Document:

License Agreement (Plant 4) - Delta-T

    EXHIBIT
      10.5

    

    

    NOTE:
      Information in this document marked with an "[*]" has been omitted and filed
      separately with the Securities and Exchange Commission. Confidential treatment
      has been requested with respect to the omitted portions.

    

    ENGINEERING,
      PROCUREMENT AND

    TECHNOLOGY
      LICENSE AGREEMENT

    

    GENERAL
      CONDITIONS

    (Plant
      No. 4)

    

    

    THIS
      AGREEMENT,
      made
      this 6th
      day of
      September, 2006 by and between Delta-T Corporation, a Virginia corporation,
      with
      its principal place of business at 323 Alexander Lee Parkway, Williamsburg,
      Virginia 23185 (hereinafter “Delta-T”), and Pacific
      Ethanol, Inc., a Delaware corporation, with
      its
      principal place of business at 5711 N. West Avenue, Fresno, California 93711
      (hereinafter “Owner”), each of which may be referred to individually as a
      "Party," or jointly as the "Parties."

    

    WITNESSETH:

    

    WHEREAS,
      DELTA-T is engaged in the performance of engineering, procurement and
      construction services;

    

    WHEREAS,
      Owner desires DELTA-T through Delta-T Project Services, LLC (located at the
      Ford, Bacon and Davis, LLC office in Monroe, LA) (hereinafter “DTPC”) to furnish
      and perform certain engineering and procurement services to support the
      construction and startup of Owner’s fuel ethanol plant at a location to be
      designated; and

    

    WHEREAS,
      Owner and its parent/affiliate (Pacific Ethanol, Inc.) and DELTA-T desire to
      use
      this Agreement as a template for the execution of future projects utilizing
      DELTA-T Technology.

    

    NOW,
      THEREFORE, IN CONSIDERATION of the mutual terms and conditions of this
      Agreement, Owner and DELTA-T agree as follows:

    

    

    ARTICLE
      1

    DEFINITIONS

    

    1.1
      Definitions:
      The
      following words, when capitalized, shall have the meanings set forth
      below:

    

    1.1.1
      Affiliate
      and Control:
      “Affiliate”
      shall
      mean, with respect to any entity, any other entity Controlling, Controlled
      by or
      under common Control with such entity, where “Control” and its derivatives shall
      mean, with regard to any entity, the legal, beneficial or equitable ownership,
      directly or indirectly, of interest sufficient to exercise control over the
      management of such entity. 

    

    1.1.2
      Basic
      Process Design:“Basic
      Process Design” shall mean the process design to be provided by DELTA-T at the
      level of detail described in Schedule A.

     

    
      
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    1.1.3
      Confidential
      Information:“Confidential
      Information” shall mean all of the following: (1) all of the provisions of this
      Contract and its Exhibits/Schedules, especially, but not limited to, the
      provisions concerning pricing and performance, financial information, vendor
      lists, price lists, cost data, and other business and commercially sensitive
      information, and (2) all technical information, including without limitation,
      drawings, designs, methodology, processes, models, inventions, specifications,
      plant or equipment test and operating data, improvements, processes, and other
      technical information of any kind, whether or not patented or patentable and
      whether embodied in a drawing or in equipment or any other physical thing.
      Notwithstanding the foregoing, “Confidential Information” does not include
      information which a Party can demonstrate: (a) was known to it or in its
      possession prior to receipt from the disclosing Party; (b) was in the public
      domain at the time of disclosure or thereafter enters into the public domain
      through no breach of this Contract by the disclosing Party or is in general
      use
      in the trade without violation by a Party to this Contract, or violation by
      any
      other party of an obligation not to disclose it; or (c) is disclosed by a party
      other than Owner or DELTA-T who is under no obligation not to disclose it .
      Notwithstanding the foregoing or anything herein to the contrary, Owner’s
      requirements and the description of Work will be deemed to be the Confidential
      Information of Owner only.

    

    1.1.4
      Contract:“Contract”
      shall mean these General Conditions, the Schedules, and all additions or
      modifications thereto made in accordance with Article 5 and Article 20, Section
      20.2 of these General Conditions.

    

    1.1.5
      Contract
      Sum:“Contract
      Sum” shall mean the sum determined in accordance with Article 8 of the General
      Conditions.

    

    1.1.6
      Date
      of Commencement:“Date
      of
      Commencement” shall mean the date of commencement of this Contract, which shall
      be the date on which it has been executed by both Parties.

    

    1.1.6a
       Day: “day”
      shall mean a calendar day unless specifically identified as a “business
      day.”

    

    1.1.7
      DELTA-T
      Technology:
      “DELTA-T
      Technology” shall mean all
      Confidential Information of DELTA-T embodied in any drawing, design, patent,
      patent application or process delivered by DELTA-T to Owner
      and any
      inventions (whether patentable or not), copyrights, trade secrets or other
      similar intellectual property rights of Delta-T which are embodied in the Work
      Product.  

    

    1.1.8
      Equipment:“Equipment”
      shall mean the equipment and materials for which DELTA-T will provide
      procurement services under Schedule A of this Contract.

    

    1.1.9
      Final
      Acceptance:“Final
      Acceptance” shall mean the date upon which the Plant has operated at its
      designed capacity for a continuous 2 week period. 

    

    1.1.10
      Reserved. 

    

    1.1.11
      General
      Conditions:“General
      Conditions” shall mean all portions of this Contract other than the
      Schedules.

     

    
      
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    1.1.12
      Mechanical
      Completion: The
      completion of construction activities essential to the safe and proper operation
      of the plant. This includes site, building, mechanical equipment, piping,
      electrical as more fully described below: 

    

      
        	 	
                ·

              	
                Inspection
                  of all equipment to check that erected facilities conform to construction
                  drawings and Contract
                  specifications.

              

      

      
        	 	
                ·

              	
                Non-operating
                  field leak tests or field pressure tests on piping and field-fabricated
                  equipment as required by the Contract specifications, disposing
                  of test
                  media on site at a location specified by Owner, and removal of
                  test blinds
                  and restoring systems to “ready for operation”
                  condition.

              

      

      
        	 	
                ·

              	
                Removal
                  of all temporary supports, bracing or other foreign
                  objects.

              

      

      
        	 	
                ·

              	
                Inspection
                  of all columns to ensure proper installation of all
                  internals.

              

      

      
        	 	
                ·

              	
                Field
                  inspection of all shop fabricated
                  equipment.

              

      

      
        	 	
                ·

              	
                Line
                  flushing as part of hydrotesting.

              

      

      
        	 	
                ·

              	
                Check
                  to ensure that all baseplates and soleplates are level and properly
                  grouted.

              

      

      
        	 	
                ·

              	
                Check
                  pipe hangers, supports, guides and pipe specialties, and remove
                  all
                  shipping and erection bracing.

              

      

      
        	 	
                ·

              	
                Check
                  alignment of all piping fit-up with equipment to avoid excessive
                  nozzle
                  loading and pipe stresses.

              

      

      
        	 	
                ·

              	
                Insulation
                  for process purposes.

              

      

      
        	 	
                ·

              	
                Install
                  Lubricants.

              

      

      
        	 	
                ·

              	
                Check
                  rotating machinery for correct direction of rotation and for freedom
                  of
                  moving parts.

              

      

      
        	 	
                ·

              	
                Check
                  cold alignments on rotating
                  equipment.

              

      

      
        	 	
                ·

              	
                Schedule
                  the services of factory representatives for equipment or other
                  items as
                  required.

              

      

      
        	 	
                ·

              	
                Electrical
                  and Instrumentation installed.

              

      

       

    

    Irrespective
      of the foregoing, Mechanical Completion shall be deemed achieved once feedstock
      is introduced into the Plant and ethanol has been produced.

    

    1.1.13
      Plant:“Plant”
      shall mean the new 50,000,000 GPY ethanol plant being designed,
      developed and constructed 
      by Owner
      at a location yet to be designated, being the fourth Plant developed by Owner
      employing DELTA-T Technology.

    

    1.1.14
      Reserved.

    

    1.1.15
      Process:“Process”
      shall mean a system designed for production of an anhydrous fuel-grade ethanol
      at the rate of not less than 50,000,000 US gallons per year (based on a 350
      day
      operating year) of undenatured alcohol using corn feedstock of
      56
      lb/bushel test weight No. 2 Yellow Dent corn containing a maximum of 14.5%
      moisture (by weight), a minimum of 72% dry, trash-free starch (by weight) and
      a
      max of 1% foreign material (by weight).
      

    

    1.1.16
      Reserved. 

    

    1.1.17
      Startup:“Startup”
      shall mean the point in time at which corn feedstock is first introduced into
      the Process for the purpose of making ethanol. 

     

    
      1.1.18
        Work:“Work”
        shall mean the services to be provided by DELTA-T under this
        Contract.

       

    

    
      
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    ARTICLE
      2

    SCOPE
      OF WORK

    

    2.1
      Description of Work:
      DELTA-T
      shall provide the technology transfer, engineering and procurement services
      described in Schedule A. To the extent of any conflict between these General
      Conditions and the Schedules hereto, these General Conditions shall be
      controlling. DELTA-T shall not purchase or commit to purchase any Equipment
      without first identifying in writing for Owner the Equipment and the cost to
      DELTA-T and the cost to Owner and obtaining Owner’s written approval of such
      Equipment.

    

    2.2
      Permits and Compliance with Law:
      DELTA-T
      shall, at its expense, secure all permits that it is required by any federal,
      state or local law rule, regulation or other legal requirement (“Legal
      Requirements”) to procure in connection with its performance of the Work. All
      other permits required by applicable law or regulation, including without
      limitation, permits related to environmental protection, operation of the plant
      at which the Equipment is installed, or activities of Owner or any of its
      contractors (other than DELTA-T), shall be secured by Owner at Owner’s expense.
      DELTA-T shall comply with all Legal Requirements that are applicable to its
      performance of the Work, and all work product generated by DELTA-T in connection
      with the Work shall comply with all such Legal Requirements. 

    

    

    ARTICLE
      3

    INFORMATION,
      GOODS AND SERVICES TO BE PROVIDED BY OWNER; COOPERATION ON DETAILED
      DESIGN

    

    3.1
      Owner’s Deliverables:
      Owner
      shall furnish to DELTA-T, at Owner’s expense, the documents, drawings,
      equipment, specifications, information, personnel and services identified in
      Schedule A as within the scope of Owner’s obligations, and shall furnish them
      within the times prescribed in Schedule C, or, if no time is prescribed, within
      the time reasonably requested by DELTA-T to allow DELTA-T to perform its
      obligations under this Contract.

    

    3.2
      Review of the Design:
      Owner
      will review the elements of the design that are specifically identified on
      Schedule A as elements to be reviewed by Owner (as identified with “*”). Upon
      receipt of the designs supplied by DELTA-T, Owner may, within twenty (20)
      business days of receipt, suggest changes or additions to the design. DELTA-T
      shall make all reasonable attempts to incorporate any changes or additions
      suggested upon review, provided that Delta-T shall notify Owner in writing
      if it
      believes that doing so would not be useful to, or would be detrimental to,
      the
      Process. 

    

    3.3
      Review of Detailed Design Components:
      Owner
      shall require its contractor or vendor to submit to DELTA-T, for its review,
      all
      detailed engineering documents identified on Schedule A as documents to be
      reviewed by DELTA-T (as identified with a “*”). DELTA-T shall provide to Owner,
      in writing, DELTA-T’s comments on such documents, work and data. Such review
      shall not be deemed to constitute comments on integrity, compliance with codes,
      correction of, or approval of, other design details.

     

    
      
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    ARTICLE
      4

    SCHEDULE

    

    DELTA-T
      shall perform the Work in accordance with the Schedule C. In case of any delay,
      including without limitation, Owner’s failure to provide deliverables under
      Article 3, Section 3.1, other than a delay caused by DELTA-T, its employees,
      subcontractors or vendors for reasons other than force majeure, the Schedule
      C
      for completion of the Work, or any part of it, shall be automatically extended
      by a number of days equal to the number of days of such delay, plus the number
      of days reasonably required for demobilization and remobilization.

    

    

    ARTICLE
      5

    CHANGES

    

    5.1
      Issuance of Change Orders by Owner:
      Owner
      may, by its written order, require changes in the Work within the general scope
      of the Contract consisting of additions, deletions or other revisions which
      do
      not result in any material change in the Work, provided that the Contract Sum
      and payment schedule are adjusted to reflect the change in DELTA-T’s direct
      costs, up or down, plus a fixed percentage thereof to cover indirect costs
      and a
      reasonable amount of profit (which percentage is consistent with the percentage
      used to determine the initial Contract Sum), and that the time allowed for
      completion, warranty obligations, and any other obligations of DELTA-T affected
      by the changes are adjusted to cover the consequences to DELTA-T resulting
      from
      such change. DELTA-T shall have the right to make a claim for such adjustments
      based on cumulative changes, including changes previously made for which it
      notifies Owner that it was not claiming an adjustment due to the de minimus
      nature of the adjustment required for that single change. The amount to be
      paid
      to DELTA-T, the effect on Schedule C, if any, and any other adjustments to
      the
      Contract will be made by mutual agreement. If the change, in DELTA-T’s judgment,
      would have a detrimental impact on performance of the Plant, or if the amount
      of
      the change order in dispute exceeds one percent (1%) of the Contract Sum, then
      DELTA-T shall have no obligation to proceed with any change until such agreement
      is reached. Furthermore, DELTA-T shall in no case be required to agree to any
      change requiring the handling of PCB’s, asbestos or any other hazardous
      material. In all other cases, if Owner and DELTA-T are unable to reach agreement
      within fifteen (15) business days of the date of DELTA-T’s notice to Owner
      provided in accordance with Section 5.2 below, then DELTA-T shall proceed with
      the change and the matter shall be resolved as provided at Article 18
      below.

    

    5.2
      Notice of Instruction Constituting a Change; Notice of Impact of Change
      Order:
      If
      DELTA-T receives instructions from Owner, which in DELTA-T’s opinion constitute
      a change in the Work, DELTA-T shall so advise Owner within five (5) business
      days of receipt of such instruction. If DELTA-T receives a change order under
      Section 5.1 above or becomes aware of a constructive change order of the type
      described in Section 5.3 below, or gives Owner a notice that an instruction
      of
      Owner constitutes a change, then DELTA-T shall within ten (10) business days
      thereafter submit to Owner a statement of the impact of such change on the
      Contract Sum, payment schedule, warranties, and any other provisions of the
      Contract affected thereby. DELTA-T shall not delay prosecution of the Work
      not
      affected by the change.

    

    5.3
      Constructive Change Orders:
      Any of
      the following shall be deemed constructive change orders a modification of
      applicable law, ordinance or regulation resulting in any increase in taxes
      or
      insurance premiums, or any other cost, payable by DELTA-T or in any government
      regulated costs.

     

    
      
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    ARTICLE
      6

    INSTALLATION
      AND TRAINING

    

    6.1
      Training:
      DELTA-T
      shall have its representative, and any other employees or assistants that it
      deems necessary or appropriate, at the work site to instruct Owner’s personnel
      in the installation of the Equipment. DELTA-T shall provide such instruction
      and
      assistance for the number of days specified at Schedule A. DELTA-T shall provide
      personnel to perform such services for additional days at Owner’s request at
      rates of compensation provided in Schedule B or as agreed to by Owner and
      DELTA-T.

    

    6.2
      Installation; Interface: DELTA-T’s
      responsibility with respect to interface of the Equipment with the equipment
      or
      facility of Owner shall be to conform its Work to the Specifications set forth
      in Schedule A and in the Basic Process Design. Any
      work
      done by, or change made by, Owner or any of its contractors (other than DELTA-T)
      requiring any change or addition to any Work Product to permit proper interface
      of the Work with any other equipment, utility supply, or other aspect of Owner’s
      facility, shall be performed by Owner, or by DELTA-T at Owner’s expense at the
      rates in Schedule B.

    

    

    ARTICLE
      7

    Reserved

    

    

    ARTICLE
      8

    CONTRACT
      SUM AND PAYMENT

    

    8.1
      Contract Sum:
      Owner
      will pay DELTA-T a Contract Sum consisting of (a) a fixed fee of [*]
      to
      cover DELTA-T’s general conditions, overhead and profit for all services
      provided hereunder, which is subject to adjustment as provided below, (b) [*]
      for DELTA-T’s license fee (the “License Fee”), which License Fee has been
      determined in accordance with Schedule G hereto, and (c) the cost of all
      procured equipment at cost plus [*], subject to increase as set forth in Article
      8.1.1.

    

    The
      Contract Sum does not include any sales, use, excise or other tax that DELTA-T
      is required to charge and collect on the fees payable hereunder by Owner to
      DELTA-T with respect to the Work or the Equipment (other than taxes on DELTA-T’s
      income or on any facilities, personnel, equipment or other resources procured
      by
      DELTA-T for use in connection with the Work), and Owner agrees that it shall
      pay
      the same if and when due. Owner shall pay the lesser of 1% per month or the
      highest amount permitted by law on all sums more than three (3) business days
      past due. 

    

    8.1.1
      Adjustments to Contract Sum:
      In
      addition to changes set forth in Article 5, the Contract Sum set forth in 8.1
      may be adjusted as follows:

    
 

     

    ____________________________

    
      [*] Certain
        information on this page has been omitted and filed separately with
        the Securities and Exchange Commission. Confidential treatment has been
        requested with respect to the omitted portions.

       

       

    

    
      
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    a.
      The
      [* ]
      referenced above represents DELTA-T’s general conditions, overhead and profit
      for services described in Article 2 and includes [*]for construction management
      services (under Schedule A, paragraphs 1.4, 1.5, and 1.6), and [*] for training,
      commissioning and start-up services (under Schedule A, paragraphs 1.7, 1.8,
      1.9,
      1.10, and 1.11). Accordingly, in the event Owner elects not to employ DELTA-T’s
      construction management services or DELTA-T’s training, commissioning and
      start-up services, the fee shall be reduced accordingly. 

    

    b.
      The
      [*] procurement fee is based on Delta-T performing procurement services for
      a
      total of 5 new construction ethanol plants (including the Madera plant) owned
      by
      Owner or its affiliates to the same extent DELTA-T handled equipment procurement
      at the Madera facility. In the event that, by September 1, 2009, Delta-T does
      not provide such procurement services for Owner or its affiliates, Delta-T
      shall
      invoice Owner a fee representing the difference between procurement at cost
      plus
      [*] and cost plus [*]. Such invoice shall be immediately due and payable by
      Owner.

    

    8.2
      Payment:
      The
      Contract Sum shall be payable as follows: 

    

    (a) The
      General Conditions/Overhead/Profit shall be paid in the form of:

    

    
      	 	
              1.

            	
              an
                initial payment of [*] of which [*] has been previously paid and
                [*] which
                shall be paid simultaneously with execution of this Contract if work
                has
                already begun on the Project. If work has not begun, the initial
                payment
                shall be due upon issuance of a Notice to proceed by owner to
                Delta-T,

            

    

    

    
      	 	
              2.

            	
              monthly
                installments of ninety-five percent (95%) of the remaining amount
                in
                accordance with the table set forth in Schedule F (the first such
                payment
                being paid on the thirtieth (30th)
                day following the initial payment and the remaining payments being
                paid on
                the earlier of (i) the first day of each month following the date
                of the
                second payment, or (ii) upon Mechanical Completion,
                and

            

    

    

    
      	
            	3.	
              The
                final payment shall be paid upon Mechanical
                Completion.

            

    

    

    
      	 	
              4.

            	
              If
                Delta-T is behind by more than 30 days in any deliverables called
                for by
                Schedule C, then Owner may delay payment under this subparagraph
                8.2(a)
                until such time as Delta-T and Owner mutually agree on a new schedule.
                Both parties shall cooperate in reaching agreement in this regard.
                

            

    

    

    (b) Procurement:
      

    

    
      	 	
              1.

            	
              Delta-T
                shall provide Owner with three (3) business days’ notice of the need for
                procurement funds. Included within such notice shall be a breakdown
                of the
                items to be ordered with the requested funds. Within three (3) business
                days after receiving notice from Delta-T, Owner shall wire transfer
                the
                requested funds to Delta-T. DELTA-T shall hold such funds IN TRUST
                for the
                benefit of Owner until such time as the funds are remitted to a vendor
                or
                returned to Owner.  

            

    

    

    
      	 	
              2.

            	
              The
                cost of the procurement portion of the Work will become due and payable
                as
                the costs for equipment are committed by DELTA-T as
                follows:

            

    

     

     

    
       

      ____________________________

      
        [*] Certain
          information on this page has been omitted and filed separately with
          the Securities and Exchange Commission. Confidential treatment has been
          requested with respect to the omitted portions.

         

      

    

    
      
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              a.

            	
              Upon
                placement of each purchase order, 10% of the total value of each
                purchase
                order, including markup is due and payable via wire transfer or zero
                balance account.

            

    

    

    
      	 	
              b.

            	
              Upon
                receipt of approval drawings, 20% of the total value of each purchase
                order, including markup is due and payable via wire transfer or zero
                balance account.

            

    

    

    
      	 	
              c.

            	
              Upon
                receipt of materials at the vendor’s fabrication shop, 40% of the total
                value of each purchase order, including markup is due and payable
                via wire
                transfer or zero balance account.

            

    

    

    
      	 	
              d.

            	
              Upon
                delivery and acceptance at site, 25% of the total value of each purchase
                order including markup is due and payable via wire transfer or zero
                balance account.

            

    

    

    
      	 	
              e.

            	
              Upon
                Mechanical Completion and the receipt of all vendor data and maintenance
                manuals, 5% of the total value of each purchase order, including
                markup is
                due and payable via wire transfer or zero balance
                account.

            

    

    

    
      	 	
              3.

            	
              Markup
                shall be determined as set forth in Article 8.1.1(b).
                

            

    

    
 

    (c) The
      License Fee shall be due and payable as follows: 

     

    1. 
50%
      upon
      execution of this contract if the Parties have already begun work on the
      Project. If work has not begun, the initial payment shall be due upon issuance
      of a Notice to Proceed by Owner to Delta-T.

     

    2. 
50%
      upon
      Mechanical Completion.

     

    (d) For
      work
      performed by written request, outside of the scope herein defined, the rates
      in
      Schedule B will apply.

    

    8.3
      Invoicing and Invoice Approval:
      Other
      than the initial payment described in Section 8.2(a) above, Owner shall pay
      all
      submitted DELTA-T invoices within the later of thirty (30) calendar days after
      the
      event
      occurrence date and thirty (30) calendar days from date of receipt of the
      subsequent invoices. Owner shall promptly review all DELTA-T invoices and,
      where
      appropriate, supporting documentation, and approve for payment such amounts
      as
      Owner reasonably determines to be properly due under the Contract. If Owner
      disputes any amount invoiced, it shall: (i) give notice to DELTA-T of such
      disputed amount together with a statement of the basis of the dispute, with
      such
      notice to be delivered by the due date for the applicable invoice, and (ii)
      pay
      undisputed amounts on or before the due date. If Owner fails to provide notice
      of a disputed amount within the prescribed period, it shall be deemed to have
      waived its right to withhold such amount. DELTA-T shall provide Owner with
      access to such information or records which are necessary to enable Owner to
      verify the accuracy of any invoice.

     

    
      
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    ARTICLE
      9

    OWNERSHIP
      OF WORK PRODUCT/CONFIDENTIALITY

    

     

    9.1
      License to Use: Owner
      acknowledges that DELTA-T is and shall remain the sole owner of the DELTA-T
      Technology, and of the copyrights in all the drawings, manuals and other
      documents provided by DELTA-T under this Agreement. In consideration of Owner’s
      payment to DELTA-T of the License Fee set forth in Article 8.1, DELTA-T grants
      to Owner, subject to the conditions of this Agreement, a non-exclusive, paid-up,
      non-transferable right to use in perpetuity the DELTA-T Technology, without
      right to grant such rights to others, solely for the purposes of:

    

    a.  
      Use
      at
      the Plant; and

    b.  
      Maintenance
      and optimization or enhancement of the Plant.

    

    Owner
      agrees that it shall not use the Delta-T Technology for any other
      purpose.
      Optimization and enhancement (“Modification”),
      for
      this purpose, shall include de-bottlenecking, but shall not include expanding
      the physical dimensions of the distillation columns or molsieve vessels included
      in the Delta-T Technology, or adding to the original number of distillation
      columns or molsieve vessels specified in such design. Owner
      may
      not disclose any of the Delta-T Technology to (i) any third party that is listed
      in Schedule E, or (ii) to any individual, group or company that is in the
      business of designing alcohol plants or parts thereof and that is not
      listed
      in Schedule E, for the purpose of making any Modification, except
      that Owner
      may
      make such disclosure to any Designer to the extent, and only to the extent,
      necessary to permit such Designer to enable a Modification that was created
      without the disclosure of any Delta-T Technology by or on behalf of Owner,
      to interface with portions of the Plant designed by Delta-T.

    

    

    ARTICLE
      10

    RIGHTS
      OF OWNER AND DELTA-T TO SUSPEND WORK OR TERMINATE

    

    10.1
      Owner’s Right to Terminate For Cause:
      Owner
      may terminate this Contract if: (i) a petition in bankruptcy is filed by or
      against DELTA-T and it is not dismissed within thirty (30) days, or (ii) DELTA-T
      commits a material breach of this Contract and fails to cure within the longer
      of 60 days of its receipt of written notice of such breach or such longer time
      as may be approved in writing by Owner. Upon such termination Owner shall (at
      its option) take possession of the Work and all Equipment for which it has
      paid,
      and upon Owner’s request, DELTA-T shall assign any then outstanding purchase
      orders for Equipment. DELTA-T
      shall cooperate in all respects with Owner in transiting the Work or Owner
      or a
      third party designated by Owner.
      In the
      event of termination under this Section 10.1, DELTA-T will be liable to Owner
      for any reasonable costs incurred by Owner to complete the Work to the extent
      that such costs exceed the unpaid balance of the Contract Sum set forth at
      Section 8 above. 

    

    10.2
      DELTA-T’s Right to Stop Work:
      If Owner
      does not pay DELTA-T any amount due under this Contract within five (5) business
      days after the date such payment is due, then DELTA-T may, upon ten (10) days
      written notice to Owner, stop the Work until it receives payment of the amount
      owing. In such case, Schedule C shall be extended as provided at Article 4
      above.

     

    
      
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    10.3
      DELTA-T’s Right to Terminate:
      DELTA-T
      may terminate the Contract if:

    

    
      	 	
              a.

            	
              issuance
                of any order of a court or other public authority having jurisdiction
                instructing DELTA-T to permanently cease
                Work;

            

    

    
      	 	
              b.

            	
              on
                30 days notice if Owner has not made payment within thirty (30) days
                of
                the date due or a petition in bankruptcy is filed by or against it
                and is
                not dismissed within sixty (60) calendar days;
                or

            

    

    
      	 	
              c.

            	
              Owner
                commits a material breach of this Contract and fails to cure within
                30
                days of its receipt of written notice of such breach or such longer
                time
                as may be approved in writing by
                DELTA-T.

            

    

    

    Upon
      such
      termination, Owner shall pay DELTA-T the Contract Sum times the percentage
      or
      Work successfully completed as of the date of termination plus 15% of the
      remainder of the Contract Sum (the “Termination Fee”); provided, that the
      Termination Fee shall not be payable if Owner terminates due to DELTA-T 's
      breach. If Owner has already paid a greater percentage of the Contract Sum
      than
      the amount of Work completed, any amounts remaining due will be adjusted such
      that Owner pays no more than the Termination Fee. 

    

    10.4
      Rights On Termination. Owner’s
      right to an irrevocable and perpetual license to DELTA-T Technology as provided
      for in Article 9 shall be unaffected by the expiration or termination of this
      Agreement, irrespective of the reason; provided that Owner has paid DELTA-T
      in
      full its  License
      Fee as set forth in Article 8. 

    

    10.5
      Owner’s Right to Terminate on Plant Cancellation:
      Owner
      may terminate this Contract at any time if Owner ceases development of the
      Plant
      for any reason. In the event of such a termination, Owner shall be entitled
      to
      apply all sums theretofor paid under this Agreement to a subsequent agreement
      of
      like tenor providing for engineering, procurement and construction services
      in
      connection with a new 50,000,000 GPY ethanol plant. To the extent the design
      being implemented under the subsequent agreement differs materially from the
      design for the Plant under this Agreement thus requiring material changes in
      the
      Work, then such changes shall be accounted for as Change Orders in accordance
      with Article 5, or in such other manner as the Parties shall mutually
      agree.

    

    

    ARTICLE
      11

    SAFETY

    

    DELTA-T
      will cause all of its personnel to comply with all local, state and federal
      regulations and with all of Owner's safety and security regulations, procedures
      or standards, provided, however, that in the event that any of Owner’s safety
      and security regulations, procedures or standards increases the cost of
      DELTA-T’s performance and was not made known to it by Owner prior to DELTA-T’s
      execution of this Contract, DELTA-T shall, at its request made within thirty
      (30) days of being advised of such regulation, procedure or standard, be
      reimbursed for its costs of complying with the same, provided DELTA-T identified
      for Owner in writing the incremental costs within ten (10) days after learning
      of any such Owner regulation, procedure or standard and identifies therein
      the
      incremental cost, and provided Owner did not subsequently relieve DELTA-T of
      the
      obligation to comply with any such Owner regulation, procedure or standard.
      DELTA-T shall have no obligation to proceed with any of its obligations to
      be
      performed at the Work site in the event that such performance would, for reasons
      attributable to Owner, be unsafe,
      as
      determined by DELTA-T in the exercise of its reasonable judgment.

     

    
      
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    ARTICLE
      12

    WARRANTY

    

    12.1
      Equipment: For
      the
      Equipment listed in Schedule A that it provides procurement services for,
      DELTA-T will transfer all manufacturers’ warranties to Owner. 

     

    12.2
      Reserved.

     

    12.3
      Service Warranty:
      DELTA-T
warrants
      that it will perform the Work in accordance with the standards of care and
      diligence normally practiced by recognized firms in the ethanol industry
      performing services of a similar nature in existence at the time of performance
      of the Work. If, during the 12 month period following Mechanical Completion,
      it
      is shown there is an error in the Work caused solely by DELTA-T’s (or its
      agents, subcontractors or vendors) failure to meet such standards and Owner
      has
      notified DELTA-T
      in
      writing of any such error as provided below, DELTA-T
      shall
      re-perform, at no additional cost to Owner, such services within the original
      scope of Work as may be necessary to remedy such error.
      

     

    12.4
      Remedies; Limitation on Warranty:
      THE
      WARRANTIES SET FORTH IN THIS SECTION ARE THE ONLY WARRANTIES MADE BY DELTA-T,
      INCLUDING WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY OF FITNESS FOR
      A
      PARTICULAR PURPOSE. THE REMEDIES SET FORTH IN THIS ARTICLE 12 SHALL BE OWNER’S
      EXCLUSIVE REMEDIES FOR BREACH OF WARRANTY. The warranties set forth in this
      Article 12 do not cover any defect or deterioration which results from failure
      of Owner to provide any feedstock, utilities, or other supplies, services or
      conditions specified by DELTA-T, which are not within the scope of the Work,
      force majeure, operation or maintenance not in accordance with standards of
      care
      prevalent in the industry, foreign substance or impurity introduced into the
      molecular sieve, or any other matter not within DELTA-T’s control.

     

    12.5
      Notice of Warranty Claim: Owner
      shall notify DELTA-T in writing of any defect covered by this warranty within
      ninety (90) days after discovering such defect. If Owner notifies DELTA-T after
      such period, any damages to which Owner is entitled will be reduced by any
      damages which DELTA-T could have avoided had Owner notified DELTA-T ninety
      (90)
      days after discovering the defect.

    

    

    ARTICLE
      13

    LIMITATION
      OF LIABILITY

    

    In
      no
      case shall DELTA-T have any responsibility for the acts or omission of any
      contractor, subcontractor, vendor or material suppliers of Owner, or any
      employee, agent or contractor of any of them, other than its own subcontractors
      or vendors, and its Affiliates to the extent they provide services hereunder,
      including DELTA-T Project Services, LLC. IN NO EVENT SHALL EITHER PARTY HAVE
      ANY
      LIABILITY TO THE OTHER FOR ANY INCIDENTAL, SPECIAL, PUNITIVE OR CONSEQUENTIAL
      LOSS OR DAMAGE, INCLUDING WITHOUT LIMITATION, DAMAGE RESULTING FROM CONSTRUCTION
      CHANGE ORDERS AND/OR CLAIMS, LOSS OF USE, LOSS OF REVENUE, LOSS OF PROFIT,
      LOSS
      OF CONTRACTS, LOSS OF PRODUCT OR PRODUCTION, LOSS OF BUSINESS OPPORTUNITY
      SUFFERED OR INCURRED BY ANOTHER PARTY OR ANY OF THEIR AFFILIATES OR
      CO-VENTURERS, HOWSOEVER ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT,
      OR
      FROM THE TERMINATION OR BREACH HEREOF OR ANY WARRANTY MADE HEREUNDER. IN NO
      CASE
      SHALL EITHER PARTY’S LIABILITY TO THE OTHER UNDER THIS CONTRACT, WHETHER UNDER
      ARTICLE 12 OR OTHERWISE, EXCEED THE FEES PAYABLE BY OWNER
      HEREUNDER.

     

    
      
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    THE
      EXCLUSION OF DAMAGES AND THE LIABILITY LIMITATION IN THE PRECEDING PARAGRAPH
      SHALL NOT APPLY TO BREACHES OF ARTICLES 9 OR 17. 

    

    In
      no
      case shall DELTA-T’s cumulative liability to Owner under
      this Contract, whether under Article 12 or otherwise, exceed Two Million Dollars
      ($2,000,000.00). Notwithstanding anything herein to the contrary, to the extent
      DELTA-T is holding funds that have been advanced by Owner in connection with
      the
      procurement of equipment, then DELTA-T’s liability for mishandling of Owner’s
      funds shall be limited to the aggregate dollar amount of funds held at any
      time
      by DELTA-T. 

    

    

    ARTICLE
      14

    TRANSFER
      OF TITLE AND RISK OF LOSS

    

    14.1 Shipment:
      All
      Equipment will be shipped to the Owner at the Plant FOB the Plant and title
      and
      risk of loss shall pass to Owner at the Plant. 

    

    14.2 Inspection;
      Acceptance:
      Owner
      will have 15 days to inspect Equipment. If Owner rejects any Equipment for
      failure to comply with its specifications or any provision of this Agreement,
      Owner will so notify DELTA-T and will return such Equipment as instructed by
      DELTA-T at DELTA-T’s cost. 

    

    

    ARTICLE
      15

    INSURANCE

    

    DELTA-T
      shall maintain the following types of insurance coverage as a minimum until
      the
      earlier of (a) the date of Final Acceptance, or (b) termination of the
      Contract.

    

    15.1
      Accident to Workmen:
      Insurance against damages or compensation payable to any workman or other person
      in the employment of DELTA-T, other than death or injury resulting from any
      act
      or default of Owner, its agents or servants. The coverage limits are those
      as
      required by law.

    

    15.2
      Comprehensive General or Commercial Liability:
      Insurance against loss or damage to the Equipment prior to delivery to the
      site,
      other than loss or damage resulting from any act or default of Owner, its agents
      or servants. Coverage limits are one million dollars ($1,000,000.00) per
      occurrence and three million dollars ($3,000,000.00) cumulative. 

     

    15.3
      Automobile Liability:
      Insurance covering all owned, non-owned and hired vehicles against losses for
      bodily injury and property damage. Coverage limits are five hundred thousand
      dollars ($500,000.00) per occurrence and one million dollars ($1,000,000.00)
      cumulative.

     

    15.4
      Professional Liability:
      Insurance covering liability arising out of DELTA-T’s negligent acts, errors or
      omissions in the rendering of its professional services under this Contract
      up
      to one million dollars ($1,000,000.00).

     

    
      
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    15.5
      Builder’s Risk; Waiver of Subrogation: Owner
      shall purchase and maintain property insurance (including boiler and machinery
      coverage) and all risk builder’s risk insurance upon the Plant in an amount no
      less than the value of the Plant. The insurance shall include the interests
      of
      Owner, DELTA-T and all subcontractors at any tier and shall include coverage
      for
      direct physical damage resulting from all perils, including (without limitation)
      fire, flood and earthquake coverage to (a) the installed Work, (b) materials
      and
      equipment which are stored at the site but have not yet been included in the
      Plant, (c) all materials and equipment in transit or stored off site for which
      payment has been made or is due from Owner, and (d) for business interruption.
      Owner’s sole remedy in case of any loss or damage of the type covered by the
      insurance required by this Section 15.5 shall be recovered under that policy.
      Owner and DELTA-T intend that all builder’s risk policies purchased, or required
      to be purchased, in accordance with this Section 15.5 will protect Owner,
      DELTA-T and all subcontractors and sub-subcontractors, and will provide primary
      coverage for all losses and damages caused by the perils or causes of loss
      covered thereby. Owner and DELTA-T waive all rights against each other and
      their
      respective subcontractors, officers, directors, agents and employees of the
      other arising out of or resulting from any of the perils or causes of loss
      covered by such policies and any other property insurance applicable to the
      Plant during the period prior to Final Acceptance and payment of all amounts
      due
      to DELTA-T under this Contract. None of the above waivers shall extend to the
      rights that any Party making such waiver may have to the proceeds of insurance
      held by Owner as trustee or otherwise payable under any policy so issued. In
      addition, Owner waives all rights against DELTA-T, its subcontractors at any
      tier and the officers, directors, employees and agents of any of them for
      business interruption and any other consequential damages caused by, arising
      out
      of or resulting from any such insured perils or causes of loss or any other
      peril or cause of loss whether or not insured. All policies required under
      the
      Contract shall be endorsed to include such waivers of subrogation, or
      confirmation of such waivers shall appear on the certificates of insurance
      required to be delivered under Section 15.7 below. Owner and DELTA-T shall
      require similar waivers from each of their contractors and subcontractors who
      do
      work on the Work, each in favor of the other parties enumerated in this Section.
      

     

    15.7
      Certificates of Insurance: Before
      commencing the Work, DELTA-T shall, at Owner’s request, furnish Owner with
      certificates evidencing the coverage required under this Article 15 from the
      insurance company or companies carrying the aforesaid coverage. These
      certificates will provide that the policies may not be amended or terminated
      unless at least thirty (30) days prior written notice is given to
      Owner.

    

    

    ARTICLE
      16

    INDEMNITY

     

    16.1
      Indemnity by DELTA-T for Bodily Injury and Property Damage: DELTA-T
      shall indemnify and hold harmless Owner and its agents and employees from and
      against all third party claims, damages, losses and expenses, including, but
      not
      limited to attorney's
      fees,
      arising out
      of or
      resulting from DELTA-T's performance of the Work, provided that, any such claim,
      damage, loss or expense: (1) is attributable to bodily injury, sickness, disease
      or death, or to injury to or destruction of tangible property, including the
      loss of use resulting therefrom, and (2) is caused in whole or in part by any
      negligent act or omission of DELTA-T, its subcontractors, or anyone for whose
      acts DELTA-T is liable. In the event that any such damage, loss or expense
      was
      caused in part by Owner or by any other person or entity, however, then DELTA-T
      shall be obliged to pay only the portion of the damage, loss or expense,
      including reasonable attorney’s fees as is attributable to its relative share of
      the negligence or omission which caused such damage, loss or expense. In no
      case
      shall DELTA-T be liable under this Section 16.1 for an amount, including costs
      and attorney’s fees, in excess of the amount set forth at Article 13
      above.

     

    
      
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    16.2
      Indemnity by DELTA-T for Intellectual Property: DELTA-T
      hereby warrants that the Process, if used in a manner consistent with the Basic
      Process Design provided by DELTA-T and used in accordance with DELTA-T’s
      operating instructions, does not infringe any patent, copyright or trade secret.
      DELTA-T further agrees upon receipt from Owner of notification of a lawsuit
      or
      claim against Owner for such an infringement, to promptly defend such claim
      with
      competent counsel of its own choosing. DELTA-T further agrees, to indemnify
      Owner against any royalties, damages, orders, and court costs, awarded by a
      final, non-appealable judgment resulting from a finding of an infringement
      covered by this indemnity, or the settlement of a claim indemnifiable under
      this
      Section 16.2. This indemnification shall not apply to any design, process or
      product of a particular manufacturer or manufacturers, which is specified by
      Owner. This indemnification is valid only if (a) Owner gives notice of any
      claim
      or lawsuit for which it claims indemnity within time sufficient for Owner to
      contest such claim, (b) Owner cooperates fully and promptly with DELTA-T in
      the
      defense thereof at Owner’s expense for all items related to such defense not
      specifically imposed on DELTA-T above, including without limitation, any costs
      for time of witnesses who are employees of Owner, costs related to travel,
      production of documents, fees for any counsel it elects to assist it in addition
      to counsel appointed by DELTA-T for defense of the claim, and (c) DELTA-T has
      full authority in defense of such lawsuit or claim and to settle such claim,
      provided
      that,
      it can
      and does pay the cost of such settlement, and provided that it does not admit
      guilt, culpability or liability on the part of Owner without Owner’s prior
      written consent. In no case shall DELTA-T’s liability under this indemnity,
      including all costs and fees born by it, exceed the amount set forth at Article
      13 above. 

    

    

    ARTICLE
      17

    CONFIDENTIALITY

     

    17.1
      Confidential Information: In
      connection with this Agreement, each party may receive or otherwise have access
      to Confidential Information of the other party. The Parties shall not disclose
      any Confidential Information of the other to any third party, nor shall they
      use
      any Confidential Information of the other for any purpose other than fulfilling
      their respective rights and obligations under this Contract, without the express
      written permission of the other. Each party agrees to take all reasonable
      precautions to prevent Confidential Information of the other party from being
      disclosed or disposed to any third party directly or indirectly without the
      prior written consent of the disclosing party. Neither party shall disclose
      any
      Confidential Information of the other pursuant to court order or other legal
      requirement unless: (i) it is advised by its legal counsel that it is legally
      required to do so; (ii) it has promptly given the disclosing Party notice of
      such order or process so that Party can obtain a secrecy order or other
      appropriate legal protection; and, (iii) it uses all other reasonable means
      to
      ensure the confidential treatment of such information. Each party’s obligation
      confidentiality shall extend beyond the term of this Agreement and shall
      continue until such time as such Confidential Information meets one of the
      exceptions in the definition of Confidential Information. Unless otherwise
      directed by the disclosing party, the receiving party agrees that it will return
      to the disclosing party upon completion of services under this Agreement all
      Confidential Information in tangible form, including for example, drawings,
      specifications and other documents. Each party may retain a single archive
      copy
      for reference purposes. 

     

    
      
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    ARTICLE
      18

    DISPUTE
      RESOLUTION

    

    18.1
      Executive Conference or Arbitration: In
      the
      event of any controversy or claim arising out of or related to this Contract
      (excluding any claims related to ownership and/or use rights of intellectual
      property, including any claim that either party is infringing upon, or
      mis-using, any intellectual property or proprietary information of the other
      party), or the interpretation, termination or breach hereof, the Party involved
      shall, upon the written request of the other, attempt to resolve the matter
      by
      agreement of the representatives of the Parties at least one management level
      above the individuals who have had direct responsibility for performance of
      the
      Contract, or the highest level of management of any Party whose highest level
      of
      management has had direct responsibility for such performance. Such
      representatives shall meet in person or by telephone or teleconference at least
      once, and shall attempt to resolve any matter raised by either of them by the
      written notice requesting such resolution for a period of at least forty five
      (45) days. If the Parties are unable to resolve the dispute by agreement of
      such
      representatives within such 45-day period, then at the written request of any
      Party they shall submit the matter to binding arbitration under the then current
      Construction Industry rules of American Arbitration Association.

     

    18.2
      Arbitration:
      The
      place of arbitration shall be agreed in writing between the parties, or in
      the
      absence of agreement, shall be Los Angeles, California. Any Party who files
      a
      notice of demand for arbitration must assert in the demand all claims then
      known
      to that Party against the other. Judgment upon any award rendered by in
      arbitration under this Agreement may be entered upon it in accordance with
      applicable law in any court having jurisdiction thereof.

    

    

    ARTICLE
      19

    FORCE
      MAJEURE

     

    No
      delay
      in, or failure of, performance by either party hereto under this Contract,
      other
      than the failure to pay amounts due, will constitute default hereunder or give
      rise to any claim for damages if and to the extent caused by an occurrence
      beyond the control of the party affected, including but not limited to: acts
      of
      governmental authority, acts of God, strikes or other concerted acts of workmen,
      fire, flood, explosions, riots, war, rebellion or sabotage, provided, however,
      that if either party hereto fails to perform due to force majeure and such
      failure continues for more than one hundred twenty (120) days, the other may
      terminate this Contract. In case of termination by Owner under this Article
      19,
      Owner shall pay DELTA-T for all Work completed and Equipment procured prior
      to
      the date of termination and billed in accordance with the Contract, including
      any retention money. In case of termination by DELTA-T under this Article 19,
      Owner shall pay DELTA-T for all Work completed prior to termination, including
      any retention money.

    

    

    ARTICLE
      20

    GENERAL
      PROVISIONS

     

    20.1
      Assignment: Neither
      DELTA-T nor Owner shall assign or transfer its duties or obligations hereunder
      without the prior written consent of the other (provided,
      that Owner may assign this Contract to an affiliate, to a successor in interest,
      whether by merger, acquisition of asset or stock or otherwise, and to financing
      sources and their designees, without the consent of DELTA-T; in which case
      Owner
      shall provide written notice to DELTA-T of such assignment).
      This
      Contract shall be binding upon and shall inure to the benefit of the parties
      hereto and the successors and permitted assigns of Owner and
      DELTA-T. 

     

    
      
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    20.2
      Entire Contract; Waiver; Amendment:
      These
      General Conditions and the attached Schedules constitute the full and complete
      Contract between the Parties hereto with respect to the subject matter hereof.
      There are no statements, agreements, understandings, representations or trade
      customs of any kind, express or implied, concerning the subject matter which
      are
      not merged herein or superseded hereby. A waiver of any of the terms of this
      Contract shall not bind either Party unless signed by one of its duly authorized
      representatives. Waiver by either Party of any default by the other party
      hereunder shall not be deemed a waiver by such Party of any default by the
      other, which may occur thereafter. This Contract may only be modified or amended
      by an appropriate change order as noted in Article 5 above or by an agreement
      in
      writing executed by both Parties hereto.

     

    20.3
      Governing Law: The
      validity, performance, construction and effect of this Contract shall be
      governed by the laws of the State of California.

     

    20.4
      Notices:
      All
      notices provided for herein will be considered as properly given if in writing
      and delivered personally or sent properly addressed, postage
      pre-paid:

    
      
        	 	
                 

                If
                  to DELTA-T, to:

              	
                 

                323
                  Alexander Lee Parkway

              
	 	 	
                Williamsburg,
                  VA 23185

              
	 	 	
                Attn:
                  Robert L. Swain

              
	 	 	 
	 	
                If
                  to Owner, to:

              	
                5711
                  N. West Avenue 

              
	 	 	
                Fresno,
                  California 93711

              
	 	 	
                Attn:
                  Terry Kulesa

              
	 	 	 
	 	
                With
                  a copy to:

              	
                General
                  Counsel

              

      

    

     

    20.5
      Survival: Owner’s
      obligations under the provisions of Article 9, 13, 16, 17, and 18 shall survive
      termination or expiration of this Contract.

     

    
      
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    WITNESS
      WHEREOF,
      the
      parties hereto have executed this CONTRACT on the 6th
      day of
      September, 2006.

    

    

    
      	 DELTA-T
              CORPORATION	 	 PACIFIC
              ETHANOL, INC. 
	 	 	 	 	 
	
              By:

            	
              /S/
                ROBERT L. SWAIN

            	 	
              By:

            	
              /S/
                NEIL M. KOEHLER

            
	
               

              Name:

            	
              Robert
                L. Swain

            	 	
               

              Name:

            	

              Neil
                M. Koehler 

            
	
               

              Printed
                Name:

            	

              Robert
                L. Swain 

            	 	
               

              Printed
                Name:

            	
              Neil
                M. Koehler

            
	
              Title:

            	
              Vice
                President

            	 	
              Title:

            	
              CEO

            
	
               

              Date:

            	
              9/6/06

            	 	
               

              Date:

            	
              9/6/06

            

    

     

    
 

    
      
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    SCHEDULE
      A

    

    ENGINEERING
      & RELATED TECHNICAL SERVICES

    

    1.0
      Engineering/Deliverables Summary

     

    NOTE:

    
      	 	
              1)

            	
              Scope
                items and deliverables below designated by “ * ” will be reviewed and
                signed off by OWNER per Section 3.2 of this Agreement before final
                approval is given by OWNER to be implemented into the Project. These
                items
                include project issues and decisions that rely heavily on OWNER’S
                discretion for financial, operating or strategic reasons. For example,
                the
                total amount of inventory and product storage capacity would need
                OWNER’S
                input as the decision has significant ramifications from a capital
                cost
                versus operating flexibility
                standpoint.

            

    

     

    
      	 	
              2)

            	
              Per
                Section 3.3 of this Agreement, scope items and deliverables below
                designated by “ * ” require that DELTA-T, through DTPS, review the work
                performed by OWNER’S general contractor(s), subcontractors or other agents
                to make sure it is in compliance with Process
                requirements.

            

    

     

    
      	 	
              3)

            	
              The
                items designated “(C)” have been completed by DELTA-T, through DTPS, prior
                to the date of execution of this
                Agreement.

            

    

     

    
      	 	
              4)

            	
              The
                items designated “(Basic Process Design”) are all the design and
                engineering components provided by DELTA-T which are required to
                complete
                detailed engineering of the plant. A milestone will be defined in
                the
                Schedule setting forth a special “Basic Process Design review” for the
                purpose of the Parties committing to all issues required to begin
                the
                detailed design of the Project. Once the Basic Process Design basis
                has
                been formally approved by both Parties and the data submitted to
                detailed
                engineering, any change requested by OWNER after that time will be
                handled
                as a change order with a reasonable extension of time and at a mutually
                agreed price to perform the change.

            

    

    
       

      
        	 	
                5)

              	
                For
                  purposes of this Schedule A, “OWNER” shall include OWNER and all of
                  OWNER’s vendors and
                  subcontractors.

              

      

    

     

     

    
      
        Plant
          #4 EPT

      

      
        -18-

        
          

        

      

      
        
        

      

    

    
      

        
          	 	
                   

                   

                  Task/Deliverable
                    Description

                	
                  Responsibility

                  D
                    - Delta-T (DTPS)

                  O
                    - OWNER

                	
                   

                  Basic
                    Process Design

                   

                
	 	
                  Detailed
                    Cost Budget, Plot Plan, Typical Project Schedule, Block Flow

                  Diagrams,
                    Building Information and Vendor Quotes from the existing 

                  facility
                    (C).

                   

                	
                   

                   

                  D

                   

                	
                   

                   

                  NO

                   

                
	 	
                  Engineering
                    SCHEDULE*

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Master
                    Project SCHEDULE **

                   

                	
                  O

                   

                	
                  NO

                   

                
	 	
                  Engineering
                    Document List*

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  System
                    Design Specifications*

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Process
                    Description

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Facility
                    Process Flow Diagram

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Facility
                    Mass and Energy Balances

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Process
                    Areas Flow Diagrams

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Process
                    Areas Mass and Energy Balances

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Production
                    & Utility Consumption*

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Piping
                    & Instrument Diagrams

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Major
                    Equipment List

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Major
                    Equipment Data Sheets

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Motor
                    List

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Instrument
                    List

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Valve
                    List

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Pipeline
                    List

                   

                	
                  D

                   

                	
                  YES

                   

                

        

         

        
          
            
              Plant
                #4 EPT

            

            
              -19-

              
                

              

            

            
              
              

            

          

           

        

        
          	 	
                  Insulation
                    & Heat Trace List

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Instrument
                    Data Sheets

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Major
                    Equipment Detailed Design 

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  PLANT
                    Process Equipment Procurement Technical Specifications

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Major
                    Equipment Bid Drawings

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Major
                    Equipment Bid Packages 

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Non-PLANT
                    PROJECT Equipment Procurement Technical Specification

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Electrical
                    Single Line Diagram**

                   

                	
                  D

                   

                	
                  NO

                   

                

        

        
          	 	
                  Electrical
                    Arrangement Dwgs.**

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Electrical
                    Panel Design Drawings**

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Cable
                    and Conduit SCHEDULE 

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Electrical
                    Interconnection Data

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Electrical
                    Schematic Diagrams**

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Control
                    Valve Data Sheets

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Manual
                    Valve Specifications

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Instrumentation
                    Installation Details

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Control
                    System Specification

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Control
                    Narrative

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Control
                    System Programming

                   

                	
                  D

                   

                	
                  NO

                   

                

        

        
           

          
            
              Plant
                #4 EPT

            

            
              -20-

              
                

              

            

            
              
              

            

          

           

        

        
          	 	
                  PLANT
                    Basic AutoCAD 3-D Equipment Arrangement & Piping Model

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  PLANT
                    Equipment Plan & Section Arrangement Drawings

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  PLANT
                    Basic Piping Layouts & Arrangement

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Instrumentation
                    Location Information

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Piping
                    Specifications

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Detailed
                    Piping Design & Arrangement

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Piping
                    Support Design

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Piping
                    Isometrics (IFB)

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Structural
                    Steel Arrangements**

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Structural
                    Steel Design

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Structural
                    Steel Fabrication & Installation Technical Specifications

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Foundation
                    Design

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Equipment
                    Installation Technical Specification

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Instrument
                    Installation Technical Specifications

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Insulation
                    Installation Technical Specification

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Piping
                    Installation Technical Specification 

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Site
                    Geotechnical Data

                   

                	
                  O

                   

                	
                  NO

                   

                
	 	
                  Building
                    Design**

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Rail
                    and Facility Design**

                   

                	
                  O

                   

                	
                  NO

                   

                
	 	
                  Prepare
                    Environmental Permit Applications

                   

                	
                  O

                   

                	
                  NO

                   

                
	 	
                  Process
                    Safety Management Review (PSM)**

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Verify
                    Compliance with Construction Codes

                   

                	
                  D

                   

                	
                  NO

                   

                

        

         

        
          
            Plant
              #4 EPT

          

          
            -21-

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  Design
                    Fire Suppression System

                   

                	
                  O

                   

                	
                  NO

                   

                
	 	
                  Supply
                    Process Needs Associated with Non Process Area Systems

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Review
                    of Detailed Engineering for Non-PLANT Areas

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Construction
                    Observation (with specific CLIENT approval of personnel)

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Operations
                    Manual

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Operator
                    Training*

                   

                	
                  O

                   

                	
                  NO

                   

                
	 	
                  STARTUP
                    & Commissioning Assistance*

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Ongoing
                    Technical Service

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Bid
                    Evaluation & Equipment/Vendor Recommendation*

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Procurement
                    Services for Equipment listed in Section 1.13 below*

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Procurement
                    of construction materials, construction services, and equipment
                    other than
                    that listed in Section 1.13**

                   

                	
                  D

                   

                	
                  NO

                   

                

        

         

        The
          following provides a text description of key DELTA-T (DTPS) deliverables
          for the
          packages and services shown in the preceding list of SCHEDULE A, Section
          1.0.

      

    

    

    1.1
      Non-Process Area System Specifications

    

    Performance
      specifications will be provided for non-PROCESS areas which interconnect to
      the
      Process, and which may impact the overall operation of the PLANT. The
      performance specification will be included in the System Design
      Specification.

     

    
      
        Plant
          #4 EPT

      

      
        -22-

        
          

        

      

      
        
        

      

    

    Specifications
      will be provided for the following non-Process areas:

    
      	
            	·	
              Grain
                handling and storage

            

    

    

    1.2
      Detail Engineering

    

    DELTA-T
      will provide the following detail engineering services for the
      PLANT:

    

    
      	 	
              ·

            	
              Detailed
                piping design including layout, specifications and isometric
                drawings

            

    

    
      	 	
              ·

            	
              Instrumentation
                and electrical installation
                specifications

            

    

    
      	 	
              ·

            	
              Specifications
                for vessel detail design and installation, including
                internals

            

    

    
      	 	
              ·

            	
              3D
                model reviews of piping, electrical and equipment
                layout

            

    

    
      	 	
              ·

            	
              Provide
                electrical, structural, and process control design to support the
                process.

            

    

    
      	 	
              ·

            	
              Provide
                bid packages for all major construction activities within DTC’s
                scope.

            

    

    

    1.3
      Procurement Services for Equipment

    

    DELTA-T
      will provide procurement services for specific Equipment and Equipment packages
      within the PLANT as listed in Section 1.13 of this Schedule A. Procurement
      will
      include:

    

    
      	 	
              ·

            	
              Prepare
                bid package supporting data and documentation, and prepare and issue
                bid
                packages to vendors

            

    

    
      	 	
              ·

            	
              Evaluate
                bids and vendor selections, subject to Owner’s
                approval.

            

    

    
      	 	
              ·

            	
              Issue
                Purchase orders.

            

    

    
      	 	
              ·

            	
              Track,
                expedite and coordinate engineering drawings delivery as well as
                equipment
                deliveries to site

            

      	 	
              · 

            	
              Review
                and approve payment for all invoices for Equipment and
                delivery. 

            

    

    

    1.4
      Review of Non-PROCESS Areas of the PLANT

    

    Review
      and provide comments on all Non-PROCESS areas in the Plant designed by others,
      including, but not limited to the following:

    

    
      	 	
              ·

            	
              Corn
                receiving and storage systems

            

    

    

    This
      review service will include:

    

    
      	 	
              ·

            	
              Review
                of design for conformance with PROCESS
                requirements

            

    

    
      	 	
              ·

            	
              Assistance
                with preparation of vendor lists and selection of
                vendors

            

    

    
      	 	
              ·

            	
              Assistance
                with establishing scope for RFQ

            

    

    
      	 	
              ·

            	
              Review
                final design to ensure that it is compatible with the PROCESS and
                the
                PLANT

            

    

    
      
        Plant
          #4 EPT

      

      
        -23-

        
          

        

      

      
        
        

      

    

    1.5
      Review of Construction for Conformance with PROCESS

    

    
      	 	
              
                ·

              

            	
              During
                the construction phase, DELTA-T will provide a full time on-site
                representative to interface with the construction contract and serve
                as
                the Delta-T (DTPC) representative.

            

    

    

    1.6
      Safety, Operability and Maintainability Review

    

    DELTA-T
      will perform the BASIC PROCESS DESIGN to meet the codes defined in Section
      2 of
      this Schedule A. DELTA-T will also provide skilled personnel to participate
      in
      Process Safety Management (PSM) activities conducted by OWNER for:

    

    
      	 	
              
                ·

              

            	
              Assist
                OWNER with review of the entire PLANT for safety, operability, and
                maintainability issues 

            

    

    
      	 	
              
                ·

              

            	
              Assist
                OWNER with any required formal PSM review of selected areas of the
                PLANT
                

            

    

    

    Any
      review of the detail design requested by OWNER shall be handled under Change
      Orders.

    

    1.7
      Operations Manuals

    

    Five
      (5) sets of Operations manuals will be provided for PROCESS areas, which will
      include:

    

    
      	 	
              
                ·

              

            	
              Description
                of the entire PLANT PROCESS and each system
                operation

            

    

    
      	 	
              
                ·

              

            	
              Detailed
                operating description of each process
                unit

            

    

    
      	 	
              
                ·

              

            	
              Initial
                start-up procedures

            

    

    
      	 	
              
                ·

              

            	
              Normal
                operation

            

    

    
      	 	
              
                ·

              

            	
              Startup
                & shutdown under normal operating
                conditions

            

    

    
      	 	
              
                ·

              

            	
              Startup
                & shutdown under emergency
                conditions

            

    

    
      	 	
              
                ·

              

            	
              Cleaning
                & preventive maintenance
                guidelines

            

    

    
      	 	
              
                ·

              

            	
              Safety
                & Health guidelines

            

    

    
      	 	
              
                ·

              

            	
              Basic
                troubleshooting guides

            

    

    

    1.8
      Maintenance Manuals

    

    As
      a part
      of its purchasing services, DELTA-T will assemble maintenance manuals for all
      Equipment it procures under this Agreement. These manuals will normally consist
      of certified vendor drawings, operations manuals, maintenance manuals,
      lubrication requirements (amount and type), and spare parts list (start-up,
      one
      and three year recommended spares), with special instructions included where
      the
      vendor information is insufficient.

     

    
      
        Plant
          #4 EPT

      

      
        -24-

        
          

        

      

      
        
        

      

    

    1.9
      Operator Training

    

    At
      Owner’s election, DELTA-T will provide comprehensive on-site training for
      operators, technicians, supervisors, and managers. Training activities will
      cover the following:

    

    
      	 	
              
                ·

              

            	
              Operations
                manual, charts, diagrams

            

    

    
      	 	
              
                ·

              

            	
              Classroom
                instruction in the theory and background for system design &
                operation

            

    

    
      	 	
              
                ·

              

            	
              Instruction
                in the PLANT consisting of "hands-on"
                training

            

    

    
      	 	
              
                ·

              

            	
              Startup

            

    

    
      	 	
              
                ·

              

            	
              Normal
                operation & control

            

    

    
      	 	
              
                ·

              

            	
              Detection
                of and reaction to abnormal operating
                conditions

            

    

    
      	 	
              
                ·

              

            	
              Cleaning
                & preventive maintenance
                guidelines

            

    

    
      	 	
              
                ·

              

            	
              Planned
                shutdown & startup

            

    

    
      	 	
              
                ·

              

            	
              Emergency
                shutdown & startup

            

    

    
      	 	
              
                ·

              

            	
              Basic
                troubleshooting

            

    

    
      	 	
              
                ·

              

            	
              Safety
                & Health guidelines

            

    

    

    All
      training shall be provided in fourteen (14) calendar days by two DELTA-T people.
      The exact schedule for such training will be coordinated with OWNER. DELTA-T
      recommends that training be done in one week of “classroom” oriented training
      during the later stages of construction (after key positions have been filled
      in
      the operations staff) and one week of combination of “hands-on” and classroom
      training during startup activities.

    

    1.10 STARTUP
      & Commissioning Assistance

     

    DELTA-T
      will provide up to 4 people for a duration of up to thirty (30) calendar days
      to
      assist/consult with Owner’s operating staff during STARTUP, commissioning, and
      Acceptance Testing of the Plant. The scope of STARTUP and commissioning services
      to be provided by DELTA-T includes:

    

    
      	 	
              
                ·

              

            	
              Provide
                skilled and experienced engineering/operations personnel on site
                with 24
                hour per day coverage during critical commissioning activities, startup
                and conductance of Acceptance Testing.

            

    

    
      	 	
              
                ·

              

            	
              Provide
                consultation and advice to troubleshoot and problem-solve startup
                and
                operating problems for all areas of the
                PLANT

            

    

    
      	 	
              
                ·

              

            	
              Continuance
                of “hands-on” operator training while conducting startup and commissioning
                activities

            

    

     

     

    
      
        Plant
          #4 EPT

      

      
        -25-

        
          

        

      

      
        
        

      

    

    1.11
      Ongoing Technical Service

    

    DELTA-T
      will provide ongoing telephone response at no charge to OWNER’s questions,
      concerns or problems with regard to the operation and maintenance of the plant
      for a period of one year following STARTUP.

    1.12
      General Conditions

    

    DELTA-T
      (DTPS) will provide all engineering deliverables such as electronic models,
      drawings, calculations, and other project documentation to OWNER in electronic
      format. All engineering deliverables generated by the performance of the work
      will become the property of OWNER. In addition, DELTA-T (DTPS) will work with
      OWNER to establish electronic communication practices.

    

    1.13
      List of Equipment for Which Procurement Services will be Provided by
      DELTA-T

    

    [*]

    

    2.0
      Design Codes & Standards

    

    Unless
      specifically noted to the contrary, the design specifications for the PROCESS
      and the PLANT shall conform with the applicable sections and parts of the codes
      and standards set forth below, including the most recent revisions and
      supplements at the time of the execution of the Agreement.

     

     

     

     

    
      ____________________________

      
        [*] Certain
          information on this page has been omitted and filed separately with
          the Securities and Exchange Commission. Confidential treatment has been
          requested with respect to the omitted portions.

         

         

      

    

    
      
        Plant
          #4 EPT

      

      
        -26-

        
          

        

      

      
        
        

      

    

    

    
      	
              Applicable
                Standards: 

            	
              Federal,
                State, Local, OSHA, Air quality, ANSI 

            
	
               

              Building
                Codes:

               

            	
               

              UBC,
                IBC, CBC, or other state, local, federal, or 

              international
                building codes that may apply at 

              specified
                site or sites 

               

            
	
              Cable
                Marking:

               

            	
              ICEA
                (Insulated Cable Engineers Association)

               

            
	
              Concrete:

               

            	
              ACI
                (American Concrete Institute)

               

            
	
              Corrosion:

               

            	
              NACE
                (National Association of Corrosion Engineers)

               

            
	
              Electrical/Instrumentation:

            	
              NEMA
                (National Electrical Manufacturers Assoc)

            
	 	
              NEC
                (National Electrical Code)

            
	 	
              ISA
                (Instrument Society of America)

               

            
	
              Electrical
                Components:

               

            	
              UL
                (Underwriters Laboratories)

               

            
	
              Flanges:

               

            	
              ANSI
                standard

               

            
	
              Fire
                Protection:

               

            	
              NFPA,
                IFC, CBC, or other state, local, federal, or 

              international
                codes that may apply at specified 

              site
                or sites

               

            
	
              Heat
                Exchanger:

               

            	
              TEMA
                (Tubular Exchanger Manufacturers Association)

               

            
	
               

              Nuts,
                Bolts, Fittings 

            	
               

              ASTM
                (American Society of Testing Materials)

            
	
              &
                Line Components:

               

            	
              SAE
                (Society of Automotive Engineers)

               

            
	
              Painting:

               

            	
              SSPC
                (Steel Structure Painting Council)

               

            
	
              Personnel
                Safety:

               

            	
              OSHA
                (Occupational Safety and Health Association)

               

            
	
              Piping,
                pumps:

               

            	
              ANSI
                (American National Standards Institute)

               

            
	
              Structural
                Steel:

               

            	
              AISC
                (American Institute of Steel Construction)

               

            
	
              Tanks

               

            	
              API
                (American Petroleum Institute)

               

            
	
              Valves
                and Fittings:

               

            	
              MSS
                (Manufacturers Standardization Society)

               

            
	
              Vessels
                (Where required):

               

            	
              ASME
                (American Society of Mechanical Engineers)

               

            
	
              Welding:

            	
              AWS
                (American Welding Society)

            

    

     

     

    
      
        Plant
          #4 EPT

      

      
        -27-

        
          

        

      

      
        
        

      

    

    SCHEDULE
      B: RATES

     

    

    
      	
              DELTA-T
                CORPORATE COMMERCIAL BILLING RATES

            
	 
	
              POSITION
                / FUNCTION

            	 	
              HOURLY
                RATE

            
	 	 	 
	
              Senior
                Consultant/Principal

            	 	
              $300.00

            
	
              Director
                of Engineering

            	 	
              $250.00

            
	
              Project
                Manager

            	 	
              $200.00

            
	
              Construction
                Manager

            	 	
              $150.00

            
	
              Project
                Engineer

            	 	
              $135.00

            
	
              Project
                Controls

            	 	
              $125.00

            
	
              Procurement
                Manager

            	 	
              $125.00

            
	
              Senior
                Process Consultant

            	 	
              $195.00

            
	
              Senior
                Process Engineer

            	 	
              $150.00

            
	
              Senior
                I&C Engineer

            	 	
              $150.00

            
	
              Senior
                Mechanical Engineer

            	 	
              $150.00

            
	
              Process
                Engineer

            	 	
              $125.00

            
	
              I&C
                Engineer

            	 	
              $110.00

            
	
              Mechanical
                Engineer

            	 	
              $110.00

            
	
              Senior
                Designer

            	 	
              $100.00

            
	
              Designer

            	 	
              $75.00

            
	
              Draftsperson

            	 	
              $60.00

            
	
              Technicians

            	 	
              $110.00

            
	
              Financial
                Control and Billing

            	 	
              $80.00

            
	
              Clerical

            	 	
              $60.00

            

    

     

    
      
        Plant
          #4 EPT

      

      
        -28-

        
          

        

      

      
        
        

      

    

    SCHEDULE
      C:
      

    Project
      Schedule

    

     

     

     

    [*]

     

     

     

     

     

     

     

     

     

     

    
      ____________________________

      
        [*] Certain
          information on this page has been omitted and filed separately with
          the Securities and Exchange Commission. Confidential treatment has been
          requested with respect to the omitted portions.

         

      

    

    
      
        Plant
          #4 EPT

        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

    SCHEDULE
      D: 

    Reserved

    

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        Plant
          #4 EPT

      

      
        -30-

        
          

        

      

      
        
        

      

    

    SCHEDULE
      E:

    List
      of Designers

    

    
      	
              4B
                Components

              East
                Peoria, Illinois

            	
              Magnin-Interis

              Charmes,
                France

            
	 	 
	
              Abengoa
                BioEnergy

              Sevilla,
                Spain

            	
              Katzen
                International, Inc.

              Cincinnati,
                Ohio

            
	 	 
	
              Agrol
                Biotechnologies Ltd.

              Guildford,
                Surrey Canada

            	
              Lurgi
                PSI Inc.

              Memphis,
                TN

            
	 	 
	
              Ambitech
                Engineering Corporation

              Downers
                Grove, Illinois

            	
              Merrick
                & Company

              Aurora,
                Colorado

            
	 	 
	
              AMG
                Engineering

              Cincinnati,
                Ohio

            	
              Praj
                Industries

              Pune,
                India

            
	 	 
	
              Bio-Process
                Innovation

              West
                Lafayette, Indiana

            	
              Process
                Plus, LLC

              Cincinnati,
                Ohio

            
	 	 
	
              Bio-Renewable
                Group

              Omaha,
                Nebraska

            	
              Raphael
                Katzen Associates International

              Cincinnati,
                Ohio

            
	 	 
	
              Broin
                & Associates, Inc.

              Aberdeen,
                South Dakota

            	
              Ro-Tech
                Incorporated

              Louisville,
                Kentucky

            
	 	 
	
              Burns
                & McDonnell

              Kansas
                City, Missouri

            	
              SNC-Lavalin
                Group

              Toronto,
                Canada

            
	 	 
	
              Chematur
                Engineering & 

              Weatherly
                Engineering

              Atlanta,
                Georgia

            	
              Southeastern
                Energy Development, Inc.

              Brooklyn,
                NY

              (Alliance
                with Pure Vision Technology)

            
	 	 
	
              Dick
                Engineering Inc.

              Toronto,
                Ontario, Canada 

            	
              Technip

              Cedex,
                France

            
	 	 
	
              MECS,
                Inc.

              St.
                Louis, Missouri

            	
              Vogelbusch
                USA, Inc.

              Houston,
                TX

              (and
                its parent Vogelbusch-Austria)

            
	 	 
	
              Fagen,
                Inc.

              Granite
                Falls, Nebraska

            	
              Wave
                Zeal Ltd.

              Winnepeg,
                Manitoba CANADA

            
	 	 
	
              Harris
                Group Inc.

              Seattle,
                WA

            	
              Washington
                Group International

              Boise,
                Idaho 

            
	 	 
	
              ICM,
                Inc.

              Colwich,
                KS

            	
              Washington
                Group International

              Boise,
                Idaho

            
	 	 
	 	
              Any
                individual, group or company that performs, on the date of the License
                or
                during its term, (a) consulting or engineering related to the design
                of
                alcohol process technology and/or (b) design/build services for existing
                and prospective alcohol plants

            

    

    
 

    
      
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    SCHEDULE
      F:

    Payment
      Schedule

    

    

    

    
       

      [*]

    

     

     

     

     

     

     

     

     

     

     

    
      
        ____________________________

        
          [*] Certain
            information on this page has been omitted and filed separately with
            the Securities and Exchange Commission. Confidential treatment has been
            requested with respect to the omitted portions.

           

        

      

    

    
      
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    SCHEDULE
      G:

    
      License
        Fee Formula

    

    

    

    

    
      [*]

    

     

     

     

     

     

     

     

     

     

     

    
      
        ____________________________

        
          [*] Certain
            information on this page has been omitted and filed separately with
            the Securities and Exchange Commission. Confidential treatment has been
            requested with respect to the omitted portions.

           

           

          Plant
            #4
            EPT

          -33-License Agreement (Plant 5) - Delta-T

    EXHIBIT
      10.6

    

    

    NOTE:
      Information in this document marked with an "[*]" has been omitted and filed
      separately with the Securities and Exchange Commission. Confidential treatment
      has been requested with respect to the omitted portions.

    

    ENGINEERING,
      PROCUREMENT AND

    TECHNOLOGY
      LICENSE AGREEMENT

    

    GENERAL
      CONDITIONS

    (Plant
      No. 5)

    

    

    THIS
      AGREEMENT,
      made
      this 6th
      day of
      September, 2006 by and between Delta-T Corporation, a Virginia corporation,
      with
      its principal place of business at 323 Alexander Lee Parkway, Williamsburg,
      Virginia 23185 (hereinafter “Delta-T”), and Pacific
      Ethanol, Inc., a Delaware corporation, with
      its
      principal place of business at 5711 N. West Avenue, Fresno, California 93711
      (hereinafter “Owner”), each of which may be referred to individually as a
      "Party," or jointly as the "Parties."

    

    WITNESSETH:

    

    WHEREAS,
      DELTA-T is engaged in the performance of engineering, procurement and
      construction services;

    

    WHEREAS,
      Owner desires DELTA-T through Delta-T Project Services, LLC (located at the
      Ford, Bacon and Davis, LLC office in Monroe, LA) (hereinafter “DTPC”) to furnish
      and perform certain engineering and procurement services to support the
      construction and startup of Owner’s fuel ethanol plant at a location to be
      designated; and

    

    WHEREAS,
      Owner and its parent/affiliate (Pacific Ethanol, Inc.) and DELTA-T desire to
      use
      this Agreement as a template for the execution of future projects utilizing
      DELTA-T Technology.

    

    NOW,
      THEREFORE, IN CONSIDERATION of the mutual terms and conditions of this
      Agreement, Owner and DELTA-T agree as follows:

    

    

    ARTICLE
      1

    DEFINITIONS

    

    1.1
      Definitions:
      The
      following words, when capitalized, shall have the meanings set forth
      below:

    

    1.1.1
      Affiliate
      and Control:
      “Affiliate”
      shall
      mean, with respect to any entity, any other entity Controlling, Controlled
      by or
      under common Control with such entity, where “Control” and its derivatives shall
      mean, with regard to any entity, the legal, beneficial or equitable ownership,
      directly or indirectly, of interest sufficient to exercise control over the
      management of such entity. 

    

    1.1.2
      Basic
      Process Design:“Basic
      Process Design” shall mean the process design to be provided by DELTA-T at the
      level of detail described in Schedule A.

     

    
      
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    1.1.3
      Confidential
      Information:“Confidential
      Information” shall mean all of the following: (1) all of the provisions of this
      Contract and its Exhibits/Schedules, especially, but not limited to, the
      provisions concerning pricing and performance, financial information, vendor
      lists, price lists, cost data, and other business and commercially sensitive
      information, and (2) all technical information, including without limitation,
      drawings, designs, methodology, processes, models, inventions, specifications,
      plant or equipment test and operating data, improvements, processes, and other
      technical information of any kind, whether or not patented or patentable and
      whether embodied in a drawing or in equipment or any other physical thing.
      Notwithstanding the foregoing, “Confidential Information” does not include
      information which a Party can demonstrate: (a) was known to it or in its
      possession prior to receipt from the disclosing Party; (b) was in the public
      domain at the time of disclosure or thereafter enters into the public domain
      through no breach of this Contract by the disclosing Party or is in general
      use
      in the trade without violation by a Party to this Contract, or violation by
      any
      other party of an obligation not to disclose it; or (c) is disclosed by a party
      other than Owner or DELTA-T who is under no obligation not to disclose it .
      Notwithstanding the foregoing or anything herein to the contrary, Owner’s
      requirements and the description of Work will be deemed to be the Confidential
      Information of Owner only.

    

    1.1.4
      Contract:“Contract”
      shall mean these General Conditions, the Schedules, and all additions or
      modifications thereto made in accordance with Article 5 and Article 20, Section
      20.2 of these General Conditions.

    

    1.1.5
      Contract
      Sum:“Contract
      Sum” shall mean the sum determined in accordance with Article 8 of the General
      Conditions.

    

    1.1.6
      Date
      of Commencement:“Date
      of
      Commencement” shall mean the date of commencement of this Contract, which shall
      be the date on which it has been executed by both Parties.

    

    1.1.6a
       Day: “day”
      shall mean a calendar day unless specifically identified as a “business
      day.”

    

    1.1.7
      DELTA-T
      Technology:
      “DELTA-T
      Technology” shall mean all
      Confidential Information of DELTA-T embodied in any drawing, design, patent,
      patent application or process delivered by DELTA-T to Owner
      and any
      inventions (whether patentable or not), copyrights, trade secrets or other
      similar intellectual property rights of Delta-T which are embodied in the Work
      Product.  

    

    1.1.8
      Equipment:“Equipment”
      shall mean the equipment and materials for which DELTA-T will provide
      procurement services under Schedule A of this Contract.

    

    1.1.9
      Final
      Acceptance:“Final
      Acceptance” shall mean the date upon which the Plant has operated at its
      designed capacity for a continuous 2 week period. 

    

    1.1.10
      Reserved. 

    

    1.1.11
      General
      Conditions:“General
      Conditions” shall mean all portions of this Contract other than the
      Schedules.

     

    
      
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    1.1.12
      Mechanical
      Completion: The
      completion of construction activities essential to the safe and proper operation
      of the plant. This includes site, building, mechanical equipment, piping,
      electrical as more fully described below: 

    

      
        	 	
                ·

              	
                Inspection
                  of all equipment to check that erected facilities conform to construction
                  drawings and Contract
                  specifications.

              

      

      
        	 	
                ·

              	
                Non-operating
                  field leak tests or field pressure tests on piping and field-fabricated
                  equipment as required by the Contract specifications, disposing
                  of test
                  media on site at a location specified by Owner, and removal of
                  test blinds
                  and restoring systems to “ready for operation”
                  condition.

              

      

      
        	 	
                ·

              	
                Removal
                  of all temporary supports, bracing or other foreign
                  objects.

              

      

      
        	 	
                ·

              	
                Inspection
                  of all columns to ensure proper installation of all
                  internals.

              

      

      
        	 	
                ·

              	
                Field
                  inspection of all shop fabricated
                  equipment.

              

      

      
        	 	
                ·

              	
                Line
                  flushing as part of hydrotesting.

              

      

      
        	 	
                ·

              	
                Check
                  to ensure that all baseplates and soleplates are level and properly
                  grouted.

              

      

      
        	 	
                ·

              	
                Check
                  pipe hangers, supports, guides and pipe specialties, and remove
                  all
                  shipping and erection bracing.

              

      

      
        	 	
                ·

              	
                Check
                  alignment of all piping fit-up with equipment to avoid excessive
                  nozzle
                  loading and pipe stresses.

              

      

      
        	 	
                ·

              	
                Insulation
                  for process purposes.

              

      

      
        	 	
                ·

              	
                Install
                  Lubricants.

              

      

      
        	 	
                ·

              	
                Check
                  rotating machinery for correct direction of rotation and for freedom
                  of
                  moving parts.

              

      

      
        	 	
                ·

              	
                Check
                  cold alignments on rotating
                  equipment.

              

      

      
        	 	
                ·

              	
                Schedule
                  the services of factory representatives for equipment or other
                  items as
                  required.

              

      

      
        	 	
                ·

              	
                Electrical
                  and Instrumentation installed.

              

      

       

    

    Irrespective
      of the foregoing, Mechanical Completion shall be deemed achieved once feedstock
      is introduced into the Plant and ethanol has been produced.

    

    1.1.13
      Plant:“Plant”
      shall mean the new 50,000,000 GPY ethanol plant being designed,
      developed and constructed 
      by Owner
      at a location yet to be designated, being the fifth Plant developed by Owner
      employing DELTA-T Technology.

    

    1.1.14
      Reserved.

    

    1.1.15
      Process:“Process”
      shall mean a system designed for production of an anhydrous fuel-grade ethanol
      at the rate of not less than 50,000,000 US gallons per year (based on a 350
      day
      operating year) of undenatured alcohol using corn feedstock of
      56
      lb/bushel test weight No. 2 Yellow Dent corn containing a maximum of 14.5%
      moisture (by weight), a minimum of 72% dry, trash-free starch (by weight) and
      a
      max of 1% foreign material (by weight).
      

    

    1.1.16
      Reserved. 

    

    1.1.17
      Startup:“Startup”
      shall mean the point in time at which corn feedstock is first introduced into
      the Process for the purpose of making ethanol. 

     

    
      1.1.18
        Work:“Work”
        shall mean the services to be provided by DELTA-T under this
        Contract.

       

    

    
      
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    ARTICLE
      2

    SCOPE
      OF WORK

    

    2.1
      Description of Work:
      DELTA-T
      shall provide the technology transfer, engineering and procurement services
      described in Schedule A. To the extent of any conflict between these General
      Conditions and the Schedules hereto, these General Conditions shall be
      controlling. DELTA-T shall not purchase or commit to purchase any Equipment
      without first identifying in writing for Owner the Equipment and the cost to
      DELTA-T and the cost to Owner and obtaining Owner’s written approval of such
      Equipment.

    

    2.2
      Permits and Compliance with Law:
      DELTA-T
      shall, at its expense, secure all permits that it is required by any federal,
      state or local law rule, regulation or other legal requirement (“Legal
      Requirements”) to procure in connection with its performance of the Work. All
      other permits required by applicable law or regulation, including without
      limitation, permits related to environmental protection, operation of the plant
      at which the Equipment is installed, or activities of Owner or any of its
      contractors (other than DELTA-T), shall be secured by Owner at Owner’s expense.
      DELTA-T shall comply with all Legal Requirements that are applicable to its
      performance of the Work, and all work product generated by DELTA-T in connection
      with the Work shall comply with all such Legal Requirements. 

    

    

    ARTICLE
      3

    INFORMATION,
      GOODS AND SERVICES TO BE PROVIDED BY OWNER; COOPERATION ON DETAILED
      DESIGN

    

    3.1
      Owner’s Deliverables:
      Owner
      shall furnish to DELTA-T, at Owner’s expense, the documents, drawings,
      equipment, specifications, information, personnel and services identified in
      Schedule A as within the scope of Owner’s obligations, and shall furnish them
      within the times prescribed in Schedule C, or, if no time is prescribed, within
      the time reasonably requested by DELTA-T to allow DELTA-T to perform its
      obligations under this Contract.

    

    3.2
      Review of the Design:
      Owner
      will review the elements of the design that are specifically identified on
      Schedule A as elements to be reviewed by Owner (as identified with “*”). Upon
      receipt of the designs supplied by DELTA-T, Owner may, within twenty (20)
      business days of receipt, suggest changes or additions to the design. DELTA-T
      shall make all reasonable attempts to incorporate any changes or additions
      suggested upon review, provided that Delta-T shall notify Owner in writing
      if it
      believes that doing so would not be useful to, or would be detrimental to,
      the
      Process. 

    

    3.3
      Review of Detailed Design Components:
      Owner
      shall require its contractor or vendor to submit to DELTA-T, for its review,
      all
      detailed engineering documents identified on Schedule A as documents to be
      reviewed by DELTA-T (as identified with a “*”). DELTA-T shall provide to Owner,
      in writing, DELTA-T’s comments on such documents, work and data. Such review
      shall not be deemed to constitute comments on integrity, compliance with codes,
      correction of, or approval of, other design details.

     

    
      
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    ARTICLE
      4

    SCHEDULE

    

    DELTA-T
      shall perform the Work in accordance with the Schedule C. In case of any delay,
      including without limitation, Owner’s failure to provide deliverables under
      Article 3, Section 3.1, other than a delay caused by DELTA-T, its employees,
      subcontractors or vendors for reasons other than force majeure, the Schedule
      C
      for completion of the Work, or any part of it, shall be automatically extended
      by a number of days equal to the number of days of such delay, plus the number
      of days reasonably required for demobilization and remobilization.

    

    

    ARTICLE
      5

    CHANGES

    

    5.1
      Issuance of Change Orders by Owner:
      Owner
      may, by its written order, require changes in the Work within the general scope
      of the Contract consisting of additions, deletions or other revisions which
      do
      not result in any material change in the Work, provided that the Contract Sum
      and payment schedule are adjusted to reflect the change in DELTA-T’s direct
      costs, up or down, plus a fixed percentage thereof to cover indirect costs
      and a
      reasonable amount of profit (which percentage is consistent with the percentage
      used to determine the initial Contract Sum), and that the time allowed for
      completion, warranty obligations, and any other obligations of DELTA-T affected
      by the changes are adjusted to cover the consequences to DELTA-T resulting
      from
      such change. DELTA-T shall have the right to make a claim for such adjustments
      based on cumulative changes, including changes previously made for which it
      notifies Owner that it was not claiming an adjustment due to the de minimus
      nature of the adjustment required for that single change. The amount to be
      paid
      to DELTA-T, the effect on Schedule C, if any, and any other adjustments to
      the
      Contract will be made by mutual agreement. If the change, in DELTA-T’s judgment,
      would have a detrimental impact on performance of the Plant, or if the amount
      of
      the change order in dispute exceeds one percent (1%) of the Contract Sum, then
      DELTA-T shall have no obligation to proceed with any change until such agreement
      is reached. Furthermore, DELTA-T shall in no case be required to agree to any
      change requiring the handling of PCB’s, asbestos or any other hazardous
      material. In all other cases, if Owner and DELTA-T are unable to reach agreement
      within fifteen (15) business days of the date of DELTA-T’s notice to Owner
      provided in accordance with Section 5.2 below, then DELTA-T shall proceed with
      the change and the matter shall be resolved as provided at Article 18
      below.

    

    5.2
      Notice of Instruction Constituting a Change; Notice of Impact of Change
      Order:
      If
      DELTA-T receives instructions from Owner, which in DELTA-T’s opinion constitute
      a change in the Work, DELTA-T shall so advise Owner within five (5) business
      days of receipt of such instruction. If DELTA-T receives a change order under
      Section 5.1 above or becomes aware of a constructive change order of the type
      described in Section 5.3 below, or gives Owner a notice that an instruction
      of
      Owner constitutes a change, then DELTA-T shall within ten (10) business days
      thereafter submit to Owner a statement of the impact of such change on the
      Contract Sum, payment schedule, warranties, and any other provisions of the
      Contract affected thereby. DELTA-T shall not delay prosecution of the Work
      not
      affected by the change.

    

    5.3
      Constructive Change Orders:
      Any of
      the following shall be deemed constructive change orders a modification of
      applicable law, ordinance or regulation resulting in any increase in taxes
      or
      insurance premiums, or any other cost, payable by DELTA-T or in any government
      regulated costs.

     

    
      
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    ARTICLE
      6

    INSTALLATION
      AND TRAINING

    

    6.1
      Training:
      DELTA-T
      shall have its representative, and any other employees or assistants that it
      deems necessary or appropriate, at the work site to instruct Owner’s personnel
      in the installation of the Equipment. DELTA-T shall provide such instruction
      and
      assistance for the number of days specified at Schedule A. DELTA-T shall provide
      personnel to perform such services for additional days at Owner’s request at
      rates of compensation provided in Schedule B or as agreed to by Owner and
      DELTA-T.

    

    6.2
      Installation; Interface: DELTA-T’s
      responsibility with respect to interface of the Equipment with the equipment
      or
      facility of Owner shall be to conform its Work to the Specifications set forth
      in Schedule A and in the Basic Process Design. Any
      work
      done by, or change made by, Owner or any of its contractors (other than DELTA-T)
      requiring any change or addition to any Work Product to permit proper interface
      of the Work with any other equipment, utility supply, or other aspect of Owner’s
      facility, shall be performed by Owner, or by DELTA-T at Owner’s expense at the
      rates in Schedule B.

    

    

    ARTICLE
      7

    Reserved

    

    

    ARTICLE
      8

    CONTRACT
      SUM AND PAYMENT

    

    8.1
      Contract Sum:
      Owner
      will pay DELTA-T a Contract Sum consisting of (a) a fixed fee of [*]
      to
      cover DELTA-T’s general conditions, overhead and profit for all services
      provided hereunder, which is subject to adjustment as provided below, (b) [*]
      for DELTA-T’s license fee (the “License Fee”), which License Fee has been
      determined in accordance with Schedule G hereto, and (c) the cost of all
      procured equipment at cost plus [*], subject to increase as set forth in Article
      8.1.1.

    

    The
      Contract Sum does not include any sales, use, excise or other tax that DELTA-T
      is required to charge and collect on the fees payable hereunder by Owner to
      DELTA-T with respect to the Work or the Equipment (other than taxes on DELTA-T’s
      income or on any facilities, personnel, equipment or other resources procured
      by
      DELTA-T for use in connection with the Work), and Owner agrees that it shall
      pay
      the same if and when due. Owner shall pay the lesser of 1% per month or the
      highest amount permitted by law on all sums more than three (3) business days
      past due. 

    

    8.1.1
      Adjustments to Contract Sum:
      In
      addition to changes set forth in Article 5, the Contract Sum set forth in 8.1
      may be adjusted as follows:

    
 

     

    ____________________________

    
      [*] Certain
        information on this page has been omitted and filed separately with
        the Securities and Exchange Commission. Confidential treatment has been
        requested with respect to the omitted portions.

       

       

    

    
      
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    a.
      The
      [* ]
      referenced above represents DELTA-T’s general conditions, overhead and profit
      for services described in Article 2 and includes [*]for construction management
      services (under Schedule A, paragraphs 1.4, 1.5, and 1.6), and [*] for training,
      commissioning and start-up services (under Schedule A, paragraphs 1.7, 1.8,
      1.9,
      1.10, and 1.11). Accordingly, in the event Owner elects not to employ DELTA-T’s
      construction management services or DELTA-T’s training, commissioning and
      start-up services, the fee shall be reduced accordingly. 

    

    b.
      The
      [*] procurement fee is based on Delta-T performing procurement services for
      a
      total of 5 new construction ethanol plants (including the Madera plant) owned
      by
      Owner or its affiliates to the same extent DELTA-T handled equipment procurement
      at the Madera facility. In the event that, by September 1, 2009, Delta-T does
      not provide such procurement services for Owner or its affiliates, Delta-T
      shall
      invoice Owner a fee representing the difference between procurement at cost
      plus
      [*] and cost plus [*]. Such invoice shall be immediately due and payable by
      Owner.

    

    8.2
      Payment:
      The
      Contract Sum shall be payable as follows: 

    

    (a) The
      General Conditions/Overhead/Profit shall be paid in the form of:

    

    
      	 	
              1.

            	
              an
                initial payment of [*] of which [*] has been previously paid and
                [*] which
                shall be paid simultaneously with execution of this Contract if work
                has
                already begun on the Project. If work has not begun, the initial
                payment
                shall be due upon issuance of a Notice to proceed by owner to
                Delta-T,

            

    

    

    
      	 	
              2.

            	
              monthly
                installments of ninety-five percent (95%) of the remaining amount
                in
                accordance with the table set forth in Schedule F (the first such
                payment
                being paid on the thirtieth (30th)
                day following the initial payment and the remaining payments being
                paid on
                the earlier of (i) the first day of each month following the date
                of the
                second payment, or (ii) upon Mechanical Completion,
                and

            

    

    

    
      	
            	3.	
              The
                final payment shall be paid upon Mechanical
                Completion.

            

    

    

    
      	 	
              4.

            	
              If
                Delta-T is behind by more than 30 days in any deliverables called
                for by
                Schedule C, then Owner may delay payment under this subparagraph
                8.2(a)
                until such time as Delta-T and Owner mutually agree on a new schedule.
                Both parties shall cooperate in reaching agreement in this regard.
                

            

    

    

    (b) Procurement:
      

    

    
      	 	
              1.

            	
              Delta-T
                shall provide Owner with three (3) business days’ notice of the need for
                procurement funds. Included within such notice shall be a breakdown
                of the
                items to be ordered with the requested funds. Within three (3) business
                days after receiving notice from Delta-T, Owner shall wire transfer
                the
                requested funds to Delta-T. DELTA-T shall hold such funds IN TRUST
                for the
                benefit of Owner until such time as the funds are remitted to a vendor
                or
                returned to Owner.  

            

    

    

    
      	 	
              2.

            	
              The
                cost of the procurement portion of the Work will become due and payable
                as
                the costs for equipment are committed by DELTA-T as
                follows:

            

    

     

     

    
       

      ____________________________

      
        [*] Certain
          information on this page has been omitted and filed separately with
          the Securities and Exchange Commission. Confidential treatment has been
          requested with respect to the omitted portions.

         

      

    

    
      
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              a.

            	
              Upon
                placement of each purchase order, 10% of the total value of each
                purchase
                order, including markup is due and payable via wire transfer or zero
                balance account.

            

    

    

    
      	 	
              b.

            	
              Upon
                receipt of approval drawings, 20% of the total value of each purchase
                order, including markup is due and payable via wire transfer or zero
                balance account.

            

    

    

    
      	 	
              c.

            	
              Upon
                receipt of materials at the vendor’s fabrication shop, 40% of the total
                value of each purchase order, including markup is due and payable
                via wire
                transfer or zero balance account.

            

    

    

    
      	 	
              d.

            	
              Upon
                delivery and acceptance at site, 25% of the total value of each purchase
                order including markup is due and payable via wire transfer or zero
                balance account.

            

    

    

    
      	 	
              e.

            	
              Upon
                Mechanical Completion and the receipt of all vendor data and maintenance
                manuals, 5% of the total value of each purchase order, including
                markup is
                due and payable via wire transfer or zero balance
                account.

            

    

    

    
      	 	
              3.

            	
              Markup
                shall be determined as set forth in Article 8.1.1(b).
                

            

    

    
 

    (c) The
      License Fee shall be due and payable as follows: 

     

    1. 
50%
      upon
      execution of this contract if the Parties have already begun work on the
      Project. If work has not begun, the initial payment shall be due upon issuance
      of a Notice to Proceed by Owner to Delta-T.

     

    2. 
50%
      upon
      Mechanical Completion.

     

    (d) For
      work
      performed by written request, outside of the scope herein defined, the rates
      in
      Schedule B will apply.

    

    8.3
      Invoicing and Invoice Approval:
      Other
      than the initial payment described in Section 8.2(a) above, Owner shall pay
      all
      submitted DELTA-T invoices within the later of thirty (30) calendar days after
      the
      event
      occurrence date and thirty (30) calendar days from date of receipt of the
      subsequent invoices. Owner shall promptly review all DELTA-T invoices and,
      where
      appropriate, supporting documentation, and approve for payment such amounts
      as
      Owner reasonably determines to be properly due under the Contract. If Owner
      disputes any amount invoiced, it shall: (i) give notice to DELTA-T of such
      disputed amount together with a statement of the basis of the dispute, with
      such
      notice to be delivered by the due date for the applicable invoice, and (ii)
      pay
      undisputed amounts on or before the due date. If Owner fails to provide notice
      of a disputed amount within the prescribed period, it shall be deemed to have
      waived its right to withhold such amount. DELTA-T shall provide Owner with
      access to such information or records which are necessary to enable Owner to
      verify the accuracy of any invoice.

     

    
      
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    ARTICLE
      9

    OWNERSHIP
      OF WORK PRODUCT/CONFIDENTIALITY

    

     

    9.1
      License to Use: Owner
      acknowledges that DELTA-T is and shall remain the sole owner of the DELTA-T
      Technology, and of the copyrights in all the drawings, manuals and other
      documents provided by DELTA-T under this Agreement. In consideration of Owner’s
      payment to DELTA-T of the License Fee set forth in Article 8.1, DELTA-T grants
      to Owner, subject to the conditions of this Agreement, a non-exclusive, paid-up,
      non-transferable right to use in perpetuity the DELTA-T Technology, without
      right to grant such rights to others, solely for the purposes of:

    

    a.  
      Use
      at
      the Plant; and

    b.  
      Maintenance
      and optimization or enhancement of the Plant.

    

    Owner
      agrees that it shall not use the Delta-T Technology for any other
      purpose.
      Optimization and enhancement (“Modification”),
      for
      this purpose, shall include de-bottlenecking, but shall not include expanding
      the physical dimensions of the distillation columns or molsieve vessels included
      in the Delta-T Technology, or adding to the original number of distillation
      columns or molsieve vessels specified in such design. Owner
      may
      not disclose any of the Delta-T Technology to (i) any third party that is listed
      in Schedule E, or (ii) to any individual, group or company that is in the
      business of designing alcohol plants or parts thereof and that is not
      listed
      in Schedule E, for the purpose of making any Modification, except
      that Owner
      may
      make such disclosure to any Designer to the extent, and only to the extent,
      necessary to permit such Designer to enable a Modification that was created
      without the disclosure of any Delta-T Technology by or on behalf of Owner,
      to interface with portions of the Plant designed by Delta-T.

    

    

    ARTICLE
      10

    RIGHTS
      OF OWNER AND DELTA-T TO SUSPEND WORK OR TERMINATE

    

    10.1
      Owner’s Right to Terminate For Cause:
      Owner
      may terminate this Contract if: (i) a petition in bankruptcy is filed by or
      against DELTA-T and it is not dismissed within thirty (30) days, or (ii) DELTA-T
      commits a material breach of this Contract and fails to cure within the longer
      of 60 days of its receipt of written notice of such breach or such longer time
      as may be approved in writing by Owner. Upon such termination Owner shall (at
      its option) take possession of the Work and all Equipment for which it has
      paid,
      and upon Owner’s request, DELTA-T shall assign any then outstanding purchase
      orders for Equipment. DELTA-T
      shall cooperate in all respects with Owner in transiting the Work or Owner
      or a
      third party designated by Owner.
      In the
      event of termination under this Section 10.1, DELTA-T will be liable to Owner
      for any reasonable costs incurred by Owner to complete the Work to the extent
      that such costs exceed the unpaid balance of the Contract Sum set forth at
      Section 8 above. 

    

    10.2
      DELTA-T’s Right to Stop Work:
      If Owner
      does not pay DELTA-T any amount due under this Contract within five (5) business
      days after the date such payment is due, then DELTA-T may, upon ten (10) days
      written notice to Owner, stop the Work until it receives payment of the amount
      owing. In such case, Schedule C shall be extended as provided at Article 4
      above.

     

    
      
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    10.3
      DELTA-T’s Right to Terminate:
      DELTA-T
      may terminate the Contract if:

    

    
      	 	
              a.

            	
              issuance
                of any order of a court or other public authority having jurisdiction
                instructing DELTA-T to permanently cease
                Work;

            

    

    
      	 	
              b.

            	
              on
                30 days notice if Owner has not made payment within thirty (30) days
                of
                the date due or a petition in bankruptcy is filed by or against it
                and is
                not dismissed within sixty (60) calendar days;
                or

            

    

    
      	 	
              c.

            	
              Owner
                commits a material breach of this Contract and fails to cure within
                30
                days of its receipt of written notice of such breach or such longer
                time
                as may be approved in writing by
                DELTA-T.

            

    

    

    Upon
      such
      termination, Owner shall pay DELTA-T the Contract Sum times the percentage
      or
      Work successfully completed as of the date of termination plus 15% of the
      remainder of the Contract Sum (the “Termination Fee”); provided, that the
      Termination Fee shall not be payable if Owner terminates due to DELTA-T 's
      breach. If Owner has already paid a greater percentage of the Contract Sum
      than
      the amount of Work completed, any amounts remaining due will be adjusted such
      that Owner pays no more than the Termination Fee. 

    

    10.4
      Rights On Termination. Owner’s
      right to an irrevocable and perpetual license to DELTA-T Technology as provided
      for in Article 9 shall be unaffected by the expiration or termination of this
      Agreement, irrespective of the reason; provided that Owner has paid DELTA-T
      in
      full its  License
      Fee as set forth in Article 8. 

    

    10.5
      Owner’s Right to Terminate on Plant Cancellation:
      Owner
      may terminate this Contract at any time if Owner ceases development of the
      Plant
      for any reason. In the event of such a termination, Owner shall be entitled
      to
      apply all sums theretofor paid under this Agreement to a subsequent agreement
      of
      like tenor providing for engineering, procurement and construction services
      in
      connection with a new 50,000,000 GPY ethanol plant. To the extent the design
      being implemented under the subsequent agreement differs materially from the
      design for the Plant under this Agreement thus requiring material changes in
      the
      Work, then such changes shall be accounted for as Change Orders in accordance
      with Article 5, or in such other manner as the Parties shall mutually
      agree.

    

    

    ARTICLE
      11

    SAFETY

    

    DELTA-T
      will cause all of its personnel to comply with all local, state and federal
      regulations and with all of Owner's safety and security regulations, procedures
      or standards, provided, however, that in the event that any of Owner’s safety
      and security regulations, procedures or standards increases the cost of
      DELTA-T’s performance and was not made known to it by Owner prior to DELTA-T’s
      execution of this Contract, DELTA-T shall, at its request made within thirty
      (30) days of being advised of such regulation, procedure or standard, be
      reimbursed for its costs of complying with the same, provided DELTA-T identified
      for Owner in writing the incremental costs within ten (10) days after learning
      of any such Owner regulation, procedure or standard and identifies therein
      the
      incremental cost, and provided Owner did not subsequently relieve DELTA-T of
      the
      obligation to comply with any such Owner regulation, procedure or standard.
      DELTA-T shall have no obligation to proceed with any of its obligations to
      be
      performed at the Work site in the event that such performance would, for reasons
      attributable to Owner, be unsafe,
      as
      determined by DELTA-T in the exercise of its reasonable judgment.

     

    
      
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    ARTICLE
      12

    WARRANTY

    

    12.1
      Equipment: For
      the
      Equipment listed in Schedule A that it provides procurement services for,
      DELTA-T will transfer all manufacturers’ warranties to Owner. 

     

    12.2
      Reserved.

     

    12.3
      Service Warranty:
      DELTA-T
warrants
      that it will perform the Work in accordance with the standards of care and
      diligence normally practiced by recognized firms in the ethanol industry
      performing services of a similar nature in existence at the time of performance
      of the Work. If, during the 12 month period following Mechanical Completion,
      it
      is shown there is an error in the Work caused solely by DELTA-T’s (or its
      agents, subcontractors or vendors) failure to meet such standards and Owner
      has
      notified DELTA-T
      in
      writing of any such error as provided below, DELTA-T
      shall
      re-perform, at no additional cost to Owner, such services within the original
      scope of Work as may be necessary to remedy such error.
      

     

    12.4
      Remedies; Limitation on Warranty:
      THE
      WARRANTIES SET FORTH IN THIS SECTION ARE THE ONLY WARRANTIES MADE BY DELTA-T,
      INCLUDING WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY OF FITNESS FOR
      A
      PARTICULAR PURPOSE. THE REMEDIES SET FORTH IN THIS ARTICLE 12 SHALL BE OWNER’S
      EXCLUSIVE REMEDIES FOR BREACH OF WARRANTY. The warranties set forth in this
      Article 12 do not cover any defect or deterioration which results from failure
      of Owner to provide any feedstock, utilities, or other supplies, services or
      conditions specified by DELTA-T, which are not within the scope of the Work,
      force majeure, operation or maintenance not in accordance with standards of
      care
      prevalent in the industry, foreign substance or impurity introduced into the
      molecular sieve, or any other matter not within DELTA-T’s control.

     

    12.5
      Notice of Warranty Claim: Owner
      shall notify DELTA-T in writing of any defect covered by this warranty within
      ninety (90) days after discovering such defect. If Owner notifies DELTA-T after
      such period, any damages to which Owner is entitled will be reduced by any
      damages which DELTA-T could have avoided had Owner notified DELTA-T ninety
      (90)
      days after discovering the defect.

    

    

    ARTICLE
      13

    LIMITATION
      OF LIABILITY

    

    In
      no
      case shall DELTA-T have any responsibility for the acts or omission of any
      contractor, subcontractor, vendor or material suppliers of Owner, or any
      employee, agent or contractor of any of them, other than its own subcontractors
      or vendors, and its Affiliates to the extent they provide services hereunder,
      including DELTA-T Project Services, LLC. IN NO EVENT SHALL EITHER PARTY HAVE
      ANY
      LIABILITY TO THE OTHER FOR ANY INCIDENTAL, SPECIAL, PUNITIVE OR CONSEQUENTIAL
      LOSS OR DAMAGE, INCLUDING WITHOUT LIMITATION, DAMAGE RESULTING FROM CONSTRUCTION
      CHANGE ORDERS AND/OR CLAIMS, LOSS OF USE, LOSS OF REVENUE, LOSS OF PROFIT,
      LOSS
      OF CONTRACTS, LOSS OF PRODUCT OR PRODUCTION, LOSS OF BUSINESS OPPORTUNITY
      SUFFERED OR INCURRED BY ANOTHER PARTY OR ANY OF THEIR AFFILIATES OR
      CO-VENTURERS, HOWSOEVER ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT,
      OR
      FROM THE TERMINATION OR BREACH HEREOF OR ANY WARRANTY MADE HEREUNDER. IN NO
      CASE
      SHALL EITHER PARTY’S LIABILITY TO THE OTHER UNDER THIS CONTRACT, WHETHER UNDER
      ARTICLE 12 OR OTHERWISE, EXCEED THE FEES PAYABLE BY OWNER
      HEREUNDER.

     

    
      
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    THE
      EXCLUSION OF DAMAGES AND THE LIABILITY LIMITATION IN THE PRECEDING PARAGRAPH
      SHALL NOT APPLY TO BREACHES OF ARTICLES 9 OR 17. 

    

    In
      no
      case shall DELTA-T’s cumulative liability to Owner under
      this Contract, whether under Article 12 or otherwise, exceed Two Million Dollars
      ($2,000,000.00). Notwithstanding anything herein to the contrary, to the extent
      DELTA-T is holding funds that have been advanced by Owner in connection with
      the
      procurement of equipment, then DELTA-T’s liability for mishandling of Owner’s
      funds shall be limited to the aggregate dollar amount of funds held at any
      time
      by DELTA-T. 

    

    

    ARTICLE
      14

    TRANSFER
      OF TITLE AND RISK OF LOSS

    

    14.1 Shipment:
      All
      Equipment will be shipped to the Owner at the Plant FOB the Plant and title
      and
      risk of loss shall pass to Owner at the Plant. 

    

    14.2 Inspection;
      Acceptance:
      Owner
      will have 15 days to inspect Equipment. If Owner rejects any Equipment for
      failure to comply with its specifications or any provision of this Agreement,
      Owner will so notify DELTA-T and will return such Equipment as instructed by
      DELTA-T at DELTA-T’s cost. 

    

    

    ARTICLE
      15

    INSURANCE

    

    DELTA-T
      shall maintain the following types of insurance coverage as a minimum until
      the
      earlier of (a) the date of Final Acceptance, or (b) termination of the
      Contract.

    

    15.1
      Accident to Workmen:
      Insurance against damages or compensation payable to any workman or other person
      in the employment of DELTA-T, other than death or injury resulting from any
      act
      or default of Owner, its agents or servants. The coverage limits are those
      as
      required by law.

    

    15.2
      Comprehensive General or Commercial Liability:
      Insurance against loss or damage to the Equipment prior to delivery to the
      site,
      other than loss or damage resulting from any act or default of Owner, its agents
      or servants. Coverage limits are one million dollars ($1,000,000.00) per
      occurrence and three million dollars ($3,000,000.00) cumulative. 

     

    15.3
      Automobile Liability:
      Insurance covering all owned, non-owned and hired vehicles against losses for
      bodily injury and property damage. Coverage limits are five hundred thousand
      dollars ($500,000.00) per occurrence and one million dollars ($1,000,000.00)
      cumulative.

     

    15.4
      Professional Liability:
      Insurance covering liability arising out of DELTA-T’s negligent acts, errors or
      omissions in the rendering of its professional services under this Contract
      up
      to one million dollars ($1,000,000.00).

     

    
      
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    15.5
      Builder’s Risk; Waiver of Subrogation: Owner
      shall purchase and maintain property insurance (including boiler and machinery
      coverage) and all risk builder’s risk insurance upon the Plant in an amount no
      less than the value of the Plant. The insurance shall include the interests
      of
      Owner, DELTA-T and all subcontractors at any tier and shall include coverage
      for
      direct physical damage resulting from all perils, including (without limitation)
      fire, flood and earthquake coverage to (a) the installed Work, (b) materials
      and
      equipment which are stored at the site but have not yet been included in the
      Plant, (c) all materials and equipment in transit or stored off site for which
      payment has been made or is due from Owner, and (d) for business interruption.
      Owner’s sole remedy in case of any loss or damage of the type covered by the
      insurance required by this Section 15.5 shall be recovered under that policy.
      Owner and DELTA-T intend that all builder’s risk policies purchased, or required
      to be purchased, in accordance with this Section 15.5 will protect Owner,
      DELTA-T and all subcontractors and sub-subcontractors, and will provide primary
      coverage for all losses and damages caused by the perils or causes of loss
      covered thereby. Owner and DELTA-T waive all rights against each other and
      their
      respective subcontractors, officers, directors, agents and employees of the
      other arising out of or resulting from any of the perils or causes of loss
      covered by such policies and any other property insurance applicable to the
      Plant during the period prior to Final Acceptance and payment of all amounts
      due
      to DELTA-T under this Contract. None of the above waivers shall extend to the
      rights that any Party making such waiver may have to the proceeds of insurance
      held by Owner as trustee or otherwise payable under any policy so issued. In
      addition, Owner waives all rights against DELTA-T, its subcontractors at any
      tier and the officers, directors, employees and agents of any of them for
      business interruption and any other consequential damages caused by, arising
      out
      of or resulting from any such insured perils or causes of loss or any other
      peril or cause of loss whether or not insured. All policies required under
      the
      Contract shall be endorsed to include such waivers of subrogation, or
      confirmation of such waivers shall appear on the certificates of insurance
      required to be delivered under Section 15.7 below. Owner and DELTA-T shall
      require similar waivers from each of their contractors and subcontractors who
      do
      work on the Work, each in favor of the other parties enumerated in this Section.
      

     

    15.7
      Certificates of Insurance: Before
      commencing the Work, DELTA-T shall, at Owner’s request, furnish Owner with
      certificates evidencing the coverage required under this Article 15 from the
      insurance company or companies carrying the aforesaid coverage. These
      certificates will provide that the policies may not be amended or terminated
      unless at least thirty (30) days prior written notice is given to
      Owner.

    

    

    ARTICLE
      16

    INDEMNITY

     

    16.1
      Indemnity by DELTA-T for Bodily Injury and Property Damage: DELTA-T
      shall indemnify and hold harmless Owner and its agents and employees from and
      against all third party claims, damages, losses and expenses, including, but
      not
      limited to attorney's
      fees,
      arising out
      of or
      resulting from DELTA-T's performance of the Work, provided that, any such claim,
      damage, loss or expense: (1) is attributable to bodily injury, sickness, disease
      or death, or to injury to or destruction of tangible property, including the
      loss of use resulting therefrom, and (2) is caused in whole or in part by any
      negligent act or omission of DELTA-T, its subcontractors, or anyone for whose
      acts DELTA-T is liable. In the event that any such damage, loss or expense
      was
      caused in part by Owner or by any other person or entity, however, then DELTA-T
      shall be obliged to pay only the portion of the damage, loss or expense,
      including reasonable attorney’s fees as is attributable to its relative share of
      the negligence or omission which caused such damage, loss or expense. In no
      case
      shall DELTA-T be liable under this Section 16.1 for an amount, including costs
      and attorney’s fees, in excess of the amount set forth at Article 13
      above.

     

    
      
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    16.2
      Indemnity by DELTA-T for Intellectual Property: DELTA-T
      hereby warrants that the Process, if used in a manner consistent with the Basic
      Process Design provided by DELTA-T and used in accordance with DELTA-T’s
      operating instructions, does not infringe any patent, copyright or trade secret.
      DELTA-T further agrees upon receipt from Owner of notification of a lawsuit
      or
      claim against Owner for such an infringement, to promptly defend such claim
      with
      competent counsel of its own choosing. DELTA-T further agrees, to indemnify
      Owner against any royalties, damages, orders, and court costs, awarded by a
      final, non-appealable judgment resulting from a finding of an infringement
      covered by this indemnity, or the settlement of a claim indemnifiable under
      this
      Section 16.2. This indemnification shall not apply to any design, process or
      product of a particular manufacturer or manufacturers, which is specified by
      Owner. This indemnification is valid only if (a) Owner gives notice of any
      claim
      or lawsuit for which it claims indemnity within time sufficient for Owner to
      contest such claim, (b) Owner cooperates fully and promptly with DELTA-T in
      the
      defense thereof at Owner’s expense for all items related to such defense not
      specifically imposed on DELTA-T above, including without limitation, any costs
      for time of witnesses who are employees of Owner, costs related to travel,
      production of documents, fees for any counsel it elects to assist it in addition
      to counsel appointed by DELTA-T for defense of the claim, and (c) DELTA-T has
      full authority in defense of such lawsuit or claim and to settle such claim,
      provided
      that,
      it can
      and does pay the cost of such settlement, and provided that it does not admit
      guilt, culpability or liability on the part of Owner without Owner’s prior
      written consent. In no case shall DELTA-T’s liability under this indemnity,
      including all costs and fees born by it, exceed the amount set forth at Article
      13 above. 

    

    

    ARTICLE
      17

    CONFIDENTIALITY

     

    17.1
      Confidential Information: In
      connection with this Agreement, each party may receive or otherwise have access
      to Confidential Information of the other party. The Parties shall not disclose
      any Confidential Information of the other to any third party, nor shall they
      use
      any Confidential Information of the other for any purpose other than fulfilling
      their respective rights and obligations under this Contract, without the express
      written permission of the other. Each party agrees to take all reasonable
      precautions to prevent Confidential Information of the other party from being
      disclosed or disposed to any third party directly or indirectly without the
      prior written consent of the disclosing party. Neither party shall disclose
      any
      Confidential Information of the other pursuant to court order or other legal
      requirement unless: (i) it is advised by its legal counsel that it is legally
      required to do so; (ii) it has promptly given the disclosing Party notice of
      such order or process so that Party can obtain a secrecy order or other
      appropriate legal protection; and, (iii) it uses all other reasonable means
      to
      ensure the confidential treatment of such information. Each party’s obligation
      confidentiality shall extend beyond the term of this Agreement and shall
      continue until such time as such Confidential Information meets one of the
      exceptions in the definition of Confidential Information. Unless otherwise
      directed by the disclosing party, the receiving party agrees that it will return
      to the disclosing party upon completion of services under this Agreement all
      Confidential Information in tangible form, including for example, drawings,
      specifications and other documents. Each party may retain a single archive
      copy
      for reference purposes. 

     

    
      
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    ARTICLE
      18

    DISPUTE
      RESOLUTION

    

    18.1
      Executive Conference or Arbitration: In
      the
      event of any controversy or claim arising out of or related to this Contract
      (excluding any claims related to ownership and/or use rights of intellectual
      property, including any claim that either party is infringing upon, or
      mis-using, any intellectual property or proprietary information of the other
      party), or the interpretation, termination or breach hereof, the Party involved
      shall, upon the written request of the other, attempt to resolve the matter
      by
      agreement of the representatives of the Parties at least one management level
      above the individuals who have had direct responsibility for performance of
      the
      Contract, or the highest level of management of any Party whose highest level
      of
      management has had direct responsibility for such performance. Such
      representatives shall meet in person or by telephone or teleconference at least
      once, and shall attempt to resolve any matter raised by either of them by the
      written notice requesting such resolution for a period of at least forty five
      (45) days. If the Parties are unable to resolve the dispute by agreement of
      such
      representatives within such 45-day period, then at the written request of any
      Party they shall submit the matter to binding arbitration under the then current
      Construction Industry rules of American Arbitration Association.

     

    18.2
      Arbitration:
      The
      place of arbitration shall be agreed in writing between the parties, or in
      the
      absence of agreement, shall be Los Angeles, California. Any Party who files
      a
      notice of demand for arbitration must assert in the demand all claims then
      known
      to that Party against the other. Judgment upon any award rendered by in
      arbitration under this Agreement may be entered upon it in accordance with
      applicable law in any court having jurisdiction thereof.

    

    

    ARTICLE
      19

    FORCE
      MAJEURE

     

    No
      delay
      in, or failure of, performance by either party hereto under this Contract,
      other
      than the failure to pay amounts due, will constitute default hereunder or give
      rise to any claim for damages if and to the extent caused by an occurrence
      beyond the control of the party affected, including but not limited to: acts
      of
      governmental authority, acts of God, strikes or other concerted acts of workmen,
      fire, flood, explosions, riots, war, rebellion or sabotage, provided, however,
      that if either party hereto fails to perform due to force majeure and such
      failure continues for more than one hundred twenty (120) days, the other may
      terminate this Contract. In case of termination by Owner under this Article
      19,
      Owner shall pay DELTA-T for all Work completed and Equipment procured prior
      to
      the date of termination and billed in accordance with the Contract, including
      any retention money. In case of termination by DELTA-T under this Article 19,
      Owner shall pay DELTA-T for all Work completed prior to termination, including
      any retention money.

    

    

    ARTICLE
      20

    GENERAL
      PROVISIONS

     

    20.1
      Assignment: Neither
      DELTA-T nor Owner shall assign or transfer its duties or obligations hereunder
      without the prior written consent of the other (provided,
      that Owner may assign this Contract to an affiliate, to a successor in interest,
      whether by merger, acquisition of asset or stock or otherwise, and to financing
      sources and their designees, without the consent of DELTA-T; in which case
      Owner
      shall provide written notice to DELTA-T of such assignment).
      This
      Contract shall be binding upon and shall inure to the benefit of the parties
      hereto and the successors and permitted assigns of Owner and
      DELTA-T. 

     

    
      
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    20.2
      Entire Contract; Waiver; Amendment:
      These
      General Conditions and the attached Schedules constitute the full and complete
      Contract between the Parties hereto with respect to the subject matter hereof.
      There are no statements, agreements, understandings, representations or trade
      customs of any kind, express or implied, concerning the subject matter which
      are
      not merged herein or superseded hereby. A waiver of any of the terms of this
      Contract shall not bind either Party unless signed by one of its duly authorized
      representatives. Waiver by either Party of any default by the other party
      hereunder shall not be deemed a waiver by such Party of any default by the
      other, which may occur thereafter. This Contract may only be modified or amended
      by an appropriate change order as noted in Article 5 above or by an agreement
      in
      writing executed by both Parties hereto.

     

    20.3
      Governing Law: The
      validity, performance, construction and effect of this Contract shall be
      governed by the laws of the State of California.

     

    20.4
      Notices:
      All
      notices provided for herein will be considered as properly given if in writing
      and delivered personally or sent properly addressed, postage
      pre-paid:

    
      
        	 	
                 

                If
                  to DELTA-T, to:

              	
                 

                323
                  Alexander Lee Parkway

              
	 	 	
                Williamsburg,
                  VA 23185

              
	 	 	
                Attn:
                  Robert L. Swain

              
	 	 	 
	 	
                If
                  to Owner, to:

              	
                5711
                  N. West Avenue 

              
	 	 	
                Fresno,
                  California 93711

              
	 	 	
                Attn:
                  Terry Kulesa

              
	 	 	 
	 	
                With
                  a copy to:

              	
                General
                  Counsel

              

      

    

     

    20.5
      Survival: Owner’s
      obligations under the provisions of Article 9, 13, 16, 17, and 18 shall survive
      termination or expiration of this Contract.

     

    
      
        Plant
          #5 EPT

      

      
        -16-

        
          

        

      

      
        
        

      

    

    WITNESS
      WHEREOF,
      the
      parties hereto have executed this CONTRACT on the 6th
      day of
      September, 2006.

    

    

    
      	 DELTA-T
              CORPORATION	 	 PACIFIC
              ETHANOL, INC. 
	 	 	 	 	 
	
              By:

            	
              /S/
                ROBERT L. SWAIN

            	 	
              By:

            	
              /S/
                NEIL M. KOEHLER

            
	
               

              Name:

            	
              Robert
                L. Swain

            	 	
               

              Name:

            	

              Neil
                M. Koehler 

            
	
               

              Printed
                Name:

            	

              Robert
                L. Swain 

            	 	
               

              Printed
                Name:

            	
              Neil
                M. Koehler

            
	
              Title:

            	
              Vice
                President

            	 	
              Title:

            	
              CEO

            
	
               

              Date:

            	
              9/6/06

            	 	
               

              Date:

            	
              9/6/06

            

    

     

    
 

    
      
        Plant
          #5 EPT

      

      
        -17-

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

    

    ENGINEERING
      & RELATED TECHNICAL SERVICES

    

    1.0
      Engineering/Deliverables Summary

     

    NOTE:

    
      	 	
              1)

            	
              Scope
                items and deliverables below designated by “ * ” will be reviewed and
                signed off by OWNER per Section 3.2 of this Agreement before final
                approval is given by OWNER to be implemented into the Project. These
                items
                include project issues and decisions that rely heavily on OWNER’S
                discretion for financial, operating or strategic reasons. For example,
                the
                total amount of inventory and product storage capacity would need
                OWNER’S
                input as the decision has significant ramifications from a capital
                cost
                versus operating flexibility
                standpoint.

            

    

     

    
      	 	
              2)

            	
              Per
                Section 3.3 of this Agreement, scope items and deliverables below
                designated by “ * ” require that DELTA-T, through DTPS, review the work
                performed by OWNER’S general contractor(s), subcontractors or other agents
                to make sure it is in compliance with Process
                requirements.

            

    

     

    
      	 	
              3)

            	
              The
                items designated “(C)” have been completed by DELTA-T, through DTPS, prior
                to the date of execution of this
                Agreement.

            

    

     

    
      	 	
              4)

            	
              The
                items designated “(Basic Process Design”) are all the design and
                engineering components provided by DELTA-T which are required to
                complete
                detailed engineering of the plant. A milestone will be defined in
                the
                Schedule setting forth a special “Basic Process Design review” for the
                purpose of the Parties committing to all issues required to begin
                the
                detailed design of the Project. Once the Basic Process Design basis
                has
                been formally approved by both Parties and the data submitted to
                detailed
                engineering, any change requested by OWNER after that time will be
                handled
                as a change order with a reasonable extension of time and at a mutually
                agreed price to perform the change.

            

    

    
       

      
        	 	
                5)

              	
                For
                  purposes of this Schedule A, “OWNER” shall include OWNER and all of
                  OWNER’s vendors and
                  subcontractors.

              

      

    

     

     

    
      
        Plant
          #5 EPT

      

      
        -18-

        
          

        

      

      
        
        

      

    

    
      

        
          	 	
                   

                   

                  Task/Deliverable
                    Description

                	
                  Responsibility

                  D
                    - Delta-T (DTPS)

                  O
                    - OWNER

                	
                   

                  Basic
                    Process Design

                   

                
	 	
                  Detailed
                    Cost Budget, Plot Plan, Typical Project Schedule, Block Flow

                  Diagrams,
                    Building Information and Vendor Quotes from the existing 

                  facility
                    (C).

                   

                	
                   

                   

                  D

                   

                	
                   

                   

                  NO

                   

                
	 	
                  Engineering
                    SCHEDULE*

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Master
                    Project SCHEDULE **

                   

                	
                  O

                   

                	
                  NO

                   

                
	 	
                  Engineering
                    Document List*

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  System
                    Design Specifications*

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Process
                    Description

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Facility
                    Process Flow Diagram

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Facility
                    Mass and Energy Balances

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Process
                    Areas Flow Diagrams

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Process
                    Areas Mass and Energy Balances

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Production
                    & Utility Consumption*

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Piping
                    & Instrument Diagrams

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Major
                    Equipment List

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Major
                    Equipment Data Sheets

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Motor
                    List

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Instrument
                    List

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Valve
                    List

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Pipeline
                    List

                   

                	
                  D

                   

                	
                  YES

                   

                

        

         

        
          
            
              Plant
                #5 EPT

            

            
              -19-

              
                

              

            

            
              
              

            

          

           

        

        
          	 	
                  Insulation
                    & Heat Trace List

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Instrument
                    Data Sheets

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Major
                    Equipment Detailed Design 

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  PLANT
                    Process Equipment Procurement Technical Specifications

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Major
                    Equipment Bid Drawings

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Major
                    Equipment Bid Packages 

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Non-PLANT
                    PROJECT Equipment Procurement Technical Specification

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Electrical
                    Single Line Diagram**

                   

                	
                  D

                   

                	
                  NO

                   

                

        

        
          	 	
                  Electrical
                    Arrangement Dwgs.**

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Electrical
                    Panel Design Drawings**

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Cable
                    and Conduit SCHEDULE 

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Electrical
                    Interconnection Data

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Electrical
                    Schematic Diagrams**

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Control
                    Valve Data Sheets

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Manual
                    Valve Specifications

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Instrumentation
                    Installation Details

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Control
                    System Specification

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Control
                    Narrative

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Control
                    System Programming

                   

                	
                  D

                   

                	
                  NO

                   

                

        

        
           

          
            
              Plant
                #5 EPT

            

            
              -20-

              
                

              

            

            
              
              

            

          

           

        

        
          	 	
                  PLANT
                    Basic AutoCAD 3-D Equipment Arrangement & Piping Model

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  PLANT
                    Equipment Plan & Section Arrangement Drawings

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  PLANT
                    Basic Piping Layouts & Arrangement

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Instrumentation
                    Location Information

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Piping
                    Specifications

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Detailed
                    Piping Design & Arrangement

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Piping
                    Support Design

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Piping
                    Isometrics (IFB)

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Structural
                    Steel Arrangements**

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Structural
                    Steel Design

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Structural
                    Steel Fabrication & Installation Technical Specifications

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Foundation
                    Design

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Equipment
                    Installation Technical Specification

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Instrument
                    Installation Technical Specifications

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Insulation
                    Installation Technical Specification

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Piping
                    Installation Technical Specification 

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Site
                    Geotechnical Data

                   

                	
                  O

                   

                	
                  NO

                   

                
	 	
                  Building
                    Design**

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Rail
                    and Facility Design**

                   

                	
                  O

                   

                	
                  NO

                   

                
	 	
                  Prepare
                    Environmental Permit Applications

                   

                	
                  O

                   

                	
                  NO

                   

                
	 	
                  Process
                    Safety Management Review (PSM)**

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Verify
                    Compliance with Construction Codes

                   

                	
                  D

                   

                	
                  NO

                   

                

        

         

        
          
            Plant
              #5 EPT

          

          
            -21-

            
              

            

          

          
            
            

          

        

         

        
          	 	
                  Design
                    Fire Suppression System

                   

                	
                  O

                   

                	
                  NO

                   

                
	 	
                  Supply
                    Process Needs Associated with Non Process Area Systems

                   

                	
                  D

                   

                	
                  YES

                   

                
	 	
                  Review
                    of Detailed Engineering for Non-PLANT Areas

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Construction
                    Observation (with specific CLIENT approval of personnel)

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Operations
                    Manual

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Operator
                    Training*

                   

                	
                  O

                   

                	
                  NO

                   

                
	 	
                  STARTUP
                    & Commissioning Assistance*

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Ongoing
                    Technical Service

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Bid
                    Evaluation & Equipment/Vendor Recommendation*

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Procurement
                    Services for Equipment listed in Section 1.13 below*

                   

                	
                  D

                   

                	
                  NO

                   

                
	 	
                  Procurement
                    of construction materials, construction services, and equipment
                    other than
                    that listed in Section 1.13**

                   

                	
                  D

                   

                	
                  NO

                   

                

        

         

      

    

    The
      following provides a text description of key DELTA-T (DTPS) deliverables for
      the
      packages and services shown in the preceding list of SCHEDULE A, Section
      1.0.

    

    1.1
      Non-Process Area System Specifications

    

    Performance
      specifications will be provided for non-PROCESS areas which interconnect to
      the
      Process, and which may impact the overall operation of the PLANT. The
      performance specification will be included in the System Design
      Specification.

     

    
      
        Plant
          #5 EPT

      

      
        -22-

        
          

        

      

      
        
        

      

    

    Specifications
      will be provided for the following non-Process areas:

    
      	
            	·	
              Grain
                handling and storage

            

    

    

    1.2
      Detail Engineering

    

    DELTA-T
      will provide the following detail engineering services for the
      PLANT:

    

    
      	 	
              ·

            	
              Detailed
                piping design including layout, specifications and isometric
                drawings

            

    

    
      	 	
              ·

            	
              Instrumentation
                and electrical installation
                specifications

            

    

    
      	 	
              ·

            	
              Specifications
                for vessel detail design and installation, including
                internals

            

    

    
      	 	
              ·

            	
              3D
                model reviews of piping, electrical and equipment
                layout

            

    

    
      	 	
              ·

            	
              Provide
                electrical, structural, and process control design to support the
                process.

            

    

    
      	 	
              ·

            	
              Provide
                bid packages for all major construction activities within DTC’s
                scope.

            

    

    

    1.3
      Procurement Services for Equipment

    

    DELTA-T
      will provide procurement services for specific Equipment and Equipment packages
      within the PLANT as listed in Section 1.13 of this Schedule A. Procurement
      will
      include:

    

    
      	 	
              ·

            	
              Prepare
                bid package supporting data and documentation, and prepare and issue
                bid
                packages to vendors

            

    

    
      	 	
              ·

            	
              Evaluate
                bids and vendor selections, subject to Owner’s
                approval.

            

    

    
      	 	
              ·

            	
              Issue
                Purchase orders.

            

    

    
      	 	
              ·

            	
              Track,
                expedite and coordinate engineering drawings delivery as well as
                equipment
                deliveries to site

            

      	 	
              · 

            	
              Review
                and approve payment for all invoices for Equipment and
                delivery. 

            

    

    

    1.4
      Review of Non-PROCESS Areas of the PLANT

    

    Review
      and provide comments on all Non-PROCESS areas in the Plant designed by others,
      including, but not limited to the following:

    

    
      	 	
              ·

            	
              Corn
                receiving and storage systems

            

    

    

    This
      review service will include:

    

    
      	 	
              ·

            	
              Review
                of design for conformance with PROCESS
                requirements

            

    

    
      	 	
              ·

            	
              Assistance
                with preparation of vendor lists and selection of
                vendors

            

    

    
      	 	
              ·

            	
              Assistance
                with establishing scope for RFQ

            

    

    
      	 	
              ·

            	
              Review
                final design to ensure that it is compatible with the PROCESS and
                the
                PLANT

            

    

    
      
        Plant
          #5 EPT

      

      
        -23-

        
          

        

      

      
        
        

      

    

    1.5
      Review of Construction for Conformance with PROCESS

    

    
      	 	
              
                ·

              

            	
              During
                the construction phase, DELTA-T will provide a full time on-site
                representative to interface with the construction contract and serve
                as
                the Delta-T (DTPC) representative.

            

    

    

    1.6
      Safety, Operability and Maintainability Review

    

    DELTA-T
      will perform the BASIC PROCESS DESIGN to meet the codes defined in Section
      2 of
      this Schedule A. DELTA-T will also provide skilled personnel to participate
      in
      Process Safety Management (PSM) activities conducted by OWNER for:

    

    
      	 	
              
                ·

              

            	
              Assist
                OWNER with review of the entire PLANT for safety, operability, and
                maintainability issues 

            

    

    
      	 	
              
                ·

              

            	
              Assist
                OWNER with any required formal PSM review of selected areas of the
                PLANT
                

            

    

    

    Any
      review of the detail design requested by OWNER shall be handled under Change
      Orders.

    

    1.7
      Operations Manuals

    

    Five
      (5) sets of Operations manuals will be provided for PROCESS areas, which will
      include:

    

    
      	 	
              
                ·

              

            	
              Description
                of the entire PLANT PROCESS and each system
                operation

            

    

    
      	 	
              
                ·

              

            	
              Detailed
                operating description of each process
                unit

            

    

    
      	 	
              
                ·

              

            	
              Initial
                start-up procedures

            

    

    
      	 	
              
                ·

              

            	
              Normal
                operation

            

    

    
      	 	
              
                ·

              

            	
              Startup
                & shutdown under normal operating
                conditions

            

    

    
      	 	
              
                ·

              

            	
              Startup
                & shutdown under emergency
                conditions

            

    

    
      	 	
              
                ·

              

            	
              Cleaning
                & preventive maintenance
                guidelines

            

    

    
      	 	
              
                ·

              

            	
              Safety
                & Health guidelines

            

    

    
      	 	
              
                ·

              

            	
              Basic
                troubleshooting guides

            

    

    

    1.8
      Maintenance Manuals

    

    As
      a part
      of its purchasing services, DELTA-T will assemble maintenance manuals for all
      Equipment it procures under this Agreement. These manuals will normally consist
      of certified vendor drawings, operations manuals, maintenance manuals,
      lubrication requirements (amount and type), and spare parts list (start-up,
      one
      and three year recommended spares), with special instructions included where
      the
      vendor information is insufficient.

    
 

    
      
        Plant
          #5 EPT

      

      
        -24-

        
          

        

      

      
        
        

      

    

    1.9
      Operator Training

    

    At
      Owner’s election, DELTA-T will provide comprehensive on-site training for
      operators, technicians, supervisors, and managers. Training activities will
      cover the following:

    

    
      	 	
              
                ·

              

            	
              Operations
                manual, charts, diagrams

            

    

    
      	 	
              
                ·

              

            	
              Classroom
                instruction in the theory and background for system design &
                operation

            

    

    
      	 	
              
                ·

              

            	
              Instruction
                in the PLANT consisting of "hands-on"
                training

            

    

    
      	 	
              
                ·

              

            	
              Startup

            

    

    
      	 	
              
                ·

              

            	
              Normal
                operation & control

            

    

    
      	 	
              
                ·

              

            	
              Detection
                of and reaction to abnormal operating
                conditions

            

    

    
      	 	
              
                ·

              

            	
              Cleaning
                & preventive maintenance
                guidelines

            

    

    
      	 	
              
                ·

              

            	
              Planned
                shutdown & startup

            

    

    
      	 	
              
                ·

              

            	
              Emergency
                shutdown & startup

            

    

    
      	 	
              
                ·

              

            	
              Basic
                troubleshooting

            

    

    
      	 	
              
                ·

              

            	
              Safety
                & Health guidelines

            

    

    

    All
      training shall be provided in fourteen (14) calendar days by two DELTA-T people.
      The exact schedule for such training will be coordinated with OWNER. DELTA-T
      recommends that training be done in one week of “classroom” oriented training
      during the later stages of construction (after key positions have been filled
      in
      the operations staff) and one week of combination of “hands-on” and classroom
      training during startup activities.

    

    1.10 STARTUP
      & Commissioning Assistance

     

    DELTA-T
      will provide up to 4 people for a duration of up to thirty (30) calendar days
      to
      assist/consult with Owner’s operating staff during STARTUP, commissioning, and
      Acceptance Testing of the Plant. The scope of STARTUP and commissioning services
      to be provided by DELTA-T includes:

    

    
      	 	
              
                ·

              

            	
              Provide
                skilled and experienced engineering/operations personnel on site
                with 24
                hour per day coverage during critical commissioning activities, startup
                and conductance of Acceptance Testing.

            

    

    
      	 	
              
                ·

              

            	
              Provide
                consultation and advice to troubleshoot and problem-solve startup
                and
                operating problems for all areas of the
                PLANT

            

    

    
      	 	
              
                ·

              

            	
              Continuance
                of “hands-on” operator training while conducting startup and commissioning
                activities

            

    

     

     

    
      
        Plant
          #5 EPT

      

      
        -25-

        
          

        

      

      
        
        

      

    

    1.11
      Ongoing Technical Service

    

    DELTA-T
      will provide ongoing telephone response at no charge to OWNER’s questions,
      concerns or problems with regard to the operation and maintenance of the plant
      for a period of one year following STARTUP.

    1.12
      General Conditions

    

    DELTA-T
      (DTPS) will provide all engineering deliverables such as electronic models,
      drawings, calculations, and other project documentation to OWNER in electronic
      format. All engineering deliverables generated by the performance of the work
      will become the property of OWNER. In addition, DELTA-T (DTPS) will work with
      OWNER to establish electronic communication practices.

    

    1.13
      List of Equipment for Which Procurement Services will be Provided by
      DELTA-T

    

    [*]

    

    2.0
      Design Codes & Standards

    

    Unless
      specifically noted to the contrary, the design specifications for the PROCESS
      and the PLANT shall conform with the applicable sections and parts of the codes
      and standards set forth below, including the most recent revisions and
      supplements at the time of the execution of the Agreement.

     

     

     

     

    
      ____________________________

      
        [*] Certain
          information on this page has been omitted and filed separately with
          the Securities and Exchange Commission. Confidential treatment has been
          requested with respect to the omitted portions.

         

         

      

    

    
      
        Plant
          #5 EPT

      

      
        -26-

        
          

        

      

      
        
        

      

    

    

    
      	
              Applicable
                Standards: 

            	
              Federal,
                State, Local, OSHA, Air quality, ANSI 

            
	
               

              Building
                Codes:

               

            	
               

              UBC,
                IBC, CBC, or other state, local, federal, or 

              international
                building codes that may apply at 

              specified
                site or sites 

               

            
	
              Cable
                Marking:

               

            	
              ICEA
                (Insulated Cable Engineers Association)

               

            
	
              Concrete:

               

            	
              ACI
                (American Concrete Institute)

               

            
	
              Corrosion:

               

            	
              NACE
                (National Association of Corrosion Engineers)

               

            
	
              Electrical/Instrumentation:

            	
              NEMA
                (National Electrical Manufacturers Assoc)

            
	 	
              NEC
                (National Electrical Code)

            
	 	
              ISA
                (Instrument Society of America)

               

            
	
              Electrical
                Components:

               

            	
              UL
                (Underwriters Laboratories)

               

            
	
              Flanges:

               

            	
              ANSI
                standard

               

            
	
              Fire
                Protection:

               

            	
              NFPA,
                IFC, CBC, or other state, local, federal, or 

              international
                codes that may apply at specified 

              site
                or sites

               

            
	
              Heat
                Exchanger:

               

            	
              TEMA
                (Tubular Exchanger Manufacturers Association)

               

            
	
               

              Nuts,
                Bolts, Fittings 

            	
               

              ASTM
                (American Society of Testing Materials)

            
	
              &
                Line Components:

               

            	
              SAE
                (Society of Automotive Engineers)

               

            
	
              Painting:

               

            	
              SSPC
                (Steel Structure Painting Council)

               

            
	
              Personnel
                Safety:

               

            	
              OSHA
                (Occupational Safety and Health Association)

               

            
	
              Piping,
                pumps:

               

            	
              ANSI
                (American National Standards Institute)

               

            
	
              Structural
                Steel:

               

            	
              AISC
                (American Institute of Steel Construction)

               

            
	
              Tanks

               

            	
              API
                (American Petroleum Institute)

               

            
	
              Valves
                and Fittings:

               

            	
              MSS
                (Manufacturers Standardization Society)

               

            
	
              Vessels
                (Where required):

               

            	
              ASME
                (American Society of Mechanical Engineers)

               

            
	
              Welding:

            	
              AWS
                (American Welding Society)

            

    

     

     

    
      
        Plant
          #5 EPT

      

      
        -27-

        
          

        

      

      
        
        

      

    

    SCHEDULE
      B: RATES

     

    

    
      	
              DELTA-T
                CORPORATE COMMERCIAL BILLING RATES

            
	 
	
              POSITION
                / FUNCTION

            	 	
              HOURLY
                RATE

            
	 	 	 
	
              Senior
                Consultant/Principal

            	 	
              $300.00

            
	
              Director
                of Engineering

            	 	
              $250.00

            
	
              Project
                Manager

            	 	
              $200.00

            
	
              Construction
                Manager

            	 	
              $150.00

            
	
              Project
                Engineer

            	 	
              $135.00

            
	
              Project
                Controls

            	 	
              $125.00

            
	
              Procurement
                Manager

            	 	
              $125.00

            
	
              Senior
                Process Consultant

            	 	
              $195.00

            
	
              Senior
                Process Engineer

            	 	
              $150.00

            
	
              Senior
                I&C Engineer

            	 	
              $150.00

            
	
              Senior
                Mechanical Engineer

            	 	
              $150.00

            
	
              Process
                Engineer

            	 	
              $125.00

            
	
              I&C
                Engineer

            	 	
              $110.00

            
	
              Mechanical
                Engineer

            	 	
              $110.00

            
	
              Senior
                Designer

            	 	
              $100.00

            
	
              Designer

            	 	
              $75.00

            
	
              Draftsperson

            	 	
              $60.00

            
	
              Technicians

            	 	
              $110.00

            
	
              Financial
                Control and Billing

            	 	
              $80.00

            
	
              Clerical

            	 	
              $60.00

            

    

     

    
      
        Plant
          #5 EPT

      

      
        -28-

        
          

        

      

      
        
        

      

    

    SCHEDULE
      C:
      

    Project
      Schedule

    

     

     

     

    [*]

     

     

     

     

     

     

     

     

     

     

    
      ____________________________

      
        [*] Certain
          information on this page has been omitted and filed separately with
          the Securities and Exchange Commission. Confidential treatment has been
          requested with respect to the omitted portions.

         

      

    

    
      
        Plant
          #5 EPT

        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

    SCHEDULE
      D: 

    Reserved

    

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        Plant
          #5 EPT

      

      
        -30-

        
          

        

      

      
        
        

      

    

    SCHEDULE
      E:

    List
      of Designers

    

    
      	
              4B
                Components

              East
                Peoria, Illinois

            	
              Magnin-Interis

              Charmes,
                France

            
	 	 
	
              Abengoa
                BioEnergy

              Sevilla,
                Spain

            	
              Katzen
                International, Inc.

              Cincinnati,
                Ohio

            
	 	 
	
              Agrol
                Biotechnologies Ltd.

              Guildford,
                Surrey Canada

            	
              Lurgi
                PSI Inc.

              Memphis,
                TN

            
	 	 
	
              Ambitech
                Engineering Corporation

              Downers
                Grove, Illinois

            	
              Merrick
                & Company

              Aurora,
                Colorado

            
	 	 
	
              AMG
                Engineering

              Cincinnati,
                Ohio

            	
              Praj
                Industries

              Pune,
                India

            
	 	 
	
              Bio-Process
                Innovation

              West
                Lafayette, Indiana

            	
              Process
                Plus, LLC

              Cincinnati,
                Ohio

            
	 	 
	
              Bio-Renewable
                Group

              Omaha,
                Nebraska

            	
              Raphael
                Katzen Associates International

              Cincinnati,
                Ohio

            
	 	 
	
              Broin
                & Associates, Inc.

              Aberdeen,
                South Dakota

            	
              Ro-Tech
                Incorporated

              Louisville,
                Kentucky

            
	 	 
	
              Burns
                & McDonnell

              Kansas
                City, Missouri

            	
              SNC-Lavalin
                Group

              Toronto,
                Canada

            
	 	 
	
              Chematur
                Engineering & 

              Weatherly
                Engineering

              Atlanta,
                Georgia

            	
              Southeastern
                Energy Development, Inc.

              Brooklyn,
                NY

              (Alliance
                with Pure Vision Technology)

            
	 	 
	
              Dick
                Engineering Inc.

              Toronto,
                Ontario, Canada 

            	
              Technip

              Cedex,
                France

            
	 	 
	
              MECS,
                Inc.

              St.
                Louis, Missouri

            	
              Vogelbusch
                USA, Inc.

              Houston,
                TX

              (and
                its parent Vogelbusch-Austria)

            
	 	 
	
              Fagen,
                Inc.

              Granite
                Falls, Nebraska

            	
              Wave
                Zeal Ltd.

              Winnepeg,
                Manitoba CANADA

            
	 	 
	
              Harris
                Group Inc.

              Seattle,
                WA

            	
              Washington
                Group International

              Boise,
                Idaho 

            
	 	 
	
              ICM,
                Inc.

              Colwich,
                KS

            	
              Washington
                Group International

              Boise,
                Idaho

            
	 	 
	 	
              Any
                individual, group or company that performs, on the date of the License
                or
                during its term, (a) consulting or engineering related to the design
                of
                alcohol process technology and/or (b) design/build services for existing
                and prospective alcohol plants

            

    

    
 

    
      
        Plant
          #5 EPT

      

      
        -31-

        
          

        

      

      
        
        

      

    

    SCHEDULE
      F:

    Payment
      Schedule

    

    

    

    
       

      [*]

    

     

     

     

     

     

     

     

     

     

     

    
      
        ____________________________

        
          [*] Certain
            information on this page has been omitted and filed separately with
            the Securities and Exchange Commission. Confidential treatment has been
            requested with respect to the omitted portions.

           

        

      

    

    
      
        Plant
          #5 EPT

      

      
        -32-

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      G:

    
      License
        Fee Formula

    

    

    

    

    
      [*]

    

     

     

     

     

     

     

     

     

     

     

    
      
        ____________________________

        
          [*] Certain
            information on this page has been omitted and filed separately with
            the Securities and Exchange Commission. Confidential treatment has been
            requested with respect to the omitted portions.

           

           

          Plant
            #5
            EPT

          -33-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]