this Agreement, and provided, further, that PVE will not be
liable under this Section 9(b) for losses, costs, damages or expenses exceeding in
the aggregate the net proceeds paid to PVE in such offering.

          (c) Procedures for Indemnification. Each party entitled to indemnification
under Subsection (a) or (b) (the “Indemnified Party”) shall give notice to the party
required to provide indemnification (the “Indemnifying Party”) promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be
sought, and shall permit the Indemnifying Party to assume the defense of any such
claim or any litigation resulting therefrom; provided, that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or any litigation
resulting therefrom, shall be approved by the Indemnified Party (whose approval
shall not be unreasonably withheld); and, provided, further, that the failure of any
Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations under this Agreement. The Indemnified Party
may participate in such defense at such party’s expense; provided, however, that the
Indemnifying Party shall pay such expense if the Indemnified Party shall believe in
good faith that its representation by the Indemnifying Party’s counsel would cause
an actual or potential conflict of interest between the Indemnified Party and any
other party represented by such counsel in such proceeding. No Indemnifying Party,
in the defense of any such claim or litigation shall, except with the consent of
each Indemnified Party, consent to entry of any judgment or enter into any
settlement which does not

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include, as an unconditional term thereof, the full release, by the claimant or
plaintiff, of the Indemnified Party from all liability in respect of such claim or
litigation, and no Indemnified Party shall consent to entry of any judgment or
settle such claim or litigation without the prior written consent of the
Indemnifying Party, which consent will not be unreasonably withheld or delayed.

          (d) Contribution. If the indemnification provided for in Subsections (a) or
(b) is unavailable to any Indemnified Party thereunder in respect of any losses,
claims, damages or liabilities (or actions in respect thereof) referred to in such
Subsections, then each person that would have been an Indemnifying Party thereunder
shall contribute to the amount paid or payable by such Indemnified Party as a result
of such losses, claims, damages or liabilities (or actions in respect thereof) in
such proportion as is appropriate to reflect the relative fault of the Indemnifying
Party on the one hand and such Indemnified Party on the other. The relative fault
shall be determined by reference to, among other things, whether any untrue or
alleged untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Indemnifying Party or
such Indemnified Party, and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission, or
whether such losses, claims, damages or liabilities (or actions in respect thereof)
arose out of the action or failure to act of one or more of such parties.
Notwithstanding the foregoing, (i) PVE will not be required to contribute any amount
in excess of the net proceeds paid to PVE pursuant to such registration statement,
and (ii) no person guilty of fraudulent misrepresentation, within the meaning of
Section 10(f) of the Act, shall be entitled to contribution from any person who is
not guilty of such fraudulent misrepresentation.

     10. Reports Under Exchange Act. With a view to making available to PVE the
benefits of Rule 144 promulgated under the Act and any other rule or regulation of
the Commission that may at any time permit PVE to sell securities of US BioEnergy to
the public without registration or pursuant to a registration on Form S-3, US
BioEnergy agrees to use its best efforts to satisfy the requirements of all such
rules and regulations (including the requirements for public information,
registration under the Exchange Act and timely reporting to the Commission) at the
earliest possible date (but in any event not later than 90 days) after the effective
date of the registration statement for its first registered public offering. US
BioEnergy will furnish to PVE, whenever requested, a written statement as to its
compliance with the reporting requirements of Rule 144, the Act and the Exchange
Act, a copy of its most recent annual or quarterly report, and such other reports
and information filed by US BioEnergy as PVE may reasonably request in connection
with the sale of Registrable Shares without registration.

     11. Registration Rights of Others. US BioEnergy will not, without the prior
written consent of PVE, grant to any other person the right to (a) require US
BioEnergy to initiate the registration of any securities or (b) require US

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BioEnergy to include in any registration securities owned by such person,
unless under the terms of such arrangement such holder may include securities in
such registration only to the extent that the inclusion thereof does not limit the
number of Registrable Shares included therein or adversely affect the offering price
thereof. US BioEnergy represents and warrants that it has not granted any person
the right to require US BioEnergy to initiate the registration of any securities or
include in any registration any securities owned by any person.

     12. Lock-Up Agreement. PVE agrees that in connection with any public offering
of US BioEnergy’s Class A common stock, and upon the request of the managing
underwriter in such offering, PVE will not offer, transfer, sell, contract to sell,
grant any option or right for the purchase of, or otherwise dispose of any of US
BioEnergy’s securities held by PVE (other than those included in such registration)
or engage in any swap or derivative transactions involving US BioEnergy’s
securities, in each case, without the prior written consent of such underwriter, for
such period of time as may be requested by such underwriter, not to exceed 180 days
after the effective date of such registration.

     13. Notices. All notices, demands, requests or other communications hereunder
shall be in writing and shall be deemed to have been duly given if delivered in
person, or by United States mail, certified or registered with return receipt
requested, or by nationally recognized overnight courier service, to the addresses
of the respective parties set forth below:

	 	 	 
	If to US BioEnergy:

	 	If to PVE:
	 
	 	 
	US BioEnergy Corporation

	 	Platte Valley Energy, LLC
	111 Main Avenue, Suite 200

	 	P.O. Box 159
	Brookings, South Dakota 57005

	 	Granite Falls, Minnesota 56241
	Attn: Gordon W. Ommen

	 	Attn: Roland J. Fagen

     14. Successors and Assigns. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns,
provided that PVE cannot assign its rights and obligations hereunder without
the consent of US BioEnergy except to individual persons, corporations, limited
liability companies, partnerships, trusts or other entities directly or indirectly
controlling, controlled by or under common control with PVE, to members of the
immediate family of or trusts established by such individual persons or by gift,
will, intestate succession or operation of law, and, in each case, only if (i) the
transferee agrees in writing to be bound by and subject to the terms and conditions
of this Agreement, and (ii) the transferee acknowledges and agrees to the
restrictions on transfer of the Registrable Shares under the Act. In the event that
the Registrable Shares are held by more than one holder, the rights of PVE under
this Agreement shall be exercised only by the holders of a majority of the
Registrable Shares.

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     15. Term of Agreement. This Agreement shall terminate upon the earliest to
occur of (a) the sale by PVE of all of the Registrable Shares; (b) the availability
of Rule 144 for sale of the remaining Registrable Shares held by PVE within a period
of not more than 180 days; and (c) five years from the date of this Agreement;
provided, however, that the obligations of the parties under Section 9 hereof, shall
survive for a period of three (3) years following the termination of this Agreement
pursuant to (a), (b) or (c) above.

     16. Severability and Governing Law. If any provision of this Agreement is
rendered void, invalid or unenforceable by any court of law for any reason, such
invalidity or unenforceability shall not void or render invalid or unenforceable any
other provision of this Agreement. This Agreement and the rights and obligations of
the parties hereunder shall be governed by and interpreted, construed and enforced
in accordance with the laws of the State of South Dakota, without regard to its
choice of law principles.

     17. Amendments; Waivers. This Agreement may be amended or modified only with
the written consent of US BioEnergy and PVE. No waiver of this Agreement or any
provision hereof shall be binding upon the party against whom enforcement of such
waiver is sought unless it is made in writing and signed by or on behalf of such
party. No failure to exercise or delay in exercising any right, power or remedy
hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, power or remedy hereunder preclude any other or further
exercise thereof or the exercise of any other right, power or remedy. The rights
provided hereunder are cumulative and not exclusive of any rights provided by law.

     18. No Strict Construction. The parties hereto have participated jointly in
the negotiation and drafting of this Agreement and the other documents and
agreements contemplated herein. In the event an ambiguity or question of intent or
interpretation arises under any provision of this Agreement or any other document or
agreement contemplated herein, this Agreement and such other documents and
agreements shall be construed as if drafted jointly by the parties thereto, and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of authoring any of the provisions of this Agreement or any other documents
or agreements contemplated herein.

     19. Counterparts. This Agreement may be executed in one or more counterparts,
and with counterpart signature pages (including signature pages delivered by
facsimile), all of which together shall constitute one Agreement.

SIGNATURE PAGE FOLLOWS

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IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the
date first above written.

	 	 	 	 	 
	 	 	US BIOENERGY CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ CHAD D. HATCH
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	PLATTE VALLEY ENERGY, LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ RON FAGEN
	 

	 	 	 	 
	 	 	Title: CEO and President

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Exhibit A

Transaction Agreement dated as of March 9, 2006 by and between US BioEnergy Corporation and Platte
Valley Fuel Ethanol, LLC

11exv10w1

 

Exhibit 10.1

***** PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE OMISSIONS HAVE BEEN INDICATED BY
ASTERISKS (“*****”), AND THE OMITTED TEXT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

Standard Form of Agreement Between

Owner and Design-Builder — Lump Sum

This document has important legal consequences. Consultation with

an attorney is recommended with respect to its completion or modification.

     This AGREEMENT is made as of the 26th day of August in the year of 2005, by and
between the following parties, for services in connection with the Project identified below.

OWNER:

(Name and address)

Superior Corn Products, LLC

7787 Saddle Bag Lake Road

Lake Odessa, MI 48849

DESIGN-BUILDER:

(Name and address)

Fagen, Inc.

501 W. Highway 212

P. O. Box 159

Granite Falls, MN 56241

PROJECT:

(Include Project name and location

as it will appear in the Contract

Documents)

45 MGY Dry Grind Ethanol Plant

In consideration of the mutual covenants and obligations contained herein, Owner and Design-Builder
agree as set forth herein.

 

 

Article 1

Scope of Work

1.1 Design-Builder shall perform all design and construction services, and provide all
material, equipment, tools and labor, necessary to complete the Work described in and reasonably
inferable from the Contract Documents.

Article 2

Contract Documents

2.1 The Contract Documents are comprised of the following:

	 	.1	 	All written modifications, amendments and change orders to this Agreement
issued in accordance with DBIA Document No. 535, Standard Form of General Conditions of
Contract Between Owner and Design-Builder (1998 Edition) (“General Conditions of
Contract”);
	 
	 	.2	 	This Agreement, including all exhibits and attachments, executed by Owner and
Design-Builder, said Exhibits being:

Exhibit A — Performance Guarantee Criteria — (2) Pages;

Exhibit B — General Project Scope — (3) Page;

Exhibit C -Owner’s Responsibilities — (6) Pages;

Exhibit D — License of Proprietary Property of ICM, Inc. — (6) Pages

Exhibit E — Start-up Services to be Provided to Owner (1) Page.

	 	.3	 	Written Supplementary Conditions, consisting of three pages, to the General
Conditions of Contract;
	 
	 	.4	 	The General Conditions of Contract;
	 
	 	.5	 	Preliminary Construction Documents prepared by Design-Builder; and
	 
	 	.6	 	The following other documents, if any: N/A

Article 3

Interpretation and Intent

3.1 The Contract Documents are intended to permit the parties to complete the Work and all
obligations required by the Contract Documents within the Contract Time(s) for the Contract Price.
The Contract Documents are intended to be complementary and interpreted in harmony so as to avoid
conflict, with words and phrases interpreted in a manner consistent with construction and design
industry standards. In the event of any inconsistency, conflict, or ambiguity between or among the
Contract Documents, the Contract Documents shall take precedence in the order in which they are
listed in Section 2.1 hereof.

			
	 	 	 
	DBIA Document No. 525 • Standard Form of Agreement 

Between Owner and Design-Builder — Lump Sum

© 1998 Design-Build Institute of America
	 	Page 2

 

 

3.2 Terms, words and phrases used in the Contract Documents, including this Agreement, shall have
the meanings given them in the Supplementary Conditions and General Conditions of Contract.

3.3 The Contract Documents form the entire agreement between Owner and Design-Builder and by
incorporation herein are as fully binding on the parties as if repeated herein. The Contract
Documents supercede any prior letters of intent between the parties, and such letters of intent are
now null and void. No oral representations or other agreements have been made by the parties
except as specifically stated in the Contract Documents.

Article 4

Ownership of Work Product

4.1 Work Product. All drawings, specifications and other documents and electronic data
furnished by Design-Builder to Owner under this Agreement (“Work Product”) are deemed to be
instruments of service and Design-Builder shall retain the ownership and property interests
therein, including the copyrights thereto.

4.2 Owner’s Limited License Upon Payment in Full. Upon Owner’s payment in full for all Work
performed under the Contract Documents, Design-Builder shall vest in Owner a limited license to use
the Work Product in connection with Owner’s occupancy and repair of the Project and Design-Builder
shall provide Owner with a copy of the “as built” plans, conditioned on Owner’s express
understanding that its use of the Work Product and its acceptance of the “as built” plans is at
Owner’s sole risk and without liability or legal exposure to Design-Builder or anyone working by or
through Design-Builder, including Design Consultants of any tier (collectively the “Indemnified
Parties”), provided, however, that any performance guarantees and warranties (of equipment or
otherwise) shall remain in effect according to the terms of this Agreement. Owner shall be
entitled to use the Work Product for the purpose relating to this Project, but shall not be
entitled to use the Work Product on any other projects, including expansion of this Project. The
limited license to use the Work Product granted herein by Design-Builder to Owner shall be governed
by and construed in accordance with the same terms and provisions contained in the License
Agreement between Owner and ICM, attached hereto as Exhibit D and incorporated herein by reference
thereto, except (i) references in such License Agreement to ICM and Proprietary Property shall
refer to Design-Builder and Work Product, respectively, (ii) the laws of the State of Minnesota
shall govern such limited license, and (iii) the arbitration provisions contained in Article 10 of
the General Conditions shall apply to any breach or threatened breach of Owner’s duties or
obligations under such limited license other than Design-Builder shall have the right to seek
injunctive relief in a court of competent jurisdiction against Owner or its Representatives for any
such breach or threatened breach. Design-Builder is utilizing certain proprietary property and
information of ICM, Inc., a Kansas corporation (“ICM”), in the design and construction of the
Project, and Design-Builder may incorporate proprietary property and information of ICM into the
Work Product. Owner’s use of the proprietary property and information of ICM shall be governed by
the terms and provisions of the License Agreement between Owner and ICM, attached hereto as Exhibit
D, to be executed by such parties in connection with the execution of this Agreement. The
preceding last three sentences of this paragraph also apply to Articles 4.3 and 4.4 below.

4.3 Owner’s Limited License Upon Owner’s Termination for Convenience or Design-Builder’s Election
to Terminate. If Owner terminates the Project for its convenience as set forth in Article 8
hereof, or if Design-Builder elects to terminate this Agreement in accordance with Section 11.4 of
the General Conditions of Contract, Design-Builder shall, then upon Owner’s payment in full of the
amounts due Design-Builder under the Contract Documents, vest in Owner a limited license to use the
Work Product to complete the Project and subsequently occupy and repair the Project, subject to the
following:

	 	.1	 	Use of the Work Product is at Owner’s sole risk without liability or legal
exposure to any

			
	 	 	 
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	 	 	 	Indemnified Party; provided, however, that any “pass through” warranties regarding
equipment or express warranties regarding equipment provided by this Agreement shall
remain in effect according to their terms; and
	 
	 	.2	 	If the termination for convenience is by Owner or if Design-Builder elects to
terminate this Agreement in accordance with Section 11.4 of the General Conditions of
Contract, then Owner agrees to pay Design-Builder the additional sum of One Million
Dollars ($1,000,000.00) as compensation for the limited right to use the Work Product
(completed “as is” on the date of termination) in accordance with this Article 4.

4.4 Owner’s Limited License Upon Design-Builder’s Default. If this Agreement is terminated due to
Design-Builder’s default pursuant to Section 11.2 of the General Conditions of Contract and (i) it
is determined that Design-Builder was in default and (ii) Owner has fully satisfied all of its
obligations under the Contract Documents through the time of Design-Builder’s default, then
Design-Builder shall grant Owner a limited license to use the Work Product in connection with
Owner’s completion and occupancy and repair of the Project. This limited license is conditioned on
Owner’s express understanding that its use of the Work Product is at Owner’s sole risk and without
liability or legal exposure to any Indemnified Party; provided, however, that any “pass through”
warranties regarding equipment or express warranties regarding equipment provided by this Agreement
shall remain in effect according to their terms. This limited license would grant Owner the
ability to repair the Project at Owner’s discretion.

4.5 Owner’s Indemnification for Use of Work Product. If Owner uses the Work Product under any of
the circumstances identified in this Article 4, Owner shall defend, indemnify and hold harmless the
Indemnified Parties from and against any and all claims, damages, liabilities, losses and expenses,
including attorneys’ fees, arising out of or resulting from the use of the Work Product; provided,
however, that any “pass through” warranties regarding equipment or express warranties regarding
equipment provided by this Agreement shall remain in effect according to their terms.

Article 5

Contract Time

5.1 Date of Commencement. The Work shall commence within five (5) days of Design-Builder’s
receipt of Owner’s written Notice to Proceed (“Date of Commencement”) unless the parties mutually
agree otherwise in writing. The parties agree that a valid Owner’s Notice to Proceed cannot be
given until: ***** In accordance with the above section 5.1(3), Design-Builder acknowledges that
a valid Notice to Proceed was accepted on July 18, 2005. Notwithstanding the previous sentence,
Design-Builder does not waive its right to enforce compliance with the foregoing provisions.

5.2 Substantial Completion and Final Completion

5.2.1 Substantial Completion of the entire Work shall be achieved no later than Four hundred
eighty-five (485) calendar days after the Date of Commencement.

5.2.2 Interim milestones and/or Substantial Completion of identified portions of the Work shall be
achieved as follows: Owner shall provide the following within 90 days of Design-Builder’s receipt
of Owner’s Notice to Proceed, as described in Section 5.1 of this Agreement:

     • Owner shall determine its water source and provide Design-Builder an independent
analysis of the water source, and

     • Owner shall provide the name of its property/all risk insurance carrier and the specific
requirements

			
	 	 	 
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for fire protection.

The two bulleted requirements referred to above are further detailed in Exhibit C. The Scheduled
Substantial Completion date will likewise be extended a corresponding amount of days for each day
Owner exceeds the 90-day timeframe referred to above in Section 5.2.2.

5.2.3 Final Completion of the Work or identified portions of the Work shall be achieved as
expeditiously as
reasonably practicable.

5.2.4 All of the dates set forth in this Article 5 (“Contract Time(s)”) shall be subject to
adjustment in accordance with the General Conditions of Contract. Specifically, if delays in the
Contract Time occur because of delay in the delivery of materials or equipment that is beyond the
control of Design-Builder, the Contract Time will be adjusted, without penalty to Design-Builder,
pursuant to Sections 8.2.1 and 8.2.2 of the General Conditions of Contract.

5.3 Time is of the Essence. Owner and Design-Builder mutually agree that time is of the essence
with respect to the dates and times set forth in the Contract Documents.

Article 6

Contract Price

6.1 Contract Price. Owner shall pay Design-Builder in accordance with Article 6 of the
General Conditions of Contract the sum of Forty-six million one hundred nineteen thousand and
00/100 Dollars ($46,119,000.00) (“Contract Price”), subject to adjustments made in accordance with
the General Conditions of Contract. Unless otherwise provided in the Contract Documents, the
Contract Price is deemed to include all sales, use, consumer and other taxes mandated by applicable
Legal Requirements. The Contract Price assumes use of non-union labor, and such Contract Price
will be subject to an escalation adjustment if union labor is used.

6.2 Markups for Changes. The parties agree that changes shall not occur pursuant to Sections
9.4.1.3 or 9.4.1.4 of the General Conditions of Contract, but may occur pursuant to the other
provisions therein.

Article 7

Procedure for Payment

7.0 Payment at Financial Close. As part of the Contract Price, Owner shall pay Design-Builder
***** as soon as allowed by its organizational documents, the Escrow Agreement and any other
relevant agreements or laws (such payment to possibly occur prior to Financial Close) as a
mobilization fee. Provided, however, that said payment, if not made earlier, shall be paid at
Financial Close. Financial Close is defined as Owner executing final loan documents obtaining all
necessary financing to construct the project and funds are available to pay disbursements. Said
***** Dollar payment shall be subject to the retainage as provided by Article 7.2.1.

7.1 Progress Payments

7.1.1 Design-Builder shall submit to Owner on the twenty-fifth ( 25th ) day of each
month, beginning with the first month after the Date of Commencement, Design-Builder’s Application
for Payment in accordance with Article 6 of the General Conditions of Contract.

7.1.2 Owner shall make payment within ten (10) days after Owner’s receipt of each properly
submitted and accurate Application for Payment in accordance with Article 6 of the General
Conditions of Contract, but in

			
	 	 	 
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each case less the total of payments previously made, and less amounts properly withheld under
Section 6.3 of the General Conditions of Contract.

7.2 Retainage on Progress Payments

7.2.1 Owner will retain ten percent ( 10%) of each payment provided, however, that when fifty
percent (50%) of the Work ($23,059,500.00 aggregate payment) has been completed by Design-Builder,
Owner will not retain any additional amounts from Design-Builder’s subsequent payments, unless
there is less than $2,305,950.00 total retainage. Owner will also reasonably consider reducing
retainage for Subcontractors completing their work early in the Project.

7.2.2 Upon Substantial Completion of the entire Work or, if applicable, any portion of the Work,
pursuant to Section 6.6 of the General Conditions of Contract, Owner shall release to
Design-Builder all retained amounts relating, as applicable, to the entire Work or completed
portion of the Work, less an amount equal to the reasonable value of all remaining or incomplete
items of Work as noted in the Certificate of Substantial Completion, provided that such payment
shall only be made if Design-Builder has met the Performance Guarantee Criteria listed in Exhibit
A.

7.3 Final Payment. Design-Builder shall submit its Final Application for Payment to Owner
in accordance with Section 6.7 of the General Conditions of Contract. Owner shall make payment on
Design-Builder’s properly submitted and accurate Final Application for Payment within thirty (30)
days after Owner’s receipt of the Final Application for Payment, provided that Design-Builder has
satisfied the requirements for final payment set forth in Section 6.7.2 of the General Conditions
of Contract and Design-Builder has met the Performance Guarantee Criteria listed in Exhibit A.

7.4 Interest. Payments which are due and unpaid by Owner to Design-Builder, whether progress
payments or final payment, shall bear interest commencing five (5) days after payment is due at the
rate of eighteen percent (18%) per annum.

7.5 Record Keeping and Finance Controls. With respect to changes in the Work performed on a cost
basis by Design-Builder pursuant to the Contract Documents, Design-Builder shall keep full and
detailed accounts and exercise such controls as may be necessary for proper financial management,
using accounting and control systems in accordance with generally accepted accounting principles
and as may be provided in the Contract Documents. During the performance of the Work and for a
period of three (3) years after Final Payment, Owner and Owner’s accountants shall be afforded
access from time to time, upon reasonable notice, to Design-Builder’s records, books,
correspondence, receipts, subcontracts, purchase orders, vouchers, memoranda and other data
relating to changes in the Work performed on a cost basis in accordance with the Contract
Documents, all of which Design-Builder shall preserve for a period of three (3) years after Final
Payment.

Article 8

Termination for Convenience

8.1 Upon ten (10) days’ written notice to Design-Builder, Owner may, for its convenience and
without cause, elect to terminate this Agreement. In such event, Owner shall pay Design-Builder
for the following:

	 	.1	 	All Work executed, and for proven loss, cost or expense in connection with the
Work;

			
	 	 	 
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	 	.2	 	The reasonable costs and expenses attributable to such termination, including
demobilization costs and amounts due in settlement of terminated contracts with
Subcontractors and Design Consultants; and
	 
	 	.3	 	Overhead and profit margin in the amount of fifteen percent ( 15 %) on the sum
of items .1 and .2 above, except that overhead and profit shall not be due regarding
amounts due in settlement of terminated contracts with subcontractors and design
consultants.

8.2 In addition to the amounts set forth in Section 8.1 above, Design-Builder shall be entitled to
receive all retainage withheld by Owner.

8.3 If Owner terminates this Agreement pursuant to Section 8.1 above and proceeds to design
and construct the Project through its employees, agents or third parties, Owner’s rights to use the
Work Product shall be as set forth in Section 4.3 hereof.

Article 9

Representatives of the Parties

9.1 Owner’s Representatives

9.1.1 Owner designates the individual listed below as its Senior Representative (“Owner’s Senior
Representative”), which individual has the authority and responsibility for avoiding and resolving
disputes under Section 10.2.3 of the General Conditions of Contract: (Identify individual’s
name, title, address and telephone numbers)

Steve Myers

Director and Vice President

US BioEnergy Corporation

111 Main Avenue, Suite 200

Brookings, SD 57006

(605) 696-3150

9.1.2 Owner designates the individual listed below as its Owner’s Representative, which individual
has the authority and responsibility set forth in Section 3.4 of the General Conditions of
Contract: (Identify individual’s name, title, address and telephone numbers)

Mike Malecha

Sr. Vice President

United Bio Energy (“UBE”)

2868 N. Ridge Road

Wichita, KS 67205

(316) 616-3530

9.2 Design-Builder’s Representatives

9.2.1 Design-Builder designates the individual listed below as its Senior Representative
(“Design-Builder’s Senior Representative”), which individual has the authority and responsibility
for avoiding and resolving disputes under Section 10.2.3 of the General Conditions of Contract:
(Identify individual’s name, title, address and telephone numbers)

			
	 	 	 
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Roland “Ron” Fagen, CEO and President

501 W. Highway 212

P.O. Box 159

Granite Falls, MN 56241

Telephone: (320) 564-3324

9.2.2 Design-Builder designates the individual listed below as its Design-Builder’s
Representative, which
individual has the authority and responsibility set forth in Section 2.1.1 of the General
Conditions of Contract: (Identify individual’s name, title, address and telephone numbers)

Aaron Fagen

Chief Operating Officer

501 W. Highway 212

P.O. Box 159

Granite Falls, MN 56241

Telephone: (320) 564-3324

Article 10

Bonds and Insurance

	 	10.1	 	Insurance. Design-Builder shall procure in accordance with Article 5 of the General
Conditions of Contract the following insurance coverage: A certificate of insurance will be
provided prior to starting construction. Policy limits shall be as follows:

	 	 	 	 	 
	Commercial General Liability:
	 	 	 	 
	 
	 	 	 	 
	General Aggregate
	 	$	2,000,000	 
	Products-Comp/Op AGG
	 	$	2,000,000	 
	Personal & Adv Injury
	 	$	1,000,000	 
	Each Occurrence
	 	$	1,000,000	 
	Fire Damage (Any one fire)
	 	$	50,000	 
	Med Exp (Any one person)
	 	$	5,000	 
	 
	 	 	 	 
	Automobile Liability:
	 	 	 	 
	Combined Single Limit
	 	$	1,000,000	 
	 
	 	 	 	 
	Excess Liability — Umbrella Form
	 	 	 	 
	Each Occurrence
	 	$	20,000,000	 
	Aggregate
	 	$	20,000,000	 
	 
	 	 	 	 
	Workers Compensation and
Employers’ Liability:
	 	 	 	 
	Statutory Limits:
	 	 	 	 
	Each Accident
	 	$	1,000,000	 
	Disease-Policy Limit
	 	$	1,000,000	 
	Disease-Each Employee
	 	$	1,000,000	 

			
	 	 	 
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	Contractor’s Professional Liability Coverage:
	 	 	 	 
	Per Claim
	 	$	5,000,000	 
	Aggregate
	 	$	5,000,000	 

Owner shall provide the following within 10 days of Design-Builder’s receipt of Owner’s

Notice to Proceed, or at Financial Close, whichever occurs first:

• Owner shall obtain a builder’s risk policy naming Owner as the insured, with
Design-Builder as additional insured, in an amount not less than the Contract Price.

• Owner shall also obtain Boiler and Machinery Insurance protecting Owner,
Design-Builder, Design Consultants, Subcontracts and Subcontractors.

• In addition, Owner shall obtain terrorism coverage as described by the Terrorism
Risk Insurance Act of 2002.

Article 11

Other Provisions

11.1 Other provisions, if any, are as follows:

	 	•	 	Performance Guarantee: The Design-Builder guarantees the Criteria listed in Exhibit
A. If there is a performance shortfall, Design-Builder will pay all design,
engineering, equipment, and construction costs associated with making the necessary
corrections. Design-Builder retains the right to use its sole discretion in
determining the method to remedy any performance related issues.
	 
	 	•	 	If Owner, for whatever reason, prevents Design-Builder from demonstrating the
Performance Guarantee Criteria within 30 days of Design-Builder’s notice that the Project is
ready for Performance Testing, Design-Builder is thereby deemed to have fulfilled all of its
Performance Guarantee obligations listed in Exhibit A.
	 
	 	•	 	Price Guarantee: The Design-Builder guarantees the Contract Price for the Work
delineated by the Contract Documents. Any and all price increases would require, in
addition to Owner’s approval, the approval of Owner’s senior lender.
	 
	 	•	 	Winter Construction: Owner shall have no responsibility for any winter construction
related activities including, but not limited to, special material costs, sheltering,
heating, and equipment rental, except that Owner shall pay all the reasonable costs
incurred for frost removal including, but not limited to, equipment costs, equipment
rental costs, and associated labor costs so that winter construction can proceed.
	 
	 	•	 	Design-Builder shall obtain or cooperate in obtaining a performance bond if such a
bond is requested by Owner. If the bond is obtained by Design-Builder, Owner shall pay
Design-Builder for the cost of the bond, plus pay Design-Builder a fee of 7.5%, said
fee calculated by multiplying 7.5% on the cost of the bond. If purchased by Owner,
Owner shall pay all costs of obtaining the bond.

In executing this Agreement, Design-Builder represents that it has the necessary financial
resources to fulfill its obligations under this Agreement and has the necessary corporate approvals
to execute this Agreement and perform the services described herein. Owner represents that it has
the necessary organizational approvals to

			
	 	 	 
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execute this Agreement; that Owner is seeking financing
for the project and that Owner agrees to
keep Design-Builder informed of Owner’s progress in obtaining commitments for and closing on such
financing.

	 	 	 
	OWNER:

	 	DESIGN-BUILDER:
	 
	 	 
	Superior Corn Products, LLC

	 	Fagen, Inc.
	 

	 	 
	(Name of Owner)

	 	(Name of Design-Builder)
	 
	 	 
	/s/ CHAD D. HATCH

	 	/s/ RON FAGEN
	 

	 	 
	(Signature)

	 	(Signature)
	 
	 	 
	Chad D. Hatch

	 	Roland “Ron” Fagen
	 

	 	 
	(Printed Name)

	 	(Printed Name)
	 
	 	 
	Vice President and Chief Financial Officer

	 	CEO and President
	 

	 	 
	(Title)

	 	(Title)
	 
	 	 
	Date: 08/26/05

	 	Date: 09/30/05

			
	 	 	 
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Design Build Contract

Superior Corn Products, LLC

August 26, 2005

EXHIBIT A

Performance Guarantee Criteria

Table 1

	 	 	 	 	 	 	 
	Criteria	 	Specification	 	Testing Statement	 	Documentation
	Plant Capacity -

fuel grade ethanol

	 	Operate at a rate
of 45 million
gallons per year of
denatured fuel
grade ethanol
meeting the
specifications of
ASTM 4806 based on
353 days of
operation per
calendar year and
4.76% denaturant.
	 	24 hour performance

test
	 	Production records
and a written
report by
Design-Builder.
	 
	 	 	 	 	 	 
	Plant Capacity -

fuel grade ethanol

	 	Operate at a rate
of 40 million
gallons per year of
denatured fuel
grade ethanol
meeting the
specifications of
ASTM 4806 based on
353 days of
operation per
calendar year and
4.76% denaturant.
	 	Seven day

performance test
	 	Production records
and a written
report by
Design-Builder.
	 
	 	 	 	 	 	 
	Dried Distillers 

Grains with 

Solubles (DDGS)

	 	Dry all DDGS to
produce 11%
moisture DDGS
	 	Seven day

performance test
	 	Production records
and written
analysis by
Design-Builder.
	 
	 	 	 	 	 	 
	Corn to Ethanol
Conversion ratio;
*****

	 	Not be less
than 2.80 denatured
gallons of ethanol
per bushel (56#) of
corn
	 	As determined by
meter readings
during a seven day
performance test.
	 	Production records
and written
analysis by
Design-Builder.
	 
	 	 	 	 	 	 
	Electrical Energy

	 	0.75 kWh per
denatured gallon of
fuel grade ethanol
*****
	 	As determined by
meter readings
during a seven day
performance test.
	 	Production records
and written
analysis by
Design-Builder.

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	Criteria	 	Specification	 	Testing Statement	 	Documentation
	Natural Gas

	 	Shall not exceed
34,000 Btu per
denatured gallon of
fuel grade ethanol
and 100% of all DDG
with syrup to 11%
moisture.
(This Performance
Criteria relates to
production of
ethanol and
excludes any
natural gas usage
that may occur for
drying corn.)
	 	As determined by
meter readings
during a seven day
performance test.
	 	Production records
and written
analysis by
Design-Builder.
	 
	 	 	 	 	 	 
	Process Water 

Discharge

	 	Zero gallons under

normal operations
	 	Process discharge

meter
	 	Control System
reports
	 
	 	 	 	 	 	 
	Air Emissions

	 	Must meet the
requirements
prescribed as of
the date hereof by
the State of
Michigan Department
of Environmental
Quality for a
synthetic minor
source.
	 	As required by
State agency and
performed by
Owner’s Air
Emission Tester.
	 	Written report by
Owner’s Air
Emission Tester.

DISCLAIMER: Owner’s failure to materially comply with the operating procedures issued by ICM,
Inc./Fagen, Inc. shall void all performance guaranties and warranties set forth in this
Design-Build Agreement.

Owner understands that the startup of the plant requires resources and cooperation of the Owner,
vendors and other suppliers to the project. Design-Builder disclaims any liability and Owner
indemnifies Design-Builder for non-attainment of the Performance Guarantee Criteria directly or
indirectly caused by material non-performance or negligence of third parties not retained by
Design-Builder.

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Design Build Contract

Superior Corn Products, LLC

August 26, 2005

EXHIBIT B

General Project Scope

Construct a 45 million-gallon per year (MGY) dry mill fuel ethanol plant near Lake Odessa,
Michigan. The plant will grind approximately 16 million bushels per year to produce approximately
45 MGY of denatured fuel ethanol. The plant will also produce approximately 144,000 tons per year
of 11% moisture dried distillers grains with solubles (DDGS), and approximately 136,000 tons per
year of raw carbon dioxide (CO2) gas.

Delivered corn will be dumped in the receiving building. The receiving building will have two
truck grain receiving bays and a rail receiving bay, including an underground conveyor from the
rail pit to the second truck receiving bay both of which share a common receiving leg. Said
receiving building shall have sufficient height to accommodate end-dump trailers. The truck driver
will drive onto the scale located near the administration building, be weighed and sampled, then
drive to the receiving building, dump the grain, then proceed back to the scale and obtain a final
weight ticket from the scale operator. The trucks will not be required to move during the
unloading process in the receiving building. Maximum truck dump time is ten minutes. Two
independent 15,000-bushel legs will lift the corn to one of two 200,000 — bushel concrete storage
bins. A dust collection system will be installed on the grain receiving system to limit
particulate emissions as described in the Air Quality Permit application. There is also a RR car
scale for receiving corn by rail and loading DDGS in rail and trucks.

Ground corn will be mixed in a slurry tank, routed through a pressure vessel and steam flashed off
in a flash vessel. Cooked mash will continue through liquefaction tanks and into one of three
fermenters. Simultaneously, propagated yeast will be added to the mash as the fermenter is
filling. After batch fermentation is complete, the beer will be pumped to the beer well and then
to the beer column to vaporize the alcohol from the mash.

Alcohol streams are dehydrated in the rectifier column, the side stripper and the molecular sieve
system. Two hundred proof alcohol is pumped to the tank farm day tank and blended with five
percent natural gasoline as the product is being pumped into one of two 750,000 gallon final
storage tanks. Loading facilities for truck and rail cars will be provided. Tank farm tanks
include: one tank for 190 proof storage, one tank for 200 proof storage, one tank for denaturant
storage and two 750,000 gallon tanks for denatured ethanol storage.

Corn mash from the beer striper is dewatered in the centrifuge(s). Wet cake from the centrifuge(s)
is conveyed to the DDGS dryer system. Wet cake is conveyed from the centrifuges to the dryer where
the water is removed from the cake and the product is dried to 11% moisture. A modified wet or wet
cake pad is located along side the DDGS dryer building to divert modified wet or wet cake to the

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Design Build Contract

Superior Corn Products, LLC

August 26, 2005

pad
when necessary or for limited production of modified wet or wet cake for sales. Water in the thin
stillage is
evaporated and recycled by the Bio-Methanation system. Syrup is added to the wet cake entering the
dryer. DDGS is pneumatically conveyed to flat storage in the DDGS storage building. Shipping is
accomplished by scooping and pushing the product with a front-end loader into an in-floor conveyor
system. The DDGS load out pit has capacity for approximately one semi-trailer load. DDGS is
weighed with the truck/rail car platform scales.

Fresh water for the boilers, cooking, cooling tower and other processes will be obtained from the
Owner supplied water pretreatment system. Boiler water conditioned in regenerative softeners will
be pumped through a deaerator scrubber and into a deaerator tank. Appropriate boiler chemicals
will be added as preheated water is sent to the boiler.

Steam energy will be provided by one Thermal Oxidizer (TO) driven boiler system utilizing a high
percentage of condensate return to a condensate receiver tank.

The TO/Heat Recovery Steam Generator is a process used to thermally oxidize the exhaust gasses from
the Dryers. This process will be used to reduce VOCs and particulates that are in the dryer
exhaust and ensure compliance with environmental regulations. The energy required to complete
thermal oxidization will then be ducted to a waste heat boiler that will produce 100% of the steam
requirements of the ethanol plant. The exhaust gasses from the waste heat boiler will be ducted
through stack gas economizer(s) to recover the maximum amount of energy possible from the exhaust
gas stream. After the economizer(s), the gas stream will be vented to atmosphere through a stack.

The process will be cooled by circulating water through heat exchangers, a chiller, and a cooling
tower.

The design includes a compressed air system consisting of air compressor(s), a receiver tank,
pre-filter, coalescing filter, and double air dryer(s).

The design also incorporates the use of a clean-in-place (CIP) system for cleaning cook,
fermentation, distillation, evaporation, centrifuges, and other systems. Fifty percent caustic
soda is received by truck and stored in a tank.

Under normal operating circumstances, the plant will not have any wastewater discharges that have
been in contact with corn, corn mash, cleaning system, or contact process water. An ICM/Phoenix
Bio-Methanator will reduce the BOD in process water allowing complete reuse within the plant. The
plant will have blowdown discharges from the cooling tower and may have water discharge from any
water pre-treatment processes. Owner shall provide on-site connection to sanitary sewer or

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Design Build Contract

Superior Corn Products, LLC

August 26, 2005

septic
system.

Most plant processes are computer controlled by a Siemens/Moore APACS distributed control system
with graphical user interface and three workstations. The control room control console will have
dual monitors to facilitate operator interface between two graphics screens at the same time.
Additional programmable logic controllers (PLCs) will control certain process equipment. Design
Builder provides lab equipment.

The cooking system requires the use of anhydrous ammonia, and other systems require the use of
sulfuric acid. Therefore, a storage tank for ammonia and a storage tank for acid will be on site
to provide the quantities necessary. The ammonia storage requires that plant management implement
and enforce a Process Safety Management (PSM) program. The plant design may require additional
programs to ensure safety and to satisfy regulatory authorities.

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Design Build Contract

Superior Corn Products, LLC

August 26, 2005

EXHIBIT C

Owner’s Responsibilities

The Owner shall perform and provide the permits, authorizations, services and construction as
specifically described hereafter:

	1)	 	Land and Grading – Owner shall provide a site near or in Lake Odessa, Michigan. Owner shall
obtain all legal authority to use the site for its intended purpose and perform technical due
diligence to allow Design-Builder to perform including, but not limited to, proper zoning
approvals, building permits, elevation restrictions, soil tests, and water tests. The site
shall be rough graded per Design-Builder specifications and be +/- three inches of final grade
including the rough grading for Site roadways. The site soils shall be modified as required
to provide a minimum allowable soil bearing pressure as described in Table 1.
	 
	 	 	Other items to be provided by the Owner include, but are not limited to, the following: initial
site survey (boundary and topographic) as required by the Design-Builder, layout of the property
corners including two construction benchmarks, Soil Borings and subsequent Geotechnical Report
describing recommendation for Roads, foundations and if required, soil
stabilization/remediation, land disturbance permit, erosion control permit, site grading as
described above with minimum soil standards, placement of erosion control measures, plant access
road from a county, state or federal road designed to meet local county road standards, plant
storm and sanitary sewers, fire water system with hydrants and plant water main branches taken
from the system to be within five feet of the designated building locations, all tanks, motors
and other equipment associated with or necessary to operate the fire water loop and associated
systems, plant roads as specified and designed for the permanent elevations and effective depth,
“construction” grading plan as drawn (including site retention pond), plant water well and
associated permit(s). Owner shall also provide the final grading, seeding and mulching, and
site fencing at the site.
	 
	 	 	Owner is encouraged to obtain preliminary designs/information and estimates of the cost of
performing all Owner required permits and services as stated in this Exhibit C. Specifically,
the cost of the fire water systems (including associated fire water pumps, required tank,
building (if required), sprinklers, and all other equipment and materials associated with the
fire water delivery systems) is estimated being in excess of $400,000. The requirements of each
state and the decisions of each Owner will increase or decrease the actual cost.
	 
	 	 	The Owner’s required activities related to site preparation for construction are to be divided
into Phase I and Phase II activities as described below:

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Deliverables by Owner prior to start of Phase 1 Civil Design:

Procure Boundary & Topographic Survey (to one foot contours)

Procure Soil Borings and Geotechnical Report with recommendations (at Design-Builder’s
requested locations and depth)

Phase 1 (Deliverable Site):

Design-Builder provides engineering services to develop these items:

	 	1.	 	Final Plant Layout with FFE and Top of Road Elevations
	 
	 	2.	 	Final Cut/Fill Quantity Calculations
	 
	 	3.	 	Grading and Erosion Control Plan
	 
	 	4.	 	Clear & Grubbing Plan — graded to +/- 3” of subgrade
	 
	 	 	 	Subgrade is defined as 1’ below proposed Building FFE and Administration
Building FFE and 20” to 30” (based on rail designer input) below top of rail
for the rail spurs. Subgrade for the in-plant roads will be determined upon
recommendations from the geotechnical engineer (12” to 24” below final top
of road)

 

			
	*	 	Owner shall prepare site according to Design-Builder’s engineering plans for the above
items.

Plant Access Road and all in-plant roads (which will act as base for final roadway
system)

Soil Stabilization

Site Grading

Replacement Fill

Construction Layout (parking, laydown, access areas, temp. drainage)

Storm Water Drainage & Detention

Phase 2 Site Work (Final Civil Design Plans):

Design-Builder provides engineering services to develop these items:

     Site Utilities (Within Property Line):

	 	1.	 	Sanitary Sewer System
	 
	 	2.	 	Potable Water Supply and Distribution
	 
	 	3.	 	Process Water Supply and Distribution
	 
	 	4.	 	Gas Supply and Distribution
	 
	 	5.	 	Fire Loop and Fire Protection System
	 
	 	6.	 	Site Electric
	 
	 	7.	 	Site Natural Gas

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Wells and Well Pumps (supply of sufficient quantity for construction activities)
Minimum 3 Phase, 480 Volt, 1,000 KVA Electrical Power Available for Construction at two
locations (at Design-Builder’s requested location)

Design/Builder shall be reimbursed on a “Time & Material” basis for any management of these
Owner requirements and any design engineering requested by the Owner not otherwise
required to be provided by Design-Builder pursuant to this Agreement.

	2)	 	Permits - Owner shall obtain all Operating Permits including, but not limited to, air quality
permits, in a timely manner to allow startup of the plant as designed by Design-Builder.
Owner shall obtain all testing and site inspections required to secure the necessary operating
permits.
	 
	3)	 	Storm Water Runoff Permit – Owner shall obtain the construction storm – water runoff permit,
permanent storm-water runoff permit, and the erosion control/land disturbance permit.
	 
	4)	 	Michigan Pollutant Elimination Discharge Permit – Owner shall obtain a permit to discharge
cooling tower water and reverse osmosis (“R.O.”) reject water and any other waste water
directly to a designated waterway or other location Owner shall supply the discharge piping to
transport to the designated waterway or other location.
	 
	5)	 	Natural Gas Supply and Service Agreement – Owner shall procure and supply a continuous supply
of natural gas of at least 1.5 billion cubic feet per year, at a minimum rate of 180-220 MCF
per hour and at a pressure of at least 200 psig at the plant site, then reduced to 60 psig for
distribution to the use points. Pressure reducing stations must be located so as to provide
stable pressure and temperature at the point of use. Owner shall provide all gas piping to
the use points and supply meters and regulators to provide burner tip pressures as specified
by Design-Builder. Owner shall also supply a digital flowmeter on-site with appropriate
output for monitoring by the plant’s computer control system.
	 
	6)	 	Electrical Service – (1) The Owner is responsible to secure continuous service from an energy
supplier to serve the facility. The service from the energy supplier shall be of sufficient
size to provide at a minimum 10 MW of electrical capacity to the site. (2) The Owner is
responsible for procurement, installation and maintenance of the site distribution system,
including but not limited to the required substation and all associated distribution lines,
switchgear, sectional cabinets, distribution transformers, transformer pads, etc. An on-site
primary digital meter is also to be supplied for monitoring of electrical usage and demand.
This meter must have the capability to be monitored via a telephone line or other electrical
signal. (3) The responsibility of
the Design-Builder starts at the secondary electrical terminals of the site distribution system
transformers that have been installed by Owner (i.e., the 480 volt terminals for the process

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	 	 	building transformers; the 480 volt terminals for the energy center transformers; the 480 volt
terminals for the grains transformer; the 480 volt terminals for the pumphouse transformer; and
the 4160 volt terminals for the chiller transformer; and the 4160 volt terminals of the thermal
oxidizer transformer). (4) The site distribution system requirements, layout, and meters are to
be determined jointly by the Owner, the Design-Builder and the energy supplier.
	 
	 	 	Design-Builder will be providing soft start motor controllers for all motors greater than 150
horsepower and where demanded by process requirements. Owner is encouraged to discuss with its
electrical service supplier whether additional soft start motor controllers are advisable for
this facility and such can be added, with any increased cost being an Owner’s cost.
	 
	 	 	Design-Builder will provide power factor correction to 0.92 lagging at plant nameplate capacity.
Owner is encouraged to discuss with its electrical service supplier any requirements for power
factor correction above 0.92 lagging. Additional power factor correction can be added with any
increased cost being an Owner’s cost.
	 
	7)	 	Water Supply and Service Agreement – Owner shall supply on-site process wells or other water
source capable of providing a quantity of water which includes process water, R.O. feed water,
cooling tower make-up water, of a quality which will allow discharges to comply with NPDES
limits. Owner should consider providing a redundant supply source. Design-Builder shall
provide the standard zeolite water softener system. Any increased costs incurred for another
water treatment system if water does not meet the quality requirements shall be the
responsibility of the Owner. Owner will supply one process fresh water supply line
terminating within five (5) feet of the point of entry designated by Design-Builder, one
potable supply line terminating within five (5) feet of the process building at a point of
entry designated by Design-Builder, and one potable supply line to the administration building
at a point of entry designated by administration building contractor.
	 
	 	 	Owner is advised that most projects require a reverse osmosis system. Such system is an Owner’s
cost and Owner is advised that the purchase and installation cost of such a reverse osmosis
system may exceed $400,000. Owner is also advised that such systems may be leased if Owner
desires to avoid the costs of owning such a system.
	 
	8)	 	Wastewater Discharge System, Permits and/or Service Agreement – Owner shall provide the
discharge piping, septic tank and drainfield system or connect to municipal system as required
for the sanitary sewer requirements of the Plant. These provisions shall comply with all
federal, state, and local regulations, including any permitting issues.
	 
	9)	 	Roads and Utilities – Owner shall provide and maintain the ditches and permanent roads,
including the gravel, pavement or concrete, with the roads passing standard compaction tests.

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	 	 	(Design-Builder will maintain aggregate construction roads during construction of the Plant
and will return to original pre-construction condition prior to Owner completing final grade
and surfacing.)
	 
	 	 	Except as otherwise specifically stated herein the Owner shall install all utilities so that
they are within five (5) feet of the designated building/structure locations.
	 
	10)	 	Administration Building – The administration building – one story free standing, office
computer system, telephone system, office copier and fax machine and office furniture and any
other office equipment and personal property for the administration building shall be the sole
and absolute cost and responsibility of Owner and Design-Builder shall have no responsibility
in regards thereto.
	 
	11)	 	Maintenance and Power Equipment – The maintenance and power equipment as described in Table 2
and any other maintenance and power equipment as required by the plant or desired by Owner
shall be the sole and absolute cost and responsibility of Owner and Design-Builder shall have
no responsibility in regards thereto.
	 
	12)	 	Railroads – Owner is responsible for any costs associated with the railroads including, but
not limited to, all rail design and engineering and construction and Design-Builder shall have
no responsibility in regards thereto.
	 
	13)	 	Drawings – Owner shall supply drawings to Design-Builder of items supplied under items 10)
and 12) and also supply Phase II redline drawings.
	 
	14)	 	Fire Protection System – Fire protection system requirements vary by governmental
requirements per location and by insurance carrier requirements. Owner is responsible to
provide the required fire protection system for the Plant. This may include storage tanks,
pumps, underground fire water mains, fire hydrants, foam or water monitor valves, sprinkler
systems, smoke and heat detection, deluge systems, or other provisions as required by
governmental codes or Owner’s insurance carrier’s fire protection criteria. Design-Builder
will provide assistance to the Owner on a “Time & Material” basis for design and/or
construction of the Fire Protection Systems required for the plant.

Table 1 Minimum Soil Bearing Pressure – Responsibility of Owner

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	 	 	Required Allowable Soil Bearing Pressure
	Description	 	(pounds per square foot)
	Grain Storage Silos

	 	 	8,000	 
	Cook Water Tank

	 	 	3,500	 
	Methanator Feed Tank

	 	 	3,500	 
	Liquifaction Tank #1

	 	 	3,500	 
	Liquifaction Tank #2

	 	 	3,500	 
	Fermentation Tank #1

	 	 	4,000	 
	Fermentation Tank #2

	 	 	4,000	 
	Fermentation Tank #3

	 	 	4,000	 
	Beerwell

	 	 	4,000	 
	Whole Stillage Tank

	 	 	3,500	 
	Thin Stillage Tank

	 	 	3,500	 
	Syrup Tank

	 	 	3,500	 
	190 Proof Day Tank

	 	 	3,000	 
	200 Proof Day Tank

	 	 	3,000	 
	Denaturant Tank

	 	 	3,000	 
	Fire Water Tank

	 	 	3,000	 
	Denatured Ethanol Tank #1

	 	 	4,000	 
	Denatured Ethanol Tank #2

	 	 	4,000	 
	All Other Areas

	 	 	3,000	 

Table 2 Maintenance and Power Equipment – Responsibility of Owner

	 	 	 
	Description	 	Additional Description
	Spare Parts

	 	Spare parts
	 

	 	Parts bins
	 

	 	Misc. materials, supplies and equipment
	 
	 	 
	Shop supplies and equipment

	 	One shop welder
	 

	 	One portable gas welder
	 

	 	One plasma torch
	 

	 	One acetylene torch
	 

	 	One set of power tools
	 

	 	Two sets of hand tools with tool boxes
	 

	 	Carts and dollies
	 

	 	Hoists (except centrifuge overhead crane)
	 

	 	Shop tables

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	Description	 	Additional Description
	 

	 	Maintenance office furnishings & supplies
	 

	 	Fire Extinguishers
	 

	 	Reference books
	 

	 	Safety manuals
	 

	 	Safety cabinets & supplies, etc.
	 
	 	 
	Rolling stock

	 	Used 1 1/2 yard front end loader
	 

	 	New Skid loader
	 

	 	Used Fork lift
	 

	 	Used Scissors lift, 30 foot
	 

	 	Used Pickup truck
	 

	 	Track Mobile

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EXHIBIT D

LICENSE AGREEMENT

THIS LICENSE AGREEMENT (this “License Agreement”) is entered into and made effective as of the
                day of                                         , 2005 (“Effective Date”) by and between Superior Corn Products,
LLC, a limited liability company (“OWNER”), and ICM, Inc., a Kansas corporation (“ICM”).

     WHEREAS, OWNER has entered into that certain Design-Build Lump Sum Contract dated August 26,
2005 (the “Contract”) with Fagen, Inc., a Minnesota corporation (“Fagen”), under which Fagen is to
design and construct a 45 million gallon per year ethanol plant for OWNER to be located in or near
Lake Odessa, Michigan (the “Plant”);

     WHEREAS, ICM has granted Fagen the right to use certain proprietary technology and information
of ICM in the design and construction of the Plant; and

     WHEREAS, OWNER desires from ICM, and ICM desires to grant to OWNER, a license to use such
proprietary technology and information in connection with OWNER’s ownership and operation of the
Plant, all upon the terms and conditions set forth herein;

     NOW, THEREFORE, the parties, in consideration of the foregoing premises and the mutual
promises contained herein and for other good and valuable consideration, receipt of which is hereby
acknowledged, agree as follows:

1. ICM grants to OWNER a limited license to use the Proprietary Property (hereinafter defined)
solely in connection with the design, construction, operation, maintenance and repair of the
Plant, subject to the limitations provided herein (the “Purpose”). In the event OWNER fails to
pay to Fagen all amounts due and owing Fagen under the Contract or the Contract is terminated
for any reason prior to the substantial completion of the Plant, ICM may terminate the limited
license granted to OWNER herein upon written notice to OWNER.

2. The “Proprietary Property” means, without limitation, documents, Operating Procedures
(hereinafter defined), materials and other information that are furnished by ICM to OWNER,
whether directly or indirectly through Fagen, in connection with the Purpose including, without
limitation, the design, arrangement, configuration, and specifications of (i) the combinations
of distillation, evaporation, and alcohol dehydration equipment (including, but not limited to,
pumps, vessels, tanks, heat exchangers, piping, valves and associated electronic control
equipment) and all documents supporting those combinations; (ii) the combination of the
distillers grain drying (DGD), and heat recovery steam generation (HRSG) equipment (including,
but not limited to, pumps, vessels, tanks, heat exchangers, piping and associated electronic
control equipment) and all documents supporting those combinations; and (iii) the computer
system, known as the distributed control system (DCS and/or PLC) (including, but not limited to,
the software configuration, programming, parameters, set points, alarm points, ranges, graphical
interface, and system hardware connections) and all documents supporting that system. The

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“Operating
Procedures” means, without limitation, the process equipment and specifications manuals,
standards of quality, service protocols, data collection methods, construction specifications,
training methods, engineering standards and any other information prescribed by ICM from time to
time concerning the Purpose. Proprietary Property shall not include any information or
materials that OWNER can demonstrate by written documentation: (i) was lawfully in the
possession of OWNER prior to disclosure by ICM; (ii) was in the public domain prior to
disclosure by ICM; (iii) was disclosed to OWNER by a third party other than Fagen having the
legal right to possess and disclose such information or materials; or (iv) after disclosure by
ICM comes into the public domain through no fault of OWNER or its directors, officers,
employees, agents, contractors, consultants or other representatives (hereinafter collectively
referred to as “Representatives”). Information and materials shall not be deemed to be in the
public domain merely because such information is embraced by more general disclosures in the
public domain, and any combination of features shall not be deemed to be within the foregoing
exceptions merely because individual features are in the public domain if the combination itself
and its principles of operation are not in the public domain.

3. OWNER shall not use the Proprietary Property for any purpose other than the Purpose. OWNER
shall not use the Proprietary Property in connection with any expansion or enlargement of the
Plant.

4. OWNER’s failure to materially comply with the Operating Procedures shall void all guarantees,
representations and warranties, whether expressed or implied, if any, that were given by ICM to
OWNER, directly or indirectly through Fagen, concerning the performance of the Plant that ICM
reasonably determines are materially affected by OWNER’s failure to materially comply with such
Operating Procedures. OWNER agrees to indemnify, defend and hold harmless ICM, Fagen and their
respective Representatives from any and all losses, damages and expenses including, without
limitation, reasonable attorneys’ fees resulting from, relating to or arising out of (a) Owner’s
or its Representatives’ failure to materially comply with the Operating Procedures or (b)
negligent or unauthorized use of the Proprietary Property.

5. Any and all modifications to the Proprietary Property by OWNER or its Representatives shall
be the property of ICM. OWNER shall promptly notify ICM of any such modification and OWNER
agrees to assign all right, title and interest in such modification to ICM; provided, however,
OWNER shall retain the right, at no cost, to use such modification in connection with the
Purpose.

6. ICM has the exclusive right and interest in and to the Proprietary Property and the goodwill
associated therewith. OWNER will not, directly or indirectly, contest ICM’s ownership of the
Proprietary Property. OWNER’s use of the Proprietary Property does not give OWNER any ownership
interest or other interest in or to the Proprietary Property except for the limited license
granted to OWNER herein.

7. OWNER shall pay no license fee or royalty to ICM for OWNER’s use of the Proprietary Property
pursuant to the limited license granted to OWNER, the consideration for this limited license is
included in the amounts payable by OWNER to Fagen for the construction of the Plant under the
Contract.

8. OWNER may not assign the limited license granted herein, in whole or in part,
without the prior written consent of ICM, which will not be unreasonably withheld or delayed.
Prior to any assignment,

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OWNER shall obtain from such assignee a written instrument, in form and substance reasonably
acceptable to ICM, agreeing to be bound by all the terms and provisions of this License
Agreement. Any assignment of this License Agreement shall not release OWNER from (i) its duties
and obligations hereunder concerning the disclosure and use of the Proprietary Property by OWNER
or its Representatives, or (ii) damages to ICM resulting from, or arising out of, a breach of
such duties or obligations by OWNER or its Representatives. ICM may assign its right, title and
interest in the Proprietary Property, in whole or part, subject to the limited license granted
herein.

9. The Proprietary Property is confidential and proprietary. OWNER shall keep the Proprietary
Property confidential and shall use all reasonable efforts to maintain the Proprietary Property
as secret and confidential for the sole use of OWNER and its Representatives for the Purpose.
OWNER shall retain all Proprietary Property at its principal place of business and/or the Plant.
OWNER shall not at any time without ICM’s prior written consent, copy, duplicate, record, or
otherwise reproduce the Proprietary Property, in whole or in part, or otherwise make the same
available to any unauthorized person provided, OWNER shall be permitted to copy, duplicate or
otherwise reproduce the Proprietary Property in whole or in part in connection with the Purpose
so long as all such copies, duplicates or reproductions are kept at its principal place of
business and/or the Plant and are treated the same as any other Proprietary Property. OWNER
shall not disclose the Proprietary Property except to its Representatives who are directly
involved with the Purpose, and even then only to such extent as is necessary and essential for
such Representative’s involvement. OWNER shall inform such Representatives of the confidential
and proprietary nature of such information and, if requested by ICM, OWNER shall obtain from
such Representative a written instrument, in form and substance reasonably acceptable to ICM,
agreeing to be bound by all of the terms and provisions of this License Agreement relating to
the disclosure and use of the Proprietary Property. OWNER shall make all reasonable efforts to
safeguard the Proprietary Property from disclosure by its Representatives to anyone other than
permitted hereby. In the event that OWNER or its Representatives are required by law to
disclose the Proprietary Property, OWNER shall provide ICM with prompt written notice of same so
that ICM may seek a protective order or other appropriate remedy. In the event that such
protective order or other appropriate remedy is not obtained, OWNER or its Representatives will
furnish only that portion of the Proprietary Property which in the reasonable opinion of its or
their legal counsel is legally required and will exercise its reasonable efforts to obtain
reliable assurance that the Proprietary Property so disclosed will be accorded confidential
treatment.

10. OWNER agrees to indemnify ICM for any and all damages (including, without limitation,
reasonable attorneys’ fees) arising out of or resulting from any unauthorized disclosure or use
of the Proprietary Property by OWNER or its Representatives. OWNER agrees that ICM would be
irreparably damaged by reason of a violation of the provisions contained herein and that any
remedy at law for a breach of such provisions would be inadequate. Therefore, ICM shall be
entitled to seek injunctive or other equitable relief in a court of competent jurisdiction
against OWNER or its Representatives for any unauthorized disclosure or use of the Proprietary
Property without the necessity of proving actual monetary loss or posting any bond. It is
expressly understood that the remedy described herein shall not be the exclusive remedy of ICM
for any breach of such covenants, and ICM shall be entitled to seek such other relief or remedy,
at law or in equity, to which it may be entitled as a consequence of any breach of such duties
or obligations.

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11. The duties and obligations of OWNER under this License Agreement, and all provisions
relating to the enforcement of such duties and obligations shall survive and remain in full
force and effect notwithstanding any termination or expiration of the Contract or the license
granted herein under paragraph 1 or 12.

12. ICM may terminate the limited license granted to OWNER herein upon written notice to OWNER
if OWNER willfully or wantonly (a) uses the Proprietary Property for any purpose, or (b)
discloses the Proprietary Property to anyone, in each case other than permitted herein. Upon
termination of the license under paragraph 1 or this paragraph 12, OWNER shall cease using the
Proprietary Property for any purpose (including the Purpose) and, upon request by ICM, shall
promptly return to ICM all documents or other materials in OWNER’s or its Representatives’
possession that contain Proprietary Property.

     13. The laws of the State of Kansas, United States of America, shall govern the validity of
the provisions contained herein, the construction of such provisions, and the interpretation of
the rights and duties of the parties. Any legal action brought to enforce or construe the
provisions of this License Agreement shall be brought in the federal or state courts located in
Wichita, Kansas, and the parties agree to and hereby submit to the exclusive jurisdiction of
such courts and agree that they will not invoke the doctrine of forum non conveniens or other
similar defenses in any such action brought in such courts. In the event the Plant is located
in, or OWNER is organized under the laws of, a country other than the United States of America,
OWNER hereby specifically agrees that any injunctive or other equitable relief granted by a
court located in the State of Kansas, United States of America, or any award by a court located
in the State of Kansas, shall be specifically enforceable as a foreign judgment in the country
in which the Plant is located, OWNER is organized or both, as the case may be, and agrees not to
contest the validity of such relief or award in such foreign jurisdiction, regardless of whether
the laws of such foreign jurisdiction would otherwise authorize such injunctive or other
equitable relief, or award. OWNER agrees that the aggregate recovery of OWNER (and everyone
claiming by or through OWNER), as a whole, under this License Agreement and the Contract against
ICM and ICM’s Representatives, collectively, shall not exceed the amount paid by Fagen to ICM
for the issuance of this License Agreement in connection with the Contract.

     14. OWNER hereby agrees to waive all claims against ICM and ICM’s Representatives for any
consequential damages that may arise out of or relate to this License Agreement, the Contract or
the Proprietary Property whether arising in contract, warranty, tort (including negligence),
strict liability or otherwise, including but not limited to losses of use, profits, business,
reputation or financing. OWNER further agrees that the aggregate recovery of OWNER and Fagen
(and everyone claiming by or through OWNER and Fagen), as a whole, against ICM and ICM’s
Representatives, collectively, for any and all claims that arise out of, relate to or result
from this License Agreement, the Proprietary Property or the Contract, whether arising in
contract, warranty, tort (including negligence), strict liability or otherwise, shall
not exceed the amount paid by Fagen to ICM in connection with the OWNER’s project under the
Contract.

15. The terms and conditions of this License Agreement constitute the entire agreement between
the

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parties with respect to the subject matter hereof and supersede any prior understandings,
agreements or representations by or between the parties, written or oral. Any rule of
construction to the effect that any ambiguity is to be resolved against the drafting party shall
not be applicable in the interpretation of this License Agreement. This License Agreement may
not be modified or amended at any time without the written consent of the parties.

16. All notices, requests, demands, reports, statements or other communications (herein referred
to collectively as “Notices”) required to be given hereunder or relating to this License
Agreement shall be in writing and shall be deemed to have been duly given if transmitted by
personal delivery or mailed by certified mail, return receipt requested, postage prepaid, to the
address of the party as set forth below. Any such Notice shall be deemed to be delivered and
received as of the date so delivered, if delivered personally, or as of the third business day
following the day sent, if sent by certified mail. Any party may, at any time, designate a
different address to which Notices shall be directed by providing written notice in the manner
set forth in this paragraph.

17. In the event that any of the terms, conditions, covenants or agreements contained in this
License Agreement, or the application of any thereof, shall be held by a court of competent
jurisdiction to be invalid, illegal or unenforceable, such term, condition, covenant or
agreement shall be deemed void ab initio and shall be deemed severed from this License
Agreement. In such event, and except if such determination by a court of competent jurisdiction
materially changes the rights, benefits and obligations of the parties under this License
Agreement, the remaining provisions of this License Agreement shall remain unchanged unaffected
and unimpaired thereby and, to the extent possible, such remaining provisions shall be construed
such that the purpose of this License Agreement and the intent of the parties can be achieved in
a lawful manner.

18. The duties and obligations herein contained shall bind, and the benefits and advantages
shall inure to, the respective successors and permitted assigns of the parties hereto.

19. The waiver by any party hereto of the breach of any term, covenant, agreement or condition
herein contained shall not be deemed a waiver of any subsequent breach of the same or any other
term, covenant, agreement or condition herein, nor shall any custom, practice or course of
dealings arising among the parties hereto in the administration hereof be construed as a waiver
or diminution of the right of any party hereto to insist upon the strict performance by any
other party of the terms, covenants, agreement and conditions herein contained.

20. In this License Agreement, where applicable, (i) references to the singular shall include
the plural and references to the plural shall include the singular, and (ii) references to the
male, female, or neuter gender shall include references to all other such genders where the
context so requires.

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IN WITNESS WHEREOF, the parties hereto have executed this License Agreement, the Effective Date of
which is indicated on page 1 of this License Agreement.

	 	 	 
	OWNER:

	 	ICM:
	 
	 	 
	Superior Corn Products, LLC

	 	ICM, Inc.
	 
	 	 
	By: /s/ CHAD D. HATCH

	 	By: /s/ DAVE VANDER GRIEND
	 
	 	 
	Title: Vice President and Chief Financial
Officer

	 	Title: President
	 
	 	 
	Date Signed: 08/26/05

	 	Date Signed: 10/03/05
	 
	 	 
	Address for giving notices:

	 	Address for giving notices:
	 
	 	 
	111 Main Avenue

	 	301 N First Street
	Brookings, SD 57006

	 	Colwich, KS 67030

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EXHIBIT E

START-UP SERVICES TO BE PROVIDED TO OWNER

     Start-up services will be provided to Owner as follows: Electrical and instrumentation
checkout, and approximately two (2) weeks of on-site training at the US Energy Partners Plant
(USEP) in Russell, Kansas, or other location, such to be provided for project Owner employees,
including operators, laboratory personnel, general, plant and maintenance managers. (Other
personnel of the project Owner can be provided such on-site training by separate agreement and as
time is available.) All trainer and costs associated with the trainer, including labor and all
training materials will be provided to Owner without cost. The Owner will be responsible for all
travel and related expenses of its employees and the project Owner will pay all wages for its
personnel during the training and will cover all other expenses related to the on-site training.
Said training services will include training on computers, lab procedures, field operating
procedures, and overall plant section performance expectations. Two persons shall be provided to
lead the Owner during the initialization and start-up of the plant. The Owner will provide all
other personnel and pay all other costs related to start-up of the plant. Personnel will be
maintained on-site by Design-Builder or a subcontractor until all performance testing is complete
and accepted by the Owner, unless the Owner fails to execute or allow performance testing within 30
days after receiving a written request from Design-Builder or its subcontractor to begin
performance testing or the work on the project work is substantially stopped for any reason for a
period of 30 days or more. Design-Builder or its subcontractor will provide an additional one
month on-site support after Substantial Completion start-up of the plant and from date of
Substantial Completion start-up will provide six (6) months of off-site technical and operating
procedure support by telephone, computer modem, the Internet and email.

     Design-Builder shall deliver to Owner all manuals, instructions or other written materials
that it receives from equipment manufacturers and suppliers/vendors of equipment.

29

 

Standard Form of General Conditions

of Contract Between Owner and Design-Builder

This document has important legal consequences. Consultation with

an attorney is recommended with respect to its completion or modification.

Table of Contents

	 	 	 	 	 
	General
	 	 	1	 
	 
	 	 	 	 
	Design-Builder’s Services and Responsibilities
	 	 	1	 
	 
	 	 	 	 
	Owner’s Services and Responsibilities
	 	 	5	 
	 
	 	 	 	 
	Hazardous Conditions and Differing Site Conditions
	 	 	6	 
	 
	 	 	 	 
	Insurance and Bonds
	 	 	7	 
	 
	 	 	 	 
	Payment
	 	 	9	 
	 
	 	 	 	 
	Indemnification
	 	 	11	 
	 
	 	 	 	 
	Time
	 	 	12	 
	 
	 	 	 	 
	Changes to the Contract Price and Time
	 	 	12	 
	 
	 	 	 	 
	Contract Adjustments and Disputes
	 	 	14	 
	 
	 	 	 	 
	Stop Work and Termination for Cause
	 	 	15	 
	 
	 	 	 	 
	Miscellaneous
	 	 	17	 

			
	 	 	 
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Article 1

General

1.1 Mutual Obligations

1.1.1 Owner and Design-Builder commit at all times to cooperate fully with each other, and proceed
on the basis of trust and good faith, to permit each party to realize the benefits afforded under
the Contract Documents.

1.2 Basic Definitions

1.2.1 Agreement refers to the executed contract between Owner and Design-Builder under either DBIA
Document No. 525, Standard Form of Agreement Between Owner and Design-Builder C Lump Sum
(1998 Edition) or DBIA Document No. 530, Standard Form of Agreement Between Owner and
Design-Builder C Cost Plus Fee with an Option for a Guaranteed Maximum Price (1998 Edition).

1.2.2 Day or Days shall mean calendar days unless otherwise specifically noted in the Contract
Documents.

1.2.3 Design Consultant is a qualified, licensed design professional who is not an employee of
Design-Builder, but is retained by Design-Builder, or employed or retained by anyone under contract
with Design-Builder or Subcontractor, to furnish design services required under the Contract
Documents.

1.2.4 Hazardous Conditions are any materials, wastes, substances and chemicals deemed to be
hazardous under applicable Legal Requirements, or the handling, storage, remediation, or disposal
of which are regulated by applicable Legal Requirements.

1.2.5 General Conditions of Contract refer to this DBIA Document No. 535, Standard Form of General
Conditions of Contract Between Owner and Design-Builder (1998 Edition).

1.2.6 Legal Requirements are all applicable federal, state and local laws, codes, ordinances,
rules, regulations, orders and decrees of any government or quasi-government entity having
jurisdiction over the Project or Site, the practices involved in the Project or Site, or any Work.

1.2.7 Owner’s Project Criteria are developed by or for Owner to describe Owner’s program
requirements and objectives for the Project, including use, space, price, time, site and
expandability requirements, as well as submittal requirements and other requirements governing
Design-Builder’s performance of the Work. Owner’s Project Criteria may include conceptual
documents, design criteria, performance requirements and other Project-specific technical materials
and requirements.

1.2.8 Site is the land or premises on which the Project is located.

1.2.9 Subcontractor is any person or entity retained by Design-Builder as an independent contractor
to perform a portion of the Work and shall include materialmen and suppliers.

1.2.10 Sub-Subcontractor is any person or entity retained by a Subcontractor as an independent
contractor to perform any portion of a Subcontractor’s Work and shall include materialmen and
suppliers.

1.2.11 Substantial Completion is the date on which the Work, or an agreed upon portion of the Work,
is sufficiently complete so that Owner can occupy and use the Project or a portion thereof for its
intended purposes.

1.2.12 Work is comprised of all Design-Builder’s design, construction and other services required
by the Contract Documents, including procuring and furnishing all materials, equipment, services
and labor reasonably inferable from the Contract Documents.

Article 2

Design-Builder’s Services and Responsibilities

2.1 General Services

2.1.1 Design-Builder’s Representative shall be reasonably available to Owner and shall have the
necessary expertise and experience required to supervise the Work. Design-Builder’s Representative
shall communicate regularly with Owner and shall be vested with the authority to act on behalf of
Design-Builder. Design-Builder’s

			
	 	 	 
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Representative may be replaced only with the mutual agreement of Owner and Design-Builder.

2.1.2 Design-Builder shall provide Owner with a monthly status report detailing the progress of the
Work, including whether (i) the Work is proceeding according to schedule, (ii) discrepancies,
conflicts, or ambiguities exist in the Contract Documents that require resolution, (iii) health and
safety issues exist in connection with the Work, and (iv) other items require resolution so as not
to jeopardize Design-Builder’s ability to complete the Work for the Contract Price and within the
Contract Time(s).

2.1.3 Design-Builder shall prepare and submit, at least three (3) days prior to the meeting
contemplated by Section 2.1.4 hereof, a schedule for the execution of the Work for Owner’s review
and response. The schedule shall indicate the dates for the start and completion of the various
stages of Work, including the dates when Owner information and approvals are required to enable
Design-Builder to achieve the Contract Time(s). The schedule shall be revised as required by
conditions and progress of the Work, but such revisions shall not relieve Design-Builder of its
obligations to complete the Work within the Contract Time(s), as such dates may be adjusted in
accordance with the Contract Documents. Owner’s review of and response to the schedule shall not
be construed as relieving Design-Builder of its complete and exclusive control over the means,
methods, sequences and techniques for executing the Work.

2.1.4 The parties will meet within seven (7) days after execution of the Agreement to discuss
issues affecting the administration of the Work and to implement the necessary procedures,
including those relating to submittals and payment, to facilitate the ability of the parties to
perform their obligations under the Contract Documents.

2.2 Design Professional Services

2.2.1 Design-Builder shall, consistent with applicable state licensing laws, provide through
qualified, licensed design professionals employed by Design-Builder, or procured from qualified,
independent licensed Design Consultants, the necessary design services, including architectural,
engineering and other design professional services, for the preparation of the required drawings,
specifications and other design submittals to permit Design-Builder to complete the Work consistent
with the Contract Documents. Nothing in the Contract Documents is intended or deemed to create any
legal or contractual relationship between Owner and any Design Consultant.

2.3 Standard of Care for Design Professional Services

2.3.1 The standard of care for all design professional services performed to execute the Work shall
be the care and skill ordinarily used by members of the design profession practicing under similar
conditions at the same time and locality of the Project. Notwithstanding the preceding sentence,
if the parties agree upon specific performance standards for any aspect of the Work, which
standards are to be set forth in an exhibit to the Agreement entitled “Performance Standard
Requirements,” the design professional services shall be performed to achieve such standards.

2.4 Design Development Services

2.4.1 Design-Builder and Owner shall, consistent with any applicable provision of the Contract
Documents, agree upon any interim design submissions that Owner may wish to review, which interim
design submissions may include design criteria, drawings, diagrams and specifications setting forth
the Project requirements. On or about the time of the scheduled submissions, Design-Builder and
Owner shall meet and confer about the submissions, with Design-Builder identifying during such
meetings, among other things, the evolution of the design and any significant changes or deviations
from the Contract Documents, or, if applicable, previously submitted design submissions. Minutes
of the meetings will be maintained by Design-Builder and provided to all attendees for review.
Following the design review meeting, Owner shall review and approve the interim design submissions
in a time that is consistent with the turnaround times set forth in Design-Builder’s schedule.

2.4.2 Design-Builder shall submit to Owner Construction Documents setting forth in detail drawings
and specifications describing the requirements for construction of the Work. The Construction
Documents shall be consistent with the latest set of interim design submissions, as such
submissions may have been modified in a design review meeting. The parties shall have a design

			
	 	 	 
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review meeting to discuss, and Owner shall review and approve, the Construction Documents in
accordance with the procedures set forth Section 2.4.1 above. Design-Builder shall proceed with
construction in accordance with the approved Construction Documents and shall submit one set of
approved Construction Documents to Owner prior to commencement of construction.

2.4.3 Owner’s review and approval of interim design submissions and the Construction Documents is
for the purpose of mutually establishing a conformed set of Contract Documents compatible with the
requirements of the Work. Neither Owner’s review nor approval of any interim design submissions
and Construction Documents shall be deemed to transfer any design liability from Design-Builder to
Owner.

2.4.4 To the extent not prohibited by the Contract Documents or Legal Requirements, Design-Builder
may prepare interim design submissions and Construction Documents for a portion of the Work to
permit construction to proceed on that portion of the Work prior to completion of the Construction
Documents for the entire Work.

2.5 Legal Requirements

2.5.1 Design-Builder shall perform the Work in accordance with all Legal Requirements and shall
provide all notices applicable to the Work as required by the Legal Requirements.

2.5.2 The Contract Price and/or Contract Time(s) shall be adjusted to compensate Design-Builder for
the effects of any changes in the Legal Requirements enacted after the date of the Agreement
affecting the performance of the Work, or if a Guaranteed Maximum Price is established after the
date of the Agreement, the date the parties agree upon the Guaranteed Maximum Price. Such effects
may include, without limitation, revisions Design-Builder is required to make to the Construction
Documents because of changes in Legal Requirements.

2.6 Government Approvals and Permits

2.6.1 Except as identified in an Owner’s Permit List attached as an exhibit to the Agreement,
Design-Builder shall obtain and pay for all necessary permits, approvals, licenses, government
charges and inspection fees required for the prosecution of the Work by any government or
quasi-government entity having jurisdiction over the Project.

2.6.2 Design-Builder shall provide reasonable assistance to Owner in obtaining those permits,
approvals and licenses that are Owner’s responsibility.

2.7 Design-Builder’s Construction Phase Services

2.7.1 Unless otherwise provided in the Contract Documents to be the responsibility of Owner or a
separate contractor, Design-Builder shall provide through itself or Subcontractors the necessary
supervision, labor, inspection, testing, start-up, material, equipment, machinery, temporary
utilities and other temporary facilities to permit Design-Builder to complete construction of the
Project consistent with the Contract Documents.

2.7.2 Design-Builder shall perform all construction activities efficiently and with the requisite
expertise, skill and competence to satisfy the requirements of the Contract Documents.
Design-Builder shall at all times exercise complete and exclusive control over the means, methods,
sequences and techniques of construction.

2.7.3 Design-Builder shall employ only Subcontractors who are duly licensed and qualified to
perform the Work consistent with the Contract Documents. Owner may reasonably object to
Design-Builder’s selection of any Subcontractor, provided that the Contract Price and/or Contract
Time(s) shall be adjusted to the extent that Owner’s decision impacts Design-Builder’s cost and/or
time of performance.

2.7.4 Design-Builder assumes responsibility to Owner for the proper performance of the Work of
Subcontractors and any acts and omissions in connection with such performance. Nothing in the
Contract Documents is intended or deemed to create any legal or contractual relationship between
Owner and any Subcontractor or Sub-Subcontractor, including but not limited to any third-party
beneficiary rights.

2.7.5 Design-Builder shall coordinate the activities of all Subcontractors. If Owner performs
other work on the Project or at the Site with separate

			
	 	 	 
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contractors under Owner’s control, Design-Builder agrees to reasonably cooperate and
coordinate its activities with those of such separate contractors so that the Project can be
completed in an orderly and coordinated manner without unreasonable disruption.

2.7.6 Design-Builder shall keep the Site reasonably free from debris, trash and construction wastes
to permit Design-Builder to perform its construction services efficiently, safely and without
interfering with the use of adjacent land areas. Upon Substantial Completion of the Work, or a
portion of the Work, Design-Builder shall remove all debris, trash, construction wastes, materials,
equipment, machinery and tools arising from the Work or applicable portions thereof to permit Owner
to occupy the Project or a portion of the Project for its intended use.

2.8 Design-Builder’s Responsibility for Project Safety

2.8.1 Design-Builder recognizes the importance of performing the Work in a safe manner so as to
prevent damage, injury or loss to (i) all individuals at the Site, whether working or visiting,
(ii) the Work, including materials and equipment incorporated into the Work or stored on-Site or
off-Site, and (iii) all other property at the Site or adjacent thereto. Design-Builder assumes
responsibility for implementing and monitoring all safety precautions and programs related to the
performance of the Work. Design-Builder shall, prior to commencing construction, designate a
Safety Representative with the necessary qualifications and experience to supervise the
implementation and monitoring of all safety precautions and programs related to the Work. Unless
otherwise required by the Contract Documents, Design-Builder’s Safety Representative shall be an
individual stationed at the Site who may have responsibilities on the Project in addition to
safety. The Safety Representative shall make routine daily inspections of the Site and shall hold
weekly safety meetings with Design-Builder’s personnel, Subcontractors and others as applicable.

2.8.2 Design-Builder and Subcontractors shall comply with all Legal Requirements relating to
safety, as well as any Owner-specific safety requirements set forth in the Contract Documents,
provided that such Owner-specific requirements do not violate any applicable Legal Requirement.
Design-Builder will immediately report in writing any safety-related injury, loss, damage or
accident arising from the Work to Owner’s Representative and, to the extent mandated by Legal
Requirements, to all government or quasi-government authorities having jurisdiction over
safety-related matters involving the Project or the Work.

2.8.3 Design-Builder’s responsibility for safety under this Section 2.8 is not intended in any way
to relieve Subcontractors and Sub-Subcontractors of their own contractual and legal obligations and
responsibility for (i) complying with all Legal Requirements, including those related to health and
safety matters, and (ii) taking all necessary measures to implement and monitor all safety
precautions and programs to guard against injury, losses, damages or accidents resulting from their
performance of the Work.

2.9 Design-Builder’s Warranty

2.9.1 Design-Builder warrants to Owner that the construction, including all materials and equipment
furnished as part of the construction, shall be new unless otherwise specified in the Contract
Documents, of good quality, in conformance with the Contract Documents and free of defects in
materials and workmanship. Design-Builder’s warranty obligation excludes defects caused by abuse,
alterations, or failure to maintain the Work by persons other than Design-Builder or anyone for
whose acts Design-Builder may be liable. Nothing in this warranty is intended to limit any
manufacturer’s warranty which provides Owner with greater warranty rights than set forth in this
Section 2.9 or the Contract Documents. Design-Builder will provide Owner with all manufacturers’
warranties upon Substantial Completion.

2.10 Correction of Defective Work

2.10.1 Design-Builder agrees to correct any Work that is found to not be in conformance with the
Contract Documents, including that part of the Work subject to Section 2.9 hereof, within a period
of one year from the date of Substantial Completion of the Work or any portion of the Work, or
within such longer period to the extent required by the Contract Documents.

2.10.2 Design-Builder shall, within seven (7) days of receipt of written notice from Owner that the
Work

			
	 	 	 
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is not in conformance with the Contract Documents, take meaningful steps to commence correction of
such nonconforming Work, including the correction, removal or replacement of the nonconforming Work
and any damage caused to other parts of the Work affected by the nonconforming Work. If
Design-Builder fails to commence the necessary steps within such seven (7) day period, Owner, in
addition to any other remedies provided under the Contract Documents, may provide Design-Builder
with written notice that Owner will commence correction of such nonconforming Work with its own
forces. If Owner does perform such corrective Work, Design-Builder shall be responsible for all
reasonable costs incurred by Owner in performing such correction. If the nonconforming Work
creates an emergency requiring an immediate response, the seven (7) day periods identified herein
shall be deemed inapplicable.

2.10.3 The one year period referenced in Section 2.10.1 above applies only to Design-Builder’s
obligation to correct nonconforming Work and is not intended to constitute a period of limitations
for any other rights or remedies Owner may have regarding Design-Builder’s other obligations under
the Contract Documents.

Article 3

Owner’s Services and Responsibilities

3.1 Duty to Cooperate

3.1.1 Owner shall, throughout the performance of the Work, cooperate with Design-Builder and
perform its responsibilities, obligations and services in a timely manner to facilitate
Design-Builder’s timely and efficient performance of the Work and so as not to delay or interfere
with Design-Builder’s performance of its obligations under the Contract Documents.

3.1.2 Owner shall provide timely reviews and approvals of interim design submissions and
Construction Documents consistent with the turnaround times set forth in Design-Builder’s schedule.

3.2 Furnishing of Services and Information

3.2.1 Unless expressly stated to the contrary in the Contract Documents, Owner shall provide, at
its own cost and expense, for Design-Builder’s information and use the following, all of which
Design-Builder is entitled to rely upon in performing the Work:

	 	.1	 	Surveys describing the property, boundaries, topography and reference points
for use during construction, including existing service and utility lines;
	 
	 	.2	 	Geotechnical studies describing subsurface conditions, and other surveys
describing other latent or concealed physical conditions at the Site;
	 
	 	.3	 	Temporary and permanent easements, zoning and other requirements and
encumbrances affecting land use, or necessary to permit the proper design and
construction of the Project and enable Design-Builder to perform the Work;
	 
	 	.4	 	A legal description of the Site;
	 
	 	.5	 	To the extent available, as-built and record drawings of any existing
structures at the Site; and
	 
	 	.6	 	To the extent available, environmental studies, reports and impact statements
describing the environmental conditions, including Hazardous Conditions, in existence
at the Site.

3.2.2 Owner is responsible for securing and executing all necessary agreements with adjacent land
or property owners that are necessary to enable Design-Builder to perform the Work. Owner is
further responsible for all costs, including attorneys’ fees, incurred in securing these necessary
agreements.

3.3 Financial Information

3.3.1 At Design-Builder’s request, Owner shall promptly furnish reasonable evidence satisfactory to
Design-Builder that Owner has adequate funds available and committed to fulfill all of Owner’s
contractual obligations under the Contract Documents. If Owner fails to furnish such financial
information in a timely manner, Design-Builder may

			
	 	 	 
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stop Work under Section 11.3 hereof or exercise any other right permitted under the Contract
Documents.

3.3.2 Design-Builder shall cooperate with the reasonable requirements of Owner’s lenders or
other financial sources. Notwithstanding the preceding sentence, after execution of the Agreement
Design-Builder shall have no obligation to execute for Owner or Owner’s lenders or other financial
sources any documents or agreements that require Design-Builder to assume obligations or
responsibilities greater than those existing obligations Design-Builder has under the Contract
Documents.

3.4 Owner’s Representative

3.4.1 Owner’s Representative shall be responsible for providing Owner-supplied information and
approvals in a timely manner to permit Design-Builder to fulfill its obligations under the Contract
Documents. Owner’s Representative shall also provide Design-Builder with prompt notice if it
observes any failure on the part of Design-Builder to fulfill its contractual obligations,
including any errors, omissions or defects in the performance of the Work.

3.5 Government Approvals and Permits

3.5.1 Owner shall obtain and pay for all necessary permits, approvals, licenses, government charges
and inspection fees set forth in the Owner’s Permit List attached as an exhibit to the Agreement.

3.5.2 Owner shall provide reasonable assistance to Design-Builder in obtaining those permits,
approvals and licenses that are Design-Builder’s responsibility.

3.6 Owner’s Separate Contractors

3.6.1 Owner is responsible for all work performed on the Project or at the Site by separate
contractors under Owner’s control. Owner shall contractually require its separate contractors to
cooperate with, and coordinate their activities so as not to interfere with, Design-Builder in
order to enable Design-Builder to timely complete the Work consistent with the Contract Documents.

Article 4

Hazardous Conditions and Differing Site Conditions

4.1 Hazardous Conditions

4.1.1 Unless otherwise expressly provided in the Contract Documents to be part of the Work,
Design-Builder is not responsible for any Hazardous Conditions encountered at the Site. Upon
encountering any Hazardous Conditions, Design-Builder will stop Work immediately in the affected
area and duly notify Owner and, if required by Legal Requirements, all government or
quasi-government entities with jurisdiction over the Project or Site.

4.1.2 Upon receiving notice of the presence of suspected Hazardous Conditions, Owner shall take the
necessary measures required to ensure that the Hazardous Conditions are remediated or rendered
harmless. Such necessary measures shall include Owner retaining qualified independent experts to
(i) ascertain whether Hazardous Conditions have actually been encountered, and, if they have been
encountered, (ii) prescribe the remedial measures that Owner must take either to remove the
Hazardous Conditions or render the Hazardous Conditions harmless.

4.1.3 Design-Builder shall be obligated to resume Work at the affected area of the Project only
after Owner’s expert provides it with written certification that (i) the Hazardous Conditions have
been removed or rendered harmless and (ii) all necessary approvals have been obtained from all
government and quasi-government entities having jurisdiction over the Project or Site.

4.1.4 Design-Builder will be entitled, in accordance with these General Conditions of Contract, to
an adjustment in its Contract Price and/or Contract Time(s) to the extent Design-Builder’s cost
and/or time of performance have been adversely impacted by the presence of Hazardous Conditions.

			
	 	 	 
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4.1.5 To the fullest extent permitted by law, Owner shall indemnify, defend and hold
harmless Design-Builder, Design Consultants, Subcontractors, anyone employed directly or indirectly
for any of them, and their officers, directors, employees and agents, from and against any and all
claims, losses, damages, liabilities and expenses, including attorneys’ fees and expenses, arising
out of or resulting from the presence, removal or remediation of Hazardous Conditions at the Site.

4.1.6 Notwithstanding the preceding provisions of this Section 4.1, Owner is not responsible for
Hazardous Conditions introduced to the Site by Design-Builder, Subcontractors or anyone for whose
acts they may be liable. Design-Builder shall indemnify, defend and hold harmless Owner and
Owner’s officers, directors, employees and agents from and against all claims, losses, damages,
liabilities and expenses, including attorneys’ fees and expenses, arising out of or resulting from
those Hazardous Conditions introduced to the Site by Design-Builder, Subcontractors or anyone for
whose acts they may be liable.

4.2 Differing Site Conditions

4.2.1 Concealed or latent physical conditions or subsurface conditions at the Site that (i)
materially differ from the conditions indicated in the Contract Documents or (ii) are of an unusual
nature, differing materially from the conditions ordinarily encountered and generally recognized as
inherent in the Work are collectively referred to herein as “Differing Site Conditions.” If
Design-Builder encounters a Differing Site Condition, Design-Builder will be entitled to an
adjustment in the Contract Price and/or Contract Time(s) to the extent Design-Builder’s cost and/or
time of performance are adversely impacted by the Differing Site Condition.

4.2.2 Upon encountering a Differing Site Condition, Design-Builder shall provide prompt written
notice to Owner of such condition, which notice shall not be later than fourteen (14) days after
such condition has been encountered. Design-Builder shall, to the extent reasonably possible,
provide such notice before the Differing Site Condition has been substantially disturbed or
altered.

Article 5

Insurance and Bonds

5.1 Design-Builder’s Insurance Requirements

5.1.1 Design-Builder is responsible for procuring and maintaining from insurance companies
authorized to do business in the state in which the Project is located, and with a minimum rating
set forth in the Agreement, the following insurance coverages for certain claims which may arise
from or out of the performance of the Work and obligations under the Contract Documents:

	 	.1	 	Coverage for claims arising under workers’ compensation, disability and other
similar employee benefit laws applicable to the Work;
	 
	 	.2	 	Coverage for claims by Design-Builder’s employees for bodily injury, sickness,
disease, or death;
	 
	 	.3	 	Coverage for claims by any person other than Design-Builder’s employees for
bodily injury, sickness, disease, or death;
	 
	 	.4	 	Coverage for usual personal injury liability claims for damages sustained by a
person as a direct or indirect result of Design-Builder’s employment of the person, or
sustained by any other person;
	 
	 	.5	 	Coverage for claims for damages (other than to the Work) because of injury to
or destruction of tangible property, including loss of use;
	 
	 	.6	 	Coverage for claims of damages because of personal injury or death, or property
damage resulting from ownership, use and maintenance of any motor vehicle; and

			
	 	 	 
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	 	.7	 	Coverage for contractual liability claims arising out of Design-Builder’s
obligations under Section 7.4.1 hereof.

5.1.2 Design-Builder’s liability insurance required by Section 5.1.1 above shall be written
for the coverage amounts set forth in the Agreement and shall include completed operations
insurance for the period of time set forth in the Agreement.

5.1.3 Design-Builder’s liability insurance set forth in Sections 5.1.1.1 through 5.1.1.7 above
shall specifically delete any design-build or similar exclusions that could compromise coverages
because of the design-build delivery of the Project.

5.1.4 To the extent Owner requires Design-Builder or any Design Consultant to provide professional
liability insurance for claims arising from the negligent performance of design services by
Design-Builder or the Design Consultant, the coverage limits, duration and other specifics of such
insurance shall be as set forth in the Agreement. Any professional liability shall specifically
delete any design-build or similar exclusions that could compromise coverages because of the
design-build delivery of the Project. Such policies shall be provided prior to the commencement of
any design services hereunder.

5.1.5 Prior to commencing any construction services hereunder, Design-Builder shall provide Owner
with certificates evidencing that (i) all insurance obligations required by the Contract Documents
are in full force and in effect and will remain in effect for the duration required by the Contract
Documents and (ii) no insurance coverage will be canceled, renewal refused, or materially changed
unless at least thirty (30) days prior written notice is given to Owner.

5.2 Owner’s Liability Insurance

5.2.1 Owner shall procure and maintain from insurance companies authorized to do business in the
state in which the Project is located such liability insurance to protect Owner from claims which
may arise from the performance of Owner’s obligations under the Contract Documents or Owner’s
conduct during the course of the Project.

5.3 Owner’s Property Insurance

5.3.1 Unless otherwise provided in the Contract Documents, Owner shall procure and maintain from
insurance companies authorized to do business in the state in which the Project is located property
insurance upon the entire Project to the full insurable value of the Project, including
professional fees, overtime premiums and all other expenses incurred to replace or repair the
insured property. The property insurance obtained by Owner shall include as additional insureds
the interests of Owner, Design-Builder, Design Consultants, Subcontractors and Sub-Subcontractors,
and shall insure against the perils of fire and extended coverage, theft, vandalism, malicious
mischief, collapse, flood, earthquake, debris removal and other perils or causes of loss as called
for in the Contract Documents. The property insurance shall include physical loss or damage to the
Work, including materials and equipment in transit, at the Site or at another location as may be
indicated in Design-Builder’s Application for Payment and approved by Owner.

5.3.2 Unless the Contract Documents provide otherwise, Owner shall procure and maintain boiler and
machinery insurance that will include the interests of Owner, Design-Builder, Design Consultants,
Subcontractors and Sub-Subcontractors.

5.3.3 Prior to Design-Builder commencing any Work, Owner shall provide Design-Builder with
certificates evidencing that (i) all Owner’s insurance obligations required by the Contract
Documents are in full force and in effect and will remain in effect until Design-Builder has
completed all of the Work and has received final payment from Owner and (ii) no insurance coverage
will be canceled, renewal refused, or materially changed unless at least thirty (30) days prior
written notice is given to Design-Builder. Owner’s property insurance shall not lapse or be
canceled if Owner occupies a portion of the Work pursuant to Section 6.6.3 hereof. Owner shall
provide Design-Builder with the necessary endorsements from the insurance company prior to
occupying a portion of the Work.

5.3.4 Any loss covered under Owner’s property insurance shall be adjusted with Owner and
Design-Builder and made payable to both of them as

			
	 	 	 
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trustees for the insureds as their interests may appear, subject to any applicable mortgage clause.
All insurance proceeds received as a result of any loss will be placed in a separate account and
distributed in accordance with such agreement as the interested parties may reach. Any
disagreement concerning the distribution of any proceeds will be resolved in accordance with
Article 10 hereof.

5.3.5 Owner and Design-Builder waive against each other and Owner’s separate contractors,
Design Consultants, Subcontractors, agents and employees of each and all of them, all damages
covered by property insurance provided herein, except such rights as they may have to the proceeds
of such insurance. Design-Builder and Owner shall, where appropriate, require similar waivers of
subrogation from Owner’s separate contractors, Design Consultants and Subcontractors and shall
require each of them to include similar waivers in their contracts.

5.4 Bonds and Other Performance Security

5.4.1 If Owner requires Design-Builder to obtain performance and labor and material payment bonds,
or other forms of performance security, the amount, form and other conditions of such security
shall be as set forth in the Agreement.

Article 6

Payment

6.1 Schedule of Values

6.1.1 Within ten (10) days of execution of the Agreement, Design-Builder shall submit for Owner’s
review and approval a schedule of values for all of the Work. The Schedule of Values will (i)
subdivide the Work into its respective parts, (ii) include values for all items comprising the Work
and (iii) serve as the basis for monthly progress payments made to Design-Builder throughout the
Work.

6.2 Monthly Progress Payments

6.2.1 On or before the date established in the Agreement, Design-Builder shall submit for Owner’s
review and approval its Application for Payment requesting payment for all Work performed as of the
date of the Application for Payment. The Application for Payment shall be accompanied by all
supporting documentation required by the Contract Documents and/or established at the meeting
required by Section 2.1.4 hereof.

6.2.2 The Application for Payment may request payment for equipment and materials not yet
incorporated into the Project, provided that (i) Owner is satisfied that the equipment and
materials are

suitably stored at either the Site or another acceptable location, (ii) the equipment and materials
are protected by suitable insurance and (iii) upon payment, Owner will receive the equipment and
materials free and clear of all liens and encumbrances.

6.2.3 The Application for Payment shall constitute Design-Builder’s representation that the Work
has been performed consistent with the Contract Documents, has progressed to the point indicated in
the Application for Payment, and that title to all Work will pass to Owner free and clear of all
claims, liens, encumbrances, and security interests upon the incorporation of the Work into the
Project, or upon Design-Builder’s receipt of payment, whichever occurs earlier.

6.3 Withholding of Payments

6.3.1 On or before the date established in the Agreement, Owner shall pay Design-Builder all
amounts properly due. If Owner determines that Design-Builder is not entitled to all or part of an
Application for Payment, it will notify Design-Builder in writing at least five (5) days prior to
the date payment is due. The notice shall indicate the specific amounts Owner intends to withhold,
the reasons and contractual basis for the withholding, and the specific measures Design-Builder
must take to rectify Owner’s concerns. Design-Builder and Owner will attempt to resolve Owner’s
concerns prior to the date payment is due. If the parties cannot resolve such concerns,
Design-Builder may pursue its rights under the Contract Documents, including those under Article 10
hereof.

6.3.2 Notwithstanding anything to the contrary in the Contract Documents, Owner shall pay
Design-Builder all undisputed amounts in an Application for Payment within the times required by
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6.4 Right to Stop Work and Interest

6.4.1 If Owner fails to pay Design-Builder any amount that becomes due, Design-Builder, in addition
to all other remedies provided in the Contract Documents, may stop Work pursuant to Section 11.3
hereof. All payments due and unpaid shall bear interest at the rate set forth in the Agreement.

6.5 Design-Builder’s Payment Obligations

6.5.1 Design-Builder will pay Design Consultants and Subcontractors, in accordance with its
contractual obligations to such parties, all the amounts Design-Builder has received from Owner on
account of their work. Design-Builder will impose similar requirements on Design Consultants and
Subcontractors to pay those parties with whom they have contracted. Design-Builder will indemnify
and defend Owner against any claims for payment and mechanic’s liens as set forth in Section 7.3
hereof.

6.6 Substantial Completion

6.6.1 Design-Builder shall notify Owner when it believes the Work, or to the extent permitted in
the Contract Documents, a portion of the Work, is substantially complete. Within five (5) days of
Owner’s receipt of Design-Builder’s notice, Owner and Design-Builder will jointly inspect such Work
to verify that it is substantially complete in accordance with the requirements of the Contract
Documents. If such Work is substantially complete, Owner shall prepare and issue a Certificate of
Substantial Completion that will set forth (i) the date of Substantial Completion of the Work or
portion thereof, (ii) the remaining items of Work that have to be completed before final payment,
(iii) provisions (to the extent not already provided in the Contract Documents) establishing
Owner’s and Design-Builder’s responsibility for the Project’s security, maintenance, utilities and
insurance pending final payment and (iv) an acknowledgment that warranties commence to run on the
date of Substantial Completion, except as may otherwise be noted in the Certificate of Substantial
Completion.

6.6.2 Upon Substantial Completion of the entire Work or, if applicable, any portion of the Work,
Owner shall release to Design-Builder all retained amounts relating, as applicable, to the entire
Work or completed portion of the Work, less an amount equal to the reasonable value of all
remaining or incomplete items of Work as noted in the Certificate of Substantial Completion.

6.6.3 Owner, at its option, may use a portion of the Work which has been determined to be
substantially complete, provided, however, that (i) a Certificate of Substantial Completion has
been issued for the portion of Work addressing the items set forth in Section 6.6.1 above, (ii)
Design-Builder and Owner have obtained the consent of their sureties and insurers, and to the
extent applicable, the appropriate government authorities having jurisdiction over the Project, and
(iii) Owner and Design-Builder agree that Owner’s use or occupancy will not interfere with
Design-Builder’s completion of the remaining Work.

6.7 Final Payment

6.7.1 After receipt of a Final Application for Payment from Design-Builder, Owner shall make final
payment by the time required in the Agreement, provided that Design-Builder has completed all of
the Work in conformance with the Contract Documents.

6.7.2 At the time of submission of its Final Application for Payment, Design-Builder shall provide
the following information:

	 	.1	 	an affidavit that there are no claims, obligations or liens outstanding or
unsatisfied for labor, services, material, equipment, taxes or other items performed,
furnished or incurred for or in connection with the Work which will in any way affect
Owner’s interests;
	 
	 	.2	 	a general release executed by Design-Builder waiving, upon receipt of final
payment by Design-Builder, all claims, except those claims previously made in writing
to Owner and remaining unsettled at the time of final payment;
	 
	 	.3	 	consent of Design-Builder’s surety, if any, to final payment;
	 
	 	.4	 	all operating manuals, warranties and other deliverables required by the
Contract Documents; and

			
	 	 	 
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	 	.5	 	certificates of insurance confirming that required coverages will remain in
effect consistent with the requirements of the Contract Documents.

6.7.3 Upon making final payment, Owner waives all claims against Design-Builder except claims
relating to (i) Design-Builder’s failure to satisfy its payment obligations, if such failure
affects Owner’s interests, (ii) Design-Builder’s failure to complete the Work consistent with the
Contract Documents, including defects appearing after Substantial Completion and (iii) the terms of
any special warranties required by the Contract Documents.

Article 7

Indemnification

7.1 Patent and Copyright Infringement

7.1.1 Design-Builder shall defend any action or proceeding brought against Owner based on any claim
that the Work, or any part thereof, or the operation or use of the Work or any part thereof,
constitutes infringement of any United States patent or copyright, now or hereafter issued. Owner
shall give prompt written notice to Design-Builder of any such action or proceeding and will
reasonably provide authority, information and assistance in the defense of same. Design-Builder
shall indemnify and hold harmless Owner from and against all damages and costs, including but not
limited to attorneys’ fees and expenses awarded against Owner or Design-Builder in any such action
or proceeding. Design-Builder agrees to keep Owner informed of all developments in the defense of
such actions.

7.1.2 If Owner is enjoined from the operation or use of the Work, or any part thereof, as the
result of any patent or copyright suit, claim, or proceeding, Design-Builder shall at its sole
expense take reasonable steps to procure the right to operate or use the Work. If Design-Builder
cannot so procure such right within a reasonable time, Design-Builder shall promptly, at
Design-Builder’s option and at Design-Builder’s expense, (i) modify the Work so as to avoid
infringement of any such patent or copyright or (ii) replace said Work with Work that does not
infringe or violate any such patent or copyright.

7.1.3 Sections 7.1.1 and 7.1.2 above shall not be applicable to any suit, claim or proceeding based
on infringement or violation of a patent or copyright (i) relating solely to a particular process
or product of a particular manufacturer specified by Owner and not offered or recommended by
Design-Builder to Owner or (ii) arising from modifications to the Work by Owner or its agents after
acceptance of the Work. If the suit, claim or proceeding is based upon events set forth in the
preceding sentence, Owner shall defend, indemnify and hold harmless Design-Builder to the same
extent Design-Builder is obligated to defend, indemnify and hold harmless Owner in Section 7.1.1
above.

7.1.4 The obligations set forth in this Section 7.1 shall constitute the sole agreement between the
parties relating to liability for infringement of violation of any patent or copyright.

7.2 Tax Claim Indemnification

7.2.1 If, in accordance with Owner’s direction, an exemption for all or part of the Work is claimed
for taxes, Owner shall indemnify, defend and hold harmless Design-Builder from and against any
liability, penalty, interest, fine, tax assessment, attorneys’ fees or other expenses or costs
incurred by Design-Builder as a result of any action taken by Design-Builder in accordance with
Owner’s directive.

7.3 Payment Claim Indemnification

	7.3.1	 	Providing that Owner is not in breach of its contractual obligation to make payments to
Design-Builder for the Work, Design-Builder shall indemnify, defend and hold harmless Owner
from any claims or mechanic’s liens brought against Owner or against the Project as a result
of the failure of Design-Builder, or those for whose acts it is responsible, to pay for any
services, materials, labor, equipment, taxes or other items or obligations furnished or
incurred for or in connection with the Work. Within three (3) days of receiving written
notice from Owner that such a claim or mechanic’s lien has been filed, Design-Builder shall
commence to take the steps necessary to discharge said claim or lien, including, if necessary,
the furnishing of a mechanic’s lien bond. If Design-Builder fails to do so,

			
	 	 	 
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	 	 	Owner will have
the right to discharge the
claim or lien and hold Design-Builder liable for costs and expenses incurred, including
attorneys’ fees.

7.4 Design-Builder’s General Indemnification

7.4.1 Design-Builder, to the fullest extent permitted by law, shall indemnify, hold harmless and
defend Owner, its officers, directors, employees and agents from and against claims, losses,
damages, liabilities, including attorneys’ fees and expenses, for bodily injury, sickness or death,
and property damage or destruction (other than to the Work itself) to the extent resulting from the
negligent acts or omissions of Design-Builder, Design Consultants, Subcontractors, anyone employed
directly or indirectly by any of them or anyone for whose acts any of them may be liable.

7.4.2 If an employee of Design-Builder, Design Consultants, Subcontractors, anyone employed
directly or indirectly by any of them or anyone for whose acts any of them may be liable has a
claim against Owner, its officers, directors, employees, or agents, Design-Builder’s indemnity
obligation set forth in Section 7.4.1 above shall not be limited by any limitation on the amount of
damages, compensation or benefits payable by or for Design-Builder, Design Consultants,
Subcontractors, or other entity under any employee benefit acts, including workers’ compensation or
disability acts.

7.5 Owner’s General Indemnification

7.5.1 Owner, to the fullest extent permitted by law, shall indemnify, hold harmless and defend
Design-Builder and any of Design-Builder’s officers, directors, employees, or agents from and
against claims, losses, damages, liabilities, including attorneys’ fees and expenses, for bodily
injury, sickness or death, and property damage or destruction (other than to the Work itself) to
the extent resulting from the negligent acts or omissions of Owner, it’s officers, directors,
employees, agents, and Owner’s separate contractors or anyone for whose acts any of them may be
liable.

Article 8

Time

8.1 Obligation to Achieve the Contract Times

8.1.1 Design-Builder agrees that it will commence performance of the Work and achieve the Contract
Time(s) in accordance with Article 5 of the Agreement.

8.2 Delays to the Work

8.2.1 If Design-Builder is delayed in the performance of the Work due to acts, omissions,
conditions, events, or circumstances beyond its control and due to no fault of its own or those for
whom Design-Builder is responsible, the Contract Time(s) for performance shall be reasonably
extended by Change Order. By way of example, events that will entitle Design-Builder to an
extension of the Contract Time(s) include acts or omissions of Owner or anyone under Owner’s
control (including separate contractors), changes in the Work, Differing Site Conditions, Hazardous
Conditions, wars, floods, labor disputes, unusual delay in transportation, epidemics abroad,
earthquakes, adverse weather conditions not reasonably anticipated, and other acts of God.

8.2.2 In addition to Design-Builder’s right to a time extension for those events set forth in
Section 8.2.1 above, Design-Builder shall also be entitled to an appropriate adjustment of the
Contract Price provided, however, that the Contract Price shall not be adjusted for those events
set forth in Section 8.2.1 above that are beyond the control of both Design-Builder and Owner,
including the events of war, floods, labor disputes, earthquakes, epidemics, adverse weather
conditions not reasonably anticipated, and other acts of God.

Article 9

Changes to the Contract Price and Time

9.1 Change Orders

9.1.1 A Change Order is a written instrument issued after execution of the Agreement signed by
Owner and Design-Builder, stating their agreement upon all of the following:

	 	.1	 	The scope of the change in the Work;

			
	 	 	 
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	 	.2	 	The amount of the adjustment to the Contract Price; and
	 
	 	.3	 	The extent of the adjustment to the Contract Time(s).

9.1.2 All changes in the Work authorized by applicable Change Order shall be performed under the
applicable conditions of the Contract Documents. Owner and Design-Builder shall negotiate in good
faith and as expeditiously as possible the appropriate adjustments for such changes.

9.1.3 If Owner requests a proposal for a change in the Work from Design-Builder and subsequently
elects not to proceed with the change, a Change Order shall be issued to reimburse Design-Builder
for reasonable costs incurred for estimating services, design services and services involved in the
preparation of proposed revisions to the Contract Documents.

9.2 Work Change Directives

9.2.1 A Work Change Directive is a written order prepared and signed by Owner, directing a change
in the Work prior to agreement on an adjustment in the Contract Price and/or the Contract Time(s).

9.2.2 Owner and Design-Builder shall negotiate in good faith and as expeditiously as possible the
appropriate adjustments for the Work Change Directive. Upon reaching an agreement, the parties
shall prepare and execute an appropriate Change Order reflecting the terms of the agreement.

9.3 Minor Changes in the Work

9.3.1 Minor changes in the Work do not involve an adjustment in the Contract Price and/or Contract
Time(s) and do not materially and adversely affect the Work, including the design, quality,
performance and workmanship required by the Contract Documents. Design-Builder may make minor
changes in the Work consistent with the intent of the Contract Documents, provided, however that
Design-Builder shall promptly inform Owner, in writing, of any such changes and record such changes
on the documents maintained by Design-Builder.

9.4 Contract Price Adjustments

9.4.1 The increase or decrease in Contract Price resulting from a change in the Work shall be
determined by one or more of the following methods:

	 	.1	 	Unit prices set forth in the Agreement or as subsequently agreed to between the
parties;
	 
	 	.2	 	A mutually accepted, lump sum, properly itemized and supported by sufficient
substantiating data to permit evaluation by Owner;
	 
	 	.3	 	Costs, fees and any other markups set forth in the Agreement; and
	 
	 	.4	 	If an increase or decrease cannot be agreed to as set forth in items .1 through
        .3 above and Owner issues a Work Change Directive, the cost of the change of the Work
shall be determined by the reasonable expense and savings in the performance of the
Work resulting from the change, including a reasonable overhead and profit, as may be
set forth in the Agreement. If the net result of both additions and deletions to the
Work is an increase in the Contract Price, overhead and profit shall be calculated on
the basis of the net increase to the Contract Price. If the net result of both
additions and deletions to the Work is a decrease in the Contract Price, there shall be
no overhead or profit adjustment to the Contract Price. Design-Builder shall maintain
a documented, itemized accounting evidencing the expenses and savings associated with
such changes.

9.4.2 If unit prices are set forth in the Contract Documents or are subsequently agreed to by the
parties, but application of such unit prices will cause substantial inequity to Owner or
Design-Builder because of differences in the character or quantity of
such unit items as originally contemplated, such unit prices shall be equitably adjusted.

			
	 	 	 
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9.4.3 If Owner and Design-Builder disagree upon whether Design-Builder is entitled to be paid for
any services required by Owner, or if there are any other disagreements over the scope of Work or
proposed changes to the Work, Owner and Design-Builder shall resolve the disagreement pursuant to
Article 10 hereof. As part of the negotiation process, Design-Builder shall furnish Owner with a
good faith estimate of the costs to perform the disputed services in accordance with Owner’s
interpretations. If the parties are unable to agree and Owner expects Design-Builder to perform
the services in accordance with Owner’s interpretations, Design-Builder shall proceed to perform
the disputed services, conditioned upon Owner issuing a written order to Design-Builder (i)
directing Design-Builder to proceed and (ii) specifying Owner’s interpretation of the services that
are to be performed. If this occurs, Design-Builder shall be entitled to submit in its
Applications for Payment an amount equal to fifty percent (50%) of its reasonable estimated direct
cost to perform the services, and Owner agrees to pay such amounts, with the express understanding
that (i) such payment by Owner does not prejudice Owner’s right to argue that it has no
responsibility to pay for such services and (ii) receipt of such payment by Design-Builder does not
prejudice Design-Builder’s right to seek full payment of the disputed services if Owner’s order is
deemed to be a change to the Work.

9.5 Emergencies

9.5.1 In any emergency affecting the safety of persons and/or property, Design-Builder shall act,
at its discretion, to prevent threatened damage, injury or loss. Any change in the Contract Price
and/or Contract Time(s) on account of emergency work shall be determined as provided in this
Article 9.

Article 10

Contract Adjustments and Disputes

10.1 Requests for Contract Adjustments and Relief

10.1.1 If either Design-Builder or Owner believes that it is entitled to relief against the other
for any event arising out of or related to the Work or Project, such party shall provide written
notice to the other party of the basis for its claim for relief. Such notice shall, if possible,
be made prior to incurring any cost or expense and in accordance with any specific notice
requirements contained in applicable sections of these General Conditions of Contract. In the
absence of any specific notice requirement, written notice shall be given within a reasonable time,
not to exceed twenty-one (21) days, after the occurrence giving rise to the claim for relief or
after the claiming party reasonably should have recognized the event or condition giving rise to
the request, whichever is later. Such notice shall include sufficient information to advise the
other party of the circumstances giving rise to the claim for relief, the specific contractual
adjustment or relief requested and the basis of such request.

10.2 Dispute Avoidance and Resolution

10.2.1 The parties are fully committed to working with each other throughout the Project and agree
to communicate regularly with each other at all times so as to avoid or minimize disputes or
disagreements. If disputes or disagreements do arise, Design-Builder and Owner each commit to
resolving such disputes or disagreements in an amicable, professional and expeditious manner so as
to avoid unnecessary losses, delays and disruptions to the Work.

10.2.2 Design-Builder and Owner will first attempt to resolve disputes or disagreements at the
field level through discussions between Design-Builder’s Representative and Owner’s Representative.

10.2.3 If a dispute or disagreement cannot be resolved through Design-Builder’s Representative and
Owner’s Representative, Design-Builder’s Senior Representative and Owner’s Senior Representative,
upon the request of either party, shall meet as soon as conveniently possible, but in no case later
than thirty (30) days after such a request is made, to attempt to resolve such dispute or
disagreement. Prior to any meetings between the Senior Representatives, the parties will exchange
relevant information that will assist the parties in resolving their dispute or disagreement.

10.2.4 If after meeting the Senior Representatives determine that the dispute or disagreement
cannot be resolved on terms satisfactory to both parties, the parties shall submit the dispute or
disagreement to
non-binding mediation. The mediation shall be conducted by a mutually agreeable impartial

			
	 	 	 
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mediator, or if the parties cannot so agree, a mediator designated by the American Arbitration
Association (“AAA”) pursuant to its Construction Industry Mediation Rules. The mediation will be
governed by and conducted pursuant to a mediation agreement negotiated by the parties or, if the
parties cannot so agree, by procedures established by the mediator.

10.3 Arbitration

10.3.1 Any claims, disputes or controversies between the parties arising out of or relating to the
Agreement, or the breach thereof, which have not been resolved in accordance with the procedures
set forth in Section 10.2 above shall be decided by arbitration in accordance with the Construction
Industry Arbitration Rules of the AAA then in effect, unless the parties mutually agree otherwise.

10.3.2 The award of the arbitrator(s) shall be final and binding upon the parties without the right
of appeal to the courts. Judgment may be entered upon it in accordance with applicable law by any
court having jurisdiction thereof.

10.3.3 Design-Builder and Owner expressly agree that any arbitration pursuant to this Section 10.3
may be joined or consolidated with any arbitration involving any other person or entity (i)
necessary to resolve the claim, dispute or controversy, or (ii) substantially involved in or
affected by such claim, dispute or controversy. Both Design-Builder and Owner will include
appropriate provisions in all contracts they execute with other parties in connection with the
Project to require such joinder or consolidation.

10.3.4 The prevailing party in any arbitration, or any other final, binding dispute proceeding upon
which the parties may agree, shall be entitled to recover from the other party reasonable
attorneys’ fees and expenses incurred by the prevailing party.

10.4 Duty to Continue Performance

10.4.1 Unless provided to the contrary in the Contract Documents, Design-Builder shall continue to
perform the Work and Owner shall continue to satisfy its payment obligations to Design-Builder,
pending the final resolution of any dispute or disagreement between Design-Builder and Owner.

10.5 CONSEQUENTIAL DAMAGES

10.5.1 NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY (EXCEPT AS SET FORTH IN SECTION 10.5.2
BELOW), NEITHER DESIGN-BUILDER NOR OWNER SHALL BE LIABLE TO THE OTHER FOR ANY CONSEQUENTIAL LOSSES
OR DAMAGES, WHETHER ARISING IN CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR
OTHERWISE, INCLUDING BUT NOT LIMITED TO LOSSES OF USE, PROFITS, BUSINESS, REPUTATION OR FINANCING.

10.5.2 The consequential damages limitation set forth in Section 10.5.1 above is not intended to
affect the payment of liquidated damages, if any, set forth in Article 5 of the Agreement, which
both parties recognize has been established, in part, to reimburse Owner for some damages that
might otherwise be deemed to be consequential.

Article 11

Stop Work and Termination for Cause

11.1 Owner’s Right to Stop Work

11.1.1 Owner may, without cause and for its convenience, order Design-Builder in writing to stop
and suspend the Work. Such suspension shall not exceed sixty (60) consecutive days or aggregate
more than ninety (90) days during the duration of the Project.

11.1.2 Design-Builder is entitled to seek an adjustment of the Contract Price and/or Contract
Time(s) if its cost or time to perform the Work has been adversely impacted by any suspension of
stoppage of work by Owner.

	11.2	 	Owner’s Right to Perform and Terminate for Cause

11.2.1 If Design-Builder persistently fails to (i) provide a sufficient number of skilled workers,
(ii) supply the materials required by the Contract Documents, (iii) comply with applicable Legal
Requirements, (iv) timely pay, without cause, Design Consultants or Subcontractors, (v) prosecute
the Work with promptness and diligence to ensure that the Work is completed by the Contract
Time(s), as such times may be adjusted, or (vi) perform

			
	 	 	 
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material obligations under the Contract
Documents, then Owner, in addition to any other rights and remedies provided in the Contract
Documents or by law, shall have the rights set forth in Sections 11.2.2 and 11.2.3 below.

11.2.2 Upon the occurrence of an event set forth in Section 11.2.1 above, Owner may provide written
notice to Design-Builder that it intends to terminate the Agreement unless the problem cited is
cured, or commenced to be cured, within seven (7) days of Design-Builder’s receipt of such notice.
If Design-Builder fails to cure, or reasonably commence to cure, such problem, then Owner may give
a second written notice to Design-Builder of its intent to terminate within an additional seven (7)
day period. If Design-Builder, within such second seven (7) day period, fails to cure, or
reasonably commence to cure, such problem, then Owner may declare the Agreement terminated for
default by providing written notice to Design-Builder of such declaration.

11.2.3 Upon declaring the Agreement terminated pursuant to Section 11.2.2 above, Owner may
enter upon the premises and take possession, for the purpose of completing the Work, of all
materials, equipment, scaffolds, tools, appliances and other items thereon, which have been
purchased or provided for the performance of the Work, all of which Design-Builder hereby
transfers, assigns and sets over to Owner for such purpose, and to employ any person or persons to
complete the Work and provide all of the required labor, services, materials, equipment and other
items. In the event of such termination, Design-Builder shall not be entitled to receive any
further payments under the Contract Documents until the Work shall be finally completed in
accordance with the Contract Documents. At such time, if the unpaid balance of the Contract Price
exceeds the cost and expense incurred by Owner in completing the Work, such excess shall be paid by
Owner to Design-Builder. Notwithstanding the preceding sentence, if the Agreement establishes a
Guaranteed Maximum Price, Design-Builder will only be entitled to be paid for Work performed prior
to its default. If Owner’s cost and expense of completing the Work exceeds the unpaid balance of
the Contract Price, then Design-Builder shall be obligated to pay the difference to Owner. Such
costs and expense shall include not only the cost of completing the Work, but also losses, damages,
costs and expense, including attorneys’ fees and expenses, incurred by Owner in connection with the
reprocurement and defense of claims arising from Design-Builder’s default, subject to the waiver of
consequential damages set forth in Section 10.5 hereof.

11.2.4 If Owner improperly terminates the Agreement for cause, the termination for cause will be
converted to a termination for convenience in accordance with the provisions of Article 8 of the
Agreement.

11.3 Design-Builder’s Right to Stop Work

11.3.1 Design-Builder may, in addition to any other rights afforded under the Contract Documents or
at law, stop work for the following reasons:

	 	.1	 	Owner’s failure to provide financial assurances as required under Section 3.3
hereof; or
	 
	 	.2	 	Owner’s failure to pay amounts properly due under Design-Builder’s Application
for Payment.

11.3.2 Should any of the events set forth in Section 11.3.1 above occur, Design-Builder has the
right to provide Owner with written notice that Design-Builder will stop work unless said event is
cured within seven (7) days from Owner’s receipt of Design-Builder’s notice. If Owner does not
cure the problem within such seven (7) day period, Design-Builder may stop work. In such case,
Design-Builder shall be entitled to make a claim for adjustment to the Contract Price and Contract
Time(s) to the extent it has been adversely impacted by such stoppage.

	11.4	 	Design-Builder’s Right to Terminate for Cause

11.4.1 Design-Builder, in addition to any other rights and remedies provided in the Contract
Documents or by law, may terminate the Agreement for cause for the following reasons:

	 	.1	 	The Work has been stopped for sixty (60) consecutive days, or more than ninety
(90) days during the duration of the Project, because of court order, any government
authority having jurisdiction over the Work, or orders by Owner under Section 11.1.1
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	 	 	 	provided that such stoppages are not due to the acts or omissions of
Design-Builder or anyone for whose acts Design-Builder may be responsible.
	 
	 	.2	 	Owner’s failure to provide Design-Builder with any information, permits or
approvals that are Owner’s responsibility under the Contract Documents which result in
the Work being stopped for sixty (60) consecutive days, or more than ninety (90) days
during the duration of the Project, even though Owner has not ordered Design-Builder in
writing to stop and suspend the Work pursuant to Section 11.1.1 hereof.
	 
	 	.3	 	Owner’s failure to cure the problems set forth in Section 11.3.1 above after
Design-Builder has stopped the Work.

11.4.2 Upon the occurrence of an event set forth in Section 11.4.1 above, Design-Builder may
provide written notice to Owner that it intends to terminate the Agreement unless the problem cited
is cured, or commenced to be cured, within seven (7) days of Owner’s receipt of such notice. If
Owner fails to cure, or reasonably commence to cure, such problem, then Design-Builder may give a
second written notice to Owner of its intent to terminate within an additional seven (7) day
period. If Owner, within such second seven (7) day period, fails to cure, or reasonably commence
to cure, such problem, then Design-Builder may declare the Agreement terminated for default by
providing written notice to Owner of such declaration. In such case, Design-Builder shall be
entitled to recover in the same manner as if Owner had terminated the Agreement for its convenience
under Article 8 of the Agreement.

11.5 Bankruptcy of Owner or Design-Builder

11.5.1 If either Owner or Design-Builder institutes or has instituted against it a case under the
United States Bankruptcy Code (such party being referred to as the “Bankrupt Party”), such event
may impair or frustrate the Bankrupt Party’s ability to perform its obligations under the Contract
Documents. Accordingly, should such event occur:

	 	.1	 	The Bankrupt Party, its trustee or other successor, shall furnish, upon request
of the non-Bankrupt Party, adequate assurance of the ability of the Bankrupt Party to
perform all future material obligations under the Contract Documents, which assurances
shall be provided within ten (10) days after receiving notice of the request; and
	 
	 	.2	 	The Bankrupt Party shall file an appropriate action within the bankruptcy court
to seek assumption or rejection of the Agreement within sixty (60) days of the
institution of the bankruptcy filing and shall diligently prosecute such action.

If the Bankrupt Party fails to comply with its foregoing obligations, the non-Bankrupt Party shall
be entitled to request the bankruptcy court to reject the Agreement, declare the Agreement
terminated and pursue any other recourse available to the non-Bankrupt Party under this Article 11.

11.5.2 The rights and remedies under Section 11.5.1 above shall not be deemed to limit the ability
of the non-Bankrupt Party to seek any other rights and remedies provided by the Contract Documents
or by law, including its ability to seek relief from any automatic stays under the United States
Bankruptcy Code or the right of Design-Builder to stop Work under any applicable provision of these
General Conditions of Contract.

Article 12

Miscellaneous

12.1 Assignment

12.1.1 Neither Design-Builder nor Owner shall, without the written consent of the other assign,
transfer or sublet any portion or part of the Work or the obligations required by the Contract
Documents.

12.2 Successorship

12.2.1 Design-Builder and Owner intend that the provisions of the Contract Documents are binding
upon the parties, their employees, agents, heirs, successors and assigns.

12.3 Governing Law

			
	 	 	 
	DBIA Document No. 535 • Standard Form of General Conditions

of Contract Between Owner and Design-Builder

© 1998 Design-Build Institute of America
	 	Page 17

 

 

12.3.1 The Agreement and all Contract Documents shall be governed by the laws of the place of the
Project, without giving effect to its conflict of law principles.

12.4 Severability

12.4.1 If any provision or any part of a provision of the Contract Documents shall be finally
determined to be superseded, invalid, illegal, or otherwise unenforceable pursuant to any
applicable Legal Requirements, such determination shall not impair or otherwise affect the
validity, legality, or enforceability of the remaining provision or parts of the provision of the
Contract Documents, which shall remain in full force and effect as if the unenforceable provision
or part were deleted.

12.5 No Waiver

12.5.1 The failure of either Design-Builder or Owner to insist, in any one or more instances, on
the performance of any of the obligations required by the other under the Contract Documents shall
not be construed as a waiver or relinquishment of such obligation or right with respect to future
performance.

12.6 Headings

12.6.1 The headings used in these General Conditions of Contract, or any other Contract Document,
are for ease of reference only and shall not in any way be construed to limit or alter the meaning
of any provision.

12.7 Notice

12.7.1 Whenever the Contract Documents require that notice be provided to the other party, notice
will be deemed to have been validly given (i) if delivered in person to the individual intended to
receive such notice, (ii) four (4) days after being sent by registered or certified mail, postage
prepaid to the address indicated in the Agreement or (iii) if transmitted by facsimile, by the time
stated in a machine generated confirmation that notice was received at the facsimile number of the
intended recipient.

12.8 Amendments

12.8.1 The Contract Documents may not be changed, altered, or amended in any way except in writing
signed by a duly authorized representative of each party.

			
	 	 	 
	DBIA Document No. 535 • Standard Form of General Conditions 

of Contract Between Owner and Design-Builder

© 1998 Design-Build Institute of America
	 	Page 18

 

 

Design Build Contract

Superior Corn Products, LLC

August 26, 2005

SUPPLEMENTARY CONDITIONS

These Supplementary Conditions amend or supplement the Standard Form of General Conditions of
Contract between Owner and Design-Builder (DBIA Document No. 535, 1998 Edition) and other
provisions of the Contract Documents as indicated below. All provisions, which are not so amended
or supplemented, remain in full force and effect.

SC – 1.2 Basic Definitions

The terms used in these Supplementary Conditions which are defined in the Standard Form of General
Conditions of Contract between Owner and Design-Builder (DBIA Document No. 535, 1998 Edition) have
the meanings assigned to them in the General Conditions.

SC – 1.2.1 Agreement

Delete Section 1.2.1 of the General Conditions in its entirety and insert the following in its
place:

Agreement refers to the executed Standard Form of Agreement between Owner and Design-Builder – Lump
Sum (DBIA Document No. 525, 1998 Edition).

SC – 1.2.11 Substantial Completion

Amend Section 1.2.11 of the General Conditions by striking out the following words: or an agreed
upon portion of the Work.

Add the following language at the end of Section 1.2.11 of the General Conditions. Substantial
Completion shall be attained at the point in time when the Facility is ready to begin operation for
its intended use (ethanol production).

As so amended, Section 1.2.11 reads as follows:

Substantial Completion is the date on which the Work is sufficiently complete so that Owner can
occupy and use the Project for its intended purposes. Substantial Completion shall be attained at
the point in time when the Facility is ready to begin operation for its intended use (ethanol
production).

SC – 2.1.2

Delete Section 2.1.2 of the General Conditions in its entirety and insert the following in its
place:

Design-Builder shall maintain a current, complete set of drawings and specifications at the Work
site. Owner may review such drawings and specifications, and Owner may be allowed, upon
Design-Builder’s approval, to make copies of drawings and specifications available at the Work site
that are applicable to Owner. Design-Builder shall provide Owner with regular communication
regarding the progress and any revisions to the drawings and specifications of the Work, including
whether (i) the Work is proceeding according to schedule, (ii) discrepancies, conflicts, or
ambiguities exist in the Contract Documents that require resolution, (iii) health and safety issues
exist in connection with the Work, and (iv) other items require resolution so as not to jeopardize
Design-Builder’s ability to complete the Work for the Contract Price and within the Contract
Time(s).

SC – 2.1.3

Delete Section 2.1.3 of the General Conditions in its entirety and insert the following in its
place:

Design-Builder shall prepare and submit a schedule for the execution of the Work to Owner. The
schedule shall indicate the dates for the start and completion of the various stages of Work,
including the dates when Owner’s obligations are required to be complete to enable Design-Builder
to achieve the Contract Time(s). The schedule shall be revised as required by conditions and
progress of the Work but such revisions

1

 

Design Build Contract

Superior Corn Products, LLC

August 26, 2005

SUPPLEMENTARY CONDITIONS

shall not relieve Design-Builder of its obligations to complete the Work within the Contract
Time(s), unless such revisions to the schedule are the result of any direct or indirect delay in
the completion of Owner’s obligations. Then Design-Builder shall be relieved of its obligations to
complete the Work within the Contract Time(s), and the Contract Time(s) for completion of the Work
shall be extended accordingly without penalty to Design-Builder.

SC – 2.1.4

Delete Section 2.1.4 of the General Conditions in its entirety and insert the following in its
place:

The parties will meet at a mutually agreeable time after execution of the Agreement to discuss
issues affecting the administration of the Work and to implement the necessary procedures,
including those relating to submittals and payment, to facilitate the ability of the parties to
perform their obligations under the Contract Documents.

SC – 2.3.1

Amend the second sentence of Section 2.3.1 of the General Conditions by striking out the words:
Performance Standard Requirements; and inserting the following: Exhibit A: Performance Guarantee
Criteria; and as so amended, Section 2.3.1 reads as follows:

The standard of care for all design professional services performed to execute the Work shall be
the care and skill ordinarily used by members of the design profession practicing under similar
conditions at the same time and locality of the Project. Notwithstanding the preceding sentence,
if the parties agree upon specific performance standards for any aspect of the Work, which
standards are to be set forth in an exhibit to the Agreement entitled “Exhibit A: Performance
Guarantee Criteria,” the design professional services shall be performed to achieve such standards.

SC – 2.4.1

Delete Section 2.4.1 of the General Conditions in its entirety and insert the following in its
place:

Reserved.

SC – 2.4.2

Delete Section 2.4.2 of the General Conditions in its entirety and insert the following in its
place:

Reserved.

SC – 2.4.3

Delete Section 2.4.3 of the General Conditions in its entirety and insert the following in its
place:

Reserved.

SC – 2.6.1

Amend Section 2.6.1 of the General Conditions by striking out the words: an Owner’s Permit List;
and inserting the following: Exhibit C: Owner’s Responsibilities; and as so amended, Section 2.6.1
reads as follows:

Except as identified in Exhibit C: Owner’s Responsibilities List attached as an exhibit to the
Agreement, Design-Builder shall obtain and pay for all necessary permits, approvals, licenses,
government charges and inspection fees required for the prosecution of the Work by any government
or quasi-government entity having jurisdiction over the Project.

2

 

Design Build Contract

Superior Corn Products, LLC

August 26, 2005

SUPPLEMENTARY CONDITIONS

SC – 3.5.1

Amend Section 3.5.1 of the General Conditions by striking out the words: the Owner’s Permit List;
and inserting the following: Exhibit C: Owner’s Responsibilities; and as so amended, Section 3.5.1
reads as follows:

Owner shall obtain and pay for all necessary permits, approvals, licenses, government charges and
inspection fees set forth in Exhibit C: Owner’s Responsibilities attached as an exhibit to the
Agreement.

SC – 6.4.1

Amend the first sentence of Section 6.4.1 of the General Conditions by inserting the phrase: in
accordance with Section 6.3 above; and as so amended, Section 6.4.1 reads as follows:

If Owner fails to pay Design-Builder any amount that becomes due, in accordance with Section 6.3
above, Design-Builder, in addition to all other remedies provided in the Contract Documents, may
stop Work pursuant to Section 11.3 hereof. All payments due and unpaid shall bear interest at the
rate set forth in the Agreement.

SC – 11.3.2

Delete Section 11.3.2 of the General Conditions in its entirety and insert the following in its
place:

Should any of the events set forth in Section 11.3.1 above occur, Design-Builder has the right to
provide Owner with written notice that Design-Builder will stop work unless said event is cured
within seven (7) days from Owner’s receipt of Design-Builder’s notice. If Owner fails to cure, or
reasonably commence to cure, such problem, then Design-Builder may give a second written notice to
Owner of its intent to stop work within an additional seven (7) day period. If Owner, within such
second seven (7) day period, fails to cure, or reasonably commence to cure, such problem, then
Design-Builder may stop work. In such case, Design-Builder shall be entitled to make a claim for
adjustment to the Contract Price and Contract Time(s) to the extent it has been adversely impacted
by such stoppage.

SC – 10.5.1

Amend Section 10.5.1 of the General Conditions by inserting the phrase “except Design-Builder does
not waive any such damages resulting from or arising out of any breach of Owner’s duties and
obligations under the limited license granted by Design-Builder to Owner pursuant to Article 4 of
the Lump Sum Agreement”; and as so amended, Section 10.5.1 reads as follows:

NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY (EXCEPT AS SET FORTH IN SECTION 10.5.2 BELOW),
NEITHER DESIGN-BUILDER NOR OWNER SHALL BE LIABLE TO THE OTHER FOR ANY CONSEQUENTIAL LOSSES OR
DAMAGES, WHETHER ARISING IN CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR
OTHERWISE, INCLUDING BUT NOT LIMITED TO LOSSES OF USE, PROFITS, BUSINESS, REPUTATION OR FINANCING,
EXCEPT DESIGN-BUILDER DOES NOT WAIVE ANY SUCH DAMAGES RESULTING FROM OR ARISING OUT OF ANY BREACH
OF OWNER’S DUTIES AND OBLIGATIONS UNDER THE LIMITED LICENSE GRANTED BY DESIGN-BUILDER TO OWNER
PURSUANT TO ARTICLE 4 OF THE LUMP SUM AGREEMENT.

3

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