Document:

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                                                                    EXHIBIT 10.2

                            GREENWAY CONSULTING, LLC
                                  CONFIDENTIAL

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         AMENDED AND RESTATED DEVELOPMENT SERVICES/CONSULTING AGREEMENT

        This Amended and Restated Development Services/Consulting Agreement
(this "Agreement") is entered into the 11 day of July, 2002, by and between
Illinois River Energy, LLC, a Delaware limited liability company of Morris,
Illinois (hereinafter "Illinois River Energy"), and GreenWay Consulting, LLC, a
Minnesota limited liability company of Morris, Minnesota (hereinafter
"GreenWay").

                                    RECITALS

        WHEREAS, GreenWay maintains expertise in the development, construction
and management of ethanol production facilities;

        WHEREAS, Illinois River Energy and GreenWay entered into a Development
Services Agreement, dated as of __________, 2002 (the "Original Agreement"),
pursuant to which GreenWay agreed to provide to Illinois River Energy certain
project and consulting services in connection with the facility design,
construction and initial plant operation of an ethanol production facility to be
constructed during the term of this Agreement; and

        WHEREAS, Illinois River Energy and GreenWay desire to amend and restate
hereby the Original Agreement.

        NOW THEREFORE, in consideration of the mutual covenants and stipulations
hereinafter set forth, the parties agree as follows:

SECTION 1 - SCOPE OF SERVICES PROVIDED. The scope of the project and consulting
services (the "Services") to be provided by GreenWay are set forth below and are
divided into three phases: Phase I (Project Development), Phase II
(Construction) and Phase III (Initial Plant Operations).

        1.     PHASE I - PROJECT DEVELOPMENT

        a.     PROJECT COORDINATION AND DEVELOPMENT:

               (i)    Assist and advise Illinois River Energy in recruiting and
                      hiring a project coordinator;
               (ii)   Assist and advise Illinois River Energy in engaging other
                      firms to provide legal, accounting, risk management, and
                      marketing expertise;
               (iii)  Assist and advise Illinois River Energy in the site
                      evaluation and selection process;
               (iv)   Assist and advise Illinois River Energy in the
                      negotiations of various contracts including insurance,
                      utilities (gas, electrical, water, waste water), rail, raw
                      material supply, and product off-take; and

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               (v)    Assist and advise Illinois River Energy in obtaining
                      various permits.

        b.     DESIGN AND CONSTRUCTION:

               (i)    Assist and advise Illinois River Energy in selecting a
                      design and engineering firm and in negotiating a contract
                      regarding price, schedule, and performance;
               (ii)   Assist and advise Illinois River Energy in reviewing and
                      approving preliminary and final process and detailed
                      design;
               (iii)  Assist and advise Illinois River Energy in selecting a
                      construction company and in negotiating a contract
                      regarding price, schedule, and performance.

        2.     PHASE II - CONSTRUCTION

        a.     Assist and advise Illinois River Energy in recruiting and hiring
               Illinois River Energy's owners' representative/construction
               supervisor;
        b.     Attend monthly site progress meetings between Illinois River
               Energy, the design engineer and contractor;
        c.     Assist and advise Illinois River Energy in recruiting and hiring
               all plant employees;
        d.     Assist and advise in providing initial employee training; and
        e.     Assist and advise in providing plant start-up assistance and
               coordinating the activities of the design engineer and contractor
               through and including the monitoring of the performance tests to
               assist in determining the performance criteria have been met.

        3.     PHASE III - INITIAL PLANT OPERATIONS

        a.     Assist and advise in providing on-site support staff for a period
               of up to three (3) months after successful start-up and
               commissioning;
        b.     Assist and advise in providing technical support on an as-needed
               basis for a period of an additional six (6) months;
        c.     Assist and advise in providing ongoing employee training during
               the term of this Agreement;
        d.     Continuously advise Illinois River Energy on ways to increase
               plant production during the term of this Agreement; and
        e.     Continuously advise Illinois River Energy on ways to improve
               plant efficiency during the term of this Agreement.

        Subject to the limitations set forth below, it is understood that the
GreenWay will not limit its assistance to the Services specifically enumerated
above, but will extend its services and assistance as reasonably required to
provide for the successful implementation of the project plan. It is also
understood that all Services provided by the GreenWay will be provided on a best
efforts basis with no warranties of performance.

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        Illinois River Energy and GreenWay acknowledge and agree that GreenWay
is not to provide, and is not responsible for, any services in connection with
the financing of Illinois River Energy. Accordingly, notwithstanding anything to
the contrary set forth in this Agreement, GreenWay hereby agrees that in no
event shall it or any third party (whether a representative, consultant, advisor
or otherwise) acting on its behalf engage in any conduct which constitutes the
effecting of a transaction in the securities of Illinois River Energy,
including, but nor limited to, any of the following conduct:

        (a)    Discussing with any potential investor in Illinois River Energy
        the advantages or disadvantages of investments in general or of an
        investment in Illinois River Energy;

        (b)    Providing any advice or analyses or making any recommendations to
        potential investors in Illinois River Energy with respect to an
        investment in Illinois River Energy;

        (c)    Taking part in any negotiations between Illinois River Energy and
        a potential investor in Illinois River Energy or such potential
        investor's representative;

        (d)    Assisting any potential investor in Illinois River Energy in
        making a decision whether to purchase the securities of Illinois River
        Energy;

        (e)    Delivering any offering document of Illinois River Energy to a
        potential investor;

        (f)    Receiving or handling any potential investor's subscription
        agreement or any funds used by a potential investor in Illinois River
        Energy in purchasing the securities of Illinois River Energy;

        (g)    Maintaining any discretion with respect to Illinois River
        Energy's acceptance or rejection of a potential investor's subscription
        to purchase the securities of Illinois River Energy;

        (h)    Participating in any advertisement, endorsement or general
        solicitation regarding an investment in the securities of Illinois River
        Energy;

        (i)    Preparing materials relating to the sale or purchase of
        securities of Illinois River Energy or in the distribution of these
        materials to any potential investor in Illinois River Energy;

        (j)    Performing any independent analysis of the sale of securities by
        Illinois River Energy or engaging in any due diligence activities;

        (k)    Engaging in any other communication with a potential investor in
        Illinois River Energy regarding a possible investment in Illinois River
        Energy.

SECTION 2 - COMPENSATION. Compensation for the Services provided under this
Agreement shall be based on the following schedule:

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        1.     EXPENSE RETAINER. Illinois River Energy has advanced a
non-refundable retainer of $110,000 US (the "Retainer") to the attention of the
undersigned of GreenWay Consulting, LLC. Expenses under Section 3 hereof will be
applied against the Retainer. Illinois River Energy will be obligated to pay for
expenses incurred by GreenWay under Section 3 that exceed the Retainer, however,
it is understood that payment will not be made until Illinois River Energy
completes Seed Capital (as defined below) funding. After the Retainer is
received, GreenWay shall not receive any additional compensation, other than
monthly expenses that exceed the Retainer as provided under Section 3, until
Financial Close (as defined below). The unused portion of the Retainer, if any,
at Financial Close will be offset against the fees due for Phase I scheduled
below.

        Because (i) Illinois River Energy is undertaking a project in its
development stage and will have limited resources to pay GreenWay for the
Services until such time as Illinois River Energy obtains financing through
third-party sources and (ii) the amount of financing that Illinois River Energy
obtains through third-party sources will be attributable, in part, to GreenWay's
efforts in assisting Illinois River Energy to successfully construct and operate
the ethanol processing facility, Illinois River Energy shall pay GreenWay a fee
for the Services in accordance with Schedule 1 set forth below.

SCHEDULE 1 - COMPENSATION FOR SERVICES

<Table>
<Caption>
SERVICE        FEE                           SOURCE OF FUNDS          PAYMENT TERMS
-------        ---                           ---------------          -------------
<S>            <C>                           <C>                      <C>
PHASE I        2.25% of Total Project        PROJECT FINANCING        DUE IN FULL @ FINANCIAL
               Capitalization                (AS DEFINED BELOW)       CLOSE

PHASE II       1% of Total Project           PROJECT FINANCING        25% DOWN @ FINANCIAL
               Capitalization                                         CLOSE - 50% @ MECHANICAL
                                                                      COMPLETION (AS  DEFINED
                                                                      BELOW) - 25% @ SUCCESSFUL
                                                                      COMMISSIONING
                                                                      (AS DEFINED BELOW)

PHASE III      0.75% of Total Project        WORKING CAPITAL (AS      PRORATED OVER 9 MONTHS AFTER
               Capitalization                DEFINED BELOW)           SUCCESSFUL COMMISSIONING
</Table>

        In no case will GreenWay share or split the fees delineated above with
any other party currently assisting Illinois River Energy in other endeavors.
However, GreenWay may, at its sole discretion, choose to engage other companies
(other than as identified in Section 1) to perform the Services and may choose
to share a portion of its fees for the Services under this Agreement provided by
those other companies.

        The following definitions apply to this section:

        (1)    FINANCIAL CLOSE: Closing of senior debt financing for the
               project.

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        (2)    MECHANICAL COMPLETION: Completion of construction such that corn
               can be ground for ethanol production.
        (3)    SUCCESSFUL COMMISSIONING: Production of ethanol meeting design
               specifications on a daily basis of nameplate production, and all
               production meets the guarantees provided by engineers and
               contractors.
        (4)    PROJECT FINANCING: Total debt and equity financing of the
               project.
        (5)    TOTAL PROJECT CAPITALIZATION: The total source of funds
               including, but not limited to, grants, subordinated debt, senior
               debts, the equity portion of working capital, and revolving line
               of credit all as established as of Financial Close, provided,
               however, "Total Project Capitalization" does not include Seed
               Capital equity.
        (6)    WORKING CAPITAL: Operating revenues of the plant.
        (7)    SEED CAPITAL: At risk money for project development exclusive of
               total project capitalization (5) above.

SECTION 3 - EXPENSES. Illinois River Energy will be responsible for all of
GreenWay's out-of-pocket expenses, including travel, lodging, meals,
communication, cost of CPA prepared and approved GAAP financial information, and
reports prepared in fulfilling its duties for the Services outlined in Section
1. If expenses exceeding $5,000 per month are required, GreenWay shall seek
pre-approval by Illinois River Energy, which shall not be unreasonably withheld.
GreenWay shall submit monthly updated expense reports to Illinois River Energy
for reimbursement.

SECTION 4 - TERM OF AGREEMENT; TERMINATION. The term of this Agreement shall
begin on the date of execution set forth above and shall have an expiration date
nine (9) months after Successful Commissioning (as defined above) of the plant.
Illinois River Energy and GreenWay as the non-defaulting party each shall retain
the right to terminate this Agreement if either party fails to perform
("defaults") under the terms of this contract and attachments, including but not
limited to meeting major milestones in development by their completion dates in
Schedule 2 below. All expenses under Section 3 shall be paid through termination
of this Agreement. Termination of this Agreement by Illinois River Energy prior
to Financial Close but after meeting the milestones in Schedule 2 below,
followed by a Financial Close will result in Illinois River Energy paying
GreenWay a termination fee equal to the Phase I fee shown in Schedule 1 above.
To terminate this Agreement, the non-defaulting party must notify the defaulting
party in writing describing the cause of default and pay any uncontested amounts
that are due through the date of the notice.

SCHEDULE 2 - MILESTONES AND COMPLETION DATES

<Table>
<Caption>
   MILESTONE                                          COMPLETION DATE             FAILURE
   ---------                                          ---------------             -------
<S>                                                   <C>                         <C>
1. Selection of Design Builder and Engineer           June 30, 2002               Illinois River Energy or
                                                                                  GreenWay may terminate

2. Preliminary Resolution of Construction Issues      July 1, 2002                Illinois River Energy or
                                                                                  GreenWay may terminate

3. Financial Close                                    January 2, 2003             Illinois River Energy or
                                                                                  GreenWay may terminate
</Table>

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SECTION 5 - INDEPENDENT CONTRACTOR. GreenWay is an independent contractor and
nothing in this Agreement shall constitute or designate GreenWay or any of its
employees or agents as employees or agents of Illinois River Energy.

SECTION 6 - CONFIDENTIALITY. Illinois River Energy agrees all services being
provided in this Agreement are the work product of GreenWay and proprietary
property of GreenWay. GreenWay agrees to license the use of the proprietary
property to Illinois River Energy exclusively for Illinois River Energy's use
for its development, construction and operation of its Morris, Illinois area
ethanol production facility only. Illinois River Energy agrees it shall not
disclose any proprietary property (information or work product) to third
parties, including the media, without the third party executing a nondisclosure
agreement attached as Exhibit A and first obtaining written permission from
GreenWay. GreenWay agrees that financial and other information about the ethanol
production project will be developed by Illinois River Energy and disclosed to
GreenWay. GreenWay agrees that proprietary information of Illinois River Energy
will only be used for purposes of Illinois River Energy's project and will not
be disclosed to others without first obtaining written permission from Illinois
River Energy. In the event Illinois River Energy or GreenWay violates the terms
and spirit of this license and disclosure provision, Illinois River Energy and
GreenWay agree they will be subject to an injunction and such other relief as
allowed by law, including any damages caused to the other party and
reimbursement to the other party for any attorney fees and costs incurred by the
other party in enforcing this provision.

SECTION 7 - ENTIRE AGREEMENT/AMENDMENTS. This Agreement constitutes the entire
Agreement between the parties hereto and sets forth the rights, duties, and
obligations of each to the other as of this date. Any prior agreements,
promises, negotiations, or representations not expressly set forth in this
Agreement are of no force and effect. This Agreement may not be modified except
in writing executed by both GreenWay and Illinois River Energy.

SECTION 8 - LEGAL ADVICE. Each Party agrees that it has relied on its own legal
counsel or has had legal counsel available to them. The Parties agree they have
not relied on any legal representations from the other party.

SECTION 9 - BINDING EFFECT. This Agreement will be binding upon and inure to the
benefit of the Parties hereunder, and their respective representatives,
distributees, successors and assigns.

SECTION 10. NOTICES. Any written notice or communications required or permitted
by this Agreement, or by law, to be served on, given to, or delivered to either
party hereto by the other party, shall be in writing, and shall be deemed duly
served, given, or delivered when personally delivered to the party to whom it is
addressed, or in lieu of such personal services, when deposited in the United
States' mail, first-class postage prepaid, addressed to Illinois River Energy
at:

        Illinois River Energy
        2380 Higgins Road
        Morris, Illinois  60450
        Attention: Doug Foss

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or to GreenWay at:

        GreenWay Consulting, LLC
        74 South County Road 22
        Morris, Minnesota 56267
        Attention: Gerald Bachmeier

SECTION 11 - CONTROLLING LAW. This Agreement and the rights of the Parties
hereunder, will be governed by, interpreted and enforced in accordance with the
laws of the State of Minnesota.

SECTION 12 - DISPUTE/ARBITRATION. If any dispute arises out of or in connection
with this Agreement, the obligations arising under it or the interpretation of
its terms, the matter shall be referred to arbitration pursuant to the
Commercial Rules of the American Arbitration Association and according to the
following terms:

        (a)    Either Illinois River Energy or GreenWay may initiate arbitration
               by giving written notice requesting arbitration to the other.

        (b)    The parties shall select a single arbitrator by mutual agreement,
               but if they fail to select an arbitrator within ten (10) calendar
               days of the receipt of notice of arbitration, then each party
               shall within seven (7) business days thereafter, appoint their
               respective arbitrator and the two (2) arbitrators thus chosen
               shall together, within seven (7) business days of their
               appointment, select a third arbitrator and that three member
               panel shall arbitrate the dispute. In the event that the two
               arbitrators shall fail within seven (7) business days of their
               appointment to select a third arbitrator, then upon written
               request of either party, the third arbitrator shall be appointed
               by the American Arbitration Association. If a party shall fail to
               appoint an arbitrator as required the arbitrator appointed by the
               other party shall be the sole arbitrator. The arbitration shall
               be conducted in Minneapolis, Minnesota.

        (c)    Within fifteen (15) business days of the appointment of the
               arbitrator or panel, as the case may be, each party shall state
               in writing its position concerning the dispute, supported by the
               reasons therefore, and deliver its position to the arbitrator(s)
               and the other party. If either party fails to submit its position
               in a timely manner, the position submitted by the other party
               shall be deemed correct, and the arbitration shall be deemed
               concluded. The parties shall then have ten (10) calendar days to
               respond to the position of the other party and deliver that
               response to the arbitrator(s). The arbitrator(s) shall, within
               thirty (30) calendar days thereafter, meet to consider the
               documents presented in order to make a determination by majority
               on the issues in dispute. Within fifteen (15) business days of
               the end of their meeting the arbitrator(s) shall present their
               award. The arbitrator(s) may award a party the right to terminate
               this Agreement if termination is a remedy specified herein for
               the claim which is the subject of the arbitration.

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        (d)    Each party in such arbitration shall bear one-half each of the
               expenses of the arbitrator(s), including their fees and costs,
               but each party shall bear their own expenses, including
               attorney's fees.

SECTION 13 - LIMITATION OF LIABILITY; INDEMNIFICATION.

        (a)    GreenWay shall not be liable to Illinois River Energy, its
               affiliates and each of their respective partners, directors,
               officers, agents, consultants, employees and controlling persons
               (all such persons for purposes of this Section 13, an "Illinois
               River Energy Party" or the "Illinois River Energy Parties") for
               any losses, damages, expenses or liabilities (collectively,
               "Losses") suffered by an Illinois River Energy Party as a result
               of or relating to any act or omission of GreenWay, its affiliates
               or any of their respective partners, directors, officers, agents,
               consultants, employees and controlling persons (all such persons
               for purposes of this Section 13, a "GreenWay Party or the
               GreenWay Parties") in performing the services under this
               Agreement, except to the extent and only to the extent of any
               direct (as opposed to consequential or incidental) damages or
               Losses suffered by an Illinois River Energy Party which are
               caused proximately by (i) any acts of negligence or
               misrepresentations by a GreenWay Party; (ii) GreenWay's breach of
               any provision of this Agreement; (iii) any warranty, express or
               implied, or representation made by a GreenWay Party to any third
               party in connection with the project under development which is
               not authorized by Illinois River Energy; (iv) GreenWay's failure
               to meet its obligations to or perform any acts required under its
               agreements with its subcontractors, representatives or agents or
               any other third party; or (v) the relationship between GreenWay
               and any GreenWay Party. In addition to the foregoing limitation
               of liability, GreenWay's aggregate liability to the Illinois
               River Energy Parties under this Agreement shall be limited to and
               shall not exceed the amount of compensation earned by GreenWay
               hereunder plus any expenses paid to GreenWay hereunder. The
               foregoing limitations of liability shall not apply to GreenWay's
               indemnification of Illinois River Energy Parties against third
               party claims as provided under Section 13(c) hereof.

        (b)    Illinois River Energy shall not be liable to any GreenWay Party
               for any Losses suffered by any GreenWay Party as a result of or
               relating to any act or omission of an Illinois River Energy Party
               in connection with this Agreement or the project under
               development, except to the extent and only to the extent of any
               direct (as opposed to consequential or incidental) damages or
               Losses suffered by any GreenWay Party which are caused
               proximately by (i) any acts of negligence or misrepresentations
               by an Illinois River Energy Party; (ii) Illinois River Energy's
               breach of any provision of this Agreement; (iii) any warranty,
               express or implied, or representation made by an Illinois River
               Energy Party to any third party in connection with the project
               under development which is not authorized by GreenWay; (iv)
               Illinois River Energy's failure to meet its obligations to or
               perform any acts required under its agreements with its
               subcontractors,

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               representatives or agents or any other third party; or (v) the
               relationship between Illinois River Energy and any Illinois River
               Energy Party. In addition to the foregoing limitation of
               liability, Illinois River Energy's aggregate liability to the
               GreenWay Parties under this Agreement shall be limited to and
               shall not exceed the amount of compensation earned by GreenWay
               hereunder plus any expenses paid to GreenWay hereunder. This
               limitation of liability shall not apply to Illinois River
               Energy's indemnification of GreenWay Parties against third party
               claims as provided under Section 13(d) hereof.

        (c)    GreenWay shall indemnify and hold harmless any Illinois River
               Energy Party from and against any and all claims, demands, suits,
               actions or proceedings, including any inquiry or investigation
               ("Claims") brought by third parties based primarily on or arising
               proximately from (i) any acts of negligence or misrepresentations
               by a GreenWay Party; (ii) GreenWay's breach of any provision of
               this Agreement; (iii) any warranty, express or implied, or
               representation made by a GreenWay Party to any third party in
               connection with the project under development which is not
               authorized by Illinois River Energy; (iv) GreenWay's failure to
               meet its obligations to or perform any acts required under its
               agreements with its subcontractors, representatives or agents or
               any other third party; or (v) the relationship between GreenWay
               and any GreenWay Party. This indemnity and hold harmless shall
               include indemnity against all Losses, including reasonable
               attorneys fees, incurred by the Illinois River Energy Party in
               connection with such Claim and the defense thereof, but shall
               exclude any consequential damages suffered by the Illinois River
               Energy Party as a result of any such Claim brought by a third
               party. Provided, further, that the indemnity afforded under this
               Section 13(c) shall not apply to any Claim or Losses actually
               paid pursuant to any insurance policy covering the Illinois River
               Energy Party.

        (d)    Illinois River Energy shall indemnify and hold harmless any
               GreenWay Party from and against any and all claims, demands,
               suits, actions or proceedings, including any inquiry or
               investigation ("Claims") brought by third parties arising from or
               in connection with any act, omission, transaction or event
               contemplated by this Agreement. This indemnity and hold harmless
               shall include indemnity against all Losses, including reasonable
               attorneys fees, incurred by the GreenWay Party in connection with
               such Claim and the defense thereof, but shall exclude any
               consequential damages suffered by the GreenWay Party as a result
               of any such Claim brought by a third party. Provided, further,
               that the indemnity afforded under this Section 13(d) shall not
               apply to any Claim or Losses based primarily on or arising
               proximately from (i) any acts of negligence or misrepresentations
               by a GreenWay Party; (ii) GreenWay's breach of any provision of
               this Agreement; (iii) any warranty, express or implied, or
               representation made by a GreenWay Party to any third party in
               connection with the project under development which is not
               authorized by Illinois River Energy; (iv) GreenWay's failure to
               meet its obligations to or perform any acts required under its
               agreements with its subcontractors, representatives or agents or
               any other third party; (v) the relationship between GreenWay and
               any GreenWay

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               Party; or (vi) actually paid pursuant to any insurance policy
               covering the GreenWay Party.

        (e)    The obligations of GreenWay and Illinois River Energy under this
               Section 13 shall survive any termination of this Agreement. In
               the event of any fundamental change involving the corporate
               structure of either party, the obligations of the re-structuring
               party under this Agreement shall, if not assumed by operation of
               law, be assumed by contract by the acquiring entity or
               arrangements made to protect the interests of the
               non-restructuring party hereto reasonably satisfactory to such
               non-restructuring party.

        (f)    In no event shall any GreenWay Party other than GreenWay be
               liable or responsible to an Illinois River Energy Party for the
               debts, obligations or liabilities of GreenWay to such party under
               this Agreement. In no event shall any Illinois River Energy Party
               other than Illinois River Energy be liable or responsible to a
               GreenWay Party for the debts, obligations or liabilities of
               Illinois River Energy to such party under this Agreement.

        IN WITNESS HEREOF, the parties have executed this Agreement on the date
first above written. By the signature of its representative(s) below, each party
affirms that it has taken all necessary action to authorize said
representative(s) to execute this Agreement.

EACH PARTY AGREES IT HAS READ AND UNDERSTANDS ALL THE TERMS OF THIS AGREEMENT.

ILLINOIS RIVER ENERGY

By:   /s/ Floyd Schultz                          By:   /s/ Gregory Marshall
    --------------------------------                 ---------------------------

Its:  President                                  Its:  Secretary
     -------------------------------                  --------------------------

GREENWAY CONSULTING, LLC

By:   /s/ Gerald Bachmeier
    -------------------------------

Its:  Chief Manager
     -------------------------------

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                                    EXHIBIT A
                            NON-DISCLOSURE AGREEMENT
                           PROPRIETARY INFORMATION OF
               GREENWAY CONSULTING, LLC AND ILLINOIS RIVER ENERGY

        THIS NON-DISCLOSURE AGREEMENT ("Agreement") is made as of __________,
200___ between Illinois River Energy, a Delaware limited liability company
("Disclosing Party"), and _______________________, a _________________________
("Receiving Party").

PREAMBLE

               The Disclosing Party and the Receiving Party are currently
involved in discussions concerning the development of an ethanol processing
facility by Illinois River Energy (the "Transaction"). As a result of such
discussions, the Receiving Party may have access to certain confidential
information of the Disclosing Party and GreenWay Consulting, LLC ("GreenWay").
The Disclosing Party has entered into a nondisclosure agreement with GreenWay
prohibiting disclosure of GreenWay confidential information, subject to the
Receiving Party executing this Non-Disclosure Agreement. The Parties desire to
enter into this Agreement in order to allow disclosure to the Receiving Party
and prohibit disclosure of such information to any other party. Therefore, in
consideration of the Receiving Party being given access to certain confidential
information of the Disclosing Party and in exchange for the mutual covenant and
promises contained herein, with the intent to be legally bound, the Parties
agree as follows:

AGREEMENT

1.      CONFIDENTIAL INFORMATION.

        (a)    As used in this Agreement, the "Confidential Information" of the
        Disclosing Party shall mean all information concerning or related to the
        business, operations, financial condition or prospects of the Disclosing
        Party or any of their respective Affiliates, regardless of the form in
        which such information appears and whether or not such information has
        been reduced to a tangible form, and shall specifically include (1) all
        information regarding the officers, directors, employees, equity
        holders, customers, suppliers, distributors, insurers, reinsurers,
        brokers, independent contractors, sales representatives and licensees of
        the Disclosing Party and their respective Affiliates, in each case
        whether present or prospective, (2) all inventions, discoveries, trade
        secrets, processes, techniques, methods, formulae, ideas and know-how of
        the Disclosing Party and their respective Affiliates, (3) all financial
        statements, audit reports, budgets and business plans or forecasts of
        the Disclosing Party and their respective Affiliates and (4) all
        information concerning or related to the Transaction; provided, that the
        Confidential Information of the Disclosing Party shall not include (x)
        information which is or becomes generally known to the public through no
        act or omission of the Receiving Party and (y) information which has
        been or hereafter is lawfully obtained by the Receiving Party from

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        a source other than the Disclosing Party (or any of their respective
        Affiliates or their respective officers, directors, employees, equity
        holders or agents) so long as, in the case of information obtained from
        a third party, such third party was or is not, directly or indirectly,
        subject to an obligation of confidentiality owed to the Disclosing Party
        or any of their Affiliates at the time such Confidential Information was
        or is disclosed to the Receiving Party. As used in this Paragraph, an
        "Affiliate" of a Disclosing Party shall mean an entity which controls,
        is controlled by or is under common control of a Disclosing Party, and
        the term "control" shall mean, with respect to any entity, the
        possession, direct or indirect, of the power to direct or cause the
        direction of the management and policies of such entity, whether through
        ownership of voting securities, by contract or otherwise.

2.      NONDISCLOSURE OF CONFIDENTIAL INFORMATION. Except as otherwise permitted
        by Section 3, the Receiving Party agrees that it will not, without the
        prior written consent of the Disclosing Party, disclose or use for its
        own benefit, or that of any third party, any Confidential Information.

3.      PERMITTED DISCLOSURES. Notwithstanding Section 2, Receiving Party shall
        be permitted to:

        (a)    disclose Confidential Information to its officers, employees and
        counsel, but only to the extent reasonably necessary in order for such
        party to prepare, conduct and execute and deliver definitive documents
        for the Transaction; provided that Receiving Party shall take all such
        action as shall be necessary or desirable in order to ensure that each
        of such persons maintains the confidentiality of any Confidential
        Information that is so disclosed; and

        (b)    disclose Confidential Information to the extent, but only to the
        extent, required by law; provided, that prior to making any disclosure
        pursuant to this subsection, the Receiving Party shall notify the
        Disclosing Party of the same, and the Disclosing Party shall have the
        right to participate with the Receiving Party in determining the amount
        and type of Confidential Information of the Disclosing Party, if any,
        which must be disclosed in order to comply with applicable law.

4.      RETURN OF CONFIDENTIAL INFORMATION. If activity in respect of the
        Transaction shall cease without the Transaction being consummated, then,
        promptly after the written request of the Disclosing Party, the
        Receiving Party shall return to the Disclosing Party all Confidential
        Information which is in tangible form and which is then in its
        possession (or in the possession of any of its officers, directors or
        employees).

5.      TERM. This Agreement shall continue indefinitely.

6.      EQUITABLE RELIEF. The Receiving Party acknowledges and agrees that the
        Disclosing Party and GreenWay would be irreparably damaged in the event
        that any of the provisions of this Agreement are not performed by the
        Receiving Party in accordance with their specific terms or are otherwise
        breached. Accordingly, it is agreed that the Disclosing Party or
        GreenWay shall be entitled to an injunction or injunctions to prevent
        breaches of

                                       13
<Page>

        this Agreement by the Receiving Party and shall have the right to
        specifically enforce this Agreement and the terms and provisions hereof
        against the Receiving Party in addition to any other remedy to which the
        Disclosing Party or GreenWay may be entitled in law or equity.

7.      GOVERNING LAW. This Agreement shall be a contract under the State of
        Minnesota and for all purposes shall be governed by and construed and
        enforced in accordance with the laws of Minnesota, excluding any choice
        of law provisions.

8.      SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure
        to the benefit of each of the Parties and their respective successors
        and permitted assigns.

9.      NO ASSIGNMENT OR DELEGATION. Any assignment, delegation or attempted
        assignment or delegation of the rights or responsibilities established
        under this Agreement shall be null and void without the prior written
        duly executed consent by the Party charged.

10.     SEVERABILITY OF PROVISIONS. If any provision of this Agreement shall be
        held invalid in a court of law, the remaining provisions shall be
        construed as if the invalid provision were not included in this
        Agreement.

11.     AMENDMENT OF AGREEMENT. This Agreement may only be amended or modified
        through a written duly executed instrument by the Parties hereto. Any
        attempted oral amendment or modification is ineffective and therefore
        null and void.

12.     NO IMPLIED WAIVER OF PROVISIONS. Either Parties' failure to insist in
        any one or more instances upon strict performance by the other party of
        any of the terms of this Agreement shall not be construed as a waiver of
        any continuing or subsequent failure to perform or a delay in
        performance of any term hereof.

13.     NOTICES. Any notice required by this Agreement or given in connection
        with this Agreement, shall be in writing, hand delivered or sent via
        registered or certified mail, and shall be given to the appropriate
        party:

        If to Receiving Party:
                                             ___________________________________
                                             ___________________________________
                                             ___________________________________
                                             ___________________________________

        If to Disclosing Party:
                                             Illinois River Energy
                                             2380 Higgins Road
                                             Morris, Illinois  60450

                 With a copy to:             GreenWay Consulting, LLC
                                             74 South County Road 22
                                             Morris, Minnesota  56267

                                       14
<Page>

14.     ENTIRE AGREEMENT. This Agreement constitutes and contains the complete
        and final integrated agreement between the Parties regarding the subject
        matter herein. All prior negotiations, discussions and representations
        are merged into this Agreement. Each Party acknowledges that, except as
        expressly set forth herein, no representations of any kind or character
        have been made to it by any other party, or by any party's agents,
        representatives or attorneys, to induce the execution of this Agreement.

15.     HEADINGS. Headings used in this Agreement are provided for convenience
        only and shall not be used to construe meaning or intent.

16.     AUTHORITY TO ENTER AGREEMENT. The individuals signing this Agreement
        represent and guarantee each of them has the authority to bind their
        respective corporate entity or other principal.

17.     COPIES OF AGREEMENT. A facsimile copy of this executed Agreement shall
        be deemed valid as if it were the original.

Executed as of the date first set forth above.

RECEIVING PARTY                             DISCLOSING PARTY

                                            Illinois River Energy
---------------------------------

By:                                         By:
   -----------------------------               ---------------------------------
Its:                                        Its:
    -----------------------------               --------------------------------

cc:     GreenWay Consulting, LLC

                                       15<Page>

                                                                    EXHIBIT 10.3

                          FINANCIAL SERVICES AGREEMENT

         This Financial Services Agreement (this "AGREEMENT") is entered into
this 23rd day of July, 2002, by and between Illinois River Energy, LLC, a
Delaware limited liability company ("ILLINOIS RIVER"), and U.S. Bancorp Piper
Jaffray Inc., a Minnesota corporation ("U.S. BANCORP PIPER JAFFRAY").

                                    RECITALS:

         WHEREAS, Illinois River is desirous of developing, constructing and
operating a minimum 40 million gallon ethanol production facility in northern
Illinois (the "PROJECT");

         WHEREAS, U.S. Bancorp Piper Jaffray has experience with and can provide
advice on financial matters and assistance regarding project financing; and

         WHEREAS, Illinois River is desirous of obtaining the services of U.S.
Bancorp Piper Jaffray to provide such advice on financial matters and assistance
regarding project financing in connection with the Project.

         NOW, THEREFORE, in consideration of the mutual covenants and
stipulations hereafter, the parties agree as follows:

         SECTION 1. (A) SERVICES. U.S. Bancorp Piper Jaffray shall provide to
Illinois River the following services (the "SERVICES") in connection with the
Project:

                   (1) Assist and advise Illinois River in developing and
         implementing a strategy for the financing needs for the Project and
         Illinois River, including seed capital, equity, and debt;

                   (2) Assist and advise Illinois River in evaluating financial
         options, including associated costs and technical aspects of any U.S.
         Department of Agriculture guarantee program, tax increment financing
         revenue bonds, subordinated debt, and state and federal grants;

                   (3) Assist and advise Illinois River in sourcing and
         evaluating negotiations of debt financing for the Project, including
         construction financing and long-term debt financing;

                   (4) Assist and advise Illinois River in the preparation of a
         development business plan (the "BUSINESS PLAN") with five years of
         operation projections;

                   (5) Assist and advise Illinois River in credit analyses,
         submissions, and presentations; and

<Page>

                   (6) Services rendered in connection with the Private Debt
         Placement, as described below.

         In addition, U.S. Bancorp Piper Jaffray agrees to act as Illinois
River's exclusive selling agent to solicit purchases of equity and debt on a
"best efforts" basis. The equity offering and the compensation of U.S. Bancorp
Piper Jaffray related to such equity offering shall be pursuant to an agency
agreement to be entered into by Illinois River and U.S. Bancorp Piper Jaffray
(the "AGENCY AGREEMENT").

         (B) PRIVATE DEBT PLACEMENT. The offering of debt will be made by a
private placement memorandum (including any amendments thereto, the
"MEMORANDUM") to be prepared by Illinois River. Any offers and sales of debt
securities will be made in accordance with the exemptions from registration
under the Securities Act of 1933, as amended (the "ACT"), as provided by Section
4(2) and/or Regulation D, Rule 506 under the Act, and other available exemptions
under the Act and applicable State or other jurisdictions securities laws (the
"PRIVATE DEBT PLACEMENT").

         U.S. Bancorp Piper Jaffray will consult with Illinois River in planning
the Private Debt Placement and review with Illinois River and its counsel all
preliminary and final revisions of the Memorandum, the subscription documents
(including investor questionnaires) related thereto, and such local securities
laws' compliance as may be required as a result of the Private Debt Placement.
All documents to be used in the Private Debt Placement are to be reviewed by
U.S. Bancorp Piper Jaffray prior to use by Illinois River in making offers or
sales.

         It is understood that Illinois River may in its discretion postpone,
modify, abandon or terminate the Private Debt Placement at any time prior to its
consummation. U.S. Bancorp Piper Jaffray may decline to participate in the
Private Debt Placement if it reasonably determines that the offering has become
impractical or undesirable. Subject to prior approval by Illinois River, U.S.
Bancorp Piper Jaffray reserves the right to retain other NASD broker/dealers to
act as subagents on its behalf and to retain foreign representatives to act on
its behalf for offers to non-U.S. persons (as defined under the Act), subject to
their agreement to the terms hereof.

         SECTION 2.    COMPENSATION.

         (A) FEES. In consideration of the Services, Illinois River will pay to
U.S. Bancorp Piper Jaffray a fee as a percentage of Total Project Capitalization
as set forth in the following table. All capitalized terms in this Section 2(A)
are defined in Section 2(B) below.
                                                     PAYMENT
                FEE                                   TERMS
                ---                                   -----

1.75% of Total Project Capitalization    Due in full at time of Financial Close

0.25% of Total Project Capitalization    Prorated over 9 months after Successful
                                           Commissioning

         The fees described in this Section 2(A) are in addition to any fees or
commissions payable to U.S. Bancorp Piper Jaffray by Illinois River under the
Agency Agreement.

         (B) DEFINITIONS:

<Page>

         FINANCIAL CLOSE: Closing on all Project Financing; provided, however,
that "Project Financing" shall not include financing related to any equity
offering by Illinois River.

         SUCCESSFUL COMMISSIONING: Production of ethanol meeting design
specifications on a daily basis of nameplate production and all production meets
the guarantees provided by the general contractor and engineer, each as agreed
upon by Illinois River and U.S. Bancorp Piper Jaffray.

         PROJECT FINANCING:  Total financing of the Project.

         TOTAL PROJECT CAPITALIZATION: The total source of funds including, but
not limited to, grants, subordinated debt, senior debts, the equity portion of
Working Capital, and revolving line of credit all as established as of Financial
Close; provided, however, "Total Project Capitalization" does not include Seed
Capital Equity or proceeds raised as a result of any equity offering.

         SEED CAPITAL EQUITY:  At risk capital for project development.

         (C) EXPENSES. Illinois River has paid U.S. Bancorp Piper Jaffray a
non-refundable expense retainer of $40,000 (the "EXPENSE RETAINER"). Any unused
portion of the Expense Retainer at Financial Close will be an offset against the
fees set forth above.

         U.S. Bancorp Piper Jaffray's out-of-pocket expenses, including travel,
lodging, meals, communication, costs of outside financial analysis and reports
prepared in connection with providing the Services shall be deductions from the
Expense Retainer. If expenses (excluding costs of issuance) exceeding $5,000 per
month are required, U.S. Bancorp Piper Jaffray shall seek pre-approval therefor
from Illinois River. Strict compliance with the foregoing pre-approval provision
is required. U.S. Bancorp Piper Jaffray shall submit monthly updated expense
reports to Illinois River for reimbursement analysis.

         Illinois River will be responsible for the payment of all costs of
issuance, fees and expenses, including, but not limited to, publication
expenses, legal counsel, bond counsel, ratings, credit enhancement, all travel,
printing of bonds, printing and distribution of required disclosure documents,
trustee fees, agent fees and CUSIP numbers.

         SECTION 3. TERM OF AGREEMENT; TERMINATION PAYMENT. Except as set
forth in Paragraph 5 of Exhibit A hereto, the term of this Agreement shall begin
on the date of execution set forth above and shall have an expiration date 9
months after Successful Commissioning (as such term in defined in Section 2(A)).

         Either party may terminate this Agreement immediately if (1)
$10,000,000 in equity has not been raised by Illinois River by September 1,
2002, or (2) the Financial Close has not occurred by January 2, 2003.

         All expenses incurred through the date of termination of this Agreement
shall be paid to the appropriate party. In the event Illinois River terminates
this Agreement prior to Financial Close but after raising $10,000,000 in equity,
Illinois River shall pay U.S. Bancorp Piper Jaffray a termination fee pursuant
to the terms set forth in Section 2(A).

         SECTION 4. INDEPENDENT CONTRACTOR. U.S. Bancorp Piper Jaffray is an
independent contractor and nothing in this Agreement shall constitute or
designate U.S. Bancorp Piper Jaffray or any of its employees or agents as
employees or agents of Illinois River.

         SECTION 5. (A) REPRESENTATIONS AND WARRANTIES OF ILLINOIS RIVER.
Illinois River represents and warrants to U.S. Bancorp Piper Jaffray that it has
obtained all necessary corporate authority, permits, consents and

<Page>

orders required to enter into this Agreement. This Agreement has been duly
authorized by Illinois River. Illinois River further represents and warrants
that the Memorandum, when prepared by Illinois River, will not contain an untrue
statement of a material fact or omit to state a material fact required to be
made or necessary in order to make the statements in the Memorandum not
misleading.

         (B) REPRESENTATIONS AND WARRANTIES OF U.S. BANCORP PIPER JAFFRAY. U.S.
Bancorp Jaffray represents it has the necessary licenses, permits and
registration to perform and carry out the Services.

         SECTION 6. ARBITRATION. If any dispute arises out of or in connection
with this Agreement (except for any dispute arising out of or in connection with
the confidentiality provisions set forth on Exhibit A hereto), the obligations
arising under this Agreement (except for any obligations arising under the
confidentiality provisions set forth on Exhibit A hereto) or the interpretation
of this Agreement's terms (except for the interpretation of the terms of the
confidentiality provisions set forth on Exhibit A hereto), the matter shall be
referred to arbitration pursuant to the commercial rules of the American
Arbitration Association and according to the following terms:

                   (A) Either party may initiate arbitration by giving written
         notice requested arbitration to the other party.

                   (B) The parties shall select a single arbitrator by mutual
         agreement, but if they fail to select an arbitrator within 10 calendar
         days of the receipt of notice of arbitration, then each party shall
         within seven business days thereafter, appoint their respective
         arbitrator and the two arbitrators thus chosen shall together, within
         seven business days of their appointment, select a third arbitrator and
         that three member panel shall arbitrate the dispute. In the event that
         the two arbitrators shall fail within seven business days of their
         appointment to select a third arbitrator, then upon written request of
         either party, the third arbitrator shall be appointed by the American
         Arbitration Association. If a party shall fail to appoint an arbitrator
         as required the arbitrator appointed by the other party shall be the
         sole arbitrator. The arbitration shall be conducted in Minneapolis,
         Minnesota.

                   (C) Within 15 business days of the appointment of the
         arbitrator or panel, as the case may be, each party shall state in
         writing its position concerning the dispute, supported by the reasons
         therefore, and deliver its position to the arbitrator(s) and the other
         party. If either party fails to submit its position in a timely manner,
         the position submitted by the other party shall be deemed correct, and
         the arbitration shall be deemed concluded. The parties shall then have
         10 calendar days to respond to the position of the other party and
         deliver that response to the arbitrator(s). The arbitrator(s) shall,
         within 30 calendar days thereafter, meet to consider the documents
         presented in order to make a determination by majority on the issues in
         dispute. Within 15 business days of the end of their meeting the
         arbitrator(s) shall present their award. The arbitrator(s) may award a
         party the right to terminate this Agreement if termination is a remedy
         specified herein for the claim which is the subject of the arbitration.

                   (D) Each party in such arbitration shall bear one-half each
         of the expenses of the arbitrator(s), including their fees and costs,
         but each party shall bear their own expenses, including attorney's
         fees.

         SECTION 7. INDEMNIFICATION AND CONTRIBUTION. In consideration of the
agreement of U.S. Bancorp Piper Jaffray to act on behalf of Illinois River
pursuant to this Agreement, Illinois River agrees to indemnify and hold harmless
U.S. Bancorp Piper Jaffray, its affiliates (within the meaning of the Act), and
each of their respective partners, directors, officers, agents, consultants,
employees and controlling persons (within the meaning of the Act) (U.S. Bancorp
Piper Jaffray and each such other person or entity are hereinafter referred to
as an "INDEMNIFIED PERSON"), from and against any losses, damages, expenses and
liabilities (collectively "LIABILITIES") or actions, investigations, inquiries,
arbitrations, claims or other proceedings in respect thereof, including
enforcement of this agreement (collectively "ACTIONS")

<Page>

(Liabilities and Actions are herein collectively referred to as "LOSSES"), as
they may be incurred (including all reasonable legal fees and other expenses
incurred in connection with investigating, preparing, defending, paying,
settling or compromising any Losses, whether or not in connection with any
pending or threatened Action, and notwithstanding the absence of a final
determination as set forth below as to Illinois River's obligation to reimburse
an Indemnified Person for such Losses and the possibility that such payments
might later be held to have been improper) to which any of them may become
subject and which are related to or arise out of any act, omission, transaction
or event contemplated by this Agreement. Illinois River will not, however, be
responsible under the foregoing provisions with respect to any Losses to the
extent that it shall have been finally determined by arbitration in accordance
with the terms of this Agreement that such Losses resulted primarily from
actions taken or omitted to be taken by an Indemnified Person due to its gross
negligence or willful misconduct. To the extent that any prior payment has been
made by Illinois River to such Indemnified Person is so determined to have been
improper by reason of such Indemnified Person's gross negligence or willful
misconduct, such Indemnified Person shall promptly pay such amount to Illinois
River, together with interest, at the prime rate announced from time to time by
U.S. Bank, N.A.

         If the indemnity provided for in this Section 7 should be, for any
reason whatsoever, unenforceable, unavailable or otherwise insufficient to hold
each Indemnified Person harmless, Illinois River shall pay to or on behalf of
each Indemnified Person contributions for Losses so that each Indemnified Person
ultimately bears only a portion of such Losses as is appropriate (i) to reflect
the relative benefits received by each such Indemnified Person, respectively, on
the one hand and Illinois River on the other hand in connection with the
transaction or (ii) if the allocation on that basis is not permitted by
applicable law, to reflect not only the relative benefits referred to in clause
(i) above but also the relative fault of each such Indemnified Person,
respectively, and Illinois River as well as any other relevant equitable
considerations; PROVIDED, HOWEVER, that in no event shall the aggregate
contribution of all Indemnified Persons to all Losses in connection with any
transaction exceed the amount of the compensation actually received by U.S.
Bancorp Piper Jaffray pursuant to this Agreement. The respective relative
benefits received by U.S. Bancorp Piper Jaffray and Illinois River in connection
with any transaction shall be deemed to be in the same proportion as the
aggregate fee paid to U.S. Bancorp Piper Jaffray in connection with the
transaction bears to the total consideration of the transaction. The relative
fault of each Indemnified Person and Illinois River shall be determined by
reference to, among other things, whether the actions or omissions to act were
by such Indemnified Person or Illinois River and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
action or omission to act.

         Illinois River also agrees that no Indemnified Person shall have any
liability to Illinois River or its affiliates, directors, officers, employees,
agents or shareholders, directly or indirectly, related to or arising out of
this Agreement, except Losses incurred by Illinois River which it shall have
been finally determined by arbitration in accordance with the terms of this
Agreement to have resulted primarily from actions taken or omitted to be taken
by such Indemnified Person due to its gross negligence or willful misconduct. In
no event, regardless of the legal theory advanced, shall any Indemnified Person
be liable for any consequential, indirect, incidental or special damages of any
nature. Illinois River agrees that without U.S. Bancorp Piper Jaffray's prior
written consent it shall not settle any pending or threatened claim, action,
suit or proceeding related to this Agreement unless the settlement also includes
an express unconditional release of all Indemnified Persons from all liability
and obligations arising therefrom, or Illinois River reaffirms its obligations
to indemnify for or contribute to Losses incurred by any unreleased Indemnified
Person as herein provided.

         Promptly after its receipt of notice of the commencement of any action,
any Indemnified Person will, if a claim in respect thereof is to be made against
Illinois River hereunder, notify in writing Illinois River of the commencement
thereof; but omission so to notify Illinois River will not relieve Illinois
River

<Page>

from any liability hereunder which it may have to any Indemnified Person. If
Illinois River so elects, Illinois River may assume the defense of such Action
in a timely manner, including the employment of counsel (reasonably satisfactory
to U.S. Bancorp Piper Jaffray) and payment of expenses, provided Illinois River
acknowledges in writing its unconditional obligation pursuant to this agreement
to indemnify U.S. Bancorp Piper Jaffray in respect of such Action and provides
to U.S. Bancorp Piper Jaffray evidence reasonably satisfactory to U.S. Bancorp
Piper Jaffray that Illinois River will have the financial resources to conduct
such defense actively and diligently and permits U .S. Bancorp Piper Jaffray and
counsel retained by U.S. Bancorp Piper Jaffray at its expense to participate in
such defense. Notwithstanding the foregoing, in the event U.S. Bancorp Piper
Jaffray determines in its sole discretion that it is advisable for the
Indemnified Persons to be represented by separate counsel, then U.S. Bancorp
Piper Jaffray may employ on behalf of the Indemnified Persons a single separate
counsel to represent or defend such Indemnified Persons in such action, claim,
proceeding or investigation and Illinois River will pay the fees and
disbursements of such separate counsel as incurred.

         In the event of any fundamental change involving the corporate
structure of Illinois River, such as by merger, plan of exchange or sale of all
or substantially all of its assets, any executory obligations of Illinois River
in this engagement letter shall, if not assumed by operation of law, be assumed
by contract by the acquiring entity or arrangements made to protect the
interests of U.S. Bancorp Piper Jaffray reasonably satisfactory to U.S. Bancorp
Piper Jaffray.

         If multiple claims are brought against U.S. Bancorp Piper Jaffray in
any Action with respect to at least one of which indemnification is permitted
under applicable law and provided for under this agreement, Illinois River
agrees that any judgment, arbitration award or other monetary award shall be
conclusively deemed to be based on claims as to which indemnification is
permitted and provided for.

         The obligations of Illinois River referred to above shall be in
addition to any rights that any Indemnified Person may otherwise have.

         SECTION 8. ENTIRE AGREEMENT/AMENDMENTS. This Agreement constitutes
the entire Agreement between the parties hereto and sets forth the rights,
duties, and obligations of each to the other as of this date. Any prior
agreements, promises, negotiations, or representations not expressly set forth
in this Agreement, including the Financial Services and Equity Placement
Agreement, dated as of July 8, 2002, between U.S. Bancorp Piper Jaffray Inc. and
Illinois River Energy, LLC, are of no force and effect. This Agreement shall not
be modified except in writing and executed by both parties.

         SECTION 9. GOVERNING LAW. This Agreement and the rights of the parties
hereunder will be governed by, interpreted, and enforced in accordance with the
laws of the State of Minnesota.

         The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any of the remaining
provisions.

        SECTION 10. NOTICES. Any written notice or communication required by
this Agreement, or by law, to be served on, given to, or delivered to either
party by the other party, shall be in writing and shall be deemed duly served,
given, or delivered when personally delivered to the party to whom it is
addressed, or in lieu of such personal service, when deposited in the U.S. mail,
first class, postage pre-paid addressed as follows:

         Illinois River Energy, LLC

<Page>

         ATTN:  Floyd Schultz
         4000 N. Division
         Morris, IL 60450

         U.S. Bancorp Piper Jaffray Inc.
         ATTN:  Mark E. Fisler
         2780 Skypark Drive, Suite 400
         Torrance, CA 90505

        SECTION 11. BINDING EFFECT. This Agreement shall be binding upon and
shall inure to the benefit of the parties hereunder as well as their respective
representatives, distributees, successors, and assigns. No assignment of this
Agreement shall be allowed to any third party without the other party's prior
written consent.

        SECTION 12. CONFIDENTIALITY. Illinois River agrees to provide
documents and other information related to the Project, as U.S. Bancorp Piper
Jaffray may reasonably request. U.S. Bancorp Piper Jaffray agrees to provide
documentation related to its provision of the Services, as Illinois River may
reasonably request. All such information will be held in confidence pursuant to
the terms and conditions set forth on Exhibit A hereto, which Exhibit A is
hereby incorporated by reference herein and made part of this Agreement;
provided, however, that information may be disclosed pursuant to subpoena or
other judicial or administrative order or process or as may be appropriate in
connection with the Private Debt Placement to prospective investors.

         IN WITNESS HEREOF, the parties have executed this Agreement on the day
and year first above written. By the signature of its representative(s) below,
each party affirms that it has taken all necessary action to authorize said
representative(s) to execute this Agreement.

         EACH PARTY AGREES IT HAS READ AND UNDERSTANDS ALL THE TERMS OF THIS
AGREEMENT.

                                  ILLINOIS RIVER ENERGY, LLC

                                  By:    /S/ JAY B. FILLMAN (signature)
                                      ------------------------------------------
                                             JAY B. FILLMAN (printed)

                                     Its    VICE PRESIDENT
                                         --------------------------------------

                                  U.S. BANCORP PIPER JAFFRAY INC.

                                  By:    /S/ MARK E. FISLER (signature)
                                      -----------------------------------------
                                             MARK E. FISLER (printed)

                                     Its    MANAGING DIRECTOR
                                         ------------------------------------

<Page>

                                    EXHIBIT A

                         TO FINANCIAL SERVICES AGREEMENT

                           CONFIDENTIALITY PROVISIONS

         This is Exhibit A to the Financial Services Agreement (the "FINANCIAL
SERVICES AGREEMENT"), dated July 23, 2002, by and between Illinois River Energy,
a Delaware limited liability company ("ILLINOIS RIVER"), and U.S. Bancorp Piper
Jaffray Inc., a Minnesota corporation ("U.S. BANCORP PIPER JAFFRAY").

PREAMBLE

         Illinois River and U.S. Bancorp Piper Jaffray are currently involved in
discussions concerning the development and financing of an ethanol processing
facility by Illinois River Energy (the "TRANSACTION"). As a result of such
discussions, each party may have access to certain confidential information of
the other party. The parties desire to be bound by the terms of this Exhibit A
to the Financial Services Agreement in order to allow disclosure to the party
receiving such information (the "RECEIVING PARTY") and prohibit disclosure of
such information to any other party. Therefore, in consideration of the
Receiving Party being given access to certain confidential information of the
party providing such information (the "DISCLOSING PARTY") and in exchange for
the mutual covenant and promises contained in this Exhibit A to Financial
Services Agreement, with the intent to be legally bound, Illinois River and U.S.
Bancorp Piper Jaffray agree as follows:

AGREEMENT

          1. CONFIDENTIAL INFORMATION. (a) As used in this Exhibit A to
Financial Services Agreement, the "CONFIDENTIAL INFORMATION" of the Disclosing
Party shall mean all information concerning or related to the business,
operations, financial condition or prospects of the Disclosing Party or any of
their respective Affiliates, regardless of the form in which such information
appears and whether or not such information has been reduced to a tangible form,
and shall specifically include (1) all information regarding the officers,
directors, employees, equity holders, customers, suppliers, distributors,
insurers, reinsurers, brokers, independent contractors, sales representatives
and licensees of the Disclosing Party and their respective Affiliates, in each
case whether present or prospective, (2) all inventions, discoveries, trade
secrets, processes, techniques, methods, formulae, ideas and know-how of the
Disclosing Party and their respective Affiliates, (3) all financial statements,
audit reports, budgets and business plans or forecasts of the Disclosing Party
and their respective Affiliates and (4) all information concerning or related to
the Transaction; provided, that the Confidential Information of the Disclosing
Party shall not include (x) information which is or becomes generally known to
the public through no act or omission of the Receiving Party and (y) information
which has been or hereafter is lawfully obtained by the Receiving Party from a
source other than the Disclosing Party (or any of their respective Affiliates or
their respective officers, directors, employees, equity holders or agents) so
long as, in the case of information obtained from a third party, such third
party was or is not, directly or indirectly, subject to an obligation of
confidentiality owed to the Disclosing Party or any of their Affiliates at the
time such Confidential Information was or is disclosed to the Receiving Party.
As used in this Paragraph, an "Affiliate" of a Disclosing Party shall mean an
entity which controls, is controlled by or is under common control of a
Disclosing Party, and the term "control" shall mean, with respect to any

<Page>

entity, the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of such entity, whether through
ownership of voting securities, by contract or otherwise.

          2. NONDISCLOSURE OF CONFIDENTIAL INFORMATION. Except as otherwise
permitted by Section 3 of this Exhibit A to Financial Services Agreement, the
Receiving Party agrees that it will not, without the prior written consent of
the Disclosing Party, disclose or use for its own benefit, or that of any third
party, any Confidential Information.

         3. PERMITTED DISCLOSURES. Notwithstanding Section 2 of this Exhibit A
to Financial Services Agreement, Receiving Party shall be permitted to:

                   (a) disclose Confidential Information to its officers,
         employees and counsel, but only to the extent reasonably necessary in
         order for such party to prepare, conduct and execute and deliver
         definitive documents for the Transaction; provided that Receiving Party
         shall take all such action as shall be necessary or desirable in order
         to ensure that each of such persons maintains the confidentiality of
         any Confidential Information that is so disclosed; and

                   (b) disclose Confidential Information to the extent, but only
         to the extent, required by law; provided, that prior to making any
         disclosure pursuant to this subsection, the Receiving Party shall
         notify the Disclosing Party of the same, and the Disclosing Party shall
         have the right to participate with the Receiving Party in determining
         the amount and type of Confidential Information of the Disclosing
         Party, if any, which must be disclosed in order to comply with
         applicable law.

          4. RETURN OF CONFIDENTIAL INFORMATION. If activity in respect of the
Transaction shall cease without the Transaction being consummated, then,
promptly after the written request of the Disclosing Party, the Receiving Party
shall return to the Disclosing Party all Confidential Information which is in
tangible form and which is then in its possession (or in the possession of any
of its officers, directors or employees).

          5. TERM. The parties' rights and obligations under this Exhibit A to
Financial Services Agreement shall continue indefinitely.

          6. EQUITABLE RELIEF. The Receiving Party acknowledges and agrees that
the Disclosing Party would be irreparably damaged in the event that any of the
provisions of this Exhibit A to Financial Services Agreement are not performed
by the Receiving Party in accordance with their specific terms or are otherwise
breached. Accordingly, it is agreed that the Disclosing Party shall be entitled
to an injunction or injunctions to prevent breaches of this Exhibit A to
Financial Services Agreement by the Receiving Party and shall have the right to
specifically enforce the terms of this Exhibit A to Financial Services Agreement
and the terms and provisions hereof against the Receiving Party in addition to
any other remedy to which the Disclosing Party may be entitled in law or equity.

          7. GOVERNING LAW. This Exhibit A to Financial Services Agreement shall
be a contract under the State of Minnesota and for all purposes shall be
governed by and construed and enforced in accordance with the laws of Minnesota,
excluding any choice of law provisions.

          8. SUCCESSORS AND ASSIGNS. The terms of this Exhibit A to Financial
Services Agreement shall be binding upon and inure to the benefit of each of the
Parties and their respective successors and permitted assigns.

          9. NO ASSIGNMENT OR DELEGATION. Any assignment, delegation or
attempted assignment or delegation of the rights or responsibilities established
under this Exhibit A to Financial Services Agreement shall be

<Page>

null and void without the prior written duly executed consent by the Party
charged.

         10. SEVERABILITY OF PROVISIONS. If any provision of this Exhibit A to
Financial Services Agreement shall be held invalid in a court of law, the
remaining provisions shall be construed as if the invalid provision were not
included in this Exhibit A to Financial Services Agreement.

         11. AMENDMENT OF EXHIBIT A TO FINANCIAL SERVICES AGREEMENT. This
Exhibit A to Financial Services Agreement may only be amended or modified
through a written duly executed instrument by the Parties hereto. Any attempted
oral amendment or modification is ineffective and therefore null and void.

         12. NO IMPLIED WAIVER OF PROVISIONS. Either Parties' failure to insist
in any one or more instances upon strict performance by the other party of any
of the terms of this Exhibit A to Financial Services Agreement shall not be
construed as a waiver of any continuing or subsequent failure to perform or a
delay in performance of any term hereof.

         13. NOTICES. Any notice required by this Exhibit A to Financial
Services Agreement or given in connection with this Exhibit A to Financial
Services Agreement, shall be in writing, hand delivered or sent via registered
or certified mail, and shall be given to the appropriate party:

         If to Illinois River:                   Illinois River Energy LLC
                                                 4000 N. Division
                                                 Morris, Illinois  60450

         If to U.S. Bancorp Piper Jaffray:       U.S Bancorp Piper Jaffray Inc.
                                                 2780 Skypark Drive, Suite 400
                                                 Torrance, California 90505
                                                 Attn:  Mark E. Fisler

          14. HEADINGS. Headings used in this Exhibit A to Financial Services
Agreement are provided for convenience only and shall not be used to construe
meaning or intent.

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